I 

113TH CONGRESS 

1ST SESSION H. R. 3470 

To provide for the transfer of naval vessels to certain foreign countries, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 13, 2013 

Mr. ROYCE (for himself and Mr. ENGEL) introduced the following bill; which 

was referred to the Committee on Foreign Affairs 

A BILL 

To provide for the transfer of naval vessels to certain foreign 

countries, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Naval Vessel Transfer and Arms Export Control Amend6 ments Act of 2013’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 

RECIPIENTS 

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Sec. 101. Transfer of naval vessels to certain foreign recipients. 

TITLE II—ARMS EXPORT CONTROL ACT AMENDMENTS 

Sec. 201. Increase in congressional notification thresholds. 

Sec. 202. Licensing of certain commerce-controlled items. 

Sec. 203. Amendments relating to removal of items from the United States Munitions List. 

Sec. 204. Amendment to definition of ‘‘security assistance’’ under the Foreign 

Assistance Act of 1961. 

Sec. 205. Amendments to definitions of ‘‘defense article’’ and ‘‘defense service’’ 

under the Arms Export Control Act. 

Sec. 206. Revision of statutory references to former NATO support organizations and related NATO agreements. 

Sec. 207. Technical amendments. 

1 TITLE I—TRANSFER OF NAVAL 

2 VESSELS TO CERTAIN FOR3 EIGN RECIPIENTS 

4 SEC. 101. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR5 EIGN RECIPIENTS. 

6 (a) TRANSFERS BY GRANT.—The President is au7 thorized to transfer vessels to foreign countries on a grant 

8 basis under section 516 of the Foreign Assistance Act of 

9 1961 (22 U.S.C. 2321j), as follows: 

10 (1) MEXICO.—To the Government of Mexico, 

11 the OLIVER HAZARD PERRY class guided missile 

12 frigates USS CURTS (FFG–38) and USS 

13 MCCLUSKY (FFG–41). 

14 (2) THAILAND.—To the Government of Thai15 land, the OLIVER HAZARD PERRY class guided 

16 missile frigates USS RENTZ (FFG–46) and USS 

17 VANDEGRIFT (FFG–48). 

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1 (b) TRANSFER BY SALE.—The President is author2 ized to transfer the OLIVER HAZARD PERRY class 

3 guided missile frigates USS TAYLOR (FFG–50), USS 

4 GARY (FFG–51), USS CARR (FFG–52), and USS 

5 ELROD (FFG–55) to the Taipei Economic and Cultural 

6 Representative Office of the United States (which is the 

7 Taiwan instrumentality designated pursuant to section 

8 10(a) of the Taiwan Relations Act (22 U.S.C. 3309(a))) 

9 on a sale basis under section 21 of the Arms Export Con10 trol Act (22 U.S.C. 2761). 

11 (c) ALTERNATIVE TRANSFER AUTHORITY.—Not12 withstanding the authority provided in subsections (a) and 

13 (b) to transfer specific vessels to specific countries, the 

14 President is authorized, subject to the same conditions 

15 that would apply for such country under this Act, to trans16 fer any vessel named in this Act to any country named 

17 in this Act such that the total number of vessels trans18 ferred to such country does not exceed the total number 

19 of vessels authorized for transfer to such country by this 

20 Act. 

21 (d) GRANTS NOT COUNTED IN ANNUAL TOTAL OF

22 TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 

23 of a vessel transferred to another country on a grant basis 

24 pursuant to authority provided by subsection (a) or (c) 

25 shall not be counted against the aggregate value of excess 

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1 defense articles transferred in any fiscal year under sec2 tion 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 

3 2321j). 

4 (e) COSTS OF TRANSFERS.—Any expense incurred by 

5 the United States in connection with a transfer authorized 

6 by this section shall be charged to the recipient notwith7 standing section 516(e) of the Foreign Assistance Act of 

8 1961 (22 U.S.C. 2321j(e)). 

9 (f) REPAIR AND REFURBISHMENT IN UNITED

10 STATES SHIPYARDS.—To the maximum extent prac11 ticable, the President shall require, as a condition of the 

12 transfer of a vessel under this section, that the recipient 

13 to which the vessel is transferred have such repair or re14 furbishment of the vessel as is needed, before the vessel 

15 joins the naval forces of that recipient, performed at a 

16 shipyard located in the United States, including a United 

17 States Navy shipyard. 

18 (g) EXPIRATION OF AUTHORITY.—The authority to 

19 transfer a vessel under this section shall expire at the end 

20 of the 3-year period beginning on the date of the enact21 ment of this Act. 

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1 TITLE II—ARMS EXPORT 

2 CONTROL ACT AMENDMENTS 

3 SEC. 201. INCREASE IN CONGRESSIONAL NOTIFICATION 

4 THRESHOLDS. 

5 (a) FOREIGN MILITARY SALES.— 

6 (1) IN GENERAL.—Section 36(b)(1) of the 

7 Arms Export Control Act (22 U.S.C. 2776(b)(1)) is 

8 amended— 

9 (A) in the matter preceding subparagraph 

10 (A)— 

11 (i) by striking ‘‘$50,000,000’’ and in12 serting ‘‘$100,000,000’’; 

13 (ii) by striking ‘‘$200,000,000’’ and 

14 inserting ‘‘$300,000,000’’; and 

15 (iii) by striking ‘‘$14,000,000’’ and 

16 inserting ‘‘$25,000,000’’; and 

17 (B) in the matter following subparagraph 

18 (P)— 

19 (i) by inserting ‘‘of any defense arti20 cles or defense services under this Act for 

21 $200,000,000 or more, any design and 

22 construction services for $300,000,000 or 

23 more, or any major defense equipment for 

24 $75,000,000 or more,’’ after ‘‘The letter of 

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1 offer shall not be issued, with respect to a 

2 proposed sale’’; and 

3 (ii) by inserting ‘‘of any defense arti4 cles or services under this Act for 

5 $100,000,000 or more, any design and 

6 construction services for $200,000,000 or 

7 more, or any major defense equipment for 

8 $50,000,000 or more,’’ after ‘‘or with re9 spect to a proposed sale’’. 

10 (2) TECHNICAL AND CONFORMING AMEND11 MENTS.—Section 36(b) of the Arms Export Control 

12 Act (22 U.S.C. 2776(b)) is amended— 

13 (A) in paragraph (1), by striking ‘‘Subject 

14 to paragraph (6), in’’ and inserting ‘‘In’’; 

15 (B) in paragraph (5)(C), by striking ‘‘Sub16 ject to paragraph (6), if’’ and inserting ‘‘If’’; 

17 and 

18 (C) by striking paragraph (6). 

19 (b) COMMERCIAL SALES.—Section 36(c) of the Arms 

20 Export Control Act (22 U.S.C. 2776(c)) is amended— 

21 (1) in paragraph (1)— 

22 (A) by striking ‘‘Subject to paragraph (5), 

23 in’’ and inserting ‘‘In’’; 

24 (B) by striking ‘‘$14,000,000’’ and insert25 ing ‘‘$25,000,000’’; and 

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1 (C) by striking ‘‘$50,000,000’’ and insert2 ing ‘‘$100,000,000’’; 

3 (2) in paragraph (2)— 

4 (A) in subparagraph (A), by inserting after 

5 ‘‘for an export’’ the following: ‘‘of any major 

6 defense equipment sold under a contract in the 

7 amount of $75,000,000 or more or of defense 

8 articles or defense services sold under a con9 tract in the amount of $200,000,000 or more, 

10 (or, in the case of a defense article that is a 

11 firearm controlled under category I of the 

12 United States Munitions List, $1,000,000 or 

13 more)’’; and 

14 (B) in subparagraph (C), by inserting after 

15 ‘‘license’’ the following: ‘‘for an export of any 

16 major defense equipment sold under a contract 

17 in the amount of $50,000,000 or more or of de18 fense articles or defense services sold under a 

19 contract in the amount of $100,000,000 or 

20 more, (or, in the case of a defense article that 

21 is a firearm controlled under category I of the 

22 United States Munitions List, $1,000,000 or 

23 more)’’; 

24 (3) by striking paragraph (5); and 

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1 (4) by redesignating paragraph (6) as para2 graph (5). 

3 SEC. 202. LICENSING OF CERTAIN COMMERCE-CON4 TROLLED ITEMS. 

5 Section 38 of the Arms Export Control Act (22 

6 U.S.C. 2778) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(k) LICENSING OF CERTAIN COMMERCE-CON9 TROLLED ITEMS.— 

10 ‘‘(1) IN GENERAL.—A license or other approval 

11 from the Department of State granted in accordance 

12 with this section may also authorize the export of 

13 items subject to the Export Administration Regula14 tions if such items are to be used in or with defense 

15 articles controlled on the United States Munitions 

16 List. 

17 ‘‘(2) OTHER REQUIREMENTS.—The following 

18 requirements shall apply with respect to a license or 

19 other approval to authorize the export of items sub20 ject to the Export Administration Regulations under 

21 paragraph (1): 

22 ‘‘(A) Separate approval from the Depart23 ment of Commerce shall not be required for 

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1 port under a Department of State license or 

2 other approval. 

3 ‘‘(B) Such items subject to the Export Ad4 ministration Regulations that are exported pur5 suant to a Department of State license or other 

6 approval would remain under the jurisdiction of 

7 the Department of Commerce with respect to 

8 any subsequent transactions. 

9 ‘‘(C) The inclusion of the term ‘subject to 

10 the EAR’ or any similar term on a Department 

11 of State license or approval shall not affect the 

12 jurisdiction with respect to such items. 

13 ‘‘(3) DEFINITION.—In this subsection, the term 

14 ‘Export Administration Regulations’ means— 

15 ‘‘(A) the Export Administration Regula16 tions as maintained and amended under the au17 thority of the International Emergency Eco18 nomic Powers Act (50 U.S.C. 1701 et seq.); or 

19 ‘‘(B) any successor regulations.’’. 

20 SEC. 203. AMENDMENTS RELATING TO REMOVAL OF ITEMS 

21 FROM THE UNITED STATES MUNITIONS LIST. 

22 (a) REQUIREMENTS FOR REMOVAL OF MAJOR DE23 FENSE EQUIPMENT AND SIGNIFICANT MILITARY EQUIP24 MENT FROM THE UNITED STATES MUNITIONS LIST.— 

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1 Section 38(f) of the Arms Export Control Act (22 U.S.C. 

2 2778(f)) is amended by adding at the end the following: 

3 ‘‘(5)(A) Except as provided in subparagraph 

4 (B), the President shall take such actions as may be 

5 necessary to ensure that any major defense equip6 ment or significant military equipment that is re7 moved from the United States Munitions List and 

8 transferred to the Commerce Control List for pur9 poses of commercial export is not subsequently 

10 modified so as to transform such equipment into a 

11 defense article. 

12 ‘‘(B) The President may authorize the trans13 formation of major defense equipment or significant 

14 military equipment that is removed from the United 

15 States Munitions List and transferred to the Com16 merce Control List for purposes of commercial ex17 port into a defense article if the President— 

18 ‘‘(i) determines that such transformation is 

19 appropriate and in the national interests of the 

20 United States; and 

21 ‘‘(ii) provides notice of such transformation 

22 to the chairman of the Committee on Foreign 

23 Affairs of the House of Representatives and the 

24 chairman of the Committee on Foreign Rela25 tions of the Senate consistent with the notificamstockstill on DSK4VPTVN1PROD with BILLS

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1 tion requirements of section 36(b)(5)(A) of this 

2 Act. 

3 ‘‘(C) In this paragraph— 

4 ‘‘(i) the term ‘Commerce Control List’ 

5 means— 

6 ‘‘(I) items transferred from the 

7 United States Munitions List to the Com8 merce Control List and designated as ‘600 

9 series’ items on the Commerce Control List 

10 under the Export Administration Regula11 tions, as proposed by the Bureau of Indus12 try and Security of the Department of 

13 Commerce on July 15, 2011 (76 Fed. Reg. 

14 41958); or 

15 ‘‘(II) any successor regulations; and 

16 ‘‘(ii) the term ‘defense article’ means an 

17 item designated by the President pursuant to 

18 subsection (a)(1).’’. 

19 (b) NOTIFICATION AND REPORTING REQUIREMENTS

20 FOR MAJOR DEFENSE EQUIPMENT AND SIGNIFICANT

21 MILITARY EQUIPMENT REMOVED FROM THE UNITED

22 STATES MUNITIONS LIST.—Section 38(f) of the Arms Ex23 port Control Act (22 U.S.C. 2778(f)), as amended by this 

24 section, is further amended by adding at the end the fol25 lowing: 

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1 ‘‘(6) The President shall ensure that any item 

2 that is major defense equipment or significant mili3 tary equipment and is removed from the United 

4 States Munitions List shall continue to be subject to 

5 the notification and reporting requirements of the 

6 following provisions of law: 

7 ‘‘(A) Section 516(f) of the Foreign Assist8 ance Act of 1961 (22 U.S.C. 2321j(f)). 

9 ‘‘(B) Section 655 of the Foreign Assist10 ance Act of 1961 (22 U.S.C. 2415). 

11 ‘‘(C) Section 3(d)(3)(A) of this Act. 

12 ‘‘(D) Section 25 of this Act. 

13 ‘‘(E) Sections 36(b), (c), and (d) of this 

14 Act.’’. 

15 SEC. 204. AMENDMENT TO DEFINITION OF ‘‘SECURITY AS16 SISTANCE’’ UNDER THE FOREIGN ASSIST17 ANCE ACT OF 1961. 

18 Section 502B(d) of the Foreign Assistance Act of 

19 1961 (22 U.S.C. 2304(d)) is amended— 

20 (1) in paragraph (1), by striking ‘‘and’’ at the 

21 end; 

22 (2) in paragraph (2)(C) to read as follows: 

23 ‘‘(C) any license in effect with respect to 

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1 telligence, or other internal security forces of a 

2 foreign country of— 

3 ‘‘(i) defense articles or defense serv4 ices under section 38 of the Armed Export 

5 Control Act; or 

6 ‘‘(ii) ‘600 series’ items on the Com7 merce Control List under the Export Ad8 ministration Regulations, as proposed by 

9 the Bureau of Industry and Security of the 

10 Department of Commerce on July 15, 

11 2011 (76 Fed. Reg. 41958), or any suc12 cessor regulations;’’; and 

13 (3) by adding at the end the following new 

14 paragraphs: 

15 ‘‘(3) the term ‘Commerce Control List’ 

16 means— 

17 ‘‘(A) items transferred from the United 

18 States Munitions List to the Commerce Control 

19 List and designated as ‘600 series’ items on the 

20 Commerce Control List under the Export Ad21 ministration Regulations, as proposed by the 

22 Bureau of Industry and Security of the Depart23 ment of Commerce on July 15, 2011 (76 Fed. 

24 Reg. 41958); or 

25 ‘‘(B) any successor regulations; and 

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1 ‘‘(4) the term ‘Export Administration Regula2 tions’ means— 

3 ‘‘(A) the Export Administration Regula4 tions as maintained and amended under the au5 thority of the International Emergency Eco6 nomic Powers Act (50 U.S.C. 1701 et seq.); or 

7 ‘‘(B) any successor regulations.’’. 

8 SEC. 205. AMENDMENTS TO DEFINITIONS OF ‘‘DEFENSE AR9 TICLE’’ AND ‘‘DEFENSE SERVICE’’ UNDER THE 

10 ARMS EXPORT CONTROL ACT. 

11 Section 47 of the Arms Export Control Act (22 

12 U.S.C. 2794) is amended— 

13 (1) in the matter preceding subparagraph (A) 

14 of paragraph (3), by striking ‘‘includes’’ and insert15 ing ‘‘means, with respect to a sale or transfer by the 

16 United States under the authority of this Act or any 

17 other foreign assistance or sales program of the 

18 United States’’; and 

19 (2) in paragraph (4), by striking ‘‘includes’’ 

20 and inserting ‘‘means, with respect to a sale or 

21 transfer by the United States under the authority of 

22 this Act or any other foreign assistance or sales pro23 gram of the United States,’’. 

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1 SEC. 206. REVISION OF STATUTORY REFERENCES TO 

2 FORMER NATO SUPPORT ORGANIZATIONS 

3 AND RELATED NATO AGREEMENTS. 

4 Section 21(e)(3) of the Arms Export Control Act (22 

5 U.S.C. 2761(e)(3)) is amended— 

6 (1) in subparagraphs (A) and (C)(i), by striking 

7 ‘‘Maintenance and Supply Agency of the North At8 lantic Treaty Organization’’ and inserting ‘‘North 

9 Atlantic Treaty Organization (NATO) Support Or10 ganization and its executive agencies’’; and 

11 (2) in subparagraph (C)(i)(II), by striking ‘‘a 

12 specific weapon system’’ and inserting ‘‘activities’’. 

13 SEC. 207. TECHNICAL AMENDMENTS. 

14 The Arms Export Control Act (22 U.S.C. 2751 et 

15 seq.) is amended— 

16 (1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 

17 5(c), 6, 21(g), 36(a), 36(b)(1), 36(b)(5)(C), 

18 36(c)(1), 36(f), 38(f)(1), 40(f)(1), 40(g)(2)(B), 

19 101(b), and 102(a)(2), by striking ‘‘the Speaker of 

20 the House of Representatives and’’ each place it ap21 pears and inserting ‘‘the Speaker of the House of 

22 Representatives, the Committee on Foreign Affairs 

23 of the House of Representatives, and’’; 

24 (2) in section 21(i)(1) by inserting after ‘‘the 

25 Speaker of the House of Representatives’’ the folmstockstill on DSK4VPTVN1PROD with BILLS

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1 lowing ‘‘, the Committees on Foreign Affairs and 

2 Armed Services of the House of Representatives,’’; 

3 (3) in sections 25(e), 38(f)(2), 38(j)(3), and 

4 38(j)(4)(B), by striking ‘‘International Relations’’ 

5 each place it appears and inserting ‘‘Foreign Af6 fairs’’; 

7 (4) in sections 27(f) and 62(a), by inserting 

8 after ‘‘the Speaker of the House of Representa9 tives,’’ each place it appears the following: ‘‘the 

10 Committee on Foreign Affairs of the House of Rep11 resentatives,’’; and 

12 (5) in section 73(e)(2), by striking ‘‘the Com13 mittee on National Security and the Committee on 

14 International Relations of the House of Representa15 tives’’ and inserting ‘‘the Committee on Armed Serv16 ices and the Committee on Foreign Affairs of the 

17 House of Representatives’’. 

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