22 U.S.C. § 2795 — Fund

Page 1273 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2795 subject to the provisions of section 2778 of this title, those items designated by the President pursuant to subsection (a)(1) of such section; (8) ‘‘design and construction services’’ means, with respect to sales under section 2769 of this title, the design and construction of real property facilities, including necessary construction equipment and materials, engi- neering services, construction contract man- agement services relating thereto, and tech- nical advisory assistance in the operation and maintenance of real property facilities pro- vided or performed by any department or agency of the Department of Defense or by a contractor pursuant to a contract with such department or agency; (9) ‘‘significant military equipment’’ means articles— (A) for which special export controls are warranted because of the capacity of such articles for substantial military utility or capability; and (B) identified on the United States Muni- tions List; (10) ‘‘weapons of mass destruction’’ has the meaning provided by section 2302(1) of title 50; and (11) ‘‘Sales territory’’ means a country or group of countries to which a defense article or defense service is authorized to be reex- ported. (Pub. L. 90–629, ch. 4, § 47, as added Pub. L. 93–189, § 25(12), Dec. 17, 1973, 87 Stat. 731; amended Pub. L. 94–329, title II, § 215, June 30, 1976, 90 Stat. 746; Pub. L. 96–92, § 22, Oct. 29, 1979, 93 Stat. 710; Pub. L. 96–533, title I, § 105(f), Dec. 16, 1980, 94 Stat. 3135; Pub. L. 99–83, title I, § 107(b), title XII, § 1211(b)(3), Aug. 8, 1985, 99 Stat. 197, 279; Pub. L. 104–164, title I, § 144, July 21, 1996, 110 Stat. 1434; Pub. L. 107–228, div. B, title XII, § 1202(b), title XIV, § 1405(a)(4), Sept. 30, 2002, 116 Stat. 1427, 1458; Pub. L. 113–276, title II, §§ 207, 208(b)(1)(B), Dec. 18, 2014, 128 Stat. 2992, 2993.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chap- ter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables. The Atomic Energy Act of 1954, referred to in par. (3), is act Aug. 1, 1946, ch. 724, as added by act Aug. 30, 1954, ch. 1073, § 1, 68 Stat. 919, which is classified principally to chapter 23 (§ 2011 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 2011 of Title 42 and Tables. AMENDMENTS 2014—Par. (2). Pub. L. 113–276, § 208(b)(1)(B), sub- stituted ‘‘2761(a) of this title,’’ for ‘‘2761(a) of this title,,’’ in introductory provisions. Par. (3). Pub. L. 113–276, § 207(1), in introductory provi- sions, substituted ‘‘means, with respect to a sale or transfer by the United States under the authority of this chapter or any other foreign assistance or sales program of the United States—’’ for ‘‘includes—’’. Par. (4). Pub. L. 113–276, § 207(2), substituted ‘‘means, with respect to a sale or transfer by the United States under the authority of this chapter or any other for- eign assistance or sales program of the United States,’’ for ‘‘includes’’. 2002—Par. (10). Pub. L. 107–228, § 1202(b), added par. (10). Par. (11). Pub. L. 107–228, § 1405(a)(4), added par. (11). 1996—Par. (9). Pub. L. 104–164 added par. (9). 1985—Par. (2). Pub. L. 99–83, § 107(b), inserted ‘‘, except as otherwise provided in section 2761(a) of this title,’’. Par. (6). Pub. L. 99–83, § 1211(b)(3), substituted ‘‘mili- tary’’ for ‘‘combat’’. 1980—Par. (4). Pub. L. 96–533, § 105(f)(1), excluded from term ‘‘defense service’’ design and construction serv- ices under section 2769 of this title. Par. (8). Pub. L. 96–533, § 105(f)(2)–(4), added par. (8). 1979—Par. (3). Pub. L. 96–92 defined ‘‘defense article’’ to include uranium depleted in the isotope 235 which is incorporated in defense articles solely to take advan- tage of high density or pyrophoric characteristics unre- lated to radioactivity. 1976—Pars. (3) to (7). Pub. L. 94–329 added pars. (3) to (7). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of this title. SUBCHAPTER V—SPECIAL DEFENSE ACQUISITION FUND § 2795. Fund (a) Establishment; purposes; special require- ments and responsibilities; continuous or- ders for certain articles and services; articles for narcotics control purposes (1) Under the direction of the President and in consultation with the Secretary of State, the Secretary of Defense shall establish a Special Defense Acquisition Fund (hereafter in this sub- chapter referred to as the ‘‘Fund’’), to be used as a revolving fund separate from other accounts, under the control of the Department of Defense, to finance the acquisition of defense articles and defense service in anticipation of their transfer pursuant to this chapter, the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], or as other- wise authorized by law, to eligible foreign coun- tries and international organizations, and may acquire such articles and services with the funds in the Fund as he may determine. Acquisition under this subchapter of items for which the ini- tial issue quantity requirements for United States Armed Forces have not been fulfilled and are not under current procurement contract shall be emphasized when compatible with secu- rity assistance requirements for the transfer of such items. (2) Nothing in this subchapter may be con- strued to limit or impair any responsibilities conferred upon the Secretary of State or the Secretary of Defense under this chapter or the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.]. (3) The Fund may be used to keep on contin- uous order such defense articles and defense services as are assigned by the Department of Defense for integrated management by a single agency thereof for the common use of all mili- tary departments in anticipation of the transfer of similar defense articles and defense services to foreign countries and international organiza- Page 1274 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2795a tions pursuant to this chapter, the Foreign As- sistance Act of 1961 [22 U.S.C. 2151 et seq.], or other law. (4) The Fund shall also be used to acquire de- fense articles that are particularly suited for use for narcotics control purposes and are appro- priate to the needs of recipient countries, such as small boats, planes (including helicopters), and communications equipment. (b) Collections in Fund The Fund shall consist of— (1) collections from sales made under letters of offer issued pursuant to section 2761(a)(1)(A) of this title representing the actual value of defense articles not intended to be replaced in stock, (2) collections from sales representing the value of asset use charges (including con- tractor rental payments for United States Government-owned plant and production equipment) and charges for the proportionate recoupment of nonrecurring research, develop- ment, and production costs, and (3) collections from sales made under letters of offer (or transfers made under the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.]) of defense articles and defense services ac- quired under this subchapter, representing the value of such items calculated in accordance with subparagraph (B) or (C) of section 2761(a)(1) of this title or section 2762 of this title or section 644(m) of the Foreign Assist- ance Act of 1961 [22 U.S.C. 2403(m)], as appro- priate, together with such funds as may be authorized and appropriated or otherwise made available for the purposes of the Fund. (c) Amounts (1) The size of the Fund may not exceed such dollar amount as is prescribed in section 114(c) of title 10. For purposes of this limitation, the size of the Fund is the amounts in the Fund plus the value (in terms of acquisition cost) of the defense articles acquired under this subchapter which have not been transferred from the Fund in accordance with this subchapter. (2) Amounts in the Fund shall be available for obligation in any fiscal year only to such extent or in such amounts as are provided in advance in appropriation Acts. (Pub. L. 90–629, ch. 5, § 51, as added Pub. L. 97–113, title I, § 108(a), Dec. 29, 1981, 95 Stat. 1522; amend- ed Pub. L. 99–83, title I, § 121, Aug. 8, 1985, 99 Stat. 204; Pub. L. 99–139, § 1(a), Oct. 30, 1985, 99 Stat. 562; Pub. L. 99–433, title I, § 110(h)(1), Oct. 1, 1986, 100 Stat. 1004; Pub. L. 101–231, § 4, Dec. 13, 1989, 103 Stat. 1957; Pub. L. 104–164, title I, § 145(b), July 21, 1996, 110 Stat. 1434.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a)(1) to (3), was in the original ‘‘this Act’’, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables. The Foreign Assistance Act of 1961, referred to in sub- secs. (a) and (b)(3), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424, which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables. AMENDMENTS 1996—Subsec. (a)(4). Pub. L. 104–164 redesignated sub- par. (A) as entire par. (4) and struck out subpar. (B) which read as follows: ‘‘Each report pursuant to section 2795b(a) of this title shall designate the defense articles that have been acquired or are to be acquired pursuant to this paragraph and the defense articles acquired under this subchapter that were transferred for use in narcotics control purposes.’’ 1989—Subsec. (a)(4). Pub. L. 101–231 added par. (4). 1986—Subsec. (c)(1). Pub. L. 99–433 substituted ‘‘sec- tion 114(c)’’ for ‘‘section 138(g)’’. 1985—Subsec. (a)(3). Pub. L. 99–83, § 121(a), added par. (3). Subsec. (b). Pub. L. 99–139 amended subsec. (b) gen- erally, so as to read similar to how it read prior to the amendment by Pub. L. 99–83. Pub. L. 99–83 amended subsec. (b) to read as follows: ‘‘The Fund shall consist of collections from sales made under letters of offer, or transfers made under the For- eign Assistance Act of 1961, of defense articles and de- fense services acquired under this subchapter (rep- resenting the value of such items calculated in accord- ance with subparagraph (B) or (C) of section 2761(a)(1) of this title or section 2762 of this title or section 644(m) of the Foreign Assistance Act of 1961, as appro- priate), together with such funds as may be authorized and appropriated or otherwise made available for the purposes of the Fund.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENTS Pub. L. 99–139, § 1(b), Oct. 30, 1985, 99 Stat. 562, pro- vided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect as of October 1, 1985.’’ Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of this title. § 2795a. Use and transfer of items procured by Fund (a) Authorization No defense article or defense service acquired by the Secretary of Defense under this sub- chapter may be transferred to any foreign coun- try or international organization unless such transfer is authorized by this chapter, the For- eign Assistance Act of 1961 [22 U.S.C. 2151 et seq.], or other law. (b) Temporary use The President may authorize the temporary use by the United States Armed Forces of de- fense articles and defense services acquired under this subchapter prior to their transfer to a foreign country or international organization, if such is necessary to meet national defense re- quirements and the United States Armed Forces bear the costs of operation and maintenance of such articles or services while in their use and the costs of restoration or replacement upon the termination of such use. (c) Storage, maintenance and other costs Except as provided in subsection (b) of this section, the Fund may be used to pay for stor- age, maintenance, and other costs related to the preservation and preparation for transfer of de-