Home > 104th Congressional Bills > H.R. 3121 (enr) To amend the Foreign Assistance Act of 1961 and the Arms Export Control Act to make improvements to certain defense and security assistance provisions under those Acts, to authorize the transfer of naval vessels to certain foreign countrie...

H.R. 3121 (enr) To amend the Foreign Assistance Act of 1961 and the Arms Export Control Act to make improvements to certain defense and security assistance provisions under those Acts, to authorize the transfer of naval vessels to certain foreign countrie...


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104th CONGRESS

  2d Session

                               H. R. 3121

_______________________________________________________________________

                                 AN ACT

    To amend the Foreign Assistance Act of 1961 and the Arms Export 
   Control Act to make improvements to certain defense and security 
 assistance provisions under those Acts, to authorize the transfer of 
  naval vessels to certain foreign countries, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                H. R. 3121

_______________________________________________________________________

                                 AN ACT


 
    To amend the Foreign Assistance Act of 1961 and the Arms Export 
   Control Act to make improvements to certain defense and security 
 assistance provisions under those Acts, to authorize the transfer of 
  naval vessels to certain foreign countries, 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. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Table of contents.
                TITLE I--DEFENSE AND SECURITY ASSISTANCE

               Chapter 1--Military And Related Assistance

Sec. 101. Terms of loans under the Foreign Military Financing program.
Sec. 102. Additional requirements under the Foreign Military Financing 
                            program.
Sec. 103. Drawdown special authorities.
Sec. 104. Transfer of excess defense articles.
Sec. 105. Excess defense articles for certain European countries.
        Chapter 2--International Military Education and Training

Sec. 111. Assistance for Indonesia.
Sec. 112. Additional requirements.
                  Chapter 3--Antiterrorism Assistance

Sec. 121. Antiterrorism training assistance.
Sec. 122. Research and development expenses.
                Chapter 4--Narcotics Control Assistance

Sec. 131. Additional requirements.
Sec. 132. Notification requirement.
Sec. 133. Waiver of restrictions for narcotics-related economic 
                            assistance.
                      Chapter 5--Other Provisions

Sec. 141. Standardization of congressional review procedures for arms 
                            transfers.
Sec. 142. Standardization of third country transfers of defense 
                            articles.
Sec. 143. Increased standardization, rationalization, and 
                            interoperability of assistance and sales 
                            programs.
Sec. 144. Definition of significant military equipment.
Sec. 145. Elimination of annual reporting requirement relating to the 
                            Special Defense Acquisition Fund.
Sec. 146. Cost of leased defense articles that have been lost or 
                            destroyed.
Sec. 147. Designation of major non-NATO allies.
Sec. 148. Certification thresholds.
Sec. 149. Depleted uranium ammunition.
Sec. 150. End-use monitoring of defense articles and defense services.
Sec. 151. Brokering activities relating to commercial sales of defense 
                            articles and services.
Sec. 152. Return and exchanges of defense articles previously 
                            transferred pursuant to the arms export 
                            control act.
Sec. 153. National security interest determination to waive 
                            reimbursement of depreciation for leased 
                            defense articles.
Sec. 154. Eligibility of Panama under Arms Export Control Act.
    TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

Sec. 201. Authority to transfer naval vessels.
Sec. 202. Costs of transfers.
Sec. 203. Expiration of authority.
Sec. 204. Repair and refurbishment of vessels in United States 
                            shipyards.

                TITLE I--DEFENSE AND SECURITY ASSISTANCE

               CHAPTER 1--MILITARY AND RELATED ASSISTANCE

SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILITARY FINANCING PROGRAM.

    Section 31(c) of the Arms Export Control Act (22 U.S.C. 2771(c)) is 
amended to read as follows:
    ``(c) Loans available under section 23 shall be provided at rates 
of interest that are not less than the current average market yield on 
outstanding marketable obligations of the United States of comparable 
maturities.''.

SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOREIGN MILITARY FINANCING 
              PROGRAM.

    (a) Audit of Certain Private Firms.--Section 23 of the Arms Export 
Control Act (22 U.S.C. 2763) is amended by adding at the end the 
following new subsection:
    ``(f) For each fiscal year, the Secretary of Defense, as requested 
by the Director of the Defense Security Assistance Agency, shall 
conduct audits on a nonreimbursable basis of private firms that have 
entered into contracts with foreign governments under which defense 
articles, defense services, or design and construction services are to 
be procured by such firms for such governments from financing under 
this section.''.
    (b) Notification Requirement With Respect to Cash Flow Financing.--
Section 23 of such Act (22 U.S.C. 2763), as amended by this Act, is 
further amended by adding at the end the following new subsection:
    ``(g)(1) For each country and international organization that has 
been approved for cash flow financing under this section, any letter of 
offer and acceptance or other purchase agreement, or any amendment 
thereto, for a procurement of defense articles, defense services, or 
design and construction services in excess of $100,000,000 that is to 
be financed in whole or in part with funds made available under this 
Act or the Foreign Assistance Act of 1961 shall be submitted to the 
congressional committees specified in section 634A(a) of the Foreign 
Assistance Act of 1961 in accordance with the procedures applicable to 
reprogramming notifications under that section.
    ``(2) For purposes of this subsection, the term `cash flow 
financing' has the meaning given such term in the second subsection (d) 
of section 25.''.
    (c) Limitations on Use of Funds for Direct Commercial Contracts.--
Section 23 of such Act (22 U.S.C. 2763), as amended by this Act, is 
further amended by adding at the end the following new subsection:
    ``(h) Of the amounts made available for a fiscal year to carry out 
this section, not more than $100,000,000 for such fiscal year may be 
made available for countries other than Israel and Egypt for the 
purpose of financing the procurement of defense articles, defense 
services, and design and construction services that are not sold by the 
United States Government under this Act.''.
    (d) Annual Estimate and Justification for Sales Program.--Section 
25(a) of such Act (22 U.S.C. 2765(a)) is amended--
            (1) by striking the ``and'' at the end of paragraph (11);
            (2) by redesignating paragraph (12) as paragraph (13); and
            (3) by inserting after paragraph (11) the following new 
        paragraph:
            ``(12)(A) a detailed accounting of all articles, services, 
        credits, guarantees, or any other form of assistance furnished 
        by the United States to each country and international 
        organization, including payments to the United Nations, during 
        the preceding fiscal year for the detection and clearance of 
        landmines, including activities relating to the furnishing of 
        education, training, and technical assistance for the detection 
        and clearance of landmines; and
            ``(B) for each provision of law making funds available or 
        authorizing appropriations for demining activities described in 
        subparagraph (A), an analysis and description of the objectives 
        and activities undertaken during the preceding fiscal year, 
        including the number of personnel involved in performing such 
        activities; and''.

SEC. 103. DRAWDOWN SPECIAL AUTHORITIES.

    (a) Unforeseen Emergency Drawdown.--Section 506(a)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is amended by 
striking ``$75,000,000'' and inserting ``$100,000,000''.
    (b) Additional Drawdown.--Section 506 of such Act (22 U.S.C. 2318) 
is amended--
            (1) in subsection (a)(2)(A), by striking ``defense articles 
        from the stocks'' and all that follows and inserting the 
        following: ``articles and services from the inventory and 
        resources of any agency of the United States Government and 
        military education and training from the Department of Defense, 
        the President may direct the drawdown of such articles, 
        services, and military education and training--
                    ``(i) for the purposes and under the authorities 
                of--
                            ``(I) chapter 8 of part I (relating to 
                        international narcotics control assistance);
                            ``(II) chapter 9 of part I (relating to 
                        international disaster assistance); or
                            ``(III) the Migration and Refugee 
                        Assistance Act of 1962; or
                    ``(ii) for the purpose of providing such articles, 
                services, and military education and training to 
                Vietnam, Cambodia, and Laos as the President determines 
                are necessary--
                            ``(I) to support cooperative efforts to 
                        locate and repatriate members of the United 
                        States Armed Forces and civilians employed 
                        directly or indirectly by the United States 
                        Government who remain unaccounted for from the 
                        Vietnam War; and
                            ``(II) to ensure the safety of United 
                        States Government personnel engaged in such 
                        cooperative efforts and to support Department 
                        of Defense-sponsored humanitarian projects 
                        associated with such efforts.'';
            (2) in subsection (a)(2)(B), by striking ``$75,000,000'' 
        and all that follows and inserting ``$150,000,000 in any fiscal 
        year of such articles, services, and military education and 
        training may be provided pursuant to subparagraph (A) of this 
        paragraph--
                    ``(i) not more than $75,000,000 of which may be 
                provided from the drawdown from the inventory and 
                resources of the Department of Defense;
                    ``(ii) not more than $75,000,000 of which may be 
                provided pursuant to clause (i)(I) of such 
                subparagraph; and
                    ``(iii) not more than $15,000,000 of which may be 
                provided to Vietnam, Cambodia, and Laos pursuant to 
                clause (ii) of such subparagraph.''; and
            (3) in subsection (b)(1), by adding at the end the 
        following: ``In the case of drawdowns authorized by subclauses 
        (I) and (III) of subsection (a)(2)(A)(i), notifications shall 
        be provided to those committees at least 15 days in advance of 
        the drawdowns in accordance with the procedures applicable to 
        reprogramming notifications under section 634A.''.
    (c) Notice to Congress of Exercise of Special Authorities.--Section 
652 of such Act (22 U.S.C. 2411) is amended by striking ``prior to the 
date'' and inserting ``before''.

SEC. 104. TRANSFER OF EXCESS DEFENSE ARTICLES.

    (a) In General.--Section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) is amended to read as follows:

``SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

    ``(a) Authorization.--The President is authorized to transfer 
excess defense articles under this section to countries for which 
receipt of such articles was justified pursuant to the annual 
congressional presentation documents for military assistance programs, 
or for programs under chapter 8 of part I of this Act, submitted under 
section 634 of this Act, or for which receipt of such articles was 
separately justified to the Congress, for the fiscal year in which the 
transfer is authorized.
    ``(b) Limitations on Transfers.--The President may transfer excess 
defense articles under this section only if--
            ``(1) such articles are drawn from existing stocks of the 
        Department of Defense;
            ``(2) funds available to the Department of Defense for the 
        procurement of defense equipment are not expended in connection 
        with the transfer;
            ``(3) the transfer of such articles will not have an 
        adverse impact on the military readiness of the United States;
            ``(4) with respect to a proposed transfer of such articles 
        on a grant basis, such a transfer is preferable to a transfer 
        on a sales basis, after taking into account the potential 
        proceeds from, and likelihood of, such sales, and the 
        comparative foreign policy benefits that may accrue to the 
        United States as the result of a transfer on either a grant or 
        sales basis;
            ``(5) the President determines that the transfer of such 
        articles will not have an adverse impact on the national 
        technology and industrial base and, particularly, will not 
        reduce the opportunities of entities in the national technology 
        and industrial base to sell new or used equipment to the 
        countries to which such articles are transferred; and
            ``(6) the transfer of such articles is consistent with the 
        policy framework for the Eastern Mediterranean established 
        under section 620C of this Act.
    ``(c) Terms of Transfers.--
            ``(1) No cost to recipient country.--Excess defense 

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