137 
SEC. 1013E. CLARIFICATION OF PROHIBITIONS RELATING 
TO STATE SPONSORS OF TERRORISM AND 
THEIR NATIONALS. 
Section 40(d) of the Arms Export Control Act (22. 
U.S.C. 2780(d)) is amended— 
(1) by inserting ‘‘or to the nationals of that 
country whose substantive contacts with that country 
give reasonable grounds for raising risk of diversion, 
regardless of whether such persons maintain such na-
tionality or the nationality of another country not 
covered by this section’’ after ‘‘with respect to a coun-
try’’; and 
(2) by adding at the end the following: ‘‘For pur-
poses of this subsection, the term ‘national’ means an 
individual who acquired citizenship by birth from a 
country that is subject to section 126.1 of title 22, 
Code of Federal Regulations (or any successor regula-
tions).’’. 
SEC. 1013F. EXEMPTION FOR TRANSACTIONS WITH COUN-
TRIES 
SUPPORTING 
ACTS 
OF 
INTER-
NATIONAL TERRORISM. 
Section 40(h) of the Arms Export Control Act (22 
U.S.C. 2780(h)) is amended— 
(1) in the heading— 
(A) by striking ‘‘EXEMPTION’’ and inserting 
‘‘EXEMPTIONS’’; and 
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138 
(B) by adding ‘‘AND CERTAIN FEDERAL 
LAW
ENFORCEMENT
ACTIVITIES’’ after ‘‘RE-
PORTING REQUIREMENTS’’; and 
(2) by adding at the end before the period the fol-
lowing: ‘‘or with respect to Federal law enforcement 
activities undertaken to further the investigation of 
violations of this Act’’. 
SEC. 1013G. REPORT ON FOREIGN MILITARY FINANCING 
PROGRAM. 
Section 23 of the Arms Export Control Act (22 U.S.C. 
2763) is amended by adding at the end the following: 
‘‘(i) REPORT.— 
‘‘(1) IN GENERAL.—The President shall transmit 
to the appropriate congressional committees as part of 
the supporting materials of the annual congressional 
budget justification a report on the implementation of 
this section for the prior fiscal year. 
‘‘(2) MATTERS TO BE INCLUDED.—The report re-
quired under paragraph (1) shall include a descrip-
tion of the following: 
‘‘(A) The extent to which the use of the au-
thority of this section is based on a well-formu-
lated and realistic assessments of the capability 
requirements of foreign countries and inter-
national organizations. 
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‘‘(B) The extent to which the provision of 
grants under the authority of this section are 
consistent with United States conventional arms 
transfer policy. 
‘‘(C) The extent to which the Department of 
State has developed and implemented specific 
plans to monitor and evaluate outcomes under 
the authority of this section, including at least 
one country or international organization assess-
ment each fiscal year. 
‘‘(3) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—In this subsection, the term ‘appropriate con-
gressional committees’ means— 
‘‘(A) the Committee on Appropriations and 
the Committee on Foreign Affairs of the House 
of Representatives; and 
‘‘(B) the Committee on Appropriations and 
the Committee on Foreign Relations of the Sen-
ate.’’. 
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140 
SEC. 1013H. CONGRESSIONAL NOTIFICATION OF REGULA-
TIONS AND AMENDMENTS TO REGULATIONS 
UNDER SECTION 38 OF THE ARMS EXPORT 
CONTROL ACT. 
(a) IN GENERAL.—Section 38 of the Arms Export Con-
trol Act (22 U.S.C. 2778) is amended by adding at the end 
the following: 
‘‘(k) CONGRESSIONAL NOTIFICATION.—The President 
shall submit to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Re-
lations of the Senate a copy of regulations or amendments 
to regulations issued to carry out this section at least 30 
days before publication of the regulations or amendments 
in the Federal Register unless, after consulting with such 
Committees, the President determines that there is an emer-
gency that requires a shorter period of time.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect on the date of the enactment of this 
Act and applies with respect the issuance of regulations or 
amendments to regulations made on or after the date of the 
enactment of this Act. 
SEC. 1013I. DIPLOMATIC EFFORTS TO STRENGTHEN NA-
TIONAL AND INTERNATIONAL ARMS EXPORT 
CONTROLS. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that the President should redouble United States diplomatic 
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141 
efforts to strengthen national and international arms export 
controls by establishing a senior-level initiative to ensure 
that those arms export controls are comparable to and sup-
portive of United States arms export controls, particularly 
with respect to countries of concern to the United States. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, and annually thereafter for 
4 years, the President shall transmit to the Committee on 
Foreign Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report on 
United States diplomatic efforts described in subsection (a). 
SEC. 1013J. REVIEW AND REPORT OF INVESTIGATIONS OF 
VIOLATIONS OF SECTION 3 OF THE ARMS EX-
PORT CONTROL ACT. 
(a) REVIEW.—The Inspector General of the Depart-
ment of State shall conduct a review of investigations by 
the Department of State during each of fiscal years 2012 
through 2016 of any and all possible violations of section 
3 of the Arms Export Control Act (22 U.S.C. 2753) with 
respect to misuse of United States-origin defense items to 
determine whether the Department of State has fully com-
plied with the requirements of such section, as well as its 
own internal procedures (and whether such procedures are 
adequate), for reporting to Congress any information re-
garding the unlawful use or transfer of United States-origin 
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