10 U.S.C. § 7542 — Technical data packages for large-caliber

Page 3092 TITLE 10—ARMED FORCES § 7542 § 4541; renumbered § 7541, Pub. L. 115–232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839.) Editorial Notes PRIOR PROVISIONS Prior sections 7541 to 7541b were renumbered sections 8761 to 8761b of this title, respectively. AMENDMENTS 2018—Pub. L. 115–232 renumbered section 4541 of this title as this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. § 7542. Technical data packages for large-caliber cannon: prohibition on transfers to foreign countries; exception (a) GENERAL RULE.—Funds appropriated to the Department of Defense may not be used— (1) to transfer to a foreign country a tech- nical data package for a defense item being manufactured or developed in an arsenal; or (2) to assist a foreign country in producing such a defense item. (b) EXCEPTION.—The Secretary of the Army may use funds appropriated to the Department of Defense to transfer a technical data package, or to provide assistance, described in subsection (a) if— (1) the transfer or provision of assistance is to a friendly foreign country (as determined by the Secretary of Defense in consultation with the Secretary of State); (2) the Secretary of the Army determines that such action— (A) would have a clear benefit to the pres- ervation of the production base for the pro- duction of cannon at the arsenal concerned; and (B) would not transfer technology (includ- ing production techniques) considered unique to the arsenal concerned, except as provided in subsection (e); and (3) the Secretary of Defense enters into an agreement with the country concerned de- scribed in subsection (c) or (d). (c) COPRODUCTION AGREEMENTS.—An agree- ment under this subsection shall be in the form of a Government-to-Government Memorandum of Understanding and shall include provisions that— (1) prescribe the content of the technical data package or assistance to be transferred to the foreign country participating in the agree- ment; (2) require that production by the partici- pating foreign country of the defense item to which the technical data package or assist- ance relates be shared with the arsenal con- cerned; (3) subject to such exceptions as may be ap- proved under subsection (f), prohibit transfer by the participating foreign country to a third party or country of— (A) any defense article, technical data package, technology, or assistance provided by the United States under the agreement; and (B) any defense article produced by the participating foreign country under the agreement; and (4) require the Secretary of Defense to mon- itor compliance with the agreement and the participating foreign country to report peri- odically to the Secretary of Defense con- cerning the agreement. (d) COOPERATIVE PROJECT AGREEMENTS.—An agreement under this subsection is a coopera- tive project agreement under section 27 of the Arms Export Control Act (22 U.S.C. 2767) which includes provisions that— (1) for development phases describe the tech- nical data to be transferred and for the pro- duction phase prescribe the content of the technical data package or assistance to be transferred to the foreign country partici- pating in the agreement; (2) require that at least the United States production of the defense item to which the technical data package or assistance relates be carried out by the arsenal concerned; and (3) require the Secretary of Defense to mon- itor compliance with the agreement. (e) LICENSING FEES AND ROYALTIES.—The limi- tation in subsection (b)(2)(B) shall not apply if the technology (or production technique) trans- ferred is subject to nonexclusive license and payment of any negotiated licensing fee or roy- alty that reflects the cost of development, im- plementation, and prove-out of the technology or production technique. Any negotiated license fee or royalty shall be placed in the operating fund of the arsenal concerned for the purpose of capital investment and technology development at that arsenal. (f) TRANSFERS TO THIRD PARTIES.—A transfer described in subsection (c)(3) may be made if— (1) the defense article, technical data pack- age, or technology to be transferred is a prod- uct of a cooperative research and development program or a cooperative project in which the United States and the participating foreign country were partners; or (2) the President— (A) complies with all requirements of sec- tion 3(d) of the Arms Export Control Act (22 U.S.C. 2753(d)) with respect to such transfer; and (B) certifies to Congress, before the trans- fer, that the transfer would provide a clear benefit to the production base of the United States for large-caliber cannon. (g) NOTICE AND REPORTS TO CONGRESS.—(1) The Secretary of the Army shall submit to Congress a notice of each agreement entered into under this section. (2) The Secretary shall submit to Congress a semi-annual report on the operation of this sec- tion and of agreements entered into under this section. (h) ARSENAL DEFINED.—In this section, the term ‘‘arsenal’’ means a Government-owned, Page 3093 TITLE 10—ARMED FORCES § 7543 Government-operated defense plant that manu- factures large-caliber cannon. (Added Pub. L. 99–500, § 101(c) [title IX, § 9036(b)(1)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–107, and Pub. L. 99–591, § 101(c) [title IX, § 9036(b)(1)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–107, § 4542; Pub. L. 99–661, div. A, title XII, § 1203(a)(1), Nov. 14, 1986, 100 Stat. 3968; amended Pub. L. 101–189, div. A, title VIII, § 806, Nov. 29, 1989, 103 Stat. 1489; Pub. L. 102–190, div. A, title X, §§ 1061(a)(24), 1086, Dec. 5, 1991, 105 Stat. 1473, 1483; renumbered § 7542, Pub. L. 115–232, div. A, title VIII, § 808(d), Aug. 13, 2018, 132 Stat. 1839.) Editorial Notes CODIFICATION Pub. L. 99–591 is a corrected version of Pub. L. 99–500. Pub. L. 99–500, Pub. L. 99–591, and Pub. L. 99–661 added identical sections. PRIOR PROVISIONS A prior section 7542 was renumbered section 8762 of this title. AMENDMENTS 2018—Pub. L. 115–232 renumbered section 4542 of this title as this section. 1991—Subsec. (b)(1). Pub. L. 102–190, § 1086(a), sub- stituted ‘‘friendly foreign country’’ for ‘‘member nation of the North Atlantic Treaty Organization or a country designated as a major non-NATO ally’’. Subsec. (c)(3). Pub. L. 102–190, §§ 1061(a)(24)(A), 1086(b)(1), amended par. (3) identically, substituting ‘‘subsection (f)’’ for ‘‘subsection (d)’’ in introductory provisions. Subsec. (f). Pub. L. 102–190, §§ 1061(a)(24)(B), 1086(b)(2), amended subsec. identically, substituting ‘‘subsection (c)(3)’’ for ‘‘subsection (b)(3)’’ in introductory provi- sions. 1989—Subsec. (b)(1). Pub. L. 101–189, § 806(a)(1), sub- stituted ‘‘a member nation of the North Atlantic Trea- ty Organization or a country designated as a major non-NATO ally’’ for ‘‘a friendly foreign country’’. Subsec. (b)(2)(B). Pub. L. 101–189, § 806(a)(2), inserted ‘‘, except as provided in subsection (e)’’ after ‘‘arsenal concerned’’. Subsec. (b)(3). Pub. L. 101–189, § 806(a)(3), inserted ‘‘or (d)’’ after ‘‘subsection (c)’’. Subsecs. (d), (e). Pub. L. 101–189, § 806(b)(2), added sub- secs. (d) and (e). Former subsecs. (d) and (e) redesig- nated (f) and (g), respectively. Subsec. (f). Pub. L. 101–189, § 806(b)(1), redesignated subsec. (d) as (f). Former subsec. (f) redesignated (h). Subsec. (f)(1). Pub. L. 101–189, § 806(c), inserted ‘‘or a cooperative project’’ after ‘‘cooperative research and development program’’. Subsecs. (g), (h). Pub. L. 101–189, § 806(b)(1), redesig- nated subsecs. (e) and (f) as (g) and (h), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title. EFFECTIVE DATE Pub. L. 99–500, § 101(c) [title IX, § 9036(c)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–108, Pub. L. 99–591, § 101(c) [title IX, § 9036(c)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–108, and Pub. L. 99–661, div. A, title XII, § 1203(b), Nov. 14, 1986, 100 Stat. 3969, provided that: ‘‘Section 4542 [now 7542] of title 10, United States Code, as added by subsection (a), shall apply with respect to funds appropriated for fiscal years after fiscal year 1986.’’ RULE OF CONSTRUCTION FOR DUPLICATE AUTHORIZATION AND APPROPRIATION PROVISIONS OF PUBLIC LAWS 99–500, 99–591, AND 99–661 For rule of construction for certain duplicate provi- sions of Public Laws 99–500, 99–591, and 99–661, see Pub. L. 100–26, § 6, Apr. 21, 1987, 101 Stat. 274, set out as a note under section 101 of this title. § 7543. Army industrial facilities: sales of manu- factured articles or services outside Depart- ment of Defense (a) AUTHORITY TO SELL OUTSIDE DOD.—Regu- lations under section 2208(h) of this title shall authorize a working-capital funded Army indus- trial facility (including a Department of the Army arsenal) that manufactures large caliber cannons, gun mounts, recoil mechanisms, am- munition, munitions, or components thereof to sell manufactured articles or services to a per- son outside the Department of Defense if— (1) in the case of an article, the article is sold to a United States manufacturer, assem- bler, developer, or other concern— (A) for use in developing new products; (B) for incorporation into items to be sold to, or to be used in a contract with, an agen- cy of the United States; (C) for incorporation into items to be sold to, or to be used in a contract with, or to be used for purposes of soliciting a contract with, a friendly foreign government; or (D) for use in commercial products; (2) in the case of an article, the purchaser is determined by the Department of Defense to be qualified to carry out the proposed work in- volving the article to be purchased; (3) the sale is to be made on a basis that does not interfere with performance of work by the facility for the Department of Defense or for a contractor of the Department of Defense; (4) in the case of services, the services are related to an article authorized to be sold under this section and are to be performed in the United States for the purchaser; (5) the Secretary of the Army determines that the articles or services are not available from a commercial source located in the United States; (6) the purchaser of an article or service agrees to hold harmless and indemnify the United States, except in a case of willful mis- conduct or gross negligence, from any claim for damages or injury to any person or prop- erty arising out of the article or service; (7) the article to be sold can be manufac- tured, or the service to be sold can be substan- tially performed, by the industrial facility with only incidental subcontracting; (8) it is in the public interest to manufacture such article or perform such service; and (9) the sale will not interfere with perform- ance of the military mission of the industrial facility. (b) ADDITIONAL REQUIREMENTS.—The regula- tions shall also— (1) require that the authority to sell articles or services under the regulations be exercised at the level of the commander of the major