KOALA Act

The KOALA Act amends the Arms Export Control Act to create special export licensing exemptions for Australia under the AUKUS partnership, increases penalties for violations, and sets a delayed effective date. Sec. 2, Exceptions for Australia: This section adds a new exception so that Australia does not need a bilateral agreement to get an export license exemption for defense articles or services related to the AUKUS partnership announced on September 21, 2021. The President must exempt exports and transfers of defense items between the U.S., Australia, and the U.K. from licensing or approval requirements. However, no exemption can take effect if Congress passes a joint resolution disapproving it. Certain certification requirements for transfers to Australia are waived, but the President must submit a semiannual report on those transfers. Any U.S. person transferring a defense item that would have needed a license but for the exemption must report the transfer to the Secretary within 90 days. The section also updates the existing exception for defense trade cooperation treaties by removing outdated language. Sec. 3, Penalties: This section increases the maximum civil or criminal penalty for violating sections 38 and 39 of the Arms Export Control Act from $1,000,000 to $5,000,000 and the maximum prison term from 20 years to 25 years. Sec. 4, Effective Date: The changes made by sections 2 and 3 take effect 180 days after the bill becomes law.