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(c) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the 
transfer of a vessel under this section, that the recipient 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed, before the vessel 
joins the naval forces of that recipient, performed at a 
shipyard located in the United States, including a United 
States Navy shipyard. 
(d) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the 3-year period beginning on the date of the enact-
ment of this section. 
TITLE II—TRANSFER OF NAVAL 
VESSELS TO CERTAIN OTHER 
FOREIGN RECIPIENTS 
SEC. 201. FINDINGS. 
(a) RELATING TO MEXICO.—Congress finds the fol-
lowing: 
(1) The partnership between the United States 
and Mexico helps the economic and national security 
of both countries, including in the area of energy. 
(2) The United States and Mexico share a com-
mon goal of reducing the flow of narcotics and the 
influence of transnational gangs in the Hemisphere. 
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(3) The partnership between the United States 
and Mexico helps the economic competitiveness and 
national security of both countries. 
(4) The economies of the United States and 
Mexico are increasingly interdependent, with bilat-
eral foreign direct investment increasing more than 
six-fold over the past two decades. 
(5) In 2012 alone, bilateral trade in goods and 
services between the United States and Mexico ex-
ceeded $500,000,000,000. 
(6) The transfer of naval vessels to Mexico au-
thorized under section 202 supports the moderniza-
tion efforts of the Mexican Navy. 
(7) Such naval vessels are suitable to support 
Mexico’s offshore maritime surveillance, counter 
trafficking, interdiction, and oil platform security. 
(8) The transfer of such naval vessels will con-
tribute to United States interests in promoting in-
creased maritime awareness to support security and 
protection of the people of the United States and the 
people of Mexico. 
(b) RELATING TO THAILAND.—Congress finds the 
following: 
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(1) Thailand was the first treaty ally of the 
United States in the Asia-Pacific region and remains 
a steadfast friend of the United States. 
(2) In December 2003, the United States des-
ignated Thailand as a major non-NATO ally, which 
improved the security of both countries, particularly 
by facilitating joint counterterrorism efforts. 
(3) For more than 30 years, Thailand has been 
the host country of Cobra Gold, the United States 
Pacific Command’s annual multinational military 
training exercise, which is designed to ensure re-
gional peace and promote regional security coopera-
tion. 
(4) The Royal Thai Navy has commanded Com-
bined Task Force 151 (CTF 151) of the Combined 
Maritime Forces, a multi-national naval partnership 
consisting of 30 nations operating in and around the 
Gulf of Aden and off the eastern coast of Somalia. 
(5) With the assistance of the Royal Thai 
Navy’s Counter Piracy Task Group, CTF 151 is 
helping to expressly disrupt and suppress piracy, 
protect all vessels in the region and secure their free 
navigation. 
(6) The Royal Thai Navy is also participating 
in the multilateral Malacca Straits patrols with 
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other regional partners to promote maritime safety 
and security. 
(7) The transfer of naval vessels to Thailand 
authorized under section 202 will support enhanced 
interoperability between the Royal Thai Navy and 
United States Navy forces. 
(8) The transfer of such naval vessels under-
scores the United States commitment to United 
States-Thai relations and to peace and security in 
the Asia-Pacific region. 
SEC. 202. TRANSFER OF NAVAL VESSELS TO CERTAIN 
OTHER FOREIGN RECIPIENTS. 
(a) TRANSFERS BY GRANT.—The President is au-
thorized to transfer vessels to foreign countries on a grant 
basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j), as follows: 
(1) MEXICO.—To the Government of Mexico, 
the OLIVER HAZARD PERRY class guided missile 
frigates 
USS 
CURTS 
(FFG–38) 
and 
USS 
MCCLUSKY (FFG–41). 
(2) THAILAND.—To the Government of Thai-
land, the OLIVER HAZARD PERRY class guided 
missile frigates USS RENTZ (FFG–46) and USS 
VANDEGRIFT (FFG–48). 
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(b) ALTERNATIVE
TRANSFER
AUTHORITY.—Not-
withstanding the authority provided in subsection (a) to 
transfer specific vessels to specific countries, the President 
is authorized, subject to the same conditions that would 
apply for such country under this section, to transfer any 
vessel named in this section to any country named in this 
section such that the total number of vessels transferred 
to such country does not exceed the total number of ves-
sels authorized for transfer to such country by this sec-
tion. 
(c) 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 (a) or (b) 
shall not be counted against the aggregate value of excess 
defense articles transferred in any fiscal year under sec-
tion 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j). 
(d) 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 notwith-
standing section 516(e) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j(e)). 
(e) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
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ticable, the President shall require, as a condition of the 
transfer of a vessel under this section, that the recipient 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed, before the vessel 
joins the naval forces of that recipient, performed at a 
shipyard located in the United States, including a United 
States Navy shipyard. 
(f) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the 3-year period beginning on the date of the enact-
ment of this Act. 
TITLE III—ARMS EXPORT 
CONTROL ACT AMENDMENTS 
SEC. 301. INCREASE IN CONGRESSIONAL NOTIFICATION 
THRESHOLDS. 
(a) FOREIGN MILITARY SALES.— 
(1) IN GENERAL.—Section 36(b) of the Arms 
Export Control Act (22 U.S.C. 2776(b)) is amend-
ed— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘$50,000,000’’ 
and inserting ‘‘$100,000,000’’; 
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(II) by striking ‘‘$200,000,000’’ 
and inserting ‘‘$300,000,000’’; and 
(III) by striking ‘‘$14,000,000’’ 
and inserting ‘‘$25,000,000’’; and 
(ii) in the matter following subpara-
graph (P)— 
(I) by inserting ‘‘of any defense 
articles or defense services under this 
Act for $200,000,000 or more, any 
design and construction services for 
$300,000,000 or more, or any major 
defense equipment for $75,000,000 or 
more,’’ after ‘‘The letter of offer shall 
not be issued, with respect to a pro-
posed sale’’; and 
(II) by inserting ‘‘of any defense 
articles or services under this Act for 
$100,000,000 or more, any design 
and 
construction 
services 
for 
$200,000,000 or more, or any major 
defense equipment for $50,000,000 or 
more,’’ after ‘‘or with respect to a 
proposed sale’’; and 
(B) in paragraph (6)— 
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(i) in subparagraph (A), by striking 
‘‘$25,000,000’’ 
and 
inserting 
‘‘$75,000,000’’; and 
(ii) in subparagraph (B), by striking 
‘‘$100,000,000’’ 
and 
inserting 
‘‘$200,000,000’’. 
(b) COMMERCIAL SALES.—Section 36(c) of the Arms 
Export Control Act (22 U.S.C. 2776(c)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘$14,000,000’’ and insert-
ing ‘‘$25,000,000’’; and 
(B) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$100,000,000’’; and 
(2) in paragraph (5)— 
(A) in subparagraph (A), by striking 
‘‘$25,000,000’’ and inserting ‘‘$75,000,000’’; 
and 
(B) in subparagraph (B), by striking 
‘‘$100,000,000’’ and inserting ‘‘$200,000,000’’. 
SEC. 
302. 
LICENSING 
OF 
CERTAIN 
COMMERCE-CON-
TROLLED ITEMS. 
Section 38 of the Arms Export Control Act (22 
U.S.C. 2778) is amended by adding at the end the fol-
lowing new subsection: 
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‘‘(k) LICENSING
OF
CERTAIN
COMMERCE-CON-
TROLLED ITEMS.— 
‘‘(1) 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 Regula-
tions if such items are to be used in or with defense 
articles controlled on the United States Munitions 
List. 
‘‘(2) OTHER
REQUIREMENTS.—The following 
requirements shall apply with respect to a license or 
other approval to authorize the export of items sub-
ject to the Export Administration Regulations under 
paragraph (1): 
‘‘(A) Separate approval from the Depart-
ment of Commerce shall not be required for 
such items if such items are approved for ex-
port under a Department of State license or 
other approval. 
‘‘(B) Such items subject to the Export Ad-
ministration Regulations that are exported pur-
suant to a Department of State license or other 
approval would remain under the jurisdiction of 
the Department of Commerce with respect to 
any subsequent transactions. 
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‘‘(C) 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 items. 
‘‘(3) DEFINITION.—In this subsection, the term 
‘Export Administration Regulations’ means— 
‘‘(A) the Export Administration Regula-
tions as maintained and amended under the au-
thority of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.); or 
‘‘(B) any successor regulations.’’. 
SEC. 303. AMENDMENTS RELATING TO REMOVAL OF MAJOR 
DEFENSE EQUIPMENT FROM UNITED STATES 
MUNITIONS LIST. 
(a) REQUIREMENTS FOR REMOVAL OF MAJOR DE-
FENSE EQUIPMENT FROM UNITED STATES MUNITIONS 
LIST.—Section 38(f) of the Arms Export Control Act (22 
U.S.C. 2778(f)) is amended by adding at the end the fol-
lowing: 
‘‘(5)(A) Except as provided in subparagraph 
(B), the President shall take such actions as may be 
necessary to require that, at the time of export or 
reexport of any major defense equipment listed on 
the 600 series of the Commerce Control List con-
tained in Supplement No. 1 to part 774 of subtitle 
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B of title 15, Code of Federal Regulations, the 
major defense equipment will not be subsequently 
modified so as to transform such major defense 
equipment into a defense article. 
‘‘(B) The President may authorize the trans-
formation of any major defense equipment described 
in subparagraph (A) into a defense article if the 
President— 
‘‘(i) determines that such transformation is 
appropriate and in the national interests of the 
United States; and 
‘‘(ii) 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 Rela-
tions of the Senate consistent with the notifica-
tion requirements of section 36(b)(5)(A) of this 
Act. 
‘‘(C) In this paragraph, the term ‘defense arti-
cle’ means an item designated by the President pur-
suant to subsection (a)(1).’’. 
(b) NOTIFICATION AND REPORTING REQUIREMENTS 
FOR MAJOR DEFENSE EQUIPMENT REMOVED FROM 
UNITED STATES MUNITIONS LIST.—Section 38(f) of the 
Arms Export Control Act (22 U.S.C. 2778(f)), as amend-
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ed by this section, is further amended by adding at the 
end the following: 
‘‘(6) The President shall ensure that any major 
defense equipment that is listed on the 600 series of 
the Commerce Control List contained in Supplement 
No. 1 to part 774 of subtitle B of title 15, Code of 
Federal Regulations, shall continue to be subject to 
the notification and reporting requirements of the 
following provisions of law: 
‘‘(A) Section 516(f) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j(f)). 
‘‘(B) Section 655 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2415). 
‘‘(C) Section 3(d)(3)(A) of this Act. 
‘‘(D) Section 25 of this Act. 
‘‘(E) Section 36(b), (c), and (d) of this 
Act.’’. 
SEC. 304. AMENDMENT TO DEFINITION OF ‘‘SECURITY AS-
SISTANCE’’ UNDER THE FOREIGN ASSIST-
ANCE ACT OF 1961. 
Section 502B(d) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2304(d)) is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; and 
(2) in paragraph (2)(C) to read as follows: 
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‘‘(C) any license in effect with respect to 
the export to or for the armed forces, police, in-
telligence, or other internal security forces of a 
foreign country of— 
‘‘(i) defense articles or defense serv-
ices under section 38 of the Armed Export 
Control Act; or 
‘‘(ii) items listed under the 600 series 
of the Commerce Control List contained in 
Supplement No. 1 to part 774 of subtitle 
B of title 15, Code of Federal Regula-
tions;’’. 
SEC. 305. AMENDMENTS TO DEFINITIONS OF ‘‘DEFENSE AR-
TICLE’’ AND ‘‘DEFENSE SERVICE’’ UNDER THE 
ARMS EXPORT CONTROL ACT. 
Section 47 of the Arms Export Control Act (22 
U.S.C. 2794) is amended— 
(1) in the matter preceding subparagraph (A) 
of paragraph (3), by striking ‘‘includes’’ and insert-
ing ‘‘means, 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 States’’; and 
(2) in paragraph (4), by striking ‘‘includes’’ 
and inserting ‘‘means, with respect to a sale or 
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transfer by the United States under the authority of 
this Act or any other foreign assistance or sales pro-
gram of the United States,’’. 
SEC. 306. TECHNICAL AMENDMENTS. 
(a) IN GENERAL.—The Arms Export Control Act (22 
U.S.C. 2751 et seq.) is amended— 
(1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 
5(c), 
6, 
21(g), 
36(a), 
36(b)(1), 
36(b)(5)(C), 
36(c)(1), 36(f), 38(f)(1), 40(f)(1), 40(g)(2)(B), 
101(b), and 102(a)(2), by striking ‘‘the Speaker of 
the House of Representatives and’’ each place it ap-
pears and inserting ‘‘the Speaker of the House of 
Representatives, the Committee on Foreign Affairs 
of the House of Representatives, and’’; 
(2) in section 21(i)(1) by inserting after ‘‘the 
Speaker of the House of Representatives’’ the fol-
lowing ‘‘, the Committees on Foreign Affairs and 
Armed Services of the House of Representatives,’’; 
(3) in sections 25(e), 38(f)(2), 38(j)(3), and 
38(j)(4)(B), by striking ‘‘International Relations’’ 
each place it appears and inserting ‘‘Foreign Af-
fairs’’; 
(4) in sections 27(f) and 62(a), by inserting 
after ‘‘the Speaker of the House of Representa-
tives,’’ each place it appears the following: ‘‘the 
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Committee on Foreign Affairs of the House of Rep-
resentatives,’’; and 
(5) in section 73(e)(2), by striking ‘‘the Com-
mittee on National Security and the Committee on 
International Relations of the House of Representa-
tives’’ and inserting ‘‘the Committee on Armed Serv-
ices and the Committee on Foreign Affairs of the 
House of Representatives’’. 
(b) OTHER TECHNICAL AMENDMENTS.— 
(1) ARMS EXPORT CONTROL ACT.—The Arms 
Export Control Act (22 U.S.C. 2751 et seq.), as 
amended by subsection (a), is further amended— 
(A) in section 38— 
(i) in subsection (b)(1), by redesig-
nating the second subparagraph (B) (as 
added by section 1255(b) of the Foreign 
Relations Authorization Act, Fiscal Years 
1988 and 1989 (Public Law 100–204; 101 
Stat. 1431)) as subparagraph (C); 
(ii) in subsection (g)(1)(A)— 
(I) in clause (xi), by striking ‘‘; 
or’’ and inserting ‘‘, or’’; and 
(II) in clause (xii)— 
(aa) by striking ‘‘section’’ 
and inserting ‘‘sections’’; and 
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(bb) by striking ‘‘(18 U.S.C. 
175b)’’ 
and 
inserting 
‘‘(18 
U.S.C. 175c)’’; and 
(iii) in subsection (j)(2), in the matter 
preceding subparagraph (A), by inserting 
‘‘in’’ after ‘‘to’’; and 
(B) in section 47(2), in the matter pre-
ceding subparagraph (A), by striking ‘‘sec. 
21(a),,’’ and inserting ‘‘section 21(a),’’. 
(2) FOREIGN ASSISTANCE ACT OF 1961.—Sec-
tion 502B of the Foreign Assistance Act of 1961 
(22 U.S.C. 2304) is amended— 
(A) in subsection (b), by striking ‘‘Wher-
ever applicable, a description’’ and inserting 
‘‘Wherever applicable, such report shall include 
a description’’; and 
(B) in subsection (d)(2)(B), by striking 
‘‘credits’’ and inserting ‘‘credits)’’. 
TITLE IV—APPLICATION OF CER-
TAIN PROVISIONS OF EXPORT 
ADMINISTRATION 
SEC. 401. APPLICATION OF CERTAIN PROVISIONS OF EX-
PORT ADMINISTRATION ACT OF 1979. 
(a) PROTECTION OF INFORMATION.—Section 12(c) 
of the Export Administration Act of 1979 (50 U.S.C. App. 
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2411(c)) has been in effect from August 20, 2001, and 
continues in effect on and after the date of the enactment 
of this Act, pursuant to the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.) and notwith-
standing section 20 of the Export Administration Act of 
1979 (50 U.S.C. App. 2419). Section 12(c)(1) of the Ex-
port Administration Act of 1979 is a statute covered by 
section 552(b)(3) of title 5, United States Code. 
(b) TERMINATION DATE.—Subsection (a) terminates 
at the end of the 4-year period beginning on the date of 
the enactment of this Act. 
Passed the House of Representatives April 7, 2014. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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