SEC. 2. MODIFICATION OF DOLLAR AMOUNT THRESHOLDS 
RELATING TO TRANSFERS OF DEFENSE ARTI-
CLES AND DEFENSE SERVICES UNDER THE 
ARMS EXPORT CONTROL ACT. 
The Arms Export Control Act is amended as follows: 
(1) In section 3(d) (22 U.S.C. 2753(d))— 
(A) in paragraph (1)— 
(i) by striking ‘‘$14,000,000’’ and in-
serting ‘‘$23,000,000’’; and 
(ii) by striking ‘‘$50,000,0000’’ and 
inserting ‘‘$83,000,000’’; and 
(B) in paragraph (3)(A)— 
(i) by striking ‘‘$14,000,000’’ and in-
serting ‘‘$23,000,000’’; and 
(ii) by striking ‘‘$50,000,0000’’ and 
inserting ‘‘$83,000,000’’. 
(2) In section 36(b) (22 U.S.C. 2776(b))— 
(A) in paragraph (1)— 
(i) by striking ‘‘$50,000,0000’’ and 
inserting ‘‘$83,000,000’’; 
(ii) by striking ‘‘$200,000,000’’ and 
inserting ‘‘$332,000,000’’; and 
(iii) by striking ‘‘$14,000,000’’ and 
inserting ‘‘$23,000,000’’; 
(B) in paragraph (5)(C)— 
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(i) by striking ‘‘$14,000,000’’ and in-
serting ‘‘$23,000,000’’; 
(ii) by striking ‘‘$50,000,0000’’ and 
inserting ‘‘$83,000,000’’; and 
(iii) by striking ‘‘$200,000,000’’ and 
inserting ‘‘$332,000,000’’; and 
(C) in paragraph (6)— 
(i) in subparagraph (A), by striking 
‘‘$25,000,000’’ 
and 
inserting 
‘‘$42,000,000’’; 
(ii) in subparagraph (B), by striking 
‘‘$100,000,0000’’ 
and 
inserting 
‘‘$166,000,000’’; and 
(iii) in subparagraph (C), by striking 
‘‘$300,000,000’’ 
and 
inserting 
‘‘$500,000,000’’. 
(3) In section 36(c) (22 U.S.C. 2776(c))— 
(A) in paragraph (1)— 
(i) by striking ‘‘$14,000,000’’ and in-
serting ‘‘$23,000,000’’; and 
(ii) by striking ‘‘$50,000,0000’’ and 
inserting ‘‘$83,000,000’’; and 
(B) in paragraph (5)— 
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(i) in subparagraph (A), by striking 
‘‘$25,000,000’’ 
and 
inserting 
‘‘$42,000,000’’; and 
(ii) in subparagraph (B), by striking 
‘‘$100,000,0000’’ 
and 
inserting 
‘‘$166,000,000’’. 
SEC. 3. REPORT. 
The Office of the Inspector General of the Depart-
ment of State shall submit to Congress a report on any 
activity of structuring payments to circumvent the dollar 
amount thresholds of congressional notification and review 
with respect to transfers of defense articles and defense 
services under the Arms Export Control Act. 
SEC. 4. PROHIBITION ON CERTAIN ACTIVITIES OF FED-
ERAL EMPLOYEES. 
No Federal employee may intentionally or knowingly 
structure, assist in structuring, or attempt to structure 
or assist in structuring any transfer of defense articles and 
defense services under the Arms Export Control Act to 
circumvent congressional reporting thresholds under that 
Act. 
SEC. 5. IMPOSITION OF PENALTIES ON DEPARTMENT OF 
STATE EMPLOYEES. 
Any employee of the Department of State who is 
found to have knowingly structured payments relating to 
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transfers of defense articles or defense services to cir-
cumvent requirements relating to congressional notifica-
tion and review of such transfers under the Arms Export 
Control Act— 
(1) shall be barred from employment in Federal 
service; and 
(2) shall be subject to civil penalties in the 
amount of $100,000. 
Æ 
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