171 
(B) nongovernmental institutions that pro-
vide and promote study abroad opportunities 
for United States students, in consortium with 
institutions 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 es-
tablished under subsection (a) are that, within ten years 
of the date of the enactment of this Act— 
(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 
enrolled in community colleges, minority-serving in-
stitutions, 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 ac-
complish the objectives set forth in subsection (b), the 
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Foundation shall, in administering the program estab-
lished under subsection (a), take fully into account the rec-
ommendations of the Commission on the Abraham Lincoln 
Study Abroad Fellowship Program (established pursuant 
to section 104 of the Miscellaneous Appropriations and 
Offsets Act, 2004 (division H of Public Law 108–199)). 
(d) STRUCTURE OF GRANTS.— 
(1) PROMOTING REFORM.—In accordance with 
the recommendations of the Commission on the 
Abraham Lincoln Study Abroad Fellowship Pro-
gram, grants awarded under the program estab-
lished under subsection (a) shall be structured to the 
maximum extent 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 sub-
paragraphs (B) and (C) of such subsection; and 
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(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 
(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 
administering the program established under subsection 
(a), the Foundation shall require that institutions receiv-
ing 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. 
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SEC. 707. ANNUAL REPORT. 
(a) REPORT REQUIRED.—Not later than December 
15, 2010, and each December 15 thereafter, the Founda-
tion shall submit to the appropriate congressional commit-
tees 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; 
(2) a description of the Board’s policy priorities 
for the year and the bases upon which grant pro-
posals were solicited and awarded to institutions of 
higher education, nongovernmental institutions, and 
consortiums pursuant to sections 706(a)(2)(B) and 
706(a)(2)(C); 
(3) a list of grants made to institutions of high-
er education, nongovernmental institutions, and con-
sortiums pursuant to sections 706(a)(2)(B) and 
706(a)(2)(C) that includes the identity of the insti-
tutional recipient, the dollar amount, the estimated 
number of study abroad opportunities provided to 
United States students by each grant, the amount of 
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the grant used by each institution for administrative 
expenses, and information on cost-sharing by each 
institution 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 
specific information on— 
(A) the number of Foundation employees 
and the cost of compensation for Board mem-
bers, Foundation employees, and personal serv-
ice contractors; 
(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. 
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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 
government however designated and wherever situ-
ated, as may be necessary for carrying out the func-
tions of the Foundation; 
(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 serv-
ices or of property (real, personal, or mixed), tan-
gible or intangible, for the purpose of carrying out 
the provisions of this title; 
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(7) may use the United States mails in the 
same manner and on the same conditions as the ex-
ecutive departments; 
(8) may contract with individuals for personal 
services, who shall not be considered Federal em-
ployees for any provision of law administered by the 
Office of Personnel Management; 
(9) may hire or obtain passenger motor vehi-
cles; and 
(10) shall have such other powers as may be 
necessary and incident to carrying out this title. 
(b) PRINCIPAL
OFFICE.—The Foundation shall 
maintain its principal office in the metropolitan area of 
Washington, District of Columbia. 
(c) APPLICABILITY OF GOVERNMENT CORPORATION 
CONTROL ACT.— 
(1) IN
GENERAL.—The Foundation shall be 
subject 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 subpara-
graph: 
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‘‘(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 ac-
tivities of the Foundation. 
(2) AUTHORITY OF THE BOARD.—In carrying 
out the responsibilities under this subsection, the In-
spector General shall report to and be under the 
general 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 Inspector General of the Department of 
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State to conduct reviews, investigations, and in-
spections 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.— 
(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 senior-
ity, status, and pay in such agency, if such em-
ployee— 
(A) is separated from the Foundation for 
any reason, other than misconduct, neglect of 
duty, or malfeasance; and 
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(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 
accordance with such paragraph) within 30 days 
after applying for reemployment and, on reemploy-
ment, 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 ap-
pointed, compensated, or removed without regard to the 
civil service laws and regulations. 
(d) BASIC PAY.—The Chief Executive Officer may fix 
the rate of basic pay of employees of the Foundation with-
out regard to the provisions of chapter 51 of title 5, 
United States Code (relating to the classification of posi-
tions), subchapter III of chapter 53 of such title (relating 
to General Schedule pay rates), except that no employee 
of the Foundation 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— 
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(1) the term ‘‘agency’’ means an executive 
agency, 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 Comp-
troller General of the United States shall commence a re-
view of the operations of the Foundation. 
(b) CONTENT.—In conducting the review required 
under subsection (a), the Comptroller General shall ana-
lyze— 
(1) whether the Foundation is organized and 
operating 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); 
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(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 
appropriate congressional committees. 
(c) REPORT REQUIRED.—The Comptroller General 
shall submit a report on the results of the review con-
ducted under subsection (a) to the Secretary of State (in 
the capacity of the Secretary as Chairperson of the Board 
of the Foundation) and to the appropriate congressional 
committees. 
SEC. 711. AUTHORIZATION OF APPROPRIATIONS. 
(a) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this title $40,000,000 for 
fiscal year 2010 and $80,000,000 for fiscal year 
2011. 
(2) AMOUNTS IN ADDITION TO OTHER AVAIL-
ABLE AMOUNTS.—Amounts authorized to be appro-
priated by paragraph (1) are in addition to amounts 
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authorized to be appropriated or otherwise made 
available for educational exchange programs, includ-
ing the J. William Fulbright Educational Exchange 
Program and the Benjamin A. Gilman International 
Scholarship Program, administered by the Bureau of 
Educational and Cultural Affairs of the Department 
of State. 
(b) ALLOCATION OF FUNDS.— 
(1) IN GENERAL.—The Foundation may allo-
cate or transfer to any agency of the United States 
Government any of the funds available for carrying 
out this Act. Such funds shall be available for obli-
gation and expenditure for the purposes for which 
the funds were authorized, in accordance with au-
thority granted in this Act or under authority gov-
erning the activities of the United States Govern-
ment agency to which such funds are allocated or 
transferred. 
(2) NOTIFICATION.—The Foundation shall no-
tify the appropriate congressional committees not 
less than 15 days prior to an allocation or transfer 
of funds pursuant to paragraph (1). 
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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 
Controls 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 
controls is in urgent need of a comprehensive review 
in order to ensure such controls are protecting the 
national 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-
examination of existing programs, including pro-
grams relating to arms export controls. 
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(3) Federal Government agencies must review 
licenses 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 trad-
ing partners to require offsets for major sales of de-
fense and aerospace articles present a potential 
threat to United States national security and eco-
nomic well-being and serve to weaken the defense in-
dustrial 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), 
co-production, subcontracts, overseas investment and 
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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, 
Commerce 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 con-
sequence of the increasing globalization of the 
defense industry; 
(B) the most important challenge to the 
Department of State’s licensing process has 
been the sheer growth in volume of applicants 
for licenses and agreements, without the cor-
responding increase in licensing officers; and 
(C) the increase in licensing volume with-
out a corresponding increase in trained and ex-
perienced personnel has resulted in delays and 
increased processing times. 
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(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 effec-
tiveness of the United States export control regime, 
the Government Accountability Office found that— 
(A) the United States Government needs 
to conduct assessments to determine its overall 
effectiveness in the area of arms export control; 
and 
(B) the processing times of the Depart-
ment 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 ul-
timately harm the United States defense industrial 
base. The 2007 Institute for Defense Analysis report 
entitled ‘‘Export Controls and the U.S. Defense In-
dustrial 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 
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an impairment of United States firms in some sec-
tors to conduct global business relative to foreign 
competitors. 
(B) Additionally, the report found that United 
States commercial firms have been reluctant to en-
gage in research and development activities for the 
Department of Defense because this raises the fu-
ture prospects that the products based on this re-
search and development, even if intrinsically com-
mercial, will be saddled by Department of State mu-
nitions controls due to the link to that research. 
(11) According to the Department of State’s 
fiscal year 2008 budget justification to Congress, 
commercial 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 
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department has jurisdiction over these items, which 
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 Administra-
tion clarify this issue. 
(13) During 2007 and 2008, the management 
and staff of the Directorate of Defense Trade Con-
trols of the Department of State have, through ex-
traordinary effort and dedication, eliminated the 
large backlog of open applications and have reduced 
average 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 
required 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 con-
trols, improve efficiency, and reduce unneces-
sary redundancies across Federal Government 
agencies, through administrative actions, in-
cluding regulations, and to formulate legislative 
proposals 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 Mis-
sile Technology Control Regime Annex are sub-
ject to stringent control by the United States 
Government; 
(D) determine the overall effect of arms 
export controls on counterterrorism, law en-
forcement, and infrastructure protection mis-
sions of the Department of Homeland Security; 
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(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 
Munitions List and related technical data, in-
cluding— 
(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, 
con-
signees, 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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(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 il-
licit 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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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 con-
trol policies and practices under the Arms Ex-
port Control Act promote the protection of 
basic human rights. 
(b) CONGRESSIONAL
BRIEFINGS.—The President 
shall provide periodic briefings to the appropriate congres-
sional committees on the progress of the review and as-
sessment conducted under subsection (a). The require-
ment to provide congressional briefings under this sub-
section shall terminate on the date on which the President 
transmits to the appropriate 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 Committee on Armed Services of the House of Rep-
resentatives and the Committee on Armed Services of the 
Senate a report that contains the results of the review and 
assessment conducted under subsection (a). The report re-
quired by this subsection shall contain a certification that 
the requirement of subsection (a)(2)(C) has been met, or 
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if the requirement 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 
Controls of the Department of State, shall establish and 
maintain the following goals: 
(1) The processing time for review of each ap-
plication 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 ap-
plication 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 ap-
plications submitted in the preceding calendar year. 
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(b) ADDITIONAL REVIEW.—(1) If an application de-
scribed in paragraph (1) or (2) of subsection (a) is not 
processed within the time period described in the respec-
tive paragraph of such subsection, then the Managing Di-
rector of the Directorate of Defense Trade Controls or the 
Deputy Assistant Secretary for Defense Trade and Re-
gional Security of the Department of State, as appro-
priate, shall review the status of the application to deter-
mine if further action is required to process the applica-
tion. 
(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 
Secretary for Political-Military Affairs of the Department 
of State shall— 
(A) review the status of the application to de-
termine if further action is required to process the 
application; and 
(B) submit to the appropriate congressional 
committees a notification of the review conducted 
under subparagraph (A), including a description of 
the application, the reason for delay in processing 
the application, and a proposal for further action to 
process the application. 
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(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 
described in paragraphs (1) and (2) of subsection (a) to 
ensure that the processing of such applications, including 
decisions to approve, deny, or return without action, is 
consistent 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 
applications described in subsection (a)(1) to 
export items that are not subject to the require-
ments of section 36 (b) or (c) of the Arms Ex-
port 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 
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(B) it shall be the goal, as appropriate, of 
the Directorate of Defense Trade Controls to 
ensure that, to the maximum extent practicable, 
the processing time for review of applications 
described in subsection (a)(1) to export items 
that are not subject to the requirements of sec-
tion 36 (b) or (c) of the Arms Export Control 
Act to government security agencies of United 
States NATO allies, Australia, New Zealand, 
Japan, South Korea, Israel, and, as appro-
priate, 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 
established by this section, it shall be the policy of 
the Directorate 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 Agree-
ments. 
(d) REPORT.—Not later than December 31, 2011, 
and December 31, 2012, the Secretary of State shall sub-
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mit to the appropriate congressional committees a report 
that contains a detailed description of— 
(1)(A) the average processing time for and 
number of applications described in subsection 
(a)(1) to— 
(i) United States NATO allies, Australia, 
New Zealand, Japan, South Korea, and Israel; 
(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 applica-
tions for Manufacturing License Agreements; 
(5) any management decisions of the Direc-
torate of Defense Trade Controls of the Department 
of State that have been made in response to data 
contained in paragraphs (1) through (3); and 
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(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 sub-
section (a)(1) that are unprocessed is more than 7 percent 
of the total number of such applications submitted in the 
preceding calendar year, then the Secretary of State, act-
ing through the Under Secretary for Arms Control and 
International Security, the Assistant Secretary for Polit-
ical-Military Affairs, or the Deputy Assistant Secretary 
for Defense Trade and Regional Security of the Depart-
ment of State, as appropriate, shall brief the appropriate 
congressional committees on such matters and the correc-
tive measures that the Directorate of Defense Trade Con-
trols will take to comply with the requirements of sub-
section (a). 
(f) TRANSPARENCY OF COMMODITY JURISDICTION 
DETERMINATIONS.— 
(1) DECLARATION
OF
POLICY.—Congress de-
clares that the complete confidentiality surrounding 
several hundred commodity jurisdiction determina-
tions made each year by the Department of State 
pursuant to the International Traffic in Arms Regu-
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lations is not necessary to protect legitimate propri-
etary interests of persons or their prices and cus-
tomers, 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 transparency and respon-
sibility by other countries in their export control sys-
tems. 
(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— 
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201 
(I) the name of the person or 
business organization that sought the 
commodity jurisdiction determination 
shall not be published if the person or 
business organization is not the man-
ufacturer of the item; and 
(II) the names of the customers, 
the price of the item, and any propri-
etary information relating to the item 
indicated by the person or business 
organization that sought the com-
modity 
jurisdiction 
determination 
shall not be published; and 
(B) maintain on the Internet website of 
the Department of State an archive, that is ac-
cessible to the general public and other depart-
ments and agencies of the United States, of the 
information published under subparagraph (A). 
(g) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prohibit the President or Con-
gress from undertaking a thorough review of the national 
security and foreign policy implications of a proposed ex-
port of items on the United States Munitions List. 
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202 
SEC. 805. REQUIREMENT TO ENSURE ADEQUATE STAFF 
AND RESOURCES FOR THE DIRECTORATE OF 
DEFENSE 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 re-
sources 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 
Secretary of State shall ensure that the Directorate of De-
fense Trade Controls has at least 1 licensing officer for 
every 1,250 applications for licenses and other authoriza-
tions 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 Sec-
retary shall ensure that in meeting the requirement of this 
subsection, the performance of other functions of the Di-
rectorate of Defense Trade Controls is maintained and 
adequate staff is provided for those functions. 
(c) MINIMUM NUMBER OF STAFF FOR COMMODITY 
JURISDICTION DETERMINATIONS.—For each of the fiscal 
years 2010 through 2012, the Secretary of State shall en-
sure that the Directorate of Defense Trade Controls has, 
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203 
to the extent practicable, not less than three individuals 
assigned to review applications for commodity jurisdiction 
determinations. 
(d) ENFORCEMENT
RESOURCES.—In accordance 
with section 127.4 of title 22, Code of Federal Regula-
tions, U.S. Immigration and Customs Enforcement is au-
thorized to investigate violations of the International Traf-
fic 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 De-
fense Trade Controls has adequate staffing for enforce-
ment 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 
Department of State shall conduct an independent audit 
to determine 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 
contains the result of each audit conducted under sub-
section (a). 
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204 
SEC. 807. INCREASED FLEXIBILITY FOR USE OF DEFENSE 
TRADE CONTROLS REGISTRATION FEES. 
(a) IN GENERAL.—Section 45 of the State Depart-
ment Basic Authorities Act of 1956 (22 U.S.C. 2717) is 
amended— 
(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: 
‘‘(b) AVAILABILITY OF FEES.—Fees credited to the 
account referred to in subsection (a) shall be available only 
for payment of expenses incurred for— 
‘‘(1) management, 
‘‘(2) licensing (in order to meet the require-
ments of section 805 of the Defense Trade Controls 
Performance 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: 
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205 
‘‘(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 pay-
ment of expenses incurred for personnel and equipment 
of the Directorate 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). 
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 
controls. 
(b) CONDUCT OF REVIEW.—In carrying out the re-
view required under subsection (a), the Secretary of State 
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shall review not less than 20 percent of the technologies 
and goods on the International Traffic in Arms Regula-
tions and the United States Munitions List in each cal-
endar year so that for the 5-year period beginning with 
calendar year 2010, and for each subsequent 5-year pe-
riod, the International Traffic in Arms Regulations and 
the United States Munitions 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 
annual 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 
Control 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.— 
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‘‘(1) AUTHORIZATION.—(A) The President may 
provide for special licensing authorization for exports 
of United States-manufactured spare and replace-
ment parts or components listed in an application 
for such special licensing authorization in connection 
with defense items previously exported to NATO 
member states, Australia, Japan, New Zealand, 
Israel, and South Korea. A special licensing author-
ization issued pursuant to this clause shall be effec-
tive for a period not to exceed 5 years. 
‘‘(B) An authorization may be issued under 
subparagraph (A) only if the applicable government 
of the country described in subparagraph (A), acting 
through the applicant for the authorization, certifies 
that— 
‘‘(i) the export of spare and replacement 
parts or components supports a defense item 
previously lawfully exported; 
‘‘(ii) the spare and replacement parts or 
components will be transferred to a defense 
agency of a country described in subparagraph 
(A) that is a previously approved end-user of 
the defense items and not to a distributor or a 
foreign consignee of such defense items; 
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‘‘(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 
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 off-
shore procurement arrangements or producing de-
fense articles offshore. 
‘‘(D)(i) For purposes of this subsection, the 
term ‘United States-manufactured spare and re-
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placement 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 Mu-
nitions List under the International Traffic 
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 
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210 
associated with the non-United States-origin con-
tent. 
‘‘(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 require-
ments contained in section 36(c) of this Act shall 
not apply with respect to an authorization issued 
under paragraph (1).’’. 
(b) EFFECTIVE DATE.—The President shall issue 
regulations to implement amendments made by subsection 
(a) 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: 
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‘‘SEC. 38A. AVAILABILITY OF INFORMATION ON THE STA-
TUS OF LICENSE APPLICATIONS UNDER THIS 
CHAPTER. 
‘‘(a) AVAILABILITY
OF INFORMATION.—Not later 
than one year after the date of the enactment of the De-
fense Trade Controls Performance Improvement Act of 
2009, the President shall make available to persons who 
have pending license applications under this chapter and 
the committees of jurisdiction the ability to access elec-
tronically current information 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 fol-
lowing: 
‘‘(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’. 
‘‘(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. 
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‘‘(5) The date on which the Department of 
State begins consultations with the congressional 
committees of jurisdiction with respect to the license 
application. 
‘‘(6) The date on which the license application 
is sent to the congressional committees of jurisdic-
tion.’’. 
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 ensure that United States national secu-
rity and foreign policy interests continue to be pro-
tected and advanced while helping to reduce unnec-
essary impediments to legitimate exports in order to 
support the defense requirements of United States 
friends and allies; and 
(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 
organization such as DTAG, the Secretary of State 
is encouraged to ensure that members of DTAG are 
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drawn from a representative cross-section of subject 
matter experts from the United States defense in-
dustry, relevant trade and labor associations, aca-
demic, 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 As-
sistance Act of 1961 (22 U.S.C. 2321k) as a major 
non-NATO ally for purposes of the Foreign Assist-
ance Act 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 
regulations). 
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(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 Tech-
nology 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 
compensation practices required of purchase in ei-
ther government-to-government or commercial sales 
of defense articles or defense services under the 
Arms Export Control Act (22 U.S.C. 2751 et seq.) 
and the International Traffic in Arms Regulations. 
(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 
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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 avail-
able to the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Rela-
tions of the Senate the text of each Presidential directive 
regarding United States export policies, practices, and 
regulations relating to the implementation of the Arms 
Export Control Act (22 U.S.C. 2751 et seq.) not later 
than 15 days after the date on which the directive has 
been signed or authorized by the President. 
(b) TRANSITION PROVISION.—Each Presidential di-
rective described in subsection (a) that is signed or author-
ized 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 sub-
section (a) not later than 90 days after the date of the 
enactment of this Act. 
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(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 
Export Control Act (22 U.S.C. 2776(b)) is amend-
ed— 
(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’’; 
(iii) by striking ‘‘$14,000,000’’ and 
inserting ‘‘$25,000,000’’; and 
(iv) by striking ‘‘The letter of offer 
shall not be issued’’ and all that follows 
through ‘‘enacts a joint resolution’’ and in-
serting the following: 
‘‘(2) The letter of offer shall not be issued— 
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‘‘(A) with respect to a proposed sale 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, to the North Atlantic 
Treaty Organization (NATO), any member 
country of NATO, Japan, Australia, the Repub-
lic of Korea, Israel, or New Zealand, if Con-
gress, within 15 calendar days after receiving 
such certification, or 
‘‘(B) with respect to a proposed sale of any 
defense articles or services under this Act for 
$100,000,000 or more, any design and con-
struction services for $200,000,000 or more, or 
any major defense equipment for $50,000,000 
or more, to any other country or organization, 
if Congress, within 30 calendar days after re-
ceiving such certification, 
enacts a joint resolution’’; and 
(B) 
by 
redesignating 
paragraphs 
(2) 
through (6) as paragraphs (3) through (7), re-
spectively. 
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ment sold under a contract in the amount 
of $75,000,000 or more or of defense arti-
cles or defense services sold under a con-
tract in the amount of $200,000,000 or 
more, (or, in the case of a defense article 
that is a firearm 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 firearm controlled under category I of the 
United States Munitions List, $1,000,000 or 
more)’’; and 
(3) by striking paragraph (5). 
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SEC. 823. DIPLOMATIC EFFORTS TO STRENGTHEN NA-
TIONAL AND INTERNATIONAL ARMS EXPORT 
CONTROLS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the President should redouble United States 
diplomatic efforts to strengthen national and international 
arms export controls by establishing a senior-level initia-
tive to ensure that those arms export controls are com-
parable to and supportive 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 spe-
cific 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) is amended by adding at the end the fol-
lowing: 
‘‘(k) REPORT.— 
‘‘(1) IN GENERAL.—The President shall trans-
mit to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on 
Foreign Relations of the Senate a report that con-
tains a detailed listing, by country and by inter-
national organization, of the total dollar value of 
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major defense equipment and defense articles ex-
ported pursuant to licenses authorized 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 author-
ized to remove satellites and related components from the 
United States Munitions List, consistent with the proce-
dures in section 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 re-
lated component that may, directly or indirectly, be trans-
ferred 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 
Control 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-ori-
gin 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 Com-
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mittee on Foreign Relations of the Senate for each of fis-
cal years 2010 through 2014 a report that contains the 
findings and results of the review conducted under sub-
section (a). The report shall be submitted in unclassified 
form to the maximum 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 enact-
ment of this Act, the Secretary of State shall submit to 
the appropriate congressional committees a report on pos-
sible mechanisms to place the export licensing functions 
of the Directorate of Defense Trade Controls of the De-
partment 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— 
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(1) 
in 
sections 
3(d)(2)(B), 
3(d)(3)(A)(i), 
3(d)(5), 
21(e)(2)(A), 
36(b)(2), 
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 
follows: 
‘‘(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 license application or required report, makes any 
untrue 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 mis-
leading. 
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‘‘(2) CIVIL PENALTIES.—A person who commits 
an unlawful act described in paragraph (1) shall 
upon conviction be fined for each violation in an 
amount not to exceed the greater of— 
‘‘(A) $250,000; or 
‘‘(B) an amount that is twice the amount 
of the transaction that is the basis of the viola-
tion with respect to which the penalty is im-
posed. 
‘‘(3) CRIMINAL
PENALTIES.—A person who 
willfully 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, im-
prisoned 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’’; 
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(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; 
‘‘(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 
subsection (a) shall take effect on the date of the enact-
ment of this Act and shall apply with respect to violations 
of sections 38 and 39 of the Arms Export Control Act 
committed on or after that date. 
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Subtitle C—Miscellaneous 
Provisions 
SEC. 841. AUTHORITY TO BUILD THE CAPACITY OF FOR-
EIGN MILITARY FORCES. 
(a) AUTHORITY.—The Secretary of State is author-
ized to conduct a program to respond to contingencies in 
foreign countries or regions by providing training, pro-
curement, and capacity-building of a foreign country’s na-
tional military forces and dedicated counterterrorism 
forces in order for that country to— 
(1) conduct counterterrorist operations; or 
(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 
authorized 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 as-
sistance described in subsection (b) that is otherwise 
prohibited by any provision of law. 
(2) LIMITATION
ON
ELIGIBLE
COUNTRIES.— 
The Secretary of State may not use the authority in 
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subsection (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 ACTIVI-
TIES.—The Secretary of State shall consult with the head 
of any other appropriate department or agency in the for-
mulation and execution of the program authorized under 
subsection (a). 
(e) CONGRESSIONAL NOTIFICATION.— 
(1) ACTIVITIES IN A COUNTRY.—Not less than 
15 days before obligating funds for activities in any 
country under the program authorized under sub-
section (a), the Secretary of State shall submit to 
the congressional committees specified in paragraph 
(2) a notice of the following: 
(A) The country whose capacity to engage 
in activities in subsection (a) will be assisted. 
(B) The budget, implementation timeline 
with milestones, and completion date for com-
pleting the activities. 
(2) 
SPECIFIED
CONGRESSIONAL
COMMIT-
TEES.—The congressional committees specified in 
this paragraph are the following: 
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‘‘FOREIGN MILITARY SALES STOCKPILE 
FUND’’. 
SEC. 843. ANNUAL ESTIMATE AND JUSTIFICATION FOR 
FOREIGN MILITARY SALES PROGRAM. 
Section 25(a)(1) of the Arms Export Control Act (22 
U.S.C. 2765(a)(1)) is amended by striking ‘‘, together 
with an indication of which sales and licensed commercial 
exports’’ and inserting ‘‘and’’. 
SEC. 844. SENSE OF CONGRESS ON THE GLOBAL ARMS 
TRADE. 
It is the sense of Congress that— 
(1) the United States, as the world’s largest ex-
porter of conventional weapons, has a special obliga-
tion to promote responsible practices in the global 
arms trade and should actively work to prevent con-
ventional weapons from being used to perpetrate— 
(A) breaches of the United Nations Char-
ter relating to the use of force; 
(B) gross violations of international human 
rights; 
(C) serious violations of international hu-
manitarian law; 
(D) acts of genocide or crimes against hu-
manity; 
(E) acts of terrorism; and 
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(F) destabilizing buildups of military 
forces and weapons; and 
(2) the United States should actively engage in 
the development of a legally binding treaty estab-
lishing common international standards for the im-
port, export, and transfer of conventional weapons. 
SEC. 845. REPORT ON UNITED STATES’ COMMITMENTS TO 
THE SECURITY OF ISRAEL. 
(a) INITIAL REPORT.—Not later than 30 days after 
the date of the enactment of this Act, the President shall 
transmit to the appropriate congressional committees a re-
port that contains— 
(1) a complete, unedited, and unredacted copy 
of each assurance made by United States Govern-
ment officials to officials of the Government of Israel 
regarding Israel’s security and maintenance of 
Israel’s qualitative military edge, as well as any 
other assurance regarding Israel’s security and 
maintenance of Israel’s qualitative military edge pro-
vided in conjunction with exports under the Arms 
Export Control Act (22 U.S.C. 2751 et seq.), for the 
period beginning on January 1, 1975, and ending on 
the date of the enactment of this Act; and 
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(2) an analysis of the extent to which, and by 
what means, each such assurance has been and is 
continuing to be fulfilled. 
(b) SUBSEQUENT REPORTS.— 
(1) NEW
ASSURANCES
AND
REVISIONS.—The 
President shall transmit to the appropriate congres-
sional committees a report that contains the infor-
mation required under subsection (a) with respect 
to— 
(A) each assurance described in subsection 
(a) made on or after the date of the enactment 
of this Act, or 
(B) revisions to any assurance described in 
subsection (a) or subparagraph (A) of this 
paragraph, 
within 15 days of the new assurance or revision 
being conveyed. 
(2) 5-YEAR REPORTS.—Not later than 5 years 
after the date of the enactment of this Act, and 
every 5 years thereafter, the President shall trans-
mit to the appropriate congressional committees a 
report that contains the information required under 
subsection (a) with respect to each assurance de-
scribed in subsection (a) or paragraph (1)(A) of this 
subsection and revisions to any assurance described 
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in subsection (a) or paragraph (1)(A) of this sub-
section during the preceding 5-year period. 
(c) FORM.—Each report required by this section shall 
be transmitted in unclassified form, but may contain a 
classified annex, if necessary. 
SEC. 846. WAR RESERVES STOCKPILE. 
(a) DEPARTMENT
OF DEFENSE APPROPRIATIONS 
ACT, 2005.—Section 12001(d) of the Department of De-
fense Appropriations Act, 2005 (Public Law 108–287; 
118 Stat. 1011), is amended by striking ‘‘4’’ and inserting 
‘‘7’’. 
(b) FOREIGN ASSISTANCE ACT OF 1961.—Section 
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2321h(b)(2)(A)) is amended by striking ‘‘fiscal 
years 2007 and 2008’’ and inserting ‘‘fiscal years 2010 
and 2011’’. 
SEC. 847. EXCESS DEFENSE ARTICLES FOR CENTRAL AND 
SOUTH EUROPEAN COUNTRIES AND CERTAIN 
OTHER COUNTRIES. 
Section 516(e) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j(e)) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraphs (2) and (3)’’; 
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(2) in paragraph (2), in the heading by striking 
‘‘EXCEPTION’’ and inserting ‘‘GENERAL
EXCEP-
TION’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) EXCEPTION FOR SPECIFIC COUNTRIES.— 
For fiscal years 2010 and 2011, the President may 
provide for the crating, packing, handling, and 
transportation of excess defense articles transferred 
under the authority of this section to Albania, Af-
ghanistan, Bulgaria, Croatia, Estonia, Macedonia, 
Georgia, 
India, 
Iraq, 
Israel, 
Kazakhstan, 
Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, 
Pakistan, 
Romania, 
Slovakia, 
Tajikistan, 
Turkmenistan, and Ukraine.’’. 
TITLE 
IX—ACTIONS 
TO 
EN-
HANCE THE MERIDA INITIA-
TIVE 
Subtitle A—General Provisions 
SEC. 901. COORDINATOR OF UNITED STATES GOVERNMENT 
ACTIVITIES TO IMPLEMENT THE MERIDA INI-
TIATIVE. 
(a) DECLARATION OF POLICY.—Congress declares 
that the Merida Initiative is a Department of State-led 
initiative which combines the programs of numerous 
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United States Government departments and agencies and 
therefore requires a single individual to coordinate and 
track all Merida Initiative-related efforts government-wide 
to avoid duplication, coordinate messaging, and facilitate 
accountability to and communication with Congress. 
(b) DESIGNATION OF HIGH-LEVEL COORDINATOR.— 
(1) IN
GENERAL.—The President shall des-
ignate, within the Department of State, a Coordi-
nator of United States Government Activities to Im-
plement the Merida Initiative (hereafter in this sec-
tion referred to as the ‘‘Coordinator’’) who shall be 
responsible for— 
(A) designing and shaping an overall strat-
egy for the Merida Initiative; 
(B) ensuring program and policy coordina-
tion among United States Government depart-
ments and agencies in carrying out the Merida 
Initiative, including avoiding duplication among 
programs and ensuring that a consistent mes-
sage emanates from the United States Govern-
ment; 
(C) ensuring that efforts of the United 
States Government are in full consonance with 
the efforts of the countries within the Merida 
Initiative; 
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(D) tracking, in coordination with the rel-
evant officials of the Department of Defense 
and other departments and agencies, United 
States assistance programs that fulfill the goals 
of the Merida Initiative or are closely related to 
the goals of the Merida Initiative, including to 
the extent possible, tracking information re-
quired under the second section 620J of the 
Foreign Assistance Act of 1961 (22 U.S.C. 
2378d) (as added by section 651 of division J 
of Public Law 110–161) with respect to coun-
tries participating in the Merida Initiative; and 
(E) consulting with the Attorney General 
and the Secretary of Homeland Security with 
respect to the activities of Federal, State, and 
local law enforcement authorities in the United 
States relating to the goals of the Merida Ini-
tiative, particularly along the United States- 
Mexico border. 
(2) RANK
AND
STATUS
OF
THE
COORDI-
NATOR.—The Coordinator should have the rank and 
status of ambassador. 
SEC. 902. ADDING THE CARIBBEAN TO THE MERIDA INITIA-
TIVE. 
(a) FINDINGS.—Congress finds the following: 
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(1) The illicit drug trade—which has taken a 
toll on the small countries of the Caribbean Commu-
nity (CARICOM) for many years—is now moving 
even more aggressively into these countries. 
(2) A March 2007 joint report by the United 
Nations Office on Drugs and Crime (UNODC) and 
the World Bank noted that murder rates in the Car-
ibbean—at 30 per 100,000 population annually—are 
higher than for any other region of the world and 
have risen in recent years for many of the region’s 
countries. The report also argues that the strongest 
explanation for the high crime and violence rates in 
the Caribbean and their rise in recent years is drug 
trafficking. 
(3) If the United States does not move quickly 
to provide Merida Initiative assistance to the 
CARICOM countries, the positive results of the 
Merida Initiative in Mexico and Central America will 
move the drug trade deeper into the Caribbean and 
multiply the already alarming rates of violence. 
(b) CONSULTATIONS.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
State is authorized to consult with the countries of the 
Caribbean Community (CARICOM) in preparation for 
their inclusion into the Merida Initiative. 
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240 
(c) INCORPORATION OF CARICOM COUNTRIES INTO 
THE MERIDA INITIATIVE.—The President is authorized to 
incorporate the CARICOM countries into the Merida Ini-
tiative. 
SEC. 903. MERIDA INITIATIVE MONITORING AND EVALUA-
TION MECHANISM. 
(a) DEFINITIONS.—In this section: 
(1) 
IMPACT
EVALUATION
RESEARCH.—The 
term ‘‘impact evaluation research’’ means the appli-
cation of research methods and statistical analysis to 
measure the extent to which change in a population- 
based outcome can be attributed to program inter-
vention instead of other environmental factors. 
(2) OPERATIONS RESEARCH.—The term ‘‘oper-
ations research’’ means the application of social 
science research methods, statistical analysis, and 
other appropriate scientific methods to judge, com-
pare, and improve policies and program outcomes, 
from the earliest stages of defining and designing 
programs through their development and implemen-
tation, with the objective of the rapid dissemination 
of conclusions and concrete impact on programming. 
(3) PROGRAM
MONITORING.—The term ‘‘pro-
gram monitoring’’ means the collection, analysis, 
and use of routine program data to determine how 
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241 
well a program is carried out and how much the pro-
gram costs. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) to successfully support building the capacity 
of recipient countries’ civilian security institutions, 
enhance the rule of law in recipient countries, and 
ensure the protection of human rights, the President 
should establish a program to conduct impact eval-
uation research, operations research, and program 
monitoring to ensure effectiveness of assistance pro-
vided under the Merida Initiative; 
(2) long-term solutions to the security problems 
of Merida recipient countries depend on increasing 
the effectiveness and responsiveness of their civilian 
institutions, including their judicial system; 
(3) a specific program of impact evaluation re-
search, operations research, and program moni-
toring, established at the inception of the program, 
is required to permit assessment of the operational 
effectiveness of the impact of United States assist-
ance towards these goals; and 
(4) the President, in developing performance 
measurement methods under the impact evaluation 
research, operations research, and program moni-
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242 
toring, should consult with the appropriate congres-
sional committees as well as the governments of 
Merida recipient countries. 
(c) IMPACT EVALUATION RESEARCH, OPERATION 
RESEARCH, AND PROGRAM MONITORING
OF ASSIST-
ANCE.—The President shall establish and implement a 
program to assess the effectiveness of assistance provided 
under the Merida Initiative through impact evaluation re-
search on a selected set of programmatic interventions, op-
erations research in areas to ensure efficiency and effec-
tiveness of program implementation, and monitoring to 
ensure timely and transparent delivery of assistance. 
(d) REQUIREMENTS.—The program required under 
subsection (c) shall include— 
(1) a delineation of key impact evaluation re-
search and operations research questions for main 
components of assistance provided under the Merida 
Initiative; 
(2) an identification of measurable performance 
goals for each of the main components of assistance 
provided under the Merida Initiative, to be expressed 
in an objective and quantifiable form at the incep-
tion of the program; 
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viduals to such organizations, and to encourage 
other governments to provide similar support 
and access. 
(2) UNITED STATES ACTIVITIES.— 
(A) IN GENERAL.—Given the importance 
of preventing new instances of de jure or de 
facto statelessness and the trafficking of de jure 
or de facto stateless individuals, and of pro-
tecting the human rights of de jure or de facto 
stateless individuals, the President shall submit 
to the Committee on Foreign Affairs and the 
Committee on the Judiciary of the House of 
Representatives and the Committee on Foreign 
Relations and the Committee on the Judiciary 
of the Senate a report that includes the fol-
lowing: 
(i) A list of countries and territories 
with significant de jure or de facto state-
less populations under their jurisdictions 
and the conditions and consequences of 
such de jure or de facto statelessness of 
such individuals. 
(ii) United States international efforts 
to prevent further de jure or de facto 
statelessness and encourage the granting 
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