[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4716 Introduced in House (IH)]

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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 
   Jersey) introduced the following bill; which was referred to the 
   Committee on Foreign Affairs, and in addition to the Committee on 
 Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee 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 Representatives 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''.

SEC. 2. EXCEPTIONS FOR AUSTRALIA RELATING TO LICENSING OF DEFENSE 
              ARTICLES AND DEFENSE SERVICES FOR EXPORT UNDER THE ARMS 
              EXPORT CONTROL ACT.

    (a) In General.--Section 38(j)(1) of the Arms Export Control Act 
(22 U.S.C. 2778(j)(1)) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) Exceptions for australia.--
                            ``(i) In general.--Subject to clause (iii), 
                        the requirement to conclude a bilateral 
                        agreement in accordance with subparagraph (A) 
                        shall not apply with respect to an exemption 
                        for Australia from the licensing requirements 
                        of this Act for the export of defense articles 
                        or defense services that is issued in 
                        furtherance of or in connection with the 
                        multilateral cooperative partnership between 
                        Australia, the United Kingdom, and the United 
                        States announced on September 21, 2021.
                            ``(ii) Relating to other licensing and 
                        approval requirements.--Notwithstanding any 
                        other provision of this section (other than 
                        clause (iii)), the President shall exempt from 
                        the licensing or other approval requirements of 
                        this section exports 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 disapproval.--
                                    ``(I) In general.--No exemption 
                                described in clause (i) or (ii) may be 
                                made if Congress enacts a joint 
                                resolution disapproving of the 
                                exemption.
                                    ``(II) Consideration in senate.--
                                Any joint resolution under this clause 
                                shall be considered in the Senate 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 consideration 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 Government 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 Committee 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 subject to the 
                                requirements of paragraphs (1) and (2) 
                                of section 3(d) but for the application 
                                of subclause (I), except for marketing 
                                or brokering activities, temporary 
                                imports, or amendments to existing 
                                marketing or brokering licenses. Any 
                                such report shall contain all of the 
                                information required to be contained in 
                                certifications issued pursuant to 
                                section 3(d)(1) for each transfer 
                                identified.
                            ``(v) Aukus transfer reporting 
                        requirements.--Any United States person 
                        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 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 inserting ``(D) Exception 
        for defense trade cooperation 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 paragraph (1)(A)''.

SEC. 3. MODIFICATIONS OF CIVIL AND CRIMINAL PENALTIES UNDER SECTIONS 38 
              AND 39 OF THE ARMS EXPORT CONTROL ACT.

    Subsection (c) of section 38 of the Arms Export Control Act (22 
U.S.C. 2778(c)) is amended--
            (1) by striking ``$1,000,000'' and inserting 
        ``$5,000,000''; and
            (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.
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