I 
118TH CONGRESS 
1ST SESSION H. R. 4716 
To amend the Arms Export Control Act in support of Australia and the 
AUKUS partnership. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 18, 2023 
Mrs. KIM of California (for herself, Mr. MCCAUL, and Mr. KEAN of New Jer-
sey) introduced the following bill; which was referred to the Committee 
on Foreign Affairs, and in addition to the Committee on Rules, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Arms Export Control Act in support of 
Australia and the AUKUS partnership. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keeping our Allies 
Leading in Advancement Act’’ or the ‘‘KOALA Act’’. 
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SEC. 2. EXCEPTIONS FOR AUSTRALIA RELATING TO LI-
CENSING OF DEFENSE ARTICLES AND DE-
FENSE SERVICES FOR EXPORT UNDER THE 
ARMS EXPORT CONTROL ACT. 
(a) IN GENERAL.—Section 38(j)(1) of the Arms Ex-
port Control Act (22 U.S.C. 2778(j)(1)) is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and 
(2) by inserting after subparagraph (B) the fol-
lowing: 
‘‘(C) EXCEPTIONS FOR AUSTRALIA.— 
‘‘(i) IN GENERAL.—Subject to clause 
(iii), the requirement to conclude a bilat-
eral agreement in accordance with sub-
paragraph (A) shall not apply with respect 
to an exemption for Australia from the li-
censing requirements of this Act for the 
export of defense articles or defense serv-
ices that is issued in furtherance of or in 
connection with the multilateral coopera-
tive partnership between Australia, the 
United Kingdom, and the United States 
announced on September 21, 2021. 
‘‘(ii) RELATING TO OTHER LICENSING 
AND APPROVAL REQUIREMENTS.—Notwith-
standing any other provision of this section 
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(other than clause (iii)), the President 
shall exempt from the licensing or other 
approval requirements of this section ex-
ports and transfers (including reexports, 
retransfers, 
temporary 
imports, 
and 
brokering activities) of defense articles or 
defense services between the United States, 
Australia, and the United Kingdom. 
‘‘(iii) JOINT
RESOLUTION
OF
DIS-
APPROVAL.— 
‘‘(I) IN
GENERAL.—No exemp-
tion described in clause (i) or (ii) may 
be made if Congress enacts a joint 
resolution disapproving of the exemp-
tion. 
‘‘(II) CONSIDERATION
IN
SEN-
ATE.—Any joint resolution under this 
clause shall be considered in the Sen-
ate in accordance with the provision 
of section 601(b) of the International 
Security Assistance and Arms Export 
Control Act of 1976. 
‘‘(III) CONSIDERATION
IN
THE 
HOUSE
OF
REPRESENTATIVES.—For 
the purpose of expediting the consid-
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eration and enactment of any joint 
resolution under this clause, a motion 
to proceed to the consideration of any 
such joint resolution after it has been 
reported by the appropriate committee 
shall be treated as highly privileged in 
the House of Representatives. 
‘‘(iv) INAPPLICABILITY
OF
CERTAIN 
CERTIFICATION REQUIREMENTS.— 
‘‘(I) IN
GENERAL.—Paragraphs 
(1) through (3) of section 3(d) shall 
not apply to transfers (including 
transfers of United States Govern-
ment sales or grants, or commercial 
exports authorized under this chapter) 
of defense articles or defense services 
to Australia. 
‘‘(II) REPORT.—The President 
shall submit to the Speaker of the 
House of Representatives, the Com-
mittee on Foreign Affairs of the 
House of Representatives, and the 
Committee on Foreign Relations of 
the Senate on a semiannual basis a 
report on all transfers that would be 
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subject to the requirements of para-
graphs (1) and (2) of section 3(d) but 
for the application of subclause (I), 
except for marketing or brokering ac-
tivities, temporary imports, or amend-
ments 
to 
existing 
marketing 
or 
brokering licenses. Any such report 
shall contain all of the information re-
quired to be contained in certifications 
issued pursuant to section 3(d)(1) for 
each transfer identified. 
‘‘(v) AUKUS
TRANSFER
REPORTING 
REQUIREMENTS.—Any United States per-
son transferring a defense item between or 
among the United States, the United 
Kingdom, and Australia that would have 
required a license under this section but 
for an exemption issued pursuant to clause 
(i) or (ii) of this subsection shall report 
that transfer to the Secretary no later than 
90 days after the transfer occurs.’’. 
(b) MODIFICATION OF EXCEPTION FOR DEFENSE 
TRADE COOPERATION TREATIES.—Subparagraph (D) of 
section 38(j)(1) of the Arms Export Control Act (22 
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U.S.C. 2778(j)(1)), as so redesignated by subsection 
(a)(1), is further amended— 
(1) by striking ‘‘(D) EXCEPTION’’ and all that 
follows through ‘‘(i) IN GENERAL.—The’’ and insert-
ing ‘‘(D) EXCEPTION
FOR
DEFENSE
TRADE
CO-
OPERATION TREATIES.—The’’; 
(2) by striking ‘‘(I) The Treaty’’ and inserting 
the following: 
‘‘(i) The Treaty’’; 
(3) by striking ‘‘(II) The Treaty’’ and inserting 
the following: 
‘‘(ii) The Treaty’’; and 
(4) by striking clause (ii) at the end. 
(c) ADVANCE CERTIFICATION.—Paragraph (3) of 
section 38(j) of the Arms Export Control Act (22 U.S.C. 
2778(j)) is amended by inserting after ‘‘export of defense 
items’’ the following: ‘‘subject to the requirements of para-
graph (1)(A)’’. 
SEC. 3. MODIFICATIONS OF CIVIL AND CRIMINAL PEN-
ALTIES UNDER SECTIONS 38 AND 39 OF THE 
ARMS EXPORT CONTROL ACT. 
Subsection (c) of section 38 of the Arms Export Con-
trol Act (22 U.S.C. 2778(c)) is amended— 
(1) by striking ‘‘$1,000,000’’ and inserting 
‘‘$5,000,000’’; and 
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(2) by striking ‘‘20 years’’ and inserting ‘‘25 
years’’. 
SEC. 4. EFFECTIVE DATE. 
The amendments made by sections 2 and 3 shall take 
effect on the date that is 180 days after the date of the 
enactment of this Act. 
Æ 
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