Home > 106th Congressional Bills > H.R. 973 (ih) To modify authorities with respect to the provision of security assistance under the Foreign Assistance Act of 1961 and the Arms Export Control Act, and for other purposes. [Introduced in House] ...H.R. 973 (ih) To modify authorities with respect to the provision of security assistance under the Foreign Assistance Act of 1961 and the Arms Export Control Act, and for other purposes. [Introduced in House] ...
106th CONGRESS
1st Session
H. R. 973
_______________________________________________________________________
AN ACT
To modify authorities with respect to the provision of security
assistance under the Foreign Assistance Act of 1961 and the Arms Export
Control Act, and for other purposes.
106th CONGRESS
1st Session
H. R. 973
_______________________________________________________________________
AN ACT
To modify authorities with respect to the provision of security
assistance under the Foreign Assistance Act of 1961 and the Arms Export
Control Act, 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 Assistance Act of 1999''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--TRANSFERS OF EXCESS DEFENSE ARTICLES
Sec. 101. Excess defense articles for central European countries.
Sec. 102. Excess defense articles for certain independent States of the
former Soviet Union.
TITLE II--FOREIGN MILITARY SALES AUTHORITIES
Sec. 201. Termination of foreign military financed training.
Sec. 202. Sales of excess Coast Guard property.
Sec. 203. Competitive pricing for sales of defense articles.
Sec. 204. Reporting of offset agreements.
Sec. 205. Notification of upgrades to direct commercial sales.
Sec. 206. Expanded prohibition on incentive payments.
Sec. 207. Administrative fees for leasing of defense articles.
TITLE III--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
Sec. 301. Additions to United States war reserve stockpiles for allies.
Sec. 302. Transfer of certain obsolete or surplus defense articles in
the war reserves stockpile for allies.
TITLE IV--INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT OF 1999
Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. International arms sales code of conduct.
TITLE V--AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM CERTAIN SANCTIONS
Sec. 501. Waiver authority.
Sec. 502. Consultation.
Sec. 503. Reporting requirement.
Sec. 504. Appropriate congressional committees defined.
TITLE VI--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES
Sec. 601. Authority to transfer naval vessels.
Sec. 602. Inapplicability of aggregate annual limitation on value of
transferred excess defense articles.
Sec. 603. Costs of transfers.
Sec. 604. Expiration of authority.
Sec. 605. Repair and refurbishment of vessels in United States
shipyards.
Sec. 606. Sense of the Congress relating to transfer of naval vessels
and aircraft to the Government of the
Philippines.
TITLE VII--MISCELLANEOUS PROVISIONS
Sec. 701. Annual military assistance reports.
Sec. 702. Publication of arms sales certifications.
Sec. 703. Notification requirements for commercial export of
significant military equipment on United
States Munitions List.
Sec. 704. Enforcement of Arms Export Control Act.
Sec. 705. Violations relating to material support to terrorists.
Sec. 706. Authority to consent to third party transfer of ex-U.S.S.
Bowman County to USS LST Ship Memorial,
Inc.
Sec. 707. Exceptions relating to prohibitions on assistance to
countries involved in transfer or use of
nuclear explosive devices.
Sec. 708. Continuation of the export control regulations under IEEPA.
TITLE I--TRANSFERS OF EXCESS DEFENSE ARTICLES
SEC. 101. EXCESS DEFENSE ARTICLES FOR CENTRAL EUROPEAN COUNTRIES.
Section 105 of Public Law 104-164 (110 Stat. 1427) is amended by
striking ``1996 and 1997'' and inserting ``2000 and 2001''.
SEC. 102. EXCESS DEFENSE ARTICLES FOR CERTAIN INDEPENDENT STATES OF THE
FORMER SOVIET UNION.
(a) Uses For Which Funds Are Available.--Notwithstanding section
516(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e)),
during each of the fiscal years 2000 and 2001, funds available to the
Department of Defense may be expended for crating, packing, handling,
and transportation of excess defense articles transferred under the
authority of section 516 of that Act to Georgia, Kazakhstan,
Kyrgyzstan, Moldova, Turkmenistan, Ukraine, and Uzbekistan.
(b) Content of Congressional Notification.--Each notification
required to be submitted under section 516(f) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j(f)) with respect to a proposed transfer of
a defense article described in subsection (a) shall include an estimate
of the amount of funds to be expended under subsection (a) with respect
to that transfer.
TITLE II--FOREIGN MILITARY SALES AUTHORITIES
SEC. 201. TERMINATION OF FOREIGN MILITARY FINANCED TRAINING.
Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2367)
is amended--
(1) by inserting in the second sentence ``and the Arms
Export Control Act'' after ``under this Act'' the first place
it appears;
(2) by striking ``under this Act'' the second place it
appears; and
(3) by inserting in the third sentence ``and under the Arms
Export Control Act'' after ``this Act''.
SEC. 202. SALES OF EXCESS COAST GUARD PROPERTY.
Section 21(a)(1) of the Arms Export Control Act (22 U.S.C.
2761(a)(1)) is amended in the text above subparagraph (A) by inserting
``and the Coast Guard'' after ``Department of Defense''.
SEC. 203. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES.
Section 22(d) of the Arms Export Control Act (22 U.S.C. 2762(d)) is
amended--
(1) by striking ``Procurement contracts'' and inserting
``(1) Procurement contracts''; and
(2) by adding at the end the following:
``(2) Direct costs associated with meeting additional or unique
requirements of the purchaser shall be allowable under contracts
described in paragraph (1). Loadings applicable to such direct costs
shall be permitted at the same rates applicable to procurement of like
items purchased by the Department of Defense for its own use.''.
SEC. 204. REPORTING OF OFFSET AGREEMENTS.
(a) Government-to-Government Sales.--Section 36(b)(1) of the Arms
Export Control Act (22 U.S.C. 2776(b)(1)) is amended in the fourth
sentence by striking ``(if known on the date of transmittal of such
certification)'' and inserting ``and, if known on the date of
transmittal of such certification, a description of the offset
agreement. Such description may be included in the classified portion
of such numbered certification''.
(b) Commercial Sales.--Section 36(c)(1) of the Arms Export Control
Act (22 U.S.C. 2776(c)(1)) is amended in the second sentence by
striking ``(if known on the date of transmittal of such
certification)'' and inserting ``and, if known on the date of
transmittal of such certification, a description of the offset
agreement. Such description may be included in the classified portion
of such numbered certification''.
SEC. 205. NOTIFICATION OF UPGRADES TO DIRECT COMMERCIAL SALES.
Section 36(c) of the Arms Export Control Act (22 U.S.C. 2776(c)) is
amended by adding at the end the following new paragraph:
``(4) The provisions of subsection (b)(5) shall apply to any
equipment, article, or service for which a numbered certification has
been transmitted to Congress pursuant to paragraph (1) in the same
manner and to the same extent as that subsection applies to any
equipment, article, or service for which a numbered certification has
been transmitted to Congress pursuant to subsection (b)(1). For
purposes of such application, any reference in subsection (b)(5) to `a
letter of offer' or `an offer' shall be deemed to be a reference to `a
contract'.''.
SEC. 206. EXPANDED PROHIBITION ON INCENTIVE PAYMENTS.
(a) In General.--Section 39A(a) of the Arms Export Control Act (22
U.S.C. 2779a(a)) is amended--
(1) by inserting ``or licensed'' after ``sold''; and
(2) by inserting ``or export'' after ``sale''.
(b) Definition of United States Person.--Section 39A(d)(3)(B)(ii)
of the Arms Export Control Act (22 U.S.C. 2779a(d)(3)(B)(ii)) is
amended by inserting ``or by an entity described in clause (i)'' after
``subparagraph (A)''.
SEC. 207. ADMINISTRATIVE FEES FOR LEASING OF DEFENSE ARTICLES.
Section 61(a) of the Arms Export Control Act (22 U.S.C. 2796(a)) is
amended in paragraph (4) of the first sentence by inserting after
``including reimbursement for depreciation of such articles while
leased,'' the following: ``a fee for the administrative services
associated with processing such leasing,''.
TITLE III--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
SEC. 301. ADDITIONS TO UNITED STATES WAR RESERVE STOCKPILES FOR ALLIES.
Paragraph (2) of section 514(b) of the Foreign Assistance Act of
1961 (22 U.S.C. 2321h(b)(2)) is amended to read as follows:
``(2)(A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$340,000,000 for fiscal year 1999 and $60,000,000 for fiscal
year 2000.
``(B)(i) Of the amount specified in subparagraph (A) for
fiscal year 1999, not more than $320,000,000 may be made
available for stockpiles in the Republic of Korea and not more
than $20,000,000 may be made available for stockpiles in
Thailand.
``(ii) Of the amount specified in subparagraph (A) for
fiscal year 2000, not more than $40,000,000 may be made
available for stockpiles in the Republic of Korea and not more
than $20,000,000 may be made available for stockpiles in
Thailand.''.
SEC. 302. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN
THE WAR RESERVES STOCKPILE FOR ALLIES.
(a) Items in the Korean Stockpile.--
(1) In general.--Notwithstanding section 514 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321h), the President is
authorized to transfer to the Republic of Korea, in return for
concessions to be negotiated by the Secretary of Defense, with
the concurrence of the Secretary of State, any or all of the
items described in paragraph (2).
(2) Covered items.--The items referred to in paragraph (1)
are munitions, equipment, and material such as tanks, trucks,
artillery, mortars, general purpose bombs, repair parts,
ammunition, barrier material, and ancillary equipment, if such
items are--
(A) obsolete or surplus items;
(B) in the inventory of the Department of Defense;
(C) intended for use as reserve stocks for the
Republic of Korea; and
(D) as of the date of enactment of this Act,
located in a stockpile in the Republic of Korea.
(b) Items in the Thailand Stockpile.--
(1) In general.--Notwithstanding section 514 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321h), the President is
authorized to transfer to Thailand, in return for concessions
to be negotiated by the Secretary of Defense, with the
concurrence of the Secretary of State, any or all of the items
in the WRS-T stockpile described in paragraph (2).
(2) Covered items.--The items referred to in paragraph (1)
are munitions, equipment, and material such as tanks, trucks,
artillery, mortars, general purpose bombs, repair parts,
ammunition, barrier material, and ancillary equipment, if such
items are--
(A) obsolete or surplus items;
(B) in the inventory of the Department of Defense;
(C) intended for use as reserve stocks for
Thailand; and
(D) as of the date of enactment of this Act,
located in a stockpile in Thailand.
(c) Valuation of Concessions.--The value of concessions negotiated
pursuant to subsections (a) and (b) shall be at least equal to the fair
market value of the items transferred. The concessions may include cash
compensation, services, waiver of charges otherwise payable by the
United States, and other items of value.
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