A bill to provide for the transfer of naval vessels to certain foreign recipients, and for other purposes.

SECTION 1. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
    In this Act, the term ``appropriate congressional committees'' 
means--
        (1) the Committee on Foreign Relations of the Senate; and
        (2) the Committee on Foreign Affairs of the House of 
    Representatives.

        TITLE I--TRANSFER OF EXCESS UNITED STATES NAVAL VESSELS

    SEC. 101. SHORT TITLE.
    This title may be cited as the ``Naval Vessel Transfer Act of 
2013''.
    SEC. 102. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN RECIPIENTS.
    (a) Transfers by Grant to Mexico.--The President is authorized to 
transfer to the Government of Mexico the OLIVER HAZARD PERRY class 
guided missile frigates USS CURTS (FFG-38) and USS MCCLUSKY (FFG-41) on 
a grant basis under section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j).
    (b) Transfer by Sale to the Taipei Economic and Cultural 
Representative Office in the United States.--The President is 
authorized to transfer the OLIVER HAZARD PERRY class guided missile 
frigates USS TAYLOR (FFG-50), USS GARY (FFG-51), USS CARR (FFG-52), and 
USS ELROD (FFG-55) to the Taipei Economic and Cultural Representative 
Office in the United States (which is the Taiwan instrumentality 
designated pursuant to section 10(a) of the Taiwan Relations Act (22 
U.S.C. 3309(a))) on a sale basis under section 21 of the Arms Export 
Control Act (22 U.S.C. 2761).
    (c) Alternative Transfer Authority.--Notwithstanding the authority 
provided in subsections (a) and (b) and to transfer specific vessels to 
specific countries, the President is authorized to transfer any vessel 
named in this title to any country named in this section, subject to 
the same conditions that would apply for such country under this 
section, such that the total number of vessels transferred to such 
country does not exceed the total number of vessels authorized for 
transfer to such country by this section.
    (d) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis pursuant to authority provided by subsection (a) shall 
not be counted against the aggregate value of excess defense articles 
transferred in any fiscal year under section 516 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j).
    (e) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient notwithstanding section 516(e) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j(e)).
    (f) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the President shall require, as a condition 
of the transfer of a vessel under this section, that the recipient to 
which the vessel is transferred have such repair or refurbishment of 
the vessel as is needed, before the vessel joins the naval forces of 
that recipient, performed at a shipyard located in the United States.
    (g) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the 3-year period 
beginning on the date of the enactment of this Act.

                    TITLE II--ADDITIONAL PROVISIONS

    SEC. 201. ENHANCED CONGRESSIONAL OVERSIGHT OF ARMS SALES, INCLUDING 
      TO THE MIDDLE EAST.
    Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is 
amended by adding at the end the following new subsection:
    ``(i) Prior Notification of Shipment of Arms.--At least 30 days 
prior to a shipment of defense articles subject to the requirements of 
subsection (b) at the joint request of the Chairman and Ranking Member 
of the Committee on Foreign Relations of the Senate or the Committee on 
Foreign Affairs of the House of Representatives, the President shall 
provide notification of such pending shipment, in unclassified form, 
with a classified annex as necessary, to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives.''.
    SEC. 202. INCREASE IN ANNUAL LIMITATION ON TRANSFER OF EXCESS 
      DEFENSE ARTICLES.
    Section 516(g)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j(g)(1)) is amended by striking ``$425,000,000'' and inserting 
``$500,000,000''.
    SEC. 203. INTEGRATED AIR AND MISSILE DEFENSE PROGRAMS AT TRAINING 
      LOCATIONS IN SOUTHWEST ASIA.
    Section 544(c) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2347c(c)) is amended by adding at the end the following new paragraph:
    ``(4) The President shall report to the appropriate congressional 
committees (as defined in section 656(e)) annually on the activities 
undertaken in the programs authorized under this subsection.''.
    SEC. 204. LICENSING OF CERTAIN COMMERCE-CONTROLLED ITEMS.
    Section 38 of the Arms Export Control Act (22 U.S.C. 2778) is 
amended by adding at the end the following new subsection:
    ``(k) Licensing of Certain Commerce-Controlled Items.--
        ``(1) In general.--A license or other approval from the 
    Department of State granted in accordance with this section may 
    also authorize the export of items subject to the Export 
    Administration Regulations if such items are to be used in or with 
    defense articles controlled on the United States Munitions List.
        ``(2) Other requirements.--The following requirements shall 
    apply with respect to a license or other approval to authorize the 
    export of items subject to the Export Administration Regulations 
    under paragraph (1):
            ``(A) Separate approval from the Department of Commerce 
        shall not be required for such items if such items are approved 
        for export under a Department of State license or other 
        approval.
            ``(B) Such items subject to the Export Administration 
        Regulations that are exported pursuant to a Department of State 
        license or other approval would remain under the jurisdiction 
        of the Department of Commerce with respect to any subsequent 
        transactions.
            ``(C) The inclusion of the term `subject to the EAR' or any 
        similar term on a Department of State license or approval shall 
        not affect the jurisdiction with respect to such items.
        ``(3) Definition.--In this subsection, the term `Export 
    Administration Regulations' means--
            ``(A) the Export Administration Regulations as maintained 
        and amended under the authority of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.); or
            ``(B) any successor regulations.''.
    SEC. 205. AMENDMENTS RELATING TO REMOVAL OF MAJOR DEFENSE EQUIPMENT 
      FROM UNITED STATES MUNITIONS LIST.
    (a) Requirements for Removal of Major Defense Equipment From United 
States Munitions List.--Section 38(f) of the Arms Export Control Act 
(22 U.S.C. 2778(f)) is amended by adding at the end the following:
        ``(5)(A) Except as provided in subparagraph (B), the President 
    shall take such actions as may be necessary to require that, at the 
    time of export or reexport of any major defense equipment listed on 
    the 600 series of the Commerce Control List contained in Supplement 
    No. 1 to part 774 of subtitle B of title 15, Code of Federal 
    Regulations, the major defense equipment will not be subsequently 
    modified so as to transform such major defense equipment into a 
    defense article.
        ``(B) The President may authorize the transformation of any 
    major defense equipment described in subparagraph (A) into a 
    defense article if the President--
            ``(i) determines that such transformation is appropriate 
        and in the national interests of the United States; and
            ``(ii) provides notice of such transformation to the 
        chairman of the Committee on Foreign Affairs of the House of 
        Representatives and the chairman of the Committee on Foreign 
        Relations of the Senate consistent with the notification 
        requirements of section 36(b)(5)(A) of this Act.
        ``(C) In this paragraph, the term `defense article' means an 
    item designated by the President pursuant to subsection (a)(1).''.
    (b) Notification and Reporting Requirements for Major Defense 
Equipment Removed From United States Munitions List.--Section 38(f) of 
the Arms Export Control Act (22 U.S.C. 2778(f)), as amended by this 
section, is further amended by adding at the end the following:
        ``(6) The President shall ensure that any major defense 
    equipment that is listed on the 600 series of the Commerce Control 
    List contained in Supplement No. 1 to part 774 of subtitle B of 
    title 15, Code of Federal Regulations, shall continue to be subject 
    to the notification and reporting requirements of the following 
    provisions of law:
            ``(A) Section 516(f) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2321j(f)).
            ``(B) Section 655 of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2415).
            ``(C) Section 3(d)(3)(A) of this Act.
            ``(D) Section 25 of this Act.
            ``(E) Section 36(b), (c), and (d) of this Act.''.
    SEC. 206. AMENDMENT TO DEFINITION OF ``SECURITY ASSISTANCE'' UNDER 
      THE FOREIGN ASSISTANCE ACT OF 1961.
    Section 502B(d) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2304(d)) is amended--
        (1) in paragraph (1), by striking ``and'' at the end; and
        (2) by amending paragraph (2)(C) to read as follows:
            ``(C) any license in effect with respect to the export to 
        or for the armed forces, police, intelligence, or other 
        internal security forces of a foreign country of--
                ``(i) defense articles or defense services under 
            section 38 of the Armed Export Control Act (22 U.S.C. 
            2778); or
                ``(ii) items listed under the 600 series of the 
            Commerce Control List contained in Supplement No. 1 to part 
            774 of subtitle B of title 15, Code of Federal 
            Regulations;''.
    SEC. 207. AMENDMENTS TO DEFINITIONS OF ``DEFENSE ARTICLE'' AND 
      ``DEFENSE SERVICE'' UNDER THE ARMS EXPORT CONTROL ACT.
    Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is 
amended--
        (1) in the matter preceding subparagraph (A) of paragraph (3), 
    by striking ``includes'' and inserting ``means, with respect to a 
    sale or transfer by the United States under the authority of this 
    Act or any other foreign assistance or sales program of the United 
    States''; and
        (2) in paragraph (4), by striking ``includes'' and inserting 
    ``means, with respect to a sale or transfer by the United States 
    under the authority of this Act or any other foreign assistance or 
    sales program of the United States,''.
    SEC. 208. TECHNICAL AMENDMENTS.
    (a) In General.--The Arms Export Control Act (22 U.S.C. 2751 et 
seq.) is amended--
        (1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6, 
    21(g), 36(a), 36(b)(1), 36(b)(5)(C), 36(c)(1), 36(f), 38(f)(1), 
    40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2), by striking ``the 
    Speaker of the House of Representatives and'' each place it appears 
    and inserting ``the Speaker of the House of Representatives, the 
    Committee on Foreign Affairs of the House of Representatives, 
    and'';
        (2) in section 21(i)(1) by inserting after ``the Speaker of the 
    House of Representatives'' the following ``, the Committees on 
    Foreign Affairs and Armed Services of the House of 
    Representatives,'';
        (3) in sections 25(e), 38(f)(2), 38(j)(3), and 38(j)(4)(B), by 
    striking ``International Relations'' each place it appears and 
    inserting ``Foreign Affairs'';
        (4) in sections 27(f) and 62(a), by inserting after ``the 
    Speaker of the House of Representatives,'' each place it appears 
    the following: ``the Committee on Foreign Affairs of the House of 
    Representatives,''; and
        (5) in section 73(e)(2), by striking ``the Committee on 
    National Security and the Committee on International Relations of 
    the House of Representatives'' and inserting ``the Committee on 
    Armed Services and the Committee on Foreign Affairs of the House of 
    Representatives''.
    (b) Other Technical Amendments.--
        (1) Arms export control act.--The Arms Export Control Act (22 
    U.S.C. 2751 et seq.), as amended by subsection (a), is further 
    amended--
            (A) in section 38--
                (i) in subsection (b)(1), by redesignating the second 
            subparagraph (B) (as added by section 1255(b) of the 
            Foreign Relations Authorization Act, Fiscal Years 1988 and 
            1989 (Public Law 100-204; 101 Stat. 1431)) as subparagraph 
            (C);
                (ii) in subsection (g)(1)(A)--

                    (I) in clause (xi), by striking ``; or'' and 
                inserting ``, or''; and
                    (II) in clause (xii)--

                        (aa) by striking ``section'' and inserting 
                    ``sections''; and
                        (bb) by striking ``(18 U.S.C. 175b)'' and 
                    inserting ``(18 U.S.C. 175c)''; and
                (iii) in subsection (j)(2), in the matter preceding 
            subparagraph (A), by inserting ``in'' after ``to''; and
            (B) in section 47(2), in the matter preceding subparagraph 
        (A), by striking ``sec. 21(a),,'' and inserting ``section 
        21(a),''.
        (2) Foreign assistance act of 1961.--Section 502B of the 
    Foreign Assistance Act of 1961 (22 U.S.C. 2304) is amended--
            (A) in subsection (b), by striking ``Wherever applicable, a 
        description'' and inserting ``Wherever applicable, such report 
        shall include a description''; and
            (B) in subsection (d)(2)(B), by striking ``credits'' and 
        inserting ``credits)''.
    SEC. 209. APPLICATION OF CERTAIN PROVISIONS OF EXPORT 
      ADMINISTRATION ACT OF 1979.
    (a) Protection of Information.--Section 12(c) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2411(c)) has been in effect 
from August 20, 2001, and continues in effect on and after the date of 
the enactment of this Act, pursuant to the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.) and notwithstanding 
section 20 of the Export Administration Act of 1979 (50 U.S.C. App. 
2419). Section 12(c)(1) of the Export Administration Act of 1979 is a 
statute covered by section 552(b)(3) of title 5, United States Code.
    (b) Termination Date.--Subsection (a) terminates at the end of the 
4-year period beginning on the date of the enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Summary: (This measure has not been amended since it was passed by the Senate on December 4, 2014.  Title I: Transfer of Excess United States Naval Vessels - Naval Vessel Transfer Act of 2013 - (Sec. 102) Authorizes the President to transfer on a grant basis to Mexico, the OLIVER HAZARD PERRY class guided missile frigates CURTS and MCCLUSKY.  Authorizes the President to transfer on a sale basis the OLIVER HAZARD PERRY class guided missile frigates TAYLOR, GARY, CARR, and ELROD to the Taipei Economic and Cultural Representative Office of the United States (which is the Taiwan instrumentality designated pursuant to the Taiwan Relations Act). Authorizes the President to transfer any vessel named in this Act to any country named in this Act such that the total number of vessels transferred to such country does not exceed the total number of vessels authorized for transfer to such country by this Act.  States that:   the value of such vessels transferred on a grant basis shall not be counted against the aggregate value of excess defense articles transferred to countries in any fiscal year under the Foreign Assistance Act of 1961;  transfer costs shall be charged to the recipient; and  to the maximum extent practicable, the country to which a vessel is transferred shall have necessary vessel repair and refurbishment carried out at U.S. shipyards.   Terminates transfer authority three years after enactment of this Act.  Title II: Additional Provisions - (Sec. 201) Amends the Arms Export Control Act to direct the President to notify Congress at least 30 days prior to a shipment of certain defense articles. (Sec. 202) Amends the Foreign Assistance Act to increase annual funds limits for transfers of excess defense articles.  (Sec. 203) Directs the President to report to Congress annually regarding cooperative arrangements providing for the participation of foreign and U.S. military and civilian defense personnel in post-undergraduate flying training and tactical leadership programs and integrated air and missile defense programs at training locations in Southwest Asia. (Sec. 204) Declares that:   a defense-related license or other approval from the Department of State may also authorize the export of items subject to the Export Administration Regulations if such items are to be used in or with defense articles controlled on the United States Munitions List; and  separate Department of Commerce approval shall not be required, but such items shall remain under Department of Commerce jurisdiction with respect to any subsequent transactions.   (Sec. 205) Directs the President to require that at the time of export or reexport of certain major defense equipment such equipment will not be subsequently modified so as to transform it into a defense article.  Authorizes the President to permit the transformation of any major defense equipment into a defense article if in U.S. national interests, and with congressional notification.  (Sec. 206) Amends the Foreign Assistance Act of 1961 to revise the definition of &quot;security assistance.&quot;  (Sec. 207) Amends the Arms Export Control Act to revise the definitions of &quot;defense article&quot; and &quot;defense service.&quot;  (Sec. 208) Makes specified technical amendments to the Arms Export Control Act and the Foreign Assistance Act of 1961.  (Sec. 209) States that certain confidentiality of information requirements of the Export Administration Act of 1979 have been in effect from August 20, 2001, and shall remain in effect for four years after enactment of this Act.