S.Amdt. 4575

SA 4575. Mr. McCAIN submitted an amendment intended to be proposed by
him to the bill S. 2943, to authorize appropriations for fiscal year
2017 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle H of title VIII, add the following:

SEC. 899C. IMPROVED DEFENSE COOPERATION AND ACCESS TO
COMMERCIAL INNOVATION.

(a) Competitive Pricing Discretion in Foreign Military
Sales Contracting.--Section 22(d)(1) of the Arms Export
Control Act (22 U.S.C. 2762(d)(1)) is amended by striking
``shall'' and inserting ``may, at the discretion of the
Secretary of Defense,''.
(b) Commercial Item ITAR Exemption.--Any commercial item as
defined in section 103 of title 41, United States Code, that
is incorporated in a defense product shall be regulated under
the Export Administration Regulations (part 730 of title 15,
Code of Federal Regulations) and exempt from regulation under
the International Traffic in Arms Regulations (subchapter M
of chapter I of title 22, Code of Federal Regulations) unless
the Secretary of Defense or the Secretary of State makes a
written determination prior to incorporation of the
commercial item in the defense product that the International
Traffic in Arms Regulations should apply.
(c) Post-export Supply Chain Transfers Within National
Technology Industrial Base Countries.--The government of a
country that is part of the national technology industrial
base (as that term is defined in section 2500 of title 10,
United States Code) may transfer United States-origin
material within that government's supply chain without
further United States Government approval or the need to
comply with additional export licensing requirements provided
that the material remains in the ownership of such
government.
(d) Integration of Supply Chain Within National Technology
Industrial Base.--
(1) In general.--A company included on the list under
paragraph (2) with facilities in both the United States and
in a country that is part of the national technology
industrial base (as that term is defined in section 2500 of
title 10, United States Code) may transfer controlled
material between a United States facility and a facility
located in a national technology industrial base country
without the need for United States Government approval or the
need for an additional export control license. Any such
transfer must comply with United States security
classification requirements.
(2) Approved company list.--The list referred to in
paragraph (1) is a list maintained by the Secretary of
Defense and the Secretary of State of companies the
Secretaries have determined are qualified for the streamlined
transfer authority under such paragraph.
(e) Non-missile Technology Exports.--Export control
policies, procedures, and practices specific to implementing
the Missile Technology Control Regime shall not apply to the
review and approval of exports of non-missile technologies
such as unmanned autonomous vehicles, optionally piloted
vehicles, and commercial space craft.
(f) Implementation of Treaties on Defense Cooperation.--The
Secretary of State and the Secretary of Defense shall conduct
a review of the exempted technologies lists that apply to the
Treaty Between the Government of the United States of America
and the Government of Australia Concerning Defense Trade
Cooperation, done at Sydney September 5, 2007, and the Treaty
Between the Government of the United States of America and
the Government of the United Kingdom of Great Britain and
Northern Ireland Concerning Defense Trade Cooperation, done
at Washington and London June 21 and 26, 2007, with the aim
of reducing the applicable lists to the minimum compatible
with international obligations.
(g) Enhancing Program Licensing.--Not later than September
30, 2018, the Secretary of Defense and the Secretary of State
shall establish a structure for implementing a revised
program export licensing framework intended to provide
comprehensive export licensing authorization to support large
international cooperative defense programs between multiple
nations and determine what, if any, regulatory authorities
require modification.
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