To amend the Arms Export Control Act to strengthen the requirements for congressional review of arms sales and exports under such Act, and for other purposes.

Amends the Arms Export Control Act to require the Inspector General of the Department of State to report annually to Congress respecting Department compliance with the requirements relating to improper use or transfer of defense articles or services by a foreign nation recipient.

Requires congressional approval for sales to countries (other than North Atlantic Treaty Organization (NATO) countries, Australia, Japan, or New Zealand) that have misused or improperly transferred U.S.-origin defense articles or services.

Makes annual sales estimate and justification reporting requirements by the President a quarterly requirement. Revises reporting requirements.

Revises military report-related congressional certification and report provisions respecting: (1) congressional disapproval procedures; and (2) information requirements and advance notification and consultation for certain sales and exports.

Directs the President to keep the appropriate congressional committees informed of any initiative or negotiations: (1) relating to a new or amended agreement for peaceful nuclear cooperation prior to the President's announcement of such initiative or negotiations; and (2) with state sponsors of terrorism.