A bill to authorize the use of Cooperative Threat Reduction funds for projects and activities to address proliferation threats outside the states of the former Soviet Union, and for other purposes.

SECTION 1. AUTHORIZATION OF USE OF COOPERATIVE THREAT REDUCTION FUNDS 
              FOR PROJECTS AND ACTIVITIES OUTSIDE THE FORMER SOVIET 
              UNION.

    (a) Purpose.--The purpose of this section is to authorize the use 
of Cooperative Threat Reduction funds for proliferation threat 
reduction projects and activities outside the former Soviet Union in 
order to resolve critical emerging proliferation threats and to take 
advantage of opportunities to achieve long-standing United States 
nonproliferation goals.
    (b) Cooperative Threat Reduction Programs and Funds.--For purposes 
of this section:
            (1) Cooperative Threat Reduction programs are--
                    (A) the programs specified in section 1501(b) of 
                the National Defense Authorization Act for Fiscal Year 
                1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 
                2362 note); and
                    (B) any other similar programs, as designated by 
                the Secretary, to address critical emerging 
                proliferation threats in the states of the former 
                Soviet Union that jeopardize United States national 
                security.
            (2) Cooperative Threat Reduction funds, for a fiscal year, 
        are the funds authorized to be appropriated for Cooperative 
        Threat Reduction programs for that fiscal year.
    (c) Authorization of Use of CTR Funds for Threat Reduction 
Activities Outside the Former Soviet Union.--(1) Notwithstanding any 
other provision of law and subject to the succeeding provisions of this 
section, the Secretary of Defense may obligate and expend Cooperative 
Threat Reduction funds for a fiscal year before fiscal year 2003 that 
remain available for obligation as of the date of the enactment of this 
Act for proliferation threat reduction projects and activities outside 
the states of the former Soviet Union if the Secretary determines that 
such projects and activities will--
            (A) assist the United States in the resolution of critical 
        emerging proliferation threats; or
            (B) permit the United States to take advantage of 
        opportunities to achieve long-standing United States 
        nonproliferation goals.
    (2) The amount that may be obligated under paragraph (1) for 
projects and activities described in that paragraph may not exceed 
$50,000,000.
    (d) Authorized Uses of Funds.--The authority under subsection (c) 
to obligate and expend Cooperative Threat Reduction funds for a project 
or activity includes authority to provide equipment, goods, and 
services for the project or activity, but does not include authority to 
provide cash directly to the project or activity.
    (e) Source and Replacement of Funds Used.--(1) The Secretary shall, 
to the maximum extent practicable, ensure that funds for projects and 
activities under subsection (c) are derived from funds that would 
otherwise be obligated for a range of Cooperative Threat Reduction 
programs, so that no particular Cooperative Threat Reduction program is 
the exclusive or predominate source of funds for such projects and 
activities.
    (2) If the Secretary obligates Cooperative Threat Reduction funds 
under subsection (c) in a fiscal year, the first budget of the 
President that is submitted under section 1105(a) of title 31, United 
States Code, after such fiscal year shall set forth, in addition to any 
other amounts requested for Cooperative Threat Reduction programs in 
the fiscal year covered by such budget, a request for Cooperative 
Threat Reduction funds in the fiscal year covered by such budget in an 
amount equal to the amount so obligated. The request shall also set 
forth the Cooperative Threat Reduction program or programs for which 
such funds would otherwise have been obligated, but for obligation 
under subsection (c).
    (3) Amounts authorized to be appropriated pursuant to a request 
under paragraph (2) shall be available only for the Cooperative Threat 
Reduction program or programs set forth in the request under the second 
sentence of that paragraph.
    (f) Limitation on Obligation of Funds.--Except as provided in 
subsection (g), the Secretary may not obligate and expend Cooperative 
Threat Reduction funds for a project or activity under subsection (c) 
until 30 days after the date on which the Secretary submits to Congress 
a report on the purpose for which the funds will be obligated and 
expended, and the amount of the funds to be obligated and expended.
    (g) Exception.--(1) The Secretary may obligate and expend 
Cooperative Threat Reduction funds for a project or activity under 
subsection (c) without regard to subsection (f) if the Secretary 
determines that a critical emerging proliferation threat warrants 
immediate obligation and expenditure of such funds.
    (2) Not later than 72 hours after first obligating funds for a 
project or activity under paragraph (1), the Secretary shall submit to 
the appropriate congressional officials a report containing a detailed 
justification for the obligation of funds. The report on a project or 
activity shall include the following:
            (A) A description of the critical emerging proliferation 
        threat to be addressed, or the long-standing United States 
        nonproliferation goal to be achieved, by the project or 
        activity.
            (B) A description of the agreement, if any, under which the 
        funds will be used, including whether or not the agreement 
        provides that the funds will not be used for purposes contrary 
        to the national security interests of the United States.
            (C) A description of the contracting process, if any, that 
        will be used in the implementation of the project or activity.
            (D) An analysis of the effect of the obligation of funds 
        for the project or activity on ongoing Cooperative Threat 
        Reduction programs.
            (E) An analysis of the need for additional or follow-up 
        threat reduction assistance, including whether or not the need 
        for such assistance justifies the establishment of a new 
        cooperative threat reduction program or programs to account for 
        such assistance.
            (F) A description of the mechanisms to be used by the 
        Secretary to assure that proper audits and examinations of the 
        project or activity are carried out.
    (3) In this subsection, the term ``appropriate congressional 
officials'' means--
            (A) the Speaker of the House of Representatives;
            (B) the President pro tempore of the Senate;
            (C) the Chairmen and Ranking Members of the Committees on 
        Armed Services of the Senate and House of Representatives;
            (D) the Chairmen and Ranking Members of the Committees on 
        Appropriations of the Senate and House of Representatives;
            (E) the Chairman and Ranking Member of the Committee on 
        Foreign Relations of the Senate;
            (F) the Chairman and Ranking Member of the Committee on 
        International Relations of the House of Representatives;
            (G) the Chairman and Vice Chairman of the Select Committee 
        on Intelligence of the Senate; and
            (H) the Chairman and Vice Chairman of the Permanent Select 
        Committee on Intelligence of the House of Representatives.
    (h) Report on Establishment of New Cooperative Threat Reduction 
Programs.--(1) If the Secretary employs the authority in subsection (c) 
in two consecutive fiscal years, the Secretary shall submit to Congress 
a report on the advisability of establishing one or more new 
cooperative threat reduction programs to account for projects and 
activities funded using such authority.
    (2) The report required by paragraph (1) shall be submitted along 
with the budget justification materials in support of the Department of 
Defense budget (as submitted with the budget of the President under 
section 1105(a) of title 31, United States Code) in the first budget 
submitted after the end of the two consecutive fiscal years referred to 
in that paragraph.

Summary: Authorizes the Secretary of Defense to expend up to $50 million for a fiscal year in Cooperative Threat Reduction funds to prevent proliferation of nuclear, chemical and other weapons outside the former Soviet Union, where allocation of such funds is currently limited to. Specifies that such expenditures may occur if determined that certain projects or activities will assist the United States in dealing with critical emerging proliferation threats or in achieving long-standing nonproliferation goals. Determines that such funds may go only to equipment, goods and services and cannot be spent directly on a project or activity. Directs the President to include in a given year's budget a request for funds distributed under the Act during the last fiscal year with a description of what projects would otherwise have been funded. Sets a time frame for the Secretary to inform Congress of what funds will be used for. Contains a provision for emergency distribution of funds to meet a critical emerging proliferation threat or a nonproliferation goal that requires such allocation. Requires the Secretary to report to Congress on the advisability of establishing one or more new cooperative threat reduction programs to account for projects or activities for which emergency distribution of funds were distributed under the Act or that were funded under the Act two years in a row.