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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1588 Enrolled Bill (ENR)]

        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.

                     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.
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''.

                  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 courts-martial.
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 high-cost 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.
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.
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.

 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 non-United 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.
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.
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.
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.

 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.

                    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.

 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.

                   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
        (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.
    (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 higher-level 
    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 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 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 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
            (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-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 long-term 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 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 appropriated 
by section 201, $11,029,557,000 shall be available for the 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.
        (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
        (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.
    (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.
        (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.

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:

``Sec. 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--
        (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:

``Sec. 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.
        ``(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:

``Sec. 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.
        ``(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 HIGH-SPEED, HIGH-
              BANDWIDTH CAPABILITIES FOR NETWORK-CENTRIC 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 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).
        (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.
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.
        (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 Counter-Drug Activities, Defense-wide, 
$817,371,000.
    (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).
    (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''.
    (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:

``Sec. 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 
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 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.''.

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).''.
    (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.'';
        (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, electro-magnetic 
    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:
        (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.
    (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.
    (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.--
        (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.
        (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
        (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 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 DEPOT-LEVEL 
              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 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 public-
private 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 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 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;
        (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.
        (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.

                       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 working-capital 
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 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 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--
        (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 end-strengths 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)'';
        (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.
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 non-dual 
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''.

              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.
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 courts-martial.
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.

                 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).
    (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 TIME-IN-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.''.

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:

``Sec. 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 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
        ``(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 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--
            (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 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.''.
    (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:

``Sec. 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--
        (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.

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 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 co-chairs 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) 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.
        (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 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 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''.
    (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 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
        (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--
        (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 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 one-year 
    high-deployment threshold; or
        ``(B) out of the preceding 730 days would exceed the two-year 
    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 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:

``Sec. 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;
        ``(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 HIGH-DEPLOYMENT 
              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:
        ``(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 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.

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 court-martial 
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--
        (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''.

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:

           ``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 court-martial 
        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 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.

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.

``Sec. 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 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:

``Sec. 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:

   ``CHAPTER 875--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER 
                                 DUTIES

``Sec.
``9061. Fatality reviews.

``Sec. 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.

                       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:

``Sec. 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.
    ``(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:

``Sec. 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 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 Affairs-
    Department 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 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.
    (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 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 high-cost 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.
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
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  $12,524.7  $12,586.2  $12,847.8  $13,303.80
                                     0          0          0
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.
\2\Subject 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.
\3\This 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
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
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.
\2\Subject 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 one-half of 
one percentage point higher than the percentage that would otherwise be 
applicable under such paragraph.
    ``(3) In this subsection:
        ``(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 three-month 
    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:
        ``(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''.
    (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''.
    (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--
        (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 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).

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:

``Sec. 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:

``Sec. 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.
    ``(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:

``Sec. 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.
    ``(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 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
            (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:

``Sec. 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.''.
    (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:

``Sec. 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.''.
    (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:

``Sec. 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.
    ``(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
            ``(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.
        ``(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.--
        (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).''.
        (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 Compensation.--
Subsection (b)(1) of such section is amended by 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:

``Sec. 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
                ``(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 inactive-duty 
        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 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.''.

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;
        (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;
        (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:

``Sec. 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:

``Sec. 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 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,''.

                       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.

               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:

``Sec. 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 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 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-effective-date 
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 active-
duty 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.''.
    (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 
        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''.

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.
    (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.''.

SEC. 722. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
              FUND VALUATIONS AND CONTRIBUTIONS.

    (a) Separate Periodic Actuarial Valuation for Single Uniformed 
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 access-to-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 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.
        (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 TRICARE-authorized 
        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:
        (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 
    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.''.
    (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.
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:

``Sec. 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 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)).''.
    (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 
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 anti-terrorism 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.
    (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.
        (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--
        (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.
        (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.

            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:

``Sec. 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 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.
        (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''.

   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''.

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:

``Sec. 1742. Internship, cooperative education, and scholarship 
            programs

    ``The Secretary of Defense shall conduct the following education 
and training programs:
        ``(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:

``Sec. 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.
        (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:

``Sec. 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--
        (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,'' 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:

``Sec. 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.

       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'.''.

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 non-United 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.

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:
    ``(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.
    ``(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 odd-numbered 
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.
        (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 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 full-time 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 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:

``Sec. 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 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.''.

    (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:

``Sec. 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:

``Sec. 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 
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) 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).

       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''.
        (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:

``Sec. 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
            (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.
        ``(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.
        ``(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 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:
        (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.
        (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:

``Sec. 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.
    ``(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 
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--
            (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.

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:
        (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
            (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.

                     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
        (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 common-funded 
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 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:

``Sec. 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:

``Sec. 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.

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 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):
    ``(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)).

                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.''.

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:

``Sec. 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 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:

``Sec. 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--
        ``(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.

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''.
    (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).
        (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)''.
        (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:

``Sec. 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:

``Sec. 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.''.
        (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'';
                (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 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 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 
            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 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:
    ``(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).
        (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 Capability.--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 submarine-
    launched 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 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
            (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:

``Sec. 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.
        ``(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 anti-
    countermeasures; 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
        (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 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).
        (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).
        (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);
                (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 Clinger-
    Cohen 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 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.
    (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:

``Sec. 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.

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 near-real-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 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 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 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 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.

                  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.

``Sec. 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.

``Sec. 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 
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 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.
    ``(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;
            ``(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 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 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 performance-based 
    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 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 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).
    ``(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.
        ``(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.

``Sec. 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 senior-level 
    positions under section 5376, as increased by locality-based 
    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 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.

``Sec. 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.

     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
                ``(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.
    (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 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).''.
    (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:

``Sec. 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 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:

``Sec. 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 
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 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:

              ``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.

``Sec. 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.

``Sec. 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, policy-
        determining, policy-making, or policy-advocating character; and
        ``(3) `Office' means the Office of Personnel Management.

``Sec. 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 
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.

``Sec. 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 full- and 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 locality-based 
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 performance-related 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.

``Sec. 5405. Regulations

    ``The Office shall issue such regulations as it determines to be 
necessary for the administration of this chapter, including the 
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.

``Sec. 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.

``Sec. 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.

``Sec. 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:

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.

                  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 (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.
        (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, 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 know-how 
    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.

           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 
    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:

``Sec. 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--
        (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:

``Sec. 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''.

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.

       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 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.

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 peace-support 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
        (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 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.

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 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 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 Constructed.--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:
        (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 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 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 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.

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 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)''.

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.
        ``(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, performance-based 
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.

                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 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 performance-based 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, 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 time-
    and-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 Contracts 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 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-and-materials 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 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.
    (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--
            ``(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 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.
    (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.

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.

             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).
    (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 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 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 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.--
            ``(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 well-
    controlled 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 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
                    ``(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.<plus-minus>
                ``(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 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.
    ``(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:

``Sec. 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.

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 Military 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:
    ``(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''.

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 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)).
        (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
        (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.

            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
------------------------------------------------------------------------
                                    Installation or
             State                      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        $113,500,000
                                  Army Air Field......
Hawaii.........................  Helemano Military            $1,400,000
                                  Reservation.........
                                 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              $5,500,000
                                  Center, Natick......
New Jersey.....................  Naval Air Engineering        $2,250,000
                                  Center, Lakehurst...
                                 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
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
------------------------------------------------------------------------
                                     Installation or
            Country                      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.

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 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
        (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''.
    (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
            (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
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,230,000
                                  Station, Yuma.
California.....................  Marine Corps Air-           $42,090,000
                                  Ground Task Force
                                  Training Center,
                                  Twentynine Palms.....
                                 Marine Corps Air             $7,640,000
                                  Station, Miramar.....
                                 Marine Corps Base,          $73,580,000
                                  Camp Pendleton.......
                                 Naval Air Facility,         $18,940,000
                                  San Clemente Island..
                                 Naval Air Station,          $34,510,000
                                  Lemoore..............
                                 Naval Air Station,          $49,240,000
                                  North Island.........
                                 Naval Air Warfare            $6,150,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Postgraduate          $42,560,000
                                  School, Monterey.....
                                 Naval Station, San          $49,710,000
                                  Diego.
Connecticut....................  Naval Submarine Base,        $3,120,000
                                  New London...........
District of Columbia...........  Marine Corps Barracks.       $1,550,000
Florida........................  Blount Island              $115,711,000
                                  (Jacksonville).
                                 Naval Air Station,           $9,190,000
                                  Jacksonville.........
                                 Naval Air Station,           $4,830,000
                                  Whiting Field, Milton
                                 Naval Surface Warfare        $9,550,000
                                  Center, Coastal
                                  Systems Station,
                                  Panama City..........
Georgia........................  Strategic Weapons           $11,510,000
                                  Facility Atlantic,
                                  Kings Bay............
Hawaii.........................  Fleet and Industrial        $32,180,000
                                  Supply Center, Pearl
                                  Harbor...............
                                 Naval Magazine,              $6,320,000
                                  Lualualei.
                                 Naval Shipyard, Pearl        $7,010,000
                                  Harbor.
Illinois.......................  Naval Training Center,     $137,120,000
                                  Great Lakes..........
Indiana........................  Naval Surface Warfare       $11,400,000
                                  Center, Crane........
Maryland.......................  Naval Air Warfare           $28,270,000
                                  Center, Patuxent
                                  River................
                                 Naval Surface Warfare       $14,850,000
                                  Center, Indian Head..
Mississippi....................  Naval Air Station,           $4,570,000
                                  Meridian.
New Jersey.....................  Naval Air Warfare           $20,681,000
                                  Center, Lakehurst....
                                 Naval Weapons Station,     $123,720,000
                                  Earle.
North Carolina.................  Marine Corps Air             $6,240,000
                                  Station, New River...
                                 Marine Corps Base,          $29,450,000
                                  Camp Lejeune.........
Rhode Island...................  Naval Station, Newport      $18,690,000
                                 Naval Undersea Warfare      $10,890,000
                                  Center, Newport......
South Carolina.................  Naval Weapons Station,       $2,350,000
                                  Charleston...........
Texas..........................  Naval Air Station,           $5,400,000
                                  Corpus Christi.
                                 Naval Station,               $7,070,000
                                  Ingleside.
Virginia.......................  Henderson Hall,              $1,970,000
                                  Arlington.
                                 Marine Corps Combat         $18,120,000
                                  Development Command,
                                  Quantico.............
                                 Naval Air Station,          $10,000,000
                                  Oceana.
                                 Naval Amphibious Base,       $3,810,000
                                  Little Creek.........
                                 Naval Space Command         $24,020,000
                                  Center, Dahlgren.....
                                 Naval Station, Norfolk     $182,240,000
                                 Norfolk Naval               $17,770,000
                                  Shipyard, Portsmouth.
Washington.....................  Naval Air Station,           $4,650,000
                                  Whidbey Island.......
                                 Naval Magazine, Indian       $2,240,000
                                  Island.
                                 Naval Shipyard, Puget        $6,020,000
                                  Sound.
                                 Naval Submarine Base,       $33,820,000
                                  Bangor.
                                 Strategic Weapons            $6,530,000
                                  Facility Pacific,
                                  Bangor...............
Various Locations..............  Various Locations,          $56,360,000
                                  CONUS.
                                                        ----------------
                                     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
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $18,030,000
                                  Bahrain...............
Guam...........................  Commander, United            $1,700,000
                                  States Naval Forces,
                                  Marianas..............
Italy..........................  Naval Air Station,          $34,070,000
                                  Sigonella.............
                                 Naval Support Activity,     $39,020,000
                                  La Maddalena..........
                                                         ---------------
                                     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 
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,           25 Units...................    $4,447,000
                                           Pensacola.................
North Carolina..........................  Marine Corps Air Station,    339 Units..................   $42,803,000
                                           Cherry Point..............
                                          Marine Corps Base, Camp      519 Units..................   $68,531,000
                                           Lejeune...................
                                                                                                   -------------
                                                                           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 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
        (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
            (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
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $26,000,000
Alaska.........................  Eielson Air Force Base.     $49,061,000
                                 Elmendorf Air Force          $2,000,000
                                  Base.
Arizona........................  Davis-Monthan Air Force     $10,062,000
                                  Base..................
                                 Luke Air Force Base....     $14,300,000
Arkansas.......................  Little Rock Air Force        $3,695,000
                                  Base.
California.....................  Beale Air Force Base...     $22,750,000
                                 Edwards Air Force Base.     $26,744,000
                                 Los Angeles Air Force        $5,000,000
                                  Base.
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     $15,245,000
                                  Base..................
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          $3,600,000
                                  Site.
North Carolina.................  Pope Air Force Base....     $24,499,000
                                 Seymour Johnson Air         $22,622,000
                                  Force Base............
North Dakota...................  Minot Air Force Base...     $12,690,000
Ohio...........................  Wright-Patterson Air        $21,100,000
                                  Force Base............
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         $9,042,000
                                  Base.
                                 Shaw Air Force Base....      $8,500,000
South Dakota...................  Ellsworth Air Force          $9,300,000
                                  Base.
Texas..........................  Goodfellow Air Force        $20,335,000
                                  Base.
                                 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
------------------------------------------------------------------------
                                     Installation or
            Country                      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,            $42,487,000
                                  Lakenheath.
                                 Royal Air Force,            $10,558,000
                                  Mildenhall.
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
------------------------------------------------------------------------
                                     Installation or
            Location                     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:
    
    

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Davis-Monthan Air Force       93 Units..................   $19,357,000
                                           Base......................
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      186 Units..................   $37,126,000
                                           Base......................
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    138 Units..................   $18,336,000
                                           Base......................
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.
        (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 and locations inside the 
United States, and in the amounts, set forth in the following table:
    
    

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Marine Corps Base, Camp     $15,259,000
                                  Lejeune, North
                                  Carolina..............
Defense Logistics Agency.......  Defense Distribution        $27,700,000
                                  Depot, New Cumberland,
                                  Pennsylvania..........
                                 Eglin Air Force Base,        $4,800,000
                                  Florida...............
                                 Eielson Air Force Base,     $17,000,000
                                  Alaska................
                                 Hickam Air Force Base,      $14,100,000
                                  Hawaii................
                                 Hurlburt Field, Florida      $4,100,000
                                 Offutt Air Force Base,      $13,400,000
                                  Nebraska..............
                                 Langley Air Force Base,     $13,000,000
                                  Virginia..............
                                 Laughlin Air Force           $4,688,000
                                  Base, Texas...........
                                 McChord Air Force Base,      $8,100,000
                                  Washington............
                                 Naval Air Station,           $9,200,000
                                  Kingsville, Texas.....
                                 Nellis Air Force Base,      $12,800,000
                                  Nevada................
Missile Defense Agency.........  Redstone Arsenal,           $20,000,000
                                  Alabama...............
National Security Agency.......  Fort Meade, Maryland...      $1,842,000
Special Operations Command.....  Dam Neck, Virginia.....     $15,281,000
                                 Fort Bragg, North           $36,300,000
                                  Carolina.
                                 Fort Campbell, Kentucky      $7,800,000
                                 Harrisburg                   $3,000,000
                                  International Airport,
                                  Pennsylvania..........
                                 Hurlburt Field, Florida      $6,000,000
                                 MacDill Air Force Base,     $25,500,000
                                  Florida...............
                                 Naval Amphibious Base,       $2,800,000
                                  Coronado, California..
TRICARE Management Activity....  Fort Hood, Texas.......      $9,400,000
                                 Naval Station,              $15,714,000
                                  Anacostia, District of
                                  Columbia..............
                                 Naval Submarine Base,        $6,700,000
                                  New London,
                                  Connecticut...........
                                 United States Air Force     $22,100,000
                                  Academy, Colorado.....
                                 Walter Reed Medical          $9,000,000
                                  Center, District of
                                  Columbia..............
Washington Headquarters          Arlington, Virginia....     $38,086,000
 Services......................
                                                         ---------------
                                     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
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Sigonella, Italy.......     $30,234,000
                                 Vicenza, Italy.........     $16,374,000
TRICARE Management Activity....  Anderson Air Force          $26,000,000
                                  Base, Guam............
                                                         ---------------
                                     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.
            (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;
        (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.
        (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:
    
    

                                  Army: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
South Carolina........................  Fort Jackson.............  New Construction--Family             $250,000
                                                                    Housing (1 Unit)............
----------------------------------------------------------------------------------------------------------------

    
    

                          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         $6,000,000
                                                                    Units)......................
----------------------------------------------------------------------------------------------------------------

    
    

                          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.
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.

 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:

``Sec. 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.
    ``(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.
    ``(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.

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.''.

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 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)''.
    (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:

``Sec. 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''.

                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.

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 Federal-aid 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.
    (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 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 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. 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.
    (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 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.
    (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 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.
    (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.
        (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
        (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 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 Clean-up 
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.''.

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 public-private 
    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.

 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.

         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.
        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 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 
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.

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.
        ``(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
            (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
        (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:
    ``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).

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 science-based 
        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;
            (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.
        (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.
``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.
``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.

         ``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.--
        (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 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
            (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
            (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 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''.
        (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
            (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;
                (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).
        (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--
            (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:

                     ``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 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)bystriking``(a)RedesignationofProject.--''.
        (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:

          ``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 Clean-Up 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
                (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;
            (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)--

                    (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 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).''.
        (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
                (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,''.
        (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
            (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;
        ``(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--
                (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 facilities.--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 substances.--Section 3162 of 
    the National Defense Authorization Act for Fiscal Year 1993 (Public 
    Law 102-484; 106 Stat. 2646), 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 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:

         ``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 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:

                 ``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--
                (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 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 program.--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 facilities.--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. 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
            (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.

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.
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.--
        ``(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.
        ``(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 not-for-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;
        (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:
        ``(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 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 
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 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
        (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.
    (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.

       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 12\1/2\ 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 
    12\1/2\ 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.''.

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.''.

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--
        ``(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:
            ``(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.
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.

``Sec. 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 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 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.

``Sec. 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.
    ``(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--
            ``(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 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.

``Sec. 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 
        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).
            ``(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.

``Sec. 53104. Effectiveness of operating agreements

    ``(a) Effectiveness, Generally.--The Secretary may enter into an 
operating agreement under this chapter for fiscal year 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).

    ``(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.

``Sec. 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.
    ``(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.

``Sec. 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;
        ``(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.

``Sec. 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.
    ``(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 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.

``Sec. 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;
        ``(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.

``Sec. 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).

``Sec. 53110. Regulations

    ``The Secretary and the Secretary of Defense may each prescribe 
rules as necessary to carry out their respective responsibilities under 
this chapter.

``Sec. 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, 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.--
        (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.
    (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
        (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.
    (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''.

   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 
        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 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--
        (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.
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