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SEC. 1086. FRAMEWORK FOR REFORMING TECHNOLOGY TRANSFER AND FOREIGN
DISCLOSURE POLICIES.
(a) Framework Development.--Not later than 180 days after the date
of the enactment of this Act, the Secretary of Defense shall produce a
framework to revise technology transfer and foreign disclosure policies
and processes of the military departments and the technology transfer
and foreign disclosure committees.
(b) Framework Elements.--The framework produced pursuant to
subsection (a) shall include the following:
(1) Guidelines for balancing the protection of technology and
classified information with the requirement to share technology and
classified defense information.
(2) A process to gather, consider, and, as appropriate,
incorporate input from Federal agencies and industry stakeholders,
in accordance with subsection (d), to inform revisions to the
technology transfer and foreign disclosure policies and processes
of the Department of Defense.
(3) Recommendations for updating the National Disclosure Policy
to accommodate the use of emerging and advanced defense such as
artificial intelligence, directed energy, microwave systems,
counter-unmanned aerial systems, missile defense, cybersecurity,
quantum technologies, hypersonics, autonomous systems, and such
other technologies as the Secretary determines appropriate.
(4) Mechanisms to enable the military departments and the
Defense Technology Security Administration to streamline the
approval process for technology transfers.
(5) Mechanisms to enhance transparency to ensure the technology
transfer policies of the Department of Defense and each of the
military departments specifically are comparable with respect to
capability and country release tiers for emerging and advanced
defense items.
(6) A plan to consolidate technology security and foreign
disclosure approvals in accordance with Executive Order 14268,
titled ``Reforming Foreign Defense Sales to Improve Speed and
Accountability'' and dated April 9, 2025.
(7) An updated Department of Defense Directive 5111.21 to
address roles, responsibilities and members of the Arms Transfer
and Technology Release Senior Steering Group of the Department of
Defense.
(8) Metrics to evaluate the effectiveness of the technology
transfer policies of the military departments and the National
Disclosure Policy to enable the transfer of defense items to allies
and partners of the United States while ensuring protection of
United States technology.
(9) An annual requirement to conduct an audit of license
applications that were denied during the prior year on the basis of
technology transfer policies of the military departments or the
Defense Technology Security Administration.
(10) A description of the charter of each technology security
and foreign disclosure committee, its participants, and its
relationship to other technology security and foreign disclosure
committees.
(c) Implementation.--Not later than one year after the date of the
submission of the framework under subsection (a), and not less
frequently than annually thereafter, the Secretary of Defense shall
direct the Secretary of each of the military departments and the heads
of the technology security and foreign disclosure committees to revise
the technology transfer policy of that department and the Under
Secretary of Defense for Policy to revise the National Disclosure
Policy, based on the elements of the framework under subsection (b).
(d) Stakeholder Engagement.--At least once every six months, the
Secretaries of the military departments, the Under Secretary of Defense
for Acquisition and Sustainment, and the Under Secretary of Defense for
Policy shall consult with such representatives from the defense
industry as the Secretaries and Under Secretary consider appropriate,
including representatives from nontraditional defense contractors (as
such term is defined by section 3014 of title 10, United States Code)
in the course of carrying out subsections (a), (b), and (c).
(e) Reporting Requirements.--
(1) Submission of framework.--Not later than 180 days after the
date of the enactment of this Act, the Secretary of Defense shall
submit to the congressional defense committees a report containing
the framework produced under subsection (a).
(2) Annual reports.--Not later than one year after the date of
the submission of the framework required under subsection (a), and
not less frequently than annually thereafter, the Secretary of
Defense shall submit to the congressional defense committees a
report that includes the following:
(A) A description of any actions taken to improve the
technology transfer policies of the military departments and
the technology security and foreign disclosure committees in
accordance with the implementation requirements under
subsection (c).
(B) A description of actions taken to implement or
incorporate industry recommendation into the technology
transfer policies of the military departments and the National
Disclosure Policy.
(C) A summary of any feedback from industry stakeholders
with respect to current applications of the technology transfer
policies of the military departments and the National
Disclosure Policy, and a description of any actions taken to
address such feedback.
(D) The results of an audit of license applications that
were denied during the preceding 12-month period on the basis
of technology transfer policies of the military departments or
the technology security and foreign disclosure committees,
including information and data that link such denials to the
policies in effect at the time of denial.
(E) Any recommendations of the Secretary for legislation
necessary to improve technology release and foreign disclosure
policies of the Department of Defense.
(3) Form.--Each report submitted under this subsection shall be
submitted in unclassified form, but may include a classified annex.