Amends the State Department Basic Authorities Act of 1956 to increase the authorized uses of defense trade controls registration fees.
(Sec. 1013A) Amends the Arms Export Control Act to increase the monetary thresholds requiring congressional notification of proposed foreign military sales and commercial arms sales.
(Sec. 1013B) Authorizes, with prior Department approval, the retransfer to the United States of "significant military equipment" defense articles.
(Sec. 1013C) Requires the annual justification for proposed arms sales to include information on the extent to which such transfers advance U.S. regional security cooperation.
(Sec. 1013D) Revises specified penalty provisions under the Arms Export Control Act. (Sec. 1013E) Extends the prohibition on transactions with a state sponsor of terrorism to certain nationals of such country.
(Sec. 1013F) Exempts from the prohibition on transactions with countries supporting acts of international terrorism federal law enforcement activities against persons suspected of supporting such countries.
(Sec. 1013G) Directs the President to report annually to Congress on the foreign military financing program.
(Sec. 1013I) Expresses the sense of Congress that the President should increase U.S. diplomatic efforts to strengthen national and international arms export controls.
(Sec. 1013J) Directs the Inspector General of the Department to annually review for each of FY 2012-FY2016 the process of reviewing and reporting to Congress any misuse of U.S.-provided defense items.
(Sec. 1013K) Subjects a person who willfully exports to a Western Hemisphere country any small arm or light weapon without a license to a fine of up to $3 million and imprisonment for up to 20 years, or both.
(Sec. 1013L) Amends the State Department Basic Authorities Act of 1956 to authorize the Secretary to pay rewards to individuals who provide information leading to an arrest or conviction for exporting small arms or light weapons to Mexico.