,,ii #aahth ,,congress #ast ,session ,s4 #adga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #d1 #bjbc,mr4 ,risch 7for himself and ,mr4 ,hagerty7 introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to bolster the ,,aukus partnership1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,truncating ,onerous ,regulations for ,partners and ,enhancing ,deterrence ,operations 7,,torpedo7 ,act of #bjbc4 7b7 ,table of ,contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,sec4 #c4 ,findings4,sec4 #d4 ,statement of policy4,sec4 #e4 ,department of ,state personnel and resources4,sec4 #f4 ,reporting requirements4,sec4 #g4 ,exemption for license requirements for export of defense items to the ,united ,kingdom and ,australia4,sec4 #h4 ,united ,states ,munitions ,list4,sec4 #i4 ,open general license for the export1 reexport1 transfer1 and retransfer of certain defense articles to ,australia1 ,canada1 and the ,united ,kingdom under ,,itar4,sec4 #aj4 ,license exception for export1 reexport1 and in-country transfer of items on ,commerce ,control ,list to or between ,australia1 ,canada1 and the ,united ,kingdom under ,export ,administration ,regulations4,sec4 #aa4 ,treatment of national technology and industrial base as domestic source under ,defense ,production ,act of #aiej4,sec4 #ab4 ,expedited release of advanced technologies to ,australia1 ,canada1 and the ,united ,kingdom through the ,foreign ,military ,sales program4,sec4 #ac4 ,anticipatory disclosure policy for ,australia1 ,canada1 and the ,united ,kingdom4,sec4 #ad4 ,report on ,,aukus strategy4,sec4 #ae4 ,australia1 ,united ,kingdom1 and ,united ,states submarine security training4 #b4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,relations1 the ,committee on ,appropriations1 and the ,committee on ,armed ,services of the ,senate2 and 7,b7 the ,committee on ,foreign ,affairs1 the ,committee on ,appropriations1 and the ,committee on ,armed ,services of the ,house of ,representatives4 7#b7 ,,aukus2 ,,aukus ,partnership ,the terms ,,aukus and ,,aukus partnership means the trilateral security partnership between the ,united ,states1 the ,united ,kingdom1 and ,australia1 which includes the following two pillars3 7,a7 ,pillar ,one of ,,aukus is focused on developing a pathway for ,australia to acquire conventionally armed1 nuclear powered submarines4 7,b7 ,pillar ,two of ,,aukus is focused on enhancing trilateral collaboration on advanced defense capabilities to include hypersonic and counter hypersonic capabilities1 quantum technologies1 undersea technologies1 and artificial intelligence4 7#c7 ,,aukus partner ,the term ,,aukus partner refers to a member of ,,aukus4 7#d7 ,defense article2 defense service ,the terms defense article and defense service have the meanings given those terms in section #dg of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgid74 #c4 ,findings ,congress makes the following findings3 7#a7 ,the ,united ,states has entered into a period of intense strategic rivalry with ,china that includes military competition on a scale unseen in generations4 7#b7 ,the perpetuation of a military balance of power in the ,indo-,pacific favorable to the ,united ,states and its allies and partners can no longer be assumed as ,china continues to invest massive resources in its military4 7#c7 ,china has undertaken a nuclear breakout1 fields the world's largest navy1 and is fielding a fully modernized air force4 7#d7 ,north ,korea remains an urgent and gathering threat as it fields an increasingly diverse and advanced nuclear and missile force backed by a massive conventional army4 7#e7 ,iran continues to pursue a nuclear weapons capability while fomenting unrest in the ,middle ,east and beyond4 7#f7 ,while ,china remains the pacing threat for the ,united ,states1 ,russia's unprovoked and brutal invasion of ,ukraine makes clear that multiple dissatisfied powers are coalescing into an informal bloc designed to challenge the existing ,united ,states-led global order4 7#g7 ,united ,states efforts to help ,ukraine defend itself against ,russian aggression and strengthen ,taiwan's ability to resist the coercion of the ,chinese ,communist ,party have exposed the production constraints inherent in the ,united ,states defense industrial base4 7#h7 ,the capacity limitations of the ,united ,states defense industrial base require urgent remedy to include a renewed examination of burden sharing roles with ,united ,states allies4 7#i7 ,to meet this comprehensive challenge to ,american interests1 we must act at the speed of relevance to expand the resilience and capacity of our defense industrial base4 ,united ,states allies should be full partners in this effort and the ,,aukus partnership is a necessary first step to share the responsibility of perpetuating the existing rules-based order4 7#aj7 ,the security partnership between ,australia1 the ,united ,kingdom1 and the ,united ,states 7referred to as the ,,aukus partnership7 is meant to bolster capability of the ,united ,states and allies in the ,indo-,pacific and beyond through technology sharing1 cooperation1 and defense exports4 7#aa7 ,the ,,aukus partnership's focus on conventionally armed nuclear-powered submarines and advanced capabilities1 known respectively as ,pillars ,one and ,two1 rightly centers on cooperation at the highest end of security and geostrategic competition4 7#ab7 ,pillar ,one1 while bold1 is complex1 highly contingent and unlikely to produce additive submarine capability in the ,indo-,pacific until the #bjcjs4 7#ac7 ,the ,pillar ,one initiative will rely on the expertise developed by the ,united ,states and ,united ,kingdom in operating their submarine fleets to bring an ,australian capability into service at the earliest achievable date4 7#ad7 ,pillar ,two proposes that ,,aukus partners will also deepen cooperation and integration on advanced defense technologies to include hypersonic missiles1 space technology1 artificial intelligence1 quantum technologies and additional undersea capabilities4 7#ae7 ,pillar ,two1 if executed with the vision described by the three allies in the ,,aukus announcement of ,september #bjba1 offers the potential to produce meaningful capability and increase industrial capacity during the current decade4 7#af7 ,pillar ,two can also expand and build resilience across the supply chain of the ,,aukus partners4 7#ag7 ,however1 certain statutory components of the ,united ,states export control and regulatory system are overly cumbersome for industries in the ,united ,states1 ,australia1 and the ,united ,kingdom1 delaying and complicating the ,united ,states from achieving national security objectives at the speed of relevance4 7#ah7 ,australia and the ,united ,kingdom have legal1 regulatory1 and technology control regimes that are sufficiently comparable to those of the ,united ,states4 7#ai7 ,united ,states technology controls and export licensing decisions must balance the relatively low risk of compromise that exists across all three ,,aukus partners regulatory regimes against the requirements to respond at the speed of relevance to the rapid military advances made by the ,chinese ,people's ,liberation ,army4 7#bj7 ,in order to implement the ,,aukus agreement and realize the value of increased cooperation between the ,united ,states1 the ,united ,kingdom1 and ,australia1 the ,united ,states must ensure cooperation is fostered1 not inhibited1 by the ,united ,states regulatory system4 7#ba7 ,the ,united ,states export control system1 encompassing both the ,international ,traffic and ,arms ,regulations and the ,export ,administration ,regulations1 is largely based on a bilateral government-to-government relationship1 is not optimized for a trilateral arrangement1 and must reflect the new era of allied partnership continuing evolution of ,united ,states export control regulation4 7#bb7 ,the ,department of ,state1 in concert with the ,department of ,defense1 the ,department of ,commerce1 and other relevant ,united ,states agencies1 should clearly communicate to our ,,aukus partners any ,united ,states requirements to address matters related to the technology security and export control measures of ,australia and the ,united ,kingdom4 7#bc7 ,further1 the ,department of ,state1 in concert with the ,department of ,defense1 the ,department of ,commerce1 and other relevant ,united ,states agencies1 should work to reduce barriers to defense innovation1 cooperation1 trade1 production1 and sustainment with the governments and industry partners of the ,united ,kingdom and ,australia4 7#bd7 ,these barriers include the overuse of no foreign nationals 7,,noforn7 and ,controlled ,unclassified ,information 7,,cui7 determinations that inhibit collaboration among ,,aukus partners in determining requirements1 design1 development1 acquisition1 testing1 operation1 and sustainment of capabilities designed to be interoperable4 7#be7 ,the successful implementation of the ,,aukus partnership requires regulatory and licensing changes on the part of all ,,aukus partner countries and the continued enhancement of the export control and technology security regimes of all three nations4 7#bf7 ,if ,,aukus realizes its potential1 it will set a precedent and incentivize similar agreements with other close ,united ,states allies1 which will be necessary if we are to prevail in the long-term competition with ,china1 ,russia and its partners4 #d4 ,statement of policy ,it is the policy of the ,united ,states-- 7#a7 to support a transformation and expansion of our already close cooperation on a range of defense and security issues with the ,united ,kingdom and ,australia1 including enhancing cooperation in the development and fielding of advanced commercial and defense capabilities and in pursuing deeper integration of our defense industrial bases and supporting supply chains2 7#b7 to use ,,aukus to enhance trilateral cooperation across the submarine fleets of the partner countries and to support ,australian efforts to acquire nuclear-powered submarines for the ,royal ,australian ,navy2 7#c7 to reassess1 and as needed revise1 existing regulatory and legal regimes1 to include licensing1 technology release and contracting procedures to meet the objectives outlined in the ,september #ae1 #bjba1 announcement of the ,,aukus partnership2 7#d7 to reinvigorate burden sharing with ,united ,states allies as a key component of adopting a sustainable long-term strategy to compete with ,china1 ,russia1 and other revanchist dissatisfied powers2 and 7#e7 to modernize the ,united ,states export control system to reflect the new era of cooperation with partners and allies1 incorporating commercial and defense technology that preserve1 and enhance our way of life4 #e4 ,department of ,state personnel and resources 7a7 ,senior ,advisor at the ,state ,department for ,,aukus 7#a7 ,designation ,the ,secretary of ,state shall appoint a senior advisor at the ,department of ,state to oversee and coordinate the implementation of the ,,aukus agreement by the ,department of ,state 7referred to in this ,act as the ,senior ,advisor74 7#b7 ,reporting ,the senior advisor shall report directly to the ,secretary of ,state4 7#c7 ,responsibilities ,it shall be the responsibility of the senior advisor-- 7,a7 to coordinate ,,aukus implementation between relevant ,department of ,state bureaus1 directorates1 and offices2 7,b7 to represent the ,department of ,state on matters relating to ,,aukus in the interagency process2 7,c7 to engage with relevant government and industry entities in the ,united ,kingdom and ,australia2 and 7,d7 to issue guidance1 including promulgating regulations1 in order to reduce barriers to defense collaboration1 innovation1 trade1 and production with the ,governments and industry partners of the ,united ,states1 ,united ,kingdom1 and ,australia4 7#d7 ,salary ,the annual salary of the senior advisor described in this section shall not exceed salaries authorized in the ,office of ,personnel ,management's ,executive pay scale4 7b7 ,directorate of ,defense ,trade ,controls staffing ,section #de of the ,state ,department ,basic ,authorities ,act of #aief 7#bb ,u4,s4,c4 #bgag7 is amended-- 7#a7 in the first sentence1 by striking #ajj percent of the registration fees collected by the ,office of ,defense ,trade ,controls of the ,department of ,state and inserting #ajj percent of the defense trade control registration fees collected by the ,department of ,state2 7#b7 in the second sentence1 by inserting management1 licensing1 compliance1 and policy activities in the defense trade controls function1 including after incurred for2 7#c7 in paragraph 7#a71 by striking contract personnel to assist in2 7#d7 in paragraph 7#b71 by striking 2 and and inserting a semicolon2 7#e7 in paragraph 7#c71 by striking the period at the end and inserting 2 and2 and 7#f7 by adding at the end the following new paragraphs3 7#d7 the facilitation of defense trade policy development1 implementation1 and cooperation with a specific focus on ,canada1 ,australia1 and the ,united ,kingdom1 review of commodity jurisdiction determinations1 outreach to ,united ,states industry and foreign parties1 and analysis of scientific and technological developments as they relate to the exercise of defense trade control authorities2 and 7#e7 contract personnel to assist in such activities4 4 #f4 ,reporting requirements 7a7 ,report on ,department of ,state implementation of partnership 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,state1 in coordination with the ,secretary of ,defense and1 as appropriate1 the ,secretary of ,commerce and the ,secretary of ,energy1 shall submit to the appropriate congressional committees a report on efforts of the ,department of ,state to implement the ,,aukus partnership4 7#b7 ,elements ,the report required under paragraph 7#a7 shall include the following elements3 7,a7 ,regarding the achievement of ,phase ,one goals for of the ,optimal ,pathway for ,,aukus ,pillar ,one for each of calendar years #bjbc1 #bjbd1 #bjbe1 #bjbf1 and #bjbg1 the following3 7i7 ,a description of progress by the ,government of ,australia in negotiating an ,article #ad ,arrangement with the ,international ,atomic ,energy ,agency4 7ii7 ,a description of the status of efforts by the ,government of ,australia to build the supporting infrastructure to base conventionally armed nuclear powered attack submarines4 7iii7 ,updates on the efforts by the ,government of ,australia to train a workforce that can build1 sustain1 and operate conventionally armed nuclear powered attack submarines4 7iv7 ,a description of progress by the ,government of ,australia in building a new submarine facility to support the basing and disposition of a nuclear attack submarine on the east coast of ,australia4 7v7 ,the number of ,australian personnel embedded on ,united ,states ,navy ships during ,phase ,one of the ,optimal ,pathway4 7vi7 ,a description of progress in establishing basing to support submarine rotational forces in western ,australia by #bjbg4 7vii7 ,a description of how the ,united ,states plans to provide up to five ,virginia ,class submarines to ,australia by the early to mid-#bjcj's4 7viii7 ,a strategy for ,,aukus partners to integrate newly built ,,ssn-,,aukus submarines and five ,united ,states ,virginia ,class submarines into a single1 cohesive fleet4 7ix7 ,a detailed assessment of how ,australia's sovereign conventionally armed nuclear attack submarines contribute to ,united ,states defense and deterrence objectives in the ,indo-,pacific region4 7,b7 ,for each of the calendar years #bjba and #bjbb-- 7i7 the average and median times for the ,united ,states ,government to review applications for licenses1 disaggregated by license type and other agreements1 to export defense articles or defense services to persons1 corporations1 and the governments 7including agencies and subdivisions of such governments1 including official missions of such governments7 of ,australia and the ,united ,kingdom2 7ii7 the number of applications from ,australia and the ,united ,kingdom for licenses to export defense articles and defense services that were denied1 returned without action1 or approved with provisos1 listed by year2 7iii7 the average and median times for the ,united ,states ,government to review applications from ,australia and the ,united ,kingdom for foreign military sales beginning from the date ,australia or the ,united ,kingdom submitted a letter of request that resulted in a letter of acceptance2 and 7iv7 the number of requests from ,australia and the ,united ,kingdom for foreign military sales that were denied4 7,c7 ,a list of relevant ,united ,states laws1 regulations1 and treaties and other international agreements to which the ,united ,states is a party that govern authorizations to export defense articles or defense services that are required to implement the ,,aukus partnership4 7,d7 ,an assessment of key recommendations the ,united ,states ,government has provided to the ,governments of ,australia and the ,united ,kingdom to revise laws1 regulations1 and policies of such countries that are required to implement the ,,aukus partnership4 7,e7 ,an assessment of-- 7i7 recommended improvements to export control laws and regulations of ,australia1 the ,united ,kingdom1 and the ,united ,states that such countries should make to implement the ,,aukus partnership and to otherwise meet the requirements of section #ch7;j77#b7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;j77#b772 and 7ii7 the challenges the ,governments of ,australia and the ,united ,kingdom have conveyed in meeting these requirements1 including with respect to sensitive defense technology security controls4 7b7 ,report on interagency actions 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,state1 in coordination with the ,secretary of ,defense1 the ,secretary of ,energy1 and the ,secretary of ,commerce1 shall submit to the appropriate congressional committees a report on actions taken at the interagency level to implement the advanced capabilities pillar of the ,,aukus agreement4 7#b7 ,elements ,the report required under paragraph 7#a7 shall include the following elements3 7,a7 ,a description of changes to the ,international ,traffic in ,regulations 7,,itar7 and the ,united ,states export control regime that are necessary to implement the ,,aukus agreement and to permit ,,aukus member states and ,canada to exchange defense items at classified and unclassified levels4 7,b7 ,a plan for reducing barriers and implementing the changes as described in ,,itar1 including a description of any changes that will require new authorities from ,congress4 7,c7 ,a description of the progress the ,department of ,defense1 the ,department of ,energy1 and the ,department of ,commerce have made in implementing any changes as described in subparagraphs 7,a7 and 7,b74 7,d7 ,a list of actions the ,departments have requested the ,governments of the ,united ,kingdom and ,australia to take in order to amend their export control systems in a way that is comparable to that of the ,united ,states4 7,e7 ,an assessment of the efforts of ,,aukus partners to enhance collaboration across the following eight trilateral ,lines of ,effort3 7i7 ,undersea capabilities4 7ii7 ,quantum technologies4 7iii7 ,artificial ,intelligence and autonomy4 7iv7 ,advanced cyber capabilities4 7v7 ,hypersonic and counter-hypersonic capabilities4 7vi7 ,electronic warfare4 7vii7 ,innovation4 7viii7 ,information sharing4 7,f7 ,an annex describing the content and timing of consultations amongst ,,aukus partners on ,pillar ,one and for the eight ,lines of ,effort in ,pillar ,two4 7c7 ,briefing ,not later than #ij days after the date of enactment of this ,act1 and annually thereafter for #g years1 the ,president shall provide a briefing to the appropriate congressional committees regarding the status of ,,aukus implementation across both pillars and on all lines of effort4 #g4 ,exemption for license requirements for export of defense items to the ,united ,kingdom and ,australia ,section #ch7;j77#a7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;j77#a77 is amended-- 7#a7 in subparagraph 7,b7-- 7,a7 in the subsection heading1 by inserting 1 the ,united ,kingdom1 and ,australia after ,canada2 and 7,b7 by inserting 1 the ,united ,kingdom1 or ,australia after ,canada2 and 7#b7 in subparagraph 7,c7-- 7,a7 by striking treaties4-- and all that follows through 7i7 ,in general4--,the requirement and inserting treaties4--,the requirement2 7,b7 by striking clause 7ii72 and 7,c7 by redesignating subclauses 7,i7 and 7,,ii7 as clauses 7i7 and 7ii7 and moving such clauses1 as so redesignated1 two ems to the left4 #h4 ,united ,states ,munitions ,list 7a7 ,exemption for the ,governments of the ,united ,kingdom and ,australia from certification and congressional notification requirements applicable to certain transfers ,section #ch7;f77#c7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7;f77#c77 is amended by inserting 1 the ,united ,kingdom1 or ,australia after ,canada4 7b7 ,united ,states ,munitions ,list periodic reviews 7#a7 ,in general ,the ,secretary of ,state1 acting through authority delegated by the ,president to carry out period reviews of items on the ,united ,states ,munitions ,list under subsection 7f7 of section #ch of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bggh7 and in coordination with the ,secretary of ,defense1 the ,secretary of ,energy1 the ,secretary of ,commerce1 and the ,director of the ,office of ,management and ,budget1 shall carry out such reviews not less than every #b years4 7#b7 ,scope ,the periodic reviews described under paragraph 7#a7 shall focus on interagency resources to address current threats faced by the ,united ,states1 the evolving technological and economic landscape1 and the widespread availability of certain technologies and items on the ,united ,states ,munitions ,list4 7#c7 ,consultation ,the periodic reviews described under paragraph 7#a7 shall be conducted in coordination with the ,defense ,trade ,advisory ,group 7,,dtag71 who shall provide relevant industry expertise and recommendations for improvements to facilitate cooperation4 #i4 ,open general license for the export1 reexport1 transfer1 and retransfer of certain defense articles to ,australia1 ,canada1 and the ,united ,kingdom under ,,itar 7a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,state shall publish in the ,federal ,register a notice of proposed rulemaking relating to amending the ,international ,traffic in ,arms ,regulations 7,,itar7 to establish a ,final ,rule establishing an ,open ,general ,export ,license for export1 reexport1 transfer1 and retransfer of certain defense articles and services to or between the ,united ,states1 ,australia1 ,canada1 and the ,united ,kingdom4 ,the ,open ,general ,license shall be available for exports1 reexports1 transfers1 and retransfers of defense articles and services between or among-- 7#a7 the ,government of ,australia2 7#b7 the ,government of ,canada2 7#c7 the ,government of the ,united ,kingdom2 7#d7 members of the ,australian ,community as defined in part #abf4af7;d7 of the ,,itar1 at all locations in ,australia2 7#e7 members of the ,united ,kingdom ,community as defined in part #abf4ag7;d7 of the ,,itar1 at all locations in the ,united ,kingdom2 and 7#f7 ,canadian-registered persons as defined in part #abf4e7;b7 of the ,,itar4 7b7 ,applicable requirements and limitations ,the export1 reexport1 transfer1 or retransfer of any unclassified defense article pursuant to subsection 7a7 to any of the parties listed in such subsection shall be subject to the following requirements and limitations3 7#a7 ,compliance with the requirements of part #abc4i7;b7 of the ,,itar4 7#b7 ,maintenance of the following records with respect to each export1 reexport1 transfer1 and retransfer3 7,a7 ,a description of the defense article or service1 including technical data4 7,b7 ,the name and address of the recipient and the end-user1 and other available contract information4 7,c7 ,the name of the person responsible for the transaction4 7,d7 ,the stated end use of the defense article4 7,e7 ,the date of the transaction4 7,f7 ,the method of transfer4 7#c7 ,ensuring that such records are made available upon request to the ,directorate of ,defense ,trade ,controls 7,,ddtc7 of the ,department of ,state4 7#d7 ,defense articles may not be exported1 reexported1 transferred1 or retransferred under the licenses under subsection 7a7 if they will be used to support the design1 development1 engineering1 manufacture1 production1 assembly1 testing1 repair1 maintenance1 modification1 operation1 destruction or processing of missile or space launch vehicles listed as missile technology on the ,united ,states ,munitions ,list 7,,usml7 maintained under part #aba of the ,,itar4 7#e7 ,the export1 reexport1 transfer1 or retransfer must take place wholly within or between the physical territory of ,australia1 ,canada1 or the ,united ,kingdom and the ,united ,states except for the purposes of maintenance1 repair1 replacement1 or overhaul4 7#f7 ,any export1 reexport1 transfer1 or retransfer of a defense article other than technical data shall be for end use by1 or operation on behalf of1 the ,government of ,australia1 the ,government of ,canada1 the ,government of the ,united ,kingdom1 or the ,government of the ,united ,states4 7#g7 ,a license issued pursuant to subsection 7a7 may not be utilized by persons to whom a presumption of denial is applied by ,,ddtc pursuant to part #abj4a7;c7 or #abg4aa7;a7 of the ,,itar1 including1 among other reasons1 for past convictions of certain ,united ,states criminal statutes or because the persons are otherwise ineligible to contract with or receive an export or import license from an agency of the ,united ,states ,government4 7#h7 ,no exporter may use a license issued pursuant to subsection 7a7 to export1 reexport1 transfer1 retransfer1 or otherwise provide defense articles1 defense services1 or technical data to any foreign person subject to any ,united ,states sanctions as administered by the ,office of ,foreign ,assets ,control 7,,ofac71 subject to any embargo maintained by the ,united ,states1 or otherwise ineligible to receive defense articles1 defense services1 or technical data under ,,itar license or authorizations4 7c7 ,congressional notification ,the export1 reexport1 transfer1 or retransfer pursuant to subsection 7a7 of any major defense equipment 7as defined in part #abj4h of the ,,itar7 valued 7in terms of its original acquisition cost7 at #be1jjj1jjj or more or any defense article or related training or other defense service valued 7in terms of its original acquisition cost7 at #ajj1jjj1jjj or more shall be notified to ,congress for a #ae day formal review period as outlined in the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq474 #aj4 ,license exception for export1 reexport1 and in-country transfer of items on ,commerce ,control ,list to or between ,australia1 ,canada1 and the ,united ,kingdom under ,export ,administration ,regulations 7a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,commerce shall publish in the ,federal ,register a notice of proposed rulemaking relating to amending the ,export ,administration ,regulations to establish a license exception for the export1 reexport1 and in-country transfer of items on the ,commerce ,control ,list to or between covered persons in ,australia1 ,canada1 and the ,united ,kingdom4 7b7 ,requirements ,a person that exports1 reexports1 or in-country transfers an item on the ,commerce ,control ,list under the license exception established under subsection 7a71 and a recipient of such an item1 shall-- 7#a7 comply with all applicable requirements of the ,export ,administration ,regulations2 7#b7 maintain1 for each such export1 reexport1 or in-country transfer1 a record of-- 7,a7 the exporter2 7,b7 a description of the item1 including technology2 7,c7 the name and address1 and other available contact information1 of the recipient and the end-user of the item2 7,d7 the name of the person responsible for the transaction2 7,e7 the stated end use of the item2 7,f7 the date of the transaction2 and 7,g7 the method of transfer2 and 7#c7 ensure that such records are made available1 upon request1 to the ,under ,secretary of ,commerce for ,industry and ,security4 7c7 ,limitations 7#a7 ,limitation on reexports through third countries ,the export1 reexport1 or in-country transfer of an item under the license exception established under subsection 7a7 is required to take place wholly within or between the physical territory of ,australia1 ,canada1 the ,united ,kingdom1 or the ,united ,states1 except for the export1 reexport1 or in-country transfer of such an item for the purposes of maintenance1 repair1 replacement1 or overhaul4 7#b7 ,prohibition on exports to restricted persons ,an item may not be exported1 reexported1 or in-country transferred under the license exception established under subsection 7a7 to any foreign person-- 7,a7 with respect to which sanctions have been imposed by the ,office of ,foreign ,assets ,control of the ,department of the ,treasury2 7,b7 on any restricted parties list2 7,c7 subject to any embargo maintained by the ,united ,states2 or 7,d7 that is otherwise ineligible to receive controlled dual-use or commercial articles or technology on the ,commerce ,control ,list4 7d7 ,definitions ,in this section3 7#a7 ,commerce ,control ,list ,the term ,commerce ,control ,list means the list maintained by the ,bureau of ,industry and ,security of the ,department of ,commerce and set forth in ,supplement ,no4 #a to part #ggd of the ,export ,administration ,regulations4 7#b7 ,covered person 7,a7 ,in general ,except as provided by subparagraph 7,b71 the term covered person means-- 7i7 the government of ,australia1 ,canada1 or the ,united ,kingdom2 7ii7 a citizen or national of ,australia1 ,canada1 or the ,united ,kingdom2 or 7iii7 an entity organized under the laws of1 or otherwise subject to the jurisdiction of1 ,australia1 ,canada1 or the ,united ,kingdom4 7,b7 ,exclusions ,the term covered person does not include any person on any a restricted parties list4 7#c7 ,restricted parties list ,the term restricted parties list means any of the following lists maintained by the ,bureau of ,industry and ,security3 7,a7 ,the ,entity ,list set forth in ,supplement ,no4 #d to part #gdd of the ,export ,administration ,regulations4 7,b7 ,the ,military ,end-,user ,list set forth in ,supplement ,no4 #g to part #gdd of the ,export ,administration ,regulations4 7,c7 ,the ,denied ,persons ,list maintained pursuant to section #gfd4c7;a77#b7 of the ,export ,administration ,regulations4 7,d7 ,the ,unverified ,list set forth in ,supplement ,no4 #f to part #gdd of the ,export ,administration ,regulations4 7#d7 ,other terms ,the terms export1 ,export ,administration ,regulations1 in-country transfer1 item1 and reexport have the meanings given those terms in section #agdb of the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhja74 #aa4 ,treatment of national technology and industrial base as domestic source under ,defense ,production ,act of #aiej ,section #gjb7g77;,a7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deeb7g77;,a77 is amended by striking ,canada and inserting a country of the national technology and industrial base 7as defined in section #dhja of title #aj1 ,united ,states ,code74 #ab4 ,expedited release of advanced technologies to ,australia1 ,canada1 and the ,united ,kingdom through the ,foreign ,military ,sales program 7a7 ,preclearance of certain military sales items 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of ,state1 in coordination with the ,secretary of ,defense1 and in conjunction with coordinating entities such as the ,national ,disclosure ,policy ,committee1 the ,arms ,transfer and ,technology ,release ,senior ,steering ,group1 and other appropriate entities1 shall compile a list of available and emerging military platforms1 technologies1 and equipment that are pre-cleared and prioritized for sale and release to ,australia1 ,canada1 and the ,united ,kingdom through the ,foreign ,military ,sales program4 7#b7 ,rules of construction regarding selection of items 7,a7 ,no limitation on ,foreign ,military ,sales program activities ,the list compiled pursuant to paragraph 7#a7 shall not be construed as limiting the type1 timing1 or quantity of items that may be requested by1 or sold to1 ,australia1 the ,united ,kingdom1 and ,canada under the ,foreign ,military ,sales program4 7,b7 ,congressional notification requirements ,nothing in this ,act shall be construed to supersede congressional notification requirements under the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et4 seq474 7b7 ,expedited processing of ,foreign ,military ,sales requests ,the ,secretary of ,state and the ,secretary of ,defense shall expedite the processing of requests of ,australia1 the ,united ,kingdom1 and ,canada under the ,foreign ,military ,sales program4 7c7 ,release policy for ,australia1 ,canada1 and the ,united ,kingdom ,the ,secretary of ,state1 in consultation with the ,secretary of ,defense1 shall create an anticipatory release policy for key ,foreign ,military ,sales capabilities for ,australia1 the ,united ,kingdom1 and ,canada4 ,review of these capabilities for releasability shall be subject to a fast track decision-making process with a presumption of approval4 ,the capabilities subject to this policy should include-- 7#a7 ,pillar ,one technologies associated with submarine and associated combat systems2 and 7#b7 ,pillar ,two technologies1 including hypersonic missiles1 cyber capabilities1 artificial intelligence1 quantum technologies1 and undersea capabilities1 and other advanced technologies4 7d7 ,interagency policy ,the ,secretary of ,state and the ,secretary of ,defense shall jointly review and update interagency policies and implementation guidance related to ,foreign ,military ,sales requests1 including incorporating the anticipatory release provisions of this section4 #ac4 ,anticipatory disclosure policy for ,australia1 ,canada1 and the ,united ,kingdom ,the ,secretary of ,defense1 in consultation with the ,secretary of ,state1 shall direct the ,national ,disclosure ,policy ,committee 7,,ndpc7 to adopt a classification category for the purposes of anticipatory disclosure policy to facilitate information sharing on ,pillar ,one1 ,pillar ,two1 and other critical technologies for ,australia1 ,canada1 and the ,united ,kingdom4 #ad4 ,report on ,,aukus strategy 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,defense and the ,secretary of ,state shall submit a report to the appropriate congressional committees an ,,aukus strategy identifying4 7b7 ,elements ,the strategy required under subsection 7a7 shall include the following elements3 7#a7 ,an identification of the defensive military capability gaps and capacity shortfalls that ,,aukus seeks to offset4 7#b7 ,an explanation of the total cost associated with ,pillar ,one of ,,aukus and the operational rationale for ,australia's acquisition of nuclear submarines4 7#c7 ,an assessment of possible opportunity costs for other defense capabilities associated with investing in the ,,ssn-,,aukus program4 7#d7 ,a detailed explanation of how the ,australian industrial base will contribute to strengthening the ,united ,states strategic position in ,asia4 7#e7 ,a detailed explanation of the military and strategic benefit provided by the improved access provided by ,australian naval bases4 7#f7 ,an assessment of how sovereign ,united ,kingdom and ,australian submarines contribute to the achievement of ,united ,states military objectives as defined in ,united ,states strategy and planning documents4 7#g7 ,a net assessment contrasting the investments the ,government of the ,people's ,republic of ,china is making in its submarine1 hypersonic missile1 and unmanned antisubmarine technologies relative to that of the ,,aukus partners4 #ae4 ,australia1 ,united ,kingdom1 and ,united ,states submarine security training 7a7 ,in general ,the ,president may transfer or authorize export of defense services to the ,government of ,australia under the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq47 that may also be directly exported to ,australian private sector personnel to support the development of the ,australian submarine industrial base necessary for submarine security activities between ,australia1 the ,united ,kingdom1 and the ,united ,states1 including where such private-sector personnel are not officers1 employees1 or agents of the ,government of ,australia4 7b7 ,application of requirements for further transfer ,any transfer of defense services to the ,government of ,australia pursuant to subsection 7a7 to persons other than those directly provided such defense services pursuant to such subsection shall only be made in accordance with the requirements of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq474