216 
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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217 
(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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218 
‘‘(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.—Sec-
tion 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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219 
(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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220 
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 counter-terrorism 
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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221 
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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222 
(A) The Committee on Foreign Affairs and 
the Committee on Appropriations of the House 
of Representatives. 
(B) The Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate. 
(f) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to the Secretary of State $25,000,000 
for each of the fiscal years 2010 and 2011 to con-
duct the program authorized by subsection (a). 
(2) USE
OF
FMF
FUNDS.—The Secretary of 
State may use up to $25,000,000 of funds available 
under the Foreign Military Financing program for 
each of the fiscal years 2010 and 2011 to conduct 
the program authorized under subsection (a). 
(3) AVAILABILITY AND REFERENCE.—Amounts 
made available to conduct the program authorized 
under subsection (a)— 
(A) are authorized to remain available 
until expended; and 
(B) may be referred to as the ‘‘Security 
Assistance Contingency Fund’’. 
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223 
SEC. 842. FOREIGN MILITARY SALES STOCKPILE FUND. 
(a) IN GENERAL.—Section 51(a) of the Arms Export 
Control Act (22 U.S.C. 2795(a)) is amended— 
(1) in paragraph (1), by striking ‘‘Special De-
fense Acquisition Fund’’ and inserting ‘‘Foreign 
Military Sales Stockpile Fund’’; and 
(2) in paragraph (4), by inserting ‘‘building the 
capacity of recipient countries and’’ before ‘‘nar-
cotics control purposes’’. 
(b) CONTENTS OF FUND.—Section 51(b) of the Arms 
Export Control Act (22 U.S.C. 2795(b)) is amended— 
(1) in paragraph (2), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (3), by inserting ‘‘and’’ at the 
end; and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) collections from leases made pursuant to 
section 61 of this Act,’’. 
(c) CONFORMING AMENDMENTS.—(1) The heading 
of section 51 of the Arms Export Control Act is amended 
by striking ‘‘SPECIAL DEFENSE ACQUISITION FUND’’ and 
inserting ‘‘FOREIGN MILITARY SALES STOCKPILE FUND’’. 
(2) The heading of chapter 5 of the Arms Export 
Control Act is amended by striking ‘‘SPECIAL DE-
FENSE ACQUISITION FUND’’ and inserting 
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