173 
rest on our commitment to educate and prepare our 
youth for active engagement in the international com-
munity.’’. 
(2) According to former President William J. 
Clinton, ‘‘Today, the defense of United States inter-
ests, the effective management of global issues, and 
even an understanding of our Nation’s diversity re-
quire ever-greater contact with, and understanding of, 
people and cultures beyond our borders.’’. 
(3) Congress authorized the establishment of the 
Commission on the Abraham Lincoln Study Abroad 
Fellowship Program pursuant to section 104 of the 
Miscellaneous Appropriations and Offsets Act, 2004 
(division h of Public Law 108–199). Pursuant to its 
mandate, the Lincoln Commission has submitted to 
Congress and the President a report of its rec-
ommendations for greatly expanding the opportunity 
for students at institutions of higher education in the 
United States to study abroad, with special emphasis 
on studying in developing nations. 
(4) According to the Lincoln Commission, 
‘‘[s]tudy abroad is one of the major means of pro-
ducing foreign language speakers and enhancing for-
eign language learning’’ and, for that reason, ‘‘is sim-
ply essential to the [N]ation’s security.’’. 
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(5) Studies consistently show that United States 
students score below their counterparts in other ad-
vanced countries on indicators of international 
knowledge. This lack of global literacy is a national 
liability in an age of global trade and business, global 
interdependence, and global terror. 
(6) Americans believe that it is important for 
their children to learn other languages, study abroad, 
attend a college where they can interact with inter-
national students, learn about other countries and 
cultures, and generally be prepared for the global age. 
(7) In today’s world, it is more important than 
ever for the United States to be a responsible, con-
structive leader that other countries are willing to fol-
low. Such leadership cannot be sustained without an 
informed citizenry with significant knowledge and 
awareness of the world. 
(8) Study abroad has proven to be a very effec-
tive means of imparting international and foreign 
language competency to students. 
(9) In any given year, only approximately one 
percent of all students enrolled in United States insti-
tutions of higher education study abroad. 
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(10) Less than 10 percent of the students who 
graduate from United States institutions of higher 
education with bachelors degrees have studied abroad. 
(11) Far more study abroad must take place in 
developing countries. Ninety-five percent of the 
world’s population growth over the next 50 years will 
occur outside of Europe, yet in the academic year 
2004–2005, 60 percent of United States students 
studying abroad studied in Europe, and 45 percent 
studied in four countries—the United Kingdom, 
Italy, Spain, and France. 
(12) The Final Report of the National Commis-
sion on Terrorist Attacks Upon the United States (the 
9/11 Commission Report) recommended that the 
United States increase support for ‘‘scholarship, ex-
change, and library programs’’. The 9/11 Public Dis-
course Project, successor to the 9/11 Commission, 
noted in its November 14, 2005, status report that 
this recommendation was ‘‘unfulfilled,’’ and stated 
that ‘‘[t]he U.S. should increase support for scholar-
ship and exchange programs, our most powerful tool 
to shape attitudes over the course of a generation.’’. 
In its December 5, 2005, Final Report on the 9/11 
Commission Recommendations, the 9/11 Public Dis-
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course Project gave the government a grade of ‘‘D’’ for 
its implementation of this recommendation. 
(13) Investing in a national study abroad pro-
gram would help turn a grade of ‘‘D’’ into an ‘‘A’’ 
by equipping United States students to communicate 
United States values and way of life through the 
unique dialogue that takes place among citizens from 
around the world when individuals study abroad. 
(14) An enhanced national study abroad pro-
gram could help further the goals of other United 
States Government initiatives to promote educational, 
social, and political reform and the status of women 
in developing and reforming societies around the 
world, such as the Middle East Partnership Initia-
tive. 
(15) To complement such worthwhile Federal 
programs and initiatives as the Benjamin A. Gilman 
International Scholarship Program, the National Se-
curity Education Program, and the National Secu-
rity Language Initiative, a broad-based under-
graduate study abroad program is needed that will 
make many more study abroad opportunities acces-
sible to all undergraduate students, regardless of their 
field of study, ethnicity, socio-economic status, or gen-
der. 
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(16) To restore America’s standing in the world, 
President Barack Obama has said that he will call on 
our nation’s greatest resource, our people, to reach out 
to and engage with other nations. 
SEC. 703. PURPOSES. 
The purposes of this title are— 
(1) to significantly enhance the global competi-
tiveness and international knowledge base of the 
United States by ensuring that more United States 
students have the opportunity to acquire foreign lan-
guage skills and international knowledge through sig-
nificantly expanded study abroad; 
(2) to enhance the foreign policy capacity of the 
United States by significantly expanding and diversi-
fying the talent pool of individuals with non-tradi-
tional foreign language skills and cultural knowledge 
in the United States who are available for recruit-
ment by United States foreign affairs agencies, legis-
lative branch agencies, and nongovernmental organi-
zations involved in foreign affairs activities; 
(3) to ensure that an increasing portion of study 
abroad by United States students will take place in 
nontraditional study abroad destinations such as the 
People’s Republic of China, countries of the Middle 
East region, and developing countries; and 
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(4) 
FOUNDATION.—The 
term 
‘‘Foundation’’ 
means the Senator Paul Simon Study Abroad Foun-
dation established by section 705(a). 
(5) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the mean-
ing given the term in section 101(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1001(a)). 
(6) NATIONAL
OF
THE
UNITED
STATES.—The 
term ‘‘national of the United States’’ means a na-
tional of the United States or an alien lawfully ad-
mitted for permanent residence (as those terms are 
defined in section 101 of the Immigration and Na-
tionality Act (8 U.S.C. 1101)). 
(7) NONTRADITIONAL STUDY ABROAD DESTINA-
TION.—The term ‘‘nontraditional study abroad des-
tination’’ means a location that is determined by the 
Foundation to be a less common destination for 
United States students who study abroad. 
(8) STUDY ABROAD.—The term ‘‘study abroad’’ 
means an educational program of study, work, re-
search, internship, or combination thereof that is con-
ducted outside the United States and that carries aca-
demic credit toward fulfilling the participating stu-
dent’s degree requirements. 
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(9) UNITED STATES.—The term ‘‘United States’’ 
means any of the several States, the District of Co-
lumbia, Puerto Rico, the Northern Mariana Islands, 
the Virgin Islands, Guam, American Samoa, and any 
other territory or possession of the United States. 
(10) UNITED
STATES
STUDENT.—The term 
‘‘United States student’’ means a national of the 
United States who is enrolled at an institution of 
higher education located within the United States. 
SEC. 705. ESTABLISHMENT AND MANAGEMENT OF THE SEN-
ATOR PAUL SIMON STUDY ABROAD FOUNDA-
TION. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established in the ex-
ecutive branch a corporation to be known as the 
‘‘Senator Paul Simon Study Abroad Foundation’’ 
that shall be responsible for carrying out this title. 
The Foundation shall be a government corporation, as 
defined in section 103 of title 5, United States Code. 
(2) BOARD
OF
DIRECTORS.—The Foundation 
shall be governed by a Board of Directors in accord-
ance with subsection (d). 
(3) INTENT OF CONGRESS.—It is the intent of 
Congress in establishing the structure of the Founda-
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tion set forth in this subsection to create an entity 
that will administer a study abroad program that— 
(A) serves the long-term foreign policy and 
national security needs of the United States; but 
(B) operates independently of short-term po-
litical and foreign policy considerations. 
(b) MANDATE OF FOUNDATION.—In administering the 
program referred to in subsection (a)(3), the Foundation 
shall— 
(1) promote the objectives and purposes of this 
title; 
(2) through responsive, flexible grant-making, 
promote access to study abroad opportunities by 
United States students at diverse institutions of high-
er education, including two-year institutions, minor-
ity-serving institutions, and institutions that serve 
nontraditional students; 
(3) through creative grant-making, promote ac-
cess to study abroad opportunities by diverse United 
States students, including minority students, students 
of limited financial means, and nontraditional stu-
dents; 
(4) solicit funds from the private sector to sup-
plement funds made available under this title; and 
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(5) minimize administrative costs and maximize 
the availability of funds for grants under this title. 
(c) CHIEF EXECUTIVE OFFICER.— 
(1) IN GENERAL.—There shall be in the Founda-
tion a Chief Executive Officer who shall be responsible 
for the management of the Foundation. 
(2) APPOINTMENT.—The Chief Executive Officer 
shall be appointed by the Board and shall be a recog-
nized leader in higher education, business, or foreign 
policy, chosen on the basis of a rigorous search. 
(3) RELATIONSHIP TO BOARD.—The Chief Exec-
utive Officer shall report to and be under the direct 
authority of the Board. 
(4) COMPENSATION AND RANK.— 
(A) IN GENERAL.—The Chief Executive Of-
ficer shall be compensated at the rate provided 
for level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code. 
(B) AMENDMENT.—Section 5315 of title 5, 
United States Code, is amended by adding at the 
end the following: 
‘‘Chief Executive Officer, Senator Paul Simon 
Study Abroad Foundation.’’. 
(5) AUTHORITIES AND DUTIES.—The Chief Exec-
utive Officer shall be responsible for the management 
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of the Foundation and shall exercise the powers and 
discharge the duties of the Foundation. 
(6) AUTHORITY TO APPOINT OFFICERS.—In con-
sultation and with approval of the Board, the Chief 
Executive Officer shall appoint all officers of the 
Foundation. 
(d) BOARD OF DIRECTORS.— 
(1) ESTABLISHMENT.—There shall be in the 
Foundation a Board of Directors. 
(2) DUTIES.—The Board shall perform the func-
tions specified to be carried out by the Board in this 
title and may prescribe, amend, and repeal by-laws, 
rules, regulations, and procedures governing the man-
ner in which the business of the Foundation may be 
conducted and in which the powers granted to it by 
law may be exercised. 
(3) MEMBERSHIP.—The Board shall consist of— 
(A) the Secretary of State (or the Sec-
retary’s designee), the Secretary of Education (or 
the Secretary’s designee), the Secretary of De-
fense (or the Secretary’s designee), and the Ad-
ministrator of the United States Agency for 
International Development (or the Administra-
tor’s designee); and 
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(B) five other individuals with relevant ex-
perience in matters relating to study abroad 
(such as individuals who represent institutions 
of higher education, business organizations, for-
eign policy organizations, or other relevant orga-
nizations) who shall be appointed by the Presi-
dent, by and with the advice and consent of the 
Senate, of which— 
(i) one individual shall be appointed 
from among a list of individuals submitted 
by the majority leader of the House of Rep-
resentatives; 
(ii) one individual shall be appointed 
from among a list of individuals submitted 
by the minority leader of the House of Rep-
resentatives; 
(iii) one individual shall be appointed 
from among a list of individuals submitted 
by the majority leader of the Senate; and 
(iv) one individual shall be appointed 
from among a list of individuals submitted 
by the minority leader of the Senate. 
(4) CHIEF EXECUTIVE OFFICER.—The Chief Ex-
ecutive Officer of the Foundation shall serve as a non- 
voting, ex-officio member of the Board. 
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(5) TERMS.— 
(A) OFFICERS OF THE FEDERAL GOVERN-
MENT.—Each member of the Board described in 
paragraph (3)(A) shall serve for a term that is 
concurrent with the term of service of the indi-
vidual’s position as an officer within the other 
Federal department or agency. 
(B) OTHER
MEMBERS.—Each member of 
the Board described in paragraph (3)(B) shall be 
appointed for a term of three years and may be 
reappointed for one additional three-year term. 
(C) VACANCIES.—A vacancy in the Board 
shall be filled in the manner in which the origi-
nal appointment was made. 
(6) CHAIRPERSON.—There shall be a Chair-
person of the Board. The Secretary of State (or the 
Secretary’s designee) shall serve as the Chairperson. 
(7) QUORUM.—A majority of the members of the 
Board described in paragraph (3) shall constitute a 
quorum, which, except with respect to a meeting of 
the Board during the 135-day period beginning on 
the date of the enactment of this Act, shall include at 
least one member of the Board described in paragraph 
(3)(B). 
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(8) MEETINGS.—The Board shall meet at the call 
of the Chairperson. 
(9) COMPENSATION.— 
(A) OFFICERS OF THE FEDERAL GOVERN-
MENT.— 
(i) IN
GENERAL.—A member of the 
Board described in paragraph (3)(A) may 
not receive additional pay, allowances, or 
benefits by reason of the member’s service on 
the Board. 
(ii) TRAVEL
EXPENSES.—Each such 
member of the Board shall receive travel ex-
penses, including per diem in lieu of sub-
sistence, in accordance with applicable pro-
visions under subchapter I of chapter 57 of 
title 5, United States Code. 
(B) OTHER MEMBERS.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), a member of the Board de-
scribed in paragraph (3)(B) while away 
from the member’s home or regular place of 
business on necessary travel in the actual 
performance of duties as a member of the 
Board, shall be paid per diem, travel, and 
transportation expenses in the same manner 
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as is provided under subchapter I of chapter 
57 of title 5, United States Code. 
(ii) LIMITATION.—A member of the 
Board may not be paid compensation under 
clause (i) for more than 90 days in any cal-
endar year. 
SEC. 706. ESTABLISHMENT AND OPERATION OF PROGRAM. 
(a) ESTABLISHMENT
OF
THE PROGRAM.—There is 
hereby established a program, which shall— 
(1) be administered by the Foundation; and 
(2) award grants to— 
(A) United States students for study 
abroad; 
(B) nongovernmental institutions that pro-
vide and promote study abroad opportunities for 
United States students, in consortium with insti-
tutions described in subparagraph (C); and 
(C) institutions of higher education, indi-
vidually or in consortium, in order to accom-
plish the objectives set forth in subsection (b). 
(b) OBJECTIVES.—The objectives of the program estab-
lished under subsection (a) are that, within ten years of 
the date of the enactment of this Act— 
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(1) not less than 1,000,000 undergraduate 
United States students will study abroad annually for 
credit; 
(2) the demographics of study-abroad participa-
tion will reflect the demographics of the United States 
undergraduate population, including students en-
rolled in community colleges, minority-serving insti-
tutions, and institutions serving large numbers of 
low-income and first-generation students; and 
(3) an increasing portion of study abroad will 
take place in nontraditional study abroad destina-
tions, with a substantial portion of such increases 
taking place in developing countries. 
(c) MANDATE OF THE PROGRAM.—In order to accom-
plish the objectives set forth in subsection (b), the Founda-
tion shall, in administering the program established under 
subsection (a), take fully into account the recommendations 
of the Commission on the Abraham Lincoln Study Abroad 
Fellowship Program (established pursuant to section 104 of 
the Miscellaneous Appropriations and Offsets Act, 2004 (di-
vision H of Public Law 108–199)). 
(d) STRUCTURE OF GRANTS.— 
(1) PROMOTING REFORM.—In accordance with 
the recommendations of the Commission on the Abra-
ham Lincoln Study Abroad Fellowship Program, 
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grants awarded under the program established under 
subsection (a) shall be structured to the maximum ex-
tent practicable to promote appropriate reforms in 
institutions of higher education in order to remove 
barriers to participation by students in study abroad. 
(2) GRANTS
TO
INDIVIDUALS
AND
INSTITU-
TIONS.—It is the sense of Congress that— 
(A) the Foundation should award not more 
than 25 percent of the funds awarded as grants 
to individuals described in subparagraph (A) of 
subsection (a)(2) and not less than 75 percent of 
such funds to institutions described in subpara-
graphs (B) and (C) of such subsection; and 
(B) the Foundation should ensure that not 
less than 85 percent of the amount awarded to 
such institutions is used to award scholarships to 
students. 
(e) BALANCE
OF
LONG-TERM
AND
SHORT-TERM 
STUDY ABROAD PROGRAMS.—In administering the pro-
gram established under subsection (a), the Foundation shall 
seek an appropriate balance between— 
(1) longer-term study abroad programs, which 
maximize foreign-language learning and intercultural 
understanding; and 
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(2) shorter-term study abroad programs, which 
maximize the accessibility of study abroad to non-
traditional students. 
(f) QUALITY AND SAFETY IN STUDY ABROAD.—In ad-
ministering the program established under subsection (a), 
the Foundation shall require that institutions receiving 
grants demonstrate that— 
(1) the study abroad programs for which stu-
dents receive grant funds are for academic credit; and 
(2) the programs have established health and 
safety guidelines and procedures. 
SEC. 707. ANNUAL REPORT. 
(a) REPORT REQUIRED.—Not later than December 15, 
2010, and each December 15 thereafter, the Foundation 
shall submit to the appropriate congressional committees a 
report on the implementation of this title during the prior 
fiscal year. 
(b) CONTENTS.—The report required by subsection (a) 
shall include— 
(1) the total financial resources available to the 
Foundation during the year, including appropriated 
funds, the value and source of any gifts or donations 
accepted pursuant to section 708(a)(6), and any other 
resources; 
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(2) a description of the Board’s policy priorities 
for the year and the bases upon which grant proposals 
were solicited and awarded to institutions of higher 
education, nongovernmental institutions, and consor-
tiums 
pursuant 
to 
sections 
706(a)(2)(B) 
and 
706(a)(2)(C); 
(3) a list of grants made to institutions of higher 
education, nongovernmental institutions, and consor-
tiums 
pursuant 
to 
sections 
706(a)(2)(B) 
and 
706(a)(2)(C) that includes the identity of the institu-
tional recipient, the dollar amount, the estimated 
number of study abroad opportunities provided to 
United States students by each grant, the amount of 
the grant used by each institution for administrative 
expenses, and information on cost-sharing by each in-
stitution receiving a grant; 
(4) a description of the bases upon which the 
Foundation made grants directly to United States 
students pursuant to section 706(a)(2)(A); 
(5) the number and total dollar amount of 
grants made directly to United States students by the 
Foundation pursuant to section 706(a)(2)(A); and 
(6) the total administrative and operating ex-
penses of the Foundation for the year, as well as spe-
cific information on— 
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(A) the number of Foundation employees 
and the cost of compensation for Board members, 
Foundation employees, and personal service con-
tractors; 
(B) costs associated with securing the use of 
real property for carrying out the functions of 
the Foundation; 
(C) total travel expenses incurred by Board 
members and Foundation employees in connec-
tion with Foundation activities; and 
(D) total representational expenses. 
SEC. 708. POWERS OF THE FOUNDATION; RELATED PROVI-
SIONS. 
(a) POWERS.—The Foundation— 
(1) shall have perpetual succession unless dis-
solved by a law enacted after the date of the enact-
ment of this Act; 
(2) may adopt, alter, and use a seal, which shall 
be judicially noticed; 
(3) may make and perform such contracts, 
grants, and other agreements with any person or gov-
ernment however designated and wherever situated, as 
may be necessary for carrying out the functions of the 
Foundation; 
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(4) may determine and prescribe the manner in 
which its obligations shall be incurred and its ex-
penses allowed and paid, including expenses for rep-
resentation; 
(5) may lease, purchase, or otherwise acquire, 
improve, and use such real property wherever situ-
ated, as may be necessary for carrying out the func-
tions of the Foundation; 
(6) may accept cash gifts or donations of services 
or of property (real, personal, or mixed), tangible or 
intangible, for the purpose of carrying out the provi-
sions of this title; 
(7) may use the United States mails in the same 
manner and on the same conditions as the executive 
departments; 
(8) may contract with individuals for personal 
services, who shall not be considered Federal employ-
ees for any provision of law administered by the Of-
fice of Personnel Management; 
(9) may hire or obtain passenger motor vehicles; 
and 
(10) shall have such other powers as may be nec-
essary and incident to carrying out this title. 
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(b) PRINCIPAL OFFICE.—The Foundation shall main-
tain its principal office in the metropolitan area of Wash-
ington, District of Columbia. 
(c) APPLICABILITY
OF GOVERNMENT CORPORATION 
CONTROL ACT.— 
(1) IN GENERAL.—The Foundation shall be sub-
ject to chapter 91 of subtitle VI of title 31, United 
States Code, except that the Foundation shall not be 
authorized to issue obligations or offer obligations to 
the public. 
(2) CONFORMING AMENDMENT.—Section 9101(3) 
of title 31, United States Code, is amended by adding 
at the end the following new subparagraph: 
‘‘(S) the Senator Paul Simon Study Abroad 
Foundation.’’. 
(d) INSPECTOR GENERAL.— 
(1) IN GENERAL.—The Inspector General of the 
Department of State shall serve as Inspector General 
of the Foundation, and, in acting in such capacity, 
may conduct reviews, investigations, and inspections 
of all aspects of the operations and activities of the 
Foundation. 
(2) AUTHORITY OF THE BOARD.—In carrying 
out the responsibilities under this subsection, the In-
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spector General shall report to and be under the gen-
eral supervision of the Board. 
(3) REIMBURSEMENT
AND
AUTHORIZATION
OF 
SERVICES.— 
(A) 
REIMBURSEMENT.—The 
Foundation 
shall reimburse the Department of State for all 
expenses incurred by the Inspector General in 
connection with the Inspector General’s respon-
sibilities under this subsection. 
(B) AUTHORIZATION
FOR
SERVICES.—Of 
the amount authorized to be appropriated under 
section 711(a) for a fiscal year, up to $2,000,000 
is authorized to be made available to the Inspec-
tor General of the Department of State to con-
duct reviews, investigations, and inspections of 
operations and activities of the Foundation. 
SEC. 709. GENERAL PERSONNEL AUTHORITIES. 
(a) DETAIL
OF PERSONNEL.—Upon request of the 
Chief Executive Officer, the head of an agency may detail 
any employee of such agency to the Foundation on a reim-
bursable basis. Any employee so detailed remains, for the 
purpose of preserving such employee’s allowances, privi-
leges, rights, seniority, and other benefits, an employee of 
the agency from which detailed. 
(b) REEMPLOYMENT RIGHTS.— 
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(1) IN GENERAL.—An employee of an agency 
who is serving under a career or career conditional 
appointment (or the equivalent), and who, with the 
consent of the head of such agency, transfers to the 
Foundation, is entitled to be reemployed in such em-
ployee’s former position or a position of like seniority, 
status, and pay in such agency, if such employee— 
(A) is separated from the Foundation for 
any reason, other than misconduct, neglect of 
duty, or malfeasance; and 
(B) applies for reemployment not later than 
90 days after the date of separation from the 
Foundation. 
(2) SPECIFIC RIGHTS.—An employee who satis-
fies paragraph (1) is entitled to be reemployed (in ac-
cordance with such paragraph) within 30 days after 
applying for reemployment and, on reemployment, is 
entitled to at least the rate of basic pay to which such 
employee would have been entitled had such employee 
never transferred. 
(c) HIRING AUTHORITY.—Of persons employed by the 
Foundation, not to exceed 20 persons may be appointed, 
compensated, or removed without regard to the civil service 
laws and regulations. 
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(d) BASIC PAY.—The Chief Executive Officer may fix 
the rate of basic pay of employees of the Foundation without 
regard to the provisions of chapter 51 of title 5, United 
States Code (relating to the classification of positions), sub-
chapter III of chapter 53 of such title (relating to General 
Schedule pay rates), except that no employee of the Founda-
tion may receive a rate of basic pay that exceeds the rate 
for level IV of the Executive Schedule under section 5315 
of such title. 
(e) DEFINITIONS.—In this section— 
(1) the term ‘‘agency’’ means an executive agen-
cy, as defined by section 105 of title 5, United States 
Code; and 
(2) the term ‘‘detail’’ means the assignment or 
loan of an employee, without a change of position, 
from the agency by which such employee is employed 
to the Foundation. 
SEC. 710. GAO REVIEW. 
(a) REVIEW REQUIRED.—Not later than two years 
after the date of the enactment of this Act, the Comptroller 
General of the United States shall commence a review of 
the operations of the Foundation. 
(b) CONTENT.—In conducting the review required 
under subsection (a), the Comptroller General shall ana-
lyze— 
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(1) whether the Foundation is organized and op-
erating in a manner that will permit it to fulfill the 
purposes of this section, as set forth in section 603; 
(2) the degree to which the Foundation is oper-
ating efficiently and in a manner consistent with the 
requirements of paragraphs (4) and (5) of section 
605(b); 
(3) whether grant-making by the Foundation is 
being undertaken in a manner consistent with sub-
sections (d), (e), and (f) of section 606; 
(4) the extent to which the Foundation is using 
best practices in the implementation of this Act and 
the administration of the program described in sec-
tion 606; and 
(5) other relevant matters, as determined by the 
Comptroller General, after consultation with the ap-
propriate congressional committees. 
(c) REPORT REQUIRED.—The Comptroller General 
shall submit a report on the results of the review conducted 
under subsection (a) to the Secretary of State (in the capac-
ity of the Secretary as Chairperson of the Board of the 
Foundation) and to the appropriate congressional commit-
tees. 
SEC. 711. AUTHORIZATION OF APPROPRIATIONS. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
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(1) IN GENERAL.—There are authorized to be ap-
propriated to carry out this title $40,000,000 for fis-
cal year 2010 and $80,000,000 for fiscal year 2011. 
(2) AMOUNTS IN ADDITION TO OTHER AVAILABLE 
AMOUNTS.—Amounts authorized to be appropriated 
by paragraph (1) are in addition to amounts author-
ized to be appropriated or otherwise made available 
for educational exchange programs, including the J. 
William Fulbright Educational Exchange Program 
and the Benjamin A. Gilman International Scholar-
ship Program, administered by the Bureau of Edu-
cational and Cultural Affairs of the Department of 
State. 
(b) ALLOCATION OF FUNDS.— 
(1) IN GENERAL.—The Foundation may allocate 
or transfer to any agency of the United States Gov-
ernment any of the funds available for carrying out 
this Act. Such funds shall be available for obligation 
and expenditure for the purposes for which the funds 
were authorized, in accordance with authority grant-
ed in this Act or under authority governing the ac-
tivities of the United States Government agency to 
which such funds are allocated or transferred. 
(2) NOTIFICATION.—The Foundation shall notify 
the appropriate congressional committees not less 
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than 15 days prior to an allocation or transfer of 
funds pursuant to paragraph (1). 
TITLE 
VIII—EXPORT 
CONTROL 
REFORM AND SECURITY AS-
SISTANCE 
Subtitle A—Defense Trade Controls 
Performance Improvement Act of 
2009 
SEC. 801. SHORT TITLE. 
This subtitle may be cited as the ‘‘Defense Trade Con-
trols Performance Improvement Act of 2009’’. 
SEC. 802. FINDINGS. 
Congress finds the following: 
(1) In a time of international terrorist threats 
and a dynamic global economic and security environ-
ment, United States policy with regard to export con-
trols is in urgent need of a comprehensive review in 
order to ensure such controls are protecting the na-
tional security and foreign policy interests of the 
United States. 
(2) In January 2007, the Government Account-
ability Office designated the effective identification 
and protection of critical technologies as a govern-
ment-wide, high-risk area, warranting a strategic re-
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examination of existing programs, including pro-
grams relating to arms export controls. 
(3) Federal Government agencies must review li-
censes for export of munitions in a thorough and 
timely manner to ensure that the United States is 
able to assist United States allies and to prevent nu-
clear and conventional weapons from getting into the 
hands of enemies of the United States. 
(4) Both staffing and funding that relate to the 
Department of State’s arms export control respon-
sibilities have not kept pace with the increased work-
load relating to such responsibilities, especially dur-
ing the current decade. 
(5) Outsourcing and off-shoring of defense pro-
duction and the policy of many United States trading 
partners to require offsets for major sales of defense 
and aerospace articles present a potential threat to 
United States national security and economic well- 
being and serve to weaken the defense industrial base. 
(6) Export control policies can have a negative 
impact on United States employment, nonprolifera-
tion goals, and the health of the defense industrial 
base, particularly when facilitating the overseas 
transfer of technology or production and other forms 
of outsourcing, such as offsets (direct and indirect), 
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co-production, subcontracts, overseas investment and 
joint ventures in defense and commercial industries. 
Federal Government agencies must develop new and 
effective procedures for ensuring that export control 
systems address these problems and the threat they 
pose to national security. 
(7) In the report to Congress required by the 
Conference Report (Report 109–272) accompanying 
the bill, H.R. 2862 (the Science, State, Justice, Com-
merce and Related Agencies Appropriations Act, 
2006; Public Law 109–108), the Department of State 
concluded that— 
(A) defense trade licensing has become much 
more complex in recent years as a consequence of 
the increasing globalization of the defense indus-
try; 
(B) the most important challenge to the De-
partment of State’s licensing process has been the 
sheer growth in volume of applicants for licenses 
and agreements, without the corresponding in-
crease in licensing officers; and 
(C) the increase in licensing volume without 
a corresponding increase in trained and experi-
enced personnel has resulted in delays and in-
creased processing times. 
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203 
(8) In 2006, the Department of State processed 
over three times as many licensing applications as the 
Department of Commerce with about a fifth of the 
staff of the Department of Commerce. 
(9) On July 27, 2007, in testimony delivered to 
the Subcommittee on Terrorism, Nonproliferation and 
Trade of the Committee on Foreign Affairs of the 
House of Representatives to examine the effectiveness 
of the United States export control regime, the Gov-
ernment Accountability Office found that— 
(A) the United States Government needs to 
conduct assessments to determine its overall effec-
tiveness in the area of arms export control; and 
(B) the processing times of the Department 
of State doubled over the period from 2002 to 
2006. 
(10)(A) Allowing a continuation of the status 
quo in resources for defense trade licensing could ulti-
mately harm the United States defense industrial 
base. The 2007 Institute for Defense Analysis report 
entitled ‘‘Export Controls and the U.S. Defense Indus-
trial Base’’ found that the large backlog and long 
processing times by the Department of State for ap-
plications for licenses to export defense items led to an 
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204 
impairment of United States firms in some sectors to 
conduct global business relative to foreign competitors. 
(B) Additionally, the report found that United 
States commercial firms have been reluctant to engage 
in research and development activities for the Depart-
ment of Defense because this raises the future pros-
pects that the products based on this research and de-
velopment, even if intrinsically commercial, will be 
saddled by Department of State munitions controls 
due to the link to that research. 
(11) According to the Department of State’s fis-
cal year 2008 budget justification to Congress, com-
mercial exports licensed or approved under the Arms 
Export Control Act exceeded $30,000,000,000, with 
nearly eighty percent of these items exported to 
United States NATO allies and other major non- 
NATO allies. 
(12) A Government Accountability Office report 
of October 9, 2001 (GAO–02–120), documented am-
biguous export control jurisdiction affecting 25 per-
cent of the items that the United States Government 
agreed to control as part of its commitments to the 
Missile Technology Control Regime. The United 
States Government has not clearly determined which 
department has jurisdiction over these items, which 
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205 
increases the risk that these items will fall into the 
wrong hands. During both the 108th, 109th, and 
110th Congresses, the House of Representatives passed 
legislation mandating that the Administration clarify 
this issue. 
(13) During 2007 and 2008, the management 
and staff of the Directorate of Defense Trade Controls 
of the Department of State have, through extraor-
dinary effort and dedication, eliminated the large 
backlog of open applications and have reduced aver-
age processing times for license applications; however, 
the Directorate remains understaffed and long delays 
remain for complicated cases. 
SEC. 803. STRATEGIC REVIEW AND ASSESSMENT OF THE 
UNITED STATES EXPORT CONTROLS SYSTEM. 
(a) REVIEW AND ASSESSMENT.— 
(1) IN
GENERAL.—Not later than March 31, 
2010, the President shall conduct a comprehensive 
and systematic review and assessment of the United 
States arms export controls system in the context of 
the national security interests and strategic foreign 
policy objectives of the United States. 
(2) ELEMENTS.—The review and assessment re-
quired under paragraph (1) shall— 
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(A) determine the overall effectiveness of the 
United States arms export controls system in 
order to, where appropriate, strengthen controls, 
improve efficiency, and reduce unnecessary 
redundancies across Federal Government agen-
cies, through administrative actions, including 
regulations, and to formulate legislative pro-
posals for new authorities that are needed; 
(B) develop processes to ensure better co-
ordination of arms export control activities of 
the Department of State with activities of other 
departments and agencies of the United States 
that are responsible for enforcing United States 
arms export control laws; 
(C) ensure that weapons-related nuclear 
technology, other technology related to weapons 
of mass destruction, and all items on the Missile 
Technology Control Regime Annex are subject to 
stringent control by the United States Govern-
ment; 
(D) determine the overall effect of arms ex-
port controls on counterterrorism, law enforce-
ment, and infrastructure protection missions of 
the Department of Homeland Security; 
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207 
(E) determine the effects of export controls 
policies and the practices of the export control 
agencies on the United States defense industrial 
base and United States employment in the in-
dustries affected by export controls; 
(F) contain a detailed summary of known 
attempts by unauthorized end-users (such as 
international arms traffickers, foreign intel-
ligence agencies, and foreign terrorist organiza-
tions) to acquire items on the United States Mu-
nitions List and related technical data, includ-
ing— 
(i) data on— 
(I) commodities sought, such as 
M–4 rifles, night vision devices, F–14 
spare parts; 
(II) parties involved, such as the 
intended end-users, brokers, consignees, 
and shippers; 
(III) attempted acquisition of 
technology and technical data critical 
to manufacture items on the United 
States Munitions List; 
(IV) destination countries and 
transit countries; 
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208 
(V) modes of transport; 
(VI) trafficking methods, such as 
use of false documentation and front 
companies registered under flags of 
convenience; 
(VII) whether the attempted illicit 
transfer was successful; and 
(VIII) 
any 
administrative 
or 
criminal enforcement actions taken by 
the United States and any other gov-
ernment in relation to the attempted 
illicit transfer; 
(ii) a thorough evaluation of the Blue 
Lantern Program, including the adequacy 
of current staffing and funding levels; 
(iii) a detailed analysis of licensing ex-
emptions and their successful exploitation 
by unauthorized end-users; and 
(iv) an examination of the extent to 
which the increased tendency toward out-
sourcing and off-shoring of defense produc-
tion harm United States national security 
and weaken the defense industrial base, in-
cluding direct and indirect impact on em-
ployment, and formulate policies to address 
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209 
these trends as well as the policy of some 
United States trading partners to require 
offsets for major sales of defense articles; 
and 
(G) assess the extent to which export control 
policies and practices under the Arms Export 
Control Act promote the protection of basic 
human rights. 
(b) CONGRESSIONAL BRIEFINGS.—The President shall 
provide periodic briefings to the appropriate congressional 
committees on the progress of the review and assessment 
conducted under subsection (a). The requirement to provide 
congressional briefings under this subsection shall terminate 
on the date on which the President transmits to the appro-
priate congressional committees the report required under 
subsection (c). 
(c) REPORT.—Not later than 18 months after the date 
of the enactment of this Act, the President shall transmit 
to the appropriate congressional committees and the Com-
mittee on Armed Services of the House of Representatives 
and the Committee on Armed Services of the Senate a re-
port that contains the results of the review and assessment 
conducted under subsection (a). The report required by this 
subsection shall contain a certification that the requirement 
of subsection (a)(2)(C) has been met, or if the requirement 
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210 
has not been met, the reasons therefor. The report required 
by this subsection shall be submitted in unclassified form, 
but may contain a classified annex, if necessary. 
SEC. 804. PERFORMANCE GOALS FOR PROCESSING OF AP-
PLICATIONS 
FOR 
LICENSES 
TO 
EXPORT 
ITEMS ON UNITED STATES MUNITIONS LIST. 
(a) IN GENERAL.—The Secretary of State, acting 
through the head of the Directorate of Defense Trade Con-
trols of the Department of State, shall establish and main-
tain the following goals: 
(1) The processing time for review of each appli-
cation for a license to export items on the United 
States Munitions List (other than a Manufacturing 
License Agreement) shall be not more than 60 days 
from the date of receipt of the application. 
(2) The processing time for review of each appli-
cation for a commodity jurisdiction determination 
shall be not more than 60 days from the date of re-
ceipt of the application. 
(3) The total number of applications described in 
paragraph (1) that are unprocessed shall be not more 
than 7 percent of the total number of such applica-
tions submitted in the preceding calendar year. 
(b) ADDITIONAL REVIEW.—(1) If an application de-
scribed in paragraph (1) or (2) of subsection (a) is not proc-
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211 
essed within the time period described in the respective 
paragraph of such subsection, then the Managing Director 
of the Directorate of Defense Trade Controls or the Deputy 
Assistant Secretary for Defense Trade and Regional Secu-
rity of the Department of State, as appropriate, shall re-
view the status of the application to determine if further 
action is required to process the application. 
(2) If an application described in paragraph (1) or 
(2) of subsection (a) is not processed within 90 days from 
the date of receipt of the application, then the Assistant Sec-
retary for Political-Military Affairs of the Department of 
State shall— 
(A) review the status of the application to deter-
mine if further action is required to process the appli-
cation; and 
(B) submit to the appropriate congressional com-
mittees a notification of the review conducted under 
subparagraph (A), including a description of the ap-
plication, the reason for delay in processing the ap-
plication, and a proposal for further action to process 
the application. 
(3) For each calendar year, the Managing Director of 
the Directorate of Defense Trade Controls shall review not 
less than 2 percent of the total number of applications de-
scribed in paragraphs (1) and (2) of subsection (a) to en-
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212 
sure that the processing of such applications, including de-
cisions to approve, deny, or return without action, is con-
sistent with both policy and regulatory requirements of the 
Department of State. 
(c) STATEMENTS OF POLICY.— 
(1) UNITED
STATES
ALLIES.—Congress states 
that— 
(A) it shall be the policy of the Directorate 
of Defense Trade Controls of the Department of 
State to ensure that, to the maximum extent 
practicable, the processing time for review of ap-
plications described in subsection (a)(1) to ex-
port items that are not subject to the require-
ments of section 36 (b) or (c) of the Arms Export 
Control Act (22 U.S.C. 2776 (b) or (c)) to 
United States allies in direct support of combat 
operations or peacekeeping or humanitarian op-
erations with United States Armed Forces is not 
more than 7 days from the date of receipt of the 
application; and 
(B) it shall be the goal, as appropriate, of 
the Directorate of Defense Trade Controls to en-
sure that, to the maximum extent practicable, the 
processing time for review of applications de-
scribed in subsection (a)(1) to export items that 
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are not subject to the requirements of section 36 
(b) or (c) of the Arms Export Control Act to gov-
ernment security agencies of United States 
NATO allies, Australia, New Zealand, Japan, 
South Korea, Israel, and, as appropriate, other 
major non-NATO allies for any purpose other 
than the purpose described in paragraph (1) is 
not more than 30 days from the date of receipt 
of the application. 
(2) PRIORITY FOR APPLICATIONS FOR EXPORT OF 
U.S.-ORIGIN EQUIPMENT.—In meeting the goals estab-
lished by this section, it shall be the policy of the Di-
rectorate of Defense Trade Controls of the Department 
of State to prioritize the processing of applications for 
licenses and agreements necessary for the export of 
United States-origin equipment over applications for 
Manufacturing License Agreements. 
(d) REPORT.—Not later than December 31, 2011, and 
December 31, 2012, the Secretary of State shall submit to 
the appropriate congressional committees a report that con-
tains a detailed description of— 
(1)(A) the average processing time for and num-
ber of applications described in subsection (a)(1) to— 
(i) United States NATO allies, Australia, 
New Zealand, Japan, South Korea, and Israel; 
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214 
(ii) other major non-NATO allies; and 
(iii) all other countries; and 
(B) to the extent practicable, the average proc-
essing time for and number of applications described 
in subsection (b)(1) by item category; 
(2) the average processing time for and number 
of applications described in subsection (a)(2); 
(3) the average processing time for and number 
of applications for agreements described in part 124 
of title 22, Code of Federal Regulations (relating to 
the International Traffic in Arms Regulations (other 
than Manufacturing License Agreements)); 
(4) the average processing times for applications 
for Manufacturing License Agreements; 
(5) any management decisions of the Directorate 
of Defense Trade Controls of the Department of State 
that have been made in response to data contained in 
paragraphs (1) through (3); and 
(6) any advances in technology that will allow 
the time-frames described in subsection (a)(1) to be 
substantially reduced. 
(e) CONGRESSIONAL BRIEFINGS.—If, at the end of any 
month beginning after the date of the enactment of this Act, 
the total number of applications described in subsection 
(a)(1) that are unprocessed is more than 7 percent of the 
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215 
total number of such applications submitted in the pre-
ceding calendar year, then the Secretary of State, acting 
through the Under Secretary for Arms Control and Inter-
national Security, the Assistant Secretary for Political- 
Military Affairs, or the Deputy Assistant Secretary for De-
fense Trade and Regional Security of the Department of 
State, as appropriate, shall brief the appropriate congres-
sional committees on such matters and the corrective meas-
ures that the Directorate of Defense Trade Controls will take 
to comply with the requirements of subsection (a). 
(f) TRANSPARENCY OF COMMODITY JURISDICTION DE-
TERMINATIONS.— 
(1) DECLARATION OF POLICY.—Congress declares 
that the complete confidentiality surrounding several 
hundred commodity jurisdiction determinations made 
each year by the Department of State pursuant to the 
International Traffic in Arms Regulations is not nec-
essary to protect legitimate proprietary interests of 
persons or their prices and customers, is not in the 
best security and foreign policy interests of the United 
States, is inconsistent with the need to ensure a level 
playing field for United States exporters, and detracts 
from United States efforts to promote greater trans-
parency and responsibility by other countries in their 
export control systems. 
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(2) PUBLICATION ON INTERNET WEBSITE.—The 
Secretary of State shall— 
(A) upon making a commodity jurisdiction 
determination referred to in paragraph (1) pub-
lish on the Internet website of the Department of 
State not later than 30 days after the date of the 
determination— 
(i) the name of the manufacturer of the 
item; 
(ii) a brief general description of the 
item; 
(iii) the model or part number of the 
item; and 
(iv) the United States Munitions List 
designation under which the item has been 
designated, except that— 
(I) the name of the person or busi-
ness organization that sought the com-
modity 
jurisdiction 
determination 
shall not be published if the person or 
business organization is not the manu-
facturer of the item; and 
(II) the names of the customers, 
the price of the item, and any propri-
etary information relating to the item 
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217 
indicated by the person or business or-
ganization that sought the commodity 
jurisdiction determination shall not be 
published; and 
(B) maintain on the Internet website of the 
Department of State an archive, that is acces-
sible to the general public and other departments 
and agencies of the United States, of the infor-
mation published under subparagraph (A). 
(g) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to prohibit the President or Congress 
from undertaking a thorough review of the national security 
and foreign policy implications of a proposed export of 
items on the United States Munitions List. 
SEC. 805. REQUIREMENT TO ENSURE ADEQUATE STAFF AND 
RESOURCES FOR THE DIRECTORATE OF DE-
FENSE TRADE CONTROLS OF THE DEPART-
MENT OF STATE. 
(a) REQUIREMENT.—The Secretary of State shall en-
sure that the Directorate of Defense Trade Controls of the 
Department of State has the necessary staff and resources 
to carry out this subtitle and the amendments made by this 
subtitle. 
(b) MINIMUM NUMBER OF LICENSING OFFICERS.—For 
fiscal year 2011 and each subsequent fiscal year, the Sec-
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retary of State shall ensure that the Directorate of Defense 
Trade Controls has at least 1 licensing officer for every 
1,250 applications for licenses and other authorizations to 
export items on the United States Munitions List by not 
later than the third quarter of such fiscal year, based on 
the number of licenses and other authorizations expected to 
be received during such fiscal year. The Secretary shall en-
sure that in meeting the requirement of this subsection, the 
performance of other functions of the Directorate of Defense 
Trade Controls is maintained and adequate staff is pro-
vided for those functions. 
(c) MINIMUM NUMBER OF STAFF FOR COMMODITY JU-
RISDICTION DETERMINATIONS.—For each of the fiscal years 
2010 through 2012, the Secretary of State shall ensure that 
the Directorate of Defense Trade Controls has, to the extent 
practicable, not less than three individuals assigned to re-
view applications for commodity jurisdiction determina-
tions. 
(d) ENFORCEMENT RESOURCES.—In accordance with 
section 127.4 of title 22, Code of Federal Regulations, U.S. 
Immigration and Customs Enforcement is authorized to in-
vestigate violations of the International Traffic in Arms 
Regulations on behalf of the Directorate of Defense Trade 
Controls of the Department of State. The Secretary of State 
shall ensure that the Directorate of Defense Trade Controls 
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219 
has adequate staffing for enforcement of the International 
Traffic in Arms Regulations. 
SEC. 806. AUDIT BY INSPECTOR GENERAL OF THE DEPART-
MENT OF STATE. 
(a) AUDIT.—Not later than the end of each of the fiscal 
years 2011 and 2012, the Inspector General of the Depart-
ment of State shall conduct an independent audit to deter-
mine the extent to which the Department of State is meeting 
the requirements of sections 804 and 805. 
(b) REPORT.—The Inspector General shall submit to 
the appropriate congressional committees a report that con-
tains the result of each audit conducted under subsection 
(a). 
SEC. 807. INCREASED FLEXIBILITY FOR USE OF DEFENSE 
TRADE CONTROLS REGISTRATION FEES. 
(a) IN GENERAL.—Section 45 of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2717) is amend-
ed— 
(1) in the first sentence— 
(A) by striking ‘‘For’’ and inserting ‘‘(a) IN 
GENERAL.—For’’; and 
(B) by striking ‘‘Office’’ and inserting ‘‘Di-
rectorate’’; 
(2) by amending the second sentence to read as 
follows: 
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‘‘(b) AVAILABILITY OF FEES.—Fees credited to the ac-
count referred to in subsection (a) shall be available only 
for payment of expenses incurred for— 
‘‘(1) management, 
‘‘(2) licensing (in order to meet the requirements 
of section 805 of the Defense Trade Controls Perform-
ance Improvement Act of 2009 (relating to adequate 
staff and resources of the Directorate of Defense Trade 
Controls)), 
‘‘(3) compliance, 
‘‘(4) policy activities, and 
‘‘(5) facilities, 
of defense trade controls functions.’’; and 
(3) by adding at the end the following: 
‘‘(c) ALLOCATION OF FEES.—In allocating fees for 
payment of expenses described in subsection (b), the Sec-
retary of State shall accord the highest priority to payment 
of expenses incurred for personnel and equipment of the Di-
rectorate of Defense Trade Controls, including payment of 
expenses incurred to meet the requirements of section 805 
of the Defense Trade Controls Performance Improvement 
Act of 2009.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) of the 
Arms Export Control Act (22 U.S.C. 2778(b)) is amended 
by striking paragraph (3). 
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221 
SEC. 808. REVIEW OF INTERNATIONAL TRAFFIC IN ARMS 
REGULATIONS AND UNITED STATES MUNI-
TIONS LIST. 
(a) IN GENERAL.—The Secretary of State, in coordi-
nation with the heads of other relevant departments and 
agencies of the United States Government, shall review, 
with the assistance of United States manufacturers and 
other interested parties described in section 811(2) of this 
Act, the International Traffic in Arms Regulations and the 
United States Munitions List to determine those tech-
nologies and goods that warrant different or additional con-
trols. 
(b) CONDUCT OF REVIEW.—In carrying out the review 
required under subsection (a), the Secretary of State shall 
review not less than 20 percent of the technologies and goods 
on the International Traffic in Arms Regulations and the 
United States Munitions List in each calendar year so that 
for the 5-year period beginning with calendar year 2010, 
and for each subsequent 5-year period, the International 
Traffic in Arms Regulations and the United States Muni-
tions List will be reviewed in their entirety. 
(c) REPORT.—The Secretary of State shall submit to 
the appropriate congressional committees and the Com-
mittee on Armed Services of the House of Representatives 
and the Committee on Armed Services of the Senate an an-
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nual report on the results of the review carried out under 
this section. 
SEC. 809. SPECIAL LICENSING AUTHORIZATION FOR CER-
TAIN EXPORTS TO NATO MEMBER STATES, 
AUSTRALIA, JAPAN, NEW ZEALAND, ISRAEL, 
AND SOUTH KOREA. 
(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) SPECIAL LICENSING AUTHORIZATION FOR CER-
TAIN EXPORTS TO NATO MEMBER STATES, AUSTRALIA, 
JAPAN, NEW ZEALAND, ISRAEL, AND SOUTH KOREA.— 
‘‘(1) AUTHORIZATION.—(A) The President may 
provide for special licensing authorization for exports 
of United States-manufactured spare and replacement 
parts or components listed in an application for such 
special licensing authorization in connection with de-
fense items previously exported to NATO member 
states, Australia, Japan, New Zealand, Israel, and 
South Korea. A special licensing authorization issued 
pursuant to this clause shall be effective for a period 
not to exceed 5 years. 
‘‘(B) An authorization may be issued under sub-
paragraph (A) only if the applicable government of 
the country described in subparagraph (A), acting 
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through the applicant for the authorization, certifies 
that— 
‘‘(i) the export of spare and replacement 
parts or components supports a defense item pre-
viously lawfully exported; 
‘‘(ii) the spare and replacement parts or 
components will be transferred to a defense agen-
cy of a country described in subparagraph (A) 
that is a previously approved end-user of the de-
fense items and not to a distributor or a foreign 
consignee of such defense items; 
‘‘(iii) the spare and replacement parts or 
components will not to be used to materially en-
hance, optimize, or otherwise modify or upgrade 
the capability of the defense items; 
‘‘(iv) the spare and replacement parts or 
components relate to a defense item that is 
owned, operated, and in the inventory of the 
armed forces a country described in subpara-
graph (A); 
‘‘(v) the export of spare and replacement 
parts or components will be effected using the 
freight forwarder designated by the purchasing 
country’s diplomatic mission as responsible for 
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handling transfers under chapter 2 of this Act as 
required under regulations; and 
‘‘(vi) the spare and replacement parts or 
components to be exported under the special li-
censing authorization are specifically identified 
in the application. 
‘‘(C) An authorization may not be issued under 
subparagraph (A) for purposes of establishing offshore 
procurement arrangements or producing defense arti-
cles offshore. 
‘‘(D)(i) For purposes of this subsection, the term 
‘United States-manufactured spare and replacement 
parts or components’ means
spare and replacement 
parts or components— 
‘‘(I) with respect to which— 
‘‘(aa) United States-origin content 
costs constitute at least 85 percent of the 
total content costs; 
‘‘(bb) United States manufacturing 
costs constitute at least 85 percent of the 
total manufacturing costs; and 
‘‘(cc) foreign content, if any, is limited 
to content from countries eligible to receive 
exports of items on the United States Muni-
tions List under the International Traffic 
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225 
in Arms Regulations (other than de mini-
mis foreign content); 
‘‘(II) that were last substantially trans-
formed in the United States; and 
‘‘(III) that are not— 
‘‘(aa) classified as significant military 
equipment; or 
‘‘(bb) listed on the Missile Technology 
Control Regime Annex. 
‘‘(ii) For purposes of clause (i)(I) (aa) and (bb), 
the costs of non-United States-origin content shall be 
determined using the final price or final cost associ-
ated with the non-United States-origin content. 
‘‘(2) INAPPLICABILITY
PROVISIONS.—(A) The 
provisions of this subsection shall not apply with re-
spect to re-exports or re-transfers of spare and re-
placement parts or components and related services of 
defense items described in paragraph (1). 
‘‘(B) The congressional notification requirements 
contained in section 36(c) of this Act shall not apply 
with respect to an authorization issued under para-
graph (1).’’. 
(b) EFFECTIVE DATE.—The President shall issue regu-
lations to implement amendments made by subsection (a) 
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not later than 180 days after the date of the enactment of 
this Act. 
SEC. 810. AVAILABILITY OF INFORMATION ON THE STATUS 
OF LICENSE APPLICATIONS UNDER CHAPTER 
3 OF THE ARMS EXPORT CONTROL ACT. 
Chapter 3 of the Arms Export Control Act (22 U.S.C. 
2771 et seq.) is amended by inserting after section 38 the 
following new section: 
‘‘SEC. 38A. AVAILABILITY OF INFORMATION ON THE STATUS 
OF 
LICENSE 
APPLICATIONS 
UNDER 
THIS 
CHAPTER. 
‘‘(a) AVAILABILITY OF INFORMATION.—Not later than 
one year after the date of the enactment of the Defense Trade 
Controls Performance Improvement Act of 2009, the Presi-
dent shall make available to persons who have pending li-
cense applications under this chapter and the committees 
of jurisdiction the ability to access electronically current in-
formation on the status of each license application required 
to be submitted under this chapter. 
‘‘(b) MATTERS TO BE INCLUDED.—The information 
referred to in subsection (a) shall be limited to the following: 
‘‘(1) The case number of the license application. 
‘‘(2) The date on which the license application is 
received by the Department of State and becomes an 
‘open application’. 
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‘‘(3) The date on which the Directorate of De-
fense Trade Controls makes a determination with re-
spect to the license application or transmits it for 
interagency review, if required. 
‘‘(4) The date on which the interagency review 
process for the license application is completed, if 
such a review process is required. 
‘‘(5) The date on which the Department of State 
begins consultations with the congressional commit-
tees of jurisdiction with respect to the license applica-
tion. 
‘‘(6) The date on which the license application is 
sent to the congressional committees of jurisdiction.’’. 
SEC. 811. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1)(A) the advice provided to the Secretary of 
State by the Defense Trade Advisory Group (DTAG) 
supports the regulation of defense trade and helps en-
sure that United States national security and foreign 
policy interests continue to be protected and advanced 
while helping to reduce unnecessary impediments to 
legitimate exports in order to support the defense re-
quirements of United States friends and allies; and 
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(B) therefore, the Secretary of State should share 
significant planned rules and policy shifts with 
DTAG for comment; and 
(2) recognizing the constraints imposed on the 
Department of State by the nature of a voluntary or-
ganization such as DTAG, the Secretary of State is 
encouraged to ensure that members of DTAG are 
drawn from a representative cross-section of subject 
matter experts from the United States defense indus-
try, relevant trade and labor associations, academic, 
and foundation personnel. 
SEC. 812. DEFINITIONS. 
In this subtitle: 
(1) INTERNATIONAL TRAFFIC IN ARMS REGULA-
TIONS; ITAR.—The term ‘‘International Traffic in 
Arms Regulations’’ or ‘‘ITAR’’ means those regula-
tions contained in parts 120 through 130 of title 22, 
Code of Federal Regulations (or successor regula-
tions). 
(2) MAJOR NON-NATO ALLY.—The term ‘‘major 
non-NATO ally’’ means a country that is designated 
in accordance with section 517 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321k) as a major non- 
NATO ally for purposes of the Foreign Assistance Act 
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of 1961 (22 U.S.C. 2151 et seq.) and the Arms Export 
Control Act (22 U.S.C. 2751 et seq.). 
(3) MANUFACTURING
LICENSE
AGREEMENT.— 
The term ‘‘Manufacturing License Agreement’’ means 
an agreement described in section 120.21 of title 22, 
Code of Federal Regulations (or successor regula-
tions). 
(4) MISSILE
TECHNOLOGY
CONTROL
REGIME; 
MTCR.—The term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ has the meaning given the term in 
section 11B(c)(2) of the Export Administration Act of 
1979 (50 U.S.C. App. 2401b(c)(2)). 
(5) MISSILE
TECHNOLOGY
CONTROL
REGIME 
ANNEX; MTCR ANNEX.—The term ‘‘Missile Technology 
Control Regime Annex’’ or ‘‘MTCR Annex’’ has the 
meaning given the term in section 11B(c)(4) of the 
Export Administration Act of 1979 (50 U.S.C. App. 
2401b(c)(4)). 
(6) OFFSETS.—The term ‘‘offsets’’ includes com-
pensation practices required of purchase in either 
government-to-government or commercial sales of de-
fense articles or defense services under the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.) and the 
International Traffic in Arms Regulations. 
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230 
(7) UNITED STATES MUNITIONS LIST; USML.— 
The term ‘‘United States Munitions List’’ or 
‘‘USML’’ means the list referred to in section 38(a)(1) 
of the Arms Export Control Act (22 U.S.C. 
2778(a)(1)). 
SEC. 813. AUTHORIZATION OF APPROPRIATIONS. 
Of the amounts authorized to be appropriated under 
section 101, there are authorized to be appropriated such 
sums as may be necessary for each of fiscal years 2010 and 
2011 to carry out this subtitle and the amendments made 
by this subtitle. 
Subtitle B—Provisions Relating to 
Export Licenses 
SEC. 821. AVAILABILITY TO CONGRESS OF PRESIDENTIAL 
DIRECTIVES 
REGARDING 
UNITED 
STATES 
ARMS EXPORT POLICIES, PRACTICES, AND 
REGULATIONS. 
(a) IN GENERAL.—The President shall make available 
to the Committee on Foreign Affairs of the House of Rep-
resentatives and the Committee on Foreign Relations of the 
Senate the text of each Presidential directive regarding 
United States export policies, practices, and regulations re-
lating to the implementation of the Arms Export Control 
Act (22 U.S.C. 2751 et seq.) not later than 15 days after 
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231 
the date on which the directive has been signed or author-
ized by the President. 
(b) TRANSITION PROVISION.—Each Presidential direc-
tive described in subsection (a) that is signed or authorized 
by the President on or after January 1, 2009, and before 
the date of the enactment of this Act shall be made available 
to the congressional committees specified in subsection (a) 
not later than 90 days after the date of the enactment of 
this Act. 
(c) FORM.—To the maximum extent practicable, each 
Presidential directive described in subsection (a) shall be 
made available to the congressional committees specified in 
subsection (a) on an unclassified basis. 
SEC. 822. INCREASE IN VALUE OF DEFENSE ARTICLES AND 
SERVICES FOR CONGRESSIONAL REVIEW AND 
EXPEDITING CONGRESSIONAL REVIEW FOR 
ISRAEL. 
(a) FOREIGN MILITARY SALES.— 
(1) IN GENERAL.—Section 36(b) of the Arms Ex-
port Control Act (22 U.S.C. 2776(b)) is amended— 
(A) in paragraph (1)— 
(i) by striking ‘‘$50,000,000’’ and in-
serting ‘‘$100,000,000’’; 
(ii) by striking ‘‘$200,000,000’’ and 
inserting ‘‘$300,000,000’’; 
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(A) in subparagraph (A)— 
(i) by inserting after ‘‘for an export’’ 
the following: ‘‘of any major defense equip-
ment sold under a contract in the amount 
of $75,000,000 or more or of defense articles 
or defense services sold under a contract in 
the amount of $200,000,000 or more, (or, in 
the case of a defense article that is a fire-
arm controlled under category I of the 
United States Munitions List, $1,000,000 or 
more)’’; and 
(ii) by striking ‘‘Organization,’’ and 
inserting ‘‘Organization (NATO),’’ and by 
further striking ‘‘that Organization’’ and 
inserting ‘‘NATO’’; and 
(B) in subparagraph (C), by inserting after 
‘‘license’’ the following: ‘‘for an export of any 
major defense equipment sold under a contract 
in the amount of $50,000,000 or more or of de-
fense articles or defense services sold under a 
contract in the amount of $100,000,000 or more, 
(or, in the case of a defense article that is a fire-
arm controlled under category I of the United 
States Munitions List, $1,000,000 or more)’’; 
and 
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(3) by striking paragraph (5). 
SEC. 823. 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 
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. 824. REPORTING REQUIREMENT FOR UNLICENSED EX-
PORTS. 
Section 655(b) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2415(b)) is amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3), by striking the period at 
the end and inserting ‘‘; or’’; and 
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(3) by adding at the end the following: 
‘‘(4) were exported without a license under sec-
tion 38 of the Arms Export Control Act (22 U.S.C. 
2778) pursuant to an exemption established under the 
International Traffic in Arms Regulations, other than 
defense articles exported in furtherance of a letter of 
offer and acceptance under the Foreign Military Sales 
program or a technical assistance or manufacturing 
license agreement, including the specific exemption 
provision in the regulation under which the export 
was made.’’. 
SEC. 825. REPORT ON VALUE OF MAJOR DEFENSE EQUIP-
MENT AND DEFENSE ARTICLES EXPORTED 
UNDER SECTION 38 OF THE ARMS EXPORT 
CONTROL ACT. 
Section 38 of the Arms Export Control Act (22 U.S.C. 
2778), as amended by section 809(a) of this Act, is further 
amended by adding at the end the following: 
‘‘(l) REPORT.— 
‘‘(1) IN GENERAL.—The President shall transmit 
to the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Rela-
tions of the Senate a report that contains a detailed 
listing, by country and by international organization, 
of the total dollar value of major defense equipment 
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237 
and defense articles exported pursuant to licenses au-
thorized under this section for the previous fiscal 
year. 
‘‘(2) INCLUSION IN ANNUAL BUDGET.—The re-
port required by this subsection shall be included in 
the supporting information of the annual budget of 
the United States Government required to be sub-
mitted to Congress under section 1105 of title 31, 
United States Code.’’. 
SEC. 826. AUTHORITY TO REMOVE SATELLITES AND RE-
LATED COMPONENTS FROM THE UNITED 
STATES MUNITIONS LIST. 
(a) AUTHORITY.—Except as provided in subsection (b) 
and subject to subsection (d), the President is authorized 
to remove satellites and related components from the United 
States Munitions List, consistent with the procedures in sec-
tion 38(f) of the Arms Export Control Act (22 U.S.C. 
2778(f)). 
(b) EXCEPTION.—The authority of subsection (a) may 
not be exercised with respect to any satellite or related com-
ponent that may, directly or indirectly, be transferred to, 
or launched into outer space by, the People’s Republic of 
China. 
(c) UNITED STATES MUNITIONS LIST.—In this sec-
tion, the term ‘‘United States Munitions List’’ means the 
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list referred to in section 38(a)(1) of the Arms Export Con-
trol Act (22 U.S.C. 2778(a)(1)). 
(d) EFFECTIVE DATE.—The President may not exer-
cise the authority provided in this section before the date 
that is 90 days after the date of the enactment of this Act. 
SEC. 827. 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 2010 
through 2014 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 
defense articles, defense services, and technology by foreign 
countries, as required by such section. 
(b) REPORT.—The Inspector General of the Depart-
ment of State shall submit to the Committee on Foreign 
Affairs of the House of Representatives and the Committee 
on Foreign Relations of the Senate for each of fiscal years 
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2010 through 2014 a report that contains the findings and 
results of the review conducted under subsection (a). The 
report shall be submitted in unclassified form to the max-
imum extent possible, but may include a classified annex. 
SEC. 828. REPORT ON SELF-FINANCING OPTIONS FOR EX-
PORT LICENSING FUNCTIONS OF DDTC OF 
THE DEPARTMENT OF STATE. 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of State shall submit to the appro-
priate congressional committees a report on possible mecha-
nisms to place the export licensing functions of the Direc-
torate of Defense Trade Controls of the Department of State 
on a 100 percent self-financing basis. 
SEC. 829. CLARIFICATION OF CERTIFICATION REQUIRE-
MENT RELATING TO ISRAEL’S QUALITATIVE 
MILITARY EDGE. 
Section 36(h)(1) of the Arms Export Control Act (22 
U.S.C. 2776(h)(1)) is amended by striking ‘‘a determina-
tion’’ and inserting ‘‘an unclassified determination’’. 
SEC. 830. EXPEDITING CONGRESSIONAL DEFENSE EXPORT 
REVIEW PERIOD FOR ISRAEL. 
The Arms Export Control Act (22 U.S.C. 2751 et seq.) 
is amended— 
(1) in sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 
21(e)(2)(A), 36(b)(3) (as redesignated by section 
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822(a)(1)(B) of this Act), 36(c)(2)(A), 36(d)(2)(A), 
62(c)(1), and 63(a)(2) by inserting ‘‘Israel,’’ before 
‘‘or New Zealand’’; and 
(2) in section 3(b)(2), by inserting ‘‘the Govern-
ment of Israel,’’ before ‘‘or the Government of New 
Zealand’’. 
SEC. 831. UPDATING AND CONFORMING PENALTIES FOR 
VIOLATIONS OF SECTIONS 38 AND 39 OF THE 
ARMS EXPORT CONTROL ACT. 
(a) IN GENERAL.—Section 38(c) of the Arms Export 
Control Act (22 U.S.C. 2778(c) is amended to read as fol-
lows: 
‘‘(c) VIOLATIONS
OF THIS SECTION
AND SECTION 
39.— 
‘‘(1) UNLAWFUL ACTS.—It shall be unlawful for 
any person to violate, attempt to violate, conspire to 
violate, or cause a violation of any provision of this 
section or section 39, or any rule or regulation issued 
under either section, or who, in a registration or li-
cense application or required report, makes any un-
true statement of a material fact or omits to state a 
material fact required to be stated therein or nec-
essary to make the statements therein not misleading. 
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241 
‘‘(2) CRIMINAL PENALTIES.—A person who will-
fully commits an unlawful act described in para-
graph (1) shall upon conviction— 
‘‘(A) be fined for each violation in an 
amount not to exceed $1,000,000, or 
‘‘(B) in the case of a natural person, be im-
prisoned for each violation for not more than 20 
years, 
or both.’’. 
(b) MECHANISMS TO IDENTIFY VIOLATORS.—Section 
38(g) of the Arms Export Control Act (22 U.S.C. 2778(g)) 
is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), 
by inserting ‘‘or otherwise charged’’ after 
‘‘indictment’’; 
(ii) in clause (xi), by striking ‘‘or’’ at 
the end; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(xiii) section 542 of title 18, United States 
Code, relating to entry of goods by means of false 
statements; 
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‘‘(xiv) section 554 of title 18, United States 
Code, relating to smuggling goods from the 
United States; or 
‘‘(xv) section 1831 of title 18, United States 
Code, relating to economic espionage.’’; and 
(B) in subparagraph (B), by inserting ‘‘or 
otherwise charged’’ after ‘‘indictment’’; and 
(2) in paragraph (3)(A), by inserting ‘‘or other-
wise charged’’ after ‘‘indictment’’. 
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on the date of the enactment 
of this Act and shall apply with respect to violations of 
sections 38 and 39 of the Arms Export Control Act com-
mitted on or after that date. 
Subtitle C—Miscellaneous 
Provisions 
SEC. 841. AUTHORITY TO BUILD THE CAPACITY OF FOREIGN 
MILITARY FORCES. 
(a) AUTHORITY.—The Secretary of State is authorized 
to conduct a program to respond to contingencies in foreign 
countries or regions by providing training, procurement, 
and capacity-building of a foreign country’s national mili-
tary forces and dedicated counterterrorism forces in order 
for that country to— 
(1) conduct counterterrorist operations; or 
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(2) participate in or support military and sta-
bility operations in which the United States is a par-
ticipant. 
(b) TYPES OF CAPACITY-BUILDING.—The program au-
thorized under subsection (a) may include the provision of 
equipment, supplies, and training. 
(c) LIMITATIONS.— 
(1) ASSISTANCE
OTHERWISE
PROHIBITED
BY 
LAW.—The Secretary of State may not use the au-
thority in subsection (a) to provide any type of assist-
ance described in subsection (b) that is otherwise pro-
hibited by any provision of law. 
(2) LIMITATION ON ELIGIBLE COUNTRIES.—The 
Secretary of State may not use the authority in sub-
section (a) to provide assistance described in sub-
section (b) to any foreign country that is otherwise 
prohibited from receiving such type of assistance 
under any other provision of law. 
(d) FORMULATION AND EXECUTION OF ACTIVITIES.— 
The Secretary of State shall consult with the head of any 
other appropriate department or agency in the formulation 
and execution of the program authorized under subsection 
(a). 
(e) CONGRESSIONAL NOTIFICATION.— 
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