I 118th CONGRESS 1st Session H. R. 4725 IN THE HOUSE OF REPRESENTATIVES July 19, 2023 Mr. McCaul (for himself, Mrs. Kim of California , Mr. Kean of New Jersey , and Mr. Huizenga ) introduced the following bill; which was referred to the Committee on Foreign Affairs A BILL To conduct oversight and accountability of the State Department’s implementation of AUKUS, and for other purposes.

1. Short title This Act may be cited as the AUKUS Oversight and Accountability Act or the AOA Act . 2. Establishment of Senior Advisor (a) Senior advisor for AUKUS (1) In general The Secretary of State shall appoint, from among the leadership of the Department above the rank of Under Secretary, a senior advisor at the Department of State (in this section referred to as the Senior Advisor ), who shall concurrently oversee and coordinate the implementation of the AUKUS partnership announced September 15, 2021. The Senior Advisor shall report directly to the Secretary of State. (2) Use of existing authorization No additional amounts are authorized to be appropriated to establish the senior advisor described in subsection (a). (3) Duties It shall be the duty of the Senior Advisor to— (A) coordinate efforts to implement the AUKUS agreement across relevant bureaus, directorates, and offices of the Department of State; (B) represent the Department of State on matters relating to AUKUS in the interagency process; (C) engage with relevant governing bodies in the United Kingdom and Australia; and (D) issue guidance, including proposed regulations, to reduce barriers to defense collaboration, innovation, trade, and production with the Governments and industry partners of the United States, United Kingdom, and Australia. (b) AUKUS task force (1) Establishment The Secretary of State shall establish a Task Force on AUKUS Governance (in this section referred to as the Task Force ), led by the Senior Advisor appointed pursuant to subsection (a). (2) Use of existing authorization No additional amounts are authorized to be appropriated to establish the Task Force described in paragraph (1). (3) Personnel to support the senior advisor The Secretary of State shall ensure that the Senior Advisor is adequately staffed through the assignment of existing Department employees and appointment of officials representing relevant bureaus. (4) Duties It shall be the duty of the Task Force to— (A) meet at least once every 60 days to coordinate on issues pertaining to the successful implementation of the AUKUS agreement; (B) coordinate an ongoing working group among the interagency on the effectiveness of arms export regulations and laws relevant to implementation of the AUKUS agreement that may be joined by appropriate officials of the United Kingdom and Australia; (C) create and maintain a unified list of all defense-related transactions that have taken place under any agreement between the United States, Australia, and the United Kingdom; (D) create and maintain a list of vendors that commonly participate in defense-related trade between United States, Australia, and the United Kingdom; (E) coordinate the design and implementation of an established pathway for United States defense partners and treaty allies to obtain exemptions from the licensing and other approval requirements of section 38 of the Arms Export Control Act of 1976 ( 22 U.S.C. 2778 ) for exports and transfers of defense articles and defense services; (F) create a framework for gathering, maintaining, and exchanging information pertaining to companies, individuals, or entities engaged in compromising technology security in contravention to the AUKUS agreement; and (G) establish an AUKUS industry forum for industry stakeholders, including non-traditional defense contractors (as such term is defined in section 3014 of title 10, United States Code), that will be open for the participation of foreign industry involved in the AUKUS partnership. (5) Reports required (A) Quarterly reporting The Senior Advisor shall submit to the appropriate congressional committees a report every 90 days that includes— (i) a detailed description of the work of the Senior Advisor and any meetings of the Task Force that have taken place since the preceding report was issued, including meetings conducted with AUKUS partners, industry representatives, or the interagency; (ii) a detailed description of any issues that representatives of the United Kingdom or Australia have brought to the attention of the United States that threaten the stated goals of the AUKUS agreement and any efforts within the Department to resolve these issues; (iii) any delays and the reasons for these delays to defense-related transactions between the United States, the United Kingdom, and Australia, reflecting government and industry input; (iv) detailed description of Department investigations into violations under section 38 of the Arms Export Controls Act ( 22 U.S.C. 2778 ) or related provisions that involve AUKUS partners or entities in the United States, the United Kingdom, and Australia; and (v) any violations of the Arms Export Control Act ( 22 U.S.C. 2751 et seq. ) or related regulations committed by United States persons with respect to transactions involving the United Kingdom or Australia. (B) Annual reporting The Senior Advisor shall annually submit to the appropriate congressional committees a report listing the transactions that have taken place involving the AUKUS partners and including— (i) a description of programs authorized under the AUKUS agreement; (ii) an identification of the AUKUS entities involved; (iii) a list of all exports and transfers that would be subject to the requirements of paragraph (1), (2), or (3) of section 3(d) of the Arms Export Control Act ( 22 U.S.C. 2753(d) ), except for marketing or brokering activities, temporary imports, commodity jurisdiction determinations, or amendments to existing marketing or brokering licenses; and (iv) a valuation of the reduction in Department licensing review times eliminated, including review times reduced across the interagency. (6) Resources for the task force (A) Registration and other fees Section 45 of the State Department Basic Authorities Act of 1956 ( 22 U.S.C. 2717 ) is amended— (i) in the matter preceding paragraph (1)— (I) in the first sentence, by striking 100 percent of the registration fees collected by the Office of Defense Trade Controls of the Department of State and inserting 100 percent of the defense trade control registration fees collected by the Department of State ; and (II) in the second sentence, by inserting management, licensing, compliance, or policy activities in the defense trade controls function, including after incurred for ; (ii) in paragraph (1), by striking contract personnel to assist in ; (iii) in paragraph (2), by striking ; and and inserting a semicolon; (iv) in paragraph (3), by striking the period at the end and inserting a semicolon; and (v) by adding at the end the following new paragraphs: (4) the facilitation of defense trade policy development, implementation, and cooperation, including implementation of the trilateral security partnership between the United States, the United Kingdom, and Australia, review of commodity jurisdiction determinations, outreach to United States industry and foreign parties, and analysis of scientific and technological developments as they relate to the exercise of defense trade control authorities; and (5) contract personnel to assist in such activities. . (B) Use of Foreign Military Sales administrative funds Notwithstanding paragraph (3) of section 43(b) of the Arms Export Control Act ( 22 U.S.C. 2792(b)(3) ), with respect to sales under such Act for which a loan, grant, or guaranty is not provided by the United States, the President may authorize charges for administrative services calculated under section 21(e)(1)(A) of such Act ( 22 U.S.C. 2761(e)(1)(A) ) to include resources necessary to support the sustainment of the Task Force. (c) Sunset The position of the Senior Advisor and the Task Force shall terminate on the date that is 7years after the date of the enactment of this Act. (d) Renewal The Secretary of State may renew the position of the Senior Advisor for an additional period of 4 years, following notification to the appropriate congressional committees of the renewal. 3. Modifications to Arms Export Control Act and other authorities (a) Expansion of authorities To control arms exports and imports Section 38 of the Arms Export Control Act of 1976 ( 22 U.S.C. 2778 ) is amended by adding at the end the following new subsection: (l) Exemption from licensing and approval requirements (1) In general Subject to paragraph (2) and notwithstanding any other provision of this section, the President, acting through the Secretary of State, may exempt from the licensing or other approval requirements of this section exports and transfers (including reexports, retransfers, temporary imports, and brokering activities) of defense items with respect to one or more countries. (2) Required standards of export controls The Secretary of State may only exercise the authority under paragraph (1) after the Secretary submits to Congress a certification that the applicable country has implemented standards for a systems of export controls— (A) that satisfies the elements of subsection (j)(2)(A) with respect to defense items; and (B) that are at least comparable to those administered by the United States with respect to the provision of military training. (3) Additional exemption from certain certification requirements Paragraphs (1) through (3) of section 3(d) shall not apply to transfers (including transfers of United States Government sales or grants, or commercial exports authorized under this Act) with respect to which the requirements of this section are exempted pursuant to paragraph (1). (4) Reporting required for exempted transfers The Secretary of State shall require any person transferring a defense item between or among the United States and another country that would be subject to the licensing requirements of paragraphs (1) through (3) of section 3(d) but for the application of paragraph (3) of this subsection to report that transfer to the Secretary not later than 90 days after the transfer occurs. . (b) United states munitions list periodic review (1) In general The Secretary of State, acting through authority delegated by the President to carry out periodic reviews of items on the United States Munitions List under section 38(f) of the Arms Export Control Act ( 22 U.S.C. 2778(f) ) and in coordination with the Secretary of Defense, the Secretary of Energy, the Secretary of Commerce, and the Director of the Office of Management and Budget, shall carry out such reviews not less frequently than every 3 years. (2) Scope The periodic reviews described in paragraph (1) shall focus on matters including— (A) interagency resources to address current threats faced by the United States; (B) the evolving technological and economic landscape; (C) the widespread availability of certain technologies and items on the United States Munitions List; and (D) risks of misuse of United States-origin defense articles. (3) Consultation The Department of State may consult with the Defense Trade Advisory Group and other interested parties, including nontraditional defense contractors, in conducting the periodic review described in paragraph (1). 4. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Foreign Affairs, Committee on the Armed Services, and Committee on Appropriations of the House of Representatives; and (B) the Committee on Foreign Relations, Committee on the Armed Services, and Committee on Appropriations of the Senate. (2) AUKUS agreement The term AUKUS agreement means the trilateral security partnership between the United States, the United Kingdom, and Australia that was announced on September 15, 2021.