H. R. 1588

One Hundred Eighth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Tuesday,

the seventh day of January, two thousand and three

An Act

To authorize appropriations for fiscal year 2004 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the

Armed Forces, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘National Defense Authorization

Act for Fiscal Year 2004’’.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

(a) DIVISIONS.—This Act is organized into three divisions as

follows:

(1) Division A—Department of Defense Authorizations.

(2) Division B—Military Construction Authorizations.

(3) Division C—Department of Energy National Security

Authorizations and Other Authorizations.

(b) TABLE OF CONTENTS.—The table of contents for this Act

is as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 3. Congressional defense committees defined.

DIVISION A—DEPARTMENT OF DEFENSE

AUTHORIZATIONS

TITLE I—PROCUREMENT

Subtitle A—Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Subtitle B—Army Programs

Sec. 111. Stryker vehicle program.

Sec. 112. CH–47 helicopter program.

Subtitle C—Navy Programs

Sec. 121. Multiyear procurement authority for F/A–18 aircraft program.

Sec. 122. Multiyear procurement authority for Tactical Tomahawk cruise missile

program.

Sec. 123. Multiyear procurement authority for Virginia class submarine program.

Sec. 124. Multiyear procurement authority for E–2C aircraft program.

Sec. 125. Multiyear procurement authority for Phalanx Close In Weapon System

program.

Sec. 126. Pilot program for flexible funding of cruiser conversions and overhauls.
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Subtitle D—Air Force Programs

Sec. 131. Elimination of quantity limitations on multiyear procurement authority

for C–130J aircraft.

Sec. 132. Limitation on retiring C–5 aircraft.

Sec. 133. Limitation on obligation of funds for procurement of F/A–22 aircraft.

Sec. 134. Aircraft for performance of aerial refueling mission.

Sec. 135. Procurement of tanker aircraft.

TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for defense science and technology.

Subtitle B—Program Requirements, Restrictions, and Limitations

Sec. 211. Collaborative program for development of electromagnetic gun technology.

Sec. 212. Leadership and duties of Department of Defense Test Resource Management Center.

Sec. 213. Development of the Joint Tactical Radio System.

Sec. 214. Future Combat Systems.

Sec. 215. Extension of reporting requirement for RAH–66 Comanche aircraft program.

Sec. 216. Studies of fleet platform architectures for the Navy.

Subtitle C—Ballistic Missile Defense

Sec. 221. Enhanced flexibility for ballistic missile defense systems.

Sec. 222. Fielding of ballistic missile defense capabilities.

Sec. 223. Oversight of procurement, performance criteria, and operational test

plans for ballistic missile defense programs.

Sec. 224. Renewal of authority to assist local communities affected by ballistic missile defense system test bed.

Sec. 225. Prohibition on use of funds for nuclear-armed interceptors in missile defense systems.

Sec. 226. Follow-on research, development, test, and evaluation related to system

improvements for missile defense programs transferred to military departments.

Subtitle D—Other Matters

Sec. 231. Global Research Watch program in the Office of the Director of Defense

Research and Engineering.

Sec. 232. Defense Advanced Research Projects Agency biennial strategic plan.

Sec. 233. Enhancement of authority of Secretary of Defense to support science,

mathematics, engineering, and technology education.

Sec. 234. Department of Defense program to expand high-speed, high-bandwidth

capabilities for network-centric operations.

Sec. 235. Blue forces tracking initiative.

TITLE III—OPERATION AND MAINTENANCE

Subtitle A—Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Other Department of Defense programs.

Subtitle B—Environmental Provisions

Sec. 311. Reauthorization and modification of title I of Sikes Act.

Sec. 312. Clarification of Department of Defense response to environmental emergencies.

Sec. 313. Repeal of authority to use environmental restoration account funds for relocation of a contaminated facility.

Sec. 314. Authorization for Department of Defense participation in wetland mitigation banks.

Sec. 315. Inclusion of environmental response equipment and services in Navy definitions of salvage facilities and salvage services.

Sec. 316. Repeal of model program for base closure environmental restoration.

Sec. 317. Requirements for restoration advisory boards and exemption from Federal

Advisory Committee Act.

Sec. 318. Military readiness and conservation of protected species.

Sec. 319. Military readiness and marine mammal protection.

Sec. 320. Report regarding impact of civilian community encroachment and certain

legal requirements on military installations and ranges and plan to address encroachment.
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Sec. 321. Cooperative water use management related to Fort Huachuca, Arizona,

and Sierra Vista subwatershed.

Sec. 322. Task force on resolution of conflict between military training and endangered species protection at Barry M. Goldwater Range, Arizona.

Sec. 323. Public health assessment of exposure to perchlorate.

Sec. 324. Comptroller General review of Arctic Military Environmental Cooperation

program.

Subtitle C—Workplace and Depot Issues

Sec. 331. Exemption of certain firefighting service contracts from prohibition on

contracts for performance of firefighting functions.

Sec. 332. Technical amendment relating to closure of Sacramento Army Depot,

California.

Sec. 333. Exception to competition requirement for depot-level maintenance and repair workloads performed by depot-level activities.

Sec. 334. Resources-based schedules for completion of public-private competitions

for performance of Department of Defense functions.

Sec. 335. Delayed implementation of revised Office of Management and Budget Circular A–76 by Department of Defense pending report.

Sec. 336. Pilot program for best-value source selection for performance of information technology services.

Sec. 337. High-performing organization business process reengineering pilot program.

Sec. 338. Naval Aviation Depots multi-trades demonstration project.

Subtitle D—Other Matters

Sec. 341. Cataloging and standardization for defense supply management.

Sec. 342. Sale of Defense Information Systems Agency services to contractors performing the Navy-Marine Corps Intranet contract.

Sec. 343. Permanent authority for purchase of certain municipal services at installations in Monterey County, California.

Sec. 344. Department of Defense telecommunications benefit.

Sec. 345. Independent assessment of material condition of the KC–135 aerial refueling fleet.

TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Revision in permanent active duty end strength minimum levels.

Sec. 403. Personnel strength authorization and accounting process.

Subtitle B—Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for Reserves on active duty in support of the reserves.

Sec. 413. End strengths for military technicians (dual status).

Sec. 414. Fiscal year 2004 limitations on non-dual status technicians.

Sec. 415. Permanent limitations on number of non-dual status technicians.

Subtitle C—Authorizations of Appropriations

Sec. 421. Military personnel.

Sec. 422. Armed Forces Retirement Home.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Matters

Sec. 501. Standardization of qualifications for appointment as service chief.

Sec. 502. Eligibility for appointment as Chief of Army Veterinary Corps.

Sec. 503. Repeal of required grade of defense attache ́ in France.

Sec. 504. Repeal of termination provisions for certain authorities relating to management of general and flag officers in certain grades.

Sec. 505. Retention of health professions officers to fulfill active-duty service commitments following promotion nonselection.

Sec. 506. Permanent authority to reduce three-year time-in-grade requirement for

retirement in grade for officers in grades above major and lieutenant

commander.

Sec. 507. Contingent exclusion from officer strength and distribution-in-grade limitations for officer serving as Associate Director of Central Intelligence

for Military Support.

Sec. 508. Reappointment of incumbent Chief of Naval Operations.

Sec. 509. Secretary of Defense approval required for practice of wearing uniform insignia of higher grade known as ‘‘frocking’’.
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Subtitle B—Reserve Component Matters

Sec. 511. Streamlined process for continuation of officers on the Reserve Active-Status List.

Sec. 512. Consideration of Reserve officers for position vacancy promotions in time

of war or national emergency. Sec. 513. Authority for delegation of required secretarial special finding for placement of certain retired members in Ready Reserve. Sec. 514. Authority to provide expenses of Army and Air Staff personnel and National Guard Bureau personnel attending national conventions of certain military associations. Sec. 515. Expanded authority for use of Ready Reserve in response to terrorism.

Sec. 516. National Guard officers on active duty in command of National Guard

units.

Sec. 517. Presidential report on mobilization of reserve component personnel and

Secretary of Defense assessment. Sec. 518. Authority for the use of operation and maintenance funds for promotional

activities of the National Committee for Employer Support of the Guard

and Reserve.

Subtitle C—ROTC and Military Service Academies

Sec. 521. Expanded educational assistance authority for cadets and midshipmen receiving ROTC scholarships. Sec. 522. Increase in allocation of scholarships under Army Reserve ROTC scholarship program to students at military junior colleges. Sec. 523. Authority for nonscholarship senior ROTC sophomores to voluntarily contract for and receive subsistence allowance.

Sec. 524. Appointments to military service academies from nominations made by

delegates from Guam, Virgin Islands, and American Samoa. Sec. 525. Readmission to service academies of certain former cadets and midshipmen. Sec. 526. Defense task force on sexual harassment and violence at the military

service academies.

Sec. 527. Actions to address sexual harassment and violence at the service academies.

Sec. 528. Study and report related to permanent professors at the United States

Air Force Academy. Sec. 529. Dean of the faculty of the United States Air Force Academy.

Subtitle D—Other Military Education and Training Matters

Sec. 531. Authority for the Marine Corps University to award the degree of Master

of Operational Studies. Sec. 532. Authorization for Naval Postgraduate School to provide instruction to enlisted members participating in certain programs. Sec. 533. Cost reimbursement requirements for personnel receiving instruction at

the Air Force Institute of Technology. Sec. 534. Inclusion of accrued interest in amounts that may be repaid under Selected Reserve critical specialties education loan repayment program. Sec. 535. Funding of education assistance enlistment incentives to facilitate national service through Department of Defense Education Benefits Fund. Sec. 536. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees. Sec. 537. Impact aid eligibility for heavily impacted local educational agencies affected by privatization of military housing.

Subtitle E—Administrative Matters

Sec. 541. High-tempo personnel management and allowance.

Sec. 542. Enhanced retention of accumulated leave for high-deployment members.

Sec. 543. Standardization of statutory authorities for exemptions from requirement

for access to secondary schools by military recruiters. Sec. 544. Procedures for consideration of applications for award of the Purple Heart

medal to veterans held as prisoners of war before April 25, 1962. Sec. 545. Authority for Reserve and retired regular officers to hold State and local

office notwithstanding call to active duty. Sec. 546. Policy on public identification of casualties.

Sec. 547. Space personnel career fields.

Sec. 548. Department of Defense Joint Advertising, Market Research, and Studies

program. Sec. 549. Limitation on force structure reductions in Naval and Marine Corps Reserve aviation squadrons.

Subtitle F—Military Justice Matters

Sec. 551. Extended limitation period for prosecution of child abuse cases in courtsmartial.
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Sec. 552. Clarification of blood alcohol content limit for the offense under the Uniform Code of Military Justice of drunken operation of a vehicle, aircraft,

or vessel.

Subtitle G—Benefits

Sec. 561. Additional classes of individuals eligible to participate in the Federal

long-term care insurance program.

Sec. 562. Authority to transport remains of retirees and retiree dependents who die

in military treatment facilities.

Sec. 563. Eligibility for dependents of certain mobilized reservists stationed overseas to attend defense dependents schools overseas.

Subtitle H—Domestic Violence

Sec. 571. Travel and transportation for dependents relocating for reasons of personal safety.

Sec. 572. Commencement and duration of payment of transitional compensation.

Sec. 573. Exceptional eligibility for transitional compensation.

Sec. 574. Types of administrative separations triggering coverage.

Sec. 575. Comptroller General review and report.

Sec. 576. Fatality reviews.

Sec. 577. Sense of Congress.

Subtitle I—Other Matters

Sec. 581. Recognition of military families.

Sec. 582. Permanent authority for support for certain chaplain-led military family

support programs.

Sec. 583. Department of Defense-Department of Veterans Affairs Joint Executive

Committee.

Sec. 584. Review of the 1991 death of Marine Corps Colonel James E. Sabow.

Sec. 585. Policy on concurrent deployment to combat zones of both military spouses

of military families with minor children.

Sec. 586. Congressional notification of amendment or cancellation of Department of

Defense directive relating to reasonable access to military installations

for certain personal commercial solicitation.

Sec. 587. Study of National Guard Challenge Program.

Sec. 588. Findings and sense of Congress on reward for information leading to resolution of status of members of the Armed Forces who remain unaccounted for.

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.

Sec. 602. Revised annual pay adjustment process.

Sec. 603. Computation of basic pay rate for commissioned officers with prior enlisted or warrant officer service.

Sec. 604. Special subsistence allowance authorities for members assigned to highcost duty location or under other unique and unusual circumstances.

Sec. 605. Basic allowance for housing for each member married to another member

without dependents when both spouses are on sea duty.

Sec. 606. Temporary increase in authorized amount of family separation allowance.

Subtitle B—Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay authorities for reserve forces.

Sec. 612. One-year extension of certain bonus and special pay authorities for certain health care professionals.

Sec. 613. One-year extension of special pay and bonus authorities for nuclear officers. Sec. 614. One-year extension of other bonus and special pay authorities.

Sec. 615. Hazardous duty pay for duty involving ski-equipped aircraft on Antarctica

or the Arctic icepack.

Sec. 616. Special pay for reserve officers holding positions of unusual responsibility

and of critical nature.

Sec. 617. Payment of Selected Reserve reenlistment bonus to members of Selected

Reserve who are mobilized.

Sec. 618. Availability of hostile fire and imminent danger special pay for reserve

component members on inactive duty.

Sec. 619. Temporary increase in authorized amount of hostile fire and imminent

danger special pay.

Sec. 620. Retroactive payment of hostile fire or imminent danger pay for service in

eastern Mediterranean Sea in Operation Iraqi Freedom.
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Sec. 621. Expansion of overseas tour extension incentive program to officers.

Sec. 622. Repeal of congressional notification requirement for designation of critical

military skills for retention bonus. Sec. 623. Eligibility of warrant officers for accession bonus for new officers in critical skills.

Sec. 624. Special pay for service as member of Weapons of Mass Destruction Civil

Support Team. Sec. 625. Incentive bonus for conversion to military occupational specialty to ease

personnel shortage. Sec. 626. Bonus for reenlistment during service on active duty in Afghanistan, Iraq,

or Kuwait.

Subtitle C—Travel and Transportation Allowances

Sec. 631. Shipment of privately owned motor vehicle within continental United

States.

Sec. 632. Transportation of dependents to presence of members of the Armed

Forces retired for illness or injury incurred in active duty. Sec. 633. Payment or reimbursement of student baggage storage costs for dependent children of members stationed overseas.

Sec. 634. Contracts for full replacement value for loss or damage to personal property transported at Government expense. Sec. 635. Payment of lodging expenses of members during authorized leave from

temporary duty location.

Subtitle D—Retired Pay and Survivor Benefits

Sec. 641. Phase-in of full concurrent receipt of military retired pay and veterans

disability compensation for certain military retirees. Sec. 642. Revisions to combat-related special compensation program.

Sec. 643. Special rule for computation of retired pay base for commanders of combatant commands.

Sec. 644. Survivor Benefit Plan annuities for surviving spouses of Reserves not eligible for retirement who die from a cause incurred or aggravated while

on inactive-duty training. Sec. 645. Survivor Benefit Plan modifications.

Sec. 646. Increase in death gratuity payable with respect to deceased members of

the Armed Forces.

Sec. 647. Death benefits study.

Subtitle E—Commissary and Nonappropriated Fund Instrumentality

Benefits

Sec. 651. Expanded commissary access for Selected Reserve members, reserve retirees under age 60, and their dependents. Sec. 652. Defense commissary system and exchange stores system.

Sec. 653. Limitations on private operation of defense commissary store functions.

Sec. 654. Use of appropriated funds to operate defense commissary system.

Sec. 655. Recovery of nonappropriated fund instrumentality and commissary store

investments in real property at military installations closed or realigned.

Subtitle F—Other Matters

Sec. 661. Comptroller General report on adequacy of special pays and allowances

for frequently deployed members.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Enhanced Benefits for Reserves

Sec. 701. Medical and dental screening for Ready Reserve members alerted for mobilization.

Sec. 702. Coverage for Ready Reserve members under TRICARE program.

Sec. 703. Earlier eligibility date for TRICARE benefits for members of reserve components. Sec. 704. Temporary extension of transitional health care benefits.

Sec. 705. Assessment of needs of Reserves for health care benefits.

Sec. 706. Limitation on fiscal year 2004 outlays for temporary Reserve health care

programs. Sec. 707. TRICARE beneficiary counseling and assistance coordinators for reserve

component beneficiaries. Sec. 708. Eligibility of Reserve officers for health care pending orders to active duty

following commissioning.

Subtitle B—Other Benefits Improvements

Sec. 711. Acceleration of implementation of chiropractic health care for members on

active duty.
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Sec. 712. Reimbursement of covered beneficiaries for certain travel expenses relating to specialized dental care.

Sec. 713. Eligibility for continued health benefits coverage extended to certain

members of uniformed services.

Sec. 714. Authority for designated providers to enroll covered beneficiaries with

other primary health insurance coverage.

Subtitle C—Planning, Programming, and Management

Sec. 721. Permanent extension of authority to enter into personal services contracts

for the performance of health care responsibilities at locations other

than military medical treatment facilities.

Sec. 722. Department of Defense Medicare-Eligible Retiree Health Care Fund valuations and contributions.

Sec. 723. Surveys on continued viability of TRICARE Standard.

Sec. 724. Plan for providing health coverage information to members, former members, and dependents eligible for certain health benefits.

Sec. 725. Transfer of certain members of the Pharmacy and Therapeutics Committee to the Uniform Formulary Beneficiary Advisory Panel under the

pharmacy benefits program.

Sec. 726. Working group on military health care for persons reliant on health care

facilities at military installations to be closed or realigned.

Sec. 727. Joint program for development and evaluation of integrated healing care

practices for members of the Armed Forces and veterans.

TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND

RELATED MATTERS

Subtitle A—Acquisition Policy and Management

Sec. 801. Consolidation of contract requirements.

Sec. 802. Quality control in procurement of aviation critical safety items and related services.

Sec. 803. Federal support for enhancement of State and local anti-terrorism response capabilities.

Sec. 804. Special temporary contract closeout authority.

Sec. 805. Competitive award of contracts for reconstruction activities in Iraq.

Subtitle B—United States Defense Industrial Base Provisions

PART I—ESSENTIAL ITEMS IDENTIFICATION AND DOMESTIC PRODUCTION CAPABILITIES

IMPROVEMENT PROGRAM

Sec. 811. Consistency with United States obligations under international agreements.

Sec. 812. Assessment of United States defense industrial base capabilities.

Sec. 813. Identification of essential items: military system breakout list.

Sec. 814. Production capabilities improvement for certain essential items using defense industrial base capabilities fund.

PART II—REQUIREMENTS RELATING TO SPECIFIC ITEMS

Sec. 821. Elimination of unreliable sources of defense items and components.

Sec. 822. Incentive program for major defense acquisition programs to use machine

tools and other capital assets produced within the United States.

Sec. 823. Technical assistance relating to machine tools.

Sec. 824. Study of beryllium industrial base.

PART III—OTHER DOMESTIC SOURCE REQUIREMENTS

Sec. 826. Exceptions to Berry amendment for contingency operations and other urgent situations.

Sec. 827. Inapplicability of Berry amendment to procurements of waste and byproducts of cotton and wool fiber for use in the production of propellants and

explosives.

Sec. 828. Buy American exception for ball bearings and roller bearings used in foreign products.

Subtitle C—Defense Acquisition and Support Workforce Flexibility

Sec. 831. Management structure.

Sec. 832. Elimination of role of Office of Personnel Management.

Sec. 833. Single acquisition corps.

Sec. 834. Consolidation of certain education and training program requirements.

Sec. 835. General management provisions.

Sec. 836. Clerical amendments.
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Subtitle D—Amendments to General Contracting Authorities, Procedures,

and Limitations

Sec. 841. Additional authority to enter into personal services contracts.

Sec. 842. Elimination of certain subcontract notification requirements.

Sec. 843. Multiyear task and delivery order contracts.

Sec. 844. Elimination of requirement to furnish written assurances of technical

data conformity.

Sec. 845. Access to information relevant to items deployed under rapid acquisition

and deployment procedures.

Sec. 846. Applicability of requirement for reports on maturity of technology at initiation of major defense acquisition programs.

Sec. 847. Certain weapons-related prototype projects.

Sec. 848. Limited acquisition authority for commander of United States Joint

Forces Command.

Subtitle E—Acquisition-Related Reports and Other Matters

Sec. 851. Report on contract payments to small businesses.

Sec. 852. Contracting with employers of persons with disabilities.

Sec. 853. Demonstration project for contractors employing persons with disabilities.

TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND

MANAGEMENT

Subtitle A—Duties and Functions of Department of Defense Officers and

Organizations

Sec. 901. Clarification of responsibility of military departments to support combatant commands.

Sec. 902. Combatant Commander Initiative Fund.

Sec. 903. Biennial review of national military strategy by Chairman of the Joint

Chiefs of Staff.

Sec. 904. Report on changing roles of United States Special Operations Command.

Sec. 905. Sense of Congress regarding continuation of mission and functions of

Army Peacekeeping Institute.

Sec. 906. Transfer to Office of Personnel Management of personnel investigative

functions and related personnel of the Department of Defense.

Sec. 907. Defense acquisition workforce freeze for fiscal year 2004.

Subtitle B—Space Activities

Sec. 911. Coordination of space science and technology activities of the Department

of Defense.

Sec. 912. Policy regarding assured access to space for United States national security payloads.

Sec. 913. Pilot program for provision of space surveillance network services to nonUnited States Government entities.

Sec. 914. Content of biennial global positioning system report.

Sec. 915. Report on processes-related space systems.

Subtitle C—Department of Defense Intelligence Components

Sec. 921. Redesignation of National Imagery and Mapping Agency as National

Geospatial-Intelligence Agency.

Sec. 922. Protection of operational files of the National Security Agency.

Sec. 923. Integration of defense intelligence, surveillance, and reconnaissance capabilities.

Sec. 924. Management of National Security Agency Modernization Program.

Sec. 925. Modification of obligated service requirements under National Security

Education Program.

Sec. 926. Authority to provide living quarters for certain students in cooperative

and summer education programs of the National Security Agency.

Sec. 927. Commercial imagery industrial base.

Subtitle D—Other Matters

Sec. 931. Authority for Asia-Pacific Center for Security Studies to accept gifts and

donations.

Sec. 932. Repeal of rotating chairmanship of Economic Adjustment Committee.

Sec. 933. Extension of certain authorities applicable to the Pentagon Reservation to

include a designated Pentagon continuity-of-Government location.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.
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Sec. 1002. United States contribution to NATO common-funded budgets in fiscal

year 2004.

Sec. 1003. Authorization of supplemental appropriations for fiscal year 2003.

Sec. 1004. Authorization of supplemental appropriations for fiscal year 2004.

Sec. 1005. Reestablishment of authority for short-term leases of real or personal

property across fiscal years.

Sec. 1006. Reimbursement rate for certain airlift services provided to Department

of State.

Sec. 1007. Limitation on payment of facilities charges assessed by Department of

State.

Sec. 1008. Use of the Defense Modernization Account for life cycle cost reduction

initiatives.

Sec. 1009. Provisions relating to defense travel cards.

Subtitle B—Naval Vessels and Shipyards

Sec. 1011. Repeal of requirement regarding preservation of surge capability for

naval surface combatants.

Sec. 1012. Enhancement of authority relating to use for experimental purposes of

vessels stricken from Naval Vessel Register.

Sec. 1013. Transfer of vessels stricken from the Naval Vessel Register for use as

artificial reefs.

Sec. 1014. Priority for title XI assistance.

Sec. 1015. Support for transfers of decommissioned vessels and shipboard equipment.

Sec. 1016. Advanced Shipbuilding Enterprise.

Sec. 1017. Report on Navy plans for basing aircraft carriers.

Sec. 1018. Limitation on disposal of obsolete naval vessel.

Subtitle C—Counterdrug Matters

Sec. 1021. Expansion and extension of authority to provide additional support for

counter-drug activities.

Sec. 1022. Authority for joint task forces to provide support to law enforcement

agencies conducting counter-terrorism activities.

Sec. 1023. Use of funds for unified counterdrug and counterterrorism campaign in

Colombia.

Sec. 1024. Sense of Congress on reconsideration of decision to terminate border and

seaport inspection duties of National Guard under National Guard drug

interdiction and counter-drug mission.

Subtitle D—Reports

Sec. 1031. Repeal and modification of various reporting requirements applicable to

the Department of Defense.

Sec. 1032. Plan for prompt global strike capability.

Sec. 1033. Annual report concerning dismantling of strategic nuclear warheads.

Sec. 1034. Report on use of unmanned aerial vehicles for support of homeland security missions.

Subtitle E—Codifications, Definitions, and Technical Amendments

Sec. 1041. Codification and revision of defense counterintelligence polygraph program authority.

Sec. 1042. General definitions applicable to facilities and operations of Department

of Defense.

Sec. 1043. Additional definitions for purposes of title 10, United States Code.

Sec. 1044. Inclusion of annual military construction authorization request in annual defense authorization request.

Sec. 1045. Technical and clerical amendments.

Subtitle F—Other Matters

Sec. 1051. Assessment of effects of specified statutory limitations on the granting

of security clearances.

Sec. 1052. Acquisition of historical artifacts through exchange of obsolete or surplus

property.

Sec. 1053. Conveyance of surplus T–37 aircraft to Air Force Aviation Heritage

Foundation, Incorporated.

Sec. 1054. Department of Defense biennial strategic plan for management of electromagnetic spectrum.

Sec. 1055. Revision of Department of Defense directive relating to management and

use of radio frequency spectrum.

Sec. 1056. Sense of Congress on deployment of airborne chemical agent monitoring

systems at chemical stockpile disposal sites in the United States.
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Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of United

States Fire Administration.

Sec. 1058. Review and enhancement of existing authorities for using Air Force and

Air National Guard Modular Airborne Fire-Fighting Systems and other

Department of Defense assets to fight wildfires.

TITLE XI—CIVILIAN PERSONNEL MATTERS

Subtitle A—Department of Defense National Security Personnel System

Sec. 1101. Department of Defense national security personnel system.

Subtitle B—Department of Defense Civilian Personnel Generally

Sec. 1111. Pilot program for improved civilian personnel management.

Sec. 1112. Clarification and revision of authority for demonstration project relating

to certain acquisition personnel management policies and procedures.

Sec. 1113. Military leave for mobilized Federal civilian employees.

Sec. 1114. Restoration of annual leave for certain Department of Defense employees.

Sec. 1115. Authority to employ civilian faculty members at the Western Hemisphere Institute for Security Cooperation.

Sec. 1116. Extension of authority for experimental personnel program for scientific

and technical personnel.

Subtitle C—Other Federal Government Civilian Personnel Matters

Sec. 1121. Modification of the overtime pay cap.

Sec. 1122. Common occupational and health standards for differential payments as

a consequence of exposure to asbestos.

Sec. 1123. Increase in annual student loan repayment authority.

Sec. 1124. Authorization for cabinet secretaries, secretaries of military departments, and heads of executive agencies to be paid on a biweekly basis.

Sec. 1125. Senior Executive Service and performance.

Sec. 1126. Design elements of pay-for-performance systems in demonstration

projects.

Sec. 1127. Federal flexible benefits plan administrative costs.

Sec. 1128. Employee surveys.

Sec. 1129. Human capital performance fund.

TITLE XII—MATTERS RELATING TO OTHER NATIONS

Subtitle A—Matters Relating to Iraq

Sec. 1201. Medical assistance to Iraqi children injured during Operation Iraqi Freedom.

Sec. 1202. Report on the conduct of Operation Iraqi Freedom.

Sec. 1203. Report on Department of Defense security and reconstruction activities

in Iraq.

Sec. 1204. Report on acquisition by Iraq of advanced weapons.

Sec. 1205. Sense of Congress on use of small businesses, minority-owned businesses, and women-owned businesses in efforts to rebuild Iraq.

Subtitle B—Matters Relating to Export Protections

Sec. 1211. Review of export protections for military superiority resources.

Sec. 1212. Report on Department of Defense costs relating to national security controls on satellite exports.

Subtitle C—Administrative Requirements and Authorities

Sec. 1221. Authority to use funds for payment of costs of attendance of foreign visitors under Regional Defense Counterterrorism Fellowship Program.

Sec. 1222. Recognition of superior noncombat achievements or performance by

members of friendly foreign forces and other foreign nationals.

Sec. 1223. Expansion of authority to waive charges for costs of attendance at

George C. Marshall European Center for Security Studies.

Sec. 1224. Authority for check cashing and currency exchange services to be provided to foreign military members participating in certain activities with

United States forces.

Sec. 1225. Depot maintenance and repair work on certain types of trainer aircraft

to be transferred to foreign countries as excess aircraft.

Subtitle D—Other Reports and Sense of Congress Statements

Sec. 1231. Annual report on the NATO Prague Capabilities Commitment and the

NATO Response Force.
H. R. 1588—11

Sec. 1232. Report on actions that could be taken regarding countries that initiate

certain legal actions against United States officials or members of the

Armed Forces.

Sec. 1233. Sense of Congress on redeployment of United States forces in Europe.

Sec. 1234. Sense of Congress concerning Navy port calls in Israel.

TITLE XIII—COOPERATIVE THREAT REDUCTION WITH STATES OF THE

FORMER SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.

Sec. 1302. Funding allocations.

Sec. 1303. Limitation on use of funds until certain permits obtained.

Sec. 1304. Limitation on use of funds for biological research in the former Soviet

Union.

Sec. 1305. Requirement for on-site managers.

Sec. 1306. Temporary authority to waive limitation on funding for chemical weapons destruction facility in Russia.

Sec. 1307. Annual certifications on use of facilities being constructed for Cooperative Threat Reduction projects or activities.

Sec. 1308. Authority to use Cooperative Threat Reduction funds outside the former

Soviet Union.

TITLE XIV—SERVICES ACQUISITION REFORM

Sec. 1401. Short title.

Subtitle A—Acquisition Workforce and Training

Sec. 1411. Definition of acquisition.

Sec. 1412. Acquisition workforce training fund.

Sec. 1413. Acquisition workforce recruitment program.

Sec. 1414. Architectural and engineering acquisition workforce.

Subtitle B—Adaptation of Business Acquisition Practices

PART I—ADAPTATION OF BUSINESS MANAGEMENT PRACTICES

Sec. 1421. Chief Acquisition Officers.

Sec. 1422. Chief Acquisition Officers Council.

Sec. 1423. Statutory and regulatory review.

PART II—OTHER ACQUISITION IMPROVEMENTS

Sec. 1426. Extension of authority to carry out franchise fund programs.

Sec. 1427. Improvements in contracting for architectural and engineering services.

Sec. 1428. Authorization of telecommuting for Federal contractors.

Subtitle C—Acquisitions of Commercial Items

Sec. 1431. Additional incentive for use of performance-based contracting for services.

Sec. 1432. Authorization of additional commercial contract types.

Sec. 1433. Clarification of commercial services definition.

Subtitle D—Other Matters

Sec. 1441. Authority to enter into certain transactions for defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack.

Sec. 1442. Public disclosure of noncompetitive contracting for the reconstruction of

infrastructure in Iraq.

Sec. 1443. Special emergency procurement authority.

TITLE XV—VETERANS’ DISABILITY BENEFITS COMMISSION

Sec. 1501. Establishment of commission.

Sec. 1502. Duties of the commission.

Sec. 1503. Report.

Sec. 1504. Powers of the commission.

Sec. 1505. Personnel matters.

Sec. 1506. Termination of commission.

Sec. 1507. Funding.

TITLE XVI—DEFENSE BIOMEDICAL COUNTERMEASURES

Sec. 1601. Research and development of defense biomedical countermeasures.

Sec. 1602. Procurement of defense biomedical countermeasures.

Sec. 1603. Authorization for medical products for use in emergencies.
H. R. 1588—12

TITLE XVII—NATURALIZATION AND OTHER IMMIGRATION BENEFITS

FOR MILITARY PERSONNEL AND FAMILIES

Sec. 1701. Requirements for naturalization through service in the Armed Forces of

the United States.

Sec. 1702. Naturalization benefits for members of the Selected Reserve of the

Ready Reserve.

Sec. 1703. Extension of posthumous benefits to surviving spouses, children, and

parents.

Sec. 1704. Expedited process for granting posthumous citizenship to members of

the Armed Forces.

Sec. 1705. Effective date.

DIVISION B—MILITARY CONSTRUCTION

AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI—ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

Sec. 2105. Termination or modification of authority to carry out certain fiscal year

2003 projects.

Sec. 2106. Modification of authority to carry out certain fiscal year 2002 projects.

Sec. 2107. Termination or modification of authority to carry out certain fiscal year

2001 projects.

TITLE XXII—NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.

Sec. 2205. Termination of authority to carry out certain fiscal year 2003 projects.

Sec. 2206. Termination or modification of authority to carry out certain fiscal year

2002 projects.

TITLE XXIII—AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition projects.

Sec. 2302. Family housing.

Sec. 2303. Improvements to military family housing units.

Sec. 2304. Authorization of appropriations, Air Force.

Sec. 2305. Termination or modification of authority to carry out certain fiscal year

2003 projects.

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

Sec. 2402. Family housing.

Sec. 2403. Improvements to military family housing units.

Sec. 2404. Energy conservation projects.

Sec. 2405. Authorization of appropriations, Defense Agencies.

Sec. 2406. Termination of authority to carry out certain fiscal year 2003 projects.

TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION SECURITY

INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.

Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land acquisition

projects.

TITLE XXVII—EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be specified by

law.

Sec. 2702. Extension of authorizations of certain fiscal year 2001 projects.

Sec. 2703. Extension of authorizations of certain fiscal year 2000 projects.
H. R. 1588—13

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military Family Housing

Changes

Sec. 2801. Modification of general definitions relating to military construction.

Sec. 2802. Increase in maximum amount of authorized annual emergency construction.

Sec. 2803. Increase in number of family housing units in Italy authorized for lease

by the Navy.

Sec. 2804. Increase in authorized maximum lease term for family housing and

other facilities in certain foreign countries.

Sec. 2805. Conveyance of property at military installations closed or realigned to

support military construction.

Sec. 2806. Inapplicability of space limitations to military unaccompanied housing

units acquired or constructed under alternative authority.

Sec. 2807. Additional material for reports on housing privatization program.

Sec. 2808. Temporary, limited authority to use operation and maintenance funds

for construction projects outside the United States.

Sec. 2809. Report on military construction requirements to support new homeland

defense missions of the Armed Forces.

Subtitle B—Real Property and Facilities Administration

Sec. 2811. Enhancement of authority to acquire low-cost interests in land.

Sec. 2812. Retention and availability of amounts realized from energy cost savings.

Sec. 2813. Acceptance of in-kind consideration for easements.

Subtitle C—Base Closure and Realignment

Sec. 2821. Consideration of public-access-road issues related to base closure, realignment, or placement in inactive status.

Sec. 2822. Consideration of surge requirements in 2005 round of base realignments

and closures.

Subtitle D—Land Conveyances

PART I—ARMY CONVEYANCES

Sec. 2831. Termination of lease and conveyance of Army Reserve facility, Conway,

Arkansas.

Sec. 2832. Land conveyance, Fort Campbell, Kentucky and Tennessee.

Sec. 2833. Land conveyance, Fort Knox, Kentucky.

Sec. 2834. Army National Guard Armory, Pierce City, Missouri.

Sec. 2835. Land exchange, Fort Belvoir, Virginia.

PART II—NAVY CONVEYANCES

Sec. 2841. Land conveyance, Navy property, Dixon, California.

Sec. 2842. Land conveyance, Marine Corps Logistics Base, Albany, Georgia.

Sec. 2843. Land exchange, Naval and Marine Corps Reserve Center, Portland, Oregon.

Sec. 2844. Land conveyance, Naval Reserve Center, Orange, Texas.

Sec. 2845. Land conveyance, Puget Sound Naval Shipyard, Bremerton, Washington.

PART III—AIR FORCE CONVEYANCES

Sec. 2851. Land exchange, March Air Reserve Base, California.

Sec. 2852. Actions to quiet title, Fallin Waters Subdivision, Eglin Air Force Base,

Florida.

Sec. 2853. Modification of land conveyance, Eglin Air Force Base, Florida.

PART IV—OTHER CONVEYANCES

Sec. 2861. Land conveyance, Air Force and Army Exchange Service property, Dallas, Texas.

Sec. 2862. Land conveyance, Umnak Island, Alaska.

Subtitle E—Other Matters

Sec. 2871. Authority to accept guarantees with gifts in development of Marine

Corps Heritage Center, Marine Corps Base, Quantico, Virginia.

Sec. 2872. Redesignation of Yuma Training Range Complex as Bob Stump Training

Range Complex.

Sec. 2873. Feasibility study regarding conveyance of Louisiana Army Ammunition

Plant, Doyline, Louisiana.
H. R. 1588—14

DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL SECURITY

PROGRAMS

Subtitle A—National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.

Sec. 3102. Defense environmental management.

Sec. 3103. Other defense activities.

Sec. 3104. Defense nuclear waste disposal.

Sec. 3105. Energy supply.

Subtitle B—Program Authorizations, Restrictions, and Limitations

Sec. 3111. Termination of requirement for annual updates of long-term plan for nuclear weapons stockpile life extension program.

Sec. 3112. Department of Energy project review groups not subject to Federal Advisory Committee Act by reason of inclusion of employees of Department

of Energy management and operating contractors.

Sec. 3113. Readiness posture for resumption by the United States of underground

nuclear weapons tests.

Sec. 3114. Technical base and facilities maintenance and recapitalization activities.

Sec. 3115. Continuation of processing, treatment, and disposition of legacy nuclear

materials.

Sec. 3116. Repeal of prohibition on research and development of low-yield nuclear

weapons.

Sec. 3117. Requirement for specific authorization of Congress for commencement of

engineering development phase or subsequent phase of Robust Nuclear

Earth Penetrator.

Subtitle C—Proliferation Matters

Sec. 3121. Semiannual financial reports on defense nuclear nonproliferation programs.

Sec. 3122. Report on reduction of excessive unobligated or unexpended balances for

defense nuclear nonproliferation activities.

Sec. 3123. Study and report relating to weapons-grade uranium and plutonium of

the independent states of the former Soviet Union.

Sec. 3124. Authority to use international nuclear materials protection and cooperation program funds outside the former Soviet Union.

Sec. 3125. Requirement for on-site managers.

Subtitle D—Other Matters

Sec. 3131. Performance of personnel security investigations of certain Department

of Energy and Nuclear Regulatory Commission employees in sensitive

programs.

Sec. 3132. Policy of Department of Energy regarding future defense environmental

management matters.

Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain information relating to stockpile stewardship criteria.

Sec. 3134. Progress reports on Energy Employees Occupational Illness Compensation Program.

Sec. 3135. Report on integration activities of Department of Defense and Department of Energy with respect to Robust Nuclear Earth Penetrator.

Subtitle E—Consolidation of National Security Provisions

Sec. 3141. Transfer and consolidation of recurring and general provisions on Department of Energy national security programs.

TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII—NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

Sec. 3302. Revisions to required receipt objectives for previously authorized disposals from National Defense Stockpile.

TITLE XXXIV—NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.
H. R. 1588—15

TITLE XXXV—MARITIME ADMINISTRATION

Sec. 3501. Short title.

Subtitle A—Maritime Administration Reauthorization

Sec. 3511. Authorization of appropriations for fiscal years 2004, 2005, 2006, 2007,

and 2008.

Sec. 3512. Conveyance of obsolete vessels under title V, Merchant Marine Act,

1936.

Sec. 3513. Authority to convey vessel USS HOIST (ARS–40).

Sec. 3514. Cargo preference.

Sec. 3515. Maritime education and training.

Sec. 3516. Authority to convey obsolete vessels to United States territories and foreign countries for reefing.

Sec. 3517. Maintenance and repair reimbursement pilot program.

Subtitle B—Amendments to Title XI Loan Guarantee Program

Sec. 3521. Equity payments by obligor for disbursement prior to termination of escrow agreement.

Sec. 3522. Waivers of program requirements.

Sec. 3523. Project monitoring.

Sec. 3524. Defaults.

Sec. 3525. Decision period.

Sec. 3526. Loan guarantees.

Sec. 3527. Annual report on program.

Sec. 3528. Review of program.

Subtitle C—Maritime Security Fleet

Sec. 3531. Establishment of Maritime Security Fleet.

Sec. 3532. Related amendments to existing law.

Sec. 3533. Interim rules.

Sec. 3534. Repeals and conforming amendments.

Sec. 3535. GAO study of adjustment of operating agreement payment criteria.

Sec. 3536. Definitions.

Sec. 3537. Effective dates.

Subtitle D—National Defense Tank Vessel Construction Assistance

Sec. 3541. National defense tank vessel construction program.

Sec. 3542. Application procedure.

Sec. 3543. Award of assistance.

Sec. 3544. Priority for title XI assistance.

Sec. 3545. Definitions.

Sec. 3546. Authorization of appropriations.

TITLE XXXVI—NUCLEAR SECURITY INITIATIVE

Sec. 3601. Short title.

Subtitle A—Administration and Oversight of Threat Reduction and

Nonproliferation Programs

Sec. 3611. Management assessment of Department of Defense and Department of

Energy threat reduction and nonproliferation programs.

Subtitle B—Relations Between the United States and Russia

Sec. 3621. Comprehensive inventory of Russian tactical nuclear weapons.

Sec. 3622. Establishment of interparliamentary Threat Reduction Working Group.

Sec. 3623. Sense of Congress on cooperation by United States and NATO with Russia on ballistic missile defenses.

Sec. 3624. Sense of Congress on enhanced collaboration to achieve more reliable

Russian early warning systems.

Subtitle C—Other Matters

Sec. 3631. Promotion of discussions on nuclear and radiological security and safety

between the International Atomic Energy Agency and the Organization

for Economic Cooperation and Development.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

For purposes of this Act, the term ‘‘congressional defense

committees’’ means—

(1) the Committee on Armed Services and the Committee

on Appropriations of the Senate; and
H. R. 1588—16

(2) the Committee on Armed Services and the Committee

on Appropriations of the House of Representatives.

DIVISION A—DEPARTMENT OF

DEFENSE AUTHORIZATIONS

TITLE I—PROCUREMENT

Subtitle A—Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Subtitle B—Army Programs

Sec. 111. Stryker vehicle program.

Sec. 112. CH–47 helicopter program.

Subtitle C—Navy Programs

Sec. 121. Multiyear procurement authority for F/A–18 aircraft program. Sec. 122. Multiyear procurement authority for Tactical Tomahawk cruise missile

program. Sec. 123. Multiyear procurement authority for Virginia class submarine program.

Sec. 124. Multiyear procurement authority for E–2C aircraft program. Sec. 125. Multiyear procurement authority for Phalanx Close In Weapon System

program. Sec. 126. Pilot program for flexible funding of cruiser conversions and overhauls.

Subtitle D—Air Force Programs

Sec. 131. Elimination of quantity limitations on multiyear procurement authority

for C–130J aircraft.

Sec. 132. Limitation on retiring C–5 aircraft.

Sec. 133. Limitation on obligation of funds for procurement of F/A–22 aircraft.

Sec. 134. Aircraft for performance of aerial refueling mission.

Sec. 135. Procurement of tanker aircraft.

Subtitle A—Authorization of

Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal year

2004 for procurement for the Army as follows:

(1) For aircraft, $2,098,985,000.

(2) For missiles, $1,549,462,000.

(3) For weapons and tracked combat vehicles,

$1,997,304,000.

(4) For ammunition, $1,413,305,000.

(5) For other procurement, $4,365,246,000.

SEC. 102. NAVY AND MARINE CORPS.

(a) NAVY.—Funds are hereby authorized to be appropriated

for fiscal year 2004 for procurement for the Navy as follows: (1) For aircraft, $9,009,948,000.

(2) For weapons, including missiles and torpedoes, $2,233,534,000.

(3) For shipbuilding and conversion, $11,729,984,000.

(4) For other procurement, $4,739,143,000.

(b) MARINE CORPS.—Funds are hereby authorized to be appropriated for fiscal year 2004 for procurement for the Marine Corps

in the amount of $1,123,499,000.
H. R. 1588—17

(c) NAVY AND MARINE CORPS AMMUNITION.—Funds are hereby

authorized to be appropriated for fiscal year 2004 for procurement

of ammunition for the Navy and the Marine Corps in the amount

of $924,355,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal year

2004 for procurement for the Air Force as follows:

(1) For aircraft, $12,035,151,000.

(2) For ammunition, $1,284,725,000.

(3) For missiles, $4,298,505,000.

(4) For other procurement, $11,631,859,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year

2004 for Defense-wide procurement in the amount of

$3,768,506,000.

Subtitle B—Army Programs

SEC. 111. STRYKER VEHICLE PROGRAM.

(a) LIMITATION.—Of the funds authorized to be appropriated

under section 101 for procurement for the Army for fiscal year

2004 that are available for the Stryker vehicle program, not more

than 80 percent may be obligated until— (1) the Secretary of the Army has submitted to the Deputy

Secretary of Defense the report specified in subsection (b);

(2) the Secretary of Defense has submitted to the congressional defense committees the report referred to in subsection

(c); and

(3) a period of 30 days has elapsed after the date of the

receipt by those committees of the report and certification under

paragraph (2).

(b) SECRETARY OF THE ARMY REPORT.—The report referred

to in subsection (a)(1) is the report required to be submitted by

the Secretary of the Army to the Deputy Secretary of Defense

not later than July 8, 2003, that identifies options for modifications

to the equipment and configuration of the Army brigades designated

as ‘‘Stryker brigade combat teams’’ to assure that those brigades,

after incorporating such modifications, provide—

(1) a higher level of combat capability and sustainability;

(2) a capability across a broader spectrum of combat operations; and

(3) a capability to be employed independently of higherlevel command formations and support.

(c) SECRETARY OF DEFENSE REPORT.—The Secretary of Defense

shall transmit to the congressional defense committees, not later

than 30 days after the date of the receipt by the Deputy Secretary

of Defense of the report of the Secretary of the Army referred

to in subsection (b), the modification options identified by the Secretary of the Army for purposes of that report. The Secretary

of Defense shall include any comments that may be applicable

to the analysis of the Secretary of the Army’s report.

SEC. 112. CH–47 HELICOPTER PROGRAM.

(a) REQUIREMENT FOR STUDY.—The Secretary of the Army shall

conduct a study of the feasibility and the costs and benefits of
H. R. 1588—18

providing for the participation of a second source in the production

of gears for the helicopter transmissions incorporated into CH–

47 helicopters to be procured by the Army with funds authorized

to be appropriated by this Act.

(b) REPORT.—Not later than 90 days after the date of the

enactment of this Act, the Secretary shall submit to Congress

a report on the results of the study under subsection (a).

Subtitle C—Navy Programs

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A–18 AIRCRAFT PROGRAM.

The Secretary of the Navy may, in accordance with section

2306b of title 10, United States Code, enter into a multiyear contract, beginning with the fiscal year 2005 program year, for procurement of aircraft in the F/A–18E, F/A–18F, and EA–18G configurations. The total number of aircraft procured through a multiyear

contract under this section may not exceed 234.

SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR TACTICAL

TOMAHAWK CRUISE MISSILE PROGRAM.

(a) AUTHORITY.—The Secretary of the Navy may, in accordance

with section 2306b of title 10, United States Code, enter into a

multiyear contract, beginning with the fiscal year 2004 program

year, for procurement of Tactical Tomahawk cruise missiles. The

total number of missiles procured through a multiyear contract

under this section shall be determined by the Secretary of the

Navy, based upon the funds available, but not to exceed 900 in

any year.

(b) TACTICAL TOMAHAWK CRUISE MISSILES.—The Secretary of

the Navy may not enter into a contract authorized by subsection

(a) until the Secretary—

(1) determines on the basis of operational testing that

the Tactical Tomahawk Cruise Missile is effective for fleet

use; and

(2) submits notice of such determination to the congressional defense committees.

SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA

CLASS SUBMARINE PROGRAM.

(a) AUTHORITY.—The Secretary of the Navy may, in accordance

with section 2306b of title 10, United States Code, enter into a

multiyear contract, beginning with the fiscal year 2004 program

year, for procurement of Virginia-class submarines.

(b) LIMITATION.—The Secretary of the Navy may not enter

into a contract authorized by subsection (a) until—

(1) the Secretary submits to the congressional defense

committees a certification that the Secretary has made each

of the findings with respect to such contract specified in subsection (a) of section 2306b of title 10, United States Code;

and

(2) a period of 30 days has elapsed after the date of the

transmission of such certification.

(c) APPLICABILITY OF SHIPBUILDER TEAMING LAW.—Paragraphs

(2)(A), (3), and (4) of section 121(b) of the National Defense

Authorization Act for Fiscal Year 1998 (Public Law 105–85; 111
H. R. 1588—19

Stat. 1648) shall apply in the exercise of authority to enter into

a multiyear contract under subsection (a).

SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR E–2C AIRCRAFT

PROGRAM.

(a) AIRCRAFT.—The Secretary of the Navy may, in accordance

with section 2306b of title 10, United States Code, enter into a

multiyear contract, beginning with the fiscal year 2004 program

year, for procurement of E–2C and TE–2C aircraft.

(b) ENGINES.—The Secretary of the Navy may, in accordance

with section 2306b of title 10, United States Code, enter into a

multiyear contract, beginning with the fiscal year 2004 program

year, for procurement of engines for aircraft in the E–2C or TE– 2C configuration.

(c) LIMITATION ON TERM OF CONTRACTS.—Notwithstanding subsection (k) of section 2306b of title 10, United States Code, a

contract under this section may not be for a period in excess

of four program years.

SEC. 125. MULTIYEAR PROCUREMENT AUTHORITY FOR PHALANX

CLOSE IN WEAPON SYSTEM PROGRAM.

The Secretary of the Navy may, in accordance with section

2306b of title 10, United States Code, enter into a multiyear contract, beginning with the fiscal year 2004 program year, for procurement for the Phalanx Close In Weapon System program, Block

1B.

SEC. 126. PILOT PROGRAM FOR FLEXIBLE FUNDING OF CRUISER

CONVERSIONS AND OVERHAULS.

(a) ESTABLISHMENT.—The Secretary of the Navy may carry

out a pilot program of flexible funding of conversions and overhauls

of cruisers of the Navy in accordance with this section.

(b) AUTHORITY.—Under the pilot program, the Secretary may,

subject to subsection (d), transfer amounts described in subsection

(c) to the appropriation for the Navy for procurement for shipbuilding and conversion for any fiscal year to continue to provide

funds for any conversion or overhaul of a cruiser of the Navy

for which funds were initially provided from the appropriation

to which transferred.

(c) FUNDS AVAILABLE FOR TRANSFER.—The amounts available

for transfer under this section are amounts appropriated to the

Navy for any fiscal year after fiscal year 2003 and before fiscal

year 2013 for the following purposes:

(1) For procurement, as follows:

(A) For shipbuilding and conversion.

(B) For weapons procurement.

(C) For other procurement.

(2) For operation and maintenance.

(d) LIMITATIONS.—(1) A transfer may be made with respect

to a cruiser under this section only to meet either (or both) of

the following requirements:

(A) An increase in the size of the workload for conversion

or overhaul to meet existing requirements for the cruiser.

(B) A new conversion or overhaul requirement resulting

from a revision of the original baseline conversion or overhaul

program for the cruiser.

(2) A transfer may not be made under this section before

the date that is 30 days after the date on which the Secretary
H. R. 1588—20

of the Navy transmits to the congressional defense committees

a written notification of the intended transfer. The notification

shall include the following matters:

(A) The purpose of the transfer.

(B) The amounts to be transferred.

(C) Each account from which the funds are to be transferred.

(D) Each program, project, or activity from which the funds

are to be transferred.

(E) Each account to which the funds are to be transferred.

(F) A discussion of the implications of the transfer for

the total cost of the cruiser conversion or overhaul program

for which the transfer is to be made.

(e) MERGER OF FUNDS.—Amounts transferred to an appropriation with respect to the conversion or overhaul of a cruiser under

this section shall be credited to and merged with other funds

in the appropriation to which transferred and shall be available

for the conversion or overhaul of such cruiser for the same period

as the appropriation to which transferred.

(f) RELATIONSHIP TO OTHER TRANSFER AUTHORITY.—The

authority to transfer funds under this section is in addition to

any other authority provided by law to transfer appropriated funds

and is not subject to any restriction, limitation, or procedure that

is applicable to the exercise of any such other authority.

(g) FINAL REPORT.—Not later than October 1, 2011, the Secretary of the Navy shall submit to the congressional defense committees a report containing the Secretary’s evaluation of the efficacy

of the authority provided under this section.

(h) TERMINATION OF PROGRAM.—No transfer may be made

under this section after September 30, 2012.

Subtitle D—Air Force Programs

SEC. 131. ELIMINATION OF QUANTITY LIMITATIONS ON MULTIYEAR

PROCUREMENT AUTHORITY FOR C–130J AIRCRAFT.

Section 131(a) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2475)

is amended by striking ‘‘up to 40 C–130J aircraft in the CC–

130J configuration and up to 24 C–130J aircraft in the KC–130J

configuration’’ and inserting ‘‘C–130J aircraft in the CC–130J and

KC–130J configurations’’.

SEC. 132. LIMITATION ON RETIRING C–5 AIRCRAFT.

(a) LIMITATION.—The Secretary of the Air Force may not proceed with a decision to retire C–5A aircraft from the active inventory

of the Air Force in any number that would reduce the total number

of such aircraft in the active inventory below 112 until—

(1) the Air Force has modified a C–5A aircraft to the

configuration referred to as the Reliability Enhancement and

Reengining Program (RERP) configuration, as planned under

the C–5 System Development and Demonstration program as

of May 1, 2003; and

(2) the Director of Operational Test and Evaluation of

the Department of Defense—

(A) conducts an operational evaluation of that aircraft,

as so modified; and
H. R. 1588—21

(B) provides to the Secretary of Defense and the

congressional defense committees an operational assessment.

(b) OPERATIONAL EVALUATION.—An operational evaluation for

purposes of paragraph (2)(A) of subsection (a) is an evaluation,

conducted during operational testing and evaluation of the aircraft,

as so modified, of the performance of the aircraft with respect

to reliability, maintainability, and availability and with respect

to critical operational issues.

(c) OPERATIONAL ASSESSMENT.—An operational assessment for

purposes of paragraph (2)(B) of subsection (a) is an operational

assessment of the program to modify C–5A aircraft to the configuration referred to in subsection (a)(1) regarding both overall suitability

and deficiencies of the program to improve performance of the

C–5A aircraft relative to requirements and specifications for reliability, maintainability, and availability of that aircraft as in effect

on May 1, 2003.

SEC. 133. LIMITATION ON OBLIGATION OF FUNDS FOR PROCUREMENT

OF F/A–22 AIRCRAFT.

(a) LIMITATION.—Of the amount appropriated for fiscal year

2004 for procurement of F/A–22 aircraft, $136,000,000 may not

be obligated until the Under Secretary of Defense for Acquisition,

Technology, and Logistics submits to the congressional defense

committees the Under Secretary’s certification that— (1) the five aircraft designated to participate in the initial

operational test and evaluation program for the F/A–22 aircraft,

plus the avionics software test aircraft, have each been

equipped with the avionics software operational flight program

that is configured for initial operational test and evaluation;

and

(2) before the commencement of that initial operational

test and evaluation program, the six aircraft specified in paragraph (1) demonstrate, on average, a mean time between covered avionics anomalies of at least five hours.

(c) COVERED AVIONICS ANOMALIES.—For purposes of subsection

(a), the term ‘‘covered avionics anomalies’’ means any of the following:

(1) A software event referred to as a Type 1 failure.

(2) A software event referred to as a Type 2 failure.

(3) A hardware event referred to as a Type 5 failure.

(c) CONTINGENCY WAIVER AUTHORITY.—If the Under Secretary

notifies the Secretary of Defense that the Under Secretary is unable

to make the certification described in subsection (a), the Secretary

may waive the limitation under that subsection. Upon making

such a waiver— (1) the Secretary of Defense shall notify the congressional

defense committees of the waiver and of the reasons therefor;

and

(2) the funds described in subsection (a) may then be obligated, by reason of such waiver, after the end of the 30-

day period beginning on the date on which the Secretary’s

notification is received by those committees.

SEC. 134. AIRCRAFT FOR PERFORMANCE OF AERIAL REFUELING MISSION.

(a) RESTRICTION ON RETIREMENT OF KC–135E AIRCRAFT.—The

Secretary of the Air Force shall ensure that the number of KC–
H. R. 1588—22

135E aircraft of the Air Force that are retired in fiscal year 2004,

if any, does not exceed 12 such aircraft.

(b) REQUIRED ANALYSIS.—Not later than March 1, 2004, the

Secretary of the Air Force shall submit to the congressional defense

committees an analysis of alternatives for meeting the aerial

refueling requirements that the Air Force has the mission to meet.

The Secretary shall provide for the analysis to be performed by

a federally funded research and development center or another

entity independent of the Department of Defense.

SEC. 135. PROCUREMENT OF TANKER AIRCRAFT.

(a) LEASED AIRCRAFT.—The Secretary of the Air Force may

lease no more than 20 tanker aircraft under the multiyear aircraft

lease pilot program referred to in subsection (d).

(b) MULTIYEAR PROCUREMENT AUTHORITY.—(1) Beginning with

the fiscal year 2004 program year, the Secretary of the Air Force

may, in accordance with section 2306b of title 10, United States

Code, enter into a multiyear contract for the purchase of tanker

aircraft necessary to meet the requirements of the Air Force for

which leasing of tanker aircraft is provided for under the multiyear

aircraft lease pilot program but for which the number of tanker

aircraft leased under the authority of subsection (a) is insufficient.

(2) The total number of tanker aircraft purchased through

a multiyear contract under this subsection may not exceed 80.

(3) Notwithstanding subsection (k) of section 2306b of title

10, United States Code, a contract under this subsection may be

for any period not in excess of 10 program years.

(4) A multiyear contract under this subsection may be initiated

or continued for any fiscal year for which sufficient funds are

available to pay the costs of such contract for that fiscal year,

without regard to whether funds are available to pay the costs

of such contract for any subsequent fiscal year. Such contract shall

provide, however, that performance under the contract during the

subsequent year or years of the contract is contingent upon the

appropriation of funds and shall also provide for a cancellation

payment to be made to the contractor if such appropriations are

not made.

(c) STUDY OF LONG-TERM TANKER AIRCRAFT MAINTENANCE AND

TRAINING REQUIREMENTS.—(1) The Secretary of Defense shall carry

out a study to identify alternative means for meeting the longterm requirements of the Air Force for—

(A) the maintenance of tanker aircraft leased under the

multiyear aircraft lease pilot program or purchased under subsection (b); and

(B) training in the operation of tanker aircraft leased under

the multiyear aircraft lease pilot program or purchased under

subsection (b).

(2) Not later than April 1, 2004, the Secretary of Defense

shall submit a report on the results of the study to the congressional

defense committees.

(d) MULTIYEAR AIRCRAFT LEASE PILOT PROGRAM DEFINED.—

In this section, the term ‘‘multiyear aircraft lease pilot program’’ means the aerial refueling aircraft program authorized under section 8159 of the Department of Defense Appropriations Act, 2002

(division A of Public Law 107–117; 115 Stat. 2284).

(e) SENSE OF CONGRESS.—It is the sense of Congress that,

in budgeting for a program to acquire new tanker aircraft for
H. R. 1588—23

the Air Force, the President should ensure that sufficient budgetary

resources are provided to the Department of Defense to fully execute

the program and to further ensure that all other critical defense

programs are fully and properly funded.

TITLE II—RESEARCH, DEVELOPMENT,

TEST, AND EVALUATION

Subtitle A—Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for defense science and technology.

Subtitle B—Program Requirements, Restrictions, and Limitations

Sec. 211. Collaborative program for development of electromagnetic gun technology.

Sec. 212. Leadership and duties of Department of Defense Test Resource Management Center.

Sec. 213. Development of the Joint Tactical Radio System.

Sec. 214. Future Combat Systems.

Sec. 215. Extension of reporting requirement for RAH–66 Comanche aircraft program. Sec. 216. Studies of fleet platform architectures for the Navy.

Subtitle C—Ballistic Missile Defense

Sec. 221. Enhanced flexibility for ballistic missile defense systems.

Sec. 222. Fielding of ballistic missile defense capabilities.

Sec. 223. Oversight of procurement, performance criteria, and operational test

plans for ballistic missile defense programs. Sec. 224. Renewal of authority to assist local communities affected by ballistic missile defense system test bed. Sec. 225. Prohibition on use of funds for nuclear-armed interceptors in missile defense systems. Sec. 226. Follow-on research, development, test, and evaluation related to system

improvements for missile defense programs transferred to military departments.

Subtitle D—Other Matters

Sec. 231. Global Research Watch program in the Office of the Director of Defense

Research and Engineering. Sec. 232. Defense Advanced Research Projects Agency biennial strategic plan.

Sec. 233. Enhancement of authority of Secretary of Defense to support science,

mathematics, engineering, and technology education. Sec. 234. Department of Defense program to expand high-speed, high-bandwidth

capabilities for network-centric operations. Sec. 235. Blue forces tracking initiative.

Subtitle A—Authorization of

Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year

2004 for the use of the Department of Defense for research, development, test, and evaluation as follows:

(1) For the Army, $9,544,833,000.

(2) For the Navy, $14,845,503,000.

(3) For the Air Force, $20,555,667,000.

(4) For Defense-wide activities, $18,438,718,000, of which

$286,661,000 is authorized for the Director of Operational Test

and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

(a) FISCAL YEAR 2004.—Of the amounts authorized to be appro- priated by section 201, $11,029,557,000 shall be available for the
H. R. 1588—24

Defense Science and Technology Program, including basic research,

applied research, and advanced technology development projects.

(b) BASIC RESEARCH, APPLIED RESEARCH, AND ADVANCED TECHNOLOGY DEVELOPMENT DEFINED.—For purposes of this section, the

term ‘‘basic research, applied research, and advanced technology

development’’ means work funded in program elements for defense

research and development under Department of Defense category

6.1, 6.2, or 6.3.

Subtitle B—Program Requirements,

Restrictions, and Limitations

SEC. 211. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF

ELECTROMAGNETIC GUN TECHNOLOGY.

(a) PROGRAM REQUIRED.—The Secretary of Defense shall establish and carry out a collaborative program for evaluation and demonstration of advanced technologies and concepts for advanced gun

systems that use electromagnetic propulsion for direct and indirect

fire applications.

(b) DESCRIPTION OF PROGRAM.—The program under subsection

(a) shall be carried out collaboratively pursuant to a memorandum

of agreement to be entered into among the Director of Defense

Research and Engineering, the Secretary of the Army, the Secretary

of the Navy, the Director of the Defense Advanced Research Projects

Agency, and other appropriate officials of the Department of

Defense, as determined by the Secretary. The program shall include

the following activities:

(1) Identification of technical objectives, quantified technical barriers, and enabling technologies associated with

development of the objective electromagnetic gun systems envisioned to meet the needs of each of the Armed Forces and,

in so doing, identification of opportunities for development of

components or subsystems common to those envisioned gun

systems.

(2) Preparation of a plan and schedule for development

of electromagnetic gun systems for military applications,

which— (A) includes the programs currently planned within

the Department of Defense;

(B) describes how enabling technologies common to

such programs are developed and utilized; and

(C) provides estimated dates for decision points, prototype demonstrations, and transitions of technologies to

acquisition programs.

(3) Identification of a strategy for the participation of

industry in the program.

(c) MATTERS INCLUDED.—The advanced technologies and concepts included under the program may include, but are not limited

to, the following:

(1) Advanced electrical power, energy storage, and

switching systems.

(2) Electromagnetic launcher materials and construction

techniques for long barrel life.

(3) Guidance and control systems for electromagnetically

launched projectiles.
H. R. 1588—25

(4) Advanced projectiles and other munitions for electromagnetic gun systems.

(5) Hypervelocity terminal effects.

(d) TRANSITION OF TECHNOLOGIES.—The Secretary of Defense

shall encourage the transition of technologies developed under the

program under subsection (a) into appropriate acquisition programs

of the military departments.

(e) REPORT.—Not later than March 31, 2004, the Director of

Defense Research and Engineering, in collaboration with the other

officials who entered into the memorandum of agreement under

subsection (b), shall submit a report to the congressional defense

committees on the implementation of the program under subsection

(a). The report shall include the following:

(1) A description of the memorandum of agreement entered

into under subsection (b).

(2) The plan and schedule required by subsection (b)(2).

(3) A description of the goals and objectives of the program.

(4) Identification of funding required for fiscal years 2004

and 2005 and for the future-years defense program to carry

out the program.

(5) A description of a plan for industry participation in

the program.

SEC. 212. LEADERSHIP AND DUTIES OF DEPARTMENT OF DEFENSE

TEST RESOURCE MANAGEMENT CENTER.

(a) AUTHORITY TO SELECT CIVILIAN EMPLOYEE AS DIRECTOR.— Subsection (b)(1) of section 196 of title 10, United States Code,

is amended— (1) by striking ‘‘on active duty. The Director’’ and inserting ‘‘on active duty or from among senior civilian officers and

employees of the Department of Defense. A commissioned officer

serving as the Director’’; and

(2) by adding at the end the following: ‘‘A civilian officer

or employee serving as the Director, while so serving, has

a pay level equivalent in grade to lieutenant general.’’. (b) EXPANSION OF DUTIES OF DIRECTOR.—(1) Subsection (c)(1)(B)

of such section is amended by inserting after ‘‘Department of

Defense’’ the following: ‘‘, other than budgets and expenditures

for activities described in section 139(i) of this title’’. (2) Subsection (e)(1) of such section is amended— (A) by striking ‘‘, the Director of Operational Test and

Evaluation,’’; and

(B) by striking ‘‘, Director’s, or head’s’’ and inserting ‘‘or

Defense Agency head’s’’.

SEC. 213. DEVELOPMENT OF THE JOINT TACTICAL RADIO SYSTEM.

(a) PLAN FOR MANAGEMENT OF DEVELOPMENT PROGRAM.—The

Secretary of Defense shall develop a plan for implementation of

management of the development program for the Joint Tactical

Radio System under a single joint program office. As part of such

plan, the Secretary shall designate an office for such purpose.

The Secretary shall include in the plan measures to ensure that—

(1) the Joint Tactical Radio Program has a program

management structure that provides strong and effective joint

management;

(2) the head of the joint program office has sufficient control

and authority to properly execute that development program;

and
H. R. 1588—26

(3) effective processes are established to resolve disputes

between military departments with respect to that program.

(b) PROGRAM DEVELOPMENT.—The Secretary shall provide that,

subject to the authority, direction, and control of the Secretary,

the head of the joint program office designated under subsection

(a) shall—

(1) establish and control the systems engineering and the

performance and design specifications for the Joint Tactical

Radio System;

(2) establish and control the standards for development

of software and equipment for that system; and

(3) establish and control the standards for operation of

that system.

(c) PROGRAM REQUIREMENTS.—The Secretary shall ensure—

(1) that there is developed and implemented a single, unified concept of operations for all users of the Joint Tactical

Radio System; and

(2) that the responsibility for the coordination of the operational requirements for that system is vested in the Chairman

of the Joint Chiefs of Staff, with the participation of the Joint

Tactical Radio System program office.

(d) REPORT ON PLAN.—The Secretary shall submit the plan

required by subsection (a) to the Committees on Armed Services

of the Senate and House of Representatives not later than February

1, 2004.

(e) IMPLEMENTATION DEADLINE.—The Secretary shall implement the plan required by subsection (a) not later than December

1, 2004.

SEC. 214. FUTURE COMBAT SYSTEMS.

(a) LIMITATION.—Of the funds authorized to be appropriated

under section 201(1) for development and demonstration of systems

for the Future Combat Systems program, $170,000,000 may not

be obligated or expended until 30 days after the Secretary of the

Army submits to the congressional defense committees a report

on such program. The report shall include the following:

(1) The findings and conclusions of—

(A) the review of the Future Combat Systems program

carried out by the independent panel at the direction of

the Secretary of Defense; and

(B) the milestone B review of the Future Combat Systems program carried out by the Defense Acquisition Board.

(2) For each of the three projects requested under program

element 64645A, a breakdown of the costs of that project for

fiscal year 2004 at a level of detail sufficient to justify the

amount requested for that project in the budget submitted

by the President.

(b) SEPARATE PROGRAM ELEMENTS.—For fiscal years beginning

with 2004, the Secretary of Defense shall ensure that the following

matters (referred to as projects under program element 64645A

in the budget justification materials submitted in support of the

President’s budget for fiscal year 2004) are each planned, programmed, and budgeted for as a separate, dedicated program element:

(1) The Future Combat Systems project.

(2) The Networked Fires System Technology project.

(3) The Objective Force Indirect Fires project.
H. R. 1588—27

(c) ANNUAL REPORT.—At the same time that the President

submits the budget for a fiscal year to Congress under section

1105(a) of title 31, United States Code, the Secretary of the Army

shall submit to the congressional defense committees a report on

the programs and projects comprising the Future Combat Systems

program. The report shall include— (1) for each such program or project, a breakdown of the

costs of that program or project for that fiscal year at a level

of detail sufficient to justify the amount requested for that

program or project in that budget; and

(2) any updated analysis of alternatives for the program.

SEC. 215. EXTENSION OF REPORTING REQUIREMENT FOR RAH–66

COMANCHE AIRCRAFT PROGRAM.

Section 211 of the Bob Stump National Defense Authorization

Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2479)

is amended in subsection (a) by inserting ‘‘and fiscal year 2004’’ after ‘‘fiscal year 2003’’.

SEC. 216. STUDIES OF FLEET PLATFORM ARCHITECTURES FOR THE

NAVY.

(a) INDEPENDENT STUDIES.—(1) The Secretary of Defense shall

provide for the performance of two independent studies of alternative future fleet platform architectures for the Navy.

(2) The Secretary shall forward the results of each study to

the congressional defense committees not later than January 15,

2005.

(3) Each such study shall be submitted both in unclassified,

and to the extent necessary, in classified versions.

(b) ENTITIES TO PERFORM STUDIES.—The Secretary of Defense

shall provide for the studies under subsection (a) to be performed

as follows:

(1) One study shall be performed by a federally funded

research and development center.

(2) The other study shall be performed by the Office of

Force Transformation within the Office of the Secretary of

Defense and shall include participants from (A) the Office of

Net Assessment within the Office of the Secretary of Defense,

(B) the Department of the Navy, and (C) the Joint Staff.

(c) PERFORMANCE OF STUDIES.—(1) The Secretary of Defense

shall require the two studies under this section to be conducted

independently of each other.

(2) In performing a study under this section, the organization

performing the study, while being aware of the current and projected fleet platform architectures, shall not be limited by the current or projected fleet platform architecture and shall consider

the following:

(A) The National Security Strategy of the United States.

(B) Potential future threats to the United States and to

United States naval forces.

(C) The traditional roles and missions of United States

naval forces.

(D) Alternative roles and missions for United States naval

forces.

(E) Other government and non-government analyses that

would contribute to the study through variations in study

assumptions or potential scenarios.

(F) The role of evolving technology on future naval forces.
H. R. 1588—28

(G) Opportunities for reduced manning and unmanned

ships and vehicles in future naval forces.

(d) STUDY RESULTS.—The results of each study under this

section shall—

(1) present the alternative fleet platform architectures

considered, with assumptions and possible scenarios identified

for each;

(2) provide for presentation of minority views of study

participants; and

(3) for the recommended architecture, provide—

(A) the numbers, kinds, and sizes of vessels, the numbers and types of associated manned and unmanned

vehicles, and the basic capabilities of each of those platforms; and

(B) other information needed to understand that

architecture in basic form and the supporting analysis.

Subtitle C—Ballistic Missile Defense

SEC. 221. ENHANCED FLEXIBILITY FOR BALLISTIC MISSILE DEFENSE

SYSTEMS.

(a) FLEXIBILITY FOR SPECIFICATION OF PROGRAM ELEMENTS.—

Subsection (a) of section 223 of title 10, United States Code, is

amended—

(1) by inserting ‘‘BY PRESIDENT’’ in the subsection heading

after ‘‘SPECIFIED’’;

(2) by striking ‘‘program elements governing functional

areas as follows:’’ and inserting ‘‘such program elements as

the President may specify.’’; and

(3) by striking paragraphs (1) through (6).

(b) CONFORMING AMENDMENTS.—(1) Subsection (c) of such section is amended by striking ‘‘for each program element specified

in subsection (a)’’ and inserting ‘‘for a fiscal year for any program

element specified for that fiscal year pursuant to subsection (a)’’.

(2) Subsection (c)(3) of section 232 of the National Defense

Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115

Stat. 1037; 10 U.S.C. 2431 note) is amended by striking ‘‘each

functional area’’ and all that follows through ‘‘subsection (b),’’ and

inserting ‘‘each then-current program element for ballistic missile

defense systems in effect pursuant to subsection (a) or (b)’’.

(c) AMENDMENTS RELATING TO CHANGES IN ACQUISITION TERMINOLOGY.—(1) Section 223(b)(2) of title 10, United States Code, is

amended by striking ‘‘means the development phase whose’’ and

inserting ‘‘means the period in the course of an acquisition program

during which the’’.

(2) Subsection (d)(1) of section 232 of the National Defense

Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115

Stat. 1037; 10 U.S.C. 2431 note) is amended by striking ‘‘, as

added by subsection (b)’’.

SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

Funds authorized to be appropriated under section 201(4) for

the Missile Defense Agency may be used for the development and

fielding of an initial set of ballistic missile defense capabilities.
H. R. 1588—29

SEC. 223. OVERSIGHT OF PROCUREMENT, PERFORMANCE CRITERIA,

AND OPERATIONAL TEST PLANS FOR BALLISTIC MISSILE

DEFENSE PROGRAMS.

(a) PROCUREMENT.—(1) Chapter 9 of title 10, United States

Code, is amended by inserting after section 223 the following new

section:

‘‘§ 223a. Ballistic missile defense programs: procurement

‘‘(a) BUDGET JUSTIFICATION MATERIALS.—In the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with

the budget of the President under section 1105(a) of title 31),

the Secretary of Defense shall specify, for each ballistic missile

defense system element for which the Missile Defense Agency is

engaged in planning for production and initial fielding, the following

information: ‘‘(1) The production rate capabilities of the production facilities planned to be used for production of that element. ‘‘(2) The potential date of availability of that element for

initial fielding. ‘‘(3) The estimated date on which the administration of

the acquisition of that element is to be transferred from the

Director of the Missile Defense Agency to the Secretary of

a military department.

‘‘(b) FUTURE-YEARS DEFENSE PROGRAM.—The Secretary of

Defense shall include in the future-years defense program submitted

to Congress each year under section 221 of this title an estimate

of the amount necessary for procurement for each ballistic missile

defense system element, together with a discussion of the underlying factors and reasoning justifying the estimate.

‘‘(c) PERFORMANCE CRITERIA.—The Director of the Missile

Defense Agency shall include in the performance criteria prescribed

for planned development phases of the ballistic missile defense

system and its elements a description of the intended effectiveness

of each such phase against foreign adversary capabilities.

‘‘(d) TESTING PROGRESS.—The Director of Operational Test and

Evaluation shall make available for review by the congressional

defense committees the developmental and operational test plans

established to assess the effectiveness of the ballistic missile defense

system and its elements with respect to the performance criteria

described in subsection (c).’’. (2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 223

the following new item:

‘‘223a. Ballistic missile defense programs: procurement.’’.

(b) IMPLEMENTATION OF REQUIREMENT FOR AVAILABILITY OF

TEST PLANS.—Subsection (d) of section 223a of title 10, United

States Code, as added by subsection (a), shall be implemented

not later than March 1, 2004.

SEC. 224. RENEWAL OF AUTHORITY TO ASSIST LOCAL COMMUNITIES

AFFECTED BY BALLISTIC MISSILE DEFENSE SYSTEM

TEST BED.

Section 235(b) of the National Defense Authorization Act for

Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1041) is amended—
H. R. 1588—30

(1) in paragraph (1), by inserting ‘‘or 2004’’ after ‘‘for fiscal

year 2002’’; and

(2) by adding at the end the following new paragraph: ‘‘(3) Not later than 60 days after the date of the enactment

of the National Defense Authorization Act for Fiscal Year 2004,

the Secretary of Defense shall submit to the congressional defense

committees a report on the community assistance projects under

this subsection that are to be supported using funds referred to

in paragraph (1) for fiscal year 2004. The report shall include,

for each such project, a description of the project and an estimate

of the total cost of the project.’’.

SEC. 225. PROHIBITION ON USE OF FUNDS FOR NUCLEAR-ARMED

INTERCEPTORS IN MISSILE DEFENSE SYSTEMS.

No funds authorized to be appropriated for the Department

of Defense by this Act may be obligated or expended for research,

development, test, and evaluation, procurement, or deployment of

nuclear-armed interceptors in a missile defense system.

SEC. 226. FOLLOW-ON RESEARCH, DEVELOPMENT, TEST, AND EVALUATION RELATED TO SYSTEM IMPROVEMENTS FOR MISSILE

DEFENSE PROGRAMS TRANSFERRED TO MILITARY

DEPARTMENTS.

(a) REQUIREMENT FOR DELINEATION OF RESPONSIBILITY FOR

FOLLOW-ON RDT&E.—Subsection (e) of section 224 of title 10,

United States Code, is amended— (1) by striking ‘‘for each’’ and inserting ‘‘before a’’;

(2) by inserting ‘‘is’’ before ‘‘transferred’’;

(3) by striking ‘‘responsibility’’ and inserting ‘‘roles and

responsibilities’’; and

(4) by striking ‘‘remains with the Director’’ and inserting ‘‘are clearly delineated’’. (b) CONFORMING AMENDMENT.—Subsection (a) of such section

is amended by striking ‘‘a Department of Defense missile defense

program described in subsection (b)’’ and inserting ‘‘the integration

of a ballistic missile defense element into the overall ballistic missile

defense architecture’’.

Subtitle D—Other Matters

SEC. 231. GLOBAL RESEARCH WATCH PROGRAM IN THE OFFICE OF

THE DIRECTOR OF DEFENSE RESEARCH AND

ENGINEERING.

(a) PROGRAM REQUIRED.—Chapter 139 of title 10, United States

Code, is amended by inserting after section 2364 the following

new section:

‘‘§ 2365. Global Research Watch Program

‘‘(a) PROGRAM.—The Director of Defense Research and

Engineering shall carry out a Global Research Watch program

in accordance with this section.

‘‘(b) PROGRAM GOALS.—The goals of the program are as follows:

‘‘(1) To monitor and analyze the basic and applied research

activities and capabilities of foreign nations in areas of military

interest, including allies and competitors.

‘‘(2) To provide standards for comparison and comparative

analysis of research capabilities of foreign nations in relation

to the research capabilities of the United States.
H. R. 1588—31

‘‘(3) To assist Congress and Department of Defense officials

in making investment decisions for research in technical areas

where the United States may not be the global leader. ‘‘(4) To identify areas where significant opportunities for

cooperative research may exist. ‘‘(5) To coordinate and promote the international cooperative research and analysis activities of each of the armed forces

and Defense Agencies. ‘‘(6) To establish and maintain an electronic database on

international research capabilities, comparative assessments of

capabilities, cooperative research opportunities, and ongoing

cooperative programs.

‘‘(c) FOCUS OF PROGRAM.—The program shall be focused on

research and technologies at a technical maturity level equivalent

to Department of Defense basic and applied research programs. ‘‘(d) COORDINATION.—(1) The Director shall coordinate the program with the international cooperation and analysis activities

of the military departments and Defense Agencies. ‘‘(2) The Secretaries of the military departments and the directors of the Defense Agencies shall provide the Director of Defense

Research and Engineering such assistance as the Director may

require for purposes of the program. ‘‘(e) CLASSIFICATION OF DATABASE INFORMATION.—Information

in electronic databases of the Global Research Watch program shall

be maintained in unclassified form and, as determined necessary

by the Director, in classified form in such databases. ‘‘(f) TERMINATION.—The requirement to carry out the program

under this section shall terminate on September 30, 2006.’’. (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after section 2364

the following new item:

‘‘2365. Global Research Watch Program.’’.

SEC. 232. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY

BIENNIAL STRATEGIC PLAN.

(a) REQUIREMENT FOR PLAN.—Chapter 139 of title 10, United

States Code, is amended by inserting after section 2351 the following new section:

‘‘§ 2352. Defense Advanced Research Projects Agency:

biennial strategic plan

‘‘(a) REQUIREMENT FOR STRATEGIC PLAN.—Every other year,

and in time for submission to Congress under subsection (c), the

Director of the Defense Advanced Research Projects Agency shall

prepare a strategic plan for the activities of that agency.

‘‘(b) CONTENTS.—The strategic plan required by subsection (a)

shall include the following matters:

‘‘(1) The long-term strategic goals of that agency.

‘‘(2) Identification of the research programs of that agency

that support—

‘‘(A) achievement of those strategic goals; and

‘‘(B) exploitation of opportunities that hold the potential for yielding significant military benefits.

‘‘(3) The connection of the activities and programs of that

agency to activities and missions of the armed forces.

‘‘(4) A technology transition strategy for the programs of

that agency.
H. R. 1588—32

‘‘(5) A description of the policies of that agency on the

management, organization, and personnel of that agency.

‘‘(c) SUBMISSION OF PLAN TO CONGRESS.—The Secretary of

Defense shall submit to Congress the strategic plan most recently

prepared under subsection (a) at the same time that the President

submits to Congress the budget for an even-numbered fiscal year

under section 1105(a) of title 31.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 2351 the following new item:

‘‘2352. Defense Advanced Research Projects Agency: biennial strategic plan.’’.

SEC. 233. ENHANCEMENT OF AUTHORITY OF SECRETARY OF DEFENSE

TO SUPPORT SCIENCE, MATHEMATICS, ENGINEERING,

AND TECHNOLOGY EDUCATION.

Section 2192 of title 10, United States Code, is amended—

(1) by redesignating subsection (b) as subsection (c); and

(2) by inserting after subsection (a) the following new subsection (b):

‘‘(b)(1) In furtherance of the authority of the Secretary of

Defense under any provision of this chapter or any other provision

of law to support educational programs in science, mathematics,

engineering, and technology, the Secretary of Defense may, unless

otherwise specified in such provision—

‘‘(A) enter into contracts and cooperative agreements with

eligible entities;

‘‘(B) make grants of financial assistance to eligible entities;

‘‘(C) provide cash awards and other items to eligible entities;

‘‘(D) accept voluntary services from eligible entities; and

‘‘(E) support national competition judging, other educational event activities, and associated award ceremonies in

connection with these educational programs.

‘‘(2) In this subsection:

‘‘(A) The term ‘eligible entity’ includes a department or

agency of the Federal Government, a State, a political subdivision of a State, an individual, and a not-for-profit or other

organization in the private sector.

‘‘(B) The term ‘State’ means any State of the United States,

the District of Columbia, the Commonwealth of Puerto Rico,

Guam, the United States Virgin Islands, the Commonwealth

of the Northern Mariana Islands, American Samoa, and any

other territory or possession of the United States.’’.

SEC. 234. DEPARTMENT OF DEFENSE PROGRAM TO EXPAND HIGHSPEED, HIGH-BANDWIDTH CAPABILITIES FOR NETWORKCENTRIC OPERATIONS.

(a) IN GENERAL.—The Secretary of Defense shall carry out

a program of research and development to promote the development

of high-speed, high-bandwidth communications capabilities for support of network-centric operations by the Armed Forces.

(b) PURPOSES.—The purposes of the program required by subsection (a) are as follows:

(1) To accelerate the development and fielding by the

Armed Forces of network-centric operational capabilities

(including expanded use of unmanned vehicles, satellite communications, and sensors) through the promotion of research and
H. R. 1588—33

development, and the focused coordination of programs, to

achieve high-speed, high-bandwidth connectivity to military

assets.

(2) To provide for the development of equipment and technologies for military high-speed, high-bandwidth communications capabilities for support of network-centric operations.

(c) DESCRIPTION OF PROGRAM.—In carrying out the program

of research and development required by subsection (a), the Secretary shall—

(1) identify areas of advanced wireless communications in

which research and development, or the use of emerging technologies, has significant potential to improve the performance,

efficiency, cost, and flexibility of advanced communications systems for support of network-centric operations;

(2) develop a coordinated plan for research and development

on—

(A) improved spectrum access through spectrum-efficient communications for support of network-centric operations;

(B) high-speed, high-bandwidth communications;

(C) networks, including complex ad hoc adaptive network structures;

(D) communications devices, including efficient

receivers and transmitters;

(E) computer software and wireless communication

applications, including robust security and encryption; and

(F) any other matters that the Secretary considers

appropriate for the purposes described in subsection (b);

(3) ensure joint research and development, and promote

joint systems acquisition and deployment, among the military

departments and defense agencies, including the development

of common cross-service technology requirements and doctrine,

so as to enhance interoperability among the military services

and defense agencies;

(4) conduct joint experimentation among the Armed Forces,

and coordinate with the Joint Forces Command, on experimentation to support the development of network-centric warfare

capabilities from the operational to the small unit level in

the Armed Forces;

(5) consult with other Federal entities and with private

industry to develop cooperative research and development

efforts, to the extent that such efforts are practicable.

(d) REPORT.—(1) The Secretary shall submit to the congressional defense committees, together with the budget justification

materials submitted to Congress in support of the Department

of Defense budget for fiscal year 2006 (as submitted with the

budget of the President under section 1105(a) of title 31, United

States Code), a report on the activities carried out under this

section through the date on which the report is submitted.

(2) The report under paragraph (1) shall include the following:

(A) A description of the research and development activities

carried out under subsection (a), including the particular activities carried out under the plan required by subsection (c)(2).

(B) Current and proposed funding for the particular activities carried out under that plan, as set forth in each of subparagraphs (A) through (F) of subsection (c)(2).
H. R. 1588—34

(C) A description of the joint research and development

activities required by subsection (c)(3).

(D) A description of the joint experimentation activities

required by subsection (c)(4).

(E) An analysis of the effects on recent military operations

of limitations on communications bandwidth and access to radio

frequency spectrum.

(F) An assessment of the effect of additional resources

on the ability to achieve the purposes described in subsection

(b).

(G) Such recommendations for additional activities under

this section as the Secretary considers appropriate to meet

the purposes described in subsection (b).

SEC. 235. BLUE FORCES TRACKING INITIATIVE.

(a) GOAL.—It shall be a goal of the Department of Defense

to coordinate fully the various efforts of the Chairman of the Joint

Chiefs of Staff, the commanders of the combatant commands, and

the Secretaries of the military departments to develop an effective

system for tracking of United States and other friendly forces

(known as ‘‘blue forces’’) during combat operations.

(b) JOINT BLUE FORCES TRACKING EXPERIMENT.—(1) The Secretary of Defense, acting through the commander of the United

States Joint Forces Command, shall carry out a joint experiment

during fiscal year 2004 to demonstrate and evaluate available joint

blue forces tracking technologies.

(2) The objectives of the experiment under paragraph (1) are

as follows:

(A) To explore various options for tracking United States

and other friendly forces during combat operations.

(B) To determine an optimal, achievable, and upgradable

solution for the development, acquisition, and fielding of a

system for tracking all United States military forces that is

coordinated and interoperable and also accommodates the

participation of military forces of allied nations with United

States forces in combat operations.

(c) REPORT.—Not later than 60 days after the conclusion of

the experiment under subsection (b), but not later than December

1, 2004, the Secretary shall submit to the congressional defense

committees a report on the results of the experiment, together

with a comprehensive plan for the development, acquisition, and

fielding of a functional, near real-time blue forces tracking system.

TITLE III—OPERATION AND

MAINTENANCE

Subtitle A—Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Other Department of Defense programs.

Subtitle B—Environmental Provisions

Sec. 311. Reauthorization and modification of title I of Sikes Act.

Sec. 312. Clarification of Department of Defense response to environmental emergencies. Sec. 313. Repeal of authority to use environmental restoration account funds for relocation of a contaminated facility. Sec. 314. Authorization for Department of Defense participation in wetland mitigation banks.
H. R. 1588—35

Sec. 315. Inclusion of environmental response equipment and services in Navy definitions of salvage facilities and salvage services.

Sec. 316. Repeal of model program for base closure environmental restoration.

Sec. 317. Requirements for restoration advisory boards and exemption from Federal

Advisory Committee Act.

Sec. 318. Military readiness and conservation of protected species.

Sec. 319. Military readiness and marine mammal protection.

Sec. 320. Report regarding impact of civilian community encroachment and certain

legal requirements on military installations and ranges and plan to address encroachment.

Sec. 321. Cooperative water use management related to Fort Huachuca, Arizona,

and Sierra Vista subwatershed.

Sec. 322. Task force on resolution of conflict between military training and endangered species protection at Barry M. Goldwater Range, Arizona.

Sec. 323. Public health assessment of exposure to perchlorate.

Sec. 324. Comptroller General review of Arctic Military Environmental Cooperation

program.

Subtitle C—Workplace and Depot Issues

Sec. 331. Exemption of certain firefighting service contracts from prohibition on

contracts for performance of firefighting functions.

Sec. 332. Technical amendment relating to closure of Sacramento Army Depot,

California.

Sec. 333. Exception to competition requirement for depot-level maintenance and repair workloads performed by depot-level activities.

Sec. 334. Resources-based schedules for completion of public-private competitions

for performance of Department of Defense functions.

Sec. 335. Delayed implementation of revised Office of Management and Budget Circular A–76 by Department of Defense pending report.

Sec. 336. Pilot program for best-value source selection for performance of information technology services.

Sec. 337. High-performing organization business process reengineering pilot program.

Sec. 338. Naval Aviation Depots multi-trades demonstration project.

Subtitle D—Other Matters

Sec. 341. Cataloging and standardization for defense supply management.

Sec. 342. Sale of Defense Information Systems Agency services to contractors performing the Navy-Marine Corps Intranet contract.

Sec. 343. Permanent authority for purchase of certain municipal services at installations in Monterey County, California.

Sec. 344. Department of Defense telecommunications benefit.

Sec. 345. Independent assessment of material condition of the KC–135 aerial refueling fleet.

Subtitle A—Authorization of

Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year

2004 for the use of the Armed Forces and other activities and

agencies of the Department of Defense for expenses, not otherwise

provided for, for operation and maintenance, in amounts as follows: (1) For the Army, $24,627,037,000.

(2) For the Navy, $27,975,559,000.

(3) For the Marine Corps, $3,426,056,000.

(4) For the Air Force, $26,089,670,000.

(5) For Defense-wide activities, $16,243,157,000.

(6) For the Army Reserve, $1,966,009,000.

(7) For the Naval Reserve, $1,171,921,000.

(8) For the Marine Corps Reserve, $173,952,000.

(9) For the Air Force Reserve, $2,179,188,000.

(10) For the Army National Guard, $4,256,331,000.

(11) For the Air National Guard, $4,406,146,000.
H. R. 1588—36

(12) For the United States Court of Appeals for the Armed

Forces, $10,333,000.

(13) For Environmental Restoration, Army, $396,018,000.

(14) For Environmental Restoration, Navy, $256,153,000.

(15) For Environmental Restoration, Air Force,

$384,307,000.

(16) For Environmental Restoration, Defense-wide,

$24,081,000.

(17) For Environmental Restoration, Formerly Used

Defense Sites, $252,619,000.

(18) For Overseas Humanitarian, Disaster, and Civic Aid

programs, $59,000,000.

(19) For Cooperative Threat Reduction programs,

$450,800,000.

(20) Overseas Contingencies Program, $5,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year

2004 for the use of the Armed Forces and other activities and

agencies of the Department of Defense for providing capital for

working capital and revolving funds in amounts as follows:

(1) For the Defense Working Capital Funds, $632,261,000.

(2) For the National Defense Sealift Fund, $1,062,762,000.

(3) For the Defense Commissary Agency Working Capital

Fund, $1,089,246,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

(a) DEFENSE HEALTH PROGRAM.—Funds are hereby authorized

to be appropriated for the Department of Defense for fiscal year

2004 for expenses, not otherwise provided for, for the Defense

Health Program, $15,401,509,000, of which—

(1) $15,007,887,000 is for Operation and Maintenance;

(2) $65,796,000 is for Research, Development, Test, and

Evaluation; and

(3) $327,826,000 is for Procurement.

(b) CHEMICAL AGENTS AND MUNITIONS DESTRUCTION,

DEFENSE.—(1) Funds are hereby authorized to be appropriated

for the Department of Defense for fiscal year 2004 for expenses,

not otherwise provided for, for Chemical Agents and Munitions

Destruction, Defense, $1,530,261,000, of which—

(A) $1,199,168,000 is for Operation and Maintenance;

(B) $251,881,000 is for Research, Development, Test, and

Evaluation; and

(C) $79,212,000 is for Procurement.

(2) Amounts authorized to be appropriated under paragraph

(1) are authorized for—

(A) the destruction of lethal chemical agents and munitions

in accordance with section 1412 of the Department of Defense

Authorization Act, 1986 (50 U.S.C. 1521); and

(B) the destruction of chemical warfare materiel of the

United States that is not covered by section 1412 of such

Act.

(c) DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE-WIDE.—Funds are hereby authorized to be appropriated

for the Department of Defense for fiscal year 2004 for expenses,

not otherwise provided for, for Drug Interdiction and CounterDrug Activities, Defense-wide, $817,371,000.
H. R. 1588—37

(d) DEFENSE INSPECTOR GENERAL.—Funds are hereby authorized to be appropriated for the Department of Defense for fiscal

year 2004 for expenses, not otherwise provided for, for the Office

of the Inspector General of the Department of Defense,

$162,449,000, of which—

(1) $160,049,000 is for Operation and Maintenance;

(2) $2,100,000 is for Research, Development, Test, and

Evaluation; and

(3) $300,000 is for Procurement.

Subtitle B—Environmental Provisions

SEC. 311. REAUTHORIZATION AND MODIFICATION OF TITLE I OF SIKES

ACT.

(a) REAUTHORIZATION.—Section 108 of the Sikes Act (16 U.S.C.

670f) is amended by striking ‘‘fiscal years 1998 through 2003’’

each place it appears and inserting ‘‘fiscal years 2004 through

2008’’.

(b) SENSE OF CONGRESS REGARDING SECTION 107.—(1) Congress

finds the following:

(A) The Department of Defense maintains over 25,000,000

acres of valuable fish and wildlife habitat on approximately

400 military installations nationwide.

(B) These lands contain a wealth of plant and animal

life, vital wetlands for migratory birds, and nearly 300 federally

listed threatened species and endangered species.

(C) Increasingly, land surrounding military bases are being

developed with residential and commercial infrastructure that

fragments fish and wildlife habitat and decreases its ability

to support a diversity of species.

(D) Comprehensive conservation plans, such as integrated

natural resource management plans under the Sikes Act (16

U.S.C. 670 et seq.), can ensure that these ecosystem values

can be protected and enhanced while allowing these lands

to meet the needs of military operations.

(E) Section 107 of the Sikes Act (16 U.S.C. 670e–2) requires

sufficient numbers of professionally trained natural resources

management personnel and natural resources law enforcement

personnel to be available and assigned responsibility to perform

tasks necessary to carry out title I of the Sikes Act, including

the preparation and implementation of integrated natural

resource management plans.

(F) Managerial and policymaking functions performed by

Department of Defense on-site professionally trained natural

resource management personnel on military installations are

appropriate governmental functions.

(G) Professionally trained civilian biologists in permanent

Federal Government career managerial positions are essential

to oversee fish and wildlife and natural resource conservation

programs and are essential to the conservation of wildlife species on military land.

(2) It is the sense of Congress that the Secretary of Defense

should take whatever steps are necessary to ensure that section

107 of the Sikes Act (16 U.S.C. 670e–2) is fully implemented consistent with the findings made in paragraph (1).
H. R. 1588—38

(c) PILOT PROGRAM.—(1) Section 101 of the Sikes Act (16 U.S.C.

670a) is amended by adding at the end the following new subsection:

‘‘(g) PILOT PROGRAM FOR INVASIVE SPECIES MANAGEMENT FOR

MILITARY INSTALLATIONS IN GUAM.—

‘‘(1) INCLUSION OF INVASIVE SPECIES MANAGEMENT.—During

fiscal years 2004 through 2008, the Secretary of Defense shall,

to the extent practicable and conducive to military readiness,

incorporate in integrated natural resources management plans

for military installations in Guam the management, control,

and eradication of invasive species—

‘‘(A) that are not native to the ecosystem of the military

installation; and

‘‘(B) the introduction of which cause or may cause

harm to military readiness, the environment, or human

health and safety.

‘‘(2) CONSULTATION.—The Secretary of Defense shall carry

out this subsection in consultation with the Secretary of the

Interior.’’.

(2) Section 101(g) of the Sikes Act, as added by paragraph

(1), shall apply—

(A) to any integrated natural resources management plan

prepared for a military installation in Guam under section

101(a)(1) of such Act on or after the date of the enactment

of this Act; and

(B) effective March 1, 2004, to any integrated natural

resources management plan prepared for a military installation

in Guam under such section before the date of the enactment

of this Act.

SEC. 312. CLARIFICATION OF DEPARTMENT OF DEFENSE RESPONSE

TO ENVIRONMENTAL EMERGENCIES.

(a) TRANSPORTATION OF HUMANITARIAN RELIEF SUPPLIES TO

RESPOND TO ENVIRONMENTAL EMERGENCIES.—Section 402 of title

10, United States Code, is amended—

(1) by redesignating subsection (d) as subsection (e); and

(2) by inserting after subsection (c) the following new subsection (d):

‘‘(d)(1) The Secretary of Defense may use the authority provided

by subsection (a) to transport supplies intended for use to respond

to, or mitigate the effects of, an event or condition, such as an

oil spill, that threatens serious harm to the environment, but only

if other sources to provide such transportation are not readily

available.

‘‘(2) Notwithstanding subsection (a), the Secretary of Defense

may require reimbursement for costs incurred by the Department

of Defense to transport supplies under this subsection.’’.

(b) CONDITIONS ON PROVISION OF TRANSPORTATION.—Subsection

(b) of such section is amended—

(1) in paragraph (1)(C), by inserting ‘‘or entity’’ after

‘‘people’’;

(2) in paragraph (1)(E), by inserting ‘‘or use’’ after ‘‘distribution’’; and

(3) in paragraph (3), by striking ‘‘donor to ensure that

supplies to be transported under this section’’ and inserting

‘‘entity requesting the transport of supplies under this section

to ensure that the supplies’’.
H. R. 1588—39

(c) PROVISION OF DISASTER ASSISTANCE.—Section 404 of such

title is amended— (1) in subsection (a), by inserting ‘‘or serious harm to the

environment’’ after ‘‘loss of lives’’;

(2) in subsection (c)(2), by inserting ‘‘or the environment’’ after ‘‘human lives’’; and

(3) by adding at the end the following new subsection: ‘‘(e) LIMITATION ON TRANSPORTATION ASSISTANCE.—Transportation services authorized under subsection (b) may be provided

in response to a manmade or natural disaster to prevent serious

harm to the environment, when human lives are not at risk, only

if other sources to provide such transportation are not readily

available.’’. (d) PROVISION OF HUMANITARIAN ASSISTANCE.—Section 2561(a)

of such title is amended— (1) by inserting ‘‘(1)’’ before ‘‘To the extent’’; and

(2) by adding at the end the following new paragraph: ‘‘(2) The Secretary of Defense may use the authority provided

by paragraph (1) to transport supplies intended for use to respond

to, or mitigate the effects of, an event or condition, such as an

oil spill, that threatens serious harm to the environment, but only

if other sources to provide such transportation are not readily

available. The Secretary may require reimbursement for costs

incurred by the Department of Defense to transport supplies under

this paragraph.’’.

SEC. 313. REPEAL OF AUTHORITY TO USE ENVIRONMENTAL RESTORATION ACCOUNT FUNDS FOR RELOCATION OF A CONTAMINATED FACILITY.

(a) REPEAL.—Effective October 1, 2003, section 2703(c) of title

10, United States Code, is amended— (1) in paragraph (1) by striking ‘‘only—’’ and all that follows

through the period at the end and inserting ‘‘only to carry

out the environmental restoration functions of the Secretary

of Defense and the Secretaries of the military departments

under this chapter and under any other provision of law.’’;

(2) by striking paragraphs (2) and (3); and

(3) by redesignating paragraph (4) as paragraph (2) and

striking the second sentence of such paragraph.

(b) EFFECT OF REPEAL ON EXISTING AGREEMENTS.—An agreement in effect on September 30, 2003, under section 2703(c)(1)(B)

of title 10, United States Code, as in effect on that date, to pay

for the costs of permanently relocating a facility because of a release

or threatened release of hazardous substances, pollutants, or

contaminants shall remain in effect after that date, subject to

the terms of the agreement, and costs may be paid in accordance

with the terms of the agreement, notwithstanding the amendments

made by subsection (a).

SEC. 314. AUTHORIZATION FOR DEPARTMENT OF DEFENSE PARTICIPATION IN WETLAND MITIGATION BANKS.

(a) DOD PARTICIPATION.—(1) Chapter 159 of title 10, United

States Code, is amended by inserting after section 2694a the following new section:

‘‘§ 2694b. Participation in wetland mitigation banks

‘‘(a) AUTHORITY TO PARTICIPATE.—The Secretary of a military

department, and the Secretary of Defense with respect to matters
H. R. 1588—40

concerning a Defense Agency, when engaged in an authorized

activity that may or will result in the destruction of, or an adverse

impact to, a wetland, may make payments to a wetland mitigation

banking program or ‘in-lieu-fee’ mitigation sponsor approved in

accordance with the Federal Guidance for the Establishment, Use

and Operation of Mitigation Banks (60 Fed. Reg. 58605; November

28, 1995) or the Federal Guidance on the Use of In-Lieu-Fee

Arrangements for Compensatory Mitigation Under Section 404 of

the Clean Water Act and Section 10 of the Rivers and Harbors

Act (65 Fed. Reg. 66913; November 7, 2000), or any successor

administrative guidance or regulation.

‘‘(b) ALTERNATIVE TO CREATION OF WETLAND.—Participation

in a wetland mitigation banking program or consolidated user site

under subsection (a) shall be in lieu of mitigating wetland impacts

through the creation of a wetland on Federal property.

‘‘(c) TREATMENT OF PAYMENTS.—Payments made under subsection (a) to a wetland mitigation banking program or consolidated

user site may be treated as eligible project costs for military

construction.’’.

(2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 2694a

the following new item:

‘‘2694b. Participation in wetland mitigation banks.’’.

(b) MITIGATION AND MITIGATION BANKING REGULATIONS.—(1)

To ensure opportunities for Federal agency participation in mitigation banking, the Secretary of the Army, acting through the Chief

of Engineers, shall issue regulations establishing performance

standards and criteria for the use, consistent with section 404

of the Federal Water Pollution Control Act (33 U.S.C. 1344), of

on-site, off-site, and in-lieu fee mitigation and mitigation banking

as compensation for lost wetlands functions in permits issued by

the Secretary of the Army under such section. To the maximum

extent practicable, the regulatory standards and criteria shall maximize available credits and opportunities for mitigation, provide

flexibility for regional variations in wetland conditions, functions

and values, and apply equivalent standards and criteria to each

type of compensatory mitigation.

(2) Final regulations shall be issued not later than two years

after the date of the enactment of this Act.

SEC. 315. INCLUSION OF ENVIRONMENTAL RESPONSE EQUIPMENT

AND SERVICES IN NAVY DEFINITIONS OF SALVAGE

FACILITIES AND SALVAGE SERVICES.

(a) SALVAGE FACILITIES.—Section 7361 of title 10, United States

Code, is amended by adding at the end the following new subsection:

‘‘(e) SALVAGE FACILITIES DEFINED.—In this section, the term

‘salvage facilities’ includes equipment and gear utilized to prevent,

abate, or minimize damage to the environment.’’.

(b) SETTLEMENT OF CLAIMS FOR SALVAGE SERVICES.—Section

7363 of such title is amended—

(1) by inserting ‘‘(a) AUTHORITY TO SETTLE CLAIM.—’’ before

‘‘The Secretary’’; and

(2) by adding at the end the following new subsection:

‘‘(b) SALVAGE SERVICES DEFINED.—In this section, the term

‘salvage services’ includes services performed in connection with
H. R. 1588—41

a marine salvage operation that are intended to prevent, abate,

or minimize damage to the environment.’’.

SEC. 316. REPEAL OF MODEL PROGRAM FOR BASE CLOSURE ENVIRONMENTAL RESTORATION.

Section 2926 of the National Defense Authorization Act for

Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2687 note) is

repealed.

SEC. 317. REQUIREMENTS FOR RESTORATION ADVISORY BOARDS AND

EXEMPTION FROM FEDERAL ADVISORY COMMITTEE ACT.

(a) MEMBERSHIP AND MEETING REQUIREMENTS FOR RESTORATION ADVISORY BOARDS.—The Secretary of Defense shall amend

the regulations required by section 2705(d)(2) of title 10, United

States Code, relating to the establishment, characteristics, composition, and funding of restoration advisory boards to ensure that

each restoration advisory board complies with the following requirements:

(1) Each restoration advisory board shall be fairly balanced

in its membership in terms of the points of view represented

and the functions to be performed.

(2) Unless a closed or partially closed meeting is determined

to be proper in accordance with one or more of the exceptions

listed in section 552b(c) of title 5, United States Code, each

meeting of a restoration advisory board shall be—

(A) held at a reasonable time and in a manner or

place reasonably accessible to the public, including individuals with disabilities; and

(B) open to the public.

(3) Timely notice of each meeting of a restoration advisory

board shall be published in a local newspaper of general circulation.

(4) Interested persons may appear before or file statements

with a restoration advisory board, subject to such reasonable

restrictions as the Secretary may prescribe.

(5) Subject to section 552 of title 5, United States Code,

the records, reports, minutes, appendixes, working papers,

drafts, studies, agenda, or other documents that were made

available to, prepared for, or prepared by each restoration

advisory board shall be available for public inspection and

copying at a single, publicly accessible location, such as a

public library or an appropriate office of the military installation for which the restoration advisory board is established,

at least until the restoration advisory board is terminated.

(6) Detailed minutes of each meeting of each restoration

advisory board shall be kept and shall contain a record of

the persons present, a complete and accurate description of

matters discussed and conclusions reached, and copies of all

reports received, issued, or approved by the restoration advisory

board. The accuracy of the minutes of a restoration advisory

board shall be certified by the chairperson of the board.

(b) FACA EXEMPTION.—Section 2705(d)(2) of title 10, United

States Code, is amended by adding at the end the following new

subparagraph: ‘‘(C) The Federal Advisory Committee Act (5 U.S.C. App.) shall

not apply to a restoration advisory board established under this

subsection.’’.
H. R. 1588—42

SEC. 318. MILITARY READINESS AND CONSERVATION OF PROTECTED

SPECIES.

(a) LIMITATION ON DESIGNATION OF CRITICAL HABITAT.—Section

4(a)(3) of the Endangered Species Act of 1973 (16 U.S.C. 1533(a)(3))

is amended—

(1) by redesignating subparagraphs (A) and (B) as clauses

(i) and (ii), respectively;

(2) by inserting ‘‘(A)’’ after ‘‘(3)’’; and

(3) by adding at the end the following:

‘‘(B)(i) The Secretary shall not designate as critical habitat

any lands or other geographical areas owned or controlled by the

Department of Defense, or designated for its use, that are subject

to an integrated natural resources management plan prepared

under section 101 of the Sikes Act (16 U.S.C. 670a), if the Secretary

determines in writing that such plan provides a benefit to the

species for which critical habitat is proposed for designation.

‘‘(ii) Nothing in this paragraph affects the requirement to consult under section 7(a)(2) with respect to an agency action (as

that term is defined in that section).

‘‘(iii) Nothing in this paragraph affects the obligation of the

Department of Defense to comply with section 9, including the

prohibition preventing extinction and taking of endangered species

and threatened species.’’.

(b) CONSIDERATION OF EFFECTS OF DESIGNATION OF CRITICAL

HABITAT.—Section 4(b)(2) of the Endangered Species Act of 1973

(16 U.S.C. 1533(b)(2)) is amended by inserting ‘‘the impact on

national security,’’ after ‘‘the economic impact,’’.

SEC. 319. MILITARY READINESS AND MARINE MAMMAL PROTECTION.

(a) DEFINITION OF HARASSMENT FOR MILITARY READINESS

ACTIVITIES.—Section 3(18) of the Marine Mammal Protection Act

of 1972 (16 U.S.C. 1362(18)) is amended by striking subparagraphs

(B) and (C) and inserting the following new subparagraphs:

‘‘(B) In the case of a military readiness activity (as defined

in section 315(f) of Public Law 107–314; 16 U.S.C. 703 note)

or a scientific research activity conducted by or on behalf of

the Federal Government consistent with section 104(c)(3), the

term ‘harassment’ means—

‘‘(i) any act that injures or has the significant potential

to injure a marine mammal or marine mammal stock in

the wild; or

‘‘(ii) any act that disturbs or is likely to disturb a

marine mammal or marine mammal stock in the wild

by causing disruption of natural behavioral patterns,

including, but not limited to, migration, surfacing, nursing,

breeding, feeding, or sheltering, to a point where such

behavioral patterns are abandoned or significantly altered.

‘‘(C) The term ‘Level A harassment’ means harassment

described in subparagraph (A)(i) or, in the case of a military

readiness activity or scientific research activity described in

subparagraph (B), harassment described in subparagraph (B)(i).

‘‘(D) The term ‘Level B harassment’ means harassment

described in subparagraph (A)(ii) or, in the case of a military

readiness activity or scientific research activity described in

subparagraph (B), harassment described in subparagraph

(B)(ii).’’.
H. R. 1588—43

(b) EXEMPTION OF ACTIONS NECESSARY FOR NATIONAL

DEFENSE.—Section 101 of the Marine Mammal Protection Act of

1972 (16 U.S.C. 1371) is amended by inserting after subsection

(e) the following:

‘‘(f) EXEMPTION OF ACTIONS NECESSARY FOR NATIONAL

DEFENSE.—(1) The Secretary of Defense, after conferring with the

Secretary of Commerce, the Secretary of the Interior, or both,

as appropriate, may exempt any action or category of actions undertaken by the Department of Defense or its components from compliance with any requirement of this Act, if the Secretary determines

that it is necessary for national defense.

‘‘(2) An exemption granted under this subsection—

‘‘(A) subject to subparagraph (B), shall be effective for

a period specified by the Secretary of Defense; and

‘‘(B) shall not be effective for more than 2 years.

‘‘(3)(A) The Secretary of Defense may issue additional exemptions under this subsection for the same action or category of

actions, after—

‘‘(i) conferring with the Secretary of Commerce, the Secretary of the Interior, or both as appropriate; and

‘‘(ii) making a new determination that the additional

exemption is necessary for national defense.

‘‘(B) Each additional exemption under this paragraph shall

be effective for a period specified by the Secretary of Defense,

of not more than 2 years.

‘‘(4) Not later than 30 days after issuing an exemption under

paragraph (1) or an additional exemption under paragraph (3),

the Secretary of Defense shall submit to the Committee on Armed

Services of the House of Representatives and the Committee on

Armed Services of the Senate notice describing the exemption and

the reasons therefor. The notice may be provided in classified form

if the Secretary of Defense determines that use of the classified

form is necessary for reasons of national security.’’. (c) INCIDENTAL TAKINGS OF MARINE MAMMALS IN MILITARY

READINESS ACTIVITIES.—Section 101(a)(5) of the Marine Mammal

Protection Act of 1972 (16 U.S.C. 1371(a)(5)) is amended—

(1) in subparagraph (A)—

(A) by redesignating clauses (i) and (ii) and subclauses

(I) and (II) as subclauses (I) and (II) and items (aa) and

(bb), respectively;

(B) by inserting ‘‘(i)’’ after ‘‘(5)(A)’’; and

(C) by adding at the end the following new clauses:

‘‘(ii) For a military readiness activity (as defined in section

315(f) of Public Law 107–314; 16 U.S.C. 703 note), a determination of ‘least practicable adverse impact on such species or

stock’ under clause (i)(II)(aa) shall include consideration of personnel safety, practicality of implementation, and impact on

the effectiveness of the military readiness activity. Before

making the required determination, the Secretary shall consult

with the Department of Defense regarding personnel safety,

practicality of implementation, and impact on the effectiveness

of the military readiness activity. ‘‘(iii) Notwithstanding clause (i), for any authorization

affecting a military readiness activity (as defined in section

315(f) of Public Law 107–314; 16 U.S.C. 703 note), the Secretary

shall publish the notice required by such clause only in the

Federal Register.’’;
H. R. 1588—44

(2) in subparagraph (D), by adding at the end the following

new clauses:

‘‘(vi) For a military readiness activity (as defined in section

315(f) of Public Law 107–314; 16 U.S.C. 703 note), a determination of ‘least practicable adverse impact on such species or

stock’ under clause (i)(I) shall include consideration of personnel

safety, practicality of implementation, and impact on the

effectiveness of the military readiness activity. Before making

the required determination, the Secretary shall consult with

the Department of Defense regarding personnel safety, practicality of implementation, and impact on the effectiveness of

the military readiness activity.

‘‘(vii) Notwithstanding clause (iii), for any authorization

affecting a military readiness activity (as defined in section

315(f) of Public Law 107–314; 16 U.S.C. 703 note), the Secretary

shall publish the notice required by such clause only in the

Federal Register.’’; and

(3) by adding at the end the following new subparagraph:

‘‘(F) Notwithstanding the provisions of this subsection, any

authorization affecting a military readiness activity (as defined

in section 315(f) of Public Law 107–314; 16 U.S.C. 703 note)

shall not be subject to the following requirements:

‘‘(i) In subparagraph (A), ‘within a specified geographical region’ and ‘within that region of small numbers’.

‘‘(ii) In subparagraph (B), ‘within a specified geographical region’ and ‘within one or more regions’.

‘‘(iii) In subparagraph (D), ‘within a specific geographic

region’, ‘of small numbers’, and ‘within that region’.’’.

SEC. 320. REPORT REGARDING IMPACT OF CIVILIAN COMMUNITY

ENCROACHMENT AND CERTAIN LEGAL REQUIREMENTS

ON MILITARY INSTALLATIONS AND RANGES AND PLAN

TO ADDRESS ENCROACHMENT.

(a) STUDY REQUIRED.—The Secretary of Defense shall conduct

a study on the impact, if any, of the following types of encroachment

issues affecting military installations and operational ranges:

(1) Civilian community encroachment on those military

installations and ranges whose operational training activities,

research, development, test, and evaluation activities, or other

operational, test and evaluation, maintenance, storage, disposal,

or other support functions require, or in the future reasonably

may require, safety or operational buffer areas. The requirement for such a buffer area may be due to a variety of factors,

including air operations, ordnance operations and storage, or

other activities that generate or might generate noise, electromagnetic interference, ordnance arcs, or environmental impacts

that require or may require safety or operational buffer areas.

(2) Compliance by the Department of Defense with State

Implementation Plans for Air Quality under section 110 of

the Clean Air Act (42 U.S.C. 7410).

(3) Compliance by the Department of Defense with the

Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) and the

Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 (42 U.S.C. 9601 et seq.).

(b) MATTERS TO BE INCLUDED WITH RESPECT TO CIVILIAN

COMMUNITY ENCROACHMENTS.—With respect to paragraph (1) of

subsection (a), the study shall include the following:
H. R. 1588—45

(1) A list of all military installations described in subsection

(a)(1) at which civilian community encroachment is occurring.

(2) A description and analysis of the types and degree

of such civilian community encroachment at each military

installation included on the list.

(3) An analysis, including views and estimates of the Secretary of Defense, of the current and potential future impact

of such civilian community encroachment on operational

training activities, research, development, test, and evaluation

activities, and other significant operational, test and evaluation,

maintenance, storage, disposal, or other support functions performed by military installations included on the list. The analysis shall include the following:

(A) A review of training and test ranges at military

installations, including laboratories and technical centers

of the military departments, included on the list.

(B) A description and explanation of the trends of

such encroachment, as well as consideration of potential

future readiness problems resulting from unabated

encroachment.

(4) An estimate of the costs associated with current and

anticipated partnerships between the Department of Defense

and non-Federal entities to create buffer zones to preclude

further development around military installations included on

the list, and the costs associated with the conveyance of surplus

property around such military installations for purposes of

creating buffer zones.

(5) Options and recommendations for possible legislative

or budgetary changes necessary to mitigate current and anticipated future civilian community encroachment problems.

(c) MATTERS TO BE INCLUDED WITH RESPECT TO COMPLIANCE

WITH SPECIFIED LAWS.—With respect to paragraphs (2) and (3)

of subsection (a), the study shall include the following:

(1) A list of all military installations and other locations

at which the Armed Forces are encountering problems related

to compliance with the laws specified in such paragraphs.

(2) A description and analysis of the types and degree

of compliance problems encountered.

(3) An analysis, including views and estimates of the Secretary of Defense, of the current and potential future impact

of such compliance problems on the following functions performed at military installations:

(A) Operational training activities.

(B) Research, development, test, and evaluation activities.

(C) Other significant operational, test and evaluation,

maintenance, storage, disposal, or other support functions.

(4) A description and explanation of the trends of such

compliance problems, as well as consideration of potential

future readiness problems resulting from such compliance problems.

(d) PLAN TO RESPOND TO ENCROACHMENT ISSUES.—On the basis

of the study conducted under subsection (a), including the specific

matters required to be addressed by subsections (b) and (c), the

Secretary of Defense shall prepare a plan to respond to the

encroachment issues described in subsection (a) affecting military

installations and operational ranges.
H. R. 1588—46

(e) REPORTING REQUIREMENTS.—The Secretary of Defense shall

submit to the Committee on Armed Services of the Senate and

the Committee on Armed Services of the House of Representatives

the following reports regarding the study conducted under subsection (a), including the specific matters required to be addressed

by subsections (b) and (c):

(1) Not later than January 31, 2004, an interim report

describing the progress made in conducting the study and containing the information collected under the study as of that

date.

(2) Not later than January 31, 2006, a report containing

the results of the study and the encroachment response plan

required by subsection (d).

(3) Not later than January 31, 2007, and each January

31 thereafter through January 31, 2010, a report describing

the progress made in implementing the encroachment response

plan.

SEC. 321. COOPERATIVE WATER USE MANAGEMENT RELATED TO FORT

HUACHUCA, ARIZONA, AND SIERRA VISTA SUBWATERSHED.

(a) LIMITATION ON FEDERAL RESPONSIBILITY FOR CIVILIAN

WATER CONSUMPTION IMPACTS.—

(1) LIMITATION.—For purposes of section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536), concerning any

present and future Federal agency action at Fort Huachuca,

Arizona, water consumption by State, local, and private entities

off of the installation that is not a direct or indirect effect

of the agency action or an effect of other activities that are

interrelated or interdependent with that agency action, shall

not be considered in determining whether such agency action

is likely to jeopardize the continued existence of any endangered

or threatened species or result in the destruction or adverse

modification of designated critical habitat.

(2) VOLUNTARY REGIONAL CONSERVATION EFFORTS.—

Nothing in this subsection shall prohibit Federal agencies operating at Fort Huachuca from voluntarily undertaking efforts

to mitigate water consumption.

(3) DEFINITION OF WATER CONSUMPTION.—In this subsection, the term ‘‘water consumption’’ means all water use

off of the installation from any source.

(4) EFFECTIVE DATE.—This subsection applies only to Federal agency actions regarding which the Federal agency

involved determines that consultation, or reinitiation of consultation, under section 7 of the Endangered Species Act of

1973 (16 U.S.C. 1536) is required with regard to an agency

action at Fort Huachuca on or after the date of the enactment

of this Act.

(b) RECOGNITION OF UPPER SAN PEDRO PARTNERSHIP.—Congress hereby recognizes the Upper San Pedro Partnership, Arizona,

a partnership of Fort Huachuca, Arizona, other Federal, State,

and local governmental and nongovernmental entities, and its

efforts to establish a collaborative water use management program

in the Sierra Vista Subwatershed, Arizona, to achieve the sustainable yield of the regional aquifer, so as to protect the Upper San

Pedro River, Arizona, and the San Pedro Riparian National Conservation Area, Arizona.
H. R. 1588—47

(c) REPORT ON WATER USE MANAGEMENT AND CONSERVATION

OF REGIONAL AQUIFER.—

(1) IN GENERAL.—The Secretary of the Interior shall prepare, in consultation with the Secretary of Agriculture and

the Secretary of Defense and in cooperation with the other

members of the Partnership, a report on the water use management and conservation measures that have been implemented

and are needed to restore and maintain the sustainable yield

of the regional aquifer by and after September 30, 2011. The

Secretary of the Interior shall submit the report to Congress

not later than December 31, 2004.

(2) PURPOSE.—The purpose of the report is to set forth

measurable annual goals for the reduction of the overdrafts

of the groundwater of the regional aquifer, to identify specific

water use management and conservation measures to facilitate

the achievement of such goals, and to identify impediments

in current Federal, State, and local laws that hinder efforts

on the part of the Partnership to mitigate water usage in

order to restore and maintain the sustainable yield of the

regional aquifer by and after September 30, 2011.

(3) REPORT ELEMENTS.—The report shall use data from

existing and ongoing studies and include the following elements:

(A) The net quantity of water withdrawn from and

recharged to the regional aquifer in the one-year period

preceding the date of the submission of the report.

(B) The quantity of the overdraft of the regional aquifer

to be reduced by the end of each of fiscal years 2005

through 2011 to achieve sustainable yield.

(C) With respect to the reduction of overdraft for each

fiscal year as specified under subparagraph (B), an allocation of responsibility for the achievement of such reduction

among the water-use controlling members of the Partnership who have the authority to implement measures to

achieve such reduction.

(D) The water use management and conservation measures to be undertaken by each water-use controlling

member of the Partnership to contribute to the reduction

of the overdraft for each fiscal year as specified under

subparagraph (B), and to meet the responsibility of each

such member for each such reduction as allocated under

subparagraph (C), including—

(i) a description of each measure;

(ii) the cost of each measure;

(iii) a schedule for the implementation of each

measure;

(iv) a projection by fiscal year of the amount of

the contribution of each measure to the reduction of

the overdraft; and

(v) a list of existing laws that impede full

implementation of any measure.

(E) The monitoring and verification activities to be

undertaken by the Partnership to measure the reduction

of the overdraft for each fiscal year and the contribution

of each member of the Partnership to the reduction of

the overdraft.

(d) ANNUAL REPORT ON PROGRESS TOWARD SUSTAINABLE

YIELD.—
H. R. 1588—48

(1) IN GENERAL.—Not later than October 31, 2005, and

each October 31 thereafter through 2011, the Secretary of the

Interior shall submit, on behalf of the Partnership, to Congress

a report on the progress of the Partnership during the preceding

fiscal year toward achieving and maintaining the sustainable

yield of the regional aquifer by and after September 30, 2011.

(2) REPORT ELEMENTS.—Each report shall include the following:

(A) The quantity of the overdraft of the regional aquifer

reduced during the reporting period, and whether such

reduction met the goal specified for such fiscal year under

subsection (c)(3)(B).

(B) The water use management and conservation measures undertaken by each water-use controlling member

of the Partnership in the fiscal year covered by such report,

including the extent of the contribution of such measures

to the reduction of the overdraft for such fiscal year.

(C) The legislative accomplishments made during the

fiscal year covered by such report in removing legal impediments that hinder the mitigation of water use by members

of the Partnership.

(e) VERIFICATION INFORMATION.—Information used to verify

overdraft reductions of the regional aquifer shall include at a minimum the following:

(1) The annual report of the Arizona Corporation Commission on annual groundwater pumpage of the private water

companies in the Sierra Vista Subwatershed.

(2) The San Pedro base flow monitoring record of the

Charleston flow gauge of the United States Geological Survey.

(3) Current surveys of the groundwater levels in area wells

as reported by the Arizona Department of Water Resources

and by Federal agencies.

(f) SENSE OF CONGRESS.—It is the sense of Congress that any

future appropriations to the Partnership should take into account

whether the Partnership has met its annual goals for overdraft

reduction.

(g) DEFINITIONS.—In this section:

(1) The term ‘‘Partnership’’ means the Upper San Pedro

Partnership, Arizona.

(2) The term ‘‘regional aquifer’’ means the Sierra Vista

Subwatershed regional aquifer, Arizona.

(3) The term ‘‘water-use controlling member’’ has the

meaning given that term by the Partnership.

SEC. 322. TASK FORCE ON RESOLUTION OF CONFLICT BETWEEN MILITARY TRAINING AND ENDANGERED SPECIES PROTECTION AT BARRY M. GOLDWATER RANGE, ARIZONA.

(a) TASK FORCE.—The Secretary of Defense shall establish a

task force to determine and assess various means of resolving

the conflict between the dual objectives at Barry M. Goldwater

Range, Arizona, of the full utilization of live ordnance delivery

areas for military training and the protection of endangered species

that are present at Barry M. Goldwater Range.

(b) COMPOSITION.—The task force shall be composed of the

following members:

(1) The Air Force range officer, who shall serve as chairperson of the task force.
H. R. 1588—49

(2) The range officer at Barry M. Goldwater Range.

(3) The commander of Luke Air Force Base, Arizona.

(4) The commander of Marine Corps Air Station, Yuma,

Arizona.

(5) The Director of the United States Fish and Wildlife

Service.

(6) The manager of the Cabeza Prieta National Wildlife

Refuge, Arizona.

(7) A representative of the Department of Game and Fish

of the State of Arizona, selected by the Secretary in consultation

with the Governor of the State of Arizona.

(8) A representative of a wildlife interest group in the

State of Arizona, selected by the Secretary in consultation

with wildlife interest groups in the State of Arizona.

(9) A representative of an environmental interest group

(other than a wildlife interest group) in the State of Arizona,

as selected by the Secretary in consultation with environmental

interest groups in the State of Arizona.

(c) DUTIES.—The task force shall—

(1) assess the effects of the presence of endangered species

on military training activities in the live ordnance delivery

areas at Barry M. Goldwater Range and in any other areas

of the range that are adversely effected by the presence of

endangered species;

(2) determine various means of addressing any significant

adverse effects on military training activities on Barry M. Goldwater Range that are identified pursuant to paragraph (1);

and

(3) determine the benefits and costs associated with the

implementation of each means identified under paragraph (2).

(d) USE OF EXPERTS.—The chairperson of the task force may

secure for the task force the services of such experts with respect

to the duties of the task force as the chairperson considers advisable

to carry out such duties.

(e) REPORT.—Not later than February 28, 2005, the task force

shall submit to Congress a report containing—

(1) a description of the assessments and determinations

made under subsection (c);

(2) such recommendations for legislative and administrative

action as the task force considers appropriate; and

(3) an evaluation of the utility of task force proceedings

as a means of resolving conflicts between military training

objectives and protection of endangered species at other military

training and testing ranges.

SEC. 323. PUBLIC HEALTH ASSESSMENT OF EXPOSURE TO PERCHLORATE.

(a) EPIDEMIOLOGICAL STUDY OF EXPOSURE TO PERCHLORATE.—

The Secretary of Defense shall provide for an independent

epidemiological study of exposure to perchlorate in drinking water.

The entity conducting the study shall—

(1) assess the incidence of thyroid disease and measurable

effects of thyroid function in relation to exposure to perchlorate;

(2) ensure that the study is of sufficient scope and scale

to permit the making of meaningful conclusions of the measurable public health threat associated with exposure to perchlorate, especially the threat to sensitive subpopulations; and
H. R. 1588—50

(3) examine thyroid function, including measurements of

urinary iodine and thyroid hormone levels, in a sufficient

number of pregnant women, neonates, and infants exposed

to perchlorate in drinking water and match measurements

of perchlorate levels in the drinking water of each study participant in order to permit the development of meaningful conclusions on the public health threat to individuals exposed to

perchlorate.

(b) REVIEW OF EFFECTS OF PERCHLORATE ON ENDOCRINE

SYSTEM.—The Secretary shall provide for an independent review

of the effects of perchlorate on the human endocrine system. The

entity conducting the review shall assess—

(1) available data on human exposure to perchlorate,

including clinical data and data on exposure of sensitive subpopulations, and the levels at which health effects were

observed; and

(2) available data on other substances that have endocrine

effects similar to perchlorate to which the public is frequently

exposed.

(c) PERFORMANCE OF STUDY AND REVIEW.—(1) The Secretary

shall provide for the performance of the study under subsection

(a) through the Centers for Disease Control and Prevention, the

National Institutes of Health, or another Federal entity with experience in environmental toxicology selected by the Secretary.

(2) The Secretary shall provide for the performance of the

review under subsection (b) through the Centers for Disease Control

and Prevention, the National Institutes of Health, or another appropriate Federal research entity with experience in human endocrinology selected by the Secretary. The Secretary shall ensure that

the panel conducting the review is composed of individuals with

expertise in human endocrinology.

(d) REPORTING REQUIREMENTS.—Not later than June 1, 2005,

the Federal entities conducting the study and review under this

section shall submit to the Secretary reports containing the results

of the study and review.

SEC. 324. COMPTROLLER GENERAL REVIEW OF ARCTIC MILITARY

ENVIRONMENTAL COOPERATION PROGRAM.

(a) REQUIREMENT FOR REVIEW.—The Comptroller General shall

conduct a review of the Arctic Military Environmental Cooperation

program, including—

(1) the current and proposed technology development and

demonstration role of the program in United States nonproliferation efforts; and

(2) the relationship of the program to the Cooperative

Threat Reduction Program 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).

(b) ELEMENTS OF REVIEW.—The review shall include an assessment of the following:

(1) Whether the conditions in the Western Pacific region

require an expansion of the Arctic Military Environmental

Cooperation program to include that region.

(2) The extent to which foreign countries, including Russia,

make financial contributions to the program.

(3) The extent to which the Cooperative Threat Reduction

Program and the G–8 Global Partnership Against the Spread
H. R. 1588—51

of Weapons and Materials of Mass Destruction Initiative use

the program.

(4) Whether the program is important to the disarmament

and nonproliferation functions of the Cooperative Threat Reduction Program.

(5) Future-year funding and program plans of the Department of Defense for the program.

(c) REPORT ON REVIEW.—Not later than May 1, 2004, the Comptroller General shall submit to Congress a report containing the

results of the review.

Subtitle C—Workplace and Depot Issues

SEC. 331. EXEMPTION OF CERTAIN FIREFIGHTING SERVICE CONTRACTS FROM PROHIBITION ON CONTRACTS FOR

PERFORMANCE OF FIREFIGHTING FUNCTIONS.

(a) ADDITIONAL EXEMPTION.—Section 2465(b) of title 10, United

States Code, is amended by adding at the end the following new

paragraph: ‘‘(4) A contract for the performance of firefighting functions

if the contract is— ‘‘(A) for a period of one year or less; and

‘‘(B) covers only the performance of firefighting functions that, in the absence of the contract, would have

to be performed by members of the armed forces who

are not readily available to perform such functions by reason of a deployment.’’. (b) CONFORMING AMENDMENTS.—Such section is further

amended—

(1) by striking ‘‘apply—’’ and inserting ‘‘apply to the following contracts:’’;

(2) by striking ‘‘to a’’ at the beginning of paragraphs (1),

(2), and (3) and inserting ‘‘A’’;

(3) by striking the semicolon at the end of paragraph (1)

and inserting a period; and

(4) by striking ‘‘; or’’ at the end of paragraph (2) and

inserting a period.

SEC. 332. TECHNICAL AMENDMENT RELATING TO CLOSURE OF SACRAMENTO ARMY DEPOT, CALIFORNIA.

Section 2466 of title 10, United States Code, is amended—

(1) by striking subsection (d); and

(2) by redesignating subsection (e) as subsection (d).

SEC. 333. EXCEPTION TO COMPETITION REQUIREMENT FOR DEPOTLEVEL MAINTENANCE AND REPAIR WORKLOADS PERFORMED BY DEPOT-LEVEL ACTIVITIES.

Section 2469 of title 10, United States Code, is amended—

(1) in subsection (b), by striking ‘‘Subsection’’ and inserting

‘‘Except as provided in subsection (c), subsection’’;

(2) by redesignating subsection (c) as subsection (d); and

(3) by inserting after subsection (b) the following new subsection (c):

‘‘(c) EXCEPTION FOR PUBLIC-PRIVATE PARTNERSHIPS.—The

requirements of subsection (a) may be waived in the case of a

depot-level maintenance and repair workload that is performed

at a Center of Industrial and Technical Excellence designated under
H. R. 1588—52

subsection (a) of section 2474 of this title by a public-private partnership entered into under subsection (b) of such section consisting

of a depot-level activity and a private entity.’’.

SEC. 334. RESOURCES-BASED SCHEDULES FOR COMPLETION OF

PUBLIC-PRIVATE COMPETITIONS FOR PERFORMANCE OF

DEPARTMENT OF DEFENSE FUNCTIONS.

(a) APPLICATION OF TIMEFRAMES.—Any interim or final deadline

or other schedule-related milestone for the completion of a Department of Defense public-private competition shall be established

solely on the basis of considered research and sound analysis

regarding the availability of sufficient personnel, training, and technical resources to the Department of Defense to carry out such

competition in a timely manner.

(b) EXTENSION OF TIMEFRAMES.—(1) The Department of Defense

official responsible for managing a Department of Defense publicprivate competition shall extend any interim or final deadline or

other schedule-related milestone established (consistent with subsection (a)) for the completion of the competition if the official

determines that the personnel, training, or technical resources available to the Department of Defense to carry out the competition

in a timely manner are insufficient.

(2) A determination under this subsection shall be made pursuant to procedures prescribed by the Secretary of Defense.

SEC. 335. DELAYED IMPLEMENTATION OF REVISED OFFICE OF

MANAGEMENT AND BUDGET CIRCULAR A–76 BY DEPARTMENT OF DEFENSE PENDING REPORT.

(a) LIMITATION PENDING REPORT.—No studies or competitions

may be conducted under the policies and procedures contained

in the revised Office of Management and Budget Circular A–76

dated May 29, 2003 (68 Fed. Reg. 32134), relating to the possible

contracting out of commercial activities being performed, as of such

date, by employees of the Department of Defense, until the end

of the 45-day period beginning on the date on which the Secretary

of Defense submits to Congress a report on the effects of the

revisions.

(b) CONTENT OF REPORT.—The report required by subsection

(a) shall contain, at a minimum, specific information regarding

the following:

(1) The extent to which the revised circular will ensure

that employees of the Department of Defense have the opportunity to compete to retain their jobs.

(2) The extent to which the revised circular will provide

appeal and protest rights to employees of the Department of

Defense.

(3) Identify safeguards in the revised circular to ensure

that all public-private competitions are fair, appropriate, and

comply with requirements of full and open competition.

(4) The plans of the Department to ensure an appropriate

phase-in period for the revised circular, as recommended by

the Commercial Activities Panel of the Government Accounting

Office in its April 2002 report to Congress, including recommendations for any legislative changes that may be required

to ensure a smooth and efficient phase-in period.

(5) The plans of the Department to provide training to

employees of the Department of Defense regarding the revised

circular, including how the training will be funded, how
H. R. 1588—53

employees will be selected to receive the training, and the

number of employees likely to receive the training.

(6) The plans of the Department to collect and analyze

data on the costs and quality of work contracted out or retained

in-house as a result of a sourcing process conducted under

the revised circular.

SEC. 336. PILOT PROGRAM FOR BEST-VALUE SOURCE SELECTION FOR

PERFORMANCE OF INFORMATION TECHNOLOGY SERVICES.

(a) AUTHORITY TO USE BEST-VALUE CRITERION.—The Secretary

of Defense may carry out a pilot program for the procurement

of information technology services for the Department of Defense

that uses a best-value criterion in the selection of the source for

the performance of the information technology services.

(b) REQUIRED EXAMINATION UNDER PILOT PROJECT.—Under the

pilot program, the Secretary of Defense shall modify the examination otherwise required by section 2461(b)(3)(A) of title 10, United

States Code, to be an examination of the performance of an information technology services function by Department of Defense civilian

employees and by one or more private contractors to demonstrate

whether—

(1) a change to performance by the private sector will

result in the best value to the Government over the life of

the contract, as determined in accordance with the competition

requirements of Office of Management and Budget Circular

A–76; and

(2) certain benefits exist, in addition to price, that warrant

performance of the function by a private sector source at a

cost higher than that of performance by Department of Defense

civilian employees.

(c) EXEMPTION FOR PILOT PROGRAM.—Section 2462(a) of title

10, United States Code, does not apply to the procurement of

information technology services under the pilot program.

(d) DURATION OF PILOT PROGRAM.—(1) The authority to carry

out the pilot program begins on the date on which the Secretary

of Defense submits to Congress the report on the effect of the

recent revisions to Office of Management and Budget Circular A–

76, as required by section 335 of this Act, and expires on September

30, 2008.

(2) The expiration of the pilot program shall not affect the

selection of the source for the performance of an information technology services function for the Department of Defense for which

the analysis required by section 2461(b)(3) of title 10, United States

Code, has been commenced before the expiration date or for which

a solicitation has been issued before the expiration date.

(e) GAO REVIEW.—Not later than February 1, 2008, the Comptroller General shall submit to Congress a report containing—

(1) a review of the pilot program to assess the extent

to which the pilot program is effective and is equitable for

the potential public sources and the potential private sources

of information technology services for the Department of

Defense; and

(2) any other conclusions of the Comptroller General

resulting from the review.

(f) INFORMATION TECHNOLOGY SERVICE DEFINED.—In this section, the term ‘‘information technology service’’ means any service
H. R. 1588—54

performed in the operation or maintenance of information technology (as defined in section 11101 of title 40, United States Code)

that is necessary for or beneficial to the accomplishment of the

authorized functions of the Department of Defense (other than

functions which the Secretary of Defense determines must be performed by military or Government personnel).

SEC. 337. HIGH-PERFORMING ORGANIZATION BUSINESS PROCESS REENGINEERING PILOT PROGRAM.

(a) PILOT PROGRAM.—The Secretary of Defense shall establish

a pilot program under which the Secretary concerned shall create,

or continue the implementation of, high-performing organizations

through the conduct of a Business Process Reengineering initiative

at selected military installations and facilities under the jurisdiction

of the Secretary concerned.

(b) EFFECT OF PARTICIPATION IN PILOT PROGRAM.—(1) During

the period of an organization’s participation in the pilot program,

including the periods referred to in paragraphs (2) and (3) of subsection (f), the Secretary concerned may not require the organization

to undergo any Office of Management and Budget Circular A–

76 competition or other public-private competition involving any

function of the organization covered by the Business Process Reengineering initiative. The organization may elect to undergo such

a competition as part of the initiative.

(2) Civilian employee or military personnel positions of the

participating organization that are part of the Business Process

Reengineering initiative shall be counted toward any numerical

goals, target, or quota that the Secretary concerned is required

or requested to meet during the term of the pilot program regarding

the number of positions to be covered by public-private competitions.

(c) ELIGIBLE ORGANIZATIONS.—Subject to subsection (d), the

Secretary concerned may select two types of organizations to participate in the pilot program:

(1) Organizations that underwent a Business Process Reengineering initiative within the preceding five years, achieved

major performance enhancements under the initiative, and will

be able to sustain previous or achieve new performance goals

through the continuation of its existing or completed Business

Process Reengineering plan.

(2) Organizations that have not undergone or have not

successfully completed a Business Process Reengineering initiative, but which propose to achieve, and reasonably could reach,

enhanced performance goals through implementation of a Business Process Reengineering initiative.

(d) ADDITIONAL ELIGIBILITY REQUIREMENTS.—(1) To be eligible

for selection to participate in the pilot program under subsection

(c)(1), an organization described in such subsection shall demonstrate, to the satisfaction of the Secretary concerned, the completion of a total organizational assessment that resulted in enhanced

performance measures at least comparable to those performance

measures that might be achieved through competitive sourcing.

(2) To be eligible for selection to participate in the pilot program

under subsection (c)(2), an organization described in such subsection

shall identify, to the satisfaction of the Secretary concerned—

(A) functions, processes, and measures to be studied under

the Business Process Reengineering initiative;
H. R. 1588—55

(B) adequate resources to carry out the Business Process

Reengineering initiative; and

(C) labor-management agreements in place to ensure effective implementation of the Business Process Reengineering initiative.

(e) LIMITATION ON NUMBER OF PARTICIPANTS.—Total participants in the pilot program is limited to eight military installations

and facilities, with some participants to be drawn from organizations described in subsection (c)(1) and some participants to be

drawn from organizations described in subsection (c)(2).

(f) IMPLEMENTATION AND DURATION.—(1) The implementation

and management of a Business Process Reengineering initiative

under the pilot program shall be the responsibility of the commander of the military installation or facility at which the Business

Process Reengineering initiative is carried out.

(2) An organization selected to participate in the pilot program

shall be given a reasonable initial period, to be determined by

the Secretary concerned, in which the organization must implement

the Business Process Reengineering initiative. At the end of this

period, the Secretary concerned shall determine whether the

organization has achieved initial progress toward designation as

a high-performing organization. In the absence of such progress,

the Secretary concerned shall terminate the organization’s participation in the pilot program.

(3) If an organization successfully completes implementation

of the Business Process Reengineering initiative under paragraph

(2), the Secretary concerned shall designate the organization as

a high-performing organization and grant the organization an additional five-year period in which to achieve projected or planned

efficiencies and savings under the pilot program.

(g) REVIEWS AND REPORTS.—The Secretary concerned shall conduct annual performance reviews of the participating organizations

or functions under the jurisdiction of the Secretary concerned.

Reviews and reports shall evaluate organizational performance

measures or functional performance measures and determine

whether organizations are performing satisfactorily for purposes

of continuing participation in the pilot program.

(h) PERFORMANCE MEASURES.—Performance measures utilized

in the pilot program should include the following, which shall

be measured against organizational baselines determined before

participation in the pilot program:

(1) Costs, savings, and overall financial performance of

the organization.

(2) Organic knowledge, skills or expertise.

(3) Efficiency and effectiveness of key functions or processes.

(4) Efficiency and effectiveness of the overall organization.

(5) General customer satisfaction.

(i) DEFINITIONS.—In this section

(1) The term ‘‘Business Process Reengineering’’ refers to

an organization’s complete and thorough analysis and reengineering of mission and support functions and processes

to achieve improvements in performance, including a fundamental reshaping of the way work is done to better support

an organization’s mission and reduce costs.
H. R. 1588—56

(2) The term ‘‘high-performing organization’’ means an

organization whose performance exceeds that of comparable

providers, whether public or private.

(3) The term ‘‘Secretary concerned’’ means the Secretary

of a military department and the Secretary of Defense, with

respect to matters concerning the Defense Agencies.

SEC. 338. NAVAL AVIATION DEPOTS MULTI-TRADES DEMONSTRATION

PROJECT.

(a) DEMONSTRATION PROJECT REQUIRED.—In accordance with

section 4703 of title 5, United States Code, the Secretary of the

Navy shall carry out a demonstration project under which three

Naval Aviation Depots are given the flexibility to promote by one

grade level workers who are certified at the journey level as able

to perform multiple trades.

(b) SELECTION REQUIREMENTS.—As a condition on eligibility

for selection to participate in the demonstration project, the head

of a Naval Aviation Depot shall submit to the Secretary a business

case analysis and concept plan—

(1) that, on the basis of the results of analysis of work

processes, demonstrate that process improvements would result

from the trade combinations proposed to be implemented under

the demonstration project; and

(2) that describes the improvements in cost, quality, or

schedule of work that are anticipated to result from the participation in the demonstration project.

(c) PARTICIPATING WORKERS.—(1) Actual worker participation

in the demonstration project shall be determined through competitive selection. Not more than 15 percent of the wage grade journeyman at a demonstration project location may be selected to participate.

(2) Job descriptions and competency-based training plans must

be developed for each worker while in training under the demonstration project and once certified as a multi-trade worker. A certified

multi-trade worker who receives a pay grade promotion under the

demonstration project must use each new skill during at least

25 percent of the worker’s work year.

(d) FUNDING SOURCE.—Appropriations for operation and

maintenance of the Naval Aviation Depots selected to participate

in the demonstration project shall be used as the source of funds

to carry out the demonstration project, including the source of

funds for pay increases made under the project.

(e) DURATION.—The demonstration project shall be conducted

during fiscal years 2004 through 2006.

(f) REPORT.—Not later than January 15, 2007, the Secretary

shall submit a report to Congress describing the results of the

demonstration project.

(g) GAO EVALUATION.—The Secretary shall transmit a copy

of the report to the Comptroller General. Within 90 days after

receiving the report, the Comptroller General shall submit to Congress an evaluation of the report.
H. R. 1588—57

Subtitle D—Other Matters

SEC. 341. CATALOGING AND STANDARDIZATION FOR DEFENSE SUPPLY

MANAGEMENT.

Section 2451 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(d) The Secretary shall coordinate with the Administrator of

General Services to enable the use of commercial identifiers for

commercial items within the Federal cataloging system.’’.

SEC. 342. SALE OF DEFENSE INFORMATION SYSTEMS AGENCY SERVICES TO CONTRACTORS PERFORMING THE NAVY-MARINE

CORPS INTRANET CONTRACT.

(a) AUTHORITY.—The Secretary of Defense may sell workingcapital funded services of the Defense Information Systems Agency

to a person outside the Department of Defense for use by that

person in the performance of the Navy-Marine Corps Intranet contract.

(b) REIMBURSEMENT.—The Secretary shall require reimbursement of each working-capital fund for the costs of services sold

under subsection (a) that were paid for out of such fund. The

sources of the reimbursement shall be the appropriation or appropriations funding the Navy-Marine Corps Intranet contract or any

cash payments received by the Secretary for the services.

(c) NAVY-MARINE CORPS INTRANET CONTRACT DEFINED.—In this

section, the term ‘‘Navy-Marine Corps Intranet contract’’ has the

meaning given such term in section 814 of the Floyd D. Spence

National Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398 (114 Stat. 1654A–217)).

SEC. 343. PERMANENT AUTHORITY FOR PURCHASE OF CERTAIN

MUNICIPAL SERVICES AT INSTALLATIONS IN MONTEREY

COUNTY, CALIFORNIA.

(a) AUTHORITY.—Subject to section 2465 of title 10, United

States Code, public works, utility, and other municipal services

needed for the operation of any Department of Defense asset in

Monterey County, California, may be purchased from government

agencies located in that county.

(c) REPEAL OF EXISTING TEMPORARY AUTHORITY.—Section 816

of the National Defense Authorization Act for Fiscal Year 1995

(Public Law 103–337; 108 Stat. 2820) is repealed.

SEC. 344. DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT.

(a) PROVISION OF PREPAID PHONE CARDS.—As soon as possible

after the date of the enactment of this Act, the Secretary of Defense

shall provide, wherever practicable, prepaid phone cards, or an

equivalent telecommunications benefit which includes access to telephone service, to members of the Armed Forces stationed outside

the United States who (as determined by the Secretary) are eligible

for combat zone tax exclusion benefits due to their service in direct

support of Operation Enduring Freedom and Operation Iraqi

Freedom to enable those members to make telephone calls without

cost to the member.

(b) MONTHLY BENEFIT.—The value of the benefit provided under

subsection (a) to any member in any month, to the extent the
H. R. 1588—58

benefit is provided from amounts available to the Department of

Defense, may not exceed—

(1) $40; or

(2) 120 calling minutes, if the cost to the Department

of Defense of providing such number of calling minutes is

less than the amount specified in paragraph (1).

(c) END OF PROGRAM.—The program established by subsection

(a) shall terminate on September 30, 2004.

(d) FUNDING.—(1)(A) In carrying out the program under this

section, the Secretary shall maximize the use of existing Department of Defense telecommunications programs and capabilities,

free or reduced-cost services of private sector entities, and programs

to enhance morale and welfare.

(B) The Secretary may not award a contract to a commercial

firm for the purposes of subparagraph (A) other than through

the use of competitive procedures.

(2) The Secretary may accept gifts and donations in order

to defray the costs of the program under this section. Such gifts

and donations may be accepted from—

(A) any foreign government;

(B) any foundation or other charitable organization,

including any that is organized or operates under the laws

of a foreign country; and

(C) any source in the private sector of the United States

or a foreign country.

(e) DEPLOYMENT OF ADDITIONAL TELEPHONE EQUIPMENT.—If

the Secretary of Defense determines that, in order to implement

this section as quickly as practicable, it is necessary to provide

additional telephones in any area to facilitate telephone calling

for which benefits are provided under this section, the Secretary

may, consistent with the availability of resources, award competitively bid contracts to one or more commercial entities for the

provision and installation of telephones in that area.

(f) NO COMPROMISE OF MILITARY MISSION.—The Secretary of

Defense should not take any action under this section that would

compromise the military objectives or mission of the Department

of Defense.

SEC. 345. INDEPENDENT ASSESSMENT OF MATERIAL CONDITION OF

THE KC–135 AERIAL REFUELING FLEET.

Not later than May 1, 2004, the Secretary of Defense shall

submit to the congressional defense committees an assessment,

conducted by an entity outside of the Department of Defense, of

the material condition of the fleet of KC–135 aerial refueling aircraft

of the Air Force. The assessment shall include the following:

(1) Trend analysis for operational readiness for KC–135E

and KC–135R aircraft from fiscal year 1996 through fiscal

year 2003.

(2) Trend analysis for the number of manhours of organizational-level and depot-level maintenance required for KC–135E

and KC–135R aircraft from fiscal year 1996 through fiscal

year 2003, setting forth separately the manhours required for

control and treatment of corrosion.

(3) The number of KC–135E and KC–135R aircraft

grounded due to corrosion for each year, and the length of

time each aircraft was grounded pending corrosion repair, based
H. R. 1588—59

on maintenance conducted from fiscal year 1996 through fiscal

year 2003.

(4) An itemization of improved corrosion repair processes

for KC–135E and KC–135R aircraft used between fiscal year

1996 and fiscal year 2003 which resulted in a decrease in

the number of manhours required for control and treatment

of corrosion.

(5) An analysis of the relationship between manhours for

corrosion repair as set forth under paragraph (2) and the processes set forth under paragraph (4).

(6) An analysis of major structural repairs required due

to corrosion for KC–135E and KC–135R aircraft annually from

fiscal year 1996 through fiscal year 2003.

TITLE IV—MILITARY PERSONNEL

AUTHORIZATIONS

Subtitle A—Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Revision in permanent active duty end strength minimum levels.

Sec. 403. Personnel strength authorization and accounting process.

Subtitle B—Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for Reserves on active duty in support of the reserves.

Sec. 413. End strengths for military technicians (dual status).

Sec. 414. Fiscal year 2004 limitations on non-dual status technicians.

Sec. 415. Permanent limitations on number of non-dual status technicians.

Subtitle C—Authorizations of Appropriations

Sec. 421. Military personnel.

Sec. 422. Armed Forces Retirement Home.

Subtitle A—Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

The Armed Forces are authorized strengths for active duty

personnel as of September 30, 2004, as follows:

(1) The Army, 482,400.

(2) The Navy, 373,800.

(3) The Marine Corps, 175,000.

(4) The Air Force, 359,300.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH

MINIMUM LEVELS.

Section 691(b) of title 10, United States Code, is amended

as follows:

(1) ARMY.—Paragraph (1) is amended by striking ‘‘480,000’’ and inserting ‘‘482,400’’. (2) NAVY.—Paragraph (2) is amended by striking ‘‘375,700’’

and inserting ‘‘373,800’’.

(3) AIR FORCE.—Paragraph (4) is amended by striking

‘‘359,000’’ and inserting ‘‘359,300’’.

SEC. 403. PERSONNEL STRENGTH AUTHORIZATION AND ACCOUNTING

PROCESS.

(a) QUARTERLY STRENGTH LEVELS.—Section 115 of title 10,

United States Code, is amended—
H. R. 1588—60

(1) by redesignating subsections (c), (e), and (g) as subsections (e), (g), and (c), respectively, and by transferring—

(A) subsection (e), as so redesignated, so as to appear

after subsection (d);

(B) subsection (g), as so redesignated, so as to appear

after subsection (f); and

(C) subsection (c), as so redesignated, so as to appear

after subsection (b);

(2) by transferring subsection (d) to the end of such section

and redesignating that subsection as subsection (h); and

(3) by inserting after subsection (c), as redesignated and

transferred by paragraph (1), the following new subsection (d):

‘‘(d) END-OF-QUARTER STRENGTH LEVELS.—(1) The Secretary

of Defense shall prescribe and include in the budget justification

documents submitted to Congress in support of the President’s

budget for the Department of Defense for any fiscal year the Secretary’s proposed end-of-quarter strengths for each of the first three

quarters of the fiscal year for which the budget is submitted, in

addition to the Secretary’s proposed fiscal-year end-strengths for

that fiscal year. Such end-of-quarter strengths shall be submitted

for each category of personnel for which end strengths are required

to be authorized by law under subsection (a) or (c). The Secretary

shall ensure that resources are provided in the budget at a level

sufficient to support the end-of-quarter and fiscal-year endstrengths as submitted.

‘‘(2)(A) After annual end-strength levels required by subsections

(a) and (c) are authorized by law for a fiscal year, the Secretary

of Defense shall promptly prescribe end-of-quarter strength levels

for the first three quarters of that fiscal year applicable to each

such end-strength level. Such end-of-quarter strength levels shall

be established for any fiscal year as levels to be achieved in meeting

each of those annual end-strength levels authorized by law in

accordance with subsection (a) (as such levels may be adjusted

pursuant to subsection (e)) and subsection (c).

‘‘(B) At least annually, the Secretary of Defense shall establish

for each of the armed forces (other than the Coast Guard) the

maximum permissible variance of actual strength for an armed

force at the end of any given quarter from the end-of-quarter

strength established pursuant to subparagraph (A). Such variance

shall be such that it promotes the maintaining of the strength

necessary to achieve the end-strength levels authorized in accordance with subsection (a) (as adjusted pursuant to subsection (e))

and subsection (c).

‘‘(3) Whenever the Secretary establishes an end-of-quarter

strength level under subparagraph (A) of paragraph (2), or modifies

a strength level under the authority provided in subparagraph

(B) of paragraph (2), the Secretary shall notify the Committee

on Armed Services of the Senate and the Committee on Armed

Services of the House of Representatives of that strength level

or of that modification, as the case may be.’’.

(b) CONFORMING AND STYLISTIC AMENDMENTS.—Such section

is further amended— (1) in subsection (a), by inserting ‘‘ACTIVE-DUTY AND

SELECTED RESERVE END STRENGTHS TO BE AUTHORIZED BY

LAW.—’’ after ‘‘(a)’’;

(2) in subsection (b), by inserting ‘‘LIMITATION

ON APPROPRIATIONS FOR MILITARY PERSONNEL.—’’ after ‘‘(b)’’;
H. R. 1588—61

(3) in subsection (c), as redesignated and transferred by

subsection (a)(1), by inserting ‘‘MILITARY TECHNICIAN (DUAL

STATUS) END STRENGTHS TO BE AUTHORIZED BY LAW.—’’ after

‘‘(c)’’;

(4) in subsection (e), as redesignated and transferred by

subsection (a)(1), by inserting ‘‘AUTHORITY FOR SECRETARY OF

DEFENSE VARIANCES FOR ACTIVE-DUTY AND SELECTED RESERVE

END STRENGTHS.—’’ after ‘‘(e)’’;

(5) in subsection (f)—

(A) by inserting ‘‘AUTHORITY FOR SERVICE SECRETARY

VARIANCES FOR ACTIVE-DUTY END STRENGTHS.—’’ after

‘‘(f)’’; and

(B) in paragraph (2), by striking ‘‘subsection (c)(1)’’

and inserting ‘‘subsection (e)(1)’’;

(6) in subsection (g), as redesignated and transferred by

subsection (a)(1), by inserting ‘‘ADJUSTMENT WHEN COAST

GUARD IS OPERATING AS A SERVICE IN THE NAVY.—’’ after

‘‘(g)’’; and

(7) in subsection (h), as redesignated and transferred by

subsection (a)(2), by inserting ‘‘CERTAIN ACTIVE-DUTY PERSONNEL EXCLUDED FROM COUNTING FOR ACTIVE-DUTY END

STRENGTHS.—’’ after ‘‘(h)’’.

(c) CROSS REFERENCE AMENDMENTS.—Section 10216 of such

title is amended by striking ‘‘section 115(g)’’ each place it appears

and inserting ‘‘section 115(c)’’.

(d) EFFECTIVE DATE.—Subsection (d) of section 115 of title

10, United States Code, as added by subsection (a)(3), shall apply

with respect to the budget request for fiscal year 2005 and thereafter.

Subtitle B—Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

(a) IN GENERAL.—The Armed Forces are authorized strengths

for Selected Reserve personnel of the reserve components as of

September 30, 2004, as follows:

(1) The Army National Guard of the United States, 350,000.

(2) The Army Reserve, 205,000.

(3) The Naval Reserve, 85,900.

(4) The Marine Corps Reserve, 39,600.

(5) The Air National Guard of the United States, 107,030.

(6) The Air Force Reserve, 75,800.

(7) The Coast Guard Reserve, 10,000.

(b) ADJUSTMENTS.—The end strengths prescribed by subsection

(a) for the Selected Reserve of any reserve component shall be

proportionately reduced by—

(1) the total authorized strength of units organized to serve

as units of the Selected Reserve of such component which

are on active duty (other than for training) at the end of

the fiscal year; and

(2) the total number of individual members not in units

organized to serve as units of the Selected Reserve of such

component who are on active duty (other than for training

or for unsatisfactory participation in training) without their

consent at the end of the fiscal year.
H. R. 1588—62

Whenever such units or such individual members are released

from active duty during any fiscal year, the end strength prescribed

for such fiscal year for the Selected Reserve of such reserve component shall be proportionately increased by the total authorized

strengths of such units and by the total number of such individual

members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

Within the end strengths prescribed in section 411(a), the

reserve components of the Armed Forces are authorized, as of

September 30, 2004, the following number of Reserves to be serving

on full-time active duty or full-time duty, in the case of members

of the National Guard, for the purpose of organizing, administering,

recruiting, instructing, or training the reserve components:

(1) The Army National Guard of the United States, 25,599.

(2) The Army Reserve, 14,374.

(3) The Naval Reserve, 14,384.

(4) The Marine Corps Reserve, 2,261.

(5) The Air National Guard of the United States, 12,191.

(6) The Air Force Reserve, 1,660.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL

STATUS).

The minimum number of military technicians (dual status)

as of the last day of fiscal year 2004 for the reserve components

of the Army and the Air Force (notwithstanding section 129 of

title 10, United States Code) shall be the following:

(1) For the Army Reserve, 6,949.

(2) For the Army National Guard of the United States,

24,589.

(3) For the Air Force Reserve, 9,991.

(4) For the Air National Guard of the United States, 22,806.

SEC. 414. FISCAL YEAR 2004 LIMITATIONS ON NON-DUAL STATUS

TECHNICIANS.

(a) LIMITATIONS.—(1) Within the limitation provided in section

10217(c)(2) of title 10, United States Code, the number of nondual status technicians employed by the National Guard as of

September 30, 2004, may not exceed the following:

(A) For the Army National Guard of the United States,

1,600.

(B) For the Air National Guard of the United States, 350.

(2) The number of non-dual status technicians employed by

the Army Reserve as of September 30, 2004, may not exceed 910.

(3) The number of non-dual status technicians employed by

the Air Force Reserve as of September 30, 2004, may not exceed

90.

(b) NON-DUAL STATUS TECHNICIANS DEFINED.—In this section,

the term ‘‘non-dual status technician’’ has the meaning given that

term in section 10217(a) of title 10, United States Code.

SEC. 415. PERMANENT LIMITATIONS ON NUMBER OF NON-DUAL

STATUS TECHNICIANS.

Section 10217(c) of title 10, United States Code, is amended

by striking ‘‘and Air Force Reserve may not exceed 175’’ and

inserting ‘‘may not exceed 595 and by the Air Force Reserve may

not exceed 90’’.
H. R. 1588—63

Subtitle C—Authorizations of

Appropriations

SEC. 421. MILITARY PERSONNEL.

There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2004 a total

of $98,908,400,000. The authorization in the preceding sentence

supersedes any other authorization of appropriations (definite or

indefinite) for such purpose for fiscal year 2004.

SEC. 422. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal year

2004 from the Armed Forces Retirement Home Trust Fund the

sum of $65,279,000 for the operation of the Armed Forces Retirement Home.

TITLE V—MILITARY PERSONNEL

POLICY

Subtitle A—Officer Personnel Matters

Sec. 501. Standardization of qualifications for appointment as service chief.

Sec. 502. Eligibility for appointment as Chief of Army Veterinary Corps.

Sec. 503. Repeal of required grade of defense attache ́ in France.

Sec. 504. Repeal of termination provisions for certain authorities relating to management of general and flag officers in certain grades.

Sec. 505. Retention of health professions officers to fulfill active-duty service commitments following promotion nonselection.

Sec. 506. Permanent authority to reduce three-year time-in-grade requirement for

retirement in grade for officers in grades above major and lieutenant

commander.

Sec. 507. Contingent exclusion from officer strength and distribution-in-grade limitations for officer serving as Associate Director of Central Intelligence

for Military Support.

Sec. 508. Reappointment of incumbent Chief of Naval Operations.

Sec. 509. Secretary of Defense approval required for practice of wearing uniform insignia of higher grade known as ‘‘frocking’’.

Subtitle B—Reserve Component Matters

Sec. 511. Streamlined process for continuation of officers on the Reserve Active-Status List.

Sec. 512. Consideration of Reserve officers for position vacancy promotions in time

of war or national emergency.

Sec. 513. Authority for delegation of required secretarial special finding for placement of certain retired members in Ready Reserve.

Sec. 514. Authority to provide expenses of Army and Air Staff personnel and National Guard Bureau personnel attending national conventions of certain military associations.

Sec. 515. Expanded authority for use of Ready Reserve in response to terrorism.

Sec. 516. National Guard officers on active duty in command of National Guard

units.

Sec. 517. Presidential report on mobilization of reserve component personnel and

Secretary of Defense assessment.

Sec. 518. Authority for the use of operation and maintenance funds for promotional

activities of the National Committee for Employer Support of the Guard

and Reserve.

Subtitle C—ROTC and Military Service Academies

Sec. 521. Expanded educational assistance authority for cadets and midshipmen receiving ROTC scholarships.

Sec. 522. Increase in allocation of scholarships under Army Reserve ROTC scholarship program to students at military junior colleges.

Sec. 523. Authority for nonscholarship senior ROTC sophomores to voluntarily contract for and receive subsistence allowance.
H. R. 1588—64

Sec. 524. Appointments to military service academies from nominations made by

delegates from Guam, Virgin Islands, and American Samoa.

Sec. 525. Readmission to service academies of certain former cadets and midshipmen.

Sec. 526. Defense task force on sexual harassment and violence at the military

service academies.

Sec. 527. Actions to address sexual harassment and violence at the service academies.

Sec. 528. Study and report related to permanent professors at the United States

Air Force Academy.

Sec. 529. Dean of the faculty of the United States Air Force Academy.

Subtitle D—Other Military Education and Training Matters

Sec. 531. Authority for the Marine Corps University to award the degree of Master

of Operational Studies.

Sec. 532. Authorization for Naval Postgraduate School to provide instruction to enlisted members participating in certain programs.

Sec. 533. Cost reimbursement requirements for personnel receiving instruction at

the Air Force Institute of Technology

Sec. 534. Inclusion of accrued interest in amounts that may be repaid under Selected Reserve critical specialties education loan repayment program.

Sec. 535. Funding of education assistance enlistment incentives to facilitate national service through Department of Defense Education Benefits Fund.

Sec. 536. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

Sec. 537. Impact aid eligibility for heavily impacted local educational agencies affected by privatization of military housing.

Subtitle E—Administrative Matters

Sec. 541. High-tempo personnel management and allowance.

Sec. 542. Enhanced retention of accumulated leave for high-deployment members.

Sec. 543. Standardization of statutory authorities for exemptions from requirement

for access to secondary schools by military recruiters.

Sec. 544. Procedures for consideration of applications for award of the Purple Heart

medal to veterans held as prisoners of war before April 25, 1962.

Sec. 545. Authority for Reserve and retired regular officers to hold State and local

office notwithstanding call to active duty.

Sec. 546. Policy on public identification of casualties.

Sec. 547. Space personnel career fields.

Sec. 548. Department of Defense Joint Advertising, Market Research, and Studies

program.

Sec. 549. Limitation on force structure reductions in Naval and Marine Corps Reserve aviation squadrons.

Subtitle F—Military Justice Matters

Sec. 551. Extended limitation period for prosecution of child abuse cases in courtsmartial.

Sec. 552. Clarification of blood alcohol content limit for the offense under the Uniform Code of Military Justice of drunken operation of a vehicle, aircraft,

or vessel.

Subtitle G—Benefits

Sec. 561. Additional classes of individuals eligible to participate in the Federal

long-term care insurance program.

Sec. 562. Authority to transport remains of retirees and retiree dependents who die

in military treatment facilities.

Sec. 563. Eligibility for dependents of certain mobilized reservists stationed overseas to attend defense dependents schools overseas.

Subtitle H—Domestic Violence

Sec. 571. Travel and transportation for dependents relocating for reasons of personal safety.

Sec. 572. Commencement and duration of payment of transitional compensation.

Sec. 573. Exceptional eligibility for transitional compensation.

Sec. 574. Types of administrative separations triggering coverage.

Sec. 575. Comptroller General review and report.

Sec. 576. Fatality reviews.

Sec. 577. Sense of Congress.

Subtitle I—Other Matters

Sec. 581. Recognition of military families.
H. R. 1588—65

Sec. 582. Permanent authority for support for certain chaplain-led military family

support programs.

Sec. 583. Department of Defense-Department of Veterans Affairs Joint Executive

Committee.

Sec. 584. Review of the 1991 death of Marine Corps Colonel James E. Sabow.

Sec. 585. Policy on concurrent deployment to combat zones of both military spouses

of military families with minor children.

Sec. 586. Congressional notification of amendment or cancellation of Department of

Defense directive relating to reasonable access to military installations

for certain personal commercial solicitation.

Sec. 587. Study of National Guard Challenge Program.

Sec. 588. Findings and sense of Congress on reward for information leading to resolution of status of members of the Armed Forces who remain unaccounted for.

Subtitle A—Officer Personnel Matters

SEC. 501. STANDARDIZATION OF QUALIFICATIONS FOR APPOINTMENT

AS SERVICE CHIEF.

(a) CHIEF OF NAVAL OPERATIONS.—Section 5033(a)(1) of title

10, United States Code, is amended by striking ‘‘from officers on

the active-duty list in the line of the Navy who are eligible to

command at sea and who hold the grade of rear admiral or above’’

and inserting ‘‘from the flag officers of the Navy’’.

(b) COMMANDANT OF THE MARINE CORPS.—Section 5043(a)(1)

of title 10, United States Code, is amended by striking ‘‘from officers

on the active-duty list of the Marine Corps not below the grade

of colonel’’ and inserting ‘‘from the general officers of the Marine

Corps’’.

SEC. 502. ELIGIBILITY FOR APPOINTMENT AS CHIEF OF ARMY VETERINARY CORPS.

(a) APPOINTMENT FROM AMONG MEMBERS OF THE CORPS.—

Section 3084 of title 10, United States Code, is amended by inserting

after ‘‘The Chief of the Veterinary Corps of the Army’’ the following:

‘‘shall be appointed from among officers of the Veterinary Corps.

The Chief of the Veterinary Corps’’.

(b) APPLICABILITY.—The amendment made by subsection (a)

shall apply to appointments of the Chief of the Veterinary Corps

of the Army that are made on or after the date of the enactment

of this Act.

SEC. 503. REPEAL OF REQUIRED GRADE OF DEFENSE ATTACHE ́ IN

FRANCE.

(a) IN GENERAL.—Section 714 of title 10, United States Code,

is repealed.

(b) CONFORMING AMENDMENT.—The table of sections at the

beginning of chapter 41 of such title is amended by striking the

item relating to section 714.

SEC. 504. REPEAL OF TERMINATION PROVISIONS FOR CERTAIN

AUTHORITIES RELATING TO MANAGEMENT OF GENERAL

AND FLAG OFFICERS IN CERTAIN GRADES.

(a) SENIOR JOINT OFFICER POSITIONS.—Section 604 of title 10,

United States Code, is amended by striking subsection (c).

(b) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN GENERAL

AND FLAG OFFICER GRADES.—Section 525(b)(5) of such title is

amended by striking subparagraph (C).
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(c) AUTHORIZED STRENGTH FOR GENERAL AND FLAG OFFICERS

ON ACTIVE DUTY.—Section 526(b) of such title is amended by

striking paragraph (3).

SEC. 505. RETENTION OF HEALTH PROFESSIONS OFFICERS TO FULFILL ACTIVE-DUTY SERVICE COMMITMENTS FOLLOWING

PROMOTION NONSELECTION.

(a) IN GENERAL.—Section 632 of title 10, United States Code,

is amended—

(1) in subsection (a)(1), by inserting ‘‘except as provided

in paragraph (3) and in subsection (c),’’ before ‘‘be discharged’’;

and

(2) by adding at the end the following new subsection:

‘‘(c)(1) If a health professions officer described in paragraph

(2) is subject to discharge under subsection (a)(1) and, as of the

date on which the officer is to be discharged under that paragraph,

the officer has not completed a period of active duty service obligation that the officer incurred under section 2005, 2114, 2123, or

2603 of this title, the officer shall be retained on active duty

until completion of such active duty service obligation, and then

be discharged under that subsection, unless sooner retired or discharged under another provision of law.

‘‘(2) The Secretary concerned may waive the applicability of

paragraph (1) to any officer if the Secretary determines that completion of the active duty service obligation of that officer is not

in the best interest of the service.

‘‘(3) This subsection applies to a medical officer or dental officer

or an officer appointed in a medical skill other than as a medical

officer or dental officer (as defined in regulations prescribed by

the Secretary of Defense).’’.

(b) TECHNICAL AMENDMENTS.—Sections 630(2), 631(a)(3), and

632(a)(3) of such title are amended by striking ‘‘clause’’ and

inserting ‘‘paragraph’’.

(c) EFFECTIVE DATE.—The amendments made by subsection

(a) shall not apply in the case of an officer who as of the date

of the enactment of this Act is required to be discharged under

section 632(a)(1) of title 10, United States Code, by reason of having

failed of selection for promotion to the next higher regular grade

a second time.

SEC. 506. PERMANENT AUTHORITY TO REDUCE THREE-YEAR TIMEIN-GRADE REQUIREMENT FOR RETIREMENT IN GRADE

FOR OFFICERS IN GRADES ABOVE MAJOR AND LIEUTENANT COMMANDER.

(a) ACTIVE COMPONENT OFFICERS.—Subsection (a)(2)(A) of section 1370 of title 10, United States Code, is amended by striking

‘‘in the case of retirements effective during the period beginning

on October 1, 2002, and ending on December 31, 2003’’.

(b) RESERVE COMPONENT OFFICERS.—Subsection (d)(5)(A) of

such section is amended by striking ‘‘2 years’’ and all that follows

and inserting ‘‘two years.’’.
H. R. 1588—67

SEC. 507. CONTINGENT EXCLUSION FROM OFFICER STRENGTH AND

DISTRIBUTION-IN-GRADE LIMITATIONS FOR OFFICER

SERVING AS ASSOCIATE DIRECTOR OF CENTRAL INTELLIGENCE FOR MILITARY SUPPORT.

(a) ASSOCIATE DIRECTOR NOT COUNTED.—Chapter 32 of title

10, United State Code, is amended by adding at the end the following new section:

‘‘§ 528. Exclusion: officer serving as Associate Director of

Central Intelligence for Military Support

‘‘(a) When none of the individuals serving in a position specified

in subsection (b) is an officer of the armed forces, an officer of

the armed forces assigned to the position of Associate Director

of Central Intelligence for Military Support, while serving in that

position, shall not be counted against the numbers and percentages

of officers of the grade of that officer authorized for that officer’s

armed force. ‘‘(b) The positions referred to in subsection (a) are the following: ‘‘(1) Director of Central Intelligence.

‘‘(2) Deputy Director of Central Intelligence.

‘‘(3) Deputy Director of Central Intelligence for Community

Management.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘528. Exclusion: Associate Director of Central Intelligence for Military Support.’’.

SEC. 508. REAPPOINTMENT OF INCUMBENT CHIEF OF NAVAL OPERATIONS.

Notwithstanding the provisions of section 5033(a)(1) of title

10, United States Code, the President, by and with the advice

and consent of the Senate, may reappoint the officer serving as

Chief of Naval Operations on October 1, 2003, for an additional

term as Chief of Naval Operations. Such a reappointment shall

be for a term of not more than two years.

SEC. 509. SECRETARY OF DEFENSE APPROVAL REQUIRED FOR PRACTICE OF WEARING UNIFORM INSIGNIA OF HIGHER

GRADE KNOWN AS ‘‘FROCKING’’.

(a) OSD APPROVAL REQUIRED.—Section 777(b) of title 10,

United States Code, is amended—

(1) by striking ‘‘and’’ at the end of paragraph (1);

(2) by striking the period at the end of paragraph (2)

and inserting ‘‘; and’’; and

(3) by adding at the end the following new paragraph:

‘‘(3) in the case of an officer selected for promotion to

a grade above colonel or, in the case of an officer of the Navy,

a grade above captain— ‘‘(A) authority for that officer to wear the insignia

of that grade has been approved by the Secretary of Defense

(or a civilian officer within the Office of the Secretary

of Defense whose appointment was made with the advice

and consent of the Senate and to whom the Secretary

delegates such approval authority); and

‘‘(B) the Secretary of Defense has submitted to Congress a written notification of the intent to authorize the
H. R. 1588—68

officer to wear the insignia for that grade and a period

of 30 days has elapsed after the date of the notification.’’.

(b) EFFECTIVE DATE.—Paragraph (3) of subsection (b) of section

777 of title 10, United States Code, as added by subsection (a),

shall not apply with respect to the wearing by an officer of insignia

for a grade that was authorized under that section before the

date of the enactment of this Act.

Subtitle B—Reserve Component Matters

SEC. 511. STREAMLINED PROCESS FOR CONTINUATION OF OFFICERS

ON THE RESERVE ACTIVE-STATUS LIST.

(a) REPEAL OF REQUIREMENT FOR USE OF SELECTION BOARDS.—

Section 14701 of title 10, United States Code, is amended—

(1) in subsection (a)—

(A) in paragraph (1), by striking ‘‘by a selection board

convened under section 14101(b) of this title’’ and inserting

‘‘under regulations prescribed by the Secretary of Defense’’;

and

(B) in paragraph (6), by striking ‘‘as a result of the

convening of a selection board under section 14101(b) of

this title’’ and inserting ‘‘under regulations prescribed

under paragraph (1)’’;

(2) by striking subsections (b) and (c); and

(3) by redesignating subsection (d) as subsection (b).

(b) CONFORMING AMENDMENTS.—(1) Section 14101(b) of such

title is amended—

(A) by striking ‘‘CONTINUATION BOARDS’’ and inserting

‘‘SELECTIVE EARLY SEPARATION BOARDS’’;

(B) by striking paragraph (1);

(C) by redesignating paragraphs (2) and (3) as paragraphs

(1) and (2), respectively; and

(D) by striking the last sentence.

(2) Section 14102(a) of such title is amended by striking ‘‘Continuation boards’’ and inserting ‘‘Selection boards convened

under section 14101(b) of this title’’. (3) Section 14705(b)(1) of such title is amended by striking ‘‘continuation board’’ and inserting ‘‘selection board’’.

SEC. 512. CONSIDERATION OF RESERVE OFFICERS FOR POSITION

VACANCY PROMOTIONS IN TIME OF WAR OR NATIONAL

EMERGENCY.

(a) PROMOTION CONSIDERATION WHILE ON ACTIVE-DUTY LIST.— (1) Subsection (d) of section 14317 of title 10, United States Code,

is amended by striking ‘‘If a reserve officer’’ and inserting ‘‘Except

as provided in subsection (e), if a reserve officer’’. (2) Subsection (e) of such section is amended to read as follows:

‘‘(e) OFFICERS ORDERED TO ACTIVE DUTY IN TIME OF WAR

OR NATIONAL EMERGENCY.—(1) A reserve officer who is not on

the active-duty list and who is ordered to active duty in time

of war or national emergency may, if eligible, be considered for

promotion—

‘‘(A) by a mandatory promotion board convened under section 14101(a) of this title or a special selection board convened

under section 14502 of this title; or
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‘‘(B) in the case of an officer who has been ordered to

or is serving on active duty in support of a contingency operation, by a vacancy promotion board convened under section

14101(a) of this title.

‘‘(2) An officer may not be considered for promotion under

this subsection after the end of the two-year period beginning

on the date on which the officer is ordered to active duty. ‘‘(3) An officer may not be considered for promotion under

this subsection during a period when the operation of this section

has been suspended by the President under section 123(a) of this

title.‘‘(4) Consideration of an officer for promotion under this subsection shall be under regulations prescribed by the Secretary of

the military department concerned.’’. (b) CONFORMING AMENDMENT.—Section 14315(a)(1) of such title

is amended by striking ‘‘as determined by the Secretary concerned,

is available’’ and inserting ‘‘under regulations prescribed by the

Secretary concerned, has been recommended’’.

SEC. 513. AUTHORITY FOR DELEGATION OF REQUIRED SECRETARIAL

SPECIAL FINDING FOR PLACEMENT OF CERTAIN

RETIRED MEMBERS IN READY RESERVE.

The last sentence of section 10145(d) of title 10, United States

Code, is amended to read as follows: ‘‘The authority of the Secretary

concerned under the preceding sentence may not be delegated—

‘‘(1) to a civilian officer or employee of the military department concerned below the level of Assistant Secretary; or

‘‘(2) to a member of the armed forces below the level of

the lieutenant general or vice admiral in an armed force with

responsibility for military personnel policy in that armed force.’’.

SEC. 514. AUTHORITY TO PROVIDE EXPENSES OF ARMY AND AIR STAFF

PERSONNEL AND NATIONAL GUARD BUREAU PERSONNEL ATTENDING NATIONAL CONVENTIONS OF CERTAIN MILITARY ASSOCIATIONS.

(a) AUTHORITY.—Section 107(a)(2) of title 32, United States

Code, is amended—

(1) by striking ‘‘officers’’ and inserting ‘‘members’’;

(2) by striking ‘‘Army General Staff’’ and inserting ‘‘Army

Staff’’; and

(3) by striking ‘‘the National Guard Association of the

United States’’ and inserting ‘‘the Enlisted Association of the

National Guard of the United States, the National Guard

Association of the United States,’’.

(b) EFFECTIVE DATE.—The amendments made by subsection

(a) shall not apply with respect to funds appropriated for a fiscal

year before fiscal year 2004.

SEC. 515. EXPANDED AUTHORITY FOR USE OF READY RESERVE IN

RESPONSE TO TERRORISM.

Section 12304 of title 10, United States Code, is amended—

(1) in subsection (b)(2), by striking ‘‘catastrophic’’ and

inserting ‘‘significant’’; and

(2) by adding at the end of subsection (c) the following

new paragraph:

‘‘(3) No unit or member of a reserve component may be ordered

to active duty under this section to provide assistance referred

to in subsection (b) unless the President determines that the
H. R. 1588—70

requirements for responding to an emergency referred to in that

subsection have exceeded, or will exceed, the response capabilities

of local, State, and Federal civilian agencies.’’.

SEC. 516. NATIONAL GUARD OFFICERS ON ACTIVE DUTY IN COMMAND

OF NATIONAL GUARD UNITS.

(a) CONTINUATION IN STATE STATUS.—Subsection (a) of section

325 of title 32, United States Code, is amended— (1) by striking ‘‘(a) Each’’ and inserting ‘‘(a) RELIEF

REQUIRED.—(1) Except as provided in paragraph (2), each’’;

and

(2) by adding at the end the following new paragraph:

‘‘(2) An officer of the Army National Guard of the United

States or the Air National Guard of the United States is not

relieved from duty in the National Guard of his State or Territory,

or of Puerto Rico or the District of Columbia, under paragraph

(1) while serving on active duty in command of a National Guard

unit if—

‘‘(A) the President authorizes such service in both duty

statuses; and

‘‘(B) the Governor of his State or Territory or Puerto Rico,

or the commanding general of the District of Columbia National

Guard, as the case may be, consents to such service in both

duty statuses.’’.

(b) FORMAT AMENDMENT.—Subsection (b) of such section is

amended by inserting ‘‘RETURN TO STATE STATUS.—’’ after ‘‘(b)’’.

SEC. 517. PRESIDENTIAL REPORT ON MOBILIZATION OF RESERVE

COMPONENT PERSONNEL AND SECRETARY OF DEFENSE

ASSESSMENT.

(a) PRESIDENTIAL REPORT.—Not later than six months after

the date of the enactment of this Act, the President shall transmit

to Congress a report on the mobilization during fiscal years 2002

and 2003 of members of the reserve components. The report shall

include, for each of those fiscal years, the following:

(1) The number of members of the reserve components

who were called or ordered to active duty under a provision

of law specified in section 101(a)(13)(B) of title 10, United

States Code.

(2) Of the members counted under paragraph (1), the

number who, under a call or order to active duty referred

to in paragraph (1), served on active duty for one year or

more (including any extension on active duty) and, for those

members, specification of their military specialties and the

number of such members in each such specialty.

(3) Of the members counted under paragraph (1), the

number who, under a provision of law referred to in paragraph

(1), were called or ordered to active duty more than once and,

for those members, specification of their military specialties

and the number of such members in each such specialty.

(b) ASSESSMENT BY SECRETARY OF DEFENSE.—Not later than

one year after the date of the enactment of this Act, the Secretary

of Defense shall submit to the Committee on Armed Services of

the Senate and the Committee on Armed Services of the House

of Representatives the following:

(1) A description of the effects on reserve component

recruitment and retention that have resulted from—
H. R. 1588—71

(A) the calls and orders of Reserves to active duty

during fiscal years 2002 and 2003; and

(B) the tempo of the service of the Reserves on the

active duty to which called or ordered.

(2) A description of changes in the Armed Forces, including

any changes in the allocation of roles and missions, in force

structure, and in capabilities between the active components

and the reserve components of the Armed Forces, that are

envisioned by the Secretary of Defense on the basis of—

(A) the effects discussed under paragraph (1);

(B) the lessons learned from calling and ordering the

reserve components to active duty during fiscal years 2002

and 2003; or

(C) future military force structure and capabilities

requirements.

(3) On the basis of the lessons learned as a result of

calling and ordering members of the reserve components to

active duty during fiscal years 2002 and 2003, an assessment

of the process for calling and ordering such members to active

duty, preparing such members for active duty, processing such

members into the force upon entry onto active duty, and

deploying such members, including an assessment of the adequacy of the alert and notification process from the perspectives

of individual members, of reserve component units, and of

employers of such members.

SEC. 518. AUTHORITY FOR THE USE OF OPERATION AND MAINTENANCE FUNDS FOR PROMOTIONAL ACTIVITIES OF THE

NATIONAL COMMITTEE FOR EMPLOYER SUPPORT OF

THE GUARD AND RESERVE.

Section 2241 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(c) ACTIVITIES OF THE NATIONAL COMMITTEE FOR EMPLOYER

SUPPORT OF THE GUARD AND RESERVE.—Amounts appropriated for

operation and maintenance may, under regulations prescribed by

the Secretary of Defense, be used by the Secretary for official

reception, representation, and advertising activities and materials

of the National Committee for Employer Support of the Guard

and Reserve to further employer commitments to their employees

who are members of a reserve component.’’.

Subtitle C—ROTC and Military Service

Academies

SEC. 521. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR

CADETS AND MIDSHIPMEN RECEIVING ROTC SCHOLARSHIPS.

(a) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE ON ACTIVE

DUTY.—Section 2107(c) of title 10, United States Code, is amended

by adding at the end the following new paragraphs: ‘‘(3) In the case of a cadet or midshipman eligible to receive

financial assistance under paragraph (1) or (2), the Secretary of

the military department concerned may, in lieu of all or part of

the financial assistance described in paragraph (1), provide financial

assistance in the form of room and board expenses for the cadet
H. R. 1588—72

or midshipman and other expenses required by the educational

institution.

‘‘(4) The total amount of financial assistance, including the

payment of room and board and other educational expenses, provided to a cadet or midshipman in an academic year under this

subsection may not exceed an amount equal to the amount that

could be provided as financial assistance for such cadet or midshipman under paragraph (1) or (2), or another amount determined

by the Secretary concerned, without regard to whether room and

board and other educational expenses for such cadet or midshipman

are paid under paragraph (3).’’.

(b) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE IN TROOP

PROGRAM UNITS.—Section 2107a(c) of such title is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

(2) by adding at the end the following new paragraphs:

‘‘(2) In the case of a cadet eligible to receive financial assistance

under paragraph (1), the Secretary of the military department

concerned may, in lieu of all or part of the financial assistance

described in paragraph (1), provide financial assistance in the form

of room and board expenses for such cadet and other expenses

required by the educational institution.

‘‘(3) The total amount of financial assistance, including the

payment of room and board and any other educational expenses,

provided to a cadet in an academic year under this subsection

may not exceed an amount equal to the amount that could be

provided as financial assistance for such cadet under paragraph

(1), or another amount determined by the Secretary of the Army,

without regard to whether the room and board and other educational expenses for such cadet are paid under paragraph (2).’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to payment of expenses of cadets and midshipmen

of the Senior Reserve Officers’ Training Corps program that are

due after the date of the enactment of this Act.

SEC. 522. INCREASE IN ALLOCATION OF SCHOLARSHIPS UNDER ARMY

RESERVE ROTC SCHOLARSHIP PROGRAM TO STUDENTS

AT MILITARY JUNIOR COLLEGES.

Section 2107a(h) of title 10, United States Code, is amended

by striking ‘‘10’’ each place it appears and inserting ‘‘17’’.

SEC. 523. AUTHORITY FOR NONSCHOLARSHIP SENIOR ROTC SOPHOMORES TO VOLUNTARILY CONTRACT FOR AND RECEIVE

SUBSISTENCE ALLOWANCE.

(a) AUTHORITY FOR ALLOWANCE.—Section 209 of title 37, United

States Code, is amended—

(1) by redesignating subsections (c) and (d) as subsections

(d) and (e), respectively; and

(2) by inserting after subsection (b) the following new subsection (c):

‘‘(c) NONSCHOLARSHIP SENIOR ROTC MEMBERS NOT IN

ADVANCED TRAINING.—A member of the Selected Reserve Officers’

Training Corps who has entered into an agreement under section

2103a of title 10 is entitled to a monthly subsistence allowance

at a rate prescribed under subsection (a). That allowance may

be paid to the member by reason of such agreement for a maximum

of 20 months.’’.
H. R. 1588—73

(b) AUTHORITY TO ACCEPT ENROLLMENT.—(1) Chapter 103 of

title 10, United States Code, is amended by inserting after section

2103 the following new section:

‘‘§ 2103a. Students not eligible for advanced training: commitment to military service

‘‘(a) AUTHORITY.—A member of the program who has completed

successfully the first year of a four-year Senior Reserve Officers’ Training Corps course and who is not eligible for advanced training

under section 2104 of this title and is not a cadet or midshipman

appointed under section 2107 of this title may— ‘‘(1) contract with the Secretary of the military department

concerned, or the Secretary’s designated representative, to serve

for the period required by the program; and ‘‘(2) agree in writing to accept an appointment, if offered,

as a commissioned officer in the Army, Navy, Air Force, or

Marine Corps, as the case may be, and to serve in the armed

forces for the period prescribed by the Secretary.

‘‘(b) ELIGIBILTY REQUIREMENTS.—A member of the program may

enter into a contract and agreement under this section (and receive

a subsistence allowance under section 209(c) of title 37) only if

the person—

‘‘(1) is a citizen of the United States;

‘‘(2) enlists in an armed force under the jurisdiction of

the Secretary of the military department concerned for the

period prescribed by the Secretary; and ‘‘(3) executes a certificate of loyalty in such form as the

Secretary of Defense prescribes or take a loyalty oath as prescribed by the Secretary.

‘‘(c) PARENTAL CONSENT FOR MINORS.—A member of the program who is a minor may enter into a contract under subsection

(a)(1) only with the consent of the member’s parent or guardian. ‘‘(d) TERMINATION OF AUTHORITY.—No contract may be entered

into under subsection (a)(1) after December 31, 2006.’’. (2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 2103

the following new item:

‘‘2103a. Students not eligible for advanced training: commitment to military service.’’.

(c) EFFECTIVE DATE.—The amendments made by subsections

(a) and (b) shall take effect on January 1, 2004.

SEC. 524. APPOINTMENTS TO MILITARY SERVICE ACADEMIES FROM

NOMINATIONS MADE BY DELEGATES FROM GUAM,

VIRGIN ISLANDS, AND AMERICAN SAMOA.

(a) UNITED STATES MILITARY ACADEMY.—Section 4342(a) of title

10, United States Code, is amended—

(1) in paragraphs (6) and (8), by striking ‘‘Two’’ and

inserting ‘‘Three’’; and

(2) in paragraph (9), by striking ‘‘One’’ and inserting ‘‘Two’’.

(b) UNITED STATES NAVAL ACADEMY.—Section 6954(a) of such

title is amended—

(1) in paragraphs (6) and (8), by striking ‘‘Two’’ and

inserting ‘‘Three’’; and

(2) in paragraph (9), by striking ‘‘One’’ and inserting ‘‘Two’’.

(c) UNITED STATES AIR FORCE ACADEMY.—Section 9342(a) of

such title is amended—
H. R. 1588—74

(1) in paragraphs (6) and (8), by striking ‘‘Two’’ and

inserting ‘‘Three’’; and

(2) in paragraph (9), by striking ‘‘One’’ and inserting ‘‘Two’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to the nomination of candidates for appointment to the United States Military Academy, the United States

Naval Academy, and the United States Air Force Academy for

classes entering those academies after the date of the enactment

of this Act.

SEC. 525. READMISSION TO SERVICE ACADEMIES OF CERTAIN FORMER

CADETS AND MIDSHIPMEN.

(a) INSPECTOR GENERAL REPORT AS BASIS FOR READMISSION.—

(1) When a formal report by an Inspector General within the Department of Defense concerning the circumstances of the separation

of a cadet or midshipman from one of the service academies contains

a specific finding specified in paragraph (2), the Secretary of the

military department concerned may use that report as the sole

basis for readmission of the former cadet or midshipman to the

respective service academy.

(2) A finding specified in this paragraph is a finding that

substantiates that a former service academy cadet or midshipman,

while attending the service academy—

(A) received administrative or punitive action or nonjudicial

punishment as a result of reprisal;

(B) resigned in lieu of disciplinary, administrative, or other

action that the formal report concludes constituted a threat

of reprisal; or

(C) otherwise suffered an injustice that contributed to the

resignation of the cadet or midshipman.

(b) READMISSION.—In the case of a formal report by an Inspector

General described in subsection (a), the Secretary concerned shall

offer the former cadet or midshipman an opportunity for readmission to the service academy from which the former cadet or midshipman resigned, if the former cadet or midshipman is otherwise

eligible for such readmission.

(c) APPLICATIONS FOR READMISSION.—A former cadet or midshipman described in a report referred to in subsection (a) may

apply for readmission to the service academy on the basis of that

report and shall not be required to submit the request for readmission through a board for the correction of military records.

(d) REGULATIONS TO MINIMIZE ADVERSE IMPACT UPON READMISSION.—The Secretary of each military department shall prescribe

regulations for the readmission of a former cadet or midshipman

described in subsection (a), with the goal, to the maximum extent

practicable, of readmitting the former cadet or midshipman at no

loss of the academic or military status held by the former cadet

at the time of resignation.

(e) CONSTRUCTION WITH OTHER REMEDIES.—This section does

not preempt or supersede any other remedy that may be available

to a former cadet or midshipman.

(f) SERVICE ACADEMIES.—In this section, the term ‘‘service

academy’’ means the following:

(1) The United States Military Academy.

(2) The United States Naval Academy.

(3) The United States Air Force Academy.
H. R. 1588—75

SEC. 526. DEFENSE TASK FORCE ON SEXUAL HARASSMENT AND

VIOLENCE AT THE MILITARY SERVICE ACADEMIES.

(a) ESTABLISHMENT.—The Secretary of Defense shall establish

a Department of Defense task force to examine matters relating

to sexual harassment and violence at the United States Military

Academy and the United States Naval Academy.

(b) RECOMMENDATIONS.—Not later than 12 months after the

date on which all members of the task force have been appointed,

the task force shall submit to the Secretary of Defense a report

recommending ways by which the Department of Defense and the

Department of the Army and the Department of the Navy may

more effectively address matters relating to sexual harassment

and violence at the United States Military Academy and the United

States Naval Academy, respectively. The report shall include an

assessment of, and recommendations (including any recommended

changes in law) for measures to improve, with respect to sexual

harassment and violence at those academies, the following:

(1) Victims’ safety programs.

(2) Offender accountability.

(3) Effective prevention of sexual harassment and violence.

(4) Collaboration among military organizations with responsibility or jurisdiction with respect to sexual harassment and

violence.

(5) Coordination between military and civilian communities, including local support organizations, with respect to

sexual harassment and violence.

(6) Coordination between military and civilian communities, including civilian law enforcement relating to acts of

sexual harassment and violence.

(7) Data collection and case management and tracking.

(8) Curricula and training, including standard training programs for cadets at the United States Military Academy and

midshipmen at the United States Naval Academy and for

permanent personnel assigned to those academies.

(9) Responses to sexual harassment and violence at those

academies, including standard guidelines.

(10) Other issues identified by the task force relating to

sexual harassment and violence at those academies.

(c) METHODOLOGY.—The task force shall consider the findings

and recommendations of previous reviews and investigations of

sexual harassment and violence conducted for those academies as

one of the bases for its assessment.

(d) REPORT.—(1) The task force shall submit to the Secretary

of Defense and the Secretaries of the Army and the Navy a report

on the activities of the task force and on the activities of the

United States Military Academy and the United States Naval

Academy to respond to sexual harassment and violence at those

academies.

(2) The report shall include the following:

(A) Any barriers to implementation of improvements as

a result of those efforts.

(B) Other areas of concern not previously addressed in

prior reports.

(C) The findings and conclusions of the task force.

(D) Any recommendations for changes to policy and law

as the task force considers appropriate, including whether cases

of sexual assault at those academies should be included in
H. R. 1588—76

the Department of Defense database known as the Defense

Incident-Based Reporting System.

(3) Within 90 days after receipt of the report under paragraph

(1) the Secretary of Defense shall submit the report, together with

the Secretary’s evaluation of the report, to the Committees on

Armed Services of the Senate and House of Representatives.

(e) REPORT ON AIR FORCE ACADEMY.—Simultaneously with the

submission of the report under subsection (d)(3), the Secretary

of Defense, in coordination with the Secretary of the Air Force,

shall submit to the committees specified in that subsection the

Secretary’s assessment of the effectiveness of corrective actions

being taken at the United States Air Force Academy as a result

of various investigations conducted at that Academy into matters

involving sexual assault and harassment.

(f) COMPOSITION.—(1) The task force shall consist of not more

than 14 members, to be appointed by the Secretary of Defense.

Members shall be appointed from each of the Army, Navy, Air

Force, and Marine Corps, and shall include an equal number of

personnel of the Department of Defense (military and civilian)

and persons from outside the Department of Defense. Members

appointed from outside the Department of Defense may be

appointed from other Federal departments and agencies, from State

and local agencies, or from the private sector.

(2) The Secretary shall ensure that the membership of the

task force appointed from the Department of Defense includes at

least one judge advocate.

(3) In appointing members to the task force, the Secretary

may—

(A) consult with the Attorney General regarding a representative from the Office of Violence Against Women of the

Department of Justice; and

(B) consult with the Secretary of Health and Human Services regarding a representative from the Women’s Health office

of the Department of Health and Human Services.

(4) Each member of the task force appointed from outside

the Department of Defense shall be an individual who has demonstrated expertise in the area of sexual harassment and violence

or shall be appointed from one of the following:

(A) A representative from the Office of Civil Rights of

the Department of Education.

(B) A representative from the Centers for Disease Control

and Prevention of the Department of Health and Human Services.

(C) A sexual assault policy and advocacy organization.

(D) A civilian law enforcement agency.

(E) A judicial policy organization.

(F) A national crime victim policy organization.

(5) The members of the task force shall be appointed not

later than 120 days after the date of the enactment of this Act.

(g) CO-CHAIRS OF THE TASK FORCE.—There shall be two cochairs of the task force. One of the co-chairs shall be designated

by the Secretary of the Defense at the time of appointment from

among the Department of Defense personnel on the task force.

The other co-chair shall be selected from among the members

appointed from outside the Department of Defense by those members.
H. R. 1588—77

(h) ADMINISTRATIVE SUPPORT.—(1) Each member of the task

force who is a member of the Armed Forces or a civilian officer

or employee of the United States shall serve without compensation

(other than compensation to which entitled as a member of the

Armed Forces or an officer or employee of the United States, as

the case may be). Other members of the task force shall be

appointed in accordance with, and subject to, section 3161 of title

5, United States Code.

(2) The Deputy Under Secretary of Defense for Personnel and

Readiness, under the direction of the Under Secretary of Defense

for Personnel and Readiness, shall provide oversight of the task

force. The Washington Headquarters Services of the Department

of Defense shall provide the task force with personnel, facilities,

and other administrative support as necessary for the performance

of the task force’s duties.

(3) The Deputy Under Secretary shall coordinate with the Secretary of the Army to provide visits of the task force to the United

States Military Academy and with the Secretary of the Navy to

provide visits of the task force to the United States Naval Academy.

(i) TERMINATION.—The task force shall terminate 90 days after

the date on which the report of the task force is submitted to

the Committees on Armed Services of the Senate and House of

Representatives pursuant to subsection (d)(3).

SEC. 527. ACTIONS TO ADDRESS SEXUAL HARASSMENT AND VIOLENCE

AT THE SERVICE ACADEMIES.

(a) POLICY ON SEXUAL HARASSMENT AND VIOLENCE.—(1) Under

guidance prescribed by the Secretary of Defense—

(A) the Secretary of the Army shall direct the Superintendent of the United States Military Academy to prescribe

a policy on sexual harassment and violence applicable to the

personnel of the United States Military Academy;

(B) the Secretary of the Navy shall direct the Superintendent of the United States Naval Academy to prescribe

a policy on sexual harassment and violence applicable to the

personnel of the United States Naval Academy; and

(C) the Secretary of the Air Force shall direct the Superintendent of the United States Air Force Academy to prescribe

a policy on sexual harassment and violence applicable to the

personnel of the United States Air Force Academy.

(2) The policy on sexual harassment and violence prescribed

for an academy under paragraph (1) shall specify the following:

(A) Programs to promote awareness of the incidence of

rape, acquaintance rape, and other sexual offenses of a criminal

nature that involve academy personnel.

(B) Procedures that a cadet or midshipman should follow

in the case of an occurrence of sexual harassment or violence,

including—

(i) a specification of the person or persons to whom

the alleged offense should be reported;

(ii) a specification of any other person whom the victim

should contact; and

(iii) procedures on the preservation of evidence potentially necessary for proof of criminal sexual assault.

(C) Procedures for disciplinary action in cases of alleged

criminal sexual assault involving academy personnel.
H. R. 1588—78

(D) Any other sanction authorized to be imposed in a

substantiated case of harassment or violence involving academy

personnel in rape, acquaintance rape, or any other criminal

sexual offense, whether forcible or nonforcible.

(E) Required training on the policy for all academy personnel, including the specific training required for personnel

who process allegations of sexual harassment or violence

involving academy personnel.

(3) In prescribing the policy on sexual harassment and violence

for an academy under paragraph (1), the Superintendent of that

academy shall take into consideration—

(A) the findings, conclusions, and recommendations of the

panel established pursuant to title V of the Emergency Wartime

Supplemental Appropriations Act, 2003 (Public Law 108–11;

117 Stat. 609) to review sexual misconduct allegations at the

United States Air Force Academy; and

(B) the findings, conclusions, and recommendations of other

previous reviews and investigations of sexual harassment and

violence conducted with respect to one or more of the academies

covered by paragraph (1).

(4) The policy for each such academy required by paragraph

(1) shall be prescribed not later than June 1, 2004.

(b) ANNUAL ASSESSMENT.—(1) The Secretary of Defense,

through the Secretaries of the military departments, shall direct

each Superintendent to conduct at the academy under the jurisdiction of that Superintendent an assessment during each academy

program year to determine the effectiveness of the academy’s policies, training, and procedures on sexual harassment and violence

to prevent criminal sexual harassment and violence involving

academy personnel.

(2) For the assessment for each of the 2004, 2005, 2006, 2007,

and 2008 academy program years, the Superintendent shall conduct

a survey of all academy personnel—

(A) to measure—

(i) the incidence, during that program year, of sexual

harassment and violence events, on or off the academy

reservation, that have been reported to officials of the

academy; and

(ii) the incidence, in that program year, of sexual

harassment and violence events, on or off the academy

reservation, that have not been reported to officials of

the academy; and

(B) to assess the perceptions of academy personnel on—

(i) the policies, training, and procedures on sexual

harassment and violence involving academy personnel;

(ii) the enforcement of such policies;

(iii) the incidence of sexual harassment and violence

involving academy personnel in such program year; and

(iv) any other issues relating to sexual harassment

and violence involving academy personnel.

(c) ANNUAL REPORT.—(1) The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force shall direct

the Superintendent of the United States Military Academy, the

Superintendent of the United States Naval Academy, and the Superintendent of the United States Air Force Academy, respectively,

to submit to the Secretary a report on sexual harassment and
H. R. 1588—79

violence involving academy personnel for each of the 2004, 2005,

2006, 2007, and 2008 academy program years.

(2) The annual report for an academy under paragraph (1)

shall contain, for the academy program year covered by the report,

the following matters:

(A) The number of sexual assaults, rapes, and other sexual

offenses involving academy personnel that have been reported

to academy officials during the program year, and the number

of the reported cases that have been substantiated.

(B) The policies, procedures, and processes implemented

by the Secretary of the military department concerned and

the leadership of the academy in response to sexual harassment

and violence involving academy personnel during the program

year.

(C) In the report for the 2004 academy program year,

a discussion of the survey conducted under subsection (b),

together with an analysis of the results of the survey and

a discussion of any initiatives undertaken on the basis of such

results and analysis.

(D) In the report for each of the subsequent academy program years, the results of the annual survey conducted in

such program year under subsection (b).

(E) A plan for the actions that are to be taken in the

following academy program year regarding prevention of and

response to sexual harassment and violence involving academy

personnel.

(3) The Secretary of a military department shall transmit the

annual report on an academy under this subsection, together with

the Secretary’s comments on the report, to the Secretary of Defense

and the Board of Visitors of the academy.

(4) The Secretary of Defense shall transmit the annual report

on each academy under this subsection, together with the Secretary’s comments on the report to, the Committees on Armed

Services of the Senate and the House of Representatives.

(5) The report for the 2004 academy program year for an

academy shall be submitted to the Secretary of the military department concerned not later than one year after the date of the

enactment of this Act.

(6) In this subsection, the term ‘‘academy program year’’ with

respect to a year, means the academy program year that ends

in that year.

SEC. 528. STUDY AND REPORT RELATED TO PERMANENT PROFESSORS

AT THE UNITED STATES AIR FORCE ACADEMY.

(a) SECRETARY OF AIR FORCE RECOMMENDATIONS.—Not later

than six months after the date of the enactment of the Act, the

Secretary of the Air Force shall submit to the Secretary of Defense

a report containing recommended changes in policy and law pertaining to the selection, tenure, utilization, responsibilities, and

qualifications of the permanent professors at the Air Force

Academy.

(b) SECRETARY OF DEFENSE RECOMMENDATIONS.—Not later

than one month after receiving the report of the Secretary of the

Air Force under subsection (a), the Secretary of Defense shall

submit to the Committees on Armed Services of the Senate and

House of Representatives the report received from the Secretary
H. R. 1588—80

of the Air Force, together with the recommendations of the Secretary of Defense for action and proposals for legislation.

(c) MATTERS TO BE CONSIDERED BY SECRETARY OF AIR FORCE.—

The Secretary of the Air Force in preparing the report required

by subsection (a), shall, at a minimum, do the following:

(1) Conduct a comprehensive review and assessment of

the existing faculty system at the Air Force Academy, including

both civilian and military permanent professorships.

(2) Take into account the findings, conclusions, and recommendation regarding faculty and permanent professorships

at the Air Force Academy of—

(A) the report of the Panel to Review Sexual Misconduct Allegations at the United States Air Force

Academy (referred to as the ‘‘Fowler Panel’’), dated September 22, 2003;

(B) the report released on June 19, 2003, of the special

working group appointed by the Secretary of the Air Force

known as the Working Group Concerning the Deterrence

of and Response to Incidents of Sexual Assault at the

U.S. Air Force Academy, which was led by the General

Counsel of the Department of the Air Force; and

(C) the Agenda for Change of the Air Force Academy

dated March 26, 2003.

(3) Solicit information regarding the faculty and permanent

professorship systems at the United States Naval Academy

and the United States Military Academy and consider that

information as part of the required assessment.

(4) Consult with experts on higher education outside the

Department of Defense.

SEC. 529. DEAN OF THE FACULTY OF THE UNITED STATES AIR FORCE

ACADEMY.

(a) AUTHORITY TO APPOINT DEAN FROM PERSONS OTHER THAN

AIR FORCE ACADEMY FACULTY HEADS OF DEPARTMENTS.—Subsection (a) of section 9335 of title 10, United States Code, is

amended to read as follows:

‘‘(a) The Dean of the Faculty is responsible to the Superintendent for developing and sustaining the curriculum and overseeing the faculty of the Academy. The qualifications, selection

procedures, training, pay grade, and retention of the Dean shall

be prescribed by the Secretary of the Air Force. If a person

appointed as the Dean is not an officer on active duty, the person

shall be appointed as a member of the Senior Executive Service.’’.

(b) CONFORMING AMENDMENTS.—Subsection (b) of such section

is amended—

(1) in the first sentence—

(A) by striking ‘‘of the Air Force’’ and inserting ‘‘on

active duty’’; and

(B) by inserting ‘‘(or the equivalent)’’ after ‘‘brigadier

general’’ both places it appears; and

(2) in the last sentence—

(A) by inserting ‘‘applicable’’ before ‘‘limitation’’; and

(C) by striking ‘‘of the Air Force’’.

(c) STATUTORY STATUS AS PERMANENT PROFESSOR.—(1) Section

9331(b)(2) of such title is amended by striking ‘‘dean of the Faculty,

who is a permanent professor’’ and inserting ‘‘Dean of the Faculty’’.
H. R. 1588—81

(2) Section 9336(a) of such title is amended by striking ‘‘,

other than the Dean of the Faculty,’’.

(d) APPLICABILITY.—The amendments made by this section shall

apply with respect to any Dean of the Faculty of the United States

Air Force Academy selected on or after the date of the enactment

of this Act.

Subtitle D—Other Military Education and

Training Matters

SEC. 531. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD

THE DEGREE OF MASTER OF OPERATIONAL STUDIES.

(a) AUTHORITY.—Section 7102 of title 10, United States Code,

is amended—

(1) by redesignating subsections (c) and (d) as subsections

(d) and (e), respectively; and

(2) by inserting after subsection (b) the following new subsection (c):

‘‘(c) COMMAND AND STAFF COLLEGE OF THE MARINE CORPS

UNIVERSITY.—Upon the recommendation of the Director and faculty

of the Command and Staff College of the Marine Corps University,

the President of the Marine Corps University may confer the degree

of master of operational studies upon graduates of the Command

and Staff College’s School of Advanced Warfighting who fulfill the

requirements for that degree.’’.

(b) EFFECTIVE DATE.—The authority to confer the degree of

master of operational studies under section 7102(c) of title 10,

United States Code (as added by subsection (a)) may not be exercised until the Secretary of Education determines, and certifies

to the President of the Marine Corps University, that the requirements established by the Command and General Staff College of

the Marine Corps University for that degree are in accordance

with generally applicable requirements for a degree of master of

arts.

SEC. 532. AUTHORIZATION FOR NAVAL POSTGRADUATE SCHOOL TO

PROVIDE INSTRUCTION TO ENLISTED MEMBERS

PARTICIPATING IN CERTAIN PROGRAMS.

(a) EXPANDED ELIGIBILITY FOR ENLISTED PERSONNEL.—Subsection (a)(2) of section 7045 of title 10, United States Code, is

amended to read as follows:

‘‘(2)(A) The Secretary may permit an enlisted member of the

armed forces to receive instruction at the Naval Postgraduate School

through attendance at an executive level seminar.

‘‘(B) The Secretary may permit an eligible enlisted member

of the armed forces to receive instruction at the Postgraduate School

in connection with pursuit of a program of education in information

assurance as a participant in the Information Security Scholarship

program under chapter 112 of this title. To be eligible for instruction

under this subparagraph, the enlisted member must have been

awarded a baccalaureate degree by an institution of higher education.

‘‘(C) In addition to instruction authorized under subparagraphs

(A) and (B), the Secretary may, on a space-available basis, permit
H. R. 1588—82

an enlisted member of the armed forces who is assigned permanently to the staff of the Postgraduate School or to a nearby command to receive instruction at the Postgraduate School.’’.

(b) REIMBURSEMENT.—Subsection (b) of such section is

amended—

(1) by striking ‘‘The Department’’ and inserting ‘‘(1) Except

as provided under paragraph (3), the Department’’;

(2) by striking ‘‘officers’’ in the first sentence and inserting

‘‘members’’;

(3) by designating the second sentence as paragraph (2)

and in that sentence—

(A) by inserting ‘‘under subsection (a)(2)(C)’’ after ‘‘permitted’’;

(B) by inserting ‘‘on a space-available basis’’ after

‘‘instruction at the Postgraduate School’’; and

(C) by striking ‘‘(taking into consideration the admission of enlisted members on a space-available basis)’’; and

(4) by adding at the end the following new paragraph:

‘‘(3) The requirements for payment of costs and fees under

paragraph (1) shall be subject to such exceptions as the Secretary

of Defense may prescribe for members of the armed forces who

receive instruction at the Postgraduate School in connection with

pursuit of a degree or certification as participants in the Information

Security Scholarship program under chapter 112 of this title.’’.

SEC. 533. COST REIMBURSEMENT REQUIREMENTS FOR PERSONNEL

RECEIVING INSTRUCTION AT THE AIR FORCE INSTITUTE

OF TECHNOLOGY.

(a) REIMBURSEMENT FROM OTHER SERVICES.—Section 9314 of

title 10, United States Code, is amended by adding at the end

the following new subsection:

‘‘(c) REIMBURSEMENT.—(1) The Department of the Army, the

Department of the Navy, and the Department of Homeland Security

shall bear the cost of the instruction at the Air Force Institute

of Technology that is received by members of the armed forces

detailed for that instruction by the Secretaries of the Army, Navy,

and Homeland Security, respectively.

‘‘(2) Members of the Army, Navy, Marine Corps, and Coast

Guard may only be detailed for instruction at the Institute on

a space-available basis.

‘‘(3) In the case of an enlisted member of the Army, Navy,

Marine Corps, and Coast Guard permitted to receive instruction

at the Institute, the Secretary of the Air Force shall charge that

member only for such costs and fees as the Secretary considers

appropriate (taking into consideration the admission of enlisted

members on a space-available basis).’’.

(b) STYLISTIC AMENDMENTS.—(1) Subsection (a) of such section

is amended by inserting ‘‘AUTHORITY TO CONFER DEGREES.—’’ after

‘‘(a)’’.

(2) Subsection (b) of such section is amended by inserting

‘‘CIVILIAN FACULTY.—’’ after ‘‘(b)’’.

(c) CLARIFYING AMENDMENT.—Subsection (a) of such section

is further amended— (1) by striking ‘‘When the’’ and all that follows through ‘‘the Commander’’ and inserting ‘‘(1) The Commander’’;

(2) by striking ‘‘that Institute’’ and inserting ‘‘the United

States Air Force Institute of Technology’’; and
H. R. 1588—83

(3) by adding at the end the following new paragraph: ‘‘(2) The authority under this subsection to confer a degree

is effective only during a period when the United States Air Force

Institute of Technology is accredited with respect to the award

of that degree by a nationally recognized accreditation association

or authority.’’.

SEC. 534. INCLUSION OF ACCRUED INTEREST IN AMOUNTS THAT MAY

BE REPAID UNDER SELECTED RESERVE CRITICAL

SPECIALTIES EDUCATION LOAN REPAYMENT PROGRAM.

Section 16301 of title 10, United States Code, is amended— (1) in subsection (b), by inserting before the period at

the end the following: ‘‘, plus the amount of any interest that

may accrue during the current year’’; and

(2) in subsection (c), by adding at the end the following

new sentence: ‘‘For the purposes of this section, any interest

that has accrued on the loan for periods before the current

year shall be considered as within the total loan amount that

shall be repaid.’’.

SEC. 535. FUNDING OF EDUCATION ASSISTANCE ENLISTMENT INCENTIVES TO FACILITATE NATIONAL SERVICE THROUGH

DEPARTMENT OF DEFENSE EDUCATION BENEFITS FUND.

(a) IN GENERAL.—Subsection (j) of section 510 of title 10, United

States Code, is amended to read as follows:

‘‘(j) FUNDING.—(1) Amounts for the payment of incentives under

paragraphs (1) and (2) of subsection (e) shall be derived from

amounts available to the Secretary of the military department

concerned for the payment of pay, allowances and other expenses

of the members of the armed force concerned. ‘‘(2) Amounts for the payment of incentives under paragraphs

(3) and (4) of subsection (e) shall be derived from the Department

of Defense Education Benefits Fund under section 2006 of this

title.’’.

(b) CONFORMING AMENDMENTS.—Section 2006(b) of such title

is amended— (1) in paragraph (1), by inserting ‘‘paragraphs (3) and (4)

of section 510(e) and’’ after ‘‘Department of Defense benefits

under’’; and

(2) in paragraph (2), by adding at the end the following

new subparagraph: ‘‘(E) The present value of future benefits payable from

the Fund for educational assistance under paragraphs (3)

and (4) of section 510(e) of this title to persons who during

such period become entitled to such assistance.’’.

SEC. 536. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES

AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

(a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR

FISCAL YEAR 2004.—Of the amount authorized to be appropriated

pursuant to section 301(5) for operation and maintenance for

Defense-wide activities, $30,000,000 shall be available only for the

purpose of providing educational agencies assistance to local educational agencies.

(b) NOTIFICATION.—Not later than June 30, 2004, the Secretary

of Defense shall notify each local educational agency that is eligible

for educational agencies assistance for fiscal year 2004 of—
H. R. 1588—84

(1) that agency’s eligibility for the assistance; and

(2) the amount of the assistance for which that agency

is eligible.

(c) DISBURSEMENT OF FUNDS.—The Secretary of Defense shall

disburse funds made available under subsection (a) not later than

30 days after the date on which notification to the eligible local

educational agencies is provided pursuant to subsection (b).

(d) DEFINITIONS.—In this section:

(1) The term ‘‘educational agencies assistance’’ means

assistance authorized under section 386(b) of the National

Defense Authorization Act for Fiscal Year 1993 (Public Law

102–484; 20 U.S.C. 7703 note).

(2) The term ‘‘local educational agency’’ has the meaning

given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 537. IMPACT AID ELIGIBILITY FOR HEAVILY IMPACTED LOCAL

EDUCATIONAL AGENCIES AFFECTED BY PRIVATIZATION

OF MILITARY HOUSING.

(a) TRANSITION.—Section 8003(b)(2)(H) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(H)) is

amended by striking clauses (i) and (ii) and inserting the following:

‘‘(i) ELIGIBILITY.—For any fiscal year, a heavily

impacted local educational agency that received a basic

support payment under this paragraph for the prior

fiscal year, but is ineligible for such payment for the

current fiscal year under subparagraph (B), (C), (D),

or (E), as the case may be, by reason of the conversion

of military housing units to private housing described

in clause (iii), shall be deemed to meet the eligibility

requirements under subparagraph (B) or (C), as the

case may be, for the period during which the housing

units are undergoing such conversion.

‘‘(ii) AMOUNT OF PAYMENT.—The amount of a payment to a heavily impacted local educational agency

for a fiscal year by reason of the application of clause

(i), and calculated in accordance with subparagraph

(D) or (E), as the case may be, shall be based on

the number of children in average daily attendance

in the schools of such agency for the fiscal year and

under the same provisions of subparagraph (D) or (E)

under which the agency was paid during the prior

fiscal year.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect beginning with basic support payments under

section 8003(b)(2) of the Elementary and Secondary Education Act

of 1965 (20 U.S.C. 7703(b)(2)) for fiscal year 2003.

Subtitle D—Administrative Matters

SEC. 541. HIGH-TEMPO PERSONNEL MANAGEMENT AND ALLOWANCE.

(a) DEPLOYMENT MANAGEMENT.—Subsection (a) of section 991

of title 10, United States Code, is amended to read as follows: ‘‘(a) MANAGEMENT RESPONSIBILITIES.—(1) The deployment (or

potential deployment) of a member of the armed forces shall be

managed to ensure that the member is not deployed, or continued
H. R. 1588—85

in a deployment, on any day on which the total number of days

on which the member has been deployed—

‘‘(A) out of the preceding 365 days would exceed the oneyear high-deployment threshold; or

‘‘(B) out of the preceding 730 days would exceed the twoyear high-deployment threshold.

‘‘(2) In this subsection:

‘‘(A) The term ‘one-year high-deployment threshold’

means—

‘‘(i) 220 days; or

‘‘(ii) a lower number of days prescribed by the Secretary

of Defense, acting through the Under Secretary of Defense

for Personnel and Readiness.

‘‘(B) The term ‘two-year high-deployment threshold’

means—

‘‘(i) 400 days; or

‘‘(ii) a lower number of days prescribed by the Secretary

of Defense, acting through the Under Secretary of Defense

for Personnel and Readiness.

‘‘(3) A member may be deployed, or continued in a deployment,

without regard to paragraph (1) if the deployment, or continued

deployment, is approved by the Secretary of Defense. The authority

of the Secretary under the preceding sentence may only be delegated

to—

‘‘(A) a civilian officer of the Department of Defense

appointed by the President, by and with the advise and consent

of the Senate, or a member of the Senior Executive Service;

or ‘‘(B) a general or flag officer in that member’s chain of

command (including an officer in the grade of colonel, or in

the case of the Navy, captain, serving in a general or flag

officer position who has been selected for promotion to the

grade of brigadier general or rear admiral (lower half) in a

report of a selection board convened under section 611(a) or

14101(a) of this title that has been approved by the President).’’. (b) CHANGES FROM PER DIEM TO HIGH-DEPLOYMENT ALLOWANCE.—(1) Subsection (a) of section 436 of title 37, United States

Code, is amended to read as follows:

‘‘(a) MONTHLY ALLOWANCE.—The Secretary of the military

department concerned shall pay a high-deployment allowance to

a member of the armed forces under the Secretary’s jurisdiction

for each month during which the member—

‘‘(1) is deployed; and

‘‘(2) at any time during that month—

‘‘(A) has been deployed for 191 or more consecutive

days (or a lower number of consecutive days prescribed

by the Secretary of Defense, acting through the Under

Secretary of Defense for Personnel and Readiness);

‘‘(B) has been deployed, out of the preceding 730 days,

for a total of 401 or more days (or a lower number of

days prescribed by the Secretary of Defense, acting through

the Under Secretary of Defense for Personnel and Readiness); or

‘‘(C) in the case of a member of a reserve component,

is on active duty—

‘‘(i) under a call or order to active duty for a

period of more than 30 days that is the second (or
H. R. 1588—86

later) such call or order to active duty (whether voluntary or involuntary) for that member in support

of the same contingency operation; or

‘‘(ii) for a period of more than 30 days under a

provision of law referred to in section 101(a)(13)(B)

of title 10, if such period begins within one year after

the date on which the member was released from previous service on active duty for a period of more than

30 days under a call or order issued under such a

provision of law.’’.

(2) Subsection (c) of such section is amended to read as follows:

‘‘(c) RATE.—The monthly rate of the allowance payable to a

member under this section shall be determined by the Secretary

concerned, not to exceed $1,000 per month.’’.

(3) Such section is further amended by adding at the end

the following new subsections:

‘‘(g) AUTHORITY TO EXCLUDE CERTAIN DUTY ASSIGNMENTS.—

The Secretary concerned may exclude members serving in specified

duty assignments from eligibility for the high-deployment allowance

while serving in those assignments. Any such specification of duty

assignments may only be made with the approval of the Secretary

of Defense, acting through the Under Secretary of Defense for

Personnel and Readiness. Specification of a particular duty assignment for purposes of this subsection may not be implemented so

as to apply to the member serving in that position at the time

of such specification.

‘‘(h) PAYMENT FROM OPERATION AND MAINTENANCE FUNDS.—

The monthly allowance payable to a member under this section

shall be paid from appropriations available for operation and

maintenance for the armed force in which the member serves.’’.

(4) Such section is further amended—

(A) in subsection (d), by striking ‘‘per diem’’;

(B) in subsection (e), by striking ‘‘per diem’’ and inserting

‘‘allowance’’; and

(C) in subsection (f)—

(i) by striking ‘‘per diem’’ and inserting ‘‘allowance’’;

and

(ii) by striking ‘‘day on which’’ and inserting ‘‘month

during which’’.

(5)(A) The heading of such section is amended to read as

follows:

‘‘§ 436. High-deployment allowance: lengthy or numerous

deployments; frequent mobilizations’’.

(B) The item relating to such section in the table of sections

at the beginning of chapter 7 of such title is amended to read

as follows:

‘‘436. High-deployment allowance: lengthy or numerous deployments; frequent mobilizations.’’.

(c) CHANGES TO REPORTING REQUIREMENT.—Section 487(b)(5)

of title 10, United States Code, is amended to read as follows:

‘‘(5) For each of the armed forces, the description shall indicate,

for the period covered by the report—

‘‘(A) the number of members who received the high-deployment allowance under section 436 of title 37;
H. R. 1588—87

‘‘(B) the number of members who received each rate of

allowance paid;

‘‘(C) the number of members who received the allowance

for one month, for two months, for three months, for four

months, for five months, for six months, and for more than

six months; and

‘‘(D) the total amount spent on the allowance.’’.

SEC. 542. ENHANCED RETENTION OF ACCUMULATED LEAVE FOR HIGHDEPLOYMENT MEMBERS.

(a) ENHANCED AUTHORITY TO RETAIN ACCUMULATED LEAVE.—

Paragraph (1) of section 701(f) of title 10, United States Code,

is amended to read as follows:

‘‘(f)(1)(A) The Secretary concerned, under uniform regulations

to be prescribed by the Secretary of Defense, may authorize a

member described in subparagraph (B) who, except for this paragraph, would lose any accumulated leave in excess of 60 days

at the end of the fiscal year, to retain an accumulated total of

120 days leave.

‘‘(B) This subsection applies to a member who serves on active

duty for a continuous period of at least 120 days—

‘‘(i) in an area in which the member is entitled to special

pay under section 310(a) of title 37; or

‘‘(ii) while assigned to a deployable ship or mobile unit

or to other duty comparable to that specified in clause (i)

that is designated for the purpose of this subsection.

‘‘(C) Except as provided in paragraph (2), leave in excess of

60 days accumulated under this paragraph is lost unless it is

used by the member before the end of the third fiscal year after

the fiscal year in which the continuous period of service referred

to in subparagraph (B) terminated.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on October 1, 2003, or the date of the enactment

of this Act, whichever is later.

SEC. 543. STANDARDIZATION OF STATUTORY AUTHORITIES FOR

EXEMPTIONS FROM REQUIREMENT FOR ACCESS TO SECONDARY SCHOOLS BY MILITARY RECRUITERS.

(a) CONSISTENCY WITH ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—Paragraph (5) of section 503(c) of title 10,

United States Code, is amended by striking ‘‘apply to—’’ and all

that follows through ‘‘school which’’ and inserting ‘‘apply to a private

secondary school that’’.

(b) CORRECTION OF CROSS REFERENCE.—Paragraph (6)(A)(i) of

such section is amended by striking ‘‘14101’’ and ‘‘8801’’ and

inserting ‘‘9101’’ and ‘‘7801’’, respectively.

SEC. 544. PROCEDURES FOR CONSIDERATION OF APPLICATIONS FOR

AWARD OF THE PURPLE HEART MEDAL TO VETERANS

HELD AS PRISONERS OF WAR BEFORE APRIL 25, 1962.

Section 521 of the National Defense Authorization Act for Fiscal

Year 1996 (Public Law 104–106; 110 Stat. 309; 10 U.S.C. 1129

note) is amended by adding at the end the following new subsection: ‘‘(d) PROCEDURES FOR AWARD.—In determining whether a

former prisoner of war who submits an application for the award

of the Purple Heart under subsection (a) is eligible for that award,

the Secretary concerned shall apply the following procedures:
H. R. 1588—88

‘‘(1) Failure of the applicant to provide any documentation

as required by the Secretary shall not in itself disqualify the

application from being considered.

‘‘(2) In evaluating the application, the Secretary shall consider (A) historical information as to the prison camp or other

circumstances in which the applicant was held captive, and

(B) the length of time that the applicant was held captive.

‘‘(3) To the extent that information is readily available,

the Secretary shall assist the applicant in obtaining information

or identifying the sources of information referred to in paragraph (2).

‘‘(4) The Secretary shall review a completed application

under this section based upon the totality of the information

presented, taking into account the length of time between the

period during which the applicant was held as a prisoner of

war and the date of the application.’’.

SEC. 545. AUTHORITY FOR RESERVE AND RETIRED REGULAR OFFICERS TO HOLD STATE AND LOCAL OFFICE NOTWITHSTANDING CALL TO ACTIVE DUTY.

Section 973(b) of title 10, United States Code, is amended—

(1) by redesignating paragraph (4) as paragraph (5);

(2) in paragraph (3)—

(A) by inserting ‘‘by reason of subparagraph (A) of

paragraph (1)’’ after ‘‘applies’’; and

(B) by striking ‘‘, the District of Columbia,’’ and all

that follows through ‘‘such government)’’ and inserting ‘‘(or

of any political subdivision of a State)’’; and

(3) by inserting after paragraph (3) the following new paragraph (4):

‘‘(4)(A) An officer to whom this subsection applies by reason

of subparagraph (B) or (C) of paragraph (1) may not hold, by

election or appointment, a civil office in the government of a State

(or of any political subdivision of a State) if the holding of such

office while this subsection so applies to the officer—

‘‘(i) is prohibited under the laws of that State; or

‘‘(ii) as determined by the Secretary of Defense or by the

Secretary of Homeland Security with respect to the Coast Guard

when it is not operating as a service in the Navy, interferes

with the performance of the officer’s duties as an officer of

the armed forces.

‘‘(B) Except as otherwise authorized by law, while an officer

referred to in subparagraph (A) is serving on active duty, the

officer may not exercise the functions of a civil office held by

the officer as described in that subparagraph.’’; and

(4) by adding at the end the following:

‘‘(6) In this subsection, the term ‘State’ includes the District

of Columbia and a territory, possession, or commonwealth of the

United States.’’.

SEC. 546. POLICY ON PUBLIC IDENTIFICATION OF CASUALTIES.

(a) REQUIREMENT FOR POLICY.—Not later than 180 days after

the date of the enactment of this Act, the Secretary of Defense

shall prescribe the policy of the Department of Defense on public

release of the name or other personally identifying information

of any member of the Army, Navy, Air Force, or Marine Corps

who while on active duty or performing inactive-duty training is
H. R. 1588—89

killed or injured, whose duty status becomes unknown, or who

is otherwise considered to be a casualty.

(b) GUIDANCE ON TIMING OF RELEASE.—The policy under subsection (a) shall include guidance for ensuring that any public

release of information on a member under the policy occurs only

after the lapse of an appropriate period following notification of

the next-of-kin regarding the casualty status of such member.

SEC. 547. SPACE PERSONNEL CAREER FIELDS.

(a) STRATEGY REQUIRED.—The Secretary of Defense shall

develop a strategy for the Department of Defense that will—

(1) promote the development of space personnel career

fields within each of the military departments; and

(2) ensure that the space personnel career fields developed

by the military departments are integrated with each other

to the maximum extent practicable.

(b) REPORT.—Not later than February 1, 2004, the Secretary

shall submit to the Committees on Armed Services of the Senate

and the House of Representatives a report on the strategy developed

under subsection (a). The report shall include the following:

(1) A statement of the strategy developed under subsection

(a), together with an explanation of that strategy.

(2) An assessment of the measures required for the Department of Defense and the military departments to integrate

the space personnel career fields of the military departments.

(3) A comprehensive assessment of the adequacy of the

actions of the Secretary of Air Force pursuant to section 8084

of title 10, United States Code, to establish for Air Force

officers a career field for space.

(c) GENERAL ACCOUNTING OFFICE REVIEW AND REPORTS.—(1)

The Comptroller General shall review the strategy developed under

subsection (a) and the status of efforts by the military departments

in developing space personnel career fields.

(2) The Comptroller General shall submit to the committees

referred to in subsection (b) two reports on the review under paragraph (1), as follows:

(A) Not later than June 15, 2004, the Comptroller General

shall submit a report that assesses how effective that Department of Defense strategy and the efforts by the military departments, when implemented, are likely to be for developing the

personnel required by each of the military departments who

are expert in development of space doctrine and concepts of

space operations, the development of space systems, and operation of space systems.

(B) Not later than March 15, 2005, the Comptroller General

shall submit a report that assesses, as of the date of the

report—

(i) the effectiveness of that Department of Defense

strategy and the efforts by the military departments in

developing the personnel required by each of the military

departments who are expert in development of space doctrine and concepts of space operations, the development

of space systems, and in operation of space systems; and

(ii) progress made in integrating the space career fields

of the military departments.
H. R. 1588—90

SEC. 548. DEPARTMENT OF DEFENSE JOINT ADVERTISING, MARKET

RESEARCH, AND STUDIES PROGRAM.

(a) PROGRAM AUTHORIZED.—The Secretary of Defense may carry

out a joint advertising, market research, and studies program to

complement the recruiting advertising programs of the military

departments and improve the ability of the military departments

to attract and recruit qualified individuals to serve in the Armed

Forces.

(b) FUNDING.—Of the amount authorized to be appropriated

by section 301(5) for operation and maintenance for Defense-wide

activities, $7,500,000 may be made available to carry out the joint

advertising, market research, and studies program.

SEC. 549. LIMITATION ON FORCE STRUCTURE REDUCTIONS IN NAVAL

AND MARINE CORPS RESERVE AVIATION SQUADRONS.

The Secretary of the Navy may not reduce or disestablish

a Naval Reserve or Marine Corps Reserve aviation squadron before

February 1, 2004.

Subtitle E—Military Justice Matters

SEC. 551. EXTENDED LIMITATION PERIOD FOR PROSECUTION OF

CHILD ABUSE CASES IN COURTS-MARTIAL.

Subsection (b) of section 843 of title 10, United States Code

(article 43 of the Uniform Code of Military Justice), is amended—

(1) by redesignating paragraph (2) as paragraph (3); and

(2) by inserting after paragraph (1) the following new paragraph (2):

‘‘(2)(A) A person charged with having committed a child abuse

offense against a child is liable to be tried by court-martial if

the sworn charges and specifications are received before the child

attains the age of 25 years by an officer exercising summary courtmartial jurisdiction with respect to that person.

‘‘(B) In subparagraph (A), the term ‘child abuse offense’ means

an act that involves sexual or physical abuse of a person who

has not attained the age of 16 years and constitutes any of the

following offenses:

‘‘(i) Rape or carnal knowledge in violation of section 920

of this title (article 120).

‘‘(ii) Maiming in violation of section 924 of this title (article

124).

‘‘(iii) Sodomy in violation of section 925 of this title (article

126).

‘‘(iv) Aggravated assault or assault consummated by a battery in violation of section 928 of this title (article 128).

‘‘(v) Indecent assault, assault with intent to commit murder,

voluntary manslaughter, rape, or sodomy, or indecent acts or

liberties with a child in violation of section 934 of this title

(article 134).’’.

SEC. 552. CLARIFICATION OF BLOOD ALCOHOL CONTENT LIMIT FOR

THE OFFENSE UNDER THE UNIFORM CODE OF MILITARY

JUSTICE OF DRUNKEN OPERATION OF A VEHICLE, AIRCRAFT, OR VESSEL.

Section 911 of title 10, United States Code (article 111 of

the Uniform Code of Military Justice), is amended—
H. R. 1588—91

(1) in subsection (a)(2), by striking ‘‘is in excess of’’ and

inserting ‘‘is equal to or exceeds’’; and

(2) in subsection (b)—

(A) in paragraph (1), by striking subparagraph (A)

and inserting the following:

‘‘(A) In the case of the operation or control of a vehicle,

aircraft, or vessel in the United States, such limit is the lesser

of—

‘‘(i) the blood alcohol content limit under the law of

the State in which the conduct occurred, except as may

be provided under paragraph (2) for conduct on a military

installation that is in more than one State; or

‘‘(ii) the blood alcohol content limit specified in paragraph (3).’’;

(B) in paragraphs (1)(B) and (3), by striking ‘‘maximum’’; and

(C) in paragraph (4)(A), by striking ‘‘maximum permissible’’ and all that follows through the period at the end

and inserting ‘‘amount of alcohol concentration in a person’s

blood or breath at which operation or control of a vehicle,

aircraft, or vessel is prohibited.’’.

Subtitle F—Benefits

SEC. 561. ADDITIONAL CLASSES OF INDIVIDUALS ELIGIBLE TO

PARTICIPATE IN THE FEDERAL LONG-TERM CARE INSURANCE PROGRAM.

(a) CERTAIN EMPLOYEES OF THE DISTRICT OF COLUMBIA

GOVERNMENT.—Section 9001(1) of title 5, United States Code, is

amended by striking ‘‘2105(c),’’ and all that follows and inserting

‘‘2105(c).’’.

(b) FORMER FEDERAL EMPLOYEES WHO WOULD BE ELIGIBLE

TO BEGIN RECEIVING AN ANNUITY UPON ATTAINING THE REQUISITE

MINIMUM AGE.—Section 9001(2) of title 5, United States Code,

is amended—

(1) in subparagraph (A), by striking ‘‘and’’ at the end;

(2) in subparagraph (B), by striking the period and

inserting ‘‘; and’’; and

(3) by adding at the end the following new subparagraph:

‘‘(C) any former employee who, on the basis of his

or her service, would meet all requirements for being

considered an ‘annuitant’ within the meaning of subchapter

III of chapter 83, chapter 84, or any other retirement

system for employees of the Government, but for the fact

that such former employee has not attained the minimum

age for title to annuity.’’.

(c) RESERVISTS TRANSFERRED TO THE RETIRED RESERVE WHO

ARE UNDER AGE 60.—Section 9001(4) of title 5, United States

Code, is amended by striking ‘‘including’’ and all that follows

through ‘‘who has’’ and inserting ‘‘and a member who has been

transferred to the Retired Reserve and who would be entitled to

retired pay under chapter 1223 of title 10 but for not having’’.

(d) REFERENCE AMENDMENT.—Section 9001(2)(A) of title 5,

United States Code, as amended by subsection (b), is further

amended by striking ‘‘of this subsection’’.
H. R. 1588—92

SEC. 562. AUTHORITY TO TRANSPORT REMAINS OF RETIREES AND

RETIREE DEPENDENTS WHO DIE IN MILITARY TREATMENT FACILITIES.

(a) AUTHORIZED TRANSPORTATION.—Section 1490 of title 10,

United States Code, is amended—

(1) in subsection (a), by striking ‘‘located in the United

States’’; and

(2) in subsection (b)(1), by striking ‘‘outside the United

States or to a place’’.

(b) CONFORMING AMENDMENT.—Subsection (c) of such section

is amended to read as follows:

‘‘(c) DEFINITION OF DEPENDENT.—In this section, the term

‘dependent’ has the meaning given such term in section 1072(2)

of this title.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply only with respect to persons dying on or after the

date of the enactment of this Act.

SEC. 563. ELIGIBILITY FOR DEPENDENTS OF CERTAIN MOBILIZED

RESERVISTS STATIONED OVERSEAS TO ATTEND

DEFENSE DEPENDENTS SCHOOLS OVERSEAS.

(a) TUITION STATUS PARITY WITH DEPENDENTS OF OTHER

RESERVISTS.—Section 1404(c) of the Defense Dependents’ Education

Act of 1978 (20 U.S.C. 923(c)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

(2) by adding at the end the following new paragraph:

‘‘(2)(A) The Secretary shall include in the regulations prescribed

under this subsection a requirement that children in the class

of children described in subparagraph (B) shall be subject to the

same tuition requirements, or waiver of tuition requirements, as

children in the class of children described in subparagraph (C).

‘‘(B) The class of children described in this subparagraph are

children of members of reserve components of the Armed Forces

who—

‘‘(i) are on active duty under an order to active duty under

section 12301 or 12302 of title 10, United States Code;

‘‘(ii) were ordered to active duty from a location in the

United States (other than in Alaska or Hawaii); and

‘‘(iii) are serving on active duty outside the United States

or in Alaska or Hawaii.

‘‘(C) The class of children described in this subparagraph are

children of members of reserve components of the Armed Forces

who—

‘‘(i) are on active duty under an order to active duty under

section 12301 or 12302 of title 10, United States Code;

‘‘(ii) were ordered to active duty from a location outside

the United States (or in Alaska or Hawaii); and

‘‘(iii) are serving on active duty outside the United States

or in Alaska or Hawaii.’’.

(b) CLERICAL AMENDMENT.—The heading of such section is

amended to read as follows:
H. R. 1588—93

‘‘SPACE-AVAILABLE ENROLLMENT OF STUDENTS; TUITION’’.

Subtitle G—Domestic Violence

SEC. 571. TRAVEL AND TRANSPORTATION FOR DEPENDENTS RELOCATING FOR REASONS OF PERSONAL SAFETY.

Section 406(h) of title 37, United States Code, is amended

by adding at the end the following new paragraph:

‘‘(4)(A) If a determination described in subparagraph (B) is

made with respect to a dependent of a member described in that

subparagraph and a request described in subparagraph (C) is made

by or on behalf of that dependent, the Secretary may provide

a benefit authorized for a member under paragraph (1) or (3)

to that dependent in lieu of providing such benefit to the member.

‘‘(B) A determination described in this subparagraph is a determination by the commanding officer of a member that—

‘‘(i) the member has committed a dependent-abuse offense

against a dependent of the member;

‘‘(ii) a safety plan and counseling have been provided to

that dependent;

‘‘(iii) the safety of the dependent is at risk; and

‘‘(iv) the relocation of the dependent is advisable.

‘‘(C) A request described in this subparagraph is a request

by the spouse of a member, or by the parent of a dependent

child in the case of a dependent child of a member, for relocation.

‘‘(D) Transportation may be provided under this paragraph

for household effects or a motor vehicle only if a written agreement

of the member, or an order of a court of competent jurisdiction,

gives possession of the effects or vehicle to the spouse or dependent

of the member concerned. ‘‘(E) In this paragraph, the term ‘dependent-abuse offense’ means an offense described in section 1059(c) of title 10.’’.

SEC. 572. COMMENCEMENT AND DURATION OF PAYMENT OF TRANSITIONAL COMPENSATION.

(a) COMMENCEMENT.—Paragraph (1)(A) of section 1059(e) of

title 10, United States Code, is amended by striking ‘‘shall commence’’ and all that follows and inserting ‘‘shall commence—

‘‘(i) as of the date the court-martial sentence is

adjudged if the sentence, as adjudged, includes a dismissal,

dishonorable discharge, bad conduct discharge, or forfeiture

of all pay and allowances; or

‘‘(ii) if there is a pretrial agreement that provides for

disapproval or suspension of the dismissal, dishonorable

discharge, bad conduct discharge, or forfeiture of all pay

and allowances, as of the date of the approval of the courtmartial sentence by the person acting under section 860(c)

of this title (article 60(c) of the Uniform Code of Military

Justice) if the sentence, as approved, includes an

unsuspended dismissal, dishonorable discharge, bad conduct discharge, or forfeiture of all pay and allowances;

and’’.

(b) DURATION.—(1) Paragraph (2) of such section is amended

by striking ‘‘a period of 36 months’’ and all that follows through ‘‘12 months’’ and inserting ‘‘a period of not less than 12 months
H. R. 1588—94

and not more than 36 months, as established in policies prescribed

by the Secretary concerned’’.

(2) Policies under subsection (e)(2) of section 1059 of title 10,

United States Code, as amended by paragraph (1), for the duration

of transitional compensation payments under that section shall

be prescribed under such subsection not later than six months

after the date of the enactment of this Act.

(c) TERMINATION.—Paragraph (3)(A) of such section is amended

by striking ‘‘punishment applicable to the member under the sentence is remitted, set aside, or mitigated’’ and inserting ‘‘conviction

is disapproved by the person acting under section 860(c) of this

title (article 60(c) of the Uniform Code of Military Justice) or set

aside, or each such punishment applicable to the member under

the sentence is disapproved by the person acting under section

860(c) of this title, remitted, set aside, suspended, or mitigated’’.

(d) EFFECTIVE DATE.—The amendments made by this section

shall apply only with respect to cases in which a court-martial

sentence is adjudged on or after the date of the enactment of

this Act.

SEC. 573. EXCEPTIONAL ELIGIBILITY FOR TRANSITIONAL COMPENSATION.

(a) AUTHORITY.—Section 1059 of title 10, United States Code,

is amended by adding at the end the following new subsection:

‘‘(m) EXCEPTIONAL ELIGIBILITY FOR DEPENDENTS OF FORMER

MEMBERS.—(1) The Secretary concerned, under regulations prescribed under subsection (k), may authorize eligibility for benefits

under this section for dependents and former dependents of a former

member of the armed forces in a case in which the dependents

or former dependents are not otherwise eligible for such benefits

and the Secretary concerned determines that the former member

engaged in conduct that is a dependent-abuse offense under this

section and the former member was separated from active duty

other than as described in subsection (b).

‘‘(2) In a case in which the Secretary concerned, under the

authority of paragraph (1), authorizes benefits to be provided under

this section, such benefits shall be provided in the same manner

as if the former member were an individual described in subsection

(b), except that, under regulations prescribed under subsection (k),

the Secretary shall make such adjustments to the commencement

and duration of payment provisions of subsection (e), and may

make adjustments to other provisions of this section, as the Secretary considers necessary in light of the circumstances in order

to provide benefits substantially equivalent to the benefits provided

in the case of an individual described in subsection (b).

‘‘(3) The authority of the Secretary concerned under paragraph

(1) may not be delegated.’’.

(b) EFFECTIVE DATE.—The authority under subsection (m) of

section 1059 of title 10, United States Code, as added by subsection

(a), may be exercised with respect to eligibility for benefits under

that section only for dependents and former dependents of individuals who are separated from active duty in the Armed Forces

on or after the date of the enactment of this Act.
H. R. 1588—95

SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIGGERING COVERAGE.

Section 1059(b)(2) of title 10, United States Code, is amended

by inserting ‘‘, voluntarily or involuntarily,’’ after ‘‘administratively

separated’’.

SEC. 575. COMPTROLLER GENERAL REVIEW AND REPORT.

(a) REVIEW.—During the two-year period beginning on the date

of the enactment of this Act, the Comptroller General shall review

and assess the progress of the Department of Defense in implementing the recommendations of the Defense Task Force on

Domestic Violence. In reviewing the status of the Department’s

efforts, the Comptroller General should specifically focus on—

(1) the efforts of the Department to ensure confidentiality

for victims and accountability and education of commanding

officers and chaplains; and

(2) the resources that the Department of Defense has provided toward such implementation, including personnel, facilities, and other administrative support, in order to ensure that

necessary resources are provided to the organization within

the Office of the Secretary of Defense with direct responsibility

for oversight of implementation by the military departments

of recommendations of the Task Force in order for that

organization to carry out its duties and responsibilities.

(b) REPORT.—The Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on

Armed Services of the House of Representatives a report on the

results of the review and assessment under subsection (a) not

later than 30 months after the date of the enactment of this Act.

SEC. 576. FATALITY REVIEWS.

(a) ARMY.—(1) Part II of subtitle B of title 10, United States

Code, is amended by adding at the end the following new chapter:

‘‘CHAPTER 375—MISCELLANEOUS INVESTIGATION

REQUIREMENTS AND OTHER DUTIES

‘‘Sec.

‘‘4061. Fatality reviews.

‘‘§ 4061. Fatality reviews

‘‘(a) REVIEW OF FATALITIES.—The Secretary of the Army shall

conduct a multidisciplinary, impartial review (referred to as a

‘fatality review’) in the case of each fatality known or suspected

to have resulted from domestic violence or child abuse against

any of the following: ‘‘(1) A member of the Army on active duty.

‘‘(2) A current or former dependent of a member of the

Army on active duty. ‘‘(3) A current or former intimate partner who has a child

in common or has shared a common domicile with a member

of the Army on active duty.

‘‘(b) MATTERS TO BE INCLUDED.—The report of a fatality review

under subsection (a) shall, at a minimum, include the following:

‘‘(1) An executive summary.

‘‘(2) Data setting forth victim demographics, injuries,

autopsy findings, homicide or suicide methods, weapons, police
H. R. 1588—96

information, assailant demographics, and household and family

information.

‘‘(3) Legal disposition.

‘‘(4) System intervention and failures, if any, within the

Department of Defense.

‘‘(5) A discussion of significant findings.

‘‘(6) Recommendations for systemic changes, if any, within

the Department of the Army and the Department of Defense.

‘‘(c) OSD GUIDANCE.—The Secretary of Defense shall prescribe

guidance, which shall be uniform for the military departments,

for the conduct of reviews by the Secretary under subsection (a).’’.

(2) The tables of chapters at the beginning of subtitle B, and

at the beginning of part II of subtitle B, of such title are each

amended by inserting after the item relating to chapter 373 the

following new item:

‘‘375. Miscellaneous Investigation Requirements and Other Duties ..... 4061’’.

(b) NAVY AND MARINE CORPS.—(1) Chapter 555 of title 10,

United States Code, is amended by adding at the end the following

new section:

‘‘§ 6036. Fatality reviews

‘‘(a) REVIEW OF FATALITIES.—The Secretary of the Navy shall

conduct a multidisciplinary, impartial review (referred to as a

‘fatality review’) in the case of each fatality known or suspected

to have resulted from domestic violence or child abuse against

any of the following.

‘‘(1) A member of the naval service on active duty.

‘‘(2) A current or former dependent of a member of the

naval service on active duty.

‘‘(3) A current or former intimate partner who has a child

in common or has shared a common domicile with a member

of the naval service on active duty.

‘‘(b) MATTERS TO BE INCLUDED.—The report of a fatality review

under subsection (a) shall, at a minimum, include the following:

‘‘(1) An executive summary.

‘‘(2) Data setting forth victim demographics, injuries,

autopsy findings, homicide or suicide methods, weapons, police

information, assailant demographics, and household and family

information.

‘‘(3) Legal disposition.

‘‘(4) System intervention and failures, if any, within the

Department of Defense.

‘‘(5) A discussion of significant findings.

‘‘(6) Recommendations for systemic changes, if any, within

the Department of the Navy and the Department of Defense.

‘‘(c) OSD GUIDANCE.—The Secretary of Defense shall prescribe

guidance, which shall be uniform for the military departments,

for the conduct of reviews by the Secretary under subsection (a).’’.

(2) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘6036. Fatality reviews.’’.

(c) AIR FORCE.—(1) Part II of subtitle D of such title is amended

by adding at the end the following new chapter:
H. R. 1588—97

‘‘CHAPTER 875—MISCELLANEOUS INVESTIGATION

REQUIREMENTS AND OTHER DUTIES

‘‘Sec.

‘‘9061. Fatality reviews.

‘‘§ 9061. Fatality reviews

‘‘(a) REVIEW OF FATALITIES.—The Secretary of the Air Force

shall conduct a multidisciplinary, impartial review (referred to as

a ‘fatality review’) in the case of each fatality known or suspected

to have resulted from domestic violence or child abuse against

any of the following: ‘‘(1) A member of the Air Force on active duty.

‘‘(2) A current or former dependent of a member of the

Air Force on active duty.

‘‘(3) A current or former intimate partner who has a child

in common or has shared a common domicile with a member

of the Air Force on active duty.

‘‘(b) MATTERS TO BE INCLUDED.—The report of a fatality review

under subsection (a) shall, at a minimum, include the following:

‘‘(1) An executive summary.

‘‘(2) Data setting forth victim demographics, injuries,

autopsy findings, homicide or suicide methods, weapons, police

information, assailant demographics, and household and family

information.

‘‘(3) Legal disposition.

‘‘(4) System intervention and failures, if any, within the

Department of Defense.

‘‘(5) A discussion of significant findings.

‘‘(6) Recommendations for systemic changes, if any, within

the Department of the Air Force and the Department of

Defense.

‘‘(c) OSD GUIDANCE.—The Secretary of Defense shall prescribe

guidance, which shall be uniform for the military departments,

for the conduct of reviews by the Secretary under subsection (a).’’.

(2) The tables of chapters at the beginning of subtitle D, and

at the beginning of part II of subtitle D, of such title are each

amended by inserting after the item relating to chapter 873 the

following new item:

‘‘875. Miscellaneous Investigation Requirements and Other Duties ..... 9061’’.

(d) APPLICABILITY.—Sections 4061, 6036, and 9061 of title 10,

United States Code, as added by this section, apply with respect

to fatalities that occur on or after the date of the enactment of

this Act.

SEC. 577. SENSE OF CONGRESS.

It is the sense of Congress that—

(1) the Secretary of Defense should develop a Department

of Defense strategic plan for domestic violence that incorporates

the core principles of domestic violence intervention identified

by the Defense Task Force on Domestic Violence in its third

annual report under section 591(e) of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

10 U.S.C. 1562 note); and

(2) the Secretary of each military department should establish and support a Victim Advocate Protocol as recommended

by the Defense Task Force on Domestic Violence.
H. R. 1588—98

Subtitle H—Other Matters

SEC. 581. RECOGNITION OF MILITARY FAMILIES.

(a) FINDINGS.—Congress makes the following findings:

(1) The families of both active and reserve component members of the Armed Forces, through their sacrifices and their

dedication to the Nation and its values, contribute immeasurably to the readiness of the Armed Forces.

(2) Without the continued support of military families,

the Nation’s ability to sustain a high quality all-volunteer military force would be undermined.

(3) In the perilous and challenging times of the global

war on terrorism, with hundreds of thousands of active and

reserve component military personnel deployed overseas in

places of combat and other imminent danger, military families

are making extraordinary sacrifices and will be required to

do so for the foreseeable future.

(4) Beginning in 1997, military family service and support

centers have responded to the encouragement and support of

private, non-profit organizations to recognize and honor the

American military family during the Thanksgiving period each

November.

(b) MILITARY FAMILY RECOGNITION.—In view of the findings

in subsection (a), Congress determines that it is appropriate that

special measures be taken annually to recognize and honor the

American military family.

(c) DEPARTMENT OF DEFENSE PROGRAMS AND ACTIVITIES.—The

Secretary of Defense shall— (1) implement and sustain programs, including appropriate

ceremonies and activities, to recognize and honor the contributions and sacrifices of the American military family, including

families of both active and reserve component military personnel;

(2) focus the celebration of the American military family

during a specific period of each year to give full and proper

recognition to those families; and

(3) seek the assistance and support of appropriate civilian

organizations, associations, and other entities (A) in carrying

out the annual celebration of the American military family,

and (B) in sustaining other, longer-term efforts to support the

American military family.

SEC. 582. PERMANENT AUTHORITY FOR SUPPORT FOR CERTAIN CHAPLAIN-LED MILITARY FAMILY SUPPORT PROGRAMS.

(a) IN GENERAL.—(1) Chapter 88 of title 10, United States

Code, is amended by inserting at the end of subchapter I the

following new section:

‘‘§ 1789. Chaplain-led programs: authorized support

‘‘(a) AUTHORITY.—The Secretary of a military department may

provide support services described in subsection (b) to support chaplain-led programs to assist members of the armed forces on active

duty and their immediate family members, and members of reserve

components in an active status and their immediate family members, in building and maintaining a strong family structure.
H. R. 1588—99

‘‘(b) AUTHORIZED SUPPORT SERVICES.—The support services

referred to in subsection (a) are costs of transportation, food,

lodging, child care, supplies, fees, and training materials for members of the armed forces and their family members while participating in programs referred to in that subsection, including participation at retreats and conferences.

‘‘(c) IMMEDIATE FAMILY MEMBERS.—In this section, the term

‘immediate family members’, with respect to a member of the armed

forces, means—

‘‘(1) the member’s spouse; and

‘‘(2) any child (as defined in section 1072(6) of this title)

of the member who is described in subparagraph (D) of section

1072(2) of this title.’’.

(2) The table of sections at the beginning of such subchapter

is amended by inserting after the item relating to section 1788

the following new item:

‘‘1789. Chaplain-led programs: authorized support.’’.

(b) EFFECTIVE DATE.—Section 1789 of title 10, United States

Code, as added by subsection (a), shall take effect on October

1, 2003.

SEC. 583. DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS

AFFAIRS JOINT EXECUTIVE COMMITTEE.

(a) ESTABLISHMENT OF JOINT COMMITTEE.—(1) Chapter 3 of

title 38, United States Code, is amended by adding at the end

the following new section:

‘‘§ 320. Department of Veterans Affairs-Department of

Defense Joint Executive Committee

‘‘(a) JOINT EXECUTIVE COMMITTEE.—(1) There is established

an interagency committee to be known as the Department of Veterans Affairs-Department of Defense Joint Executive Committee

(hereinafter in this section referred to as the ‘Committee’).

‘‘(2) The Committee is composed of—

‘‘(A) the Deputy Secretary of Veterans Affairs and such

other officers and employees of the Department of Veterans

Affairs as the Secretary of Veterans Affairs may designate;

and

‘‘(B) the Under Secretary of Defense for Personnel and

Readiness and such other officers and employees of the Department of Defense as the Secretary of Defense may designate.

‘‘(b) ADMINISTRATIVE MATTERS.—(1) The Deputy Secretary of

Veterans Affairs and the Under Secretary of Defense shall determine the size and structure of the Committee, as well as the

administrative and procedural guidelines for the operation of the

Committee.

‘‘(2) The two Departments shall supply appropriate staff and

resources to provide administrative support and services. Support

for such purposes shall be provided at a level sufficient for the

efficient operation of the Committee, including a subordinate Health

Executive Committee, a subordinate Benefits Executive Committee,

and such other committees or working groups as considered necessary by the Deputy Secretary and Under Secretary.

‘‘(c) RECOMMENDATIONS.—(1) The Committee shall recommend

to the Secretaries strategic direction for the joint coordination and

sharing efforts between and within the two Departments under
H. R. 1588—100

section 8111 of this title and shall oversee implementation of those

efforts.

‘‘(2) The Committee shall submit to the two Secretaries and

to Congress an annual report containing such recommendations

as the Committee considers appropriate.

‘‘(d) FUNCTIONS.—In order to enable the Committee to make

recommendations in its annual report under subsection (c)(2), the

Committee shall do the following:

‘‘(1) Review existing policies, procedures, and practices

relating to the coordination and sharing of resources between

the two Departments.

‘‘(2) Identify changes in policies, procedures, and practices

that, in the judgment of the Committee, would promote mutually beneficial coordination, use, or exchange of use of services

and resources of the two Departments, with the goal of

improving the quality, efficiency and effectiveness of the

delivery of benefits and services to veterans, service members,

military retirees, and their families through an enhanced

Department of Veterans Affairs and Department of Defense

partnership.

‘‘(3) Identify and assess further opportunities for the

coordination and collaboration between the Departments that,

in the judgment of the Committee, would not adversely affect

the range of services, the quality of care, or the established

priorities for benefits provided by either Department.

‘‘(4) Review the plans of both Departments for the acquisition of additional resources, especially new facilities and major

equipment and technology, in order to assess the potential

effect of such plans on further opportunities for the coordination

and sharing of resources. ‘‘(5) Review the implementation of activities designed to

promote the coordination and sharing of resources between

the Departments.’’. (2) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘320. Department of Veterans Affairs-Department of Defense Joint Executive Committee.’’.

(b) CONFORMING AMENDMENTS.—(1) Subsection (c) of section

8111 of such title is repealed.

(2) Such section is further amended—

(A) in subsection (b)(2), by striking ‘‘the interagency committee provided for under subsection (c)’’ and inserting ‘‘the

Department of Veterans Affairs-Department of Defense Joint

Executive Committee under section 320 of this title’’;

(B) in subsection (d)(1), by striking ‘‘Committee established

in subsection (c)’’ and inserting ‘‘Department of Veterans

Affairs-Department of Defense Joint Executive Committee’’;

(C) in subsection (e)(1), by striking ‘‘Committee under subsection (c)(2)’’ and inserting ‘‘Department of Veterans AffairsDepartment of Defense Joint Executive Committee with respect

to health care resources’’; and

(D) in subsection (f)(2), by striking subparagraphs (B) and

(C) and inserting the following:

‘‘(B) The assessment of further opportunities identified by

the Department of Veterans Affairs-Department of Defense

Joint Executive Committee under subsection (d)(3) of section
H. R. 1588—101

320 of this title for the sharing of health-care resources between

the two Departments. ‘‘(C) Any recommendation made by that committee under

subsection (c)(2) of that section during that fiscal year.’’. (c) TECHNICAL AMENDMENTS.—Subsection (f) of such section

is further amended by inserting ‘‘(Public Law 107–314)’’ in paragraphs (3), (4)(A), (4)(B), and (5) after ‘‘for Fiscal Year 2003’’. (d) EFFECTIVE DATE.—(1) If this Act is enacted before October

1, 2003—

(A) section 320 of title 38, United States Code, as added

by subsection (a), shall take effect on October 1, 2003; and

(B) the amendments made by subsections (b) and (c) shall

take effect on October 1, 2003, immediately after the amendment made by section 721(a)(1) of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003 (Public Law

107–314; 116 Stat. 2589).

(2) If this Act is enacted on or after October 1, 2003, the

amendments made by this section shall take effect on the date

of the enactment of this Act.

SEC. 584. REVIEW OF THE 1991 DEATH OF MARINE CORPS COLONEL

JAMES E. SABOW.

(a) REVIEW REQUIRED.—Not later than 60 days after the date

of the enactment of this Act, the Secretary of Defense shall commence a review, as specified in subsection (c), of the death of

Colonel James S. Sabow, United States Marine Corps, who died

on January 22, 1991, at the Marine Corps Air Station, El Toro,

California.

(b) FOCUS OF REVIEW.—The principal focus of the review under

subsection (a) shall be to determine the cause of the death of

Colonel Sabow, given the medical and forensic factors associated

with that death.

(c) REVIEW BY OUTSIDE EXPERTS.—The Secretary of Defense

shall provide that the evidence concerning the cause of the death

of Colonel Sabow and the medical and forensic factors associated

with that death shall be reviewed by medical and forensic experts

outside the Department of Defense.

(d) REPORT.—Not later than six months after the date of the

enactment of this Act, the Secretary of Defense shall submit to

the Committee on Armed Services of the Senate and the Committee

on Armed Services of the House of Representatives a written report

on the findings of the review under subsection (a). The Secretary

shall include in the report (1) the Secretary’s conclusions as a

result of the review, including the Secretary’s conclusions regarding

the cause of death of Colonel Sabow, and (2) the conclusions of

the experts reviewing the matter under subsection (c).

SEC. 585. POLICY ON CONCURRENT DEPLOYMENT TO COMBAT ZONES

OF BOTH MILITARY SPOUSES OF MILITARY FAMILIES

WITH MINOR CHILDREN.

(a) PUBLICATION OF POLICY.—Not later than 180 days after

the date of the enactment of this Act, the Secretary of Defense

shall—

(1) prescribe the policy of the Department of Defense on

concurrent deployment to a combat zone of both spouses of

a dual-military family with one or more minor children; and

(2) transmit the policy to the Committees on Armed Services of the Senate and the House of Representatives.
H. R. 1588—102

(b) DUAL-MILITARY FAMILY DEFINED.—In this section, the term

‘‘dual-military family’’ means a family in which both spouses are

members of the Armed Forces.

SEC. 586. CONGRESSIONAL NOTIFICATION OF AMENDMENT OR CANCELLATION OF DEPARTMENT OF DEFENSE DIRECTIVE

RELATING TO REASONABLE ACCESS TO MILITARY

INSTALLATIONS FOR CERTAIN PERSONAL COMMERCIAL

SOLICITATION.

An amendment to Department of Defense Directive 1344.7,

‘‘Personal Commercial Solicitation on DoD Installations’’, or cancellation of that directive, shall not take effect until the end of

the 30-day period beginning on the date on which the Secretary

of Defense submits to Congress notice of the amendment or cancellation and the reasons therefor.

SEC. 587. STUDY OF NATIONAL GUARD CHALLENGE PROGRAM.

(a) STUDY REQUIRED.—The Secretary of Defense shall conduct

a study to evaluate—

(1) the adequacy and impact of the matching funds requirement in effect under section 509(d) of title 32, United States

Code, for States to participate in the National Guard Challenge

Program; and

(2) the value of the National Guard Challenge Program

to the Department of Defense.

(b) CONSIDERATION OF MATCHING FUND ALTERNATIVES.—As

part of the study, the Secretary shall identify potential alternatives

to the matching funds structure provided for the National Guard

Challenge Program under section 509(d) of title 32, United States

Code, such as a range of Federal-State matching ratios, that would

provide flexibility in the management of the program to better

respond to temporary fiscal conditions.

(c) SUBMISSION OF STUDY.—Not later than March 1, 2004, the

Secretary shall submit to Congress a report containing the results

of the study and such recommendations as the Secretary considers

appropriate in response to the study.

SEC. 588. FINDINGS AND SENSE OF CONGRESS ON REWARD FOR

INFORMATION LEADING TO RESOLUTION OF STATUS OF

MEMBERS OF THE ARMED FORCES WHO REMAIN UNACCOUNTED FOR.

(a) FINDINGS.—Congress makes the following findings:

(1) The Department of Defense estimates that there are

more than 10,000 members of the Armed Forces and others

who as a result of activities during the Korean War or the

Vietnam War were placed in a missing status or a prisoner

of war status, or who were determined to have been killed

in action, although remains of those members have not been

recovered, and they remain unaccounted for.

(2) One member of the Armed Forces, Navy Captain

Michael Scott Speicher, remains unaccounted for from the first

Persian Gulf War, and there have been credible reports of

his having been seen alive in Iraq in the years since his

aircraft was shot down on the first night of that war on January

16, 1991.

(3) The United States should pursue every lead and otherwise maintain a relentless and thorough quest to completely
H. R. 1588—103

account for the fates of those members of the Armed Forces

who are missing or otherwise unaccounted for.

(4) The Secretary of Defense has the authority to disburse

funds as a reward to individuals who provide information

leading to the conclusive resolution of cases of missing members

of the Armed Forces.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the Secretary of Defense should—

(1) use the authority available to the Secretary to disburse

funds rewarding individuals who provide information leading

to the conclusive resolution of the status of any missing member

of the Armed Forces; and

(2) authorize and publicize a reward of $1,000,000 for

information resolving the fate of any member of the Armed

Forces, such as Navy Captain Michael Scott Speicher, who

the Secretary has reason to believe may be alive in captivity.

TITLE VI—COMPENSATION AND OTHER

PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.

Sec. 602. Revised annual pay adjustment process.

Sec. 603. Computation of basic pay rate for commissioned officers with prior enlisted or warrant officer service.

Sec. 604. Special subsistence allowance authorities for members assigned to highcost duty location or under other unique and unusual circumstances. Sec. 605. Basic allowance for housing for each member married to another member

without dependents when both spouses are on sea duty. Sec. 606. Temporary increase in authorized amount of family separation allowance.

Subtitle B—Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay authorities for reserve forces.

Sec. 612. One-year extension of certain bonus and special pay authorities for certain health care professionals. Sec. 613. One-year extension of special pay and bonus authorities for nuclear officers. Sec. 614. One-year extension of other bonus and special pay authorities.

Sec. 615. Hazardous duty pay for duty involving ski-equipped aircraft on Antarctica

or the Arctic icepack. Sec. 616. Special pay for reserve officers holding positions of unusual responsibility

and of critical nature.

Sec. 617. Payment of Selected Reserve reenlistment bonus to members of Selected

Reserve who are mobilized.

Sec. 618. Availability of hostile fire and imminent danger special pay for reserve

component members on inactive duty. Sec. 619. Temporary increase in authorized amount of hostile fire and imminent

danger special pay. Sec. 620. Retroactive payment of hostile fire or imminent danger pay for service in

eastern Mediterranean Sea in Operation Iraqi Freedom. Sec. 621. Expansion of overseas tour extension incentive program to officers.

Sec. 622. Repeal of congressional notification requirement for designation of critical

military skills for retention bonus. Sec. 623. Eligibility of warrant officers for accession bonus for new officers in critical skills.

Sec. 624. Special pay for service as member of Weapons of Mass Destruction Civil

Support Team. Sec. 625. Incentive bonus for conversion to military occupational specialty to ease

personnel shortage. Sec. 626. Bonus for reenlistment during service on active duty in Afghanistan, Iraq,

or Kuwait.

Subtitle C—Travel and Transportation Allowances

Sec. 631. Shipment of privately owned motor vehicle within continental United

States.
H. R. 1588—104

Sec. 632. Transportation of dependents to presence of members of the Armed

Forces retired for illness or injury incurred in active duty.

Sec. 633. Payment or reimbursement of student baggage storage costs for dependent children of members stationed overseas.

Sec. 634. Contracts for full replacement value for loss or damage to personal property transported at Government expense.

Sec. 635. Payment of lodging expenses of members during authorized leave from

temporary duty location.

Subtitle D—Retired Pay and Survivor Benefits

Sec. 641. Phase-in of full concurrent receipt of military retired pay and veterans

disability compensation for certain military retirees.

Sec. 642. Revisions to combat-related special compensation program.

Sec. 643. Special rule for computation of retired pay base for commanders of combatant commands.

Sec. 644. Survivor Benefit Plan annuities for surviving spouses of Reserves not eligible for retirement who die from a cause incurred or aggravated while

on inactive-duty training.

Sec. 645. Survivor Benefit Plan modifications.

Sec. 646. Increase in death gratuity payable with respect to deceased members of

the Armed Forces.

Sec. 647. Death benefits study.

Subtitle E—Commissary and Nonappropriated Fund Instrumentality

Benefits

Sec. 651. Expanded commissary access for Selected Reserve members, reserve retirees under age 60, and their dependents.

Sec. 652. Defense commissary system and exchange stores system.

Sec. 653. Limitations on private operation of defense commissary store functions.

Sec. 654. Use of appropriated funds to operate defense commissary system.

Sec. 655. Recovery of nonappropriated fund instrumentality and commissary store

investments in real property at military installations closed or realigned.

Subtitle F—Other Matters

Sec. 661. Comptroller General report on adequacy of special pays and allowances

for frequently deployed members.

Subtitle A—Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2004.

(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The adjustment

to become effective during fiscal year 2004 required by section

1009 of title 37, United States Code, in the rates of monthly basic

pay authorized members of the uniformed services shall not be

made.

(b) INCREASE IN BASIC PAY.—Effective on January 1, 2004,

the rates of monthly basic pay for members of the uniformed services within each pay grade are as follows:

COMMISSIONED OFFICERS 1

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–10 2 $0.00 $0.00 $0.00 $0.00 $0.00

O–9 .... 0.00 0.00 0.00 0.00 0.00

O–8 .... 7,751.10 8,004.90 8,173.20 8,220.60 8,430.30

O–7 .... 6,440.70 6,739.80 6,878.40 6,988.50 7,187.40

O–6 .... 4,773.60 5,244.30 5,588.40 5,588.40 5,609.70

O–5 .... 3,979.50 4,482.90 4,793.40 4,851.60 5,044.80

O–4 .... 3,433.50 3,974.70 4,239.90 4,299.00 4,545.30

O–3 3 3,018.90 3,422.40 3,693.90 4,027.20 4,220.10

O–2 3 2,608.20 2,970.60 3,421.50 3,537.00 3,609.90
H. R. 1588—105

COMMISSIONED OFFICERS 1—Continued

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–1 3 2,264.40 2,356.50 2,848.50 2,848.50 2,848.50

Over 8 Over 10 Over 12 Over 14 Over 16

O–10 2 $0.00 $0.00 $0.00 $0.00 $0.00

O–9 .... 0.00 0.00 0.00 0.00 0.00

O–8 .... 8,781.90 8,863.50 9,197.10 9,292.80 9,579.90

O–7 .... 7,384.20 7,611.90 7,839.00 8,066.70 8,781.90

O–6 .... 5,850.00 5,882.10 5,882.10 6,216.30 6,807.30

O–5 .... 5,161.20 5,415.90 5,602.80 5,844.00 6,213.60

O–4 .... 4,809.30 5,137.80 5,394.00 5,571.60 5,673.60

O–3 3 4,431.60 4,568.70 4,794.30 4,911.30 4,911.30

O–2 3 3,609.90 3,609.90 3,609.90 3,609.90 3,609.90

O–1 3 2,848.50 2,848.50 2,848.50 2,848.50 2,848.50

Over 18 Over 20 Over 22 Over 24 Over 26

O–10 2 $0.00 $12,524.70 $12,586.20 $12,847.80 $13,303.80

O–9 .... 0.00 10,954.50 11,112.30 11,340.30 11,738.40

O–8 .... 9,995.70 10,379.10 10,635.30 10,635.30 10,635.30

O–7 .... 9,386.10 9,386.10 9,386.10 9,386.10 9,433.50

O–6 .... 7,154.10 7,500.90 7,698.30 7,897.80 8,285.40

O–5 .... 6,389.70 6,563.40 6,760.80 6,760.80 6,760.80

O–4 .... 5,733.00 5,733.00 5,733.00 5,733.00 5,733.00

O–3 3 4,911.30 4,911.30 4,911.30 4,911.30 4,911.30

O–2 3 3,609.50 3,609.50 3,609.50 3,609.50 3,609.50

O–1 3 2,848.50 2,848.50 2,848.50 2,848.50 2,848.50

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for

commissioned officers in pay grades O–7 through O–10 may not exceed the rate of pay for level

III of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the Executive Schedule. 2Subject to the preceding footnote, the rate of basic pay for an officer in this grade while

serving as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,

Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps,

Commandant of the Coast Guard, or commander of a unified or specified combatant command

(as defined in section 161(c) of title 10, United States Code) is $14,634.20, regardless of cumulative years of service computed under section 205 of title 37, United States Code. 3This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have

been credited with over 4 years of active duty service as an enlisted member or warrant officer.

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY

SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–3E $0.00 $0.00 $0.00 $4,027.20 $4,220.10

O–2E 0.00 0.00 0.00 3,537.00 3,609.90

O–1E 0.00 0.00 0.00 2,848.50 3,042.30

Over 8 Over 10 Over 12 Over 14 Over 16

O–3E $4,431.60 $4,568.70 $4,794.30 $4,984.20 $5,092.80

O–2E 3,724.80 3,918.60 4,068.60 4,180.20 4,180.20

O–1E 3,154.50 3,269.40 3,382.20 3,537.00 3,537.00

Over 18 Over 20 Over 22 Over 24 Over 26

O–3E $5,241.30 $5,241.30 $5,241.30 $5,241.30 $5,241.30
H. R. 1588—106

COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY

SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER—Continued

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

O–2E 4,180.20 4,180.20 4,180.20 4,180.20 4,180.20

O–1E 3,537.00 3,537.00 3,537.00 3,537.00 3,537.00

WARRANT OFFICERS 1

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

W–5 ... $0.00 $0.00 $0.00 $0.00 $0.00

W–4 ... 3,119.40 3,355.80 3,452.40 3,547.20 3,710.40

W–3 ... 2,848.80 2,967.90 3,089.40 3,129.30 3,257.10

W–2 ... 2,505.90 2,649.00 2,774.10 2,865.30 2,943.30

W–1 ... 2,212.80 2,394.00 2,515.20 2,593.50 2,802.30

Over 8 Over 10 Over 12 Over 14 Over 16

W–5 ... $0.00 $0.00 $0.00 $0.00 $0.00

W–4 ... 3,871.50 4,035.00 4,194.30 4,359.00 4,617.30

W–3 ... 3,403.20 3,595.80 3,786.30 3,988.80 4,140.60

W–2 ... 3,157.80 3,321.60 3,443.40 3,562.20 3,643.80

W–1 ... 2,928.30 3,039.90 3,164.70 3,247.20 3,321.90

Over 18 Over 20 Over 22 Over 24 Over 26

W–5 ... $0.00 $5,360.70 $5,544.30 $5,728.80 $5,914.20

W–4 ... 4,782.60 4,944.30 5,112.00 5,277.00 5,445.90

W–3 ... 4,291.80 4,356.90 4,424.10 4,570.20 4,716.30

W–2 ... 3,712.50 3,843.00 3,972.60 4,103.70 4,103.70

W–1 ... 3,443.70 3,535.80 3,535.80 3,535.80 3,535.80

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for

warrant officers may not exceed the rate of pay for level V of the Executive Schedule.

ENLISTED MEMBERS 1

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–9 2 .. $0.00 $0.00 $0.00 $0.00 $0.00

E–8 .... 0.00 0.00 0.00 0.00 0.00

E–7 .... 2,145.00 2,341.20 2,430.60 2,549.70 2,642.10

E–6 .... 1,855.50 2,041.20 2,131.20 2,218.80 2,310.00

E–5 .... 1,700.10 1,813.50 1,901.10 1,991.10 2,130.60

E–4 .... 1,558.20 1,638.30 1,726.80 1,814.10 1,891.50

E–3 .... 1,407.00 1,495.50 1,585.50 1,585.50 1,585.50

E–2 .... 1,337.70 1,337.70 1,337.70 1,337.70 1,337.70

E–1 3 .. 1,193.40 1,193.40 1,193.40 1,193.40 1,193.40

Over 8 Over 10 Over 12 Over 14 Over 16

E–9 2 .. $0.00 $3,769.20 $3,854.70 $3,962.40 $4,089.30

E–8 .... 3,085.50 3,222.00 3,306.30 3,407.70 3,517.50

E–7 .... 2,801.40 2,891.10 2,980.20 3,139.80 3,219.60

E–6 .... 2,516.10 2,596.20 2,685.30 2,763.30 2,790.90

E–5 .... 2,250.90 2,339.70 2,367.90 2,367.90 2,367.90

E–4 .... 1,891.50 1,891.50 1,891.50 1,891.50 1,891.50
H. R. 1588—107

ENLISTED MEMBERS 1—Continued

Years of service computed under section 205 of title 37, United States Code

Pay

Grade 2 or less Over 2 Over 3 Over 4 Over 6

E–3 .... 1,585.50 1,585.50 1,585.50 1,585.50 1,585.50

E–2 .... 1,337.70 1,337.70 1,337.70 1,337.70 1,337.70

E–1 3 .. 1,193.40 1,193.40 1,193.40 1,193.40 1,193.40

Over 18 Over 20 Over 22 Over 24 Over 26

E–9 2 .. $4,216.50 $4,421.10 $4,594.20 $4,776.60 $5,054.70

E–8 .... 3,715.50 3,815.70 3,986.40 4,081.20 4,314.30

E–7 .... 3,295.50 3,341.70 3,498.00 3,599.10 3,855.00

E–6 .... 2,809.80 2,809.80 2,809.80 2,809.80 2,809.80

E–5 .... 2,367.90 2,367.90 2,367.90 2,367.90 2,367.90

E–4 .... 1,891.50 1,891.50 1,891.50 1,891.50 1,891.50

E–3 .... 1,585.50 1,585.50 1,585.50 1,585.50 1,585.50

E–2 .... 1,337.70 1,337.70 1,337.70 1,337.70 1,337.70

E–1 3 .. 1,193.40 1,193.40 1,193.40 1,193.40 1,193.40

1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for

enlisted members may not exceed the rate of pay for level V of the Executive Schedule. 2Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade

while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief

Master Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty

Officer of the Coast Guard, is $6,090.90, regardless of cumulative years of service computed

under section 205 of title 37, United States Code. 3 In the case of members in pay grade E–1 who have served less than 4 months on active

duty, the rate of basic pay is $1,104.00.

SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

(a) REQUIREMENT FOR ANNUAL ADJUSTMENT.—Subsection (a)

of section 1009 of title 37, United States Code, is amended to

read as follows:

‘‘(a) REQUIREMENT FOR ANNUAL ADJUSTMENT.—Effective on

January 1 of each year, the rates of basic pay for members of

the uniformed services under section 203(a) of this title shall be

increased under this section.’’.

(b) EFFECTIVENESS OF ADJUSTMENT.—Subsection (b) of such

section is amended by striking ‘‘shall—’’ and all that follows and

inserting ‘‘shall have the force and effect of law.’’.

(c) PERCENTAGE OF ADJUSTMENT; ALTERNATIVE PAY ADJUSTMENT AUTHORITY.—Such section is further amended—

(1) by striking subsections (c), (d), (e), and (g);

(2) by redesignating subsection (f) as subsection (d);

(3) by inserting after subsection (b) the following new subsection (c):

‘‘(c) EQUAL PERCENTAGE INCREASE FOR ALL MEMBERS.—(1) An

adjustment made under this section in a year shall provide all

eligible members with an increase in the monthly basic pay that

is the percentage (rounded to the nearest one-tenth of one percent)

by which the ECI for the base quarter of the year before the

preceding year exceeds the ECI for the base quarter of the second

year before the preceding calendar year (if at all).

‘‘(2) Notwithstanding paragraph (1), but subject to subsection

(d), the percentage of the adjustment taking effect under this section

during each of fiscal years 2004, 2005, and 2006, shall be onehalf of one percentage point higher than the percentage that would

otherwise be applicable under such paragraph.

‘‘(3) In this subsection:
H. R. 1588—108

‘‘(A) The term ‘ECI’ means the Employment Cost Index

(wages and salaries, private industry workers) published quarterly by the Bureau of Labor Statistics.

‘‘(B) The term ‘base quarter’ for any year is the threemonth period ending on September 30 of such year.’’; and

(4) by adding at the end the following new subsection:

‘‘(e) PRESIDENTIAL DETERMINATION OF NEED FOR ALTERNATIVE

PAY ADJUSTMENT.—(1) If, because of national emergency or serious

economic conditions affecting the general welfare, the President

considers the pay adjustment which would otherwise be required

by this section in any year to be inappropriate, the President

shall prepare and transmit to Congress before September 1 of

the preceding year a plan for such alternative pay adjustments

as the President considers appropriate, together with the reasons

therefor.

‘‘(2) In evaluating an economic condition affecting the general

welfare under this subsection, the President shall consider pertinent

economic measures including the Indexes of Leading Economic

Indicators, the Gross Domestic Product, the unemployment rate,

the budget deficit, the Consumer Price Index, the Producer Price

Index, the Employment Cost Index, and the Implicit Price Deflator

for Personal Consumption Expenditures.

‘‘(3) The President shall include in the plan submitted to Congress under paragraph (1) an assessment of the impact that the

alternative pay adjustments proposed in the plan would have on

the Government’s ability to recruit and retain well-qualified persons

for the uniformed services.’’.

SEC. 603. COMPUTATION OF BASIC PAY RATE FOR COMMISSIONED

OFFICERS WITH PRIOR ENLISTED OR WARRANT OFFICER

SERVICE.

Section 203(d)(2) of title 37, United States Code, is amended—

(1) in subparagraph (A), by striking ‘‘enlisted member,’’

and all that follows through the period and inserting ‘‘enlisted

member.’’; and

(2) by striking subparagraph (B) and inserting the following

new subparagraph:

‘‘(B) Service as a warrant officer, as an enlisted member,

or as a warrant officer and an enlisted member, for which

at least 1,460 points have been credited to the officer for the

purposes of section 12732(a)(2) of title 10.’’.

SEC. 604. SPECIAL SUBSISTENCE ALLOWANCE AUTHORITIES FOR MEMBERS ASSIGNED TO HIGH-COST DUTY LOCATION OR

UNDER OTHER UNIQUE AND UNUSUAL CIRCUMSTANCES.

Section 402 of title 37, United States Code, is amended—

(1) by redesignating subsections (f) and (g) as subsections

(g) and (h), respectively; and

(2) by inserting after subsection (e) the following new subsection:

‘‘(f) SPECIAL RULE FOR HIGH-COST DUTY LOCATIONS AND OTHER

UNIQUE AND UNUSUAL CIRCUMSTANCES.—The Secretary of Defense

may authorize a member of the armed forces who is not entitled

to the meals portion of the per diem in connection with an assignment in a high-cost duty location or under other unique and unusual

circumstances, as determined by the Secretary, to receive any or

all of the following:
H. R. 1588—109

‘‘(1) Meals at no cost to the member, regardless of the

entitlement of the member to a basic allowance for subsistence

under subsection (a).

‘‘(2) A basic allowance for subsistence at the standard rate,

regardless of the entitlement of the member for all meals or

select meals during the duty day.

‘‘(3) A supplemental subsistence allowance at a rate higher

than the basic allowance for subsistence rates in effect under

this section, regardless of the entitlement of the member for

all meals or select meals during the duty day.’’.

SEC. 605. BASIC ALLOWANCE FOR HOUSING FOR EACH MEMBER MARRIED TO ANOTHER MEMBER WITHOUT DEPENDENTS

WHEN BOTH SPOUSES ARE ON SEA DUTY.

(a) ENTITLEMENT.—Section 403(f)(2)(C) of title 37, United States

Code, is amended—

(1) in the first sentence, by striking ‘‘are jointly entitled

to one basic allowance for housing’’ and inserting ‘‘are each

entitled to a basic allowance for housing’’; and

(2) by striking ‘‘The amount of the allowance’’ and all

that follows and inserting ‘‘The amount of the allowance payable

to a member under the preceding sentence shall be based

on the without dependents rate for the pay grade of the

member.’’.

(b) EFFECTIVE DATE.—The amendments made by subsection

(a) shall take effect as of October 1, 2003, and apply to months

beginning on or after that date.

SEC. 606. TEMPORARY INCREASE IN AUTHORIZED AMOUNT OF FAMILY

SEPARATION ALLOWANCE.

Section 427 of title 37, United States Code, is amended by

adding at the end the following new subsection:

‘‘(e) TEMPORARY INCREASE IN AUTHORIZED AMOUNT OF ALLOWANCE.—For the period beginning on October 1, 2003, and ending

on December 31, 2004, the monthly allowance authorized by subsection (a)(1) shall be increased to $250.’’.

Subtitle B—Bonuses and Special and

Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL

PAY AUTHORITIES FOR RESERVE FORCES.

(a) SELECTED RESERVE REENLISTMENT BONUS.—Section 308b(f )

of title 37, United States Code, is amended by striking ‘‘December

31, 2003’’ and inserting ‘‘December 31, 2004’’.

(b) SELECTED RESERVE ENLISTMENT BONUS.—Section 308c(e)

of such title is amended by striking ‘‘December 31, 2003’’ and

inserting ‘‘December 31, 2004’’.

(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN

HIGH PRIORITY UNITS.—Section 308d(c) of such title is amended

by striking ‘‘December 31, 2003’’ and inserting ‘‘December 31, 2004’’.

(d) SELECTED RESERVE AFFILIATION BONUS.—Section 308e(e)

of such title is amended by striking ‘‘December 31, 2003’’ and

inserting ‘‘December 31, 2004’’.
H. R. 1588—110

(e) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS.— Section 308h(g) of such title is amended by striking ‘‘December

31, 2003’’ and inserting ‘‘December 31, 2004’’. (f) PRIOR SERVICE ENLISTMENT BONUS.—Section 308i(f ) of such

title is amended by striking ‘‘December 31, 2003’’ and inserting ‘‘December 31, 2004’’.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL

PAY AUTHORITIES FOR CERTAIN HEALTH CARE PROFESSIONALS.

(a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM.—Section

2130a(a)(1) of title 10, United States Code, is amended by striking

‘‘December 31, 2003’’ and inserting ‘‘December 31, 2004’’. (b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN HEALTH

PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE.—Section

16302(d) of such title is amended by striking ‘‘January 1, 2004’’ and inserting ‘‘January 1, 2005’’. (c) ACCESSION BONUS FOR REGISTERED NURSES.—Section

302d(a)(1) of title 37, United States Code, is amended by striking

‘‘December 31, 2003’’ and inserting ‘‘December 31, 2004’’.

(d) INCENTIVE SPECIAL PAY FOR NURSE ANESTHETISTS.—Section

302e(a)(1) of such title is amended by striking ‘‘December 31, 2003’’

and inserting ‘‘December 31, 2004’’.

(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES.—Section

302g(f ) of such title is amended by striking ‘‘December 31, 2003’’

and inserting ‘‘December 31, 2004’’.

(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Section

302h(a)(1) of such title is amended by striking ‘‘December 31, 2003’’

and inserting ‘‘December 31, 2004’’.

SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS

AUTHORITIES FOR NUCLEAR OFFICERS.

(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS EXTENDING

PERIOD OF ACTIVE SERVICE.—Section 312(e) of title 37, United

States Code, is amended by striking ‘‘December 31, 2003’’ and

inserting ‘‘December 31, 2004’’. (b) NUCLEAR CAREER ACCESSION BONUS.—Section 312b(c) of

such title is amended by striking ‘‘December 31, 2003’’ and inserting

‘‘December 31, 2004’’.

(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—Section

312c(d) of such title is amended by striking ‘‘December 31, 2003’’

and inserting ‘‘December 31, 2004’’.

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY

AUTHORITIES.

(a) AVIATION OFFICER RETENTION BONUS.—Section 301b(a) of

title 37, United States Code, is amended by striking ‘‘December

31, 2003’’ and inserting ‘‘December 31, 2004’’.

(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section

308(g) of such title is amended by striking ‘‘December 31, 2003’’

and inserting ‘‘December 31, 2004’’.

(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—Section 309(e)

of such title is amended by striking ‘‘December 31, 2003’’ and

inserting ‘‘December 31, 2004’’.

(d) RETENTION BONUS FOR MEMBERS WITH CRITICAL MILITARY

SKILLS.—Section 323(i) of such title is amended by striking

‘‘December 31, 2003’’ and inserting ‘‘December 31, 2004’’.
H. R. 1588—111

(e) ACCESSION BONUS FOR NEW OFFICERS IN CRITICAL SKILLS.— Section 324(g) of such title is amended by striking ‘‘December

31, 2003’’ and inserting ‘‘December 31, 2004’’.

SEC. 615. HAZARDOUS DUTY PAY FOR DUTY INVOLVING SKI-EQUIPPED

AIRCRAFT ON ANTARCTICA OR THE ARCTIC ICEPACK.

(a) ADDITIONAL TYPE OF DUTY ELIGIBLE FOR PAY.—Section

301(a) of title 37, United States Code, is amended— (1) in paragraph (11), by striking ‘‘or’’ at the end;

(2) by redesignating paragraph (12) as paragraph (13);

and

(3) by inserting after paragraph (11) the following new

paragraph: ‘‘(12) involving use of ski-equipped aircraft on the ground

in Antarctica or on the Arctic ice-pack; or’’. (b) MONTHLY AMOUNT.—Subsection (c) of such section is

amended—

(1) in paragraph (1), by striking ‘‘(11)’’ and inserting ‘‘(12)’’;

and

(2) in paragraph (2)(A), by striking ‘‘(12)’’ and inserting ‘‘(13)’’. (c) TECHNICAL AMENDMENTS.—(1) Subsections (a)(2), (b), (c),

and (f)(2)(A) of such section are amended by striking ‘‘clause’’ each

place it appears and inserting ‘‘paragraph’’. (2) Subsection (c)(1) of such section is amended by striking ‘‘clauses’’ and inserting ‘‘paragraphs’’. (d) EFFECTIVE DATE.—Paragraph (12) of section 301(a) of title

37, United States Code, as added by subsection (a)(3), shall apply

to duty described in such paragraph that is performed on or after

October 1, 2003.

SEC. 616. SPECIAL PAY FOR RESERVE OFFICERS HOLDING POSITIONS

OF UNUSUAL RESPONSIBILITY AND OF CRITICAL

NATURE.

(a) ELIGIBILITY.—Section 306 of title 37, United States Code,

is amended— (1) in subsection (a)— (A) by inserting ‘‘(1)’’ after ‘‘(a)’’;

(B) by striking ‘‘who is entitled to the basic pay of

pay grade O–6 or below and’’ and inserting ‘‘described

in paragraph (2)’’; and

(C) by adding at the end the following new paragraph: ‘‘(2) An officer of the armed forces referred to in paragraph

(1) is an officer who is entitled to the basic pay under section

204 of this title, or the compensation under section 206 of this

title, of pay grade O–6 or below.’’;

(2) by redesignating subsections (b) through (e) as subsections (c) through (f), respectively; and

(3) by inserting after subsection (a) the following new subsection (b):

‘‘(b) If an officer entitled to compensation under section 206

of this title is paid special pay under subsection (a) for the performance of duties in a position designated under such subsection,

the special pay shall be paid at the rate of 1⁄30 of the monthly

rate authorized by such subsection for each day of the performance

of duties in the designated position.’’.

(b) LIMITATION.—Subsection (d) of such section, as redesignated

by subsection (a)(2) of this section, is amended—
H. R. 1588—112

(1) by inserting ‘‘(1)’’ after ‘‘(d)’’;

(2) in paragraph (1), as so designated, by inserting ‘‘or

mobilization in support of a contingency operation’’ after

‘‘training’’; and

(3) by adding at the end the following new paragraph:

‘‘(2) Of the number of officers in the Selected Reserve of the

Ready Reserve of an armed force who are not on active duty

(other than for training or mobilization in support of a contingency

operation), not more than 5 percent of the number of such officers

in each of the pay grades O–3 and below, and not more than

10 percent of the number of such officers in pay grade O–4, O–

5, or O–6, may be paid special pay under subsection (b).’’.

SEC. 617. PAYMENT OF SELECTED RESERVE REENLISTMENT BONUS

TO MEMBERS OF SELECTED RESERVE WHO ARE

MOBILIZED.

Section 308b of title 37, United States Code, as amended by

section 611(a), is further amended—

(1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and

(2) by inserting after subsection (c) the following new subsection (d):

‘‘(d) PAYMENT TO MOBILIZED MEMBERS.—A member entitled

to a bonus under this section who is called or ordered to active

duty shall be paid, during that period of active duty, any amount

of the bonus that becomes payable to the member during that

period of active duty.’’.

SEC. 618. AVAILABILITY OF HOSTILE FIRE AND IMMINENT DANGER

SPECIAL PAY FOR RESERVE COMPONENT MEMBERS ON

INACTIVE DUTY.

(a) EXPANSION AND CLARIFICATION OF CURRENT LAW.—Section

310 of title 37, United States Code, is amended—

(1) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively; and

(2) by striking subsection (a) and inserting the following

new subsections:

‘‘(a) ELIGIBILITY AND SPECIAL PAY AMOUNT.—Under regulations

prescribed by the Secretary of Defense, a member of a uniformed

service may be paid special pay at the rate of $150 for any month

in which—

‘‘(1) the member was entitled to basic pay or compensation

under section 204 or 206 of this title; and

‘‘(2) the member—

‘‘(A) was subject to hostile fire or explosion of hostile

mines;

‘‘(B) was on duty in an area in which the member

was in imminent danger of being exposed to hostile fire

or explosion of hostile mines and in which, during the

period the member was on duty in the area, other members

of the uniformed services were subject to hostile fire or

explosion of hostile mines;

‘‘(C) was killed, injured, or wounded by hostile fire,

explosion of a hostile mine, or any other hostile action;

or

‘‘(D) was on duty in a foreign area in which the member

was subject to the threat of physical harm or imminent
H. R. 1588—113

danger on the basis of civil insurrection, civil war, terrorism, or wartime conditions.

‘‘(b) CONTINUATION DURING HOSPITALIZATION.—A member covered by subsection (a)(2)(C) who is hospitalized for the treatment

of the injury or wound may be paid special pay under this section

for not more than three additional months during which the member

is so hospitalized.’’.

(b) CLERICAL AMENDMENTS.—Such section is further amended—

(1) in subsection (c), as redesignated by subsection (a)(1),

by inserting ‘‘LIMITATIONS AND ADMINISTRATION.—’’ before ‘‘(1)’’;

and

(2) in subsection (d), as redesignated by subsection (a)(1),

by inserting ‘‘DETERMINATIONS OF FACT.—’’ before ‘‘Any’’.

(c) EFFECTIVE DATE.—Subsections (a) and (b) of section 310

of title 37, United States Code, as added by subsection (a)(2),

shall take effect as of September 11, 2001.

(d) RELATION TO TEMPORARY INCREASE IN AUTHORIZED AMOUNT

OF HOSTILE FIRE AND IMMINENT DANGER SPECIAL PAY.—(1) The

amendment made by subsection (a)(2) does not affect the authority

to pay an increased amount of hostile fire and imminent danger

special pay under section 310 of title 37, United States Code,

pursuant to—

(A) the amendment made by subsection (a) of section 1316

of Public Law 108–11 (117 Stat. 570) during the period specified

in subsection (c)(1) of such section, as modified by section

113 of Public Law 108–84 (117 Stat. 1044); or

(B) the amendment made by section 619 of this Act during

the period specified in such amendment.

(2) Effective as of April 16, 2003, section 1316(c)(2) of Public

Law 108–11 (117 Stat. 570) is amended by inserting ‘‘the dollar

amounts specified in’’ before ‘‘sections’’.

SEC. 619. TEMPORARY INCREASE IN AUTHORIZED AMOUNT OF HOSTILE FIRE AND IMMINENT DANGER SPECIAL PAY.

Section 310 of title 37, United States Code, as amended by

section 618, is further amended by adding at the end the following

new subsection:

‘‘(e) TEMPORARY INCREASE IN AUTHORIZED AMOUNT OF SPECIAL

PAY.—For the period beginning on October 1, 2003, and ending

on December 31, 2004, the rate of pay authorized by subsection

(a) shall be increased to $225.’’.

SEC. 620. RETROACTIVE PAYMENT OF HOSTILE FIRE OR IMMINENT

DANGER PAY FOR SERVICE IN EASTERN MEDITERRANEAN SEA IN OPERATION IRAQI FREEDOM.

(a) PAYMENT AUTHORIZED.—The Secretary of Defense may

authorize the payment of hostile fire or imminent danger pay under

section 310(a) of title 37, United States Code, to members of the

Armed Forces who were assigned to duty, during the period beginning on March 19, 2003, and ending on April 11, 2003, in the

area specified in subsection (b) in connection with Operation Iraqi

Freedom at any time during that period.

(b) SPECIFIED AREA.—The area referred to in subsection (a)

is the Mediterranean Sea east of 30 degrees East Longitude (sea

area only).
H. R. 1588—114

SEC. 621. EXPANSION OF OVERSEAS TOUR EXTENSION INCENTIVE PROGRAM TO OFFICERS.

(a) SPECIAL PAY OR BONUS FOR EXTENDING OVERSEAS TOUR

OF DUTY.—(1) Subsections (a) and (b) of section 314 of title 37,

United States Code, are amended by striking ‘‘an enlisted member’’

and inserting ‘‘a member’’.

(2)(A) The heading of such section is amended to read as

follows:

‘‘§ 314. Special pay or bonus: qualified members extending

duty at designated locations overseas’’.

(B) The item relating to such section in the table of sections

at the beginning of chapter 5 of such title is amended to read

as follows:

‘‘314. Special pay or bonus: qualified members extending duty at designated locations overseas.’’.

(b) REST AND RECUPERATIVE ABSENCE IN LIEU OF PAY OR

BONUS.—(1) Subsection (a) of section 705 of title 10, United States

Code, is amended by striking ‘‘an enlisted member’’ and inserting

‘‘a member’’.

(2) The heading of such section, and the item relating to such

section in the table of sections at the beginning of chapter 40

of such title, are each amended by striking the sixth word.

SEC. 622. REPEAL OF CONGRESSIONAL NOTIFICATION REQUIREMENT

FOR DESIGNATION OF CRITICAL MILITARY SKILLS FOR

RETENTION BONUS.

Section 323(b) of title 37, United States Code, is amended—

(1) by striking ‘‘(1)’’; and

(2) by striking paragraph (2).

SEC. 623. ELIGIBILITY OF WARRANT OFFICERS FOR ACCESSION BONUS

FOR NEW OFFICERS IN CRITICAL SKILLS.

Section 324 of title 37, United States Code, is amended in

subsections (a) and (f)(1) by inserting ‘‘or an appointment’’ after

‘‘commission’’.

SEC. 624. SPECIAL PAY FOR SERVICE AS MEMBER OF WEAPONS OF

MASS DESTRUCTION CIVIL SUPPORT TEAM.

(a) IN GENERAL.—Chapter 5 of title 37, United States Code,

is amended by inserting after section 305a the following new section:

‘‘§ 305b. Special pay: service as member of Weapons of Mass

Destruction Civil Support Team

‘‘(a) SPECIAL PAY AUTHORIZED.—The Secretary of a military

department may pay special pay under this subsection to members

of an armed force under the jurisdiction of the Secretary who

are entitled to basic pay under section 204 and are assigned by

orders to duty as members of a Weapons of Mass Destruction

Civil Support Team if the Secretary determines that the payment

of such special pay is needed to address recruitment or retention

concerns in that armed force.

‘‘(b) MONTHLY RATE.—The monthly rate of special pay under

subsection (a) may not exceed $150.
H. R. 1588—115

‘‘(c) INCLUSION OF RESERVE COMPONENT MEMBERS PERFORMING

INACTIVE DUTY TRAINING.—(1) To the extent funds are made available to carry out this subsection, the Secretary of a military department may pay the special pay under subsection (a) to members

of a reserve component of the armed forces who are entitled to

compensation under section 206 of this title and who perform duty

under orders as members of a Weapons of Mass Destruction Civil

Support Team.

‘‘(2) The amount of the special pay for a member referred

to in paragraph (1) shall be equal to 1⁄30 of the monthly special

pay rate in effect under subsection (b) for each day on which

the member performs duty under orders as members of a Weapons

of Mass Destruction Civil Support Team.

‘‘(d) REGULATIONS.—Special pay under this section shall be

provided in accordance with regulations prescribed by the Secretary

of Defense.

‘‘(e) DEFINITION.—In this section, the term ‘Weapons of Mass

Destruction Civil Support Team’ means a team of members of

the reserve components of the armed forces that is established

under section 12310(c) of title 10 in support of emergency preparedness programs to prepare for or to respond to any emergency

involving the use of a weapon of mass destruction.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 305a the following new item:

‘‘305b. Special pay: service as member of Weapons of Mass Destruction Civil Support Team.’’.

SEC. 625. INCENTIVE BONUS FOR CONVERSION TO MILITARY OCCUPATIONAL SPECIALTY TO EASE PERSONNEL SHORTAGE.

(a) IN GENERAL.—Chapter 5 of title 37, United States Code,

is amended by adding at the end the following new section:

‘‘§ 326. Incentive bonus: conversion to military occupational

specialty to ease personnel shortage

‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Secretary concerned

may pay a bonus under this section to an eligible member of

the armed forces who executes a written agreement to convert

to, and serve for a period of not less than three years in, a military

occupational specialty for which there is a shortage of trained

and qualified personnel.

‘‘(b) ELIGIBLE MEMBERS.—A member is eligible to enter into

an agreement under subsection (a) if—

‘‘(1) the member is entitled to basic pay; and

‘‘(2) at the time the agreement is executed, the member

is serving in—

‘‘(A) pay grade E–6, with not more than 10 years

of service computed under section 205 of this title; or

‘‘(B) pay grade E–5 or below, regardless of years of

service.

‘‘(c) AMOUNT AND PAYMENT OF BONUS.—(1) A bonus under

this section may not exceed $4,000. ‘‘(2) A bonus payable under this section shall be disbursed

in one lump sum when the member’s conversion to the military

occupational specialty is approved by the chief personnel officer

of the member’s armed force.
H. R. 1588—116

‘‘(d) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.—A bonus

paid to a member under this section is in addition to any other

pay and allowances to which the member is entitled.

‘‘(e) REPAYMENT OF BONUS.—(1) A member who receives a

bonus under this section and who, voluntarily or because of misconduct, fails to serve in such military occupational specialty for

the period specified in the agreement executed under subsection

(a) shall refund to the United States an amount that bears the

same ratio to the bonus amount paid to the member as the unserved

part of such period bears to the total period agreed to be served.

‘‘(2) An obligation to reimburse the United States imposed

under paragraph (1) is, for all purposes, a debt owed to the United

States.

‘‘(3) A discharge in bankruptcy under title 11 that is entered

less than five years after the termination of the agreement for

which a bonus was paid under this section shall not discharge

the person signing such agreement from the debt arising under

paragraph (1).

‘‘(4) Under regulations prescribed pursuant to subsection (f),

the Secretary concerned may waive, in whole or in part, a refund

required under paragraph (1) if the Secretary determines that

recovery would be against equity and good conscience or would

be contrary to the best interests of the United States.

‘‘(f) REGULATIONS.—The Secretaries concerned shall prescribe

regulations to carry out this section. Regulations prescribed by

the Secretary of a military department shall be subject to the

approval of the Secretary of Defense. ‘‘(g) TERMINATION OF AUTHORITY.—No agreement under this

section may be entered into after December 31, 2006.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘326. Incentive bonus: conversion to military occupational specialty to ease personnel shortage.’’.

SEC. 626. BONUS FOR REENLISTMENT DURING SERVICE ON ACTIVE

DUTY IN AFGHANISTAN, IRAQ, OR KUWAIT.

(a) CRITICAL SKILL REENLISTMENT BONUS.—Section 308(a) of

title 37, United States Code, is amended by adding at the end

the following new paragraph:

‘‘(5) The Secretary of Defense may waive the eligibility requirement in paragraph (1)(B) in the case of a reenlistment or voluntary

extension of enlistment by a member of the armed forces that

is entered into as described in this subsection while the member

is serving on active duty in Afghanistan, Iraq, or Kuwait in support

of Operation Enduring Freedom or Operation Iraqi Freedom.’’. (b) SELECTED RESERVE REENLISTMENT BONUS.—Section 308b(c)

of such title is amended by adding at the end the following new

paragraph: ‘‘(3) In the case of a reenlistment or voluntary extension of

enlistment by a member of the armed forces that is entered into

as described in subsection (a) while the member is serving on

active duty in Afghanistan, Iraq, or Kuwait in support of Operation

Enduring Freedom or Operation Iraqi Freedom, the Secretary concerned may waive so much of paragraph (1)(B) or subsection (a)(2)

as requires that the skill or unit in which the member reenlists
H. R. 1588—117

or extends an enlistment be a designated skill or designated unit

determined by the Secretary concerned.’’.

(c) READY RESERVE REENLISTMENT BONUS.—Section 308h(a)

of such title is amended by adding at the end the following new

paragraph:

‘‘(4) The Secretary concerned may waive the eligibility requirement in paragraph (2)(B) in the case of a reenlistment or voluntary

extension of enlistment by a member of the armed forces that

is entered into as described in this subsection while the member

is serving on active duty in Afghanistan, Iraq, or Kuwait in support

of Operation Enduring Freedom and Operation Iraqi Freedom.’’.

(d) RETROACTIVE APPLICATION.—The amendments made by this

section shall take effect as of March 18, 2003, and apply with

respect to reenlistments or the voluntary extension of enlistments

that are entered into on or after that date.

Subtitle C—Travel and Transportation

Allowances

SEC. 631. SHIPMENT OF PRIVATELY OWNED MOTOR VEHICLE WITHIN

CONTINENTAL UNITED STATES.

(a) AUTHORITY TO PROCURE CONTRACT FOR TRANSPORTATION

OF MOTOR VEHICLE.—Section 2634 of title 10, United States Code,

is amended—

(1) by redesignating subsection (h) as subsection (i); and

(2) by inserting after subsection (g) the following new subsection (h):

‘‘(h) In the case of a member’s change of permanent station

described in subparagraph (A) or (B) of subsection (i)(1), the Secretary concerned may authorize the member to arrange for the

shipment of the motor vehicle in lieu of transportation at the

expense of the United States under this section. The Secretary

concerned may pay the member a monetary allowance in lieu of

transportation, as established under section 404(d)(1) of title 37,

and the member shall be responsible for any transportation costs

in excess of such allowance.’’.

(b) ALLOWANCE FOR SELF-PROCUREMENT OF TRANSPORTATION

OF MOTOR VEHICLE.—Section 406(b)(1)(B) of title 37, United States

Code, is amended by adding at the end the following new sentence:

‘‘In the case of the transportation of a motor vehicle arranged

by the member under section 2634(h) of title 10, the Secretary

concerned may pay the member, upon presentation of proof of

shipment, a monetary allowance in lieu of transportation, as established under section 404(d)(1) of this title.’’.

SEC. 632. TRANSPORTATION OF DEPENDENTS TO PRESENCE OF MEMBERS OF THE ARMED FORCES RETIRED FOR ILLNESS

OR INJURY INCURRED IN ACTIVE DUTY.

Section 411h(a) of title 37, United States Code, is amended—

(1) in paragraph (1), by striking ‘‘military control’’ and

inserting ‘‘control’’; and

(2) in paragraph (2)(A)—

(A) by striking ‘‘or is entitled’’ and inserting ‘‘, is entitled’’; and
H. R. 1588—118

(B) by inserting before the semicolon at the end the

following: ‘‘, or is retired for the illness or injury referred

to in subparagraph (B)’’.

SEC. 633. PAYMENT OR REIMBURSEMENT OF STUDENT BAGGAGE

STORAGE COSTS FOR DEPENDENT CHILDREN OF MEMBERS STATIONED OVERSEAS.

Section 430(b)(2) of title 37, United States Code, is amended

in the first sentence by inserting before the period at the end

the following: ‘‘or during a different period in the same fiscal year

selected by the member’’.

SEC. 634. CONTRACTS FOR FULL REPLACEMENT VALUE FOR LOSS

OR DAMAGE TO PERSONAL PROPERTY TRANSPORTED AT

GOVERNMENT EXPENSE.

(a) AUTHORITY.—Chapter 157 of title 10, United States Code,

is amended by inserting after section 2636 the following new section:

‘‘§ 2636a. Loss or damage to personal property transported

at Government expense: full replacement value;

deduction from amounts due carriers

‘‘(a) PROCUREMENT OF COVERAGE.—The Secretary of Defense

may include in a contract for the transportation of baggage and

household effects for members of the armed forces at Government

expense a clause that requires the carrier under the contract to

pay the full replacement value for loss or damage to the baggage

or household effects transported under the contract.

‘‘(b) DEDUCTION UPON FAILURE OF CARRIER TO SETTLE.—In

the case of a loss or damage of baggage or household effects transported under a contract with a carrier that includes a clause

described in subsection (a), the amount equal to the full replacement

value for the baggage or household effects may be deducted from

the amount owed by the United States to the carrier under the

contract upon a failure of the carrier to settle a claim for such

loss or total damage within a reasonable time. The amount so

deducted shall be remitted to the claimant, notwithstanding section

2636 of this title.

‘‘(c) INAPPLICABILITY OF RELATED LIMITS.—The limitations on

amounts of claims that may be settled under section 3721(b) of

title 31 do not apply to a carrier’s contractual obligation to pay

full replacement value under this section.

‘‘(d) REGULATIONS.—The Secretary of Defense shall prescribe

regulations for administering this section. The regulations shall

include policies and procedures for validating and evaluating claims,

validating proper claimants, and determining reasonable time for

settlement.

‘‘(e) TRANSPORTATION DEFINED.—In this section, the terms

‘transportation’ and ‘transport’, with respect to baggage or household effects, includes packing, crating, drayage, temporary storage,

and unpacking of the baggage or household effects.’’.
H. R. 1588—119

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 2636 the following new item:

‘‘2636a. Loss or damage to personal property transported at Government expense:

full replacement value; deduction from amounts due carriers.’’.

SEC. 635. PAYMENT OF LODGING EXPENSES OF MEMBERS DURING

AUTHORIZED LEAVE FROM TEMPORARY DUTY LOCATION.

(a) PAYMENT OR REIMBURSEMENT AUTHORIZED.—Chapter 7 of

title 37, United States Code, is amended by inserting after section

404a the following new section:

‘‘§ 404b. Travel and transportation allowances: lodging

expenses at temporary duty location for members

on authorized leave

‘‘(a) PAYMENT OR REIMBURSEMENT AUTHORIZED.—The Secretary

concerned may pay or reimburse a member of the armed forces

assigned to temporary duty as described in subsection (b) for lodging

expenses incurred by the member at the temporary duty location

while the member is in an authorized leave status.

‘‘(b) COVERED MEMBERS.—Subsection (a) applies with respect

to a member assigned to temporary duty, for a period of more

than 30 days, in support of a contingency operation or in other

specific situations designated by the Secretary concerned if the

member——

‘‘(1) immediately before taking the authorized leave, was

performing the temporary duty at a location away from the

home or permanent duty station of the member;

‘‘(2) was receiving a per diem allowance under section

404(a)(4) of this title to cover lodging and subsistence expenses

incurred at the temporary duty location because quarters of

the United States were not available for assignment to the

member at that location; and

‘‘(3) immediately after completing the authorized leave,

returns to the duty location.

‘‘(c) PAYMENT LIMITATION.—The amount paid or reimbursed

under subsection (a) for a member may not exceed the lesser of—

‘‘(1) the actual daily cost of lodging incurred by the member

at the temporary duty location while the member was in an

authorized leave status; and

‘‘(2) the lodging portion of the applicable daily per diem

rate for the temporary duty location.’’.
H. R. 1588—120

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 404a the following new item:

‘‘404b. Travel and transportation allowances: lodging expenses at temporary duty location for members on authorized leave.’’.

Subtitle D—Retired Pay and Survivor

Benefits

SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF MILITARY

RETIRED PAY AND VETERANS DISABILITY COMPENSATION FOR CERTAIN MILITARY RETIREES.

(a) CONCURRENT RECEIPT.—Section 1414 of title 10, United

States Code, is amended to read as follows:

‘‘§ 1414. Members eligible for retired pay who are also eligible

for veterans’ disability compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans’ disability compensation

‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COMPENSATION.—

‘‘(1) IN GENERAL.—Subject to subsection (b), a member or

former member of the uniformed services who is entitled for

any month to retired pay and who is also entitled for that

month to veterans’ disability compensation for a qualifying

service-connected disability (hereinafter in this section referred

to as a ‘qualified retiree’) is entitled to be paid both for that

month without regard to sections 5304 and 5305 of title 38.

During the period beginning on January 1, 2004, and ending

on December 31, 2013, payment of retired pay to such a qualified retiree is subject to subsection (c).

‘‘(2) QUALIFYING SERVICE-CONNECTED DISABILITY.—In this

section, the term ‘qualifying service-connected disability’ means

a service-connected disability or combination of service-connected disabilities that is rated as not less than 50 percent

disabling by the Secretary of Veterans Affairs.

‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY RETIREES.—

‘‘(1) CAREER RETIREES.—The retired pay of a member

retired under chapter 61 of this title with 20 years or more

of service otherwise creditable under section 1405 of this title,

or at least 20 years of service computed under section 12732

of this title, at the time of the member’s retirement is subject

to reduction under sections 5304 and 5305 of title 38, but

only to the extent that the amount of the member’s retired

pay under chapter 61 of this title exceeds the amount of retired

pay to which the member would have been entitled under

any other provision of law based upon the member’s service

in the uniformed services if the member had not been retired

under chapter 61 of this title.

‘‘(2) DISABILITY RETIREES WITH LESS THAN 20 YEARS OF

SERVICE.—Subsection (a) does not apply to a member retired

under chapter 61 of this title with less than 20 years of service

otherwise creditable under section 1405 of this title, or with

less than 20 years of service computed under section 12732

of this title, at the time of the member’s retirement.
H. R. 1588—121

‘‘(c) PHASE-IN OF FULL CONCURRENT RECEIPT.—During the

period beginning on January 1, 2004, and ending on December

31, 2013, retired pay payable to a qualified retiree shall be determined as follows:

‘‘(1) CALENDAR YEAR 2004.—For a month during 2004, the

amount of retired pay payable to a qualified retiree is the

amount (if any) of retired pay in excess of the current baseline

offset plus the following:

‘‘(A) For a month for which the retiree receives veterans’ disability compensation for a disability rated as total,

$750.

‘‘(B) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 90

percent, $500.

‘‘(C) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 80

percent, $350.

‘‘(D) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 70

percent, $250.

‘‘(E) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 60

percent, $125.

‘‘(F) For a month for which the retiree receives veterans’ disability compensation for a disability rated as 50

percent, $100.

‘‘(2) CALENDAR YEAR 2005.—For a month during 2005, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount specified in paragraph (1) for that

qualified retiree; and

‘‘(B) 10 percent of the difference between (i) the current

baseline offset, and (ii) the amount specified in paragraph

(1) for that member’s disability.

‘‘(3) CALENDAR YEAR 2006.—For a month during 2006, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (2) for

that qualified retiree; and

‘‘(B) 20 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (2) for that qualified retiree.

‘‘(4) CALENDAR YEAR 2007.—For a month during 2007, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (3) for

that qualified retiree; and

‘‘(B) 30 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (3) for that qualified retiree.

‘‘(5) CALENDAR YEAR 2008.—For a month during 2008, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (4) for

that qualified retiree; and
H. R. 1588—122

‘‘(B) 40 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (4) for that qualified retiree.

‘‘(6) CALENDAR YEAR 2009.—For a month during 2009, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (5) for

that qualified retiree; and

‘‘(B) 50 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (5) for that qualified retiree.

‘‘(7) CALENDAR YEAR 2010.—For a month during 2010, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (6) for

that qualified retiree; and

‘‘(B) 60 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (6) for that qualified retiree.

‘‘(8) CALENDAR YEAR 2011.—For a month during 2011, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (7) for

that qualified retiree; and

‘‘(B) 70 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (7) for that qualified retiree.

‘‘(9) CALENDAR YEAR 2012.—For a month during 2012, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (8) for

that qualified retiree; and

‘‘(B) 80 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (8) for that qualified retiree.

‘‘(10) CALENDAR YEAR 2013.—For a month during 2013, the

amount of retired pay payable to a qualified retiree is the

sum of—

‘‘(A) the amount determined under paragraph (9) for

that qualified retiree; and

‘‘(B) 90 percent of the difference between (i) the current

baseline offset, and (ii) the amount determined under paragraph (9) for that qualified retiree.

‘‘(11) GENERAL LIMITATION.—Retired pay determined under

this subsection for a qualified retiree, if greater than the

amount of retired pay otherwise applicable to that qualified

retiree, shall be reduced to the amount of retired pay otherwise

applicable to that qualified retiree.

‘‘(d) COORDINATION WITH COMBAT-RELATED SPECIAL COMPENSATION PROGRAM.—

‘‘(1) IN GENERAL.—A person who is a qualified retiree under

this section and is also an eligible combat-related disabled

uniformed services retiree under section 1413a of this title

may receive special compensation in accordance with that section or retired pay in accordance with this section, but not

both.
H. R. 1588—123

‘‘(2) ANNUAL OPEN SEASON.—The Secretary concerned shall

provide for an annual period (referred to as an ‘open season’)

during which a person described in paragraph (1) shall have

the right to make an election to change from receipt of special

compensation in accordance with section 1413a of this title

to receipt of retired pay in accordance with this section, or

the reverse, as the case may be. Any such election shall be

made under regulations prescribed by the Secretary concerned.

Such regulations shall provide for the form and manner for

making such an election and shall provide for the date as

of when such an election shall become effective. In the case

of the Secretary of a military department, such regulations

shall be subject to approval by the Secretary of Defense.

‘‘(e) DEFINITIONS.—In this section:

‘‘(1) RETIRED PAY.—The term ‘retired pay’ includes retainer

pay, emergency officers’ retirement pay, and naval pension.

‘‘(2) VETERANS’ DISABILITY COMPENSATION.—The term ‘veterans’ disability compensation’ has the meaning given the term

‘compensation’ in section 101(13) of title 38.

‘‘(3) DISABILITY RATED AS TOTAL.—The term ‘disability rated

as total’ means—

‘‘(A) a disability, or combination of disabilities, that

is rated as total under the standard schedule of rating

disabilities in use by the Department of Veterans Affairs;

or

‘‘(B) a disability, or combination of disabilities, for

which the scheduled rating is less than total but for which

a rating of total is assigned by reason of inability of the

disabled person concerned to secure or follow a substantially gainful occupation as a result of disabilities for which

veterans’ disability compensation may be paid.

‘‘(4) CURRENT BASELINE OFFSET.—

‘‘(A) IN GENERAL.—The term ‘current baseline offset’

for any qualified retiree means the amount for any month

that is the lesser of—

‘‘(i) the amount of the applicable monthly retired

pay of the qualified retiree for that month; and

‘‘(ii) the amount of monthly veterans’ disability

compensation to which the qualified retiree is entitled

for that month.

‘‘(B) APPLICABLE RETIRED PAY.—In subparagraph (A),

the term ‘applicable retired pay’ for a qualified retiree

means the amount of monthly retired pay to which the

qualified retiree is entitled, determined without regard to

this section or sections 5304 and 5305 of title 38, except

that in the case of such a retiree who was retired under

chapter 61 of this title, such amount is the amount of

retired pay to which the member would have been entitled

under any other provision of law based upon the member’s

service in the uniformed services if the member had not

been retired under chapter 61 of this title.’’.

(b) REPEAL OF SUPERCEDED SPECIAL COMPENSATION

AUTHORITY.—Section 1413 of title 10, United States Code, is

repealed.

(c) SOURCE OF FUNDS FOR SPECIAL COMPENSATION AUTHORITIES

FOR DEPARTMENT OF DEFENSE RETIREES.—
H. R. 1588—124

(1) Sections 1413(g) and 1413a(h) of title 10, United States

Code, are each amended—

(A) by inserting before ‘‘Payments under’’ the following

new sentence: ‘‘Payments under this section for a member

of the Army, Navy, Air Force, or Marine Corps shall be

paid from the Department of Defense Military Retirement

Fund.’’; and

(B) by inserting ‘‘for any other member’’ before ‘‘for

any fiscal year’’.

(2) Section 1463(a)(1) of such title is amended by inserting

before the semicolon the following: ‘‘and payments under section

1413, 1413a, or 1414 of this title paid to such members’’.

(3) Section 1465(b) of such title is amended by adding

at the end the following new paragraph:

‘‘(3) At the same time that the Secretary of Defense makes

the determination required by paragraph (1) for any fiscal year,

the Secretary shall determine the amount of the Treasury contribution to be made to the Fund for the next fiscal year under section

1466(b)(2)(D) of this title. That amount shall be determined in

the same manner as the determination under paragraph (1) of

the total amount of Department of Defense contributions to be

made to the Fund during that fiscal year under section 1466(a)

of this title, except that for purposes of this paragraph the Secretary,

in making the calculations required by subparagraphs (A) and

(B) of that paragraph, shall use the single level percentages determined under subsection (c)(4), rather than those determined under

subsection (c)(1).’’.

(4) Section 1465(c) of such title is amended— (A) in paragraph (1)— (i) in subparagraph (A), by inserting before the

semicolon at the end the following: ‘‘, to be determined

without regard to section 1413, 1413a, or 1414 of this

title’’;

(ii) in subparagraph (B), by inserting before the

period at the end the following: ‘‘, to be determined

without regard to section 1413, 1413a, or 1414 of this

title’’; and

(iii) in the sentence following subparagraph (B),

by striking ‘‘subsection (b)’’ and inserting ‘‘subsection

(b)(1)’’;

(B) by redesignating paragraph (4) as paragraph (5);

and

(C) by inserting after paragraph (3) the following new

paragraph (4): ‘‘(4) Whenever the Secretary carries out an actuarial valuation

under paragraph (1), the Secretary shall include as part of such

valuation the following:

‘‘(A) A determination of a single level percentage determined in the same manner as applies under subparagraph

(A) of paragraph (1), but based only upon the provisions of

sections 1413, 1413a, and 1414 of this title.

‘‘(B) A determination of a single level percentage determined in the same manner as applies under subparagraph

(B) of paragraph (1), but based only upon the provisions of

sections 1413, 1413a, and 1414 of this title.

Such single level percentages shall be used for the purposes of

subsection (b)(3).’’.
H. R. 1588—125

(5) Section 1466(b) of such title is amended— (A) in paragraph (1), by striking ‘‘sections 1465(a) and

1465(c)’’ and inserting ‘‘sections 1465(a), 1465(b)(3),

1465(c)(2), and 1465(c)(3)’’; and

(B) by adding at the end of paragraph (2) the following

new subparagraph:

‘‘(D) The amount for that year determined by the Secretary

of Defense under section 1465(b)(3) of this title for the cost

to the Fund arising from increased amounts payable from the

Fund by reason of section 1413, 1413a, or 1414 of this title.’’. (6) The amendments made by this subsection shall take

effect as of October 1, 2003. The Secretary of Defense shall

provide for such administrative adjustments as necessary to

provide for payments made for any period during fiscal year

2004 before the date of the enactment of this Act to be treated

as having been made in accordance with such amendments

and for the provisions of such amendments to be implemented

as if enacted as of September 30, 2003.

(d) CLERICAL AMENDMENTS.—The table of sections at the beginning of chapter 71 of such title is amended— (1) by striking the item relating to section 1413; and

(2) by striking the item relating to section 1414 and

inserting the following:

‘‘1414. Members eligible for retired pay who are also eligible for veterans’ disability

compensation for disabilities rated 50 percent or higher: concurrent payment of retired pay and veterans’ disability compensation.’’.

(e) EFFECTIVE DATE.—The amendments made by subsections

(a) and (b) shall take effect on January 1, 2004, and shall apply

to payments for months beginning on or after that date.

SEC. 642. REVISIONS TO COMBAT-RELATED SPECIAL COMPENSATION

PROGRAM.

(a) EXTENSION OF PROGRAM TO COMBAT-RELATED DISABILITIES

RATED BELOW 60 PERCENT.—(1) Subsection (e) of section 1413a

of title 10, United States Code, is amended to read as follows:

‘‘(e) COMBAT-RELATED DISABILITY.—In this section, the term

‘combat-related disability’ means a disability that is compensable

under the laws administered by the Secretary of Veterans Affairs

and that—

‘‘(1) is attributable to an injury for which the member

was awarded the Purple Heart; or

‘‘(2) was incurred (as determined under criteria prescribed

by the Secretary of Defense)—

‘‘(A) as a direct result of armed conflict;

‘‘(B) while engaged in hazardous service;

‘‘(C) in the performance of duty under conditions simulating war; or

‘‘(D) through an instrumentality of war.’’.

(2) Subsection (c)(2) of such section is amended by striking

‘‘qualifying’’.

(b) CLARIFICATION OF SERVICE REQUIRED FOR ELIGIBILITY.—

Subsection (c)(1) of such section is amended by inserting before

the semicolon the following: ‘‘or is entitled to retired pay under

section 12731 of this title (other than by reason of section 12731b

of this title)’’. (c) CLARIFICATION OF DETERMINATION OF AMOUNT OF COM- PENSATION.—Subsection (b)(1) of such section is amended by
H. R. 1588—126

striking ‘‘for a’’ and all that follows and inserting ‘‘under subsection

(a) for any month is the amount of compensation to which the

retiree is entitled under title 38 for that month, determined without

regard to any disability of the retiree that is not a combat-related

disability.’’.

(d) REVISED COORDINATION PROVISION.—Subsection (f) of such

section is amended to read as follows:

‘‘(f) COORDINATION WITH CONCURRENT RECEIPT PROVISION.—

Subsection (d) of section 1414 of this title provides for coordination

between benefits under that section and under this section.’’.

(e) CLERICAL AMENDMENTS.—(1) The heading of such section

is amended to read as follows:

‘‘§ 1413a. Combat-related special compensation’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 71 of such title is amended to read

as follows:

‘‘1413a. Combat-related special compensation.’’.

(f) EFFECTIVE DATE.—The amendments made by subsections

(a), (b), and (c) shall apply to payments under section 1413a of

title 10, United States Code, for months beginning on or after

January 1, 2004. The amendment made by subsection (d) shall

take effect on January 1, 2004.

SEC. 643. SPECIAL RULE FOR COMPUTATION OF RETIRED PAY BASE

FOR COMMANDERS OF COMBATANT COMMANDS.

(a) TREATMENT EQUIVALENT TO CHIEFS OF SERVICE.—Subsection (i) of section 1406 of title 10, United States Code, is amended

by inserting ‘‘as a commander of a unified or specified combatant

command (as defined in section 161(c) of this title),’’ after ‘‘Chief

of Service,’’.

(b) CONFORMING AMENDMENT.—The heading for such subsection is amended by inserting ‘‘COMMANDERS OF COMBATANT COMMANDS,’’ after ‘‘CHIEFS OF SERVICE,’’.

(c) EFFECTIVE DATE AND APPLICABILITY.—The amendments

made by this section shall take effect on the date of the enactment

of this Act and shall apply with respect to officers who first become

entitled to retired pay under title 10, United States Code, on or

after such date.

SEC. 644. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING

SPOUSES OF RESERVES NOT ELIGIBLE FOR RETIREMENT

WHO DIE FROM A CAUSE INCURRED OR AGGRAVATED

WHILE ON INACTIVE-DUTY TRAINING.

(a) SURVIVING SPOUSE ANNUITY.—Paragraph (1) of section

1448(f) of title 10, United States Code, is amended to read as

follows:

‘‘(1) SURVIVING SPOUSE ANNUITY.—The Secretary concerned

shall pay an annuity under this subchapter to the surviving

spouse of a person who—

‘‘(A) is eligible to provide a reserve-component annuity

and dies—

‘‘(i) before being notified under section 12731(d)

of this title that he has completed the years of service

required for eligibility for reserve-component retired

pay; or
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‘‘(ii) during the 90-day period beginning on the

date he receives notification under section 12731(d)

of this title that he has completed the years of service

required for eligibility for reserve-component retired

pay if he had not made an election under subsection

(a)(2)(B) to participate in the Plan; or

‘‘(B) is a member of a reserve component not described

in subparagraph (A) and dies from an injury or illness

incurred or aggravated in the line of duty during inactiveduty training.’’.

(b) CONFORMING AMENDMENT.—The heading for subsection (f)

of section 1448 of such title is amended by inserting ‘‘OR BEFORE’’

after ‘‘DYING WHEN’’.

(c) EFFECTIVE DATE.—Subparagraph (B) of section 1448(f)(1)

of title 10, United States Code, as added by subsection (a), shall

take effect as of September 10, 2001, and shall apply with respect

to performance of inactive-duty training (as defined in section 101(d)

of title 10, United States Code) on or after that date.

SEC. 645. SURVIVOR BENEFIT PLAN MODIFICATIONS.

(a) ELIGIBILITY OF DEPENDENT CHILDREN FOR SURVIVOR ANNUITIES IN CASES OF DEATHS OF MEMBERS ON ACTIVE DUTY.—(1)

Paragraph (2) of section 1448(d) of title 10, United States Code,

is amended to read as follows:

‘‘(2) DEPENDENT CHILDREN.—

‘‘(A) ANNUITY WHEN NO ELIGIBLE SURVIVING SPOUSE.—

In the case of a member described in paragraph (1), the

Secretary concerned shall pay an annuity under this subchapter to the member’s dependent children under section

1450(a)(2) of this title as applicable.

‘‘(B) OPTIONAL ANNUITY WHEN THERE IS AN ELIGIBLE

SURVIVING SPOUSE.—In the case of a member described

in paragraph (1) who dies on or after the date of the

enactment of the National Defense Authorization Act for

Fiscal Year 2004 and for whom there is a surviving spouse

eligible for an annuity under paragraph (1), the Secretary

may pay an annuity under this subchapter to the member’s

dependent children under section 1450(a)(3) of this title,

if applicable, instead of paying an annuity to the surviving

spouse under paragraph (1), if the Secretary concerned,

in consultation with the surviving spouse, determines it

appropriate to provide an annuity for the dependent children under this paragraph instead of an annuity for the

surviving spouse under paragraph (1).’’.

(2) Paragraph (1) of such section is amended by striking ‘‘The

Secretary concerned’’ and inserting ‘‘Except as provided in paragraph (2)(B), the Secretary concerned’’.

(b) VITIATION OF SURVIVOR ANNUITY ELECTIONS MADE BY DISABILITY RETIREES WHO DIE OF DISABILITY-RELATED CAUSES.—(1)

Section 1448(b)(1) of such title is amended by adding at the end

the following new subparagraph:

‘‘(F) VITIATION OF ELECTION BY DISABILITY RETIREE WHO

DIES OF DISABILITY-RELATED CAUSE.—If a member retired

on or after the date of the enactment of the National

Defense Authorization Act for Fiscal Year 2004 under

chapter 61 of this title dies within one year after the

date on which the member is so retired and the cause
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of death is related to a disability for which the member

was retired under that chapter (as determined under regulations prescribed by the Secretary of Defense)—

‘‘(i) an election made by the member under paragraph (1) to provide an annuity under the Plan to

any person other than a dependent of that member

(as defined in section 1072(2) of this title) is vitiated;

and

‘‘(ii) the amounts by which the member’s retired

pay was reduced under section 1452 of this title shall

be refunded and paid to the person to whom the

annuity under the Plan would have been paid pursuant

to such election.’’.

(2) Section 1458 of such title is amended by adding at the

end the following new subsection:

‘‘(j) VITIATION OF ELECTION BY DISABILITY RETIREE WHO DIES

OF DISABILITY-RELATED CAUSE.—If a member retired on or after

the date of the enactment of the National Defense Authorization

Act for Fiscal Year 2004 under chapter 61 of this title dies within

one year after the date on which the member is so retired and

the cause of death is related to a disability for which the member

was retired under that chapter (as determined under regulations

prescribed by the Secretary of Defense)—

‘‘(1) an election made by the member to provide a supplemental spouse annuity under this subchapter is vitiated; and

‘‘(2) the amounts by which the member’s retired pay was

reduced under section 1460 of this title shall be refunded and

paid to the person to whom the supplemental spouse annuity

would have been paid pursuant to such election.’’.

(c) INSURABLE INTEREST ANNUITY DEEMED ELECTIONS.—Section

1448(d) of such title is amended by adding at the end the following

new paragraph:

‘‘(6) DEEMED ELECTION.—

‘‘(A) ANNUITY FOR DEPENDENT.—In the case of a

member described in paragraph (1) who dies on or after

the date of the enactment of the National Defense

Authorization Act for Fiscal Year 2004, the Secretary concerned may, if no other annuity is payable on behalf of

the member under this subchapter, pay an annuity to

a natural person who has an insurable interest in such

member as if the annuity were elected by the member

under subsection (b)(1). The Secretary concerned may pay

such an annuity under this paragraph only in the case

of a person who is a dependent of that member (as defined

in section 1072(2) of this title).

‘‘(B) COMPUTATION OF ANNUITY.—An annuity under

this subparagraph shall be computed under section 1451(b)

of this title as if the member had retired for total disability

on the date of death with reductions as specified under

section 1452(c) of this title, as applicable to the ages of

the member and the natural person with an insurable

interest.’’.
H. R. 1588—129

SEC. 646. INCREASE IN DEATH GRATUITY PAYABLE WITH RESPECT

TO DECEASED MEMBERS OF THE ARMED FORCES.

(a) AMOUNT OF DEATH GRATUITY.—Section 1478(a) of title 10,

United States Code, is amended by striking ‘‘$6,000’’ and inserting ‘‘$12,000’’. (b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect as of September 11, 2001, and shall apply with

respect to deaths occurring on or after that date.

SEC. 647. DEATH BENEFITS STUDY.

(a) SENSE OF CONGRESS.—It is the sense of Congress that—

(1) the sacrifices made by the members of the Armed Forces

are significant and are worthy of meaningful expressions of

gratitude by the United States, especially in cases of sacrifice

through loss of life;

(2) the tragic events of September 11, 2001, and subsequent

worldwide combat operations in the Global War on Terrorism

and in Operation Iraqi Freedom have highlighted the significant

disparity between the financial benefits for survivors of

deceased members of the Armed Forces and the financial benefits for survivors of civilian victims of terrorism;

(3) the death benefits system composed of the death gratuity paid by the Department of Defense to survivors of members of the Armed Forces, the subsequently established

Servicemembers’ Group Life Insurance (SGLI) program, and

other benefits for survivors of deceased members has evolved

over time, but there are increasing indications that the evolution of such benefits has failed to keep pace with the expansion of indemnity and compensation available to segments of

United States society outside the Armed Forces, a failure that

is especially apparent in a comparison of the benefits for survivors of deceased members with the compensation provided

to families of civilian victims of terrorism; and

(4) while the Servicemembers’ Group Life Insurance (SGLI)

program provides an assured source of life insurance for members of the Armed Forces that benefits the survivors of such

members upon death, that program requires servicemembers

to pay for that life insurance coverage and does not provide

an assured minimum benefit.

(b) STUDY REQUIRED.—The Secretary of Defense shall carry

out a study of the totality of all current and projected death benefits

for survivors of deceased members of the Armed Forces to determine

the adequacy of such benefits. In carrying out the study, the Secretary shall—

(1) compare the Federal death benefits for survivors of

deceased members of the Armed Forces with— (A) commercial and other private sector death benefits

plans for segments of United States society outside the

Armed Forces; and

(B) the benefits available under Public Law 107–37

(115 Stat. 219) (commonly known as the ‘‘Public Safety

Officer Benefits Bill’’);

(2) assess the personnel policy effects that would result

from a revision of the death gratuity benefit to provide a

stratified schedule of entitlement amounts that places a premium on deaths resulting from participation in combat or from

acts of terrorism;
H. R. 1588—130

(3) assess the adequacy of the current system of Survivor

Benefit Plan annuities under title 10, United States Code,

and dependency and indemnity compensation under title 38,

United States Code, and the anticipated effects (if any) of

an elimination of the offset of Survivor Benefit Plan annuities

by dependency and indemnity compensation payments;

(4) examine the commercial insurability of members of

the Armed Forces in high-risk military occupational specialties;

and

(5) examine the extent to which private trusts and foundations engage in fundraising or otherwise provide financial benefits for survivors of deceased members of the Armed Forces.

(c) REPORT.—Not later than March 1, 2004, the Secretary shall

submit to the Committees on Armed Services of the Senate and

the House of Representatives a report on the results of the study

under subsection (b). The report shall include the following:

(1) The assessments, analyses, and conclusions resulting

from the study.

(2) Proposed legislation to address the deficiencies in the

system of Federal death benefits for survivors of deceased members of the Armed Forces that are identified in the course

of the study.

(3) An estimate of the costs of the system of death benefits

provided for in the proposed legislation.

(d) COMPTROLLER GENERAL STUDY.—The Comptroller General

shall conduct a study to identify the death benefits that are payable

under Federal, State, and local laws for employees of the United

States, State governments, and local governments. Not later than

March 1, 2004, the Comptroller General shall submit a report

containing the results of the study to the Committees on Armed

Services of the Senate and the House of Representatives.

Subtitle E—Commissary and Nonappropriated Fund Instrumentality Benefits

SEC. 651. EXPANDED COMMISSARY ACCESS FOR SELECTED RESERVE

MEMBERS, RESERVE RETIREES UNDER AGE 60, AND

THEIR DEPENDENTS.

(a) ACCESS TO MILITARY COMMISSARIES.—Section 1065 of title

10, United States Code, is amended—

(1) in subsections (a), (b), and (c), by inserting ‘‘commissary

stores and’’ after ‘‘use’’ each place it appears; and

(2) in subsection (d)—

(A) by inserting ‘‘commissary stores and’’ after ‘‘use’’

the first and third places it appears; and

(B) by inserting ‘‘stores and’’ after ‘‘use’’ the second

and fourth places it appears.

(b) CONFORMING AMENDMENTS; TRANSFER OF SECTION.—

Chapter 54 of such title is amended— (1) by striking sections 1063 and 1064;

(2) in section 1063a(c)(2), by striking ‘‘section 1065(e)’’ and

inserting ‘‘section 1063(e)’’;

(3) by redesignating section 1063a, as amended by paragraph (2), as section 1064;
H. R. 1588—131

(4) by transferring section 1065, as amended by subsection

(a), so as to appear after section 1062; and

(5) by striking the heading of such section, as amended

by subsection (a) and transferred by paragraph (4), and

inserting the following new heading:

‘‘§ 1063. Use of commissary stores and MWR retail facilities:

members of reserve components and reserve

retirees under age 60’’.

(c) CLERICAL AMENDMENTS.—The table of sections at the beginning of such chapter is amended by striking the items relating

to sections 1063, 1063a, 1064, and 1065 and inserting the following

new items:

‘‘1063. Use of commissary stores and MWR retail facilities: members of reserve components and reserve retirees under age 60. ‘‘1064. Use of commissary stores and MWR retail facilities: members of National

Guard serving in federally declared disaster or national emergency.’’.

SEC. 652. DEFENSE COMMISSARY SYSTEM AND EXCHANGE STORES

SYSTEM.

(a) EXISTENCE OF SYSTEMS.—Chapter 147 of title 10, United

States Code, is amended by inserting before section 2482 the following new section:

‘‘§ 2481. Existence of defense commissary system and

exchange stores system

‘‘(a) IN GENERAL.—The Secretary of Defense shall operate a

defense commissary system and an exchange stores system in the

manner provided by this chapter and other provisions of law.

‘‘(b) SEPARATE SYSTEMS.—(1) Except as provided in paragraph

(2), the defense commissary system and the exchange stores system

shall be operated as separate systems of the Department of Defense.

‘‘(2) This subsection does not apply to the following:

‘‘(A) Combined exchange and commissary stores operated

under the authority provided by section 2490a of this title.

‘‘(B) NEXMART stores of the Navy Exchange Service Command established before October 1, 2003.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting before the item

relating to section 2482 the following new item:

‘‘2481. Existence of defense commissary system and exchange stores system.’’.

SEC. 653. LIMITATIONS ON PRIVATE OPERATION OF DEFENSE COMMISSARY STORE FUNCTIONS.

Section 2482(a) of title 10, United States Code, is amended—

(1) by striking the first and second sentences and inserting

the following: ‘‘(1) Under such regulations as the Secretary

of Defense may approve, private persons may operate selected

commissary store functions, except that such functions may

not include functions relating to the procurement of products

to be sold in a commissary store or functions relating to the

overall management of a commissary system or the management of a commissary store.’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) Any change to private operation of a commissary store

function that is being performed by more than 10 Department

of Defense civilian employees shall not take effect until the end
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of the 75-day period beginning on the date on which the Secretary

of Defense submits to Congress written notice of the change.’’.

SEC. 654. USE OF APPROPRIATED FUNDS TO OPERATE DEFENSE COMMISSARY SYSTEM.

(a) REQUIREMENT THAT COMMISSARY OPERATING EXPENSES BE

PAID FROM APPROPRIATED FUNDS.—Section 2484 of title 10, United

States Code, is amended—

(1) in subsection (a), by striking ‘‘may’’ and inserting ‘‘shall’’;

and

(2) in subsection (b), by striking ‘‘may’’ in the first sentence

and inserting ‘‘shall’’.

(b) SUPPLEMENTAL FUNDS FOR COMMISSARY OPERATIONS.—Such

section is further amended by adding at the end the following

new subsection:

‘‘(c) SUPPLEMENTAL FUNDS FOR COMMISSARY OPERATIONS.—

Amounts appropriated to cover the expenses of operating the

Defense Commissary Agency and the defense commissary system

may be supplemented with additional funds from manufacturers’

coupon redemption fees, handling fees for tobacco products, and

other amounts received as reimbursement for other support activities provided by commissary activities.’’.

SEC. 655. RECOVERY OF NONAPPROPRIATED FUND INSTRUMENTALITY

AND COMMISSARY STORE INVESTMENTS IN REAL PROPERTY AT MILITARY INSTALLATIONS CLOSED OR

REALIGNED.

(a) 1988 LAW.—Section 204(b)(7)(C) of the Defense Authorization Amendments and Base Closure and Realignment Act (Public

Law 100–526; 10 U.S.C. 2687 note) is amended—

(1) in the second sentence of clause (i), by striking ‘‘The

Secretary may use amounts in the account (in such an aggregate amount as is provided in advance in appropriation Acts)’’

and inserting ‘‘Subject to the limitation in clause (iii), amounts

in the reserve account are hereby made available to the Secretary, without appropriation and until expended,’’;

(2) by redesignating clause (iii) as clause (iv); and

(3) by inserting after clause (ii) the following new clause

(iii):

‘‘(iii) The aggregate amount obligated from the reserve account

established under clause (i) may not exceed the following:

‘‘(I) In fiscal year 2004, $31,000,000.

‘‘(II) In fiscal year 2005, $24,000,000.

‘‘(III) In fiscal year 2006, $15,000,000.’’.

(b) 1990 LAW.—Section 2906(d)(3) of the Defense Base Closure

and Realignment Act of 1990 (part A of title XXIX of Public Law

101–510; 10 U.S.C. 2687 note) is amended by striking ‘‘The Secretary may use amounts in the account (in such an aggregate

amount as is provided in advance in appropriation Acts)’’ and

inserting ‘‘Subject to the limitation contained in section

204(b)(7)(C)(iii) of the Defense Authorization Amendments and Base

Closure and Realignment Act, amounts in the reserve account are

hereby made available to the Secretary, without appropriation and

until expended,’’.
H. R. 1588—133

Subtitle F—Other Matters

SEC. 661. COMPTROLLER GENERAL REPORT ON ADEQUACY OF SPECIAL PAYS AND ALLOWANCES FOR FREQUENTLY

DEPLOYED MEMBERS.

Not later than April 1, 2004, the Comptroller General shall

submit to Congress a report regarding the adequacy of special

pays and allowances for members of the Armed Forces who are

frequently deployed away from their permanent duty stations for

periods of less than 30 days. The report shall include an assessment

of the eligibility requirements for the family separation allowance

under section 427 of title 37, United States Code, including those

relating to required duration of absences from the permanent duty

station.

TITLE VII—HEALTH CARE PROVISIONS

Subtitle A—Enhanced Benefits for Reserves

Sec. 701. Medical and dental screening for Ready Reserve members alerted for mobilization.

Sec. 702. Coverage for Ready Reserve members under TRICARE program.

Sec. 703. Earlier eligibility date for TRICARE benefits for members of reserve components.

Sec. 704. Temporary extension of transitional health care benefits.

Sec. 705. Assessment of needs of Reserves for health care benefits.

Sec. 706. Limitation on fiscal year 2004 outlays for temporary Reserve health care

programs.

Sec. 707. TRICARE beneficiary counseling and assistance coordinators for reserve

component beneficiaries.

Sec. 708. Eligibility of Reserve officers for health care pending orders to active duty

following commissioning.

Subtitle B—Other Benefits Improvements

Sec. 711. Acceleration of implementation of chiropractic health care for members on

active duty.

Sec. 712. Reimbursement of covered beneficiaries for certain travel expenses relating to specialized dental care.

Sec. 713. Eligibility for continued health benefits coverage extended to certain

members of uniformed services.

Sec. 714. Authority for designated providers to enroll covered beneficiaries with

other primary health insurance coverage.

Subtitle C—Planning, Programming, and Management

Sec. 721. Permanent extension of authority to enter into personal services contracts

for the performance of health care responsibilities at locations other

than military medical treatment facilities.

Sec. 722. Department of Defense Medicare-Eligible Retiree Health Care Fund valuations and contributions.

Sec. 723. Surveys on continued viability of TRICARE Standard.

Sec. 724. Plan for providing health coverage information to members, former members, and dependents eligible for certain health benefits.

Sec. 725. Transfer of certain members of the Pharmacy and Therapeutics Committee to the Uniform Formulary Beneficiary Advisory Panel under the

pharmacy benefits program.

Sec. 726. Working group on military health care for persons reliant on health care

facilities at military installations to be closed or realigned.

Sec. 727. Joint program for development and evaluation of integrated healing care

practices for members of the Armed Forces and veterans.
H. R. 1588—134

Subtitle A—Enhanced Benefits for

Reserves

SEC. 701. MEDICAL AND DENTAL SCREENING FOR READY RESERVE

MEMBERS ALERTED FOR MOBILIZATION.

Subsection (f) of section 1074a of title 10, United States Code,

as amended by section 1114 of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and

Afghanistan, 2004, is amended to read as follows:

‘‘(f)(1) At any time after the Secretary concerned notifies members of the Ready Reserve that the members are to be called

or ordered to active duty for a period of more than 30 days, the

administering Secretaries may provide to each such member any

medical and dental screening and care that is necessary to ensure

that the member meets the applicable medical and dental standards

for deployment.

‘‘(2) The notification to members of the Ready Reserve described

in paragraph (1) shall include notice that the members are eligible

for screening and care under this section.

‘‘(3) A member provided medical or dental screening or care

under paragraph (1) may not be charged for the screening or care.’’.

SEC. 702. COVERAGE FOR READY RESERVE MEMBERS UNDER TRICARE

PROGRAM.

Section 1076b of title 10, United States Code, as added by

section 1115 of the Emergency Supplemental Appropriations Act

for Defense and for the Reconstruction of Iraq and Afghanistan,

2004, is amended to read as follows:

‘‘§ 1076b. TRICARE program: coverage for members of the

Ready Reserve

‘‘(a) ELIGIBILITY.—Each member of the Selected Reserve of the

Ready Reserve and each member of the Individual Ready Reserve

described in section 10144(b) of this title is eligible, subject to

subsection (h), to enroll in TRICARE and receive benefits under

such enrollment for any period that the member—

‘‘(1) is an eligible unemployment compensation recipient;

or

‘‘(2) is not eligible for health care benefits under an

employer-sponsored health benefits plan.

‘‘(b) TYPES OF COVERAGE.—(1) A member eligible under subsection (a) may enroll for either of the following types of coverage:

‘‘(A) Self alone coverage.

‘‘(B) Self and family coverage.

‘‘(2) An enrollment by a member for self and family covers

the member and the dependents of the member who are described

in subparagraph (A), (D), or (I) of section 1072(2) of this title.

‘‘(c) OPEN ENROLLMENT PERIODS.—The Secretary of Defense

shall provide for at least one open enrollment period each year.

During an open enrollment period, a member eligible under subsection (a) may enroll in the TRICARE program or change or

terminate an enrollment in the TRICARE program. ‘‘(d) SCOPE OF CARE.—(1) A member and the dependents of

a member enrolled in the TRICARE program under this section

shall be entitled to the same benefits under this chapter as a
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member of the uniformed services on active duty or a dependent

of such a member, respectively.

‘‘(2) Section 1074(c) of this title shall apply with respect to

a member enrolled in the TRICARE program under this section.

‘‘(e) PREMIUMS.—(1) The Secretary of Defense shall charge premiums for coverage pursuant to enrollments under this section.

The Secretary shall prescribe for each of the TRICARE program

options a premium for self alone coverage and a premium for

self and family coverage.

‘‘(2) The monthly amount of the premium in effect for a month

for a type of coverage under this section shall be the amount

equal to 28 percent of the total amount determined by the Secretary

on an appropriate actuarial basis as being reasonable for the coverage.

‘‘(3) The premiums payable by a member under this subsection

may be deducted and withheld from basic pay payable to the

member under section 204 of title 37 or from compensation payable

to the member under section 206 of such title. The Secretary shall

prescribe the requirements and procedures applicable to the payment of premiums by members not entitled to such basic pay

or compensation.

‘‘(4) Amounts collected as premiums under this subsection shall

be credited to the appropriation available for the Defense Health

Program Account under section 1100 of this title, shall be merged

with sums in such Account that are available for the fiscal year

in which collected, and shall be available under subparagraph (B)

of such section for such fiscal year.

‘‘(f) OTHER CHARGES.—A person who receives health care pursuant to an enrollment in a TRICARE program option under this

section, including a member who receives such health care, shall

be subject to the same deductibles, copayments, and other nonpremium charges for health care as apply under this chapter for

health care provided under the same TRICARE program option

to dependents described in subparagraph (A), (D), or (I) of section

1072(2) of this title.

‘‘(g) TERMINATION OF ENROLLMENT.—(1) A member enrolled

in the TRICARE program under this section may terminate the

enrollment only during an open enrollment period provided under

subsection (c), except as provided in subsection (h).

‘‘(2) An enrollment of a member for self alone or for self and

family under this section shall terminate on the first day of the

first month beginning after the date on which the member ceases

to be eligible under subsection (a).

‘‘(3) The enrollment of a member under this section may be

terminated on the basis of failure to pay the premium charged

the member under this section.

‘‘(h) RELATIONSHIP TO TRANSITION TRICARE COVERAGE UPON

SEPARATION FROM ACTIVE DUTY.—(1) A member may not enroll

in the TRICARE program under this section while entitled to transitional health care under subsection (a) of section 1145 of this

title or while authorized to receive health care under subsection

(c) of such section.

‘‘(2) A member who enrolls in the TRICARE program under

this section within 90 days after the date of the termination of

the member’s entitlement or eligibility to receive health care under

subsection (a) or (c) of section 1145 of this title may terminate
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the enrollment at any time within one year after the date of

the enrollment.

‘‘(i) CERTIFICATION OF NONCOVERAGE BY OTHER HEALTH BENEFITS PLAN.—The Secretary of Defense may require a member to

submit any certification that the Secretary considers appropriate

to substantiate the member’s assertion that the member is not

covered for health care benefits under any other health benefits

plan.

‘‘(j) ELIGIBLE UNEMPLOYMENT COMPENSATION RECIPIENT

DEFINED.—In this section, the term ‘eligible unemployment compensation recipient’ means, with respect to any month, any individual who is determined eligible for any day of such month for

unemployment compensation under State law (as defined in section

205(9) of the Federal-State Extended Unemployment Compensation

Act of 1970), including Federal unemployment compensation laws

administered through the State.

‘‘(k) REGULATIONS.—The Secretary of Defense, in consultation

with the other administering Secretaries, shall prescribe regulations

for the administration of this section. ‘‘(l) TERMINATION OF AUTHORITY.—An enrollment in TRICARE

under this section may not continue after December 31, 2004.’’.

SEC. 703. EARLIER ELIGIBILITY DATE FOR TRICARE BENEFITS FOR

MEMBERS OF RESERVE COMPONENTS.

Subsection (d) of section 1074 of title 10, United States Code,

as added by section 1116 of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and

Afghanistan, 2004, is amended to read as follows:

‘‘(d)(1) For the purposes of this chapter, a member of a reserve

component of the armed forces who is issued a delayed-effectivedate active-duty order, or is covered by such an order, shall be

treated as being on active duty for a period of more than 30

days beginning on the later of the date that is—

‘‘(A) the date of the issuance of such order; or

‘‘(B) 90 days before the date on which the period of active

duty is to commence under such order for that member.

‘‘(2) In this subsection, the term ‘delayed-effective-date activeduty order’ means an order to active duty for a period of more

than 30 days in support of a contingency operation under a provision

of law referred to in section 101(a)(13)(B) of this title that provides

for active-duty service to begin under such order on a date after

the date of the issuance of the order.

‘‘(3) This subsection shall cease to be effective on December

31, 2004.’’.

SEC. 704. TEMPORARY EXTENSION OF TRANSITIONAL HEALTH CARE

BENEFITS.

(a) EXTENSION.—Subject to subsection (b), and notwithstanding

section 1117 of the Emergency Supplemental Appropriations Act

for Defense and for the Reconstruction of Iraq and Afghanistan,

2004, during the period beginning on the date of the enactment

of this Act and ending on December 31, 2004, section 1145(a)

of title 10, United States Code, shall be administered by substituting

for paragraph (3) the following:

‘‘(3) Transitional health care for a member under subsection

(a) shall be available for 180 days beginning on the date on

which the member is separated from active duty.’’.
H. R. 1588—137

(b) EFFECTIVE DATE.—(1) Subsection (a) shall apply with

respect to separations from active duty that take effect on or after

the date of the enactment of this Act.

(2) Beginning on January 1, 2005, the period for which a

member is provided transitional health care benefits under section

1145(a) of title 10, United States Code, shall be adjusted as necessary to comply with the limits provided under paragraph (3)

of such section.

SEC. 705. ASSESSMENT OF NEEDS OF RESERVES FOR HEALTH CARE

BENEFITS.

(a) GAO EVALUATION OF NEEDS OF RESERVE COMPONENTS FOR

HEALTH CARE BENEFITS.—The Comptroller General shall evaluate

the needs of members of the reserve components of the Armed

Forces and their families for obtaining and maintaining coverage

for health care benefits under health care benefits plans and programs.

(b) SPECIAL CONCERN.—In conducting the evaluation under this

section, the Comptroller General shall give special consideration

to the implications of the increased use of the reserve components

for carrying out and supporting operations of the Armed Forces

that has been experienced since the 1980s and is anticipated to

continue, particularly the increased frequency and magnitude of

the mobilization of Reserves and the increased length of the periods

of active duty of Reserves when mobilized.

(c) MATTERS COVERED.—The evaluation under this section shall

include the following matters:

(1) An examination of the extent to which Reserves and

the members of their families are covered by health care benefits plans when the Reserves are not on active duty, including—

(A) the sources of the coverage;

(B) the scope of the benefits; and

(C) the extent to which the Reserves and the members

of their families use the benefits available.

(2) An identification of options for providing health care

benefits to Reserves and the members of their families not

covered by health care benefits plans without creating an incentive for other Reserves to terminate coverage by such plans.

(3) A review of Department of Defense initiatives during

fiscal years 2003 and 2004 to address the problems of access

of mobilized Reserves and their families to health care and

health care benefits, including—

(A) a determination of the effectiveness of such initiatives; and

(B) a determination of the extent to which the problems

continue.

(4) An identification of options for continuing, after a

Reserve is mobilized, any coverage of the Reserve and the

Reserve’s family that exists under a health benefits plan before

the Reserve is mobilized.

(5) An assessment of the effects of— (A) the provisions of this title that authorize or require

the Department of Defense to provide assistance specifically

to Reserves to facilitate the access to and use of TRICARE

benefits by Reserves or members of their families; and

(B) the provisions of this title that provide eligibility

for health care under chapter 55 of title 10, United States
H. R. 1588—138

Code, for Reserves who are alerted by the Department

of Defense to prepare to be mobilized imminently.

(6) An examination of the existing programs under which

the Department of Defense provides health care benefits to

mobilized Reserves during a transitional period immediately

following the release of the Reserves from the active duty

for which mobilized, including an assessment of the extent

to which those programs meet the needs of such Reserves

for health care benefits on a transitional basis.

(d) REPORT.—Not later than May 1, 2004, the Comptroller

General shall submit to the Committees on Armed Services of

the Senate and the House of Representatives a report on the results

of the evaluation required by this subsection, including findings

and recommendations.

(e) DEFINITIONS.—In this section:

(1) The term ‘‘mobilized’’ means called or ordered to active

duty for a period of more than 30 days (as defined in section

101(d)(2) of title 10, United States Code).

(2) The term ‘‘Reserves’’ means members of the reserve

components of the Armed Forces.

SEC. 706. LIMITATION ON FISCAL YEAR 2004 OUTLAYS FOR TEMPORARY RESERVE HEALTH CARE PROGRAMS.

(a) OUTLAY LIMITATION.—In the administration of the temporary Reserve health care programs, the Secretary of Defense

shall carry out those program so as to limit the total Department

of Defense expenditures under those programs during fiscal year

2004 to an amount not in excess $400,000,000.

(b) CONTINUITY OF CARE.—In the administration of the temporary Reserve health care programs, the Secretary of Defense

shall carry out the implementation and termination of those programs so as to ensure the least amount of disruption to the continuity of care for persons provided care under those programs.

(c) TEMPORARY RESERVE HEALTH CARE PROGRAMS.—For purposes of this section, the term ‘‘temporary Reserve health care

programs’’ means the following:

(1) The program under section 1076b of title 10, United

States Code, as amended by section 702.

(2) The program under section 1074(d) of title 10, United

States Code, as amended by section 703.

(3) The program under section 704.

SEC. 707. TRICARE BENEFICIARY COUNSELING AND ASSISTANCE

COORDINATORS FOR RESERVE COMPONENT BENEFICIARIES.

Section 1095e(a)(1) of title 10, United States Code, is

amended—

(1) by striking ‘‘and’’ at the end of subparagraph (A);

(2) by redesignating subparagraph (B) as subparagraph

(C); and

(3) by inserting after subparagraph (A) the following new

subparagraph (B):

‘‘(B) designate for each of the TRICARE program

regions at least one person (other than a person designated

under subparagraph (A)) to serve full-time as a beneficiary

counseling and assistance coordinator solely for members

of the reserve components and their dependents who are

beneficiaries under the TRICARE program; and’’.
H. R. 1588—139

SEC. 708. ELIGIBILITY OF RESERVE OFFICERS FOR HEALTH CARE

PENDING ORDERS TO ACTIVE DUTY FOLLOWING

COMMISSIONING.

Section 1074(a) of title 10, United States Code, is amended— (1) by inserting ‘‘(1)’’ after ‘‘(a)’’;

(2) by striking ‘‘who is on active duty’’ and inserting ‘‘described in paragraph (2)’’; and

(3) by adding at the end the following new paragraph: ‘‘(2) Members of the uniformed services referred to in paragraph

(1) are as follows: ‘‘(A) A member of a uniformed service on active duty.

‘‘(B) A member of a reserve component of a uniformed

service who has been commissioned as an officer if— ‘‘(i) the member has requested orders to active duty

for the member’s initial period of active duty following

the commissioning of the member as an officer; ‘‘(ii) the request for orders has been approved;

‘‘(iii) the orders are to be issued but have not been

issued; and ‘‘(iv) the member does not have health care insurance

and is not covered by any other health benefits plan.’’.

Subtitle B—Other Benefits Improvements

SEC. 711. ACCELERATION OF IMPLEMENTATION OF CHIROPRACTIC

HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.

The Secretary of Defense shall accelerate the implementation

of the plan required by section 702 of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (Public Law 106–

398; 114 Stat. 1654A–173) (relating to chiropractic health care

services and benefits), with a goal of completing implementation

of the plan by October 1, 2005.

SEC. 712. REIMBURSEMENT OF COVERED BENEFICIARIES FOR CERTAIN TRAVEL EXPENSES RELATING TO SPECIALIZED

DENTAL CARE.

Section 1074i of title 10, United States Code, is amended— (1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘In any case’’;

and

(2) by adding at the end the following new subsection:

‘‘(b) DEFINITIONS.—In this section:

‘‘(1) The term ‘specialty care provider’ includes a dental

specialist.

‘‘(2) The term ‘dental specialist’ means an oral surgeon,

orthodontist, prosthodontist, periodontist, endodontist, or pediatric dentist, and includes such other providers of dental care

and services as determined appropriate by the Secretary of

Defense.’’.

SEC. 713. ELIGIBILITY FOR CONTINUED HEALTH BENEFITS COVERAGE

EXTENDED TO CERTAIN MEMBERS OF UNIFORMED SERVICES.

(a) EXTENSION.—Section 1078a(b) of title 10, United States

Code, is amended in paragraphs (1), (2)(A), and (3)(A) by striking

‘‘armed forces’’ and inserting ‘‘uniformed services’’ each place it

appears.
H. R. 1588—140

(b) EFFECTIVE DATE.—The amendments made by subsection

(a) shall apply to members of the uniformed services who are

not otherwise covered by section 1078a of title 10, United States

Code, before the date of the enactment of this Act and who, on

or after such date, first meet the eligibility criteria specified in

subsection (b) of that section.

SEC. 714. AUTHORITY FOR DESIGNATED PROVIDERS TO ENROLL COVERED BENEFICIARIES WITH OTHER PRIMARY HEALTH

INSURANCE COVERAGE.

Subsection (d) of section 724 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C.

1073 note) is amended to read as follows:

‘‘(d) ADDITIONAL ENROLLMENT AUTHORITY.—(1) Subject to paragraph (2), other covered beneficiaries may also receive health care

services from a designated provider.

‘‘(2)(A) The designated provider may market such services to,

and enroll, covered beneficiaries who—

‘‘(i) subject to the limitation in subparagraph (B), have

other primary health insurance coverage (other than Medicare

coverage) covering basic primary care and inpatient and outpatient services; or

‘‘(ii) are enrolled in the direct care system under the

TRICARE program, regardless of whether the covered beneficiaries were users of the health care delivery system of the

uniformed services in prior years.

‘‘(B) For each fiscal year beginning after September 30, 2003,

the number of covered beneficiaries who are newly enrolled by

a designated provider pursuant to subparagraph (A)(i) may not

exceed 10 percent of the excess (if any) of—

‘‘(i) the number of enrollees in managed care plans offered

by designated providers as of the first day of such fiscal year;

over

‘‘(ii) the number of such enrollees as of the first day of

the immediately preceding fiscal year.

‘‘(3) For purposes of this subsection, a covered beneficiary who

has other primary health insurance coverage includes any covered

beneficiary who has primary health insurance coverage—

‘‘(A) on the date of enrollment with a designated provider

pursuant to paragraph (2)(A)(i); or

‘‘(B) on such date of enrollment and during the period

after such date while the beneficiary is enrolled with the designated provider.’’.

Subtitle C—Planning, Programming, and

Management

SEC. 721. PERMANENT EXTENSION OF AUTHORITY TO ENTER INTO

PERSONAL SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE RESPONSIBILITIES AT LOCATIONS OTHER THAN MILITARY MEDICAL TREATMENT

FACILITIES.

Section 1091(a)(2) of title 10, United States Code, is amended

by striking ‘‘The Secretary may not enter into a contract under

this paragraph after December 31, 2003.’’.
H. R. 1588—141

SEC. 722. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE

HEALTH CARE FUND VALUATIONS AND CONTRIBUTIONS.

(a) SEPARATE PERIODIC ACTUARIAL VALUATION FOR SINGLE UNI- FORMED SERVICE.—Section 1115(c) of title 10, United States Code,

is amended by adding at the end of paragraph (1) the following:

‘‘The Secretary of Defense may determine a separate single level

dollar amount under subparagraph (A) or (B) for any participating

uniformed service, if, in the judgment of the Secretary, such a

determination would produce a more accurate and appropriate actuarial valuation for that uniformed service.’’. (b) ASSOCIATED CALCULATIONS OF PAYMENTS INTO THE FUND.—

Section 1116 of such title is amended—

(1) in subsection (a), by striking ‘‘the amount that’’ in

the matter preceding paragraph (1) and inserting ‘‘the amount

that, subject to subsection (b),’’;

(2) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively; and

(3) by inserting after subsection (a) the following new subsection (b):

‘‘(b) If an actuarial valuation referred to in paragraph (1) or

(2) of subsection (a) has been calculated as a separate single level

dollar amount for a participating uniformed service under section

1115(c)(1) of this title, the administering Secretary for the department in which such uniformed service is operating shall calculate

the amount under such paragraph separately for such uniformed

service. If the administering Secretary is not the Secretary of

Defense, the administering Secretary shall notify the Secretary

of Defense of the amount so calculated. To determine a single

amount for the purpose of paragraph (1) or (2) of subsection (a),

as the case may be, the Secretary of Defense shall aggregate the

amount calculated under this subsection for a uniformed service

for the purpose of such paragraph with the amount or amounts

calculated (whether separately or otherwise) for the other uniformed

services for the purpose of such paragraph.’’.

(c) CONFORMING AMENDMENT.—Subsections (a) and (c)(5) of

section 1115 of such title are amended by striking ‘‘section 1116(b)

of this title’’ and inserting ‘‘section 1116(c) of this title’’.

SEC. 723. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD.

(a) REQUIREMENT FOR SURVEYS.—(1) The Secretary of Defense

shall conduct surveys in the TRICARE market areas in the United

States to determine how many health care providers are accepting

new patients under TRICARE Standard in each such market area.

(2) The Secretary shall carry out the surveys in at least 20

TRICARE market areas in the United States each fiscal year after

fiscal year 2003 until all such market areas in the United States

have been surveyed. The Secretary shall complete six of the fiscal

year 2004 surveys not later than March 31, 2004.

(3) In prioritizing the market areas for the sequence in which

market areas are to be surveyed under this subsection, the Secretary shall consult with representatives of TRICARE beneficiaries

and health care providers to identify locations where TRICARE

Standard beneficiaries are experiencing significant levels of accessto-care problems under TRICARE Standard and shall give a high

priority to surveying health care providers in such areas.

(b) SUPERVISION.—(1) The Secretary shall designate a senior

official of the Department of Defense to take the actions necessary
H. R. 1588—142

for achieving and maintaining participation of health care providers

in TRICARE Standard in each TRICARE market area in a number

that is adequate to ensure the viability of TRICARE Standard

for TRICARE beneficiaries in that market area.

(2) The official designated under paragraph (1) shall have the

following duties:

(A) To educate health care providers about TRICARE

Standard.

(B) To encourage health care providers to accept patients

under TRICARE Standard.

(C) To ensure that TRICARE beneficiaries have the

information necessary to locate TRICARE Standard providers

readily.

(D) To recommend adjustments in TRICARE Standard provider payment rates that the official considers necessary to

ensure adequate availability of TRICARE Standard providers

for TRICARE Standard beneficiaries.

(c) GAO REVIEW.—(1) The Comptroller General shall, on an

ongoing basis, review—

(A) the processes, procedures, and analysis used by the

Department of Defense to determine the adequacy of the

number of health care providers—

(i) that currently accept TRICARE Standard beneficiaries as patients under TRICARE Standard in each

TRICARE market area (as of the date of completion of

the review); and

(ii) that would accept TRICARE Standard beneficiaries

as new patients under TRICARE Standard in each

TRICARE market area (within a reasonable time after

the date of completion of the review); and

(B) the actions taken by the Department of Defense to

ensure ready access of TRICARE Standard beneficiaries to

health care under TRICARE Standard in each TRICARE

market area.

(2)(A) The Comptroller General shall submit to the Committees

on Armed Services of the Senate and the House of Representatives

a semiannual report on the results of the review under paragraph

(1). The first semiannual report shall be submitted not later than

June 30, 2004.

(B) The semiannual report under subparagraph (A) shall

include the following:

(i) An analysis of the adequacy of the surveys under subsection (a).

(ii) The adequacy of existing statutory authority to address

inadequate levels of participation by health care providers in

TRICARE Standard.

(iii) Identification of policy-based obstacles to achieving

adequacy of availability of TRICARE Standard health care

in the TRICARE market areas.

(iv) An assessment of the adequacy of Department of

Defense education programs to inform health care providers

about TRICARE Standard.

(v) An assessment of the adequacy of Department of

Defense initiatives to encourage health care providers to accept

patients under TRICARE Standard.
H. R. 1588—143

(vi) An assessment of the adequacy of information available

to TRICARE Standard beneficiaries to facilitate access by such

beneficiaries to health care under TRICARE Standard.

(vii) Any need for adjustment of health care provider payment rates to attract participation in TRICARE Standard by

appropriate numbers of health care providers.

(d) DEFINITIONS.—In this section:

(1) The term ‘‘TRICARE Standard’’ means the option of

the TRICARE program that is also known as the Civilian

Health and Medical Program of the Uniformed Services, as

defined in section 1072(4) of title 10, United States Code.

(2) The term ‘‘United States’’ means the United States

(as defined in section 101(a) of title 10, United States Code),

its possessions (as defined in such section), and the Commonwealth of Puerto Rico.

SEC. 724. PLAN FOR PROVIDING HEALTH COVERAGE INFORMATION

TO MEMBERS, FORMER MEMBERS, AND DEPENDENTS

ELIGIBLE FOR CERTAIN HEALTH BENEFITS.

(a) HEALTH INFORMATION PLAN REQUIRED.—The Secretary of

Defense shall develop a plan to—

(1) ensure that each household that includes one or more

eligible persons is provided information concerning—

(A) the extent of health coverage provided by sections

1079 or 1086 of title 10, United States Code, for each

such person;

(B) the costs, including the limits on such costs, that

each such person is required to pay for such health coverage;

(C) sources of information for locating TRICAREauthorized providers in the household’s locality; and

(D) methods to obtain assistance in resolving difficulties encountered with billing, payments, eligibility, locating

TRICARE-authorized providers, collection actions, and such

other issues as the Secretary considers appropriate;

(2) provide mechanisms to ensure that each eligible person

has access to information identifying TRICARE-authorized providers in the person’s locality who have agreed to accept new

patients under section 1079 or 1086 of title 10, United States

Code, and to ensure that such information is periodically

updated;

(3) provide mechanisms to ensure that each eligible person

who requests assistance in locating a TRICARE-authorized provider is provided such assistance;

(4) provide information and recruitment materials and programs aimed at attracting participation of health care providers

as necessary to meet health care access requirements for all

eligible persons; and

(5) provide mechanisms to allow for the periodic identification by the Department of Defense of the number and locality

of eligible persons who may intend to rely on TRICARE-authorized providers for health care services.

(b) IMPLEMENTATION OF PLAN.—The Secretary of Defense shall

implement the plan required by subsection (a) with respect to

any contract entered into by the Department of Defense after May

31, 2003, for managed health care.

(c) DEFINITIONS.—In this section:
H. R. 1588—144

(1) The term ‘‘eligible person’’ means a person eligible for

health benefits under section 1079 or 1086 of title 10, United

States Code.

(2) The term ‘‘TRICARE-authorized provider’’ means a

facility, doctor, or other provider of health care services— (A) that meets the licensing and credentialing certification requirements in the State where the services are

rendered;

(B) that meets requirements under regulations relating

to TRICARE for the type of health care services rendered;

and

(C) that has accepted reimbursement by the Secretary

of Defense as payment for services rendered during the

12-month period preceding the date of the most recently

updated provider information provided to households under

the plan required by subsection (a).

(d) SUBMISSION OF PLAN.—Not later than March 31, 2004,

the Secretary shall submit to the Committees on Armed Services

of the Senate and House of Representatives the plan required

by subsection (a), together with a schedule for implementation

of the plan.

SEC. 725. TRANSFER OF CERTAIN MEMBERS OF THE PHARMACY AND

THERAPEUTICS COMMITTEE TO THE UNIFORM FORMULARY BENEFICIARY ADVISORY PANEL UNDER THE

PHARMACY BENEFITS PROGRAM.

Section 1074g of title 10, United States Code, is amended— (1) in subsection (b)(1) in the second sentence, by striking ‘‘facilities,’’ and all that follows through the end of the sentence

and inserting ‘‘facilities and representatives of providers in

facilities of the uniformed services.’’; and

(2) in subsection (c)(2)— (A) by striking ‘‘represent nongovernmental’’ and

inserting the following: ‘‘represent— ‘‘(A) nongovernmental’’;

(B) by striking the period at the end and inserting

a semicolon; and

(C) by adding at the end the following new subparagraphs:

‘‘(B) contractors responsible for the TRICARE retail pharmacy program; ‘‘(C) contractors responsible for the national mail-order

pharmacy program; and ‘‘(D) TRICARE network providers.’’.

SEC. 726. WORKING GROUP ON MILITARY HEALTH CARE FOR PERSONS

RELIANT ON HEALTH CARE FACILITIES AT MILITARY

INSTALLATIONS TO BE CLOSED OR REALIGNED.

(a) IN GENERAL.—Section 722 of the National Defense

Authorization Act for Fiscal Year 1993 (Public Law 102–484; 10

U.S.C. 1073 note) is amended by striking subsections (a), (b), (c),

and (d) and inserting the following new subsections:

‘‘(a) ESTABLISHMENT.—Not later than December 31, 2003, the

Secretary of Defense shall establish a working group on the provision of military health care to persons who rely for health care

on health care facilities located at military installations—

‘‘(1) inside the United States that are selected for closure

or realignment in the 2005 round of realignments and closures
H. R. 1588—145

authorized by sections 2912, 2913, and 2914 of the Defense

Base Closure and Realignment Act of 1990 (part A of title

XXIX of Public Law 101–510; 10 U.S.C. 2687 note), as added

by title XXX of the National Defense Authorization Act for

Fiscal Year 2002 (Public Law 107–107; 155 Stat. 1342); or

‘‘(2) outside the United States that are selected for closure

or realignment as a result of force posture changes.

‘‘(b) MEMBERSHIP.—The members of the working group shall

include, at a minimum, the following:

‘‘(1) The Assistant Secretary of Defense for Health Affairs,

or a designee of the Assistant Secretary.

‘‘(2) The Surgeon General of the Army, or a designee of

that Surgeon General.

‘‘(3) The Surgeon General of the Navy, or a designee of

that Surgeon General.

‘‘(4) The Surgeon General of the Air Force, or a designee

of that Surgeon General.

‘‘(5) At least one independent member (appointed by the

Secretary of Defense) from each TRICARE region, but not to

exceed a total of 12 members appointed under this paragraph,

whose experience in matters within the responsibility of the

working group qualify that person to represent persons authorized health care under chapter 55 of title 10, United States

Code.

‘‘(c) DUTIES.—(1) In developing the recommendations for the

2005 round of realignments and closures required by sections 2913

and 2914 of the Defense Base Closure and Realignment Act of

1990, the Secretary of Defense shall consult with the working

group.

‘‘(2) The working group shall be available to provide assistance

to the Defense Base Closure and Realignment Commission.

‘‘(3) In the case of each military installation referred to in

paragraph (1) or (2) of subsection (a) whose closure or realignment

will affect the accessibility to health care services for persons entitled to such services under chapter 55 of title 10, United States

Code, the working group shall provide to the Secretary of Defense

a plan for the provision of the health care services to such persons.

‘‘(d) SPECIAL CONSIDERATIONS.—In carrying out its duties under

subsection (c), the working group—

‘‘(1) shall conduct meetings with persons entitled to health

care services under chapter 55 of title 10, United States Code,

or representatives of such persons;

‘‘(2) may use reliable sampling techniques;

‘‘(3) may visit the areas where closures or realignments

of military installations will adversely affect the accessibility

of health care for such persons and may conduct public

meetings; and

‘‘(4) shall ensure that members of the uniformed services

on active duty, members and former members of the uniformed

services entitled to retired or retainer pay, and dependents

and survivors of such members and retired personnel are

afforded the opportunity to express their views.’’.

(b) TERMINATION.—Section 722 of such Act is further amended

by adding at the end the following new subsection:

‘‘(f) TERMINATION.—The working group established pursuant

to subsection (a) shall terminate on December 31, 2006.’’.
H. R. 1588—146

(c) CONFORMING AMENDMENT.—Subsection (e) of such section

is amended by striking ‘‘joint services’’.

SEC. 727. JOINT PROGRAM FOR DEVELOPMENT AND EVALUATION OF

INTEGRATED HEALING CARE PRACTICES FOR MEMBERS

OF THE ARMED FORCES AND VETERANS.

(a) PROGRAM.—The Secretary of Defense and the Secretary

of Veterans Affairs may conduct a program to develop and evaluate

integrated healing care practices for members of the Armed Forces

and veterans. Any such program shall be carried out through the

Department of Veterans Affairs-Department of Defense Joint Executive Committee established under section 320 of title 38, United

States Code.

(b) SOURCE OF DOD FUNDS.—Amounts authorized to be appropriated by this Act for the Defense Health Program may be used

for the program under subsection (a).

TITLE VIII—AQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A—Acquisition Policy and Management

Sec. 801. Consolidation of contract requirements.

Sec. 802. Quality control in procurement of aviation critical safety items and related

services.

Sec. 803. Federal support for enhancement of State and local anti-terrorism response capabilities.

Sec. 804. Special temporary contract closeout authority.

Sec. 805. Competitive award of contracts for reconstruction activities in Iraq.

Subtitle B—United States Defense Industrial Base Provisions

PART I—ESSENTIAL ITEMS IDENTIFICATION AND DOMESTIC PRODUCTION CAPABILITIES

IMPROVEMENT PROGRAM

Sec. 811. Consistency with United States obligations under international agreements.

Sec. 812. Assessment of United States defense industrial base capabilities.

Sec. 813. Identification of essential items: military system breakout list.

Sec. 814. Production capabilities improvement for certain essential items using defense industrial base capabilities fund.

PART II—REQUIREMENTS RELATING TO SPECIFIC ITEMS

Sec. 821. Elimination of unreliable sources of defense items and components.

Sec. 822. Incentive program for major defense acquisition programs to use machine

tools and other capital assets produced within the United States.

Sec. 823. Technical assistance relating to machine tools.

Sec. 824. Study of beryllium industrial base.

PART III—OTHER DOMESTIC SOURCE REQUIREMENTS

Sec. 826. Exceptions to Berry amendment for contingency operations and other urgent situations.

Sec. 827. Inapplicability of Berry amendment to procurements of waste and byproducts of cotton and wool fiber for use in the production of propellants and

explosives.

Sec. 828. Buy American exception for ball bearings and roller bearings used in foreign products.

Subtitle C—Defense Acquisition and Support Workforce Flexibility

Sec. 831. Management structure.

Sec. 832. Elimination of role of Office of Personnel Management.

Sec. 833. Single acquisition corps.

Sec. 834. Consolidation of certain education and training program requirements.

Sec. 835. General management provisions.
H. R. 1588—147

Sec. 836. Clerical amendments.

Subtitle D—Amendments to General Contracting Authorities, Procedures,

and Limitations

Sec. 841. Additional authority to enter into personal services contracts.

Sec. 842. Elimination of certain subcontract notification requirements.

Sec. 843. Multiyear task and delivery order contracts.

Sec. 844. Elimination of requirement to furnish written assurances of technical

data conformity.

Sec. 845. Access to information relevant to items deployed under rapid acquisition

and deployment procedures.

Sec. 846. Applicability of requirement for reports on maturity of technology at initiation of major defense acquisition programs.

Sec. 847. Certain weapons-related prototype projects.

Sec. 848. Limited acquisition authority for commander of United States Joint

Forces Command.

Subtitle E—Acquisition-Related Reports and Other Matters

Sec. 851. Report on contract payments to small businesses.

Sec. 852. Contracting with employers of persons with disabilities.

Sec. 853. Demonstration project for contractors employing persons with disabilities.

Subtitle A—Acquisition Policy and

Management

SEC. 801. CONSOLIDATION OF CONTRACT REQUIREMENTS.

(a) AMENDMENT TO TITLE 10.—(1) Chapter 141 of title 10,

United States Code, is amended by inserting after section 2381

the following new section:

‘‘§ 2382. Consolidation of contract requirements: policy and

restrictions

‘‘(a) POLICY.—The Secretary of Defense shall require the Secretary of each military department, the head of each Defense

Agency, and the head of each Department of Defense Field Activity

to ensure that the decisions made by that official regarding consolidation of contract requirements of the department, agency, or field

activity, as the case may be, are made with a view to providing

small business concerns with appropriate opportunities to participate in Department of Defense procurements as prime contractors

and appropriate opportunities to participate in such procurements

as subcontractors.

‘‘(b) LIMITATION ON USE OF ACQUISITION STRATEGIES INVOLVING

CONSOLIDATION.—(1) An official of a military department, Defense

Agency, or Department of Defense Field Activity may not execute

an acquisition strategy that includes a consolidation of contract

requirements of the military department, agency, or activity with

a total value in excess of $5,000,000, unless the senior procurement

executive concerned first— ‘‘(A) conducts market research;

‘‘(B) identifies any alternative contracting approaches that

would involve a lesser degree of consolidation of contract

requirements; and ‘‘(C) determines that the consolidation is necessary and

justified.

‘‘(2) A senior procurement executive may determine that an

acquisition strategy involving a consolidation of contract requirements is necessary and justified for the purposes of paragraph

(1) if the benefits of the acquisition strategy substantially exceed
H. R. 1588—148

the benefits of each of the possible alternative contracting

approaches identified under subparagraph (B) of that paragraph.

However, savings in administrative or personnel costs alone do

not constitute, for such purposes, a sufficient justification for a

consolidation of contract requirements in a procurement unless

the total amount of the cost savings is expected to be substantial

in relation to the total cost of the procurement.

‘‘(3) Benefits considered for the purposes of paragraphs (1)

and (2) may include cost and, regardless of whether quantifiable

in dollar amounts—

‘‘(A) quality;

‘‘(B) acquisition cycle;

‘‘(C) terms and conditions; and

‘‘(D) any other benefit.

‘‘(c) DEFINITIONS.—In this section:

‘‘(1) The terms ‘consolidation of contract requirements’ and

‘consolidation’, with respect to contract requirements of a military department, Defense Agency, or Department of Defense

Field Activity, mean a use of a solicitation to obtain offers

for a single contract or a multiple award contract to satisfy

two or more requirements of that department, agency, or

activity for goods or services that have previously been provided

to, or performed for, that department, agency, or activity under

two or more separate contracts smaller in cost than the total

cost of the contract for which the offers are solicited.

‘‘(2) The term ‘multiple award contract’ means—

‘‘(A) a contract that is entered into by the Administrator of General Services under the multiple award

schedule program referred to in section 2302(2)(C) of this

title;

‘‘(B) a multiple award task order contract or delivery

order contract that is entered into under the authority

of sections 2304a through 2304d of this title or sections

303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k);

and

‘‘(C) any other indeterminate delivery, indeterminate

quantity contract that is entered into by the head of a

Federal agency with two or more sources pursuant to the

same solicitation.

‘‘(3) The term ‘senior procurement executive concerned’

means—

‘‘(A) with respect to a military department, the official

designated under section 16(3) of the Office of Federal

Procurement Policy Act (41 U.S.C. 414(3)) as the senior

procurement executive for the military department; or

‘‘(B) with respect to a Defense Agency or a Department

of Defense Field Activity, the official so designated for

the Department of Defense.

‘‘(4) The term ‘small business concern’ means a business

concern that is determined by the Administrator of the Small

Business Administration to be a small-business concern by

application of the standards prescribed under section 3(a) of

the Small Business Act (15 U.S.C. 632(a)).’’.
H. R. 1588—149

(2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 2381

the following new item:

‘‘2382. Consolidation of contract requirements: policy and restrictions.’’.

(b) DATA REVIEW.—(1) The Secretary of Defense shall revise

the data collection systems of the Department of Defense to ensure

that such systems are capable of identifying each procurement

that involves a consolidation of contract requirements within the

department with a total value in excess of $5,000,000.

(2) The Secretary shall ensure that appropriate officials of

the Department of Defense periodically review the information collected pursuant to paragraph (1) in cooperation with the Small

Business Administration—

(A) to determine the extent of the consolidation of contract

requirements in the Department of Defense; and

(B) to assess the impact of the consolidation of contract

requirements on the availability of opportunities for small business concerns to participate in Department of Defense procurements, both as prime contractors and as subcontractors.

(3) In this subsection:

(A) The term ‘‘consolidation of contract requirements’’ has

the meaning given that term in section 2382(c)(1) of title 10,

United States Code, as added by subsection (a).

(B) The term ‘‘small business concern’’ means a business

concern that is determined by the Administrator of the Small

Business Administration to be a small-business concern by

application of the standards prescribed under section 3(a) of

the Small Business Act (15 U.S.C. 632(a)).

(c) APPLICABILITY.—This section applies with respect to procurements for which solicitations are issued after the date occurring

180 days after the date of the enactment of this Act.

SEC. 802. QUALITY CONTROL IN PROCUREMENT OF AVIATION CRITICAL SAFETY ITEMS AND RELATED SERVICES.

(a) QUALITY CONTROL POLICY.—The Secretary of Defense shall

prescribe in regulations a quality control policy for the procurement

of aviation critical safety items and the procurement of modifications, repair, and overhaul of such items.

(b) CONTENT OF REGULATIONS.—The policy set forth in the

regulations shall include the following requirements:

(1) That the head of the design control activity for aviation

critical safety items establish processes to identify and manage

the procurement, modification, repair, and overhaul of aviation

critical safety items.

(2) That the head of the contracting activity for an aviation

critical safety item enter into a contract for the procurement,

modification, repair, or overhaul of such item only with a source

approved by the design control activity in accordance with

section 2319 of title 10, United States Code.

(3) That the aviation critical safety items delivered, and

the services performed with respect to aviation critical safety

items, meet all technical and quality requirements specified

by the design control activity.

(c) DEFINITIONS.—In this section, the terms ‘‘aviation critical

safety item’’ and ‘‘design control activity’’ have the meanings given
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such terms in section 2319(g) of title 10, United States Code,

as amended by subsection (d).

(d) CONFORMING AMENDMENT TO TITLE 10.—Section 2319 of

title 10, United States Code, is amended—

(1) in subsection (c)(3), by inserting after ‘‘the contracting

officer’’ the following: ‘‘(or, in the case of a contract for the

procurement of an aviation critical safety item, the head of

the design control activity for such item)’’; and

(2) by adding at the end the following new subsection:

‘‘(g) DEFINITIONS.—In this section:

‘‘(1) The term ‘aviation critical safety item’ means a part,

an assembly, installation equipment, launch equipment,

recovery equipment, or support equipment for an aircraft or

aviation weapon system if the part, assembly, or equipment

contains a characteristic any failure, malfunction, or absence

of which could cause a catastrophic or critical failure resulting

in the loss of or serious damage to the aircraft or weapon

system, an unacceptable risk of personal injury or loss of life,

or an uncommanded engine shutdown that jeopardizes safety.

‘‘(2) The term ‘design control activity’, with respect to an

aviation critical safety item, means the systems command of

a military department that is specifically responsible for

ensuring the airworthiness of an aviation system or equipment

in which the item is to be used.’’.

SEC. 803. FEDERAL SUPPORT FOR ENHANCEMENT OF STATE AND

LOCAL ANTI-TERRORISM RESPONSE CAPABILITIES.

(a) PROCUREMENTS OF ANTI-TERRORISM TECHNOLOGIES AND

SERVICES BY STATE AND LOCAL GOVERNMENTS.—The Administrator

for Federal Procurement Policy shall establish a program under

which States and units of local government may procure through

contracts entered into by the Department of Defense or the Department of Homeland Security anti-terrorism technologies or antiterrorism services for the purpose of preventing, detecting, identifying, deterring, or recovering from acts of terrorism.

(b) AUTHORITIES.—Under the program, the Secretary of Defense

and the Secretary of Homeland Security may, but shall not be

required to, award contracts using the procedures established by

the Administrator of General Services for the multiple awards

schedule program of the General Services Administration.

(c) DEFINITION.—In this section, the term ‘‘State or local government’’ has the meaning provided in section 502(c)(3) of title 40,

United States Code.

SEC. 804. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

(a) AUTHORITY.—The Secretary of Defense may settle any financial account for a contract entered into by the Secretary or the

Secretary of a military department before October 1, 1996, that

is administratively complete if the financial account has an

unreconciled balance, either positive or negative, that is less than

$100,000.

(b) FINALITY OF DECISION.—A settlement under this section

shall be final and conclusive upon the accounting officers of the

United States.

(c) REGULATIONS.—The Secretary of Defense shall prescribe

regulations for the administration of the authority under this section.
H. R. 1588—151

(d) TERMINATION OF AUTHORITY.—A financial account may not

be settled under this section after September 30, 2006.

SEC. 805. COMPETITIVE AWARD OF CONTRACTS FOR RECONSTRUCTION ACTIVITIES IN IRAQ.

(a) COMPETITIVE AWARD OF CONTRACTS.—The Department of

Defense shall fully comply with chapter 137 of title 10, United

States Code, and other applicable procurement laws and regulations

for any contract awarded for reconstruction activities in Iraq, and

shall conduct a full and open competition for performing work

needed for the reconstruction of the Iraqi oil industry.

(b) REPORT.—If the Department of Defense does not have a

fully competitive contract in place to replace the March 8, 2003,

contract for the reconstruction of the Iraqi oil industry on the

date of the enactment of this Act, the Secretary of Defense shall

submit to Congress, not later than 30 days after such date of

enactment, a report detailing the reasons for allowing the March

8, 2003, contract to continue.

Subtitle B—United States Defense

Industrial Base Provisions

Part I—Essential Items Identification and Domestic Production Capabilities Improvement Program

SEC. 811. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER

INTERNATIONAL AGREEMENTS.

No provision of this subtitle or any amendment made by this

subtitle shall apply to the extent the Secretary of Defense, in

consultation with the Secretary of Commerce, the United States

Trade Representative, and the Secretary of State, determines that

it is inconsistent with United States obligations under an international agreement.

SEC. 812. ASSESSMENT OF UNITED STATES DEFENSE INDUSTRIAL

BASE CAPABILITIES.

(a) ASSESSMENT PROGRAM.—(1) The Secretary of Defense shall

establish a program to assess—

(A) the degree to which the United States is dependent

on foreign sources of supply; and

(B) the capabilities of the United States defense industrial

base to produce military systems necessary to support the

national security objectives set forth in section 2501 of title

10, United States Code.

(2) For purposes of the assessment program, the Secretary

shall use existing data, as required under subsection (b), and submit

an annual report, as required under subsection (c).

(b) USE OF EXISTING DATA.—(1) At a minimum, with respect

to each prime contract with a value greater than $25,000 for the

procurement of defense items and components, the following

information from existing sources shall be used for purposes of

the assessment program:

(A) Whether the contractor is a United States or foreign

contractor.
H. R. 1588—152

(B) The principal place of business of the contractor and

the principal place of performance of the contract.

(C) Whether the contract was awarded on a sole source

basis or after receipt of competitive offers.

(D) The dollar value of the contract.

(2) The Federal Procurement Data System described in section

6(d)(4)(A) of the Office of Federal Procurement Policy Act (41 U.S.C.

405(d)(4)(A)), or any successor system, shall collect from contracts

described in paragraph (1) the information specified in that paragraph.

(3) Information obtained in the implementation of this section

is subject to the same limitations on disclosure, and penalties

for violation of such limitations, as is provided under section 2507

of title 10, United States Code. Such information also shall be

exempt from release under section 552 of title 5, United States

Code.

(4) For purposes of meeting the requirements set forth in this

section, the Secretary of Defense may not require the provision

of information beyond the information that is currently provided

to the Department of Defense through existing data collection systems by non-Federal entities with respect to contracts and subcontracts with the Department of Defense or any military department.

(c) ANNUAL REPORT.—(1) Not later than February 1 of each

year, the Secretary of Defense shall submit to the Committees

on Armed Services of the Senate and the House of Representatives

a report on the assessment program covering the preceding fiscal

year. The first report under this subsection shall cover fiscal year

2004 and shall be submitted to the Committees no later than

February 1, 2005.

(2)(A) The report shall include the following with respect to

contracts described in subsection (b):

(i) The total number and value of such contracts awarded

by the Department of Defense.

(ii) The total number and value of such contracts awarded

on a sole source basis.

(iii) The total number and value of contracts described

in clause (ii) awarded to foreign contractors, summarized by

country.

(iv) The total number and value of contracts awarded to

foreign contractors through competitive procedures, summarized by country.

(B) The report also shall include—

(i) the status of the matters described in subparagraphs

(A) and (B) of subsection (a)(1);

(ii) the status of implementation of successor procurement

data management systems; and

(iii) such other matters as the Secretary considers appropriate.

SEC. 813. IDENTIFICATION OF ESSENTIAL ITEMS: MILITARY SYSTEM

BREAKOUT LIST.

(a) IDENTIFICATION PROCESS.—(1) The Secretary of Defense

shall establish a process, using the Defense Logistics Information

System existing database, to identify, with respect to each military

system—
H. R. 1588—153

(A) the essential items, assemblies, and components of

the system that are active items, assemblies, and components;

(B) foreign and domestic sources of supply for active items,

assemblies, and components of the system;

(C) the active items, assemblies, and components of the

system that are commercial; and

(D) Federal Supply Class and North American Industry

Classification System Codes for active items, assemblies, and

components of the system.

(2) Any modification to the logistics management system or

any successor system of the Department of Defense shall maintain

the capability to identify—

(A) essential items, assemblies, and components described

in paragraph (1)(A);

(B) foreign and domestic sources of supply for active items,

assemblies, and components;

(C) the active items, assemblies, and components of the

system that are commercial; and

(D) Federal Supply Class and North American Industry

Classification System Codes for active items, assemblies, and

components.

(3) For purposes of meeting the requirements set forth in this

section, the Secretary of Defense may not require the provision

of information beyond the information that is currently provided

to the Department of Defense through existing data collection systems by non-Federal entities with respect to contracts and subcontracts with the Department of Defense or any military department.

(b) MILITARY SYSTEM ESSENTIAL ITEM BREAKOUT LIST.—The

Secretary of Defense shall produce a list, to be known as the

‘‘military system essential item breakout list’’, consisting of the

items, assemblies, and components identified under subsection

(a)(1)(A). In producing the list, the Secretary of Defense shall consider the results of the report under subsection (c).

(c) ASSESSMENT.—Not later than 18 months after the date

of the enactment of this Act, the Secretary of Defense, acting

through a federally funded research and development center, shall

prepare a report that—

(1) assesses the criteria that should be used for identifying

whether an item, assembly, or component is essential to a

military system; and

(2) recommends which items, assemblies, and components

should be included on the military system essential item breakout list under subsection (b).

(d) REPORT.—(1) Not later than November 1 of each year,

beginning with November 1, 2005, the Secretary of Defense shall

submit to the Committees on Armed Services of the Senate and

the House of Representatives a report on the implementation of

this section. The report may be submitted in classified and unclassified form.

(2) The report shall include the following:

(A) A list of each military system covered by the process

established under subsection (a).

(B) A list of the items, assemblies, and components on

the military system essential item breakout list that are manufactured or produced outside the United States, setting forth

military and commercial separately.
H. R. 1588—154

(C) The portion of the entire military system essential

item breakout list that consists of the items, assemblies, and

components listed under subparagraph (B) (stated as a percentage).

(D) A list of each Federal Supply Class and North American

Industry Classification System Code represented on the military system essential item breakout list, and the portion of

the entire military system essential item breakout list that

consists of items, assemblies, or components in such classes

or codes (stated as a percentage).

(E) A list of each country outside the United States where

the items, assemblies, and components listed under subparagraph (B) are manufactured or produced, and the portion of

the entire military system essential item breakout list that

consists of—

(i) the items, assemblies, or components manufactured

or produced in that country, setting forth military and

commercial separately (stated as a percentage); and

(ii) the Federal Supply Classes and North American

Industry Classification System Codes represented by those

items, assemblies, or components (stated as a percentage).

(3) The Secretary shall submit an interim version of the report

required by this subsection not later than February 1, 2005, containing as much information as is practicable to be included by

such date.

SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN

ESSENTIAL ITEMS USING DEFENSE INDUSTRIAL BASE

CAPABILITIES FUND.

(a) ESTABLISHMENT OF FUND.—There is established in the

Treasury of the United States a separate fund to be known as

the Defense Industrial Base Capabilities Fund (hereafter in this

section referred to as the ‘‘Fund’’).

(b) MONEYS IN FUND.—There shall be credited to the Fund

amounts appropriated to it.

(c) USE OF FUND.—The Secretary of Defense is authorized

to use all amounts in the Fund, subject to appropriation, for the

purposes of enhancing or reconstituting United States industrial

capability to produce items on the military system essential item

breakout list (as described in section 812(b)) or items subject to

section 2534 of title 10, United States Code, in the quantity and

of the quality necessary to achieve national security objectives.

(d) LIMITATION ON USE OF FUND.—Before the obligation of

any amounts in the Fund, the Secretary of Defense shall submit

to Congress a report describing the Secretary’s plans for implementing the Fund established in subsection (a), including the priorities for the obligation of amounts in the Fund, the criteria for

determining the recipients of such amounts, and the mechanisms

through which such amounts may be provided to the recipients.

(e) AVAILABILITY OF FUNDS.—Amounts in the Fund shall remain

available until expended.

(f) FUND MANAGER.—The Secretary of Defense shall designate

a Fund manager. The duties of the Fund manager shall include— (1) ensuring the visibility and accountability of transactions

engaged in through the Fund; and

(2) reporting to Congress each year regarding activities

of the Fund during the previous fiscal year.
H. R. 1588—155

Part II—Requirements Relating to Specific Items

SEC. 821. ELIMINATION OF UNRELIABLE SOURCES OF DEFENSE ITEMS

AND COMPONENTS.

(a) IDENTIFICATION OF CERTAIN COUNTRIES.—The Secretary of

Defense, in coordination with the Secretary of State, shall identify

and list foreign countries that restrict the provision or sale of

military goods or services to the United States because of United

States counterterrorism or military operations after the date of

the enactment of this Act. The Secretary shall review and update

the list as appropriate. The Secretary may remove a country from

the list, if the Secretary determines that doing so would be in

the interest of national defense.

(b) PROHIBITION ON PROCUREMENT OF ITEMS FROM IDENTIFIED

COUNTRIES.—The Secretary of Defense may not procure any items

or components contained in military systems if the items or components, or the systems, are manufactured in any foreign country

identified under subsection (a).

(c) WAIVER AUTHORITY.—The Secretary of Defense may waive

the limitation in subsection (b) if the Secretary determines in

writing and notifies Congress that the Department of Defense’s

need for the item is of such an unusual and compelling urgency

that the Department would be unable to meet national security

objectives.

(d) EFFECTIVE DATE.—(1) Subject to paragraph (2), subsection

(b) applies to contracts in existence on the date of the enactment

of this Act or entered into after such date.

(2) With respect to contracts in existence on the date of the

enactment of this Act, the Secretary of Defense shall take such

action as is necessary to ensure that such contracts are in compliance with subsection (b) not later than 24 months after such date.

SEC. 822. INCENTIVE PROGRAM FOR MAJOR DEFENSE ACQUISITION

PROGRAMS TO USE MACHINE TOOLS AND OTHER CAPITAL ASSETS PRODUCED WITHIN THE UNITED STATES.

(a) IN GENERAL.—(1) Chapter 144 of title 10, United States

Code, is amended by inserting after section 2435 the following

new section:

‘‘§ 2436. Major defense acquisition programs: incentive program for contractors to purchase capital assets

manufactured in United States

‘‘(a) ESTABLISHMENT OF INCENTIVE PROGRAM.—The Secretary

of Defense shall plan and establish an incentive program in accordance with this section for contractors to purchase capital assets

manufactured in the United States in part with funds available

to the Department of Defense. ‘‘(b) DEFENSE INDUSTRIAL CAPABILITIES FUND MAY BE USED.— The Secretary of Defense may use the Defense Industrial Capabilities Fund, established under section 814 of the National Defense

Authorization Act for Fiscal Year 2004, for incentive payments

under the program established under this section. ‘‘(c) APPLICABILITY TO MAJOR DEFENSE ACQUISITION PROGRAM

CONTRACTS.—The incentive program shall apply to contracts for

the procurement of a major defense acquisition program.

‘‘(d) CONSIDERATION.—The Secretary of Defense shall provide

consideration in source selection in any request for proposals for
H. R. 1588—156

a major defense acquisition program for offerors with eligible capital

assets.’’.

(2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 2435

the following new item:

‘‘2436. Major defense acquisition programs: incentive program for contractors to purchase capital assets manufactured in United States.’’.

(b) REGULATIONS.—(1) The Secretary of Defense shall prescribe

regulations as necessary to carry out section 2436 of title 10, United

States Code, as added by this section.

(2) The Secretary may prescribe interim regulations as necessary to carry out such section. For this purpose, the Secretary

is excepted from compliance with the notice and comment requirements of section 553 of title 5, United States Code. All interim

rules prescribed under the authority of this paragraph that are

not earlier superseded by final rules shall expire no later than

270 days after the effective date of section 2436 of title 10, United

States Code, as added by this section.

(c) EFFECTIVE DATE.—Section 2436 of title 10, United States

Code, as added by subsection (a), shall apply with respect to contracts entered into after the expiration of the 18-month period

beginning on the date of the enactment of this Act.

SEC. 823. TECHNICAL ASSISTANCE RELATING TO MACHINE TOOLS.

(a) TECHNICAL ASSISTANCE.—The Secretary of Defense shall

publish in the Federal Register information on Government contracting for purposes of assisting machine tool companies in the

United States and entities that use machine tools. The information

shall contain, at a minimum, the following:

(1) An identification of resources with respect to Government contracting regulations, including compliance procedures

and information on the availability of counseling.

(2) An identification of resources for locating opportunities

for contracting with the Department of Defense, including

information about defense contracts that are expected to be

carried out that may require the use of machine tools.

(b) SCIENCE AND TECHNOLOGY INITIATIVES.—The Secretary of

Defense shall incorporate into the Department of Defense science

and technology initiatives on manufacturing technology an objective

of developing advanced machine tool capabilities. Such technologies

shall be used to improve the technological capabilities of the United

States domestic machine tool industrial base in meeting national

security objectives.

SEC. 824. STUDY OF BERYLLIUM INDUSTRIAL BASE.

(a) REQUIREMENT FOR STUDY.—The Secretary of Defense shall

conduct a study of the adequacy of the industrial base of the

United States to meet defense requirements of the United States

for beryllium.

(b) REPORT.—Not later than March 31, 2005, the Secretary

shall submit a report on the results of the study to Congress.

The report shall contain, at a minimum, the following information:

(1) A discussion of the issues identified with respect to

the long-term supply of beryllium.

(2) An assessment of the need, if any, for modernization

of the primary sources of production of beryllium.
H. R. 1588—157

(3) A discussion of the advisability of, and concepts for,

meeting the future defense requirements of the United States

for beryllium and maintaining a stable domestic industrial

base of sources of beryllium through—

(A) cooperative arrangements commonly referred to as

public-private partnerships;

(B) the administration of the National Defense Stockpile under the Strategic and Critical Materials Stock Piling

Act; and

(C) any other means that the Secretary identifies as

feasible.

Part III—Other Domestic Source Requirements

SEC. 826. EXCEPTIONS TO BERRY AMENDMENT FOR CONTINGENCY

OPERATIONS AND OTHER URGENT SITUATIONS.

Section 2533a(d) of title 10, United States Code, is amended—

(1) by striking ‘‘OUTSIDE THE UNITED STATES’’ in the subsection heading;

(2) in paragraph (1), by inserting ‘‘or procurements of any

item listed in subsection (b)(1)(A), (b)(2), or (b)(3) in support

of contingency operations’’ after ‘‘in support of combat operations’’; and

(3) by adding at the end the following new paragraph:

‘‘(4) Procurements of any item listed in subsection (b)(1)(A),

(b)(2), or (b)(3) for which the use of procedures other than

competitive procedures has been approved on the basis of section 2304(c)(2) of this title, relating to unusual and compelling

urgency of need.’’.

SEC. 827. INAPPLICABILITY OF BERRY AMENDMENT TO PROCUREMENTS OF WASTE AND BYPRODUCTS OF COTTON AND

WOOL FIBER FOR USE IN THE PRODUCTION OF PROPELLANTS AND EXPLOSIVES.

Section 2533a(f) of title 10, United States Code, is amended—

(1) by striking ‘‘(f) EXCEPTION’’ and all that follows through

‘‘the procurement of’’ and inserting the following:

‘‘(f) EXCEPTIONS FOR CERTAIN OTHER COMMODITIES AND

ITEMS.—Subsection (a) does not preclude the procurement of the

following:

‘‘(1)’’;

(2) by capitalizing the initial letter of the word following

‘‘(1)’’, as added by paragraph (1); and

(3) by adding at the end the following new paragraph:

‘‘(2) Waste and byproducts of cotton and wool fiber for

use in the production of propellants and explosives.’’.

SEC. 828. BUY AMERICAN EXCEPTION FOR BALL BEARINGS AND

ROLLER BEARINGS USED IN FOREIGN PRODUCTS.

Section 2534(a)(5) of title 10, United States Code, is amended

by inserting before the period at the end the following: ‘‘, except

ball bearings and roller bearings being procured for use in an

end product manufactured by a manufacturer that does not satisfy

the requirements of subsection (b) or in a component part manufactured by such a manufacturer’’.
H. R. 1588—158

Subtitle C—Defense Acquisition and

Support Workforce Flexibility

SEC. 831. MANAGEMENT STRUCTURE.

(a) REPEAL OF REQUIREMENTS FOR CERTAIN CAREER MANAGEMENT DIRECTORS, BOARDS, AND POLICIES.—Sections 1703, 1705,

1706, and 1707 of title 10, United States Code, are repealed.

(b) CONFORMING AMENDMENTS.—Chapter 87 of such title is

amended—

(1) in section 1724(d)—

(A) in the first sentence, by striking ‘‘The acquisition

career program board concerned’’ and all that follows

through ‘‘if the board certifies’’ and inserting ‘‘The Secretary

of Defense may waive any or all of the requirements of

subsections (a) and (b) with respect to an employee of

the Department of Defense or member of the armed forces

if the Secretary determines’’;

(B) in the second sentence, by striking ‘‘the board’’

and inserting ‘‘the Secretary’’; and

(C) by striking the third sentence;

(2) in section 1732(b)—

(A) in paragraph (1)(C), by striking ‘‘, as validated

by the appropriate career program management board’’;

and

(B) in paragraph (2)(A)(ii), by striking ‘‘has been certified by the acquisition career program board of the

employing military department as possessing’’ and

inserting ‘‘possess’’;

(3) in section 1732(d)—

(A) in paragraph (1)—

(i) in the first sentence, by striking ‘‘the acquisition

career program board of a military department’’ and

all that follows through ‘‘if the board certifies’’ and

inserting ‘‘the Secretary of Defense may waive any

or all of the requirements of subsection (b) with respect

to an employee if the Secretary determines’’;

(ii) in the second sentence, by striking ‘‘the board’’

and inserting ‘‘the Secretary’’; and

(iii) by striking the third sentence; and

(B) in paragraph (2), by striking ‘‘The acquisition career

program board of a military department’’ and inserting

‘‘The Secretary’’;

(4) in section 1734—

(A) in subsection (d)—

(i) by striking paragraph (2); and

(ii) by redesignating paragraph (3) as paragraph

(2), and in that paragraph by striking the second sentence; and

(B) in subsection (e)(2), by striking ‘‘, by the acquisition

career program board of the department concerned,’’; and

(5) in section 1737(c)—

(A) by striking paragraph (2); and

(B) by striking ‘‘(1) The Secretary’’ and inserting ‘‘The

Secretary’’.
H. R. 1588—159

SEC. 832. ELIMINATION OF ROLE OF OFFICE OF PERSONNEL MANAGEMENT.

(a) WORKFORCE QUALIFICATION REQUIREMENTS AND EXAMINATIONS.—Section 1725 of such title is repealed.

(b) ACQUISITION CORPS REQUIREMENTS.—Subchapter III of

chapter 87 of title 10, United States Code, is amended—

(1) in section 1731, by striking subsection (c);

(2) in section 1732(c)(2), by striking the second and third

sentences;

(3) in section 1734(g)—

(A) by striking paragraph (2); and

(B) in paragraph (1), by striking ‘‘(1) The Secretary’’

and inserting ‘‘The Secretary’’; and

(4) in section 1737, by striking subsection (d).

(c) APPOINTMENT OF SCHOLARSHIP RECIPIENT IN COMPETITIVE

SERVICE.—Section 1744(c)(3)(A)(i) of such title is amended by

striking ‘‘and such other requirements as the Office of Personnel

Management may prescribe’’.

SEC. 833. SINGLE ACQUISITION CORPS.

Subchapter III of chapter 87 of title 10, United States Code,

as amended by section 832, is further amended—

(1) in section 1731—

(A) in subsection (a)—

(i) by striking ‘‘each of the military departments

and one or more Corps, as he considers appropriate,

for the other components of’’ in the first sentence;

and

(ii) by striking the second sentence; and

(B) in subsection (b), by striking ‘‘an Acquisition Corps’’

and inserting ‘‘the Acquisition Corps’’;

(2) in sections 1732(a), 1732(e)(1), 1732(e)(2), 1733(a),

1734(e)(1), and 1737(a)(1), by striking ‘‘an Acquisition Corps’’

and inserting ‘‘the Acquisition Corps’’; and

(3) in section 1734—

(A) in subsection (g), by striking ‘‘each Acquisition

Corps, a test program in which members of a Corps’’ and

inserting ‘‘the Acquisition Corps, a test program in which

members of the Corps’’; and

(B) in subsection (h), by striking ‘‘making assignments

of civilian and military members of the Acquisition Corps

of that military department’’ and inserting ‘‘making assignments of civilian and military personnel of that military

department who are members of the Acquisition Corps’’.

SEC. 834. CONSOLIDATION OF CERTAIN EDUCATION AND TRAINING

PROGRAM REQUIREMENTS.

(a) CONSOLIDATION OF AUTHORITY.—Section 1742 of such title

is amended to read as follows:

‘‘§ 1742. Internship, cooperative education, and scholarship

programs

‘‘The Secretary of Defense shall conduct the following education

and training programs:
H. R. 1588—160

‘‘(1) An intern program for purposes of providing highly

qualified and talented individuals an opportunity for accelerated promotions, career broadening assignments, and specified

training to prepare them for entry into the Acquisition Corps.

‘‘(2) A cooperative education credit program under which

the Secretary arranges, through cooperative arrangements

entered into with one or more accredited institutions of higher

education, for such institutions to grant undergraduate credit

for work performed by students who are employed by the

Department of Defense in acquisition positions.

‘‘(3) A scholarship program for the purpose of qualifying

personnel for acquisition positions in the Department of

Defense.’’.

(b) CONFORMING AMENDMENTS.—Sections 1743 and 1744 of

such title are repealed.

SEC. 835. GENERAL MANAGEMENT PROVISIONS.

Subchapter V of chapter 87 of title 10, United States Code,

is amended—

(1) by striking section 1763; and

(2) by adding at the end the following new section 1764:

‘‘§ 1764. Authority to establish different minimum requirements

‘‘(a) AUTHORITY.—(1) The Secretary of Defense may prescribe

a different minimum number of years of experience, different minimum education qualifications, and different tenure of service qualifications to be required for eligibility for appointment or advancement to an acquisition position referred to in subsection (b) than

is required for such position under or pursuant to any provision

of this chapter.

‘‘(2) Any requirement prescribed under paragraph (1) for a

position referred to in any paragraph of subsection (b) shall be

applied uniformly to all positions referred to in such paragraph.

‘‘(b) APPLICABILITY.—This section applies to the following

acquisition positions in the Department of Defense:

‘‘(1) Contracting officer, except a position referred to in

paragraph (5).

‘‘(2) Program executive officer.

‘‘(3) Senior contracting official.

‘‘(4) Program manager.

‘‘(5) A position in the contract contingency force of an

armed force that is filled by a member of that armed force.

‘‘(c) DEFINITION.—In this section, the term ‘contract contingency

force’, with respect to an armed force, has the meaning given

such term in regulations prescribed by the Secretary concerned.’’.

SEC. 836. CLERICAL AMENDMENTS.

The tables of sections for chapter 87 of title 10, United States

Code, are amended as follows:

(1) The table of sections at the beginning of subchapter

I is amended by striking the items relating to sections 1703,

1705, 1706, and 1707.

(2) The table of sections at the beginning of subchapter

II is amended by striking the item relating to section 1725.
H. R. 1588—161

(3) The table of sections at the beginning of subchapter

IV is amended by striking the items relating to sections 1742,

1743, and 1744 and inserting the following:

‘‘1742. Internship, cooperative education, and scholarship programs.’’.

(4) The table of sections at the beginning of subchapter

V is amended by striking the item relating to section 1763

and inserting the following:

‘‘1764. Authority to establish different minimum requirements.’’.

Subtitle D—Amendments to General Contracting Authorities, Procedures, and

Limitations

SEC. 841. ADDITIONAL AUTHORITY TO ENTER INTO PERSONAL SERVICES CONTRACTS.

(a) ADDITIONAL AUTHORITY.—Section 129b of title 10, United

States Code, is amended by adding at the end the following new

subsection:

‘‘(d) ADDITIONAL AUTHORITY FOR PERSONAL SERVICES CONTRACTS.—(1) In addition to the authority provided under subsection

(a), the Secretary of Defense may enter into personal services contracts if the personal services—

‘‘(A) are to be provided by individuals outside the United

States, regardless of their nationality, and are determined by

the Secretary to be necessary and appropriate for supporting

the activities and programs of the Department of Defense outside the United States;

‘‘(B) directly support the mission of a defense intelligence

component or counter-intelligence organization of the Department of Defense; or

‘‘(C) directly support the mission of the special operations

command of the Department of Defense.

‘‘(2) The contracting officer for a personal services contract

under this subsection shall be responsible for ensuring that—

‘‘(A) the services to be procured are urgent or unique;

and

‘‘(B) it would not be practicable for the Department to

obtain such services by other means.

‘‘(3) The requirements of section 3109 of title 5 shall not apply

to a contract entered into under this subsection.’’.

(b) CONFORMING AMENDMENTS.—(1) The heading for section

129b of such title is amended to read as follows:

‘‘§ 129b. Authority to procure personal services’’.

(2) The item relating to section 129b in the table of sections

at the beginning of chapter 3 of such title is amended to read

as follows:

‘‘129b. Authority to procure personal services.’’.

SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION

REQUIREMENTS.

Subsection (e) of section 2306 of title 10, United States Code,

is amended—
H. R. 1588—162

(1) by striking ‘‘(A)’’ and ‘‘(B)’’ and inserting ‘‘(i)’’ and ‘‘(ii)’’,

respectively;

(2) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;

(3) by striking ‘‘Each’’ and inserting ‘‘(1) Except as provided

in paragraph (2), each’’; and

(4) by adding at the end the following new paragraph:

‘‘(2) Paragraph (1) shall not apply to a prime contract with

a contractor that maintains a purchasing system approved by the

contracting officer for the contract.’’.

SEC. 843. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

(a) REPEAL OF APPLICABILITY OF EXISTING AUTHORITY AND

LIMITATIONS.—Section 2306c of title 10, United States Code, is

amended by striking subsection (g).

(b) CONTRACT PERIOD.—Section 2304a of such title is

amended—

(1) by redesignating subsections (f) and (g) as subsections

(g) and (h), respectively; and

(2) by inserting after subsection (e) the following new subsection (f):

‘‘(f) CONTRACT PERIOD.—The head of an agency entering into

a task or delivery order contract under this section may provide

for the contract to cover a total period of not more than five

years.’’.

SEC. 844. ELIMINATION OF REQUIREMENT TO FURNISH WRITTEN

ASSURANCES OF TECHNICAL DATA CONFORMITY.

Section 2320(b) of title 10, United States Code, is amended—

(1) by striking paragraph (7); and

(2) by redesignating paragraphs (8) and (9) as paragraphs

(7) and (8), respectively.

SEC. 845. ACCESS TO INFORMATION RELEVANT TO ITEMS DEPLOYED

UNDER RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

Section 806(c) of the Bob Stump National Defense Authorization

Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2607;

10 U.S.C. 2302 note) is amended by adding at the end the following

new paragraph:

‘‘(3) If items are deployed under the rapid acquisition and

deployment procedures prescribed pursuant to this section, or under

any other authority, before the completion of operational test and

evaluation of the items, the Director of Operational Test and

Evaluation shall have access to operational records and data relevant to such items in accordance with section 139(e)(3) of title

10, United States Code, for the purpose of completing operational

test and evaluation of the items. The access to the operational

records and data shall be provided in a time and manner determined

by the Secretary of Defense consistent with requirements of operational security and other relevant operational requirements.’’.

SEC. 846. APPLICABILITY OF REQUIREMENT FOR REPORTS ON MATURITY OF TECHNOLOGY AT INITIATION OF MAJOR

DEFENSE ACQUISITION PROGRAMS.

Section 804(a) of the National Defense Authorization Act for

Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1180) is amended

by striking ‘‘, as in effect on the date of enactment of this Act,’’
H. R. 1588—163

and inserting ‘‘(as in effect on the date of the enactment of this

Act), and the corresponding provision of any successor to such

Instruction,’’.

SEC. 847. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.

(a) EXTENSION OF AUTHORITY.—Subsection (g) of section 845

of the National Defense Authorization Act for Fiscal Year 1994

(10 U.S.C. 2371 note) is amended by striking ‘‘September 30, 2004’’

and inserting ‘‘September 30, 2008’’.

(b) INCREASED SCOPE OF AUTHORITY.—Subsection (a) of such

section is amended by inserting before the period at the end the

following: ‘‘, or to improvement of weapons or weapon systems

in use by the Armed Forces’’.

(c) PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON CONTRACTS.—Such section, as amended by subsection (a), is further

amended—

(1) by redesignating subsections (e), (f), and (g) as subsections (f), (g), and (h), respectively; and

(2) by inserting after subsection (d) the following new subsection (e):

‘‘(e) PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON CONTRACTS.—(1) The Secretary of Defense is authorized to carry out

a pilot program for follow-on contracting for the production of

items or processes under prototype projects carried out under this

section.

‘‘(2) Under the pilot program—

‘‘(A) a qualifying contract for the procurement of such an

item or process, or a qualifying subcontract under a contract

for the procurement of such an item or process, may be treated

as a contract or subcontract, respectively, for the procurement

of commercial items, as defined in section 4(12) of the Office

of Federal Procurement Policy Act (41 U.S.C. 403(12)); and

‘‘(B) the item or process may be treated as an item or

process, respectively, that is developed in part with Federal

funds and in part at private expense for the purposes of section

2320 of title 10, United States Code.

‘‘(3) For the purposes of the pilot program, a qualifying contract

or subcontract is a contract or subcontract, respectively, with a

nontraditional defense contractor that—

‘‘(A) does not exceed $50,000,000; and

‘‘(B) is either—

‘‘(i) a firm, fixed-price contract or subcontract; or

‘‘(ii) a fixed-price contract or subcontract with economic

price adjustment.

‘‘(4) The authority to conduct a pilot program under this subsection shall terminate on September 30, 2008. The termination

of the authority shall not affect the validity of contracts or subcontracts that are awarded or modified during the period of the

pilot program, without regard to whether the contracts or subcontracts are performed during the period.’’.

SEC. 848. LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF

UNITED STATES JOINT FORCES COMMAND.

(a) THREE-YEAR AUTHORITY TO DELEGATE ACQUISITION

AUTHORITY.—(1) Chapter 6 of title 10, United States Code, is

amended by inserting after section 167 the following new section:
H. R. 1588—164

‘‘§ 167a. Unified combatant command for joint warfighting

experimentation: acquisition authority

‘‘(a) LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF CERTAIN UNIFIED COMBATANT COMMAND.—The Secretary of Defense

may delegate to the commander of the unified combatant command

referred to in subsection (b) authority of the Secretary under chapter

137 of this title sufficient to enable the commander to develop

and acquire equipment described in subsection (c). The exercise

of authority so delegated is subject to the authority, direction,

and control of the Secretary.

‘‘(b) COMMAND DESCRIBED.—The commander to whom authority

is delegated under subsection (a) is the commander of the unified

combatant command that has the mission for joint warfighting

experimentation, as assigned by the Secretary of Defense.

‘‘(c) EQUIPMENT.—The equipment referred to in subsection (a)

is as follows:

‘‘(1) Equipment for battle management command, control,

communications, and intelligence.

‘‘(2) Any other equipment that the commander referred

to in subsection (b) determines necessary and appropriate for—

‘‘(A) facilitating the use of joint forces in military operations; or

‘‘(B) enhancing the interoperability of equipment used

by the various components of joint forces.

‘‘(d) EXCEPTIONS.—The authority delegated under subsection

(a) does not apply to the development or acquisition of a system

for which—

‘‘(1) the total expenditure for research, development, test,

and evaluation is estimated to be $10,000,000 or more; or

‘‘(2) the total expenditure for procurement is estimated

to be $50,000,000 or more.

‘‘(e) INTERNAL AUDITS AND INSPECTIONS.—The commander

referred to in subsection (b) shall require the inspector general

of that command to conduct internal audits and inspections of

purchasing and contracting administered by the commander under

the authority delegated under subsection (a).

‘‘(f) TERMINATION.—The Secretary may delegate the authority

referred to in subsection (a) only during fiscal years 2004 through

2006, and any authority so delegated shall not be in effect after

September 30, 2006.’’.

(2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 167

the following new item:

‘‘167a. Unified combatant command for joint warfighting experimentation: acquisition authority.’’.

(b) COMPTROLLER GENERAL REPORT.—The Comptroller General

shall review the implementation of section 167a of title 10, United

States Code, as added by subsection (a), and submit to Congress

a report on such review not later than two years after the date

of the enactment of this Act. The review shall cover the extent

to which the authority provided under such section 167a has been

used.
H. R. 1588—165

Subtitle E—Acquisition-Related Reports

and Other Matters

SEC. 851. REPORT ON CONTRACT PAYMENTS TO SMALL BUSINESSES.

(a) REPORT.—The Comptroller General shall prepare and

submit to the congressional defense committees a report on the

timeliness of contract payments made to small businesses during

fiscal years 2001 and 2002 by the Department of Defense. The

report shall include an estimate of the following:

(1) The total amount of contract payments made by the

Department to small businesses.

(2) The percentage of total contract payments to small

businesses that were not made in a timely manner.

(3) The reasons that contract payments to small businesses

were not made in a timely manner.

(4) The amount of interest owed and paid by the Department to small businesses due to contract payments not made

in a timely manner.

(5) Such recommendations as the Comptroller General considers appropriate to improve the process for making contract

payments to small businesses in a timely manner.

(b) DEFINITIONS.—For purposes of subsection (a)—

(1) a payment is considered not made in a timely manner

if it caused interest to accrue under chapter 39 of title 31,

United States Code (relating to prompt payment); and

(2) the term ‘‘small business’’ means an entity that qualifies

as a small business concern under the Small Business Act.

SEC. 852. CONTRACTING WITH EMPLOYERS OF PERSONS WITH

DISABILITIES.

(a) INAPPLICABILITY OF RANDOLPH-SHEPPARD ACT.—The Randolph-Sheppard Act does not apply to any contract described in

subsection (b) for so long as the contract is in effect, including

for any period for which the contract is extended pursuant to

an option provided in the contract.

(b) JAVITS-WAGNER-O’DAY CONTRACTS.—Subsection (a) applies

to any contract for the operation of a military mess hall, military

troop dining facility, or any similar dining facility operated for

the purpose of providing meals to members of the Armed Forces

that—

(1) was entered into before the date of the enactment

of this Act with a nonprofit agency for the blind or an agency

for other severely handicapped in compliance with section 3

of the Javits-Wagner-O’Day Act (41 U.S.C. 48); and

(2) is in effect on such date.

(c) ENACTMENT OF POPULAR NAME AS SHORT TITLE.—The Act

entitled ‘‘An Act to authorize the operation of stands in Federal

buildings by blind persons, to enlarge the economic opportunities

of the blind, and for other purposes’’, approved June 20, 1936

(commonly known as the ‘‘Randolph-Sheppard Act’’) (20 U.S.C. 107

et seq.), is amended by adding at the end the following new section:

‘‘SEC. 11. This Act may be cited as the ‘Randolph-Sheppard

Act’.’’.
H. R. 1588—166

SEC. 853. DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING

PERSONS WITH DISABILITIES.

(a) AUTHORITY.—The Secretary of Defense may carry out a

demonstration project by entering into one or more contracts with

an eligible contractor for the purpose of providing defense contracting opportunities for severely disabled individuals.

(b) EVALUATION FACTOR.—In evaluating an offer for a contract

under the demonstration program, the percentage of the total

workforce of the offeror consisting of severely disabled individuals

employed by the offeror shall be one of the evaluation factors.

(c) DEFINITIONS.—In this section:

(1) ELIGIBLE CONTRACTOR.—The term ‘‘eligible contractor’’

means a business entity operated on a for-profit or nonprofit

basis that—

(A) employs severely disabled individuals at a rate

that averages not less than 33 percent of its total workforce

over a period prescribed by the Secretary;

(B) pays not less than the minimum wage prescribed

pursuant to section 6 of the Fair Labor Standards Act

of 1938 (29 U.S.C. 206) to the employees who are severely

disabled individuals; and

(C) provides for its employees health insurance and

a retirement plan comparable to those provided for

employees by business entities of similar size in its industrial sector or geographic region.

(2) SEVERELY DISABLED INDIVIDUAL.—The term ‘‘severely

disabled individual’’ means an individual with a disability (as

defined in section 3 of the Americans with Disabilities Act

of 1990 (42 U.S.C. 12102)) who has a severe physical or mental

impairment that seriously limits one or more functional capacities.

TITLE IX—DEPARTMENT OF DEFENSE

ORGANIZATION AND MANAGEMENT

Subtitle A—Duties and Functions of Department of Defense Officers and

Organizations

Sec. 901. Clarification of responsibility of military departments to support combatant commands.

Sec. 902. Combatant Commander Initiative Fund.

Sec. 903. Biennial review of national military strategy by Chairman of the Joint

Chiefs of Staff.

Sec. 904. Report on changing roles of United States Special Operations Command.

Sec. 905. Sense of Congress regarding continuation of mission and functions of

Army Peacekeeping Institute.

Sec. 906. Transfer to Office of Personnel Management of personnel investigative

functions and related personnel of the Department of Defense.

Sec. 907. Defense acquisition workforce freeze for fiscal year 2004.

Subtitle B—Space Activities

Sec. 911. Coordination of space science and technology activities of the Department

of Defense.

Sec. 912. Policy regarding assured access to space for United States national security payloads.

Sec. 913. Pilot program for provision of space surveillance network services to nonUnited States Government entities.

Sec. 914. Content of biennial global positioning system report.

Sec. 915. Report on processes-related space systems.
H. R. 1588—167

Subtitle C—Department of Defense Intelligence Components

Sec. 921. Redesignation of National Imagery and Mapping Agency as National

Geospatial-Intelligence Agency.

Sec. 922. Protection of operational files of the National Security Agency.

Sec. 923. Integration of defense intelligence, surveillance, and reconnaissance capabilities.

Sec. 924. Management of National Security Agency Modernization Program.

Sec. 925. Modification of obligated service requirements under National Security

Education Program.

Sec. 926. Authority to provide living quarters for certain students in cooperative

and summer education programs of the National Security Agency.

Sec. 927. Commercial imagery industrial base.

Subtitle D—Other Matters

Sec. 931. Authority for Asia-Pacific Center for Security Studies to accept gifts and

donations.

Sec. 932. Repeal of rotating chairmanship of Economic Adjustment Committee.

Sec. 933. Extension of certain authorities applicable to the Pentagon Reservation to

include a designated Pentagon continuity-of-Government location.

Subtitle A—Duties and Functions of Department of Defense

Officers and Organizations

SEC. 901. CLARIFICATION OF RESPONSIBILITY OF MILITARY DEPARTMENTS TO SUPPORT COMBATANT COMMANDS.

Sections 3013(c)(4), 5013(c)(4), and 8013(c)(4) of title 10, United

States Code, are amended by striking ‘‘(to the maximum extent

practicable)’’.

SEC. 902. COMBATANT COMMANDER INITIATIVE FUND.

(a) REDESIGNATION OF CINC INITIATIVE FUND.—(1) The CINC

Initiative Fund administered under section 166a of title 10, United

States Code, is redesignated as the ‘‘Combatant Commander Initiative Fund’’.

(2) Section 166a of title 10, United States Code, is amended—

(A) by striking the heading for subsection (a) and inserting

‘‘COMBATANT COMMANDER INITIATIVE FUND.—‘‘; and

(B) by striking ‘‘CINC Initiative Fund’’ in subsections (a),

(c), and (d), and inserting ‘‘Combatant Commander Initiative

Fund’’.

(3) Any reference to the CINC Initiative Fund in any other

provision of law or in any regulation, document, record, or other

paper of the United States shall be considered to be a reference

to the Combatant Commander Initiative Fund.

(b) AUTHORIZED ACTIVITIES.—Subsection (b) of section 166a of

title 10, United States Code, is amended by adding at the end

the following new paragraph:

‘‘(10) Joint warfighting capabilities.’’.

(c) INCREASED MAXIMUM AMOUNTS AUTHORIZED FOR USE.—

Subsection (e)(1) of such section is amended—

(1) in subparagraph (A), by striking ‘‘$7,000,000’’ and

inserting ‘‘$10,000,000’’;

(2) in subparagraph (B), by striking ‘‘$1,000,000’’ and

inserting ‘‘$10,000,000’’; and

(3) in subparagraph (C), by striking ‘‘$2,000,000’’ and

inserting ‘‘$5,000,000’’.

SEC. 903. BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY BY

CHAIRMAN OF THE JOINT CHIEFS OF STAFF.

(a) BIENNIAL REVIEW.—Section 153 of title 10, United States

Code, by adding at the end the following new subsection:
H. R. 1588—168

‘‘(d) BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY.—(1)

Not later then February 15 of each even-numbered year, the Chairman shall submit to the Committee on Armed Services of the

Senate and the Committee on Armed Services of the House of

Representatives a report containing the results of a comprehensive

examination of the national military strategy. Each such examination shall be conducted by the Chairman in conjunction with the

other members of the Joint Chiefs of Staff and the commanders

of the unified and specified commands.

‘‘(2) Each report on the examination of the national military

strategy under paragraph (1) shall include the following:

‘‘(A) Delineation of a national military strategy consistent

with—

‘‘(i) the most recent National Security Strategy prescribed by the President pursuant to section 108 of the

National Security Act of 1947 (50 U.S.C. 404a);

‘‘(ii) the most recent annual report of the Secretary

of Defense submitted to the President and Congress pursuant to section 113 of this title; and

‘‘(iii) the most recent Quadrennial Defense Review conducted by the Secretary of Defense pursuant to section

118 of this title.

‘‘(B) A description of the strategic environment and the

opportunities and challenges that affect United States national

interests and United States national security.

‘‘(C) A description of the regional threats to United States

national interests and United States national security.

‘‘(D) A description of the international threats posed by

terrorism, weapons of mass destruction, and asymmetric challenges to United States national security.

‘‘(E) Identification of United States national military objectives and the relationship of those objectives to the strategic

environment, regional, and international threats.

‘‘(F) Identification of the strategy, underlying concepts, and

component elements that contribute to the achievement of

United States national military objectives.

‘‘(G) Assessment of the capabilities and adequacy of United

States forces (including both active and reserve components)

to successfully execute the national military strategy.

‘‘(H) Assessment of the capabilities, adequacy, and interoperability of regional allies of the United States and or other

friendly nations to support United States forces in combat

operations and other operations for extended periods of time.

‘‘(3)(A) As part of the assessment under this subsection, the

Chairman, in conjunction with the other members of the Joint

Chiefs of Staff and the commanders of the unified and specified

commands, shall undertake an assessment of the nature and magnitude of the strategic and military risks associated with successfully executing the missions called for under the current National

Military Strategy.

‘‘(B) In preparing the assessment of risk, the Chairman should

make assumptions pertaining to the readiness of United States

forces (in both the active and reserve components), the length

of conflict and the level of intensity of combat operations, and

the levels of support from allies and other friendly nations.
H. R. 1588—169

‘‘(4) Before submitting a report under this subsection to the

Committees on Armed Services of the Senate and House of Representatives, the Chairman shall provide the report to the Secretary

of Defense. The Secretary’s assessment and comments thereon (if

any) shall be included with the report. If the Chairman’s assessment

in such report in any year is that the risk associated with executing

the missions called for under the National Military Strategy is

significant, the Secretary shall include with the report as submitted

to those committees the Secretary’s plan for mitigating the risk.’’.

(b) CONFORMING AMENDMENT.—Subsection (b)(1) of such section

is amended by striking ‘‘each year’’ and inserting ‘‘of each oddnumbered year’’.

SEC. 904. REPORT ON CHANGING ROLES OF UNITED STATES SPECIAL

OPERATIONS COMMAND.

(a) REPORT REQUIRED.—Not later than 180 days after the date

of the enactment of this Act, the Secretary of Defense shall submit

to the Committees on Armed Services of the Senate and the House

of Representatives a report on the changing roles of the United

States Special Operations Command.

(b) CONTENT OF REPORT.—(1) The report shall specifically discuss in detail the following matters:

(A) The expanded role of the United States Special Operations Command in the global war on terrorism.

(B) The reorganization of that command to function as

a supported combatant command for planning and executing

operations.

(C) The role of that command as a supporting combatant

command.

(2) The report shall also include, in addition to the matters

discussed pursuant to paragraph (1), a discussion of the following

matters:

(A) The military strategy to employ the United States

Special Operations Command to fight the global war on terrorism and how that strategy contributes to the overall national

security strategy with regard to the global war on terrorism.

(B) The scope of the authority granted to the commander

of that command to act as a supported commander and to

prosecute the global war on terrorism.

(C) The operational and legal parameters within which

the commander of that command is to exercise command

authority in foreign countries when taking action against foreign and United States citizens engaged in terrorist activities.

(D) The decisionmaking procedures for authorizing, planning, and conducting individual missions by that command,

including—

(i) the requirement in section 167(d)(2) of title 10,

United States Code, that the conduct of a special operations

mission under the command of the commander of the

United States Special Operations Command be authorized

by the President or the Secretary of Defense; and

(ii) procedures for consultation with Congress.

(E) The procedures for the commander of that command

to use to coordinate with commanders of other combatant commands, especially geographic commands.
H. R. 1588—170

(F) Future organization plans and resource requirements

for that command conducting the global counterterrorism mission.

(G) The effect of the changing role of that command on

other special operations missions, including foreign internal

defense, psychological operations, civil affairs, unconventional

warfare, counterdrug activities, and humanitarian activities.

(c) FORMS OF REPORT.—The report shall be submitted in

unclassified form and, as necessary, in classified form.

SEC. 905. SENSE OF CONGRESS REGARDING CONTINUATION OF MISSION AND FUNCTIONS OF ARMY PEACEKEEPING

INSTITUTE.

It is the sense of Congress that the Secretary of Defense should

maintain the functions and missions of the Army Peacekeeping

Institute at the Army War College in Carlisle, Pennsylvania, or

within a joint entity of the Department of Defense, such as the

National Defense University or the Joint Forces Command, to

ensure that members of the Armed Forces continue to study the

strategic challenges and uses of peacekeeping missions and to prepare the Armed Forces for conducting such missions.

SEC. 906. TRANSFER TO OFFICE OF PERSONNEL MANAGEMENT OF

PERSONNEL INVESTIGATIVE FUNCTIONS AND RELATED

PERSONNEL OF THE DEPARTMENT OF DEFENSE.

(a) TRANSFER OF FUNCTIONS.—(1) Subject to subsection (b),

the Secretary of Defense may transfer to the Office of Personnel

Management the personnel security investigations functions that,

as of the date of the enactment of this Act, are performed by

the Defense Security Service of the Department of Defense. Such

a transfer may be made only with the concurrence of the Director

of the Office of Personnel Management.

(2) The Director of the Office of Personnel Management may

accept a transfer of functions under paragraph (1).

(3) Any transfer of a function under this subsection is a transfer

of function within the meaning of section 3503 of title 5, United

States Code.

(b) LIMITATION.—(1) The Secretary of Defense may not make

a transfer of functions under subsection (a) unless the Secretary

determines, and certifies in writing to the Committee on Armed

Services of the House of Representatives and the Committee on

Armed Services of the Senate, that each of the conditions specified

in paragraph (2) has been met. Such a transfer may then be

made only after a period of 30 days has elapsed after the date

on which the certification is received by those committees.

(2) The conditions referred to in paragraph (1) are the following:

(A) That the Office of Personnel Management is fully

capable of carrying out high-priority investigations required

by the Secretary of Defense within a timeframe set by the

Secretary of Defense.

(B) That the Office of Personnel Management has undertaken necessary and satisfactory steps to ensure that investigations performed on Department of Defense contract personnel

will be conducted in an expeditious manner sufficient to ensure

that those contract personnel are available to the Department

of Defense within a timeframe set by the Secretary of Defense.

(C) That the Department of Defense will retain capabilities

in the form of Federal employees to monitor and investigate
H. R. 1588—171

Department of Defense and contractor personnel as necessary

to perform counterintelligence functions and polygraph activities of the Department.

(D) That the authority to adjudicate background investigations will remain with the Department of Defense and that

the transfer of Defense Security Service personnel to the Office

of Personnel Management will improve the speed and efficiency

of the adjudication process.

(E) That the Department of Defense will retain within

the Defense Security Service sufficient personnel and capabilities to improve Department of Defense industrial security programs and practices.

(c) TRANSFER OF PERSONNEL.—(1) If the Director of the Office

of Personnel Management accepts a transfer of functions under

subsection (a), the Secretary of Defense shall also transfer to the

Office of Personnel Management, and the Director shall accept—

(A) the Defense Security Service employees who perform

those functions immediately before the transfer of functions;

and

(B) the Defense Security Service employees who, as of

such time, are first level supervisors of employees transferred

under subparagraph (A).

(2) The Secretary may also transfer to the Office of Personnel

Management any Defense Security Service employees (including

higher level supervisors) who provide support services for the

performance of the functions transferred under subsection (a) or

for the personnel (including supervisors) transferred under paragraph (1) if the Director—

(A) determines that the transfer of such additional

employees and the positions of such employees to the Office

of Personnel Management is necessary in the interest of effective performance of the transferred functions; and

(B) accepts the transfer of the additional employees.

(3) In the case of an employee transferred to the Office of

Personnel Management under paragraph (1) or (2), whether a fulltime or part-time employee—

(A) subsections (b) and (c) of section 5362 of title 5, United

States Code, relating to grade retention, shall apply to the

employee, except that—

(i) the grade retention period shall be the one-year

period beginning on the date of the transfer; and

(ii) paragraphs (1), (2), and (3) of such subsection (c)

shall not apply to the employee; and

(B) the employee may not be separated, other than pursuant to chapter 75 of title 5, United States Code, during such

one-year period.

(d) ACTIONS AFTER TRANSFER.—(1) Not later than one year

after a transfer of functions to the Office of Personnel Management

under subsection (a), the Director of the Office of Personnel Management, in coordination with the Secretary of Defense, shall review

all functions performed by personnel of the Defense Security Service

at the time of the transfer and make a written determination

regarding whether each such function is inherently governmental

or is otherwise inappropriate for performance by contractor personnel.

(2) A function performed by Defense Security Service employees

as of the date of the enactment of this Act may not be converted
H. R. 1588—172

to contractor performance by the Director of the Office of Personnel

Management until—

(A) the Director reviews the function in accordance with

the requirements of paragraph (1) and makes a written determination that the function is not inherently governmental and

is not otherwise inappropriate for contractor performance; and

(B) the Director conducts a public-private competition

regarding the performance of that function in accordance with

the requirements of the Office of Management and Budget

Circular A–76.

SEC. 907. DEFENSE ACQUISITION WORKFORCE FREEZE FOR FISCAL

YEAR 2004.

(a) DEFENSE ACQUISITION WORKFORCE FREEZE.—During fiscal

year 2004, the number of defense acquisition and support personnel

may not at any time be greater than one percent above, or less

than one percent below, the baseline number, and any variation

from the baseline number (within such one percent variance) shall

be only to exercise normal hiring and firing flexibility during the

fiscal year.

(b) BASELINE NUMBER.—For purposes of subsection (a), the

baseline number is the number of defense acquisition and support

personnel as of October 1, 2003.

(c) USE OF FULL-TIME EQUIVALENT POSITIONS.—All determinations of personnel strengths for purposes of this section shall be

on the basis of full-time equivalent positions.

(d) WAIVER AUTHORITY.—The Secretary of Defense may waive

the limitation in subsection (a) upon a determination that such

waiver is necessary to protect a significant national security interest

of the United States. If the Secretary makes such a determination,

the Secretary shall, within 30 days after making the determination,

notify the Committees on Armed Services of the Senate and House

of Representatives of the determination and the reasons for the

determination.

(e) DEFINITION.—In this section, the term ‘‘defense acquisition

and support personnel’’ means members of the Armed Forces and

civilian personnel (other than civilian personnel who are employed

at a maintenance depot) who are assigned to, or employed in,

acquisition organizations of the Department of Defense (as specified

in Department of Defense Instruction numbered 5000.58, dated

January 14, 1992), and any other organization that, as determined

by the Secretary, has acquisition as its predominant mission.

Subtitle B—Space Activities

SEC. 911. COORDINATION OF SPACE SCIENCE AND TECHNOLOGY

ACTIVITIES OF THE DEPARTMENT OF DEFENSE.

(a) IN GENERAL.—(1) Chapter 135 of title 10, United States

Code, is amended by adding at the end the following new section:

‘‘§ 2272. Space science and technology strategy: coordination

‘‘(a) SPACE SCIENCE AND TECHNOLOGY STRATEGY.—(1) The Secretary of Defense shall develop and implement a space science

and technology strategy and shall review and, as appropriate, revise

the strategy annually. Functions of the Secretary under this subsection shall be carried out jointly by the Director of Defense

Research and Engineering and the official of the Department of
H. R. 1588—173

Defense designated as the Department of Defense Executive Agent

for Space.

‘‘(2) The strategy under paragraph (1) shall, at a minimum,

address the following issues:

‘‘(A) Short-term and long-term goals of the space science

and technology programs of the Department of Defense.

‘‘(B) The process for achieving the goals identified under

subparagraph (A), including an implementation plan for

achieving those goals.

‘‘(C) The process for assessing progress made toward

achieving those goals.

‘‘(3) The strategy under paragraph (1) shall be included as

part of the annual National Security Space Plan developed pursuant

to Department of Defense regulations and shall be provided to

Department of Defense components and science and technology

entities of the Department of Defense to support the planning,

programming, and budgeting processes of the Department.

‘‘(4) The strategy under paragraph (1) shall be developed in

consultation with the directors of research laboratories of the

Department of Defense, the directors of the other Department of

Defense research components, and the heads of other organizations

of the Department of Defense as identified by the Director of

Defense Research and Engineering and the Department of Defense

Executive Agent for Space.

‘‘(5) The strategy shall be available for review by the congressional defense committees.

‘‘(b) REQUIRED COORDINATION.—In carrying out the space

science and technology strategy developed under subsection (a),

the directors of the research laboratories of the Department of

Defense, the directors of the other Department of Defense research

components, and the heads of all other appropriate organizations

identified jointly by the Director of Defense Research and

Engineering and the Department of Defense Executive Agent for

Space shall each—

‘‘(1) identify research projects in support of that strategy

that contribute directly and uniquely to the development of

space technology; and

‘‘(2) inform the Director of Defense Research and

Engineering and the Department of Defense Executive Agent

for Space of the planned budget and planned schedule for

executing those projects.

‘‘(c) DEFINITIONS.—In this section:

‘‘(1) The term ‘research laboratory of the Department of

Defense’ means any of the following:

‘‘(A) The Air Force Research Laboratory.

‘‘(B) The Naval Research Laboratory.

‘‘(C) The Office of Naval Research.

‘‘(D) The Army Research Laboratory.

‘‘(2) The term ‘other Department of Defense research

component’ means either of the following:

‘‘(A) The Defense Advanced Research Projects Agency.

‘‘(B) The National Reconnaissance Office.’’.

(2) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘2272. Space science and technology strategy: coordination.’’.
H. R. 1588—174

(b) GENERAL ACCOUNTING OFFICE REVIEW.—(1) The Comptroller General shall review and assess the space science and technology strategy developed under subsection (a) of section 2272 of

title 10, United States Code, as added by subsection (a), and the

effectiveness of the coordination process required under subsection

(b) of that section.

(2) Not later than September 1, 2004, the Comptroller General

shall submit to the Committees on Armed Services of the Senate

and the House of Representatives a report containing the findings

and assessment under paragraph (1).

SEC. 912. POLICY REGARDING ASSURED ACCESS TO SPACE FOR

UNITED STATES NATIONAL SECURITY PAYLOADS.

(a) IN GENERAL.—(1) Chapter 135 of title 10, United States

Code, is amended by adding after section 2272, as added by section

911(a)(1), the following new section:

‘‘§ 2273. Policy regarding assured access to space: national

security payloads

‘‘(a) POLICY.—It is the policy of the United States for the President to undertake actions appropriate to ensure, to the maximum

extent practicable, that the United States has the capabilities necessary to launch and insert United States national security payloads

into space whenever such payloads are needed in space.

‘‘(b) INCLUDED ACTIONS.—The appropriate actions referred to

in subsection (a) shall include, at a minimum, providing resources

and policy guidance to sustain—

‘‘(1) the availability of at least two space launch vehicles

(or families of space launch vehicles) capable of delivering into

space any payload designated by the Secretary of Defense or

the Director of Central Intelligence as a national security payload; and ‘‘(2) a robust space launch infrastructure and industrial

base.

‘‘(c) COORDINATION.—The Secretary of Defense shall, to the

maximum extent practicable, pursue the attainment of the capabilities described in subsection (a) in coordination with the Administrator of the National Aeronautics and Space Administration.’’. (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding after the item relating

to section 2272, as added by section 911(a)(2), the following new

item:

‘‘2273. Policy regarding assured access to space: national security payloads.’’.

SEC. 913. PILOT PROGRAM FOR PROVISION OF SPACE SURVEILLANCE

NETWORK SERVICES TO NON-UNITED STATES GOVERNMENT ENTITIES.

(a) IN GENERAL.—Chapter 135 of title 10, United States Code,

is amended by adding after section 2273, as added by section

912(a), the following new section:

‘‘§ 2274. Space surveillance network: pilot program for provision of satellite tracking support to entities outside United States Government

‘‘(a) PILOT PROGRAM.—The Secretary of Defense may carry out

a pilot program to determine the feasibility and desirability of
H. R. 1588—175

providing to non-United States Government entities space surveillance data support described in subsection (b).

‘‘(b) SPACE SURVEILLANCE DATA SUPPORT.—Under such a pilot

program, the Secretary may provide to a non-United States Government entity, subject to an agreement described in subsection (d),

the following:

‘‘(1) Satellite tracking services from assets owned or controlled by the Department of Defense, but only if the Secretary

determines, in the case of any such agreement, that providing

such services to that entity is in the national security interests

of the United States.

‘‘(2) Space surveillance data and the analysis of space

surveillance data, but only if the Secretary determines, in the

case of any such agreement, that providing such data and

analysis to that entity is in the national security interests

of the United States.

‘‘(c) ELIGIBLE ENTITIES.—Under the pilot program, the Secretary may provide space surveillance data support to non-United

States Government entities including the following:

‘‘(1) State governments.

‘‘(2) Governments of political subdivisions of States.

‘‘(3) United States commercial entities.

‘‘(4) Governments of foreign countries.

‘‘(5) Foreign commercial entities.

‘‘(d) REQUIRED AGREEMENT.—The Secretary may not provide

space surveillance data support to a non-United States Government

entity under the pilot program unless that entity enters into an

agreement with the Secretary under which the entity—

‘‘(1) agrees to pay an amount that may be charged by

the Secretary under subsection (e); and

‘‘(2) agrees not to transfer any data or technical information

received under the agreement, including the analysis of

tracking data, to any other entity without the express approval

of the Secretary.

‘‘(e) RULE OF CONSTRUCTION CONCERNING PROVISION OF INTELLIGENCE ASSETS OR DATA.—Nothing in this section shall be considered to authorize the provision of services or information concerning,

or derived from, United States intelligence assets or data.

‘‘(f) CHARGES.—(1) As a condition of an agreement under subsection (d), the Secretary may (except as provided in paragraph

(2)) require the non-United States Government entity entering into

the agreement to pay to the Department of Defense such amounts

as the Secretary determines to be necessary to reimburse the

Department for the costs of the Department of providing space

surveillance data support under the agreement.

‘‘(2) The Secretary may not require the government of a State

or of a political subdivision of a State to pay any amount under

paragraph (1).

‘‘(g) CREDITING OF FUNDS RECEIVED.—Funds received for the

provision of space surveillance data support pursuant to an agreement under this section shall be credited to accounts of the Department of Defense that are current when the funds are received

and that are available for the same purposes as the accounts

originally charged to provide such support. Funds so credited shall

merge with and become available for obligation for the same period

as the accounts to which they are credited.
H. R. 1588—176

‘‘(h) PROCEDURES.—The Secretary shall establish procedures

for the conduct of the pilot program. As part of those procedures,

the Secretary may allow space surveillance data and analysis of

space surveillance data to be provided through a contractor of

the Department of Defense.

‘‘(i) DURATION OF PILOT PROGRAM.—The pilot program under

this section shall be conducted during the three-year period beginning on a date specified by the Secretary of Defense, which date

shall be not later than 180 days after the date of the enactment

of this section.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding after the item relating

to section 2273, as added by section 912(b), the following new

item:

‘‘2274. Space surveillance network: pilot program for provision of satellite tracking

support to entities outside United States Government.’’.

SEC. 914. CONTENT OF BIENNIAL GLOBAL POSITIONING SYSTEM

REPORT.

(a) REVISED CONTENT.—Paragraph (1) of section 2281(d) of

title 10, United States Code, is amended—

(1) by striking subparagraph (C);

(2) by redesignating subparagraph (D) as subparagraph

(C);

(3) by redesignating subparagraph (E) as subparagraph

(D) and in that subparagraph striking ‘‘Any progress made

toward’’ and inserting ‘‘Progress and challenges in’’; and

(4) by striking subparagraph (F) and inserting the following:

‘‘(E) Progress and challenges in protecting GPS from jamming, disruption, and interference.

‘‘(F) Progress and challenges in developing the enhanced

Global Positioning System required by section 218(b) of the

Strom Thurmond National Defense Authorization Act for Fiscal

Year 1999 (Public Law 105–261; 112 Stat. 1951; 10 U.S.C.

2281 note).’’.

(b) CONFORMING AMENDMENT.—Paragraph (2) of such section

is amended by inserting ‘‘(C),’’ after ‘‘under subparagraphs’’.

SEC. 915. REPORT ON PROCESSES-RELATED SPACE SYSTEMS.

Not later than March 15, 2004, the Secretary of Defense shall

submit to the Committees on Armed Services of the Senate and

House of Representatives a report to provide the—

(1) the Secretary’s assessment of the role of the United

States Strategic Command in planning and requirements

development for space systems to support the warfighter;

(2) the Secretary’s assessment of the processes by which

space systems capabilities are integrated into training and

doctrine of the Armed Forces; and

(3) the Secretary’s recommendations for improvements in

the processes identified pursuant to paragraphs (1) and (2).
H. R. 1588—177

Subtitle C—Department of Defense Intelligence Components

SEC. 921. REDESIGNATION OF NATIONAL IMAGERY AND MAPPING

AGENCY AS NATIONAL GEOSPATIAL-INTELLIGENCE

AGENCY.

(a) REDESIGNATION.—The National Imagery and Mapping

Agency of the Department of Defense is hereby redesignated as

the National Geospatial-Intelligence Agency.

(b) DEFINITION OF GEOSPATIAL INTELLIGENCE.—Section 467 of

title 10, United States Code, is amended by adding at the end

the following new paragraph:

‘‘(5) The term ‘geospatial intelligence’ means the exploitation and analysis of imagery and geospatial information to

describe, assess, and visually depict physical features and geographically referenced activities on the earth. Geospatial intelligence consists of imagery, imagery intelligence, and geospatial

information.’’.

(c) AGENCY MISSIONS.—(1) Section 442(a) of title 10, United

States Code, is amended—

(A) in paragraph (1), by inserting ‘‘geospatial intelligence

consisting of’’ after ‘‘provide’’; and

(B) in paragraph (2), by striking ‘‘Imagery, intelligence,

and information’’ and inserting ‘‘Geospatial intelligence’’.

(2) Section 110(a) of the National Security Act of 1947 (50

U.S.C. 404e(a)) is amended by striking ‘‘imagery’’ and inserting

‘‘geospatial intelligence’’.

(d) TECHNICAL AND CONFORMING AMENDMENTS TO TITLE 10,

UNITED STATES CODE.—Title 10, United States Code, is amended

as follows:

(1) The heading of chapter 22 is amended to read as follows:

‘‘CHAPTER 22—NATIONAL GEOSPATIAL-INTELLIGENCE

AGENCY’’.

(2) Chapter 22 is amended—

(A) by striking ‘‘National Imagery and Mapping

Agency’’ each place it appears (other than in section 461(b))

and inserting ‘‘National Geospatial-Intelligence Agency’’;

(B) in section 453(b), by striking ‘‘NIMA’’ in paragraphs

(1) and (2) and inserting ‘‘NGA’’; and

(C) in section 461(b)—

(i) by striking ‘‘The National Imagery and Mapping

Agency’’ and inserting ‘‘The Director of the National

Geospatial-Intelligence Agency’’; and

(ii) by striking ‘‘on the day before’’ and all that

follows through the period and inserting ‘‘on September

30, 1996.’’.

(3) Section 193 is amended—

(A) by striking ‘‘National Imagery and Mapping

Agency’’ in subsections (d)(1), (d)(2), (e), and (f)(4) and

inserting ‘‘National Geospatial-Intelligence Agency’’;

(B) in the heading for subsection (d), by striking

‘‘NATIONAL IMAGERY AND MAPPING AGENCY’’ and inserting

‘‘NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY’’; and

(C) in the heading for subsection (e), by striking

‘‘NIMA’’ and inserting ‘‘NGA’’.
H. R. 1588—178

(4) Section 201 is amended by striking ‘‘National Imagery

and Mapping Agency’’ in subsections (b)(2)(C) and (c)(2)(C) and

inserting ‘‘National Geospatial-Intelligence Agency’’.

(5)(A) Section 424 is amended by striking ‘‘National

Imagery and Mapping Agency’’ in subsection (b)(3) and

inserting ‘‘National Geospatial-Intelligence Agency’’.

(B)(i) The heading of such section is amended to read

as follows:

‘‘§ 424. Disclosure of organizational and personnel information: exemption for specified intelligence agencies’’.

(ii) The item relating to that section in the table of sections

at the beginning of subchapter I of chapter 21 is amended

to read as follows:

‘‘424. Disclosure of organizational and personnel information: exemption for specified intelligence agencies.’’.

(6) Section 425(a) is amended by adding at the end the

following new paragraph:

‘‘(5) The words ‘National Geospatial-Intelligence Agency’,

the initials ‘NGA,’ or the seal of the National Geospatial-Intelligence Agency.’’.

(7) Section 1614(2)(C) is amended by striking ‘‘National

Imagery and Mapping Agency’’ and inserting ‘‘National

Geospatial-Intelligence Agency’’.

(8) The tables of chapters at the beginning of subtitle

A, and at the beginning of part I of subtitle A, are each

amended by striking ‘‘Imagery and Mapping’’ in the item

relating to chapter 22 and inserting ‘‘Geospatial-Intelligence’’.

(e) CONFORMING AMENDMENTS TO NATIONAL SECURITY ACT OF

1947.—The National Security Act of 1947 is amended as follows:

(1) Section 3 (50 U.S.C. 401a) is amended by striking

‘‘National Imagery and Mapping Agency’’ in paragraph (4)(E)

and inserting ‘‘National Geospatial-Intelligence Agency’’.

(2) Section 105 (50 U.S.C. 403–5) is amended by striking

‘‘National Imagery and Mapping Agency’’ in subsections (b)(2)

and (d)(3) and inserting ‘‘National Geospatial-Intelligence

Agency’’.

(3) Section 105A (50 U.S.C. 403–5a) is amended by striking

‘‘National Imagery and Mapping Agency’’ in subsection (b)(1)(C)

and inserting ‘‘National Geospatial-Intelligence Agency’’.

(4) Section 105C (50 U.S.C. 403–5c) is amended—

(A) by striking ‘‘National Imagery and Mapping

Agency’’ each place it appears and inserting ‘‘National

Geospatial-Intelligence Agency’’;

(B) by striking ‘‘NIMA’’ each place it appears and

inserting ‘‘NGA’’; and

(C) by striking ‘‘NIMA’s’’ in subsection (a)(6)(B)(iv)(II)

and inserting ‘‘NGA’s’’.

(5) Section 106 (50 U.S.C. 403–6) is amended by striking ‘‘National Imagery and Mapping Agency’’ in subsection (a)(2)(C)

and inserting ‘‘National Geospatial-Intelligence Agency’’.

(6) Section 110 (50 U.S.C. 404e) is amended—

(A) by striking ‘‘National Imagery and Mapping

Agency’’ in subsections (a), (b), and (c) and inserting

‘‘National Geospatial-Intelligence Agency’’; and
H. R. 1588—179

(B) by striking ‘‘NATIONAL IMAGERY AND MAPPING

AGENCY’’ in the section heading and inserting ‘‘NATIONAL

GEOSPATIAL-INTELLIGENCE AGENCY’’. (7) The item relating to section 110 in the table of contents

in the first section is amended to read as follows:

‘‘Sec. 110. National mission of National Geospatial-Intelligence Agency.’’.

(f) CROSS REFERENCE CORRECTION.—Section 442(d) of title 10,

United States Code, is amended by striking ‘‘section 120(a) of the

National Security Act of 1947’’ and inserting ‘‘section 110(a) of

the National Security Act of 1947 (50 U.S.C. 404e(a))’’. (g) REFERENCES.—Any reference to the National Imagery and

Mapping Agency in any law, regulation, map, document, record,

or other paper of the United States shall be considered to be

a reference to the National Geospatial-Intelligence Agency.

SEC. 922. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL

SECURITY AGENCY.

(a) PROTECTION OF OPERATIONAL FILES OF NSA.—Title VII

of the National Security Act of 1947 (50 U.S.C. 431 et seq.) is

amended by adding at the end the following new section:

‘‘OPERATIONAL FILES OF THE NATIONAL SECURITY AGENCY

‘‘SEC. 704. (a) EXEMPTION OF CERTAIN OPERATIONAL FILES FROM

SEARCH, REVIEW, PUBLICATION, OR DISCLOSURE.—The Director of

the National Security Agency, in coordination with the Director

of Central Intelligence, may exempt operational files of the National

Security Agency from the provisions of section 552 of title 5, United

States Code, which require publication, disclosure, search, or review

in connection therewith.

‘‘(b) OPERATIONAL FILES DEFINED.—(1) In this section, the term

‘operational files’ means—

‘‘(A) files of the Signals Intelligence Directorate of the

National Security Agency (and any successor organization of

that directorate) that document the means by which foreign

intelligence or counterintelligence is collected through technical

systems; and

‘‘(B) files of the Research Associate Directorate of the

National Security Agency (and any successor organization of

that directorate) that document the means by which foreign

intelligence or counterintelligence is collected through scientific

and technical systems.

‘‘(2) Files that are the sole repository of disseminated intelligence, and files that have been accessioned into the National

Security Agency Archives (or any successor organization) are not

operational files.

‘‘(c) SEARCH AND REVIEW FOR INFORMATION.—Notwithstanding

subsection (a), exempted operational files shall continue to be subject to search and review for information concerning any of the

following:

‘‘(1) United States citizens or aliens lawfully admitted for

permanent residence who have requested information on themselves pursuant to the provisions of section 552 or 552a of

title 5, United States Code.

‘‘(2) Any special activity the existence of which is not

exempt from disclosure under the provisions of section 552

of title 5, United States Code.
H. R. 1588—180

‘‘(3) The specific subject matter of an investigation by any

of the following for any impropriety, or violation of law, Executive order, or Presidential directive, in the conduct of an intelligence activity:

‘‘(A) The Committee on Armed Services and the Permanent Select Committee on Intelligence of the House of

Representatives.

‘‘(B) The Committee on Armed Services and the Select

Committee on Intelligence of the Senate.

‘‘(C) The Intelligence Oversight Board.

‘‘(D) The Department of Justice.

‘‘(E) The Office of General Counsel of the National

Security Agency.

‘‘(F) The Office of the Inspector General of the Department of Defense.

‘‘(G) The Office of the Director of the National Security

Agency.

‘‘(d) INFORMATION DERIVED OR DISSEMINATED FROM EXEMPTED

OPERATIONAL FILES.—(1) Files that are not exempted under subsection (a) that contain information derived or disseminated from

exempted operational files shall be subject to search and review.

‘‘(2) The inclusion of information from exempted operational

files in files that are not exempted under subsection (a) shall

not affect the exemption under subsection (a) of the originating

operational files from search, review, publication, or disclosure.

‘‘(3) The declassification of some of the information contained

in exempted operational files shall not affect the status of the

operational file as being exempt from search, review, publication,

or disclosure.

‘‘(4) Records from exempted operational files that have been

disseminated to and referenced in files that are not exempted

under subsection (a) and that have been returned to exempted

operational files for sole retention shall be subject to search and

review.

‘‘(e) SUPERCEDURE OF OTHER LAWS.—The provisions of subsection (a) may not be superseded except by a provision of law

that is enacted after the date of the enactment of this section

and that specifically cites and repeals or modifies such provisions.

‘‘(f) ALLEGATION; IMPROPER WITHHOLDING OF RECORDS;

JUDICIAL REVIEW.—(1) Except as provided in paragraph (2), whenever any person who has requested agency records under section

552 of title 5, United States Code, alleges that the National Security

Agency has withheld records improperly because of failure to comply

with any provision of this section, judicial review shall be available

under the terms set forth in section 552(a)(4)(B) of title 5, United

States Code.

‘‘(2) Judicial review shall not be available in the manner provided for under paragraph (1) as follows:

‘‘(A) In any case in which information specifically authorized under criteria established by an Executive order to be

kept secret in the interests of national defense or foreign relations is filed with, or produced for, the court by the National

Security Agency, such information shall be examined ex parte,

in camera by the court.

‘‘(B) The court shall determine, to the fullest extent practicable, the issues of fact based on sworn written submissions

of the parties.
H. R. 1588—181

‘‘(C) When a complainant alleges that requested records

are improperly withheld because of improper placement solely

in exempted operational files, the complainant shall support

such allegation with a sworn written submission based upon

personal knowledge or otherwise admissible evidence.

‘‘(D)(i) When a complainant alleges that requested records

were improperly withheld because of improper exemption of

operational files, the National Security Agency shall meet its

burden under section 552(a)(4)(B) of title 5, United States Code,

by demonstrating to the court by sworn written submission

that exempted operational files likely to contain responsible

records currently perform the functions set forth in subsection

(b).

‘‘(ii) The court may not order the National Security Agency

to review the content of any exempted operational file or files

in order to make the demonstration required under clause

(i), unless the complainant disputes the National Security

Agency’s showing with a sworn written submission based on

personal knowledge or otherwise admissible evidence.

‘‘(E) In proceedings under subparagraphs (C) and (D), the

parties may not obtain discovery pursuant to rules 26 through

36 of the Federal Rules of Civil Procedure, except that requests

for admissions may be made pursuant to rules 26 and 36.

‘‘(F) If the court finds under this subsection that the

National Security Agency has improperly withheld requested

records because of failure to comply with any provision of

this subsection, the court shall order the Agency to search

and review the appropriate exempted operational file or files

for the requested records and make such records, or portions

thereof, available in accordance with the provisions of section

552 of title 5, United States Code, and such order shall be

the exclusive remedy for failure to comply with this section

(other than subsection (g)). ‘‘(G) If at any time following the filing of a complaint

pursuant to this paragraph the National Security Agency agrees

to search the appropriate exempted operational file or files

for the requested records, the court shall dismiss the claim

based upon such complaint. ‘‘(H) Any information filed with, or produced for the court

pursuant to subparagraphs (A) and (D) shall be coordinated

with the Director of Central Intelligence before submission

to the court.

‘‘(g) DECENNIAL REVIEW OF EXEMPTED OPERATIONAL FILES.—

(1) Not less than once every 10 years, the Director of the National

Security Agency and the Director of Central Intelligence shall

review the exemptions in force under subsection (a) to determine

whether such exemptions may be removed from a category of

exempted files or any portion thereof. The Director of Central

Intelligence must approve any determination to remove such exemptions.

‘‘(2) The review required by paragraph (1) shall include consideration of the historical value or other public interest in the subject

matter of a particular category of files or portions thereof and

the potential for declassifying a significant part of the information

contained therein.

‘‘(3) A complainant that alleges that the National Security

Agency has improperly withheld records because of failure to comply
H. R. 1588—182

with this subsection may seek judicial review in the district court

of the United States of the district in which any of the parties

reside, or in the District of Columbia. In such a proceeding, the

court’s review shall be limited to determining the following:

‘‘(A) Whether the National Security Agency has conducted

the review required by paragraph (1) before the expiration

of the 10-year period beginning on the date of the enactment

of this section or before the expiration of the 10-year period

beginning on the date of the most recent review.

‘‘(B) Whether the National Security Agency, in fact, considered the criteria set forth in paragraph (2) in conducting the

required review.’’.

(b) CONSOLIDATION OF CURRENT PROVISIONS ON PROTECTION

OF OPERATIONAL FILES OF CIA.—Title VII of such Act is further

amended—

(1) in section 701(b) (50 U.S.C. 431(b)), by striking ‘‘For

purposes of this title’’ and inserting ‘‘In this section,’’; and

(2) in section 702 (50 U.S.C. 432)—

(A) by striking the section heading;

(B) by redesignating the text of that section as subsection (g) of section 701 and redesignating subsections

(a), (b), and (c) thereof as paragraphs (1), (2), and (3),

respectively;

(C) by inserting ‘‘DECENNIAL REVIEW OF EXEMPTED

OPERATIONAL FILES.—’’ after the subsection designation

(as designated by subparagraph (B));

(D) in paragraph (1) (as redesignated by subparagraph

(B)), by striking ‘‘of section 701 of this Act’’;

(E) in paragraph (2) (as redesignated by subparagraph

(B)), by striking ‘‘of subsection (a) of this section’’ and

inserting ‘‘paragraph (1)’’; and

(F) in paragraph (3) (as redesignated by subparagraph

(B))—

(i) by striking ‘‘with this section’’ in the first sentence and inserting ‘‘with this subsection’’; and

(ii) by striking ‘‘to determining’’ in the second sentence and all that follows and inserting ‘‘to determining

the following:

‘‘(A) Whether the Central Intelligence Agency has conducted the review required by paragraph (1) before October

15, 1994, or before the expiration of the 10-year period beginning on the date of the most recent review.

‘‘(B) Whether the Central Intelligence Agency, in fact,

considered the criteria set forth in paragraph (2) in conducting

the required review.’’.

(c) CONSOLIDATION OF CURRENT PROVISIONS ON PROTECTION

OF OPERATIONAL FILES OF CERTAIN OTHER INTELLIGENCE AGENCIES.—The National Security Act of 1947 (50 U.S.C. 401 et seq.)

is further amended—

(1) by transferring section 105C (50 U.S.C. 403–5c), as

amended by section 921(e)(4), and section 105D (50 U.S.C.

403–5e) to title VII of that Act and inserting them after section

701, as amended by subsection (b); and

(2) by redesignating those sections, as so transferred, as

sections 702 and 703, respectively.

(d) CLERICAL AMENDMENTS.—The National Security Act of 1947

is further amended as follows:
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(1)(A) The heading for title VII is amended to read as

follows:

‘‘TITLE VII—PROTECTION OF OPERATIONAL FILES’’.

(B) The heading for section 701 is amended to read as

follows:

‘‘OPERATIONAL FILES OF THE CENTRAL INTELLIGENCE AGENCY’’.

(C) The heading for section 702, as transferred and redesignated by subsection (c), is amended to read as follows:

‘‘OPERATIONAL FILES OF THE NATIONAL GEOSPATIAL-INTELLIGENCE

AGENCY’’.

(D) The heading for section 703, as transferred and redesignated by subsection (c), is amended by striking the first two

words.

(2) The table of contents in the first section of the National

Security Act of 1947 is amended—

(A) by striking the items relating to sections 105C

and 105D; and

(B) by striking the items relating to title VII and

sections 701 and 702 and inserting the following new items:

‘‘TITLE VII—PROTECTION OF OPERATIONAL FILES

‘‘Sec. 701. Operational files of the Central Intelligence Agency.

‘‘Sec. 702. Operational files of the National Geospatial-Intelligence Agency.

‘‘Sec. 703. Operational files of the National Reconnaissance Office.

‘‘Sec. 704. Operational files of the National Security Agency.’’.

SEC. 923. INTEGRATION OF DEFENSE INTELLIGENCE, SURVEILLANCE,

AND RECONNAISSANCE CAPABILITIES.

(a) FINDINGS.—Congress makes the following findings:

(1) As part of transformation efforts within the Department

of Defense, each of the Armed Forces is developing intelligence,

surveillance, and reconnaissance capabilities that best support

future war fighting as envisioned by the leadership of the

military department concerned.

(2) Concurrently, intelligence agencies of the Department

of Defense outside the military departments are developing

transformation roadmaps to best support the future decisionmaking and war fighting needs of their principal customers,

but are not always closely coordinating those efforts with the

intelligence, surveillance, and reconnaissance development

efforts of the military departments.

(3) A senior official of each military department has been

designated as the integrator of intelligence, surveillance, and

reconnaissance for each of the Armed Forces in such military

department, but there is not currently a well-defined forum

through which the integrators of intelligence, surveillance, and

reconnaissance capabilities for each of the Armed Forces can

routinely interact with each other and with senior representatives of Department of Defense intelligence agencies, as well

as with other members of the intelligence community, to ensure

unity of effort and to preclude unnecessary duplication of effort.
H. R. 1588—184

(4) The current funding structure of a National Foreign

Intelligence Program (NFIP), Joint Military Intelligence Program (JMIP), and Tactical Intelligence and Related Activities

Program (TIARA) may not be the best approach for supporting

the development of an intelligence, surveillance, and reconnaissance structure that is integrated to meet the national security

requirements of the United States in the 21st century.

(5) The position of Under Secretary of Defense for Intelligence was established in 2002 by Public Law 107–314 in

order to facilitate resolution of the challenges to achieving

an integrated intelligence, surveillance, and reconnaissance

structure in the Department of Defense to meet such 21st

century requirements.

(b) GOAL.—It shall be a goal of the Department of Defense

to fully integrate the intelligence, surveillance, and reconnaissance

capabilities and coordinate the developmental activities of the military departments, intelligence agencies of the Department of

Defense, and relevant combatant commands as those departments,

agencies, and commands transform their intelligence, surveillance,

and reconnaissance systems to meet current and future needs.

(c) ISR INTEGRATION REQUIREMENTS.—(1) Subchapter I of

chapter 21 of title 10, United States Code, is amended by adding

at the end the following new section:

‘‘§ 426. Integration of Department of Defense intelligence,

surveillance, and reconnaissance capabilities

‘‘(a) ISR INTEGRATION COUNCIL.—(1) The Under Secretary of

Defense for Intelligence shall establish an Intelligence, Surveillance,

and Reconnaissance Integration Council—

‘‘(A) to assist the Under Secretary with respect to matters

relating to the integration of intelligence, surveillance, and

reconnaissance capabilities, and coordination of related developmental activities, of the military departments, intelligence

agencies of the Department of Defense, and relevant combatant

commands; and

‘‘(B) otherwise to provide a means to facilitate the integration of such capabilities and the coordiation of such developmental activities.

‘‘(2) The Council shall be composed of—

‘‘(A) the senior intelligence officers of the armed forces

and the United States Special Operations Command;

‘‘(B) the Director of Operations of the Joint Staff; and

‘‘(C) the directors of the intelligence agencies of the Department of Defense.

‘‘(3) The Under Secretary of Defense for Intelligence shall invite

the participation of the Director of Central Intelligence (or that

Director’s representative) in the proceedings of the Council.

‘‘(b) ISR INTEGRATION ROADMAP.—(1) The Under Secretary of

Defense for Intelligence shall develop a comprehensive plan, to

be known as the ‘Defense Intelligence, Surveillance, and Reconnaissance Integration Roadmap’, to guide the development and integration of the Department of Defense intelligence, surveillance, and

reconnaissance capabilities for the 15-year period of fiscal years

2004 through 2018.
H. R. 1588—185

‘‘(2) The Under Secretary shall develop the Defense Intelligence,

Surveillance, and Reconnaissance Integration Roadmap in consultation with the Intelligence, Surveillance, and Reconnaissance

Integration Council and the Director of Central Intelligence.’’. (2) The table of sections at the beginning of such subchapter

is amended by adding at the end the following new item:

‘‘426. Integration of Department of Defense intelligence, surveillance, and reconnaissance capabilities.’’.

(d) REPORT.—(1) Not later than September 30, 2004, the Under

Secretary of Defense for Intelligence shall submit to the committees

of Congress specified in paragraph (2) a report on the Defense

Intelligence, Surveillance, and Reconnaissance Integration

Roadmap developed under subsection (b) of section 426 of title

10, United States Code, as added by subsection (c). The report

shall include the following matters:

(A) The fundamental goals established in the roadmap.

(B) An overview of the intelligence, surveillance, and reconnaissance integration activities of the military departments

and the intelligence agencies of the Department of Defense.

(C) An investment strategy for achieving— (i) an integration of Department of Defense intelligence, surveillance, and reconnaissance capabilities that

ensures sustainment of needed tactical and operational

efforts; and

(ii) efficient investment in new intelligence, surveillance, and reconnaissance capabilities.

(D) A discussion of how intelligence gathered and analyzed

by the Department of Defense can enhance the role of the

Department of Defense in fulfilling its homeland security

responsibilities.

(E) A discussion of how counterintelligence activities of

the Armed Forces and the Department of Defense intelligence

agencies can be better integrated.

(F) Recommendations on how annual funding authorizations and appropriations can be optimally structured to best

support the development of a fully integrated Department of

Defense intelligence, surveillance, and reconnaissance architecture.

(2) The committees of Congress referred to in paragraph (1)

are as follows:

(A) The Committee on Armed Services, the Committee

on Appropriations, and the Select Committee on Intelligence

of the Senate.

(B) The Committee on Armed Services, the Committee

on Appropriations, and the Permanent Select Committee on

Intelligence of the House of Representatives.

SEC. 924. MANAGEMENT OF NATIONAL SECURITY AGENCY MODERNIZATION PROGRAM.

(a) MANAGEMENT OF ACQUISITION PROGRAMS THROUGH USD

(AT&L).—The Secretary of Defense shall direct that, effective as

of the date of the enactment of this Act, acquisitions under the

National Security Agency Modernization Program shall be directed

and managed by the Under Secretary of Defense for Acquisition,

Technology, and Logistics.

(b) APPLICABILITY OF MAJOR DEFENSE ACQUISITION PROGRAM

AUTHORITIES.—(1) Each project designated as a major defense
H. R. 1588—186

acquisition program under paragraph (2) shall be managed under

the laws, policies, and procedures that are applicable to major

defense acquisition programs (as defined in section 2430 of title

10, United States Code).

(2) The Secretary of Defense (acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics) shall

designate those projects under the National Security Agency Modernization Program that are to be managed as major defense

acquisition programs.

(c) MILESTONE DECISION AUTHORITY.—(1) The authority to

make a decision that a program is authorized to proceed from

one milestone stage into another (referred to as the milestone

decision authority) may only be exercised by the Under Secretary

of Defense for Acquisition, Technology, and Logistics for the following:

(A) Each project of the National Security Agency Modernization Program that is to be managed as a major defense

acquisition program, as designated under subsection (b).

(B) Each major system under the National Security Agency

Modernization Program.

(2) The limitation in paragraph (1) shall terminate on, and

the Under Secretary may delegate the milestone decision authority

referred to in paragraph (1) to the Director of the National Security

Agency at any time after, the date that is the later of—

(A) September 30, 2005, or

(B) the date on which the Under Secretary submits to

the appropriate committees of Congress a notification described

in paragraph (3).

(3) A notification described in this paragraph is a notification

by the Under Secretary of the Under Secretary’s intention to delegate the milestone decision authority referred to in paragraph (1)

to the Director of the National Security Agency, together with

a detailed discussion of the justification for that delegation. Such

a notification may not be submitted until—

(A) the Under Secretary has determined (after consultation

with the Under Secretary of Defense for Intelligence and the

Deputy Director of Central Intelligence for Community Management) that the Director has implemented acquisition management policies, procedures, and practices that are sufficient to

ensure that acquisitions by the National Security Agency are

conducted in a manner consistent with sound, efficient acquisition practices;

(B) the Under Secretary has consulted with the Under

Secretary of Defense for Intelligence and the Deputy Director

of Central Intelligence for Community Management on the

delegation of such milestone decision authority to the Director;

and

(C) the Secretary of Defense has approved the delegation

of such milestone decision authority to the Director.

(d) PROJECTS COMPRISING PROGRAM.—The National Security

Agency Modernization Program consists of the following projects

of the National Security Agency:

(1) The Trailblazer project.

(2) The Groundbreaker project.

(3) Each cryptological mission management project.

(4) Each other project of that Agency that—
H. R. 1588—187

(A) meets either of the dollar thresholds in effect under

paragraph (2) of section 2430(a) of title 10, United States

Code; and

(B) is determined by the Under Secretary of Defense

for Acquisition, Technology, and Logistics as being a major

project that is within, or properly should be within, the

National Security Agency Modernization Project.

(e) DEFINITIONS.—In this section:

(1) MAJOR SYSTEM.—The term ‘‘major system’’ has the

meaning given that term in section 2302(5) of title 10, United

States Code.

(2) APPROPRIATE COMMITTEES OF CONGRESS.—The term

‘‘appropriate committees of Congress’’ means the following:

(A) The Committee on Armed Services and the Select

Committee on Intelligence of the Senate.

(B) The Committee on Armed Services and the Permanent Select Committee on Intelligence of the House of

Representatives.

SEC. 925. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS

UNDER NATIONAL SECURITY EDUCATION PROGRAM.

(a) IN GENERAL.—Section 802(b)(2) of the David L. Boren

National Security Education Act of 1991 (50 U.S.C. 1902(b)(2))

is amended by striking subparagraphs (A) and (B) and inserting

the following new subparagraphs (A) and (B):

‘‘(A) in the case of a recipient of a scholarship, after

the recipient’s completion of the study for which scholarship

assistance was provided under the program, work in a

position in the Department of Defense or other element

of the intelligence community that is certified by the Secretary as appropriate to utilize the unique language and

region expertise acquired by the recipient pursuant to such

study for a period specified by the Secretary, which period

shall include one year of service for each year, or portion

thereof, for which such scholarship assistance was provided;

or

‘‘(B) in the case of a recipient of a fellowship, after

the recipient’s completion of the study for which the fellowship assistance was provided under the program, work

in a position described in subparagraph (A) that is certified

by the Secretary as appropriate to utilize the unique language and region expertise acquired by the recipient pursuant to such study for a period specified by the Secretary,

which period shall (at the discretion of the Secretary)

include not less than one nor more than three years for

each year, or portion thereof, for which such fellowship

assistance was provided; and’’.

(b) APPLICABILITY.—(1) The amendment made by subsection

(a) shall apply with respect to service agreements entered into

under the David L. Boren National Security Education Act of 1991

on or after the date of the enactment of this Act.

(2) The amendment made by subsection (a) shall not affect

the force, validity, or terms of any service agreement entered into

under the David L. Boren National Security Education Act of 1991

before the date of the enactment of this Act that is in force as

of that date.
H. R. 1588—188

SEC. 926. AUTHORITY TO PROVIDE LIVING QUARTERS FOR CERTAIN

STUDENTS IN COOPERATIVE AND SUMMER EDUCATION

PROGRAMS OF THE NATIONAL SECURITY AGENCY.

Section 2195 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(d)(1) The Director of the National Security Agency may provide a qualifying employee of a defense laboratory of that Agency

with living quarters at no charge, or at a rate or charge prescribed

by the Director by regulation, without regard to section 5911(c)

of title 5.

‘‘(2) In this subsection, the term ‘qualifying employee’ means

a student who is employed at the National Security Agency under—

‘‘(A) a Student Educational Employment Program of the

Agency conducted under this section or any other provision

of law; or

‘‘(B) a similar cooperative or summer education program

of the Agency that meets the criteria for Federal cooperative

or summer education programs prescribed by the Office of

Personnel Management.’’.

SEC. 927. COMMERCIAL IMAGERY INDUSTRIAL BASE.

(a) REQUIREMENT.—Of the total amount authorized to be appropriated for fiscal year 2004 for the acquisition, processing, and

licensing of imagery from commercial sources (including amounts

authorized to be appropriated under that title for experimentation

related to such imagery), not less than 90 percent shall be used

for the following purposes:

(1) Acquisition of space-based imagery from commercial

sources.

(2) Support for the development of next-generation commercial imagery satellites.

(3) Support for infrastructure improvements that meet

unique requirements related to commercial imagery.

(b) WAIVER.—(1) The Secretary of Defense may waive the

requirement in subsection (a) if the Secretary determines that the

waiver is in the national security interest of the United States.

Any such waiver shall be made in consultation with the Director

of Central Intelligence.

(2) If the Secretary makes the waiver authorized by paragraph

(1), the Secretary shall, within 30 days of issuing the waiver,

submit to the appropriate congressional committees a report that

includes the following:

(A) The Secretary’s reasons for determining that the waiver

is in the national security interest of the United States.

(B) The Secretary’s plan for use of the amount referred

to in subsection (a).

(c) REPORT ON DEPARTMENT OF DEFENSE IMPLEMENTATION OF

PRESIDENT’S COMMERCIAL REMOTE SENSING POLICY.—(1) Not later

than March 1, 2004, the Secretary of Defense shall submit to

the appropriate congressional committees a report on the actions

taken, and to be taken, by the Secretary to implement the President’s policy issued on May 13, 2003, with the title ‘‘U.S. Commercial Remote Sensing Space Policy’’. The Secretary shall consult

with the Director of Central Intelligence in preparing the report.

(2) The report under paragraph (1) shall include an assessment

of the following matters:
H. R. 1588—189

(A) The sufficiency for the sustainment of a viable commercial imagery industrial base in the United States of—

(i) the President’s policy referred to in paragraph (1);

(ii) the amount provided for the Department of Defense

for fiscal year 2004 for the acquisition of imagery from

commercial sources; and

(iii) the amounts scheduled in the future-years defense

program (as of the submission of the report) for the acquisition of imagery from commercial sources.

(B) The extent to which the President’s policy referred

to in paragraph (1) and Department of Defense programs

relating to the procurement of imagery from commercial sources

are sufficient to ensure that imagery is available to the Department of Defense from United States commercial sources to

meet the needs of the Department of Defense in a timely

manner.

(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—For the purposes of this section, the term ‘‘appropriate congressional committees’’ means— (1) the Committee on Armed Services, the Select Committee

on Intelligence, and the Committee on Appropriations of the

Senate; and

(2) the Committee on Armed Services, the Permanent Select

Committee on Intelligence, and the Committee on Appropriations of the House of Representatives.

Subtitle D—Other Matters

SEC. 931. AUTHORITY FOR ASIA-PACIFIC CENTER FOR SECURITY

STUDIES TO ACCEPT GIFTS AND DONATIONS.

(a) AUTHORIZED SOURCES OF GIFTS AND DONATIONS.—Subsection (a) of section 2611 of title 10, United States Code, is

amended—

(1) in paragraph (1), by striking ‘‘foreign gifts and donations’’ and inserting ‘‘gifts and donations from sources described

in paragraph (2)’’;

(2) by redesignating paragraph (2) as paragraph (3); and

(3) by inserting after paragraph (1) the following new paragraph (2):

‘‘(2) The sources from which gifts and donations may be

accepted under paragraph (1) are the following:

‘‘(A) The government of a State or a political subdivision

of a State.

‘‘(B) The government of a foreign country.

‘‘(C) A foundation or other charitable organization,

including a foundation or charitable organization that is organized or operates under the laws of a foreign country.

‘‘(D) Any source in the private sector of the United States

or a foreign country.’’.

(b) CONFORMING AMENDMENTS.—(1) Section 2611 of such title

is further amended— (A) by striking ‘‘FOREIGN’’ in the headings for subsections

(a) and (f);

(B) in subsection (c), by striking ‘‘foreign’’; and

(C) in subsection (f)— (i) by striking ‘‘foreign’’ after ‘‘section, a’’; and
H. R. 1588—190

(ii) by striking ‘‘from a foreign’’ and all that follows

through ‘‘country.’’ and inserting a period.

(2) Section 184(b)(4) of such title is amended by striking ‘‘foreign’’.

(c) CLERICAL AMENDMENTS.—The heading of section 2611 of

such title, and the item relating to such section in the table of

sections at the beginning of chapter 155 of such title, are each

amended by striking the third word after the colon.

(d) CROSS REFERENCE CORRECTION.—Section 2612(a) of such

title is amended by striking ‘‘2611(f)’’ and inserting ‘‘2166(f)(4)’’.

SEC. 932. REPEAL OF ROTATING CHAIRMANSHIP OF ECONOMIC

ADJUSTMENT COMMITTEE.

Section 4004(b) of the Defense Economic Adjustment, Diversification, Conversion, and Stabilization Act of 1990 (division D

of Public Law 101–510; 10 U.S.C. 2391 note) is amended—

(1) by striking ‘‘Until October 1, 1997, the’’ and inserting

‘‘The’’; and

(2) by striking the second sentence.

SEC. 933. EXTENSION OF CERTAIN AUTHORITIES APPLICABLE TO THE

PENTAGON RESERVATION TO INCLUDE A DESIGNATED

PENTAGON CONTINUITY-OF-GOVERNMENT LOCATION.

Section 2674 of title 10, United States Code, is amended by

adding at the end the following new subsection:

‘‘(g) For purposes of subsections (b), (c), (d), and (e), the terms

‘Pentagon Reservation’ and ‘National Capital Region’ shall be

treated as including the land and physical facilities at the Raven

Rock Mountain Complex.’’.

TITLE X—GENERAL PROVISIONS

Subtitle A—Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. United States contribution to NATO common-funded budgets in fiscal

year 2004.

Sec. 1003. Authorization of supplemental appropriations for fiscal year 2003.

Sec. 1004. Authorization of supplemental appropriations for fiscal year 2004.

Sec. 1005. Reestablishment of authority for short-term leases of real or personal

property across fiscal years.

Sec. 1006. Reimbursement rate for certain airlift services provided to Department

of State.

Sec. 1007. Limitation on payment of facilities charges assessed by Department of

State.

Sec. 1008. Use of the Defense Modernization Account for life cycle cost reduction

initiatives.

Sec. 1009. Provisions relating to defense travel cards.

Subtitle B—Naval Vessels and Shipyards

Sec. 1011. Repeal of requirement regarding preservation of surge capability for

naval surface combatants.

Sec. 1012. Enhancement of authority relating to use for experimental purposes of

vessels stricken from Naval Vessel Register.

Sec. 1013. Transfer of vessels stricken from the Naval Vessel Register for use as

artificial reefs.

Sec. 1014. Priority for title XI assistance.

Sec. 1015. Support for transfers of decommissioned vessels and shipboard equipment.

Sec. 1016. Advanced shipbuilding enterprise.

Sec. 1017. Report on Navy plans for basing aircraft carriers.

Sec. 1018. Limitation on disposal of obsolete naval vessel.
H. R. 1588—191

Subtitle C—Counterdrug Matters

Sec. 1021. Expansion and extension of authority to provide additional support for

counter-drug activities. Sec. 1022. Authority for joint task forces to provide support to law enforcement

agencies conducting counter-terrorism activities. Sec. 1023. Use of funds for unified counterdrug and counterterrorism campaign in

Colombia.

Sec. 1024. Sense of Congress on reconsideration of decision to terminate border and

seaport inspection duties of National Guard under National Guard drug

interdiction and counter-drug mission.

Subtitle D—Reports

Sec. 1031. Repeal and modification of various reporting requirements applicable to

the Department of Defense. Sec. 1032. Plan for prompt global strike capability.

Sec. 1033. Annual report concerning dismantling of strategic nuclear warheads.

Sec. 1034. Report on use of unmanned aerial vehicles for support of homeland security missions.

Subtitle E—Codifications, Definitions, and Technical Amendments

Sec. 1041. Codification and revision of defense counterintelligence polygraph program authority. Sec. 1042. General definitions applicable to facilities and operations of Department

of Defense.

Sec. 1043. Additional definitions for purposes of title 10, United States Code.

Sec. 1044. Inclusion of annual military construction authorization request in annual defense authorization request. Sec. 1045. Technical and clerical amendments.

Subtitle F—Other Matters

Sec. 1051. Assessment of effects of specified statutory limitations on the granting

of security clearances. Sec. 1052. Acquisition of historical artifacts through exchange of obsolete or surplus

property. Sec. 1053. Conveyance of surplus T–37 aircraft to Air Force Aviation Heritage

Foundation, Incorporated. Sec. 1054. Department of Defense biennial strategic plan for management of electromagnetic spectrum. Sec. 1055. Revision of Department of Defense directive relating to management and

use of radio frequency spectrum. Sec. 1056. Sense of Congress on deployment of airborne chemical agent monitoring

systems at chemical stockpile disposal sites in the United States. Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of United

States Fire Administration.

Sec. 1058. Review and enhancement of existing authorities for using Air Force and

Air National Guard Modular Airborne Fire-Fighting Systems and other

Department of Defense assets to fight wildfires.

Subtitle A—Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon determination by the Secretary of Defense that such action is necessary

in the national interest, the Secretary may transfer amounts of

authorizations made available to the Department of Defense in

this division for fiscal year 2004 between any such authorizations

for that fiscal year (or any subdivisions thereof). Amounts of

authorizations so transferred shall be merged with and be available

for the same purposes as the authorization to which transferred.

(2) The total amount of authorizations that the Secretary may

transfer under the authority of this section may not exceed

$2,500,000,000.

(b) LIMITATIONS.—The authority provided by this section to

transfer authorizations—

(1) may only be used to provide authority for items that

have a higher priority than the items from which authority

is transferred; and
H. R. 1588—192

(2) may not be used to provide authority for an item that

has been denied authorization by Congress.

(c) EFFECT ON AUTHORIZATION AMOUNTS.—A transfer made

from one account to another under the authority of this section

shall be deemed to increase the amount authorized for the account

to which the amount is transferred by an amount equal to the

amount transferred.

(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify

Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED

BUDGETS IN FISCAL YEAR 2004.

(a) FISCAL YEAR 2004 LIMITATION.—The total amount contributed by the Secretary of Defense in fiscal year 2004 for the commonfunded budgets of NATO may be any amount up to, but not in

excess of, the amount specified in subsection (b) (rather than the

maximum amount that would otherwise be applicable to those

contributions under the fiscal year 1998 baseline limitation).

(b) TOTAL AMOUNT.—The amount of the limitation applicable

under subsection (a) is the sum of the following:

(1) The amounts of unexpended balances, as of the end

of fiscal year 2003, of funds appropriated for fiscal years before

fiscal year 2004 for payments for those budgets.

(2) The amount specified in subsection (c)(1).

(3) The amount specified in subsection (c)(2).

(4) The total amount of the contributions authorized to

be made under section 2501.

(c) AUTHORIZED AMOUNTS.—Amounts authorized to be appropriated by titles II and III of this Act are available for contributions

for the common-funded budgets of NATO as follows: (1) Of the amount provided in section 201(1), $853,000

for the Civil Budget. (2) Of the amount provided in section 301(1), $207,125,000

for the Military Budget.

(d) DEFINITIONS.—For purposes of this section:

(1) COMMON-FUNDED BUDGETS OF NATO.—The term ‘‘common-funded budgets of NATO’’ means the Military Budget,

the Security Investment Program, and the Civil Budget of

the North Atlantic Treaty Organization (and any successor

or additional account or program of NATO).

(2) FISCAL YEAR 1998 BASELINE LIMITATION.—The term ‘‘fiscal year 1998 baseline limitation’’ means the maximum

annual amount of Department of Defense contributions for

common-funded budgets of NATO that is set forth as the annual

limitation in section 3(2)(C)(ii) of the resolution of the Senate

giving the advice and consent of the Senate to the ratification

of the Protocols to the North Atlantic Treaty of 1949 on the

Accession of Poland, Hungary, and the Czech Republic (as

defined in section 4(7) of that resolution), approved by the

Senate on April 30, 1998.

SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR

FISCAL YEAR 2003.

(a) DOD AND DOE AUTHORIZATIONS.—Amounts authorized to

be appropriated to the Department of Defense and the Department

of Energy for fiscal year 2003 in the Bob Stump National Defense

Authorization Act for Fiscal Year 2003 (Public Law 107–314) are

hereby adjusted, with respect to any such authorized amount, by
H. R. 1588—193

the amount by which appropriations pursuant to such authorization

are increased (by a supplemental appropriation) or decreased (by

a rescission), or both, or are increased by a transfer of funds,

pursuant to title I of Public Law 108–11.

(b) REPORT ON FISCAL YEAR 2003 TRANSFERS.—Not later than

30 days after the end of each fiscal quarter for which unexpended

balances of funds appropriated under title I of Public Law 108–

11 are available for the Department of Defense, the Secretary

of Defense shall submit to the congressional defense committees

a report stating, for each transfer of such funds during such fiscal

quarter of an amount provided for the Department of Defense

through a so-called ‘‘transfer account’’, including the Iraqi Freedom

Fund or any other similar account—

(1) the amount of the transfer;

(2) the appropriation account to which the transfer was

made; and

(3) the specific purpose for which the transferred funds

were used or are to be used.

SEC. 1004. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR

FISCAL YEAR 2004.

(a) DEPARTMENT OF DEFENSE AUTHORIZATIONS.—Amounts

authorized to be appropriated to the Department of Defense for

fiscal year 2004 in this Act are hereby increased, with respect

to any such amount, by the amount by which the corresponding

appropriation account of the Department of Defense for fiscal year

2004 is increased by a supplemental appropriation, or by a transfer

of funds, pursuant to title I of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and

Afghanistan, 2004.

(b) DESIGNATION AS EMERGENCY.—Amounts by which

authorizations of appropriations are increased in accordance with

subsection (a) are designated as emergency requirements pursuant

to section 502 of House Concurrent Resolution 95 of the 108th

Congress.

SEC. 1005. REESTABLISHMENT OF AUTHORITY FOR SHORT-TERM

LEASES OF REAL OR PERSONAL PROPERTY ACROSS

FISCAL YEARS.

(a) REESTABLISHMENT OF AUTHORITY.—Subsection (a) of section

2410a of title 10, United States Code, is amended—

(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of Defense’’;

(2) by striking ‘‘for procurement of severable services’’ and

inserting ‘‘for a purpose described in paragraph (2)’’; and

(3) by adding at the end the following new paragraph:

‘‘(2) The purpose of a contract described in this paragraph

is as follows:

‘‘(A) The procurement of severable services.

‘‘(B) The lease of real or personal property, including the

maintenance of such property when contracted for as part of

the lease agreement.’’.

(b) CLERICAL AMENDMENTS.—(1) The heading of such section

is amended to read as follows:
H. R. 1588—194

‘‘§ 2410a. Contracts for periods crossing fiscal years: severable service contracts; leases of real or personal

property’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 141 of such title is amended to read

as follows:

‘‘2410a. Contracts for periods crossing fiscal years: severable service contracts;

leases of real or personal property.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall not apply to funds appropriated for a fiscal year before fiscal

year 2004.

SEC. 1006. REIMBURSEMENT RATE FOR CERTAIN AIRLIFT SERVICES

PROVIDED TO DEPARTMENT OF STATE.

(a) AUTHORITY.—Subsection (a) of section 2642 of title 10,

United States Code, is amended—

(1) by striking ‘‘(a) AUTHORITY’’ and all that follows through

‘‘the Department of Defense’’ the second place it appears and

inserting the following:

‘‘(a) AUTHORITY.—The Secretary of Defense may authorize the

use of the Department of Defense reimbursement rate for military

airlift services provided by a component of the Department of

Defense as follows:

‘‘(1) For military airlift services provided’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) For military airlift services provided to the Department

of State for the transportation of armored motor vehicles to

a foreign country to meet requirements of the Department

of State for armored motor vehicles associated with the overseas

travel of the Secretary of State in that country.’’.

(b) CLERICAL AMENDMENTS.—(1) The heading for such section

is amended to read as follows:

‘‘§ 2642. Airlift services provided to certain other agencies:

use of Department of Defense reimbursement

rate’’.

(2) The item relating to such section in the table of sections

at the beginning of chapter 157 of such title is amended to read

as follows:

‘‘2642. Airlift services provided to certain other agencies: use of Department of Defense reimbursement rate.’’.

SEC. 1007. LIMITATION ON PAYMENT OF FACILITIES CHARGES

ASSESSED BY DEPARTMENT OF STATE.

(a) COSTS OF GOODS AND SERVICES PROVIDED TO DEPARTMENT

OF STATE.—Funds appropriated for the Department of Defense may

be transferred to the Department of State as remittance for a

fee charged to the Department of Defense by the Department of

State for any year for the maintenance, upgrade, or construction

of United States diplomatic facilities only to the extent that the

amount charged (when added to other amounts previously so

charged for that fiscal year) exceeds the total amount of the unreimbursed costs incurred by the Department of Defense during that

year in providing goods and services to the Department of State.

(b) EFFECTIVE DATE.—Subsection (a) shall take effect as of

October 1, 2003.
H. R. 1588—195

SEC. 1008. USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE

CYCLE COST REDUCTION INITIATIVES.

(a) FUNDS AVAILABLE FOR DEFENSE MODERNIZATION

ACCOUNT.—Section 2216 of title 10, United States Code, is

amended—

(1) by striking subsection (c);

(2) by redesignating subsection (b) as subsection (c); and

(3) by inserting after subsection (a) the following new subsection (b):

‘‘(b) FUNDS AVAILABLE FOR ACCOUNT.—The Defense Modernization Account shall consist of the following:

‘‘(1) Amounts appropriated to the Defense Modernization

Account for the costs of commencing projects described in subsection (d)(1), and amounts reimbursed to the Defense Modernization Account under subsections (c)(1)(B)(iii) out of savings

derived from such projects.

‘‘(2) Amounts transferred to the Defense Modernization

Account under subsection (c).’’.

(b) START-UP FUNDING.—Subsection (d) of such section is

amended—

(1) by striking ‘‘available from the Defense Modernization

Account pursuant to subsection (f) or (g)’’ and inserting ‘‘in

the Defense Modernization Account’’;

(2) by redesignating paragraphs (1) and (2) as paragraphs

(2) and (3), respectively; and

(3) by inserting after ‘‘purposes:’’ the following new paragraph (1):

‘‘(1) For paying the costs of commencing any project that,

in accordance with criteria prescribed by the Secretary of

Defense, is undertaken by the Secretary of a military department or the head of a Defense Agency or other element of

the Department of Defense to reduce the life cycle cost of

a new or existing system.’’.

(c) REIMBURSEMENT OF ACCOUNT OUT OF SAVINGS.—(1) Paragraph (1)(B) of subsection (c) of such section, as redesignated by

subsection (a)(2), is amended by adding at the end the following

new clause:

‘‘(iii) Unexpired funds in appropriations accounts that are

available for procurement or operation and maintenance of

a system, if and to the extent that savings are achieved for

such accounts through reductions in life cycle costs of such

system that result from one or more projects undertaken with

respect to such systems with funds made available from the

Defense Modernization Account under subsection (b)(1).’’.

(2) Paragraph (2) of such subsection is amended by inserting

‘‘, other than funds referred to in subparagraph (B)(iii) of such

paragraph,’’ after ‘‘Funds referred to in paragraph (1)’’.

(d) REGULATIONS.—Subsection (h) of such section is amended—

(1) by inserting ‘‘(1)’’ after ‘‘COMPTROLLER.—’’; and

(2) by adding at the end the following new paragraph

(2):

‘‘(2) The regulations prescribed under paragraph (1) shall, at

a minimum, provide for—

‘‘(A) the submission of proposals by the Secretaries concerned or heads of Defense Agencies or other elements of the

Department of Defense to the Comptroller for the use of Defense
H. R. 1588—196

Modernization Account funds for purposes set forth in subsection (d);

‘‘(B) the use of a competitive process for the evaluation

of such proposals and the selection of programs, projects, and

activities to be funded out of the Defense Modernization

Account from among those proposed for such funding; and

‘‘(C) the calculation of—

‘‘(i) the savings to be derived from projects described

in subsection (d)(1) that are to be funded out of the Defense

Modernization Account; and

‘‘(ii) the amounts to be reimbursed to the Defense

Modernization Account out of such savings pursuant to

subsection (c)(1)(B)(iii).’’.

(e) ANNUAL REPORT.—Subsection (i) of such section is

amended—

(1) by striking ‘‘QUARTERLY REPORTS.—(1) Not later than

15 days after the end of each calendar quarter,’’ and inserting

‘‘ANNUAL REPORT.—(1) Not later than 15 days after the end

of each fiscal year,’’; and

(2) in paragraph (1), by striking ‘‘quarter’’ in subparagraphs

(A), (B), and (C), and inserting ‘‘fiscal year’’.

(f) CODIFICATION AND EXTENSION OF EXPIRATION OF

AUTHORITY.—(1) Such section is further amended by adding at

the end the following new subsection:

‘‘(k) EXPIRATION OF AUTHORITY AND ACCOUNT.—(1) The

authority under subsection (c) to transfer funds into the Defense

Modernization Account terminates at the close of September 30,

2006.

‘‘(2) Three years after the termination date specified in paragraph (1), the Defense Modernization Account shall be closed and

any remaining balance in the account shall be canceled and thereafter shall not be available for any purpose.’’.

(2) Subsection (c) of section 912 of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106; 110

Stat. 410; 10 U.S.C. 2216 note) is repealed.

SEC. 1009. PROVISIONS RELATING TO DEFENSE TRAVEL CARDS.

(a) MANDATORY DISBURSEMENT OF TRAVEL ALLOWANCES

DIRECTLY TO TRAVEL CARD CREDITORS.—Section 2784a(a) of title

10, United States Code, is amended—

(1) in paragraph (1), by striking ‘‘The Secretary of Defense

may require’’ and inserting ‘‘The Secretary of Defense shall

require’’;

(2) by redesignating paragraph (2) as paragraph (3); and

(3) by inserting after paragraph (1) the following new paragraph (2):

‘‘(2) The Secretary of Defense may waive the requirement for

a direct payment to a travel care issuer under paragraph (1) in

any case the Secretary determines appropriate.’’.

(b) DETERMINATIONS OF CREDITWORTHINESS FOR ISSUANCE OF

DEFENSE TRAVEL CARD.—Section 2784a of title 10, United States

Code, is amended—

(1) by redesignating subsections (d) and (e) as subsections

(f) and (g), respectively; and

(2) by inserting after subsection (c) the following new subsection (d):
H. R. 1588—197

‘‘(d) DETERMINATIONS OF CREDITWORTHINESS FOR ISSUANCE OF

DEFENSE TRAVEL CARD.—(1) The Secretary of Defense shall

evaluate the creditworthiness of an employee of the Department

of Defense or a member of armed forces before issuing a Defense

travel card to such an employee or member. The evaluation may

include an examination of the individual’s credit history in available

credit records.

‘‘(2) An individual may not be issued a Defense travel card

if the individual is found not creditworthy as a result of the evaluation required under paragraph (1).’’.

(c) DISCIPLINARY ACTIONS AND ASSESSING PENALTIES FOR MISUSE

OF DEFENSE TRAVEL CARDS.—

(1) REQUIREMENT FOR REGULATIONS.—Section 2784a of title

10, United States Code, is further amended by inserting after

subsection (d) (as added by subsection (b)) the following new

subsection (e):

‘‘(e) REGULATIONS ON DISCIPLINARY ACTION.—(1) The Secretary

of Defense shall prescribe regulations for making determinations

regarding the taking of disciplinary action, including assessment

of penalties, against Department of Defense personnel for improper,

fraudulent, or abusive use of Defense travel cards by such personnel.

‘‘(2) The regulations prescribed under paragraph (1) shall—

‘‘(A) provide for appropriate adverse personnel actions or

other punishment to be imposed in cases in which employees

of the Department of Defense violate such regulations or are

negligent or engage in misuse, abuse, or fraud with respect

to a Defense travel card, including removal in appropriate

cases; and

‘‘(B) provide that a violation of such regulations by a person

subject to chapter 47 of this title (the Uniform Code of Military

Justice) is punishable as a violation of section 892 of this

title (article 92 of the Uniform Code of Military Justice).’’.

(2) REPORT.—Not later than February 1, 2004, the Secretary of Defense shall submit to the Committees on Armed

Services of the Senate and the House of Representatives a

report on the regulations prescribed under section 2784a(e)

of title 10, United States Code, as added by paragraph (1).

The report shall include the following:

(A) The regulations.

(B) A discussion of the implementation of the regulations.

(C) A discussion of any additional administrative

action, or any recommended legislation, that the Secretary

considers necessary to effectively take disciplinary action

against and penalize Department of Defense personnel for

improper, fraudulent, or abusive use of Defense travel cards

by such personnel.

(3) DEFENSE TRAVEL CARD DEFINED.—In this subsection,

the term ‘‘Defense travel card’’ has the meaning given such

term in section 2784a(f)(1) of title 10, United States Code

(as redesignated by subsection (b)).
H. R. 1588—198

Subtitle B—Naval Vessels and Shipyards

SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESERVATION OF

SURGE CAPABILITY FOR NAVAL SURFACE COMBATANTS.

(a) REPEAL.—Section 7296 of title 10, United States Code, is

amended by striking subsection (b).

(b) CLERICAL AMENDMENTS.—Such section is further amended—

(1) by striking ‘‘(3) Any notification under paragraph (1)(A)’’

and inserting ‘‘(b) CONTENT OF NOTIFICATION.—Any notification

under subsection (a)(1)(A)’’;

(2) by redesignating subparagraphs (A), (B), and (C) of

subsection (b) (as redesignated by paragraph (1)) as paragraphs

(1), (2), and (3), respectively; and

(3) by striking ‘‘subparagraph (B)’’ in subsection (b)(3) (as

redesignated by paragraphs (1) and (2)) and inserting ‘‘paragraph (2)’’.

SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO USE FOR

EXPERIMENTAL PURPOSES OF VESSELS STRICKEN FROM

NAVAL VESSEL REGISTER.

(a) ENVIRONMENTAL REMEDIATION.—Paragraph (1) of subsection

(b) of section 7306a of title 10, United States Code, is amended—

(1) by inserting ‘‘AND ENVIRONMENTAL REMEDIATION OF’’

in the subsection heading after ‘‘STRIPPING’’; and

(2) by inserting before the period at the end the following:

‘‘and such environmental remediation of the vessel as is

required for the use of the vessel for experimental purposes’’.

(b) SALE OF MATERIAL AND EQUIPMENT STRIPPED FROM

VESSEL.—Subsection (b) of such section is further amended—

(1) by redesignating paragraph (2) as paragraph (3);

(2) by inserting after paragraph (1) the following new paragraph (2):

‘‘(2) Material and equipment stripped from a vessel under paragraph (1) may be sold by the contractor or by a sales agent approved

by the Secretary.’’; and

(3) in paragraph (3), as redesignated by paragraph (1),

by striking ‘‘scrapping services’’ and all that follows through

the end of such subsection and inserting ‘‘services needed for

such stripping and for environmental remediation required for

the use of the vessel for experimental purposes. Amounts

received in excess of amounts needed for reimbursement of

those costs shall be deposited into the account from which

the stripping and environmental remediation expenses were

incurred and shall be available for stripping and environmental

remediation of other vessels to be used for experimental purposes.’’.

(c) CLARIFICATION OF COVERED EXPERIMENTAL PURPOSES.—

Such section is further amended by adding at the end the following

new subsection:

‘‘(c) USE FOR EXPERIMENTAL PURPOSES DEFINED.—In this section, the term ‘use for experimental purposes’, with respect to

a vessel, includes use of the vessel in a Navy sink exercise or

for target purposes.’’.
H. R. 1588—199

SEC. 1013. TRANSFER OF VESSELS STRICKEN FROM THE NAVAL

VESSEL REGISTER FOR USE AS ARTIFICIAL REEFS.

(a) AUTHORITY TO MAKE TRANSFER.—Chapter 633 of title 10,

United States Code, is amended by inserting after section 7306a

the following new section:

‘‘§ 7306b. Vessels stricken from Naval Vessel Register:

transfer by gift or otherwise for use as artificial

reefs

‘‘(a) AUTHORITY TO MAKE TRANSFER.—The Secretary of the

Navy may transfer, by gift or otherwise, any vessel stricken from

the Naval Vessel Register to any State, Commonwealth, or possession of the United States, or any municipal corporation or political

subdivision thereof, for use as provided in subsection (b).

‘‘(b) VESSEL TO BE USED AS ARTIFICIAL REEF.—An agreement

for the transfer of a vessel under subsection (a) shall require that—

‘‘(1) the recipient use, site, construct, monitor, and manage

the vessel only as an artificial reef in accordance with the

requirements of the National Fishing Enhancement Act of 1984

(33 U.S.C. 2101 et seq.), except that the recipient may use

the artificial reef to enhance diving opportunities if that use

does not have an adverse effect on fishery resources (as that

term is defined in section 2(14) of the Magnuson-Stevens

Fishery Conservation and Management Act (16 U.S.C.

1802(14)); and

‘‘(2) the recipient obtain, and bear all responsibility for

complying with, applicable Federal, State, interstate, and local

permits for using, siting, constructing, monitoring, and managing the vessel as an artificial reef.

‘‘(c) PREPARATION OF VESSEL FOR USE AS ARTIFICIAL REEF.—

The Secretary shall ensure that the preparation of a vessel transferred under subsection (a) for use as an artificial reef is conducted

in accordance with—

‘‘(1) the environmental best management practices developed pursuant to section 3504(b) of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003 (Public Law

107–314; 16 U.S.C. 1220 note); and

‘‘(2) any applicable environmental laws.

‘‘(d) COST SHARING.—The Secretary may share with the

recipient of a vessel transferred under subsection (a) any costs

associated with transferring the vessel under that subsection,

including costs of the preparation of the vessel under subsection

(c).

‘‘(e) NO LIMITATION ON NUMBER OF VESSELS TRANSFERABLE

TO PARTICULAR RECIPIENT.—A State, Commonwealth, or possession

of the United States, or any municipal corporation or political

subdivision thereof, may be the recipient of more than one vessel

transferred under subsection (a).

‘‘(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

a transfer authorized by subsection (a) as the Secretary considers

appropriate.

‘‘(g) CONSTRUCTION.—Nothing in this section shall be construed

to establish a preference for the use as artificial reefs of vessels

stricken from the Naval Vessel Register in lieu of other authorized

uses of such vessels, including the domestic scrapping of such
H. R. 1588—200

vessels, or other disposals of such vessels, under this chapter or

other applicable authority.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 7306a the following new item:

‘‘7306b. Vessels stricken from Naval Vessel Register: transfer by gift or otherwise

for use as artificial reefs.’’.

SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.

(a) IN GENERAL.—Section 1103 of the Merchant Marine Act,

1936 (46 U.S.C. App. 1273) is amended—

(1) in subsection (i) (as added by section 3544 of this

Act) by striking ‘‘PRIORITY’’and inserting ‘‘PRIORITY FOR

NATIONAL DEFENSE TANK VESSELS’’; and

(2) by adding at the end the following:

‘‘(j) PRIORITY FOR OTHER VESSELS SUITABLE FOR SERVICE AS

A NAVAL AUXILIARY.—In guaranteeing and entering commitments

to guarantee under this section, the Secretary shall, after applying

subsection (i), give priority to a guarantee or commitment for a

vessel that is otherwise eligible for a guarantee under this section

and that the Secretary of Defense determines—

‘‘(1) is suitable for service as a naval auxiliary in time

of war or national emergency; and

‘‘(2) meets a shortfall in sealift capacity or capability.’’.

(b) REPORT.—Within 180 days after the date of the enactment

of this Act, the Secretary of Transportation and the Secretary

of Defense shall transmit a report to the Senate Committee on

Armed Services, the Senate Committee on Commerce, Science, and

Transportation, and the House of Representatives Committee on

Armed Services that—

(1) sets forth the criteria to be used by the Secretary

of Defense in making, for purposes of section 1103(j) of the

Merchant Marine Act, 1936 (46 U.S.C. App. 1273(j)), as

amended by this section, the determinations described in paragraphs (1) and (2) of that section; and

(2) describes the procedure that the Secretary of Defense

will follow—

(A) in reviewing applications for which priority treatment is sought under section 1103(j) of that Act; and

(B) in reporting to the Secretary of Transportation

with respect to such applications.

SEC. 1015. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS

AND SHIPBOARD EQUIPMENT.

(a) IN GENERAL.—Chapter 633 of title 10, United States Code,

is amended by adding at the end the following new section:

‘‘§ 7316. Support for transfers of decommissioned vessels and

shipboard equipment

‘‘(a) AUTHORITY TO PROVIDE ASSISTANCE.—The Secretary of

the Navy may provide an entity described in subsection (b) with

assistance in support of a transfer of a vessel or shipboard equipment described in such subsection that is being executed under

section 2572, 7306, 7307, or 7545 of this title, or under any other

authority. ‘‘(b) COVERED VESSELS AND EQUIPMENT.—The authority under

this section applies—
H. R. 1588—201

‘‘(1) in the case of a decommissioned vessel that—

‘‘(A) is owned and maintained by the Navy, is located

at a Navy facility, and is not in active use; and

‘‘(B) is being transferred to an entity designated by

the Secretary of the Navy or by law to receive transfer

of the vessel; and

‘‘(2) in the case of any shipboard equipment that—

‘‘(A) is on a vessel described in paragraph (1)(A); and

‘‘(B) is being transferred to an entity designated by

the Secretary of the Navy or by law to receive transfer

of the equipment.

‘‘(c) REIMBURSEMENT.—The Secretary may require a recipient

of assistance under subsection (a) to reimburse the Navy for

amounts expended by the Navy in providing the assistance.

‘‘(d) DEPOSIT OF FUNDS RECEIVED.—Funds received in a fiscal

year under subsection (c) shall be credited to the appropriation

available for such fiscal year for operation and maintenance for

the office of the Navy managing inactive ships, shall be merged

with other sums in the appropriation that are available for such

office, and shall be available for the same purposes and period

as the sums with which merged.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end the following

new item:

‘‘7316. Support for transfers of decommissioned vessels and shipboard equipment.’’.

SEC. 1016. ADVANCED SHIPBUILDING ENTERPRISE.

(a) FINDINGS.—Congress makes the following findings:

(1) The President’s budget for fiscal year 2004, as submitted

to Congress, includes $10,300,000 for the Advanced Shipbuilding Enterprise of the National Shipbuilding Research Program.

(2) The Advanced Shipbuilding Enterprise is an innovative

program to encourage greater efficiency among shipyards in

the defense industrial base.

(3) The leaders of the Nation’s shipbuilding industry have

embraced the Advanced Shipbuilding Enterprise as a method

of exploring and collaborating on innovation in shipbuilding

and ship repair that collectively benefits all manufacturers

in the industry.

(b) SENSE OF THE CONGRESS.—It is the sense of the Congress

that—

(1) the Congress strongly supports the innovative Advanced

Shipbuilding Enterprise of the National Shipbuilding Research

Program that has yielded new processes and techniques to

reduce the cost of building and repairing ships in the United

States;

(2) the Congress is concerned that the future-years defense

program submitted to Congress for fiscal year 2004 does not

reflect any funding for the Advanced Shipbuilding Enterprise

after fiscal year 2004; and

(3) the Secretary of Defense and the Secretary of the Navy

should continue funding the Advanced Shipbuilding Enterprise

at a sustaining level through the future-years defense program

to support subsequent rounds of research that reduce the cost

of designing, building, and repairing ships.
H. R. 1588—202

SEC. 1017. REPORT ON NAVY PLANS FOR BASING AIRCRAFT CARRIERS.

(a) FINDINGS.—Congress finds that— (1) the Committee on Armed Services of the Senate, in

its report to accompany the bill S. 2514 of the 107th Congress

(Senate Report 107–151, filed May 15, 2002), at page 442

of that report directed that the Chief of Naval Operations

submit to the congressional defense committees, not later than

180 days after enactment of the defense authorization Act

for fiscal year 2003, a report on plans of the Navy for basing

aircraft carriers through 2015;

(2) the Bob Stump National Defense Authorization Act

for Fiscal Year 2003 (Public Law 107–314) was enacted on

December 2, 2002; and

(3) as of October 24, 2003, the Chief of Naval Operations

has not submitted the report referred to in paragraph (1).

(b) REPORT ON AIRCRAFT CARRIER BASING PLANS.—Not later

than 120 days after the date of the enactment of this Act, the

Secretary of Defense shall submit to the congressional defense

committees a report on plans of the Navy for basing aircraft carriers

through 2020.

SEC. 1018. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

The Secretary of the Navy may not dispose of the decommissioned destroyer ex-Forrest Sherman (DD–931) before October 1,

2004, to an entity that is not a nonprofit organization unless the

Secretary first determines that there is no nonprofit organization

that meets the criteria for donation of that vessel under section

7306(a)(3) of title 10, United States Code.

Subtitle C—Counterdrug Matters

SEC. 1021. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE

ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES.

(a) GENERAL EXTENSION OF AUTHORITY.—Subsection (a) of section 1033 of the National Defense Authorization Act for Fiscal

Year 1998 (Public Law 105–85; 111 Stat. 1881) is amended—

(1) by inserting ‘‘(1)’’ before ‘‘Subject to’’;

(2) by striking ‘‘either or both’’ and inserting ‘‘any’’; and

(3) by inserting after the second sentence the following

new paragraph:

‘‘(2) The authority to provide support to a government under

this section expires September 30, 2006.’’.

(b) ADDITIONAL GOVERNMENTS ELIGIBLE TO RECEIVE SUPPORT.—Subsection (b) of such section is amended by adding at

the end the following new paragraphs:

‘‘(3) The Government of Afghanistan.

‘‘(4) The Government of Bolivia.

‘‘(5) The Government of Ecuador.

‘‘(6) The Government of Pakistan.

‘‘(7) The Government of Tajikistan.

‘‘(8) The Government of Turkmenistan.

‘‘(9) The Government of Uzbekistan.’’.

(c) TYPES OF SUPPORT.—Subsection (c) of such section is

amended—

(1) in paragraph (2), by striking ‘‘riverine’’; and

(2) in paragraph (3), by inserting ‘‘or upgrade’’ after ‘‘maintenance and repair’’.
H. R. 1588—203

(d) MAXIMUM ANNUAL AMOUNT OF SUPPORT.—Subsection (e)(2)

of such section is amended by striking ‘‘$20,000,000 during any

of the fiscal years 1999 through 2006’’ and inserting ‘‘$20,000,000

during any of the fiscal years 1999 through 2003, or $40,000,000

during any of the fiscal years 2004 through 2006’’.

(e) COUNTER-DRUG PLAN.—(1) Subsection (h) of such section

is amended—

(A) in the subsection caption, by striking ‘‘RIVERINE’’;

(B) in the matter preceding paragraph (1)—

(i) by striking ‘‘fiscal year 1998’’ and inserting ‘‘fiscal

year 2004’’; and

(ii) by striking ‘‘riverine’’; and

(C) by striking ‘‘riverine’’ each place it appears in paragraphs (2), (7), (8), and (9).

(2) Subsection (f)(2)(A) of such section is amended by striking

‘‘riverine’’.

(f) CLERICAL AND CONFORMING AMENDMENTS.—(1) Subsection

(b) of such section is further amended—

(A) in paragraph (1), by striking ‘‘, for fiscal years 1998

through 2002’’; and

(B) in paragraph (2), by striking ‘‘, for fiscal years 1998

through 2006’’.

(2) The heading for such section is amended by striking ‘‘PERU

AND COLOMBIA’’ and inserting ‘‘OTHER COUNTRIES’’.

SEC. 1022. AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING

COUNTER-TERRORISM ACTIVITIES.

(a) AUTHORITY.—A joint task force of the Department of Defense

that provides support to law enforcement agencies conducting

counter-drug activities may also provide, subject to all applicable

laws and regulations, support to law enforcement agencies conducting counter-terrorism activities.

(b) CONDITIONS.—Any support provided under subsection (a)

may only be provided in the geographic area of responsibility of

the joint task force.

SEC. 1023. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND

COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

(a) AUTHORITY.—(1) In fiscal year 2004, funds available to

the Department of Defense to provide assistance to the Government

of Colombia may be used by the Secretary of Defense to support

a unified campaign by the Government of Colombia against narcotics trafficking and against activities by organizations designated

as terrorist organizations, such as the Revolutionary Armed Forces

of Colombia (FARC), the National Liberation Army (ELN), and

the United Self-Defense Forces of Colombia (AUC).

(2) The authority to provide assistance for a campaign under

this subsection includes authority to take actions to protect human

health and welfare in emergency circumstances, including the

undertaking of rescue operations.

(b) APPLICABILITY OF CERTAIN LAWS AND LIMITATIONS.—The

use of funds pursuant to the authority in subsection (a) shall

be subject to the following:

(1) Sections 556, 567, and 568 of the Foreign Operations,

Export Financing, and Related Programs Appropriations Act,

2002 (Public Law 107–115; 115 Stat. 2160, 2165, and 2166).
H. R. 1588—204

(2) Section 8077 of the Department of Defense Appropriations Act, 2004 (Public Law 108–87; 115 Stat. 2267).

(3) The numerical limitations on the number of United

States military personnel and United States individual civilian

contractors in section 3204(b)(1) of the Emergency Supplemental Act, 2000 (division B of Public Law 106–246; 114 Stat.

575), as amended by the Foreign Operations, Export Financing,

and Related Programs Appropriations Act, 2002 (Public Law

107–115; 115 Stat. 2131).

(c) LIMITATION ON PARTICIPATION OF UNITED STATES PERSONNEL.—No United States Armed Forces personnel, United States

civilian employees, or United States civilian contractor personnel

employed by the United States may participate in any combat

operation in connection with assistance using funds pursuant to

the authority in subsection (a), except for the purpose of acting

in self defense or of rescuing any United States citizen, including

any United States Armed Forces personnel, United States civilian

employee, or civilian contractor employed by the United States.

(d) RELATION TO OTHER AUTHORITY.—The authority provided

by subsection (a) is in addition to any other authority in law

to provide assistance to the Government of Colombia.

SEC. 1024. SENSE OF CONGRESS ON RECONSIDERATION OF DECISION

TO TERMINATE BORDER AND SEAPORT INSPECTION

DUTIES OF NATIONAL GUARD UNDER NATIONAL GUARD

DRUG INTERDICTION AND COUNTER-DRUG MISSION.

(a) FINDINGS.—Congress makes the following findings:

(1) The counter-drug inspection mission of the National

Guard is highly important in preventing the entry of illegal

narcotics into the United States.

(2) The expertise of members of the National Guard in

conducting vehicle inspections at United States borders and

seaports has contributed to the identification and seizure of

illegal narcotics being smuggled into the United States.

(3) The support provided by the National Guard to the

United States Customs Service and the Bureau of Border Security of the Department of Homeland Security greatly enhances

the capability of these agencies to perform counter-terrorism

surveillance and other border protection duties.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the Secretary of Defense should reconsider the decision of the

Department of Defense to terminate the border inspection and

seaport inspection duties of the National Guard as part of the

drug interdiction and counter-drug mission of the National Guard.

Subtitle D—Reports

SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING

REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF

DEFENSE.

(a) TITLE 10, UNITED STATES CODE.—Title 10, United States

Code, is amended as follows:

(1) Section 117(e) is amended by striking ‘‘each month’’ and all that follows through ‘‘subsection (d)’’ and inserting ‘‘each quarter submit to the congressional defense committees

a report in writing containing the results of the most recent

joint readiness review under subsection (d)(1)(A)’’.
H. R. 1588—205

(2) Section 127(d) is amended to read as follows:

‘‘(d) ANNUAL REPORT.—Not later than December 1 each year,

the Secretary of Defense shall submit to the congressional defense

committees a report on expenditures during the preceding fiscal

year under subsections (a) and (b).’’.

(3) Section 127a is amended by striking subsection (d).

(4) Section 128 is amended by striking subsection (d).

(5) Section 226(a) is amended—

(A) by striking ‘‘December 15’’ and inserting ‘‘January

15’’; and

(B) by striking ‘‘in the following year’’ in paragraph

(1) and inserting ‘‘in that year’’.

(6)(A) Section 228 is amended—

(i) in subsection (a)—

(I) by striking ‘‘MONTHLY’’ in the subsection

heading and inserting ‘‘QUARTERLY’’;

(II) by striking ‘‘monthly’’ and inserting ‘‘quarterly’’; and

(III) by striking ‘‘month’’ and inserting ‘‘fiscal-year

quarter’’; and

(ii) in subsection (c), by striking ‘‘month’’ each place

it appears and inserting ‘‘quarter’’.

(B)(i) The heading of such section is amended to read

as follows:

‘‘§ 228. Quarterly reports on allocation of funds within operation and maintenance budget subactivities’’.

(ii) The item relating to section 228 in the table of sections

at the beginning of chapter 9 is amended to read as follows:

‘‘228. Quarterly reports on allocation of funds within operation and maintenance

budget subactivities.’’.

(7) Section 437 is amended—

(A) by striking the second sentence of subsection (b);

and

(B) in subsection (c)—

(i) by striking ‘‘report)—’’ in the matter preceding

paragraph (1) and inserting ‘‘report) the following:’’;

(ii) by striking ‘‘a’’ in paragraphs (1), (2), and (3)

after the paragraph designation and inserting ‘‘A’’;

(iii) by striking the semicolon at the end of paragraph (1) and inserting a period;

(iv) by striking ‘‘; and’’ at the end of paragraph

(2) and inserting a period; and

(v) by adding at the end the following new paragraph:

‘‘(4) A description of each corporation, partnership, or other

legal entity that was established.’’.

(8)(A) Section 520c is amended—

(i) by striking subsection (b);

(ii) by striking ‘‘(a) PROVISION OF MEALS AND REFRESHMENTS.—’’; and

(iii) by striking the heading for such section and

inserting the following:
H. R. 1588—206

‘‘§ 520c. Recruiting functions: provision of meals and refreshments’’.

(B) The item relating to such section in the table of sections

at the beginning of chapter 31 is amended to read as follows:

‘‘520c. Recruiting functions: provision of meals and refreshments.’’.

(9) Section 1060 is amended by striking subsection (d).

(10)(A) Section 1130 is amended— (i) in subsection (a), by striking ‘‘and the other determinations necessary to comply with subsection (b)’’; and

(ii) in subsection (b), by striking ‘‘to the requesting’’ and all that follows and inserting ‘‘to the requesting

Member of Congress a detailed discussion of the rationale

supporting the determination.’’. (B) The heading for such section, and the item relating

to such section in the table of sections at the beginning of

chapter 57, are each amended by striking the last two words.

(11)(A) Section 1563 is amended— (i) in subsection (a), by striking ‘‘and the other determinations necessary to comply with subsection (b)’’; and

(ii) in subsection (b), by striking ‘‘notice in writing’’ and all that follows and inserting ‘‘a detailed discussion

of the rationale supporting the determination.’’. (B) The heading for such section, and the item relating

to such section in the table of sections at the beginning of

chapter 80, are each amended by striking the last two words.

(12) Section 2224 is amended by striking subsection (e).

(13) Section 2255(b) is amended— (A) by striking paragraph (2);

(B) by striking ‘‘(1)’’ after ‘‘(b) EXCEPTION.—’’;

(C) by redesignating subparagraphs (A) and (B) as

paragraphs (1) and (2), respectively; and

(D) by redesignating clauses (i), (ii), and (iii) of paragraph (1), as redesignated by subparagraph (C), as subparagraphs (A), (B), and (C), respectively.

(14) Section 2282 is amended by inserting ‘‘through 2008’’

after ‘‘March 1 of each year’’.

(15) Section 2323(i) is amended by striking paragraph (3).

(16) Section 2327(c)(1) is amended—

(A) in subparagraph (A), by striking ‘‘after the date

on which such head of an agency submits to Congress

a report on the contract’’ and inserting ‘‘if in the best

interests of the Government’’;

(B) in subparagraph (B), by striking ‘‘A report under

subparagraph (A)’’ and inserting ‘‘The Secretary shall maintain records of each contract entered into by reason of

subparagraph (A). Such records’’; and

(C) by striking subparagraph (C).

(17) Section 2350a is amended by striking subsection (f).

(18) Section 2350j(e)(2) is amended by inserting before the

period the following: ‘‘or, if earlier, the end of the 14-day period

beginning on the date on which a copy of that report is provided

in an electronic medium pursuant to section 480 of this title’’.

(19) Section 2371(h) is amended by adding at the end

the following new paragraph:

‘‘(3) No report is required under this subsection for a fiscal

year after fiscal year 2006.’’.
H. R. 1588—207

(20) Section 2374a(e) is amended by inserting ‘‘during

which one or more prizes are awarded under the program

under subsection (a)’’ in the first sentence after ‘‘each fiscal

year’’.

(21) Section 2410m(c) is amended—

(A) by striking ‘‘REPORTING REQUIREMENT.—Each year’’

and inserting ‘‘ANNUAL REPORT.—Not later than 60 days

after the end of each fiscal year’’;

(B) by inserting ‘‘at the end of such fiscal year’’ in

paragraph (1) before the period;

(C) by striking ‘‘during the year preceding the year

in which the report is submitted’’ in paragraph (2) and

inserting ‘‘under this section during that fiscal year’’;

(D) by striking ‘‘in such preceding year’’ in paragraph

(3) and inserting ‘‘under this section during that fiscal

year’’; and

(E) by striking ‘‘in such preceding year’’ in paragraph

(4) and inserting ‘‘under this section during that fiscal

year’’.

(22) Section 2457 is amended by striking subsection (d).

(23) Section 2515(d) is amended—

(A) by striking ‘‘ANNUAL’’ in the subsection heading

and inserting ‘‘BIENNIAL’’; and

(B) in paragraph (1)—

(i) in the first sentence, by striking ‘‘an annual

report’’ and inserting ‘‘a biennial report’’;

(ii) in the second sentence, by striking ‘‘each year’’

and inserting ‘‘each even-numbered year’’; and

(iii) in the third sentence, by striking ‘‘during the

fiscal year’’ and inserting ‘‘during the two fiscal years’’.

(24) Section 2521 is amended by striking subsection (e).

(25) Section 2541d is amended—

(A) by striking subsection (b); and

(B) in subsection (a), by striking ‘‘(a)’’ and all that

follows through ‘‘The Secretary of Defense’’ and inserting

‘‘The Secretary of Defense’’.

(26) Section 2645 is amended—

(A) in subsection (d)—

(i) by striking ‘‘to Congress’’ and all that follows

through ‘‘notification of the loss’’ in paragraph (1) and

inserting ‘‘to Congress notification of the loss’’;

(ii) by striking ‘‘loss; and’’ and inserting ‘‘loss.’’;

and

(iii) by striking paragraph (2); and

(B) by striking subsection (g).

(27) Section 2662 is amended—

(A) in subsection (a)—

(i) by redesignating paragraphs (1) through (6)

as subparagraphs (A) through (F), respectively, and

by designating the sentences following subparagraph

(F), as so redesignated, as paragraph (2);

(ii) in paragraph (2), as so designated, by striking

‘‘clause (1) or (2)’’ and inserting ‘‘subparagraph (A)

or (B) of paragraph (1)’’ and by striking ‘‘clause (5)’’

and inserting ‘‘subparagraph (E)’’;

(iii) by inserting ‘‘(1)’’ before ‘‘The Secretary’’;
H. R. 1588—208

(iv) by striking ‘‘after the expiration of 30 days’’

and all that follows through ‘‘is submitted’’ and

inserting ‘‘the Secretary submits a report, subject to

paragraph (3),’’;

(v) by striking ‘‘$500,000’’ each place it appears

and inserting ‘‘$750,000’’; and

(vi) by adding at the end the following new paragraphs:

‘‘(3) The authority of the Secretary of a military department

to enter into a transaction described in paragraph (1) commences

only after—

‘‘(A) the end of the 30-day period beginning on the first

day of the month with respect to which the report containing

the facts concerning such transaction, and all other such proposed transactions for that month, is submitted under paragraph (1); or

‘‘(B) the end of the 14-day period beginning on the first

day of that month when a copy of the report is provided in

an electronic medium pursuant to section 480 of this title

on or before the first day of that month.

‘‘(4) The report for a month under this subsection may not

be submitted later than the first day of that month.’’;

(B) in subsection (b), by striking ‘‘more than’’ and all

that follows through ‘‘$500,000’’ and inserting ‘‘more than

$250,000, but not more than $750,000’’; and

(C) in subsection (e)—

(i) by striking ‘‘$500,000’’ and inserting ‘‘$750,000’’;

and

(ii) by striking ‘‘the expiration’’ and all that follows

through the period at the end and inserting the following: ‘‘the end of the 30-day period beginning on

the date on which a report of the facts concerning

the proposed occupancy is submitted to the congressional committees named in subsection (a) or, if earlier,

the end of the 14-day period beginning on the date

on which a copy of the report is provided in an electronic medium pursuant to section 480 of this title.’’.

(28) Section 2667a(c)(2) is amended—

(A) by striking ‘‘Not later than 45 days before’’ and

inserting ‘‘Before’’; and

(B) by adding at the end the following new sentence:

‘‘The Secretary may then enter into the lease only after

the end of the 30-day period beginning on the date on

which the report is submitted or, if earlier, the end of

the 14-day period beginning on the date on which a copy

of the report is provided in an electronic medium pursuant

to section 480 of this title.’’.

(29) Section 2672a is amended—

(A) in subsection (a)(1), by striking ‘‘he or his designee’’

and inserting ‘‘the Secretary’’;

(B) in subsection (b), by striking the last sentence;

and

(C) by adding at the end the following new subsection:

‘‘(c) Not later than 10 days after the date on which the Secretary

of a military department determines to acquire an interest in land

under the authority of this section, the Secretary shall submit
H. R. 1588—209

to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives written

notice containing a description of the property and interest to

be acquired and the reasons for the acquisition.’’.

(30) Section 2676(d) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

over sooner, a period of 14 days elapses from the date on

which a copy of that notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(31) Section 2680 is amended by striking subsection (e).

(32) Section 2688(e) is amended to read as follows:

‘‘(e) QUARTERLY REPORT.—Not later than 30 days after the

end of each quarter of a fiscal year, the Secretary shall submit

to the congressional defense committees a report on the conveyances

made under subsection (a) during such fiscal quarter. The report

shall include, for each such conveyance, an economic analysis (based

upon accepted life-cycle costing procedures approved by the Secretary of Defense) demonstrating that—

‘‘(1) the long-term economic benefit of the conveyance to

the United States exceeds the long-term economic cost of the

conveyance to the United States; and

‘‘(2) the conveyance will reduce the long-term costs of the

United States for utility services provided by the utility system

concerned.’’.

(33) Section 2696 is amended—

(A) in subsection (b)—

(i) in paragraph (1), by inserting ‘‘and Congress’’

after ‘‘the Secretary concerned’’ the second place it

appears; and

(ii) in paragraph (2), by inserting ‘‘and Congress’’

after ‘‘the Secretary concerned’’ the first place it

appears;

(B) by striking subsection (c); and

(C) by striking subsection (d) and inserting the following new subsection (d):

‘‘(d) EFFECT OF SUBMISSION OF NOTICE.—If the Administrator

of General Services submits notice under subsection (b)(1) that

further Federal use of a parcel of real property is requested by

a Federal agency, the Secretary concerned may not proceed with

the conveyance of the real property as provided in the provision

of law authorizing or requiring the conveyance until the end of

the 180-day period beginning on the date on which the notice

is submitted to Congress.’’.

(34) Section 2803(b) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the seven-day period beginning on the date

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(35) Section 2804(b) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the 14-day period beginning on the date

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(36) Section 2805(b)(2) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the 14-day period beginning on the date
H. R. 1588—210

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(37) Section 2807 is amended—

(A) in subsection (b)—

(i) by striking ‘‘$500,000’’ and inserting

‘‘$1,000,000’’;

(ii) by striking ‘‘not less than 21 days’’; and

(iii) by adding at the end the following new sentence: ‘‘The Secretary may then obligate funds for such

services only after the end of the 21-day period beginning on the date on which the notification is received

by the committees or, if earlier, the end of the 14-

day period beginning on the date on which a copy

of the report is provided in an electronic medium

pursuant to section 480 of this title.’’; and

(B) in subsection (c)(2), by inserting before the period

at the end the following: ‘‘or, if over sooner, a period of

14 days has elapsed from the date on which a copy of

the report is provided in an electronic medium pursuant

to section 480 of this title’’.

(38) Section 2809(f)(2) is amended—

(A) by striking ‘‘calendar’’; and

(B) by inserting before the period at the end the following: ‘‘or, if over sooner, a period of 14 days has expired

following the date on which a copy of the justification

and economic analysis are provided in an electronic medium

pursuant to section 480 of this title’’.

(39) Section 2812(c)(1)(B) is amended by inserting before

the period at the end the following: ‘‘or, if over sooner, a

period of 14 days has expired following the date on which

a copy of the justification and economic analysis are provided

in an electronic medium pursuant to section 480 of this title’’. (40) Section 2813(c) is amended— (A) by striking ‘‘the end of the 30-day period beginning

on the date’’; and

(B) by adding at the end the following new sentence: ‘‘After the notification is transmitted, the Secretary may

then enter into the contract only after the end of the

30-day period beginning on the date on which the notification is received by the committees or, if earlier, the end

of the 21-day period beginning on the date on which a

copy of the report is provided in an electronic medium

pursuant to section 480 of this title.’’. (41) Section 2825 is amended— (A) in subsection (b)(1)—

(i) by striking ‘‘(i)’’ in the last sentence; and

(ii) by striking ‘‘, and (ii)’’ and all that follows

and inserting a period and the following new sentence:

‘‘If the Secretary concerned makes a determination

under the preceding sentence with respect to an

improvement, the waiver under that sentence with

respect to that improvement may take effect only after

the Secretary transmits a notice of the proposed

waiver, together with an economic analysis demonstrating that the improvement will be cost effective,

to the appropriate committees of Congress and a period

of 21 days has elapsed after the date on which the
H. R. 1588—211

notification is received by those committees or, if over

sooner, a period of 14 days has elapsed after the date

on which a copy of the notice is provided in an electronic medium pursuant to section 480 of this title.’’;

and

(B) in subsection (c)(1)(D), by inserting before the

period at the end the following: ‘‘or, if over sooner, a period

of 14 days elapses after the date on which a copy of the

notice is provided in an electronic medium pursuant to

section 480 of this title’’.

(42) Section 2827(b)(2) is amended by inserting before the

period at the end the following: ‘‘or, if over sooner, a period

of 14 days has elapsed after the date on which a copy of

the notification is provided in an electronic medium pursuant

to section 480 of this title’’.

(43) Section 2836(f)(2) is amended—

(A) by striking ‘‘21 calendar days’’ and inserting ‘‘21

days’’; and

(B) by inserting before the period at the end the following: ‘‘or, if over sooner, a period of 14 days has expired

following the date on which a copy of the economic analysis

is provided in an electronic medium pursuant to section

480 of this title’’.

(44) Section 2837(c)(2) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the 14-day period beginning on the date

on which a copy of the report is provided in an electronic

medium pursuant to section 480 of this title’’. (45) Section 2854(b) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the seven-day period beginning on the date

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’. (46) Section 2854a(c)(2) is amended— (A) by striking ‘‘calendar’’; and

(B) by inserting before the period at the end the following: ‘‘or, if over sooner, a period of 14 days has elapsed

after the date on which a copy of the justification is provided in an electronic medium pursuant to section 480

of this title’’. (47) Section 2865(e)(2) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the 14-day period beginning on the date

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(48) Section 2866(c)(2) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the 14-day period beginning on the date

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(49) Section 2867(c) is amended by inserting before the

period at the end of the last sentence the following: ‘‘or, if

earlier, the end of the 14-day period beginning on the date

on which a copy of the notification is provided in an electronic

medium pursuant to section 480 of this title’’.

(50) Section 2875(e) is amended by inserting before the

period at the end the following: ‘‘or, if earlier, the end of
H. R. 1588—212

the 14-day period beginning on the date on which a copy

of the notice and justification is provided in an electronic

medium pursuant to section 480 of this title’’.

(51) Section 2883(f) is amended by inserting before the

period at the end the following: ‘‘or, if earlier, the end of

the 14-day period beginning on the date on which a copy

of the notice and justification is provided in an electronic

medium pursuant to section 480 of this title’’.

(52) Section 2902(g) is amended—

(A) by striking paragraph (2); and

(B) by striking ‘‘(1)’’ after ‘‘(g)’’.

(53) Section 4342(h) is amended by striking ‘‘Secretary

of the Army’’ and inserting ‘‘Superintendent’’.

(54) Section 4357(c) is amended by inserting before the

period at the end the following: ‘‘or, if earlier, the expiration

of 14 days following the date on which a copy of the report

is provided in an electronic medium pursuant to section 480

of this title’’.

(55) Section 6954(f) is amended by striking ‘‘Secretary of

the Navy’’ and inserting ‘‘Superintendent of the Naval

Academy’’.

(56) Section 6975(c) is amended by inserting before the

period at the end the following: ‘‘or, if earlier, the expiration

of 14 days following the date on which a copy of the report

is provided in an electronic medium pursuant to section 480

of this title’’.

(57) Section 7049(c) is amended—

(A) by striking ‘‘CERTIFICATION’’ in the subsection

heading and inserting ‘‘DETERMINATION’’; and

(B) by striking ‘‘, and certifies to’’ and all that follows

through ‘‘House of Representatives,’’.

(58) Section 9342(h) is amended by striking ‘‘Secretary

of the Air Force’’ and inserting ‘‘Superintendent’’.

(59) Section 9356(c) is amended by inserting before the

period at the end the following: ‘‘or, if earlier, the expiration

of 14 days following the date on which a copy of the report

is provided in an electronic medium pursuant to section 480

of this title’’.

(60) Section 9514 is amended—

(A) in subsection (c)—

(i) by striking ‘‘to Congress’’ and all that follows

through ‘‘notification of the loss’’ in paragraph (1) and

inserting ‘‘to Congress notification of the loss’’;

(ii) by striking ‘‘loss; and’’ and inserting ‘‘loss.’’;

and

(iii) by striking paragraph (2); and

(B) by striking subsection (f).

(61) Section 12302 is amended by striking subsection (d).

(b) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

1991.—Section 2921(g) of the National Defense Authorization Act

for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2687 note)

is amended— (1) in paragraph (1), by striking ‘‘Not less than 30 days

before’’ and inserting ‘‘Before’’;

(2) in paragraph (2), by striking ‘‘Not less than 30 days

before’’ and inserting ‘‘Before’’; and

(3) by adding at the end the following new paragraph:
H. R. 1588—213

‘‘(3) When the Secretary submits a notification of a proposed

agreement under paragraph (1) or (2), the Secretary may then

enter into the agreement described in the notification only after

the end of the 30-day period beginning on the date on which

the notification is submitted or, if earlier, the end of the 14-day

period beginning on the date on which a copy of the notification

is provided in an electronic medium pursuant to section 480 of

title 10, United States Code.’’.

(c) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS

1992 AND 1993.—The National Defense Authorization Act for Fiscal

Years 1992 and 1993 (Public Law 102–190) is amended as follows:

(1) Section 734 (10 U.S.C. 1074 note) is amended by striking

subsection (c).

(2) Section 2868(a) (10 U.S.C. 2802 note) is amended by

striking ‘‘The Secretary of Defense’’ and all that follows through

‘‘is to be authorized’’ and inserting ‘‘Not later than 30 days

after the date on which a decision is made selecting the site

or sites for the permanent basing of a new weapon system,

the Secretary of Defense shall submit to Congress’’.

(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

1993.—The National Defense Authorization Act for Fiscal Year 1993

(Public Law 102–484) is amended as follows:

(1) Section 324 (10 U.S.C. 2701 note) is amended—

(A) by striking ‘‘(a) SENSE OF CONGRESS.—’’; and

(B) by striking subsection (b).

(2) Section 1082(b)(1) (10 U.S.C. 113 note) is amended

by striking ‘‘the Secretary of Defense—’’ and all that follows

and inserting ‘‘the Secretary of Defense determines that it

is in the national security interests of the United States for

the military departments to do so.’’.

(e) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

1995.—Section 721 of the National Defense Authorization Act for

Fiscal Year 1995 (Public Law 103–337; 10 U.S.C. 1074 note) is

amended by striking subsection (h).

(f) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

1997.—The National Defense Authorization Act for Fiscal Year

1997 (Public Law 104–201) is amended as follows:

(1) Section 324 (10 U.S.C. 2706 note) is amended by striking

subsection (c).

(2) Section 1065(b) (10 U.S.C. 113 note) is amended—

(A) by striking ‘‘(1)’’ before ‘‘Notwithstanding’’; and

(B) by striking paragraph (2).

(g) STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT

FOR FISCAL YEAR 1999.—The Strom Thurmond National Defense

Authorization Act for Fiscal Year 1999 (Public Law 105–261) is

amended as follows:

(1) Section 745(e) (10 U.S.C. 1071 note) is amended—

(A) by striking ‘‘(1)’’ before ‘‘The Secretary of Defense’’;

and

(B) by striking paragraph (2).

(2) Section 1223 (22 U.S.C. 1928 note) is repealed.

(h) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

2000.—The National Defense Authorization Act for Fiscal Year

2000 (Public Law 106–65) is amended as follows:

(1) Section 212 (10 U.S.C. 2501 note) is amended by striking

subsection (c).
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(2) Section 724 (10 U.S.C. 1092 note) is amended by striking

subsection (e).

(3) Section 1039 (10 U.S.C. 113 note) is amended by striking

subsection (b).

(i) MILITARY CONSTRUCTION APPROPRIATIONS ACT, 2001.—Section 125 of the Military Construction Appropriations Act, 2001

(division A of Public Law 106–246; 114 Stat. 517), is repealed.

(j) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2002.—Section 8009 of the Department of Defense Appropriations Act, 2002

(division A of Public Law 107–117; 115 Stat. 2249; 10 U.S.C. 401

note), is amended by striking ‘‘, and these obligations shall be

reported to the Congress’’.

SEC. 1032. PLAN FOR PROMPT GLOBAL STRIKE CAPABILITY.

(a) INTEGRATED PLAN FOR PROMPT GLOBAL STRIKE CAPA- BILITY.—The Secretary of Defense shall establish an integrated

plan for developing, deploying, and sustaining a prompt global

strike capability in the Armed Forces. The Secretary shall update

the plan annually.

(b) ANNUAL REPORTS.—(1) Not later than April 1 of each of

2004, 2005, and 2006, the Secretary shall submit to the congressional defense committees a report on the plan established under

subsection (a).

(2) Each report under paragraph (1) shall include the following:

(A) A description and assessment of the targets against

which long-range strike assets might be directed and the conditions under which those assets might be used.

(B) The role of, and plans for ensuring, sustainment and

modernization of current long-range strike assets, including

bombers, intercontinental ballistic missiles, and submarinelaunched ballistic missiles.

(C) A description of the capabilities desired for advanced

long-range strike assets and plans to achieve those capabilities.

(D) A description of the capabilities desired for advanced

conventional munitions and the plans to achieve those capabilities.

(E) An assessment of advanced nuclear concepts that could

contribute to the prompt global strike mission.

(F) An assessment of the command, control, and communications capabilities necessary to support prompt global strike

capabilities.

(G) An assessment of intelligence, surveillance, and reconnaissance capabilities necessary to support prompt global strike

capabilities.

(H) A description of how prompt global strike capabilities

are to be integrated with theater strike capabilities.

(I) An estimated schedule for achieving the desired prompt

global strike capabilities.

(J) The estimated cost of achieving the desired prompt

global strike capabilities.

(K) A description of ongoing and future studies necessary

for updating the plan appropriately.

SEC. 1033. ANNUAL REPORT CONCERNING DISMANTLING OF STRATEGIC NUCLEAR WARHEADS.

(a) ANNUAL REPORT.—Concurrent with the submission of the

President’s budget request to Congress each year, the Director

of Central Intelligence shall submit to the committees specified
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in subsection (e) a report concerning dismantlement of Russian

strategic nuclear warheads under the Moscow Treaty. Each such

report shall discuss nuclear weapons dismantled by Russia during

the prior fiscal year and the Director’s projections for nuclear

weapons to be dismantled by Russia during the current fiscal year

and the fiscal year covered by the budget.

(b) CLASSIFICATION.—The annual report under this section shall

be transmitted in an unclassified form when possible and classified

form as necessary.

(c) TERMINATION OF REPORT REQUIREMENT.—The requirement

to submit an annual report under this section terminates when

the Moscow Treaty is no longer in effect.

(d) MOSCOW TREATY DEFINED.—For purposes of this section,

the term ‘‘Moscow Treaty’’ means the Treaty Between the United

States of America and the Russian Federation on Strategic Offensive Reductions, done at Moscow on May 24, 2002.

(e) COMMITTEES SPECIFIED.—The committees to which annual

reports are to be submitted under this section are the following:

(1) The Committee on Armed Services, the Select Committee on Intelligence, and the Committee on Foreign Relations

of the Senate.

(2) The Committee on Armed Services, the Permanent

Select Committee on Intelligence, and the Committee on International Relations of the House of Representatives.

SEC. 1034. REPORT ON USE OF UNMANNED AERIAL VEHICLES FOR

SUPPORT OF HOMELAND SECURITY MISSIONS.

(a) REQUIREMENT FOR REPORT.—Not later than April 1, 2004,

the President shall submit to Congress a report on the potential

uses of unmanned aerial vehicles for support of the performance

of homeland security missions.

(b) CONTENT.—The report shall, at a minimum, include the

following matters:

(1) An assessment of the potential for using unmanned

aerial vehicles for monitoring activities in remote areas along

the northern and southern borders of the United States.

(2) An assessment of the potential for using long-endurance,

land-based unmanned aerial vehicles for supporting the Coast

Guard in the performance of its—

(A) homeland security missions;

(B) drug interdiction missions; and

(C) other maritime missions along the approximately

95,000 miles of inland waterways in the United States.

(3) An assessment of the potential for using unmanned

aerial vehicles for monitoring the safety and integrity of critical

infrastructure within the territory of the United States,

including the following:

(A) Oil and gas pipelines.

(B) Long-distance power transmission lines.

(C) Hydroelectric and nuclear power plants.

(D) Dams and drinking water utilities.

(4) An assessment of the potential for using unmanned

aerial vehicles for monitoring the transportation of hazardous

cargo.

(5) A discussion of the safety issues involved in— (A) the use of unmanned aerial vehicles by agencies

other than the Department of Defense; and
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(B) the operation of unmanned aerial vehicles over

populated areas of the United States.

(6) A discussion of—

(A) the effects on privacy and civil liberties that could

result from the monitoring uses of unmanned aerial

vehicles operated over the territory of the United States;

and

(B) any restrictions on the domestic use of unmanned

aerial vehicles that should be imposed, or any other actions

that should be taken, to prevent any adverse effect of

such a use of unmanned aerial vehicles on privacy or

civil liberties.

(7) A discussion of what, if any, legislation and organizational changes may be necessary to accommodate the use of

unmanned aerial vehicles of the Department of Defense in

support of the performance of homeland security missions,

including any amendment of section 1385 of title 18, United

States Code (popularly referred to as the ‘‘Posse Comitatus

Act’’).

(8) An evaluation of the capabilities of manufacturers of

unmanned aerial vehicles to produce such vehicles at higher

rates if necessary to meet any increased requirements for homeland security and homeland defense missions.

(c) REFERRAL TO COMMITTEES.—The report under subsection

(a) shall—

(1) upon receipt in the Senate, be referred to the Committee

on Armed Services of the Senate and other committees, as

appropriate; and

(2) upon receipt in the House of Representatives, be

referred to the Committee on Armed Services of the House

of Representatives and other committees, as appropriate.

Subtitle E—Codifications, Definitions, and Technical

Amendments

SEC. 1041. CODIFICATION AND REVISION OF DEFENSE COUNTERINTELLIGENCE POLYGRAPH PROGRAM AUTHORITY.

(a) CODIFICATION.—(1) Chapter 80 of title 10, United States

Code, is amended by inserting after section 1564 the following

new section:

‘‘§ 1564a. Counterintelligence polygraph program

‘‘(a) AUTHORITY FOR PROGRAM.—The Secretary of Defense may

carry out a program for the administration of counterintelligence

polygraph examinations to persons described in subsection (b). The

program shall be based on Department of Defense Directive 5210.48,

dated December 24, 1984.

‘‘(b) PERSONS COVERED.—Except as provided in subsection (c),

the following persons whose duties involve access to information

that has been classified at the level of top secret or designated

as being within a special access program under section 4.4(a) of

Executive Order 12958 (or a successor Executive order) are subject

to this section: ‘‘(1) Military and civilian personnel of the Department of

Defense. ‘‘(2) Personnel of defense contractors.
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‘‘(3) A person assigned or detailed to the Department of

Defense.

‘‘(4) An applicant for a position in the Department of

Defense.

‘‘(c) EXCEPTIONS FROM COVERAGE FOR CERTAIN INTELLIGENCE

AGENCIES AND FUNCTIONS.—This section does not apply to the

following persons:

‘‘(1) A person assigned or detailed to the Central Intelligence Agency or to an expert or consultant under a contract

with the Central Intelligence Agency.

‘‘(2) A person who is—

‘‘(A) employed by or assigned or detailed to the

National Security Agency;

‘‘(B) an expert or consultant under contract to the

National Security Agency;

‘‘(C) an employee of a contractor of the National Security Agency; or

‘‘(D) a person applying for a position in the National

Security Agency.

‘‘(3) A person assigned to a space where sensitive cryptographic information is produced, processed, or stored.

‘‘(4) A person employed by, or assigned or detailed to,

an office within the Department of Defense for the collection

of specialized national foreign intelligence through reconnaissance programs or a contractor of such an office.

‘‘(d) OVERSIGHT.—(1) The Secretary shall establish a process

to monitor responsible and effective application of polygraph

examinations within the Department of Defense.

‘‘(2) The Secretary shall make information on the use of polygraphs within the Department of Defense available to the congressional defense committees.

‘‘(e) POLYGRAPH RESEARCH PROGRAM.—The Secretary shall

carry out a continuing research program to support the polygraph

examination activities of the Department of Defense. The program

shall include—

‘‘(1) an on-going evaluation of the validity of polygraph

techniques used by the Department;

‘‘(2) research on polygraph countermeasures and anticountermeasures; and

‘‘(3) developmental research on polygraph techniques,

instrumentation, and analytic methods.’’.

(2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 1564

the following new item:

‘‘1564a. Counterintelligence polygraph program.’’.

(b) CONFORMING REPEAL.—Section 1121 of the National Defense

Authorization Act for Fiscal Years 1988 and 1989 (10 U.S.C. 113

note), is repealed.

SEC. 1042. GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND

OPERATIONS OF DEPARTMENT OF DEFENSE.

(a) GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND OPERATIONS.—Section 101 of title 10, United States Code, is amended—

(1) by redesignating subsections (e) and (f) as subsections

(f) and (g), respectively; and
H. R. 1588—218

(2) by inserting after subsection (d) the following new subsection (e):

‘‘(e) FACILITIES AND OPERATIONS.—The following definitions

relating to facilities and operations apply in this title:

‘‘(1) RANGE.—The term ‘range’, when used in a geographic

sense, means a designated land or water area that is set

aside, managed, and used for range activities of the Department

of Defense. Such term includes the following:

‘‘(A) Firing lines and positions, maneuver areas, firing

lanes, test pads, detonation pads, impact areas, electronic

scoring sites, buffer zones with restricted access, and exclusionary areas.

‘‘(B) Airspace areas designated for military use in

accordance with regulations and procedures prescribed by

the Administrator of the Federal Aviation Administration.

‘‘(2) RANGE ACTIVITIES.—The term ‘range activities’

means—

‘‘(A) research, development, testing, and evaluation of

military munitions, other ordnance, and weapons systems;

and

‘‘(B) the training of members of the armed forces in

the use and handling of military munitions, other ordnance,

and weapons systems.

‘‘(3) OPERATIONAL RANGE.—The term ‘operational range’

means a range that is under the jurisdiction, custody, or control

of the Secretary of Defense and—

‘‘(A) that is used for range activities, or

‘‘(B) although not currently being used for range activities, that is still considered by the Secretary to be a range

and has not been put to a new use that is incompatible

with range activities.

‘‘(4) MILITARY MUNITIONS.—(A) The term ‘military munitions’ means all ammunition products and components produced

for or used by the armed forces for national defense and security, including ammunition products or components under the

control of the Department of Defense, the Coast Guard, the

Department of Energy, and the National Guard.

‘‘(B) Such term includes the following:

‘‘(i) Confined gaseous, liquid, and solid propellants.

‘‘(ii) Explosives, pyrotechnics, chemical and riot control

agents, smokes, and incendiaries, including bulk explosives,

and chemical warfare agents.

‘‘(iii) Chemical munitions, rockets, guided and ballistic

missiles, bombs, warheads, mortar rounds, artillery

ammunition, small arms ammunition, grenades, mines, torpedoes, depth charges, cluster munitions and dispensers,

and demolition charges.

‘‘(iv) Devices and components of any item specified

in clauses (i) through (iii).

‘‘(C) Such term does not include the following:

‘‘(i) Wholly inert items.

‘‘(ii) Improvised explosive devices.

‘‘(iii) Nuclear weapons, nuclear devices, and nuclear

components, other than nonnuclear components of nuclear

devices that are managed under the nuclear weapons program of the Department of Energy after all required
H. R. 1588—219

sanitization operations under the Atomic Energy Act of

1954 (42 U.S.C. 2011 et seq.) have been completed.

‘‘(5) UNEXPLODED ORDNANCE.—The term ‘unexploded ordnance’ means military munitions that—

‘‘(A) have been primed, fused, armed, or otherwise

prepared for action;

‘‘(B) have been fired, dropped, launched, projected, or

placed in such a manner as to constitute a hazard to

operations, installations, personnel, or material; and

‘‘(C) remain unexploded, whether by malfunction,

design, or any other cause.’’.

(b) REFERENCES TO MILITARY MUNITIONS, ETC.—Section 2710(e)

of such title is amended—

(1) by striking paragraphs (3), (5), and (9); and

(2) by redesignating paragraphs (4), (6), (7), (8), and (10)

as paragraphs (3), (4), (5), (6), and (7), respectively.

SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF TITLE 10,

UNITED STATES CODE.

(a) GENERAL DEFINITIONS.—Section 101(a) of title 10, United

States Code, is amended by adding at the end the following new

paragraphs:

‘‘(16) The term ‘congressional defense committees’ means—

‘‘(A) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

‘‘(B) the Committee on Armed Services and the Committee on Appropriations of the House of Representatives.

‘‘(17) The term ‘base closure law’ means the following:

‘‘(A) Section 2687 of this title.

‘‘(B) The Defense Base Closure and Realignment Act

of 1990 (part A of title XXIX of Public Law 101–510;

10 U.S.C. 2687 note).

‘‘(C) Title II of the Defense Authorization Amendments

and Base Closure and Realignment Act (Public Law 100–

526; 10 U.S.C. 2687 note).’’.

(b) REFERENCES TO CONGRESSIONAL DEFENSE COMMITTEES.—

Title 10, United States Code, is further amended as follows:

(1) Section 135(e) is amended—

(A) by striking ‘‘(1)’’;

(B) by striking ‘‘each congressional committee specified

in paragraph (2)’’ and inserting ‘‘each of the congressional

defense committees’’; and

(C) by striking paragraph (2).

(2) Section 153(c) is amended—

(A) in paragraph (1), by striking ‘‘committees of Congress named in paragraph (2)’’ and inserting ‘‘congressional

defense committees’’;

(B) by striking paragraph (2); and

(C) by designating the second sentence of paragraph

(1) as paragraph (2) and in that paragraph (as so designated) by striking ‘‘The report’’ and inserting ‘‘Each report

under paragraph (1)’’.

(3) Section 181(d)(2) is amended—

(A) by striking ‘‘subsection:’’ and all that follows

through ‘‘ ‘oversight’’ and inserting ‘‘subsection, the term

‘oversight’’; and

(B) by striking subparagraph (B).
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(4) Section 224 is amended by striking subsection (f).

(5) Section 228(e) is amended—

(A) by striking ‘‘DEFINITIONS’’ and all that follows

through ‘‘(1) The term’’ and inserting ‘‘O&M BUDGET

ACTIVITY DEFINED.—In this section, the term’’; and

(B) by striking paragraph (2).

(6) Section 229 is amended by striking subsection (f).

(7) Section 1107(f)(4) is amended by striking subparagraph

(C).

(8) Section 2216(j) is amended by striking paragraph (3).

(9) Section 2218(l) is amended—

(A) by striking paragraph (4); and

(B) by redesignating paragraph (5) as paragraph (4).

(10) Section 2306b(l) is amended—

(A) by striking paragraph (9); and

(B) by redesignating paragraph (10) as paragraph (9).

(11) Section 2308(e)(2) is amended—

(A) by striking subparagraph (A); and

(B) by redesignating subparagraphs (B) and (C) as

subparagraphs (A) and (B), respectively.

(12) Section 2350j is amended—

(A) in subsection (e), by striking ‘‘congressional committees specified in subsection (g)’’ in paragraphs (1) and (3)

and inserting ‘‘congressional defense committees’’; and

(B) by striking subsection (g).

(13) Section 2366(e) is amended—

(A) by striking paragraph (7); and

(B) by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively.

(14) Section 2399(h) is amended—

(A) by striking ‘‘DEFINITIONS.—’’ and all that follows

through ‘‘(1) The term’’ and inserting ‘‘OPERATIONAL TEST

AND EVALUATION DEFINED.—In this section, the term’’;

(B) by striking paragraph (2);

(C) by redesignating subparagraphs (A), (B), and (C)

as paragraphs (1), (2), and (3), respectively; and

(D) by realigning those paragraphs (as so redesignated)

so as to be indented two ems from the left margin.

(15) Section 2667(h) is amended by striking paragraph

(1).

(16) Section 2801(c)(4) is amended by striking ‘‘the Committee on’’ the first place it appears and all that follows through

‘‘House of Representatives’’ and inserting ‘‘the congressional

defense committees’’.

(c) REFERENCES TO BASE CLOSURE LAWS.—Title 10, United

States Code, is further amended as follows:

(1) Section 2306c(h) is amended by striking ‘‘ADDITIONAL’’

and all that follows through ‘‘(2) The term’’ and inserting ‘‘MILITARY INSTALLATION DEFINED.—In this section, the term’’.

(2) Section 2490a(f) is amended—

(A) by striking ‘‘DEFINITIONS.—’’ and all that follows

through ‘‘(1) The term’’ and inserting ‘‘NONAPPROPRIATED

FUND INSTRUMENTALITY DEFINED.—In this section, the

term’’; and

(B) by striking paragraph (2).
H. R. 1588—221

(3) Section 2667(h), as amended by subsection (b)(15), is

further amended by striking ‘‘section:’’ and all that follows

through ‘‘(3) The term’’ and inserting ‘‘section, the term’’.

(4) Section 2696(e) is amended—

(A) by striking paragraphs (1), (2), (3), and (4) and

inserting the following:

‘‘(1) A base closure law.’’; and

(B) by redesignating paragraphs (5) and (6) as paragraphs (2) and (3), respectively.

(5) Section 2705 is amended by striking subsection (h).

(6) Section 2871 is amended by striking paragraph (2).

SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUCTION

AUTHORIZATION REQUEST IN ANNUAL DEFENSE

AUTHORIZATION REQUEST.

(a) INCLUSION OF MILITARY CONSTRUCTION REQUEST.—Section

113a(b) of title 10, United States Code, is amended—

(1) by redesignating paragraph (3) as paragraph (4); and

(2) by inserting after paragraph (2) the following new paragraph (3):

‘‘(3) Authority to carry out military construction projects,

as required by section 2802 of this title.’’.

(b) REPEAL OF SEPARATE TRANSMISSION OF REQUEST.—(1) Section 2859 of such title is repealed.

(2) The table of sections at the beginning of subchapter III

of chapter 169 of such title is amended by striking the item relating

to section 2859.

SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS.

(a) TITLE 10, UNITED STATES CODE.—Title 10, United States

Code, is amended as follows:

(1) The tables of chapters at the beginning of subtitle

A, and at the beginning of part IV of subtitle A, are amended

by striking ‘‘2701’’ in the item relating to chapter 160 and

inserting ‘‘2700’’.

(2) Section 101(a)(9)(D) is amended by striking ‘‘Transportation’’ and inserting ‘‘Homeland Security’’.

(3) Section 1115(c)(1)(B) is amended by striking ‘‘and other

than members’’ and inserting ‘‘(other than members’’.

(4) Section 2002(a)(2) is amended by striking ‘‘Foreign

Service Institute’’ and inserting ‘‘George P. Schultz National

Foreign Affairs Training Center’’.

(5)(A) Section 2248 is repealed.

(B) The table of sections at the beginning of subchapter

I of chapter 134 is amended by striking the item relating

to section 2248.

(6) Section 2432(h)(1) is amended by inserting ‘‘program’’

in the first sentence after ‘‘for such’’.

(7) Section 7305(d) is amended by inserting ‘‘such’’ before

‘‘title III’’ the second place it appears.

(b) TITLE 37, UNITED STATES CODE.—Title 37, United States

Code, is amended as follows:

(1) Section 323(a) is amended by striking ‘‘1 year’’ in paragraphs (1) and (2) and inserting ‘‘one year’’. (2) Section 402 is amended— (A) in subsection (b)— (i) by striking paragraph (1);
H. R. 1588—222

(ii) by redesignating paragraphs (2), (3), and (4)

as paragraphs (1), (2), and (3), respectively;

(iii) in paragraph (1) (as so redesignated), by

striking ‘‘On and after January 1, 2002, the’’ and

inserting ‘‘The’’; and

(iv) in paragraph (3) (as so redesignated), by

striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph (1)’’;

and

(B) in subsection (d), by striking ‘‘subsection (b)(2)’’

and inserting ‘‘subsection (b)(1)’’.

(c) FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT

FOR FISCAL YEAR 2001.—The Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted into law by

Public Law 106–398) is amended as follows:

(1) Section 814(g)(1) is amended by striking ‘‘the ClingerCohen Act of 1996 (divisions D and E of Public Law 104–

106)’’ and inserting ‘‘subtitle III of title 40, United States Code’’.

(2) Section 1308(c) (22 U.S.C. 5959) is amended—

(A) by redesignating paragraph (7) as paragraph (8);

and

(B) by redesignating the second paragraph (6) as paragraph (7).

(d) STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT

FOR FISCAL YEAR 1999.—Section 819(a) of the Strom Thurmond

National Defense Authorization Act for Fiscal Year 1999 (Public

Law 105–261; 112 Stat. 2089) is amended by striking ‘‘section

201(c) of the Federal Property and Administrative Services Act

of 1949 (40 U.S.C. 481(c)),’’ and inserting ‘‘section 503 of title

40, United States Code,’’.

(e) NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR

1997.—Section 1084(e) of the National Defense Authorization Act

for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2675) is

amended by striking ‘‘98–515’’ and inserting ‘‘98–525’’. The amendment made by the preceding sentence shall take effect as if included

in Public Law 104–201.

(f) FEDERAL ACQUISITION STREAMLINING ACT OF 1994.—Subsection (d) of section 1004 of the Federal Acquisition Streamlining

Act of 1994 (Public Law 103–355; 108 Stat. 3253) is amended

by striking ‘‘under—’’ and all that follows through the end of paragraph (2) and inserting ‘‘under chapter 11 of title 40, United States

Code.’’.

(g) ARMED FORCES RETIREMENT HOME ACT OF 1991.—Section

1520(b)(1)(C) of the Armed Forces Retirement Home Act of 1991

(24 U.S.C. 420(b)(1)(C)) is amended by inserting ‘‘Armed Forces’’

before ‘‘Retirement Home Trust Fund’’.

Subtitle F—Other Matters

SEC. 1051. ASSESSMENT OF EFFECTS OF SPECIFIED STATUTORY

LIMITATIONS ON THE GRANTING OF SECURITY CLEARANCES.

Not later than 60 days after the date of the enactment of

this Act, the Secretary of Defense shall submit to the Committee

on Armed Services of the Senate and the Committee on Armed

Services of the House of Representatives an assessment of the

effects of the provisions of section 986 of title 10, United States
H. R. 1588—223

Code (relating to limitations on security clearances), on the granting

(or renewal) of security clearances for Department of Defense personnel and defense contractor personnel. The assessment shall

review the effects of the disqualification factors specified in subsection (c) of that section and shall include such recommendations

for legislation or administrative steps as the Secretary considers

necessary.

SEC. 1052. ACQUISITION OF HISTORICAL ARTIFACTS THROUGH

EXCHANGE OF OBSOLETE OR SURPLUS PROPERTY.

(a) ACQUISITION AUTHORIZED.—The Secretary of a military

department may use the authority provided by section 2572 of

title 10, United States Code, to acquire an historical artifact that

directly benefits the historical collection of the Armed Forces in

exchange for any obsolete or surplus property held by that military

department, without regard to whether the property is described

in subsection (c) of such section.

(b) DURATION OF AUTHORITY.—The authority provided by subsection (a) applies during fiscal years 2004 and 2005.

SEC. 1053. CONVEYANCE OF SURPLUS T–37 AIRCRAFT TO AIR FORCE

AVIATION HERITAGE FOUNDATION, INCORPORATED.

(a) AUTHORITY TO CONVEY.—The Secretary of the Air Force

may convey to the Air Force Aviation Heritage Foundation, Incorporated, of Georgia (in this section referred to as the ‘‘Foundation’’),

all right, title, and interest of the United States in and to one

surplus T–37 ‘‘Tweet’’ aircraft for the sole purpose of permitting

the Foundation to use the aircraft in a static display. The conveyance shall be made by means of a conditional deed of gift.

(b) CONDITION OF AIRCRAFT.—(1) The Secretary may not convey

the aircraft under subsection (a) until the aircraft has been demilitarized in such manner as the Secretary determines necessary

to ensure that the aircraft is permanently unfit for flight and

does not have any capability for use as a platform for launching

or releasing munitions or any other combat capability that it was

designed to have.

(2) The Foundation shall be responsible for the costs of demilitarizing the aircraft, as required by paragraph (1). Demilitarization

shall be carried out in a manner intended to preserve the historical

and display value of the aircraft.

(c) CONDITIONS FOR CONVEYANCE.—(1) The conveyance of a

T–37 aircraft under this section shall be subject to the following

conditions:

(A) That the Foundation not convey any right, title, or

interest in, or transfer possession of, the aircraft to any other

party without the prior approval of the Secretary of the Air

Force.

(B) That the Foundation not alter the aircraft to restore

it to flyable condition.

(C) That if the Secretary of the Air Force determines at

any time that the Foundation has conveyed an ownership

interest in, or transferred possession of, the aircraft to any

other party without the prior approval of the Secretary, or

has failed to comply with the condition set forth in subparagraph (B), all right, title, and interest in and to the aircraft,

including any repair or alteration of the aircraft, shall revert

to the United States, and the United States shall have the

right of immediate possession of the aircraft.
H. R. 1588—224

(2) The Secretary shall include the conditions under paragraph

(1) in the instrument of conveyance of the T–37 aircraft.

(d) CONVEYANCE AT NO COST TO THE UNITED STATES.—Any

conveyance of a T–37 aircraft under this section shall be made

at no cost to the United States. Any costs associated with such

conveyance, costs of determining compliance by the Foundation

with the conditions in subsection (b), and costs of restoration and

maintenance of the aircraft conveyed shall be borne by the Foundation.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary of the

Air Force may require such additional terms and conditions in

connection with the conveyance under this section as the Secretary

considers appropriate to protect the interests of the United States.

(f) DURATION OF CONVEYANCE AUTHORITY.—The authority to

make the conveyance to the Foundation authorized by this section

expires on September 30, 2005.

SEC. 1054. DEPARTMENT OF DEFENSE BIENNIAL STRATEGIC PLAN FOR

MANAGEMENT OF ELECTROMAGNETIC SPECTRUM.

(a) REQUIREMENT FOR PLAN.—Chapter 23 of title 10, United

States Code, is amended by inserting after section 487 the following

new section:

‘‘§ 488. Management of electromagnetic spectrum: biennial

strategic plan

‘‘(a) REQUIREMENT FOR STRATEGIC PLAN.—Every other year,

and in time for submission to Congress under subsection (b), the

Secretary of Defense shall prepare a strategic plan for the management of the electromagnetic spectrum to ensure the accessibility

and efficient use of that spectrum needed to support the mission

of the Department of Defense.

‘‘(b) SUBMISSION OF PLAN TO CONGRESS.—The Secretary of

Defense shall submit to Congress the strategic plan most recently

prepared under subsection (a) at the same time that the President

submits to Congress the budget for an even-numbered fiscal year

under section 1105(a) of title 31.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 487 the following new item:

‘‘488. Management of electromagnetic spectrum: biennial strategic plan.’’.

SEC. 1055. REVISION OF DEPARTMENT OF DEFENSE DIRECTIVE

RELATING TO MANAGEMENT AND USE OF RADIO FREQUENCY SPECTRUM.

Not later than one year after the date of the enactment of

this Act, the Secretary of Defense shall revise and reissue Department of Defense Directive 4650.1, relating to management and

use of the radio frequency spectrum, last issued on June 24, 1987,

to update the procedures applicable to Department of Defense

management and use of the radio frequency spectrum and to ensure

the consideration of requirements for usage of such spectrum by

a system as early as practicable in the acquisition program for

such system.
H. R. 1588—225

SEC. 1056. SENSE OF CONGRESS ON DEPLOYMENT OF AIRBORNE

CHEMICAL AGENT MONITORING SYSTEMS AT CHEMICAL

STOCKPILE DISPOSAL SITES IN THE UNITED STATES.

(a) FINDINGS.—The Congress makes the following findings:

(1) Over 23,700 tons of lethal chemical agents in assembled

chemical weapons and bulk storage containers are stored and

awaiting destruction at eight chemical agent disposal facilities

and stockpile storage sites in the United States. Some of these

weapons and storage containers contain GB or VX nerve agents,

while others contain blister agents such as HD (mustard agent).

(2) Approximately 960,000 persons live in the vicinity of

the eight chemical weapons disposal facilities and stockpile

storage sites.

(3) Airborne-agent chemical monitoring systems are currently deployed at each of the chemical demilitarization facilities and stockpile storage sites to provide continuous and nearreal-time monitoring of the presence of chemical agents.

(4) The National Research Council has determined that

monitoring levels used at the demilitarization facilities are

very conservative and highly protective of workers and public

health and safety and that the conservative monitoring levels

are a contributing factor in false positive alarms.

(5) The National Research Council has expressed repeated

concern about relatively frequent false positive alarms and

the lack of real-time monitoring for airborne agents and has

noted the poor state of agent monitoring technology for liquid

waste streams and solid materials suspected of possible agent

contamination.

(6) The National Research Council has concluded that,

although the Program Manager for Chemical Demilitarization

has made some efforts to develop better agent-monitoring technology, results to date have been disappointing.

(7) The National Research Council has concluded that

development and deployment of airborne-agent monitors with

shorter response time and lower false alarm rates would

enhance safety and reduce the tendency to discount agent

alarms, and has recommended that the Program Manager for

Chemical Demilitarization and the relevant Department of

Defense research and development agencies should invigorate

and coordinate efforts to develop chemical agent monitors with

improved sensitivity, specificity, and response time.

(b) SENSE OF CONGRESS.—It is the sense of Congress that

the Secretary of the Army—

(1) should, in coordination with relevant Department of

Defense research and development agencies, invigorate and

coordinate efforts to develop chemical agent monitors with

improved sensitivity, specificity, and response time; and

(2) should deploy improved chemical agent monitors in

order to ensure the maximum protection of the general public,

personnel involved in the chemical demilitarization program,

and the environment.

SEC. 1057. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT PROGRAM OF UNITED STATES FIRE ADMINISTRATION.

The Federal Fire Prevention and Control Act of 1974 (15 U.S.C.

2201 et seq.) is amended by redesignating the second section 33
H. R. 1588—226

and section 34 as sections 35 and 36, respectively, and by inserting

after the first section 33 the following new section:

‘‘SEC. 34. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT PROGRAM.

‘‘(a) EXPANDED AUTHORITY TO MAKE GRANTS.—

‘‘(1) HIRING GRANTS.—(A) The Administrator shall make

grants directly to career, volunteer, and combination fire

departments, in consultation with the chief executive of the

State in which the applicant is located, for the purpose of

increasing the number of firefighters to help communities meet

industry minimum standards and attain 24-hour staffing to

provide adequate protection from fire and fire-related hazards,

and to fulfill traditional missions of fire departments that antedate the creation of the Department of Homeland Security.

‘‘(B)(i) Grants made under this paragraph shall be for 4

years and be used for programs to hire new, additional firefighters.

‘‘(ii) Grantees are required to commit to retaining for at

least 1 year beyond the termination of their grants those firefighters hired under this paragraph.

‘‘(C) In awarding grants under this subsection, the Administrator may give preferential consideration to applications that

involve a non-Federal contribution exceeding the minimums

under subparagraph (E).

‘‘(D) The Administrator may provide technical assistance

to States, units of local government, Indian tribal governments,

and to other public entities, in furtherance of the purposes

of this section. ‘‘(E) The portion of the costs of hiring firefighters provided

by a grant under this paragraph may not exceed— ‘‘(i) 90 percent in the first year of the grant;

‘‘(ii) 80 percent in the second year of the grant;

‘‘(iii) 50 percent in the third year of the grant; and

‘‘(iv) 30 percent in the fourth year of the grant. ‘‘(F) Notwithstanding any other provision of law, any firefighter hired with funds provided under this subsection shall

not be discriminated against for, or be prohibited from,

engaging in volunteer activities in another jurisdiction during

off-duty hours. ‘‘(G) All grants made pursuant to this subsection shall

be awarded on a competitive basis through a neutral peer

review process. ‘‘(H) At the beginning of the fiscal year, the Administrator

shall set aside 10 percent of the funds appropriated for carrying

out this paragraph for departments with majority volunteer

or all volunteer personnel. After awards have been made, if

less than 10 percent of the funds appropriated for carrying

out this paragraph are not awarded to departments with

majority volunteer or all volunteer personnel, the Administrator

shall transfer from funds appropriated for carrying out this

paragraph to funds available for carrying out paragraph (2)

an amount equal to the difference between the amount that

is provided to such fire departments and 10 percent.

‘‘(2) RECRUITMENT AND RETENTION GRANTS.—In addition

to any amounts transferred under paragraph (1)(H), the

Administrator shall direct at least 10 percent of the total
H. R. 1588—227

amount of funds appropriated pursuant to this section annually

to a competitive grant program for the recruitment and retention of volunteer firefighters who are involved with or trained

in the operations of firefighting and emergency response.

Eligible entities shall include volunteer or combination fire

departments, and organizations on a local or statewide basis

that represent the interests of volunteer firefighters.

‘‘(b) APPLICATIONS.—(1) No grant may be made under this section unless an application has been submitted to, and approved

by, the Administrator.

‘‘(2) An application for a grant under this section shall be

submitted in such form, and contain such information, as the

Administrator may prescribe.

‘‘(3) At a minimum, each application for a grant under this

section shall—

‘‘(A) explain the applicant’s inability to address the need

without Federal assistance;

‘‘(B) in the case of a grant under subsection (a)(1), explain

how the applicant plans to meet the requirements of subsection

(a)(1)(B)(ii) and (F);

‘‘(C) specify long-term plans for retaining firefighters following the conclusion of Federal support provided under this

section; and

‘‘(D) provide assurances that the applicant will, to the

extent practicable, seek, recruit, and hire members of racial

and ethnic minority groups and women in order to increase

their ranks within firefighting.

‘‘(c) LIMITATION ON USE OF FUNDS.—(1) Funds made available

under this section to fire departments for salaries and benefits

to hire new, additional firefighters shall not be used to supplant

State or local funds, or, in the case of Indian tribal governments,

funds supplied by the Bureau of Indian Affairs, but shall be used

to increase the amount of funds that would, in the absence of

Federal funds received under this section, be made available from

State or local sources, or in the case of Indian tribal governments,

from funds supplied by the Bureau of Indian Affairs.

‘‘(2) No grant shall be awarded pursuant to this section to

a municipality or other recipient whose annual budget at the time

of the application for fire-related programs and emergency response

has been reduced below 80 percent of the average funding level

in the 3 years prior to the date of enactment of this section.

‘‘(3) Funds appropriated by the Congress for the activities of

any agency of an Indian tribal government or the Bureau of Indian

Affairs performing firefighting functions on any Indian lands may

be used to provide the non-Federal share of the cost of programs

or projects funded under this section.

‘‘(4)(A) Total funding provided under this section over 4 years

for hiring a firefighter may not exceed $100,000.

‘‘(B) The $100,000 cap shall be adjusted annually for inflation

beginning in fiscal year 2005.

‘‘(d) PERFORMANCE EVALUATION.—The Administrator may

require a grant recipient to submit any information the Administrator considers reasonably necessary to evaluate the program. ‘‘(e) SUNSET AND REPORTS.—The authority under this section

to make grants shall lapse at the conclusion of 10 years from

the date of enactment of this section. Not later than 6 years after

the date of the enactment of this section, the Administrator shall
H. R. 1588—228

submit a report to Congress concerning the experience with, and

effectiveness of, such grants in meeting the objectives of this section.

The report may include any recommendations the Administrator

may have for amendments to this section and related provisions

of law.

‘‘(f) REVOCATION OR SUSPENSION OF FUNDING.—If the Administrator determines that a grant recipient under this section is not

in substantial compliance with the terms and requirements of an

approved grant application submitted under this section, the

Administrator may revoke or suspend funding of that grant, in

whole or in part.

‘‘(g) ACCESS TO DOCUMENTS.—(1) The Administrator shall have

access for the purpose of audit and examination to any pertinent

books, documents, papers, or records of a grant recipient under

this section and to the pertinent books, documents, papers, or

records of State and local governments, persons, businesses, and

other entities that are involved in programs, projects, or activities

for which assistance is provided under this section.

‘‘(2) Paragraph (1) shall apply with respect to audits and

examinations conducted by the Comptroller General of the United

States or by an authorized representative of the Comptroller General.

‘‘(h) DEFINITIONS.—In this section, the term—

‘‘(1) ‘firefighter’ has the meaning given the term ‘employee

in fire protection activities’ under section 3(y) of the Fair Labor

Standards Act (29 U.S.C. 203(y)); and

‘‘(2) ‘Indian tribe’ means a tribe, band, pueblo, nation,

or other organized group or community of Indians, including

an Alaska Native village (as defined in or established under

the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et

seq.)), that is recognized as eligible for the special programs

and services provided by the United States to Indians because

of their status as Indians.

‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated for the purposes of carrying out this section—

‘‘(1) $1,000,000,000 for fiscal year 2004;

‘‘(2) $1,030,000,000 for fiscal year 2005;

‘‘(3) $1,061,000,000 for fiscal year 2006;

‘‘(4) $1,093,000,000 for fiscal year 2007;

‘‘(5) $1,126,000,000 for fiscal year 2008;

‘‘(6) $1,159,000,000 for fiscal year 2009; and

‘‘(7) $1,194,000,000 for fiscal year 2010.’’.

SEC. 1058. REVIEW AND ENHANCEMENT OF EXISTING AUTHORITIES

FOR USING AIR FORCE AND AIR NATIONAL GUARD MODULAR AIRBORNE FIRE-FIGHTING SYSTEMS AND OTHER

DEPARTMENT OF DEFENSE ASSETS TO FIGHT

WILDFIRES.

(a) REVIEW REQUIRED.—The Director of the Office of Management and Budget shall conduct a review of existing authorities

regarding the use of Air Force and Air National Guard Modular

Airborne Fire-Fighting Systems units and other Department of

Defense assets to fight wildfires to ensure that, in accordance

with applicable legal requirements, such assets are available in

the most expeditious manner to fight wildfires on Federal lands

or non-Federal lands at the request of a Federal agency or State
H. R. 1588—229

government. In conducting the review, the Director shall specifically

consider—

(1) any adverse impact caused by the restrictions contained

in section 1535(a)(4) of title 31, United States Code, or caused

by the interpretation of such restrictions, on the ability of

the Forest Service and other Federal agencies to procure such

firefighting services; and

(2) whether the authorities under the Robert T. Stafford

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121

et seq.), including section 403(c) of such Act (42 U.S.C. 5170b),

are being properly utilized to facilitate an expeditious Department of Defense response to State requests under, and consistent with, such Act for firefighting services.

(b) DETERMINATION REQUIRED.—On the basis of the review,

the Director shall make a determination regarding whether existing

authorities are being used in a manner consistent with using the

available capabilities of Department of Defense assets to fight

wildfires in the most expeditious and efficacious way to minimize

the risk to public safety.

(c) EXPEDITED ECONOMY ACT REVIEW PROCESS.—If the Director

determines under subsection (b) that existing authorities are adequate for the deployment of Department of Defense assets to fight

wildfires, the Director shall develop and implement, subject to

subsection (f), such modifications to the process for conducting

the cost comparison required by section 1535(a)(4) of title 31, United

States Code, as the Director considers appropriate to further expedite the procurement of such firefighting services.

(d) DEVELOPMENT AND IMPLEMENTATION OF REVISED POLICIES.—If the Director determines under subsection (b) that the

existing authorities or their use is inadequate or can be improved,

the Director shall develop and implement, subject to subsection

(f), such regulations, policies, and interagency procedures as may

be necessary to improve the ability of the Department of Defense

to respond to a request by a Federal agency or State government

to assist in fighting wildfires on Federal lands or non-Federal

lands under section 1535(a) of title 31, United States Code, or

the Robert T. Stafford Disaster Relief and Emergency Assistance

Act (42 U.S.C. 5121 et seq.), or both.

(e) REPORTING REQUIREMENT.—Not later than 120 days after

the date of the enactment of this Act, the Director shall transmit

to Congress a report—

(1) containing the results of the review conducted under

subsection (a) and the determination made under subsection

(b); and

(2) based on such determination, describing the modifications proposed to be made to existing authorities under subsection (c) or (d), including whether there is a need for legislative changes to further improve the procedures for using

Department of Defense assets to fight wildfires.

(f) DELAYED IMPLEMENTATION.—The modifications described in

the report prepared under subsection (e) to be made to existing

authorities under subsection (c) or (d) shall not take effect until

the end of the 30-day period beginning on the date on which

the report is transmitted to Congress.
H. R. 1588—230

TITLE XI—CIVILIAN PERSONNEL

MATTERS

Subtitle A—Department of Defense National Security Personnel System

Sec. 1101. Department of Defense national security personnel system.

Subtitle B—Department of Defense Civilian Personnel Generally

Sec. 1111. Pilot program for improved civilian personnel management.

Sec. 1112. Clarification and revision of authority for demonstration project relating

to certain acquisition personnel management policies and procedures.

Sec. 1113. Military leave for mobilized Federal civilian employees.

Sec. 1114. Restoration of annual leave for certain Department of Defense employees. Sec. 1115. Authority to employ civilian faculty members at the Western Hemisphere Institute for Security Cooperation.

Sec. 1116. Extension of authority for experimental personnel program for scientific

and technical personnel.

Subtitle C—Other Federal Government Civilian Personnel Matters

Sec. 1121. Modification of the overtime pay cap.

Sec. 1122. Common occupational and health standards for differential payments as

a consequence of exposure to asbestos.

Sec. 1123. Increase in annual student loan repayment authority.

Sec. 1124. Authorization for cabinet secretaries, secretaries of military departments, and heads of executive agencies to be paid on a biweekly basis.

Sec. 1125. Senior Executive Service and performance.

Sec. 1126. Design elements of pay-for-performance systems in demonstration

projects.

Sec. 1127. Federal flexible benefits plan administrative costs.

Sec. 1128. Employee surveys.

Sec. 1129. Human capital performance fund.

Subtitle A—Department of Defense

National Security Personnel System

SEC. 1101. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

(a) IN GENERAL.—(1) Subpart I of part III of title 5, United

States Code, is amended by adding at the end the following new

chapter:

‘‘CHAPTER 99—DEPARTMENT OF DEFENSE

NATIONAL SECURITY PERSONNEL SYSTEM

‘‘Sec.

‘‘9901. Definitions.

‘‘9902. Establishment of human resources management system.

‘‘9903. Attracting highly qualified experts.

‘‘9904. Special pay and benefits for certain employees outside the United States.

‘‘§ 9901. Definitions

‘‘For purposes of this chapter— ‘‘(1) the term ‘Director’ means the Director of the Office

of Personnel Management; and ‘‘(2) the term ‘Secretary’ means the Secretary of Defense.

‘‘§ 9902. Establishment of human resources management

system

‘‘(a) IN GENERAL.—Notwithstanding any other provision of this

part, the Secretary may, in regulations prescribed jointly with the
H. R. 1588—231

Director, establish, and from time to time adjust, a human resources

management system for some or all of the organizational or functional units of the Department of Defense. The human resources

management system established under authority of this section

shall be referred to as the ‘National Security Personnel System’.

‘‘(b) SYSTEM REQUIREMENTS.—Any system established under

subsection (a) shall—

‘‘(1) be flexible;

‘‘(2) be contemporary;

‘‘(3) not waive, modify, or otherwise affect—

‘‘(A) the public employment principles of merit and

fitness set forth in section 2301, including the principles

of hiring based on merit, fair treatment without regard

to political affiliation or other nonmerit considerations,

equal pay for equal work, and protection of employees

against reprisal for whistleblowing;

‘‘(B) any provision of section 2302, relating to prohibited personnel practices;

‘‘(C)(i) any provision of law referred to in section

2302(b)(1), (8), and (9); or

‘‘(ii) any provision of law implementing any provision

of law referred to in section 2302(b)(1), (8), and (9) by—

‘‘(I) providing for equal employment opportunity

through affirmative action; or

‘‘(II) providing any right or remedy available to

any employee or applicant for employment in the public

service;

‘‘(D) any other provision of this part (as described

in subsection (d)); or

‘‘(E) any rule or regulation prescribed under any provision of law referred to in this paragraph;

‘‘(4) ensure that employees may organize, bargain collectively as provided for in this chapter, and participate through

labor organizations of their own choosing in decisions which

affect them, subject to the provisions of this chapter and any

exclusion from coverage or limitation on negotiability established pursuant to law;

‘‘(5) not be limited by any specific law or authority under

this title, or by any rule or regulation prescribed under this

title, that is waived in regulations prescribed under this

chapter, subject to paragraph (3); and

‘‘(6) include a performance management system that incorporates the following elements:

‘‘(A) Adherence to merit principles set forth in section

2301.

‘‘(B) A fair, credible, and transparent employee

performance appraisal system.

‘‘(C) A link between the performance management

system and the agency’s strategic plan.

‘‘(D) A means for ensuring employee involvement in

the design and implementation of the system.

‘‘(E) Adequate training and retraining for supervisors,

managers, and employees in the implementation and operation of the performance management system.

‘‘(F) A process for ensuring ongoing performance feedback and dialogue between supervisors, managers, and
H. R. 1588—232

employees throughout the appraisal period, and setting

timetables for review.

‘‘(G) Effective safeguards to ensure that the management of the system is fair and equitable and based on

employee performance.

‘‘(H) A means for ensuring that adequate agency

resources are allocated for the design, implementation, and

administration of the performance management system.

‘‘(I) A pay-for-performance evaluation system to better

link individual pay to performance, and provide an equitable method for appraising and compensating employees.

‘‘(c) PERSONNEL MANAGEMENT AT DEFENSE LABORATORIES.—

(1) The National Security Personnel System shall not apply with

respect to a laboratory under paragraph (2) before October 1, 2008,

and shall apply on or after October 1, 2008, only to the extent

that the Secretary determines that the flexibilities provided by

the National Security Personnel System are greater than the flexibilities provided to those laboratories pursuant to section 342 of

the National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 2721) and section 1101 of the Strom

Thurmond National Defense Authorization Act for Fiscal Year 1999

(5 U.S.C. 3104 note), respectively.

‘‘(2) The laboratories to which this subsection applies are—

‘‘(A) the Aviation and Missile Research Development and

Engineering Center;

‘‘(B) the Army Research Laboratory;

‘‘(C) the Medical Research and Materiel Command;

‘‘(D) the Engineer Research and Development Command;

‘‘(E) the Communications-Electronics Command;

‘‘(F) the Soldier and Biological Chemical Command;

‘‘(G) the Naval Sea Systems Command Centers;

‘‘(H) the Naval Research Laboratory;

‘‘(I) the Office of Naval Research; and

‘‘(J) the Air Force Research Laboratory.

‘‘(d) OTHER NONWAIVABLE PROVISIONS.—The other provisions

of this part referred to in subsection (b)(3)(D) are (to the extent

not otherwise specified in this title)—

‘‘(1) subparts A, B, E, G, and H of this part; and

‘‘(2) chapters 41, 45, 47, 55 (except subchapter V thereof,

apart from section 5545b), 57, 59, 71, 72, 73, and 79, and

this chapter.

‘‘(e) LIMITATIONS RELATING TO PAY.—(1) Nothing in this section

shall constitute authority to modify the pay of any employee who

serves in an Executive Schedule position under subchapter II of

chapter 53.

‘‘(2) Except as provided for in paragraph (1), the total amount

in a calendar year of allowances, differentials, bonuses, awards,

or other similar cash payments paid under this title to any employee

who is paid under section 5376 or 5383 or under title 10 or under

other comparable pay authority established for payment of Department of Defense senior executive or equivalent employees may

not exceed the total annual compensation payable to the Vice President under section 104 of title 3.

‘‘(3) To the maximum extent practicable, the rates of compensation for civilian employees at the Department of Defense shall

be adjusted at the same rate, and in the same proportion, as

are rates of compensation for members of the uniformed services.
H. R. 1588—233

‘‘(4) To the maximum extent practicable, for fiscal years 2004

through 2008, the overall amount allocated for compensation of

the civilian employees of an organizational or functional unit of

the Department of Defense that is included in the National Security

Personnel System shall not be less than the amount that would

have been allocated for compensation of such employees for such

fiscal year if they had not been converted to the National Security

Personnel System, based on, at a minimum—

‘‘(A) the number and mix of employees in such organizational or functional unit prior to the conversion of such

employees to the National Security Personnel System; and

‘‘(B) adjusted for normal step increases and rates of promotion that would have been expected, had such employees

remained in their previous pay schedule.

‘‘(5) To the maximum extent practicable, the regulations implementing the National Security Personnel System shall provide a

formula for calculating the overall amount to be allocated for fiscal

years after fiscal year 2008 for compensation of the civilian

employees of an organization or functional unit of the Department

of Defense that is included in the National Security Personnel

System. The formula shall ensure that in the aggregate, employees

are not disadvantaged in terms of the overall amount of pay available as a result of conversion to the National Security Personnel

System, while providing flexibility to accommodate changes in the

function of the organization, changes in the mix of employees performing those functions, and other changed circumstances that

might impact pay levels.

‘‘(f) PROVISIONS TO ENSURE COLLABORATION WITH EMPLOYEE

REPRESENTATIVES.—(1) In order to ensure that the authority of

this section is exercised in collaboration with, and in a manner

that ensures the participation of, employee representatives in the

planning, development, and implementation of the National Security Personnel System, the Secretary and the Director shall provide

for the following:

‘‘(A) The Secretary and the Director shall, with respect

to any proposed system—

‘‘(i) provide to the employee representatives representing any employees who might be affected a written

description of the proposed system or adjustment (including

the reasons why it is considered necessary);

‘‘(ii) give such representatives at least 30 calendar

days (unless extraordinary circumstances require earlier

action) to review and make recommendations with respect

to the proposal; and

‘‘(iii) give any recommendations received from such

representatives under clause (ii) full and fair consideration

in deciding whether or how to proceed with the proposal.

‘‘(B) Following receipt of recommendations, if any, from

such employee representatives with respect to a proposal

described in subparagraph (A), the Secretary and the Director

shall accept such modifications to the proposal in response

to the recommendations as they determine advisable and shall,

with respect to any parts of the proposal as to which they

have not accepted the recommendations—

‘‘(i) notify Congress of those parts of the proposal,

together with the recommendations of the employee representatives;
H. R. 1588—234

‘‘(ii) meet and confer for not less than 30 calendar

days with the employee representatives, in order to attempt

to reach agreement on whether or how to proceed with

those parts of the proposal; and

‘‘(iii) at the Secretary’s option, or if requested by a

majority of the employee representatives participating, use

the services of the Federal Mediation and Conciliation

Service during such meet and confer period to facilitate

the process of attempting to reach agreement.

‘‘(C)(i) Any part of the proposal as to which the representatives do not make a recommendation, or as to which the recommendations are accepted by the Secretary and the Director,

may be implemented immediately.

‘‘(ii) With respect to any parts of the proposal as to which

recommendations have been made but not accepted by the

Secretary and the Director, at any time after 30 calendar days

have elapsed since the initiation of the congressional notification, consultation, and mediation procedures set forth in

subparagraph (B), if the Secretary, in his discretion, determines

that further consultation and mediation is unlikely to produce

agreement, the Secretary may implement any or all of such

parts (including any modifications made in response to the

recommendations as the Secretary determines advisable), but

only after 30 days have elapsed after notifying Congress of

the decision to implement the part or parts involved (as so

modified, if applicable).

‘‘(iii) The Secretary shall notify Congress promptly of the

implementation of any part of the proposal and shall furnish

with such notice an explanation of the proposal, any changes

made to the proposal as a result of recommendations from

the employee representatives, and of the reasons why

implementation is appropriate under this subparagraph. ‘‘(D) If a proposal described in subparagraph (A) is implemented, the Secretary and the Director shall— ‘‘(i) develop a method for the employee representatives

to participate in any further planning or development

which might become necessary; and ‘‘(ii) give the employee representatives adequate access

to information to make that participation productive. ‘‘(2) The Secretary may, at the Secretary’s discretion, engage

in any and all collaboration activities described in this subsection

at an organizational level above the level of exclusive recognition. ‘‘(3) In the case of any employees who are not within a unit

with respect to which a labor organization is accorded exclusive

recognition, the Secretary and the Director may develop procedures

for representation by any appropriate organization which represents

a substantial percentage of those employees or, if none, in such

other manner as may be appropriate, consistent with the purposes

of this subsection.

‘‘(4) The procedures under this subsection are the exclusive

procedures for the participation of employee representatives in the

planning, development, implementation, or adjustment of the

National Security Personnel System.

‘‘(g) PROVISIONS REGARDING NATIONAL LEVEL BARGAINING.—

(1) The National Security Personnel System implemented or modified under this chapter may include employees of the Department

of Defense from any bargaining unit with respect to which a labor
H. R. 1588—235

organization has been accorded exclusive recognition under chapter

71.

‘‘(2) For any bargaining unit so included under paragraph (1),

the Secretary may bargain with a labor organization at an organizational level above the level of exclusive recognition. The decision

to bargain at a level above the level of exclusive recognition shall

not be subject to review or to statutory third-party dispute resolution procedures outside the Department of Defense. Any such bargaining shall—

‘‘(A) be binding on all subordinate bargaining units of the

labor organization at the level of recognition and their exclusive

representatives, and the Department of Defense and its subcomponents, without regard to levels of recognition;

‘‘(B) supersede all other collective bargaining agreements

of the labor organization, including collective bargaining agreements negotiated with an exclusive representative at the level

of recognition, except as otherwise determined by the Secretary;

‘‘(C) not be subject to further negotiations with the labor

organizations for any purpose, including bargaining at the level

of recognition, except as provided for by the Secretary; and

‘‘(D) be subject to review by an independent third party

only to the extent provided and pursuant to procedures established under paragraph (6) of subsection (m).

‘‘(3) The National Guard Bureau and the Army and Air Force

National Guard are excluded from coverage under this subsection.

‘‘(4) Any bargaining completed pursuant to this subsection with

a labor organization not otherwise having national consultation

rights with the Department of Defense or its subcomponents shall

not create any obligation on the Department of Defense or its

subcomponents to confer national consultation rights on such a

labor organization. ‘‘(h) PROVISIONS RELATING TO APPELLATE PROCEDURES.—(1) The

Secretary—

‘‘(A) may establish an appeals process that provides

employees of the Department of Defense organizational and

functional units that are included in the National Security

Personnel System fair treatment in any appeals that they bring

in decisions relating to their employment; and

‘‘(B) shall in prescribing regulations for any such appeals

process—

‘‘(i) ensure that employees in the National Security

Personnel System are afforded the protections of due

process; and

‘‘(ii) toward that end, be required to consult with the

Merit Systems Protection Board before issuing any such

regulations.

‘‘(2) Regulations implementing the appeals process may establish legal standards and procedures for personnel actions, including

standards for applicable relief, to be taken on the basis of employee

misconduct or performance that fails to meet expectations. Such

standards shall be consistent with the public employment principles

of merit and fitness set forth in section 2301. ‘‘(3) Legal standards and precedents applied before the effective

date of this section by the Merit Systems Protection Board and

the courts under chapters 43, 75, and 77 of this title shall apply

to employees of organizational and functional units included in

the National Security Personnel System, unless such standards
H. R. 1588—236

and precedents are inconsistent with legal standards established

under this subsection.

‘‘(4) An employee who—

‘‘(A) is removed, suspended for more than 14 days, furloughed for 30 days or less, reduced in pay, or reduced in

pay band (or comparable reduction) by a final decision under

the appeals process established under paragraph (1);

‘‘(B) is not serving under probationary period as defined

under regulations established under paragraph (2); and

‘‘(C) would otherwise be eligible to appeal a performancebased or adverse action under chapter 43 or 75, as applicable,

to the Merit Systems Protection Board,

shall have the right to petition the full Merit Systems Protection

Board for review of the record of that decision pursuant to regulations established under paragraph (2). The Board may dismiss

any petition that, in the view of the Board, does not raise substantial questions of fact or law. No personnel action shall be stayed

and no interim relief shall be granted during the pendency of

the Board’s review unless specifically ordered by the Board.

‘‘(5) The Board may order such corrective action as the Board

considers appropriate only if the Board determines that the decision

was—

‘‘(A) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;

‘‘(B) obtained without procedures required by law, rule,

or regulation having been followed; or

‘‘(C) unsupported by substantial evidence.

‘‘(6) An employee who is adversely affected by a final order

or decision of the Board may obtain judicial review of the order

or decision as provided in section 7703. The Secretary of Defense,

after notifying the Director, may obtain judicial review of any

final order or decision of the Board under the same terms and

conditions as provided an employee. ‘‘(7) Nothing in this subsection shall be construed to authorize

the waiver of any provision of law, including an appeals provision

providing a right or remedy under section 2302(b) (1), (8) or (9),

that is not otherwise waivable under subsection (a). ‘‘(8) The right of an employee to petition the Merit Systems

Protection Board of the Department’s final decision on an action

covered by paragraph (4) of this subsection, and the right of the

Merit Systems Protection Board to review such action or to order

corrective action pursuant to paragraph (5), is provisional for 7

years after the date of the enactment of this chapter, and shall

become permanent unless Congress acts to revise such provisions. ‘‘(i) PROVISIONS RELATED TO SEPARATION AND RETIREMENT

INCENTIVES.—(1) The Secretary may establish a program within

the Department of Defense under which employees may be eligible

for early retirement, offered separation incentive pay to separate

from service voluntarily, or both. This authority may be used to

reduce the number of personnel employed by the Department of

Defense or to restructure the workforce to meet mission objectives

without reducing the overall number of personnel. This authority

is in addition to, and notwithstanding, any other authorities established by law or regulation for such programs.

‘‘(2)(A) The Secretary may not authorize the payment of voluntary separation incentive pay under paragraph (1) to more than

25,000 employees in any fiscal year, except that employees who
H. R. 1588—237

receive voluntary separation incentive pay as a result of a closure

or realignment of a military installation under the Defense Base

Closure and Realignment Act of 1990 (title XXIX of Public Law

101–510; 10 U.S.C. 2687 note) shall not be included in that number.

‘‘(B) The Secretary shall prepare a report each fiscal year setting

forth the number of employees who received such pay as a result

of a closure or realignment of a military base as described under

subparagraph (A).

‘‘(C) The Secretary shall submit the report under subparagraph

(B) to the Committee on Armed Services and the Committee on

Governmental Affairs of the Senate, and the Committee on Armed

Services and the Committee on Government Reform of the House

of Representatives.

‘‘(3) For purposes of this section, the term ‘employee’ means

an employee of the Department of Defense, serving under an

appointment without time limitation, except that such term does

not include—

‘‘(A) a reemployed annuitant under subchapter III of

chapter 83 or chapter 84, or another retirement system for

employees of the Federal Government;

‘‘(B) an employee having a disability on the basis of which

such employee is or would be eligible for disability retirement

under any of the retirement systems referred to in subparagraph (A); or

‘‘(C) for purposes of eligibility for separation incentives

under this section, an employee who is in receipt of a decision

notice of involuntary separation for misconduct or unacceptable

performance.

‘‘(4) An employee who is at least 50 years of age and has

completed 20 years of service, or has at least 25 years of service,

may, pursuant to regulations promulgated under this section, apply

and be retired from the Department of Defense and receive benefits

in accordance with chapter 83 or 84 if the employee has been

employed continuously within the Department of Defense for more

than 30 days before the date on which the determination to conduct

a reduction or restructuring within 1 or more Department of

Defense components is approved.

‘‘(5)(A) Separation pay shall be paid in a lump sum or in

installments and shall be equal to the lesser of—

‘‘(i) an amount equal to the amount the employee would

be entitled to receive under section 5595(c), if the employee

were entitled to payment under such section; or

‘‘(ii) $25,000.

‘‘(B) Separation pay shall not be a basis for payment, and

shall not be included in the computation, of any other type of

Government benefit. Separation pay shall not be taken into account

for the purpose of determining the amount of any severance pay

to which an individual may be entitled under section 5595, based

on any other separation.

‘‘(C) Separation pay, if paid in installments, shall cease to

be paid upon the recipient’s acceptance of employment by the Federal Government, or commencement of work under a personal services contract as described in paragraph (6).

‘‘(6)(A) An employee who receives separation pay under such

program may not be reemployed by the Department of Defense

for a 12-month period beginning on the effective date of the
H. R. 1588—238

employee’s separation, unless this prohibition is waived by the

Secretary on a case-by-case basis.

‘‘(B) An employee who receives separation pay under this section on the basis of a separation occurring on or after the date

of the enactment of the Federal Workforce Restructuring Act of

1994 (Public Law 103–236; 108 Stat. 111) and accepts employment

with the Government of the United States, or who commences

work through a personal services contract with the United States

within 5 years after the date of the separation on which payment

of the separation pay is based, shall be required to repay the

entire amount of the separation pay to the Department of Defense.

If the employment is with an Executive agency (as defined by

section 105) other than the Department of Defense, the Director

may, at the request of the head of that agency, waive the repayment

if the individual involved possesses unique abilities and is the

only qualified applicant available for the position. If the employment

is within the Department of Defense, the Secretary may waive

the repayment if the individual involved is the only qualified

applicant available for the position. If the employment is with

an entity in the legislative branch, the head of the entity or the

appointing official may waive the repayment if the individual

involved possesses unique abilities and is the only qualified

applicant available for the position. If the employment is with

the judicial branch, the Director of the Administrative Office of

the United States Courts may waive the repayment if the individual

involved possesses unique abilities and is the only qualified

applicant available for the position.

‘‘(7) Under this program, early retirement and separation pay

may be offered only pursuant to regulations established by the

Secretary, subject to such limitations or conditions as the Secretary

may require. ‘‘(j) PROVISIONS RELATING TO REEMPLOYMENT.—If an annuitant

receiving an annuity from the Civil Service Retirement and Disability Fund becomes employed in a position within the Department

of Defense, his annuity shall continue. An annuitant so reemployed

shall not be considered an employee for purposes of chapter 83

or 84.

‘‘(k) ADDITIONAL PROVISIONS RELATING TO PERSONNEL MANAGEMENT.—(1) Notwithstanding subsection (d), the Secretary of

Defense, in establishing and implementing the National Security

Personnel System under subsection (a), shall not be limited by

any provision of this title or any rule or regulation prescribed

under this title in establishing and implementing regulations

relating to—

‘‘(A) the methods of establishing qualification requirements

for, recruitment for, and appointments to positions;

‘‘(B) the methods of assigning, reassigning, detailing,

transferring, or promoting employees; and

‘‘(C) the methods of reducing overall agency staff and grade

levels, except that performance, veterans’ preference, tenure

of employment, length of service, and such other factors as

the Secretary considers necessary and appropriate shall be

considered in decisions to realign or reorganize the Department’s workforce.

‘‘(2) In implementing this subsection, the Secretary shall comply

with the provisions of section 2302(b)(11), regarding veterans’ preference requirements, as provided for in subsection (b)(3).
H. R. 1588—239

‘‘(l) PHASE-IN.—The Secretary may apply the National Security

Personnel System—

‘‘(1) to an organizational or functional unit that includes

up to 300,000 civilian employees of the Department of Defense,

without having to make a determination described in paragraph

(2); and

‘‘(2) to an organizational or functional unit that includes

more than 300,000 civilian employees of the Department of

Defense, if the Secretary determines in accordance with subsection (a) that the Department has in place a performance

management system that meets the criteria specified in subsection (b).

‘‘(m) LABOR MANAGEMENT RELATIONS IN THE DEPARTMENT OF

DEFENSE.—(1) Notwithstanding section 9902(d)(2), the Secretary,

together with the Director, may establish and from time to time

adjust a labor relations system for the Department of Defense

to address the unique role that the Department’s civilian workforce

plays in supporting the Department’s national security mission.

‘‘(2) The system developed or adjusted under paragraph (1)

would allow for a collaborative issue-based approach to labor

management relations.

‘‘(3) In order to ensure that the authority of this section is

exercised in collaboration with, and in a manner that ensures

the participation of, employee representatives in the development

and implementation of the labor management relations system or

adjustments to such system under this section, the Secretary shall

provide for the following:

‘‘(A) The Secretary and the Director shall, with respect

to any proposed system or adjustment—

‘‘(i) afford employee representatives and management

the opportunity to have meaningful discussions concerning

the development of the new system;

‘‘(ii) give such representatives at least 30 calendar

days (unless extraordinary circumstances require earlier

action) to review the proposal for the system and make

recommendations with respect to it; and

‘‘(iii) give any recommendations received from such

representatives under clause (ii) full and fair consideration.

‘‘(B) Following receipt of recommendations, if any, from

such employee representatives with respect to a proposal

described in subparagraph (A), the Secretary and the Director

shall accept such modifications to the proposal in response

to the recommendations as are determined advisable and shall,

with respect to any parts of the proposal as to which they

have not accepted the recommendations—

‘‘(i) meet and confer for not less than 30 calendar

days with the employee representatives, in order to attempt

to reach agreement on whether or how to proceed with

those parts of the proposal; and

‘‘(ii) at the Secretary’s option, or if requested by a

majority of the employee representatives participating, use

the services of the Federal Mediation and Conciliation

Service during such meet and confer period to facilitate

the process of attempting to reach agreement.
H. R. 1588—240

‘‘(C)(i) Any part of the proposal described in subparagraph

(A) as to which employee representatives do not make a recommendation, or as to which the recommendations are accepted

under subparagraph (B), may be implemented immediately.

‘‘(ii) With respect to any parts of the proposal as to which

recommendations have been made but not accepted, at any

time after 30 calendar days have elapsed since the consultation

and mediation procedures set forth in subparagraph (B), if

the Secretary, in his discretion, determines that further consultation and mediation is unlikely to produce agreement, the

Secretary may implement any or all of such parts (including

any modifications made in response to the recommendations

as the Secretary determines advisable), but only after 30 days

have elapsed after notifying Congress of the decision to implement the part or parts involved (as so modified, if applicable).

‘‘(D) The process for collaborating with employee representatives provided for under this subsection shall begin no later

than 60 calendar days after the date of enactment of this

subsection.

‘‘(4) The Secretary may engage in any and all collaboration

activities described in this subsection at an organizational level

above the level of exclusive recognition.

‘‘(5) The system developed or adjusted under this subsection

may incorporate the authority to bargain at a level above the

level of exclusion recognition provided for in subsection (g) of this

section, but may not abrogate or modify the authority provided

for in that subsection. Notwithstanding this subsection, the Secretary may, at his discretion, implement the authority in subsection

(g) immediately upon enactment of this subsection.

‘‘(6) The labor relations system developed or adjusted under

this subsection shall provide for independent third party review

of decisions, including defining what decisions are reviewable by

the third party, what third party would conduct the review, and

the standard or standards for that review.

‘‘(7) Nothing in this section, including the authority provided

to waive, modify, or otherwise affect provisions of law not listed

in subsections (b) and (c) as nonwaivable, shall be construed to

expand the scope of bargaining under chapter 71 or this subsection

with respect to any provision of this title that may be waived,

modified, or otherwise affected under this section.

‘‘(8) The labor relations system developed or adjusted under

this subsection shall be binding on all bargaining units within

the Department of Defense, all employee representatives of such

units, and the Department of Defense and its subcomponents, and

shall supersede all other collective bargaining agreements for bargaining units in the Department of Defense, including collective

bargaining agreements negotiated with employee representatives

at the level of recognition, except as otherwise determined by the

Secretary.

‘‘(9) Unless it is extended or otherwise provided for in law,

the authority to establish, implement and adjust the labor relations

system developed under this subsection shall expire six years after

the date of enactment of this subsection, at which time the provisions of chapter 71 will apply.
H. R. 1588—241

‘‘§ 9903. Attracting highly qualified experts

‘‘(a) IN GENERAL.—The Secretary may carry out a program

using the authority provided in subsection (b) in order to attract

highly qualified experts in needed occupations, as determined by

the Secretary.

‘‘(b) AUTHORITY.—Under the program, the Secretary may—

‘‘(1) appoint personnel from outside the civil service and

uniformed services (as such terms are defined in section 2101)

to positions in the Department of Defense without regard to

any provision of this title governing the appointment of

employees to positions in the Department of Defense;

‘‘(2) prescribe the rates of basic pay for positions to which

employees are appointed under paragraph (1) at rates not in

excess of the maximum rate of basic pay authorized for seniorlevel positions under section 5376, as increased by localitybased comparability payments under section 5304, notwithstanding any provision of this title governing the rates of pay

or classification of employees in the executive branch; and

‘‘(3) pay any employee appointed under paragraph (1) payments in addition to basic pay within the limits applicable

to the employee under subsection (d).

‘‘(c) LIMITATION ON TERM OF APPOINTMENT.—(1) Except as provided in paragraph (2), the service of an employee under an appointment made pursuant to this section may not exceed 5 years.

‘‘(2) The Secretary may, in the case of a particular employee,

extend the period to which service is limited under paragraph

(1) by up to 1 additional year if the Secretary determines that

such action is necessary to promote the Department of Defense’s

national security missions.

‘‘(d) LIMITATIONS ON ADDITIONAL PAYMENTS.—(1) The total

amount of the additional payments paid to an employee under

this section for any 12-month period may not exceed the lesser

of the following amounts:

‘‘(A) $50,000 in fiscal year 2004, which may be adjusted

annually thereafter by the Secretary, with a percentage

increase equal to one-half of 1 percentage point less than the

percentage by which the Employment Cost Index, published

quarterly by the Bureau of Labor Statistics, for the base quarter

of the year before the preceding calendar year exceeds the

Employment Cost Index for the base quarter of the second

year before the preceding calendar year.

‘‘(B) The amount equal to 50 percent of the employee’s

annual rate of basic pay.

For purposes of this paragraph, the term ‘base quarter’ has the

meaning given such term by section 5302(3).

‘‘(2) An employee appointed under this section is not eligible

for any bonus, monetary award, or other monetary incentive for

service except for payments authorized under this section.

‘‘(3) Notwithstanding any other provision of this subsection

or of section 5307, no additional payments may be paid to an

employee under this section in any calendar year if, or to the

extent that, the employee’s total annual compensation will exceed

the maximum amount of total annual compensation payable at

the salary set in accordance with section 104 of title 3.

‘‘(e) LIMITATION ON NUMBER OF HIGHLY QUALIFIED EXPERTS.—

The number of highly qualified experts appointed and retained
H. R. 1588—242

by the Secretary under subsection (b)(1) shall not exceed 2,500

at any time.

‘‘(f) SAVINGS PROVISIONS.—In the event that the Secretary

terminates this program, in the case of an employee who, on the

day before the termination of the program, is serving in a position

pursuant to an appointment under this section—

‘‘(1) the termination of the program does not terminate

the employee’s employment in that position before the expiration of the lesser of—

‘‘(A) the period for which the employee was appointed;

or

‘‘(B) the period to which the employee’s service is limited under subsection (c), including any extension made

under this section before the termination of the program;

and

‘‘(2) the rate of basic pay prescribed for the position under

this section may not be reduced as long as the employee continues to serve in the position without a break in service.

‘‘§ 9904. Special pay and benefits for certain employees outside the United States

‘‘The Secretary may provide to certain civilian employees of

the Department of Defense assigned to activities outside the United

States as determined by the Secretary to be in support of Department of Defense activities abroad hazardous to life or health or

so specialized because of security requirements as to be clearly

distinguishable from normal Government employment—

‘‘(1) allowances and benefits—

‘‘(A) comparable to those provided by the Secretary

of State to members of the Foreign Service under chapter

9 of title I of the Foreign Service Act of 1980 (Public

Law 96–465, 22 U.S.C. 4081 et seq.) or any other provision

of law; or

‘‘(B) comparable to those provided by the Director of

Central Intelligence to personnel of the Central Intelligence

Agency; and

‘‘(2) special retirement accrual benefits and disability in

the same manner provided for by the Central Intelligence

Agency Retirement Act (50 U.S.C. 2001 et seq.) and in section

18 of the Central Intelligence Agency Act of 1949 (50 U.S.C.

403r).’’.

(2) The table of chapters for part III of such title is amended

by adding at the end of subpart I the following new item:

‘‘99. Department of Defense National Security Personnel System .................... 9901’’.

(b) IMPACT ON DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL.—(1) Any exercise of authority under chapter 99 of such

title (as added by subsection (a)), including under any system established under such chapter, shall be in conformance with the requirements of this subsection.

(2) No other provision of this Act or of any amendment made

by this Act may be construed or applied in a manner so as to

limit, supersede, or otherwise affect the provisions of this section,

except to the extent that it does so by specific reference to this

section.
H. R. 1588—243

Subtitle B—Department of Defense

Civilian Personnel Generally

SEC. 1111. PILOT PROGRAM FOR IMPROVED CIVILIAN PERSONNEL

MANAGEMENT.

(a) PILOT PROGRAM.—The Secretary of Defense may carry out

a pilot program using an automated workforce management system

to demonstrate improved efficiency in the performance of civilian

personnel management. The automated workforce management

system used for the pilot program shall be capable of automating

the following workforce management functions:

(1) Job definition.

(2) Position management.

(3) Recruitment.

(4) Staffing.

(5) Performance management.

(b) AUTHORITIES UNDER PILOT PROGRAM.—Under the pilot program, the Secretary of Defense shall provide the Secretary of each

military department with the authority for the following:

(1) To use an automated workforce management system

for the civilian workforce of that military department to assess

the potential of such a system to do the following:

(A) Substantially reduce hiring cycle times.

(B) Lower labor costs.

(C) Increase efficiency.

(D) Improve performance management.

(E) Provide better management reporting.

(F) Enable that system to make operational new personnel management flexibilities granted under the civilian

personnel transformation program.

(2) Identify at least one regional civilian personnel center

(or equivalent) in that military department for participation

in the pilot program.

(c) DURATION OF PILOT PROGRAM.—The Secretary of Defense

may carry out the pilot program under this section at each selected

regional civilian personnel center for a period of two years beginning

not later than March 1, 2004.

SEC. 1112. CLARIFICATION AND REVISION OF AUTHORITY FOR DEMONSTRATION PROJECT RELATING TO CERTAIN ACQUISITION PERSONNEL MANAGEMENT POLICIES AND PROCEDURES.

Section 4308 of the National Defense Authorization Act for

Fiscal Year 1996 (10 U.S.C. 1701 note) is amended—

(1) in subsection (b), by striking paragraph (3) and inserting

the following:

‘‘(3) CONDITIONS.—Paragraph (2) shall not apply with

respect to a demonstration project unless—

‘‘(A) for each organization or team participating in

the demonstration project—

‘‘(i) at least one-third of the workforce participating

in the demonstration project consists of members of

the acquisition workforce; and
H. R. 1588—244

‘‘(ii) at least two-thirds of the workforce participating in the demonstration project consists of members of the acquisition workforce and supporting personnel assigned to work directly with the acquisition

workforce; and

‘‘(B) the demonstration project commences before

October 1, 2007.’’;

(2) in subsection (d), by striking ‘‘95,000’’ and inserting ‘‘120,000’’;

(3) by redesignating subsection (e) as subsection (f); and

(4) by inserting after subsection (d) the following: ‘‘(e) EFFECT OF REORGANIZATIONS.—The applicability of paragraph (2) of subsection (b) to an organization or team shall not

terminate by reason that the organization or team, after having

satisfied the conditions in paragraph (3) of such subsection when

it began to participate in a demonstration project under this section,

ceases to meet one or both of the conditions set forth in subparagraph (A) of such paragraph (3) as a result of a reorganization,

restructuring, realignment, consolidation, or other organizational

change.’’.

SEC. 1113. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN

EMPLOYEES.

(a) IN GENERAL.—Subsection (b) of section 6323 of title 5,

United States Code, is amended— (1) in paragraph (2)— (A) by redesignating subparagraphs (A) and (B) as

clauses (i) and (ii), respectively, and at the end of clause

(ii), as so redesignated, by inserting ‘‘or’’; and

(B) by inserting ‘‘(A)’’ after ‘‘(2)’’; and

(2) by inserting the following before the text beginning

with ‘‘is entitled’’: ‘‘(B) performs full-time military service as a result of a

call or order to active duty in support of a contingency operation

as defined in section 101(a)(13) of title 10;’’. (b) EFFECTIVE DATE.—The amendments made by subsection

(a) shall apply to military service performed on or after the date

of the enactment of this Act.

SEC. 1114. RESTORATION OF ANNUAL LEAVE FOR CERTAIN DEPARTMENT OF DEFENSE EMPLOYEES.

(a) RESTORATION OF ANNUAL LEAVE.—During the period

October 1, 1992, through December 31, 1997, all employees transferring from a closing or realigning Department of Defense installation

or activity as defined under section 6304(d)(3) of title 5, United

States Code, to another Department of Defense installation or

activity—

(1) may be deemed eligible by the Secretary of Defense

for automatic restoration of forfeited annual leave under section

6304(d)(3) of title 5, United States Code, during the year of

transfer; and

(2) may be deemed by the Secretary of Defense to have

used all forfeited annual leave properly restored under section

6304(d)(3) of title 5, United States Code, within the appropriate

time limits, only if such restored annual leave was used by

the employee or paid to the employee in the form of a lump

sum payment under section 5551(a) of title 5, United States

Code, by the last day of the 2001 leave year.
H. R. 1588—245

(b) PAYMENT OF RESTORED ANNUAL LEAVE.—(1) On or after

September 23, 1996, all employees transferring from a closing or

realigning Department of Defense installation or activity as defined

under section 6304(d)(3)(A) of title 5, United States Code, to another

Department of Defense installation or activity who, upon transfer,

were entitled to payment of a lump sum payment under section

5551(c) of title 5, United States Code, for forfeited annual leave

properly restored under section 6304(d)(3) of title 5, United States

Code—

(A) may be paid only for any such restored annual leave

currently remaining to their credit at the hourly rate payable

on the date of transfer with appropriate back pay interest;

and

(B) shall be deemed paid for all such restored annual

leave to which that employee was entitled to payment upon

transfer, but subsequently used or was otherwise paid for upon

separation.

(2) This subsection shall take effect on the date of the enactment

of this Act.

SEC. 1115. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEMBERS AT

THE WESTERN HEMISPHERE INSTITUTE FOR SECURITY

COOPERATION.

Section 1595(c) of title 10, United States Code, is amended

by adding at the end the following new paragraph:

‘‘(6) The Western Hemisphere Institute for Security

Cooperation.’’.

SEC. 1116. EXTENSION OF AUTHORITY FOR EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND TECHNICAL

PERSONNEL.

(a) EXTENSION OF PROGRAM.—Subsection (e)(1) of section 1101

of the Strom Thurmond National Defense Authorization Act for

Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2139; 5 U.S.C.

3104 note) is amended by striking ‘‘October 16, 2005’’ and inserting

‘‘September 30, 2008’’.

(b) COMMENSURATE EXTENSION OF REQUIREMENT FOR ANNUAL

REPORT.—Subsection (g) of such section is amended by striking

‘‘2006’’ and inserting ‘‘2009’’.

Subtitle C—Other Federal Government

Civilian Personnel Matters

SEC. 1121. MODIFICATION OF THE OVERTIME PAY CAP.

Section 5542(a)(2) of title 5, United States Code, is amended—

(1) by inserting ‘‘the greater of’’ before ‘‘one and one-half’’;

and

(2) by inserting ‘‘or the hourly rate of basic pay of the

employee’’ after ‘‘law)’’ the second place it appears.

SEC. 1122. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR

DIFFERENTIAL PAYMENTS AS A CONSEQUENCE OF EXPOSURE TO ASBESTOS.

(a) PREVAILING RATE SYSTEMS.—Section 5343(c)(4) of title 5,

United States Code, is amended by inserting before the semicolon

at the end the following: ‘‘, and for any hardship or hazard related
H. R. 1588—246

to asbestos, such differentials shall be determined by applying

occupational safety and health standards consistent with the

permissible exposure limit promulgated by the Secretary of Labor

under the Occupational Safety and Health Act of 1970’’.

(b) GENERAL SCHEDULE PAY RATES.—Section 5545(d) of such

title is amended by inserting before the period at the end of the

first sentence the following: ‘‘, and for any hardship or hazard

related to asbestos, such differentials shall be determined by

applying occupational safety and health standards consistent with

the permissible exposure limit promulgated by the Secretary of

Labor under the Occupational Safety and Health Act of 1970’’.

(c) APPLICABILITY.—Subject to any vested constitutional property rights, any administrative or judicial determination after the

date of the enactment of this Act concerning backpay for a differential established under sections 5343(c)(4) or 5545(d) of such title

shall be based on occupational safety and health standards

described in the amendments made by subsections (a) and (b).

SEC. 1123. INCREASE IN ANNUAL STUDENT LOAN REPAYMENT

AUTHORITY.

(a) INCREASE.—Section 5379(b)(2)(A) of title 5, United States

Code, is amended by striking ‘‘$6,000’’ and inserting ‘‘$10,000’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on January 1, 2004.

SEC. 1124. AUTHORIZATION FOR CABINET SECRETARIES, SECRETARIES OF MILITARY DEPARTMENTS, AND HEADS OF

EXECUTIVE AGENCIES TO BE PAID ON A BIWEEKLY

BASIS.

(a) AUTHORIZATION.—Section 5504 of title 5, United States

Code, is amended—

(1) by redesignating subsection (c) as subsection (d);

(2) by striking the last sentence of both subsection (a)

and subsection (b); and

(3) by inserting after subsection (b) the following:

‘‘(c) For the purposes of this section:

‘‘(1) The term ‘employee’ means—

‘‘(A) an employee in or under an Executive agency;

‘‘(B) an employee in or under the Office of the Architect

of the Capitol, the Botanic Garden, and the Library of

Congress, for whom a basic administrative workweek is

established under section 6101(a)(5) of this title; and

‘‘(C) an individual employed by the government of the

District of Columbia.

‘‘(2) The term ‘employee’ does not include—

‘‘(A) an employee on the Isthmus of Panama in the

service of the Panama Canal Commission; or

‘‘(B) an employee or individual excluded from the definition of employee in section 5541(2) of this title other

than an employee or individual excluded by clauses (ii),

(iii), and (xiv) through (xvii) of such section.

‘‘(3) Notwithstanding paragraph (2), an individual who

otherwise would be excluded from the definition of employee

shall be deemed to be an employee for purposes of this section

if the individual’s employing agency so elects, under guidelines

in regulations promulgated by the Office of Personnel Management under subsection (d)(2).’’.
H. R. 1588—247

(b) GUIDELINES.—Subsection (d) of section 5504 of such title,

as redesignated by subsection (a), is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) The Office of Personnel Management shall provide guidelines by regulation for exemptions to be made by the heads of

agencies under subsection (c)(3). Such guidelines shall provide for

such exemptions only under exceptional circumstances.’’.

SEC. 1125. SENIOR EXECUTIVE SERVICE AND PERFORMANCE.

(a) SENIOR EXECUTIVE PAY.—Chapter 53 of title 5, United

States Code, is amended—

(1) in section 5304—

(A) in subsection (g)(2)—

(i) in subparagraph (A) by striking ‘‘subparagraphs

(A)–(E)’’ and inserting ‘‘subparagraphs (A)–(D)’’; and

(ii) in subparagraph (B) by striking ‘‘subsection

(h)(1)(F)’’ and inserting ‘‘subsection (h)(1)(D)’’;

(B) in subsection (h)(1)—

(i) by striking subparagraphs (B) and (C);

(ii) by redesignating subparagraphs (D), (E), and

(F) as subparagraphs (B), (C), and (D), respectively;

(iii) in clause (ii) by striking ‘‘or’’ at the end;

(iv) in clause (iii) by striking the period and

inserting a semicolon; and

(v) by adding at the end the following new clauses:

‘‘(iv) a Senior Executive Service position under section 3132;

‘‘(v) a position in the Federal Bureau of Investigation and

Drug Enforcement Administration Senior Executive Service

under section 3151; or

‘‘(vi) a position in a system equivalent to the system in

clause (iv), as determined by the President’s Pay Agent designated under subsection (d).’’; and

(C) in subsection (h)(2)(B)—

(i) in clause (i)—

(I) by striking ‘‘subparagraphs (A) through (E)’’

and inserting ‘‘subparagraphs (A) through (C)’’;

and

(II) by striking ‘‘clause (i) or (ii)’’ and inserting

‘‘clause (i), (ii), (iii), (iv), (v), or (vii)’’; and

(ii) in clause (ii)—

(I) by striking ‘‘paragraph (1)(F)’’ and inserting

‘‘paragraph (1)(D)’’; and

(II) by striking ‘‘clause (i) or (ii)’’ and inserting ‘‘clause (i), (ii), (iii), (iv), (v), or (vi)’’;

(2) by amending section 5382 to read as follows:

‘‘§ 5382. Establishment of rates of pay for the Senior Executive Service

‘‘(a) Subject to regulations prescribed by the Office of Personnel

Management, there shall be established a range of rates of basic

pay for the Senior Executive Service, and each senior executive

shall be paid at one of the rates within the range, based on individual performance, contribution to the agency’s performance, or

both, as determined under a rigorous performance management

system. The lowest rate of the range shall not be less than the

minimum rate of basic pay payable under section 5376, and the
H. R. 1588—248

highest rate, for any position under this system or an equivalent

system as determined by the President’s Pay Agent designated

under section 5304(d), shall not exceed the rate for level III of

the Executive Schedule. The payment of the rates shall not be

subject to the pay limitation of section 5306(e) or 5373.

‘‘(b) Notwithstanding the provisions of subsection (a), the

applicable maximum shall be level II of the Executive Schedule

for any agency that is certified under section 5307 as having a

performance appraisal system which, as designed and applied,

makes meaningful distinctions based on relative performance.

‘‘(c) No employee may suffer a reduction in pay by reason

of transfer from an agency with an applicable maximum rate of

pay prescribed under subsection (b) to an agency with an applicable

maximum rate of pay prescribed under subsection (a).’’; and

(3) in section 5383—

(A) in subsection (a) by striking ‘‘which of the rates

established under section 5382 of this title’’ and inserting

‘‘which of the rates within a range established under section

5382’’; and

(B) in subsection (c) by striking ‘‘for any pay adjustment under section 5382 of this title’’ and inserting ‘‘as

provided in regulations prescribed by the Office under section 5385’’.

(b) POST-EMPLOYMENT RESTRICTIONS.—(1) Clause (ii) of section

207(c)(2)(A) of title 18, United States Code, is amended to read

as follows:

‘‘(ii) employed in a position which is not referred to

in clause (i) and for which that person is paid at a rate

of basic pay which is equal to or greater than 86.5 percent

of the rate of basic pay for level II of the Executive

Schedule, or, for a period of 2 years following the enactment

of the National Defense Authorization Act for Fiscal Year

2004, a person who, on the day prior to the enactment

of that Act, was employed in a position which is not referred

to in clause (i) and for which the rate of basic pay, exclusive

of any locality-based pay adjustment under section 5304

or section 5304a of title 5, was equal to or greater than

the rate of basic pay payable for level 5 of the Senior

Executive Service on the day prior to the enactment of

that Act,’’.

(2) Subchapter I of chapter 73 of title 5, United States Code,

is amended by inserting at the end the following new section:

‘‘§ 7302. Post-employment notification

‘‘(a) Not later than the effective date of the amendments made

by section 1106 of the National Defense Authorization Act for

Fiscal Year 2004, or 180 days after the date of the enactment

of that Act, whichever is later, the Office of Personnel Management

shall, in consultation with the Attorney General and the Office

of Government Ethics, promulgate regulations requiring that each

Executive branch agency notify any employee of that agency who

is subject to the provisions of section 207(c)(1) of title 18, as a

result of the amendment to section 207(c)(2)(A)(ii) of that title

by that Act.

‘‘(b) The regulations shall require that notice be given before,

or as part of, the action that affects the employee’s coverage under

section 207(c)(1) of title 18, by virtue of the provisions of section
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207(c)(2)(A)(ii) of that title, and again when employment or service

in the covered position is terminated.’’. (3) The table of sections for chapter 73 of title 5, United States

Code, is amended by adding after the item relating to section

7301 the following:

‘‘7302. Post-employment notification.’’.

(c) EFFECTIVE DATE AND APPLICABILITY.—(1) The amendments

made by this section shall take effect on the first day of the

first pay period beginning on or after the first January 1 following

the date of the enactment of this section.

(2) The amendments made by subsection (a) may not result

in a reduction in the rate of basic pay for any senior executive

during the first year after the effective date of those amendments.

(3) For the purposes of paragraph (2), the rate of basic pay

for a senior executive shall be deemed to be the rate of basic

pay set for the senior executive under section 5383 of title 5,

United States Code, plus applicable locality pay paid to that senior

executive, as of the date of the enactment of this Act.

(4) Until otherwise provided by law, or except as otherwise

provided by this section, any reference in a provision of law to

a rate of basic pay that is above the minimum payable and below

the maximum payable to a member of the Senior Executive Service

shall be considered a reference to the rate of basic pay payable

for level IV of the Executive Schedule.

SEC. 1126. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS

IN DEMONSTRATION PROJECTS.

A pay-for-performance system may not be initiated under

chapter 47 of title 5, United States Code, after the date of the

enactment of this Act, unless it incorporates the following elements:

(1) Adherence to merit principles set forth in section 2301

of such title.

(2) A fair, credible, and transparent employee performance

appraisal system.

(3) A link between elements of the pay-for-performance

system, the employee performance appraisal system, and the

agency’s strategic plan.

(4) A means for ensuring employee involvement in the

design and implementation of the system.

(5) Adequate training and retraining for supervisors, managers, and employees in the implementation and operation

of the pay-for-performance system.

(6) A process for ensuring ongoing performance feedback

and dialogue between supervisors, managers, and employees

throughout the appraisal period, and setting timetables for

review.

(7) Effective safeguards to ensure that the management

of the system is fair and equitable and based on employee

performance.

(8) A means for ensuring that adequate agency resources

are allocated for the design, implementation, and administration of the pay-for-performance system.

SEC. 1127. FEDERAL FLEXIBLE BENEFITS PLAN ADMINISTRATIVE

COSTS.

(a) IN GENERAL.—Notwithstanding any other provision of law,

an agency or other employing entity of the Government which
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provides or plans to provide a flexible spending account option

for its employees shall not impose any fee with respect to any

of its employees in order to defray the administrative costs associated therewith.

(b) OFFSET OF ADMINISTRATIVE COSTS.—Each such agency or

employing entity that offers a flexible spending account option

under a program established or administered by the Office of Personnel Management shall periodically forward to such Office, or

entity designated by such Office, the amount necessary to offset

the administrative costs of such program which are attributable

to such agency.

(c) REPORTS.—(1) The Office shall submit a report to the Committee on Government Reform of the House of Representatives

and the Committee on Governmental Affairs of the Senate no

later than March 31, 2004, specifying the administrative costs associated with the Governmentwide program (referred to in subsection

(b)) for fiscal year 2003, as well as the projected administrative

costs of such program for each of the 5 fiscal years thereafter.

(2) At the end of each of the first 3 calendar years in which

an agency or other employing entity offers a flexible spending

account option under this section, such agency or entity shall submit

a report to the Office of Management and Budget showing the

amount of its employment tax savings in such year which are

attributable to such option, net of administrative fees paid under

subsection (b).

SEC. 1128. EMPLOYEE SURVEYS.

(a) IN GENERAL.—Each agency shall conduct an annual survey

of its employees (including survey questions unique to the agency

and questions prescribed under subsection (b)) to assess— (1) leadership and management practices that contribute

to agency performance; and

(2) employee satisfaction with— (A) leadership policies and practices;

(B) work environment;

(C) rewards and recognition for professional accomplishment and personal contributions to achieving

organizational mission;

(D) opportunity for professional development and

growth; and

(E) opportunity to contribute to achieving organizational mission.

(b) REGULATIONS.—The Office of Personnel Management shall

issue regulations prescribing survey questions that should appear

on all agency surveys under subsection (a) in order to allow a

comparison across agencies.

(c) AVAILABILITY OF RESULTS.—The results of the agency surveys under subsection (a) shall be made available to the public

and posted on the website of the agency involved, unless the head

of such agency determines that doing so would jeopardize or negatively impact national security.

(d) AGENCY DEFINED.—For purposes of this section, the term

‘‘agency’’ means an Executive agency (as defined by section 105

of title 5, United States Code).

SEC. 1129. HUMAN CAPITAL PERFORMANCE FUND.

(a) IN GENERAL.—Subpart D of part III of title 5, United States

Code, is amended by inserting after chapter 53 the following:
H. R. 1588—251

‘‘CHAPTER 54—HUMAN CAPITAL PERFORMANCE FUND

‘‘Sec.

‘‘5401. Purpose.

‘‘5402. Definitions.

‘‘5403. Human Capital Performance Fund.

‘‘5404. Human capital performance payments.

‘‘5405. Regulations.

‘‘5406. Agency plan.

‘‘5407. Nature of payment.

‘‘5408. Appropriations.

‘‘§ 5401. Purpose

‘‘The purpose of this chapter is to promote, through the creation

of a Human Capital Performance Fund, greater performance in

the Federal Government. Monies from the Fund will be used to

reward agencies’ highest performing and most valuable employees.

This Fund will offer Federal managers a new tool to recognize

employee performance that is critical to the achievement of agency

missions.

‘‘§ 5402. Definitions

‘‘For the purpose of this chapter—

‘‘(1) ‘agency’ means an Executive agency under section 105,

but does not include the General Accounting Office;

‘‘(2) ‘employee’ includes—

‘‘(A) an individual paid under a statutory pay system

defined in section 5302(1);

‘‘(B) a prevailing rate employee, as defined in section

5342(a)(2); and

‘‘(C) a category of employees included by the Office

of Personnel Management following the review of an agency

plan under section 5403(b)(1);

but does not include—

‘‘(i) an individual paid at an annual rate of basic pay

for a level of the Executive Schedule, under subchapter

II of chapter 53, or at a rate provided for one of those

levels under another provision of law;

‘‘(ii) a member of the Senior Executive Service paid

under subchapter VIII of chapter 53, or an equivalent

system;

‘‘(iii) an administrative law judge paid under section

5372;

‘‘(iv) a contract appeals board member paid under section 5372a;

‘‘(v) an administrative appeals judge paid under section

5372b; and

‘‘(vi) an individual in a position which is excepted from

the competitive service because of its confidential, policydetermining, policy-making, or policy-advocating character;

and

‘‘(3) ‘Office’ means the Office of Personnel Management.

‘‘§ 5403. Human Capital Performance Fund

‘‘(a) There is hereby established the Human Capital Performance Fund, to be administered by the Office for the purpose of

this chapter. ‘‘(b)(1)(A) An agency shall submit a plan as described in section

5406 to be eligible for consideration by the Office for an allocation
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under this section. An allocation shall be made only upon approval

by the Office of an agency’s plan.

‘‘(B)(i) After the reduction for training required under section

5408, ninety percent of the remaining amount appropriated to the

Fund may be allocated by the Office to the agencies. Of the amount

to be allocated, an agency’s pro rata distribution may not exceed

its pro rata share of Executive branch payroll.

‘‘(ii) If the Office does not allocate an agency’s full pro rata

share, the undistributed amount remaining from that share will

become available for distribution to other agencies, as provided

in subparagraph (C).

‘‘(C)(i) After the reduction for training under section 5408,

ten percent of the remaining amount appropriated to the Fund,

as well as the amount of the pro rata share not distributed because

of an agency’s failure to submit a satisfactory plan, shall be allocated

among agencies with exceptionally high-quality plans.

‘‘(ii) An agency with an exceptionally high-quality plan is

eligible to receive an additional distribution in addition to its full

pro rata distribution.

‘‘(2) Each agency is required to provide to the Office such

payroll information as the Office specifies necessary to determine

the Executive branch payroll.

‘‘§ 5404. Human capital performance payments

‘‘(a)(1) Notwithstanding any other provision of law, the Office

may authorize an agency to provide human capital performance

payments to individual employees based on exceptional performance

contributing to the achievement of the agency mission. ‘‘(2) The number of employees in an agency receiving payments

from the Fund, in any year, shall not be more than the number

equal to 15 percent of the agency’s average total civilian fulland part-time permanent employment for the previous fiscal year. ‘‘(b)(1) A human capital performance payment provided to an

individual employee from the Fund, in any year, shall not exceed

10 percent of the employee’s rate of basic pay. ‘‘(2) The aggregate of an employee’s rate of basic pay, adjusted

by any locality-based comparability payments, and human capital

performance pay, as defined by regulation, may not exceed the

rate of basic pay for Executive Level IV in any year. ‘‘(3) Any human capital performance payment provided to an

employee from the Fund is in addition to any annual pay adjustment

(under section 5303 or any similar provision of law) and any localitybased comparability payment that may apply. ‘‘(c) No monies from the Human Capital Performance Fund

may be used to pay for a new position, for other performancerelated payments, or for recruitment or retention incentives paid

under sections 5753 and 5754.

‘‘(d)(1) An agency may finance initial human capital performance payments using monies from the Human Capital Performance

Fund, as available.

‘‘(2) In subsequent years, continuation of previously awarded

human capital performance payments shall be financed from other

agency funds available for salaries and expenses.

‘‘§ 5405. Regulations

‘‘The Office shall issue such regulations as it determines to

be necessary for the administration of this chapter, including the
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administration of the Fund. The Office’s regulations shall include

criteria governing—

‘‘(1) an agency plan under section 5406;

‘‘(2) the allocation of monies from the Fund to agencies;

‘‘(3) the nature, extent, duration, and adjustment of, and

approval processes for, payments to individual employees under

this chapter;

‘‘(4) the relationship to this chapter of agency performance

management systems;

‘‘(5) training of supervisors, managers, and other individuals involved in the process of making performance distinctions;

and

‘‘(6) the circumstances under which funds may be allocated

by the Office to an agency in amounts below or in excess

of the agency’s pro rata share.

‘‘§ 5406. Agency plan

‘‘(a) To be eligible for consideration by the Office for an allocation under this section, an agency shall—

‘‘(1) develop a plan that incorporates the following elements:

‘‘(A) adherence to merit principles set forth in section

2301;

‘‘(B) a fair, credible, and transparent employee performance appraisal system;

‘‘(C) a link between the pay-for-performance system,

the employee performance appraisal system, and the

agency’s strategic plan;

‘‘(D) a means for ensuring employee involvement in

the design and implementation of the system; ‘‘(E) adequate training and retraining for supervisors,

managers, and employees in the implementation and operation of the pay-for-performance system; ‘‘(F) a process for ensuring ongoing performance feedback and dialogue between supervisors, managers, and

employees throughout the appraisal period, and setting

timetables for review; ‘‘(G) effective safeguards to ensure that the management of the system is fair and equitable and based on

employee performance; and ‘‘(H) a means for ensuring that adequate agency

resources are allocated for the design, implementation, and

administration of the pay-for-performance system;

‘‘(2) upon approval, receive an allocation of funding from

the Office; ‘‘(3) make payments to individual employees in accordance

with the agency’s approved plan; and

‘‘(4) provide such information to the Office regarding payments made and use of funds received under this section as

the Office may specify.

‘‘(b) The Office, in consultation with the Chief Human Capital

Officers Council, shall review and approve an agency’s plan before

the agency is eligible to receive an allocation of funding from the

Office.

‘‘(c) The Chief Human Capital Officers Council shall include

in its annual report to Congress under section 1303(d) of the Homeland Security Act of 2002 an evaluation of the formulation and

implementation of agency performance management systems.
H. R. 1588—254

‘‘§ 5407. Nature of payment

‘‘Any payment to an employee under this section shall be part

of the employee’s basic pay for the purposes of subchapter III

of chapter 83, and chapters 84 and 87, and for such other purposes

(other than chapter 75) as the Office shall determine by regulation.

‘‘§ 5408. Appropriations

‘‘There is authorized to be appropriated $500,000,000 for fiscal

year 2004, and, for each subsequent fiscal year, such sums as

may be necessary to carry out the provisions of this chapter. In

the first year of implementation, up to 10 percent of the amount

appropriated to the Fund shall be available to participating agencies

to train supervisors, managers, and other individuals involved in

the appraisal process on using performance management systems

to make meaningful distinctions in employee performance and on

the use of the Fund.’’. (b) CLERICAL AMENDMENT.—The table of chapters for part III

of title 5, United States Code, is amended by inserting after the

item relating to chapter 53 the following:

‘‘54. Human Capital Performance Fund ........................................................... 5401’’.

TITLE XII—MATTERS RELATING TO

OTHER NATIONS

Subtitle A—Matters Relating to Iraq

Sec. 1201. Medical assistance to Iraqi children injured during Operation Iraqi Freedom.

Sec. 1202. Report on the conduct of Operation Iraqi Freedom.

Sec. 1203. Report on Department of Defense security and reconstruction activities

in Iraq.

Sec. 1204. Report on acquisition by Iraq of advanced weapons.

Sec. 1205. Sense of Congress on use of small businesses, minority-owned businesses, and women-owned businesses in efforts to rebuild Iraq.

Subtitle B—Matters Relating to Export Protections

Sec. 1211. Review of export protections for military superiority resources.

Sec. 1212. Report on Department of Defense costs relating to national security controls on satellite exports.

Subtitle C—Administrative Requirements and Authorities

Sec. 1221. Authority to use funds for payment of costs of attendance of foreign visitors under Regional Defense Counterterrorism Fellowship Program.

Sec. 1222. Recognition of superior noncombat achievements or performance by

members of friendly foreign forces and other foreign nationals.

Sec. 1223. Expansion of authority to waive charges for costs of attendance at

George C. Marshall European Center for Security Studies.

Sec. 1224. Authority for check cashing and currency exchange services to be provided to foreign military members participating in certain activities with

United States forces.

Sec. 1225. Depot maintenance and repair work on certain types of trainer aircraft

to be transferred to foreign countries as excess aircraft.

Subtitle D—Other Reports and Sense of Congress Statements

Sec. 1231. Annual report on the NATO Prague Capabilities Commitment and the

NATO Response Force.

Sec. 1232. Report on actions that could be taken regarding countries that initiate

certain legal actions against United States officials or members of the

Armed Forces.

Sec. 1233. Sense of Congress on redeployment of United States forces in Europe.

Sec. 1234. Sense of Congress concerning Navy port calls in Israel.
H. R. 1588—255

Subtitle A—Matters Relating to Iraq

SEC. 1201. MEDICAL ASSISTANCE TO IRAQI CHILDREN INJURED

DURING OPERATION IRAQI FREEDOM.

(a) ASSISTANCE.—Subject to subsections (c) and (d), the Secretary of Defense shall, to the maximum extent practicable, provide

all necessary health care and related support to provide needed

medical assistance to Iraqi children who, as determined by the

Secretary of Defense, were injured during and as a result of Operation Iraqi Freedom. Such assistance shall be provided in an expeditious manner.

(b) RELATED SUPPORT.—Related support under subsection (a)

includes transportation on aeromedical evacuation aircraft of the

Department of Defense on a space-available basis.

(c) LIMITATIONS RELATING TO MEDICAL CARE.—Assistance may

be provided to a child under subsection (a)— (1) only if adequate treatment from other sources in Iraq

or neighboring countries is not available; and

(2) only after completion of an evaluation by a physician

or other appropriate medical personnel of the United States

Armed Forces.

(d) LIMITATION RELATING TO UNITED STATES MILITARY OPERATIONS.—Assistance may be provided to a child under subsection

(a) only if the provision of such assistance would not adversely

affect military operations of the United States.

SEC. 1202. REPORT ON THE CONDUCT OF OPERATION IRAQI FREEDOM.

(a) REPORT REQUIRED.—(1) Not later than March 31, 2004,

the Secretary of Defense shall submit to the congressional defense

committees and the Permanent Select Committee on Intelligence

of the House of Representatives and the Select Committee on Intelligence of the Senate a report on the preparation for and conduct

of military operations under Operation Iraqi Freedom from March

19, 2003, to May 1, 2003.

(2) The report shall be prepared in consultation with the Chairman of the Joint Chiefs of Staff, the commander of the United

States Central Command, and such other officers and officials as

the Secretary considers appropriate.

(b) CONTENT.—The report shall include a discussion, with a

particular emphasis on accomplishments and shortcomings and on

near-term and long-term corrective actions to address those shortcomings, of the following:

(1) The military objectives of the international coalition

conducting Operation Iraqi Freedom, the military strategy

selected to achieve the objectives, and an assessment of the

execution of the military strategy.

(2) The deployment process, including the adaptability of

the process to unforeseen contingencies and changing requirements.

(3) The effectiveness of the reserve component forces used

in Operation Iraqi Freedom, including the reserve component

mobilization process, the timeliness of mobilization notification,

training, operational effectiveness in theater, and subsequent

demobilization.

(4) The use and performance of major items of United

States military equipment, weapon systems, and munitions
H. R. 1588—256

(including items classified under special access procedures and

items drawn from prepositioned stocks) and any expected effects

of the experience with the use and performance of those items

on the doctrinal and tactical employment of such items and

on plans for continuing the acquisition of such items.

(5) The effectiveness of joint air operations, including the

doctrine for the employment of close air support in the varied

environments of Operation Iraqi Freedom, and the effectiveness

of attack helicopter operations.

(6) The use of special operations forces, including operational and intelligence uses classified under special access

procedures.

(7) The scope of logistics support, including support from

other nations.

(8) The incidence of accidental fratricide, together with

a discussion of the effectiveness of the tracking of friendly

forces and of the combat identification systems in mitigating

friendly fire incidents.

(9) The adequacy of spectrum and bandwidth to transmit

all necessary information to operational forces and assets,

including unmanned aerial vehicles, ground vehicles, and individual soldiers.

(10) The effectiveness of information operations, including

the effectiveness of Commando Solo and other psychological

operations assets, in achieving established objectives, together

with a description of technological and other restrictions on

the use of psychological operations capabilities.

(11) The adequacy of United States and coalition intelligence and counterintelligence systems and personnel,

including contributions regarding bomb damage assessments

and particularly including United States tactical intelligence

and related activities (TIARA) programs and the Joint Military

Intelligence Program (JMIP), as well as the adequacy of such

support to facilitate searches for weapons of mass destruction.

(12) The rapid insertion and integration, if any, of developmental but mission-essential equipment during all phases of

the operation.

(13) The most critical lessons learned that could lead to

long-term doctrinal, organizational, and technological changes

(including new equipment, weapons systems, and munitions)

and the probable effects that an implementation of those

changes would have on current visions, goals, and plans for

transformation of the Armed Forces and for joint and combined

operations.

(14) The role of the law of armed conflict in the planning

and execution of military operations by United States forces

and the other coalition forces and the effects on operations

of Iraqi compliance or noncompliance with the law of armed

conflict.

(15) The policies and procedures relating to the media,

including the use of embedded media.

(16) The results of a study, carried out by the Secretary

of Defense, regarding the availability of family support services

provided for the dependents of members of the National Guard

and other reserve components of the Armed Forces who are

called or ordered to active duty.
H. R. 1588—257

(17) The direct and indirect cost of military operations,

including an assessment of the total incremental expenditures

made by the Department of Defense as a result of Operation

Iraqi Freedom.

(c) FORMS OF REPORT.—The report shall be submitted in

unclassified form with a classified annex, if necessary.

SEC. 1203. REPORT ON DEPARTMENT OF DEFENSE SECURITY AND

RECONSTRUCTION ACTIVITIES IN IRAQ.

(a) REPORT REQUIRED.—Not later than 90 days after the date

of the enactment of this Act, the Secretary of Defense shall submit

to Congress a report on the security and reconstruction activities

of the Department of Defense in Iraq.

(b) REPORT ELEMENTS.—The report shall discuss the range

of infrastructure reconstruction, civil administration, humanitarian

assistance, interim governance, and political development activities

undertaken in Iraq by officials of the Department and by those

civilians reporting to the Secretary of Defense and the missions

undertaken in Iraq by United States military forces. In particular,

the report shall include a discussion of the following:

(1) The evolution of the organizational structure of the

civilian groups reporting to the Secretary, including the Office

of Reconstruction and Humanitarian Assistance and the Office

of the Coalition Provisional Authority, on issues of Iraqi

administration and reconstruction and the factors influencing

that evolution.

(2) The relationship of the Department of Defense with

other United States departments and agencies involved in

administration and reconstruction planning and execution in

Iraq.

(3) The relationship of Department of Defense entities,

including the Office of Reconstruction and Humanitarian Assistance and the Office of the Coalition Provisional Authority,

with intergovernmental and nongovernmental organizations

contributing to the reconstruction and governance efforts.

(4) Progress made to the date of the report in—

(A) rebuilding Iraqi infrastructure;

(B) providing for the humanitarian needs of the Iraqi

people;

(C) reconstituting the Iraqi governmental bureaucracy

and its provision of services;

(D) developing mechanisms of fully transitioning Iraq

to representative self-government; and

(E) recruiting, training, and fielding Iraqi police and

military forces.

(5) Progress made to the date of the report by Department

of Defense civilians and military personnel in accounting for

any Iraqi weapons of mass destruction and associated weapons

capabilities.

(6) Progress made to the date of the report by United

States military personnel in providing security in Iraq and

in transferring security functions to a reconstituted Iraqi police

force and military.

(7) The Secretary’s assessment of the scope of the ongoing

needed commitment of United States military forces and of

the remaining tasks to be completed by Department of Defense

civilian personnel in the governance and reconstruction areas,
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including an estimate of the total expenditures the Department

of Defense expects to make for security and reconstruction

activities in Iraq.

(8) The Secretary’s assessment of the effect that the United

States military presence in Iraq will have on replacement and

unit rotation policies, including the overall effect on global

United States military deployments.

SEC. 1204. REPORT ON ACQUISITION BY IRAQ OF ADVANCED WEAPONS.

(a) REPORT.—Not later than one year after the date of the

enactment of this Act, the Secretary of Defense shall submit to

the Committees on Armed Services and Foreign Relations of the

Senate and the Committees on Armed Services and International

Relations of the House of Representatives a report on the acquisition

by Iraq of weapons of mass destruction and associated delivery

systems and the acquisition by Iraq of advanced conventional

weapons.

(b) MATTERS TO BE INCLUDED.—The report shall include the

following:

(1) A description of any materials, technology, and knowhow that Iraq was able to obtain for its nuclear, chemical,

biological, ballistic missile, and unmanned aerial vehicle programs, and advanced conventional weapons programs, from

1979 through April 2003 from entities (including Iraqi citizens)

outside of Iraq, as well as a description of how Iraq obtained

these capabilities from those entities.

(2) An assessment of the degree to which United States,

foreign, and multilateral export control regimes prevented

acquisition by Iraq of weapons of mass destruction-related technology and materials and advanced conventional weapons and

delivery systems since the commencement of international

inspections in Iraq.

(3) An assessment of the effectiveness of United Nations

sanctions at halting the flow of militarily-useful contraband

to Iraq from 1991 until the end of Operation Iraqi Freedom.

(4) An assessment of how Iraq was able to evade International Atomic Energy Agency and United Nations inspections

regarding chemical, nuclear, biological, and missile weapons

and related capabilities.

(5) Identification and a catalog of the entities and countries

that transferred militarily useful contraband and items

described pursuant to paragraph (1) to Iraq between 1991 and

the end of major combat operations of Operation Iraqi Freedom

on May 1, 2003, and the nature of that contraband and of

those items.

(c) FORM OF REPORT.—The report shall be submitted in

unclassified form with a classified annex, if necessary.

SEC. 1205. SENSE OF CONGRESS ON USE OF SMALL BUSINESSES,

MINORITY-OWNED BUSINESSES, AND WOMEN-OWNED

BUSINESSES IN EFFORTS TO REBUILD IRAQ.

It is the sense of Congress that the Secretary of Defense should

ensure that outreach procedures are in place to provide information

to small businesses, minority-owned businesses, and women-owned

businesses regarding Department of Defense requirements and contract opportunities for the rebuilding of Iraq.
H. R. 1588—259

Subtitle B—Matters Relating to Export

Protections

SEC. 1211. REVIEW OF EXPORT PROTECTIONS FOR MILITARY SUPERIORITY RESOURCES.

(a) REVIEW REQUIRED.—The Secretary of Defense shall carry

out a review— (1) to identify goods or technology (as defined in section

16 of the Export Administration Act of 1979 (50 U.S.C. App.

2415)) that, if obtained by a potential adversary, could significantly undermine the military superiority or qualitative military advantage of the United States over potential adversaries

or otherwise contribute to the acquisition of weapons of mass

destruction and their delivery systems; and

(2) to determine whether any of the items or technologies

identified under paragraph (1) are not currently controlled for

export purposes on either the Commerce Control List or the

United States Munitions List.

(b) ANNUAL REPORTS.—(1) Not later than March 1, 2004, the

Secretary of Defense shall submit to the Committee on Armed

Services of the Senate and the Committee on Armed Services of

the House of Representatives an unclassified report, with a classified annex as necessary, on the results of the review under subsection (a).

(2) For each of the next two years after the submission of

the report under paragraph (1), the Secretary shall submit to those

committees an update on that report. Such updates shall be submitted not later than March 1, 2005, and not later than March

1, 2006.

SEC. 1212. REPORT ON DEPARTMENT OF DEFENSE COSTS RELATING

TO NATIONAL SECURITY CONTROLS ON SATELLITE

EXPORTS.

(a) STUDY.—The Inspector General of the Department of

Defense shall conduct a study of the costs incurred by the Department of Defense for each fiscal year from fiscal year 1999 through

fiscal year 2003 relating to national security controls on satellite

exports. As part of such study, the Inspector General shall identify

for each such fiscal year the amounts expended by the Department

of Defense (1) for the monitoring of launches of satellites and

related items in a foreign country pursuant to section 1514 of

the Strom Thurmond National Defense Authorization Act for Fiscal

Year 1999 (Public Law 105–261; 22 U.S.C. 2778 note), and (2)

in connection with applications for licenses for the export of satellites and related items (as that term is defined in section 1516

of that Act).

(b) REPORT.—Not later than April 1, 2004, the Inspector General shall submit to the Committees on Armed Services of the

Senate and the House of Representatives a report on the study

under subsection (a). The report shall include the following:

(1) An identification and assessment of the costs referred

to in subsection (a), shown in the aggregate and separately,

by fiscal year and by clauses (1) and (2) of that subsection.

(2) A review of the costs referred to in clause (1) of subsection (a) for which the Department of Defense has been

reimbursed by the person or entity receiving the satellite launch
H. R. 1588—260

monitoring services involved, including the extent to which

indirect costs were included in such reimbursement.

Subtitle C—Administrative Requirements

and Authorities

SEC. 1221. AUTHORITY TO USE FUNDS FOR PAYMENT OF COSTS OF

ATTENDANCE OF FOREIGN VISITORS UNDER REGIONAL

DEFENSE COUNTERTERRORISM FELLOWSHIP PROGRAM.

(a) AUTHORITY TO USE FUNDS.—(1) Subchapter I of chapter

134 of title 10, United States Code, is amended by adding at

the end the following new section:

‘‘§ 2249c. Authority to use appropriated funds for costs of

attendance of foreign visitors under Regional

Defense Counterterrorism Fellowship Program

‘‘(a) AUTHORITY TO USE FUNDS.—Under regulations prescribed

by the Secretary of Defense, funds appropriated to the Department

of Defense may be used to pay any costs associated with the

attendance of foreign military officers, ministry of defense officials,

or security officials at United States military educational institutions, regional centers, conferences, seminars, or other training

programs conducted under the Regional Defense Counterterrorism

Fellowship Program, including costs of transportation and travel

and subsistence costs.

‘‘(b) LIMITATION.—The total amount of funds used under the

authority in subsection (a) in any fiscal year may not exceed

$20,000,000.

‘‘(c) ANNUAL REPORT.—Not later than December 1 of each year,

the Secretary of Defense shall submit to Congress a report on

the administration of this section during the fiscal year ended

in such year. The report shall include the following matters:

‘‘(1) A complete accounting of the expenditure of appropriated funds for purposes authorized under subsection (a),

including—

‘‘(A) the countries of the foreign officers and officials

for whom costs were paid; and

‘‘(B) for each such country, the total amount of the

costs paid.

‘‘(2) The training courses attended by the foreign officers

and officials, including a specification of which, if any, courses

were conducted in foreign countries.

‘‘(3) An assessment of the effectiveness of the Regional

Defense Counterterrorism Fellowship Program in increasing

the cooperation of the governments of foreign countries with

the United States in the global war on terrorism.

‘‘(4) A discussion of any actions being taken to improve

the program.’’.

(2) The table of sections at the beginning of such subchapter

is amended by adding at the end the following new item:

‘‘2249c. Authority to use appropriated funds for costs of attendance of foreign visitors under Regional Defense Counterterrorism Fellowship Program.’’.

(b) NOTIFICATION OF CONGRESS.—Not later than December 1,

2003, the Secretary of Defense shall—
H. R. 1588—261

(1) prescribe the final regulations for carrying out section

2249c of title 10, United States Code, as added by subsection

(a); and

(2) notify the congressional defense committees of the

prescription of such regulations.

SEC. 1222. RECOGNITION OF SUPERIOR NONCOMBAT ACHIEVEMENTS

OR PERFORMANCE BY MEMBERS OF FRIENDLY FOREIGN

FORCES AND OTHER FOREIGN NATIONALS.

(a) AUTHORITY.—Chapter 53 of title 10, United States Code,

is amended by inserting after section 1051a the following new

section:

‘‘§ 1051b. Bilateral or regional cooperation programs: awards

and mementos to recognize superior noncombat

achievements or performance

‘‘(a) GENERAL AUTHORITY.—The Secretary of Defense may

present awards and mementos purchased with funds appropriated

for operation and maintenance of the armed forces to recognize

superior noncombat achievements or performance by members of

friendly foreign forces and other foreign nationals that significantly

enhance or support the National Security Strategy of the United

States.

‘‘(b) ACTIVITIES THAT MAY BE RECOGNIZED.—Activities that

may be recognized under subsection (a) include superior achievement or performance that—

‘‘(1) plays a crucial role in shaping the international security environment in ways that protect and promote United

States interests;

‘‘(2) supports or enhances United States overseas presence

and peacetime engagement activities, including defense

cooperation initiatives, security assistance training and programs, and training and exercises with the armed forces;

‘‘(3) helps to deter aggression and coercion, build coalitions,

and promote regional stability; or

‘‘(4) serves as a role model for appropriate conduct by

military forces in emerging democracies.

‘‘(c) LIMITATION.—Expenditures for the purchase or production

of mementos for award under this section may not exceed the

minimal value in effect under section 7342(a)(5) of title 5.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by inserting after the item relating

to section 1051a the following new item:

‘‘1051b. Bilateral or regional cooperation programs: awards and mementos to recognize superior noncombat achievements or performance.’’.

SEC. 1223. EXPANSION OF AUTHORITY TO WAIVE CHARGES FOR COSTS

OF ATTENDANCE AT GEORGE C. MARSHALL EUROPEAN

CENTER FOR SECURITY STUDIES.

Section 1306(b)(1) of the National Defense Authorization Act

for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2892) is

amended by striking ‘‘of cooperation partner states of the North

Atlantic Council or the Partnership for Peace’’ and inserting ‘‘from

states located in Europe or the territory of the former Soviet Union’’.
H. R. 1588—262

SEC. 1224. AUTHORITY FOR CHECK CASHING AND CURRENCY

EXCHANGE SERVICES TO BE PROVIDED TO FOREIGN

MILITARY MEMBERS PARTICIPATING IN CERTAIN

ACTIVITIES WITH UNITED STATES FORCES.

(a) AUTHORITY.—Subsection (b) of section 3342 of title 31,

United States Code, is amended by adding at the end the following

new paragraph: ‘‘(8) A member of the military forces of an allied or coalition

nation who is participating in a combined operation, combined

exercise, or combined humanitarian or peacekeeping mission

with the Armed Forces of the United States, but— ‘‘(A) only if— ‘‘(i) such disbursing official action for members

of the military forces of that nation is approved by

the senior United States military commander assigned

to that operation, exercise, or mission; and ‘‘(ii) that nation has guaranteed payment for any

deficiency resulting from such disbursing official action;

and

‘‘(B) in the case of negotiable instruments, only for

a negotiable instrument drawn on a financial institution

located in the United States or on a foreign branch of

such an institution.’’.

(b) TECHNICAL AMENDMENTS.—That subsection is further

amended—

(1) by striking ‘‘only for—’’ in the matter preceding paragraph (1) and inserting ‘‘only for the following:’’;

(2) by striking ‘‘an’’ at the beginning of paragraph (1)

and inserting ‘‘An’’;

(3) by striking ‘‘personnel’’ in paragraphs (2) and (6) and

inserting ‘‘Personnel’’;

(4) by striking ‘‘a’’ at the beginning of paragraphs (3),

(4), (5), and (7) and inserting ‘‘A’’;

(5) by striking the semicolon at the end of paragraphs

(1) through (5) and inserting a period;

(6) by striking ‘‘; or’’ at the end of paragraph (6) and

inserting a period; and

(7) by striking ‘‘1752(1))’’ in paragraph (7) and inserting

‘‘1752(1)))’’.

SEC. 1225. DEPOT MAINTENANCE AND REPAIR WORK ON CERTAIN

TYPES OF TRAINER AIRCRAFT TO BE TRANSFERRED TO

FOREIGN COUNTRIES AS EXCESS AIRCRAFT.

(a) DEPOT MAINTENANCE AND REPAIR WORK BEFORE

TRANSFER.—Before an excess trainer aircraft of a type specified

in subsection (b) is transferred to a foreign country for the purpose

of flight operations by that country, the Secretary of Defense shall

make all reasonable efforts to ensure that the aircraft receives

necessary depot maintenance and repair work and that such work

is performed in the United States.

(b) COVERED TYPES OF AIRCRAFT.—Subsection (a) applies to

the following types of trainer aircraft:

(1) T–2 Buckeye aircraft.

(2) T–37 Tweet aircraft.

(c) WORK TO BE PERFORMED AT NO COST TO DOD.—Any work

referred to in subsection (a) shall be performed at no cost to the

Department of Defense.
H. R. 1588—263

Subtitle D—Other Reports and Sense of

Congress Statements

SEC. 1231. ANNUAL REPORT ON THE NATO PRAGUE CAPABILITIES

COMMITMENT AND THE NATO RESPONSE FORCE.

(a) FINDINGS.—Congress makes the following findings:

(1) At the meeting of the North Atlantic Council held

in Prague in November 2002, the heads of states and governments of the North Atlantic Treaty Organization (NATO)

launched a Prague Capabilities Commitment and decided to

create a NATO Response Force.

(2) The Prague Capabilities Commitment is part of the

continuing NATO effort to improve and develop new military

capabilities for modern warfare in a high-threat environment.

As part of this commitment, individual NATO allies have made

firm and specific political commitments to improve their

capabilities in the areas of— (A) chemical, biological, radiological, and nuclear

defense;

(B) intelligence, surveillance, and target acquisition;

(C) air-to-ground surveillance;

(D) command, control, and communications;

(E) combat effectiveness, including precision guided

munitions and suppression of enemy air defenses;

(F) strategic air and sea lift;

(G) air-to-air refueling; and

(H) deployable combat support and combat service support units.

(3) The NATO Response Force is envisioned to be a technologically advanced, flexible, deployable, interoperable, and

sustainable force that includes land, sea, and air elements

ready to move quickly to wherever needed, as determined by

the North Atlantic Council. The NATO Response Force is also

intended to be a catalyst for focusing and promoting improvements in NATO’s military capabilities. It is expected to have

initial operational capability by October 2004, and full operational capability by October 2006.

(b) ANNUAL REPORT.—(1) Not later than January 31 of each

year through 2008, the Secretary of Defense shall submit to the

congressional committees specified in paragraph (5) a report, to

be prepared in consultation with the Secretary of State, on

implementation of the Prague Capabilities Commitment and

development of the NATO Response Force by the member nations

of the North Atlantic Treaty Organization (NATO).

(2) The annual report under this subsection shall include the

following matters:

(A) A description of the actions taken by NATO as a whole

and by each member nation of NATO other than the United

States to further the Prague Capabilities Commitment,

including any actions taken to improve capability shortfalls

in the areas identified for improvement.

(B) A description of the actions taken by NATO as a whole

and by each member nation of NATO, including the United

States, to create the NATO Response Force.

(C) A discussion of the relationship between NATO’s efforts

to improve capabilities through the Prague Capabilities
H. R. 1588—264

Commitment and those of the European Union to enhance

European capabilities through the European Capabilities Action

Plan, including the extent to which they are mutually reinforcing.

(D) A discussion of NATO decisionmaking on the

implementation of the Prague Capabilities Commitment and

the development of the NATO Response Force, including—

(i) an assessment of whether the Prague Capabilities

Commitment and the NATO Response Force are the sole

jurisdiction of the Defense Planning Committee, the North

Atlantic Council, or the Military Committee;

(ii) a description of the circumstances which led to

the defense, military, security, and nuclear decisions of

NATO on matters such as the Prague Capabilities Commitment and the NATO Response Force being made in bodies

other than the Defense Planning Committee;

(iii) a description of the extent to which any member

that does not participate in the integrated military structure of NATO contributes to each of the component committees of NATO, including any and all committees relevant

to the Prague Capabilities Commitment and the NATO

Response Force;

(iv) a description of the extent to which any member

that does not participate in the integrated military structure of NATO participates in deliberations and decisions

of NATO on resource policy, contribution ceilings, infrastructure, force structure, modernization, threat assessments, training, exercises, deployments, and other issues

related to the Prague Capabilities Commitment or the

NATO Response Force;

(v) a description and assessment of the impediments,

if any, that would preclude or limit NATO from conducting

deliberations and making decisions on matters such as

the Prague Capabilities Commitment or the NATO

Response Force solely in the Defense Planning Committee;

and

(vi) the recommendations of the Secretary of Defense

on streamlining defense, military, and security decisionmaking within NATO relating to the Prague Capabilities

Commitment, the NATO Response Force, and other matters, including an assessment of the feasibility and advisability of the greater utilization of the Defense Planning

Committee for such purposes.

(3) In the case of a report under this subsection after the

first such report, the information submitted in such report under

any of clauses (i) through (vi) of subparagraph (D) of paragraph

(2) may consist solely of an update of any information previously

submitted under that clause in a preceding report under this subsection.

(4) Each report under this subsection shall be submitted in

unclassified form, but may also be submitted in classified form

if necessary.

(5) The committees specified in this paragraph are—

(A) the Committee on Armed Services and the Committee

on Foreign Relations of the Senate; and

(B) the Committee on Armed Services and the Committee

on International Relations of the House of Representatives.
H. R. 1588—265

SEC. 1232. REPORT ON ACTIONS THAT COULD BE TAKEN REGARDING

COUNTRIES THAT INITIATE CERTAIN LEGAL ACTIONS

AGAINST UNITED STATES OFFICIALS OR MEMBERS OF

THE ARMED FORCES.

(a) FINDING.—Congress finds that actions for or on behalf of

a foreign government that constitute attempts to commence legal

proceedings against, or attempts to compel the appearance of or

production of documents from, any current or former official or

employee of the United States or member of the Armed Forces

of the United States relating to the performance of official duties,

other than pursuant to a status of forces agreement or other international agreement to which the United States is a party, may

have a negative effect on the ability of the United States to take

necessary and timely military action.

(b) REPORT.—Not later than 60 days after the date of the

enactment of this Act, the Secretary of Defense shall submit to

Congress a report on appropriate steps that could be taken by

the Department of Defense (such as restrictions on military travel,

limitations on military support and exchange programs, and consideration of relocating, or limiting funding for, United States or

allied military commands, headquarters, or organizations) to

respond to an action by a foreign government described in subsection (a).

SEC. 1233. SENSE OF CONGRESS ON REDEPLOYMENT OF UNITED

STATES FORCES IN EUROPE.

(a) FINDINGS.—Congress makes the following findings:

(1) In March 1999, in its initial round of expansion, the

North Atlantic Treaty Organization (NATO) admitted Poland,

the Czech Republic, and Hungary to the Alliance.

(2) At the Prague Summit on November 21–22, 2002, the

NATO heads of state and government invited the countries

of Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia,

and Slovenia to join the Alliance.

(3) The countries admitted in the initial round of expansion

referred to in paragraph (1) and the seven new invitee nations

referred to in paragraph (2) will in combination significantly

alter the nature of the Alliance.

(4) During the first 50 years of the Alliance, NATO materially contributed to the security and stability of Western Europe,

bringing peace and prosperity to the member nations.

(5) The expansion of NATO is an opportunity to assist

the invitee nations in gaining the capabilities to ensure peace,

prosperity, and democracy for themselves during the next 50

years of the Alliance.

(6) The military structure and mission of NATO has

changed, no longer being focused on the threat of a Soviet

invasion, but evolving to handle new threats and new missions

in the area of crisis management, peacekeeping, and peacesupport in and beyond the Euro-Atlantic area of operations.

(b) SENSE OF CONGRESS.—In light of the findings in subsection

(a), it is the sense of Congress that—

(1) the expansion of the North Atlantic Treaty Organization

Alliance and the evolution of the military mission of that Alliance requires a fundamental reevaluation of the current posture

of United States forces stationed in Europe; and
H. R. 1588—266

(2) the Secretary of Defense, in consultation with the Secretary of State, should— (A) initiate a reevaluation referred to in paragraph

(1); and

(B) in carrying out such a reevaluation, consider a

military posture that takes maximum advantage of basing

and training opportunities in the newly admitted and

invitee states referred to in paragraphs (1) and (2), respectively, of subsection (a).

SEC. 1234. SENSE OF CONGRESS CONCERNING NAVY PORT CALLS IN

ISRAEL.

It is the sense of Congress that— (1) the United States has invested significant amounts

of funds in expanding the capacity and security of the port

of Haifa, Israel, and the United States Navy should be able

to implement the necessary force protection measures that

would enable it to take advantage of the repair, replenishment,

and communications links available at that port;

(2) the Secretary of Defense and the Secretary of the Navy

should conclude discussions with the Government of Israel and

the Israel Defense Forces to establish appropriate and effective

arrangements to ensure the safety of United States Navy vessels and personnel during port visits to Haifa, Israel; and

(3) upon such arrangements being made, the United States

Navy should consider resumption of regular port visits to Haifa,

Israel.

TITLE XIII—COOPERATIVE THREAT REDUCTION WITH STATES OF THE

FORMER SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.

Sec. 1302. Funding allocations.

Sec. 1303. Limitation on use of funds until certain permits obtained.

Sec. 1304. Limitation on use of funds for biological research in the former Soviet

Union.

Sec. 1305. Requirement for on-site managers.

Sec. 1306. Temporary authority to waive limitation on funding for chemical weapons destruction facility in Russia. Sec. 1307. Annual certifications on use of facilities being constructed for Cooperative Threat Reduction projects or activities. Sec. 1308. Authority to use Cooperative Threat Reduction funds outside the former

Soviet Union.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION

PROGRAMS AND FUNDS.

(a) SPECIFICATION OF CTR PROGRAMS.—For purposes of section

301 and other provisions of this Act, Cooperative Threat Reduction

programs are 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).

(b) FISCAL YEAR 2004 COOPERATIVE THREAT REDUCTION FUNDS

DEFINED.—As used in this title, the term ‘‘fiscal year 2004 Cooperative Threat Reduction funds’’ means the funds appropriated pursuant to the authorization of appropriations in section 301 for

Cooperative Threat Reduction programs.

(c) AVAILABILITY OF FUNDS.—Funds appropriated pursuant to

the authorization of appropriations in section 301 for Cooperative
H. R. 1588—267

Threat Reduction programs shall be available for obligation for

three fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

(a) FUNDING FOR SPECIFIC PURPOSES.—Of the $450,800,000

authorized to be appropriated to the Department of Defense for

fiscal year 2004 in section 301(19) for Cooperative Threat Reduction

programs, the following amounts may be obligated for the purposes

specified:

(1) For strategic offensive arms elimination in Russia,

$57,600,000.

(2) For strategic nuclear arms elimination in Ukraine,

$3,900,000.

(3) For nuclear weapons transportation security in Russia,

$23,200,000.

(4) For nuclear weapons storage security in Russia,

$48,000,000.

(5) For activities designated as Other Assessments/

Administrative Support, $13,100,000.

(6) For defense and military contacts, $11,100,000.

(7) For chemical weapons destruction in Russia,

$200,300,000.

(8) For biological weapons proliferation prevention in the

former Soviet Union, $54,200,000.

(9) For weapons of mass destruction proliferation prevention in the states of the former Soviet Union, $39,400,000.

(b) REPORT ON OBLIGATION OR EXPENDITURE OF FUNDS FOR

OTHER PURPOSES.—No fiscal year 2004 Cooperative Threat Reduction funds may be obligated or expended for a purpose other than

a purpose listed in paragraphs (1) through (9) of subsection (a)

until 30 days after the date that the Secretary of Defense submits

to Congress a report on the purpose for which the funds will

be obligated or expended and the amount of funds to be obligated

or expended. Nothing in the preceding sentence shall be construed

as authorizing the obligation or expenditure of fiscal year 2004

Cooperative Threat Reduction funds for a purpose for which the

obligation or expenditure of such funds is specifically prohibited

under this title or any other provision of law.

(c) LIMITED AUTHORITY TO VARY INDIVIDUAL AMOUNTS.—(1)

Subject to paragraphs (2) and (3), in any case in which the Secretary

of Defense determines that it is necessary to do so in the national

interest, the Secretary may obligate amounts appropriated for fiscal

year 2004 for a purpose listed in any of the paragraphs in subsection

(a) in excess of the specific amount authorized for that purpose.

(2) An obligation of funds for a purpose stated in any of the

paragraphs in subsection (a) in excess of the specific amount authorized for such purpose may be made using the authority provided

in paragraph (1) only after—

(A) the Secretary submits to Congress notification of the

intent to do so together with a complete discussion of the

justification for doing so; and

(B) 15 days have elapsed following the date of the notification.

(3) The Secretary may not, under the authority provided in

paragraph (1), obligate amounts for a purpose stated in any of

paragraphs (5) through (8) of subsection (a) in excess of 125 percent

of the specific amount authorized for such purpose.
H. R. 1588—268

SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL CERTAIN PERMITS

OBTAINED.

(a) IN GENERAL.—The Secretary of Defense shall seek to obtain

all the permits required to complete each phase of construction

of a project under Cooperative Threat Reduction programs before

obligating significant amounts of funding for that phase of the

project.

(b) USE OF FUNDS FOR NEW CONSTRUCTION PROJECTS.—Except

as provided in subsection (e), with respect to a new construction

project to be carried out by the Department of Defense under

Cooperative Threat Reduction programs, not more than 40 percent

of the total costs of the project may be obligated from Cooperative

Threat Reduction funds for any fiscal year until the Secretary

of Defense—

(1) determines the number and type of permits that may

be required for the lifetime of the project in the proposed

location or locations of the project; and

(2) obtains from the State in which the project is to be

located any permits that may be required to begin construction.

(c) IDENTIFICATION OF REQUIRED PERMITS FOR ONGOING INCOMPLETE CONSTRUCTION PROJECTS.—With respect to an incomplete

construction project carried out by the Department of Defense under

Cooperative Threat Reduction programs, the Secretary shall identify

all the permits that are required for the lifetime of the project

not later than 120 days after the date of the enactment of this

Act.

(d) USE OF FUNDS FOR CERTAIN INCOMPLETE CONSTRUCTION

PROJECTS.—Except as provided in subsection (e), with respect to

an incomplete construction project carried out by the Department

of Defense under Cooperative Threat Reduction programs for which

construction has not yet commenced as of the date of the enactment

of this Act, not more than 40 percent of the total costs of the

project may be obligated from Cooperative Threat Reduction funds

for any fiscal year until the Secretary obtains from the State in

which the project is located the permits required to commence

construction on the project.

(e) EXCEPTION TO LIMITATIONS ON USE OF FUNDS.—The limitation in subsection (b) or (d) on the obligation of funds for a construction project otherwise covered by such subsection shall not apply

with respect to the obligation of funds for a particular project

if the Secretary—

(1) determines that it is necessary in the national interest

to obligate funds for such project; and

(2) submits to the congressional defense committees a

notification of the intent to obligate funds for such project,

together with a complete discussion of the justification for

doing so.

(f) DEFINITIONS.—In this section, with respect to a project under

Cooperative Threat Reduction programs:

(1) INCOMPLETE CONSTRUCTION PROJECT.—The term

‘‘incomplete construction project’’ means a construction project

for which funds have been obligated or expended before the

date of the enactment of this Act and which is not completed

as of such date.

(2) NEW CONSTRUCTION PROJECT.—The term ‘‘new construction project’’ means a construction project for which no funds
H. R. 1588—269

have been obligated or expended as of the date of the enactment

of this Act.

(3) PERMIT.—The term ‘‘permit’’ means any local or national

permit for development, general construction, environmental,

land use, or other purposes that is required for purposes of

major construction in a state of the former Soviet Union in

which the construction project is being or is proposed to be

carried out.

SEC. 1304. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL RESEARCH

IN THE FORMER SOVIET UNION.

(a) LIMITATION ON USE OF FUNDS.—Except as provided in subsection (b), none of the funds authorized to be appropriated pursuant

to section 1302 for biological weapons proliferation prevention may

be obligated to begin any collaborative biodefense research or bioattack early warning and preparedness project under a Cooperative

Threat Reduction program at a facility in a state of the former

Soviet Union until the Secretary of Defense notifies Congress that

the Secretary— (1) has determined, through access to the facility, that

no offensive biological weapons research prohibited by international law is being conducted at the facility; and

(2) has determined that appropriate security measures have

begun to be, or will be, put in place at the facility to prevent

theft of dangerous pathogens from the facility.

(b) AVAILABILITY OF FUNDS FOR DETERMINATIONS.—Of the funds

referred to in subsection (a) that are available for projects referred

to in that subsection, up to 25 percent of such funds may be

obligated and expended for purposes of making determinations

referred to in that subsection.

(c) FACILITY DEFINED.—In this section, the term ‘‘facility’’ means the buildings and areas at a location in which Cooperative

Threat Reduction program work is actually being conducted.

SEC. 1305. REQUIREMENT FOR ON-SITE MANAGERS.

(a) ON-SITE MANAGER REQUIREMENT.—Before obligating any

Cooperative Threat Reduction funds for a project described in subsection (b), the Secretary of Defense shall appoint one on-site manager for that project. The manager shall be appointed from among

employees of the Federal Government.

(b) PROJECTS COVERED.—Subsection (a) applies to a project— (1) to be located in a state of the former Soviet Union;

(2) which involves dismantlement, destruction, or storage

facilities, or construction of a facility; and

(3) with respect to which the total contribution by the Department of Defense is expected to exceed $50,000,000.

(c) DUTIES OF ON-SITE MANAGER.—The on-site manager

appointed under subsection (a) shall— (1) develop, in cooperation with representatives from

governments of countries participating in the project, a list

of those steps or activities critical to achieving the project’s

disarmament or nonproliferation goals;

(2) establish a schedule for completing those steps or activities;

(3) meet with all participants to seek assurances that those

steps or activities are being completed on schedule; and

(4) suspend United States participation in a project when

a non-United States participant fails to complete a scheduled
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step or activity on time, unless directed by the Secretary of

Defense to resume United States participation.

(d) AUTHORITY TO MANAGE MORE THAN ONE PROJECT.—(1)

Subject to paragraph (2), an employee of the Federal Government

may serve as on-site manager for more than one project, including

projects at different locations.

(2) If such an employee serves as on-site manager for more

than one project in a fiscal year, the total cost of the projects

for that fiscal year may not exceed $150,000,000.

(e) STEPS OR ACTIVITIES.—Steps or activities referred to in

subsection (c)(1) are those activities that, if not completed, will

prevent a project from achieving its disarmament or nonproliferation goals, including, at a minimum, the following:

(1) Identification and acquisition of permits (as defined

in section 1303).

(2) Verification that the items, substances, or capabilities

to be dismantled, secured, or otherwise modified are available

for dismantlement, securing, or modification.

(3) Timely provision of financial, personnel, management,

transportation, and other resources.

(f) NOTIFICATION TO CONGRESS.—In any case in which the

Secretary of Defense directs an on-site manager to resume United

States participation in a project under subsection (c)(4), the Secretary shall concurrently notify Congress of such direction.

(g) EFFECTIVE DATE.—This section shall take effect six months

after the date of the enactment of this Act.

SEC. 1306. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON

FUNDING FOR CHEMICAL WEAPONS DESTRUCTION

FACILITY IN RUSSIA.

(a) TEMPORARY AUTHORITY.—The conditions described in section 1305 of the National Defense Authorization Act for Fiscal

Year 2000 (Public Law 106–65; 22 U.S.C. 5952 note) shall not

apply to the obligation and expenditure of funds available for obligation during fiscal year 2004 for the planning, design, or construction

of a chemical weapons destruction facility in Russia if the President

submits to Congress a written certification that includes—

(1) a statement as to why the waiver of the conditions

is important to the national security interests of the United

States;

(2) a full and complete justification for the waiver of the

conditions; and

(3) a plan to promote a full and accurate disclosure by

Russia regarding the size, content, status, and location of its

chemical weapons stockpile.

(b) EXPIRATION.—The authority in subsection (a) shall expire

on September 30, 2004.

SEC. 1307. ANNUAL CERTIFICATIONS ON USE OF FACILITIES BEING

CONSTRUCTED FOR COOPERATIVE THREAT REDUCTION

PROJECTS OR ACTIVITIES.

(a) CERTIFICATION ON USE OF FACILITIES BEING CON- STRUCTED.—Not later than the first Monday of February each year,

the Secretary of Defense shall submit to the congressional defense

committees a certification for each facility for a Cooperative Threat

Reduction project or activity for which construction occurred during

the preceding fiscal year on matters as follows:
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(1) Whether or not such facility will be used for its intended

purpose by the government of the state of the former Soviet

Union in which the facility is constructed.

(2) Whether or not the government of such state remains

committed to the use of such facility for its intended purpose.

(3) Whether those actions needed to ensure security at

the facility, including secure transportation of any materials,

substances, or weapons to, from, or within the facility, have

been taken.

(b) APPLICABILITY.—Subsection (a) shall apply to—

(1) any facility the construction of which commences on

or after the date of the enactment of this Act; and

(2) any facility the construction of which is ongoing as

of that date.

SEC. 1308. AUTHORITY TO USE COOPERATIVE THREAT REDUCTION

FUNDS OUTSIDE THE FORMER SOVIET UNION.

(a) AUTHORITY.—Subject to the provisions of this section, the

President may obligate and expend Cooperative Threat Reduction

funds for a fiscal year, and any Cooperative Threat Reduction

funds for a fiscal year before such fiscal year that remain available

for obligation, for a proliferation threat reduction project or activity

outside the states of the former Soviet Union if the President

determines each of the following:

(1) That such project or activity will—

(A)(i) assist the United States in the resolution of

a critical emerging proliferation threat; or

(ii) permit the United States to take advantage of

opportunities to achieve long-standing nonproliferation

goals; and

(B) be completed in a short period of time.

(2) That the Department of Defense is the entity of the

Federal Government that is most capable of carrying out such

project or activity.

(b) SCOPE OF AUTHORITY.—The authority in subsection (a) to

obligate and expend funds for a project or activity includes authority

to provide equipment, goods, and services for such project or activity

utilizing such funds, but does not include authority to provide

cash directly to such project or activity.

(c) LIMITATION ON TOTAL AMOUNT OF OBLIGATION.—The

amount that may be obligated in a fiscal year under the authority

in subsection (a) may not exceed $50,000,000.

(d) LIMITATION ON AVAILABILITY OF FUNDS.—(1) The President

may not obligate funds for a project or activity under the authority

in subsection (a) until the President makes each determination

specified in that subsection with respect to such project or activity.

(2) Not later than 10 days after obligating funds under the

authority in subsection (a) for a project or activity, the President

shall notify Congress in writing of the determinations made under

paragraph (1) with respect to such project or activity, together

with—

(A) a justification for such determinations; and

(B) a description of the scope and duration of such project

or activity.

(e) ADDITIONAL LIMITATIONS AND REQUIREMENTS.—Except as

otherwise provided in subsections (a) and (b), the exercise of the
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authority in subsection (a) shall be subject to any requirement

or limitation under another provision of law as follows:

(1) Any requirement for prior notice or other reports to

Congress on the use of Cooperative Threat Reduction funds

or on Cooperative Threat Reduction projects or activities.

(2) Any limitation on the obligation or expenditure of

Cooperative Threat Reduction funds.

(3) Any limitation on Cooperative Threat Reduction projects

or activities.

TITLE XIV—SERVICES ACQUISITION

REFORM

Sec. 1401. Short title.

Subtitle A—Acquisition Workforce and Training

Sec. 1411. Definition of acquisition.

Sec. 1412. Acquisition workforce training fund.

Sec. 1413. Acquisition workforce recruitment program.

Sec. 1414. Architectural and engineering acquisition workforce.

Subtitle B—Adaptation of Business Acquisition Practices

PART I—ADAPTATION OF BUSINESS MANAGEMENT PRACTICES

Sec. 1421. Chief Acquisition Officers.

Sec. 1422. Chief Acquisition Officers Council.

Sec. 1423. Statutory and regulatory review.

PART II—OTHER ACQUISITION IMPROVEMENTS

Sec. 1426. Extension of authority to carry out franchise fund programs.

Sec. 1427. Improvements in contracting for architectural and engineering services.

Sec. 1428. Authorization of telecommuting for Federal contractors.

Subtitle C—Acquisitions of Commercial Items

Sec. 1431. Additional incentive for use of performance-based contracting for services.

Sec. 1432. Authorization of additional commercial contract types.

Sec. 1433. Clarification of commercial services definition.

Subtitle D—Other Matters

Sec. 1441. Authority to enter into certain transactions for defense against or recovery from terrorism or nuclear, biological, chemical, or radiological attack.

Sec. 1442. Public disclosure of noncompetitive contracting for the reconstruction of

infrastructure in Iraq.

Sec. 1443. Special emergency procurement authority.

SEC. 1401. SHORT TITLE.

This title may be cited as the ‘‘Services Acquisition Reform

Act of 2003’’.

Subtitle A—Acquisition Workforce and

Training

SEC. 1411. DEFINITION OF ACQUISITION.

Section 4 of the Office of Federal Procurement Policy Act (41

U.S.C. 403) is amended by adding at the end the following:

‘‘(16) The term ‘acquisition’—

‘‘(A) means the process of acquiring, with appropriated

funds, by contract for purchase or lease, property or services (including construction) that support the missions and
H. R. 1588—273

goals of an executive agency, from the point at which

the requirements of the executive agency are established

in consultation with the chief acquisition officer of the

executive agency; and

‘‘(B) includes—

‘‘(i) the process of acquiring property or services

that are already in existence, or that must be created,

developed, demonstrated, and evaluated;

‘‘(ii) the description of requirements to satisfy

agency needs;

‘‘(iii) solicitation and selection of sources;

‘‘(iv) award of contracts;

‘‘(v) contract performance;

‘‘(vi) contract financing;

‘‘(vii) management and measurement of contract

performance through final delivery and payment; and

‘‘(viii) technical and management functions directly

related to the process of fulfilling agency requirements

by contract.’’.

SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND.

(a) PURPOSES.—The purposes of this section are to ensure that

the Federal acquisition workforce—

(1) adapts to fundamental changes in the nature of Federal

Government acquisition of property and services associated

with the changing roles of the Federal Government; and

(2) acquires new skills and a new perspective to enable

it to contribute effectively in the changing environment of the

21st century.

(b) ESTABLISHMENT OF FUND.—Section 37 of the Office of Federal Procurement Policy Act (41 U.S.C. 433) is amended by adding

at the end of subsection (h) the following new paragraph:

‘‘(3) ACQUISITION WORKFORCE TRAINING FUND.—(A) The

Administrator of General Services shall establish an acquisition

workforce training fund. The Administrator shall manage the

fund through the Federal Acquisition Institute to support the

training of the acquisition workforce of the executive agencies

other than the Department of Defense. The Administrator shall

consult with the Administrator for Federal Procurement Policy

in managing the fund.

‘‘(B) There shall be credited to the acquisition workforce

training fund 5 percent of the fees collected by executive agencies (other than the Department of Defense) under the following

contracts:

‘‘(i) Governmentwide task and delivery-order contracts

entered into under sections 303H and 303I of the Federal

Property and Administrative Services Act of 1949 (41

U.S.C. 253h and 253i).

‘‘(ii) Governmentwide contracts for the acquisition of

information technology as defined in section 11101 of title

40, United States Code, and multiagency acquisition contracts for such technology authorized by section 11314 of

such title.

‘‘(iii) Multiple-award schedule contracts entered into

by the Administrator of General Services.

‘‘(C) The head of an executive agency that administers

a contract described in subparagraph (B) shall remit to the
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General Services Administration the amount required to be

credited to the fund with respect to such contract at the end

of each quarter of the fiscal year.

‘‘(D) The Administrator of General Services, through the

Office of Federal Acquisition Policy, shall ensure that funds

collected for training under this section are not used for any

purpose other than the purpose specified in subparagraph (A).

‘‘(E) Amounts credited to the fund shall be in addition

to funds requested and appropriated for education and training

referred to in paragraph (1).

‘‘(F) Amounts credited to the fund shall remain available

to be expended only in the fiscal year for which credited and

the two succeeding fiscal years.

‘‘(G) This paragraph shall cease to be effective five years

after the date of the enactment of the National Defense

Authorization Act for Fiscal Year 2004.’’.

(c) EXCEPTION.—This section and the amendments made by

this section shall not apply to the acquisition workforce of the

Department of Defense. Fees charged to the Department of Defense

under contracts covered by section 37(h)(3) of the Office of Federal

Procurement Policy Act, as added by subsection (b), shall be reduced

by 5 percent to reflect the Department’s nonparticipation in the

acquisition workforce training fund established by such section.

SEC. 1413. ACQUISITION WORKFORCE RECRUITMENT PROGRAM.

(a) DETERMINATION OF SHORTAGE CATEGORY POSITIONS.—For

purposes of sections 3304, 5333, and 5753 of title 5, United States

Code, the head of a department or agency of the United States

(other than the Secretary of Defense) may determine, under regulations prescribed by the Office of Personnel Management, that certain Federal acquisition positions (as described in section 37(g)(1)(A)

of the Office of Federal Procurement Policy Act (41 U.S.C.

433(g)(1)(A)) are shortage category positions in order to use the

authorities in those sections to recruit and appoint highly qualified

persons directly to such positions in the department or agency.

(b) TERMINATION OF AUTHORITY.—The head of a department

or agency may not appoint a person to a position of employment

under this section after September 30, 2007.

(c) REPORT.—Not later than March 31, 2007, the Director of

the Office of Personnel Management, in consultation with the

Administrator for Federal Procurement Policy, shall submit to Congress a report on the implementation of this section. The report

shall include—

(1) a list of the departments and agencies that exercised

the authority provided in this section, and whether the exercise

of the authority was carried out in accordance with the regulations prescribed by the Office of Personnel Management;

(2) the Director’s assessment of the efficacy of the exercise

of the authority provided in this section in attracting employees

with unusually high qualifications to the acquisition workforce;

and

(3) any recommendations considered appropriate by the

Director on whether the authority to carry out the program

should be extended.
H. R. 1588—275

SEC. 1414. ARCHITECTURAL AND ENGINEERING ACQUISITION

WORKFORCE.

The Administrator for Federal Procurement Policy, in consultation with the Secretary of Defense, the Administrator of General

Services, and the Director of the Office of Personnel Management,

shall develop and implement a plan to ensure that the Federal

Government maintains the necessary capability with respect to

the acquisition of architectural and engineering services to— (1) ensure that Federal Government employees have the

expertise to determine agency requirements for such services;

(2) establish priorities and programs (including acquisition

plans);

(3) establish professional standards;

(4) develop scopes of work; and

(5) award and administer contracts for such services.

Subtitle B—Adaptation of Business

Acquisition Practices

PART I—ADAPTATION OF BUSINESS

MANAGEMENT PRACTICES

SEC. 1421. CHIEF ACQUISITION OFFICERS.

(a) APPOINTMENT OF CHIEF ACQUISITION OFFICERS.—(1) Section

16 of the Office of Federal Procurement Policy Act (41 U.S.C.

414) is amended to read as follows:

‘‘SEC. 16. CHIEF ACQUISITION OFFICERS AND SENIOR PROCUREMENT

EXECUTIVES.

‘‘(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISITION OFFICERS.—(1) The head of each executive agency described in section

901(b)(1) (other than the Department of Defense) or section

901(b)(2)(C) of title 31, United States Code, with a Chief Financial

Officer appointed or designated under section 901(a) of such title

shall appoint or designate a non-career employee as Chief Acquisition Officer for the agency, who shall—

‘‘(A) have acquisition management as that official’s primary

duty; and

‘‘(B) advise and assist the head of the executive agency

and other agency officials to ensure that the mission of the

executive agency is achieved through the management of the

agency’s acquisition activities.

‘‘(b) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF ACQUISITION

OFFICERS.—The functions of each Chief Acquisition Officer shall

include—

‘‘(1) monitoring the performance of acquisition activities

and acquisition programs of the executive agency, evaluating

the performance of those programs on the basis of applicable

performance measurements, and advising the head of the executive agency regarding the appropriate business strategy to

achieve the mission of the executive agency;

‘‘(2) increasing the use of full and open competition in

the acquisition of property and services by the executive agency

by establishing policies, procedures, and practices that ensure

that the executive agency receives a sufficient number of sealed
H. R. 1588—276

bids or competitive proposals from responsible sources to fulfill

the Government’s requirements (including performance and

delivery schedules) at the lowest cost or best value considering

the nature of the property or service procured;

‘‘(3) increasing appropriate use of performance-based contracting and performance specifications;

‘‘(4) making acquisition decisions consistent with all

applicable laws and establishing clear lines of authority,

accountability, and responsibility for acquisition decisionmaking

within the executive agency;

‘‘(5) managing the direction of acquisition policy for the

executive agency, including implementation of the unique

acquisition policies, regulations, and standards of the executive

agency;

‘‘(6) developing and maintaining an acquisition career

management program in the executive agency to ensure that

there is an adequate professional workforce; and

‘‘(7) as part of the strategic planning and performance

evaluation process required under section 306 of title 5, United

States Code, and sections 1105(a)(28), 1115, 1116, and 9703

of title 31, United States Code—

‘‘(A) assessing the requirements established for agency

personnel regarding knowledge and skill in acquisition

resources management and the adequacy of such requirements for facilitating the achievement of the performance

goals established for acquisition management;

‘‘(B) in order to rectify any deficiency in meeting such

requirements, developing strategies and specific plans for

hiring, training, and professional development; and

‘‘(C) reporting to the head of the executive agency

on the progress made in improving acquisition management

capability.

‘‘(c) SENIOR PROCUREMENT EXECUTIVE.—(1) The head of each

executive agency shall designate a senior procurement executive

who shall be responsible for management direction of the procurement system of the executive agency, including implementation

of the unique procurement policies, regulations, and standards of

the executive agency.

‘‘(2) In the case of an executive agency for which a Chief

Acquisition Officer has been appointed or designated under subsection (a), the head of such executive agency shall either—

‘‘(A) designate the Chief Acquisition Officer as the senior

procurement executive for the executive agency; or

‘‘(B) ensure that the senior procurement executive designated for the executive agency under paragraph (1) reports

directly to the Chief Acquisition Officer without intervening

authority.’’.

(2) The item relating to section 16 in the table of contents

in section 1(b) of such Act is amended to read as follows:

‘‘Sec. 16. Chief Acquisition Officers and senior procurement executives.’’.

(b) TECHNICAL CORRECTION.—Section 1115(a) of title 31, United

States Code, is amended by striking ‘‘section 1105(a)(29)’’ and

inserting ‘‘section 1105(a)(28)’’.
H. R. 1588—277

SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL.

(a) ESTABLISHMENT OF COUNCIL.—The Office of Federal

Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by

inserting after section 16 the following new section:

‘‘SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL.

‘‘(a) ESTABLISHMENT.—There is established in the executive

branch a Chief Acquisition Officers Council.

‘‘(b) MEMBERSHIP.—The members of the Council shall be as

follows:

‘‘(1) The Deputy Director for Management of the Office

of Management and Budget, who shall act as Chairman of

the Council.

‘‘(2) The Administrator for Federal Procurement Policy.

‘‘(3) The Under Secretary of Defense for Acquisition, Technology, and Logistics.

‘‘(4) The chief acquisition officer of each executive agency

that is required to have a chief acquisition officer under section

16 and the senior procurement executive of each military

department.

‘‘(5) Any other senior agency officer of each executive

agency, appointed by the head of the agency in consultation

with the Chairman, who can effectively assist the Council in

performing the functions set forth in subsection (e) and supporting the associated range of acquisition activities.

‘‘(c) LEADERSHIP; SUPPORT.—(1) The Administrator for Federal

Procurement Policy shall lead the activities of the Council on behalf

of the Deputy Director for Management.

‘‘(2)(A) The Vice Chairman of the Council shall be selected

by the Council from among its members.

‘‘(B) The Vice Chairman shall serve a 1-year term, and may

serve multiple terms.

‘‘(3) The Administrator of General Services shall provide

administrative and other support for the Council.

‘‘(d) PRINCIPAL FORUM.—The Council is designated the principal

interagency forum for monitoring and improving the Federal

acquisition system.

‘‘(e) FUNCTIONS.—The Council shall perform functions that

include the following:

‘‘(1) Develop recommendations for the Director of the Office

of Management and Budget on Federal acquisition policies and

requirements.

‘‘(2) Share experiences, ideas, best practices, and innovative

approaches related to Federal acquisition.

‘‘(3) Assist the Administrator in the identification, development, and coordination of multiagency projects and other

innovative initiatives to improve Federal acquisition.

‘‘(4) Promote effective business practices that ensure the

timely delivery of best value products to the Federal Government and achieve appropriate public policy objectives.

‘‘(5) Further integrity, fairness, competition, openness, and

efficiency in the Federal acquisition system.

‘‘(6) Work with the Office of Personnel Management to

assess and address the hiring, training, and professional

development needs of the Federal Government related to

acquisition.
H. R. 1588—278

‘‘(7) Work with the Administrator and the Federal Acquisition Regulatory Council to promote the business practices

referred to in paragraph (4) and other results of the functions

carried out under this subsection.’’.

(b) CLERICAL AMENDMENT.—The table of contents in section

1(b) of such Act is amended by inserting after the item relating

to section 16 the following new item:

‘‘Sec. 16A. Chief Acquisition Officers Council.’’.

SEC. 1423. STATUTORY AND REGULATORY REVIEW.

(a) ESTABLISHMENT.—Not later than 90 days after the date

of the enactment of this Act, the Administrator for Federal Procurement Policy shall establish an advisory panel to review laws and

regulations regarding the use of commercial practices, performancebased contracting, the performance of acquisition functions across

agency lines of responsibility, and the use of Governmentwide contracts.

(b) MEMBERSHIP.—The panel shall be composed of at least

nine individuals who are recognized experts in acquisition law

and Government acquisition policy. In making appointments to

the panel, the Administrator shall—

(1) consult with the Secretary of Defense, the Administrator

of General Services, the Committees on Armed Services and

Government Reform of the House of Representatives, and the

Committees on Armed Services and Governmental Affairs of

the Senate; and

(2) ensure that the members of the panel reflect the diverse

experiences in both the public and private sectors, including

academia.

(c) DUTIES.—The panel shall—

(1) review all Federal acquisition laws and regulations,

and, to the extent practicable, government-wide acquisition policies, with a view toward ensuring effective and appropriate

use of commercial practices and performance-based contracting;

and

(2) make any recommendations for the modification of such

laws, regulations, or policies that are considered necessary as

a result of such review—

(A) to protect the best interests of the Federal Government;

(B) to ensure the continuing financial and ethical integrity of acquisitions by the Federal Government; and

(C) to amend or eliminate any provisions in such laws,

regulations, or policies that are unnecessary for the effective, efficient, and fair award and administration of contracts for the acquisition by the Federal Government of

goods and services.

(d) REPORT.—Not later than one year after the establishment

of the panel, the panel shall submit to the Administrator and

to the Committees on Armed Services and Government Reform

of the House of Representatives and the Committees on Armed

Services and Governmental Affairs of the Senate a report containing

a detailed statement of the findings, conclusions, and recommendations of the panel.
H. R. 1588—279

PART II—OTHER ACQUISITION

IMPROVEMENTS

SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT FRANCHISE

FUND PROGRAMS.

Section 403(f) of the Federal Financial Management Act of

1994 (Public Law 103–356; 31 U.S.C. 501 note) is amended by

striking ‘‘October 1, 2003’’ and inserting ‘‘December 31, 2004’’.

SEC. 1427. IMPROVEMENTS IN CONTRACTING FOR ARCHITECTURAL

AND ENGINEERING SERVICES.

(a) TITLE 10.—Section 2855(b) of title 10, United States Code,

is amended in paragraph (2), by striking ‘‘$85,000’’ and inserting ‘‘$300,000’’. (b) ARCHITECTURAL AND ENGINEERING SERVICES.—Architectural

and engineering services (as defined in section 1102 of title 40,

United States Code) shall not be offered under multiple-award

schedule contracts entered into by the Administrator of General

Services or under Governmentwide task and delivery order contracts

entered into under sections 2304a and 2304b of title 10, United

States Code, or sections 303H and 303I of the Federal Property

and Administrative Services Act of 1949 (41 U.S.C. 253h and 253i)

unless such services— (1) are performed under the direct supervision of a professional architect or engineer licensed, registered, or certified

in the State, territory (including the Commonwealth of Puerto

Rico), possession, or Federal District in which the services

are to be performed; and

(2) are awarded in accordance with the selection procedures

set forth in chapter 11 of title 40, United States Code.

SEC. 1428. AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRACTORS.

(a) AMENDMENT TO THE FEDERAL ACQUISITION REGULATION.—

Not later than 180 days after the date of the enactment of this

Act, the Federal Acquisition Regulatory Council shall amend the

Federal Acquisition Regulation issued in accordance with sections

6 and 25 of the Office of Federal Procurement Policy Act (41

U.S.C. 405 and 421) to permit telecommuting by employees of

Federal Government contractors in the performance of contracts

entered into with executive agencies.

(b) CONTENT OF AMENDMENT.—The regulation issued pursuant

to subsection (a) shall, at a minimum, provide that solicitations

for the acquisition of property or services may not set forth any

requirement or evaluation criteria that would—

(1) render an offeror ineligible to enter into a contract

on the basis of the inclusion of a plan of the offeror to permit

the offeror’s employees to telecommute, unless the contracting

officer concerned first determines that the requirements of the

agency, including security requirements, cannot be met if the

telecommuting is permitted and documents in writing the basis

for that determination; or

(2) reduce the scoring of an offer on the basis of the inclusion in the offer of a plan of the offeror to permit the offeror’s

employees to telecommute, unless the contracting officer concerned first determines that the requirements of the agency,

including security requirements, would be adversely impacted
H. R. 1588—280

if telecommuting is permitted and documents in writing the

basis for that determination.

(c) DEFINITION.—In this section, the term ‘‘executive agency’’ has the meaning given that term in section 4(1) of the Office

of Federal Procurement Policy Act (41 U.S.C. 403(1)).

Subtitle C—Acquisitions of Commercial

Items

SEC. 1431. ADDITIONAL INCENTIVE FOR USE OF PERFORMANCE-BASED

CONTRACTING FOR SERVICES.

(a) IN GENERAL.—The Office of Federal Procurement Policy

Act (41 U.S.C. 403 et seq.) is amended by adding at the end

the following new section:

‘‘SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF SERVICES

CONTRACTS.

‘‘(a) INCENTIVE FOR USE OF PERFORMANCE-BASED SERVICES

CONTRACTS.—A performance-based contract for the procurement

of services entered into by an executive agency or a performancebased task order for services issued by an executive agency may

be treated as a contract for the procurement of commercial items

if—

‘‘(1) the value of the contract or task order is estimated

not to exceed $25,000,000;

‘‘(2) the contract or task order sets forth specifically each

task to be performed and, for each task— ‘‘(A) defines the task in measurable, mission-related

terms; ‘‘(B) identifies the specific end products or output to

be achieved; and ‘‘(C) contains firm, fixed prices for specific tasks to

be performed or outcomes to be achieved; and

‘‘(3) the source of the services provides similar services

to the general public under terms and conditions similar to

those offered to the Federal Government.

‘‘(b) REGULATIONS.—The regulations implementing this section

shall require agencies to collect and maintain reliable data sufficient

to identify the contracts or task orders treated as contracts for

commercial items using the authority of this section. The data

may be collected using the Federal Procurement Data System or

other reporting mechanism. ‘‘(c) REPORT.—Not later than two years after the date of the

enactment of this section, the Director of the Office of Management

and Budget shall prepare and submit to the Committees on Governmental Affairs and on Armed Services of the Senate and the

Committees on Government Reform and on Armed Services of the

House of Representatives a report on the contracts or task orders

treated as contracts for commercial items using the authority of

this section. The report shall include data on the use of such

authority both government-wide and for each department and

agency.

‘‘(d) EXPIRATION.—The authority under this section shall expire

10 years after the date of the enactment of this section.’’. (b) CENTER OF EXCELLENCE IN SERVICE CONTRACTING.—Not

later than 180 days after the date of the enactment of this Act,
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the Administrator for Federal Procurement Policy shall establish

a center of excellence in contracting for services. The center of

excellence shall assist the acquisition community by identifying,

and serving as a clearinghouse for, best practices in contracting

for services in the public and private sectors.

(c) REPEAL OF SUPERSEDED PROVISION.—Subsection (b) of section 821 of the Floyd D. Spence National Defense Authorization

Act for Fiscal Year 2001 (as enacted into law by Public Law 106– 398; 114 Stat. 1654A–218; 10 U.S.C. 2302 note) is repealed.

(d) CLERICAL AND TECHNICAL AMENDMENTS.—(1) The table of

contents in section 1(b) of such Act is amended by striking the

last item and inserting the following:

‘‘Sec. 40. Protection of constitutional rights of contractors.

‘‘Sec. 41. Incentives for efficient performance of services contracts.’’.

(2) The section before section 41 of such Act (as added by

subsection (a)) is redesignated as section 40.

SEC. 1432. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT

TYPES.

Section 8002(d) of the Federal Acquisition Streamlining Act

of 1994 (Public Law 103–355; 108 Stat. 3387; 41 U.S.C. 264 note)

is amended— (1) by redesignating paragraph (1) as subparagraph (A)

and in that subparagraph by striking ‘‘and’’;

(2) by redesignating paragraph (2) as subparagraph (B)

and in that subparagraph by striking the period at the end

and inserting ‘‘; and’’;

(3) by adding after subparagraph (B) (as so redesignated)

the following new subparagraph: ‘‘(C) subject to paragraph (2), authority for use of a timeand-materials contract or a labor-hour contract for the procurement of commercial services that are commonly sold to the

general public through such contracts and are purchased by

the procuring agency on a competitive basis.’’;

(4) by striking ‘‘USE OF FIRM, FIXED PRICE CONTRACTS.— The’’ and inserting ‘‘PROVISIONS RELATING TO TYPES OF CON- TRACTS FOR COMMERCIAL ITEMS.—(1)’’; and

(5) by adding at the end the following new paragraphs: ‘‘(2) A time-and-materials contract or a labor-hour contract

may be used pursuant to the authority referred to in paragraph

(1)(C)—

‘‘(A) only for a procurement of commercial services in a

category of commercial services described in paragraph (3);

and—

‘‘(B) only if the contracting officer for such procurement—

‘‘(i) executes a determination and findings that no other

contract type is suitable;

‘‘(ii) includes in the contract a ceiling price that the

contractor exceeds at its own risk; and

‘‘(iii) authorizes any subsequent change in the ceiling

price only upon a determination, documented in the contract file, that it is in the best interest of the procuring

agency to change such ceiling price. ‘‘(3) The categories of commercial services referred to in paragraph (2) are as follows:

‘‘(A) Commercial services procured for support of a

commercial item, as described in section 4(12)(E) of the
H. R. 1588—282

Office of Federal Procurement Policy Act (41 U.S.C.

403(12)(E)).

‘‘(B) Any other category of commercial services that

is designated by the Administrator for Federal Procurement

Policy in the Federal Acquisition Regulation for the purposes of this paragraph on the basis that—

‘‘(i) the commercial services in such category are

of a type of commercial services that are commonly

sold to the general public through use of time-andmaterials or labor-hour contracts; and

‘‘(ii) it would be in the best interests of the Federal

Government to authorize use of time-and-materials or

labor-hour contracts for purchases of the commercial

services in such category.’’.

SEC. 1433. CLARIFICATION OF COMMERCIAL SERVICES DEFINITION.

Section 4 of the Office of Federal Procurement Policy Act (41

U.S.C. 403) is amended in paragraph (12)(F) by inserting ‘‘or specific

outcomes to be achieved’’ after ‘‘performed’’.

Subtitle D—Other Matters

SEC. 1441. AUTHORITY TO ENTER INTO CERTAIN TRANSACTIONS FOR

DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR

NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL

ATTACK.

(a) AUTHORITY.—

(1) IN GENERAL.—The head of an executive agency who

engages in basic research, applied research, advanced research,

and development projects that—

(A) are necessary to the responsibilities of such official’s

executive agency in the field of research and development,

and

(B) have the potential to facilitate defense against or

recovery from terrorism or nuclear, biological, chemical,

or radiological attack,

may exercise the same authority (subject to the same restrictions and conditions) with respect to such research and projects

as the Secretary of Defense may exercise under section 2371

of title 10, United States Code, except for subsections (b) and

(f) of such section 2371.

(2) PROTOTYPE PROJECTS.—The head of an executive agency

may, under the authority of paragraph (1), carry out prototype

projects that meet the requirements of subparagraphs (A) and

(B) of paragraph (1) in accordance with the requirements and

conditions provided for carrying out prototype projects under

section 845 of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 10 U.S.C. 2371 note), including

that, to the maximum extent practicable, competitive procedures shall be used when entering into agreements to carry

out projects under subsection (a) of that section and that the

period of authority to carry out projects under such subsection

(a) terminates as provided in subsection (g) of that section.

(3) APPLICATION OF REQUIREMENTS AND CONDITIONS.—In

applying the requirements and conditions of section 845 of
H. R. 1588—283

the National Defense Authorization Act for Fiscal Year 1994

under this subsection—

(A) subsection (c) of that section shall apply with

respect to prototype projects carried out under this paragraph; and

(B) the Director of the Office of Management and

Budget shall perform the functions of the Secretary of

Defense under subsection (d) of that section.

(4) APPLICABILITY TO SELECTED EXECUTIVE AGENCIES.— (A) OMB AUTHORIZATION REQUIRED.—The head of an

executive agency may exercise authority under this subsection for a project only if authorized by the Director

of the Office of Management and Budget to use the

authority for such project.

(B) RELATIONSHIP TO AUTHORITY OF DEPARTMENT OF

HOMELAND SECURITY.—The authority under this subsection

shall not apply to the Secretary of Homeland Security

while section 831 of the Homeland Security Act of 2002

(Public Law 107–296; 116 Stat. 2224) is in effect.

(b) ANNUAL REPORT.—The annual report of the head of an

executive agency that is required under subsection (h) of section

2371 of title 10, United States Code, as applied to the head of

the executive agency by subsection (a), shall be submitted to the

Committee on Governmental Affairs of the Senate and the Committee on Government Reform of the House of Representatives.

(c) REGULATIONS.—The Director of the Office of Management

and Budget shall prescribe regulations to carry out this section.

No transaction may be conducted under the authority of this section

before the date on which such regulations take effect.

(d) TERMINATION OF AUTHORITY.—The authority to carry out

transactions under subsection (a) shall terminate on September

30, 2008.

SEC. 1442. PUBLIC DISCLOSURE OF NONCOMPETITIVE CONTRACTING

FOR THE RECONSTRUCTION OF INFRASTRUCTURE IN

IRAQ.

(a) DISCLOSURE REQUIRED.—

(1) PUBLICATION AND PUBLIC AVAILABILITY.—The head of

an executive agency of the United States that enters into a

contract for the repair, maintenance, or construction of infrastructure in Iraq without full and open competition shall publish in the Federal Register or Commerce Business Daily and

otherwise make available to the public, not later than 30 days

after the date on which the contract is entered into, the following information:

(A) The amount of the contract.

(B) A brief description of the scope of the contract.

(C) A discussion of how the executive agency identified,

and solicited offers from, potential contractors to perform

the contract, together with a list of the potential contractors

that were issued solicitations for the offers.

(D) The justification and approval documents on which

was based the determination to use procedures other than

procedures that provide for full and open competition.

(2) INAPPLICABILITY TO CONTRACTS AFTER FISCAL YEAR

2005.—Paragraph (1) does not apply to a contract entered into

after September 30, 2005.
H. R. 1588—284

(b) CLASSIFIED INFORMATION.— (1) AUTHORITY TO WITHHOLD.—The head of an executive

agency may— (A) withhold from publication and disclosure under

subsection (a) any document that is classified for restricted

access in accordance with an Executive order in the interest

of national defense or foreign policy; and

(B) redact any part so classified that is in a document

not so classified before publication and disclosure of the

document under subsection (a).

(2) AVAILABILITY TO CONGRESS.—In any case in which the

head of an executive agency withholds information under paragraph (1), the head of such executive agency shall make available an unredacted version of the document containing that

information to the chairman and ranking member of each of

the following committees of Congress:

(A) The Committee on Governmental Affairs of the

Senate and the Committee on Government Reform of the

House of Representatives.

(B) The Committees on Appropriations of the Senate

and House of Representatives.

(C) Each committee that the head of the executive

agency determines has legislative jurisdiction for the operations of such department or agency to which the information relates.

(c) FISCAL YEAR 2003 CONTRACTS.—This section shall apply

to contracts entered into on or after October 1, 2002, except that,

in the case of a contract entered into before the date of the enactment of this Act, subsection (a) shall be applied as if the contract

had been entered into on the date of the enactment of this Act.

(d) RELATIONSHIP TO OTHER DISCLOSURE LAWS.—Nothing in

this section shall be construed as affecting obligations to disclose

United States Government information under any other provision

of law.

(e) DEFINITIONS.—In this section, the terms ‘‘executive agency’’ and ‘‘full and open competition’’ have the meanings given such

terms in section 4 of the Office of Federal Procurement Policy

Act (41 U.S.C. 403).

SEC. 1443. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

(a) PERMANENT AUTHORITY.—(1) The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by inserting

after section 32 the following new section:

‘‘SEC. 32A. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

‘‘(a) APPLICABILITY.—The authorities provided in this section

apply with respect to any procurement of property or services

by or for an executive agency that, as determined by the head

of such executive agency, are to be used—

‘‘(1) in support of a contingency operation; or

‘‘(2) to facilitate the defense against or recovery from

nuclear, biological, chemical, or radiological attack against the

United States.

‘‘(b) INCREASED THRESHOLDS.—For a procurement to which this

section applies under subsection (a)—

‘‘(1) the amount specified in subsections (c), (d), and (f)

of section 32 shall be deemed to be $15,000; and

‘‘(2) the term ‘simplified acquisition threshold’ means—
H. R. 1588—285

‘‘(A) $250,000 in the case of any contract to be awarded

and performed, or purchase to be made, inside the United

States; and

‘‘(B) $500,000 in the case of any contract to be awarded

and performed, or purchase to be made, outside the United

States.

‘‘(c) INCREASED LIMITATION ON USE OF SIMPLIFIED ACQUISITION

PROCEDURES.—For a procurement to which this section applies

under subsection (a), the $5,000,000 limitation in the following

provisions of law shall be deemed to be $10,000,000:

‘‘(1) Section 31(a)(2) of this Act.

‘‘(2) Section 2304(g)(1)(B) of title 10, United States Code.

‘‘(3) Section 303(g)(1)(B) of the Federal Property and

Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)).

‘‘(d) COMMERCIAL ITEMS AUTHORITY.—(1) The head of an executive agency carrying out a procurement of property or a service

to which this section applies under subsection (a)(2) may treat

such property or service as a commercial item for the purpose

of carrying out such procurement.

‘‘(2) A contract in an amount greater than $15,000,000 that

is awarded on a sole source basis for an item or service treated

as a commercial item under paragraph (1) shall not be exempt

from—

‘‘(A) cost accounting standards promulgated pursuant to

section 26 of this Act; or

‘‘(B) cost or pricing data requirements (commonly referred

to as truth in negotiating) under section 2306a of title 10,

United States Code, and section 304A of title III of the Federal

Property and Administrative Services Act of 1949 (41 U.S.C.

254b).

‘‘(e) CONTINGENCY OPERATION DEFINED.—In this section, the

term ‘contingency operation’ has the meaning given such term in

section 101(a)(13) of title 10, United States Code.’’.

(2) The table of contents in section 1(b) of such Act is amended

by inserting after the item relating to section 32 the following

new item:

‘‘Sec. 32A. Special emergency procurement authority.’’.

(b) CONTINUATION OF AUTHORITY FOR USE OF SIMPLIFIED

ACQUISITION PROCEDURES.—Section 4202(e) of the Clinger-Cohen

Act (division D of Public Law 104–106; 110 Stat. 652; 10 U.S.C.

2304 note) is amended by striking ‘‘January 1, 2004’’ and inserting

‘‘January 1, 2006’’.

TITLE XV—VETERANS’ DISABILITY

BENEFITS COMMISSION

Sec. 1501. Establishment of commission.

Sec. 1502. Duties of the commission.

Sec. 1503. Report.

Sec. 1504. Powers of the commission.

Sec. 1505. Personnel matters.

Sec. 1506. Termination of commission.

Sec. 1507. Funding.

SEC. 1501. ESTABLISHMENT OF COMMISSION.

(a) ESTABLISHMENT OF COMMISSION.—There is hereby established a commission to be known as the Veterans’ Disability Benefits
H. R. 1588—286

Commission (hereinafter in this title referred to as the ‘‘commission’’).

(b) MEMBERSHIP.—(1) The commission shall be composed of

13 members, appointed as follows:

(A) Two members appointed by the Speaker of the House

of Representatives, at least one of whom shall be a veteran

who was awarded a decoration specified in paragraph (2).

(B) Two members appointed by the minority leader of the

House of Representatives, at least one of whom shall be a

veteran who was awarded a decoration specified in paragraph

(2).

(C) Two members appointed by the majority leader of the

Senate, at least one of whom shall be a veteran who was

awarded a decoration specified in paragraph (2).

(D) Two members appointed by the minority leader of

the Senate, at least one of whom shall be a veteran who

was awarded a decoration specified in paragraph (2).

(E) Five members appointed by the President, at least

three of whom shall be veterans who were awarded a decoration

specified in paragraph (2).

(2) A decoration specified in this paragraph is any of the following:

(A) The Medal of Honor.

(B) The Distinguished Service Cross, the Navy Cross, or

the Air Force Cross.

(C) The Silver Star.

(3) A vacancy in the Commission shall be filled in the manner

in which the original appointment was made.

(4) The appointment of members of the commission under this

subsection shall be made not later than 60 days after the date

of the enactment of this Act.

(c) PERIOD OF APPOINTMENT.—Members of the commission shall

be appointed for the life of the commission. A vacancy in the

commission shall not affect its powers.

(d) INITIAL MEETING.—The commission shall hold its first

meeting not later than 30 days after the date on which a majority

of the members of the commission have been appointed.

(e) MEETINGS.—The commission shall meet at the call of the

chairman.

(f) QUORUM.—A majority of the members of the commission

shall constitute a quorum, but a lesser number may hold hearings.

(g) CHAIRMAN.—The President shall designate a member of

the commission to be chairman of the commission.

SEC. 1502. DUTIES OF THE COMMISSION.

(a) STUDY.—The commission shall carry out a study of the

benefits under the laws of the United States that are provided

to compensate and assist veterans and their survivors for disabilities and deaths attributable to military service.

(b) SCOPE OF STUDY.—In carrying out the study, the commission

shall examine and make recommendations concerning the following:

(1) The appropriateness of such benefits under the laws

in effect on the date of the enactment of this Act.

(2) The appropriateness of the level of such benefits.

(3) The appropriate standard or standards for determining

whether a disability or death of a veteran should be compensated.
H. R. 1588—287

(c) CONTENTS OF STUDY.—The study to be carried out by the

commission under this section shall be a comprehensive evaluation

and assessment of the benefits provided under the laws of the

United States to compensate veterans and their survivors for disability or death attributable to military service, together with any

related issues that the commission determines are relevant to the

purposes of the study. The study shall include an evaluation and

assessment of the following:

(1) The laws and regulations which determine eligibility

for disability and death benefits, and other assistance for veterans and their survivors.

(2) The rates of such compensation, including the appropriateness of a schedule for rating disabilities based on average

impairment of earning capacity.

(3) Comparable disability benefits provided to individuals

by the Federal Government, State governments, and the private

sector.

(d) CONSULTATION WITH INSTITUTE OF MEDICINE.—In carrying

out the study under this section, the commission shall consult

with the Institute of Medicine of the National Academy of Sciences

with respect to the medical aspects of contemporary disability compensation policies.

SEC. 1503. REPORT.

Not later than 15 months after the date on which the commission first meets, the commission shall submit to the President

and Congress a report on the study. The report shall include the

following:

(1) The findings and conclusions of the commission,

including its findings and conclusions with respect to the matters referred to in section 1502(c).

(2) The recommendations of the commission for revising

the benefits provided by the United States to veterans and

their survivors for disability and death attributable to military

service.

(3) Other information and recommendations with respect

to such benefits as the commission considers appropriate.

SEC. 1504. POWERS OF THE COMMISSION.

(a) HEARINGS.—The commission may hold such hearings, sit

and act at such times and places, take such testimony, and receive

such evidence as the commission considers advisable to carry out

the purposes of this title.

(b) INFORMATION FROM FEDERAL AGENCIES.—In addition to the

information referred to in section 1502(c), the commission may

secure directly from any Federal department or agency such

information as the commission considers necessary to carry out

the provisions of this title. Upon request of the chairman of the

commission, the head of such department or agency shall furnish

such information to the commission.

(c) POSTAL SERVICES.—The commission may use the United

States mails in the same manner and under the same conditions

as other departments and agencies of the Federal Government.

(d) GIFTS.—The commission may accept, use, and dispose of

gifts or donations of services or property.
H. R. 1588—288

SEC. 1505. PERSONNEL MATTERS.

(a) COMPENSATION OF MEMBERS.—Each member of the commission who is not an officer or employee of the United States shall

be compensated at a rate equal to the daily equivalent of the

annual rate of basic pay prescribed for level IV of the Executive

Schedule under section 5315 of title 5, United States Code, for

each day (including travel time) during which the member is

engaged in the performance of the duties of the commission. All

members of the commission who are officers or employees of the

United States shall serve without compensation in addition to that

received for their services as officers or employees of the United

States.

(b) TRAVEL EXPENSES.—The members of the commission shall

be allowed travel expenses, including per diem in lieu of subsistence,

at rates authorized for employees of agencies under subchapter

I of chapter 57 of title 5, United States Code, while away from

their homes or regular places of business in the performance of

services for the commission.

(c) STAFF.—(1) The chairman of the commission may, without

regard to the civil service laws and regulations, appoint an executive

director and such other personnel as may be necessary to enable

the commission to perform its duties. The appointment of an executive director shall be subject to approval by the commission.

(2) The chairman of the commission may fix the compensation

of the executive director and other personnel without regard to

the provisions of chapter 51 and subchapter III of chapter 53

of title 5, United States Code, relating to classification of positions

and General Schedule pay rates, except that the rate of pay for

the executive director and other personnel may not exceed the

rate payable for level V of the Executive Schedule under section

5316 of such title.

(d) DETAIL OF GOVERNMENT EMPLOYEES.—Upon request of the

chairman of the commission, the head of any Federal department

or agency may detail, on a nonreimbursable basis, any personnel

of that department or agency to the commission to assist it in

carrying out its duties.

(e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES.—The chairman of the commission may procure temporary

and intermittent services under section 3109(b) of title 5, United

States Code, at rates for individuals which do not exceed the daily

equivalent of the annual rate of basic pay prescribed for level

V of the Executive Schedule under section 5316 of such title.

SEC. 1506. TERMINATION OF COMMISSION.

The commission shall terminate 60 days after the date on

which the commission submits its report under section 1503.

SEC. 1507. FUNDING.

(a) IN GENERAL.—The Secretary of Veterans Affairs shall, upon

the request of the chairman of the commission, make available

to the commission such amounts as the commission may require

to carry out its duties under this title.

(b) AVAILABILITY.—Any sums made available to the commission

under subsection (a) shall remain available, without fiscal year

limitation, until the termination of the commission.
H. R. 1588—289

TITLE XVI—DEFENSE BIOMEDICAL

COUNTERMEASURES

Sec. 1601. Research and development of defense biomedical countermeasures.

Sec. 1602. Procurement of defense biomedical countermeasures.

Sec. 1603. Authorization for medical products for use in emergencies.

SEC. 1601. RESEARCH AND DEVELOPMENT OF DEFENSE BIOMEDICAL

COUNTERMEASURES.

(a) IN GENERAL.—The Secretary of Defense (in this section

referred to as the ‘‘Secretary’’) shall carry out a program to accelerate the research, development and procurement of biomedical

countermeasures, including but not limited to therapeutics and

vaccines, for the protection of the Armed Forces from attack by

one or more biological, chemical, radiological, or nuclear agents.

(b) INTERAGENCY COOPERATION.—(1) In carrying out the program under subsection (a), the Secretary may enter into interagency

agreements and other collaborative undertakings with other Federal

agencies.

(2) The Secretary, through regular, structured, and close consultation with the Secretary of Health and Human Services and

the Secretary of Homeland Security, shall ensure that the activities

of the Department of Defense in carrying out the program are

coordinated with, complement, and do not unnecessarily duplicate

activities of the Department of Health and Human Services or

the Department of Homeland Security.

(c) EXPEDITED PROCUREMENT AUTHORITY.—(1) For any procurement of property or services for use (as determined by the Secretary)

in performing, administering, or supporting biomedical countermeasures research and development, the Secretary may, when

appropriate, use streamlined acquisition procedures and other expedited procurement procedures authorized in— (A) section 32A of the Office of Federal Procurement Policy

Act, as added by section 1443 of this Act; and

(B) section 2371 of title 10, United States Code, and section

845 of the National Defense Authorization Act for Fiscal Year

1994 (Public Law 103–160; 10 U.S.C. 2371 note).

(2) Notwithstanding paragraph (1) and the provisions of law

referred to in such paragraph, each of the following provisions

shall apply to the procurements described in this subsection to

the same extent that such provisions would apply to such procurements in the absence of paragraph (1):

(A) Chapter 37 of title 40, United States Code (relating

to contract work hours and safety standards).

(B) Subsections (a) and (b) of section 7 of the Anti-Kickback

Act of 1986 (41 U.S.C. 57(a) and (b)).

(C) Section 2313 of title 10, United States Code (relating

to the examination of contractor records).

(3) The Secretary shall institute appropriate internal controls

for use of the authority under paragraph (1), including requirements

for documenting the justification for each use of such authority.

(d) DEPARTMENT OF DEFENSE FACILITIES AUTHORITY.—(1) If

the Secretary determines that it is necessary to acquire, lease,

construct, or improve laboratories, research facilities, and other

real property of the Department of Defense in order to carry out

the program under this section, the Secretary may do so using

the procedures set forth in paragraphs (2), (3), (4), and (5).
H. R. 1588—290

(2) The Secretary shall use existing construction authorities

provided by subchapter I of chapter 169 of title 10, United States

Code, to the maximum extent possible.

(3)(A) If the Secretary determines that use of authorities in

paragraph (2) would prevent the Department from meeting a specific facility requirement for the program, the Secretary shall submit

to the congressional defense committees advance notification, which

shall include the following:

(i) Certification by the Secretary that use of existing

construction authorities would prevent the Department from

meeting the specific facility requirement.

(ii) A detailed explanation of the reasons why existing

authorities cannot be used.

(iii) A justification of the facility requirement.

(iv) Construction project data and estimated cost.

(v) Identification of the source or sources of the funds

proposed to be expended.

(B) The facility project may be carried out only after the end

of the 21-day period beginning on the date the notification is

received by the congressional defense committees.

(4) If the Secretary determines: (A) that the facility is vital

to national security or to the protection of health, safety, or the

quality of the environment; and (B) the requirement for the facility

is so urgent that the advance notification in paragraph (3) and

the subsequent 21-day deferral of the facility project would threaten

the life, health, or safety of personnel, or would otherwise jeopardize

national security, the Secretary may obligate funds for the facility

and notify the congressional defense committees within seven days

after the date on which appropriated funds are obligated with

the information required in paragraph (3).

(5) The Secretary shall submit to the congressional defense

committees a quarterly report detailing any use of the authority

provided by paragraph (4), including costs incurred or to be incurred

by the United States as a result of the use of the authority.

(6) Nothing in this section shall be construed to authorize

the Secretary to acquire, construct, lease, or improve a facility

having general utility beyond the specific purposes of the program.

(7) In this subsection, the term ‘‘facility’’ has the meaning

given the term in section 2801(c) of title 10, United States Code.

(e) AUTHORITY FOR PERSONAL SERVICES CONTRACTS.—(1) Subject to paragraph (2), the authority provided by section 1091 of

title 10, United States Code, for personal services contracts to

carry out health care responsibilities in medical treatment facilities

of the Department of Defense shall also be available, subject to

the same terms and conditions, for personal services contracts to

carry out research and development activities under this section.

The number of individuals whose personal services are obtained

under this subsection may not exceed 30 at any time.

(2) The authority provided by such section 1091 may not be

used for a personal services contract unless the contracting officer

for the contract ensures that—

(A) the services to be procured are urgent or unique; and

(B) it would not be practicable for the Department of

Defense to obtain such services by other measures.

(f) STREAMLINED PERSONNEL AUTHORITY.—(1) The Secretary

may appoint highly qualified experts, including scientific and technical personnel, to carry out research and development under this
H. R. 1588—291

section in accordance with the authorities provided in section 342

of the National Defense Authorization Act for Fiscal Year 1995

(Public Law 103–337; 108 Stat. 2721), section 1101 of the Strom

Thurmond National Defense Authorization Act for Fiscal Year 1999

(Public Law 105–261), and section 1101 of this Act.

(2) The Secretary may use the authority under paragraph (1)

only upon a determination by the Secretary that use of such

authority is necessary to accelerate the research and development

under the program.

(3) The Secretary shall institute appropriate internal controls

for each use of the authority under paragraph (1).

SEC. 1602. PROCUREMENT OF DEFENSE BIOMEDICAL COUNTERMEASURES.

(a) DETERMINATION OF MATERIAL THREATS.—(1) The Secretary

of Defense (in this section referred to as the ‘‘Secretary’’) shall

on an ongoing basis—

(A) assess current and emerging threats of use of biological,

chemical, radiological, and nuclear agents; and

(B) identify, on the basis of such assessment, those agents

that present a material risk of use against the Armed Forces.

(2) The Secretary shall on an ongoing basis—

(A) assess the potential consequences to the health of members of the Armed Forces of use against the Armed Forces

of the agents identified under paragraph (1)(B); and

(B) identify, on the basis of such assessment, those agents

for which countermeasures are necessary to protect the health

of members of the Armed Forces.

(b) ASSESSMENT OF AVAILABILITY AND APPROPRIATENESS OF

COUNTERMEASURES.—The Secretary shall on an ongoing basis

assess the availability and appropriateness of specific countermeasures to address specific threats identified under subsection

(a).

(c) SECRETARY’S DETERMINATION OF COUNTERMEASURES APPROPRIATE FOR PROCUREMENT.—(1) The Secretary, in accordance with

paragraph (2), shall on an ongoing basis identify specific countermeasures that the Secretary determines to be appropriate for

procurement for the Department of Defense stockpile of biomedical

countermeasures.

(2) The Secretary may not identify a specific countermeasure

under paragraph (1) unless the Secretary determines that—

(A) the countermeasure is a qualified countermeasure; and

(B) it is reasonable to expect that producing and delivering,

within 5 years, the quantity of that countermeasure required

to meet the needs of the Department (as determined by the

Secretary) is feasible.

(d) INTERAGENCY COOPERATION.—(1) Activities of the Secretary

under this section shall be carried out in regular, structured, and

close consultation and coordination with the Secretaries of Homeland Security and Health and Human Services, including the activities described in subsections (a), (b), and (c) and those activities

with respect to interagency agreements described in paragraph

(2).

(2) The Secretary may enter into an interagency agreement

with the Secretaries of Homeland Security and Health and Human

Services to provide for acquisition by the Secretary of Defense
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for use by the Armed Forces of biomedical countermeasures procured for the Strategic National Stockpile by the Secretary of Health

and Human Services. The Secretary may transfer such funds to

the Secretary of Health and Human Services as are necessary

to carry out such agreements (including administrative costs of

the Secretary of Health and Human Services), and the Secretary

of Health and Human Services may expend any such transferred

funds to procure such countermeasures for use by the Armed Forces,

or to replenish the stockpile. The Secretaries are authorized to

establish such terms and conditions for such agreements as the

Secretaries determine to be in the public interest. The transfer

authority provided under this paragraph is in addition to any

other transfer authority available to the Secretary.

(e) DEFINITIONS.—In this section:

(1) The term ‘‘qualified countermeasure’’ means a biomedical countermeasure—

(A) that is approved under section 505(a) of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C. 355) or licensed

under section 351 of the Public Health Service Act (42

U.S.C. 262), or that is approved under section 515 or

cleared under section 510(k) of the Federal Food, Drug,

and Cosmetic Act (21 U.S.C. 360e and 360) for use as

such a countermeasure to a biological, chemical, radiological, or nuclear agent identified as a material threat

under subsection (a); or

(B) with respect to which the Secretary of Health and

Human Services makes a determination that sufficient and

satisfactory clinical experience or research data (including

data, if available, from preclinical and clinical trials) exists

to support a reasonable conclusion that the product will

qualify for such approval or licensing for use as such a

countermeasure.

(2) The term ‘‘biomedical countermeasure’’ means a drug

(as defined in section 201(g)(1) of the Federal Food, Drug,

and Cosmetic Act (21 U.S.C. 321(g)(1))), device (as defined

in section 201(h) of the Federal Food, Drug, and Cosmetic

Act (21 U.S.C. 321(h))), or biological product (as defined in

section 351(i) of the Public Health Service Act (42 U.S.C. 262(i)))

that is—

(A) used to treat, identify, or prevent harm from any

biological, chemical, radiological, or nuclear agent that may

cause a military health emergency affecting the Armed

Forces; or

(B) used to treat, identify, or prevent harm from a

condition that may result in adverse health consequences

or death and may be caused by administering a drug or

biological product that is used as described in subparagraph

(A).

(3) The term ‘‘Strategic National Stockpile’’ means the

stockpile established under section 121(a) of the Public Health

and Bioterrorism Preparedness and Response Act of 2002 (42

U.S.C. 300hh–12(a)).

(f) FUNDING.—Of the amount authorized to be appropriated

for the Department of Defense and available within the transfer

authority established under section 1001 of this Act for fiscal year

2004 and for each fiscal year thereafter, such sums are authorized
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as may be necessary for the costs incurred by the Secretary in

the procurement of countermeasures under this section.

SEC. 1603. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN

EMERGENCIES.

(a) IN GENERAL.—Subchapter E of chapter V of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C. 360bbb et seq.) is amended

by adding at the end the following section:

‘‘SEC. 564. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN

EMERGENCIES.

‘‘(a) IN GENERAL.— ‘‘(1) EMERGENCY USES.—Notwithstanding sections 505,

510(k), and 515 of this Act and section 351 of the Public

Health Service Act, and subject to the provisions of this section,

the Secretary may authorize the introduction into interstate

commerce, during the effective period of a declaration under

subsection (b), of a drug, device, or biological product intended

for use in an actual or potential emergency (referred to in

this section as an ‘emergency use’). ‘‘(2) APPROVAL STATUS OF PRODUCT.—An authorization

under paragraph (1) may authorize an emergency use of a

product that— ‘‘(A) is not approved, licensed, or cleared for commercial

distribution under a provision of law referred to in such

paragraph (referred to in this section as an ‘unapproved

product’); or ‘‘(B) is approved, licensed, or cleared under such a

provision, but which use is not under such provision an

approved, licensed, or cleared use of the product (referred

to in this section as an ‘unapproved use of an approved

product’). ‘‘(3) RELATION TO OTHER USES.—An emergency use authorized under paragraph (1) for a product is in addition to any

other use that is authorized for the product under a provision

of law referred to in such paragraph. ‘‘(4) DEFINITIONS.—For purposes of this section: ‘‘(A) The term ‘biological product’ has the meaning

given such term in section 351 of the Public Health Service

Act. ‘‘(B) The term ‘emergency use’ has the meaning

indicated for such term in paragraph (1). ‘‘(C) The term ‘product’ means a drug, device, or

biological product. ‘‘(D) The term ‘unapproved product’ has the meaning

indicated for such term in paragraph (2)(A). ‘‘(E) The term ‘unapproved use of an approved product’ has the meaning indicated for such term in paragraph

(2)(B).

‘‘(b) DECLARATION OF EMERGENCY.—

‘‘(1) IN GENERAL.—The Secretary may declare an emergency

justifying the authorization under this subsection for a product

on the basis of a determination by the Secretary of Defense

that there is a military emergency, or a significant potential

for a military emergency, involving a heightened risk to United

States military forces of attack with a specified biological, chemical, radiological, or nuclear agent or agents.

‘‘(2) TERMINATION OF DECLARATION.—
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‘‘(A) IN GENERAL.—A declaration under this subsection

shall terminate upon the earlier of—

‘‘(i) a determination by the Secretary, in consultation with the Secretary of Defense, that the circumstances described in paragraph (1) have ceased

to exist; or

‘‘(ii) the expiration of the one-year period beginning

on the date on which the declaration is made.

‘‘(B) RENEWAL.—Notwithstanding subparagraph (A),

the Secretary may renew a declaration under this subsection, and this paragraph shall apply to any such

renewal. ‘‘(C) DISPOSITION OF PRODUCT.—If an authorization

under this section with respect to an unapproved product

ceases to be effective as a result of a termination under

subparagraph (A) of this paragraph, the Secretary shall

consult with the manufacturer of such product with respect

to the appropriate disposition of the product.

‘‘(3) ADVANCE NOTICE OF TERMINATION.—The Secretary

shall provide advance notice that a declaration under this subsection will be terminated. The period of advance notice shall

be a period reasonably determined to provide—

‘‘(A) in the case of an unapproved product, a sufficient

period for disposition of the product, including the return

of such product (except such quantities of product as are

necessary to provide for continued use consistent with subsection (f)(2)) to the manufacturer (in the case of a manufacturer that chooses to have such product returned); and

‘‘(B) in the case of an unapproved use of an approved

product, a sufficient period for the disposition of any

labeling, or any information under subsection (e)(2)(B)(ii),

as the case may be, that was provided with respect to

the emergency use involved.

‘‘(4) PUBLICATION.—The Secretary shall promptly publish

in the Federal Register each declaration, determination,

advance notice of termination, and renewal under this subsection.

‘‘(c) CRITERIA FOR ISSUANCE OF AUTHORIZATION.—The Secretary

may issue an authorization under this section with respect to the

emergency use of a product only if, after consultation with the

Director of the National Institutes of Health and the Director of

the Centers for Disease Control and Prevention (to the extent

feasible and appropriate given the circumstances of the emergency

involved), the Secretary concludes—

‘‘(1) that an agent specified in a declaration under subsection (b) can cause a serious or life-threatening disease or

condition;

‘‘(2) that, based on the totality of scientific evidence available to the Secretary, including data from adequate and wellcontrolled clinical trials, if available, it is reasonable to believe

that—

‘‘(A) the product may be effective in diagnosing,

treating, or preventing—

‘‘(i) such disease or condition; or

‘‘(ii) a serious or life-threatening disease or condition caused by a product authorized under this section,

approved or cleared under this Act, or licensed under
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section 351 of the Public Health Service Act, for diagnosing, treating, or preventing such a disease or condition caused by such an agent; and

‘‘(B) the known and potential benefits of the product,

when used to diagnose, prevent, or treat such disease or

condition, outweigh the known and potential risks of the

product;

‘‘(3) that there is no adequate, approved, and available

alternative to the product for diagnosing, preventing, or treating

such disease or condition; and

‘‘(4) that such other criteria as the Secretary may by regulation prescribe are satisfied.

‘‘(d) SCOPE OF AUTHORIZATION.—An authorization of a product

under this section shall state—

‘‘(1) each disease or condition that the product may be

used to diagnose, prevent, or treat within the scope of the

authorization;

‘‘(2) the Secretary’s conclusions, made under subsection

(c)(2)(B), that the known and potential benefits of the product,

when used to diagnose, prevent, or treat such disease or condition, outweigh the known and potential risks of the product;

and

‘‘(3) the Secretary’s conclusions, made under subsection

(c), concerning the safety and potential effectiveness of the

product in diagnosing, preventing, or treating such diseases

or conditions, including an assessment of the available scientific

evidence.

‘‘(e) CONDITIONS OF AUTHORIZATION.—

‘‘(1) UNAPPROVED PRODUCT.—

‘‘(A) REQUIRED CONDITIONS.—With respect to the emergency use of an unapproved product, the Secretary, to

the extent practicable given the circumstances of the emergency, shall, for a person who carries out any activity

for which the authorization is issued, establish such conditions on an authorization under this section as the Secretary finds necessary or appropriate to protect the public

health, including the following:

‘‘(i) Appropriate conditions designed to ensure that

health care professionals administering the product

are informed—

‘‘(I) that the Secretary has authorized the

emergency use of the product;

‘‘(II) of the significant known and potential

benefits and risks of the emergency use of the

product, and of the extent to which such benefits

and risks are unknown; and

‘‘(III) of the alternatives to the product that

are available, and of their benefits and risks.

‘‘(ii) Appropriate conditions designed to ensure that

individuals to whom the product is administered are

informed—

‘‘(I) that the Secretary has authorized the

emergency use of the product;

‘‘(II) of the significant known and potential

benefits and risks of such use, and of the extent

to which such benefits and risks are unknown;

and
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‘‘(III) of the option to accept or refuse administration of the product, of the consequences, if any,

of refusing administration of the product, and of

the alternatives to the product that are available

and of their benefits and risks.

‘‘(iii) Appropriate conditions for the monitoring and

reporting of adverse events associated with the emergency use of the product.

‘‘(iv) For manufacturers of the product, appropriate

conditions concerning recordkeeping and reporting,

including records access by the Secretary, with respect

to the emergency use of the product.

‘‘(B) AUTHORITY FOR ADDITIONAL CONDITIONS.—With

respect to the emergency use of an unapproved product,

the Secretary may, for a person who carries out any activity

for which the authorization is issued, establish such conditions on an authorization under this section as the Secretary finds necessary or appropriate to protect the public

health, including the following:

‘‘(i) Appropriate conditions on which entities may

distribute the product with respect to the emergency

use of the product (including limitation to distribution

by government entities), and on how distribution is

to be performed.

‘‘(ii) Appropriate conditions on who may administer

the product with respect to the emergency use of the

product, and on the categories of individuals to whom,

and the circumstances under which, the product may

be administered with respect to such use.

‘‘(iii) Appropriate conditions with respect to the

collection and analysis of information, during the

period when the authorization is in effect, concerning

the safety and effectiveness of the product with respect

to the emergency use of such product.

‘‘(iv) For persons other than manufacturers of the

product, appropriate conditions concerning recordkeeping and reporting, including records access by the

Secretary, with respect to the emergency use of the

product.

‘‘(2) UNAPPROVED USE.—With respect to the emergency use

of a product that is an unapproved use of an approved product:

‘‘(A) For a manufacturer of the product who carries

out any activity for which the authorization is issued, the

Secretary shall, to the extent practicable given the circumstances of the emergency, establish conditions

described in clauses (i) and (ii) of paragraph (1)(A), and

may establish conditions described in clauses (iii) and (iv)

of such paragraph.

‘‘(B)(i) If the authorization under this section regarding

the emergency use authorizes a change in the labeling

of the product, but the manufacturer of the product chooses

not to make such change, such authorization may not

authorize distributors of the product or any other person

to alter or obscure the labeling provided by the manufacturer.

‘‘(ii) In the circumstances described in clause (i), for

a person who does not manufacture the product and who
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chooses to act under this clause, an authorization under

this section regarding the emergency use shall, to the

extent practicable given the circumstances of the emergency, authorize such person to provide appropriate

information with respect to such product in addition to

the labeling provided by the manufacturer, subject to

compliance with clause (i). While the authorization under

this section is effective, such additional information shall

not be considered labeling for purposes of section 502.

‘‘(C) The Secretary may establish with respect to the

distribution and administration of the product for the

unapproved use conditions no more restrictive than those

established by the Secretary with respect to the distribution

and administration of the product for the approved use.

‘‘(3) GOOD MANUFACTURING PRACTICE.—With respect to the

emergency use of a product for which an authorization under

this section is issued (whether an unapproved product or an

unapproved use of an approved product), the Secretary may

waive or limit, to the extent appropriate given the circumstances of the emergency, requirements regarding current

good manufacturing practice otherwise applicable to the manufacture, processing, packing, or holding of products subject to

regulation under this Act, including such requirements established under section 501.

‘‘(4) ADVERTISING.—The Secretary may establish conditions

on advertisements and other promotional descriptive printed

matter that relate to the emergency use of a product for which

an authorization under this section is issued (whether an

unapproved product or an unapproved use of an approved

product), including, as appropriate—

‘‘(A) with respect to drugs and biological products,

requirements applicable to prescription drugs pursuant to

section 502(n); or

‘‘(B) with respect to devices, requirements applicable

to restricted devices pursuant to section 502(r).

‘‘(f) DURATION OF AUTHORIZATION.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

an authorization under this section shall be effective until

the earlier of the termination of the declaration under subsection (b) or a revocation under subsection (g).

‘‘(2) CONTINUED USE AFTER END OF EFFECTIVE PERIOD.—

Notwithstanding the termination of the declaration under subsection (b) or a revocation under subsection (g), an authorization

shall continue to be effective to provide for continued use of

an unapproved product with respect to a patient to whom

it was administered during the period described by paragraph

(1), to the extent found necessary by such patient’s attending

physician.

‘‘(g) REVOCATION OF AUTHORIZATION.—

‘‘(1) REVIEW.—The Secretary shall periodically review the

circumstances and the appropriateness of an authorization

under this section. ‘‘(2) REVOCATION.—The Secretary may revoke an authorization under this section if the criteria under subsection (c) for

issuance of such authorization are no longer met or other

circumstances make such revocation appropriate to protect the

public health or safety.
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‘‘(h) PUBLICATION; CONFIDENTIAL INFORMATION.—

‘‘(1) PUBLICATION.—The Secretary shall promptly publish

in the Federal Register a notice of each authorization, and

each termination or revocation of an authorization under this

section, and an explanation of the reasons therefor (which

may include a summary of data or information that has been

submitted to the Secretary in an application under section

505(i) or section 520(g), even if such summary may indirectly

reveal the existence of such application).

‘‘(2) CONFIDENTIAL INFORMATION.—Nothing in this section

alters or amends section 1905 of title 18, United States Code,

or section 552(b)(4) of title 5 of such Code.

‘‘(i) ACTIONS COMMITTED TO AGENCY DISCRETION.—Actions

under the authority of this section by the Secretary or by the

Secretary of Defense are committed to agency discretion.

‘‘(j) RULES OF CONSTRUCTION.—The following applies with

respect to this section:

‘‘(1) Nothing in this section impairs the authority of the

President as Commander in Chief of the Armed Forces of

the United States under article II, section 2 of the United

States Constitution.

‘‘(2) Nothing in this section impairs the authority of the

Secretary of Defense with respect to the Department of Defense,

including the armed forces, under other provisions of Federal

law.

‘‘(3) Nothing in this section (including any exercise of

authority by a manufacturer under subsection (e)(2)) impairs

the authority of the United States to use or manage quantities

of a product that are owned or controlled by the United States

(including quantities in the stockpile maintained under section

319F–2 of the Public Health Service Act).

‘‘(k) RELATION TO OTHER PROVISIONS.—If a product is the subject of an authorization under this section, the use of such product

within the scope of the authorization shall not be considered to

constitute a clinical investigation for purposes of section 505(i),

section 520(g), or any other provision of this Act or section 351

of the Public Health Service Act.

‘‘(l) OPTION TO CARRY OUT AUTHORIZED ACTIVITIES.—Nothing

in this section provides the Secretary any authority to require

any person to carry out any activity that becomes lawful pursuant

to an authorization under this section, and no person is required

to inform the Secretary that the person will not be carrying out

such activity, except that a manufacturer of a sole-source

unapproved product authorized for emergency use shall report to

the Secretary within a reasonable period of time after the issuance

by the Secretary of such authorization if such manufacturer does

not intend to carry out any activity under the authorization. This

section only has legal effect on a person who carries out an activity

for which an authorization under this section is issued. This section

does not modify or affect activities carried out pursuant to other

provisions of this Act or section 351 of the Public Health Service

Act. Nothing in this subsection may be construed as restricting

the Secretary from imposing conditions on persons who carry out

any activity pursuant to an authorization under this section.’’.

(b) EMERGENCY USE PRODUCTS.—(1) Chapter 55 of title 10,

United States Code, is amended by inserting after section 1107

the following new section:
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‘‘§ 1107a. Emergency use products

‘‘(a) WAIVER BY THE PRESIDENT.—In the case of the administration of a product authorized for emergency use under section 564

of the Federal Food, Drug, and Cosmetic Act to members of the

armed forces, the condition described in section 564(e)(1)(A)(ii)(III)

of such Act and required under paragraph (1)(A) or (2)(A) of such

section 564(e), designed to ensure that individuals are informed

of an option to accept or refuse administration of a product, may

be waived only by the President only if the President determines,

in writing, that complying with such requirement is not feasible,

is contrary to the best interests of the members affected, or is

not in the interests of national security.

‘‘(b) PROVISION OF INFORMATION.—If the President, under subsection (a), waives the condition described in section

564(e)(1)(A)(ii)(III) of the Federal Food, Drug, and Cosmetic Act,

and if the Secretary of Defense, in consultation with the Secretary

of Health and Human Services, makes a determination that it

is not feasible based on time limitations for the information

described in section 564(e)(1)(A)(ii)(I) or (II) of such Act and required

under paragraph (1)(A) or (2)(A) of such section 564(e), to be provided to a member of the armed forces prior to the administration

of the product, such information shall be provided to such member

of the armed forces (or next-of-kin in the case of the death of

a member) to whom the product was administered as soon as

possible, but not later than 30 days, after such administration.

The authority provided for in this subsection may not be delegated.

Information concerning the administration of the product shall be

recorded in the medical record of the member.

‘‘(c) APPLICABILITY OF OTHER PROVISIONS.—In the case of an

authorization by the Secretary of Health and Human Services under

section 564(a)(1) of the Federal Food, Drug, and Cosmetic Act

based on a determination by the Secretary of Defense under section

564(b)(1)(B) of such Act, subsections (a) through (f) of section 1107

shall not apply to the use of a product that is the subject of

such authorization, within the scope of such authorization and

while such authorization is effective.’’.

(2) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 1107

the following new item:

‘‘1107a. Emergency use products.’’.

(c) ENFORCEMENT.—Section 301(d) of the Federal Food, Drug,

and Cosmetic Act (21 U.S.C. 331(d)) is amended by striking ‘‘section

404 or 505’’ and inserting ‘‘section 404, 505, or 564’’. Section 301(e)

of such Act is amended by inserting ‘‘564,’’ after ‘‘504,’’ the first

place such term appears, and by striking ‘‘or 519’’ and inserting

‘‘519, or 564’’.

(d) TERMINATION.—This section shall not be in effect (and the

law shall read as if this section were never enacted) as of the

date on which, following enactment of the Project Bioshield Act

of 2003, the President submits to Congress a notification that

the Project Bioshield Act of 2003 provides an effective emergency

use authority with respect to members of the Armed Forces.
H. R. 1588—300

TITLE XVII—NATURALIZATION AND

OTHER IMMIGRATION BENEFITS FOR

MILITARY PERSONNEL AND FAMILIES

Sec. 1701. Requirements for naturalization through service in the Armed Forces of

the United States.

Sec. 1702. Naturalization benefits for members of the Selected Reserve of the

Ready Reserve.

Sec. 1703. Extension of posthumous benefits to surviving spouses, children, and

parents.

Sec. 1704. Expedited process for granting posthumous citizenship to members of

the Armed Forces.

Sec. 1705. Effective date.

SEC. 1701. REQUIREMENTS FOR NATURALIZATION THROUGH SERVICE

IN THE ARMED FORCES OF THE UNITED STATES.

(a) REDUCTION OF PERIOD FOR REQUIRED SERVICE.—Section

328(a) of the Immigration and Nationality Act (8 U.S.C. 1439(a))

is amended by striking ‘‘three years,’’ and inserting ‘‘one year,’’.

(b) PROHIBITION ON IMPOSITION OF FEES RELATING TO NATURALIZATION.—Title III of the Immigration and Nationality Act (8

U.S.C. 1401 et seq.) is amended—

(1) in section 328(b)—

(A) in paragraph (3)—

(i) by striking ‘‘honorable. The’’ and inserting

‘‘honorable (the’’; and

(ii) by striking ‘‘discharge.’’ and inserting ‘‘discharge); and’’; and

(B) by adding at the end the following:

‘‘(4) notwithstanding any other provision of law, no fee

shall be charged or collected from the applicant for filing the

application, or for the issuance of a certificate of naturalization

upon being granted citizenship, and no clerk of any State

court shall charge or collect any fee for such services unless

the laws of the State require such charge to be made, in

which case nothing more than the portion of the fee required

to be paid to the State shall be charged or collected.’’; and

(2) in section 329(b)—

(A) in paragraph (2), by striking ‘‘and’’ at the end;

(B) in paragraph (3), by striking the period at the

end and inserting ‘‘; and’’; and

(C) by adding at the end the following:

‘‘(4) notwithstanding any other provision of law, no fee

shall be charged or collected from the applicant for filing a

petition for naturalization or for the issuance of a certificate

of naturalization upon citizenship being granted to the

applicant, and no clerk of any State court shall charge or

collect any fee for such services unless the laws of the State

require such charge to be made, in which case nothing more

than the portion of the fee required to be paid to the State

shall be charged or collected.’’. (c) REVOCATION OF CITIZENSHIP FOR SEPARATION FROM MILI- TARY SERVICE UNDER OTHER THAN HONORABLE CONDITIONS.—

(1) IN GENERAL.—Title III of the Immigration and Nationality Act (8 U.S.C. 1401 et seq.) is amended— (A) by adding at the end of section 328 the following:
H. R. 1588—301

‘‘(f) Citizenship granted pursuant to this section may be revoked

in accordance with section 340 if the person is separated from

the Armed Forces under other than honorable conditions before

the person has served honorably for a period or periods aggregating

five years. Such ground for revocation shall be in addition to any

other provided by law, including the grounds described in section

340. The fact that the naturalized person was separated from the

service under other than honorable conditions shall be proved by

a duly authenticated certification from the executive department

under which the person was serving at the time of separation.

Any period or periods of service shall be proved by duly authenticated copies of the records of the executive departments having

custody of the records of such service.’’; and

(B) by amending section 329(c) to read as follows:

‘‘(c) Citizenship granted pursuant to this section may be revoked

in accordance with section 340 if the person is separated from

the Armed Forces under other than honorable conditions before

the person has served honorably for a period or periods aggregating

five years. Such ground for revocation shall be in addition to any

other provided by law, including the grounds described in section

340. The fact that the naturalized person was separated from the

service under other than honorable conditions shall be proved by

a duly authenticated certification from the executive department

under which the person was serving at the time of separation.

Any period or periods of service shall be proved by duly authenticated copies of the records of the executive departments having

custody of the records of such service.’’.

(2) EFFECTIVE DATE.—The amendments made by paragraph

(1) shall apply to citizenship granted on or after the date

of the enactment of this Act.

(d) NATURALIZATION PROCEEDINGS OVERSEAS FOR MEMBERS OF

THE ARMED FORCES.—Notwithstanding any other provision of law,

the Secretary of Homeland Security, the Secretary of State, and

the Secretary of Defense shall ensure that any applications, interviews, filings, oaths, ceremonies, or other proceedings under title

III of the Immigration and Nationality Act (8 U.S.C. 1401 et seq.)

relating to naturalization of members of the Armed Forces are

available through United States embassies, consulates, and as practicable, United States military installations overseas.

(e) FINALIZATION OF NATURALIZATION PROCEEDINGS FOR MEMBERS OF THE ARMED FORCES.—Not later than 90 days after the

date of the enactment of this Act, the Secretary of Defense shall

prescribe a policy that facilitates the opportunity for a member

of the Armed Forces to finalize naturalization for which the member

has applied. The policy shall include, for such purpose, the following:

(1) A high priority for grant of emergency leave.

(2) A high priority for transportation on aircraft of, or

chartered by, the Armed Forces.

(f) TECHNICAL AND CONFORMING AMENDMENT.—Section

328(b)(3) of the Immigration and Nationality Act (8 U.S.C.

1439(b)(3)) is amended by striking ‘‘Attorney General’’ and inserting

‘‘Secretary of Homeland Security’’.
H. R. 1588—302

SEC. 1702. NATURALIZATION BENEFITS FOR MEMBERS OF THE

SELECTED RESERVE OF THE READY RESERVE.

Section 329(a) of the Immigration and Nationality Act (8 U.S.C.

1440(a)) is amended by inserting ‘‘as a member of the Selected

Reserve of the Ready Reserve or’’ after ‘‘has served honorably’’.

SEC. 1703. EXTENSION OF POSTHUMOUS BENEFITS TO SURVIVING

SPOUSES, CHILDREN, AND PARENTS.

(a) TREATMENT AS IMMEDIATE RELATIVES.— (1) SPOUSES.—Notwithstanding the second sentence of section 201(b)(2)(A)(i) of the Immigration and Nationality Act (8

U.S.C. 1151(b)(2)(A)(i)), in the case of an alien who was the

spouse of a citizen of the United States at the time of the

citizen’s death and was not legally separated from the citizen

at the time of the citizen’s death, if the citizen served honorably

in an active duty status in the military, air, or naval forces

of the United States and died as a result of injury or disease

incurred in or aggravated by combat, the alien (and each child

of the alien) shall be considered, for purposes of section 201(b)

of such Act, to remain an immediate relative after the date

of the citizen’s death, but only if the alien files a petition

under section 204(a)(1)(A)(ii) of such Act within 2 years after

such date and only until the date the alien remarries. For

purposes of such section 204(a)(1)(A)(ii), an alien granted relief

under the preceding sentence shall be considered an alien

spouse described in the second sentence of section 201(b)(2)(A)(i)

of such Act.

(2) CHILDREN.—

(A) IN GENERAL.—In the case of an alien who was

the child of a citizen of the United States at the time

of the citizen’s death, if the citizen served honorably in

an active duty status in the military, air, or naval forces

of the United States and died as a result of injury or

disease incurred in or aggravated by combat, the alien

shall be considered, for purposes of section 201(b) of the

Immigration and Nationality Act (8 U.S.C. 1151(b)), to

remain an immediate relative after the date of the citizen’s

death (regardless of changes in age or marital status thereafter), but only if the alien files a petition under subparagraph (B) within 2 years after such date.

(B) PETITIONS.—An alien described in subparagraph

(A) may file a petition with the Secretary of Homeland

Security for classification of the alien under section

201(b)(2)(A)(i) of the Immigration and Nationality Act (8

U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act, such

a petition shall be considered a petition filed under section

204(a)(1)(A) of such Act (8 U.S.C. 1154(a)(1)(A)).

(3) PARENTS.— (A) IN GENERAL.—In the case of an alien who was

the parent of a citizen of the United States at the time

of the citizen’s death, if the citizen served honorably in

an active duty status in the military, air, or naval forces

of the United States and died as a result of injury or

disease incurred in or aggravated by combat, the alien

shall be considered, for purposes of section 201(b) of the

Immigration and Nationality Act (8 U.S.C. 1151(b)), to

remain an immediate relative after the date of the citizen’s
H. R. 1588—303

death (regardless of changes in age or marital status thereafter), but only if the alien files a petition under subparagraph (B) within 2 years after such date.

(B) PETITIONS.—An alien described in subparagraph

(A) may file a petition with the Secretary of Homeland

Security for classification of the alien under section

201(b)(2)(A)(i) of the Immigration and Nationality Act (8

U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act, such

a petition shall be considered a petition filed under section

204(a)(1)(A) of such Act (8 U.S.C. 1154(a)(1)(A)).

(C) EXCEPTION.—Notwithstanding section

201(b)(2)(A)(i) of the Immigration and Nationality Act (8

U.S.C. 1151(b)(2)(A)(i)), for purposes of this paragraph, a

citizen described in subparagraph (A) does not have to

be 21 years of age for a parent to benefit under this

paragraph.

(b) APPLICATIONS FOR ADJUSTMENT OF STATUS BY SURVIVING

SPOUSES, CHILDREN, AND PARENTS.—

(1) IN GENERAL.—Notwithstanding subsections (a) and (c)

of section 245 of the Immigration and Nationality Act (8 U.S.C.

1255), any alien who was the spouse, child, or parent of an

alien described in paragraph (2), and who applied for adjustment of status prior to the death described in paragraph (2)(B),

may have such application adjudicated as if such death had

not occurred.

(2) ALIEN DESCRIBED.—An alien is described in this paragraph if the alien—

(A) served honorably in an active duty status in the

military, air, or naval forces of the United States;

(B) died as a result of injury or disease incurred in

or aggravated by combat; and

(C) was granted posthumous citizenship under section

329A of the Immigration and Nationality Act (8 U.S.C.

1440–1).

(c) SPOUSES AND CHILDREN OF LAWFUL PERMANENT RESIDENT

ALIENS.—

(1) TREATMENT AS IMMEDIATE RELATIVES.—

(A) IN GENERAL.—A spouse or child of an alien

described in paragraph (3) who is included in a petition

for classification as a family-sponsored immigrant under

section 203(a)(2) of the Immigration and Nationality Act

(8 U.S.C. 1153(a)(2)) that was filed by such alien, shall

be considered (if the spouse or child has not been admitted

or approved for lawful permanent residence by such date)

a valid petitioner for immediate relative status under section 201(b)(2)(A)(i) of the Immigration and Nationality Act

(8 U.S.C. 1151(b)(2)(A)(i)). Such spouse or child shall be

eligible for deferred action, advance parole, and work

authorization.

(B) PETITIONS.—An alien spouse or child described in

subparagraph (A) may file a petition with the Secretary

of Homeland Security for classification of the alien under

section 201(b)(2)(A)(i) of the Immigration and Nationality

Act (8 U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act,

such a petition shall be considered a petition filed under

section 204(a)(1)(A) of such Act (8 U.S.C. 1154(a)(1)(A)).
H. R. 1588—304

(2) SELF-PETITIONS.—Any spouse or child of an alien

described in paragraph (3) who is not a beneficiary of a petition

for classification as a family-sponsored immigrant may file a

petition for such classification under section 201(b)(2)(A)(i) of

the Immigration and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i))

with the Secretary of Homeland Security, but only if the spouse

or child files a petition within 2 years after such date. Such

spouse or child shall be eligible for deferred action, advance

parole, and work authorization.

(3) ALIEN DESCRIBED.—An alien is described in this paragraph if the alien—

(A) served honorably in an active duty status in the

military, air, or naval forces of the United States;

(B) died as a result of injury or disease incurred in

or aggravated by combat; and

(C) was granted posthumous citizenship under section

329A of the Immigration and Nationality Act (8 U.S.C.

1440–1).

(d) PARENTS OF LAWFUL PERMANENT RESIDENT ALIENS.—

(1) SELF-PETITIONS.—Any parent of an alien described in

paragraph (2) may file a petition for classification under section

201(b)(2)(A)(i) of the Immigration and Nationality Act (8 U.S.C.

1151(b)(2)(A)(i)), but only if the parent files a petition within

2 years after such date. For purposes of such Act, such petition

shall be considered a petition filed under section 204(a)(1)(A)

of such Act (8 U.S.C. 1154(a)(1)(A)). Such parent shall be

eligible for deferred action, advance parole, and work authorization.

(2) ALIEN DESCRIBED.—An alien is described in this paragraph if the alien—

(A) served honorably in an active duty status in the

military, air, or naval forces of the United States;

(B) died as a result of injury or disease incurred in

or aggravated by combat; and

(C) was granted posthumous citizenship under section

329A of the Immigration and Nationality Act (8 U.S.C.

1440–1).

(e) WAIVER OF GROUND FOR INADMISSIBILITY.—In determining

the admissibility of any alien accorded an immigration benefit under

this section for purposes of the Immigration and Nationality Act,

the ground for inadmissibility specified in section 212(a)(4) of such

Act (8 U.S.C. 1182(a)(4)) shall not apply.

(f) NATURALIZATION FOR SURVIVING SPOUSES.—

(1) IN GENERAL.—Section 319(d) of the Immigration and

Nationality Act (8 U.S.C. 1430(d)) is amended by adding at

the end the following: ‘‘For purposes of this subsection, the

terms ‘United States citizen’ and ‘citizen spouse’ include a person granted posthumous citizenship under section 329A.’’. (2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply with respect to persons granted posthumous

citizenship under section 329A of the Immigration and Nationality Act (8 U.S.C. 1440–1) due to death on or after September

11, 2001.

(g) BENEFITS TO SURVIVORS; TECHNICAL AMENDMENT.—Section

329A of the Immigration and Nationality Act (8 U.S.C. 1440–1)

is amended— (1) by striking subsection (e); and
H. R. 1588—305

(2) by striking ‘‘Attorney General’’ each place that term

appears and inserting ‘‘Secretary of Homeland Security’’.

(h) TECHNICAL AND CONFORMING AMENDMENTS.—Section 319(d)

of the Immigration and Nationality Act (8 U.S.C. 1430(d)) is

amended—

(1) by inserting ‘‘, child, or parent’’ after ‘‘surviving spouse’’;

(2) by inserting ‘‘, parent, or child’’ after ‘‘whose citizen

spouse’’; and

(3) by striking ‘‘who was living’’ and inserting ‘‘who, in

the case of a surviving spouse, was living’’.

SEC. 1704. EXPEDITED PROCESS FOR GRANTING POSTHUMOUS CITIZENSHIP TO MEMBERS OF THE ARMED FORCES.

Section 329A of the Immigration and Nationality Act (8 U.S.C.

1440–1) is amended—

(1) by striking subsection (c) and inserting the following:

‘‘(c) REQUESTS FOR POSTHUMOUS CITIZENSHIP.—

‘‘(1) IN GENERAL.—A request for the granting of posthumous

citizenship to a person described in subsection (b) may be

filed on behalf of that person—

‘‘(A) upon locating the next-of-kin, and if so requested

by the next-of-kin, by the Secretary of Defense or the

Secretary’s designee with the Bureau of Citizenship and

Immigration Services in the Department of Homeland Security immediately upon the death of that person; or

‘‘(B) by the next-of-kin.

‘‘(2) APPROVAL.—The Director of the Bureau of Citizenship

and Immigration Services shall approve a request for posthumous citizenship filed by the next-of-kin in accordance with

paragraph (1)(B) if—

‘‘(A) the request is filed not later than 2 years after—

‘‘(i) the date of enactment of this section; or

‘‘(ii) the date of the person’s death;

whichever date is later;

‘‘(B) the request is accompanied by a duly authenticated certificate from the executive department under

which the person served which states that the person satisfied the requirements of paragraphs (1) and (2) of subsection (b); and

‘‘(C) the Director finds that the person satisfied the

requirement of subsection (b)(3).’’; and

(2) by striking subsection (d) and inserting the following:

‘‘(d) DOCUMENTATION OF POSTHUMOUS CITIZENSHIP.—If the

Director of the Bureau of Citizenship and Immigration Services

approves the request referred to in subsection (c), the Director

shall send to the next-of-kin of the person who is granted citizenship, a suitable document which states that the United States

considers the person to have been a citizen of the United States

at the time of the person’s death.’’.

SEC. 1705. EFFECTIVE DATE.

(a) IN GENERAL.—Except as provided in subsection (b), this

title and the amendments made by this title shall take effect

as if enacted on September 11, 2001.

(b) EXCEPTION.—The amendments made by sections 1701(b)

(relating to naturalization fees) and 1701(d) (relating to naturalization proceedings overseas) shall take effect on October 1, 2004.
H. R. 1588—306

DIVISION B—MILITARY CONSTRUCTION

AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ‘‘Military Construction

Authorization Act for Fiscal Year 2004’’.

TITLE XXI—ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

Sec. 2105. Termination or modification of authority to carry out certain fiscal year

2003 projects.

Sec. 2106. Modification of authority to carry out certain fiscal year 2002 projects.

Sec. 2107. Termination or modification of authority to carry out certain fiscal year

2001 projects.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2104(a)(1), the Secretary of the Army may acquire real property

and carry out military construction projects for the installations

and locations inside the United States, and in the amounts, set

forth in the following table:

Army: Inside the United States

State Installation or location Amount

Alabama ............................. Redstone Arsenal ......................... $5,500,000

Alaska ................................. Fort Richardson ........................... $2,500,000

Fort Wainwright .......................... $138,800,000

Colorado ............................. Fort Carson .................................. $2,150,000

Georgia ............................... Fort Benning ................................ $34,500,000

Fort Gordon ................................. $4,350,000

Fort Stewart/Hunter Army Air

Field .......................................... $113,500,000

Hawaii ................................ Helemano Military Reservation $1,400,000

Schofield Barracks ...................... $128,100,000

Kansas ................................ Fort Leavenworth ........................ $115,000,000

Fort Riley ..................................... $40,000,000

Kentucky ............................ Fort Knox ..................................... $13,500,000

Louisiana ............................ Fort Polk ...................................... $72,000,000

Maryland ............................ Fort Meade ................................... $9,600,000

Massachusetts ................... Soldier Systems Center, Natick $5,500,000

New Jersey ......................... Naval Air Engineering Center,

Lakehurst ................................. $2,250,000

Picatinny Arsenal ........................ $8,000,000

New York ........................... Fort Drum .................................... $130,700,000

North Carolina ................... Fort Bragg .................................... $125,400,000

Oklahoma ........................... Fort Sill ........................................ $5,500,000

Texas .................................. Fort Bliss ..................................... $5,400,000

Fort Hood ..................................... $49,800,000

Virginia .............................. Fort Belvoir .................................. $7,000,000

Fort Lee ........................................ $3,850,000

Fort Myer ..................................... $9,000,000
H. R. 1588—307

Army: Inside the United States—Continued

State Installation or location Amount

Washington ........................ Fort Lewis .................................... $3,900,000

Total ...................................... $1,037,200,000

(b) OUTSIDE THE UNITED STATES.—Subject to subsection (c),

using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(2), the Secretary of the Army may

acquire real property and carry out military construction projects

for the installations and locations outside the United States, and

in the amounts, set forth in the following table:

Army: Outside the United States

Country Installation or location Amount

Germany ............................... Grafenwoehr .................................. $76,000,000

Vilseck ............................................ $31,000,000

Italy ...................................... Aviano Air Base ............................. $28,500,000

Livorno ........................................... $22,000,000

Korea .................................... Camp Humphreys ......................... $65,000,000

Kwajalein ............................. Kwajalein ....................................... $9,400,000

Total ............................................... $231,900,000

SEC. 2102. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section

2104(a)(5)(A), the Secretary of the Army may construct or acquire

family housing units (including land acquisition and supporting

facilities) at the installations, for the purposes, and in the amounts

set forth in the following table:

Army: Family Housing

State or Country Installation or location Purpose Amount

Alaska ......................... Fort Wainwright ............. 140 Units .... $64,000,000

Arizona ........................ Fort Huachuca ................ 220 Units .... $41,000,000

Kansas ........................ Fort Riley ........................ 62 Units .... $16,700,000

Kentucky ..................... Fort Knox ........................ 178 Units .... $41,000,000

New Mexico ................ White Sands Missile

Range ........................... 58 Units .... $14,600,000

Oklahoma ................... Fort Sill ........................... 120 Units .... $25,373,000

Virginia ....................... Fort Lee ........................... 90 Units .... $18,000,000

Total: .... $220,673,000

(b) PLANNING AND DESIGN.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2104(a)(5)(A), the Secretary of the Army may carry out architectural

and engineering services and construction design activities with

respect to the construction or improvement of family housing units

in an amount not to exceed $34,488,000.
H. R. 1588—308

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and

using amounts appropriated pursuant to the authorization of appropriations in section 2104(a)(5)(A), the Secretary of the Army may

improve existing military family housing units in an amount not

to exceed $130,430,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2003, for

military construction, land acquisition, and military family housing

functions of the Department of the Army in the total amount

of $2,874,856,000, as follows:

(1) For military construction projects inside the United

States authorized by section 2101(a), $825,200,000.

(2) For military construction projects outside the United

States authorized by section 2101(b), $213,000,000.

(3) For unspecified minor construction projects authorized

by section 2805 of title 10, United States Code, $32,606,000.

(4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$126,833,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $383,591,000.

(B) For support of military family housing (including

the functions described in section 2833 of title 10, United

States Code), $1,043,026,000.

(6) For the construction of phase 3 of Saddle Access Road,

Pohakoula Training Facility, Hawaii, authorized by section

2101(a) of the Military Construction Authorization Act for

Fiscal Year 2001 (division B of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398; 114 Stat. 1654A–389)), as

amended by section 2107 of this Act, $17,000,000.

(7) For the construction of phase 4 of a barracks complex,

Butner Road, at Fort Bragg, North Carolina, authorized by

section 2101(a) of the Military Construction Authorization Act

for Fiscal Year 2001 (division B of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001, as enacted

into law by Public Law 106–398; 114 Stat. 1654A–389), as

amended by section 2107 of this Act, $38,000,000.

(8) For the construction of phase 3 of a barracks complex,

D Street, at Fort Richardson, Alaska, authorized by section

2101(a) of the Military Construction Authorization Act for

Fiscal Year 2002 (division B of Public Law 107–107; 115 Stat.

1280), as amended by section 2106 of this Act, $33,000,000.

(9) For the construction of phase 3 of a barracks complex,

17th and B Streets, at Fort Lewis, Washington, authorized

by section 2101(a) of the Military Construction Authorization

Act for Fiscal Year 2002 (division B of Public Law 107–107;

115 Stat. 1280), $48,000,000.

(10) For the construction of phase 2 of a barracks complex,

Capron Road, at Schofield Barracks, Hawaii, authorized by

section 2101(a) of the Military Construction Authorization Act
H. R. 1588—309

for Fiscal Year 2003 (division B of Public Law 107–314; 116

Stat. 2681), $49,000,000.

(11) For the construction of phase 2 of a combined arms

collective training facility at Fort Riley, Kansas, authorized

by section 2101(a) of the Military Construction Authorization

Act for Fiscal Year 2003 (division B of Public Law 107–314;

116 Stat. 2681), as amended by section 2105 of this Act,

$13,600,000.

(12) For the construction of phase 2 of a barracks complex,

Range Road, at Fort Campbell, Kentucky, authorized by section

2101(a) of the Military Construction Authorization Act for

Fiscal Year 2003 (division B of Public Law 107–314; 116 Stat.

2681), $49,000,000.

(13) For the construction of phase 2 of a consolidated

maintenance complex at Fort Sill, Oklahoma, authorized by

section 2101(a) of the Military Construction Authorization Act

for Fiscal Year 2003 (division B of Public Law 107–314; 116

Stat. 2681), $13,000,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853

of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section

2101 of this Act may not exceed the sum of the following:

(1) The total amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a).

(2) $32,000,000 (the balance of the amount authorized

under section 2101(a) for construction of a barracks, Fort

Stewart/Hunter Army Airfield, Georgia).

(3) $87,000,000 (the balance of the amount authorized

under section 2101(a) for construction of the Lewis and Clark

Instructional Facility, Fort Leavenworth, Kansas).

(4) $43,000,000 (the balance of the amount authorized

under section 2101(a) for construction of a barracks complex,

Wheeler Army Airfield, Fort Drum, New York).

(5) $50,000,000 (the balance of the amount authorized

under section 2101(a) for construction of a barracks complex,

Bastogne Drive, Fort Bragg, North Carolina).

(6) $18,900,000 (the balance of the amount authorized

under section 2101(b) for construction of a barracks complex,

Vilseck, Germany).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (13) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $10,000,000, which represents corrections

to Department of the Army estimates for military family housing

support.

SEC. 2105. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY

OUT CERTAIN FISCAL YEAR 2003 PROJECTS.

(a) MODIFICATION OF INSIDE THE UNITED STATES PROJECT.—

The table in subsection (a) of section 2101 of the Military Construction Authorization Act for Fiscal Year 2003 (division B of Public

Law 107–314; 116 Stat. 2681) is amended—

(1) in the item relating to Fort Riley, Kansas, by striking

‘‘$81,095,000’’ in the amount column and inserting

‘‘$81,495,000’’; and
H. R. 1588—310

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$1,156,167,000’’.

(b) TERMINATION OF OUTSIDE THE UNITED STATES PROJECTS.—

(1) The table in subsection (b) of such section is amended—

(A) by striking the item relating to Area Support Group,

Bamberg, Germany;

(B) by striking the item relating to Coleman Barracks,

Germany;

(C) by striking the item relating to Darmstadt, Germany;

(D) by striking the item relating to Mannheim, Germany;

(E) by striking the item relating to Schweinfurt, Germany;

(F) by striking the item relating to Camp Castle, Korea;

(G) by striking the item relating to Camp Hovey, Korea;

(H) by striking the item relating to K16 Airfield, Korea;

and

(I) by striking the amount identified as the total in the

amount column and inserting ‘‘$216,266,000’’.

(2) The authorization to carry out a military construction project

at Camp Bonifas, Korea, provided by section 130 of the Military

Construction Appropriation Act, 2003 (Public Law 107–249; 116

Stat. 1586), using funds originally appropriated for a military

construction project at Camp Kyle, Korea, is hereby rescinded.

(c) TERMINATION OF FAMILY HOUSING PROJECT OUTSIDE THE

UNITED STATES.—The table in section 2102(a) of the Military

Construction Authorization Act for Fiscal Year 2003 (116 Stat.

2683) is amended—

(1) by striking the item relating to Yongsan, Korea; and

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$23,852,000’’.

(d) IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.—Section 2103 of that Act (116 Stat. 2683) is amended by striking

‘‘$239,751,000’’ and inserting ‘‘$178,400,000’’.

(e) CONFORMING AMENDMENTS.—Section 2104 of that Act (116

Stat. 2683) is amended—

(1) subsection (a)—

(A) in the matter preceding paragraph (1), by striking

‘‘$3,104,176,000’’ and inserting ‘‘$2,901,875,000’’;

(B) in paragraph (2), by striking ‘‘$354,116,000’’ and

inserting ‘‘$216,266,000’’; and

(C) in paragraph (6)(A), by striking ‘‘$282,356,000’’ and

inserting ‘‘$217,905,000’’; and

(2) in subsection (b)(4), by striking ‘‘$13,200,000’’ and

inserting ‘‘$13,600,000’’.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN

FISCAL YEAR 2002 PROJECTS.

(a) MODIFICATION OF INSIDE THE UNITED STATES PROJECT.—

The table in section 2101(a) of the Military Construction Authorization Act for Fiscal Year 2002 (division B of Public Law 107–107;

115 Stat. 1281), as amended by section 2105 of the Military

Construction Authorization Act for Fiscal Year 2003 (division B

of Public Law 107–314; 116 Stat. 2685), is further amended—

(1) in the item relating to Fort Richardson, Alaska, by

striking ‘‘$115,000,000’’ in the amount column and inserting

‘‘$117,000,000’’; and

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$1,364,750,000’’.
H. R. 1588—311

(b) MODIFICATION OF OUTSIDE THE UNITED STATES PROJECTS.—

The table in section 2101(b) of the Military Construction Authorization Act for Fiscal Year 2002 (115 Stat. 1282) is amended—

(1) in the item relating to Camp Hovey, Korea, by striking

‘‘$35,750,000’’ in the amount column and inserting

‘‘$24,980,000’’;

(2) in the item relating to Camp Stanley, Korea, by striking

‘‘$28,000,000’’ in the amount column and inserting

‘‘$14,770,000’’; and

(3) by striking the amount identified as the total in the

amount column and inserting ‘‘$236,343,000’’.

(c) CONFORMING AMENDMENTS.—Section 2104 of that Act (115

Stat. 1283) is amended—

(1) in subsection (a)—

(A) in the matter preceding paragraph (1), by striking

‘‘$3,155,594,000’’ and inserting ‘‘$3,131,594,000’’; and

(B) in paragraph (2), by striking ‘‘$260,343,000’’ and

inserting ‘‘$236,343,000’’; and

(2) in subsection (b)(2), by striking ‘‘$52,000,000’’ and

inserting ‘‘$54,000,000’’.

SEC. 2107. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY

OUT CERTAIN FISCAL YEAR 2001 PROJECTS.

(a) MODIFICATION OF INSIDE THE UNITED STATES PROJECTS.—

The table in section 2101(a) of the Military Construction Authorization Act for Fiscal Year 2001 (division B of the Floyd D. Spence

National Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398; 114 Stat. 1654A–389)), as amended

by section 2105(a) of the Military Construction Authorization Act

for Fiscal Year 2002 (division B of Public Law 107–107; 115 Stat.

1285), is further amended—

(1) in the item relating to Pohakoula Training Facility,

Hawaii, by striking ‘‘$32,000,000’’ in the amount column and

inserting ‘‘$42,000,000’’;

(2) in the item relating to Fort Bragg, North Carolina,

by striking ‘‘$222,200,000’’ in the amount column and inserting

‘‘$255,200,000’’; and

(3) by striking the amount identified as the total in the

amount column and inserting ‘‘$669,374,000’’.

(b) TERMINATION OF OUTSIDE THE UNITED STATES PROJECT.—

The table in section 2101(b) of the Military Construction Authorization Act for Fiscal Year 2001 (114 Stat. 1654A–390), as amended

by section 2106 of the Military Construction Authorization Act

for Fiscal Year 2003 (division B of Public Law 107–314; 116 Stat.

2685), is further amended—

(1) by striking the item relating to Camp Stanley, Korea;

and

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$100,350,000’’.

(c) CONFORMING AMENDMENTS.—Section 2104 of the Military

Construction Authorization Act for Fiscal Year 2001 (114 Stat.

1654A–391), as amended by section 2105(b) of the Military

Construction Authorization Act for Fiscal Year 2002 (division B

of Public Law 107–107; 115 Stat. 1285), is further amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by striking ‘‘$1,935,744,000’’ and inserting ‘‘$1,916,244,000’’; and
H. R. 1588—312

(B) in paragraph (2), by striking ‘‘$119,850,000’’ and

inserting ‘‘$100,350,000’’; and

(2) in subsection (b)—

(A) in paragraph (5), by striking ‘‘$104,000,000’’ and

inserting ‘‘$137,000,000’’; and

(B) in paragraph (7), by striking ‘‘$20,000,000’’ and

inserting ‘‘$30,000,000’’.

TITLE XXII—NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.

Sec. 2205. Termination of authority to carry out certain fiscal year 2003 projects.

Sec. 2206. Termination or modification of authority to carry out certain fiscal year

2002 projects.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2204(a)(1), the Secretary of the Navy may acquire real property

and carry out military construction projects for the installations

and locations inside the United States, and in the amounts, set

forth in the following table:

Navy: Inside the United States

State Installation or location Amount

Arizona ......................... Marine Corps Air Station, Yuma ....... $22,230,000

California ..................... Marine Corps Air-Ground Task Force

Training Center, Twentynine

Palms ................................................ $42,090,000

Marine Corps Air Station, Miramar .. $7,640,000

Marine Corps Base, Camp Pendleton $73,580,000

Naval Air Facility, San Clemente Island ................................................... $18,940,000

Naval Air Station, Lemoore ................ $34,510,000

Naval Air Station, North Island ......... $49,240,000

Naval Air Warfare Center, Point

Mugu, San Nicholas Island ............. $6,150,000

Naval Postgraduate School, Monterey $42,560,000

Naval Station, San Diego .................... $49,710,000

Connecticut .................. Naval Submarine Base, New London $3,120,000

District of Columbia .... Marine Corps Barracks ....................... $1,550,000

Florida .......................... Blount Island (Jacksonville) ............... $115,711,000

Naval Air Station, Jacksonville .......... $9,190,000

Naval Air Station, Whiting Field,

Milton ................................................ $4,830,000

Naval Surface Warfare Center,

Coastal Systems Station, Panama

City .................................................... $9,550,000

Georgia ......................... Strategic Weapons Facility Atlantic,

Kings Bay ......................................... $11,510,000

Hawaii .......................... Fleet and Industrial Supply Center,

Pearl Harbor ..................................... $32,180,000

Naval Magazine, Lualualei ................. $6,320,000

Naval Shipyard, Pearl Harbor ............ $7,010,000

Illinois .......................... Naval Training Center, Great Lakes $137,120,000
H. R. 1588—313

Navy: Inside the United States—Continued

State Installation or location Amount

Indiana ......................... Naval Surface Warfare Center, Crane $11,400,000

Maryland ..................... Naval Air Warfare Center, Patuxent

River .................................................. $28,270,000

Naval Surface Warfare Center, Indian Head ......................................... $14,850,000

Mississippi ................... Naval Air Station, Meridian ............... $4,570,000

New Jersey .................. Naval Air Warfare Center, Lakehurst $20,681,000

Naval Weapons Station, Earle ........... $123,720,000

North Carolina ............ Marine Corps Air Station, New River $6,240,000

Marine Corps Base, Camp Lejeune .... $29,450,000

Rhode Island ................ Naval Station, Newport ...................... $18,690,000

Naval Undersea Warfare Center,

Newport ............................................ $10,890,000

South Carolina ............ Naval Weapons Station, Charleston .. $2,350,000

Texas ............................ Naval Air Station, Corpus Christi ..... $5,400,000

Naval Station, Ingleside ...................... $7,070,000

Virginia ........................ Henderson Hall, Arlington .................. $1,970,000

Marine Corps Combat Development

Command, Quantico ........................ $18,120,000

Naval Air Station, Oceana .................. $10,000,000

Naval Amphibious Base, Little Creek $3,810,000

Naval Space Command Center, Dahlgren ................................................... $24,020,000

Naval Station, Norfolk ........................ $182,240,000

Norfolk Naval Shipyard, Portsmouth $17,770,000

Washington .................. Naval Air Station, Whidbey Island .... $4,650,000

Naval Magazine, Indian Island .......... $2,240,000

Naval Shipyard, Puget Sound ............ $6,020,000

Naval Submarine Base, Bangor ......... $33,820,000

Strategic Weapons Facility Pacific,

Bangor ............................................... $6,530,000

Various Locations ........ Various Locations, CONUS ................ $56,360,000

Total .............................................. $1,335,872,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2204(a)(2), the Secretary of the Navy may acquire real property

and carry out military construction projects for the locations outside

the United States, and in the amounts, set forth in the following

table:

Navy: Outside the United States

Country Installation or location Amount

Bahrain ........................ Naval Support Activity, Bahrain ......... $18,030,000

Guam ............................ Commander, United States Naval

Forces, Marianas ................................ $1,700,000

Italy .............................. Naval Air Station, Sigonella ................. $34,070,000

Naval Support Activity, La Maddalena $39,020,000

Total ................................................ $92,820,000

SEC. 2202. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section

2204(a)(5)(A), the Secretary of the Navy may construct or acquire
H. R. 1588—314

family housing units (including land acquisition and supporting

facilities) at the installations, for the purposes, and in the amounts

set forth in the following table:

Navy: Family Housing

State or Country Installation or location Purpose Amount

California .................... Naval Air Station,

Lemoore ....................... 187 Units .... $41,585,000

Florida ......................... Naval Air Station, Pensacola ........................... 25 Units ...... $4,447,000

North Carolina ........... Marine Corps Air Station, Cherry Point ....... 339 Units .... $42,803,000

Marine Corps Base,

Camp Lejeune ............. 519 Units .... $68,531,000

Total ..... $157,366,000

(b) PLANNING AND DESIGN.—Using amounts appropriated

pursuant to the authorization of appropriation in section

2204(a)(5)(A), the Secretary of the Navy may carry out architectural

and engineering services and construction design activities with

respect to the construction or improvement of military family

housing units in an amount not to exceed $8,381,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and

using amounts appropriated pursuant to the authorization of appropriations in section 2204(a)(5)(A), the Secretary of the Navy may

improve existing military family housing units in an amount not

to exceed $20,446,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2003, for

military construction, land acquisition, and military family housing

functions of the Department of the Navy in the total amount of

$2,267,729,000, as follows:

(1) For military construction projects inside the United

States authorized by section 2201(a), $1,001,092,000.

(2) For military construction projects outside the United

States authorized by section 2201(b), $92,820,000.

(3) For unspecified minor construction projects authorized

by section 2805 of title 10, United States Code, $14,585,000.

(4) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$71,001,000.

(5) For military family housing functions:

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $184,193,000.

(B) For support of military family housing (including

functions described in section 2833 of title 10, United States

Code), $845,078,000.

(6) For construction of a bachelors enlisted quarters shipboard ashore at Naval Shipyard Norfolk, Virginia, authorized

by section 2201(a) of the Military Construction Authorization
H. R. 1588—315

Act for Fiscal Year 2003 (division B of Public Law 107–314;

116 Stat. 2687), $46,730,000.

(7) For construction of phase III of a combined propulsion

and explosives lab at Naval Air Warfare Center, China Lake,

California, authorized by section 2201(a) of the Military

Construction Authorization Act for Fiscal Year 2002 (division

B of Public Law 107–107; 115 Stat. 1289), as amended by

section 2206 of this Act, $12,230,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853

of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section

2201 of this Act may not exceed the sum of the following:

(1) The total amount authorized to be appropriated under

paragraphs (1) and (2) of subsection (a).

(2) $25,690,000 (the balance of the amount authorized

under section 2101(a) for construction of a tertiary sewage

treatment facility, Marine Corp Base, Camp Pendleton, California).

(3) $58,190,000 (the balance of the amount authorized

under section 2101(a) for construction of a battle station

training facility, Naval Training Center, Great Lakes, Illinois).

(4) $96,980,000 (the balance of the amount authorized

under section 2101(a) for construction of a general purpose

berthing pier, Naval Weapons Station Earle, New Jersey).

(5) $118,170,000 (the balance of the amount authorized

under section 2101(a) for construction of the Pier 11 replacement, Naval Station, Norfolk, Virginia).

(6) $28,750,000 (the balance of the amount authorized

under section 2101(a) for construction of outlying landing field

facilities, various locations in the continental United States).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (7) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $10,000,000, which represents corrections

to Department of the Navy estimates for military family housing

support.

SEC. 2205. TERMINATION OF AUTHORITY TO CARRY OUT CERTAIN

FISCAL YEAR 2003 PROJECTS.

(a) TERMINATION OF INSIDE THE UNITED STATES PROJECTS.—

The table in subsection (a) of section 2201 of the Military Construction Authorization Act for Fiscal Year 2003 (division B of Public

Law 107–314; 116 Stat. 2686) is amended—

(1) by striking the item relating to Naval Air Warfare

Center, China Lake, California;

(2) by striking the item relating to Marine Corps Air Station, Cherry Point, North Carolina; and

(3) by striking the amount identified as the total in the

amount column and inserting ‘‘$1,068,223,000’’.

(b) TERMINATION OF OUTSIDE THE UNITED STATES PROJECTS.—

The table in subsection (b) of such section is amended—

(1) by striking the item relating to Naval Support Activity,

Joint Headquarters Command, Larissa, Greece;

(2) by striking the item relating to Naval Air Station,

Keflavik, Iceland; and
H. R. 1588—316

(3) by striking the amount identified as the total in the

amount column and inserting ‘‘$129,100,000’’.

(c) TERMINATION OF MILITARY FAMILY HOUSING PROJECT.—The

table in section 2202(a) of that Act (116 Stat. 2688) is amended—

(1) by striking the item relating to the Joint Maritime

Facility, St. Mawgan, United Kingdom; and

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$210,195,000’’.

(d) CONFORMING AMENDMENTS.—Section 2204 of that Act (116

Stat. 2688) is amended—

(1) in subsection (a)—

(A) in the matter preceding paragraph (1), by striking

‘‘$2,576,381,000’’ and inserting ‘‘$2,530,097,000’’;

(B) in paragraph (1), by striking ‘‘$1,025,598,000’’ and

inserting ‘‘$1,009,458,000’’;

(C) in paragraph (2), by striking ‘‘$148,250,000’’ and

inserting ‘‘$126,530,000’’;

(D) in paragraph (5)(A), by striking ‘‘$379,468,000’’ and

inserting ‘‘$360,944,000’’; and

(E) by adding at the end the following new paragraph:

‘‘(7) For construction of phase II of a combined propulsion

and explosives lab at Naval Air Warfare Center, China Lake,

California, authorized by section 2201(a) of the Military

Construction Authorization Act for Fiscal Year 2002 (division

B of Public Law 107–107; 115 Stat. 1289), as amended by

section 2206 of the Military Construction Authorization Act

for Fiscal Year 2004, $10,100,000.’’; and

(2) in subsection (c), by striking ‘‘through (6)’’ and inserting

‘‘through (7)’’.

SEC. 2206. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY

OUT CERTAIN FISCAL YEAR 2002 PROJECTS.

(a) MODIFICATION OF INSIDE THE UNITED STATES PROJECT.—

The table in section 2201(a) of the Military Construction Authorization Act for Fiscal Year 2002 (division B of Public Law 107–107;

115 Stat. 1286), as amended by section 2205 of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003 (Public

Law 108–314; 116 Stat. 2689), is amended—

(1) in the item relating to Naval Air Warfare Center, China

Lake, California, by striking ‘‘$30,200,000’’ in the amount

column and inserting ‘‘$32,391,000’’; and

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$1,061,221,000’’.

(b) TERMINATION OF OUTSIDE THE UNITED STATES PROJECT.—

The table in section 2201(b) of the Military Construction Authorization Act for Fiscal Year 2002 (division B of Public Law 107–107;

115 Stat. 1287) is amended—

(1) by striking the item relating to Naval Support Activity,

Joint Headquarters Command, Larissa, Greece; and

(2) by striking the amount identified as the total in the

amount column and inserting ‘‘$35,430,000’’.

(c) CONFORMING AMENDMENTS.—Section 2204 of that Act (115

Stat. 1288) is amended—

(1) in subsection (a)—

(A) in the matter preceding paragraph (1), by striking

‘‘$2,366,742,000’’ and inserting ‘‘$2,354,502,000’’; and
H. R. 1588—317

(B) in paragraph (2), by striking ‘‘$47,670,000’’ and

inserting ‘‘$35,430,000’’; and

(2) in subsection (b)(3), by striking ‘‘$20,100,000’’ and

inserting ‘‘$22,291,000’’.

TITLE XXIII—AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition projects.

Sec. 2302. Family housing.

Sec. 2303. Improvements to military family housing units.

Sec. 2304. Authorization of appropriations, Air Force.

Sec. 2305. Termination or modification of authority to carry out certain fiscal year

2003 projects.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND

ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2304(a)(1), the Secretary of the Air Force may acquire real property

and carry out military construction projects for the installations

and locations inside the United States, and in the amounts, set

forth in the following table:

Air Force: Inside the United States

State Installation or location Amount

Alabama ............................... Maxwell Air Force Base ................ $26,000,000

Alaska ................................... Eielson Air Force Base .................. $49,061,000

Elmendorf Air Force Base ............ $2,000,000

Arizona ................................. Davis-Monthan Air Force Base .... $10,062,000

Luke Air Force Base ..................... $14,300,000

Arkansas .............................. Little Rock Air Force Base ........... $3,695,000

California ............................. Beale Air Force Base ..................... $22,750,000

Edwards Air Force Base ............... $26,744,000

Los Angeles Air Force Base .......... $5,000,000

Colorado ............................... Buckley Air Force Base ................. $7,019,000

Peterson Air Force Base ............... $10,200,000

Florida .................................. Hurlburt Field ............................... $27,200,000

Tyndall Air Force Base ................. $15,820,000

Georgia ................................. Robins Air Force Base ................... $37,164,000

Hawaii .................................. Hickam Air Force Base ................. $80,096,000

Idaho ..................................... Mountain Home Air Force Base ... $15,245,000

Illinois .................................. Scott Air Force Base ..................... $1,900,000

Mississippi ........................... Columbus Air Force Base ............. $7,700,000

Keesler Air Force Base ................. $2,900,000

Missouri ................................ Whiteman Air Force Base ............ $11,600,000

Nevada ................................. Nellis Air Force Base .................... $11,800,000

New Jersey ........................... McGuire Air Force Base ............... $11,861,000

New Mexico .......................... Cannon Air Force Base ................. $9,000,000

Kirtland Air Force Base ................ $11,247,000

Tularosa Radar Test Site .............. $3,600,000

North Carolina ..................... Pope Air Force Base ...................... $24,499,000

Seymour Johnson Air Force Base $22,622,000

North Dakota ....................... Minot Air Force Base .................... $12,690,000

Ohio ...................................... Wright-Patterson Air Force Base $21,100,000

Oklahoma ............................. Altus Air Force Base ..................... $1,167,000

Tinker Air Force Base ................... $19,444,000

Vance Air Force Base .................... $15,000,000

South Carolina ..................... Charleston Air Force Base ............ $9,042,000

Shaw Air Force Base ..................... $8,500,000
H. R. 1588—318

Air Force: Inside the United States—Continued

State Installation or location Amount

South Dakota ....................... Ellsworth Air Force Base .............. $9,300,000

Texas .................................... Goodfellow Air Force Base ............ $20,335,000

Lackland Air Force Base .............. $57,360,000

Laughlin Air Force Base ............... $12,400,000

Randolph Air Force Base .............. $13,600,000

Sheppard Air Force Base .............. $38,167,000

Utah ...................................... Hill Air Force Base ....................... $21,748,000

Virginia ................................ Langley Air Force Base ................. $25,474,000

Washington .......................... McChord Air Force Base ............... $19,000,000

Total ............................................... $775,412,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2304(a)(2), the Secretary of the Air Force may acquire real property

and carry out military construction projects for the installations

and locations outside the United States, and in the amounts, set

forth in the following table:

Air Force: Outside the United States

Country Installation or location Amount

Germany ............................... Ramstein Air Base ........................ $35,616,000

Spangdahlem Air Base ................. $5,411,000

Italy ...................................... Aviano Air Base ............................. $14,025,000

Korea .................................... Kunsan Air Base ........................... $7,059,000

Osan Air Base ................................ $16,638,000

Portugal ................................ Lajes Field, Azores ........................ $4,086,000

United Kingdom .................. Royal Air Force, Lakenheath ....... $42,487,000

Royal Air Force, Mildenhall ......... $10,558,000

Wake Island ......................... Wake Island ................................... $24,000,000

Total ........................................ $159,880,000

(c) UNSPECIFIED WORLDWIDE.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2304(a)(3), the Secretary of the Air Force may acquire real property

and carry out military construction projects for the installation

and location, and in the amount, set forth in the following table:

Air Force: Unspecified Worldwide

Location Installation or location Amount

Unspecified Worldwide ....... Classified Location ........................ $29,501,000

Total ........................................ $29,501,000

SEC. 2302. FAMILY HOUSING.

(a) CONSTRUCTION AND ACQUISITION.—Using amounts appropriated pursuant to the authorization of appropriations in section

2304(a)(6)(A), the Secretary of the Air Force may construct or

acquire family housing units (including land acquisition and supporting facilities) at the installations, for the purposes, and in

the amounts set forth in the following table:
H. R. 1588—319

Air Force: Family Housing

State or Country Installation or location Purpose Amount

Arizona ........................ Davis-Monthan Air

Force Base ................... 93 Units .... $19,357,000

California .................... Travis Air Force Base .... 56 Units .... $12,723,000

Delaware ..................... Dover Air Force Base ..... 112 Units .... $19,601,000

Florida ......................... Eglin Air Force Base ...... 279 Units .... $32,166,000

Idaho ........................... Mountain Home Air

Force Base ................... 186 Units .... $37,126,000

Maryland .................... Andrews Air Force Base 50 Units .... $20,233,000

Missouri ...................... Whiteman Air Force

Base ............................. 100 Units .... $18,221,000

Montana ...................... Malmstrom Air Force

Base ............................. 94 Units .... $19,368,000

North Carolina ........... Seymour Johnson Air

Force Base ................... 138 Units .... $18,336,000

North Dakota ............. Grand Forks Air Force

Base ............................. 144 Units .... $29,550,000

Minot Air Force Base ..... 200 Units .... $41,117,000

South Dakota ............. Ellsworth Air Force Base 75 Units .... $16,240,000

Texas ........................... Dyess Air Force Base ..... 116 Units .... $19,973,000

Randolph Air Force Base 96 Units .... $13,754,000

Korea ........................... Osan Air Base ................. 111 Units .... $44,765,000

Portugal ...................... Lajes Field, Azores ......... 42 Units .... $13,428,000

United Kingdom ......... Royal Air Force,

Lakenheath ................. 89 Units .... $23,640,000

Total ..... $399,598,000

(b) PLANNING AND DESIGN.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2304(a)(6)(A), the Secretary of the Air Force may carry out architectural and engineering services and construction design activities

with respect to the construction or improvement of military family

housing units in an amount not to exceed $33,488,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and

using amounts appropriated pursuant to the authorization of appropriations in section 2304(a)(6)(A), the Secretary of the Air Force

may improve existing military family housing units in an amount

not to exceed $227,979,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2003, for

military construction, land acquisition, and military family housing

functions of the Department of the Air Force in the total amount

of $2,550,890,000, as follows:

(1) For military construction projects inside the United

States authorized by section 2301(a), $766,932,000.

(2) For military construction projects outside the United

States authorized by section 2301(b), $159,880,000.

(3) For military construction projects at unspecified worldwide locations authorized by section 2301(c), $28,981,000.

(4) For unspecified minor construction projects authorized

by section 2805 of title 10, United States Code, $16,180,000.
H. R. 1588—320

(5) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$95,778,000.

(6) For military housing functions:

(A) For construction and acquisition, planning and

design, and improvement of military family housing and

facilities, $657,065,000.

(B) For support of military family housing (including

functions described in section 2833 of title 10, United States

Code), $826,074,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853

of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section

2301 of this Act may not exceed the total amount authorized to

be appropriated under paragraphs (1), (2), and (3) of subsection

(a).

(c) ADJUSTMENT.—The total amount authorized to be appropriated pursuant to paragraphs (1) through (6) of subsection (a)

is the sum of the amounts authorized to be appropriated in such

paragraphs, reduced by $10,000,000, which represents corrections

to Department of the Air Force estimates for military family housing

support.

SEC. 2305. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY

OUT CERTAIN FISCAL YEAR 2003 PROJECTS.

(a) TERMINATION OF CLASSIFIED LOCATION PROJECT.—Section

2301(c) of the Military Construction Authorization Act for Fiscal

Year 2003 (division B of Public Law 107–314; 116 Stat. 2691)

is amended by striking ‘‘$24,993,000’’ both places it appears and

inserting ‘‘$1,993,000’’. (b) IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.—Section 2303 of that Act (116 Stat. 2693) is amended by striking

‘‘$226,068,000’’ and inserting ‘‘$206,721,000’’. (c) CONFORMING AMENDMENTS.—Section 2304(a) of that Act

(116 Stat. 2693) is amended— (1) in the matter preceding paragraph (1), by striking ‘‘$2,633,738,000’’ and inserting ‘‘$2,591,391,000’’;

(2) in paragraph (3), by striking ‘‘$24,993,000’’ and inserting ‘‘$1,993,000’’; and

(3) in paragraph (6)(A), by striking ‘‘$689,824,000’’ and

inserting ‘‘$670,477,000’’.

TITLE XXIV—DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

Sec. 2402. Family housing.

Sec. 2403. Improvements to military family housing units.

Sec. 2404. Energy conservation projects.

Sec. 2405. Authorization of appropriations, Defense Agencies.

Sec. 2406. Termination of authority to carry out certain fiscal year 2003 projects.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND

LAND ACQUISITION PROJECTS.

(a) INSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2405(a)(1), the Secretary of Defense may acquire real property

and carry out military construction projects for the installations
H. R. 1588—321

and locations inside the United States, and in the amounts, set

forth in the following table:

Defense Agencies: Inside the United States

Agency Installation or location Amount

Defense Education Activity Marine Corps Base, Camp

Lejeune, North Carolina ........... $15,259,000

Defense Logistics Agency .... Defense Distribution Depot, New

Cumberland, Pennsylvania ....... $27,700,000

Eglin Air Force Base, Florida ....... $4,800,000

Eielson Air Force Base, Alaska .... $17,000,000

Hickam Air Force Base, Hawaii ... $14,100,000

Hurlburt Field, Florida ................. $4,100,000

Offutt Air Force Base, Nebraska $13,400,000

Langley Air Force Base, Virginia $13,000,000

Laughlin Air Force Base, Texas ... $4,688,000

McChord Air Force Base, Washington .......................................... $8,100,000

Naval Air Station, Kingsville,

Texas ........................................... $9,200,000

Nellis Air Force Base, Nevada ..... $12,800,000

Missile Defense Agency ...... Redstone Arsenal, Alabama ......... $20,000,000

National Security Agency ... Fort Meade, Maryland .................. $1,842,000

Special Operations Command ................................. Dam Neck, Virginia ...................... $15,281,000

Fort Bragg, North Carolina .......... $36,300,000

Fort Campbell, Kentucky .............. $7,800,000

Harrisburg International Airport,

Pennsylvania .............................. $3,000,000

Hurlburt Field, Florida ................. $6,000,000

MacDill Air Force Base, Florida .. $25,500,000

Naval Amphibious Base, Coronado, California ......................... $2,800,000

TRICARE Management Activity .................................. Fort Hood, Texas ........................... $9,400,000

Naval Station, Anacostia, District

of Columbia ................................ $15,714,000

Naval Submarine Base, New London, Connecticut ........................ $6,700,000

United States Air Force Academy,

Colorado ...................................... $22,100,000

Walter Reed Medical Center, District of Columbia ........................ $9,000,000

Washington Headquarters

Services ............................. Arlington, Virginia ........................ $38,086,000

Total ........................................ $363,670,000

(b) OUTSIDE THE UNITED STATES.—Using amounts appropriated

pursuant to the authorization of appropriations in section

2405(a)(2), the Secretary of Defense may acquire real property

and carry out military construction projects for the installations

and locations outside the United States, and in the amounts, set

forth in the following table:

Defense Agencies: Outside the United States

Agency Installation or location Amount

Defense Education Activity Sigonella, Italy ............................... $30,234,000
H. R. 1588—322

Defense Agencies: Outside the United States—Continued

Agency Installation or location Amount

Vicenza, Italy ................................. $16,374,000

TRICARE Management Activity .................................. Anderson Air Force Base, Guam .. $26,000,000

Total ........................................ $72,608,000

SEC. 2402. FAMILY HOUSING.

Using amounts appropriated pursuant to the authorization of

appropriations in section 2405(a)(8)(A), the Secretary of Defense

may carry out architectural and engineering services and construction design activities with respect to the construction or improvement of military family housing units in an amount not to exceed

$300,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and

using amounts appropriated pursuant to the authorization of appropriations in section 2405(a)(8)(A), the Secretary of Defense may

improve existing military family housing units in an amount not

to exceed $50,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of

appropriations in section 2405(a)(6), the Secretary of Defense may

carry out energy conservation projects under section 2865 of title

10, United States Code, in the amount of $50,000,000.

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) IN GENERAL.—Funds are hereby authorized to be appropriated for fiscal years beginning after September 30, 2003, for

military construction, land acquisition, and military family housing

functions of the Department of Defense (other than the military

departments) in the total amount of $1,222,388,000, as follows:

(1) For military construction projects inside the United

States authorized by section 2401(a), $361,470,000.

(2) For military construction projects outside the United

States authorized by section 2401(b), $55,243,000.

(3) For unspecified minor construction projects under section 2805 of title 10, United States Code, $15,553,000.

(4) For contingency construction projects of the Secretary

of Defense under section 2804 of title 10, United States Code,

$8,960,000.

(5) For architectural and engineering services and construction design under section 2807 of title 10, United States Code,

$65,130,000.

(6) For energy conservation projects authorized by section

2404, $50,000,000.

(7) For base closure and realignment activities as authorized by the Defense Base Closure and Realignment Act of

1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C.

2687 note), $370,427,000.

(8) For military family housing functions:

(A) For planning, design, and improvement of military family housing and facilities, $350,000.
H. R. 1588—323

(B) For support of military family housing (including

functions described in section 2833 of title 10, United States

Code), $49,440,000.

(C) For credit to the Department of Defense Family

Housing Improvement Fund established by section

2883(a)(1) of title 10, United States Code, $300,000.

(9) For construction of the Defense Threat Reduction Center

at Fort Belvoir, Virginia, authorized by section 2401(a) of the

Military Construction Authorization Act for Fiscal Year 2003

(division B of Public Law 107–314; 116 Stat. 2695), $25,700,000.

(10) For the construction of phase 5 of an ammunition

demilitarization facility at Pueblo Depot Activity, Colorado,

authorized by section 2401(a) of the Military Construction

Authorization Act for Fiscal Year 1997 (division B of Public

Law 104–201; 110 Stat. 2775), as amended by section 2406

of the Military Construction Authorization Act for Fiscal Year

2000 (division B of Public Law 106–65; 113 Stat. 839) and

section 2407 of the Military Construction Authorization Act

for Fiscal Year 2003 (division B of Public Law 107–314; 116

Stat. 2698), $88,388,000.

(11) For the construction of phase 6 of an ammunition

demilitarization facility at Newport Army Ammunition Plant,

Indiana, authorized by section 2401(a) of the Military Construction Authorization Act for Fiscal Year 1999 (division B of Public

Law 105–261; 112 Stat. 2193), as amended by section 2406

of the Military Construction Authorization Act for Fiscal Year

2003 (division B of Public Law 107–314; 116 Stat. 2698),

$15,207,000.

(12) For the construction of phase 4 of an ammunition

demilitarization facility at Blue Grass Army Depot, Kentucky,

authorized by section 2401(a) of the Military Construction

Authorization Act for Fiscal Year 2000 (division B of Public

Law 106–65; 113 Stat. 835), as amended by section 2405 of

the Military Construction Authorization Act for Fiscal Year

2002 (division B of Public Law 107–107; 115 Stat. 1298) and

section 2405 of the Military Construction Authorization Act

for Fiscal Year 2003 (division B of Public Law 107–314; 116

Stat. 2698), $16,220,000.

(b) LIMITATION ON TOTAL COST OF CONSTRUCTION PROJECTS.—

Notwithstanding the cost variations authorized by section 2853

of title 10, United States Code, and any other cost variation authorized by law, the total cost of all projects carried out under section

2401 of this Act may not exceed the total amount authorized to

be appropriated under paragraphs (1) and (2) of subsection (a).

SEC. 2406. TERMINATION OF AUTHORITY TO CARRY OUT CERTAIN

FISCAL YEAR 2003 PROJECTS.

(a) TERMINATION.—The table in section 2401(b) of the Military

Construction Authorization Act for Fiscal Year 2003 (division B

of Public Law 107–314; 116 Stat. 2695) is amended—

(1) in the matter relating to Department of Defense

Dependents Schools—

(A) by striking the item relating to Seoul, Korea; and

(B) by striking the item relating to Spangdahlem Air

Base, Germany;
H. R. 1588—324

(2) in the matter relating to TRICARE Management

Activity, by striking the item relating to Spangdahlem Air

Base, Germany; and

(3) by striking the amount identified as the total in the

amount column and inserting ‘‘$134,274,000’’.

(b) CONFORMING AMENDMENTS.—Section 2404(a) of that Act

(116 Stat. 2696) is amended—

(1) in the matter preceding paragraph (1), by striking

‘‘$1,434,795,000’’ and inserting ‘‘$1,362,486,000’’; and

(2) in paragraph (2), by striking ‘‘$206,583,000’’ and

inserting ‘‘$134,274,000’’.

TITLE XXV—NORTH ATLANTIC TREATY

ORGANIZATION SECURITY INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.

Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the North

Atlantic Treaty Organization Security Investment program as provided in section 2806 of title 10, United States Code, in an amount

not to exceed the sum of the amount authorized to be appropriated

for this purpose in section 2502 and the amount collected from

the North Atlantic Treaty Organization as a result of construction

previously financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

Funds are hereby authorized to be appropriated for fiscal years

beginning after September 30, 2003, for contributions by the Secretary of Defense under section 2806 of title 10, United States

Code, for the share of the United States of the cost of projects

for the North Atlantic Treaty Organization Security Investment

program authorized by section 2501, in the amount of $169,300,000.

TITLE XXVI—GUARD AND RESERVE

FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land acquisition

projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND

LAND ACQUISITION PROJECTS.

There are authorized to be appropriated for fiscal years beginning after September 30, 2003, for the costs of acquisition, architectural and engineering services, and construction of facilities for

the Guard and Reserve Forces, and for contributions therefor, under

chapter 1803 of title 10, United States Code (including the cost

of acquisition of land for those facilities), the following amounts:

(1) For the Department of the Army—

(A) for the Army National Guard of the United States,

$311,592,000; and

(B) for the Army Reserve, $88,451,000.
H. R. 1588—325

(2) For the Department of the Navy, for the Naval and

Marine Corps Reserve, $45,498,000.

(3) For the Department of the Air Force—

(A) for the Air National Guard of the United States,

$222,908,000; and

(B) for the Air Force Reserve, $62,032,000.

TITLE XXVII—EXPIRATION AND

EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be specified by

law.

Sec. 2702. Extension of authorizations of certain fiscal year 2001 projects.

Sec. 2703. Extension of authorizations of certain fiscal year 2000 projects.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS

REQUIRED TO BE SPECIFIED BY LAW.

(a) EXPIRATION OF AUTHORIZATIONS AFTER THREE YEARS.—

Except as provided in subsection (b), all authorizations contained

in titles XXI through XXVI for military construction projects, land

acquisition, family housing projects and facilities, and contributions

to the North Atlantic Treaty Organization Security Investment

program (and authorizations of appropriations therefor) shall expire

on the later of—

(1) October 1, 2006; or

(2) the date of the enactment of an Act authorizing funds

for military construction for fiscal year 2007.

(b) EXCEPTION.—Subsection (a) shall not apply to authorizations

for military construction projects, land acquisition, family housing

projects, and facilities, and contributions to the North Atlantic

Treaty Organization Security Investment program (and authorizations of appropriations therefor) for which appropriated funds have

been obligated before the later of—

(1) October 1, 2006; or

(2) the date of the enactment of an Act authorizing funds

for fiscal year 2007 for military construction projects, land

acquisition, family housing projects and facilities, and contributions to the North Atlantic Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR

2001 PROJECTS.

(a) EXTENSION OF CERTAIN PROJECTS.—Notwithstanding section

2701 of the Military Construction Authorization Act for Fiscal Year

2001 (division B of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law

106–398; 114 Stat. 1654A–407)), authorizations set forth in the

tables in subsection (b), as provided in section 2102 or 2601 of

that Act, shall remain in effect until October 1, 2004, or the date

of the enactment of an Act authorizing funds for military construction for fiscal year 2005, whichever is later.

(b) TABLES.—The tables referred to in subsection (a) are as

follows:
H. R. 1588—326

Army: Extension of 2001 Project Authorization

State Installation or location Project Amount

South Carolina ........... Fort Jackson ............. New Construction—Family

Housing (1

Unit) ............. $250,000

Army National Guard: Extension of 2001 Project Authorizations

State Installation or location Project Amount

Arizona ....................... Papago Park .............. Add/Alter Readiness Center $2,265,000

Pennsylvania .............. Mansfield .................. Readiness Center ................. $3,100,000

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR

2000 PROJECTS.

(a) EXTENSION.—Notwithstanding section 2701 of the Military

Construction Authorization Act for Fiscal Year 2000 (division B

of Public Law 106–65; 113 Stat. 841), the authorizations set forth

in the tables in subsection (b), as provided in section 2302 or

2601 of that Act and extended by section 2702 of the Military

Construction Authorization Act for Fiscal Year 2003 (division B

of Public Law 107–314; 116 Stat. 2700), shall remain in effect

until October 1, 2004, or the date of the enactment of an Act

authorizing funds for military construction for fiscal year 2005,

whichever is later.

(b) TABLES.—The tables referred to in subsection (a) are as

follows:

Air Force: Extension of 2000 Project Authorization

State Installation or location Project Amount

Oklahoma ................... Tinker Air Force

Base ....................... Replace Family

Housing (41

Units) ........... $6,000,000

Army National Guard: Extension of 2000 Project Authorization

State Installation or location Project Amount

Virginia ...................... Fort Pickett ............... Multi-purpose

Range-Heavy $13,500,000

TITLE XXVIII—GENERAL PROVISIONS

Subtitle A—Military Construction Program and Military Family Housing

Changes

Sec. 2801. Modification of general definitions relating to military construction.
H. R. 1588—327

Sec. 2802. Increase in maximum amount of authorized annual emergency construction.

Sec. 2803. Increase in number of family housing units in Italy authorized for lease

by the Navy.

Sec. 2804. Increase in authorized maximum lease term for family housing and

other facilities in certain foreign countries.

Sec. 2805. Conveyance of property at military installations closed or realigned to

support military construction.

Sec. 2806. Inapplicability of space limitations to military unaccompanied housing

units acquired or constructed under alternative authority.

Sec. 2807. Additional material for reports on housing privatization program.

Sec. 2808. Temporary, limited authority to use operation and maintenance funds

for construction projects outside the United States.

Sec. 2809. Report on military construction requirements to support new homeland

defense missions of the Armed Forces.

Subtitle B—Real Property and Facilities Administration

Sec. 2811. Enhancement of authority to acquire low-cost interests in land.

Sec. 2812. Retention and availability of amounts realized from energy cost savings.

Sec. 2813. Acceptance of in-kind consideration for easements.

Subtitle C—Base Closure and Realignment

Sec. 2821. Consideration of public-access-road issues related to base closure, realignment, or placement in inactive status.

Sec. 2822. Consideration of surge requirements in 2005 round of base realignments

and closures.

Subtitle D—Land Conveyances

PART I—ARMY CONVEYANCES

Sec. 2831. Termination of lease and conveyance of Army Reserve facility, Conway,

Arkansas.

Sec. 2832. Land conveyance, Fort Campbell, Kentucky and Tennessee.

Sec. 2833. Land conveyance, Fort Knox, Kentucky.

Sec. 2834. Army National Guard Armory, Pierce City, Missouri.

Sec. 2835. Land exchange, Fort Belvoir, Virginia.

PART II—NAVY CONVEYANCES

Sec. 2841. Land conveyance, Navy property, Dixon, California.

Sec. 2842. Land conveyance, Marine Corps Logistics Base, Albany, Georgia.

Sec. 2843. Land exchange, Naval and Marine Corps Reserve Center, Portland, Oregon.

Sec. 2844. Land conveyance, Naval Reserve Center, Orange, Texas.

Sec. 2845. Land conveyance, Puget Sound Naval Shipyard, Bremerton, Washington.

PART III—AIR FORCE CONVEYANCES

Sec. 2851. Land exchange, March Air Reserve Base, California.

Sec. 2852. Actions to quiet title, Fallin Waters Subdivision, Eglin Air Force Base,

Florida.

Sec. 2853. Modification of land conveyance, Eglin Air Force Base, Florida.

PART IV—OTHER CONVEYANCES

Sec. 2861. Land conveyance, Air Force and Army Exchange Service property, Dallas, Texas.

Sec. 2862. Land conveyance, Umnak Island, Alaska.

Subtitle E—Other Matters

Sec. 2871. Authority to accept guarantees with gifts in development of Marine

Corps Heritage Center, Marine Corps Base, Quantico, Virginia.

Sec. 2872. Redesignation of Yuma Training Range Complex as Bob Stump Training

Range Complex.

Sec. 2873. Feasibility study regarding conveyance of Louisiana Army Ammunition

Plant, Doyline, Louisiana.
H. R. 1588—328

Subtitle A—Military Construction Program

and Military Family Housing Changes

SEC. 2801. MODIFICATION OF GENERAL DEFINITIONS RELATING TO

MILITARY CONSTRUCTION.

(a) MILITARY CONSTRUCTION.—Subsection (a) of section 2801

of title 10, United States Code, is amended by inserting before

the period the following: ‘‘, whether to satisfy temporary or permanent requirements’’.

(b) MILITARY INSTALLATION.—Subsection (c)(2) of such section

is amended by inserting before the period the following: ‘‘, without

regard to the duration of operational control’’.

SEC. 2802. INCREASE IN MAXIMUM AMOUNT OF AUTHORIZED ANNUAL

EMERGENCY CONSTRUCTION.

Section 2803(c)(1) of title 10, United States Code, is amended

by striking ‘‘$30,000,000’’ and inserting ‘‘$45,000,000’’.

SEC. 2803. INCREASE IN NUMBER OF FAMILY HOUSING UNITS IN ITALY

AUTHORIZED FOR LEASE BY THE NAVY.

Section 2828(e)(2) of title 10, United States Code, is amended

by striking ‘‘2,000’’ and inserting ‘‘2,800’’.

SEC. 2804. INCREASE IN AUTHORIZED MAXIMUM LEASE TERM FOR

FAMILY HOUSING AND OTHER FACILITIES IN CERTAIN

FOREIGN COUNTRIES.

(a) LEASE OF MILITARY FAMILY HOUSING.—Section 2828(d)(1)

of title 10, United States Code, is amended by striking ‘‘ten years,’’

and inserting ‘‘10 years, or 15 years in the case of leases in Korea,’’.

(b) LEASE OF OTHER FACILITIES.—Section 2675 of such title

is amended by inserting after ‘‘five years,’’ the following: ‘‘or 15

years in the case of a lease in Korea,’’.

SEC. 2805. CONVEYANCE OF PROPERTY AT MILITARY INSTALLATIONS

CLOSED OR REALIGNED TO SUPPORT MILITARY

CONSTRUCTION.

(a) IN GENERAL.—(1) Subchapter III of chapter 169 of title

10, United States Code, is amended by adding at the end the

following new section:

‘‘§ 2869. Conveyance of property at military installations

closed or realigned to support military construction

‘‘(a) CONVEYANCE AUTHORIZED; CONSIDERATION.—The Secretary

concerned may enter into an agreement to convey real property,

including any improvements thereon, located on a military installation that is closed or realigned under a base closure law to any

person who agrees, in exchange for the real property—

‘‘(1) to carry out a military construction project or land

acquisition; or

‘‘(2) to transfer to the Secretary concerned housing that

is constructed or provided by the person and located at or

near a military installation at which there is a shortage of

suitable military family housing, military unaccompanied

housing, or both.
H. R. 1588—329

‘‘(b) CONDITIONS ON CONVEYANCE AUTHORITY.—The fair market

value of the military construction, military family housing, or military unaccompanied housing to be obtained by the Secretary concerned under subsection (a) in exchange for the conveyance of

real property by the Secretary under such subsection shall be at

least equal to the fair market value of the conveyed real property,

as determined by the Secretary. If the fair market value of the

military construction, military family housing, or military unaccompanied housing is less than the fair market value of the real

property to be conveyed, the recipient of the property shall pay

to the United States an amount equal to the difference in the

fair market values.

‘‘(c) PILOT PROGRAM FOR USE OF AUTHORITY.—(1) To the maximum extent practicable, the Secretary of each military department

shall use the conveyance authority provided by subsection (a) at

least once before December 31, 2004, for the purposes specified

in such subsection.

‘‘(2) The value of the consideration received by the Secretary

concerned in a conveyance carried out under this subsection shall

not be less than $1,000,000.

‘‘(3) In the case of the report required under subsection (f)

to be submitted in 2005, the Secretary of Defense shall include

the following:

‘‘(A) A description of the conveyances carried out or proposed under this subsection.

‘‘(B) A description of the procedures utilized to enter into

any agreements for the conveyance of property under this subsection.

‘‘(C) An assessment of the utility of such procedures for

the disposal of property at military installations closed or

realigned under the base closure laws, and for securing services

described in subsection (a), including an assessment of any

time saved and cost-savings achieved as a result of the use

of the conveyance authority provided by this section.

‘‘(D) An assessment of private sector interest in the use

of the conveyance authority provided by this section.

‘‘(E) A description of the projects for which the Secretary

concerned considered using the conveyance authority provided

by this section, but did not do so, and an explanation of the

decision.

‘‘(d) ADVANCE NOTICE OF USE OF AUTHORITY.—(1) Notice of

the proposed use of the conveyance authority provided by subsection

(a) shall be provided in such manner as the Secretary of Defense

may prescribe, including publication in the Federal Register and

otherwise. When real property located at a military installation

closed or realigned under the base closure laws is to be conveyed

by means of a public sale, the Secretary concerned may notify

prospective purchasers that consideration for the property may

be provided in the manner authorized by such subsection.

‘‘(2) The Secretary concerned may not enter into an agreement

under subsection (a) for the conveyance of real property until—

‘‘(A) the Secretary submits to Congress notice of the conveyance, including the military construction activities, military

family housing, or military unaccompanied housing to be

obtained in exchange for the conveyance; and

‘‘(B) a period of 14 days expires beginning on the date

on which the notice is submitted.
H. R. 1588—330

‘‘(e) DEPOSIT OF FUNDS.—The Secretary concerned may deposit

funds received under subsection (b) in the Department of Defense

housing funds established under section 2883(a) of this title.

‘‘(f) ANNUAL REPORT.—In the budget materials submitted to

Congress in connection with the submission of the budget for a

fiscal year pursuant to section 1105 of title 31, the Secretary of

Defense shall include a report detailing the following:

‘‘(1) The extent to which the Secretaries concerned used

the authority provided by subsection (a) during the preceding

fiscal year to convey real property in exchange for military

construction and military housing, including the total value

of the real property that was actually conveyed during such

fiscal year using such authority and the total value of the

military construction and military housing services obtained

in exchange.

‘‘(2) The plans for the use of such authority for the current

fiscal year, the fiscal year covered by the budget, and the

period covered by the current future-years defense program

under section 221 of this title.

‘‘(3) The current inventory of unconveyed lands at military

installations closed or realigned under a base closure law.

‘‘(g) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of real property conveyed under subsection (a) shall

be determined by surveys satisfactory to the Secretary concerned.

‘‘(h) ADDITIONAL TERMS AND CONDITIONS.—The Secretary concerned may require such additional terms and conditions in connection with a conveyance under subsection (a) as the Secretary considers appropriate to protect the interests of the United States.’’.

(2) The table of sections at the beginning of such subchapter

is amended by adding at the end the following new item:

‘‘2869. Conveyance of property at military installations closed or realigned to support military construction.’’.

(b) EXCEPTION TO REQUIREMENT FOR AUTHORIZATION OF

NUMBER OF HOUSING UNITS.—Section 2822(b) of such title is

amended by adding at the end the following new paragraph:

‘‘(6) Housing units constructed or provided under section

2869 of this title.’’.

(c) CONFORMING AMENDMENT TO DEPARTMENT OF DEFENSE

HOUSING FUNDS.—Section 2883(c) of such title is amended—

(1) in paragraph (1), by adding at the end the following

new subparagraph:

‘‘(F) Any amounts that the Secretary concerned transfers

to that Fund pursuant to section 2869 of this title.’’; and

(2) in paragraph (2), by adding at the end the following

new subparagraph:

‘‘(F) Any amounts that the Secretary concerned transfers

to that Fund pursuant to section 2869 of this title.’’.

(d) CONFORMING REPEALS TO BASE CLOSURE LAWS.—(1) Section

204(e) of the Defense Authorization Amendments and Base Closure

and Realignment Act (Public Law 100–526; 10 U.S.C. 2687 note)

is repealed.

(2) Section 2905(f) of the Defense Base Closure and Realignment

Act of 1990 (part A of title XXIX of Public Law 101–510; 10

U.S.C. 2687 note) is repealed.
H. R. 1588—331

SEC. 2806. INAPPLICABILITY OF SPACE LIMITATIONS TO MILITARY

UNACCOMPANIED HOUSING UNITS ACQUIRED OR CONSTRUCTED UNDER ALTERNATIVE AUTHORITY.

Section 2880(b)(2) of title 10, United States Code, is amended

by striking ‘‘unless the unit is located on a military installation’’.

SEC. 2807. ADDITIONAL MATERIAL FOR REPORTS ON HOUSING

PRIVATIZATION PROGRAM.

(a) REPORTS ON SPECIFIC PROJECTS.—Subsection (a) of section

2884 of title 10, United States Code, is amended—

(1) by designating the second sentence of paragraph (2)

as paragraph (4); and

(2) by inserting after the first sentence in paragraph (2)

the following new paragraph:

‘‘(3)(A) In the case of a contract described in paragraph (1)

proposed to be entered into with a private party, the report shall

specify whether the contract will or may include a guarantee

(including the making of mortgage or rental payments) by the

Secretary to the private party in the event of—

‘‘(i) the closure or realignment of the installation for which

housing will be provided under the contract;

‘‘(ii) a reduction in force of units stationed at such installation; or

‘‘(iii) the extended deployment of units stationed at such

installation.

‘‘(B) If the contract will or may include such a guarantee,

the report shall also—

‘‘(i) describe the nature of the guarantee; and

‘‘(ii) assess the extent and likelihood, if any, of the liability

of the United States with respect to the guarantee.’’.

(b) ANNUAL REPORTS.—Subsection (b) of such section is

amended—

(1) in paragraph (2), by inserting before the period at

the end the following: ‘‘, and such recommendations as the

Secretary considers necessary for improving the extent and

effectiveness of the use of such authorities in the future’’; and

(2) by striking paragraph (3) and inserting the following

new paragraphs:

‘‘(3) A review of activities of the Secretary under this subchapter during such preceding fiscal year, shown for military

family housing, military unaccompanied housing, dual military

family housing and military unaccompanied housing, and

ancillary supporting facilities.

‘‘(4) If a contract for the acquisition or construction of

military family housing, military unaccompanied housing, or

dual military family housing and military unaccompanied

housing entered into during the preceding fiscal year did not

include the acquisition or construction of the types of ancillary

supporting facilities specifically referred to in section 2871(1)

of this title, a explanation of the reasons why such ancillary

supporting facilities were not included.

‘‘(5) A description of the Secretary’s plans for housing

privatization activities under this subchapter: (A) during the

fiscal year for which the budget is submitted; and (B) during

the period covered by the then-current future-years defense

plan under section 221 of this title.’’.
H. R. 1588—332

SEC. 2808. TEMPORARY, LIMITED AUTHORITY TO USE OPERATION AND

MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS

OUTSIDE THE UNITED STATES.

(a) TEMPORARY AUTHORITY.—During fiscal year 2004, the Secretary of Defense may use this section as authority to obligate

appropriated funds available for operation and maintenance to carry

out a construction project outside the United States that the Secretary determines meets each of the following conditions:

(1) The construction is necessary to meet urgent military

operational requirements of a temporary nature involving the

use of the Armed Forces in support of a declaration of war,

the declaration by the President of a national emergency under

section 201 of the National Emergencies Act (50 U.S.C. 1621),

or a contingency operation.

(2) The construction is not carried out at a military installation where the United States is reasonably expected to have

a long-term presence.

(3) The United States has no intention of using the

construction after the operational requirements have been satisfied.

(4) The level of construction is the minimum necessary

to meet the temporary operational requirements.

(b) NOTIFICATION OF OBLIGATION OF FUNDS.—Within seven days

after the date on which appropriated funds available for operation

and maintenance are first obligated for a construction project under

subsection (a), the Secretary of Defense shall submit to the congressional committees specified in subsection (f) notice of the obligation

of the funds and the construction project. The notice shall include

the following:

(1) Certification that the conditions specified in subsection

(a) are satisfied with regard to the construction project.

(2) A description of the purpose for which appropriated

funds available for operation and maintenance are being obligated.

(3) All relevant documentation detailing the construction

project.

(4) An estimate of the total amount obligated for the

construction.

(c) LIMITATION ON USE OF AUTHORITY.—(1) The total cost of

the construction projects carried out under the authority of this

section using, in whole or in part, appropriated funds available

for operation and maintenance shall not exceed $200,000,000 in

fiscal year 2004.

(2) The Secretary of Defense may waive the limitation imposed

by paragraph (1) if the Secretary determines that the obligation

of operation and maintenance funds for construction projects in

excess of the amount specified in such subsection is vital to the

national security.

(3) Not later than five days after the date on which a waiver

is granted under paragraph (2), the Secretary of Defense shall

submit to the congressional committees specified in subsection (f)

notice containing the reasons for the waiver.

(d) QUARTERLY REPORT.—Not later than 30 days after the end

of each fiscal-year quarter of fiscal year 2004, the Secretary of

Defense shall submit to the congressional committees specified in

subsection (f) a report on the worldwide obligation and expenditure
H. R. 1588—333

during that quarter of appropriated funds available for operation

and maintenance for construction projects.

(e) RELATION TO OTHER AUTHORITIES.—The temporary

authority provided by this section, and the limited authority provided by section 2805(c) of title 10, United States Code, to use

appropriated funds available for operation and maintenance to carry

out a construction project are the only authorities available to

the Secretary of Defense and the Secretaries of the military departments to use appropriated funds available for operation and maintenance to carry out construction projects.

(f) CONGRESSIONAL COMMITTEES.—The congressional committees referred to in this section are the following:

(1) The Committee on Armed Services and the Subcommittees on Defense and Military Construction of the Committee

on Appropriations of the Senate.

(2) The Committee on Armed Services and the Subcommittees on Defense and Military Construction of the Committee

on Appropriations of the House of Representatives.

SEC. 2809. REPORT ON MILITARY CONSTRUCTION REQUIREMENTS TO

SUPPORT NEW HOMELAND DEFENSE MISSIONS OF THE

ARMED FORCES.

Not later than February 15, 2004, the Secretary of Defense

shall submit to Congress a report describing all military construction projects carried out to support new homeland defense missions

of the Armed Forces undertaken since September 11, 2001, and

containing an assessment of the military construction requirements

anticipated to be necessary during fiscal years 2005, 2006, and

2007 to support such missions.

Subtitle B—Real Property and Facilities

Administration

SEC. 2811. ENHANCEMENT OF AUTHORITY TO ACQUIRE LOW-COST

INTERESTS IN LAND.

(a) INCREASE IN ACQUISITION THRESHOLD.—Section 2672 of title

10, United States Code, is amended— (1) by redesignating subsections (a)(2) and (b) as subsections (b) and (c), respectively;

(2) in subsection (a)— (A) in paragraph (1)(B), by striking ‘‘$500,000’’ and

inserting ‘‘$750,000’’; and

(B) by inserting after paragraph (1) the following new

paragraph (2):

‘‘(2) The Secretary of a military department may acquire any

interest in land that—

‘‘(A) the Secretary determines is needed solely to correct

a deficiency that is life-threatening, health-threatening, or

safety-threatening; and

‘‘(B) does not cost more than $1,500,000, exclusive of

administrative costs and the amounts of any deficiency judgments.’’; and

(3) in subsection (b), as so redesignated, by striking

‘‘$500,000’’ and inserting ‘‘$750,000, in the case of an acquisition

under subsection (a)(1), or $1,500,000, in the case of an acquisition under subsection (a)(2)’’.
H. R. 1588—334

(b) CLERICAL AMENDMENTS.—(1) Such section is further

amended—

(A) in subsection (a), by inserting ‘‘ACQUISITION

AUTHORITY.—’’ before ‘‘(1)’’;

(B) in subsection (b), as redesignated by subsection (a)(1),

by inserting ‘‘ACQUISITION OF MULTIPLE PARCELS.—’’ before

‘‘This section’’; and

(C) in subsection (c), as redesignated by subsection (a)(1),

by inserting ‘‘SURVEY AND ACQUISITION METHODS.—’’ before

‘‘The authority’’.

(2) The heading of such section is amended to read as follows:

‘‘§ 2672. Authority to acquire low-cost interests in land’’.

(3) The item relating to section 2672 in the table of sections

at the beginning of chapter 159 of such title is amended to read

as follows:

‘‘2672. Authority to acquire low-cost interests in land.’’.

SEC. 2812. RETENTION AND AVAILABILITY OF AMOUNTS REALIZED

FROM ENERGY COST SAVINGS.

(a) IN GENERAL.—Section 2865(b) of title 10, United States

Code, is amended—

(1) in paragraph (1), by striking ‘‘Two-thirds of the portion

of the funds appropriated’’ and inserting ‘‘An amount of the

funds appropriated’’;

(2) in paragraph (2), by striking ‘‘The Secretary’’ and

inserting ‘‘The Secretary of Defense’’; and

(3) by adding at the end the following new paragraph:

‘‘(4) The Secretary of Defense shall include in the budget material submitted to Congress in connection with the submission of

the budget for a fiscal year pursuant to section 1105 of title 31

a separate statement of the amounts available for obligation under

this subsection in such fiscal year.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection

(a)(1) shall not apply to funds appropriated for a fiscal year before

fiscal year 2004.

SEC. 2813. ACCEPTANCE OF IN-KIND CONSIDERATION FOR EASEMENTS.

(a) EASEMENTS FOR RIGHTS-OF-WAY.—Section 2668(e) of title

10, United States Code, is amended—

(1) by striking ‘‘Subsection (d)’’ and inserting ‘‘Subsections

(c) and (d)’’;

(2) by inserting ‘‘in-kind consideration and’’ before ‘‘proceeds’’; and

(3) by striking ‘‘subsection applies to’’ and inserting ‘‘subsections apply to in-kind consideration and’’.

(b) EASEMENTS FOR UTILITY LINES.—Section 2669(e) of such

title is amended—

(1) by striking ‘‘Subsection (d)’’ and inserting ‘‘Subsections

(c) and (d)’’;

(2) by inserting ‘‘in-kind consideration and’’ before ‘‘proceeds’’; and

(3) by striking ‘‘subsection applies to’’ and inserting ‘‘subsections apply to in-kind consideration and’’.
H. R. 1588—335

Subtitle C—Base Closure and Realignment

SEC. 2821. CONSIDERATION OF PUBLIC-ACCESS-ROAD ISSUES

RELATED TO BASE CLOSURE, REALIGNMENT, OR PLACEMENT IN INACTIVE STATUS.

Section 2905(b)(2) of the Defense Base Closure and Realignment

Act of 1990 (part A of title XXIX of Public Law 101–510; 10

U.S.C. 2687 note) is amended by adding at the end the following

new subparagraph:

‘‘(E) If a military installation to be closed, realigned, or placed

in an inactive status under this part includes a road used for

public access through, into, or around the installation, the Secretary

of Defense shall consult with the Governor of the State and the

heads of the local governments concerned for the purpose of considering the continued availability of the road for public use after

the installation is closed, realigned, or placed in an inactive status.’’.

SEC. 2822. CONSIDERATION OF SURGE REQUIREMENTS IN 2005 ROUND

OF BASE REALIGNMENTS AND CLOSURES.

(a) DETERMINATION OF SURGE REQUIREMENTS.—The Secretary

of Defense shall assess the probable threats to national security

and, as part of such assessment, determine the potential, prudent,

surge requirements to meet those threats.

(b) USE OF DETERMINATION.—The Secretary shall use the surge

requirements determination made under subsection (a) in the base

realignment and closure process under the Defense Base Closure

and Realignment Act of 1990 (part A of title XXIX of Public Law

101–510; 10 U.S.C. 2687 note), as amended by title XXX of the

National Defense Authorization Act for Fiscal Year 2002 (Public

Law 107–107; 115 Stat. 1342).

Subtitle D—Land Conveyances

PART I—ARMY CONVEYANCES

SEC. 2831. TERMINATION OF LEASE AND CONVEYANCE OF ARMY

RESERVE FACILITY, CONWAY, ARKANSAS.

(a) TERMINATION OF LEASE.—Upon the completion of the

replacement facility authorized for the Army Reserve facility located

in Conway, Arkansas, the Secretary of the Army may terminate

the 99-year lease between the Secretary and the University of

Central Arkansas for the property on which the old facility is

located.

(b) CONVEYANCE OF FACILITY.—As part of the termination of

the lease under subsection (a), the Secretary may convey, without

consideration, to the University of Central Arkansas all right, title,

and interest of the United States in and to the Army Reserve

facility located on the leased property.

(c) ASSUMPTION OF LIABILITY.—The University of Central

Arkansas shall expressly accept any and all liability pertaining

to the physical condition of the Army Reserve facility conveyed

under subsection (b) and shall hold the United States harmless

from any and all liability arising from the facility’s physical condition.
H. R. 1588—336

SEC. 2832. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY AND TENNESSEE.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey to the department of transportation of the State of Tennessee

all right, title, and interest of the United States in and to a parcel

of real property (right-of-way), including any improvements thereon,

located at Fort Campbell, Kentucky and Tennessee, for the purpose

of realigning and upgrading United States Highway 79 from a

two-lane highway to a four-lane highway.

(b) CONSIDERATION.—(1) As consideration for the conveyance

under subsection (a), the department of transportation of the State

of Tennessee shall pay from any source (including Federal funds

made available to the State from the Highway Trust Fund) all

of the costs of the Secretary incurred—

(A) to convey the property, including costs related to the

preparation of documents under the National Environmental

Policy Act of 1969 (42 U.S.C. 4321 et seq.), surveys (including

all surveys required under subsection (c)), cultural reviews,

and administrative oversight;

(B) to relocate a cemetery to permit the highway realignment and upgrading;

(C) to acquire approximately 200 acres of mission-essential

replacement property required to support the training mission

at Fort Campbell; and

(D) to dispose of residual Federal property located south

of the realigned highway.

(2) The Secretary of the Army may accept funds under this

subsection from the State of Tennessee or transferred by the Secretary of Transportation at the request of the State from Federalaid highway funds made available to the State to pay costs described

in paragraph (1) and credit them to the appropriate Department

of the Army accounts for the purpose of paying such costs.

(3) All funds made available from the Highway Trust Fund

to pay costs described in paragraph (1) shall be provided subject

to the requirements of section 120(b) of title 23, United States

Code, relating to the Federal share payable on account of a project

or activity.

(4) All funds accepted by the Secretary under this subsection

shall remain available until expended.

(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the property to be conveyed under subsection (a)

or acquired and disposed of under subsection (b) shall be determined

by surveys satisfactory to the Secretary.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2833. LAND CONVEYANCE, FORT KNOX, KENTUCKY.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Army may

convey, without consideration, to the Department of Veterans

Affairs of the Commonwealth of Kentucky (in this section referred

to as the ‘‘Department’’) all right, title, and interest of the United

States in and to a parcel of real property, including any improvements thereon, consisting of approximately 93 acres at Fort Knox,

Kentucky, for the purpose of permitting the Department to establish

and operate a State-run cemetery for veterans of the Armed Forces.
H. R. 1588—337

(b) REIMBURSEMENT FOR COSTS OF CONVEYANCE.—(1) The

Department shall reimburse the Secretary for any costs incurred

by the Secretary in making the conveyance under subsection (a),

including costs related to environmental documentation and other

administrative costs. This paragraph does not apply to costs associated with the environmental remediation of the property to be

conveyed.

(2) Amounts received as reimbursement under paragraph (1)

shall be credited to the fund or account that was used to cover

the costs incurred by the Secretary in carrying out the conveyance.

Amounts so credited shall be merged with amounts in such fund

or account, and shall be available for the same purposes, and

subject to the same conditions and limitations, as amounts in such

fund or account.

(c) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed under subsection

(a) shall be determined by a survey satisfactory to the Secretary.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2834. ARMY NATIONAL GUARD ARMORY, PIERCE CITY, MISSOURI.

(a) CONTRIBUTION AUTHORIZED.—The Secretary of the Army

may make a contribution under section 18233(a) of title 10, United

States Code, for a facility for a new Army National Guard armory

in Pierce City, Missouri, in excess of the contribution otherwise

authorized by section 18236(b)(2) of such title, if the Secretary

determines that— (1) there is a compelling and immediate need for the

construction of the facility;

(2) the requirement for the facility was unanticipated and

results from a natural disaster;

(3) failure to construct the facility immediately would have

an adverse impact on the mission of the unit assigned to

the facility; and

(4) the real property for the facility will be provided by

the State of Missouri.

(b) LIMITATION.—The amount of the additional contribution

provided pursuant to subsection (a), which would otherwise be

required by section 18236(b)(2) of title 10, United States Code,

from the State of Missouri for the construction of the facility,

may not exceed the amount specified in section 18233a(a)(1) of

such title.

(c) AUTHORITY TO ACCEPT REAL PROPERTY FROM STATE.—The

Secretary may accept from the State of Missouri the donation

of real property, in addition to the real property required to be

contributed by the State under subsection (a)(4), that is acceptable

to the Secretary and has a market value not in excess of the

amount of the additional contribution provided pursuant to subsection (a).

SEC. 2835. LAND EXCHANGE, FORT BELVOIR, VIRGINIA.

(a) LAND EXCHANGE AUTHORIZED.—Upon receipt of the consideration referred to in subsection (b), the Secretary of the Army

may convey to the Fairfax County Park Authority of Fairfax County,

Virginia (in this section referred to as the ‘‘Authority’’), all right,

title, and interest of the United States in and to a parcel of real
H. R. 1588—338

property, including any improvements thereon, consisting of

approximately 12 acres at Fort Belvoir, Virginia.

(b) CONSIDERATION.—As consideration for the conveyance of

the property under subsection (a), the Authority shall convey to

the United States all right, title, and interest of the Authority

in and to a parcel of real property acceptable to the Secretary.

The Secretary shall have administrative jurisdiction over the real

property received under this subsection.

(c) COSTS OF CONVEYANCE.—(1) The Secretary may collect funds

from the Authority to cover costs incurred or to be incurred by

the Secretary to carry out a conveyance under this section, including

survey costs, costs related to environmental documentation, and

other administrative costs related to the conveyance. If amounts

are collected from the Authority in advance of the Secretary incurring the actual costs, and the amount collected exceeds the costs

actually incurred by the Secretary to carry out the conveyance,

the Secretary shall refund the excess amount to the Authority.

(2) Amounts collected under paragraph (1) to cover costs previously incurred by the Secretary shall be credited to the fund

or account that was used to cover the costs. Amounts so credited

shall be merged with amounts in such fund or account, and shall

be available for the same purposes, and subject to the same conditions and limitations, as amounts in such fund or account.

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the parcels of real property to be conveyed under

this section shall be determined by surveys satisfactory to the

Secretary.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States.

PART II—NAVY CONVEYANCES

SEC. 2841. LAND CONVEYANCE, NAVY PROPERTY, DIXON, CALIFORNIA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey, without consideration, to the Housing Authority of the

City of Dixon, California, (in this section referred to as the ‘‘Housing

Authority’’), all right, title, and interest of the United States in

and to a parcel of real property, including improvements thereon,

that consists of approximately 40.41 acres located at 7290 Radio

Station Road in Dixon, California, and is currently used by the

Housing Authority as the site for the Fred H. Rehman Dixon

Migrant Center for the purpose of permitting the Housing Authority

to continue to provide suitable housing and support services to

migrant workers.

(b) PAYMENT OF COSTS OF CONVEYANCE.—(1) The Secretary

shall require the Housing Authority to cover costs to be incurred

by the Secretary after the date of the enactment of this Act, or

to reimburse the Secretary for costs incurred by the Secretary

after such date, to carry out the conveyance under subsection (a),

including any survey costs, costs related to environmental documentation, and other administrative costs related to the conveyance.

If amounts are collected from the Housing Authority in advance

of the Secretary incurring the actual costs, and the amount collected

exceeds the costs actually incurred by the Secretary to carry out
H. R. 1588—339

the conveyance, the Secretary shall refund the excess amount to

the Housing Authority.

(2) Amounts received as reimbursement under paragraph (1)

shall be credited to the fund or account that was used to cover

the costs incurred by the Secretary in carrying out the conveyance.

Amounts so credited shall be merged with amounts in such fund

or account, and shall be available for the same purposes, and

subject to the same conditions and limitations, as amounts in such

fund or account.

(c) EXEMPTION FROM FEDERAL SCREENING.—The conveyance

authorized by subsection (a) is exempt from the requirement to

screen the property for other Federal use pursuant to sections

2693 and 2696 of title 10, United States Code.

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the property to be conveyed under subsection (a)

shall be determined by a survey satisfactory to the Secretary.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2842. LAND CONVEYANCE, MARINE CORPS LOGISTICS BASE,

ALBANY, GEORGIA.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey through negotiated sale to the Preferred Development Group

Corporation, a corporation incorporated in the State of Georgia

and authorized to do business in the State of Georgia (in this

section referred to as the ‘‘Corporation’’), all right, title, and interest

of the United States in and to a parcel of real property, including

any improvements thereon, consisting of approximately 10.44 acres

located at Turner Field Road and McAdams Road in Albany,

Georgia, for the purpose of permitting the Corporation to use the

property for economic development.

(b) CONDITIONS OF CONVEYANCE.—The conveyance under subsection (a) shall be subject to the following conditions:

(1) That the Corporation accept the real property in its

condition at the time of the conveyance, commonly known as

conveyance ‘‘as is’’.

(2) That the Corporation bear all costs related to the use

and redevelopment of the real property.

(c) CONSIDERATION.—(1) As consideration for the conveyance

under subsection (a), the Corporation shall pay to the United States

an amount, determined pursuant to negotiations between the Secretary and the Corporation and based upon the fair market value

of the property (as determined pursuant to an appraisal acceptable

to the Secretary), that is appropriate for the property.

(2) The consideration received under this subsection shall be

deposited in the Department of Defense Base Closure Account 1990

established by section 2906 of the Defense Base Closure and

Realignment Act of 1990 (part A of title XXIX of Public Law

101-510; 10 U.S.C. 2687 note).

(d) PAYMENT OF COSTS OF CONVEYANCE.—(1) The Secretary

may require the Corporation to cover costs to be incurred by the

Secretary, or to reimburse the Secretary for costs incurred by the

Secretary, to carry out the conveyance under subsection (a),

including survey costs, costs related to environmental documentation, and other administrative costs related to the conveyance.
H. R. 1588—340

If amounts are collected from the Corporation in advance of the

Secretary incurring the actual costs, and the amount collected

exceeds the costs actually incurred by the Secretary to carry out

the conveyance, the Secretary shall refund the excess amount to

the Corporation.

(2) Amounts received as reimbursement under paragraph (1)

shall be credited to the fund or account that was used to cover

the costs incurred by the Secretary in carrying out the conveyance.

Amounts so credited shall be merged with amounts in such fund

or account, and shall be available for the same purposes, and

subject to the same conditions and limitations, as amounts in such

fund or account.

(e) EXEMPTION FROM FEDERAL SCREENING.—The conveyance

under subsection (a) is exempt from the requirement to screen

the property for other Federal use pursuant to sections 2693 and

2696 of title 10, United States Code.

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed under subsection

(a) shall be determined by a survey satisfactory to the Secretary.

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2843. LAND EXCHANGE, NAVAL AND MARINE CORPS RESERVE

CENTER, PORTLAND, OREGON.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey to the United Parcel Service, Inc. (in this section referred

to as ‘‘UPS’’), all right, title, and interest of the United States

in and to a parcel of real property, including improvements thereon,

consisting of approximately 14 acres in Portland, Oregon, and comprising the Naval and Marine Corps Reserve Center for the purpose

of facilitating the expansion of the UPS main distribution complex

in Portland.

(b) PROPERTY RECEIVED IN EXCHANGE.—(1) As consideration

for the conveyance under subsection (a), UPS shall—

(A) convey to the United States a parcel of real property

determined to be suitable by the Secretary; and

(B) design, construct, and convey to the United States

such replacement facilities on that property as the Secretary

considers appropriate.

(2) The value of the real property and replacement facilities

received by the Secretary under this subsection shall be at least

equal to the fair market value of the real property conveyed under

subsection (a), as determined by the Secretary.

(c) PAYMENT OF COSTS OF CONVEYANCE.—(1) The Secretary

may require UPS to cover costs to be incurred by the Secretary,

or to reimburse the Secretary for costs incurred by the Secretary,

to carry out the conveyance under subsection (a), including survey

costs, costs related to environmental documentation, relocation

expenses incurred under subsection (b), and other administrative

costs related to the conveyance. If amounts are collected from UPS

in advance of the Secretary incurring the actual costs, and the

amount collected exceeds the costs actually incurred by the Secretary to carry out the conveyance, the Secretary shall refund

the excess amount to UPS.
H. R. 1588—341

(2) Amounts received as reimbursement under paragraph (1)

shall be credited to the fund or account that was used to cover

the costs incurred by the Secretary in carrying out the conveyance.

Amounts so credited shall be merged with amounts in such fund

or account, and shall be available for the same purposes, and

subject to the same conditions and limitations, as amounts in such

fund or account.

(d) CONDITION OF CONVEYANCE.—The Secretary may not make

the conveyance authorized by subsection (a) until the Secretary

determines that the replacement facilities required by subsection

(b) are suitable and available for the relocation of the operations

of the Naval and Marine Corps Reserve Center.

(e) EXEMPTION FROM FEDERAL SCREENING.—The conveyance

authorized by subsection (a) is exempt from the requirement to

screen the property for other Federal use pursuant to sections

2693 and 2696 of title 10, United States Code.

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the property to be conveyed under this section shall

be determined by surveys satisfactory to the Secretary.

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyances under this section as the Secretary considers appropriate to protect the interests of the United States.

SEC. 2844. LAND CONVEYANCE, NAVAL RESERVE CENTER, ORANGE,

TEXAS.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey to the City of Orange, Texas (in this section referred to

as the ‘‘City’’), all right, title, and interest of the United States

in and to a parcel of unimproved real property consisting of approximately 2.5 acres at Naval Reserve Center, Orange, Texas, for the

purpose of permitting the City to use the property for road construction, economic development, and other public purposes.

(b) CONSIDERATION.—As consideration for the conveyance under

subsection (a), the City shall provide the United States, whether

by cash payment, in-kind contribution, or a combination thereof,

an amount that is not less than the fair market value, as determined

by the Secretary, of the property conveyed under such subsection.

(c) PAYMENT OF COSTS OF CONVEYANCE.—(1) The Secretary

may require the City to cover costs to be incurred by the Secretary,

or to reimburse the Secretary for costs incurred by the Secretary,

to carry out the conveyance under subsection (a), including survey

costs, costs related to environmental documentation, and other

administrative costs related to the conveyance. If amounts are

collected from the City in advance of the Secretary incurring the

actual costs, and the amount collected exceeds the costs actually

incurred by the Secretary to carry out the conveyance, the Secretary

shall refund the excess amount to the City.

(2) Amounts received as reimbursement under paragraph (1)

shall be credited to the fund or account that was used to cover

the costs incurred by the Secretary in carrying out the conveyance.

Amounts so credited shall be merged with amounts in such fund

or account, and shall be available for the same purposes, and

subject to the same conditions and limitations, as amounts in such

fund or account.

(d) EXEMPTION FROM FEDERAL SCREENING.—The conveyance

authorized by subsection (a) is exempt from the requirement to
H. R. 1588—342

screen the property for other Federal use pursuant to sections

2693 and 2696 of title 10, United States Code.

(e) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed under subsection

(a) shall be determined by a survey satisfactory to the Secretary.

(f) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2845. LAND CONVEYANCE, PUGET SOUND NAVAL SHIPYARD,

BREMERTON, WASHINGTON.

(a) CONVEYANCE AUTHORIZED.—The Secretary of the Navy may

convey to the City of Bremerton, Washington (in this section

referred to as the ‘‘City’’), all right, title, and interest of the United

States in and to a parcel of real property, including any improvements thereon, consisting of approximately 2.8 acres at the eastern

end of the Puget Sound Naval Shipyard, Bremerton, Washington,

immediately adjacent to the Bremerton Transportation Center.

(b) CONSIDERATION.—As consideration for the conveyance under

subsection (a), the City, directly or through an agreement with

another entity, shall replace administrative space on the parcel

to be conveyed by renovating for new occupancy approximately

7,500 square feet of existing space in Building 433 at Naval Station,

Bremerton, Washington, at no cost to the United States, in accordance with plans and specifications acceptable to the Secretary.

In lieu of any portion of such renovation, the Secretary may accept

other facility alteration or repair of not less than equal value.

(c) PAYMENT OF COSTS OF CONVEYANCE.—(1) The Secretary

shall require the City to cover costs to be incurred by the Secretary,

or to reimburse the Secretary for costs incurred by the Secretary,

to carry out the conveyance under subsection (a), including survey

costs, costs related to environmental documentation, and other

administrative costs related to the conveyance. If amounts are

collected from the City in advance of the Secretary incurring the

actual costs, and the amount collected exceeds the costs actually

incurred by the Secretary to carry out the conveyance, the Secretary

shall refund the excess amount to the City.

(2) Amounts received as reimbursement under paragraph (1)

shall be credited to the fund or account that was used to cover

the costs incurred by the Secretary in carrying out the conveyance.

Amounts so credited shall be merged with amounts in such fund

or account, and shall be available for the same purposes, and

subject to the same conditions and limitations, as amounts in such

fund or account.

(d) ENVIRONMENTAL CONDITIONS.—The Secretary may use

funds available in the Environmental Restoration Account, Navy

to carry out the environmental remediation of the real property

to be conveyed under subsection (a). Such environmental remediation shall be conducted in a manner consistent with section 120

of the Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 (42 U.S.C. 9620), including the requirement

to consider the anticipated future land use of the parcel.

(e) EXEMPTION FROM FEDERAL SCREENING.—The conveyance

authorized by subsection (a) is exempt from the requirement to

screen the property for other Federal use pursuant to sections

2693 and 2696 of title 10, United States Code.
H. R. 1588—343

(f) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed under subsection

(a) shall be determined by a survey satisfactory to the Secretary.

(g) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

PART III—AIR FORCE CONVEYANCES

SEC. 2851. LAND EXCHANGE, MARCH AIR RESERVE BASE, CALIFORNIA.

(a) EXCHANGE AUTHORIZED.—(1) The Secretary of the Army

may convey to the March Joint Powers Authority of Moreno Valley,

California (in this section referred to as the ‘‘JPA’’), all right,

title, and interest of the United States in and to five parcels of

real property, including any improvements thereon, located at

March Air Reserve Base, California (former March Air Force Base),

and consisting of approximately 36.74 total acres.

(2) The Secretary of the Navy may convey to JPA all right,

title, and interest of the United States in and to two parcels of

real property, including any improvements thereon, located at

March Air Reserve Base and consisting of approximately 10.181

total acres.

(b) CONSIDERATION.—As consideration for the conveyances

under subsection (a), JPA shall release any interest it may have

in two contiguous parcels of real property located at March Air

Reserve Base and consisting of approximately 20 acres and 28

acres, respectively.

(c) TRANSFER OF JURISDICTION.—The Secretary of the Air Force

shall transfer, without reimbursement, to the administrative jurisdiction of the Secretary of the Army the parcels of real property

described in subsection (b).

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the parcels of real property to be conveyed under

this section shall be determined by surveys satisfactory to the

Secretaries concerned.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretaries concerned may require such additional terms and conditions in connection with the conveyances under this section as the Secretaries

consider appropriate to protect the interests of the United States.

SEC. 2852. ACTIONS TO QUIET TITLE, FALLIN WATERS SUBDIVISION,

EGLIN AIR FORCE BASE, FLORIDA.

(a) AUTHORITY TO QUIET TITLE.—(1) Notwithstanding the restoration provisions under the heading ‘‘QUARTERMASTER CORPS’’ in

the Second Deficiency Appropriation Act, 1940 (Act of June 27,

1940; chapter 437; 54 Stat. 655), the Secretary of the Air Force

may take appropriate action to quiet title to tracts of land referred

to in paragraph (2) on, at, adjacent to, adjoining, or near Eglin

Air Force Base, Florida. The Secretary may take such action in

order to resolve encroachments upon private property by the United

States and upon property of the United States by private parties,

which resulted from reliance on inaccurate surveys.

(2) The tracts of land referred to in paragraph (1) are generally

described as south of United States Highway 98 and bisecting

the north/south section line of sections 13 and 14, township 2

south, range 25 west, located in the platted subdivision of Fallin
H. R. 1588—344

Waters, Okaloosa County, Florida. The exact acreage and legal

description of such tracts of land shall be determined by a survey

satisfactory to the Secretary.

(b) AUTHORIZED ACTIONS.—In carrying out subsection (a),

appropriate action by the Secretary may include any of the following:

(1) Disclaiming, on behalf of the United States, any intent

by the United States to acquire by prescription any property

at or in the vicinity of Eglin Air Force Base.

(2) Disposing of tracts of land owned by the United States.

(3) Acquiring tracts of land by purchase, by donation, or

by exchange for tracts of land owned by the United States

at or adjacent to Eglin Air Force Base.

(c) ACREAGE LIMITATIONS.—Individual tracts of land acquired

or conveyed by the Secretary under paragraph (2) or (3) of subsection (b) may not exceed .10 acres. The total acreage so acquired

may not exceed two acres.

(d) CONSIDERATION.—Any conveyance by the Secretary under

this section may be made, at the discretion of the Secretary, without

consideration, or by exchange for tracts of land adjoining Eglin

Air Force Base in possession of private parties who mistakenly

believed that they had acquired title to such tracts.

SEC. 2853. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE

BASE, FLORIDA.

(a) MODIFICATION.—Public Law 91–347 (84 Stat. 447) is

amended—

(1) in the first section, by inserting ‘‘or for other public

purposes’’ before the period at the end; and

(2) in section 3(1)—

(A) by inserting ‘‘or for other public purposes’’ after

‘‘schools’’; and

(B) by striking ‘‘such purpose’’ and inserting ‘‘such

a purpose’’.

(b) ALTERATION OF LEGAL INSTRUMENT.—The Secretary of the

Air Force shall execute and file in the appropriate office an amended

deed or other appropriate instrument effectuating the modification

of the reversionary interest retained by the United States in connection with the conveyance made pursuant to Public Law 91–347.

PART IV—OTHER CONVEYANCES

SEC. 2861. LAND CONVEYANCE, AIR FORCE AND ARMY EXCHANGE

SERVICE PROPERTY, DALLAS, TEXAS.

(a) CONVEYANCE AUTHORIZED.—The Secretary of Defense may

authorize the Army and Air Force Exchange Service, a nonappropriated fund instrumentality of the United States, to convey,

by sale, all right, title, and interest of the United States in and

to a parcel of real property, including any improvements thereon,

consisting of approximately 7.5 acres located at 1515 Roundtable

Drive in Dallas, Texas.

(b) CONSIDERATION.—As consideration for the conveyance under

subsection (a), the purchaser shall pay the United States, in a

single lump sum payment, an amount equal to the fair market

value of the real property, determined pursuant to an appraisal

acceptable to the Secretary.
H. R. 1588—345

(c) TREATMENT OF CONSIDERATION.—Section 574(a) of title 40,

United States Code, shall apply to the consideration received under

subsection (b), except that in the application of such section, all

of the proceeds shall be credited to the Army and Air Force

Exchange Service.

(d) DESCRIPTION OF PROPERTY.—The exact acreage and legal

description of the real property to be conveyed under subsection

(a) shall be determined by a survey satisfactory to the Secretary.

The cost of the survey shall be borne by the purchaser.

(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may

require such additional terms and conditions in connection with

the conveyance under subsection (a) as the Secretary considers

appropriate to protect the interests of the United States.

SEC. 2862. LAND CONVEYANCE, UMNAK ISLAND, ALASKA.

(a) DEFINITIONS.—In this section—

(1) The term ‘‘Aleut Corporation’’ means the regional corporation established under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) for the region in which

the Native Village of Nikolski, Alaska, is located.

(2) The term ‘‘Chaluka Corporation’’ means the village corporation established under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) for the Native Village of

Nikolski, Alaska.

(3) The term ‘‘former Nikolski Radio Relay Site’’ means

the portions of Tracts A, B, and C of Public Land Order 2374

that are surveyed as Tracts 37, 37A, 38, 39, 39A, and 40

of township 83 south, range 136 west, Seward meridian, Alaska,

and Tract B of United States Survey 4904, Alaska, except—

(A) lots 1, 2, 5, 6, and 9 of Tract B of Amended

United States Survey 4904; and

(B) the Nikolski powerhouse land.

(4) The term ‘‘Nikolski powerhouse land’’ means the parcel

of land upon which is located the power generation building

for supplying power to the Native Village of Nikolski, the

boundaries of which are described generally as follows:

(A) Beginning at the point at which the southerly

boundary of Tract 39 of township 83 south, range 136

west, Seward meridian, Alaska, intersects the easterly

boundary of the road that connects the Native Village

of Nikolski and the airfield at Nikolski.

(B) Then meandering in a northeasterly direction along

the easterly boundary of that road until the road intersects

the westerly boundary of the road that connects Umnak

Lake and the airfield.

(C) Then meandering in a southerly direction along

the western boundary of that Umnak Lake road until that

western boundary intersects the southern boundary of such

Tract 39.

(D) Then proceeding eastward along the southern

boundary of such Tract 39 to the beginning point.

(5) The term ‘‘Phase I lands’’ means Tract 39 of township

83 south, range 136 west, Seward meridian, excluding the

Nikolski powerhouse land.

(6) The term ‘‘Phase II lands’’ means the portion of the

former Nikolski Radio Relay Site not conveyed as Phase I

lands.
H. R. 1588—346

(7) The term ‘‘Public Land Order 2374’’ refers to the Public

Land Order issued in 1961 under which the Department of

the Interior withdrew public domain lands in the vicinity of

the Native Village of Nikolski on Umnak Island, Alaska, for

use by the Department of the Air Force as a radio relay site.

(b) OFFER OF CONVEYANCE.—Subject to the requirements of

this section, the Chaluka Corporation is hereby offered ownership

of the surface estate in the former Nikolski Radio Relay Site on

Umnak Island, Alaska, and the Aleut Corporation is hereby offered

the subsurface estate of the former Nikolski Radio Relay Site,

in exchange for relinquishment by the Chaluka Corporation and

the Aleut Corporation of lot 1, section 14, township 81 south,

range 133 west, Seward meridian, Alaska.

(c) ACCEPTANCE AND RELINQUISHMENT.—(1) The Secretary of

the Interior shall convey the former Nikolski Radio Relay Site

as provided in subsection (d), if the Chaluka Corporation takes

the actions specified in paragraph (2) and the Aleut Corporation

takes the actions specified in paragraph (3).

(2) As a condition for conveyance under subsection (d), the

Chaluka Corporation shall notify the Secretary of the Interior,

within 180 days after the date of the enactment of this Act, that,

by means of a legally binding resolution of its board of directors

(accompanied by the written legal opinion of counsel as to the

legal sufficiency of the board of directors’ action), the Chaluka

Corporation—

(A) accepts the offer under subsection (b);

(B) confirms that the area surveyed by the Bureau of

Land Management for the purpose of fulfilling the Chaluka

Corporation’s final entitlements under section 12(a) and (b)

of the Alaska Native Claims Settlement Act (43 U.S.C. 1611(a)

and (b)), identified as Group Survey Number 773, accurately

represents the Chaluka Corporation’s final, irrevocable Alaska

Native Claims Settlement Act priorities and entitlements,

unless any tract in Group Survey Number 773 is ultimately

not conveyed as the result of an appeal; and

(C) relinquishes lot 1, section 14, township 81 south, range

133 west, Seward meridian, Alaska, which will be charged

against the Chaluka Corporation’s final entitlement under section 12(b) of the Alaska Native Claims Settlement Act (43

U.S.C. 1611(b)).

(3) As a condition for the conveyance under subsection (d),

the Aleut Corporation shall notify the Secretary of the Interior,

within 180 days after the date of the enactment of this Act, that,

by means of a legally binding resolution of its board of directors

(accompanied by the written legal opinion of counsel as to the

legal sufficiency of the board of directors’ action), the Aleut

Corporation—

(A) accepts the offer under subsection (b); and

(B) relinquishes all rights to lot 1, section 14, township

81 south, range 133 west, Seward meridian, Alaska.

(d) CONVEYANCE.—(1) Upon receipt from the Chaluka Corporation and from the Aleut Corporation of their acceptances and

relinquishments under subsection (c), the Secretary of the Interior

shall convey to the Chaluka Corporation the surface estate, and

to the Aleut Corporation the subsurface estate, of—

(A) Phase I lands as soon as practicable; and
H. R. 1588—347

(B) each parcel of Phase II lands upon completion by the

Department of the Air Force of environmental restoration of

Phase II lands in accordance with applicable law.

(2) Upon conveyance of a parcel of land under this section,

the Secretary of the Interior shall terminate the corresponding

portion of Public Land Order 2374 relating to that parcel. Upon

conveyance of all Phase I and Phase II lands under this section,

the Secretary of the Interior shall terminate all remaining portions

of Public Land Order 2374 as it pertains to Umnak Island, Alaska.

(e) ENVIRONMENTAL RESTORATION.—Nothing in this section

affects the requirements and responsibilities of the United States

under section 120(h) of the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980 (42 U.S.C.

9620(h)) or other applicable law. If a hazardous substance, as that

term is defined in section 101 of such Act (42 U.S.C. 9601), is

discovered on the Phase I lands subsequent to transfer, but the

hazardous substance was present on the lands before transfer and

the presence of the hazardous substance on the lands was not

the result of actions by the Chaluka Corporation or the Aleut

Corporation, the United States shall perform such response action

as is required by such Act with regard to that hazardous substance.

(f) TREATMENT AS ANCSA LANDS.—The conveyances made

under subsection (d) shall be considered to be conveyances under

the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.),

and are subject to the provisions of that Act, except paragraphs

(3) and (4) of section 14(c) and section 17(b)(3) (43 U.S.C. 1613(c)

and 1616(b)(3)).

(g) CONVEYANCE OF EXCLUDED TRACT B LOTS.—The Secretary

of the Interior shall convey, without consideration, an estate in

fee simple in—

(1) each of lots 1, 2, 5, 6, and 9 of Tract B of Amended

United States Survey 4904 that is the subject of an Aleutian

Housing Authority mutual help occupancy agreement, to the

Aleutian Housing Authority; and

(2) the remainder of such lots to the occupants of such

lots as of the date of the enactment of this Act.

(h) CONVEYANCE OF NIKOLSKI POWERHOUSE LAND.—The Secretary of the Interior shall convey, without consideration, an estate

in fee simple in the Nikolski powerhouse land—

(1) to the Indian Reorganization Act Tribal Government

for the Native Village of Nikolski, upon completion of the

environmental restoration referred to in subsection (k)(2), if

after the restoration the powerhouse continues to be located

on the Nikolski powerhouse land; or

(2) the surface estate to the Chaluka Corporation and the

subsurface estate to the Aleut Corporation, if after the restoration, the Nikolski powerhouse is no longer located on the

Nikolski powerhouse land.

(i) ACCESS.—(1) As a condition of the conveyance of land under

subsection (d), the Chaluka Corporation shall permit the United

States, and its agents, employees, and contractors, to have unrestricted access to the airfield at Nikolski in perpetuity for site

investigation, restoration, remediation, and environmental monitoring of the former Nikolski Radio Relay Site and reasonable

access to that airfield, and to other land conveyed under this section,

for any activity associated with management of lands owned by
H. R. 1588—348

the United States and for other governmental purposes without

cost to the United States.

(2) The surface estate conveyed under subsection (d) shall be

subject to the public’s right of access over Hill and Beach Streets,

located on Tract B of United States Survey 4904.

(j) SURVEY REQUIREMENTS.—The Bureau of Land Management

is not required to conduct additional on-the-ground surveys as a

result of conveyances under this section. The patent to the Chaluka

Corporation may be based on protracted section lines and lotting

where relinquishment under subsection (c)(2)(C) results in a change

to the Chaluka Corporation’s final boundaries. No additional

monumentation is required to complete those final boundaries.

(k) AUTHORIZATION OF APPROPRIATIONS; TRANSFER OF FUNDS.—

(1) There are authorized to be appropriated to the Department

of the Interior and other appropriate agencies such sums as are

necessary to carry out this section.

(2) Using the funds identified for Nikolski Power House Cleanup under Budget Activity 4 on page 116 of the Conference Report

to accompany H.R. 2658 of the 108th Congress (House Report

108–283), the Secretary of the Air Force shall make a direct lump

sum payment, in an amount equal to $1,700,000, to the fund for

pollution cleanup managed by the Alaska Energy Authority for

the purpose of assisting the Authority to perform environmental

restoration of the Nikolski powerhouse land.

(l) TERMINATION.—This section (other than subsection (g)) shall

cease to be effective if—

(1) either the Chaluka Corporation or the Aleut Corporation

affirmatively rejects the offer under subsection (b); or

(2) the legally binding resolutions required by paragraphs

(2) and (3) of subsection (c) are not submitted to the Secretary

of the Interior before the end of the 180-day period specified

in such paragraphs.

Subtitle E—Other Matters

SEC. 2871. AUTHORITY TO ACCEPT GUARANTEES WITH GIFTS IN

DEVELOPMENT OF MARINE CORPS HERITAGE CENTER,

MARINE CORPS BASE, QUANTICO, VIRGINIA.

Section 2884 of the Military Construction Authorization Act

for Fiscal Year 2001 (division B of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted into

law by Public Law 106–398; 114 Stat. 1654A–440)) is amended—

(1) by redesignating subsection (f) as subsection (g); and

(2) by inserting after subsection (e) the following new subsection (f):

‘‘(f) ACCEPTANCE OF GUARANTEES WITH GIFTS.—(1) The

authority available to the Secretary under section 6975 of title

10, United States Code, to accept a qualified guarantee for purposes

of projects at the Naval Academy shall be available to the Secretary

for the project to develop the Marine Corps Heritage Center.

‘‘(2) The authority available to the Secretary under this subsection shall expire on December 31, 2006.’’.
H. R. 1588—349

SEC. 2872. REDESIGNATION OF YUMA TRAINING RANGE COMPLEX AS

BOB STUMP TRAINING RANGE COMPLEX.

The military aviation training facility located in southwestern

Arizona and southeastern California and known as the Yuma

Training Range Complex shall be known and designated as the

‘‘Bob Stump Training Range Complex’’. Any reference to such

training range complex in any law, regulation, map, document,

record, or other paper of the United States shall be considered

to be a reference to the Bob Stump Training Range Complex.

SEC. 2873. FEASIBILITY STUDY REGARDING CONVEYANCE OF LOUISIANA ARMY AMMUNITION PLANT, DOYLINE, LOUISIANA.

(a) STUDY REQUIRED.—The Secretary of the Army shall conduct

a study of—

(1) the feasibility of using the conveyance of the Louisiana

Army Ammunition Plant in Doyline, Louisiana, as a model

for a public-private partnership for the utilization and development of the Plant and similar parcels of real property; and

(2) the costs and benefits to the United States of such

a conveyance.

(b) ELEMENTS OF STUDY.—In conducting the study, the Secretary shall consider the following:

(1) The feasibility and advisability of entering into negotiations with the State of Louisiana or the Louisiana National

Guard for the conveyance of the Louisiana Army Ammunition

Plant.

(2) The means by which the conveyance of the Plant could—

(A) facilitate the execution by the Department of

Defense of its national security mission; and

(B) facilitate the continued use of the Plant by the

Louisiana National Guard and the execution by the Louisiana National Guard of its national security mission.

(3) The evidence presented by the State of Louisiana of

the means by which the conveyance of the Plant could benefit

current and potential private sector and governmental tenants

of the Plant and facilitate the contribution of such tenants

to economic development in Northwestern Louisiana.

(4) The amount and type of consideration that is appropriate for the conveyance of the Plant.

(5) The evidence presented by the State of Louisiana of

the extent to which the conveyance of the Plant to a publicprivate partnership will contribute to economic growth in the

State of Louisiana, and in Northwestern Louisiana in particular.

(6) The value of any mineral rights in the lands of the

Plant.

(7) The costs and benefits to the United States of sharing

revenues and rents paid by current and potential tenants of

the Plant as a result of the Armament Retooling and Manufacturing Support Program.

(c) REPORT.—Not later than 180 days after the date of the

enactment of this Act, the Secretary shall submit to the Committee

on Armed Services of the Senate and the Committee on Armed

Services of the House of Representatives a report containing the

results of the study and any other matters in light of the study

that the Secretary considers appropriate.
H. R. 1588—350

DIVISION C—DEPARTMENT OF ENERGY

NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI—DEPARTMENT OF ENERGY

NATIONAL SECURITY PROGRAMS

Subtitle A—National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.

Sec. 3102. Defense environmental management.

Sec. 3103. Other defense activities.

Sec. 3104. Defense nuclear waste disposal.

Sec. 3105. Energy supply.

Subtitle B—Program Authorizations, Restrictions, and Limitations

Sec. 3111. Termination of requirement for annual updates of long-term plan for nuclear weapons stockpile life extension program.

Sec. 3112. Department of Energy project review groups not subject to Federal Advisory Committee Act by reason of inclusion of employees of Department

of Energy management and operating contractors.

Sec. 3113. Readiness posture for resumption by the United States of underground

nuclear weapons tests.

Sec. 3114. Technical base and facilities maintenance and recapitalization activities.

Sec. 3115. Continuation of processing, treatment, and disposition of legacy nuclear

materials.

Sec. 3116. Repeal of prohibition on research and development of low-yield nuclear

weapons.

Sec. 3117. Requirement for specific authorization of Congress for commencement of

engineering development phase or subsequent phase of Robust Nuclear

Earth Penetrator.

Subtitle C—Proliferation Matters

Sec. 3121. Semiannual financial reports on defense nuclear nonproliferation programs.

Sec. 3122. Report on reduction of excessive unobligated or unexpended balances for

defense nuclear nonproliferation activities.

Sec. 3123. Study and report relating to weapons-grade uranium and plutonium of

the independent states of the former Soviet Union.

Sec. 3124. Authority to use international nuclear materials protection and cooperation program funds outside the former Soviet Union.

Sec. 3125. Requirement for on-site managers.

Subtitle D—Other Matters

Sec. 3131. Performance of personnel security investigations of certain Department

of Energy and Nuclear Regulatory Commission employees in sensitive

programs.

Sec. 3132. Policy of Department of Energy regarding future defense environmental

management matters.

Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain information relating to stockpile stewardship criteria.

Sec. 3134. Progress reports on Energy Employees Occupational Illness Compensation Program.

Sec. 3135. Report on integration activities of Department of Defense and Department of Energy with respect to Robust Nuclear Earth Penetrator.

Subtitle E—Consolidation of National Security Provisions

Sec. 3141. Transfer and consolidation of recurring and general provisions on Department of Energy national security programs.
H. R. 1588—351

Subtitle A—National Security Programs

Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby

authorized to be appropriated to the Department of Energy for

fiscal year 2004 for the activities of the National Nuclear Security

Administration in carrying out programs necessary for national

security in the amount of $8,877,347,000, to be allocated as follows: (1) For weapons activities, $6,434,772,000.

(2) For defense nuclear nonproliferation activities, $1,332,195,000.

(3) For naval reactors, $768,400,000.

(4) For the Office of the Administrator for Nuclear Security, $341,980,000.

(b) AUTHORIZATION OF NEW PLANT PROJECTS.—From funds

referred to in subsection (a) that are available for carrying out

plant projects, the Secretary of Energy may carry out, for weapons

activities, the following new plant projects:

Project 04–D–101, test capabilities revitalization, Sandia National Laboratories, Albuquerque, New Mexico, $36,450,000.

Project 04–D–102, exterior communications infrastructure

modernization, Sandia National Laboratories, Albuquerque,

New Mexico, $20,000,000.

Project 04–D–103, project engineering and design, various locations, $2,000,000.

Project 04–D–125, chemistry and metallurgy facility

replacement project, Los Alamos National Laboratory, Los

Alamos, New Mexico, $20,500,000.

Project 04–D–126, Building 12–44 production cells upgrade, Pantex plant, Amarillo, Texas, $8,780,000.

Project 04–D–127, cleaning and loading modifications, Savannah River Site, Aiken, South Carolina, $2,750,000.

Project 04–D–128, TA–18 Mission relocation project, Los

Alamos National Laboratory, Los Alamos, New Mexico,

$8,820,000.

Project 04–D–203, facilities and infrastructure recapitalization program, project engineering and design, various locations,

$3,719,000.

Project 03–D–102, SM–43 replacement, Los Alamos National Laboratory, Los Alamos, New Mexico, $38,000,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby

authorized to be appropriated to the Department of Energy for

fiscal year 2004 for environmental management activities in carrying out programs necessary for national security in the amount

of $6,809,814,000, to be allocated as follows:

(1) For defense site acceleration completion, $5,814,635,000.

(2) For defense environmental services, $995,179,000.

(b) AUTHORIZATION OF NEW PLANT PROJECTS.—From funds

referred to in subsection (a) that are available for carrying out

plant projects, the Secretary of Energy may carry out, for defense

site acceleration completion, the following new plant projects:

Project 04–D–408, glass waste storage building #2,

Savannah River Site, Aiken, South Carolina, $20,259,000.
H. R. 1588—352

Project 04–D–414, project engineering and design, various locations, $23,500,000.

Project 04–D–423, 3013 container surveillance capability

in 235–F, Savannah River Site, Aiken, South Carolina,

$1,134,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2004 for other defense activities

in carrying out programs necessary for national security in the

amount of $489,059,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2004 for defense nuclear waste

disposal for payment to the Nuclear Waste Fund established in

section 302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C.

10222(c)) in the amount of $392,500,000.

SEC. 3105. ENERGY SUPPLY.

Funds are hereby authorized to be appropriated to the Department of Energy for fiscal year 2004 for energy supply activities

in carrying out programs necessary for national security in the

amount of $110,473,000.

Subtitle B—Program Authorizations,

Restrictions, and Limitations

SEC. 3111. TERMINATION OF REQUIREMENT FOR ANNUAL UPDATES

OF LONG-TERM PLAN FOR NUCLEAR WEAPONS STOCKPILE LIFE EXTENSION PROGRAM.

Effective December 31, 2004, section 3133 of the National

Defense Authorization Act for Fiscal Year 2000 (Public Law 106–

65; 113 Stat. 926; 42 U.S.C. 2121 note), as transferred and redesignated as section 4204 of the Atomic Energy Defense Act by section

3141(e)(5) of this Act, is further amended by striking subsections

(c) through (f).

SEC. 3112. DEPARTMENT OF ENERGY PROJECT REVIEW GROUPS NOT

SUBJECT TO FEDERAL ADVISORY COMMITTEE ACT BY

REASON OF INCLUSION OF EMPLOYEES OF DEPARTMENT

OF ENERGY MANAGEMENT AND OPERATING CONTRACTORS.

An officer or employee of a management and operating contractor of the Department of Energy, when serving as a member

of a group reviewing or advising on matters related to any one

or more management and operating contracts of the Department,

shall be treated as an officer or employee of the Department for

purposes of determining whether the group is an advisory committee

within the meaning of section 3 of the Federal Advisory Committee

Act (5 U.S.C. App.).

SEC. 3113. READINESS POSTURE FOR RESUMPTION BY THE UNITED

STATES OF UNDERGROUND NUCLEAR WEAPONS TESTS.

(a) READINESS POSTURE REQUIRED.—Commencing not later

than October 1, 2006, the Secretary of Energy shall achieve, and

thereafter maintain, a readiness posture of not more than 18 months
H. R. 1588—353

for resumption by the United States of underground tests of nuclear

weapons.

(b) DESCRIPTION OF REQUIREMENT.—For purposes of this section, a readiness posture of not more than 18 months for resumption

by the United States of underground tests of nuclear weapons

is achieved when the Department of Energy has the capability

to resume such tests, if directed by the President to resume such

tests, not later than 18 months after the date on which the President

so directs.

SEC. 3114. TECHNICAL BASE AND FACILITIES MAINTENANCE AND

RECAPITALIZATION ACTIVITIES.

(a) DEADLINE FOR INCLUSION OF PROJECTS IN FACILITIES AND

INFRASTRUCTURE RECAPITALIZATION PROGRAM.—(1) The Administrator for Nuclear Security shall complete the selection of projects

for inclusion in the Facilities and Infrastructure Recapitalization

Program of the National Nuclear Security Administration not later

than December 31, 2004.

(2) No project may be included in the Facilities and Infrastructure Recapitalization Program after December 31, 2004, unless

such project has been selected for inclusion in that program as

of that date.

(b) TERMINATION OF FACILITIES AND INFRASTRUCTURE

RECAPITALIZATION PROGRAM.—The Administrator shall terminate

the Facilities and Infrastructure Recapitalization Program not later

than September 30, 2011.

(c) READINESS IN TECHNICAL BASE AND FACILITIES PROGRAM.—

(1) Not later than September 30, 2004, the Administrator shall

submit to the congressional defense committees a report setting

forth guidelines on the conduct of the Readiness in Technical Base

and Facilities program of the National Nuclear Security Administration.

(2) Such guidelines shall include the following:

(A) Criteria for the inclusion of projects in the program,

and for establishing priorities among projects included in the

program.

(B) Mechanisms for the management of facilities under

the program, including maintenance activities referred to in

subparagraph (C).

(C) A description of the scope of maintenance activities

under the program, including recurring maintenance, construction of facilities, recapitalization of facilities, and decontamination and decommissioning of facilities.

(3) Such guidelines shall ensure that the maintenance activities

referred to in paragraph (2)(C) are carried out in a timely and

efficient manner designed to avoid maintenance backlogs.

(d) OPERATIONS OF FACILITIES PROGRAM.—(1) The Administrator shall continue the Operations of Facilities program of the

National Nuclear Security Administration as a subprogram within

the Readiness in Technical Base and Facilities program.

(2) The Deputy Administrator for Defense Programs shall designate a single manager to be responsible for overseeing the operations of the Operations of Facilities subprogram within the Readiness in Technical Base and Facilities program.

(3) For fiscal year 2005, and for each fiscal year thereafter,

the Secretary of Energy shall submit to the congressional defense
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committees, together with the budget justification materials submitted to Congress in support of the National Nuclear Security

Administration budget for that fiscal year (as submitted with the

budget of the President under section 1105(a) of title 31, United

States Code), a separate statement of the amounts requested for

such fiscal year for each element of the Operations of Facilities

subprogram, as follows:

(A) Maintenance.

(B) Facilities management and support.

(C) Utilities.

(D) Environment, safety, and health.

(E) Each other element of the subprogram.

SEC. 3115. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF LEGACY NUCLEAR MATERIALS.

(a) CONTINUATION OF H–CANYON FACILITY.—Subsection (a) of

section 3137 of the Floyd D. Spence National Defense Authorization

Act for Fiscal Year 2001 (as enacted into law by Public Law 106–

398; 114 Stat. 1654A–460) is amended—

(1) by striking ‘‘F–canyon and H–canyon facilities’’ and

inserting ‘‘H–canyon facility’’; and

(2) by striking ‘‘such facilities’’ and inserting ‘‘such facility’’.

(b) MODIFICATION OF LIMITATION ON USE OF FUNDS FOR

DECOMMISSIONING F–CANYON FACILITY.—Subsection (b) of such section is amended—

(1) by striking ‘‘and the Defense Nuclear Facilities Safety

Board’’ and all that follows through ‘‘House of Representatives’’

and inserting ‘‘submits to the Committee on Armed Services

of the Senate and the Committee on Armed Services of the

House of Representatives, and the Defense Nuclear Facilities

Safety Board,’’; and

(2) by striking ‘‘the following:’’ and all that follows and

inserting ‘‘a report setting forth—

‘‘(1) an assessment whether or not all materials present

in the F–canyon facility as of the date of the report that

required stabilization have been safely stabilized as of that

date;

‘‘(2) an assessment whether or not the requirements

applicable to the F–canyon facility to meet the future needs

of the United States for fissile materials disposition can be

met through full use of the H–canyon facility at the Savannah

River Site; and

‘‘(3) if it appears that one or more of the requirements

described in paragraph (2) cannot be met through full use

of the H–canyon facility—

‘‘(A) an identification by the Secretary of each such

requirement that cannot be met through full use of the

H–canyon facility; and

‘‘(B) for each requirement so identified, the reasons

why such requirement cannot be met through full use

of the H–canyon facility and a description of the alternative

capability for fissile materials disposition that is needed

to meet such requirement.’’.

(c) REPEAL OF SUPERSEDED PLAN REQUIREMENT.—Subsection

(c) of such section is repealed.
H. R. 1588—355

SEC. 3116. REPEAL OF PROHIBITION ON RESEARCH AND DEVELOPMENT OF LOW-YIELD NUCLEAR WEAPONS.

(a) REPEAL.—Section 3136 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 1946;

42 U.S.C. 2121 note) is repealed.

(b) CONSTRUCTION.—Nothing in the repeal made by subsection

(a) shall be construed as authorizing the testing, acquisition, or

deployment of a low-yield nuclear weapon.

(c) LIMITATION.—The Secretary of Energy may not commence

the engineering development phase, or any subsequent phase, of

a low-yield nuclear weapon unless specifically authorized by Congress.

(d) REPORT.—(1) Not later than March 1, 2004, the Secretary

of State, the Secretary of Defense and the Secretary of Energy

shall jointly submit to Congress a report assessing whether or

not the repeal of section 3136 of the National Defense Authorization

Act for Fiscal Year 1994 will affect the ability of the United States

to achieve its nonproliferation objectives and whether or not any

changes in programs and activities would be required to achieve

those objectives.

(2) The report shall be submitted in unclassified form, but

may include a classified annex if necessary.

SEC. 3117. REQUIREMENT FOR SPECIFIC AUTHORIZATION OF CONGRESS FOR COMMENCEMENT OF ENGINEERING

DEVELOPMENT PHASE OR SUBSEQUENT PHASE OF

ROBUST NUCLEAR EARTH PENETRATOR.

The Secretary of Energy may not commence the engineering

development phase (phase 6.3) of the nuclear weapons development

process, or any subsequent phase, of a Robust Nuclear Earth Penetrator weapon unless specifically authorized by Congress.

Subtitle C—Proliferation Matters

SEC. 3121. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR

NONPROLIFERATION PROGRAMS.

(a) IN GENERAL.—Subtitle D of the National Nuclear Security

Administration Act is amended by inserting after section 3253

(50 U.S.C. 2453) the following new section:

‘‘SEC. 3254. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR

NONPROLIFERATION PROGRAMS.

‘‘(a) SEMIANNUAL REPORTS REQUIRED.—The Administrator shall

submit to the Committees on Armed Services of the Senate and

the House of Representatives a semiannual report on the amounts

available for the defense nuclear nonproliferation programs of the

Administration. Each such report shall cover a half of a fiscal

year (in this section referred to as a ‘fiscal half’) and shall be

submitted not later than 30 days after the end of that fiscal half. ‘‘(b) CONTENTS.—Each report for a fiscal half shall, for each

such defense nuclear nonproliferation program for which amounts

are available for the fiscal year that includes that fiscal half, set

forth the following: ‘‘(1) The aggregate amount available for such program as

of the beginning of such fiscal half and, within such amount,

the uncommitted balances, the unobligated balances, and the

unexpended balances.
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‘‘(2) The aggregate amount newly made available for such

program during such fiscal half and, within such amount, the

amount made available by appropriations, by transfers, by

reprogrammings, and by other means.

‘‘(3) The aggregate amount available for such program as

of the end of such fiscal half and, within such amount, the

uncommitted balances, the unobligated balances, and the unexpended balances.’’.

(b) FIRST REPORT.—The first report required to be submitted

by section 3254 of the National Nuclear Security Administration

Act (as added by subsection (a)) shall be the report covering the

first half of fiscal year 2004.

SEC. 3122. REPORT ON REDUCTION OF EXCESSIVE UNOBLIGATED OR

UNEXPENDED BALANCES FOR DEFENSE NUCLEAR NONPROLIFERATION ACTIVITIES.

(a) CONTINGENT REQUIREMENT FOR REPORT.—If as of September

30, 2004, the aggregate amount unobligated, or obligated but not

expended, for defense nuclear nonproliferation activities from

amounts appropriated for such activities in fiscal year 2004 exceeds

an amount equal to 20 percent of the aggregate amount appropriated for such activities in fiscal year 2004, the Administrator

for Nuclear Security shall submit to the Committees on Armed

Services of the Senate and the House of Representatives a report

containing an aggressive plan to provide for the timely expenditure

of amounts remaining unobligated, or obligated but not expended.

(b) SUBMITTAL DATE.—If required to be submitted under subsection (a), the submittal date for the report under that subsection

shall be November 30, 2004.

SEC. 3123. STUDY AND REPORT RELATING TO WEAPONS-GRADE URANIUM AND PLUTONIUM OF THE INDEPENDENT STATES

OF THE FORMER SOVIET UNION.

(a) STUDY REQUIRED.—The Secretary of Energy shall carry

out a study on the feasibility, costs, and benefits of—

(1) purchasing, from the independent states of the former

Soviet Union, weapons-grade uranium and plutonium excess

to the defense needs of those states; and

(2) safeguarding the uranium and plutonium so purchased

until rendered unusable for nuclear weapons.

(b) REPORT.—Not later than one year after the date of the

enactment of this Act, the Secretary shall submit to Congress

a report on the results of the study required by subsection (a).

SEC. 3124. AUTHORITY TO USE INTERNATIONAL NUCLEAR MATERIALS

PROTECTION AND COOPERATION PROGRAM FUNDS OUTSIDE THE FORMER SOVIET UNION.

(a) AUTHORITY.—Subject to the provisions of this section, the

President may obligate and expend international nuclear materials

protection and cooperation program funds for a fiscal year, and

any such funds for a fiscal year before such fiscal year that remain

available for obligation, for a defense nuclear nonproliferation

project or activity outside the states of the former Soviet Union

if the President determines each of the following:

(1) That such project or activity will—

(A)(i) assist the United States in the resolution of

a critical emerging proliferation threat; or
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(ii) permit the United States to take advantage of

opportunities to achieve long-standing nonproliferation

goals; and

(B) be completed in a short period of time.

(2) That the Department of Energy is the entity of the

Federal Government that is most capable of carrying out such

project or activity.

(b) SCOPE OF AUTHORITY.—The authority in subsection (a) to

obligate and expend funds for a project or activity includes authority

to provide equipment, goods, and services for such project or activity

utilizing such funds, but does not include authority to provide

cash directly to such project or activity.

(c) LIMITATION ON TOTAL AMOUNT OF OBLIGATION.—The

amount that may be obligated in a fiscal year under the authority

in subsection (a) may not exceed $50,000,000.

(d) LIMITATION ON AVAILABILITY OF FUNDS.—(1) The President

may not obligate funds for a project or activity under the authority

in subsection (a) until the President makes each determination

specified in that subsection with respect to such project or activity.

(2) Not later than 10 days after obligating funds under the

authority in subsection (a) for a project or activity, the President

shall notify Congress in writing of the determinations made under

paragraph (1) with respect to such project or activity, together

with—

(A) a justification for such determinations; and

(B) a description of the scope and duration of such project

or activity.

(e) ADDITIONAL LIMITATIONS AND REQUIREMENTS.—Except as

otherwise provided in subsections (a) and (b), the exercise of the

authority in subsection (a) shall be subject to any requirement

or limitation under another provision of law as follows:

(1) Any requirement for prior notice or other reports to

Congress on the use of international nuclear materials protection and cooperation program funds or on international nuclear

materials protection and cooperation program projects or activities.

(2) Any limitation on the obligation or expenditure of international nuclear materials protection and cooperation program

funds.

(3) Any limitation on international nuclear materials

protection and cooperation program projects or activities.

(f) FUNDS.—As used in this section, the term ‘‘international

nuclear materials protection and cooperation program funds’’ means

the funds appropriated pursuant to the authorization of appropriations in section 3101(a)(2) for such program.

SEC. 3125. REQUIREMENT FOR ON-SITE MANAGERS.

(a) ON-SITE MANAGER REQUIREMENT.—Before obligating any

defense nuclear nonproliferation funds for a project described in

subsection (b), the Secretary of Energy shall appoint one on-site

manager for that project. The manager shall be appointed from

among employees of the Federal Government.

(b) PROJECTS COVERED.—Subsection (a) applies to a project—

(1) to be located in a state of the former Soviet Union;

(2) which involves dismantlement, destruction, or storage

facilities, or construction of a facility; and
H. R. 1588—358

(3) with respect to which the total contribution by the

Department of Energy is expected to exceed $50,000,000.

(c) DUTIES OF ON-SITE MANAGER.—The on-site manager

appointed under subsection (a) shall—

(1) develop, in cooperation with representatives from

governments of countries participating in the project, a list

of those steps or activities critical to achieving the project’s

disarmament or nonproliferation goals;

(2) establish a schedule for completing those steps or activities;

(3) meet with all participants to seek assurances that those

steps or activities are being completed on schedule; and

(4) suspend United States participation in a project when

a non-United States participant fails to complete a scheduled

step or activity on time, unless directed by the Secretary of

Energy to resume United States participation.

(d) AUTHORITY TO MANAGE MORE THAN ONE PROJECT.—(1)

Subject to paragraph (2), an employee of the Federal Government

may serve as on-site manager for more than one project, including

projects at different locations.

(2) If such an employee serves as on-site manager for more

than one project in a fiscal year, the total cost of the projects

for that fiscal year may not exceed $150,000,000.

(e) STEPS OR ACTIVITIES.—Steps or activities referred to in

subsection (c)(1) are those activities that, if not completed, will

prevent a project from achieving its disarmament or nonproliferation goals, including, at a minimum, the following:

(1) Identification and acquisition of permits (as defined

in subsection (g)).

(2) Verification that the items, substances, or capabilities

to be dismantled, secured, or otherwise modified are available

for dismantlement, securing, or modification.

(3) Timely provision of financial, personnel, management,

transportation, and other resources.

(f) NOTIFICATION TO CONGRESS.—In any case in which the

Secretary of Energy directs an on-site manager to resume United

States participation in a project under subsection (c)(4), the Secretary shall concurrently notify Congress of such direction.

(g) PERMIT DEFINED.—In this section, the term ‘‘permit’’ means

any local or national permit for development, general construction,

environmental, land use, or other purposes that is required in

the state of the former Soviet Union in which the project is being

or is proposed to be carried out.

(h) EFFECTIVE DATE.—This section shall take effect six months

after the date of the enactment of this Act.

Subtitle D—Other Matters

SEC. 3131. PERFORMANCE OF PERSONNEL SECURITY INVESTIGATIONS

OF CERTAIN DEPARTMENT OF ENERGY AND NUCLEAR

REGULATORY COMMISSION EMPLOYEES IN SENSITIVE

PROGRAMS.

(a) PERFORMANCE BY FBI AT DIRECTION OF DOE OR NRC.—

Subsection f. of section 145 of the Atomic Energy Act of 1954

(42 U.S.C. 2165) is amended to read as follows:
H. R. 1588—359

‘‘f. (1) Notwithstanding the provisions of subsections a., b.,

and c. of this section, but subject to subsection e. of this section,

a majority of the members of the Commission may direct that

an investigation required by such provisions on an individual

described in paragraph (2) be carried out by the Federal Bureau

of Investigation rather than by the Civil Service Commission.

‘‘(2) An individual described in this paragraph is an individual

who is employed—

‘‘(A) in a program certified by a majority of the members

of the Commission to be of a high degree of importance or

sensitivity; or

‘‘(B) in any other specific position certified by a majority

of the members of the Commission to be of a high degree

of importance or sensitivity.’’.

(b) REPEAL OF REQUIREMENT FOR PERFORMANCE BY FBI FOR

PERSONNEL SECURITY AND ASSURANCE PROGRAMS.—Subsection e.(2)

of such section is amended by striking ‘‘or a Personnel Security

and Assurance Program’’.

SEC. 3132. POLICY OF DEPARTMENT OF ENERGY REGARDING FUTURE

DEFENSE ENVIRONMENTAL MANAGEMENT MATTERS.

(a) POLICY REQUIRED.—(1) Commencing not later than October

1, 2005, the Secretary of Energy shall have in effect a policy

for carrying out future defense environmental management matters

of the Department of Energy. The policy shall specify each officer

within the Department with responsibilities for carrying out that

policy and, for each such officer, the nature and extent of those

responsibilities.

(2) In paragraph (1), the term ‘‘future defense environmental

management matter’’ means any environmental cleanup project,

decontamination and decommissioning project, waste management

project, or related activity that arises out of the activities of the

Department in carrying out programs necessary for national security and is to be commenced after the date of the enactment of

this Act. However, such term does not include any such project

or activity the responsibility for which has been assigned, as of

the date of the enactment of this Act, to the Environmental Management program of the Department.

(b) REFLECTION IN BUDGET.—For fiscal year 2006 and each

fiscal year thereafter, the Secretary shall ensure that the budget

justification materials submitted to Congress in support of the

Department of Energy budget for such fiscal year (as submitted

with the budget of the President under section 1105(a) of title

31, United States Code) reflect the policy required by subsection

(a).

(c) CONSULTATION.—The Secretary shall carry out this section

in consultation with the Administrator for Nuclear Security and

the Under Secretary of Energy for Energy, Science, and Environment.

(d) REPORT.—The Secretary shall include with the budget justification materials submitted to Congress in support of the Department of Energy budget for fiscal year 2005 (as submitted with

the budget of the President under section 1105(a) of title 31, United

States Code) a report on the policy that the Secretary plans to

have in effect under subsection (a) as of October 1, 2005. The

report shall specify the officers and responsibilities referred to in

subsection (a).
H. R. 1588—360

SEC. 3133. INCLUSION IN 2005 STOCKPILE STEWARDSHIP PLAN OF CERTAIN INFORMATION RELATING TO STOCKPILE STEWARDSHIP CRITERIA.

(a) INCLUSION IN 2005 STOCKPILE STEWARDSHIP PLAN.—In

submitting to Congress the updated version of the 2005 stockpile

stewardship plan, the Secretary of Energy shall include the matters

specified in subsection (b).

(b) MATTERS INCLUDED.—The matters referred to in subsection

(a) are the following:

(1) An update of any information or criteria described in

the report on stockpile stewardship criteria submitted under

section 4202 of the Atomic Energy Defense Act (as transferred

and redesignated by section 3161(e)(3) of this Act).

(2) A description of any additional information identified,

or criteria established, on matters covered by such section

4202 during the period beginning on the date of the submittal

of the report under such section 4202 and ending on the date

of the submittal of the updated version of the plan under

subsection (a) of this section.

(3) For each science-based tool developed by the Department of Energy during such period— (A) a description of the relationship of such sciencebased tool to the collection of information needed to determine that the nuclear weapons stockpile is safe and reliable; and

(B) a description of the criteria for judging whether

or not such science-based tool provides for the collection

of such information.

(c) 2005 STOCKPILE STEWARDSHIP PLAN DEFINED.—In this section, the term ‘‘2005 stockpile stewardship plan’’ means the updated

version of the plan for maintaining the nuclear weapons stockpile

developed under section 4203 of the Atomic Energy Defense Act

(as transferred and redesignated by section 3161(e)(4) of this Act)

that is required to be submitted to Congress not later than March

15, 2005.

SEC. 3134. PROGRESS REPORTS ON ENERGY EMPLOYEES OCCUPATIONAL ILLNESS COMPENSATION PROGRAM.

(a) REPORT ON ACCESS TO INFORMATION FOR PERFORMANCE

OF RADIATION DOSE RECONSTRUCTIONS.—(1) Not later than 90 days

after the date of the enactment of this Act, the National Institute

for Occupational Safety and Health shall submit to Congress a

report on the ability of the Institute to obtain, in a timely, accurate,

and complete manner, information necessary for the purpose of

carrying out radiation dose reconstructions under the Energy

Employees Occupational Illness Compensation Program Act of 2000

(42 U.S.C. 7384 et seq.), including information requested from any

element of the Department of Energy.

(2) The report shall include the following:

(A) An identification of each matter adversely affecting

the ability of the Institute to obtain information described

in paragraph (1) in a timely, accurate, and complete manner.

(B) For each facility with respect to which the Institute

is carrying out one or more dose reconstructions described

in paragraph (1)—

(i) a specification of the total number of claims

requiring dose reconstruction;
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(ii) a specification of the number of claims for which

dose reconstruction has been adversely affected by any

matter identified under paragraph (1); and

(iii) a specification of the number of claims requiring

dose reconstruction for which, because of any matter identified under paragraph (1), dose reconstruction has not been

completed within 150 days after the date on which the

Secretary of Labor submitted the claim to the Secretary

of Health and Human Services.

(b) REPORT ON DENIAL OF CLAIMS.—(1) Not later than 90 days

after the date of the enactment of this Act, the Secretary of Labor

shall submit to Congress a report on the denial of claims under

the Energy Employees Occupational Illness Compensation Program

Act of 2000 as of the date of such report.

(2) The report shall include for each facility with respect to

which the Secretary has received one or more claims under that

Act the following:

(A) The number of claims received with respect to such

facility that have been denied, including the percentage of

the total number of claims received with respect to such facility

that have been denied.

(B) The reasons for the denial of such claims, including

the number of claims denied for each such reason.

SEC. 3135. REPORT ON INTEGRATION ACTIVITIES OF DEPARTMENT

OF DEFENSE AND DEPARTMENT OF ENERGY WITH

RESPECT TO ROBUST NUCLEAR EARTH PENETRATOR.

Section 1032 of the Bob Stump National Defense Authorization

Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2643;

10 U.S.C. 2358 note) is amended by adding at the end the following

new subsection:

‘‘(e) INTEGRATION ACTIVITIES IN FISCAL YEAR 2003 WITH

RESPECT TO RNEP.—The report under subsection (a) that is due

on April 1, 2004, shall include, in addition to the elements specified

in subsection (b), a description of the integration and interoperability of the research and development, procurement, and other

activities undertaken during fiscal year 2003 by the Department

of Defense and the Department of Energy with respect to the

Robust Nuclear Earth Penetrator.’’.

Subtitle E—Consolidation of National

Security Provisions

SEC. 3141. TRANSFER AND CONSOLIDATION OF RECURRING AND GENERAL PROVISIONS ON DEPARTMENT OF ENERGY

NATIONAL SECURITY PROGRAMS.

(a) PURPOSE.— (1) IN GENERAL.—The purpose of this section is to assemble

together, without substantive amendment but with technical

and conforming amendments of a non-substantive nature,

recurring and general provisions of law on Department of

Energy national security programs that remain in force in

order to consolidate and organize such provisions of law into

a single Act intended to comprise general provisions of law

on such programs.
H. R. 1588—362

(2) CONSTRUCTION OF TRANSFERS.—The transfer of a provision of law by this section shall not be construed as amending,

altering, or otherwise modifying the substantive effect of such

provision.

(3) TREATMENT OF SATISFIED REQUIREMENTS.—Any requirement in a provision of law transferred under this section

(including a requirement that an amendment to law be

executed) that has been fully satisfied in accordance with the

terms of such provision of law as of the date of transfer under

this section shall be treated as so fully satisfied, and shall

not be treated as being revived solely by reason of transfer

under this section.

(4) CLASSIFICATION.—The provisions of the Atomic Energy

Defense Act, as amended by this section, shall be classified

to the United States Code as a new chapter of title 50, United

States Code.

(b) DIVISION HEADING.—The Bob Stump National Defense

Authorization Act for Fiscal Year 2003 (Public Law 107–314) is

amended by adding at the end the following new division heading:

‘‘DIVISION D—ATOMIC ENERGY

DEFENSE PROVISIONS’’.

(c) SHORT TITLE; TABLE OF CONTENTS; DEFINITION.—

(1) SHORT TITLE; TABLE OF CONTENTS.—Section 3601 of

the Atomic Energy Defense Act (title XXXVI of Public Law

107–314; 116 Stat. 2756), is—

(A) transferred to the end of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003;

(B) redesignated as section 4001;

(C) inserted after the heading for division D of the

Bob Stump National Defense Authorization Act for Fiscal

Year 2003, as added by subsection (b); and

(D) amended—

(i) by amending the heading to read as follows:

‘‘SEC. 4001. SHORT TITLE; TABLE OF CONTENTS.’’;

(ii) by striking ‘‘This title’’ and inserting ‘‘(a) SHORT

TITLE.—This division’’; and

(iii) by adding at the end the following:

‘‘(b) TABLE OF CONTENTS.—The table of contents for this division

is as follows:

‘‘DIVISION D—ATOMIC ENERGY DEFENSE PROVISIONS

‘‘Sec. 4001. Short title; table of contents.

‘‘Sec. 4002. Definition.

‘‘TITLE XLI—ORGANIZATIONAL MATTERS

‘‘Sec. 4101. Naval Nuclear Propulsion Program.

‘‘Sec. 4102. Management structure for nuclear weapons production facilities and

nuclear weapons laboratories. ‘‘Sec. 4103. Restriction on licensing requirement for certain defense activities and

facilities.

‘‘TITLE XLII—NUCLEAR WEAPONS STOCKPILE MATTERS

‘‘Subtitle A—Stockpile Stewardship and Weapons Production

‘‘Sec. 4201. Stockpile stewardship program.
H. R. 1588—363

‘‘Sec. 4202. Report on stockpile stewardship criteria.

‘‘Sec. 4203. Plan for stewardship, management, and certification of warheads in the

nuclear weapons stockpile. ‘‘Sec. 4204. Nuclear weapons stockpile life extension program.

‘‘Sec. 4205. Annual assessments and reports to the President and Congress regarding the condition of the United States nuclear weapons stockpile. ‘‘Sec. 4206. Form of certifications regarding the safety or reliability of the nuclear

weapons stockpile. ‘‘Sec. 4207. Nuclear test ban readiness program.

‘‘Sec. 4208. Study on nuclear test readiness postures.

‘‘Sec. 4209. Requirements for specific request for new or modified nuclear weapons.

‘‘Sec. 4210. Limitation on underground nuclear weapons tests.

‘‘Sec. 4211. Testing of nuclear weapons.

‘‘Sec. 4212. Manufacturing infrastructure for refabrication and certification of nuclear weapons stockpile. ‘‘Sec. 4213. Reports on critical difficulties at nuclear weapons laboratories and nuclear weapons production plants.

‘‘Subtitle B—Tritium

‘‘Sec. 4231. Tritium production program.

‘‘Sec. 4232. Tritium recycling.

‘‘Sec. 4233. Tritium production.

‘‘Sec. 4234. Modernization and consolidation of tritium recycling facilities.

‘‘Sec. 4235. Procedures for meeting tritium production requirements.

‘‘TITLE XLIII—PROLIFERATION MATTERS

‘‘Sec. 4301. International cooperative stockpile stewardship.

‘‘Sec. 4302. Nonproliferation initiatives and activities.

‘‘Sec. 4303. Annual report on status of Nuclear Materials Protection, Control, and

Accounting Program. ‘‘Sec. 4304. Nuclear Cities Initiative.

‘‘Sec. 4305. Authority to conduct program relating to fissile materials.

‘‘Sec. 4306. Disposition of weapons-usable plutonium at Savannah River Site.

‘‘Sec. 4306A. Disposition of surplus defense plutonium at Savannah River Site,

Aiken, South Carolina.

‘‘TITLE XLIV—ENVIRONMENTAL RESTORATION AND WASTE

MANAGEMENT MATTERS

‘‘Subtitle A—Environmental Restoration and Waste Management

‘‘Sec. 4401. Defense Environmental Restoration and Waste Management Account.

‘‘Sec. 4402. Requirement to develop future use plans for environmental management program. ‘‘Sec. 4403. Integrated fissile materials management plan.

‘‘Sec. 4404. Baseline environmental management reports.

‘‘Sec. 4405. Accelerated schedule for environmental restoration and waste management activities. ‘‘Sec. 4406. Defense waste cleanup technology program.

‘‘Sec. 4407. Report on environmental restoration expenditures.

‘‘Sec. 4408. Public participation in planning for environmental restoration and

waste management at defense nuclear facilities.

‘‘Subtitle B—Closure of Facilities

‘‘Sec. 4421. Projects to accelerate closure activities at defense nuclear facilities.

‘‘Sec. 4422. Reports in connection with permanent closures of Department of Energy defense nuclear facilities.

‘‘Subtitle C—Privatization

‘‘Sec. 4431. Defense environmental management privatization projects.

‘‘Subtitle D—Hanford Reservation, Washington

‘‘Sec. 4441. Safety measures for waste tanks at Hanford nuclear reservation.

‘‘Sec. 4442. Hanford waste tank cleanup program reforms.

‘‘Sec. 4443. River Protection Project.

‘‘Sec. 4444. Funding for termination costs of River Protection Project, Richland,

Washington.

‘‘Subtitle E—Savannah River Site, South Carolina

‘‘Sec. 4451. Accelerated schedule for isolating high-level nuclear waste at the defense waste processing facility, Savannah River Site.
H. R. 1588—364

‘‘Sec. 4452. Multi-year plan for clean-up.

‘‘Sec. 4453. Continuation of processing, treatment, and disposal of legacy nuclear

materials. ‘‘Sec. 4453A. Continuation of processing, treatment, and disposition of legacy nuclear materials. ‘‘Sec. 4453B. Continuation of processing, treatment, and disposition of legacy nuclear materials. ‘‘Sec. 4453C. Continuation of processing, treatment, and disposal of legacy nuclear

materials. ‘‘Sec. 4453D. Continuation of processing, treatment, and disposal of legacy nuclear

materials. ‘‘Sec. 4454. Limitation on use of funds for decommissioning F–canyon facility.

‘‘TITLE XLV—SAFEGUARDS AND SECURITY MATTERS

‘‘Subtitle A—Safeguards and Security

‘‘Sec. 4501. Prohibition on international inspections of Department of Energy facilities unless protection of Restricted Data is certified. ‘‘Sec. 4502. Restrictions on access to national laboratories by foreign visitors from

sensitive countries. ‘‘Sec. 4503. Background investigations of certain personnel at Department of Energy facilities. ‘‘Sec. 4504. Department of Energy counterintelligence polygraph program.

‘‘Sec. 4504A. Counterintelligence polygraph program.

‘‘Sec. 4505. Notice to congressional committees of certain security and counterintelligence failures within nuclear energy defense programs. ‘‘Sec. 4506. Submittal of annual report on status of security functions at nuclear

weapons facilities. ‘‘Sec. 4507. Report on counterintelligence and security practices at national laboratories. ‘‘Sec. 4508. Report on security vulnerabilities of national laboratory computers.

‘‘Subtitle B—Classified Information

‘‘Sec. 4521. Review of certain documents before declassification and release.

‘‘Sec. 4522. Protection against inadvertent release of Restricted Data and Formerly

Restricted Data. ‘‘Sec. 4523. Supplement to plan for declassification of Restricted Data and Formerly

Restricted Data. ‘‘Sec. 4524. Protection of classified information during laboratory-to-laboratory exchanges. ‘‘Sec. 4525. Identification in budget materials of amounts for declassification activities and limitation on expenditures for such activities.

‘‘Subtitle C—Emergency Response

‘‘Sec. 4541. Responsibility for Defense Programs Emergency Response Program.

‘‘TITLE XLVI—PERSONNEL MATTERS

‘‘Subtitle A—Personnel Management

‘‘Sec. 4601. Authority for appointment of certain scientific, engineering, and technical personnel. ‘‘Sec. 4602. Whistleblower protection program.

‘‘Sec. 4603. Employee incentives for employees at closure project facilities.

‘‘Sec. 4604. Department of Energy defense nuclear facilities workforce restructuring

plan. ‘‘Sec. 4605. Authority to provide certificate of commendation to Department of Energy and contractor employees for exemplary service in stockpile stewardship and security.

‘‘Subtitle B—Education and Training

‘‘Sec. 4621. Executive management training in the Department of Energy.

‘‘Sec. 4622. Stockpile stewardship recruitment and training program.

‘‘Sec. 4623. Fellowship program for development of skills critical to the Department

of Energy nuclear weapons complex.

‘‘Subtitle C—Worker Safety

‘‘Sec. 4641. Worker protection at nuclear weapons facilities.

‘‘Sec. 4642. Safety oversight and enforcement at defense nuclear facilities.

‘‘Sec. 4643. Program to monitor Department of Energy workers exposed to hazardous and radioactive substances. ‘‘Sec. 4644. Programs for persons who may have been exposed to radiation released

from Hanford nuclear reservation.
H. R. 1588—365

‘‘TITLE XLVII—BUDGET AND FINANCIAL MANAGEMENT MATTERS

‘‘Subtitle A—Recurring National Security Authorization Provisions

‘‘Sec. 4701. Definitions.

‘‘Sec. 4702. Reprogramming.

‘‘Sec. 4703. Minor construction projects.

‘‘Sec. 4704. Limits on construction projects.

‘‘Sec. 4705. Fund transfer authority.

‘‘Sec. 4706. Conceptual and construction design.

‘‘Sec. 4707. Authority for emergency planning, design, and construction activities.

‘‘Sec. 4708. Scope of authority to carry out plant projects.

‘‘Sec. 4709. Availability of funds.

‘‘Sec. 4710. Transfer of defense environmental management funds.

‘‘Sec. 4711. Transfer of weapons activities funds.

‘‘Sec. 4712. Funds available for all national security programs of the Department

of Energy.

‘‘Subtitle B—Penalties

‘‘Sec. 4721. Restriction on use of funds to pay penalties under environmental laws.

‘‘Sec. 4722. Restriction on use of funds to pay penalties under Clean Air Act.

‘‘Subtitle C—Other Matters

‘‘Sec. 4731. Single request for authorization of appropriations for common defense

and security programs.

‘‘TITLE XLVIII—ADMINISTRATIVE MATTERS

‘‘Subtitle A—Contracts

‘‘Sec. 4801. Costs not allowed under covered contracts.

‘‘Sec. 4802. Prohibition and report on bonuses to contractors operating defense nuclear facilities. ‘‘Sec. 4803. Contractor liability for injury or loss of property arising out of atomic

weapons testing programs.

‘‘Subtitle B—Research and Development

‘‘Sec. 4811. Laboratory–directed research and development programs. ‘‘Sec. 4812. Limitations on use of funds for laboratory directed research and development purposes. ‘‘Sec. 4812A. Limitation on use of funds for certain research and development purposes. ‘‘Sec. 4813. Critical technology partnerships.

‘‘Sec. 4814. University-based research collaboration program.

‘‘Subtitle C—Facilities Management

‘‘Sec. 4831. Transfers of real property at certain Department of Energy facilities.

‘‘Sec. 4832. Engineering and manufacturing research, development, and demonstration by plant managers of certain nuclear weapons production plants. ‘‘Sec. 4833. Pilot program relating to use of proceeds of disposal or utilization of

certain Department of Energy assets.

‘‘Subtitle D—Other Matters

‘‘Sec. 4851. Semiannual reports on local impact assistance.

‘‘Sec. 4852. Payment of costs of operation and maintenance of infrastructure at Nevada Test Site.’’.

(2) DEFINITION.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new section:

‘‘SEC. 4002. DEFINITION.

‘‘In this division, the term ‘congressional defense committees’

means—

‘‘(1) the Committee on Armed Services and the Committee

on Appropriations of the Senate; and ‘‘(2) the Committee on Armed Services and the Committee

on Appropriations of the House of Representatives.’’. (d) ORGANIZATIONAL MATTERS.—
H. R. 1588—366

(1) TITLE HEADING.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following:

‘‘TITLE XLI—ORGANIZATIONAL

MATTERS’’.

(2) NAVAL NUCLEAR PROPULSION PROGRAM.—Section 1634

of the Department of Defense Authorization Act, 1985 (Public

Law 98–525; 98 Stat. 2649), is—

(A) transferred to title XLI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as added

by paragraph (1);

(B) inserted after the title heading for such title, as

so added; and

(C) amended—

(i) by striking the section heading and inserting

the following new section heading:

‘‘SEC. 4101. NAVAL NUCLEAR PROPULSION PROGRAM.’’;

and

(ii) by striking ‘‘SEC. 1634.’’.

(3) MANAGEMENT STRUCTURE FOR FACILITIES AND LABORATORIES.—Section 3140 of the National Defense Authorization

Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2833),

is—

(A) transferred to title XLI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4102;

(C) inserted after section 4101, as added by paragraph

(2); and

(D) amended in subsection (d)(2), by striking ‘‘120 days

after the date of the enactment of this Act,’’ and inserting

‘‘January 21, 1997,’’.

(4) RESTRICTION ON LICENSING REQUIREMENTS FOR CERTAIN

ACTIVITIES AND FACILITIES.—Section 210 of the Department of

Energy National Security and Military Applications of Nuclear

Energy Authorization Act of 1981 (Public Law 96–540; 94 Stat.

3202), is—

(A) transferred to title XLI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) inserted after section 4102, as added by paragraph

(3); and

(C) amended—

(i) by striking the section heading and inserting

the following new section heading:

‘‘SEC. 4103. RESTRICTION ON LICENSING REQUIREMENT FOR CERTAIN

DEFENSE ACTIVITIES AND FACILITIES.’’;

(ii) by striking ‘‘SEC. 210.’’; and

(iii) by striking ‘‘this or any other Act’’ and

inserting ‘‘the Department of Energy National Security

and Military Applications of Nuclear Energy
H. R. 1588—367

Authorization Act of 1981 (Public Law 96–540) or any

other Act’’.

(e) NUCLEAR WEAPONS STOCKPILE MATTERS.—

(1) HEADINGS.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new headings:

‘‘TITLE XLII—NUCLEAR WEAPONS

STOCKPILE MATTERS

‘‘Subtitle A—Stockpile Stewardship and

Weapons Production’’.

(2) STOCKPILE STEWARDSHIP PROGRAM.—Section 3138 of the

National Defense Authorization Act for Fiscal Year 1994 (Public

Law 103–160; 107 Stat. 1946), as amended by section 3152(e)

of the National Defense Authorization Act for Fiscal Year 1998

(Public Law 105–85; 111 Stat. 2042), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as added

by paragraph (1);

(B) redesignated as section 4201; and

(C) inserted after the heading for subtitle A of such

title, as so added.

(3) STOCKPILE STEWARDSHIP CRITERIA.—Section 3158 of the

Strom Thurmond National Defense Authorization Act for Fiscal

Year 1999 (Public Law 105–261; 112 Stat. 2257), as amended,

is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4202; and

(C) inserted after section 4201, as added by paragraph

(2).

(4) PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF WARHEADS IN STOCKPILE.—Section 3151 of the

National Defense Authorization Act for Fiscal Year 1998 (Public

Law 105–85; 111 Stat. 2041), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4203; and

(C) inserted after section 4202, as added by paragraph

(3).

(5) STOCKPILE LIFE EXTENSION PROGRAM.—Section 3133 of

the National Defense Authorization Act for Fiscal Year 2000

(Public Law 106–65; 113 Stat. 926), is— (A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4204;

(C) inserted after section 4203, as added by paragraph

(4); and
H. R. 1588—368

(D) amended in subsection (c)(1) by striking ‘‘the date

of the enactment of this Act’’ and inserting ‘‘October 5,

1999’’.

(6) ANNUAL ASSESSMENTS AND REPORTS ON CONDITION OF

STOCKPILE.—Section 3141 of the Bob Stump National Defense

Authorization Act for Fiscal Year 2003 (Public Law 107–314;

116 Stat. 2730), is—

(A) transferred to title XLII of such Act, as amended

by this subsection;

(B) redesignated as section 4205;

(C) inserted after section 4204, as added by paragraph

(5); and

(D) amended in subsection (d)(3)(B) by striking ‘‘section

3137 of the National Defense Authorization Act for Fiscal

Year 1996 (42 U.S.C. 2121 note)’’ and inserting ‘‘section

4212’’.

(7) FORM OF CERTAIN CERTIFICATIONS REGARDING STOCKPILE.—Section 3194 of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted into law

by Public Law 106–398; 114 Stat. 1654A–481), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4206; and

(C) inserted after section 4205, as added by paragraph

(6).

(8) NUCLEAR TEST BAN READINESS PROGRAM.—Section 1436

of the National Defense Authorization Act, Fiscal Year 1989

(Public Law 100–456; 102 Stat. 2075), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4207;

(C) inserted after section 4206, as added by paragraph

(7); and

(D) amended in the section heading by adding a period

at the end.

(9) STUDY ON NUCLEAR TEST READINESS POSTURES.—Section

3152 of the National Defense Authorization Act for Fiscal Year

1996 (Public Law 104–106; 110 Stat. 623), as amended by

section 3192 of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted into law

by Public Law 106–398; 114 Stat. 1654A–480), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4208; and

(C) inserted after section 4207, as added by paragraph

(8).

(10) REQUIREMENTS FOR REQUESTS FOR NEW OR MODIFIED

NUCLEAR WEAPONS.—Section 3143 of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003 (Public Law

107–314; 116 Stat. 2733), is—

(A) transferred to title XLII of such Act, as amended

by this subsection;

(B) redesignated as section 4209; and
H. R. 1588—369

(C) inserted after section 4208, as added by paragraph

(9).

(11) LIMITATION ON UNDERGROUND NUCLEAR WEAPONS

TESTS.—Subsection (f) of section 507 of the Energy and Water

Development Appropriations Act, 1993 (Public Law 102–337;

106 Stat. 1345), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) inserted after section 4209, as added by paragraph

(10); and

(C) amended—

(i) by inserting before the text the following new

section heading:

‘‘SEC. 4210. LIMITATION ON UNDERGROUND NUCLEAR WEAPONS

TESTS.’’;

and

(ii) by striking ‘‘(f)’’.

(12) TESTING OF NUCLEAR WEAPONS.—Section 3137 of the

National Defense Authorization Act for Fiscal Year 1994 (Public

Law 103–160; 107 Stat. 1946), is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4211;

(C) inserted after section 4210, as added by paragraph

(11); and

(D) amended—

(i) in subsection (a), by inserting ‘‘of the National

Defense Authorization Act for Fiscal Year 1994 (Public

Law 103–160)’’ after ‘‘section 3101(a)(2)’’; and

(ii) in subsection (b), by striking ‘‘this Act’’ and

inserting ‘‘the National Defense Authorization Act for

Fiscal Year 1994’’.

(13) MANUFACTURING INFRASTRUCTURE FOR STOCKPILE.—

Section 3137 of the National Defense Authorization Act for

Fiscal Year 1996 (Public Law 104–106; 110 Stat. 620), as

amended by section 3132 of the National Defense Authorization

Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2829),

is—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4212;

(C) inserted after section 4211, as added by paragraph

(12); and

(D) amended in subsection (d) by inserting ‘‘of the

National Defense Authorization Act for Fiscal Year 1996

(Public Law 104–106)’’ after ‘‘section 3101(b)’’.

(14) REPORTS ON CRITICAL DIFFICULTIES AT LABORATORIES

AND PLANTS.—Section 3159 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat.

2842), as amended by section 1305 of the National Defense

Authorization Act for Fiscal Year 1998 (Public Law 105–85;

111 Stat. 1954) and section 3163 of the National Defense
H. R. 1588—370

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

113 Stat. 944), is— (A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4213; and

(C) inserted after section 4212, as added by paragraph

(13).

(15) SUBTITLE HEADING ON TRITIUM.—Title XLII of the Bob

Stump National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection, is further amended by adding

at the end the following new subtitle heading:

‘‘Subtitle B—Tritium’’.

(16) TRITIUM PRODUCTION PROGRAM.—Section 3133 of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 618), is— (A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4231;

(C) inserted after the heading for subtitle B of such

title XLII, as added by paragraph (15); and

(D) amended— (i) by striking ‘‘the date of the enactment of this

Act’’ each place it appears and inserting ‘‘February

10, 1996’’; and

(ii) in subsection (b), by inserting ‘‘of the National

Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106)’’ after ‘‘section 3101’’. (17) TRITIUM RECYCLING.—Section 3136 of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law

104–106; 110 Stat. 620), is— (A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4232; and

(C) inserted after section 4231, as added by paragraph

(16).

(18) TRITIUM PRODUCTION.—Subsections (c) and (d) of section 3133 of the National Defense Authorization Act for Fiscal

Year 1997 (Public Law 104–201; 110 Stat. 2830) are—

(A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) inserted after section 4232, as added by paragraph

(17); and

(C) amended— (i) by inserting before the text the following new

section heading:

‘‘SEC. 4233. TRITIUM PRODUCTION.’’;

(ii) by redesignating such subsections as subsections (a) and (b), respectively; and

(iii) in subsection (a), as so redesignated, by

inserting ‘‘of Energy’’ after ‘‘The Secretary’’.
H. R. 1588—371

(19) MODERNIZATION AND CONSOLIDATION OF TRITIUM

RECYCLING FACILITIES.—Section 3134 of the National Defense

Authorization Act for Fiscal Year 1997 (Public Law 104–201;

110 Stat. 2830), is— (A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4234;

(C) inserted after section 4233, as added by paragraph

(18); and

(D) amended in subsection (b) by inserting ‘‘of the

National Defense Authorization Act for Fiscal Year 1997

(Public Law 104–201)’’ after ‘‘section 3101’’.

(20) PROCEDURES FOR MEETING TRITIUM PRODUCTION

REQUIREMENTS.—Section 3134 of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

113 Stat. 927), is— (A) transferred to title XLII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4235; and

(C) inserted after section 4234, as added by paragraph

(19).

(f) PROLIFERATION MATTERS.—

(1) TITLE HEADING.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new title heading:

‘‘TITLE XLIII—PROLIFERATION

MATTERS’’.

(2) INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.—Section 3133 of the National Defense Authorization Act

for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2036),

as amended by sections 1069 and 3131 of the Strom Thurmond

National Defense Authorization Act for Fiscal Year 1999 (Public

Law 105–261; 112 Stat. 2136, 2246), is—

(A) transferred to title XLIII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as added

by paragraph (1);

(B) redesignated as section 4301;

(C) inserted after the heading for such title, as so

added; and

(D) amended in subsection (b)(3) by striking ‘‘this Act’’

and inserting ‘‘the National Defense Authorization Act for

Fiscal Year 1998 (Public Law 105–85)’’.

(3) NONPROLIFERATION INITIATIVES AND ACTIVITIES.—Section 3136 of the National Defense Authorization Act for Fiscal

Year 2000 (Public Law 106–65; 113 Stat. 927), is—

(A) transferred to title XLIII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4302;

(C) inserted after section 4301, as added by paragraph

(2); and
H. R. 1588—372

(D) amended in subsection (b)(1) by striking ‘‘this title’’

and inserting ‘‘title XXXI of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–

65)’’.

(4) ANNUAL REPORT ON MATERIALS PROTECTION, CONTROL,

AND ACCOUNTING PROGRAM.—Section 3171 of the Floyd D.

Spence National Defense Authorization Act for Fiscal Year

2001 (as enacted into law by Public Law 106–398; 114 Stat.

1645A–475), is—

(A) transferred to title XLIII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4303;

(C) inserted after section 4302, as added by paragraph

(3); and

(D) amended in subsection (c)(1) by striking ‘‘this Act’’

and inserting ‘‘the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted into

law by Public Law 106–398)’’.

(5) NUCLEAR CITIES INITIATIVE.—Section 3172 of the Floyd

D. Spence National Defense Authorization Act for Fiscal Year

2001 (as enacted into law by Public Law 106–398; 114 Stat.

1645A–476), is—

(A) transferred to title XLIII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4304; and

(C) inserted after section 4303, as added by paragraph

(4).

(6) PROGRAMS ON FISSILE MATERIALS.—Section 3131 of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 617), as amended by section 3152

of the Bob Stump National Defense Authorization Act for Fiscal

Year 2003 (Public Law 107–314; 116 Stat. 2738), is—

(A) transferred to title XLIII of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4305; and

(C) inserted after section 4304, as added by paragraph

(5).

(7) DISPOSITION OF PLUTONIUM.—

(A) DISPOSITION OF WEAPONS USABLE PLUTONIUM.—Section 3182 of the Bob Stump National Defense Authorization

Act for Fiscal Year 2003 (Public Law 107–314; 116 Stat.

2747), is—

(i) transferred to title XLIII of such Act, as

amended by this subsection;

(ii) redesignated as section 4306; and

(iii) inserted after section 4305, as added by paragraph (6).

(B) DISPOSITION OF SURPLUS DEFENSE PLUTONIUM.—

Section 3155 of the National Defense Authorization Act

for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1378),

is— (i) transferred to title XLIII of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;
H. R. 1588—373

(ii) redesignated as section 4306A; and

(iii) inserted after section 4306, as added by

subparagraph (A).

(g) ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

MATTERS.—

(1) HEADINGS.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new headings:

‘‘TITLE XLIV—ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT

MATTERS

‘‘Subtitle A—Environmental Restoration

and Waste Management’’.

(2) DEFENSE ENVIRONMENTAL RESTORATION AND WASTE

MANAGEMENT ACCOUNT.—Section 3134 of the National Defense

Authorization Act for Fiscal Years 1992 and 1993 (Public Law

102–190; 105 Stat. 1575), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as added

by paragraph (1);

(B) redesignated as section 4401; and

(C) inserted after the heading for subtitle A of such

title, as so added.

(3) FUTURE USE PLANS FOR ENVIRONMENTAL MANAGEMENT

PROGRAM.—Section 3153 of the National Defense Authorization

Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2839),

is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4402;

(C) inserted after section 4401, as added by paragraph

(2); and

(D) amended—

(i) in subsection (d), by striking ‘‘the date of the

enactment of this Act’’ and inserting ‘‘September 23,

1996,’’; and

(ii) in subsection (h)(1), by striking ‘‘the date of

the enactment of this Act’’ and inserting ‘‘September

23, 1996’’.

(4) INTEGRATED FISSILE MATERIALS MANAGEMENT PLAN.—

Section 3172 of the National Defense Authorization Act for

Fiscal Year 2000 (Public Law 106–65; 113 Stat. 948), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4403; and

(C) inserted after section 4402, as added by paragraph

(3).
H. R. 1588—374

(5) BASELINE ENVIRONMENTAL MANAGEMENT REPORTS.—Section 3153 of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 107 Stat. 1950), as amended

by section 3160 of the National Defense Authorization Act

for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3094),

section 3152 of the National Defense Authorization Act for

Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2839), and

section 3160 of the National Defense Authorization Act for

Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2048), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4404; and

(C) inserted after section 4403, as added by paragraph

(4).

(6) ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.—Section 3156 of the National

Defense Authorization Act for Fiscal Year 1996 (Public Law

104–106; 110 Stat. 625), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4405;

(C) inserted after section 4404, as added by paragraph

(5); and

(D) amended in subsection (b)(2) by inserting before

the period the following: ‘‘, the predecessor provision to

section 4404 of this Act’’.

(7) DEFENSE WASTE CLEANUP TECHNOLOGY PROGRAM.—Section 3141 of the National Defense Authorization Act for Fiscal

Years 1990 and 1991 (Public Law 101–189; 103 Stat. 1679),

is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4406;

(C) inserted after section 4405, as added by paragraph

(6); and

(D) amended in the section heading by adding a period

at the end.

(8) REPORT ON ENVIRONMENTAL RESTORATION EXPENDITURES.—Section 3134 of the National Defense Authorization

Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1833),

is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4407;

(C) inserted after section 4406, as added by paragraph

(7); and

(D) amended in the section heading by adding a period

at the end.

(9) PUBLIC PARTICIPATION IN PLANNING FOR ENVIRONMENTAL

RESTORATION AND WASTE MANAGEMENT.—Subsection (e) of section 3160 of the National Defense Authorization Act for Fiscal

Year 1995 (Public Law 103–337; 108 Stat. 3095), is—
H. R. 1588—375

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) inserted after section 4407, as added by paragraph

(8); and

(C) amended—

(i) by inserting before the text the following new

section heading:

‘‘SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT AT

DEFENSE NUCLEAR FACILITIES.’’;

and

(ii) by striking ‘‘(e) PUBLIC PARTICIPATION IN PLANNING.—’’.

(10) SUBTITLE HEADING ON CLOSURE OF FACILITIES.—Title

XLIV of the Bob Stump National Defense Authorization Act

for Fiscal Year 2003, as amended by this subsection, is further

amended by adding at the end the following new subtitle

heading:

‘‘Subtitle B—Closure of Facilities’’.

(11) PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT

DEFENSE NUCLEAR FACILITIES.—Section 3143 of the National

Defense Authorization Act for Fiscal Year 1997 (Public Law

104–201; 110 Stat. 2836), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4421;

(C) inserted after the heading for subtitle B of such

title, as added by paragraph (10); and

(D) amended in subsection (i) by striking ‘‘the expiration of the 15-year period beginning on the date of the

enactment of this Act’’ and inserting ‘‘September 23, 2011’’.

(12) REPORTS IN CONNECTION WITH PERMANENT CLOSURE

OF DEFENSE NUCLEAR FACILITIES.—Section 3156 of the National

Defense Authorization Act for Fiscal Years 1990 and 1991

(Public Law 101–189; 103 Stat. 1683), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4422;

(C) inserted after section 4421, as added by paragraph

(11); and

(D) amended in the section heading by adding a period

at the end.

(13) SUBTITLE HEADING ON PRIVATIZATION.—Title XLIV of

the Bob Stump National Defense Authorization Act for Fiscal

Year 2003, as amended by this subsection, is further amended

by adding at the end the following new subtitle heading:
H. R. 1588—376

‘‘Subtitle C—Privatization’’.

(14) DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION

PROJECTS.—Section 3132 of the National Defense Authorization

Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2034),

is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4431;

(C) inserted after the heading for subtitle C of such

title, as added by paragraph (13); and

(D) amended—

(i) in subsections (a), (c)(1)(B)(i), and (d), by

inserting ‘‘of the National Defense Authorization Act

for Fiscal Year 1998 (Public Law 105–85)’’ after ‘‘section 3102(i)’’; and

(ii) in subsections (c)(1)(B)(ii) and (f), by striking

‘‘the date of enactment of this Act’’ and inserting

‘‘November 18, 1997’’.

(15) SUBTITLE HEADING ON HANFORD RESERVATION.—Title

XLIV of the Bob Stump National Defense Authorization Act

for Fiscal Year 2003, as amended by this subsection, is further

amended by adding at the end the following new subtitle

heading:

‘‘Subtitle D—Hanford Reservation,

Washington’’.

(16) SAFETY MEASURES FOR WASTE TANKS.—Section 3137

of the National Defense Authorization Act for Fiscal Year 1991

(Public Law 101–510; 104 Stat. 1833), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4441;

(C) inserted after the heading for subtitle D of such

title, as added by paragraph (15); and

(D) amended—

(i) in the section heading, by adding a period at

the end;

(ii) in subsection (a), by striking ‘‘Within 90 days

after the date of the enactment of this Act,’’ and

inserting ‘‘Not later than February 3, 1991,’’;

(iii) in subsection (b), by striking ‘‘Within 120 days

after the date of the enactment of this Act,’’ and

inserting ‘‘Not later than March 5, 1991,’’;

(iv) in subsection (c), by striking ‘‘Beginning 120

days after the date of the enactment of this Act,’’ and inserting ‘‘Beginning March 5, 1991,’’; and

(v) in subsection (d), by striking ‘‘Within six

months after the date of the enactment of this Act,’’

and inserting ‘‘Not later than May 5, 1991,’’.

(17) WASTE TANK CLEANUP PROGRAM.—Section 3139 of the

Strom Thurmond National Defense Authorization Act for Fiscal
H. R. 1588—377

Year 1999 (Public Law 105–261; 112 Stat. 2250), as amended

by section 3141 of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted into law

by Public Law 106–398; 114 Stat. 1654A–463) and section

3135 of the National Defense Authorization Act for Fiscal Year

2002 (Public Law 107–107; 115 Stat. 1368), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4442;

(C) inserted after section 4441, as added by paragraph

(16); and

(D) amended in subsection (d) by striking ‘‘30 days

after the date of the enactment of the Floyd D. Spence

National Defense Authorization Act for Fiscal Year 2001,’’

and inserting ‘‘November 29, 2000,’’.

(18) RIVER PROTECTION PROJECT.—Subsection (a) of section

3141 of the Floyd D. Spence National Defense Authorization

Act for Fiscal Year 2001 (as enacted into law by Public Law

106–398; 114 Stat. 1654A–462), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) inserted after section 4442, as added by paragraph

(17); and

(C) amended—

(i) by inserting before the text the following new

section heading:

‘‘SEC. 4443. RIVER PROTECTION PROJECT.’’;

and

(ii) by striking ‘‘(a) REDESIGNATION OF PROJECT.—’’.

(19) FUNDING FOR TERMINATION COSTS OF RIVER PROTECTION PROJECT.—Section 3131 of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398; 114 Stat. 1654A–454), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4444;

(C) inserted after section 4443, as added by paragraph

(18); and

(D) amended—

(i) by striking ‘‘section 3141’’ and inserting ‘‘section

4443’’; and

(ii) by striking ‘‘the date of the enactment of this

Act’’ and inserting ‘‘October 30, 2000’’.

(20) SUBTITLE HEADING ON SAVANNAH RIVER SITE, SOUTH

CAROLINA.—Title XLIV of the Bob Stump National Defense

Authorization Act for Fiscal Year 2003, as amended by this

subsection, is further amended by adding at the end the following new subtitle heading:
H. R. 1588—378

‘‘Subtitle E—Savannah River Site, South

Carolina’’.

(21) ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL

NUCLEAR WASTE AT DEFENSE WASTE PROCESSING FACILITY.— Section 3141 of the National Defense Authorization Act for

Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2834), is— (A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as 4451; and

(C) inserted after the heading for subtitle E of such

title, as added by paragraph (20).

(22) MULTI-YEAR PLAN FOR CLEAN-UP.—Subsection (e) of

section 3142 of the National Defense Authorization Act for

Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2834), is—

(A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) inserted after section 4451, as added by paragraph

(21); and

(C) amended—

(i) by inserting before the text the following new

section heading:

‘‘SEC. 4452. MULTI-YEAR PLAN FOR CLEAN-UP.’’;

and

(ii) by striking ‘‘(e) MULTI-YEAR PLAN FOR CLEANUP AT SAVANNAH RIVER SITE.—The Secretary’’ and

inserting ‘‘The Secretary of Energy’’.

(23) CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF LEGACY NUCLEAR MATERIALS.—

(A) FISCAL YEAR 2001.—Subsection (a) of section 3137

of the Floyd D. Spence National Defense Authorization

Act for Fiscal Year 2001 (as enacted into law by Public

Law 106–398; 114 Stat. 1654A–460), is—

(i) transferred to title XLIV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) inserted after section 4452, as added by paragraph (22); and

(iii) amended—

(I) by inserting before the text the following

new section heading:

‘‘SEC. 4453. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF LEGACY NUCLEAR MATERIALS.’’;

and

(II) by striking ‘‘(a) CONTINUATION.—’’.

(B) FISCAL YEAR 2000.—Section 3132 of the National

Defense Authorization Act for Fiscal Year 2000 (Public

Law 106–65; 113 Stat. 924), is— (i) transferred to title XLIV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) redesignated as section 4453A; and
H. R. 1588—379

(iii) inserted after section 4453, as added by

subparagraph (A).

(C) FISCAL YEAR 1999.—Section 3135 of the Strom

Thurmond National Defense Authorization Act for Fiscal

Year 1999 (Public Law 105–261; 112 Stat. 2248), is—

(i) transferred to title XLIV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) redesignated as section 4453B; and

(iii) inserted after section 4453A, as added by

subparagraph (B).

(D) FISCAL YEAR 1998.—Subsection (b) of section 3136

of the National Defense Authorization Act for Fiscal Year

1998 (Public Law 105–85; 111 Stat. 2038), is—

(i) transferred to title XLIV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) inserted after section 4453B, as added by

subparagraph (C); and

(iii) amended—

(I) by inserting before the text the following

new section heading:

‘‘SEC. 4453C. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF LEGACY NUCLEAR MATERIALS.’’;

and

(II) by striking ‘‘(b) REQUIREMENT FOR CONTINUING OPERATIONS AT SAVANNAH RIVER

SITE.—’’.

(E) FISCAL YEAR 1997.—Subsection (f) of section 3142

of the National Defense Authorization Act for Fiscal Year

1997 (Public Law 104–201; 110 Stat. 2836), is—

(i) transferred to title XLIV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) inserted after section 4453C, as added by

subparagraph (D); and

(iii) amended—

(I) by inserting before the text the following

new section heading:

‘‘SEC. 4453D. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF LEGACY NUCLEAR MATERIALS.’’;

(II) by striking ‘‘(f) REQUIREMENT FOR CONTINUING OPERATIONS AT SAVANNAH RIVER SITE.—

The Secretary’’ and inserting ‘‘The Secretary of

Energy’’; and

(III) by striking ‘‘subsection (e)’’ and inserting

‘‘section 4452’’.

(24) LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING

F–CANYON FACILITY.—Subsection (b) of section 3137 of the Floyd

D. Spence National Defense Authorization Act for Fiscal Year

2001 (as enacted into law by Public Law 106–398; 114 Stat.

1654A–460), is— (A) transferred to title XLIV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;
H. R. 1588—380

(B) inserted after section 4453D, as added by paragraph (23)(E); and

(C) amended— (i) by inserting before the text the following new

section heading:

‘‘SEC. 4454. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING

F–CANYON FACILITY.’’;

(ii) by striking ‘‘(b) LIMITATION ON USE OF FUNDS

FOR DECOMMISSIONING F–CANYON FACILITY.—’’;

(iii) by striking ‘‘this or any other Act’’ and

inserting ‘‘the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398) or any other Act’’;

and

(iv) by striking ‘‘the Secretary’’ in the matter preceding paragraph (1) and inserting ‘‘the Secretary of

Energy’’. (h) SAFEGUARDS AND SECURITY MATTERS.—

(1) HEADINGS.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new headings:

‘‘TITLE XLV—SAFEGUARDS AND

SECURITY MATTERS

‘‘Subtitle A—Safeguards and Security’’.

(2) PROHIBITION ON INTERNATIONAL INSPECTIONS OF FACILITIES WITHOUT PROTECTION OF RESTRICTED DATA.—Section 3154

of the National Defense Authorization Act for Fiscal Year 1996

(Public Law 104–106; 110 Stat. 624), is— (A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as added

by paragraph (1);

(B) redesignated as section 4501;

(C) inserted after the heading for subtitle A of such

title, as so added; and

(D) amended— (i) by striking ‘‘(1) The’’ and inserting ‘‘The’’; and

(ii) by striking ‘‘(2) For purposes of paragraph (1),’’ and inserting ‘‘(c) RESTRICTED DATA DEFINED.—In this

section,’’.

(3) RESTRICTIONS ON ACCESS TO LABORATORIES BY FOREIGN

VISITORS FROM SENSITIVE COUNTRIES.—Section 3146 of the

National Defense Authorization Act for Fiscal Year 2000 (Public

Law 106–65; 113 Stat. 935), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4502;

(C) inserted after section 4501, as added by paragraph

(2); and

(D) amended—

(i) in subsection (b)(2)—
H. R. 1588—381

(I) in the matter preceding subparagraph (A),

by striking ‘‘30 days after the date of the enactment of this Act’’ and inserting ‘‘on November 4,

1999,’’; and

(II) in subparagraph (A), by striking ‘‘The date

that is 90 days after the date of the enactment

of this Act’’ and inserting ‘‘January 3, 2000’’;

(ii) in subsection (d)(1), by striking ‘‘the date of

the enactment of this Act,’’ and inserting ‘‘October

5, 1999,’’; and

(iii) in subsection (g), by adding at the end the

following new paragraphs:

‘‘(3) The term ‘national laboratory’ means any of the following:

‘‘(A) Lawrence Livermore National Laboratory, Livermore, California.

‘‘(B) Los Alamos National Laboratory, Los Alamos, New

Mexico.

‘‘(C) Sandia National Laboratories, Albuquerque, New

Mexico and Livermore, California.

‘‘(4) The term ‘Restricted Data’ has the meaning given

that term in section 11 y. of the Atomic Energy Act of 1954

(42 U.S.C. 2014(y)).’’.

(4) BACKGROUND INVESTIGATIONS ON CERTAIN PERSONNEL.—

Section 3143 of the National Defense Authorization Act for

Fiscal Year 2000 (Public Law 106–65; 113 Stat. 934), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4503;

(C) inserted after section 4502, as added by paragraph

(3); and

(D) amended—

(i) in subsection (b), by striking ‘‘the date of the

enactment of this Act’’ and inserting ‘‘October 5, 1999,’’;

and

(ii) by adding at the end the following new subsection:

‘‘(c) DEFINITIONS.—In this section, the terms ‘national laboratory’ and ‘Restricted Data’ have the meanings given such terms

in section 4502(g).’’.

(5) COUNTERINTELLIGENCE POLYGRAPH PROGRAM.—

(A) DEPARTMENT OF ENERGY COUNTERINTELLIGENCE

POLYGRAPH PROGRAM.—Section 3152 of the National

Defense Authorization Act for Fiscal Year 2002 (Public

Law 107–107; 115 Stat. 1376), is—

(i) transferred to title XLV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) redesignated as section 4504;

(iii) inserted after section 4503, as added by paragraph (4); and

(iv) amended in subsection (c) by striking ‘‘section

3154 of the Department of Energy Facilities Safeguards, Security, and Counterintelligence Enhancement Act of 1999 (subtitle D of title XXXI of Public
H. R. 1588—382

Law 106–65; 42 U.S.C. 7383h)’’ and inserting ‘‘section

4504A’’.

(B) COUNTERINTELLIGENCE POLYGRAPH PROGRAM.—Section 3154 of the National Defense Authorization Act for

Fiscal Year 2000 (Public Law 106–65; 113 Stat. 941), as

amended by section 3135 of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398; 114 Stat. 1654A–456),

is—

(i) transferred to title XLV of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) redesignated as section 4504A;

(iii) inserted after section 4504, as added by

subparagraph (A); and

(iv) amended in subsection (h) by striking ‘‘180

days after the date of the enactment of this Act,’’

and inserting ‘‘April 5, 2000,’’.

(6) NOTICE OF SECURITY AND COUNTERINTELLIGENCE FAILURES.—Section 3150 of the National Defense Authorization Act

for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 939), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4505; and

(C) inserted after section 4504A, as added by paragraph

(5)(B).

(7) ANNUAL REPORT ON SECURITY FUNCTIONS AT NUCLEAR

WEAPONS FACILITIES.—Section 3162 of the National Defense

Authorization Act for Fiscal Year 1998 (Public Law 105–85;

111 Stat. 2049), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4506;

(C) inserted after section 4505, as added by paragraph

(6); and

(D) amended in subsection (b) by inserting ‘‘of the

National Defense Authorization Act for Fiscal Year 1998

(Public Law 105–85; 111 Stat. 2048; 42 U.S.C. 7251 note)’’

after ‘‘section 3161’’.

(8) REPORT ON COUNTERINTELLIGENCE AND SECURITY PRACTICES AT LABORATORIES.—Section 3152 of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

113 Stat. 940), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4507;

(C) inserted after section 4506, as added by paragraph

(7); and

(D) amended by adding at the end the following new

subsection:

‘‘(c) NATIONAL LABORATORY DEFINED.—In this section, the term

‘national laboratory’ has the meaning given that term in section

4502(g)(3).’’.
H. R. 1588—383

(9) REPORT ON SECURITY VULNERABILITIES OF NATIONAL

LABORATORY COMPUTERS.—Section 3153 of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

113 Stat. 940), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4508;

(C) inserted after section 4507, as added by paragraph

(8); and

(D) amended by adding at the end the following new

subsection:

‘‘(f) NATIONAL LABORATORY DEFINED.—In this section, the term

‘national laboratory’ has the meaning given that term in section

4502(g)(3).’’.

(10) SUBTITLE HEADING ON CLASSIFIED INFORMATION.—Title

XLV of the Bob Stump National Defense Authorization Act

for Fiscal Year 2003, as amended by this subsection, is further

amended by adding at the end the following new subtitle

heading:

‘‘Subtitle B—Classified Information’’.

(11) REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICATION AND RELEASE.—Section 3155 of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106;

110 Stat. 625), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4521; and

(C) inserted after the heading for subtitle B of such

title, as added by paragraph (10).

(12) PROTECTION AGAINST INADVERTENT RELEASE OF

RESTRICTED DATA AND FORMERLY RESTRICTED DATA.—Section

3161 of the Strom Thurmond National Defense Authorization

Act for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2259),

as amended by section 1067(3) of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

113 Stat. 774) and section 3193 of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398; 114 Stat. 1654A–480), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4522;

(C) inserted after section 4521, as added by paragraph

(11); and

(D) amended—

(i) in subsection (c)(1), by striking ‘‘the date of

the enactment of this Act’’ and inserting ‘‘October 17,

1998,’’;

(ii) in subsection (f)(1), by striking ‘‘the date of

the enactment of this Act’’ and inserting ‘‘October 17,

1998’’; and
H. R. 1588—384

(iii) in subsection (f)(2), by striking ‘‘The Secretary’’

and inserting ‘‘Commencing with inadvertent releases

discovered on or after October 30, 2000, the Secretary’’.

(13) SUPPLEMENT TO PLAN FOR DECLASSIFICATION OF

RESTRICTED DATA AND FORMERLY RESTRICTED DATA.—Section

3149 of the National Defense Authorization Act for Fiscal Year

2000 (Public Law 106–65; 113 Stat. 938), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4523;

(C) inserted after section 4522, as added by paragraph

(12); and

(D) amended—

(i) in subsection (a), by striking ‘‘subsection (a)

of section 3161 of the Strom Thurmond National

Defense Authorization Act for Fiscal Year 1999 (Public

Law 105–261; 112 Stat. 2260; 50 U.S.C. 435 note)’’

and inserting ‘‘subsection (a) of section 4522’’;

(ii) in subsection (b)—

(I) by striking ‘‘section 3161(b)(1) of that Act’’

and inserting ‘‘subsection (b)(1) of section 4522’’;

and

(II) by striking ‘‘the date of the enactment

of that Act’’ and inserting ‘‘October 17, 1998,’’;

(iii) in subsection (c)—

(I) by striking ‘‘section 3161(c) of that Act’’

and inserting ‘‘subsection (c) of section 4522’’; and

(II) by striking ‘‘section 3161(a) of that Act’’

and inserting ‘‘subsection (a) of such section’’; and

(iv) in subsection (d), by striking ‘‘section 3161(d)

of that Act’’ and inserting ‘‘subsection (d) of section

4522’’.

(14) PROTECTION OF CLASSIFIED INFORMATION DURING LABORATORY-TO-LABORATORY EXCHANGES.—Section 3145 of the

National Defense Authorization Act for Fiscal Year 2000 (Public

Law 106–65; 113 Stat. 935), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4524; and

(C) inserted after section 4523, as added by paragraph

(13).

(15) IDENTIFICATION IN BUDGETS OF AMOUNT FOR DECLASSIFICATION ACTIVITIES.—Section 3173 of the National Defense

Authorization Act for Fiscal Year 2000 (Public Law 106–65;

113 Stat. 949), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4525;

(C) inserted after section 4524, as added by paragraph

(14); and

(D) amended in subsection (b) by striking ‘‘the date

of the enactment of this Act’’ and inserting ‘‘October 5,

1999,’’.
H. R. 1588—385

(16) SUBTITLE HEADING ON EMERGENCY RESPONSE.—Title

XLV of the Bob Stump National Defense Authorization Act

for Fiscal Year 2003, as amended by this subsection, is further

amended by adding at the end the following new subtitle

heading:

‘‘Subtitle C—Emergency Response’’.

(17) RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY

RESPONSE PROGRAM.—Section 3158 of the National Defense

Authorization Act for Fiscal Year 1996 (Public Law 104–106;

110 Stat. 626), is—

(A) transferred to title XLV of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4541; and

(C) inserted after the heading for subtitle C of such

title, as added by paragraph (16).

(i) PERSONNEL MATTERS.—

(1) HEADINGS.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new headings:

‘‘TITLE XLVI—PERSONNEL MATTERS

‘‘Subtitle A—Personnel Management’’.

(2) AUTHORITY FOR APPOINTMENT OF CERTAIN SCIENTIFIC,

ENGINEERING, AND TECHNICAL PERSONNEL.—Section 3161 of the

National Defense Authorization Act for Fiscal Year 1995 (Public

Law 103–337; 108 Stat. 3095), as amended by section 3139

of the National Defense Authorization Act for Fiscal Year 1998

(Public Law 105–85; 111 Stat. 2040), sections 3152 and 3155

of the Strom Thurmond National Defense Authorization Act

for Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2253,

2257), and section 3191 of the Floyd D. Spence National Defense

Authorization Act for Fiscal Year 2001 (as enacted into law

by Public Law 106–398; 114 Stat. 1654A–480), is—

(A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as added

by paragraph (1);

(B) redesignated as section 4601; and

(C) inserted after the heading for subtitle A of such

title, as so added.

(3) WHISTLEBLOWER PROTECTION PROGRAM.—Section 3164

of the National Defense Authorization Act for Fiscal Year 2000

(Public Law 106–65; 113 Stat. 946), is—

(A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4602;

(C) inserted after section 4601, as added by paragraph

(2); and
H. R. 1588—386

(D) amended in subsection (n) by striking ‘‘60 days

after the date of the enactment of this Act,’’ and inserting

‘‘December 5, 1999,’’.

(4) EMPLOYEE INCENTIVES FOR WORKERS AT CLOSURE

PROJECT FACILITIES.—Section 3136 of the Floyd D. Spence

National Defense Authorization Act for Fiscal Year 2001 (as

enacted into law by Public Law 106–398; 114 Stat. 1654A–

458), is—

(A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4603;

(C) inserted after section 4602, as added by paragraph

(3); and

(D) amended—

(i) in subsections (c) and (i)(1)(A), by striking ‘‘section 3143 of the National Defense Authorization Act

for Fiscal Year 1997 (42 U.S.C. 7274n)’’ and inserting

‘‘section 4421’’; and

(ii) in subsection (g), by striking ‘‘section 3143(h)

of the National Defense Authorization Act for Fiscal

Year 1997’’ and inserting ‘‘section 4421(h)’’.

(5) DEFENSE NUCLEAR FACILITY WORKFORCE RESTRUCTURING

PLAN.—Section 3161 of the National Defense Authorization Act

for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2644),

as amended by section 1070(c)(2) of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337;

108 Stat. 2857), Public Law 105–277 (112 Stat. 2681–419, 2681–

430), and section 1048(h)(1) of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat.

1229), is—

(A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4604;

(C) inserted after section 4603, as added by paragraph

(4); and

(D) amended—

(i) in subsection (a), by striking ‘‘(hereinafter in

this subtitle referred to as the ‘Secretary’)’’; and

(ii) by adding at the end the following new subsection:

‘‘(g) DEPARTMENT OF ENERGY DEFENSE NUCLEAR FACILITY

DEFINED.—In this section, the term ‘Department of Energy defense

nuclear facility’ means—

‘‘(1) a production facility or utilization facility (as those

terms are defined in section 11 of the Atomic Energy Act

of 1954 (42 U.S.C. 2014)) that is under the control or jurisdiction

of the Secretary and that is operated for national security

purposes (including the tritium loading facility at Savannah

River, South Carolina, the 236 H facility at Savannah River,

South Carolina; and the Mound Laboratory, Ohio), but the

term does not include any facility that does not conduct atomic

energy defense activities and does not include any facility or

activity covered by Executive Order Number 12344, dated February 1, 1982, pertaining to the naval nuclear propulsion program;
H. R. 1588—387

‘‘(2) a nuclear waste storage or disposal facility that is

under the control or jurisdiction of the Secretary; ‘‘(3) a testing and assembly facility that is under the control

or jurisdiction of the Secretary and that is operated for national

security purposes (including the Nevada Test Site, Nevada;

the Pinnellas Plant, Florida; and the Pantex facility, Texas); ‘‘(4) an atomic weapons research facility that is under the

control or jurisdiction of the Secretary (including Lawrence

Livermore, Los Alamos, and Sandia National Laboratories);

or ‘‘(5) any facility described in paragraphs (1) through (4)

that— ‘‘(A) is no longer in operation;

‘‘(B) was under the control or jurisdiction of the Department of Defense, the Atomic Energy Commission, or the

Energy Research and Development Administration; and ‘‘(C) was operated for national security purposes.’’. (6) AUTHORITY TO PROVIDE CERTIFICATE OF COMMENDATION

TO EMPLOYEES.—Section 3195 of the Floyd D. Spence National

Defense Authorization Act for Fiscal Year 2001 (as enacted

into law by Public Law 106–398; 114 Stat. 1654A–481), is— (A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4605; and

(C) inserted after section 4604, as added by paragraph

(5).

(7) SUBTITLE HEADING ON EDUCATION AND TRAINING.—Title

XLVI of the Bob Stump National Defense Authorization Act

for Fiscal Year 2003, as amended by this subsection, is further

amended by adding at the end the following new subtitle

heading:

‘‘Subtitle B—Education and Training’’.

(8) EXECUTIVE MANAGEMENT TRAINING.—Section 3142 of

the National Defense Authorization Act for Fiscal Years 1990

and 1991 (Public Law 101–189; 103 Stat. 1680), is— (A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4621;

(C) inserted after the heading for subtitle B of such

title, as added by paragraph (7); and

(D) amended in the section heading by adding a period

at the end.

(9) STOCKPILE STEWARDSHIP RECRUITMENT AND TRAINING

PROGRAM.—Section 3131 of the National Defense Authorization

Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3085),

is— (A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4622;

(C) inserted after section 4621, as added by paragraph

(8); and

(D) amended—
H. R. 1588—388

(i) in subsection (a)(1), by striking ‘‘section 3138

of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160; 107 Stat. 1946; 42

U.S.C. 2121 note)’’ and inserting ‘‘section 4201’’; and

(ii) in subsection (b)(2), by inserting ‘‘of the

National Defense Authorization Act for Fiscal Year

1995 (Public Law 103–337)’’ after ‘‘section 3101(a)(1)’’. (10) FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS

CRITICAL TO NUCLEAR WEAPONS COMPLEX.—Section 3140 of the

National Defense Authorization Act for Fiscal Year 1996 (Public

Law 104–106; 110 Stat. 621), as amended by section 3162

of the National Defense Authorization Act for Fiscal Year 2000

(Public Law 106–65; 113 Stat. 943), is— (A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4623; and

(C) inserted after section 4622, as added by paragraph

(9).

(11) SUBTITLE HEADING ON WORKER SAFETY.—Title XLVI

of the Bob Stump National Defense Authorization Act for Fiscal

Year 2003, as amended by this subsection, is further amended

by adding at the end the following new subtitle heading:

‘‘Subtitle C—Worker Safety’’.

(12) WORKER PROTECTION AT NUCLEAR WEAPONS FACILI- TIES.—Section 3131 of the National Defense Authorization Act

for Fiscal Years 1992 and 1993 (Public Law 102–190; 105

Stat. 1571), is— (A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4641;

(C) inserted after the heading for subtitle C of such

title, as added by paragraph (11); and

(D) amended in subsection (e) by inserting ‘‘of the

National Defense Authorization Act for Fiscal Years 1992

and 1993 (Public Law 102–190)’’ after ‘‘section 3101(9)(A)’’. (13) SAFETY OVERSIGHT AND ENFORCEMENT AT DEFENSE

NUCLEAR FACILITIES.—Section 3163 of the National Defense

Authorization Act for Fiscal Year 1995 (Public Law 103–337;

108 Stat. 3097), is— (A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4642;

(C) inserted after section 4641, as added by paragraph

(12); and

(D) amended in subsection (b) by striking ‘‘90 days

after the date of the enactment of this Act,’’ and inserting ‘‘January 5, 1995,’’. (14) PROGRAM TO MONITOR WORKERS AT DEFENSE NUCLEAR

FACILITIES EXPOSED TO HAZARDOUS OR RADIOACTIVE SUB- STANCES.—Section 3162 of the National Defense Authorization

Act for Fiscal Year 1993 (Public Law 102–484; 106 Stat. 2646),

is—
H. R. 1588—389

(A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4643;

(C) inserted after section 4642, as added by paragraph

(13); and

(D) amended—

(i) in subsection (b)(6), by striking ‘‘1 year after

the date of the enactment of this Act’’ and inserting

‘‘October 23, 1993’’;

(ii) in subsection (c), by striking ‘‘180 days after

the date of the enactment of this Act,’’ and inserting

‘‘April 23, 1993,’’; and

(iii) by adding at the end the following new subsection:

‘‘(d) DEFINITIONS.—In this section:

‘‘(1) The term ‘Department of Energy defense nuclear

facility’ has the meaning given that term in section 4604(g).

‘‘(2) The term ‘Department of Energy employee’ means

any employee of the Department of Energy employed at a

Department of Energy defense nuclear facility, including any

employee of a contractor or subcontractor of the Department

of Energy employed at such a facility.’’.

(15) PROGRAMS FOR PERSONS WHO MAY HAVE BEEN EXPOSED

TO RADIATION RELEASED FROM HANFORD RESERVATION.—Section

3138 of the National Defense Authorization Act for Fiscal Year

1991 (Public Law 101–510; 104 Stat. 1834), as amended by

section 3138 of the National Defense Authorization Act for

Fiscal Year 1995 (Public Law 103–337; 108 Stat. 3087), is—

(A) transferred to title XLVI of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as

amended by this subsection;

(B) redesignated as section 4644;

(C) inserted after section 4643, as added by paragraph

(14); and

(D) amended—

(i) in the section heading, by adding a period at

the end;

(ii) in subsection (a), by striking ‘‘this title’’ and

inserting ‘‘title XXXI of the National Defense

Authorization Act for Fiscal Year 1991 (Public Law

101–510)’’; and

(iii) in subsection (c)—

(I) in paragraph (2), by striking ‘‘six months

after the date of the enactment of this Act,’’ and

inserting ‘‘May 5, 1991,’’; and

(II) in paragraph (3), by striking ‘‘18 months

after the date of the enactment of this Act,’’ and

inserting ‘‘May 5, 1992,’’.

(j) BUDGET AND FINANCIAL MANAGEMENT MATTERS.—

(1) HEADINGS.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new headings:
H. R. 1588—390

‘‘TITLE XLVII—BUDGET AND FINANCIAL

MANAGEMENT MATTERS

‘‘Subtitle A—Recurring National Security

Authorization Provisions’’.

(2) RECURRING NATIONAL SECURITY AUTHORIZATION PROVISIONS.—Sections 3620 through 3631 of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003 (Public Law

107–314; 116 Stat. 2756) are—

(A) transferred to title XLVII of such Act, as added

by paragraph (1);

(B) redesignated as sections 4701 through 4712, respectively;

(C) inserted after the heading for subtitle A of such

title, as so added; and

(D) amended—

(i) in section 4702, as so redesignated, by striking

‘‘sections 3629 and 3630’’ and inserting ‘‘sections 4710

and 4711’’;

(ii) in section 4706(a)(3)(B), as so redesignated,

by striking ‘‘section 3626’’ and inserting ‘‘section 4707’’;

(iii) in section 4707(c), as so redesignated, by

striking ‘‘section 3625(b)(2)’’ and inserting ‘‘section

4706(b)(2)’’;

(iv) in section 4710(c), as so redesignated, by

striking ‘‘section 3621’’ and inserting ‘‘section 4702’’;

(v) in section 4711(c), as so redesignated, by

striking ‘‘section 3621’’ and inserting ‘‘section 4702’’;

and

(vi) in section 4712, as so redesignated, by striking

‘‘section 3621’’ and inserting ‘‘section 4702’’.

(3) SUBTITLE HEADING ON PENALTIES.—Title XLVII of the

Bob Stump National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection, is further amended by

adding at the end the following new subtitle heading:

‘‘Subtitle B—Penalties’’.

(4) RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER

ENVIRONMENTAL LAWS.—Section 3132 of the National Defense

Authorization Act for Fiscal Year 1987 (Public Law 99–661;

100 Stat. 4063), is— (A) transferred to title XLVII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4721;

(C) inserted after the heading for subtitle B of such

title, as added by paragraph (3); and

(D) amended in the section heading by adding a period

at the end.

(5) RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER

CLEAN AIR ACT.—Section 211 of the Department of Energy

National Security and Military Applications of Nuclear Energy
H. R. 1588—391

Authorization Act of 1981 (Public Law 96–540; 94 Stat. 3203),

is—

(A) transferred to title XLVII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) inserted after section 4721, as added by paragraph

(4); and

(C) amended—

(i) by striking the section heading and inserting

the following new section heading:

‘‘SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES

UNDER CLEAN AIR ACT.’’;

(ii) by striking ‘‘SEC. 211.’’; and

(iii) by striking ‘‘this or any other Act’’ and

inserting ‘‘the Department of Energy National Security

and Military Applications of Nuclear Energy

Authorization Act of 1981 (Public Law 96–540) or any

other Act’’.

(6) SUBTITLE HEADING ON OTHER MATTERS.—Title XLVII

of the Bob Stump National Defense Authorization Act for Fiscal

Year 2003, as amended by this subsection, is further amended

by adding at the end the following new subtitle heading:

‘‘Subtitle C—Other Matters’’.

(7) SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS

FOR COMMON DEFENSE AND SECURITY PROGRAMS.—Section 208

of the Department of Energy National Security and Military

Applications of Nuclear Energy Authorization Act of 1979

(Public Law 95–509; 92 Stat. 1779), is—

(A) transferred to title XLVII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) inserted after the heading for subtitle C of such

title, as added by paragraph (6); and

(C) amended—

(i) by striking the section heading and inserting

the following new section heading:

‘‘SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS FOR COMMON DEFENSE AND SECURITY PROGRAMS.’’;

and

(ii) by striking ‘‘SEC. 208.’’.

(k) ADMINISTRATIVE MATTERS.—

(1) HEADINGS.—Division D of the Bob Stump National

Defense Authorization Act for Fiscal Year 2003, as amended

by this section, is further amended by adding at the end the

following new headings:
H. R. 1588—392

‘‘TITLE XLVIII—ADMINISTRATIVE

MATTERS

‘‘Subtitle A—Contracts’’.

(2) COSTS NOT ALLOWED UNDER CERTAIN CONTRACTS.—Section 1534 of the Department of Defense Authorization Act,

1986 (Public Law 99–145; 99 Stat. 774), as amended by section

3131 of the National Defense Authorization Act for Fiscal Years

1988 and 1989 (Public Law 100–180; 101 Stat. 1238), is—

(A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as added by paragraph (1);

(B) redesignated as section 4801;

(C) inserted after the heading for subtitle A of such

title, as so added; and

(D) amended— (i) in the section heading, by adding a period at

the end; and

(ii) in subsection (b)(1), by striking ‘‘the date of

the enactment of this Act,’’ and inserting ‘‘November

8, 1985,’’.

(3) PROHIBITION ON BONUSES TO CONTRACTORS OPERATING

DEFENSE NUCLEAR FACILITIES.—Section 3151 of the National

Defense Authorization Act for Fiscal Years 1990 and 1991

(Public Law 101–189; 103 Stat. 1682), is—

(A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4802;

(C) inserted after section 4801, as added by paragraph

(2); and

(D) amended—

(i) in the section heading, by adding a period at

the end;

(ii) in subsection (a), by striking ‘‘the date of the

enactment of this Act’’ and inserting ‘‘November 29,

1989’’;

(iii) in subsection (b), by striking ‘‘6 months after

the date of the enactment of this Act,’’ and inserting

‘‘May 29, 1990,’’; and

(iv) in subsection (d), by striking ‘‘90 days after

the date of the enactment of this Act’’ and inserting

‘‘March 1, 1990’’.

(4) CONTRACTOR LIABILITY FOR INJURY OR LOSS OF PROPERTY

ARISING FROM ATOMIC WEAPONS TESTING PROGRAMS.—Section

3141 of the National Defense Authorization Act for Fiscal Year

1991 (Public Law 101–510; 104 Stat. 1837), is—

(A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4803;

(C) inserted after section 4802, as added by paragraph

(3); and

(D) amended—
H. R. 1588—393

(i) in the section heading, by adding a period at

the end; and

(ii) in subsection (d), by striking ‘‘the date of the

enactment of this Act’’ each place it appears and

inserting ‘‘November 5, 1990,’’.

(5) SUBTITLE HEADING ON RESEARCH AND DEVELOPMENT.—

Title XLVIII of the Bob Stump National Defense Authorization

Act for Fiscal Year 2003, as amended by this subsection, is

further amended by adding at the end the following new subtitle

heading:

‘‘Subtitle B—Research and Development’’.

(6) LABORATORY-DIRECTED RESEARCH AND DEVELOPMENT.— Section 3132 of the National Defense Authorization Act for

Fiscal Year 1991 (Public Law 101–510; 104 Stat. 1832), is— (A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4811;

(C) inserted after the heading for subtitle B of such

title, as added by paragraph (5); and

(D) amended in the section heading by adding a period

at the end.

(7) LIMITATIONS ON USE OF FUNDS FOR LABORATORY

DIRECTED RESEARCH AND DEVELOPMENT.—

(A) LIMITATIONS ON USE OF FUNDS FOR LABORATORY

DIRECTED RESEARCH AND DEVELOPMENT.—Section 3137 of

the National Defense Authorization Act for Fiscal Year

1998 (Public Law 105–85; 111 Stat. 2038), is—

(i) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) redesignated as section 4812;

(iii) inserted after section 4811, as added by paragraph (6);

(iv) amended in subsection (b) by striking ‘‘section

3136(b) of the National Defense Authorization Act for

Fiscal Year 1997 (Public Law 104–201; 110 Stat. 2831;

42 U.S.C. 7257b)’’ and inserting ‘‘section 4812A(b)’’;

(v) amended in subsection (d)—

(I) by striking ‘‘section 3136(b)(1)’’ and

inserting ‘‘section 4812A(b)(1)’’; and

(II) by striking ‘‘section 3132(c) of the National

Defense Authorization Act for Fiscal Year 1991

(42 U.S.C. 7257a(c))’’ and inserting ‘‘section

4811(c)’’; and

(vi) amended in subsection (e) by striking ‘‘section

3132(d) of the National Defense Authorization Act for

Fiscal Year 1991 (42 U.S.C. 7257a(d))’’ and inserting

‘‘section 4811(d)’’. (B) LIMITATION ON USE OF FUNDS FOR CERTAIN

RESEARCH AND DEVELOPMENT PURPOSES.—Section 3136 of

the National Defense Authorization Act for Fiscal Year

1997 (Public Law 104–201; 110 Stat. 2830), as amended

by section 3137 of the National Defense Authorization Act
H. R. 1588—394

for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2038),

is— (i) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year

2003, as amended by this subsection;

(ii) redesignated as section 4812A;

(iii) inserted after section 4812, as added by

subparagraph (A); and

(iv) amended in subsection (a) by inserting ‘‘of

the National Defense Authorization Act for Fiscal Year

1997 (Public Law 104–201)’’ after ‘‘section 3101’’. (8) CRITICAL TECHNOLOGY PARTNERSHIPS.—Section 3136 of

the National Defense Authorization Act for Fiscal Years 1992

and 1993 (Public Law 102–190; 105 Stat. 1577), as amended

by section 203(b)(3) of Public Law 103–35 (107 Stat. 102),

is— (A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4813; and

(C) inserted after section 4812A, as added by paragraph

(7)(B).

(9) UNIVERSITY-BASED RESEARCH COLLABORATION PRO- GRAM.—Section 3155 of the National Defense Authorization

Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2044),

is— (A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4814;

(C) inserted after section 4813, as added by paragraph

(8); and

(D) amended in subsection (c) by striking ‘‘this title’’ and inserting ‘‘title XXXI of the National Defense

Authorization Act for Fiscal Year 1998 (Public Law 105– 85)’’. (10) SUBTITLE HEADING ON FACILITIES MANAGEMENT.—Title

XLVIII of the Bob Stump National Defense Authorization Act

for Fiscal Year 2003, as amended by this subsection, is further

amended by adding at the end the following new subtitle

heading:

‘‘Subtitle C—Facilities Management’’.

(11) TRANSFERS OF REAL PROPERTY AT CERTAIN FACILI- TIES.—Section 3158 of the National Defense Authorization Act

for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 2046),

is— (A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4831; and

(C) inserted after the heading for subtitle C of such

title, as added by paragraph (10).

(12) ENGINEERING AND MANUFACTURING RESEARCH, DEVELOPMENT, AND DEMONSTRATION AT CERTAIN NUCLEAR

WEAPONS PRODUCTION PLANTS.—Section 3156 of the Floyd D.
H. R. 1588—395

Spence National Defense Authorization Act for Fiscal Year

2001 (as enacted into law by Public Law 106–398; 114 Stat.

1654A–467), is— (A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4832; and

(C) inserted after section 4831, as added by paragraph

(11).

(13) PILOT PROGRAM ON USE OF PROCEEDS OF DISPOSAL

OR UTILIZATION OF CERTAIN ASSETS.—Section 3138 of the

National Defense Authorization Act for Fiscal Year 1998 (Public

Law 105–85; 111 Stat. 2039), is— (A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) redesignated as section 4833;

(C) inserted after section 4832, as added by paragraph

(12); and

(D) amended in subsection (d) by striking ‘‘sections

202 and 203(j) of the Federal Property and Administrative

Services Act of 1949 (40 U.S.C. 483 and 484(j))’’ and

inserting ‘‘subchapter II of chapter 5 and section 549 of

title 40, United States Code,’’. (14) SUBTITLE HEADING ON OTHER MATTERS.—Title XLVIII

of the Bob Stump National Defense Authorization Act for Fiscal

Year 2003, as amended by this subsection, is further amended

by adding at the end the following new subtitle heading:

‘‘Subtitle D—Other Matters’’.

(15) SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.— Subsection (f) of section 3153 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

2044), is—

(A) transferred to title XLVIII of the Bob Stump

National Defense Authorization Act for Fiscal Year 2003,

as amended by this subsection;

(B) inserted after the heading for subtitle D of such

title, as added by paragraph (14); and

(C) amended— (i) by inserting before the text the following new

section heading:

‘‘SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.’’;

(ii) by striking ‘‘(f) SEMIANNUAL REPORTS TO CONGRESS OF LOCAL IMPACT ASSISTANCE.—’’; and

(iii) by striking ‘‘section 3161(c)(6) of the National

Defense Authorization Act of 1993 (42 U.S.C.

7274h(c)(6))’’ and inserting ‘‘section 4604(c)(6)’’.

(16) PAYMENT OF COSTS OF OPERATION AND MAINTENANCE

OF INFRASTRUCTURE AT NEVADA TEST SITE.—Section 3144 of

the National Defense Authorization Act for Fiscal Year 1997

(Public Law 104–201; 110 Stat. 2838), is—

(A) transferred to title XLVIII of such Act, as amended

by this subsection;

(B) redesignated as section 4852; and
H. R. 1588—396

(C) inserted after section 4851, as added by paragraph

(15).

(m) CONFORMING AMENDMENTS.—(1) Title XXXVI of the Bob

Stump National Defense Authorization Act for Fiscal Year 2003

(Public Law 107–314; 116 Stat. 1756) is repealed.

(2) Subtitle E of title XXXI of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102–484; 42 U.S.C.

7274h et seq.) is repealed.

(3) Section 8905a(d)(5)(A) of title 5, United States Code, is

amended by striking ‘‘section 3143 of the National Defense

Authorization Act for Fiscal Year 1997 (42 U.S.C. 7274n)’’ and

inserting ‘‘section 4421 of the Atomic Energy Defense Act’’.

TITLE XXXII—DEFENSE NUCLEAR

FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year 2004,

$19,559,000 for the operation of the Defense Nuclear Facilities

Safety Board under chapter 21 of the Atomic Energy Act of 1954

(42 U.S.C. 2286 et seq.).

TITLE XXXIII—NATIONAL DEFENSE

STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

Sec. 3302. Revisions to required receipt objectives for previously authorized disposals from National Defense Stockpile.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE

FUNDS.

(a) OBLIGATION OF STOCKPILE FUNDS.—During fiscal year 2004,

the National Defense Stockpile Manager may obligate up to

$69,701,000 of the funds in the National Defense Stockpile Transaction Fund established under subsection (a) of section 9 of the

Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h)

for the authorized uses of such funds under subsection (b)(2) of

such section, including the disposal of hazardous materials that

are environmentally sensitive.

(b) ADDITIONAL OBLIGATIONS.—The National Defense Stockpile

Manager may obligate amounts in excess of the amount specified

in subsection (a) if the National Defense Stockpile Manager notifies

Congress that extraordinary or emergency conditions necessitate

the additional obligations. The National Defense Stockpile Manager

may make the additional obligations described in the notification

after the end of the 45-day period beginning on the date on which

Congress receives the notification.

(c) LIMITATIONS.—The authorities provided by this section shall

be subject to such limitations as may be provided in appropriations

Acts.
H. R. 1588—397

SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY AUTHORIZED DISPOSALS FROM NATIONAL

DEFENSE STOCKPILE.

Section 3402 of the National Defense Authorization Act for

Fiscal Year 2000 (Public Law 106–65; 113 Stat. 972; 50 U.S.C.

98d note) is amended— (1) in subsection (b)— (A) by striking ‘‘and’’ at the end of paragraph (2);

and

(B) by striking paragraph (3) and inserting the following new paragraphs:

‘‘(3) $340,000,000 before the end of fiscal year 2005; and

‘‘(4) $450,000,000 before the end of fiscal year 2013.’’; and

(2) in subsection (e), by adding at the end the following

new sentence: ‘‘The disposal of materials under this section

to achieve the receipt levels specified in subsection (b), within

the time periods specified in subsection, shall be in addition

to any routine and on-going disposals used to fund operations

of the National Defense Stockpile.’’.

TITLE XXXIV—NAVAL PETROLEUM

RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

(a) AMOUNT.—There are hereby authorized to be appropriated

to the Secretary of Energy $16,500,000 for fiscal year 2004 for

the purpose of carrying out activities under chapter 641 of title

10, United States Code, relating to the naval petroleum reserves.

(b) PERIOD OF AVAILABILITY.—Funds appropriated pursuant to

the authorization of appropriations in subsection (a) shall remain

available until expended.

TITLE XXXV—MARITIME

ADMINISTRATION

Sec. 3501. Short title.

Subtitle A—Maritime Administration Reauthorization

Sec. 3511. Authorization of appropriations for fiscal years 2004, 2005, 2006, 2007,

and 2008.

Sec. 3512. Conveyance of obsolete vessels under title V, Merchant Marine Act,

1936.

Sec. 3513. Authority to convey vessel USS HOIST (ARS–40).

Sec. 3514. Cargo preference.

Sec. 3515. Maritime education and training.

Sec. 3516. Authority to convey obsolete vessels to United States territories and foreign countries for reefing.

Sec. 3517. Maintenance and repair reimbursement pilot program.

Subtitle B—Amendments to Title XI Loan Guarantee Program

Sec. 3521. Equity payments by obligor for disbursement prior to termination of escrow agreement.

Sec. 3522. Waivers of program requirements.

Sec. 3523. Project monitoring.

Sec. 3524. Defaults.

Sec. 3525. Decision period.

Sec. 3526. Loan guarantees.
H. R. 1588—398

Sec. 3527. Annual report on program.

Sec. 3528. Review of program.

Subtitle C—Maritime Security Fleet

Sec. 3531. Establishment of Maritime Security Fleet.

Sec. 3532. Related amendments to existing law.

Sec. 3533. Interim rules.

Sec. 3534. Repeals and conforming amendments.

Sec. 3535. GAO study of adjustment of operating agreement payment criteria.

Sec. 3536. Definitions.

Sec. 3537. Effective dates.

Subtitle D—National Defense Tank Vessel Construction Assistance

Sec. 3541. National defense tank vessel construction program.

Sec. 3542. Application procedure.

Sec. 3543. Award of assistance.

Sec. 3544. Priority for title XI assistance.

Sec. 3545. Definitions.

Sec. 3546. Authorization of appropriations.

SEC. 3501. SHORT TITLE.

This title may be cited as the ‘‘Maritime Security Act of 2003’’.

Subtitle A—Maritime Administration

Reauthorization

SEC. 3511. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS

2004, 2005, 2006, 2007, AND 2008.

There are authorized to be appropriated to the Secretary of

Transportation for the Maritime Administration— (1) for expenses necessary for operations and training activities, not to exceed $104,400,000 for the fiscal year ending

September 30, 2004, $106,000,000 for the fiscal year ending

September 30, 2005, $109,000,000 for the fiscal year ending

September 30, 2006, $111,000,000 for the fiscal year ending

September 30, 2007, and $113,000,000 for the fiscal year ending

September 30, 2008;

(2) for expenses under the loan guarantee program authorized by title XI of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1271 et seq.), $36,000,000 for each of fiscal years 2004,

2005, 2006, 2007, and 2008 of which—

(A) $30,000,000 shall be for the cost (as defined in

section 502(5) of the Federal Credit Reform Act of 1990

(2 U.S.C. 661a(5))) of loan guarantees under the program;

and

(B) $6,000,000 shall be for administrative expenses

related to loan guarantee commitments under the program;

and

(3) for ship disposal, $18,422,000 for fiscal year 2004,

$11,422,000 for each of fiscal years 2005 and 2006, and

$12,000,000 for each of fiscal years 2007 and 2008.

SEC. 3512. CONVEYANCE OF OBSOLETE VESSELS UNDER TITLE V, MERCHANT MARINE ACT, 1936.

Section 508 of the Merchant Marine Act, 1936 (46 U.S.C. App.

1158) is amended—

(1) by inserting ‘‘(a) AUTHORITY TO SCRAP OR SELL OBSOLETE VESSELS.—’’ before ‘‘If’’; and

(2) by adding at the end the following: ‘‘(b) AUTHORITY TO CONVEY VESSELS.—
H. R. 1588—399

‘‘(1) IN GENERAL.—Notwithstanding section 510(j) of this

Act, the Secretary of Transportation may convey the right,

title, and interest of the United States Government in any

vessel of the National Defense Reserve Fleet that has been

identified by the Secretary as an obsolete vessel of insufficient

value to warrant its further preservation, if—

‘‘(A) the recipient is a non-profit organization, a State,

Commonwealth, or possession of the United States or any

municipal corporation or political subdivision thereof, or

the District of Columbia;

‘‘(B) the recipient agrees not to use, or allow others

to use, the vessel for commercial transportation purposes;

‘‘(C) the recipient agrees to make the vessel available

to the Government whenever the Secretary indicates that

it is needed by the Government;

‘‘(D) the recipient agrees to hold the Government harmless for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the vessel, except for claims

arising from use of the vessel by the Government;

‘‘(E) the recipient has a conveyance plan and a business

plan that describes the intended use of the vessel, each

of which have been submitted to and approved by the

Secretary;

‘‘(F) the recipient has provided proof, as determined

by the Secretary, of resources sufficient to accomplish the

transfer, necessary repairs and modifications, and initiation

of the intended use of the vessel; and ‘‘(G) the recipient agrees that when the recipient no

longer requires the vessel for use as described in the business plan required under subparagraph (E)— ‘‘(i) the recipient will, at the discretion of the Secretary, reconvey the vessel to the Government in good

condition except for ordinary wear and tear; or ‘‘(ii) if the Board of Trustees of the recipient has

decided to dissolve the recipient according to the laws

of the State in which the recipient is incorporated,

then— ‘‘(I) the recipient shall distribute the vessel,

as an asset of the recipient, to a person that has

been determined exempt from taxation under the

provisions of section 501(c)(3) of the Internal Revenue Code, or to the Federal Government or a

State or local government for a public purpose;

and

‘‘(II) the vessel shall be disposed of by a court

of competent jurisdiction of the county in which

the principal office of the recipient is located, for

such purposes as the court shall determine, or

to such organizations as the court shall determine

are organized exclusively for public purposes.

‘‘(2) OTHER EQUIPMENT.—At the Secretary’s discretion,

additional equipment from other obsolete vessels of the National

Defense Reserve Fleet may be conveyed to assist the recipient

with maintenance, repairs, or modifications. ‘‘(3) ADDITIONAL TERMS.—The Secretary may require any

additional terms the Secretary considers appropriate.
H. R. 1588—400

‘‘(4) DELIVERY OF VESSEL.—If conveyance is made under

this subsection the vessel shall be delivered to the recipient

at a time and place to be determined by the Secretary. The

vessel shall be conveyed in an ‘as is’ condition.

‘‘(5) LIMITATIONS.—If at any time prior to delivery of the

vessel to the recipient, the Secretary determines that a different

disposition of a vessel would better serve the interests of the

Government, the Secretary shall pursue the more favorable

disposition of the obsolete vessel and shall not be liable for

any damages that may result from an intended recipient’s

reliance upon a proposed transfer.

‘‘(6) REVERSION.—The Secretary shall include in any

conveyance under this subsection terms under which all right,

title, and interest conveyed by the Secretary shall revert to

the United States if the Secretary determines the vessel has

been used other than as described in the business plan required

under paragraph (1)(E).’’.

SEC. 3513. AUTHORITY TO CONVEY VESSEL USS HOIST (ARS–40).

(a) IN GENERAL.—Notwithstanding section 510(j) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1160(j)), the Secretary

of Transportation may convey the right, title, and interest of the

United States Government in and to the vessel USS HOIST (ARS–

40), to the Last Patrol Museum, located in Toledo, Ohio (a notfor-profit corporation, in this section referred to as the ‘‘recipient’’),

for use as a military museum, if—

(1) the recipient agrees to use the vessel as a nonprofit

military museum;

(2) the recipient agrees not to use, or allow others to

use, the vessel for commercial transportation purposes;

(3) the recipient agrees to make the vessel available to

the Government whenever the Secretary indicates that it is

needed by the Government;

(4) the recipient agrees that when the recipient no longer

requires the vessel for use as a military museum—

(A) the recipient will, at the discretion of the Secretary,

reconvey the vessel to the Government in good condition

except for ordinary wear and tear; or

(B) if the Board of Trustees of the recipient has decided

to dissolve the recipient according to the laws of the State

in which the recipient is incorporated, then—

(i) the recipient shall distribute the vessel, as an

asset of the recipient, to a person that has been determined exempt from taxation under the provisions of

section 501(c)(3) of the Internal Revenue Code, or to

the Federal Government or a State or local government

for a public purpose; and

(ii) the vessel shall be disposed of by a court of

competent jurisdiction of the county in which the principal office of the recipient is located, for such purposes

as the court shall determine, or to such organizations

as the court shall determine are organized exclusively

for public purposes;
H. R. 1588—401

(5) the recipient agrees to hold the Government harmless

for any claims arising from exposure to asbestos, polychlorinated biphenyls, lead paint, or other hazardous substances after conveyance of the vessel, except for claims arising

from use of the vessel by the Government;

(6) the recipient has available, for use to restore the vessel,

in the form of cash, liquid assets, or a written loan commitment,

financial resources of at least $100,000; and

(7) the recipient has a conveyance plan and a business

plan that describes the intended use of the vessel, each of

which have been submitted to and approved by the Secretary.

(b) DELIVERY OF VESSEL.—If a conveyance is made under this

section, the Secretary shall deliver the vessel at the place where

the vessel is located on the date of the enactment of this Act,

in its present condition, and without cost to the Government.

(c) OTHER UNNEEDED EQUIPMENT.—The Secretary may also

convey any unneeded equipment from other vessels in the National

Defense Reserve Fleet in order to restore the USS HOIST (ARS– 40) to museum quality.

(d) RETENTION OF VESSEL IN NDRF.— (1) IN GENERAL.—The Secretary shall retain in the National

Defense Reserve Fleet the vessel authorized to be conveyed

under subsection (a), until the earlier of— (A) 2 years after the date of the enactment of this

Act; or

(B) the date of conveyance of the vessel under subsection (a).

(2) LIMITATION.—Paragraph (1) does not require the Secretary to retain the vessel in the National Defense Reserve

Fleet if the Secretary determines that retention of the vessel

in the fleet will pose an unacceptable risk to the marine

environment.

SEC. 3514. CARGO PREFERENCE.

Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C

App. 1241f(c)(2)) is amended by striking ‘‘1986.’’ and inserting ‘‘1986,

the 18-month period beginning April 1, 2002, and the 12-month

period beginning October 1, 2003, and each year thereafter.’’.

SEC. 3515. MARITIME EDUCATION AND TRAINING.

(a) COST OF EDUCATION DEFINED.—Section 1302 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1295a) is amended— (1) by striking ‘‘and’’ after the semicolon in paragraph

(3);

(2) by striking ‘‘States.’’ in paragraph (4)(B) and inserting ‘‘States; and’’; and

(3) by adding at the end the following:

‘‘(5) the term ‘cost of education provided’ means the financial costs incurred by the Federal Government for providing

training or financial assistance to students at the United States

Merchant Marine Academy and the State maritime academies,

including direct financial assistance, room, board, classroom

academics, and other training activities.’’.

(b) COMMITMENT AGREEMENTS.—Section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1295b(e)) is amended—

(1) by striking ‘‘Academy, unless the individual is separated

from the’’ in paragraph (1)(A);

(2) by striking paragraph (1)(C) and inserting the following:
H. R. 1588—402

‘‘(C) to maintain a valid license as an officer in the merchant marine of the United States for at least 6 years following

the date of graduation from the Academy of such individual,

accompanied by the appropriate national and international

endorsements and certification as required by the United States

Coast Guard for service aboard vessels on domestic and international voyages;’’;

(3) by striking paragraph (1)(E)(iii) and inserting the following:

‘‘(iii) as a commissioned officer on active duty in an

armed force of the United States, as a commissioned officer

in the National Oceanic and Atmospheric Administration,

or other maritime-related employment with the Federal

Government which serves the national security interests

of the United States, as determined by the Secretary; or’’;

(4) by striking paragraph (2) and inserting the following:

‘‘(2)(A) If the Secretary determines that any individual who

has attended the Academy for not less than 2 years has failed

to fulfill the part of the agreement required by paragraph (1)(A),

such individual may be ordered by the Secretary of Defense to

active duty in one of the armed forces of the United States to

serve for a period of time not to exceed 2 years. In cases of hardship

as determined by the Secretary, the Secretary may waive this

provision in whole or in part.

‘‘(B) If the Secretary of Defense is unable or unwilling to order

an individual to active duty under subparagraph (A), or if the

Secretary of Transportation determines that reimbursement of the

cost of education provided would better serve the interests of the

United States, the Secretary may recover from the individual the

cost of education provided by the Federal Government.’’;

(5) by striking paragraph (3) and inserting the following: ‘‘(3)(A) If the Secretary determines that an individual has failed

to fulfill any part of the agreement required by paragraph (1),

as described in paragraph (1)(B), (C), (D), (E), or (F), such individual

may be ordered to active duty to serve a period of time not less

than 3 years and not more than the unexpired portion, as determined by the Secretary, of the service required by paragraph (1)(E).

The Secretary, in consultation with the Secretary of Defense, shall

determine in which service the individual shall be ordered to active

duty to serve such period of time. In cases of hardship, as determined by the Secretary, the Secretary may waive this provision

in whole or in part. ‘‘(B) If the Secretary of Defense is unable or unwilling to order

an individual to active duty under subparagraph (A), or if the

Secretary of Transportation determines that reimbursement of the

cost of education provided would better serve the interests of the

United States, the Secretary may recover from the individual the

cost of education provided and may reduce the amount to be recovered from such individual to reflect partial performance of service

obligations and such other factors as the Secretary determines

merit such a reduction.’’; and

(6) by redesignating paragraph (4) as paragraph (5) and

inserting after paragraph (3) the following:

‘‘(4) To aid in the recovery of the cost of education provided

by the Federal Government pursuant to a commitment agreement

under this section, the Secretary may request the Attorney General

to begin court proceedings, and the Secretary may make use of
H. R. 1588—403

the Federal debt collection procedures in chapter 176 of title 28,

United States Code, or other applicable administrative remedies.’’.

(c) DEGREES AWARDED.—Section 1303(g) of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1295b(g)) is amended to read

as follows:

‘‘(g) DEGREES AWARDED.—

‘‘(1) BACHELOR’S DEGREE.—The Superintendent of the

Academy may confer the degree of bachelor of science upon

any individual who has met the conditions prescribed by the

Secretary and who, if a citizen of the United States, has passed

the examination for a merchant marine officer’s license. No

individual may be denied a degree under this subsection

because the individual is not permitted to take such examination solely because of physical disqualification.

‘‘(2) MASTER’S DEGREE.—The Superintendent of the

Academy may confer a master’s degree upon any individual

who has met the conditions prescribed by the Secretary. Any

master’s degree program may be funded through non-appropriated funds. In order to maintain the appropriate academic

standards, the program shall be accredited by the appropriate

accreditation body. The Secretary may make regulations necessary to administer such a program.’’.

(d) STUDENT INCENTIVE PAYMENTS.—Section 1304(g) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1295c(g)) is amended—

(1) by striking ‘‘$3,000’’ in paragraph (1) and inserting

‘‘$4,000’’;

(2) in paragraph (3)(A) by striking ‘‘attending, unless the

individual is separated by such academy;’’ and inserting

‘‘attending;’’;

(3) by striking paragraph (3)(C) and inserting the following:

‘‘(C) to maintain a valid license as an officer in the merchant marine of the United States for at least 6 years following

the date of graduation from such State maritime academy

of such individual, accompanied by the appropriate national

and international endorsements and certification as required

by the United States Coast Guard for service aboard vessels

on domestic and international voyages;’’;

(4) by striking paragraph (3)(E)(iii) and inserting the following:

‘‘(iii) as a commissioned officer on active duty in an

armed force of the United States, as a commissioned officer

in the National Oceanic and Atmospheric Administration,

or in other maritime-related employment with the Federal

Government which serves the national security interests

of the United States, as determined by the Secretary; or’’;

(5) by striking paragraph (4) and inserting the following:

‘‘(4)(A) If the Secretary determines that an individual who

has accepted the payment described in paragraph (1) for a minimum

of 2 academic years has failed to fulfill the part of the agreement

required by paragraph (1) and described in paragraph (3)(A), such

individual may be ordered by the Secretary of Defense to active

duty in the Armed Forces of the United States to serve for a

period of time not to exceed 2 years. In cases of hardship, as

determined by the Secretary, the Secretary may waive this provision

in whole or in part.

‘‘(B) If the Secretary of Defense is unable or unwilling to order

an individual to active duty under subparagraph (A), or if the
H. R. 1588—404

Secretary of Transportation determines that reimbursement of the

cost of education provided would better serve the interests of the

United States, the Secretary—

‘‘(i) subject to clause (ii), may recover from the individual

the amount of student incentive payments, plus interest and

attorneys fees; and

‘‘(ii) may reduce the amount to be recovered from such

individual to reflect partial performance of service obligations

and such other factors as the Secretary determines merit such

reduction.’’;

(6) by striking paragraph (5) and inserting the following:

‘‘(5)(A) If the Secretary determines that an individual has failed

to fulfill any part of the agreement required by paragraph (1),

as described in paragraph (3)(B), (C), (D), (E), or (F), such individual

may be ordered to active duty to serve a period of time not less

than 2 years and not more than the unexpired portion, as determined by the Secretary, of the service required by paragraph (3)(E).

The Secretary, in consultation with the Secretary of Defense, shall

determine in which service the individual shall be ordered to active

duty to serve such period of time. In cases of hardship, as determined by the Secretary, the Secretary may waive this provision

in whole or in part.

‘‘(B) If the Secretary of Defense is unable or unwilling to order

an individual to active duty under subparagraph (A), or if the

Secretary of Transportation determines that reimbursement of the

cost of education provided would better serve the interests of the

United States, the Secretary—

‘‘(i) subject to clause (ii), may recover from the individual

the amount of student incentive payments, plus interest and

attorneys fees; and ‘‘(ii) may reduce the amount to be recovered from such

individual to reflect partial performance of service obligations

and such other factors as the Secretary determines merit such

reduction.’’; and

(7) by redesignating paragraphs (6) and (7) as paragraphs

(7) and (8), respectively, and inserting after paragraph (5) the

following:

‘‘(6) To aid in the recovery of student incentive payments plus

interest and attorneys fees the Secretary may request the Attorney

General to begin court proceedings, and the Secretary may make

use of the Federal debt collection procedures in chapter 176 of

title 28, United States Code, and other applicable administrative

remedies.’’. (e) AWARDS AND MEDALS.—Section 1306 of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1295e) is amended by adding

at the end the following:

‘‘(d) AWARDS AND MEDALS.—The Secretary may establish and

maintain a medals and awards program to recognize distinguished

service, superior achievement, professional performance, and other

commendable achievement by personnel of the United States Maritime Service.’’.

SEC. 3516. AUTHORITY TO CONVEY OBSOLETE VESSELS TO UNITED

STATES TERRITORIES AND FOREIGN COUNTRIES FOR

REEFING.

(a) DEADLINE FOR PREPARATION.—Paragraph (1) of section

3504(b) of the Bob Stump National Defense Authorization Act for
H. R. 1588—405

Fiscal Year 2003 (Public Law 107–314; 116 Stat. 2754; 16 U.S.C.

1220 note) is amended by striking ‘‘September 30, 2003,’’ and

inserting ‘‘March 31, 2004,’’.

(b) GUIDANCE ON PRACTICES.—Such section is further

amended—

(1) in paragraph (1), by inserting ‘‘guidance recommending’’

after ‘‘jointly develop’’;

(2) in paragraph (2), by inserting ‘‘guidance recommending’’

before ‘‘environmental best management practices’’;

(3) in paragraph (3)—

(A) in subparagraph (A), by inserting ‘‘recommended’’

after ‘‘include’’;

(B) by striking subparagraph (B) and inserting the

following new subparagraph (B):

‘‘(B) promote consistent use of such practices nationwide;’’;

and

(C) in subparagraph (C), by striking ‘‘establish baselines’’ and inserting ‘‘provide a basis’’; and

(4) in paragraph (4), by striking ‘‘guidelines to be used

by’’ and inserting ‘‘guidance for’’.

(c) APPLICATIONS FOR PREPARATION OF VESSELS AS REEFS.—

Such section is further amended—

(1) by redesignating paragraph (5) as paragraph (6); and

(2) by inserting after paragraph (4) the following new paragraph (5):

‘‘(5) Not later than March 31, 2004, the Secretary of Transportation, acting through the Maritime Administration, and the

Administrator of the Environmental Protection Agency shall jointly

establish an application process for governments of States, commonwealths, and United States territories and possession, and foreign

governments, for the preparation of vessels for use as artificial

reefs, including documentation and certification requirements for

that application process.’’.

SEC. 3517. MAINTENANCE AND REPAIR REIMBURSEMENT PILOT PROGRAM.

(a) AUTHORITY TO ENTER AGREEMENTS.—

(1) IN GENERAL.—The Secretary of Transportation may

carry out a pilot program under which the Secretary may

enter into an agreement with a contractor under chapter 531

of title 46, United States Code, as amended by this Act,

regarding maintenance and repair of a vessel that is subject

to an operating agreement under that chapter.

(2) LIMITATION.—The Secretary may not require a person

to enter into an agreement under this section, including as

a condition of awarding an operating agreement to the person

under chapter 531 of title 46, United States Code, as amended

by this Act.

(b) TERMS OF AGREEMENT.—An agreement under this section—

(1) shall require that except as provided in subsection

(c), all qualified maintenance or repair on the vessel shall

be performed in the United States;

(2) shall require that the Secretary shall reimburse the

contractor in accordance with subsection (d) for the costs of

qualified maintenance or repair performed in the United States;

and
H. R. 1588—406

(3) shall apply to maintenance and repair performed during

the 5-year period beginning on the date the vessel begins operating under the operating agreement under chapter 531 of

title 46, United States Code.

(c) EXCEPTION TO REQUIREMENT TO PERFORM WORK IN THE

UNITED STATES.—A contractor shall not be required to have qualified maintenance or repair work performed in the United States

under this section, if the Secretary determines that—

(1) there is no facility in the United States available to

perform the work; or

(2) there is not available to the Secretary sufficient funds

to pay reimbursement under subsection (d) with respect to

the work.

(d) REIMBURSEMENT.—

(1) IN GENERAL.—The Secretary shall, subject to the availability of appropriations, reimburse a contractor for costs

incurred by the contractor for qualified maintenance or repair

performed in the United States under this section.

(2) AMOUNT.—The amount of reimbursement shall be equal

to 80 percent of the difference between—

(A) the fair and reasonable cost of obtaining the qualified maintenance or repair in the United States; and

(B) the fair and reasonable cost of obtaining the qualified maintenance or repair outside the United States, in

the geographic region in which the vessel generally operates.

(3) DETERMINATION OF FAIR AND REASONABLE COSTS.—The

Secretary shall determine fair and reasonable costs for purposes

of paragraph (2).

(e) NOTIFICATION REQUIREMENTS.—

(1) NOTIFICATION BY CONTRACTOR.—The Secretary is not

required to pay reimbursement to a contractor under this section for qualified maintenance or repair, unless the contractor—

(A) notifies the Secretary of the intent of the contractor

to obtain the qualified maintenance or repair, by not later

than 180 days before the date of the performance of the

qualified maintenance or repair; and

(B) includes in such notification—

(i) a description of all qualified maintenance or

repair that the contractor should reasonably expect

may be performed;

(ii) an estimate of the cost of obtaining such qualified maintenance or repair in the United States; and

(iii) an estimate of the cost of obtaining such qualified maintenance or repair outside the United States,

in the geographic region in which the vessel generally

operates.

(2) CERTIFICATION BY SECRETARY.—Not later than 60 days

after the date of receipt of notification under paragraph (1),

the Secretary shall certify to the contractor—

(A) whether there is a facility in the United States

available to perform the qualified maintenance or repair

described in the notification by the contractor under paragraph (1); and

(B) whether there is available to the Secretary sufficient funds to pay reimbursement under subsection (d)

with respect to such work.
H. R. 1588—407

(f) QUALIFIED MAINTENANCE OR REPAIR DEFINED.—In this section the term ‘‘qualified maintenance or repair’’—

(1) except as provided in paragraph (2), means—

(A) any inspection of a vessel that is—

(i) required under chapter 33 of title 46, United

States Code; and

(ii) performed in the period in which the vessel

is subject to an agreement under this section; and

(B) any maintenance or repair of a vessel that is determined, in the course of an inspection referred to in subparagraph (A), to be necessary to comply with the laws of

the United States; and

(2) does not include—

(A) routine maintenance or repair; or

(B) any emergency work that is necessary to enable

a vessel to return to a port in the United States.

(g) ANALYSIS.—

(1) IN GENERAL.—Not later than October 1, 2004, the Secretary of Transportation shall submit to the Committee on

Armed Services of the House of Representatives and the Committee on Armed Services and the Committee on Commerce,

Science, and Transportation of the Senate, an analysis of the

need for agreements authorized by this section.

(2) CONDUCT AND CONSIDERATIONS.—In conducting the

analysis, the Secretary shall consider the overall costs and

benefits of the pilot program, including the following:

(A) The impact on operations of vessels in the program.

(B) The availability of repair shipyards and drydocks

in the various regions of the United States (as that term

is defined in such chapter) that are capable of handling

such vessels that are ocean-going vessels.

(C) The experience of such shipyards in repairing the

types of such vessels.

(D) A comparison of drydock and repair costs between

available United States and foreign shipyards located

within the geographic range of the trading area of such

vessels.

(E) A comparison of the time period required for the

drydocking and repair of such vessels between available

United States shipyards and foreign shipyards.

(F) The impact of the voyage deviation of such vessels

to United States shipyards.

(G) The benefits to the Department of Defense of

having a vessel repair base in the United States to accelerate the activation of the Ready Reserve Fleet.

(H) The benefits of extending the program to all vessels

that are subject to operating agreements under chapter

531 of title 46, United States Code, as amended by this

Act.

(3) RECOMMENDATIONS.—The Secretary shall include in the

analysis recommendations of any additional incentives that

are necessary to encourage participation in the program.

(h) AUTHORIZATION OF APPROPRIATIONS.—In addition to the

other amounts authorized by this subtitle, for reimbursement of

costs of qualified maintenance or repair under this section there

is authorized to be appropriated to the Secretary of Transportation

$19,500,000 for each of fiscal years 2006 through 2011.
H. R. 1588—408

Subtitle B—Amendments to Title XI Loan

Guarantee Program

SEC. 3521. EQUITY PAYMENTS BY OBLIGOR FOR DISBURSEMENT PRIOR

TO TERMINATION OF ESCROW AGREEMENT.

(a) IN GENERAL.—Section 1108 of the Merchant Marine Act,

1936 (46 U.S.C. App. 1279a) is amended by adding at the end

the following: ‘‘(g) PAYMENTS REQUIRED BEFORE DISBURSEMENT.— ‘‘(1) IN GENERAL.—No disbursement shall be made under

subsection (b) to any person until the total amount paid by

or for the account of the obligor from sources other than the

proceeds of the obligation equals at least 25 percent or 121⁄2

percent, whichever is applicable under section 1104A, of the

aggregate actual cost of the vessel, as previously approved

by the Secretary. If the aggregate actual cost of the vessel

has increased since the Secretary’s initial approval or if it

increases after the first disbursement is permitted under this

subsection, then no further disbursements shall be made under

subsection (b) until the total amount paid by or for the account

of the obligor from sources other than the proceeds of the

obligation equals at least 25 percent or 121⁄2 percent, as

applicable, of the increase, as determined by the Secretary,

in the aggregate actual cost of the vessel. Nothing in this

paragraph shall require the Secretary to consent to finance

any increase in actual cost unless the Secretary determines

that such an increase in the obligation meets all the terms

and conditions of this title or other applicable law. ‘‘(2) DOCUMENTED PROOF OF PROGRESS REQUIREMENT.—The

Secretary shall, by regulation, establish a transparent, independent, and risk-based process for verifying and documenting

the progress of projects under construction before disbursing

guaranteed loan funds. At a minimum, the process shall require

documented proof of progress in connection with the construction, reconstruction, or reconditioning of a vessel or vessels

before disbursements are made from the escrow fund. The

Secretary may require that the obligor provide a certificate

from an independent party certifying that the requisite progress

in construction, reconstruction, or reconditioning has taken

place.’’. (b) DEFINITION OF ACTUAL COST.—Section 1101(f) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271(f)) is amended to

read as follows: ‘‘(f) ACTUAL COST DEFINED.—The term ‘actual cost’ means the

sum of—

‘‘(1) all amounts paid by or for the account of the obligor

as of the date on which a determination is made under section

1108(g)(1); and ‘‘(2) all amounts that the Secretary reasonably estimates

that the obligor will become obligated to pay from time to

time thereafter, for the construction, reconstruction, or reconditioning of the vessel, including guarantee fees that will become

payable under section 1104A(e) in connection with all obligations issued for construction, reconstruction, or reconditioning

of the vessel or equipment to be delivered, and all obligations

issued for the delivered vessel or equipment.’’.
H. R. 1588—409

SEC. 3522. WAIVERS OF PROGRAM REQUIREMENTS.

Section 1104A(d) of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1274(d)) is amended by redesignating paragraph (4) as paragraph (5), and inserting after paragraph (3) the following: ‘‘(4) The Secretary shall promulgate regulations concerning

circumstances under which waivers of or exceptions to otherwise applicable regulatory requirements concerning financial

condition can be made. The regulations shall require that— ‘‘(A) the economic soundness requirements set forth

in paragraph (1)(A) of this subsection are met after the

waiver of the financial condition requirement; and ‘‘(B) the waiver shall provide for the imposition of

other requirements on the obligor designed to compensate

for the increased risk associated with the obligor’s failure

to meet regulatory requirements applicable to financial

condition.’’.

SEC. 3523. PROJECT MONITORING.

(a) PROJECT MONITORING.—Section 1104A of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1274) is amended by adding

at the end the following:

‘‘(k) MONITORING.—The Secretary shall monitor the financial

conditions and operations of the obligor on a regular basis during

the term of the guarantee. The Secretary shall document the results

of the monitoring on an annual or quarterly basis depending upon

the condition of the obligor. If the Secretary determines that the

financial condition of the obligor warrants additional protections

to the Secretary, then the Secretary shall take appropriate action

under subsection (m) of this section. If the Secretary determines

that the financial condition of the obligor jeopardizes its continued

ability to perform its responsibilities in connection with the guarantee of obligations by the Secretary, the Secretary shall make

an immediate determination whether default should take place

and whether further measures described in subsection (m) should

be taken to protect the interests of the Secretary while insuring

that program objectives are met.’’.

(b) SEPARATION OF DUTIES AND OTHER REQUIREMENTS.—Section

1104A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274),

as amended by subsection (a), is further amended by adding at

the end the following:

‘‘(l) REVIEW OF APPLICATIONS.—No commitment to guarantee,

or guarantee of, an obligation shall be made by the Secretary

unless the Secretary certifies that a full and fair consideration

of all the regulatory requirements, including economic soundness

and financial requirements applicable to obligors and related parties, and a thorough assessment of the technical, economic, and

financial aspects of the loan application has been made.

‘‘(m) AGREEMENT WITH OBLIGOR.—The Secretary shall include

provisions in loan agreements with obligors that provide additional

authority to the Secretary to take action to limit potential losses

in connection with defaulted loans or loans that are in jeopardy

due to the deteriorating financial condition of obligors. Provisions

that the Secretary shall include in loan agreements include requirements for additional collateral or greater equity contributions that

are effective upon the occurrence of verifiable conditions relating

to the obligors financial condition or the status of the vessel or

shipyard project.’’.
H. R. 1588—410

SEC. 3524. DEFAULTS.

Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1275) is amended by adding at the end the following: ‘‘(f) DEFAULT RESPONSE.—In the event of default on an obligation, the Secretary shall conduct operations under this title in

a manner which— ‘‘(1) maximizes the net present value return from the sale

or disposition of assets associated with the obligation, including

prompt referral to the Attorney General for collection as appropriate; ‘‘(2) minimizes the amount of any loss realized in the resolution of the guarantee; ‘‘(3) ensures adequate competition and fair and consistent

treatment of offerors; and ‘‘(4) requires appraisal of assets by an independent

appraiser.’’.

SEC. 3525. DECISION PERIOD.

Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1274), as amended by section 3523, is amended by adding

at the end the following:

‘‘(n) DECISION PERIOD.—

‘‘(1) IN GENERAL.—The Secretary of Transportation shall

approve or deny an application for a loan guarantee under

this title within 270 days after the date on which the signed

application is received by the Secretary.

‘‘(2) EXTENSION.—Upon request by an applicant, the Secretary may extend the 270-day period in paragraph (1) to

a date not later than 2 years after the date on which the

signed application for the loan guarantee was received by the

Secretary.’’.

SEC. 3526. LOAN GUARANTEES.

Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1274) is amended—

(1) by striking subsection (d)(5); and

(2) in subsection (f)—

(A) by striking ‘‘(including for obtaining independent

analysis under subsection (d)(4))’’;

(B) by inserting ‘‘(1)’’ after ‘‘(f)’’; and

(C) by adding at the end the following:

‘‘(2) The Secretary may make a determination that aspects

of an application under this title require independent analysis to

be conducted by third party experts due to risk factors associated

with markets, technology, financial structures, or other risk factors

identified by the Secretary. Any independent analysis conducted

pursuant to this provision shall be performed by a party chosen

by the Secretary.

‘‘(3) Notwithstanding any other provision of this title, the Secretary may make a determination that an application under this

title requires additional equity because of increased risk factors

associated with markets, technology, financial structures, or other

risk factors identified by the Secretary. ‘‘(4) The Secretary may charge and collect fees to cover the

costs of independent analysis under paragraph (2). Notwithstanding

section 3302 of title 31, United States Code, any fee collected

under this paragraph shall—
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‘‘(A) be credit as an offsetting collection to the account

that finances the administration of the loan guarantee program; ‘‘(B) shall be available for expenditure only to pay the

costs of activities and services for which the fee is imposed;

and ‘‘(C) shall remain available until expended.’’.

SEC. 3527. ANNUAL REPORT ON PROGRAM.

The Secretary of Transportation shall report to Congress

annually on the loan guarantee program under title XI of the

Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.). The

reports shall include— (1) the size, in dollars, of the portfolio of loans guaranteed;

(2) the size, in dollars, of projects in the portfolio facing

financial difficulties;

(3) the number and type of projects covered;

(4) a profile of pending loan applications;

(5) the amount of appropriations available for new guarantees;

(6) a profile of each project approved since the last report;

and

(7) a profile of any defaults since the last report.

SEC. 3528. REVIEW OF PROGRAM.

(a) IN GENERAL.—The Secretary of Transportation shall conduct

a comprehensive assessment of the human capital and other

resource needs in connection with the title XI loan guarantee program under the Merchant Marine Act, 1936 (46 U.S.C. App. 1271

et seq.). In connection with this assessment, the Secretary shall

develop an organizational framework for the program offices that

insures that a clear separation of duties is established among

the loan application, project monitoring, and default management

functions.

(b) PROGRAM ENHANCEMENTS.— (1) Section 1103(h)(1) of the Merchant Marine Act, 1936

(46 U.S.C. App. 1273(h)(1)) is amended— (A) by striking ‘‘subsection’’ in subparagraph (A) and

inserting ‘‘subsection, and update annually,’’;

(B) by inserting ‘‘annually’’ before ‘‘determine’’ in

subparagraph (B);

(C) by striking ‘‘and’’ after the semicolon in subparagraph (A);

(D) by striking ‘‘category.’’ in subparagraph (B) and

inserting ‘‘category; and’’; and

(E) by adding at the end the following:

‘‘(C) ensure that each risk category is comprised of

loans that are relatively homogeneous in cost and share

characteristics predictive of defaults and other costs, given

the facts known at the time of obligation or commitment,

using a risk category system that is based on historical

analysis of program data and statistical evidence concerning the likely costs of defaults or other costs that

expected to be associated with the loans in the category.’’.

(2) Section 1103(h)(2)(A) of that Act (46 U.S.C. App.

1273(h)(2)(A)) is amended by inserting ‘‘and annually for

projects subject to a guarantee,’’ after ‘‘obligation,’’.

(3) Section 1103(h)(3) of that Act (46 U.S.C. App. 1273(h)(3))

is amended by adding at the end the following:
H. R. 1588—412

‘‘(K) A risk factor for concentration risk reflecting the

risk presented by an unduly large percentage of loans

outstanding by any 1 borrower or group of affiliated borrowers.’’.

(c) REPORT.—The Secretary shall report to the Committee on

Armed Services and the Committee on Commerce, Science, and

Transportation of the Senate and the Committee on Armed Services

of the House of Representatives on the results of the development

of an organizational framework under subsection (a) by January

2, 2004.

Subtitle C—Maritime Security Fleet

SEC. 3531. ESTABLISHMENT OF MARITIME SECURITY FLEET.

(a) IN GENERAL.—Title 46, United States Code, is amended

by inserting before subtitle VI the following new subtitle:

‘‘Subtitle V—Merchant Marine

‘‘Chap. Sec.

‘‘531. Maritime Security Fleet ........................................................................ 53101

‘‘CHAPTER 531—MARITIME SECURITY FLEET

‘‘Sec.

‘‘53101. Definitions.

‘‘53102. Establishment of Maritime Security Fleet.

‘‘53103. Award of operating agreements.

‘‘53104. Effectiveness of operating agreements.

‘‘53105. Obligations and rights under operating agreements.

‘‘53106. Payments.

‘‘53107. National security requirements.

‘‘53108. Regulatory relief.

‘‘53109. Special rule regarding age of participating fleet vessel.

‘‘53110. Regulations.

‘‘53111. Authorization of appropriations.

‘‘§ 53101. Definitions

‘‘In this chapter:

‘‘(1) BULK CARGO.—The term ‘bulk cargo’ means cargo that

is loaded and carried in bulk without mark or count.

‘‘(2) CONTRACTOR.—The term ‘contractor’ means an owner

or operator of a vessel that enters into an operating agreement

for the vessel with the Secretary under section 53103.

‘‘(3) FLEET.—The term ‘Fleet’ means the Maritime Security

Fleet established under section 53102(a).

‘‘(4) FOREIGN COMMERCE.—The term ‘foreign commerce’—

‘‘(A) subject to subparagraph (B), means—

‘‘(i) commerce or trade between the United States,

its territories or possessions, or the District of

Columbia, and a foreign country; and

‘‘(ii) commerce or trade between foreign countries;

and

‘‘(B) includes, in the case of liquid and dry bulk cargo

carrying services, trading between foreign ports in accordance with normal commercial bulk shipping practices in

such manner as will permit United States-documented vessels freely to compete with foreign-flag bulk carrying vessels in their operation or in competing for charters, subject

to rules and regulations promulgated by the Secretary of
H. R. 1588—413

Transportation pursuant to this chapter or subtitle D of

the Maritime Security Act of 2003.

‘‘(5) LASH VESSEL.—The term ‘LASH vessel’ means a

lighter aboard ship vessel.

‘‘(6) PARTICIPATING FLEET VESSEL.—The term ‘participating

fleet vessel’ means any vessel that—

‘‘(A) on October 1, 2005—

‘‘(i) meets the requirements of paragraph (1), (2),

(3), or (4) of section 53102(c); and

‘‘(ii) is less than 25 years of age, or less than

30 years of age in the case of a LASH vessel; and

‘‘(B) on December 31, 2004, is covered by an operating

agreement under subtitle B of title VI of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1187 et seq.).

‘‘(7) PERSON.—The term ‘person’ includes corporations, partnerships, and associations existing under or authorized by the

laws of the United States, or any State, Territory, District,

or possession thereof, or of any foreign country.

‘‘(8) PRODUCT TANK VESSEL.—The term ‘product tank vessel’

means a double hulled tank vessel capable of carrying simultaneously more than 2 separated grades of refined petroleum

products.

‘‘(9) SECRETARY.—The term ‘Secretary’ means the Secretary

of Transportation.

‘‘(10) TANK VESSEL.—The term ‘tank vessel’ has the

meaning that term has under section 2101 of this title.

‘‘(11) UNITED STATES.—The term ‘United States’ includes

the District of Columbia, the Commonwealth of Puerto Rico,

the Northern Mariana Islands, Guam, American Samoa, the

Virgin Islands.

‘‘(12) UNITED STATES CITIZEN TRUST.—(A) Subject to

subparagraph (C), the term ‘United States citizen trust’ means

a trust that is qualified under this paragraph.

‘‘(B) A trust is qualified under this paragraph with respect

to a vessel only if—

‘‘(i) each of the trustees is a citizen of the United

States; and

‘‘(ii) the application for documentation of the vessel

under chapter 121 of this title includes the affidavit of

each trustee stating that the trustee is not aware of any

reason involving a beneficiary of the trust that is not

a citizen of the United States, or involving any other person

that is not a citizen of the United States, as a result

of which the beneficiary or other person would hold more

than 25 percent of the aggregate power to influence or

limit the exercise of the authority of the trustee with

respect to matters involving any ownership or operation

of the vessel that may adversely affect the interests of

the United States.

‘‘(C) If any person that is not a citizen of the United

States has authority to direct or participate in directing a

trustee for a trust in matters involving any ownership or operation of the vessel that may adversely affect the interests

of the United States or in removing a trustee for a trust

without cause, either directly or indirectly through the control

of another person, the trust is not qualified under this paragraph unless the trust instrument provides that persons who
H. R. 1588—414

are not citizens of the United States may not hold more than

25 percent of the aggregate authority to so direct or remove

a trustee.

‘‘(D) This paragraph shall not be considered to prohibit

a person who is not a citizen of the United States from holding

more than 25 percent of the beneficial interest in a trust.

‘‘(13) UNITED STATES-DOCUMENTED VESSEL.—The term

‘United States-documented vessel’ means a vessel documented

under chapter 121 of this title.

‘‘§ 53102. Establishment of Maritime Security Fleet

‘‘(a) IN GENERAL.—The Secretary of Transportation, in consultation with the Secretary of Defense, shall establish a fleet of active,

commercially viable, militarily useful, privately owned vessels to

meet national defense and other security requirements and maintain a United States presence in international commercial shipping.

The Fleet shall consist of privately owned, United States-documented vessels for which there are in effect operating agreements

under this chapter, and shall be known as the Maritime Security

Fleet.

‘‘(b) VESSEL ELIGIBILITY.—A vessel is eligible to be included

in the Fleet if—

‘‘(1) the vessel meets the requirements of paragraph (1),

(2), (3), or (4) of subsection (c);

‘‘(2) the vessel is operated (or in the case of a vessel

to be constructed, will be operated) in providing transportation

in foreign commerce;

‘‘(3) the vessel is self-propelled and is—

‘‘(A) a roll-on/roll-off vessel with a carrying capacity

of at least 80,000 square feet or 500 twenty-foot equivalent

units and that is 15 years of age or less on the date

the vessel is included in the Fleet;

‘‘(B) a tank vessel that is constructed in the United

States after the date of the enactment of this chapter;

‘‘(C) a tank vessel that is 10 years of age or less

on the date the vessel is included in the Fleet;

‘‘(D) a LASH vessel that is 25 years of age or less

on the date the vessel is included in the Fleet; or

‘‘(E) any other type of vessel that is 15 years of age

or less on the date the vessel is included in the Fleet;

‘‘(4) the vessel is—

‘‘(A) determined by the Secretary of Defense to be

suitable for use by the United States for national defense

or military purposes in time of war or national emergency;

and

‘‘(B) determined by the Secretary to be commercially

viable; and

‘‘(5) the vessel—

‘‘(A) is a United States-documented vessel; or

‘‘(B) is not a United States-documented vessel, but—

‘‘(i) the owner of the vessel has demonstrated an

intent to have the vessel documented under chapter

121 of this title if it is included in the Fleet; and

‘‘(ii) at the time an operating agreement for the

vessel is entered into under this chapter, the vessel

is eligible for documentation under chapter 121 of this

title.
H. R. 1588—415

‘‘(c) REQUIREMENTS REGARDING CITIZENSHIP OF OWNERS,

CHARTERERS, AND OPERATORS.—

‘‘(1) VESSEL OWNED AND OPERATED BY SECTION 2 CITIZENS.—

A vessel meets the requirements of this paragraph if, during

the period of an operating agreement under this chapter that

applies to the vessel, the vessel will be owned and operated

by one or more persons that are citizens of the United States

under section 2 of the Shipping Act, 1916 (46 U.S.C. App.

802).

‘‘(2) VESSEL OWNED BY SECTION 2 CITIZEN OR UNITED STATES

CITIZEN TRUST, AND CHARTERED TO DOCUMENTATION CITIZEN.—

A vessel meets the requirements of this paragraph if—

‘‘(A) during the period of an operating agreement under

this chapter that applies to the vessel, the vessel will

be—

‘‘(i) owned by a person that is a citizen of the

United States under section 2 of the Shipping Act,

1916 (46 U.S.C. App. 802) or that is a United States

citizen trust; and

‘‘(ii) demise chartered to a person—

‘‘(I) that is eligible to document the vessel

under chapter 121 of this title;

‘‘(II) the chairman of the board of directors,

chief executive officer, and a majority of the members of the board of directors of which are citizens

of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802), and are

appointed and subjected to removal only upon

approval by the Secretary; and

‘‘(III) that certifies to the Secretary that there

are no treaties, statutes, regulations, or other laws

that would prohibit the contractor for the vessel

from performing its obligations under an operating

agreement under this chapter;

‘‘(B) in the case of a vessel that will be demise chartered

to a person that is owned or controlled by another person

that is not a citizen of the United States under section

2 of the Shipping Act, 1916 (46 U.S.C. App. 802), the

other person enters into an agreement with the Secretary

not to influence the operation of the vessel in a manner

that will adversely affect the interests of the United States;

and

‘‘(C) the Secretary and the Secretary of Defense notify

the Committee on Armed Services and the Committee on

Commerce, Science, and Transportation of the Senate and

the Committee on Armed Services of the House of Representatives that they concur with the certification required

under subparagraph (A)(ii)(III), and have reviewed and

agree that there are no other legal, operational, or other

impediments that would prohibit the contractor for the

vessel from performing its obligations under an operating

agreement under this chapter.

‘‘(3) VESSEL OWNED AND OPERATED BY DEFENSE CONTRACTOR.—A vessel meets the requirements of this paragraph

if—
H. R. 1588—416

‘‘(A) during the period of an operating agreement under

this chapter that applies to the vessel, the vessel will

be owned and operated by a person that—

‘‘(i) is eligible to document a vessel under chapter

121 of this title;

‘‘(ii) operates or manages other United States-documented vessels for the Secretary of Defense, or charters

other vessels to the Secretary of Defense;

‘‘(iii) has entered into a special security agreement

for purposes of this paragraph with the Secretary of

Defense;

‘‘(iv) makes the certification described in paragraph

(2)(A)(ii)(III); and

‘‘(v) in the case of a vessel described in paragraph

(2)(B), enters into an agreement referred to in that

paragraph; and

‘‘(B) the Secretary and the Secretary of Defense notify

the Committee on Armed Services and the Committee on

Commerce, Science, and Transportation of the Senate and

the Committee on Armed Services of the House of Representatives that they concur with the certification required

under subparagraph (A)(iv), and have reviewed and agree

that there are no other legal, operational, or other impediments that would prohibit the contractor for the vessel

from performing its obligations under an operating agreement under this chapter.

‘‘(4) VESSEL OWNED BY DOCUMENTATION CITIZEN AND CHARTERED TO SECTION 2 CITIZEN.—A vessel meets the requirements

of this paragraph if, during the period of an operating agreement under this chapter that applies to the vessel, the vessel

will be—

‘‘(A) owned by a person that is eligible to document

a vessel under chapter 121 of this title; and

‘‘(B) demise chartered to a person that is a citizen

of the United States under section 2 of the Shipping Act,

1916 (46 U.S.C. App. 802).

‘‘(d) REQUEST BY SECRETARY OF DEFENSE.—The Secretary of

Defense shall request the Secretary of Homeland Security to issue

any waiver under the first section of Public Law 81–891 (64 Stat.

1120; 46 U.S.C. App. note prec. 3) that is necessary for purposes

of this chapter.

‘‘(e) VESSEL STANDARDS.—

‘‘(1) CERTIFICATE OF INSPECTION.—A vessel used to provide

oceangoing transportation which the Secretary of the department in which the Coast Guard is operating determines meets

the criteria of subsection (b) of this section but which, on

the date of enactment of the Maritime Security Act of 2003,

is not a documented vessel (as that term is defined in section

12101 of this title) shall be eligible for a certificate of inspection

if the Secretary determines that—

‘‘(A) the vessel is classed by and designed in accordance

with the rules of the American Bureau of Shipping, or

another classification society accepted by the Secretary;

‘‘(B) the vessel complies with applicable international

agreements and associated guidelines, as determined by
H. R. 1588—417

the country in which the vessel was documented immediately before becoming a documented vessel (as defined

in that section); and

‘‘(C) that country has not been identified by the Secretary as inadequately enforcing international vessel regulations as to that vessel.

‘‘(2) CONTINUED ELIGIBILITY FOR CERTIFICATE.—Paragraph

(1) does not apply to a vessel after any date on which the

vessel fails to comply with the applicable international agreements and associated guidelines referred to in paragraph (1)(B).

‘‘(3) RELIANCE ON CLASSIFICATION SOCIETY.—

‘‘(A) IN GENERAL.—The Secretary may rely on a certification from the American Bureau of Shipping or, subject

to subparagraph (B), another classification society accepted

by the Secretary to establish that a vessel is in compliance

with the requirements of paragraphs (1) and (2).

‘‘(B) FOREIGN CLASSIFICATION SOCIETY.—The Secretary

may accept certification from a foreign classification society

under subparagraph (A) only—

‘‘(i) to the extent that the government of the foreign

country in which the society is headquartered provides

access on a reciprocal basis to the American Bureau

of Shipping; and

‘‘(ii) if the foreign classification society has offices

and maintains records in the United States.

‘‘(f) WAIVER OF AGE RESTRICTION.—The Secretary of Defense,

in conjunction with the Secretary of Transportation, may waive

the application of an age restriction under subsection (b)(3) if the

Secretaries jointly determine that the waiver—

‘‘(1) is in the national interest;

‘‘(2) is appropriate to allow the maintenance of the economic

viability of the vessel and any associated operating network;

and

‘‘(3) is necessary due to the lack of availability of other

vessels and operators that comply with the requirements of

this chapter.

‘‘§ 53103. Award of operating agreements

‘‘(a) IN GENERAL.—The Secretary shall require, as a condition

of including any vessel in the Fleet, that the person that is the

owner or operator of the vessel for purposes of section 53102(c)

enter into an operating agreement with the Secretary under this

section.

‘‘(b) PROCEDURE FOR APPLICATIONS.—

‘‘(1) ACCEPTANCE OF APPLICATIONS.—Beginning no later

than 30 days after the effective date of this chapter, the Secretary shall accept applications for enrollment of vessels in

the Fleet.

‘‘(2) ACTION ON APPLICATIONS.—Within 90 days after receipt

of an application for enrollment of a vessel in the Fleet, the

Secretary shall approve the application in conjunction with

the Secretary of Defense, and shall enter into an operating

agreement with the applicant, or provide in writing the reason

for denial of that application. ‘‘(3) PARTICIPATING FLEET VESSELS.—

‘‘(A) IN GENERAL.—The Secretary shall accept an

application for an operating agreement for a participating
H. R. 1588—418

fleet vessel under the priority under subsection (c)(1)(B)

only from a person that has authority to enter into an

operating agreement for the vessel with respect to the

full term of the operating agreement.

‘‘(B) VESSEL UNDER DEMISE CHARTER.—For purposes

of subparagraph (A), in the case of a vessel that is subject

to a demise charter that terminates by its terms on September 30, 2005 (without giving effect to any extension

provided therein for completion of a voyage or to effect

the actual redelivery of the vessel), or that is terminable

at will by the owner of the vessel after such date, only

the owner of the vessel shall be treated as having the

authority referred to in paragraph (1).

‘‘(C) VESSEL OWNED BY UNITED STATES CITIZEN TRUST.—

For purposes of subparagraph (B), in the case of a vessel

owned by a United States citizen trust, the term ‘owner

of the vessel’ includes a beneficial owner of the vessel

with respect to such trust.

‘‘(c) PRIORITY FOR AWARDING AGREEMENTS.—

‘‘(1) IN GENERAL.—Subject to the availability of appropriations, the Secretary shall enter into operating agreements

according to the following priority:

‘‘(A) NEW TANK VESSELS.—First, for any tank vessel

that—

‘‘(i) is constructed in the United States after the

effective date of this chapter;

‘‘(ii) is eligible to be included in the Fleet under

section 53102(b); and

‘‘(iii) during the period of an operating agreement

under this chapter that applies to the vessel, will be

owned and operated by one or more persons that are

citizens of the United States under section 2 of the

Shipping Act, 1916 (46 U.S.C. App. 802),

except that the Secretary shall not enter into operating

agreements under this subparagraph for more than 5 such

vessels.

‘‘(B) PARTICIPATING FLEET VESSELS.—Second, to the

extent amounts are available after applying subparagraphs

(A), for any participating fleet vessel, except that the Secretary shall not enter into operating agreements under

this subparagraph for more than 47 vessels.

‘‘(C) CERTAIN VESSELS OPERATED BY SECTION 2 CITIZENS.—Third, to the extent amounts are available after

applying subparagraphs (A) and (B), for any other vessel

that is eligible to be included in the Fleet under section

53102(b), and that, during the period of an operating agreement under this chapter that applies to the vessel, will

be—

‘‘(i) owned and operated by one or more persons

that are citizens of the United States under section

2 of the Shipping Act, 1916 (46 U.S.C. App. 802);

or

‘‘(ii) owned by a person that is eligible to document

the vessel under chapter 121 of this title, and operated

by a person that is a citizen of the United States

under section 2 of the Shipping Act, 1916 (46 U.S.C.

App. 802).
H. R. 1588—419

‘‘(D) OTHER ELIGIBLE VESSELS.—Fourth, to the extent

amounts are available after applying subparagraphs (A),

(B), and (C), for any other vessel that is eligible to be

included in the Fleet under section 53102(b).

‘‘(2) REDUCTION IN NUMBER OF SLOTS FOR PARTICIPATING

FLEET VESSELS.—The number in paragraph (1)(B) shall be

reduced by 1—

‘‘(A) for each participating fleet vessel for which an

application for enrollment in the Fleet is not received by

the Secretary within the 90-day period beginning on the

effective date of this chapter; and

‘‘(B) for each participating fleet vessel for which an

application for enrollment in the Fleet received by the

Secretary is not approved by the Secretary and the Secretary of Defense within the 90-day period beginning on

the date of such receipt.

‘‘(3) DISCRETION WITHIN PRIORITY.—The Secretary—

‘‘(A) subject to subparagraph (B), may award operating

agreements within each priority under paragraph (1) as

the Secretary considers appropriate; and

‘‘(B) shall award operating agreement within a

priority—

‘‘(i) in accordance with operational requirements

specified by the Secretary of Defense;

‘‘(ii) in the case of operating agreements awarded

under subparagraph (C) or (D) of paragraph (1),

according to applicants’ records of owning and operating vessels; and

‘‘(iii) subject to the approval of the Secretary of

Defense.

‘‘(4) TREATMENT OF TANK VESSEL TO BE REPLACED.—(A)

For purposes of the application of paragraph (1)(A) with respect

to the award of an operating agreement, the Secretary may

treat an existing tank vessel that is eligible to be included

in the Fleet under section 53102(b) as a vessel that is constructed in the United States after the effective date of this

chapter, if—

‘‘(i) a binding contract for construction in the United

States of a replacement vessel to be operated under the

operating agreement is executed by not later than 9 months

after the first date amounts are available to carry out

this chapter; and

‘‘(ii) the replacement vessel is eligible to be included

in the Fleet under section 53102(b).

‘‘(B) No payment under this chapter may be made for

an existing tank vessel for which an operating agreement is

awarded under this paragraph after the earlier of—

‘‘(i) 4 years after the first date amounts are available

to carry out this chapter; or

‘‘(ii) the date of delivery of the replacement tank vessel.

‘‘(d) LIMITATION.—The Secretary may not award operating

agreements under this chapter that require payments under section

53106 for a fiscal year for more than 60 vessels.

‘‘§ 53104. Effectiveness of operating agreements

‘‘(a) EFFECTIVENESS, GENERALLY.—The Secretary may enter

into an operating agreement under this chapter for fiscal year
H. R. 1588—420

2006. Except as provided in subsection (b), the agreement shall

be effective only for 1 fiscal year, but shall be renewable, subject

to the availability of appropriations, for each subsequent fiscal

year through the end of fiscal year 2015.

‘‘(b) VESSELS UNDER CHARTER TO UNITED STATES.—Unless an

earlier date is requested by the applicant, the effective date for

an operating agreement with respect to a vessel that is, on the

date of entry into an operating agreement, on charter to the United

States Government, other than a charter pursuant to an Emergency

Preparedness Agreement under section 53107, shall be the expiration or termination date of the Government charter covering the

vessel, or any earlier date the vessel is withdrawn from that charter.

‘‘(c) TERMINATION.—

‘‘(1) TERMINATION BY SECRETARY.—If the contractor with

respect to an operating agreement materially fails to comply

with the terms of the agreement—

‘‘(A) the Secretary shall notify the contractor and provide a reasonable opportunity to comply with the operating

agreement;

‘‘(B) the Secretary shall terminate the operating agreement if the contractor fails to achieve such compliance;

and

‘‘(C) upon such termination, any funds obligated by

the agreement shall be available to the Secretary to carry

out this chapter.

‘‘(2) EARLY TERMINATION BY CONTRACTOR, GENERALLY.—

An operating agreement under this chapter shall terminate

on a date specified by the contractor if the contractor notifies

the Secretary, by not later than 60 days before the effective

date of the termination, that the contractor intends to terminate

the agreement.

‘‘(3) EARLY TERMINATION BY CONTRACTOR, WITH AVAILABLE

REPLACEMENT.—An operating agreement under this chapter

shall terminate upon the expiration of the 3-year period beginning on the date a vessel begins operating under the agreement,

if—

‘‘(A) the contractor notifies the Secretary, by not later

than 2 years after the date the vessel begins operating

under the agreement, that the contractor intends to terminate the agreement under this paragraph; and

‘‘(B) the Secretary, in conjunction with the Secretary

of Defense, determines that—

‘‘(i) an application for an operating agreement

under this chapter has been received for a replacement

vessel that is acceptable to the Secretaries; and

‘‘(ii) during the period of an operating agreement

under this chapter that applies to the replacement

vessel, the replacement vessel will be—

‘‘(I) owned and operated by one or more persons that are citizens of the United States under

section 2 of the Shipping Act, 1916 (46 U.S.C.

App. 802); or ‘‘(II) owned by a person that is eligible to

document the vessel under chapter 121 of this

title, and operated by a person that is a citizen

of the United States under section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802).
H. R. 1588—421

‘‘(d) NONRENEWAL FOR LACK OF FUNDS.—If, by the first day

of a fiscal year, sufficient funds have not been appropriated under

the authority provided by this chapter for that fiscal year, then

the Secretary shall notify the Committee on Armed Services and

the Committee on Commerce, Science, and Transportation of the

Senate and the Committee on Armed Services of the House of

Representatives that operating agreements authorized under this

chapter for which sufficient funds are not available will not be

renewed for that fiscal year if sufficient funds are not appropriated

by the 60th day of that fiscal year.

‘‘(e) RELEASE OF VESSELS FROM OBLIGATIONS.—If an operating

agreement under this chapter is terminated under subsection (c)(3),

or if funds are not appropriated for payments under an operating

agreement under this chapter for any fiscal year by the 60th day

of that fiscal year, then—

‘‘(1) each vessel covered by the operating agreement is

thereby released from any further obligation under the operating agreement;

‘‘(2) the owner or operator of the vessel may transfer and

register such vessel under a foreign registry that is acceptable

to the Secretary of Transportation and the Secretary of Defense,

notwithstanding section 9 of the Shipping Act, 1916 (46 U.S.C.

App. 808); and

‘‘(3) if section 902 of the Merchant Marine Act, 1936 (46

U.S.C. App. 1242) is applicable to such vessel after registration

of the vessel under such a registry, then the vessel is available

to be requisitioned by the Secretary of Transportation pursuant

to section 902 of such Act.

‘‘§ 53105. Obligations and rights under operating agreements

‘‘(a) OPERATION OF VESSEL.—An operating agreement under

this chapter shall require that, during the period a vessel is operating under the agreement—

‘‘(1) the vessel—

‘‘(A) shall be operated exclusively in the foreign commerce or in mixed foreign commerce and domestic trade

allowed under a registry endorsement issued under section

12105 of this title; and

‘‘(B) shall not otherwise be operated in the coastwise

trade; and

‘‘(2) the vessel shall be documented under chapter 121

of this title.

‘‘(b) ANNUAL PAYMENTS BY SECRETARY.—

‘‘(1) IN GENERAL.—An operating agreement under this

chapter shall require, subject to the availability of appropriations, that the Secretary make a payment each fiscal year

to the contractor in accordance with section 53106.

‘‘(2) OPERATING AGREEMENT IS OBLIGATION OF UNITED

STATES GOVERNMENT.—An operating agreement under this

chapter constitutes a contractual obligation of the United States

Government to pay the amounts provided for in the agreement

to the extent of actual appropriations.

‘‘(c) DOCUMENTATION REQUIREMENT.—Each vessel covered by

an operating agreement (including an agreement terminated under

section 53104(c)(2)) shall remain documented under chapter 121

of this title, until the date the operating agreement would terminate

according to its terms.
H. R. 1588—422

‘‘(d) NATIONAL SECURITY REQUIREMENTS.—

‘‘(1) IN GENERAL.—A contractor with respect to an operating

agreement (including an agreement terminated under section

53104(c)(2)) shall continue to be bound by the provisions of

section 53107 until the date the operating agreement would

terminate according to its terms.

‘‘(2) EMERGENCY PREPAREDNESS AGREEMENT.—All terms

and conditions of an Emergency Preparedness Agreement

entered into under section 53107 shall remain in effect until

the date the operating agreement would terminate according

to its terms, except that the terms of such Emergency Preparedness Agreement may be modified by the mutual consent of

the contractor, the Secretary of Transportation, and the Secretary of Defense.

‘‘(e) TRANSFER OF OPERATING AGREEMENTS.—A contractor under

an operating agreement may transfer the agreement (including

all rights and obligations under the agreement) to any person

that is eligible to enter into that operating agreement under this

chapter, if the transfer is approved by the Secretary and the Secretary of Defense.

‘‘(f) REPLACEMENT VESSEL.—A contractor may replace a vessel

under an operating agreement with another vessel that is eligible

to be included in the Fleet under section 53102(b), if the Secretary,

in conjunction with the Secretary of Defense, approve replacement

of the vessel.

‘‘§ 53106. Payments

‘‘(a) ANNUAL PAYMENT.—

‘‘(1) IN GENERAL.—The Secretary, subject to the availability

of appropriations and the other provisions of this section, shall

pay to the contractor for an operating agreement, for each

vessel that is covered by the operating agreement, an amount

equal to—

‘‘(A) $2,600,000 for each of fiscal years 2006, 2007,

and 2008;

‘‘(B) $2,900,000, for each of fiscal years 2009, 2010,

and 2011; and

‘‘(C) $3,100,000 for each fiscal years 2012, 2013, 2014,

and 2015.

‘‘(2) TIMING.—The amount shall be paid in equal monthly

installments at the end of each month. The amount shall not

be reduced except as provided by this section.

‘‘(b) CERTIFICATION REQUIRED FOR PAYMENT.—As a condition

of receiving payment under this section for a fiscal year for a

vessel, the contractor for the vessel shall certify, in accordance

with regulations issued by the Secretary, that the vessel has been

and will be operated in accordance with section 53105(a)(1) for

at least 320 days in the fiscal year. Days during which the vessel

is drydocked, surveyed, inspected, or repaired shall be considered

days of operation for purposes of this subsection.

‘‘(c) GENERAL LIMITATIONS.—The Secretary of Transportation

shall not make any payment under this chapter for a vessel with

respect to any days for which the vessel is—

‘‘(1) under a charter to the United States Government,

other than a charter pursuant to an Emergency Preparedness

Agreement under section 53107;
H. R. 1588—423

‘‘(2) not operated or maintained in accordance with an

operating agreement under this chapter; or

‘‘(3) more than—

‘‘(A) 25 years of age, except as provided in subparagraph (B) or (C);

‘‘(B) 20 years of age, in the case of a tank vessel;

or

‘‘(C) 30 years of age, in the case of a LASH vessel.

‘‘(d) REDUCTIONS IN PAYMENTS.—With respect to payments

under this chapter for a vessel covered by an operating agreement,

the Secretary— ‘‘(1) except as provided in paragraph (2), shall not reduce

any payment for the operation of the vessel to carry military

or other preference cargoes under section 2631 of title 10,

United States Code, the Act of March 26, 1934 (46 U.S.C.

App. 1241–1), section 901(a), 901(b), or 901b of the Merchant

Marine Act, 1936 (46 U.S.C. App. 1241(a), 1241(b), or 1241f),

or any other cargo preference law of the United States; ‘‘(2) shall not make any payment for any day that the

vessel is engaged in transporting more than 7,500 tons of

civilian bulk preference cargoes pursuant to section 901(a),

901(b), or 901b of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1241(a), 1241(b), or 1241f), that is bulk cargo; and ‘‘(3) shall make a pro rata reduction in payment for each

day less than 320 in a fiscal year that the vessel is not operated

in accordance with section 53105(a)(1), with days during which

the vessel is drydocked or undergoing survey, inspection, or

repair considered to be days on which the vessel is operated.

‘‘(e) LIMITATION REGARDING NONCONTIGUOUS DOMESTIC

TRADE.—

‘‘(1) IN GENERAL.—No contractor shall receive payments

pursuant to this chapter during a period in which it participates

in noncontiguous domestic trade.

‘‘(2) LIMITATION ON APPLICATION.—Paragraph (1) shall not

apply to any person that is a citizen of the United States

within the meaning of section 2(c) of the Shipping Act, 1916

(46 U.S.C. App. 802(c)).

‘‘(3) PARTICIPATES IN A NONCONTIGUOUS DOMESTIC TRADE

DEFINED.—In this subsection the term ‘participates in a noncontiguous domestic trade’ means directly or indirectly owns,

charters, or operates a vessel engaged in transportation of

cargo between a point in the contiguous 48 States and a point

in Alaska, Hawaii, or Puerto Rico, other than a point in Alaska

north of the Arctic Circle.

‘‘§ 53107. National security requirements

‘‘(a) EMERGENCY PREPAREDNESS AGREEMENT REQUIRED.—The

Secretary shall establish an Emergency Preparedness Program

under this section that is approved by the Secretary of Defense.

Under the program, the Secretary, in conjunction with the Secretary

of Defense, shall include in each operating agreement under this

chapter a requirement that the contractor enter into an Emergency

Preparedness Agreement under this section with the Secretary.

The Secretary shall negotiate and enter into an Emergency

Preparedness Agreement with each contractor as promptly as practicable after the contractor has entered into an operating agreement

under this chapter.
H. R. 1588—424

‘‘(b) TERMS OF AGREEMENT.—

‘‘(1) IN GENERAL.—An Emergency Preparedness Agreement

under this section shall require that upon a request by the

Secretary of Defense during time of war or national emergency,

or whenever determined by the Secretary of Defense to be

necessary for national security or contingency operation (as

that term is defined in section 101 of title 10, United States

Code), a contractor for a vessel covered by an operating agreement under this chapter shall make available commercial

transportation resources (including services).

‘‘(2) BASIC TERMS.—(A) The basic terms of the Emergency

Preparedness Agreement shall be established (subject to

subparagraph (B)) by the Secretary and the Secretary of

Defense.

‘‘(B) In any Emergency Preparedness Agreement, the Secretary and a contractor may agree to additional or modifying

terms appropriate to the contractor’s circumstances if those

terms have been approved by the Secretary of Defense.

‘‘(c) PARTICIPATION AFTER EXPIRATION OF OPERATING AGREEMENT.—Except as provided by section 53105(d), the Secretary may

not require, through an Emergency Preparedness Agreement or

operating agreement, that a contractor continue to participate in

an Emergency Preparedness Agreement after the operating agreement with the contractor has expired according to its terms or

is otherwise no longer in effect. After expiration of an Emergency

Preparedness Agreement, a contractor may volunteer to continue

to participate in such an agreement.

‘‘(d) RESOURCES MADE AVAILABLE.—The commercial transportation resources to be made available under an Emergency

Preparedness Agreement shall include vessels or capacity in vessels,

intermodal systems and equipment, terminal facilities, intermodal

and management services, and other related services, or any agreed

portion of such nonvessel resources for activation as the Secretary

of Defense may determine to be necessary, seeking to minimize

disruption of the contractor’s service to commercial shippers.

‘‘(e) COMPENSATION.—

‘‘(1) IN GENERAL.—The Secretary shall include in each

Emergency Preparedness Agreement provisions approved by

the Secretary of Defense under which the Secretary of Defense

shall pay fair and reasonable compensation for all commercial

transportation resources provided pursuant to this section.

‘‘(2) SPECIFIC REQUIREMENTS.—Compensation under this

subsection—

‘‘(A) shall not be less than the contractor’s commercial

market charges for like transportation resources;

‘‘(B) shall be fair and reasonable considering all circumstances;

‘‘(C) shall be provided from the time that a vessel

or resource is required by the Secretary of Defense until

the time that it is redelivered to the contractor and is

available to reenter commercial service; and

‘‘(D) shall be in addition to and shall not in any way

reflect amounts payable under section 53106.

‘‘(f) TEMPORARY REPLACEMENT VESSELS.—Notwithstanding section 2631 of title 10, United States Code, the Act of March 26,

1934 (46 U.S.C. App. 1241–1), section 901(a), 901(b), or 901b of
H. R. 1588—425

the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(a), 1241(b),

or 1241f), or any other cargo preference law of the United States—

‘‘(1) a contractor may operate or employ in foreign commerce a foreign-flag vessel or foreign-flag vessel capacity as

a temporary replacement for a United States-documented vessel

or United States-documented vessel capacity that is activated

by the Secretary of Defense under an Emergency Preparedness

Agreement or under a primary Department of Defense-approved

sealift readiness program; and

‘‘(2) such replacement vessel or vessel capacity shall be

eligible during the replacement period to transport preference

cargoes subject to section 2631 of title 10, United States Code,

the Act of March 26, 1934 (46 U.S.C. App. 1241–1), and sections

901(a), 901(b), and 901b of the Merchant Marine Act, 1936

(46 U.S.C. App. 1241(a), 1241(b), and 1241b) to the same extent

as the eligibility of the vessel or vessel capacity replaced.

‘‘(g) REDELIVERY AND LIABILITY OF UNITED STATES FOR DAMAGES.—

‘‘(1) IN GENERAL.—All commercial transportation resources

activated under an Emergency Preparedness Agreement shall,

upon termination of the period of activation, be redelivered

to the contractor in the same good order and condition as

when received, less ordinary wear and tear, or the Secretary

of Defense shall fully compensate the contractor for any necessary repair or replacement.

‘‘(2) LIMITATION ON LIABILITY OF U.S.—Except as may be

expressly agreed to in an Emergency Preparedness Agreement,

or as otherwise provided by law, the Government shall not

be liable for disruption of a contractor’s commercial business

or other consequential damages to a contractor arising from

activation of commercial transportation resources under an

Emergency Preparedness Agreement.

‘‘§ 53108. Regulatory relief

‘‘(a) OPERATION IN FOREIGN COMMERCE.—A contractor for a

vessel included in an operating agreement under this chapter may

operate the vessel in the foreign commerce of the United States

without restriction.

‘‘(b) OTHER RESTRICTIONS.—The restrictions of section 901(b)(1)

of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b)(1)) concerning the building, rebuilding, or documentation of a vessel in

a foreign country shall not apply to a vessel for any day the

operator of that vessel is receiving payments for operation of that

vessel under an operating agreement under this chapter.

‘‘(c) TELECOMMUNICATIONS EQUIPMENT.—The telecommunications and other electronic equipment on an existing vessel that

is redocumented under the laws of the United States for operation

under an operating agreement under this chapter shall be deemed

to satisfy all Federal Communications Commission equipment certification requirements, if—

‘‘(1) such equipment complies with all applicable international agreements and associated guidelines as determined

by the country in which the vessel was documented immediately

before becoming documented under the laws of the United

States;
H. R. 1588—426

‘‘(2) that country has not been identified by the Secretary

as inadequately enforcing international regulations as to that

vessel; and

‘‘(3) at the end of its useful life, such equipment will be

replaced with equipment that meets Federal Communications

Commission equipment certification standards.

‘‘§ 53109. Special rule regarding age of participating fleet

vessel

‘‘Any age restriction under section 53102(b)(3) or 53106(c)(3)

shall not apply to a participating fleet vessel during the 30-month

period beginning on the date the vessel begins operating under

an operating agreement under this title, if the Secretary determines

that the contractor for the vessel has entered into an arrangement

to obtain and operate under the operating agreement for the participating fleet vessel a replacement vessel that, upon commencement

of such operation, will be eligible to be included in the Fleet under

section 53102(b).

‘‘§ 53110. Regulations

‘‘The Secretary and the Secretary of Defense may each prescribe

rules as necessary to carry out their respective responsibilities

under this chapter.

‘‘§ 53111. Authorization of appropriations

‘‘There are authorized to be appropriated for payments under

section 53106, to remain available until expended—

‘‘(1) $156,000,000 for each of fiscal years 2006, 2007, and

2008;‘‘(2) $174,000,000 for each of fiscal years 2009, 2010, and

2011; and ‘‘(3) $186,000,000 for each fiscal year thereafter through

fiscal year 2015.’’. (b) CONFORMING AMENDMENT.—The table of subtitles at the

beginning of title 46, United States Code, is amended by inserting

before the item relating to chapter VI the following:

‘‘V. MERCHANT MARINE ...................................................................................53101’’.

SEC. 3532. RELATED AMENDMENTS TO EXISTING LAW.

(a) AMENDMENT TO SHIPPING ACT, 1916.—Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808) is amended—

(1) by redesignating subsection (e), as added by section

1136(b) of Public Law 104–324 (110 Stat. 3987), as subsection

(f); and

(2) by amending subsection (e), as added by section 6

of Public Law 104–239 (110 Stat. 3132), to read as follows:

‘‘(e) Notwithstanding subsection (c)(2), the Merchant Marine

Act, 1936, or any contract entered into with the Secretary of

Transportation under that Act, a vessel may be placed under a

foreign registry, without approval of the Secretary, if—

‘‘(1)(A) the Secretary, in conjunction with the Secretary

of Defense, determines that at least one replacement vessel

of equal or greater military capability and of a capacity that

is equivalent or greater, as measured by deadweight tons, gross

tons, or container equivalent units, as appropriate, is documented under chapter 121 of title 46, United States Code,
H. R. 1588—427

by the owner of the vessel placed under the foreign registry;

and

‘‘(B) the replacement vessel is not more than 10 years

of age on the date of that documentation; or

‘‘(2) an operating agreement covering the vessel under

chapter 531 of title 46, United States Code, has expired.’’.

(b) MERCHANT MARINE ACT, 1936.—Section 512 of the Merchant

Marine Act, 1936 (46 U.S.C. 1162) is amended—

(1) by striking ‘‘Notwithstanding’’ and inserting ‘‘(a) Except

as provided in subsection (b), notwithstanding’’; and

(2) by adding at the end the following:

‘‘(b)(1) Except as provided in paragraph (2), the restrictions

and requirements of section 506 shall terminate upon the expiration

of the 20-year period beginning on the date of the original delivery

of the vessel from the shipyard for operation of a vessel in any

domestic trade in which it has operated at any time since 1996.

‘‘(2) Paragraph (1) shall not affect any requirement to make

payments under section 506.’’.

SEC. 3533. INTERIM RULES.

The Secretary of Transportation and the Secretary of Defense

may each prescribe interim rules necessary to carry out their respective responsibilities under this subtitle and the amendments made

by this subtitle. For this purpose, the Secretaries are excepted

from compliance with the notice and comment requirements of

section 553 of title 5, United States Code. All interim rules prescribed under the authority of this section that are not earlier

superseded by final rules shall expire no later than 270 days after

the effective date of this subtitle.

SEC. 3534. REPEALS AND CONFORMING AMENDMENTS.

(a) REPEALS.—The following provisions are repealed:

(1) Subtitle B of title VI of the Merchant Marine Act,

1936 (46 U.S.C. App. 1187 et seq.).

(2) Section 804 of the Merchant Marine Act, 1936 (46

U.S.C. App. 1222).

(b) CONFORMING AMENDMENTS.—

(1) Section 12102(d)(4) of title 46, United States Code,

is amended by inserting ‘‘or chapter 531 of title 46, United

States Code’’ after ‘‘Merchant Marine Act, 1936’’.

(2) Section 1137 of Public Law 104–324 (46 U.S.C. App.

1187 note) is amended by striking ‘‘section 651(b) of the Merchant Marine Act, 1936’’ and inserting ‘‘section 53102(b) of

title 46, United States Code’’.

SEC. 3535. GAO STUDY OF ADJUSTMENT OF OPERATING AGREEMENT

PAYMENT CRITERIA.

(a) IN GENERAL.—The Comptroller General of the United States

shall conduct a study of the potential impact of amending section

53106 of title 46, United States Code, as amended by this Act—

(1) to increase or decrease the 7,500 ton limitation;

(2) to apply the limitation to bagged cargo as well as

bulk cargo; and

(3) to so modify the tonnage limitation and apply it to

bagged cargo as well as bulk cargo.

(b) MATTERS TO BE ADDRESSED.—
H. R. 1588—428

(1) SPECIFIC IMPACTS.—As part of the study required by

subsection (a), the Comptroller General shall address, in particular, the impact of such amendments on—

(A) the Maritime Security Fleet established under

chapter 531 of title 46, United States Code, as amended

by this Act;

(B) the civilian bulk cargo preference program under

section 901(a), 901(b), or 901b of such Act (46 U.S.C. App.

1241(a), 1241(b), and 1241f); and

(C) operations of vessels under sections 901a through

901k of such Act (46 U.S.C. App. 1241e through 1241o,

the Food for Peace Act of 1966 (7 U.S.C. 1707a(b)(8)),

or any other statute in pari materia.

(2) CERTAIN ASPECTS.—In carrying out paragraph (1), the

Comptroller General shall consider, among other matters—

(A) increased or decreased costs to the overall cargo

preference program, including transportation costs (for both

land and water transportation);

(B) effects on ports;

(C) the number of shipments that would be affected;

(D) increased or decreased administrative and compliance burdens for carriers and Federal agencies; and

(E) increases or decreases in the number of United

States-flag operators participating in the cargo preference

program.

(3) BALANCING BENEFITS.—In the study, the Comptroller

General shall also address whether and how such amendments

could result in achieving an appropriate balance of benefits

between participants in the Maritime Security Fleet program

and participants in the cargo preference program.

(c) REPORT.—The Comptroller General shall transmit a report

of the study, including findings, conclusions, and recommendations

(including legislative recommendations, if any), to the Committee

on Armed Services of the House of Representatives and the Committee on Armed Services and the Committee on Commerce,

Science, and Transportation of the Senate within 9 months after

the date of the enactment of this Act.

(d) AUTHORITY.—In order to conduct the study required by

subsection (a), the Comptroller General, or any of the Comptroller

General’s duly authorized representatives, shall have access to any

books, accounts, documents, papers, and records that relate to the

information required to complete the study of owners or operators

of vessels—

(1) under operating agreements under subtitle B of title

VI of the Merchant Marine Act, 1936 (46 U.S.C. App. 651

et seq.) or chapter 531 of title 46, United States Code, as

amended by this Act; and

(2) that accept bulk cargo subject to the cargo preference

laws of the United States.

SEC. 3536. DEFINITIONS.

In this subtitle, the definitions set forth in section 53101 of

title 46, United States Code, as amended by this Act, shall apply.

SEC. 3537. EFFECTIVE DATES.

(a) IN GENERAL.—Except as provided in subsections (b) and

(c), this subtitle shall take effect October 1, 2004.
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(b) REPEALS AND CONFORMING AMENDMENTS.—Section 3534

shall take effect October 1, 2005.

(c) OTHER PROVISIONS.—Sections 3533, 3535, and this section

shall take effect on the date of the enactment of this Act.

Subtitle D—National Defense Tank Vessel

Construction Assistance

SEC. 3541. NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PROGRAM.

The Secretary of Transportation shall establish a program for

the provision of financial assistance for the construction in the

United States of a fleet of up to 5 privately owned product tank

vessels—

(1) to be operated in commercial service in foreign commerce; and

(2) to be available for national defense purposes in time

of war or national emergency pursuant to an Emergency

Preparedness Plan approved by the Secretary of Defense pursuant to section 3543(e).

SEC. 3542. APPLICATION PROCEDURE.

(a) REQUEST FOR PROPOSALS.—Within 90 days after the date

of the enactment of this subtitle, and on an as-needed basis thereafter, the Secretary, in consultation with the Secretary of Defense,

shall publish in the Federal Register a request for competitive

proposals for the construction of new product tank vessels necessary

to meet the commercial and national security needs of the United

States and to be built with assistance under this subtitle.

(b) QUALIFICATION.—Any citizen of the United States or any

shipyard in the United States may submit a proposal to the Secretary of Transportation for purposes of constructing a product

tank vessel with assistance under this subtitle.

(c) REQUIREMENT.—The Secretary, with the concurrence of the

Secretary of Defense, may enter into an agreement with the submitter of a proposal for assistance under this subtitle if the Secretary determines that—

(1) the plans and specifications call for construction of

a new product tank vessel of not less than 35,000 deadweight

tons and not greater than 60,000 deadweight tons, that—

(A) will meet the requirements of foreign commerce;

(B) is capable of carrying militarily useful petroleum

products, and will be suitable for national defense or military purposes in time of war, national emergency, or other

military contingency; and

(C) will meet the construction standards necessary to

be documented under the laws of the United States;

(2) the shipyard in which the vessel will be constructed

has the necessary capacity and expertise to successfully construct the proposed number and type of product tank vessels

in a reasonable period of time as determined by the Secretary

of Transportation, taking into consideration the recent prior

commercial shipbuilding history of the proposed shipyard in

delivering a vessel or series of vessels on time and in accordance

with the contract price and specifications; and
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(3) the person proposed to be the operator of the proposed

vessel possesses the ability, experience, financial resources, and

any other qualifications determined to be necessary by the

Secretary for the operation and maintenance of the vessel.

(d) PRIORITY.—The Secretary—

(1) subject to paragraph (2), shall give priority consideration

to a proposal submitted by a person that is a citizen of the

United States under section 2 of the Shipping Act, 1916 (46

U.S.C. App. 802); and

(2) may give priority to consideration of proposals that

provide the best value to the Government, taking into

consideration—

(A) the costs of vessel construction; and

(B) the commercial and national security needs of the

United States.

SEC. 3543. AWARD OF ASSISTANCE.

(a) IN GENERAL.—If after review of a proposal, the Secretary

determines that the proposal fulfills the requirements under this

subtitle, the Secretary may enter into a contract with the proposed

purchaser and the proposed shipyard for the construction of a

product tank vessel with assistance under this subtitle.

(b) AMOUNT OF ASSISTANCE.—The contract shall provide that

the Secretary shall pay, subject to the availability of appropriations,

up to 75 percent of the actual construction cost of the vessel,

but in no case more than $50,000,000 per vessel.

(c) CONSTRUCTION IN UNITED STATES.—A contract under this

section shall require that construction of a vessel with assistance

under this subtitle shall be performed in a shipyard in the United

States.

(d) DOCUMENTATION OF VESSEL.—

(1) CONTRACT REQUIREMENT.—A contract under this section

shall require that, upon delivery of a vessel constructed with

assistance under the contract, the vessel shall be documented

under chapter 121 of title 46, United States Code, with a

registry endorsement only.

(2) RESTRICTION ON COASTWISE ENDORSEMENT.—A vessel

constructed with assistance under this subtitle shall not be

eligible for a certificate of documentation with a coastwise

endorsement.

(3) AUTHORITY TO REFLAG NOT APPLICABLE.—Section 9(g)

of the Shipping Act, 1916, (46 U.S.C. App. 808(g)) shall not

apply to a vessel constructed with assistance under this subtitle.

(e) EMERGENCY PREPAREDNESS AGREEMENT.—

(1) IN GENERAL.—A contract under this section shall require

that the person who will be the operator of a vessel constructed

with assistance under the contract shall enter into an Emergency Preparedness Agreement for the vessel under section

53107 of title 46, United States Code, as amended by this

Act.

(2) TREATMENT AS CONTRACTOR.—For purposes of the

application, under paragraph (1), of section 53107 of title 46,

United States Code, to a vessel constructed with assistance

under this subtitle, the term ‘‘contractor’’ as used in that section

means the person who will be the operator of a vessel constructed with assistance under this subtitle.
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(f) ADDITIONAL TERMS.—The Secretary shall incorporate in the

contract the requirements set forth in this subtitle, and may incorporate in the contract any additional terms the Secretary considers

necessary.

SEC. 3544. PRIORITY FOR TITLE XI ASSISTANCE.

Section 1103 of the Merchant Marine Act, 1936 (46 U.S.C.

App. 1273) is amended by adding at the end the following:

‘‘(i) PRIORITY.—In guaranteeing and entering commitments to

guarantee under this section, the Secretary shall give priority to

guarantees and commitments for vessels that are otherwise eligible

for a guarantee under this section and that are constructed with

assistance under subtitle D of the Maritime Security Act of 2003.’’.

SEC. 3545. DEFINITIONS.

In this subtitle the definitions set forth in section 53101 of

title 46, United States Code, as amended by this Act, shall apply.

SEC. 3546. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary to

carry out this subtitle a total of $250,000,000 for fiscal years after

fiscal year 2004.

TITLE XXXVI—NUCLEAR SECURITY

INITIATIVE

Sec. 3601. Short title.

Subtitle A—Administration and Oversight of Threat Reduction and

Nonproliferation Programs

Sec. 3611. Management assessment of Department of Defense and Department of

Energy threat reduction and nonproliferation programs.

Subtitle B—Relations Between the United States and Russia

Sec. 3621. Comprehensive inventory of Russian tactical nuclear weapons.

Sec. 3622. Establishment of interparliamentary Threat Reduction Working Group.

Sec. 3623. Sense of Congress on cooperation by United States and NATO with Russia on ballistic missile defenses.

Sec. 3624. Sense of Congress on enhanced collaboration to achieve more reliable

Russian early warning systems.

Subtitle C—Other Matters

Sec. 3631. Promotion of discussions on nuclear and radiological security and safety

between the International Atomic Energy Agency and the Organization

for Economic Cooperation and Development.

SEC. 3601. SHORT TITLE.

This title may be cited as the ‘‘Nuclear Security Initiative

Act of 2003’’.
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Subtitle A—Administration and Oversight

of Threat Reduction and Nonproliferation Programs

SEC. 3611. MANAGEMENT ASSESSMENT OF DEPARTMENT OF DEFENSE

AND DEPARTMENT OF ENERGY THREAT REDUCTION AND

NONPROLIFERATION PROGRAMS.

(a) GAO ASSESSMENT REQUIRED.—The Comptroller General

shall carry out an assessment of the management of the threat

reduction and nonproliferation programs of the Department of

Defense and the Department of Energy. The matters assessed shall

include—

(1) the effectiveness of the overall strategy used for managing such programs;

(2) the basis used to allocate the missions of such programs

among the executive departments and agencies;

(3) the criteria used to assess the effectiveness of such

programs;

(4) the strategy and process used to establish priorities

for activities carried out under such programs, including the

analysis of risks and benefits used in determining how best

to allocate the funds made available for such programs;

(5) the mechanisms used to coordinate the activities carried

out under such programs by the executive departments and

agencies so as to ensure efficient execution and avoid duplication of effort; and

(6) the management controls used in carrying out such

programs and the effect of such controls on the execution of

such programs.

(b) CONSIDERATIONS.—In carrying out the assessment required

by subsection (a), the Comptroller General shall take into account—

(1) the national security interests of the United States;

and

(2) the need for accountability in expenditure of funds

by the United States.

(c) REPORT.—Not later than May 1, 2004, the Comptroller General shall submit a report on the assessment required by subsection

(a) to the Committee on Armed Services of the House of Representatives and the Committee on Armed Services of the Senate.

(d) DEFINITIONS.—In this section:

(1) The term ‘‘threat reduction and nonproliferation programs of the Department of Defense and the Department of

Energy’’ means—

(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 programs for which funds are made available

under the defense nuclear nonproliferation account of the

Department of Energy.

(2) The term ‘‘management controls’’ means any accounting,

oversight, or other measure intended to ensure that programs

are executed consistent with—

(A) programmatic objectives as stated in budget justification materials submitted to Congress (as submitted
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with the budget of the President under section 1105(a)

of title 31, United States Code); and

(B) any restrictions related to such objectives as are

imposed by law.

Subtitle B—Relations Between the United

States and Russia

SEC. 3621. COMPREHENSIVE INVENTORY OF RUSSIAN TACTICAL

NUCLEAR WEAPONS.

(a) SENSE OF CONGRESS.—It is the sense of Congress that

the United States should, to the extent the President considers

prudent, seek to work with the Russian Federation to develop

a comprehensive inventory of Russian tactical nuclear weapons.

(b) REPORT.—Not later than 12 months after the date of the

enactment of this Act, the President shall submit to Congress

a report, in both classified and unclassified form as necessary,

describing the progress that has been made toward creating such

an inventory.

SEC. 3622. ESTABLISHMENT OF INTERPARLIAMENTARY THREAT

REDUCTION WORKING GROUP.

(a) ESTABLISHMENT OF WORKING GROUP.—There is hereby

established a working group to be known as the ‘‘Threat Reduction

Working Group’’ as an interparliamentary group of the Congress

of the United States and the legislature of the Russian Federation.

(b) PURPOSE OF WORKING GROUP.—The purpose of the working

group established by subsection (a) shall be to explore means to

enhance cooperation between the United States and the Russian

Federation with respect to nuclear nonproliferation and security

and such other issues related to reducing the dangers of weapons

of mass destruction as the members of the working group consider

appropriate.

(c) MEMBERSHIP.—(1) The majority leader of the Senate, after

consultation with the minority leader of the Senate, shall appoint

not more than 10 Senators to the working group established by

subsection (a).

(2) The Speaker of the House of Representatives, after consultation with the minority leader of the House of Representatives,

shall appoint not more than 30 Members of the House to the

working group.

SEC. 3623. SENSE OF CONGRESS ON COOPERATION BY UNITED STATES

AND NATO WITH RUSSIA ON BALLISTIC MISSILE

DEFENSES.

(a) SENSE OF CONGRESS.—It is the sense of Congress that

the President should, in conjunction with the North Atlantic Treaty

Organization, encourage appropriate cooperative relationships

between the Russian Federation and the United States and North

Atlantic Treaty Organization with respect to the development and

deployment of ballistic missile defenses.

(b) REPORT TO CONGRESS.—Not later than one year after the

date of the enactment of this Act, the Secretary of Defense shall

transmit to the Committee on Armed Services of the Senate and

the Committee on Armed Services of the House of Representatives

a report (in unclassified or classified form as necessary) on the
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feasibility of increasing cooperation between the Russian Federation

and the United States and the North Atlantic Treaty Organization

on the subject of ballistic missile defense. The report shall include—

(1) the recommendations of the Secretary;

(2) a description of the threat such cooperation is intended

to address; and

(3) an assessment of possible benefits to ballistic missile

defense programs of the United States.

SEC. 3624. SENSE OF CONGRESS ON ENHANCED COLLABORATION TO

ACHIEVE MORE RELIABLE RUSSIAN EARLY WARNING

SYSTEMS.

It is the sense of Congress that the President, to the extent

consistent with the national security interests of the United States,

should—

(1) encourage joint efforts by the United States and the

Russian Federation to reduce the probability of accidental

nuclear attack as a result of misinformation or miscalculation

by developing the capabilities and increasing the reliability

of Russian ballistic missile early-warning systems;

(2) encourage the development of joint programs by the

United States and the Russian Federation to ensure that the

Russian Federation has reliable information regarding launches

of ballistic missiles anywhere in the world; and

(3) pending the execution of a new agreement between

the United States and the Russian Federation providing for

the conduct of the Russian-American Observation Satellite

(RAMOS) program, ensure that funds appropriated for that

program for fiscal year 2004 are obligated and expended in

a manner that provides for the satisfactory continuation of

that program.

Subtitle C—Other Matters

SEC. 3631. PROMOTION OF DISCUSSIONS ON NUCLEAR AND RADIOLOGICAL SECURITY AND SAFETY BETWEEN THE INTERNATIONAL ATOMIC ENERGY AGENCY AND THE

ORGANIZATION FOR ECONOMIC COOPERATION AND

DEVELOPMENT.

(a) SENSE OF CONGRESS REGARDING INITIATION OF DIALOGUE

BETWEEN THE IAEA AND THE OECD.—It is the sense of Congress

that—

(1) the United States should seek to initiate discussions

between the International Atomic Energy Agency and the

Organization for Economic Cooperation and Development for

the purpose of exploring issues of nuclear and radiological

security and safety, including the creation of new sources of

revenue (including debt reduction) for states to provide nuclear

security; and

(2) the discussions referred to in paragraph (1) should

also provide a forum to explore possible sources of funds in

support of the G–8 Global Partnership Against the Spread

of Weapons and Materials of Mass Destruction.

(b) CONTINGENT REPORT.—(1) Except as provided in paragraph

(2), the President shall, not later than 12 months after the date

of the enactment of this Act, submit to Congress a report on—
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(A) the efforts made by the United States to initiate the

discussions described in subsection (a);

(B) the results of those efforts; and

(C) any plans for further discussions and the purposes

of such discussions.

(2) Paragraph (1) shall not apply if no efforts referred to in

paragraph (1)(A) have been made.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.