[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4725 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4725

   To conduct oversight and accountability of the State Department's 
            implementation of AUKUS, and for other purposes.


_______________________________________________________________________


                    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.

    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 ``AUKUS Oversight and Accountability 
Act'' or the ``AOA Act''.

SEC. 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.

SEC. 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).

SEC. 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.
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