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[House Report 108-106]
[From the U.S. Government Publishing Office]

108th Congress                                            Rept. 108-106
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 2

======================================================================

 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004

                                _______
                                

                  May 21, 2003.--Ordered to be printed

                                _______
                                

    Mr. Hunter, from the Committee on Armed Services, submitted the 
                               following

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 1588]

    The supplemental report shows changes in existing law made 
by the bill (H.R. 1588), as reported. The material contained in 
this supplemental report was omitted in the report submitted on 
May 16, 2003 (H. Rept. 108-106).

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

    BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT OF FISCAL YEAR 2003

           *       *       *       *       *       *       *
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

           *       *       *       *       *       *       *

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-130J AIRCRAFT PROGRAM.

    (a) Multiyear Authority.--Beginning with the fiscal year 
2003 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 procurement of up to [40 C-
130J aircraft] 42 C-130J aircraft in the CC-130J configuration 
and up to 24 C-130J aircraft in the KC-130J configuration. 
Notwithstanding subsection (k) of such section, such a contract 
may be for a period of six program years.

           *       *       *       *       *       *       *

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

           *       *       *       *       *       *       *

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. RAH-66 COMANCHE AIRCRAFT PROGRAM.

    (a) Reports Required.--Not later than the end of each 
fiscal quarter of fiscal year 2003 and fiscal year 2004, the 
Secretary of the Army 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 progress of the 
restructured engineering and manufacturing development phase of 
the RAH-66 Comanche aircraft program.

           *       *       *       *       *       *       *

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
MATTERS

           *       *       *       *       *       *       *

Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

SEC. 811. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

    (a) * * *

           *       *       *       *       *       *       *

    [(c) Comptroller General Report.--Not later than March 15, 
2003, 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 
contract periods (including any options or extensions) for all 
single and multiple contract awards entered into under section 
2304a(d) of title 10, United States Code, before the effective 
date in subsection (b).]

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

             [TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

[Sec. 3601. Short title.

                         [Subtitle A--[Reserved]

   [Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

[Sec. 3620. Definitions.
[Sec. 3621. Reprogramming.
[Sec. 3622. Minor construction projects.
[Sec. 3623. Limits on construction projects.
[Sec. 3624. Fund transfer authority.
[Sec. 3625. Conceptual and construction design.
[Sec. 3626. Authority for emergency planning, design, and construction 
          activities.
[Sec. 3627. Scope of authority to carry out plant projects.
[Sec. 3628. Availability of funds.
[Sec. 3629. Transfer of defense environmental management funds.
[Sec. 3630. Transfer of weapons activities funds.
[Sec. 3631. Funds available for all national security programs of the 
          Department of Energy.

[SEC. 3601. SHORT TITLE.

    [This title may be cited as the ``Atomic Energy Defense 
Act''.

                        [Subtitle A--[Reserved]

  [Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

[SEC. 3620. DEFINITIONS.

    [In this subtitle:
            [(1) The term ``DOE national security 
        authorization'' means an authorization of 
        appropriations for activities of the Department of 
        Energy in carrying out programs necessary for national 
        security.
            [(2) 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.
            [(3) The term ``minor construction threshold'' 
        means $5,000,000.

[SEC. 3621. REPROGRAMMING.

    [(a) In General.--Except as provided in subsection (b) and 
in sections 3629 and 3630, the Secretary of Energy may not use 
amounts appropriated pursuant to a DOE national security 
authorization for a program--
            [(1) in amounts that exceed, in a fiscal year--
                    [(A) 115 percent of the amount authorized 
                for that program by that authorization for that 
                fiscal year; or
                    [(B) $5,000,000 more than the amount 
                authorized for that program by that 
                authorization for that fiscal year; or
            [(2) which has not been presented to, or requested 
        of, Congress.
    [(b) Exception Where Notice-and-Wait Given.--An action 
described in subsection (a) may be taken if--
            [(1) the Secretary submits to the congressional 
        defense committees a report referred to in subsection 
        (c) with respect to such action; and
            [(2) a period of 30 days has elapsed after the date 
        on which such committees receive the report.
    [(c) Report.--The report referred to in subsection (a) is a 
report containing a full and complete statement of the action 
proposed to be taken and the facts and circumstances relied 
upon in support of the proposed action.
    [(d) Computation of Days.--In the computation of the 30-day 
period under subsection (b), there shall be excluded any day on 
which either House of Congress is not in session because of an 
adjournment of more than three days to a day certain.
    [(e) Limitations.--
            [(1) Total amount obligated.--In no event may the 
        total amount of funds obligated pursuant to a DOE 
        national security authorization for a fiscal year 
        exceed the total amount authorized to be appropriated 
        by that authorization for that fiscal year.
            [(2) Prohibited items.--Funds appropriated pursuant 
        to a DOE national security authorization may not be 
        used for an item for which Congress has specifically 
        denied funds.

[SEC. 3622. MINOR CONSTRUCTION PROJECTS.

    [(a) Authority.--Using operation and maintenance funds or 
facilities and infrastructure funds authorized by a DOE 
national security authorization, the Secretary of Energy may 
carry out minor construction projects.
    [(b) Annual Report.--The Secretary shall submit to the 
congressional defense committees on an annual basis a report on 
each exercise of the authority in subsection (a) during the 
preceding fiscal year. Each report shall provide a brief 
description of each minor construction project covered by the 
report.
    [(c) Cost Variation Reports to Congressional Committees.--
If, at any time during the construction of any minor 
construction project authorized by a DOE national security 
authorization, the estimated cost of the project is revised and 
the revised cost of the project exceeds the minor construction 
threshold, the Secretary shall immediately submit to the 
congressional defense committees a report explaining the 
reasons for the cost variation.
    [(d) Minor Construction Project Defined.--In this section, 
the term ``minor construction project'' means any plant project 
not specifically authorized by law for which the approved total 
estimated cost does not exceed the minor construction 
threshold.

[SEC. 3623. LIMITS ON CONSTRUCTION PROJECTS.

    [(a) Construction Cost Ceiling.--Except as provided in 
subsection (b), construction on a construction project which is 
in support of national security programs of the Department of 
Energy and was authorized by a DOE national security 
authorization may not be started, and additional obligations in 
connection with the project above the total estimated cost may 
not be incurred, whenever the current estimated cost of the 
construction project exceeds by more than 25 percent the higher 
of--
            [(1) the amount authorized for the project; or
            [(2) the amount of the total estimated cost for the 
        project as shown in the most recent budget 
        justification data submitted to Congress.
    [(b) Exception Where Notice-and-Wait Given.--An action 
described in subsection (a) may be taken if--
            [(1) the Secretary of Energy has submitted to the 
        congressional defense committees a report on the 
        actions and the circumstances making such action 
        necessary; and
            [(2) a period of 30 days has elapsed after the date 
        on which the report is received by the committees.
    [(c) Computation of Days.--In the computation of the 30-day 
period under subsection (b), there shall be excluded any day on 
which either House of Congress is not in session because of an 
adjournment of more than three days to a day certain.
    [(d) Exception for Minor Projects.--Subsection (a) does not 
apply to a construction project with a current estimated cost 
of less than the minor construction threshold.

[SEC. 3624. FUND TRANSFER AUTHORITY.

    [(a) Transfer to Other Federal Agencies.--The Secretary of 
Energy may transfer funds authorized to be appropriated to the 
Department of Energy pursuant to a DOE national security 
authorization to other Federal agencies for the performance of 
work for which the funds were authorized. Funds so transferred 
may be merged with and be available for the same purposes and 
for the same time period as the authorizations of the Federal 
agency to which the amounts are transferred.
    [(b) Transfer Within Department of Energy.--
            [(1) Transfers permitted.--Subject to paragraph 
        (2), the Secretary of Energy may transfer funds 
        authorized to be appropriated to the Department of 
        Energy pursuant to a DOE national security 
        authorization to any other DOE national security 
        authorization. Amounts of authorizations so transferred 
        may be merged with and be available for the same 
        purposes and for the same period as the authorization 
        to which the amounts are transferred.
            [(2) Maximum amounts.--Not more than 5 percent of 
        any such authorization may be transferred to another 
        authorization under paragraph (1). No such 
        authorization may be increased or decreased by more 
        than 5 percent by a transfer under such paragraph.
    [(c) Limitations.--The authority provided by this 
subsection to transfer authorizations--
            [(1) may be used only to provide funds for items 
        relating to activities necessary for national security 
        programs that have a higher priority than the items 
        from which the funds are transferred; and
            [(2) may not be used to provide funds for an item 
        for which Congress has specifically denied funds.
    [(d) Notice to Congress.--The Secretary of Energy shall 
promptly notify the congressional defense committees of any 
transfer of funds to or from any DOE national security 
authorization.

[SEC. 3625. CONCEPTUAL AND CONSTRUCTION DESIGN.

    [(a) Conceptual Design.--
            [(1) Requirement.--Subject to paragraph (2) and 
        except as provided in paragraph (3), before submitting 
        to Congress a request for funds for a construction 
        project that is in support of a national security 
        program of the Department of Energy, the Secretary of 
        Energy shall complete a conceptual design for that 
        project.
            [(2) Requests for conceptual design funds.--If the 
        estimated cost of completing a conceptual design for a 
        construction project exceeds $3,000,000, the Secretary 
        shall submit to Congress a request for funds for the 
        conceptual design before submitting a request for funds 
        for the construction project.
            [(3) Exceptions.--The requirement in paragraph (1) 
        does not apply to a request for funds--
                    [(A) for a construction project the total 
                estimated cost of which is less than the minor 
                construction threshold; or
                    [(B) for emergency planning, design, and 
                construction activities under section 3626.
    [(b) Construction Design.--
            [(1) Authority.--Within the amounts authorized by a 
        DOE national security authorization, the Secretary may 
        carry out construction design (including architectural 
        and engineering services) in connection with any 
        proposed construction project if the total estimated 
        cost for such design does not exceed $600,000.
            [(2) Limitation on availability of funds for 
        certain projects.--If the total estimated cost for 
        construction design in connection with any construction 
        project exceeds $600,000, funds for that design must be 
        specifically authorized by law.

[SEC. 3626. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
                    ACTIVITIES.

    [(a) Authority.--The Secretary of Energy may use any funds 
available to the Department of Energy pursuant to a DOE 
national security authorization, including funds authorized to 
be appropriated for advance planning, engineering, and 
construction design, and for plant projects, to perform 
planning, design, and construction activities for any 
Department of Energy national security program construction 
project that, as determined by the Secretary, must proceed 
expeditiously in order to protect public health and safety, to 
meet the needs of national defense, or to protect property.
    [(b) Limitation.--The Secretary may not exercise the 
authority under subsection (a) in the case of a construction 
project until the Secretary has submitted to the congressional 
defense committees a report on the activities that the 
Secretary intends to carry out under this section and the 
circumstances making those activities necessary.
    [(c) Specific Authority.--The requirement of section 
3625(b)(2) does not apply to emergency planning, design, and 
construction activities conducted under this section.

[SEC. 3627. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS.

    [In carrying out programs necessary for national security, 
the authority of the Secretary of Energy to carry out plant 
projects includes authority for maintenance, restoration, 
planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior years, and land acquisition related thereto.

[SEC. 3629. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    [(a) Transfer Authority for Defense Environmental 
Management Funds.--The Secretary of Energy shall provide the 
manager of each field office of the Department of Energy with 
the authority to transfer defense environmental management 
funds from a program or project under the jurisdiction of that 
office to another such program or project.
    [(b) Limitations.--
            [(1) Number of transfers.--Not more than one 
        transfer may be made to or from any program or project 
        under subsection (a) in a fiscal year.
            [(2) Amounts transferred.--The amount transferred 
        to or from a program or project in any one transfer 
        under subsection (a) may not exceed $5,000,000.
            [(3) Determination required.--A transfer may not be 
        carried out by a manager of a field office under 
        subsection (a) unless the manager determines that the 
        transfer is necessary--
                    [(A) to address a risk to health, safety, 
                or the environment; or
                    [(B) to assure the most efficient use of 
                defense environmental management funds at the 
                field office.
            [(4) Impermissible uses.--Funds transferred 
        pursuant to subsection (a) may not be used for an item 
        for which Congress has specifically denied funds or for 
        a new program or project that has not been authorized 
        by Congress.
    [(c) Exemption From Reprogramming Requirements.--The 
requirements of section 3621 shall not apply to transfers of 
funds pursuant to subsection (a).
    [(d) Notification.--The Secretary, acting through the 
Assistant Secretary of Energy for Environmental Management, 
shall notify Congress of any transfer of funds pursuant to 
subsection (a) not later than 30 days after such transfer 
occurs.
    [(e) Definitions.--In this section:
            [(1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        a program or project that is for environmental 
        restoration or waste management activities necessary 
        for national security programs of the Department, that 
        is being carried out by that office, and for which 
        defense environmental management funds have been 
        authorized and appropriated.
            [(2) The term ``defense environmental management 
        funds'' means funds appropriated to the Department of 
        Energy pursuant to an authorization for carrying out 
        environmental restoration and waste management 
        activities necessary for national security programs.

[SEC. 3630. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

    [(a) Transfer Authority for Weapons Activities Funds.--The 
Secretary of Energy shall provide the manager of each field 
office of the Department of Energy with the authority to 
transfer weapons activities funds from a program or project 
under the jurisdiction of that office to another such program 
or project.
    [(b) Limitations.--
            [(1) Number of transfers.--Not more than one 
        transfer may be made to or from any program or project 
        under subsection (a) in a fiscal year.
            [(2) Amounts transferred.--The amount transferred 
        to or from a program or project in any one transfer 
        under subsection (a) may not exceed $5,000,000.
            [(3) Determination required.--A transfer may not be 
        carried out by a manager of a field office under 
        subsection (a) unless the manager determines that the 
        transfer--
                    [(A) is necessary to address a risk to 
                health, safety, or the environment; or
                    [(B) will result in cost savings and 
                efficiencies.
            [(4) Limitation.--A transfer may not be carried out 
        by a manager of a field office under subsection (a) to 
        cover a cost overrun or scheduling delay for any 
        program or project.
            [(5) Impermissible uses.--Funds transferred 
        pursuant to subsection (a) may not be used for an item 
        for which Congress has specifically denied funds or for 
        a new program or project that has not been authorized 
        by Congress.
    [(c) Exemption From Reprogramming Requirements.--The 
requirements of section 3621 shall not apply to transfers of 
funds pursuant to subsection (a).
    [(d) Notification.--The Secretary, acting through the 
Administrator for Nuclear Security, shall notify Congress of 
any transfer of funds pursuant to subsection (a) not later than 
30 days after such transfer occurs.
    [(e) Definitions.--In this section:
            [(1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        a program or project that is for weapons activities 
        necessary for national security programs of the 
        Department, that is being carried out by that office, 
        and for which weapons activities funds have been 
        authorized and appropriated.
            [(2) The term ``weapons activities funds'' means 
        funds appropriated to the Department of Energy pursuant 
        to an authorization for carrying out weapons activities 
        necessary for national security programs.

[SEC. 3631. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
                    DEPARTMENT OF ENERGY.

    [Subject to the provisions of appropriation Acts and 
section 3621, amounts appropriated pursuant to a DOE national 
security authorization for management and support activities 
and for general plant projects are available for use, when 
necessary, in connection with all national security programs of 
the Department of Energy.]

              DIVISION D--ATOMIC ENERGY DEFENSE PROVISIONS

SEC. [3601.] 4001. SHORT TITLE.

    This [title] division may be cited as the ``Atomic Energy 
Defense Act''.

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.

                   TITLE XLI--ORGANIZATIONAL MATTERS

SEC. 4101. NAVAL NUCLEAR PROPULSION PROGRAM.

    The provisions of Executive Order Numbered 12344, dated 
February 1, 1982, pertaining to the Naval Nuclear Propulsion 
Program, shall remain in force until changed by law.

SEC. 4102. MANAGEMENT STRUCTURE FOR NUCLEAR WEAPONS PRODUCTION 
                    FACILITIES AND NUCLEAR WEAPONS 
                    LABORATORIES.

    (a) Limitation on Delegation of Authority.--(1) The 
Secretary of Energy, in carrying out national security 
programs, may delegate specific management and planning 
authority over matters relating to site operation of the 
facilities and laboratories covered by this section only to the 
Assistant Secretary of Energy for Defense Programs. Such 
Assistant Secretary may redelegate such authority only to 
managers of area offices of the Department of Energy located at 
such facilities and laboratories.
    (2) Nothing in this section may be construed as affecting 
the delegation by the Secretary of Energy of authority relating 
to reporting, management, and oversight of matters relating to 
the Department of Energy generally, or safety, environment, and 
health at such facilities and laboratories.
    (b) Requirement To Consult With Area Offices.--The 
Assistant Secretary of Energy for Defense Programs, in 
exercising any delegated authority to oversee management of 
matters relating to site operation of a facility or laboratory, 
shall exercise such authority only after direct consultation 
with the manager of the area office of the Department of Energy 
located at the facility or laboratory.
    (c) Requirement for Direct Communication From Area 
Offices.--The Secretary of Energy, acting through the Assistant 
Secretary of Energy for Defense Programs, shall require the 
head of each area office of the Department of Energy located at 
each facility and laboratory covered by this section to report 
on matters relating to site operation other than those matters 
set forth in subsection (a)(2) directly to the Assistant 
Secretary of Energy for Defense Programs, without obtaining the 
approval or concurrence of any other official within the 
Department of Energy.
    (d) Defense Programs Reorganization Plan and Report.--(1) 
The Secretary of Energy shall develop a plan to reorganize the 
field activities and management of the national security 
functions of the Department of Energy.
    (2) Not later than January 21, 1997, the Secretary shall 
submit to Congress a report on the plan developed under 
paragraph (1). The report shall specifically identify all 
significant functions performed by the operations offices 
relating to any of the facilities and laboratories covered by 
this section and which of those functions could be performed--
            (A) by the area offices of the Department of Energy 
        located at the facilities and laboratories covered by 
        this section; or
            (B) by the Assistant Secretary of Energy for 
        Defense 
        Programs.
    (3) The report also shall address and make recommendations 
with respect to other internal streamlining and reorganization 
initiatives that the Department could pursue with respect to 
military or national security programs.
    (e) Defense Programs Management Council.--The Secretary of 
Energy shall establish a council to be known as the ``Defense 
Programs Management Council''. The Council shall advise the 
Secretary on policy matters, operational concerns, strategic 
planning, and development of priorities relating to the 
national security functions of the Department of Energy. The 
Council shall be composed of the directors of the facilities 
and laboratories covered by this section and shall report 
directly to the Assistant Secretary of Energy for Defense 
Programs.
    (f) Covered Site Operations.--For purposes of this section, 
matters relating to site operation of a facility or laboratory 
include matters relating to personnel, budget, and procurement 
in national security programs.
    (g) Covered Facilities and Laboratories.--This section 
applies to the following facilities and laboratories of the 
Department of Energy:
            (1) The Kansas City Plant, Kansas City, Missouri.
            (2) The Pantex Plant, Amarillo, Texas.
            (3) The Y-12 Plant, Oak Ridge, Tennessee.
            (4) The Savannah River Site, Aiken, South Carolina.
            (5) Los Alamos National Laboratory, Los Alamos, New 
        Mexico.
            (6) Sandia National Laboratories, Albuquerque, New 
        Mexico.
            (7) Lawrence Livermore National Laboratory, 
        Livermore, California.
            (8) The Nevada Test Site, Nevada.

SEC. 4103. RESTRICTION ON LICENSING REQUIREMENT FOR CERTAIN DEFENSE 
                    ACTIVITIES AND FACILITIES.

    None of the funds authorized to be appropriated by the 
Department of Energy National Security and Military 
Applications of Nuclear Energy Authorization Act of 1981 
(Public Law 96-540) or any other Act may be used for any 
purpose related to licensing of any defense activity or 
facility of the Department of Energy by the Nuclear Regulatory 
Commission.

             TITLE XLII--NUCLEAR WEAPONS STOCKPILE MATTERS

        Subtitle A--Stockpile Stewardship and Weapons Production

SEC. 4201. STOCKPILE STEWARDSHIP PROGRAM.

    (a) Establishment.--The Secretary of Energy shall establish 
a stewardship program to ensure the preservation of the core 
intellectual and technical competencies of the United States in 
nuclear weapons, including weapons design, system integration, 
manufacturing, security, use control, reliability assessment, 
and certification.
    (b) Program Elements.--The program shall include the 
following:
            (1) An increased level of effort for advanced 
        computational capabilities to enhance the simulation 
        and modeling capabilities of the United States with 
        respect to the detonation of nuclear weapons.
            (2) An increased level of effort for above-ground 
        experimental programs, such as hydrotesting, high-
        energy lasers, inertial confinement fusion, plasma 
        physics, and materials research.
            (3) Support for new facilities construction 
        projects that contribute to the experimental 
        capabilities of the United States, such as an advanced 
        hydrodynamics facility, the National Ignition Facility, 
        and other facilities for above-ground experiments to 
        assess nuclear weapons effects.
    (c) Authorization of Appropriations.--Of funds authorized 
to be appropriated to the Secretary of Energy for fiscal year 
1994 for weapons activities, $157,400,000 shall be available 
for the stewardship program established under subsection (a).

SEC. 4202. REPORT ON STOCKPILE STEWARDSHIP CRITERIA.

    (a) Requirement for Criteria.--The Secretary of Energy 
shall develop clear and specific criteria for judging whether 
the science-based tools being used by the Department of Energy 
for determining the safety and reliability of the nuclear 
weapons stockpile are performing in a manner that will provide 
an adequate degree of certainty that the stockpile is safe and 
reliable.
    (b) Coordination With Secretary of Defense.--The Secretary 
of Energy, in developing the criteria required by subsection 
(a), shall coordinate with the Secretary of Defense.
    (c) Report.--Not later than March 1, 2000, the Secretary of 
Energy shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the efforts by the Department of 
Energy to develop the criteria required by subsection (a). The 
report shall include--
            (1) a description of the information needed to 
        determine that the nuclear weapons stockpile is safe 
        and reliable and the relationship of the science-based 
        tools to the collection of that information; and
            (2) a description of the criteria required by 
        subsection (a) to the extent they have been developed 
        as of the date of the submission of the report.

SEC. 4203. PLAN FOR STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF 
                    WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.

    (a) Plan Requirement.--The Secretary of Energy shall 
develop and annually update a plan for maintaining the nuclear 
weapons stockpile. The plan shall cover, at a minimum, 
stockpile stewardship, stockpile management, and program 
direction and shall be consistent with the programmatic and 
technical requirements of the most recent annual Nuclear 
Weapons Stockpile Memorandum.
    (b) Plan Elements.--The plan and each update of the plan 
shall set forth the following:
            (1) The number of warheads (including active and 
        inactive warheads) for each warhead type in the nuclear 
        weapons stockpile.
            (2) The current age of each warhead type, and any 
        plans for stockpile lifetime extensions and 
        modifications or replacement of each warhead type.
            (3) The process by which the Secretary of Energy is 
        assessing the lifetime, and requirements for lifetime 
        extension or replacement, of the nuclear and nonnuclear 
        components of the warheads (including active and 
        inactive warheads) in the nuclear weapons stockpile.
            (4) The process used in recertifying the safety, 
        security, and reliability of each warhead type in the 
        nuclear weapons stockpile.
            (5) Any concerns which would affect the ability of 
        the Secretary of Energy to recertify the safety, 
        security, or reliability of warheads in the nuclear 
        weapons stockpile (including active and inactive 
        warheads).
    (c) Annual Submission of Plan to Congress.--The Secretary 
of Energy shall submit to Congress the plan developed under 
subsection (a) not later than March 15, 1998, and shall submit 
an updated version of the plan not later than March 15 of each 
year thereafter. The plan shall be submitted in both classified 
and unclassified form.

SEC. 4204. NUCLEAR WEAPONS STOCKPILE LIFE EXTENSION PROGRAM.

    (a) Program Required.--The Secretary of Energy shall, in 
consultation with the Secretary of Defense, carry out a program 
to provide for the extension of the effective life of the 
weapons in the nuclear weapons stockpile.
    (b) Administrative Responsibility for Program.--(1) The 
program under subsection (a) shall be carried out through the 
element of the Department of Energy with responsibility for 
defense programs.
    (2) For each budget submitted by the President to Congress 
under section 1105 of title 31, United States Code, the amounts 
requested for the program shall be clearly identified in the 
budget justification materials submitted to Congress in support 
of that budget.
    (c) Program Plan.--As part of the program under subsection 
(a), the Secretary shall develop a long-term plan for the 
extension of the effective life of the weapons in the nuclear 
weapons stockpile. The plan shall include the following:
            (1) Mechanisms to provide for the remanufacture, 
        refurbishment, and modernization of each weapon design 
        designated by the Secretary for inclusion in the 
        enduring nuclear weapons stockpile as of October 5, 
        1999.
            (2) Mechanisms to expedite the collection of 
        information necessary for carrying out the program, 
        including information relating to the aging of 
        materials and components, new manufacturing techniques, 
        and the replacement or substitution of materials.
            (3) Mechanisms to ensure the appropriate assignment 
        of roles and missions for each nuclear weapons 
        laboratory and production plant of the Department, 
        including mechanisms for allocation of workload, 
        mechanisms to ensure the carrying out of appropriate 
        modernization activities, and mechanisms to ensure the 
        retention of skilled personnel.
            (4) Mechanisms for allocating funds for activities 
        under the program, including allocations of funds by 
        weapon type and facility.
            (5) An identification of the funds needed, in the 
        current fiscal year and in each of the next five fiscal 
        years, to carry out the program.
    (d) Annual Submittal of Plan.--(1) The Secretary shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives the plan developed under 
subsection (c) not later than January 1, 2000. The plan shall 
contain the maximum level of detail practicable.
    (2) The Secretary shall submit to the committees referred 
to in paragraph (1) each year after 2000, at the same time as 
the submission of the budget for the fiscal year beginning in 
such year under section 1105 of title 31, United States Code, 
an update of the plan submitted under paragraph (1). Each 
update shall contain the same level of detail as the plan 
submitted under paragraph (1).
    (e) GAO Assessment.--Not later than 30 days after the 
submission of the plan under subsection (d)(1) or any update of 
the plan under subsection (d)(2), the Comptroller General shall 
submit to the committees referred to in subsection (d)(1) an 
assessment of whether the program can be carried out under the 
plan or the update (as applicable)--
            (1) in the current fiscal year, given the budget 
        for that fiscal year; and
            (2) in future fiscal years.
    (f) Sense of Congress Regarding Funding of Program.--It is 
the sense of Congress that the President should include in each 
budget for a fiscal year submitted to Congress under section 
1105 of title 31, United States Code, sufficient funds to carry 
out in the fiscal year covered by such budget the activities 
under the program under subsection (a) that are specified in 
the most current version of the plan for the program under this 
section.

SEC. [3141.] 4205. ANNUAL ASSESSMENTS AND REPORTS TO THE PRESIDENT AND 
                    CONGRESS REGARDING THE CONDITION OF THE UNITED 
                    STATES NUCLEAR WEAPONS STOCKPILE.

    (a) * * *

           *       *       *       *       *       *       *

    (d) Report on Assessments.--Not later than December 1 of 
each year, each official specified in subsection (b) shall 
submit to the Secretary concerned, and to the Nuclear Weapons 
Council, a report on the assessments that such official was 
required by subsection (a) to complete. The report shall 
include the following:
            (1) * * *

           *       *       *       *       *       *       *

            (3) In the case of a report submitted by the head 
        of a national security laboratory--
                    (A) * * *
                    (B) a concise statement regarding the 
                adequacy of the tools and methods employed by 
                the manufacturing infrastructure required by 
                [section 3137 of the National Defense 
                Authorization Act for Fiscal Year 1996 (42 
                U.S.C. 2121 note)] section 4212 to identify and 
                fix any inadequacy with respect to the matters 
                covered by the assessments; and

           *       *       *       *       *       *       *

SEC. 4206. FORM OF CERTIFICATIONS REGARDING THE SAFETY OR RELIABILITY 
                    OF THE NUCLEAR WEAPONS STOCKPILE.

    Any certification submitted to the President by the 
Secretary of Defense or the Secretary of Energy regarding 
confidence in the safety or reliability of a nuclear weapon 
type in the United States nuclear weapons stockpile shall be 
submitted in classified form only.

SEC. 4207. NUCLEAR TEST BAN READINESS PROGRAM.

  (a) Findings.--The Congress makes the following findings:
          (1) On September 17, 1987, the United States and the 
        Soviet Union announced that they would resume full-
        scale, stage-by-stage negotiations on issues relating 
        to nuclear testing, including further intermediate 
        limitations on nuclear testing leading to the ultimate 
        objective of a comprehensive nuclear test ban.
          (2) It was agreed that the first step in these 
        negotiations would be to reach agreement on 
        verification measures that will make possible the 
        ratification of the Threshold Test Ban Treaty of 1974 
        and the Peaceful Nuclear Explosions Treaty of 1976.
          (3) To achieve the agreement on verification 
        measures, the United States and the Soviet Union have 
        agreed to design and conduct a Joint Verification 
        Experiment at the test sites of each country during the 
        summer of 1988.
          (4) At the Moscow summit in May 1988, President 
        Reagan and General Secretary Gorbachev reaffirmed their 
        commitment to negotiations on ``effective verification 
        measures which will make it possible to ratify the 
        Threshold Test Ban Treaty of 1974 and Peaceful Nuclear 
        Explosions Treaty of 1976, and proceed to negotiating 
        further intermediate limitations on nuclear testing 
        leading to the ultimate objective of the complete 
        cessation of nuclear testing as part of an effective 
        disarmament process''.
  (b) Establishment of Program.--The Secretary of Energy shall 
establish and support a program to assure that the United 
States is in a position to maintain the reliability, safety, 
and continued deterrent effect of its stockpile of existing 
nuclear weapons designs in the event that a low-threshold or 
comprehensive ban on nuclear explosives testing is negotiated 
and ratified within the framework agreed to by the United 
States and the Soviet Union.
  (c) Purposes of Program.--The purposes of the program under 
subsection (b) shall be the following:
          (1) To assure that the United States maintains a 
        vigorous program of stockpile inspection and non-
        explosive testing so that, if a low-threshold or 
        comprehensive test ban is entered into, the United 
        States remains able to detect and identify potential 
        problems in stockpile reliability and safety in 
        existing designs of nuclear weapons.
          (2) To assure that the specific materials, 
        components, processes, and personnel needed for the 
        remanufacture of existing nuclear weapons or the 
        substitution of alternative nuclear warheads are 
        available to support such remanufacture or substitution 
        if such action becomes necessary in order to satisfy 
        reliability and safety requirements under a low-
        threshold or comprehensive test ban agreement.
          (3) To assure that a vigorous program of research in 
        areas related to nuclear weapons science and 
        engineering is supported so that, if a low-threshold or 
        comprehensive test ban agreement is entered into, the 
        United States is able to maintain a base of technical 
        knowledge about nuclear weapons design and nuclear 
        weapons effects.
  (d) Conduct of Program.--The Secretary of Energy shall carry 
out the program provided for in subsection (b). The program 
shall be carried out with the participation of representatives 
of the Department of Defense, the nuclear weapons production 
facilities, and the national nuclear weapons laboratories.
  (e) Annual Report.--The Secretary of Energy shall submit to 
Congress each year an unclassified report (with a classified 
annex as necessary) that describes the progress made to the 
date of the report in achieving the purposes of the program 
required to be established under subsection (b).

SEC. 4208. STUDY ON NUCLEAR TEST READINESS POSTURES.

    (a) Report.--Not later than February 15, 1996, the 
Secretary of Energy shall submit to Congress a report on the 
costs, programmatic issues, and other issues associated with 
sustaining the capability of the Department of Energy--
            (1) to conduct an underground nuclear test 6 months 
        after the date on which the President determines that 
        such a test is necessary to ensure the national 
        security of the United States;
            (2) to conduct such a test 18 months after such 
        date; and
            (3) to conduct such a test 36 months after such 
        date.
    (b) Biennial Update Report.--(1) Not later than February 15 
of each odd-numbered year, the Secretary shall submit to the 
congressional defense committees a report containing an update 
of the report required under subsection (a), as updated by any 
report previously submitted under this paragraph.
    (2) Each report under paragraph (1) shall include, as of 
the date of such report, the following:
            (A) A list and description of the workforce skills 
        and capabilities that are essential to carry out 
        underground nuclear tests at the Nevada Test Site.
            (B) A list and description of the infrastructure 
        and physical plant that are essential to carry out 
        underground nuclear tests at the Nevada Test Site.
            (C) A description of the readiness status of the 
        skills and capabilities described in subparagraph (A) 
        and of the infrastructure and physical plant described 
        in subparagraph (B).
    (3) Each report under paragraph (1) shall be submitted in 
unclassified form, but may include a classified annex.

SEC. [3143.] 4209. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR 
                    MODIFIED NUCLEAR WEAPONS.

    (a) Requirement for Request for Funds for Development.--(1) 
In any fiscal year after fiscal year 2002 in which the 
Secretary of Energy plans to carry out activities described in 
paragraph (2) relating to the development of a new nuclear 
weapon or modified nuclear weapon, the Secretary shall 
specifically request funds for such activities in the budget of 
the President for that fiscal year under section 1105(a) of 
title 31, United States Code.

           *       *       *       *       *       *       *

SEC. 4210. LIMITATION ON UNDERGROUND NUCLEAR WEAPONS TESTS.

    No underground test of nuclear weapons may be conducted by 
the United States after September 30, 1996, unless a foreign 
state conducts a nuclear test after this date, at which time 
the prohibition on United States nuclear testing is lifted.

SEC. 4211. TESTING OF NUCLEAR WEAPONS.

    (a) In General.--Of the funds authorized to be appropriated 
under section 3101(a)(2) of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103-160) for the 
Department of Energy for fiscal year 1994 for weapons testing, 
$211,326,000 shall be available for infrastructure maintenance 
at the Nevada Test Site, and for maintaining the technical 
capability to resume underground nuclear testing at the Nevada 
Test Site.
    (b) Atmospheric Testing of Nuclear Weapons.--None of the 
funds appropriated pursuant to the National Defense 
Authorization Act for Fiscal Year 1994 or any other Act for any 
fiscal year may be available to maintain the capability of the 
United States to conduct atmospheric testing of a nuclear 
weapon.

SEC. 4212. MANUFACTURING INFRASTRUCTURE FOR REFABRICATION AND 
                    CERTIFICATION OF NUCLEAR WEAPONS STOCKPILE.

    (a) Manufacturing Program.--(1) The Secretary of Energy 
shall carry out a program for purposes of establishing within 
the Government a manufacturing infrastructure that has the 
capabilities of meeting the following objectives as specified 
in the Nuclear Posture Review:
            (A) To provide a stockpile surveillance engineering 
        base.
            (B) To refabricate and certify weapon components 
        and types in the enduring nuclear weapons stockpile, as 
        necessary.
            (C) To fabricate and certify new nuclear warheads, 
        as necessary.
            (D) To support nuclear weapons.
            (E) To supply sufficient tritium in support of 
        nuclear weapons to ensure an upload hedge in the event 
        circumstances require.
    (2) The purpose of the program carried out under paragraph 
(1) shall also be to develop manufacturing capabilities and 
capacities necessary to meet the requirements specified in the 
annual Nuclear Weapons Stockpile Review.
    (b) Required Capabilities.--The manufacturing 
infrastructure established under the program under subsection 
(a) shall include the following capabilities (modernized to 
attain the objectives referred to in that subsection):
            (1) The weapons assembly capabilities of the Pantex 
        Plant.
            (2) The weapon secondary fabrication capabilities 
        of the Y-12 Plant, Oak Ridge, Tennessee.
            (3) The capabilities of the Savannah River Site 
        relating to tritium recycling and fissile materials 
        components processing and fabrication.
            (4) The non-nuclear component capabilities of the 
        Kansas City Plant.
    (c) Nuclear Posture Review.--For purposes of subsection 
(a), the term ``Nuclear Posture Review'' means the Department 
of Defense Nuclear Posture Review as contained in the Report of 
the Secretary of Defense to the President and the Congress 
dated February 19, 1995, or subsequent such reports.
    (d) Funding.--Of the funds authorized to be appropriated 
under section 3101(b) of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106), $143,000,000 shall 
be available for carrying out the program required under this 
section, of which--
            (1) $35,000,000 shall be available for activities 
        at the Pantex Plant;
            (2) $30,000,000 shall be available for activities 
        at the Y-12 Plant, Oak Ridge, Tennessee;
            (3) $35,000,000 shall be available for activities 
        at the Savannah River Site; and
            (4) $43,000,000 shall be available for activities 
        at the Kansas City Plant.
    (e) Plan and Report.--The Secretary shall develop a plan 
for the implementation of this section. Not later than March 1, 
1996, the Secretary shall submit to Congress a report on the 
obligations the Secretary has incurred, and plans to incur, 
during fiscal year 1996 for the program referred to in 
subsection (a).

SEC. 4213. REPORTS ON CRITICAL DIFFICULTIES AT NUCLEAR 
                    WEAPONS LABORATORIES AND NUCLEAR WEAPONS PRODUCTION 
                    PLANTS.

    (a) Reports by Heads of Laboratories and Plants.--In the 
event of a difficulty at a nuclear weapons laboratory or a 
nuclear weapons production plant that has a significant bearing 
on confidence in the safety or reliability of a nuclear weapon 
or nuclear weapon type, the head of the laboratory or plant, as 
the case may be, shall submit to the Assistant Secretary of 
Energy for Defense Programs a report on the difficulty. The 
head of the laboratory or plant shall submit the report as soon 
as practicable after discovery of the difficulty.
    (b) Transmittal by Assistant Secretary.--As soon as 
practicable after receipt of a report under subsection (a), the 
Assistant Secretary shall transmit the report (together with 
the comments of the Assistant Secretary) to the congressional 
defense committees, to the Secretary of Energy and the 
Secretary of Defense, and to the President.
    (c) Reports by Nuclear Weapons Council.--Section 179 of 
title 10, United States Code, is amended--
            (1) by redesignating subsection (e) as subsection 
        (f); and
            (2) by inserting after subsection (d) the following 
        new subsection (e):
    ``(e) In addition to the responsibilities set forth in 
subsection (d), the Council shall also submit to Congress a 
report on any analysis conducted by the Council with respect to 
difficulties at nuclear weapons laboratories or nuclear weapons 
production plants that have significant bearing on confidence 
in the safety or reliability of nuclear weapons or nuclear 
weapon types.''.
    (d) Inclusion of Reports in Annual Stockpile 
Certification.--Any report submitted pursuant to subsection (a) 
shall also be included with the decision documents that 
accompany the annual certification of the safety and 
reliability of the United States nuclear weapons stockpile 
which is provided to the President for the year in which such 
report is submitted.
    (e) Definitions.--In this section:
            (1) The term ``nuclear weapons laboratory'' means 
        the 
        following:
                    (A) Lawrence Livermore National Laboratory, 

                California.
                    (B) Los Alamos National Laboratory, New 
                Mexico.
                    (C) Sandia National Laboratories.
            (2) The term ``nuclear weapons production plant'' 
        means the following:
                    (A) The Pantex Plant, Texas.
                    (B) The Savannah River Site, South 
                Carolina.
                    (C) The Kansas City Plant, Missouri.
                    (D) The Y-12 Plant, Oak Ridge, Tennessee.

                          Subtitle B--Tritium

SEC. 4231. TRITIUM PRODUCTION PROGRAM.

    (a) Establishment of Program.--The Secretary of Energy 
shall establish a tritium production program that is capable of 
meeting the tritium requirements of the United States for 
nuclear weapons. In carrying out the tritium production 
program, the Secretary shall--
            (1) complete the tritium supply and recycling 
        environmental impact statement in preparation by the 
        Secretary as of February 10, 1996; and
            (2) assess alternative means for tritium 
        production, including production through--
                    (A) types of new and existing reactors, 
                including multipurpose reactors (such as 
                advanced light water reactors and gas turbine 
                gas-cooled reactors) capable of meeting both 
                the tritium production requirements and the 
                plutonium disposition requirements of the 
                United States for nuclear weapons;
                    (B) an accelerator; and
                    (C) multipurpose reactor projects carried 
                out by the private sector and the Government.
    (b) Funding.--Of funds authorized to be appropriated to the 
Department of Energy pursuant to section 3101 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106), not more than $50,000,000 shall be available for the 
tritium production program established pursuant to subsection 
(a).
    (c) Location of Tritium Production Facility.--The Secretary 
shall locate any new tritium production facility of the 
Department of Energy at the Savannah River Site, South 
Carolina.
    (d) Cost-Benefit Analysis.--(1) The Secretary shall include 
in the statements referred to in paragraph (2) a comparison of 
the costs and benefits of carrying out two projects for the 
separate performance of the tritium production mission of the 
Department and the plutonium disposition mission of the 
Department with the costs and benefits of carrying out one 
multipurpose project for the performance of both such missions.
    (2) The statements referred to in paragraph (1) are--
            (A) the environmental impact statement referred to 
        in subsection (a)(1);
            (B) the plutonium disposition environmental impact 
        statement in preparation by the Secretary as of 
        February 10, 1996; and
            (C) assessments related to the environmental impact 
        statements referred to in subparagraphs (A) and (B).
    (e) Report.--Not later than 45 days after February 10, 
1996, the Secretary shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the tritium 
production program established pursuant to subsection (a). The 
report shall include a specification of--
            (1) the planned expenditures of the Department 
        during fiscal year 1996 for any of the alternative 
        means for tritium production assessed under subsection 
        (a)(2);
            (2) the amount of funds required to be expended by 
        the Department, and the program milestones (including 
        feasibility demonstrations) required to be met, during 
        fiscal years 1997 through 2001 to ensure tritium 
        production beginning not later than 2005 that is 
        adequate to meet the tritium requirements of the United 
        States for nuclear weapons; and
            (3) the amount of such funds to be expended and 
        such program milestones to be met during such fiscal 
        years to ensure such tritium production beginning not 
        later than 2011.
    (f) Tritium Targets.--Of the funds made available pursuant 
to subsection (b), not more than $5,000,000 shall be available 
for the Idaho National Engineering Laboratory for the test and 
development of nuclear reactor tritium targets for the types of 
reactors assessed under subsection (a)(2)(A).

SEC. 4232. TRITIUM RECYCLING.

    (a) In General.--Except as provided in subsection (b), the 
following activities shall be carried out at the Savannah River 
Site, South Carolina:
            (1) All tritium recycling for weapons, including 
        tritium refitting.
            (2) All activities regarding tritium formerly 
        carried out at the Mound Plant, Ohio.
    (b) Exception.--The following activities may be carried out 
at the Los Alamos National Laboratory, New Mexico:
            (1) Research on tritium.
            (2) Work on tritium in support of the defense 
        inertial confinement fusion program.
            (3) Provision of technical assistance to the 
        Savannah River Site regarding the weapons surveillance 
        program.

SEC. 4233. TRITIUM PRODUCTION.

    (a) New Tritium Production Facility.--The Secretary of 
Energy shall commence planning and design activities and 
infrastructure development for a new tritium production 
facility.
    (b) In-Reactor Tests.--The Secretary may perform in-reactor 
tests of tritium target rods as part of the activities carried 
out under the commercial light water reactor program.

SEC. 4234. MODERNIZATION AND CONSOLIDATION OF TRITIUM RECYCLING 
                    FACILITIES.

    (a) In General.--The Secretary of Energy shall carry out 
activities at the Savannah River Site, South Carolina, to--
            (1) modernize and consolidate the facilities for 
        recycling tritium from weapons; and
            (2) provide a modern tritium extraction facility so 
        as to ensure that such facilities have a capacity to 
        recycle tritium from weapons that is adequate to meet 
        the requirements for tritium for weapons specified in 
        the Nuclear Weapons Stockpile Memorandum.
    (b) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy pursuant to section 3101 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201), not more than $9,000,000 shall be available for 
activities under subsection (a).

SEC. 4235. PROCEDURES FOR MEETING TRITIUM PRODUCTION REQUIREMENTS.

    (a) Production of New Tritium.--The Secretary of Energy 
shall produce new tritium to meet the requirements of the 
Nuclear Weapons Stockpile Memorandum at the Tennessee Valley 
Authority Watts Bar or Sequoyah nuclear power plants consistent 
with the Secretary's December 22, 1998, decision document 
designating the Secretary's preferred tritium production 
technology.
    (b) Support.--To support the method of tritium production 
set forth in subsection (a), the Secretary shall design and 
construct a new tritium extraction facility in the H-Area of 
the Savannah River Site, Aiken, South Carolina.
    (c) Design and Engineering Development.--The Secretary 
shall--
            (1) complete preliminary design and engineering 
        development of the Accelerator Production of Tritium 
        technology design as a backup source of tritium to the 
        source set forth in subsection (a) and consistent with 
        the Secretary's December 22, 1998, decision document; 
        and
            (2) make available those funds necessary to 
        complete engineering development and demonstration, 
        preliminary design, and detailed design of key elements 
        of the system consistent with the Secretary's decision 
        document of December 22, 1998.

                   TITLE XLIII--PROLIFERATION MATTERS

SEC. 4301. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

    (a) Funding Prohibition.--No funds authorized to be 
appropriated or otherwise available to the Department of Energy 
for any fiscal year may be obligated or expended to conduct any 
activities associated with international cooperative stockpile 
stewardship.
    (b) Exceptions.--Subsection (a) does not apply to the 
following:
            (1) Activities conducted between the United States 
        and the United Kingdom.
            (2) Activities conducted between the United States 
        and France.
            (3) Activities carried out under title XIV of the 
        National Defense Authorization Act for Fiscal Year 1998 
        (Public Law 105-85) relating to cooperative threat 
        reduction with states of the former Soviet Union.

SEC. 4302. NONPROLIFERATION INITIATIVES AND ACTIVITIES.

    (a) Initiative for Proliferation Prevention Program.--(1) 
Not more than 35 percent of the funds available in any fiscal 
year after fiscal year 1999 for the Initiatives for 
Proliferation Prevention program (IPP) may be obligated or 
expended by the Department of Energy national laboratories to 
carry out or provide oversight of any activities under that 
program.
    (2)(A) None of the funds available in any fiscal year after 
fiscal year 1999 for the Initiatives for Proliferation 
Prevention program may be used to increase or otherwise 
supplement the pay or benefits of a scientist or engineer if 
the scientist or engineer--
            (i) is currently engaged in activities directly 
        related to the design, development, production, or 
        testing of chemical or biological weapons or a missile 
        system to deliver such weapons; or
            (ii) was not formerly engaged in activities 
        directly related to the design, development, 
        production, or testing of weapons of mass destruction 
        or a missile system to deliver such weapons.
    (B) None of the funds available in any fiscal year after 
fiscal year 1999 for the Initiatives for Proliferation 
Prevention program may be made available to an institute if the 
institute--
            (i) is currently involved in activities described 
        in subparagraph (A)(i); or
            (ii) was not formerly involved in activities 
        described in subparagraph (A)(ii).
    (3)(A) No funds available for the Initiatives for 
Proliferation Prevention program may be provided to an 
institute or scientist under the program if the Secretary of 
Energy determines that the institute or scientist has made a 
scientific or business contact in any way associated with or 
related to weapons of mass destruction with a representative of 
a country of proliferation concern.
    (B) For purposes of this paragraph, the term ``country of 
proliferation concern'' means any country so designated by the 
Director of Central Intelligence for purposes of the 
Initiatives for Proliferation Prevention program.
    (4)(A) The Secretary of Energy shall prescribe procedures 
for the review of projects under the Initiatives for 
Proliferation Prevention program. The purpose of the review 
shall be to ensure the following:
            (i) That the military applications of such 
        projects, and any information relating to such 
        applications, is not inadvertently transferred or 
        utilized for military purposes.
            (ii) That activities under the projects are not 
        redirected toward work relating to weapons of mass 
        destruction.
            (iii) That the national security interests of the 
        United States are otherwise fully considered before the 
        commencement of the projects.
    (B) Not later than 30 days after the date on which the 
Secretary prescribes the procedures required by subparagraph 
(A), the Secretary shall submit to Congress a report on the 
procedures. The report shall set forth a schedule for the 
implementation of the procedures.
    (5)(A) The Secretary shall evaluate the projects carried 
out under the Initiatives for Proliferation Prevention program 
for commercial purposes to determine whether or not such 
projects are likely to achieve their intended commercial 
objectives.
    (B) If the Secretary determines as a result of the 
evaluation that a project is not likely to achieve its intended 
commercial objective, the Secretary shall terminate the 
project.
    (6) Funds appropriated for the Initiatives for 
Proliferation Prevention program may not be used to pay any tax 
or customs duty levied by the government of the Russian 
Federation. In the event payment of such a tax or customs duty 
with such funds is unavoidable, the Secretary of Energy shall--
            (A) after such payment, submit a report to the 
        congressional defense committees explaining the 
        particular circumstances making such payment under the 
        Initiatives for Proliferation Prevention program with 
        such funds unavoidable; and
            (B) ensure that sufficient additional funds are 
        provided to the Initiatives for Proliferation 
        Prevention Program to offset the amount of such 
        payment.
    (b) Nuclear Cities Initiative.--(1) No amounts authorized 
to be appropriated by title XXXI of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) for 
the Nuclear Cities Initiative may be obligated or expended for 
purposes of the initiative until the Secretary of Energy 
certifies to Congress that Russia has agreed to close some of 
its facilities engaged in work on weapons of mass destruction.
    (2) Notwithstanding a certification under paragraph (1), 
amounts authorized to be appropriated by this title for the 
Nuclear Cities Initiative may not be obligated or expended for 
purposes of providing assistance under the initiative to more 
than three nuclear cities, and more than two serial production 
facilities, in Russia in fiscal year 2000.
    (3)(A) The Secretary shall conduct a study of the potential 
economic effects of each commercial program proposed under the 
Nuclear Cities Initiative before providing assistance for the 
conduct of the program. The study shall include an assessment 
regarding whether or not the mechanisms for job creation under 
each program are likely to lead to the creation of the jobs 
intended to be created by that program.
    (B) If the Secretary determines as a result of the study 
that the intended commercial benefits of a program are not 
likely to be achieved, the Secretary may not provide assistance 
for the conduct of that program.
    (4) Not later than January 1, 2000, the Secretary shall 
submit to Congress a report describing the participation in or 
contribution to the Nuclear Cities Initiative of each 
department and agency of the United States Government that 
participates in or contributes to the initiative. The report 
shall describe separately any interagency participation in or 
contribution to the initiative.
    (c) Report.--(1) Not later than January 1, 2000, the 
Secretary of Energy 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 Initiatives for 
Proliferation Prevention program and the Nuclear Cities 
Initiative.
    (2) The report shall include the following:
            (A) A strategic plan for the Initiatives for 
        Proliferation Prevention program and for the Nuclear 
        Cities Initiative, which shall establish objectives for 
        the program or initiative, as the case may be, and 
        means for measuring the achievement of such objectives.
            (B) A list of the most successful projects under 
        the Initiatives for Proliferation Prevention program, 
        including for each such project the name of the 
        institute and scientists who are participating or have 
        participated in the project, the number of jobs created 
        through the project, and the manner in which the 
        project has met the nonproliferation objectives of the 
        United States.
            (C) A list of the institutes and scientists 
        associated with weapons of mass destruction programs or 
        other defense-related programs in the states of the 
        former Soviet Union that the Department seeks to engage 
        in commercial work under the Initiatives for 
        Proliferation Prevention program or the Nuclear Cities 
        Initiative, including--
                    (i) a description of the work performed by 
                such institutes and scientists under such 
                weapons of mass destruction programs or other 
                defense-related programs; and
                    (ii) a description of any work proposed to 
                be performed by such institutes and scientists 
                under the Initiatives for Proliferation 
                Prevention program or the Nuclear Cities 
                Initiative.
    (d) Nuclear Cities Initiative Defined.--For purposes of 
this section, the term ``Nuclear Cities Initiative'' means the 
initiative arising pursuant to the March 1998 discussions 
between the Vice President of the United States and the Prime 
Minister of the Russian Federation and between the Secretary of 
Energy of the United States and the Minister of Atomic Energy 
of the Russian Federation.

SEC. 4303. ANNUAL REPORT ON STATUS OF NUCLEAR MATERIALS PROTECTION, 
                    CONTROL, AND ACCOUNTING PROGRAM.

    (a) Report Required.--Not later than January 1 of each 
year, the Secretary of Energy 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 status 
of efforts during the preceding fiscal year under the Nuclear 
Materials Protection, Control, and Accounting Program of the 
Department of Energy to secure weapons-usable nuclear materials 
in Russia that have been identified as being at risk for theft 
or diversion.
    (b) Contents.--Each report under subsection (a) shall 
include the following:
            (1) The number of buildings, including building 
        locations, that received complete and integrated 
        materials protection, control, and accounting systems 
        for nuclear materials described in subsection (a) 
        during the year covered by such report.
            (2) The amounts of highly enriched uranium and 
        plutonium in Russia that have been secured under 
        systems described in paragraph (1) as of the date of 
        such report.
            (3) The amount of nuclear materials described in 
        subsection (a) that continues to require securing under 
        systems described in paragraph (1) as of the date of 
        such report.
            (4) A plan for actions to secure the nuclear 
        materials identified in paragraph (3) under systems 
        described in paragraph (1), including an estimate of 
        the cost of such actions.
            (5) The amounts expended through the fiscal year 
        preceding the date of such report to secure nuclear 
        materials described in subsection (a) under systems 
        described in paragraph (1), set forth by total amount 
        and by amount per fiscal year.
    (c) Limitation on Use of Certain Funds.--(1) No amounts 
authorized to be appropriated for the Department of Energy by 
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 for purposes of the Nuclear Materials Protection, 
Control, and Accounting Program may be obligated or expended 
after September 30, 2000, for any project under the program at 
a site controlled by the Russian Ministry of Atomic Energy 
(MINATOM) in Russia until the Secretary submits to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the 
access policy established with respect to such project, 
including a certification that the access policy has been 
implemented.
    (2) The access policy with respect to a project under this 
subsection shall--
            (A) permit appropriate determinations by United 
        States officials regarding security requirements, 
        including security upgrades, for the project; and
            (B) ensure verification by United States officials 
        that Department of Energy assistance at the project is 
        being used for the purposes intended.

SEC. 4304. NUCLEAR CITIES INITIATIVE.

    (a) In General.--(1) The Secretary of Energy may, in 
accordance with the provisions of this section, expand and 
enhance the activities of the Department of Energy under the 
Nuclear Cities Initiative.
    (2) In this section, the term ``Nuclear Cities Initiative'' 
means the initiative arising pursuant to the joint statement 
dated July 24, 1998, signed by the Vice President of the United 
States and the Prime Minister of the Russian Federation and the 
agreement dated September 22, 1998, between the United States 
and the Russian Federation.
    (b) Funding for Fiscal Year 2001.--There is hereby 
authorized to be appropriated for the Department of Energy for 
fiscal year 2001 $30,000,000 for purposes of the Nuclear Cities 
Initiative.
    (c) Limitation Pending Submission of Agreement.--No amount 
authorized to be appropriated or otherwise made available for 
the Department of Energy for fiscal year 2001 for the Nuclear 
Cities Initiative may be obligated or expended to provide 
assistance under the Initiative for more than three nuclear 
cities in Russia and two serial production facilities in Russia 
until 30 days after the date on which the Secretary of Energy 
submits to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Representatives 
a copy of a written agreement between the United States 
Government and the Government of the Russian Federation which 
provides that Russia will close some of its facilities engaged 
in nuclear weapons assembly and disassembly work.
    (d) Limitation Pending Implementation of Project Review 
Procedures.--(1) Not more than $8,750,000 of the amounts 
referred to in subsection (b) may be obligated or expended for 
purposes of the Initiative until the Secretary of Energy 
establishes and implements project review procedures for 
projects under the Initiative and submits to the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the 
project review procedures so established and implemented.
    (2) The project review procedures established under 
paragraph (1) shall ensure that any scientific, technical, or 
commercial project initiated under the Initiative--
            (A) will not enhance the military or weapons of 
        mass destruction capabilities of Russia;
            (B) will not result in the inadvertent transfer or 
        utilization of products or activities under such 
        project for military purposes;
            (C) will be commercially viable; and
            (D) will be carried out in conjunction with an 
        appropriate commercial, industrial, or nonprofit entity 
        as partner.
    (e) Limitation Pending Certification and Report.--No amount 
in excess of $17,500,000 authorized to be appropriated for the 
Department of Energy for fiscal year 2001 for the Nuclear 
Cities Initiative may be obligated or expended for purposes of 
providing assistance under the Initiative until 30 days after 
the date on which the Secretary of Energy submits to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives the following:
            (1) A copy of the written agreement between the 
        United States and the Russian Federation which provides 
        that Russia will close some of its facilities engaged 
        in nuclear weapons assembly and disassembly work within 
        five years of the date of the agreement in exchange for 
        receiving assistance through the Initiative.
            (2) A certification by the Secretary--
                    (A) that project review procedures for all 
                projects under the Initiative have been 
                established and are being implemented; and
                    (B) that those procedures will ensure that 
                any scientific, technical, or commercial 
                project initiated under the Initiative--
                            (i) will not enhance the military 
                        or weapons of mass destruction 
                        capabilities of Russia;
                            (ii) will not result in the 
                        inadvertent transfer or utilization of 
                        products or activities under such 
                        project for military purposes;
                            (iii) will be commercially viable 
                        within three years after the date of 
                        the initiation of the project; and
                            (iv) will be carried out in 
                        conjunction with an appropriate 
                        commercial, industrial, or other 
                        nonprofit entity as partner.
            (3) A report setting forth the following:
                    (A) A description of the project review 
                procedures process.
                    (B) A list of the projects under the 
                Initiative that have been reviewed under such 
                project review procedures.
                    (C) A description for each project listed 
                under subparagraph (B) of the purpose, expected 
                life-cycle costs, out-year budget costs, 
                participants, commercial viability, expected 
                time for income generation, and number of 
                Russian jobs created.
    (f ) Plan for Restructuring the Russian Nuclear Complex.--
(1) The President, acting through the Secretary of Energy, is 
urged to enter into discussions with the Russian Federation for 
purposes of the development by the Russian Federation of a plan 
to restructure the Russian nuclear complex in order to meet 
changes in the national security requirements of Russia by 
2010.
    (2) The plan under paragraph (1) should include the 
following:
            (A) Mechanisms to consolidate the nuclear weapons 
        production capacity in Russia to a capacity that is 
        consistent with the obligations of Russia under current 
        and future arms control agreements.
            (B) Mechanisms to increase transparency regarding 
        the restructuring of the Russian nuclear complex and 
        weapons-surplus nuclear materials inventories in Russia 
        to the levels of transparency for such matters in the 
        United States, including the participation of 
        Department of Energy officials with expertise in 
        transparency of such matters.
            (C) Measurable milestones that will permit the 
        United States and the Russian Federation to monitor 
        progress under the plan.
    (g) Encouragement of Careers in Nonproliferation.--(1) In 
carrying out actions under this section, the Secretary of 
Energy may carry out a program to encourage students in the 
United States and in the Russian Federation to pursue careers 
in areas relating to nonproliferation.
    (2) Of the amounts made available under the Initiative for 
fiscal year 2001 in excess of $17,500,000, up to $2,000,000 
shall be available for purposes of the program under paragraph 
(1).
    (3) The Administrator for Nuclear Security shall notify the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives before any funds 
are expended pursuant to paragraph (2). Any such notification 
shall include--
            (A) an identification of the amount to be expended 
        under paragraph (2) during fiscal year 2001;
            (B) the recipients of the funds; and
            (C) specific information on the activities that 
        will be conducted using those funds.
    (h) Definitions.--In this section:
            (1) The term ``nuclear city'' means any of the 
        closed nuclear cities within the complex of the Russian 
        Ministry of Atomic Energy as follows:
                    (A) Sarov (Arzamas-16).
                    (B) Zarechnyy (Penza-19).
                    (C) Novoural'sk (Sverdlovsk-44).
                    (D) Lesnoy (Sverdlovsk-45).
                    (E) Ozersk (Chelyabinsk-65).
                    (F) Snezhinsk (Chelyabinsk-70).
                    (G) Trechgornyy (Zlatoust-36).
                    (H) Seversk (Tomsk-7).
                    (I) Zheleznogorsk (Krasnoyarsk-26).
                    (J) Zelenogorsk (Krasnoyarsk-45).
            (2) The term ``Russian nuclear complex'' means all 
        of the nuclear cities.
            (3) The term ``serial production facilities'' means 
        the facilities in Russia that are located at the 
        following cities:
                    (A) Avangard.
                    (B) Lesnoy (Sverdlovsk-45).
                    (C) Trechgornyy (Zlatoust-36).
                    (D) Zarechnyy (Penza-19).

SEC. 4305. AUTHORITY TO CONDUCT PROGRAM RELATING TO FISSILE MATERIALS.

    The Secretary of Energy may conduct programs designed to 
improve the protection, control, and accountability of fissile 
materials in Russia.

   TITLE XLIV--ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MATTERS

       Subtitle A--Environmental Restoration and Waste Management

SEC. 4401. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT 
                    ACCOUNT.

    (a) Establishment.--There is hereby established in the 
Treasury of the United States for the Department of Energy an 
account to be known as the ``Defense Environmental Restoration 
and Waste Management Account'' (hereafter in this section 
referred to as the ``Account'').
    (b) Amounts in Account.--All sums appropriated to the 
Department of Energy for environmental restoration and waste 
management at defense nuclear facilities shall be credited to 
the Account. Such appropriations shall be authorized annually 
by law. To the extent provided in appropriations Acts, amounts 
in the Account shall remain available until expended.

SEC. 4402. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR ENVIRONMENTAL 
                    MANAGEMENT PROGRAM.

    (a) Authority To Develop Future Use Plans.--The Secretary 
of Energy may develop future use plans for any defense nuclear 
facility at which environmental restoration and waste 
management activities are occurring.
    (b) Requirement To Develop Future Use Plans.--The Secretary 
shall develop a future use plan for each of the following 
defense nuclear facilities:
            (1) Hanford Site, Richland, Washington.
            (2) Rocky Flats Plant, Golden, Colorado.
            (3) Savannah River Site, Aiken, South Carolina.
            (4) Idaho National Engineering Laboratory, Idaho.
    (c) Citizen Advisory Board.--(1) At each defense nuclear 
facility for which the Secretary of Energy intends or is 
required to develop a future use plan under this section and 
for which no citizen advisory board has been established, the 
Secretary shall establish a citizen advisory board.
    (2) The Secretary may authorize the manager of a defense 
nuclear facility for which a future use plan is developed under 
this section (or, if there is no such manager, an appropriate 
official of the Department of Energy designated by the 
Secretary) to pay routine administrative expenses of a citizen 
advisory board established for that facility. Such payments 
shall be made from funds available to the Secretary for program 
direction in carrying out environmental restoration and waste 
management activities necessary for national security programs.
    (d) Requirement To Consult With Citizen Advisory Board.--In 
developing a future use plan under this section with respect to 
a defense nuclear facility, the Secretary of Energy shall 
consult with a citizen advisory board established pursuant to 
subsection (c) or a similar advisory board already in existence 
as of September 23, 1996, for such facility, affected local 
governments (including any local future use redevelopment 
authorities), and other appropriate State agencies.
    (e) 50-Year Planning Period.--A future use plan developed 
under this section shall cover a period of at least 50 years.
    (f) Deadlines.--For each facility listed in subsection (b), 
the Secretary of Energy shall develop a draft future use plan 
by October 1, 1997, and a final future use plan by March 15, 
1998.
    (g) Report.--Not later than 60 days after completing 
development of a final plan for a site listed in subsection 
(b), the Secretary of Energy shall submit to Congress a report 
on the plan. The report shall describe the plan and contain 
such findings and recommendations with respect to the site as 
the Secretary considers appropriate.
    (h)  Savings Provisions.--(1) Nothing in this section, or 
in a future use plan developed under this section with respect 
to a defense nuclear facility, shall be construed as requiring 
any modification to a future use plan with respect to a defense 
nuclear facility that was developed before September 23, 1996.
    (2) Nothing in this section may be construed to affect 
statutory requirements for an environmental restoration or 
waste management activity or project or to modify or otherwise 
affect applicable statutory or regulatory environmental 
restoration and waste management requirements, including 
substantive standards intended to protect public health and the 
environment, nor shall anything in this section be construed to 
preempt or impair any local land use planning or zoning 
authority or State authority.

SEC. 4403. INTEGRATED FISSILE MATERIALS MANAGEMENT PLAN.

    (a) Plan.--The Secretary of Energy shall develop a long-
term plan for the integrated management of fissile materials by 
the Department of Energy. The plan shall--
            (1) identify means of coordinating or integrating 
        the responsibilities of the Office of Environmental 
        Management, the Office of Fissile Materials 
        Disposition, the Office of Nuclear Energy, and the 
        Office of Defense Programs for the treatment, storage 
        and disposition of fissile materials, and for the waste 
        streams containing fissile materials, in order to 
        achieve budgetary and other efficiencies in the 
        discharge of those responsibilities; and
            (2) identify any expenditures necessary at the 
        sites that are anticipated to have an enduring mission 
        for plutonium management in order to achieve the 
        integrated management of fissile materials by the 
        Department.
    (b) Submittal to Congress.--The Secretary shall submit the 
plan required by subsection (a) to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives not later than March 31, 2000.

SEC. 4404. BASELINE ENVIRONMENTAL MANAGEMENT REPORTS.

    (a) Annual Environmental Restoration Reports.--(1) The 
Secretary of Energy shall (in the years and at the times 
specified in paragraph (2)) submit to the Congress a report on 
the activities and projects necessary to carry out the 
environmental restoration of all Department of Energy defense 
nuclear facilities.
    (2) Reports under paragraph (1) shall be submitted as 
follows:
            (A) The initial report shall be submitted not later 
        than March 1, 1995.
            (B) A report after the initial report shall be 
        submitted in each year after 1995 during which the 
        Secretary of Energy conducts, or plans to conduct, 
        environmental restoration activities and projects, not 
        later than 30 days after the date on which the 
        President submits to the Congress the budget for the 
        fiscal year beginning in that year.
    (b) Biennial Waste Management Reports.--(1) The Secretary 
of Energy shall (in the years and at the times specified in 
paragraph (2)) submit to the Congress a report on all 
activities and projects for waste management, including 
pollution prevention and transition of operational facilities 
to safe shutdown status, that are necessary for Department of 
Energy defense nuclear facilities.
    (2) Reports required under paragraph (1) shall be submitted 
as follows:
            (A) The initial report shall be submitted not later 
        than June 1, 1995.
            (B) A report after the initial report shall be 
        submitted in each odd-numbered year after 1997, not 
        later than 30 days after the date on which the 
        President submits to the Congress the budget for the 
        fiscal year beginning in that year.
    (c) Contents of Reports.--A report required under 
subsection (a) or (b) shall be based on compliance with all 
applicable provisions of law, permits, regulations, orders, and 
agreements, and shall--
            (1) provide the estimated total cost of, and the 
        complete schedule for, the activities and projects 
        covered by the report; and
            (2) with respect to each such activity and project, 
        contain--
                    (A) a description of the activity or 
                project;
                    (B) a description of the problem addressed 
                by the activity or project;
                    (C) the proposed remediation of the 
                problem, if the remediation is known or 
                decided;
                    (D) the estimated cost to complete the 
                activity or project, including, where 
                appropriate, the cost for every five-year 
                increment; and
                    (E) the estimated date for completion of 
                the activity or project, including, where 
                appropriate, progress milestones for every 
                five-year increment.
    (d) Biennial Status and Variance Reports.--(1)(A) The 
Secretary of Energy shall (in the years and at the time 
specified in subparagraph (B)) submit to the Congress a status 
and variance report on environmental restoration and waste 
management activities and projects at Department of Energy 
defense nuclear facilities.
    (B) A report under subparagraph (A) shall be submitted in 
1995 and in each odd-numbered year thereafter during which the 
Secretary of Energy conducts environmental restoration and 
waste management activities, not later than 30 days after the 
date on which the President submits to the Congress the budget 
for the fiscal year beginning in that year.
    (2) Each status and variance report under paragraph (1) 
shall contain the following:
            (A) Information on each such activity and project 
        for which funds were appropriated for the two fiscal 
        years immediately before the fiscal year during which 
        the report is submitted, including the following:
                    (i) Information on whether or not the 
                activity or project has been completed, and 
                information on the estimated date of completion 
                for activities or projects that have not been 
                completed.
                    (ii) The total amount of funds expended for 
                the activity or project during such prior 
                fiscal years, including the amount of funds 
                expended from amounts made available as the 
                result of supplemental appropriations or a 
                transfer of funds, and an estimate of the total 
                amount of funds required to complete the 
                activity or project.
                    (iii) Information on whether the President 
                requested an amount of funds for the activity 
                or project in the budget for the fiscal year 
                during which the report is submitted, and 
                whether such funds were appropriated or 
                transferred.
                    (iv) An explanation of the reasons for any 
                projected cost variance between actual and 
                estimated expenditures of more than 15 percent 
                or $10,000,000, or any schedule delay of more 
                than six months, for the activity or project.
            (B) For the fiscal year during which the report is 
        submitted, a disaggregation of the funds appropriated 
        for Department of Energy defense environmental 
        restoration and waste management into the activities 
        and projects (including discrete parts of multiyear 
        activities and projects) that the Secretary of Energy 
        expects to accomplish during that fiscal year.
            (C) For the fiscal year for which the budget is 
        submitted, a disaggregation of the Department of Energy 
        defense environmental restoration and waste management 
        budget request into the activities and projects 
        (including discrete parts of multiyear activities and 
        projects) that the Secretary of Energy expects to 
        accomplish during that fiscal year.
    (e) Compliance Tracking.--In preparing a report under this 
section, the Secretary of Energy shall provide, with respect to 
each activity and project identified in the report, information 
which is sufficient to track the Department of Energy's 
compliance with relevant Federal and State regulatory 
milestones.

SEC. 4405. ACCELERATED SCHEDULE FOR ENVIRONMENTAL RESTORATION AND WASTE 
                    MANAGEMENT ACTIVITIES.

    (a) Accelerated Cleanup.--The Secretary of Energy shall 
accelerate the schedule for environmental restoration and waste 
management activities and projects for a site at a Department 
of Energy defense nuclear facility if the Secretary determines 
that such an accelerated schedule will achieve meaningful, 
long-term cost savings to the Federal Government and could 
substantially accelerate the release of land for local reuse.
    (b) Consideration of Factors.--In making a determination 
under subsection (a), the Secretary shall consider the 
following:
            (1) The cost savings achievable by the Federal 
        Government.
            (2) The amount of time for completion of 
        environmental restoration and waste management 
        activities and projects at the site that can be reduced 
        from the time specified for completion of such 
        activities and projects in the baseline environmental 
        management report required to be submitted for 1995 
        under section 3153 of the National Defense 
        Authorization Act for Fiscal Year 1994 (42 U.S.C. 
        7274k), the predecessor provision to section 4404 of 
        this Act.
            (3) The potential for reuse of the site.
            (4) The risks that the site poses to local health 
        and safety.
            (5) The proximity of the site to populated areas.
    (c) Report.--Not later than May 1, 1996, the Secretary 
shall submit to Congress a report on each site for which the 
Secretary has accelerated the schedule for environmental 
restoration and waste management activities and projects under 
subsection (a). The report shall include an explanation of the 
basis for the determination for that site required by such 
subsection, including an explanation of the consideration of 
the factors described in subsection (b).
    (d) Savings Provision.--Nothing in this section may be 
construed to affect a specific statutory requirement for a 
specific environmental restoration or waste management activity 
or project or to modify or otherwise affect applicable 
statutory or regulatory environmental restoration and waste 
management requirements, including substantive standards 
intended to protect public health and the environment.

SEC. 4406. DEFENSE WASTE CLEANUP TECHNOLOGY PROGRAM.

    (a) Establishment of Program.--The Secretary of Energy 
shall establish and carry out a program of research for the 
development of technologies useful for (1) the reduction of 
environmental hazards and contamination resulting from defense 
waste, and (2) environmental restoration of inactive defense 
waste disposal sites.
    (b) Coordination of Research Activities.--(1) In order to 
ensure nonduplication of research activities by the Department 
of Energy regarding technologies referred to in subsection (a), 
the Secretary shall coordinate the research activities of the 
Department of Energy relating to the development of such 
technologies with the research activities of the Environmental 
Protection Agency, the Department of Defense, and other 
appropriate Federal agencies relating to the same matter.
    (2) To the extent that funds are otherwise available for 
obligation, the Secretary may enter into cooperative agreements 
with the Environmental Protection Agency, the Department of 
Defense, and other appropriate Federal agencies for the conduct 
of research for the development of technologies referred to in 
subsection (a).
    (c) Report.--(1) The Secretary shall submit to Congress not 
later than April 1 each year a report on the research 
activities of the Department of Energy for the development of 
technologies referred to in subsection (a). The report shall 
cover such activities for the fiscal year preceding the fiscal 
year in which the report is submitted. The Secretary shall 
include in the report the following:
            (A) A description and assessment of each research 
        program being carried out by or for the Department of 
        Energy and the identification of the individual 
        laboratory, contractor, or institution of higher 
        education responsible for the research program.
            (B) An assessment of the extent to which (i) there 
        are practical applications of the technologies being 
        researched, and (ii) such technologies will likely 
        facilitate compliance by the Department of Energy with 
        applicable environmental laws and regulations.
            (C) An accounting of the funds allocated to each 
        research program and to each laboratory, contractor, or 
        institution of higher education carrying out the 
        research program.
            (D) An assessment of the research projects that 
        have been coordinated with the Environmental Protection 
        Agency, the Department of Defense, and other 
        appropriate Federal agencies pursuant to subsection 
        (b).
    (2) The first report required by paragraph (1) shall be 
submitted not later than April 1, 1990.
    (d) Definitions.--As used in this section:
            (1) The term ``defense waste'' means waste, 
        including radioactive waste, resulting primarily from 
        atomic energy defense activities of the Department of 
        Energy.
            (2) The term ``inactive defense waste disposal 
        site'' means any site (including any facility) under 
        the control or jurisdiction of the Secretary of Energy 
        which is used for the disposal of defense waste and is 
        closed to the disposal of additional defense waste, 
        including  any  site  that  is  subject  to  
        decontamination  and  decommissioning.

SEC. 4407. REPORT ON ENVIRONMENTAL RESTORATION EXPENDITURES.

    Each year, at the same time the President submits to 
Congress the budget for a fiscal year (pursuant to section 1105 
of title 31, United States Code), the Secretary of Energy shall 
submit to Congress a report on how the environmental 
restoration and waste management funds for defense activities 
of the Department of Energy were expended during the fiscal 
year preceding the fiscal year during which the budget is 
submitted. The report shall include details on expenditures by 
operations office, installation, budget category, and activity. 
The report also shall include any schedule changes or 
modifications to planned activities for the fiscal year in 
which the budget is submitted.

SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR ENVIRONMENTAL 
                    RESTORATION AND WASTE MANAGEMENT AT DEFENSE NUCLEAR 
                    FACILITIES.

    The Secretary of Energy shall consult with the 
Administrator of the Environmental Protection Agency, the 
Attorney General, Governors and Attorneys General of affected 
States, appropriate representatives of affected Indian tribes, 
and interested members of the public in any planning conducted 
by the Secretary for environmental restoration and waste 
management at Department of Energy defense nuclear facilities.

                   Subtitle B--Closure of Facilities

SEC. 4421. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT DEFENSE NUCLEAR 
                    FACILITIES.

    (a) In General.--The Secretary of Energy shall select and 
carry out closure-acceleration projects in accordance with this 

section.
    (b) Purpose.--The purpose of a closure-acceleration project 
shall be, within a fixed period of time, to clean up or 
decommission a Department of Energy defense nuclear facility or 
portion thereof and to make the facility safe by stabilizing, 
consolidating, treating, or removing nuclear materials from the 
facility in order to reduce significantly or eliminate future 
costs at the facility.
    (c) Eligible Projects.--(1) The Secretary of Energy may 
establish a closure-acceleration project as eligible for 
selection under subsection (e) by--
            (A) developing a plan for the project that meets 
        the criteria under paragraph (2); and
            (B) determining that the project will achieve 
        significant long-term cost savings to the Federal 
        Government from the baseline cost estimate made by the 
        Department of Energy for the project.
    (2) A plan for a closure-acceleration project under this 
section shall--
            (A) define a clear, delineated scope of work for 
        completion of the project;
            (B) demonstrate that, with respect to the site of 
        the proposed project, there is a regulatory agreement 
        between the Department of Energy and other appropriate 
        authorities for the implementation of environmental 
        remediation requirements that would allow for 
        successful completion of the project;
            (C) demonstrate, to the maximum extent possible, 
        the support of State and local elected officials and 
        the public for the project;
            (D) contain performance-based provisions to be 
        included in the contract for the project, including--
                    (i) clearly stated and results-oriented 
                performance 
                criteria and measures;
                    (ii) appropriate incentives for the 
                contractor to meet and exceed the performance 
                criteria effectively and efficiently;
                    (iii) appropriate criteria and incentives 
                for the con-
                tractor to seek and engage subcontractors who 
                may more effectively and efficiently perform 
                either unique and technologically challenging 
                tasks or routine and interchangeable services;
                    (iv) specific incentives for cost savings;
                    (v) financial accountability; and
                    (vi) when appropriate, reduction of fee for 
                failure to meet minimum performance criteria 
                and standards;
            (E) demonstrate that the project will use new and 
        innovative cleanup and waste management technology with 
        potential for application to other locations and 
        facilities without requiring the development of new 
        technologies; and
            (F) demonstrate that the project can be completed 
        within 10 years from the date of its selection.
    (d) Program Administration.--The Secretary of Energy, 
acting through the Assistant Secretary for Environmental 
Management, shall implement a program to carry out the 
provisions of this section.
    (e) Selection of Projects.--(1) The Secretary of Energy 
shall select closure-acceleration projects to be carried out 
under this section from among those projects established as 
eligible under subsection (c) that will result in the most 
significant long-term cost savings to the Government and the 
most significant reduction of imminent risk.
    (2) For each project selected, the Secretary shall submit 
to Congress a report setting forth the reasons why the project 
was selected, based on the criteria under subsection (c)(2) and 
paragraph (1) of this subsection.
    (f) Multiyear Contracts.--Notwithstanding section 304B(d) 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254c(d)), the Secretary of Energy may enter into 
multi-
year contracts to carry out projects selected under this 
section for up to 10 program years.
    (g) Funding.--(1) In the budget submitted to Congress under 
section 1105(a) of title 31, United States Code, each year, the 
President shall set forth funds for carrying out closure-
acceleration projects under this section as a separate item in 
the environmental restoration and waste management account of 
the Department of Energy budget.
    (2) Funds appropriated for purposes of carrying out 
projects under this section shall remain available until 
expended.
    (3) If a closure-acceleration project is being carried out 
at a defense nuclear facility with funds appropriated for such 
projects, the Secretary of Energy may not reduce the funds 
otherwise allocated to that defense nuclear facility for 
environmental restoration and waste management by reason of the 
funds being used for the project at that facility.
    (4) Funds appropriated for purposes of carrying out 
projects under this section may not be used for an item for 
which Congress has specifically denied funds or for a new 
program or project that has not been authorized by Congress.
    (h) Annual Report.--The Secretary of Energy shall submit 
each year to Congress a report on the status of each closure-
acceleration project being carried out under this section. The 
report shall include, for each such project, the following:
            (1) A description of the funding already provided 
        for the project.
            (2) A description of the extent of the cleanup, 
        decommissioning, stabilization, consolidation, 
        treatment, or removal activities completed.
            (3) A comparison of the actual results of the 
        project to the original proposal and the actual cost of 
        the project to the originally proposed cost.
            (4) A description of the funding needed in future 
        fiscal years for completion of the project.
    (i) Duration of Program.--No closure-acceleration project 
selected under this section may be carried out after September 
23, 2011.
    (j) Savings Provision.--Nothing in this section may be 
construed to affect statutory requirements for an environmental 
restoration or waste management activity or project or to 
modify or otherwise affect applicable statutory or regulatory 
environmental restoration and waste management requirements, 
including substantive standards intended to protect public 
health and the environment, nor shall anything in this section 
be construed to preempt or impair any local land use planning 
or zoning authority or State authority.

SEC. 4422. REPORTS IN CONNECTION WITH PERMANENT CLOSURES OF DEPARTMENT 
                    OF ENERGY DEFENSE NUCLEAR FACILITIES.

  (a) Training and Job Placement Services Plan.--Not later than 
120 days before a Department of Energy defense nuclear facility 
(as defined in section 318 of the Atomic Energy Act of 1954 (42 
U.S.C. 2286(g)) permanently ceases all production and 
processing operations, the Secretary of Energy must submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report containing a discussion of the 
training and job placement services needed to enable the 
employees at such facility to obtain employment in the 
environmental remediation and cleanup activities at such 
facility. The discussion shall include the actions that should 
be taken by the contractor operating and managing such facility 
to provide retraining and job placement services to employees 
of such contractor.
  (b) Closure Report.--Upon the permanent cessation of 
production operations at a Department of Energy defense nuclear 
facility, the Secretary of Energy shall submit to Congress a 
report containing--
          (1)  a  complete  survey  of environmental  problems  
        at  the facility;
          (2) budget quality data indicating the cost of 
        environmental restoration and other remediation and 
        cleanup efforts at the facility; and
          (3) a discussion of the proposed cleanup schedule.

                       Subtitle C--Privatization

SEC. 4431. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION PROJECTS.

    (a) Authority To Enter Into Contracts.--The Secretary of 
Energy may, using funds authorized to be appropriated by 
section 3102(i) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) for a project referred to 
in that section, enter into a contract that--
            (1) is awarded on a competitive basis;
            (2) requires the contractor to construct or acquire 
        any equipment or facilities required to carry out the 
        contract;
            (3) requires the contractor to bear any of the 
        costs of the construction, acquisition, and operation 
        of such equipment or facilities that arise before the 
        commencement of the provision of goods or services 
        under the contract; and
            (4) provides for payment to the contractor under 
        the contract only upon the meeting of performance 
        specifications in the contract.
    (b) Notice and Wait.--(1) The Secretary may not enter into 
a contract under subsection (a), exercise an authorization to 
proceed with such a contract or extend any contract period for 
such a contract by more than one year until 30 days after the 
date on which the Secretary submits to the congressional 
defense committees a report with respect to the contract.
    (2) Except as provided in paragraph (3), a report under 
paragraph (1) with respect to a contract shall set forth--
            (A) the anticipated costs and fees of the 
        Department under the contract, including the 
        anticipated maximum amount of such costs and fees;
            (B) any performance specifications in the contract;
            (C) the anticipated dates of commencement and 
        completion of the provision of goods or services under 
        the contract;
            (D) the allocation between the Department and the 
        contractor of any financial, regulatory, or 
        environmental obligations under the contract;
            (E) any activities planned or anticipated to be 
        required with respect to the project after completion 
        of the contract;
            (F) the site services or other support to be 
        provided the contractor by the Department under the 
        contract;
            (G) the goods or services to be provided by the 
        Department or contractor under the contract, including 
        any additional obligations to be borne by the 
        Department or contractor with respect to such goods or 
        services;
            (H) if the contract provides for financing of the 
        project by an entity or entities other than the United 
        States, a detailed comparison of the costs of financing 
        the project through such entity or entities with the 
        costs of financing the project by the United States;
            (I) the schedule for the contract;
            (J) the costs the Department would otherwise have 
        incurred in obtaining the goods or services covered by 
        the contract if the Department had not proposed to 
        obtain the goods or services under this section;
            (K) an estimate and justification of the cost 
        savings, if any, to be realized through the contract, 
        including the assumptions underlying the estimate;
            (L) the effect of the contract on any ancillary 
        schedules applicable to the facility concerned, 
        including milestones in site compliance agreements; and
            (M) the plans for maintaining financial and 
        programmatic accountability for activities under the 
        contract.
    (3) In the case of a contract under subsection (a) at the 
Hanford Reservation, the report under paragraph (1) shall set 
forth--
            (A) the matters specified in paragraph (2); and
            (B) if the contract contemplates two pilot 
        vitrification plants--
                    (i) an analysis of the basis for the 
                selection of each of the plants in lieu of a 
                single pilot vitrification plant; and
                    (ii) a detailed comparison of the costs to 
                the United States of two pilot plants with the 
                costs to the United States of a single pilot 
                plant.
    (c) Cost Variations.--(1)(A) The Secretary may not enter 
into a contract for a project referred to in subparagraph (B), 
or obligate funds attributable to the capital portion of the 
cost of such a contract, whenever the current estimated cost of 
the project exceeds the amount of the estimated cost of the 
project as shown in the most recent budget justification data 
submitted to Congress.
    (B) Subparagraph (A) applies to the following:
            (i) A project authorized by section 3102(i) of the 
        National Defense Authorization Act for Fiscal Year 1998 
        (Public Law 105-85).
            (ii) A project authorized by section 3103 of the 
        National Defense Authorization Act for Fiscal Year 1997 
        (Public Law 104-201; 110 Stat. 2824) for which a 
        contract has not been entered into as of November 18, 
        1997.
    (2) The Secretary may not obligate funds attributable to 
the capital portion of the cost of a contract entered into 
before such date for a project authorized by such section 3103 
whenever the current estimated cost of the project equals or 
exceeds 110 percent of the amount of the estimated cost of the 
project as shown in the most recent budget justification data 
submitted to Congress.
    (d) Use of Funds for Termination of Contract.--Not later 
than 15 days before the Secretary obligates funds available for 
a project authorized by section 3102(i) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85) to 
terminate the contract for the project under subsection (a), 
the Secretary shall notify the congressional defense committees 
of the Secretary's intent to obligate the funds for that 
purpose.
    (e) Annual Report on Contracts.--(1) Not later than 
February 28 of each year, the Secretary shall submit to the 
congressional defense committees a report on the activities, if 
any, carried out under each contract referred to in paragraph 
(2) during the preceding year. The report shall include an 
update with respect to each such contract of the matters 
specified under subsection (b)(1) as of the date of the report.
    (2) A contract referred to in paragraph (1) is the 
following:
            (A) A contract under subsection (a) for a project 
        referred to in that subsection.
            (B) A contract under section 3103 of the National 
        Defense Authorization Act for Fiscal Year 1997.
    (f) Assessment of Contracting Without Sufficient 
Appropriations.--Not later than 90 days after November 18, 
1997, the Secretary shall submit to the congressional defense 
committees a report assessing whether, and under what 
circumstances, the Secretary could enter into contracts for 
defense environmental management privatization projects in the 
absence of sufficient appropriations to meet obligations under 
such contracts without thereby violating the provisions of 
section 1341 of title 31, United States Code.

               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.

    (a) Prohibition on Inspections.--The Secretary of Energy 
may not allow an inspection of a nuclear weapons facility by 
the International Atomic Energy Agency until the Secretary 
certifies to Congress that no restricted data will be revealed 
during such inspection.
    (b) Extension of Notice-and-Wait Requirement Regarding 
Proposed Cooperation Agreements.--Section 3155(b) of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 3092) is amended by striking out 
``December 31, 1995'' and inserting in lieu thereof ``October 
1, 1996''.
    (c) Restricted Data Defined.--In this section, the term 
``restricted data'' has the meaning provided by section 11 y. 
of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

SEC. 4502. RESTRICTIONS ON ACCESS TO NATIONAL LABORATORIES BY FOREIGN 
                    VISITORS FROM SENSITIVE COUNTRIES.

    (a) Background Review Required.--The Secretary of Energy 
may not admit to any facility of a national laboratory other 
than areas accessible to the general public any individual who 
is a citizen or agent of a nation that is named on the current 
sensitive countries list unless the Secretary first completes a 
background review with respect to that individual.
    (b) Moratorium Pending Certification.--(1) During the 
period described in paragraph (2), the Secretary may not admit 
to any facility of a national laboratory other than areas 
accessible to the general public any individual who is a 
citizen or agent of a nation that is named on the current 
sensitive countries list.
    (2) The period referred to in paragraph (1) is the period 
beginning on November 4, 1999, and ending on the later of the 
following:
            (A) January 3, 2000.
            (B) The date that is 45 days after the date on 
        which the Secretary submits to Congress the 
        certifications described in paragraph (3).
    (3) The certifications referred to in paragraph (2) are one 
certification each by the Director of Counterintelligence of 
the Department of Energy, the Director of the Federal Bureau of 
Investigation, and the Director of Central Intelligence, of 
each of the following:
            (A) That the foreign visitors program at that 
        facility complies with applicable orders, regulations, 
        and policies of the Department of Energy relating to 
        the safeguarding and security of sensitive information 
        and fulfills any counterintelligence requirements 
        arising under such orders, regulations, and policies.
            (B) That the foreign visitors program at that 
        facility complies with Presidential Decision Directives 
        and similar requirements relating to the safeguarding 
        and security of sensitive information and fulfills any 
        counterintelligence requirements arising under such 
        Directives or requirements.
            (C) That the foreign visitors program at that 
        facility includes adequate protections against the 
        inadvertent release of Restricted Data, information 
        important to the national security of the United 
        States, and any other sensitive information the 
        disclosure of which might harm the interests of the 
        United States.
            (D) That the foreign visitors program at that 
        facility does not pose an undue risk to the national 
        security interests of the United States.
    (c) Waiver of Moratorium.--(1) The Secretary of Energy may 
waive the prohibition in subsection (b) on a case-by-case basis 
with respect to any specific individual or any specific 
delegation of individuals whose admission to a national 
laboratory is determined by the Secretary to be in the interest 
of the national security of the United States.
    (2) Not later than the seventh day of the month following a 
month in which a waiver is made, the Secretary shall submit a 
report in writing providing notice of each waiver made in that 
month to 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.
    (3) Each such report shall be in classified form and shall 
contain the identity of each individual or delegation for whom 
such a waiver was made and, with respect to each such 
individual or delegation, the following information:
            (A) A detailed justification for the waiver.
            (B) For each individual with respect to whom a 
        background review was conducted, whether the background 
        review determined that negative information exists with 
        respect to that individual.
            (C) The Secretary's certification that the 
        admission of that individual or delegation to a 
        national laboratory is in the interest of the national 
        security of the United States.
    (4) The authority of the Secretary under paragraph (1) may 
be delegated only to the Director of Counterintelligence of the 
Department of Energy.
    (d) Exception to Moratorium for Certain Individuals.--The 
moratorium under subsection (b) shall not apply to any person 
who--
            (1) is, on October 5, 1999, an employee or assignee 
        of the Department of Energy, or of a contractor of the 
        Department; and
            (2) has undergone a background review in accordance 
        with subsection (a).
    (e) Exception to Moratorium for Certain Programs.--The 
moratorium under subsection (b) shall not apply--
            (1) to activities relating to cooperative threat 
        reduction with states of the former Soviet Union; or
            (2) to the materials protection control and 
        accounting program of the Department.
    (f) Sense of Congress Regarding Background Reviews.--It is 
the sense of Congress that the Secretary of Energy, the 
Director of the Federal Bureau of Investigation, and the 
Director of Central Intelligence should ensure that background 
reviews carried out under this section are completed in not 
more than 15 days.
    (g) Definitions.--For purposes of this section:
            (1) The term ``background review'', commonly known 
        as an indices check, means a review of information 
        provided by the Director of Central Intelligence and 
        the Director of the Federal Bureau of Investigation 
        regarding personal background, including information 
        relating to any history of criminal activity or to any 
        evidence of espionage.
            (2) The term ``sensitive countries list'' means the 
        list prescribed by the Secretary of Energy known as the 
        Department of Energy List of Sensitive Countries as in 
        effect on January 1, 1999.
            (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)).

SEC. 4503. BACKGROUND INVESTIGATIONS OF CERTAIN PERSONNEL AT DEPARTMENT 
                    OF ENERGY FACILITIES.

    (a) In General.--The Secretary of Energy shall ensure that 
an investigation meeting the requirements of section 145 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2165) is made for each 
Department of Energy employee, or contractor employee, at a 
national laboratory or nuclear weapons production facility 
who--
            (1) carries out duties or responsibilities in or 
        around a location where Restricted Data is present; or
            (2) has or may have regular access to a location 
        where Restricted Data is present.
    (b) Compliance.--The Secretary shall have 15 months from 
October 5, 1999, to meet the requirement in subsection (a).
    (c) Definitions.--In this section, the terms ``national 
laboratory'' and ``Restricted Data'' have the meanings given 
such terms in section 4502(g)).

SEC. 4504. DEPARTMENT OF ENERGY COUNTERINTELLIGENCE POLYGRAPH PROGRAM.

    (a) New Counterintelligence Polygraph Program Required.--
The Secretary of Energy shall carry out, under regulations 
prescribed under this section, a new counterintelligence 
polygraph program for the Department of Energy. The purpose of 
the new program is to minimize the potential for release or 
disclosure of classified data, materials, or information.
    (b) Authorities and Limitations.--(1) The Secretary shall 
prescribe regulations for the new counterintelligence polygraph 
program required by subsection (a) in accordance with the 
provisions of subchapter II of chapter 5 of title 5, United 
States Code (commonly referred to as the Administrative 
Procedures Act).
    (2) In prescribing regulations for the new program, the 
Secretary shall take into account the results of the Polygraph 
Review.
    (3) Not later than six months after obtaining the results 
of the Polygraph Review, the Secretary shall issue a notice of 
proposed rulemaking for the new program.
    (c) Repeal of Existing Polygraph Program.--Effective 30 
days after the Secretary submits to the congressional defense 
committees the Secretary's certification that the final rule 
for the new counterintelligence polygraph program required by 
subsection (a) has been fully implemented, section 4504A is 
repealed.
    (d) Report on Further Enhancement of Personnel Security 
Program.--(1) Not later than January 1, 2003, the Administrator 
for Nuclear Security shall submit to Congress a report setting 
forth the recommendations of the Administrator for any 
legislative action that the Administrator considers appropriate 
in order to enhance the personnel security program of the 
Department of Energy.
    (2) Any recommendations under paragraph (1) regarding the 
use of polygraphs shall take into account the results of the 
Polygraph Review.
    (e) Polygraph Review Defined.--In this section, the term 
``Polygraph Review'' means the review of the Committee to 
Review the Scientific Evidence on the Polygraph of the National 
Academy of Sciences.

SEC. 4504A. COUNTERINTELLIGENCE POLYGRAPH PROGRAM.

    (a) Program Required.--The Secretary of Energy, acting 
through the Director of Counterintelligence, shall carry out a 
counterintelligence polygraph program for the defense-related 
activities of the Department. The counterintelligence polygraph 
program shall consist of the administration of 
counterintelligence polygraph examinations to each covered 
person who has access to high-risk programs.
    (b) Covered Persons.--(1) Subject to paragraph (2), for 
purposes of this section, a covered person is one of the 
following:
            (A) An officer or employee of the Department.
            (B) An expert or consultant under contract to the 
        Department.
            (C) An officer or employee of a contractor of the 
        Department.
            (D) An individual assigned or detailed to the 
        Department.
            (E) An applicant for a position in the Department.
    (2) A person described in paragraph (1) is a covered person 
for purposes of this section only if the position of the 
person, or for which the person is applying, under that 
paragraph is a position in one of the categories of positions 
listed in section 709.4(a) of title 10, Code of Federal 
Regulations.
    (c) High-Risk Programs.--For purposes of this section, 
high-risk programs are the following:
            (1) Programs using information known as Sensitive 
        Compartmented Information.
            (2) The programs known as Special Access Programs 
        and Personnel Security and Assurance Programs.
            (3) Any other program or position category 
        specified in section 709.4(a) of title 10, Code of 
        Federal Regulations.
    (d) Initial Testing and Consent.--(1) The Secretary may not 
permit a covered person to have initial access to any high-risk 
program unless that person first undergoes a 
counterintelligence polygraph examination and consents in a 
signed writing to the counterintelligence polygraph 
examinations required by this section.
    (2) Subject to paragraph (3), the Secretary may, after 
consultation with appropriate security personnel, waive the 
applicability of paragraph (1) to a covered person--
            (A) if--
                    (i) the Secretary determines that the 
                waiver is important to the national security 
                interests of the United States;
                    (ii) the covered person has an active 
                security clearance; and
                    (iii) the covered person acknowledges in a 
                signed writing that the capacity of the covered 
                person to perform duties under a high-risk 
                program after the expiration of the waiver is 
                conditional upon meeting the requirements of 
                paragraph (1) within the effective period of 
                the waiver;
            (B) if another Federal agency certifies to the 
        Secretary that the covered person has completed 
        successfully a full-scope or counterintelligence-scope 
        polygraph examination during the 5-year period ending 
        on the date of the certification; or
            (C) if the Secretary determines, after consultation 
        with the covered person and appropriate medical 
        personnel, that the treatment of a medical or 
        psychological condition of the covered person should 
        preclude the administration of the examination.
    (3)(A) The Secretary may not commence the exercise of the 
authority under paragraph (2) to waive the applicability of 
paragraph (1) to any covered persons until 15 days after the 
date on which the Secretary submits to the appropriate 
committees of Congress a report setting forth the criteria to 
be used by the Secretary for determining when a waiver under 
paragraph (2)(A) is important to the national security 
interests of the United States. The criteria shall not include 
the need to maintain the scientific vitality of the laboratory. 
The criteria shall include an assessment of counterintelligence 
risks and programmatic impacts.
    (B) Any waiver under paragraph (2)(A) shall be effective 
for not more than 120 days, and a person who is subject to a 
waiver under paragraph (2)(A) may not ever be subject to 
another waiver under paragraph (2)(A).
    (C) Any waiver under paragraph (2)(C) shall be effective 
for the duration of the treatment on which such waiver is 
based.
    (4) The Secretary shall submit to the appropriate 
committees of Congress on a semi-annual basis a report on any 
determinations made under paragraph (2)(A) during the 6-month 
period ending on the date of such report. The report shall 
include a national security justification for each waiver 
resulting from such determinations.
    (5) In this subsection, 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.
    (6) It is the sense of Congress that the waiver authority 
in paragraph (2) not be used by the Secretary to exempt from 
the applicability of paragraph (1) any covered persons in the 
highest risk categories, such as persons who have access to the 
most sensitive weapons design information and other highly 
sensitive programs, including special access programs.
    (7) The authority under paragraph (2) to waive the 
applicability of paragraph (1) to a covered person shall expire 
on September 30, 2002.
    (e) Additional Testing.--The Secretary may not permit a 
covered person to have continued access to any high-risk 
program unless that person undergoes a counterintelligence 
polygraph examination within five years after that person has 
initial access, and thereafter--
            (1) not less frequently than every five years; and
            (2) at any time at the direction of the Director of 
        Counterintelligence.
    (f) Counterintelligence Polygraph Examination.--For 
purposes of this section, the term ``counterintelligence 
polygraph examination'' means a polygraph examination using 
questions reasonably calculated to obtain counterintelligence 
information, including questions relating to espionage, 
sabotage, terrorism, unauthorized disclosure of classified 
information, deliberate damage to or malicious misuse of a 
United States Government information or defense system, and 
unauthorized contact with foreign nationals.
    (g) Regulations.--The Secretary shall prescribe any 
regulations necessary to carry out this section. Those 
regulations shall include procedures, to be developed in 
consultation with the Federal Bureau of Investigation, for--
            (1) identifying and addressing ``false positive'' 
        results of polygraph examinations; and
            (2) ensuring that adverse personnel actions not be 
        taken against an individual solely by reason of that 
        individual's physiological reaction to a question in a 
        polygraph examination, unless reasonable efforts are 
        first made to independently determine through 
        alternative means the veracity of that individual's 
        response to that question.
    (h) Plan for Extension of Program.--Not later than April 5, 
2000, 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 plan on extending the program 
required by this section. The plan shall provide for the 
administration of counterintelligence polygraph examinations in 
accordance with the program to each covered person who has 
access to--
            (1) the programs known as Personnel Assurance 
        Programs; and
            (2) the information identified as Sensitive 
        Compartmented Information.

SEC. 4505. NOTICE TO CONGRESSIONAL COMMITTEES OF CERTAIN SECURITY AND 
                    COUNTERINTELLIGENCE FAILURES WITHIN NUCLEAR ENERGY 
                    DEFENSE PROGRAMS.

    (a) Required Notification.--The Secretary of Energy shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a notification of each significant 
nuclear defense intelligence loss. Any such notification shall 
be provided only after consultation with the Director of 
Central Intelligence and the Director of the Federal Bureau of 
Investigation, as appropriate.
    (b) Significant Nuclear Defense Intelligence Losses.--In 
this section, the term ``significant nuclear defense 
intelligence loss'' means any national security or 
counterintelligence failure or compromise of classified 
information at a facility of the Department of Energy or 
operated by a contractor of the Department that the Secretary 
considers likely to cause significant harm or damage to the 
national security interests of the United States.
    (c) Manner of Notification.--Notification of a significant 
nuclear defense intelligence loss under subsection (a) shall be 
provided, in accordance with the procedures established 
pursuant to subsection (d), not later than 30 days after the 
date on which the Department of Energy determines that the loss 
has taken place.
    (d) Procedures.--The Secretary of Energy and the Committees 
on Armed Services of the Senate and House of Representatives 
shall each establish such procedures as may be necessary to 
protect from unauthorized disclosure classified information, 
information relating to intelligence sources and methods, and 
sensitive law enforcement information that is submitted to 
those committees pursuant to this section and that are 
otherwise necessary to carry out the provisions of this 
section.
    (e) Statutory Construction.--(1) Nothing in this section 
shall be construed as authority to withhold any information 
from the Committees on Armed Services of the Senate and House 
of Representatives on the grounds that providing the 
information to those committees would constitute the 
unauthorized disclosure of classified information, information 
relating to intelligence sources and methods, or sensitive law 
enforcement information.
    (2) Nothing in this section shall be construed to modify or 
supersede any other requirement to report information on 
intelligence activities to the Congress, including the 
requirement under section 501 of the National Security Act of 
1947 (50 U.S.C. 413) for the President to ensure that the 
congressional intelligence committees are kept fully informed 
of the intelligence activities of the United States and for 
those committees to notify promptly other congressional 
committees of any matter relating to intelligence activities 
requiring the attention of those committees.

SEC. 4506. SUBMITTAL OF ANNUAL REPORT ON STATUS OF SECURITY FUNCTIONS 
                    AT NUCLEAR WEAPONS FACILITIES.

    (a) In General.--Not later than September 1 each year, the 
Secretary of Energy shall submit to the congressional defense 
committees the report entitled ``Annual Report to the President 
on the Status of Safeguards and Security of Domestic Nuclear 
Weapons Facilities'', or any successor report to such report.
    (b) Requirement Relating to Reports Through Fiscal Year 
2000.--The Secretary shall include with each report submitted 
under subsection (a) in fiscal years 1998 through 2000 any 
comments on such report by the members of the Department of 
Energy Security Management Board established under section 3161 
of the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85; 111 Stat. 2048; 42 U.S.C. 7251 note) that 
such members consider appropriate.

SEC. 4507. REPORT ON COUNTERINTELLIGENCE AND SECURITY PRACTICES AT 
                    NATIONAL LABORATORIES.

    (a) In General.--Not later than March 1 of each year, the 
Secretary of Energy shall submit to the Congress a report for 
the preceding year on counterintelligence and security 
practices at the facilities of the national laboratories 
(whether or not classified activities are carried out at the 
facility).
    (b) Content of Report.--The report shall include, with 
respect to each national laboratory, the following:
            (1) The number of employees, including full-time 
        counterintelligence and security professionals and 
        contractor employees.
            (2) A description of the counterintelligence and 
        security training courses conducted and, for each such 
        course, any requirement that employees successfully 
        complete that course.
            (3) A description of each contract awarded that 
        provides an incentive for the effective performance of 
        counterintelligence or security activities.
            (4) A description of the requirement that an 
        employee report the travel to sensitive countries of 
        that employee (whether or not the travel was for 
        official business).
            (5) The number of trips by individuals who traveled 
        to sensitive countries, with identification of the 
        sensitive countries visited.
    (c) National Laboratory Defined.--In this section, the term 
``national laboratory'' has the meaning given that term in 
section 4502(g)(3).

SEC. 4508. REPORT ON SECURITY VULNERABILITIES OF NATIONAL LABORATORY 
                    COMPUTERS.

    (a) Report Required.--Not later than March 1 of each year, 
the National Counterintelligence Policy Board shall prepare a 
report on the security vulnerabilities of the computers of the 
national laboratories.
    (b) Preparation of Report.--In preparing the report, the 
National Counterintelligence Policy Board shall establish a so-
called ``red team'' of individuals to perform an operational 
evaluation of the security vulnerabilities of the computers of 
one or more national laboratories, including by direct 
experimentation. Such individuals shall be selected by the 
National Counterintelligence Policy Board from among employees 
of the Department of Defense, the National Security Agency, the 
Central Intelligence Agency, the Federal Bureau of 
Investigation, and of other agencies, and may be detailed to 
the National Counterintelligence Policy Board from such 
agencies without reimbursement and without interruption or loss 
of civil service status or privilege.
    (c) Submission of Report to Secretary of Energy and to FBI 
Director.--Not later than March 1 of each year, the report 
shall be submitted in classified and unclassified form to the 
Secretary of Energy and the Director of the Federal Bureau of 
Investigation.
    (d) Forwarding to Congressional Committees.--Not later than 
30 days after the report is submitted, the Secretary and the 
Director shall each separately forward that report, with the 
recommendations in classified and unclassified form of the 
Secretary or the Director, as applicable, in response to the 
findings of that report, to the following:
            (1) The Committee on Armed Services and the Select 
        Committee on Intelligence of the Senate.
            (2) The Committee on Armed Services and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.
    (e) First Report.--The first report under this section 
shall be the report for the year 2000. That report shall cover 
each of the national laboratories.
    (f) National Laboratory Defined.--In this section, the term 
``national laboratory'' has the meaning given that term in 
section 4502(g)(3).

                   Subtitle B--Classified Information

SEC. 4521. REVIEW OF CERTAIN DOCUMENTS BEFORE DECLASSIFICATION AND 
                    RELEASE.

    (a) In General.--The Secretary of Energy shall ensure that, 
before a document of the Department of Energy that contains 
national security information is released or declassified, such 
document is reviewed to determine whether it contains 
restricted data.
    (b) Limitation on Declassification.--The Secretary may not 
implement the automatic declassification provisions of 
Executive Order 12958 if the Secretary determines that such 
implementation could result in the automatic declassification 
and release of documents containing restricted data.
    (c) Restricted Data Defined.--In this section, the term 
``restricted data'' has the meaning provided by section 11 y. 
of the Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

SEC. 4522. PROTECTION AGAINST INADVERTENT RELEASE OF RESTRICTED DATA 
                    AND FORMERLY RESTRICTED DATA.

    (a) Plan for Protection Against Release.--The Secretary of 
Energy and the Archivist of the United States shall, after 
consultation with the members of the National Security Council 
and in consultation with the Secretary of Defense and the heads 
of other appropriate Federal agencies, develop a plan to 
prevent the inadvertent release of records containing 
Restricted Data or Formerly Restricted Data during the 
automatic declassification of records under Executive Order No. 
12958 (50 U.S.C. 435 note).
    (b) Plan Elements.--The plan under subsection (a) shall 
include the following:
            (1) The actions to be taken in order to ensure that 
        records subject to Executive Order No. 12958 are 
        reviewed on a page-by-page basis for Restricted Data 
        and Formerly Restricted Data unless they have been 
        determined to be highly unlikely to contain Restricted 
        Data or Formerly Restricted Data.
            (2) The criteria and process by which documents are 
        determined to be highly unlikely to contain Restricted 
        Data or Formerly Restricted Data.
            (3) The actions to be taken in order to ensure 
        proper training, supervision, and evaluation of 
        personnel engaged in declassification under that 
        Executive order so that such personnel recognize 
        Restricted Data and Formerly Restricted Data.
            (4) The extent to which automated declassification 
        technologies will be used under that Executive order to 
        protect Restricted Data and Formerly Restricted Data 
        from inadvertent release.
            (5) Procedures for periodic review and evaluation 
        by the Secretary of Energy, in consultation with the 
        Director of the Information Security Oversight Office 
        of the National Archives and Records Administration, of 
        compliance by Federal agencies with the plan.
            (6) Procedures for resolving disagreements among 
        Federal agencies regarding declassification procedures 
        and decisions under the plan.
            (7) The funding, personnel, and other resources 
        required to carry out the plan.
            (8) A timetable for implementation of the plan.
    (c) Limitation on Declassification of Certain Records.--(1) 
Effective on October 17, 1998, and except as provided in 
paragraph (3), a record referred to in subsection (a) may not 
be declassified unless the agency having custody of the record 
reviews the record on a page-by-page basis to ensure that the 
record does not contain Restricted Data or Formerly Restricted 
Data.
    (2) Any record determined as a result of a review under 
paragraph (1) to contain Restricted Data or Formerly Restricted 
Data may not be declassified until the Secretary of Energy, in 
conjunction with the head of the agency having custody of the 
record, determines that the document is suitable for 
declassification.
    (3) After the date occurring 60 days after the submission 
of the plan required by subsection (a) to the committees 
referred to in paragraphs (1) and (2) of subsection (d), the 
requirement under paragraph (1) to review a record on a page-
by-page basis shall not apply in the case of a record 
determined, under the actions specified in the plan pursuant to 
subsection (b)(1), to be a record that is highly unlikely to 
contain Restricted Data or Formerly Restricted Data.
    (d) Submission of Plan.--The Secretary of Energy shall 
submit the plan required under subsection (a) to the following:
            (1) The Committee on Armed Services of the Senate.
            (2) The Committee on Armed Services of the House of 
        Representatives.
            (3) The Assistant to the President for National 
        Security Affairs.
    (e) Submission of Reviews.--The Secretary of Energy shall, 
on a periodic basis, submit a summary of the results of the 
periodic reviews and evaluations specified in the plan pursuant 
to subsection (b)(4) to the committees and Assistant to the 
President specified in subsection (d).
    (f ) Report and Notification Regarding Inadvertent 
Releases.--(1) The Secretary of Energy shall submit to the 
committees and Assistant to the President specified in 
subsection (d) a report on inadvertent releases of Restricted 
Data or Formerly Restricted Data under Executive Order No. 
12958 that occurred before October 17, 1998.
    (2) Commencing with inadvertent releases discovered on or 
after October 30, 2000, the Secretary of Energy shall, on a 
quarterly basis, submit a report to the committees and 
Assistant to the President specified in subsection (d). The 
report shall state whether any inadvertent releases described 
in paragraph (1) occurred during the immediately preceding 
quarter and, if so, shall identify each such release.
    (g) Definition.--In this section, 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)).

SEC. 4523. SUPPLEMENT TO PLAN FOR DECLASSIFICATION OF RESTRICTED DATA 
                    AND FORMERLY RESTRICTED DATA.

    (a) Supplement to Plan.--The Secretary of Energy and the 
Archivist of the United States shall, after consultation with 
the members of the National Security Council and in 
consultation with the Secretary of Defense and the heads of 
other appropriate Federal agencies, develop a supplement to the 
plan required under subsection (a) of section 3161 of the Strom 
Thurmond National Defense Authorization Act for Fisclay Year 
1999 (Public Law 105-261; 112 Stat. 2260; 50 U.S.C. 435 note).
    (b) Contents of Supplement.--The supplement shall provide 
for the application of that plan (including in particular the 
element of the plan required by subsection (b)(1) of section 
4522) to all records subject to Executive Order No. 12958 that 
were determined before October 17, 1998, to be suitable for 
declassification.
    (c) Limitation on Declassification of Records.--All records 
referred to in subsection (b) shall be treated, for purposes of 
subsection (c) of section 4522, in the same manner as records 
referred to in subsection (a) of such section.
    (d) Submission of Supplement.--The Secretary of Energy 
shall submit the supplement required under subsection (a) to 
the recipients of the plan referred to in subsection (d) of 
section 4522.

SEC. 4524. PROTECTION OF CLASSIFIED INFORMATION DURING LABORATORY-TO-
                    LABORATORY EXCHANGES.

    (a) Provision of Training.--The Secretary of Energy shall 
ensure that all Department of Energy employees and Department 
of Energy contractor employees participating in laboratory-to-
laboratory cooperative exchange activities are fully trained in 
matters relating to the protection of classified information 
and to potential espionage and counterintelligence threats.
    (b) Countering of Espionage and Intelligence-Gathering 
Abroad.--(1) The Secretary shall establish a pool of Department 
employees and Department contractor employees who are specially 
trained to counter threats of espionage and intelligence-
gathering by foreign nationals against Department employees and 
Department contractor employees who travel abroad for 
laboratory-to-laboratory exchange activities or other 
cooperative exchange activities on behalf of the Department.
    (2) The Director of Counterintelligence of the Department 
of Energy may assign at least one employee from the pool 
established under paragraph (1) to accompany a group of 
Department employees or Department contractor employees who 
travel to any nation designated to be a sensitive country for 
laboratory-to-laboratory exchange activities or other 
cooperative exchange activities on behalf of the Department.

SEC. 4525. IDENTIFICATION IN BUDGET MATERIALS OF AMOUNTS FOR 
                    DECLASSIFICATION ACTIVITIES AND LIMITATION ON 
                    EXPENDITURES FOR SUCH ACTIVITIES.

    (a) Amounts for Declassification of Records.--The Secretary 
of Energy shall include in the budget justification materials 
submitted to Congress in support of the Department of Energy 
budget for any fiscal year (as submitted with the budget of the 
President under section 1105(a) of title 31, United States 
Code) specific identification, as a budgetary line item, of the 
amounts required to carry out programmed activities during that 
fiscal year to declassify records pursuant to Executive Order 
No. 12958 (50 U.S.C. 435 note), or any successor Executive 
order, or to comply with any statutory requirement to 
declassify Government records.
    (b) Certification Required With Respect To Automatic 
Declassification of Records.--No records of the Department of 
Energy that have not as of October 5, 1999, been reviewed for 
declassification shall be subject to automatic declassification 
unless the Secretary of Energy certifies to Congress that such 
declassification would not harm the national security.
    (c) Report on Automatic Declassification of Department of 
Energy Records.--Not later than February 1, 2001, the Secretary 
of Energy shall submit to the Committee on Armed Services of 
the House of Representatives and the Committee on Armed 
Services of the Senate a report on the efforts of the 
Department of Energy relating to the declassification of 
classified records under the control of the Department of 
Energy. Such report shall include the following:
            (1) An assessment of whether the Department will be 
        able to review all relevant records for 
        declassification before any date established for 
        automatic declassification.
            (2) An estimate of the number of records, if any, 
        that the Department will be unable to review for 
        declassification before any such date and the effect on 
        national security of the automatic declassification of 
        those records.
            (3) An estimate of the length of time by which any 
        such date would need to be extended to avoid the 
        automatic declassification of records that have not yet 
        been reviewed as of such date.

                     Subtitle C--Emergency Response

SEC. 4541. RESPONSIBILITY FOR DEFENSE PROGRAMS EMERGENCY RESPONSE 
                    PROGRAM.

    The Office of Military Applications under the Assistant 
Secretary of Energy for Defense Programs shall retain 
responsibility for the Defense Programs Emergency Response 
Program within the Department of Energy.

                     TITLE XLVI--PERSONNEL MATTERS

                    Subtitle A--Personnel Management

SEC. 4601. AUTHORITY FOR APPOINTMENT OF CERTAIN SCIENTIFIC, 
                    ENGINEERING, AND TECHNICAL PERSONNEL.

    (a) Authority.--(1) Notwithstanding any provision of title 
5, United States Code, governing appointments in the 
competitive service and General Schedule classification and pay 
rates, the Secretary of Energy may--
            (A) establish and set the rates of pay for not more 
        than 200 positions in the Department of Energy for 
        scientific, engineering, and technical personnel whose 
        duties will relate to safety at defense nuclear 
        facilities of the Department; and
            (B) appoint persons to such positions.
    (2) The rate of pay for a position established under 
paragraph (1) may not exceed the rate of pay payable for level 
III of the Executive Schedule under section 5314 of title 5, 
United States Code.
    (3) To the maximum extent practicable, the Secretary shall 
appoint persons under paragraph (1)(B) to the positions 
established under paragraph (1)(A) in accordance with the merit 
system principles set forth in section 2301 of such title.
    (4) The Secretary may not appoint more than 100 persons 
during fiscal year 1995 under the authority provided in this 
subsection.
    (b) OPM Review.--(1) The Secretary shall enter into an 
agreement with the Director of the Office of Personnel 
Management under which agreement the Director shall 
periodically evaluate the use of the authority set forth in 
subsection (a)(1). The Secretary shall reimburse the Director 
for evaluations conducted by the Director pursuant to the 
agreement. Any such reimbursement shall be credited to the 
revolving fund referred to in section 1304(e) of title 5, 
United States Code.
    (2) If the Director determines as a result of such 
evaluation that the Secretary of Energy is not appointing 
persons to positions under such authority in a manner 
consistent with the merit system principles set forth in 
section 2301 of title 5, United States Code, or is setting 
rates of pay at levels that are not appropriate for the 
qualifications and experience of the persons appointed and the 
duties of the positions involved, the Director shall notify the 
Secretary and Congress of that determination.
    (3) Upon receipt of a notification under paragraph (2), the 
Secretary shall--
            (A) take appropriate actions to appoint persons to 
        positions under such authority in a manner consistent 
        with such principles or to set rates of pay at levels 
        that are appropriate for the qualifications and 
        experience of the persons appointed and the duties of 
        the positions involved; or
            (B) cease appointment of persons under such 
        authority.
    (c) Termination.--(1) The authority provided under 
subsection (a)(1) shall terminate on September 30, 2002.
    (2) An employee may not be separated from employment with 
the Department of Energy or receive a reduction in pay by 
reason of the termination of authority under paragraph (1).

SEC. 4602. WHISTLEBLOWER PROTECTION PROGRAM.

    (a) Program Required.--The Secretary of Energy shall 
establish a program to ensure that covered individuals may not 
be discharged, demoted, or otherwise discriminated against as a 
reprisal for making protected disclosures.
    (b) Covered Individuals.--For purposes of this section, a 
covered individual is an individual who is an employee of the 
Department of Energy, or of a contractor of the Department, who 
is engaged in the defense activities of the Department.
    (c) Protected Disclosures.--For purposes of this section, a 
protected disclosure is a disclosure--
            (1) made by a covered individual who takes 
        appropriate steps to protect the security of the 
        information in accordance with guidance provided under 
        this section;
            (2) made to a person or entity specified in 
        subsection (d); and
            (3) of classified or other information that the 
        covered individual reasonably believes to provide 
        direct and specific evidence of any of the following:
                    (A) A violation of law or Federal 
                regulation.
                    (B) Gross mismanagement, a gross waste of 
                funds, or abuse of authority.
                    (C) A false statement to Congress on an 
                issue of material fact.
    (d) Persons and Entities to Which Disclosures May Be 
Made.--A person or entity specified in this subsection is any 
of the following:
            (1) A member of a committee of Congress having 
        primary responsibility for oversight of the department, 
        agency, or element of the Government to which the 
        disclosed information relates.
            (2) An employee of Congress who is a staff member 
        of such a committee and has an appropriate security 
        clearance for access to information of the type 
        disclosed.
            (3) The Inspector General of the Department of 
        Energy.
            (4) The Federal Bureau of Investigation.
            (5) Any other element of the Government designated 
        by the Secretary as authorized to receive information 
        of the type disclosed.
    (e) Official Capacity of Persons to Whom Information is 
Disclosed.--A member of, or an employee of Congress who is a 
staff member of, a committee of Congress specified in 
subsection (d) who receives a protected disclosure under this 
section does so in that member or employee's official capacity 
as such a member or employee.
    (f) Assistance and Guidance.--The Secretary, acting through 
the Inspector General of the Department of Energy, shall 
provide assistance and guidance to each covered individual who 
seeks to make a protected disclosure under this section. Such 
assistance and guidance shall include the following:
            (1) Identifying the persons or entities under 
        subsection (d) to which that disclosure may be made.
            (2) Advising that individual regarding the steps to 
        be taken to protect the security of the information to 
        be disclosed.
            (3) Taking appropriate actions to protect the 
        identity of that individual throughout that disclosure.
            (4) Taking appropriate actions to coordinate that 
        disclosure with any other Federal agency or agencies 
        that originated the information.
    (g) Regulations.--The Secretary shall prescribe regulations 
to ensure the security of any information disclosed under this 
section.
    (h) Notification to Covered Individuals.--The Secretary 
shall notify each covered individual of the following:
            (1) The rights of that individual under this 
        section.
            (2) The assistance and guidance provided under this 
        section.
            (3) That the individual has a responsibility to 
        obtain that assistance and guidance before seeking to 
        make a protected disclosure.
    (i) Complaint by Covered Individuals.--If a covered 
individual believes that that individual has been discharged, 
demoted, or otherwise discriminated against as a reprisal for 
making a protected disclosure under this section, the 
individual may submit a complaint relating to such matter to 
the Director of the Office of Hearings and Appeals of the 
Department of Energy.
    (j) Investigation by Office of Hearings and Appeals.--(1) 
For each complaint submitted under subsection (i), the Director 
of the Office of Hearings and Appeals shall--
            (A) determine whether or not the complaint is 
        frivolous; and
            (B) if the Director determines the complaint is not 
        frivolous, conduct an investigation of the complaint.
    (2) The Director shall submit a report on each 
investigation undertaken under paragraph (1)(B) to--
            (A) the individual who submitted the complaint on 
        which the investigation is based;
            (B) the contractor concerned, if any; and
            (C) the Secretary of Energy.
    (k) Remedial Action.--(1) Whenever the Secretary determines 
that a covered individual has been discharged, demoted, or 
otherwise discriminated against as a reprisal for making a 
protected disclosure under this section, the Secretary shall--
            (A) in the case of a Department employee, take 
        appropriate actions to abate the action; or
            (B) in the case of a contractor employee, order the 
        contractor concerned to take appropriate actions to 
        abate the action.
    (2)(A) If a contractor fails to comply with an order issued 
under paragraph (1)(B), the Secretary may file an action for 
enforcement of the order in the appropriate United States 
district court.
    (B) In any action brought under subparagraph (A), the court 
may grant appropriate relief, including injunctive relief and 
compensatory and exemplary damages.
    (l) Relationship to Other Laws.--The protections provided 
by this section are independent of, and not subject to any 
limitations that may be provided in, the Whistleblower 
Protection Act of 1989 (Public Law 101-512) or any other law 
that may provide protection for disclosures of information by 
employees of the Department of Energy or of a contractor of the 
Department.
    (m) Annual Report.--(1) Not later than 30 days after the 
commencement of each fiscal year, the Director 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 investigations undertaken under subsection (j)(1)(B) during 
the preceding fiscal year, including a summary of the results 
of each such investigation.
    (2) A report under paragraph (1) may not identify or 
otherwise provide any information about an individual 
submitting a complaint under this section without the consent 
of the individual.
    (n) Implementation Report.--Not later than December 5, 
1999, 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 describing the 
implementation of the program required by this section.

SEC. 4603. EMPLOYEE INCENTIVES FOR EMPLOYEES AT CLOSURE PROJECT 
                    FACILITIES.

    (a) Authority to Provide Incentives.--Notwithstanding any 
other provision of law, the Secretary of Energy may provide to 
any eligible employee of the Department of Energy one or more 
of the incentives described in subsection (d).
    (b) Eligible Employees.--An individual is an eligible 
employee of the Department of Energy for purposes of this 
section if the individual--
            (1) has worked continuously at a closure facility 
        for at least two years;
            (2) is an employee (as that term is defined in 
        section 2105(a) of title 5, United States Code);
            (3) has a fully satisfactory or equivalent 
        performance rating during the most recent performance 
        period and is not subject to an adverse notice 
        regarding conduct; and
            (4) meets any other requirement or condition under 
        subsection (d) for the incentive which is provided the 
        employee under this section.
    (c) Closure Facility Defined.--For purposes of this 
section, the term ``closure facility'' means a Department of 
Energy facility at which the Secretary is carrying out a 
closure project selected under section 4421.
    (d) Incentives.--The incentives that the Secretary may 
provide under this section are the following:
            (1) The right to accumulate annual leave provided 
        by section 6303 of title 5, United States Code, for use 
        in succeeding years until it totals not more than 90 
        days, or not more than 720 hours based on a standard 
        work week, at the beginning of the first full biweekly 
        pay period, or corresponding period for an employee who 
        is not paid on the basis of biweekly pay periods, 
        occurring in a year, except that--
                    (A) any annual leave that remains unused 
                when an employee transfers to a position in a 
                department or agency of the Federal Government 
                shall be liquidated upon the transfer by 
                payment to the employee of a lump sum for leave 
                in excess of 30 days, or in excess of 240 hours 
                based on a standard work week; and
                    (B) upon separation from service, annual 
                leave accumulated under this paragraph shall be 
                treated as any other accumulated annual leave 
                is treated.
            (2) The right to be paid a retention allowance in a 
        lump sum in compliance with paragraphs (1) and (2) of 
        section 5754(b) of title 5, United States Code, if the 
        employee meets the requirements of section 5754(a) of 
        that title, except that the retention allowance may 
        exceed 25 percent, but may not be more than 30 percent, 
        of the employee's rate of basic pay.
    (e) Agreement.--An eligible employee of the Department of 
Energy provided an incentive under this section shall enter 
into an agreement with the Secretary to remain employed at the 
closure facility at which the employee is employed as of the 
date of the agreement until a specific date or for a specific 
period of time.
    (f ) Violation of Agreement.--(1) Except as provided under 
paragraph (3), an eligible employee of the Department of Energy 
who violates an agreement under subsection (e), or is dismissed 
for cause, shall forfeit eligibility for any incentives under 
this section as of the date of the violation or dismissal, as 
the case may be.
    (2) Except as provided under paragraph (3), an eligible 
employee of the Department of Energy who is paid a retention 
allowance under subsection (d)(2) and who violates an agreement 
under subsection (e), or is dismissed for cause, before the end 
of the period or date of employment agreed upon under such 
agreement shall refund to the United States an amount that 
bears the same ratio to the aggregate amount so paid to or 
received by the employee as the unserved part of such 
employment bears to the total period of employment agreed upon 
under such agreement.
    (3) The Secretary may waive the applicability of paragraph 
(1) or (2) to an employee otherwise covered by such paragraph 
if the Secretary determines that there is good and sufficient 
reason for the waiver.
    (g) Report.--The Secretary shall include in each report on 
a closure project under section 4421(h) a report on the 
incentives, if any, provided under this section with respect to 
the project for the period covered by such report.
    (h) Authority With Respect to Health Coverage.--Section 
8905a(d)(5)(A) of title 5, United States Code (as added by 
section 1106 of the Veterans Millennium Health Care and 
Benefits Act (Public Law 106-117; 113 Stat. 1598)), is amended 
by inserting after ``readjustment'' the following: ``, or a 
voluntary or involuntary separation from a Department of Energy 
position at a Department of Energy facility at which the 
Secretary is carrying out a closure project selected under 
section 3143 of the National Defense Authorization Act for 
Fiscal Year 1997 (42 U.S.C. 7274n)''.
    (i) Authority With Respect to Voluntary Separations.--(1) 
The Secretary may--
            (A) separate from service any employee at a 
        Department of Energy facility at which the Secretary is 
        carrying out a closure project selected under section 
        4421 who volunteers to be separated under this 
        subparagraph even though the employee is not otherwise 
        subject to separation due to a reduction in force; and
            (B) for each employee voluntarily separated under 
        subparagraph (A), retain an employee in a similar 
        position who would otherwise be separated due to a 
        reduction in force.
    (2) The separation of an employee under paragraph (1)(A) 
shall be treated as an involuntary separation due to a 
reduction in force.
    (3) An employee with critical knowledge and skills (as 
defined by the Secretary) may not participate in a voluntary 
separation under paragraph (1)(A) if the Secretary determines 
that such participation would impair the performance of the 
mission of the Department of Energy.
    ( j) Termination.--The authority to provide incentives 
under this section terminates on March 31, 2007.

SEC. 4604. DEPARTMENT OF ENERGY DEFENSE NUCLEAR FACILITIES WORKFORCE 
                    RESTRUCTURING PLAN.

    (a) In General.--Upon determination that a change in the 
workforce at a defense nuclear facility is necessary, the 
Secretary of Energy shall develop a plan for restructuring the 
workforce for the defense nuclear facility that takes into 
account--
            (1) the reconfiguration of the defense nuclear 
        facility; and
            (2) the plan for the nuclear weapons stockpile that 
        is the most recently prepared plan at the time of the 
        development of the plan referred to in this subsection.
    (b) Consultation.--(1) In developing a plan referred to in 
subsection (a) and any updates of the plan under subsection 
(e), the Secretary shall consult with the Secretary of Labor, 
appropriate representatives of local and national collective-
bargaining units of individuals employed at Department of 
Energy defense nuclear facilities, appropriate representatives 
of departments and agencies of State and local governments, 
appropriate representatives of State and local institutions of 
higher education, and appropriate representatives of community 
groups in communities affected by the restructuring plan.
    (2) The Secretary shall determine appropriate 
representatives of the units, governments, institutions, and 
groups referred to in paragraph (1).
    (c) Objectives.--In preparing the plan required under 
subsection (a), the Secretary shall be guided by the following 
objectives:
            (1) Changes in the workforce at a Department of 
        Energy defense nuclear facility--
                    (A) should be accomplished so as to 
                minimize social and economic impacts;
                    (B) should be made only after the provision 
                of notice of such changes not later than 120 
                days before the commencement of such changes to 
                such employees and the communities in which 
                such facilities are located; and
                    (C) should be accomplished, when possible, 
                through the use of retraining, early 
                retirement, attrition, and other options that 
                minimize layoffs.
            (2) Employees whose employment in positions at such 
        facilities is terminated shall, to the extent 
        practicable, receive preference in any hiring of the 
        Department of Energy (consistent with applicable 
        employment seniority plans or practices of the 
        Department of Energy and with section 3152 of the 
        National Defense Authorization Act for Fiscal Years 
        1990 and 1991 (Public Law 101-189; 103 Stat. 1682)).
            (3) Employees shall, to the extent practicable, be 
        retrained for work in environmental restoration and 
        waste management activities at such facilities or other 
        facilities of the Department of Energy.
            (4) The Department of Energy should provide 
        relocation assistance to employees who are transferred 
        to other Department of Energy facilities as a result of 
        the plan.
            (5) The Department of Energy should assist 
        terminated employees in obtaining appropriate 
        retraining, education, and reemployment assistance 
        (including employment placement assistance).
            (6) The Department of Energy should provide local 
        impact assistance to communities that are affected by 
        the restructuring plan and coordinate the provision of 
        such assistance with--
                    (A) programs carried out by the Secretary 
                of Labor under the Job Training Partnership Act 
                or title I of the Workforce Investment Act of 
                1998;
                    (B) programs carried out pursuant to the 
                Defense Economic Adjustment, Diversification, 
                Conversion, and Stabilization Act of 1990 
                (division D of Public Law 101-510; 10 U.S.C. 
                2391 note); and
                    (C) programs carried out by the Department 
                of Commerce pursuant to title II of the Public 
                Works and Economic Development Act of 1965 (42 
                U.S.C. 3141 et seq.).
    (d) Implementation.--The Secretary shall, subject to the 
availability of appropriations for such purpose, work on an 
ongoing basis with representatives of the Department of Labor, 
workforce bargaining units, and States and local communities in 
carrying out a plan required under subsection (a).
    (e) Plan Updates.--Not later than one year after issuing a 
plan referred to in subsection (a) and on an annual basis 
thereafter, the Secretary shall issue an update of the plan. 
Each updated plan under this subsection shall--
            (1) be guided by the objectives referred to in 
        subsection (c), taking into account any changes in the 
        function or mission of the Department of Energy defense 
        nuclear facilities and any other changes in 
        circumstances that the Secretary determines to be 
        relevant;
            (2) contain an evaluation by the Secretary of the 
        implementation of the plan during the year preceding 
        the report; and
            (3) contain such other information and provide for 
        such other matters as the Secretary determines to be 
        relevant.
    (f) Submittal to Congress.--(1) The Secretary shall submit 
to Congress a plan referred to in subsection (a) with respect 
to a defense nuclear facility within 90 days after the date on 
which a notice of changes described in subsection (c)(1)(B) is 
provided to employees of the facility, or 90 days after the 
date of the enactment of this Act, whichever is later.
    (2) The Secretary shall submit to Congress any updates of 
the plan under subsection (e) immediately upon completion of 
any such update.
    (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.

SEC. 4605. AUTHORITY TO PROVIDE CERTIFICATE OF COMMENDATION TO 
                    DEPARTMENT OF ENERGY AND CONTRACTOR EMPLOYEES FOR 
                    EXEMPLARY SERVICE IN STOCKPILE STEWARDSHIP AND 
                    SECURITY.

    (a) Authority To Present Certificate of Commendation.--The 
Secretary of Energy may present a certificate of commendation 
to any current or former employee of the Department of Energy, 
and any current or former employee of a Department contractor, 
whose service to the Department in matters relating to 
stockpile stewardship and security assisted the Department in 
furthering the national security interests of the United 
States.
    (b) Certificate.--The certificate of commendation presented 
to a current or former employee under subsection (a) shall 
include an appropriate citation of the service of the current 
or former employee described in that subsection, including a 
citation for dedication, intellect, and sacrifice in furthering 
the national security interests of the United States by 
maintaining a strong, safe, and viable United States nuclear 
deterrent during the Cold War or thereafter.
    (c) Department of Energy Defined.--For purposes of this 
section, the term ``Department of Energy'' includes any 
predecessor agency of the Department of Energy.

                   Subtitle B--Education and Training

SEC. 4621. EXECUTIVE MANAGEMENT TRAINING IN THE DEPARTMENT OF ENERGY.

  (a) Establishment of Training Program.--The Secretary of 
Energy shall establish and implement a management training 
program for personnel of the Department of Energy involved in 
the management of atomic energy defense activities.
  (b) Training Provisions.--The training program shall at a 
minimum include instruction in the following areas:
          (1) Department of Energy policy and procedures for 
        management and operation of atomic energy defense 
        facilities.
          (2) Methods of evaluating technical performance.
          (3) Federal and State environmental laws and 
        requirements for compliance with such environmental 
        laws, including timely compliance with reporting 
        requirements in such laws.
          (4) The establishment of program milestones and 
        methods to evaluate success in meeting such milestones.
          (5) Methods for conducting long-range technical and 
        budget planning.
          (6) Procedures for reviewing and applying innovative 
        technology to environmental restoration and defense 
        waste management.

SEC. 4622. STOCKPILE STEWARDSHIP RECRUITMENT AND TRAINING PROGRAM.

    (a) Conduct of Program.--(1) As part of the stockpile 
stewardship program established pursuant to section 4201, the 
Secretary of Energy shall conduct a stockpile stewardship 
recruitment and training program at the Sandia National 
Laboratories, the Lawrence Livermore National Laboratory, and 
the Los Alamos National Laboratory.
    (2) The recruitment and training program shall be conducted 
in coordination with the Chairman of the Joint Nuclear Weapons 
Council established by section 179 of title 10, United States 
Code, and the directors of the laboratories referred to in 
paragraph (1).
    (b) Support of Dual-Use Programs.--(1) As part of the 
recruitment and training program, the directors of the 
laboratories referred to in subsection (a)(1) may employ 
undergraduate students, graduate students, and postdoctoral 
fellows to carry out research sponsored by such laboratories 
for military or nonmilitary dual-use programs related to 
nuclear weapons stockpile stewardship.
    (2) Of the amounts authorized to be appropriated to the 
Secretary of Energy in section 3101(a)(1) of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337) for weapons activities for core research and development 
and allocated by the Secretary for education initiatives, 
$5,000,000 shall be available for employing students and 
fellows to carry out research referred to in paragraph (1). The 
amount available under this paragraph shall be allocated 
equally among the laboratories referred to in subsection 
(a)(1).
    (c) Establishment of Retiree Corps.--As part of the 
training and recruitment program, the Secretary, in 
coordination with the directors of the laboratories referred to 
in subsection (a)(1), shall establish for the laboratories a 
retiree corps of retired scientists who have expertise in 
research and development of nuclear weapons. The directors may 
employ the retired scientists on a part-time basis to provide 
appropriate assistance on nuclear weapons issues, to contribute 
relevant information to be archived, and to help to provide 
training to other scientists.
    (d) Report.--(1) Not later than February 1, 1995, the 
Secretary shall submit to the Committees on Armed Services of 
the Senate and House of Representatives a report on the 
demographic trends of the personnel of the laboratories 
referred to in subsection (a)(1) and on actions taken by the 
Department of Energy to remedy identified deficiencies in 
various skill areas.
    (2) The report shall be prepared in coordination with the 
Chairman of the Joint Nuclear Weapons Council and the directors 
of the laboratories. Information included in the report shall 
be aggregated and compiled into statistical categories.
    (3) The report shall include the following:
            (A) An inventory of the weapons-related tasks that 
        the laboratories need to perform to support their 
        nuclear weapons responsibilities.
            (B) An inventory of the skills necessary to 
        complete the weapons-related tasks referred to in 
        subparagraph (A).
            (C) For each laboratory, the number of scientists 
        needed in each skill area to perform such tasks.
            (D) The number of the scientists providing services 
        in each skill area at each laboratory, stated by age.
            (E) An assessment of which skill areas are 
        understaffed.
            (F) The number of scientists entering the weapons 
        program at each laboratory, and their skill areas.
            (G) The number of full-time equivalent personnel 
        with weapon skills, their distribution by skill and, 
        for each such skill, their distribution by age.
            (H) The number of scientists retiring from the 
        weapons program in the five-year period ending on the 
        date of the report and the skill areas in which they 
        worked in the year preceding their retirement.
            (I) Based on the information contained in 
        subparagraphs (A) through (H), a projection of the 
        skills areas that will become understaffed in the five 
        years following the date of the report.
            (J) A statement of alternative actions that may be 
        taken to retain and recruit scientists for the weapons 
        programs at the laboratories in order to preserve a 
        sufficient skill base and to fulfill stockpile 
        stewardship responsibilities.
            (K) Any plans of the Secretary to take any of the 
        alternative actions referred to in subparagraph (J).

SEC. 4623. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS CRITICAL TO THE 
                    DEPARTMENT OF ENERGY NUCLEAR WEAPONS COMPLEX.

    (a) In General.--The Secretary of Energy shall conduct a 
fellowship program for the development of skills critical to 
the ongoing mission of the Department of Energy nuclear weapons 
complex. Under the fellowship program, and research assistance 
to eligible individuals to facilitate the development by such 
individuals of skills critical to maintaining the ongoing 
mission of the Department of Energy nuclear weapons complex.
    (b) Eligible Individuals.--Individuals eligible for 
participation in the fellowship program are United States 
citizens who are the following:
            (1) Students pursuing graduate degrees in fields of 
        science or engineering that are related to nuclear 
        weapons engineering or to the science and technology 
        base of the Department of Energy.
            (2) Individuals engaged in postdoctoral studies in 
        such fields.
    (c) Covered Facilities.--The Secretary shall carry out the 
fellowship program at or in connection with the following 
facilities:
            (1) The Kansas City Plant, Kansas City, Missouri.
            (2) The Pantex Plant, Amarillo, Texas.
            (3) The Y-12 Plant, Oak Ridge, Tennessee.
            (4) The Savannah River Site, Aiken, South Carolina.
            (5) The Lawrence Livermore National Laboratory, 
        Livermore, California.
            (6) The Los Alamos National Laboratory, Los Alamos, 
        New Mexico.
            (7) The Sandia National Laboratories, Albuquerque, 
        New Mexico, and Livermore, California.
    (d) Administration.--The Secretary shall carry out the 
fellowship program at a facility referred to in subsection (c) 
through the stockpile manager of the facility.
    (e) Allocation of Funds.--The Secretary shall, in 
consultation with the Assistant Secretary of Energy for Defense 
Programs, allocate funds available for the fellowship program 
under subsection (f) among the facilities referred to in 
subsection (c). The Secretary shall make the allocation after 
evaluating an assessment by the weapons program director of 
each such facility of the personnel and critical skills 
necessary at the facility for carrying out the ongoing mission 
of the facility.
    (f) Agreement.--(1) The Secretary may allow an individual 
to participate in the program only if the individual signs an 
agreement described in paragraph (2).
    (2) An agreement referred to in paragraph (1) shall be in 
writing, shall be signed by the participant, and shall include 
the participant's agreement to serve, after completion of the 
course of study for which the assistance was provided, as a 
full-time employee in a position in the Department of Energy 
for a period of time to be established by the Secretary of 
Energy of not less than one year, if such a position is offered 
to the participant.

                       Subtitle C--Worker Safety

SEC. 4641. WORKER PROTECTION AT NUCLEAR WEAPONS FACILITIES.

    (a) Training Grant Program.--(1) The Secretary of Energy is 
authorized to award grants to organizations referred to in 
paragraph (2) in order for such organizations--
            (A) to provide training and education to persons 
        who are or may be engaged in hazardous substance 
        response or emergency response at Department of Energy 
        nuclear weapons facilities; and
            (B) to develop curricula for such training and 
        education.
    (2)(A) Subject to subparagraph (B), the Secretary is 
authorized to award grants under paragraph (1) to non-profit 
organizations that have demonstrated (as determined by the 
Secretary) capabilities in--
            (i) implementing and conducting effective training 
        and education programs relating to the general health 
        and safety of workers; and
            (ii) identifying, and involving in training, groups 
        of workers whose duties include hazardous substance 
        response or emergency response.
    (B) The Secretary shall give preference in the award of 
grants under this section to employee organizations and joint 
labor-management training programs that are grant recipients 
under section 126(g) of the Superfund Amendments and 
Reauthorization Act of 1986 (42 U.S.C. 9660a).
    (3) An organization awarded a grant under paragraph (1) 
shall carry out training, education, or curricula development 
pursuant to Department of Energy orders relating to employee 
safety training, including orders numbered 5480.4 and 5480.11.
    (b) Enforcement of Employee Safety Standards.--(1) Subject 
to paragraph (2), the Secretary shall assess civil penalties 
against any contractor of the Department of Energy who (as 
determined by the Secretary)--
            (A) employs individuals who are engaged in 
        hazardous substance response or emergency response at 
        Department of Energy nuclear weapons facilities; and
            (B) fails (i) to provide for the training of such 
        individuals to carry out such hazardous substance 
        response or emergency response, or (ii) to certify to 
        the Department of Energy that such employees are 
        adequately trained for such response pursuant to orders 
        issued by the Department of Energy relating to employee 
        safety training (including orders numbered 5480.4 and 
        5480.11).
    (2) Civil penalties assessed under this subsection may not 
exceed $5,000 for each day in which a failure referred to in 
paragraph (1)(B) occurs.
    (c) Regulations.--The Secretary shall prescribe regulations 
to carry out this section.
    (d) Definitions.--For the purposes of this section, the 
term ``hazardous substance'' includes radioactive waste and 
mixed radioactive and hazardous waste.
    (e) Funding.--Of the funds authorized to be appropriated 
pursuant to section 3101(9)(A) of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993 (Public Law 
102-190), $10,000,000 may be used for the purpose of carrying 
out this section.

SEC. 4642. SAFETY OVERSIGHT AND ENFORCEMENT AT DEFENSE NUCLEAR 
                    FACILITIES.

    (a) Safety at Defense Nuclear Facilities.--The Secretary of 
Energy shall take appropriate actions to ensure that--
            (1) officials of the Department of Energy who are 
        responsible for independent oversight of matters 
        relating to nuclear safety at defense nuclear 
        facilities and enforcement of nuclear safety standards 
        at such facilities maintain independence from officials 
        who are engaged in, or who are advising persons who are 
        engaged in, management of such facilities;
            (2) the independent, internal oversight functions 
        carried out by the Department include activities 
        relating to--
                    (A) the assessment of the safety of defense 
                nuclear facilities;
                    (B) the assessment of the effectiveness of 
                Department program offices in carrying out 
                programs relating to the environment, safety, 
                health, and security at defense nuclear 
                facilities;
                    (C) the provision to the Secretary of 
                oversight reports that--
                            (i) contain validated technical 
                        information; and
                            (ii) provide a clear analysis of 
                        the extent to which line programs 
                        governing defense nuclear facilities 
                        meet applicable goals for the 
                        environment, safety, health, and 
                        security at such facilities; and
                    (D) the development of clear performance 
                standards to be used in assessing the adequacy 
                of the programs referred to in subparagraph 
                (C)(ii);
            (3) the Department has a system for bringing issues 
        relating to nuclear safety at defense nuclear 
        facilities to the attention of the officials of the 
        Department (including the Secretary of Energy) who have 
        authority to resolve such issues in an adequate and 
        timely manner; and
            (4) an adequate number of qualified personnel of 
        the Department are assigned to oversee matters relating 
        to nuclear safety at defense nuclear facilities and 
        enforce nuclear safety standards at such facilities.
    (b) Report.--Not later than January 5, 1995, the Secretary 
shall submit to Congress a report describing the following:
            (1) The actions that the Secretary has taken or 
        will take to fulfill the requirements set forth in 
        paragraphs (1), (2), and (3) of subsection (a).
            (2) The actions in addition to the actions 
        described under paragraph (1) that the Secretary could 
        take in order to fulfill such requirements.
            (3) The respective roles with regard to nuclear 
        safety at defense nuclear facilities of the following 
        officials:
                    (A) The Associate Deputy Secretary of 
                Energy for Field Management.
                    (B) The Assistant Secretary of Energy for 
                Defense Programs.
                    (C) The Assistant Secretary of Energy for 
                Environmental Restoration and Waste Management.

SEC. 4643. PROGRAM TO MONITOR DEPARTMENT OF ENERGY WORKERS EXPOSED TO 
                    HAZARDOUS AND RADIOACTIVE SUBSTANCES.

    (a) In General.--The Secretary shall establish and carry 
out a program for the identification and on-going medical 
evaluation of current and former Department of Energy employees 
who are subject to significant health risks as a result of the 
exposure of such employees to hazardous or radioactive 
substances during such employment.
    (b) Implementation of Program.--(1) The Secretary shall, 
with the concurrence of the Secretary of Health and Human 
Services, issue regulations under which the Secretary shall 
implement the program. Such regulations shall, to the extent 
practicable, provide for a process to--
            (A) identify the hazardous substances and 
        radioactive substances to which current and former 
        Department of Energy employees may have been exposed as 
        a result of such employment;
            (B) identify employees referred to in subparagraph 
        (A) who received a level of exposure identified under 
        paragraph (2)(B);
            (C) determine the appropriate number, scope, and 
        frequency of medical evaluations and laboratory tests 
        to be provided to employees who have received a level 
        of exposure identified under paragraph (2)(B) to permit 
        the Secretary to evaluate fully the extent, nature, and 
        medical consequences of such exposure;
            (D) make available the evaluations and tests 
        referred to in subparagraph (C) to the employees 
        referred to in such subparagraph;
            (E) ensure that privacy is maintained with respect 
        to medical information that personally identifies any 
        such employee; and
            (F) ensure that employee participation in the 
        program is voluntary.
    (2)(A) In determining the most appropriate means of 
carrying out the activities referred to in subparagraphs (A) 
through (D) of paragraph (1), the Secretary shall consult with 
the Secretary of Health and Human Services under the agreement 
referred to in subsection (c).
    (B) The Secretary of Health and Human Services, with the 
assistance of the Director of the Centers for Disease Control 
and the Director of the National Institute for Occupational 
Safety and Health, and the Secretary of Labor shall identify 
the levels of exposure to the substances referred to in 
subparagraph (A) of paragraph (1) that present employees 
referred to in such subparagraph with significant health risks 
under Federal and State occupational, health, and safety 
standards;
    (3) In prescribing the guidelines referred to in paragraph 
(1), the Secretary shall consult with representatives of the 
following entities:
            (A) The American College of Occupational and 
        Environmental Medicine.
            (B) The National Academy of Sciences.
            (C) The National Council on Radiation Protection.
            (D) Any labor organization or other collective 
        bargaining agent authorized to act on the behalf of 
        employees of a Department of Energy defense nuclear 
        facility.
    (4) The Secretary shall provide for each employee 
identified under paragraph (1)(D) and provided with any medical 
examination or test under paragraph (1)(E) to be notified by 
the appropriate medical personnel of the identification and the 
results of any such examination or test. Each notification 
under this paragraph shall be provided in a form that is 
readily understandable by the employee.
    (5) The Secretary shall collect and assemble information 
relating to the examinations and tests carried out under 
paragraph (1)(E).
    (6) The Secretary shall commence carrying out the program 
described in this subsection not later than October 23, 1993.
    (c) Agreement with Secretary of Health and Human 
Services.--Not later than April 23, 1993, the Secretary shall 
enter into an agreement with the Secretary of Health and Human 
Services relating to the establishment and conduct of the 
program required and regulations issued under this section.
    (c) 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 of subcontractor 
        of the Department of Energy employed at such a 
        facility.

          TITLE XLVII--BUDGET AND FINANCIAL MANAGEMENT MATTERS

    Subtitle A--Recurring National Security Authorization Provisions

SEC. [3620.] 4701. DEFINITIONS.

    In this subtitle:
            (1) * * *

           *       *       *       *       *       *       *

SEC. [3621.] 4702. REPROGRAMMING.

    (a) In General.--Except as provided in subsection (b) and 
in [sections 3629 and 3630] sections 4710 and 4711, the 
Secretary of Energy may not use amounts appropriated pursuant 
to a DOE national security authorization for a program--
            (1) * * *

           *       *       *       *       *       *       *

SEC. [3622.] 4703. MINOR CONSTRUCTION PROJECTS.

    (a) * * *

           *       *       *       *       *       *       *

SEC. [3623.] 4704. LIMITS ON CONSTRUCTION PROJECTS.

    (a) * * *

           *       *       *       *       *       *       *

SEC. [3624.] 4705. FUND TRANSFER AUTHORITY.

    (a) * * *

           *       *       *       *       *       *       *

SEC. [3625.] 4706. CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Conceptual Design.--
            (1) * * *

           *       *       *       *       *       *       *

            (3) Exceptions.--The requirement in paragraph (1) 
        does not apply to a request for funds--
                    (A) * * *
                    (B) for emergency planning, design, and 
                construction activities under section [3626] 
                4707.

           *       *       *       *       *       *       *

SEC. [3626.] 4707. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND 
                    CONSTRUCTION ACTIVITIES.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Specific Authority.--The requirement of section 
[3625(b)(2)] 4706(b)(2) does not apply to emergency planning, 
design, and construction activities conducted under this 
section.

SEC. [3627.] 4708. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS.

    In carrying out programs necessary for national security, 
the authority of the Secretary of Energy to carry out plant 
projects includes authority for maintenance, restoration, 
planning, construction, acquisition, modification of 
facilities, and the continuation of projects authorized in 
prior years, and land acquisition related thereto.

[SEC. 3628. AVAILABILITY OF FUNDS.

    [(a) In General.--Except as provided in subsection (b), 
amounts appropriated pursuant to a DOE national security 
authorization for operation and maintenance or for plant 
projects may, when so specified in an appropriations Act, 
remain available until expended.
    [(b) Exception for Program Direction Funds.--Amounts 
appropriated for program direction pursuant to a DOE national 
security athorization for a fiscal year shall remain available 
to be obligated only until the end of that fiscal year.]

SEC. 4709. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), 
amounts appropriated pursuant to a DOE national security 
authorization for a fiscal year--
            (1) shall remain available to be expended only in 
        that fiscal year and the two succeeding fiscal years, 
        in the case of amounts for the National Nuclear 
        Security Administration; and
            (2) may, when so specified in an appropriations 
        Act, remain available until expended, in all other 
        cases.
    (b) Program Direction.--Amounts appropriated pursuant to a 
DOE national security authorization for a fiscal year for 
program direction shall remain available to be obligated only 
until the end of that fiscal year.

SEC. [3629.] 4710. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Exemption From Reprogramming Requirements.--The 
requirements of section [3621] 4702 shall not apply to 
transfers of funds pursuant to subsection (a).

           *       *       *       *       *       *       *

SEC. [3630.] 4711. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Exemption From Reprogramming Requirements.--The 
requirements of section [3621] 4702 shall not apply to 
transfers of funds pursuant to subsection (a).

           *       *       *       *       *       *       *

SEC. [3631.] 4712. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
                    OF THE DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriation Acts and section 
[3621] 4702, amounts appropriated pursuant to a DOE national 
security authorization for management and support activities 
and for general plant projects are available for use, when 
necessary, in connection with 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.

    (a) Restriction.--Funds appropriated to the Department of 
Energy for the Naval Nuclear Propulsion Program or the nuclear 
weapons programs or other atomic energy defense activities of 
the Department of Energy may not be used to pay a penalty, 
fine, or forfeiture in regard to a defense activity or facility 
of the Department of Energy due to a failure to comply with any 
environmental requirement.
    (b) Exception.--Subsection (a) shall not apply with respect 
to an environmental requirement if--
            (1) the President fails to request funds for 
        compliance with the environmental requirement; or
            (2) the Congress has appropriated funds for such 
        purpose (and such funds have not been sequestered, 
        deferred, or rescinded) and the Secretary of Energy 
        fails to use the funds for such purpose.

SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER CLEAN AIR 
                    ACT.

    None of the funds authorized to be appropriated by the 
Department of Energy National Security and Military 
Applications of Nuclear Energy Authorization Act of 1981 
(Public Law 96-540) or any other Act may be used to pay any 
penalty, fine, forfeiture, or settlement resulting from a 
failure to comply with the Clean Air Act (42 U.S.C. 7401 et 
seq.) with respect to any defense activity of the Department of 
Energy if (1) the Secretary finds that compliance is physically 
impossible within the time prescribed for compliance, or (2) 
the President has specifically requested appropriations for 
compliance and the Congress has failed to appropriate funds for 
such purpose.

                       Subtitle C--Other Matters

SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS FOR 
                    COMMON DEFENSE AND SECURITY PROGRAMS.

    The Secretary shall submit to the Congress for fiscal year 
1980, and for each subsequent fiscal year, a single request for 
authorizations for appropriations for all programs of the 
Department of Energy involving scientific research and 
development in support of the armed forces, military 
applications of nuclear energy, strategic and critical 
materials necessary for the common defense, and other programs 
which involve the common defense and security of the United 
States.

                  TITLE XLVIII--ADMINISTRATIVE MATTERS

                         Subtitle A--Contracts

SEC. 4801. COSTS NOT ALLOWED UNDER COVERED CONTRACTS.

    (a) In General.--The following costs are not allowable 
under a covered contract:
            (1) Costs of entertainment, including amusement, 
        diversion, and social activities and any costs directly 
        associated with such costs (such as tickets to shows or 
        sports events, meals, lodging, rentals, transportation, 
        and gratuities).
            (2) Costs incurred to influence (directly or 
        indirectly) legislative action on any matter pending 
        before Congress or a State legislature.
            (3) Costs incurred in defense of any civil or 
        criminal fraud proceeding or similar proceeding 
        (including filing of any false certification) brought 
        by the United States where the contractor is found 
        liable or has pleaded nolo contendere to a charge of 
        fraud or similar proceeding (including filing of false 
        certification).
            (4) Payments of fines and penalties resulting from 
        violations of, or failure to comply with, Federal, 
        State, local, or foreign laws and regulations, except 
        when incurred as a result of compliance with specific 
        terms and conditions of the contract or specific 
        written instructions from the contracting officer 
        authorizing in advance such payments in accordance with 
        applicable regulations of the Secretary of Energy.
            (5) Costs of membership in any social, dining, or 
        country club or organization.
            (6) Costs of alcoholic beverages.
            (7) Contributions or donations, regardless of the 
        recipient.
            (8) Costs of advertising designed to promote the 
        contractor or its products.
            (9) Costs of promotional items and memorabilia, 
        including models, gifts, and souvenirs.
            (10) Costs for travel by commercial aircraft or by 
        travel by other than common carrier that is not 
        necessary for the performance of the contract and the 
        cost of which exceeds the amount of the standard 
        commercial fare.
    (b)(1) Regulations.--Not later than 150 days after November 
8, 1985, the Secretary of Energy shall prescribe regulations to 
implement this section. Such regulations may establish 
appropriate definitions, exclusions, limitations, and 
qualifications. Such regulations shall be published in 
accordance with section 22 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 418b).
    (2) In any regulations implementing subsection (a)(2), the 
Secretary may not treat as not allowable (by reason of such 
subsection) the following costs of a contractor:
            (A) Costs of providing to Congress or a State 
        legislature, in response to a request from Congress or 
        a State legislature, information of a factual, 
        technical, or scientific nature, or advice of experts, 
        with respect to topics directly related to the 
        performance of the contract.
            (B) Costs for transportation, lodging, or meals 
        incurred for the purpose of providing such information 
        or advice.
    (c) Definition.--In this section, ``covered contract'' 
means a contract for an amount more than $100,000 entered into 
by the Secretary of Energy obligating funds appropriated for 
national security programs of the Department of Energy.
    (d) Effective Date.--Subsection (a) shall apply with 
respect to costs incurred under a covered contract on or after 
30 days after the regulations required by subsection (b) are 
issued.

SEC. 4802. PROHIBITION AND REPORT ON BONUSES TO CONTRACTORS OPERATING 
                    DEFENSE NUCLEAR FACILITIES.

    (a) Prohibition.--The Secretary of Energy may not provide 
any bonuses, award fees, or other form of performance- or 
production-based awards to a contractor operating a Department 
of Energy defense nuclear facility unless, in evaluating the 
performance or production under the contract, the Secretary 
considers the contractor's compliance with all applicable 
environmental, safety, and health statutes, regulations, and 
practices for determining both the size of, and the 
contractor's qualification for, such bonus, award fee, or other 
award. The prohibition in this subsection applies with respect 
to contracts entered into, or contract options exercised, after 
November 29, 1989.
    (b) Report on Rocky Flats Bonuses.--The Secretary of Energy 
shall investigate the payment, from 1981 to 1988, of production 
bonuses to Rockwell International, the contractor operating the 
Rocky Flats Plant (Golden, Colorado), for purposes of 
determining whether the payment of such bonuses was made under 
fraudulent circumstances. Not later than May 29, 1990, the 
Secretary shall submit to the Committees on Armed Services of 
the Senate and House of Representatives a report on the results 
of that investigation, including the Secretary's conclusions 
and recommendations.
    (c) Definition.--In this section, the term ``Department of 
Energy defense nuclear facility'' has the meaning given such 
term by section 318 of the Atomic Energy Act of 1954 (42 U.S.C. 
2286g).
    (d) Regulations.--The Secretary of Energy shall promulgate 
regulations to implement subsection (a) not later than March 1, 
1990.

SEC. 4803. CONTRACTOR LIABILITY FOR INJURY OR LOSS OF PROPERTY ARISING 
                    OUT OF ATOMIC WEAPONS TESTING PROGRAMS.

    (a) Short Title.--This section may be cited as the ``Atomic 
Testing Liability Act''.
    (b) Federal Remedies Applicable; Exclusiveness of 
Remedies.--
            (1) Remedy.--The remedy against the United States 
        provided by sections 1346(b) and 2672 of title 28, 
        United States Code, by the Act of March 9, 1920 (46 
        U.S.C. App. 741-752), or by the Act of March 3, 1925 
        (46 U.S.C. App. 781-790), as appropriate, for injury, 
        loss of property, personal injury, or death shall apply 
        to any civil action for injury, loss of property, 
        personal injury, or death due to exposure to radiation 
        based on acts or omissions by a contractor in carrying 
        out an atomic weapons testing program under a contract 
        with the United States.
            (2) Exclusivity.--The remedies referred to in 
        paragraph (1) shall be exclusive of any other civil 
        action or proceeding for the purpose of determining 
        civil liability arising from any act or omission of the 
        contractor without regard to when the act or omission 
        occurred. The employees of a contractor referred to in 
        paragraph (1) shall be considered to be employees of 
        the Federal Government, as provided in section 2671 of 
        title 28, United States Code, for the purposes of any 
        such civil action or proceeding; and the civil action 
        or proceeding shall proceed in the same manner as any 
        action against the United States filed pursuant to 
        section 1346(b) of such title and shall be subject to 
        the limitations and exceptions applicable to those 
        actions.
    (c) Procedure.--A contractor against whom a civil action or 
proceeding described in subsection (b) is brought shall 
promptly deliver all processes served upon that contractor to 
the Attorney General of the United States. Upon certification 
by the Attorney General that the suit against the contractor is 
within the provisions of subsection (b), a civil action or 
proceeding commenced in a State court shall be removed without 
bond at any time before trial by the Attorney General to the 
district court of the United States for the district and 
division embracing the place wherein it is pending and the 
proceedings shall be deemed a tort action brought against the 
United States under the provisions of section 1346(b), 2401(b), 
or 2402, or sections 2671 through 2680 of title 28, United 
States Code. For purposes of removal, the certification by the 
Attorney General under this subsection establishes contractor 
status conclusively.
    (d) Actions Covered.--The provisions of this section shall 
apply to any action, within the provisions of subsection (b), 
which is pending on November 5, 1990, or commenced on or after 
such date. Notwithstanding section 2401(b) of title 28, United 
States Code, if a civil action or proceeding to which this 
section applies is pending on the date of the enactment of this 
Act and is dismissed because the plaintiff in such action or 
proceeding did not file an administrative claim as required by 
section 2672 of that title, the plaintiff in that action or 
proceeding shall have 30 days from the date of the dismissal or 
two years from the date upon which the claim accrued, whichever 
is later, to file an administrative claim, and any claim or 
subsequent civil action or proceeding shall thereafter be 
subject to the provisions of section 2401(b) of title 28, 
United States Code.
    (e) ``Contractor'' Defined.--For purposes of this section, 
the term ``contractor'' includes a contractor or cost 
reimbursement subcontractor of any tier participating in the 
conduct of the United States atomic weapons testing program for 
the Department of Energy (or its predecessor agencies, 
including the Manhattan Engineer District, the Atomic Energy 
Commission, and the Energy Research and Development 
Administration). Such term also includes facilities which 
conduct or have conducted research concerning health effects of 
ionizing radiation in connection with the testing under 
contract with the Department of Energy (or any of its 
predecessor agencies).

                  Subtitle B--Research and Development

SEC. 4811. LABORATORY-DIRECTED RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Authority.--Government-owned, contractor-operated 
laboratories that are funded out of funds available to the 
Department of Energy for national security programs are 
authorized to carry out laboratory-directed research and 
development.
    (b) Regulations.--The Secretary of Energy shall prescribe 
regulations for the conduct of laboratory-directed research and 
development at such laboratories.
    (c) Funding.--Of the funds provided by the Department of 
Energy to such laboratories for national security activities, 
the Secretary shall provide a specific amount, not to exceed 6 
percent of such funds, to be used by such laboratories for 
laboratory-directed research and development.
    (d) Definition.--For purposes of this section, the term 
``laboratory-directed research and development'' means research 
and development work of a creative and innovative nature which, 
under the regulations prescribed pursuant to subsection (b), is 
selected by the director of a laboratory for the purpose of 
maintaining the vitality of the laboratory in defense-related 
scientific disciplines.

SEC. 4812. LIMITATIONS ON USE OF FUNDS FOR LABORATORY DIRECTED RESEARCH 
                    AND DEVELOPMENT PURPOSES.

    (a) General Limitations.--(1) No funds authorized to be 
appropriated or otherwise made available to the Department of 
Energy in any fiscal year after fiscal year 1997 for weapons 
activities may be obligated or expended for activities under 
the Department of Energy Laboratory Directed Research and 
Development Program, or under any Department of Energy 
technology transfer program or cooperative research and 
development agreement, unless such activities support the 
national security mission of the Department of Energy.
    (2) No funds authorized to be appropriated or otherwise 
made available to the Department of Energy in any fiscal year 
after fiscal year 1997 for environmental restoration, waste 
management, or nuclear materials and facilities stabilization 
may be obligated or expended for activities under the 
Department of Energy Laboratory Directed Research and 
Development Program, or under any Department of Energy 
technology transfer program or cooperative research and 
development agreement, unless such activities support the 
environmental restoration mission, waste management mission, or 
materials stabilization mission, as the case may be, of the 
Department of Energy.
    (b) Limitation in Fiscal Year 1998 Pending Submittal of 
Annual Report.--Not more than 30 percent of the funds 
authorized to be appropriated or otherwise made available to 
the Department of Energy in fiscal year 1998 for laboratory 
directed research and development may be obligated or expended 
for such research and development until the Secretary of Energy 
submits to the congressional defense committees the report 
required by section 4812A(b) in 1998.
    (c) Submittal Date for Annual Report on Laboratory Directed 
Research and Development Program.--Paragraph (1) of 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) 
is amended by striking out ``The Secretary of Energy shall 
annually submit'' and inserting in lieu thereof ``Not later 
than February 1 each year, the Secretary of Energy shall 
submit''.
    (d) Assessment of Funding Level for Laboratory Directed 
Research and Development.--The Secretary shall include in the 
report submitted under such section 4812A(b)(1) in 1998 an 
assessment of the funding required to carry out laboratory 
directed research and development, including a recommendation 
for the percentage of the funds provided to Government-owned, 
contractor-operated laboratories for national security 
activities that should be made available for such research and 
development under section 4811(c).
    (e) Definition.--In this section, the term ``laboratory 
directed research and development'' has the meaning given that 
term in section 4811(d).

SEC. 4812A. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND 
                    DEVELOPMENT PURPOSES.

    (a) Limitation.--No funds authorized to be appropriated or 
otherwise made available to the Department of Energy for fiscal 
year 1997 under section 3101 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201) may 
be obligated or expended for activities under the Department of 
Energy Laboratory Directed Research and Development Program, or 
under any Department of Energy technology transfer program or 
cooperative research and development agreement, unless such 
activities support the national security mission of the 
Department of Energy.
    (b) Annual Report.--(1) Not later than February 1 each 
year, the Secretary of Energy shall submit to the congressional 
defense committees a report on the funds expended during the 
preceding fiscal year on activities under the Department of 
Energy Laboratory Directed Research and Development Program. 
The purpose of the report is to permit an assessment of the 
extent to which such activities support the national security 
mission of the Department of Energy.
    (2) Each report shall be prepared by the officials 
responsible for Federal oversight of the funds expended on 
activities under the program.
    (3) Each report shall set forth the criteria utilized by 
the officials preparing the report in determining whether or 
not the activities reviewed by such officials support the 
national security mission of the Department.

SEC. 4813. CRITICAL TECHNOLOGY PARTNERSHIPS.

    (a) Partnerships.--For the purpose of facilitating the 
transfer of technology, the Secretary of Energy shall ensure, 
to the maximum extent practicable, that atomic energy defense 
activities research on, and development of, any dual-use 
critical technology is conducted through cooperative research 
and development agreements, or other arrangements, that involve 
laboratories of the Department of Energy and other entities.
    (b) Definitions.--In this section:
            (1) The term ``dual-use critical technology'' means 
        a technology--
                    (A) that is critical to atomic energy 
                defense activities, as determined by the 
                Secretary of Energy;
                    (B) that has military applications and 
                nonmilitary applications; and
                    (C) that either--
                            (i)(I) appears on the list of 
                        national critical technologies 
                        contained in a biennial report on 
                        national critical technologies 
                        submitted to Congress by the President 
                        pursuant to section 603(d) of the 
                        National Science and Technology Policy, 
                        Organization, and Priorities Act of 
                        1976 (42 U.S.C. 6683(d)); and
                            (II) has not been expressly deleted 
                        from such list by such a report 
                        subsequently submitted to Congress by 
                        the President; or
                            (ii)(I) appears on the list of 
                        critical technologies contained in an 
                        annual defense critical technologies 
                        plan submitted to Congress by the 
                        Secretary of Defense pursuant to 
                        section 2506 of title 10, United States 
                        Code; and
                            (II) has not been expressly deleted 
                        from such list by such a plan 
                        subsequently submitted to Congress by 
                        the Secretary.
            (2) The term ``cooperative research and development 
        agreement'' has the meaning given that term by section 
        12(d) of the Stevenson-Wydler Technology Innovation Act 
        of 1980 (15 U.S.C. 3710a(d)).
            (3) The term ``other entities'' means--
                    (A) firms, or a consortium of firms, that 
                are eligible to participate in a partnership or 
                other arrangement with a laboratory of the 
                Department of Energy, as determined in 
                accordance with applicable law and regulations; 
                or
                    (B) firms, or a consortium of firms, 
                described in subparagraph (A) in combination 
                with one or more of the following:
                            (i) Institutions of higher 
                        education in the United States.
                            (ii) Departments and agencies of 
                        the Federal Government other than the 
                        Department of Energy.
                            (iii) Agencies of State 
                        Governments.
                            (iv) Any other persons or entities 
                        that may be eligible and appropriate, 
                        as determined in accordance with 
                        applicable laws and regulations.
            (4) The term ``atomic energy defense activities'' 
        does not include activities covered by Executive Order 
        No. 12344, dated February 1, 1982, pertaining to the 
        Naval nuclear propulsion program.

SEC. 4814. UNIVERSITY-BASED RESEARCH COLLABORATION PROGRAM.

    (a) Findings.--Congress makes the following findings:
            (1) The maintenance of scientific and engineering 
        competence in the United States is vital to long-term 
        national security and the defense and national security 
        missions of the Department of Energy.
            (2) Engaging the universities and colleges of the 
        Nation in research on long-range problems of vital 
        national security interest will be critical to solving 
        the technology challenges faced within the defense and 
        national security programs of the Department of Energy 
        in the next century.
            (3) Enhancing collaboration among the national 
        laboratories, universities and colleges, and industry 
        will contribute significantly to the performance of 
        these Department of Energy missions.
    (b) Program.--The Secretary of Energy shall establish a 
university program at a location that can develop the most 
effective collaboration among national laboratories, 
universities and colleges, and industry in support of 
scientific and engineering advancement in key Department of 
Energy defense and national security program areas.
    (c) Funding.--Of the funds authorized to be appropriated in 
title XXXI of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85) to the Department of Energy for 
fiscal year 1998, the Secretary shall make $5,000,000 available 
for the establishment and operation of the program under 
subsection (b).

                   Subtitle C--Facilities Management

SEC. 4831. TRANSFERS OF REAL PROPERTY AT CERTAIN DEPARTMENT OF ENERGY 
                    FACILITIES.

    (a) Transfer Regulations.--(1) The Secretary of Energy 
shall prescribe regulations for the transfer by sale or lease 
of real property at Department of Energy defense nuclear 
facilities for the purpose of permitting the economic 
development of the property.
    (2) The Secretary of Energy may not transfer real property 
under the regulations prescribed under paragraph (1) until--
            (A) the Secretary submits a notification of the 
        proposed transfer to the congressional defense 
        committees; and
            (B) a period of 30 days has elapsed following the 
        date on which the notification is submitted.
    (b) Indemnification.--(1) Except as provided in paragraph 
(3) and subject to subsection (c), in the sale or lease of real 
property pursuant to the regulations prescribed under 
subsection (a), the Secretary of Energy may hold harmless and 
indemnify a person or entity described in paragraph (2) against 
any claim for injury to person or property that results from 
the release or threatened release of a hazardous substance or 
pollutant or contaminant as a result of Department of Energy 
activities at the defense nuclear facility on which the real 
property is located. Before entering into any agreement for 
such a sale or lease, the Secretary shall notify the person or 
entity that the Secretary has authority to provide 
indemnification to the person or entity under this subsection. 
The Secretary shall include in any agreement for such a sale or 
lease a provision stating whether indemnification is or is not 
provided.
    (2) Paragraph (1) applies to the following persons and 
entities:
            (A) Any State that acquires ownership or control of 
        real property of a defense nuclear facility.
            (B) Any political subdivision of a State that 
        acquires such ownership or control.
            (C) Any other person or entity that acquires such 
        ownership or control.
    (3) To the extent the persons and entities described in 
paragraph (2) contributed to any such release or threatened 
release, paragraph (1) shall not apply.
    (c) Conditions.--(1) No indemnification on a claim for 
injury may be provided under this section unless the person or 
entity making a request for the indemnification--
            (A) notifies the Secretary of Energy in writing 
        within two years after such claim accrues;
            (B) furnishes to the Secretary copies of pertinent 
        papers received by the person or entity;
            (C) furnishes evidence or proof of the claim;
            (D) provides, upon request by the Secretary, access 
        to the records and personnel of the person or entity 
        for purposes of defending or settling the claim; and
            (E) begins action within six months after the date 
        of mailing, by certified or registered mail, of notice 
        of final denial of the claim by the Secretary.
    (2) For purposes of paragraph (1)(A), the date on which a 
claim accrues is the date on which the person asserting the 
claim knew (or reasonably should have known) that the injury to 
person or property referred to in subsection (b)(1) was caused 
or contributed to by the release or threatened release of a 
hazardous substance, pollutant, or contaminant as a result of 
Department of Energy activities at the defense nuclear facility 
on which the real property is located.
    (d) Authority of Secretary of Energy.--(1) In any case in 
which the Secretary of Energy determines that the Secretary may 
be required to indemnify a person or entity under this section 
for any claim for injury to person or property referred to in 
subsection (b)(1), the Secretary may settle or defend the claim 
on behalf of that person or entity.
    (2) In any case described in paragraph (1), if the person 
or entity that the Secretary may be required to indemnify does 
not allow the Secretary to settle or defend the claim, the 
person or entity may not be indemnified with respect to that 
claim under this section.
    (e) Relationship to Other Law.--Nothing in this section 
shall be construed as affecting or modifying in any way section 
120(h) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620(h)).
    (f) Definitions.--In this section:
            (1) The term ``defense nuclear facility'' has the 
        meaning provided by the term ``Department of Energy 
        defense nuclear facility'' in section 318 of the Atomic 
        Energy Act of 1954 (42 U.S.C. 2286g).
            (2) The terms ``hazardous substance'', ``release'', 
        and ``pollutant or contaminant'' have the meanings 
        provided by section 101 of the Comprehensive 
        Environmental Response, Compensation, and Liability Act 
        of 1980 (42 U.S.C. 9601).

SEC. 4832. ENGINEERING AND MANUFACTURING RESEARCH, DEVELOPMENT, AND 
                    DEMONSTRATION BY PLANT MANAGERS OF CERTAIN NUCLEAR 
                    WEAPONS PRODUCTION PLANTS.

    (a) Authority for Programs at Nuclear Weapons Productions 
Facilities.--The Administrator for Nuclear Security shall 
authorize the head of each nuclear weapons production facility 
to establish an Engineering and Manufacturing Research, 
Development, and Demonstration Program under this section.
    (b) Projects and Activities.--The projects and activities 
carried out through the program at a nuclear weapons production 
facility under this section shall support innovative or high-
risk design and manufacturing concepts and technologies with 
potentially high payoff for the nuclear weapons complex. Those 
projects and activities may include--
            (1) replacement of obsolete or aging design and 
        manufacturing technologies;
            (2) development of innovative agile manufacturing 
        techniques and processes; and
            (3) training, recruitment, or retention of 
        essential personnel in critical engineering and 
        manufacturing disciplines.
    (c) Funding.--The Administrator may authorize the head of 
each nuclear weapons production facility to obligate up to 
$3,000,000 of funds within the Advanced Design and Production 
Technologies Campaign available for such facility during fiscal 
year 2001 to carry out projects and activities of the program 
under this section at that facility.
    (d) Report.--The Administrator for Nuclear Security shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives, 
not later than September 15, 2001, a report describing, for 
each nuclear weapons production facility, each project or 
activity for which funds were obligated under the program, the 
criteria used in the selection of each such project or 
activity, the potential benefits of each such project or 
activity, and the Administrator's recommendation concerning 
whether the program should be continued.
    (e) Definition.--For purposes of this section, the term 
``nuclear weapons production facility'' has the meaning given 
that term in section 3281(2) of the National Nuclear Security 
Administration Act (title XXXII of Public Law 106-65; 113 Stat. 
968; 50 U.S.C. 2471(2)).

SEC. 4833. PILOT PROGRAM RELATING TO USE OF PROCEEDS OF DISPOSAL OR 
                    UTILIZATION OF CERTAIN DEPARTMENT OF ENERGY ASSETS.

    (a) Purpose.--The purpose of this section is to encourage 
the Secretary of Energy to dispose of or otherwise utilize 
certain assets of the Department of Energy by making available 
to the Secretary the proceeds of such disposal or utilization 
for purposes of defraying the costs of such disposal or 
utilization.
    (b) Use of Proceeds To Defray Costs.--(1) Notwithstanding 
section 3302 of title 31, United States Code, the Secretary may 
retain from the proceeds of the sale, lease, or disposal of an 
asset under subsection (c) an amount equal to the cost of the 
sale, lease, or disposal of the asset. The Secretary shall 
utilize amounts retained under this paragraph to defray the 
cost of the sale, lease, or disposal.
    (2) For purposes of paragraph (1), the cost of a sale, 
lease, or disposal shall include--
            (A) the cost of administering the sale, lease, or 
        disposal;
            (B) the cost of recovering or preparing the asset 
        concerned for the sale, lease, or disposal; and
            (C) any other cost associated with the sale, lease, 
        or 
        disposal.
    (c) Covered Transactions.--Subsection (b) applies to the 
following transactions:
            (1) The sale of heavy water at the Savannah River 
        Site, South Carolina, that is under the jurisdiction of 
        the Defense Environmental Management Program.
            (2) The sale of precious metals that are under the 
        jurisdiction of the Defense Environmental Management 
        Program.
            (3) The lease of buildings and other facilities 
        located at the Hanford Reservation, Washington, that 
        are under the jurisdiction of the Defense Environmental 
        Management Program.
            (4) The lease of buildings and other facilities 
        located at the Savannah River Site that are under the 
        jurisdiction of the Defense Environmental Management 
        Program.
            (5) The disposal of equipment and other personal 
        property located at the Rocky Flats Defense 
        Environmental Technology Site, Colorado, that is under 
        the jurisdiction of the Defense Environmental 
        Management Program.
            (6) The disposal of materials at the National 
        Electronics Recycling Center, Oak Ridge, Tennessee that 
        are under the jurisdiction of the Defense Environmental 
        Management Program.
    (d) Applicability of Disposal Authority.--Nothing in this 
section shall be construed to limit the application of 
subchapter II of chapter 5 and section 549 of title 40, United 
States Code, to the disposal of equipment and other personal 
property covered by this section.
    (e) Report.--Not later than January 31, 1999, the Secretary 
shall submit to the congressional defense committees a report 
on amounts retained by the Secretary under subsection (b) 
during fiscal year 1998.

                       Subtitle D--Other Matters

SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.

    The Secretary of Energy shall submit to Congress every six 
months a report setting forth a description of, and the amount 
or value of, all local impact assistance provided during the 
preceding six months under section 4604(c)(6).

         TITLE XLIX--MATTERS RELATING TO PARTICULAR FACILITIES

              Subtitle A--Hanford Reservation, Washington

SEC. 4901. SAFETY MEASURES FOR WASTE TANKS AT HANFORD NUCLEAR 
                    RESERVATION.

    (a) Identification and Monitoring of Tanks.--Not later than 
February 3, 1991, the Secretary of Energy shall identify which 
single-shelled or double-shelled high-level nuclear waste tanks 
at the Hanford Nuclear Reservation, Richland, Washington, may 
have a serious potential for release of high-level waste due to 
uncontrolled increases in temperature or pressure. After 
completing such identification, the Secretary shall determine 
whether continuous monitoring is being carried out to detect a 
release or excessive temperature or pressure at each tank so 
identified. If such monitoring is not being carried out, as 
soon as practicable the Secretary shall install such 
monitoring, but only if a type of monitoring that does not 
itself increase the danger of a release can be installed.
    (b) Action Plans.--Not later than March 5, 1991, the 
Secretary of Energy shall develop action plans to respond to 
excessive temperature or pressure or a release from any tank 
identified under subsection (a).
    (c) Prohibition.--Beginning March 5, 1991, no additional 
high-level nuclear waste (except for small amounts removed and 
returned to a tank for analysis) may be added to a tank 
identified under subsection (a) unless the Secretary determines 
that no safer alternative than adding such waste to the tank 
currently exists or that the tank does not pose a serious 
potential for release of high-level nuclear waste.
    (d) Report.--Not later than May 5, 1991, the Secretary 
shall submit to Congress a report on actions taken to promote 
tank safety, including actions taken pursuant to this section, 
and the Secretary's timetable for resolving outstanding issues 
on how to handle the waste in such tanks.

SEC. 4902. PROGRAMS FOR PERSONS WHO MAY HAVE BEEN EXPOSED TO RADIATION 
                    RELEASED FROM HANFORD NUCLEAR RESERVATION.

    (a) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy under title XXXI of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-
510), the Secretary of Energy shall make available $3,000,000 
to the State of Washington, $1,000,000 to the State of Oregon, 
and $1,000,000 to the State of Idaho. Such funds shall be used 
to develop and implement programs for the benefit of persons 
who may have been exposed to radiation released from the 
Department of Energy Hanford Nuclear Reservation (Richland, 
Washington) between the years 1944 and 1972.
    (b) Programs.--The programs to be developed by the States 
may include only the following activities:
            (1) Preparing and distributing information on the 
        health effects of radiation to health care 
        professionals, and to persons who may have been exposed 
        to radiation.
            (2) Developing and implementing mechanisms for 
        referring persons who may have been exposed to 
        radiation to health care professionals with expertise 
        in the health effects of radiation.
            (3) Evaluating and, if feasible, implementing, 
        registration and monitoring of persons who may have 
        been exposed to radiation released from the Hanford 
        Nuclear Reservation.
    (c) Plan and Reports.--(1) The States of Washington, 
Oregon, and Idaho shall jointly develop a single plan for 
implementing this section.
    (2) Not later than May 5, 1991, such States shall submit to 
the Secretary of Energy and the Congress a copy of the plan 
developed under paragraph (1).
    (3) Not later than May 5, 1992, such States shall submit to 
the Secretary of Energy and the Congress a single report on the 
implementation of the plan developed under paragraph (1).
    (4) In developing and implementing the plan, such States 
shall consult with persons carrying out current radiation dose 
and epidemiological research programs (including the Hanford 
Thyroid Disease Study of the Centers for Disease Control and 
the Hanford Environmental Dose Reconstruction Project of the 
Department of Energy), and may not cause substantial damage to 
such research programs.
    (d) Prohibition on Disclosure of Exposure Information.--(1) 
Except as provided in paragraph (2), a person may not disclose 
to the public the following:
            (A) Any information obtained through a program that 
        identifies a person who may have been exposed to 
        radiation released from the Hanford Nuclear 
        Reservation.
            (B) Any information obtained through a program that 
        identifies a person participating in any of the 
        programs developed under this section.
            (C) The name, address, and telephone number of a 
        person requesting information referred to in subsection 
        (b)(1).
            (D) The name, address, and telephone number of a 
        person who has been referred to a health care 
        professional under subsection (b)(2).
            (E) The name, address, and telephone number of a 
        person who has been registered and monitored pursuant 
        to subsection (b)(3).
            (F) Information that identifies the person from 
        whom information referred to in this paragraph was 
        obtained under a program or any other third party 
        involved with, or identified by, any such information 
        so obtained.
            (G) Any other personal or medical information that 
        identifies a person or party referred to in 
        subparagraphs (A) through (F).
            (H) Such other information or categories of 
        information as the chief officers of the health 
        departments of the States of Washington, Oregon, and 
        Idaho jointly designate as information covered by this 
        subsection.
    (2) Information referred to in paragraph (1) may be 
disclosed to the public if the person identified by the 
information, or the legal representative of that person, has 
consented in writing to the disclosure.
    (3) The States of Washington, Oregon, and Idaho shall 
establish uniform procedures for carrying out this subsection, 
including procedures governing the following:
            (A) The disclosure of information under paragraph 
        (2).
            (B) The use of the Hanford Health Information 
        Network database.
            (C) The future disposition of the database.
            (D) Enforcement of the prohibition provided in 
        paragraph (1) on the disclosure of information 
        described in that paragraph.

SEC. 4903. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.

    (a) Establishment of Office of River Protection.--The 
Secretary of Energy shall establish an office at the Hanford 
Reservation, Richland, Washington, to be known as the ``Office 
of River Protection'' (in this section referred to as the 
``Office'').
    (b) Management and Responsibilities of Office.--(1) The 
Office shall be headed by a senior official of the Department 
of Energy, who shall report to the Assistant Secretary of 
Energy for Environmental Management.
    (2) The head of the Office shall be responsible for 
managing, consistent with the policy direction established by 
the Department, all aspects of the River Protection Project, 
Richland, Washington.
    (c) Department Responsibilities.--The Secretary shall 
provide the manager of the Office with the resources and 
personnel necessary to manage the tank waste privatization 
program at Hanford in an efficient and streamlined manner.
    (d) Integrated Management Plan.--Not later than November 
29, 2000, the Secretary shall submit to the Committee on Armed 
Services of the Senate and the Committees on Commerce and on 
National Security of the House of Representatives an integrated 
management plan for all aspects of the Hanford Tank Farm 
operations, including the roles, responsibilities, and 
reporting relationships of the Office.
    (e) Report.--Not later than 2 years after the commencement 
of operations of the Office, the Secretary shall submit to the 
committees referred to in subsection (d) a report describing--
            (1) any progress in or resulting from the 
        utilization of the Tank Waste Remediation System; and
            (2) any improvements in the management structure of 
        the Department at Hanford with respect to the Tank 
        Waste Remediation System as a result of the Office.
    (f) Termination.--(1) The Office shall terminate on the 
later to occur of the following dates:
            (A) September 30, 2010.
            (B) The date on which the Assistant Secretary of 
        Energy for Environmental Management determines, in 
        consultation with the head of the Office, that 
        continuation of the Office is no longer necessary to 
        carry out the responsibilities of the Department of 
        Energy under the Tri-Party Agreement.
    (2) The Assistant Secretary shall notify, in writing, the 
committees referred to in subsection (d) of a determination 
under paragraph (1).
    (3) In this subsection, the term ``Tri-Party Agreement'' 
means the Hanford Federal Facility Agreement and Consent Order 
entered into among the Department of Energy, the Environmental 
Protection Agency, and the State of Washington Department of 
Ecology.

SEC. 4904. RIVER PROTECTION PROJECT.

    The tank waste remediation system environmental project, 
Richland, Washington, including all programs relating to the 
retrieval and treatment of tank waste at the site at Hanford, 
Washington, under the management of the Office of River 
Protection, shall be known and designated as the ``River 
Protection Project''. Any reference to that project in any law, 
regulation, map, document, record, or other paper of the United 
States shall be considered to be a reference to the River 
Protection Project.

SEC. 4905. FUNDING FOR TERMINATION COSTS OF RIVER PROTECTION PROJECT, 
                    RICHLAND, WASHINGTON.

    The Secretary of Energy may not use appropriated funds to 
establish a reserve for the payment of any costs of termination 
of any contract relating to the River Protection Project, 
Richland, Washington (as designated by section 4904), that is 
terminated after October 30, 2000. Such costs may be paid 
from--
            (1) appropriations originally available for the 
        performance of the contract concerned;
            (2) appropriations currently available for 
        privatization initiatives in carrying out environmental 
        restoration and waste management activities necessary 
        for national security programs, and not otherwise 
        obligated; or
            (3) funds appropriated specifically for the payment 
        of such costs.

            Subtitle B--Savannah River Site, South Carolina

SEC. 4911. ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL NUCLEAR WASTE 
                    AT THE DEFENSE WASTE PROCESSING FACILITY, SAVANNAH 
                    RIVER SITE.

    The Secretary of Energy shall accelerate the schedule for 
the isolation of high-level nuclear waste in glass canisters at 
the Defense Waste Processing Facility at the Savannah River 
Site, South Carolina, if the Secretary determines that the 
acceleration of such schedule--
            (1) will achieve long-term cost savings to the 
        Federal Government; and
            (2) could accelerate the removal and isolation of 
        high-level nuclear waste from long-term storage tanks 
        at the site.

SEC. 4912. MULTI-YEAR PLAN FOR CLEAN-UP.

    The Secretary of Energy shall develop and implement a 
multi-year plan for the clean-up of nuclear waste at the 
Savannah River Site that results, or has resulted, from the 
following:
            (1) Nuclear weapons activities carried out at the 
        site.
            (2) The processing, treating, packaging, and 
        disposal of Department of Energy domestic and foreign 
        spent nuclear fuel rods at the site.

SEC. 4913. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF 
                    LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site, Aiken, South Carolina, 
and shall provide technical staff necessary to operate and so 
maintain such facilities.

SEC. 4913A. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF 
                    LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site, Aiken, South Carolina, 
and shall provide the technical staff necessary to operate and 
so maintain such facilities.

SEC. 4913B. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF 
                    LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site, Aiken, South Carolina, 
and shall provide technical staff necessary to operate and so 
maintain such facilities.

SEC. 4913C. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF 
                    LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site and shall provide 
technical staff necessary to operate and maintain such 
facilities at that state of readiness.

SEC. 4913D. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF 
                    LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the H-canyon facility and 
the F-canyon facility at the Savannah River Site, and shall 
provide technical staff necessary to operate and so maintain 
such facilities, pending the development and implementation of 
the plan referred to in section 4912.

SEC. 4914. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING F-CANYON 
                    FACILITY.

    No amounts authorized to be appropriated or otherwise made 
available for the Department of Energy by 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 may be 
obligated or expended for purposes of commencing the 
decommissioning of the F-canyon facility at the Savannah River 
Site until the Secretary of Energy and the Defense Nuclear 
Facilities Safety Board jointly 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 certification that all materials present in 
        the F-canyon facility as of the date of the 
        certification are safely stabilized.
            (2) A certification 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.
            (3) If the certification required by paragraph (2) 
        is that such requirements cannot be met through such 
        use of the H-canyon facility--
                    (A) an identification by the Secretary of 
                each such requirement that cannot be met 
                through such use of the H-canyon facility; and
                    (B) for each requirement identified in 
                subparagraph (A), the reasons why that 
                requirement cannot be met through such use of 
                the H-canyon facility and a description of the 
                alternative capability for fissile materials 
                disposition that is needed to meet that 
                requirement.

SEC. [3182.] 4915. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT SAVANNAH 
                    RIVER SITE.

    (a) * * *

           *       *       *       *       *       *       *

SEC. 4915A. DISPOSITION OF SURPLUS DEFENSE PLUTONIUM AT SAVANNAH RIVER 
                    SITE, AIKEN, SOUTH CAROLINA.

    (a) Consultation Required.--The Secretary of Energy shall 
consult with the Governor of the State of South Carolina 
regarding any decisions or plans of the Secretary related to 
the disposition of surplus defense plutonium and defense 
plutonium materials located at the Savannah River Site, Aiken, 
South Carolina.
    (b) Notice Required.--For each shipment of defense 
plutonium or defense plutonium materials to the Savannah River 
Site, the Secretary shall, not less than 30 days before the 
commencement of such shipment, submit to the congressional 
defense committees a report providing notice of such shipment.
    (c) Plan for Disposition.--The Secretary shall prepare a 
plan for disposal of the surplus defense plutonium and defense 
plutonium materials currently located at the Savannah River 
Site and for disposal of defense plutonium and defense 
plutonium materials to be shipped to the Savannah River Site in 
the future. The plan shall include the following:
            (1) A review of each option considered for such 
        disposal.
            (2) An identification of the preferred option for 
        such disposal.
            (3) With respect to the facilities for such 
        disposal that are required by the Department of 
        Energy's Record of Decision for the Storage and 
        Disposition of Weapons-Usable Fissile Materials Final 
        Programmatic Environmental Impact Statement dated 
        January 14, 1997--
                    (A) a statement of the cost of construction 
                and operation of such facilities;
                    (B) a schedule for the expeditious 
                construction of such facilities, including 
                milestones; and
                    (C) a firm schedule for funding the cost of 
                such facilities.
            (4) A specification of the means by which all such 
        defense plutonium and defense plutonium materials will 
        be removed in a timely manner from the Savannah River 
        Site for storage or disposal elsewhere.
    (d) Plan for Alternative Disposition.--If the Secretary 
determines not to proceed at the Savannah River Site with 
construction of the plutonium immobilization plant, or with the 
mixed oxide fuel fabrication facility, the Secretary shall 
prepare a plan that identifies a disposition path for all 
defense plutonium and defense plutonium materials that would 
otherwise have been disposed of at such plant or such facility, 
as applicable.
    (e) Submission of Plans.--Not later than February 1, 2002, 
the Secretary shall submit to Congress the plan required by 
subsection (c) (and the plan prepared under subsection (d), if 
applicable).
    (f) Limitation on Plutonium Shipments.--If the Secretary 
does not submit to Congress the plan required by subsection (c) 
(and the plan prepared under subsection (d), if applicable) by 
February 1, 2002, the Secretary shall be prohibited from 
shipping defense plutonium or defense plutonium materials to 
the Savannah River Site during the period beginning on February 
1, 2002, and ending on the date on which such plans are 
submitted to Congress.
    (g) Rule of Construction.--Nothing in this section may be 
construed to prohibit or limit the Secretary from shipping 
defense plutonium or defense plutonium materials to sites other 
than the Savannah River Site during the period referred to in 
subsection (f) or any other period.
    (h) Annual Report on Funding for Fissile Materials 
Disposition Activities.--The Secretary shall include with the 
budget justification materials submitted to Congress in support 
of the Department of Energy budget for each fiscal year (as 
submitted with the budget of the President under section 
1105(a) of title 31, United States Code) a report setting forth 
the extent to which amounts requested for the Department for 
such fiscal year for fissile materials disposition activities 
will enable the Department to meet commitments for the 
disposition of surplus defense plutonium and defense plutonium 
materials located at the Savannah River Site, and for any other 
fissile materials disposition activities, in such fiscal year.

                      Subtitle C--Other Facilities

SEC. 4921. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE OF 
                    INFRASTRUCTURE AT NEVADA TEST SITE.

    Notwithstanding any other provision of law and effective as 
of September 30, 1996, the costs associated with operating and 
maintaining the infrastructure at the Nevada Test Site, Nevada, 
with respect to any activities initiated at the site after that 
date by the Department of Defense pursuant to a work-for-others 
agreement may be paid for from funds authorized to be 
appropriated to the Department of Energy for activities at the 
Nevada Test Site.
                              ----------                              

                      TITLE 10, UNITED STATES CODE

           *       *       *       *       *       *       *
                    Subtitle A--General Military Law

            PART I--ORGANIZATION AND GENERAL MILITARY POWERS

Chap.                                                               Sec.
      Definitions....................................................101
     * * * * * * *
      National [Imagery and Mapping] Geospatial-Intelligence Agency..441
     * * * * * * *

                PART IV--SERVICE, SUPPLY, AND PROCUREMENT

     * * * * * * *
      Environmental Restoration..............................[2701] 2700
     * * * * * * *

            PART I--ORGANIZATION AND GENERAL MILITARY POWERS

Chap.                                                               Sec.
      Definitions....................................................101
     * * * * * * *
441 National [Imagery and Mapping] Geospatial-Intelligence Agency.....

           *       *       *       *       *       *       *

CHAPTER 1--DEFINITIONS

           *       *       *       *       *       *       *

Sec. 101. Definitions

    (a) In General.--The following definitions apply in this 
title:
            (1) * * *

           *       *       *       *       *       *       *

            (9) The term ``Secretary concerned'' means--
                    (A) * * *

           *       *       *       *       *       *       *

                    (D) the Secretary of [Transportation] 
                Homeland Security, with respect to matters 
                concerning the Coast Guard when it is not 
                operating as a service in the Department of the 
                Navy.

           *       *       *       *       *       *       *

            (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).

           *       *       *       *       *       *       *

CHAPTER 2--DEPARTMENT OF DEFENSE

           *       *       *       *       *       *       *

Sec. 113. Secretary of Defense

    (a) * * *

           *       *       *       *       *       *       *

    [(m) Information To Accompany Funding Request for 
Contingency Operation.--Whenever the President submits to 
Congress a request for appropriations for costs associated with 
a contingency operation that involves, or likely will involve, 
the deployment of more than 500 members of the armed forces, 
the Secretary of Defense shall submit to Congress a report on 
the objectives of the operation. The report shall include a 
discussion of the following:
            [(1) What clear and distinct objectives guide the 
        activities of United States forces in the operation.
            [(2) What the President has identified on the basis 
        of those objectives as the date, or the set of 
        conditions, that defines the endpoint of the 
        operation.]

           *       *       *       *       *       *       *

Sec. 113a. Transmission of annual defense authorization request

    (a) * * *
    (b) Defense Authorization Request Defined.--In this 
section, the term ``defense authorization request'', with 
respect to a fiscal year, means a legislative proposal 
submitted to Congress for the enactment of the following:
            (1) * * *

           *       *       *       *       *       *       *

            (3) Authority to carry out military construction 
        projects, as required by section 2802 of this title.
            [(3)] (4) Any other matter that is proposed by the 
        Secretary of Defense to be enacted as part of the 
        annual defense authorization bill for that fiscal year.

           *       *       *       *       *       *       *

Sec. 117. Readiness reporting system: establishment; reporting to 
                    congressional committees 

    (a) * * *

           *       *       *       *       *       *       *

    (e) Submission to Congressional Committees.--The Secretary 
shall [each month submit to the Committee on Armed Services and 
the Committee on Appropriations of the Senate and the Committee 
on Armed Services and the Committee on Appropriations of the 
House of Representatives a report in writing containing the 
results of the most recent joint readiness review or monthly 
review conducted under subsection (d)] 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), including the current 
information derived from the readiness reporting system. Each 
such report shall be submitted in unclassified form and may, as 
the Secretary determines necessary, also be submitted in 
classified form.

           *       *       *       *       *       *       *

CHAPTER 3--GENERAL POWERS AND FUNCTIONS

           *       *       *       *       *       *       *

Sec. 127. Emergency and extraordinary expenses

    (a) * * *

           *       *       *       *       *       *       *

    [(d) In any case in which funds are expended under the 
authority of subsections (a) and (b), the Secretary of Defense 
shall submit a report of such expenditures on a quarterly basis 
to the Committee on Armed Services and the Committee on 
Appropriations of the Senate and the Committee on Armed 
Services and the Committee on Appropriations of the House of 
Representatives.]
    (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).

Sec. 127a. Operations for which funds are not provided in advance: 
                    funding mechanisms

    (a) In General.--(1) * * *

           *       *       *       *       *       *       *

    [(3) Whenever an operation to which this section applies is 
commenced or subsequently becomes covered by this section, the 
Secretary of Defense shall designate and identify that 
operation for the purposes of this section and shall promptly 
notify Congress of that designation (and of the identification 
of the operation).]
    [(4)] (3) This section does not provide authority for the 
President or the Secretary of Defense to carry out any 
operation, but establishes mechanisms for the Department of 
Defense by which funds are provided for operations that the 
armed forces are required to carry out under some other 
authority.

           *       *       *       *       *       *       *

    [(d) Report Upon Designation of an Operation.--Within 45 
days after the Secretary of Defense identifies an operation 
pursuant to subsection (a)(2), the Secretary of Defense shall 
submit to Congress a report that sets forth the following:
            [(1) The manner by which the Secretary proposes to 
        obtain funds for the cost to the United States of the 
        operation, including a specific discussion of how the 
        Secretary proposes to restore balances in--
                    [(A) the Defense Business Operations Fund 
                (or a successor fund), or
                    [(B) the accounts from which the Secretary 
                transfers funds under the authority of 
                subsection (c), to the levels that would have 
                been anticipated but for the provisions of 
                subsection (c).
            [(2) If the operation is described in subsection 
        (a)(1)(B), a justification why the budgetary resources 
        of another department or agency of the Federal 
        Government, instead of resources of the Department of 
        Defense, are not being used for carrying out the 
        operation.
            [(3) The objectives of the operation.
            [(4) The estimated duration of the operation and of 
        any deployment of armed forces personnel in such 
        operation.
            [(5) The estimated incremental cost of the 
        operation to the United States.
            [(6) The exit criteria for the operation and for 
        the withdrawal of the elements of the armed forces 
        involved in the operation.]

           *       *       *       *       *       *       *

Sec. 128. Physical protection of special nuclear material: limitation 
                    on dissemination of unclassified information

    (a) * * *

           *       *       *       *       *       *       *

    [(d) The Secretary shall prepare on an annual basis a 
report to be made available upon the request of any interested 
person, detailing the Secretary's application during that 
period of each regulation or order prescribed or issued under 
this section. In particular, such report shall--
            [(1) identify any information protected from 
        disclosure pursuant to such regulation or order;
            [(2) specifically state the Secretary's 
        justification for determining that unauthorized 
        dissemination of the information protected from 
        disclosure under such regulation or order could 
        reasonably be expected to have a significant adverse 
        effect on the health and safety of the public or the 
        common defense and security by significantly increasing 
        the likelihood of illegal production of nuclear weapons 
        or the theft, diversion, or sabotage of special nuclear 
        materials, equipment, or facilities, as specified under 
        subsection (a); and
            [(3) provide justification that the Secretary has 
        applied such regulation or order so as to protect from 
        disclosure only the minimum amount of information 
        necessary to protect the health and safety of the 
        public or the common defense and security.]

Sec. 129. Prohibition of certain civilian personnel management 
                    constraints

    (a) * * *

           *       *       *       *       *       *       *

    [(f)(1) Not later than February 1 of each year, the 
Secretary of each military department and the head of each 
Defense Agency 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 management of the civilian 
workforce under the jurisdiction of that official.
    [(2) Each report of an official under paragraph (1) shall 
contain the following:
            [(A) The official's certification (i) that the 
        civilian workforce under the jurisdiction of the 
        official is not subject to any constraint or limitation 
        in terms of man years, end strength, full-time 
        equivalent positions, or maximum number of employees, 
        and (ii) that, during the 12 months preceding the date 
        on which the report is due, such workforce has not been 
        subject to any such constraint or limitation.
            [(B) A description of how the civilian workforce is 
        managed.
            [(C) A detailed description of the analytical tools 
        used to determine civilian workforce requirements 
        during the 12-month period referred to in subparagraph 
        (A).]

           *       *       *       *       *       *       *

Sec. 129b. Experts and consultants: authority to procure services of

    (a) Authority.--Subject to subsection (b), the Secretary of 
Defense and the Secretaries of the military departments may--
            (1) procure the services of experts or consultants 
        (or of organizations of experts or consultants) [in 
        accordance with section 3109 of title 5]; and

           *       *       *       *       *       *       *

    (d) Additional Authority.--(1) In addition to the authority 
provided under subsection (a), the Secretary of Defense may 
enter into personal services contracts with individuals, 
regardless of their nationality, outside of the United States.
    (2) The contracting officer for a personal services 
contract shall be responsible for ensuring that a personal 
services contract is the appropriate vehicle for carrying out 
the purpose of the contract.

           *       *       *       *       *       *       *

CHAPTER 4--OFFICE OF THE SECRETARY OF DEFENSE

           *       *       *       *       *       *       *

Sec. 133. Under Secretary of Defense for Acquisition, Technology, and 
                    Logistics

    (a) * * *

           *       *       *       *       *       *       *

    (c) The Under Secretary--
            (1) is the [senior procurement executive] Chief 
        Acquisition Officer for the Department of Defense for 
        the purposes of section 16(3) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(3));

           *       *       *       *       *       *       *

Sec. 135. Under Secretary of Defense (Comptroller)

    (a) * * *

           *       *       *       *       *       *       *

    (e)[(1)] The Under Secretary of Defense (Comptroller) shall 
ensure that [each congressional committee specified in 
paragraph (2)] each of the congressional defense committees is 
informed, in a timely manner, regarding all matters relating to 
the budgetary, fiscal, and analytic activities of the 
Department of Defense that are under the supervision of the 
Under Secretary of Defense (Comptroller).
    [(2) The committees referred to in paragraph (1) are--
            [(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.]

           *       *       *       *       *       *       *

CHAPTER 5--JOINT CHIEFS OF STAFF

           *       *       *       *       *       *       *

Sec. 153. Chairman: functions

    (a) * * *
    (b) Risks Under National Military Strategy.--(1) Not later 
than January 1 [each year] of each odd-numbered year, the 
Chairman shall submit to the Secretary of Defense a report 
providing the Chairman's assessment of the nature and magnitude 
of the strategic and military risks associated with executing 
the missions called for under the current National Military 
Strategy.

           *       *       *       *       *       *       *

    (c) Annual Report on Combatant Command Requirements.--(1) 
At or about the time that the budget is submitted to Congress 
for a fiscal year under section 1105(a) of title 31, the 
Chairman shall submit to the [committees of Congress named in 
paragraph (2)] congressional defense committees a report on the 
requirements of the combatant commands established under 
section 161 of this title.
    [The report] (2) Each report under paragraph (1) shall 
contain the following:
            (A) * * *

           *       *       *       *       *       *       *

    [(2) The committees of Congress referred to in paragraph 
(1) are the Committees on Armed Services and the Committees on 
Appropriations of the Senate and House of Representatives.]
    (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 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) and the most recent Quadrennial Defense 
        Review prescribed 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.
            (I) Assessment of the resources, basing 
        requirements, and support structure needed to provide 
        the capabilities necessary to be assured United States 
        forces can successfully achieve national military 
        objectives and to assess what resources and support 
        might be required to sustain allies or friendly nation 
        forces during combat operations.
    (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 assume the existence of those threats described in 
subparagraphs (C) and (D) of paragraph (2) and should assess 
the risk associated with two regional threats occurring nearly 
simultaneously.
    (C) In addition to the assumptions to be made under 
subparagraph (B), the Chairman should make other 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.

           *       *       *       *       *       *       *

CHAPTER 6--COMBATANT COMMANDS

           *       *       *       *       *       *       *

Sec. 167. Unified combatant command for special operations forces

    (a) * * *

           *       *       *       *       *       *       *

    (l) Personal Services Contracts.--(1) The Secretary of 
Defense may, notwithstanding section 3109 of title 5, enter 
into personal services contracts in the United States if the 
personal services directly support the mission of the special 
operations command.
    (2) The contracting officer for a personal services 
contract shall be responsible for ensuring that a personal 
services contract is the appropriate vehicle for carrying out 
the purpose of the contract.

           *       *       *       *       *       *       *

CHAPTER 7--BOARDS, COUNCILS, AND COMMITTEES

           *       *       *       *       *       *       *

Sec. 181. Joint Requirements Oversight Council

    (a) * * *

           *       *       *       *       *       *       *

    (d) Availability of Oversight Information to Congressional 
Defense Committees.--(1) * * *
    (2) In this [subsection:
            [(A) The term ``oversight] subsection, the term 
        ``oversight information'' means information and 
        materials comprising analysis and justification that 
        are prepared to support a recommendation that is made 
        to, and approved by, the Secretary of Defense.
            [(B) The term ``congressional defense committees'' 
        means--
                    [(i) the Committee on Armed Services and 
                the Committee on Appropriations of the Senate; 
                and
                    [(ii) the Committee on Armed Services and 
                the Committee on Appropriations of the House of 
                Representatives.]

           *       *       *       *       *       *       *

Sec. 184. Department of Defense regional centers for security studies

    (a) * * *
    [(b) Requirement for Annual Report.--Not later than 
February 1 of each year, 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 
report on the operation of the Department of Defense regional 
centers for security studies during the preceding fiscal year. 
The annual report shall include, for each regional center, the 
following information:
            [(1) The status and objectives of the center.
            [(2) The budget of the center, including the costs 
        of operating the center.
            [(3) A description of the extent of the 
        international participation in the programs of the 
        center, including the costs incurred by the United 
        States for the participation of each foreign nation.
            [(4) A description of the foreign gifts and 
        donations, if any, accepted under any of the following 
        provisions of law:
                    [(A) Section 2611 of this title.
                    [(B) Section 1306 of the National Defense 
                Authorization Act for Fiscal Year 1995 (Public 
                Law 103-337; 108 Stat. 2892).
                    [(C) Section 1065 of the National Defense 
                Authorization Act for Fiscal Year 1997 (Public 
                Law 104-201; 110 Stat. 2653; 10 U.S.C. 113 
                note).]

           *       *       *       *       *       *       *

CHAPTER 8--DEFENSE AGENCIES AND DEPARTMENT OF DEFENSE FIELD ACTIVITIES

           *       *       *       *       *       *       *

SUBCHAPTER I--COMMON SUPPLY AND SERVICE ACTIVITIES

           *       *       *       *       *       *       *

Sec. 193. Combat support agencies: oversight

    (a) * * *

           *       *       *       *       *       *       *

    (d) Review of National Security Agency and [National 
Imagery and Mapping Agency] National Geospatial-Intelligence 
Agency.--(1) Subsections (a), (b), and (c) shall apply to the 
National Security Agency and the [National Imagery and Mapping 
Agency] National Geospatial-Intelligence Agency, but only with 
respect to combat support functions that the agencies perform 
for the Department of Defense.
    (2) The Secretary, after consulting with the Director of 
Central Intelligence, shall establish policies and procedures 
with respect to the application of subsections (a), (b), and 
(c) to the National Security Agency and the [National Imagery 
and Mapping Agency] National Geospatial-Intelligence Agency.
    (e) Combat Support Capabilities of DIA, NSA, and [NIMA] 
NGA.--The Secretary of Defense, in consultation with the 
Director of Central Intelligence, shall develop and implement, 
as they may determine to be necessary, policies and programs to 
correct such deficiencies as the Chairman of the Joint Chiefs 
of Staff and other officials of the Department of Defense may 
identify in the capabilities of the Defense Intelligence 
Agency, the National Security Agency, and the [National Imagery 
and Mapping Agency] National Geospatial-Intelligence Agency to 
accomplish assigned missions in support of military combat 
operations.
    (f) Definition of Combat Support Agency.--In this section, 
the term ``combat support agency'' means any of the following 
Defense Agencies:
            (1) * * *

           *       *       *       *       *       *       *

            (4) The [National Imagery and Mapping Agency] 
        National Geospatial-Intelligence Agency.

           *       *       *       *       *       *       *

Sec. 196. Department of Defense Test Resource Management Center

    (a) * * *
    (b) Director and Deputy Director.--(1) At the head of the 
Center shall be a Director, selected by the Secretary from 
among commissioned officers of the armed forces on active duty 
or from among senior civilian officials or employees of the 
Department of Defense who have substantial experience in the 
field of test and evaluation. The Director, while so serving, 
holds the grade of lieutenant general or, in the case of an 
officer of the Navy, [vice admiral] the grade of vice admiral, 
or, in the case of a civilian official or employee, an 
equivalent level.

           *       *       *       *       *       *       *

SUBCHAPTER II--MISCELLANEOUS DEFENSE AGENCY MATTERS

           *       *       *       *       *       *       *

Sec. 201. Certain intelligence officials: consultation and concurrence 
                    regarding appointments; evaluation of performance

    (a) * * *
    (b) Concurrence in Appointment.--(1) * * *
    (2) Paragraph (1) applies to the following positions:
            (A) * * *

           *       *       *       *       *       *       *

            (C) The Director of the [National Imagery and 
        Mapping Agency] National Geospatial-Intelligence 
        Agency.
    (c) Performance Evaluations.--(1) * * *
    (2) The positions referred to in paragraph (1) are the 
following:
            (A) * * *

           *       *       *       *       *       *       *

            (C) The Director of the [National Imagery and 
        Mapping Agency] National Geospatial-Intelligence 
        Agency.

           *       *       *       *       *       *       *

                   CHAPTER 9--DEFENSE BUDGET MATTERS

Sec.
221.    Future-years defense program: submission to Congress; 
          consistency in budgeting.
     * * * * * * *
[228.    Monthly reports on allocation of funds within operation and 
          maintenance budget subactivities.]
228.    Quarterly reports on allocation of funds within operation and 
          maintenance budget subactivities.

           *       *       *       *       *       *       *

Sec. 223. Ballistic missile defense programs: program elements

    (a) Program Elements Specified by President.--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 amount requested for activities of the Missile Defense 
Agency shall be set forth in accordance with [program elements 
governing functional areas as follows:
            [(1) Technology.
            [(2) Ballistic Missile Defense System.
            [(3) Terminal Defense Segment.
            [(4) Midcourse Defense Segment.
            [(5) Boost Defense Segment.
            [(6) Sensors Segment.] such program elements as the 
        President may specify.
    (b) Separate Program Elements for Programs Entering 
Engineering and Manufacturing Development.--(1) * * *
    (2) In this subsection, the term ``engineering and 
manufacturing development'' [means the development phase whose] 
means the period in the course of an acquisition program during 
which the primary objectives are to--
            (A) * * *

           *       *       *       *       *       *       *

    (c) Management and Support.--The amount requested [for each 
program element specified in subsection (a)] for a fiscal year 
for any program element specified for that fiscal year pursuant 
to subsection (a) shall include requests for the amounts 
necessary for the management and support of the programs, 
projects, and activities contained in that program element.

Sec. 224. Ballistic missile defense programs: display of amounts for 
                    research, development, test, and evaluation

    (a) * * *

           *       *       *       *       *       *       *

    [(f) Congressional Defense Committees.--In this section, 
the term ``congressional defense committees'' means the 
following:
            [(1) The Committee on Armed Services and the 
        Committee on Appropriations of the Senate.
            [(2) The Committee on Armed Services and the 
        Committee on Appropriations of the House of 
        Representatives.]

Sec. 226. Scoring of outlays

    (a) Annual OMB/CBO Report.--Not later than [December] 
January 15 of each year, the Director of the Office of 
Management and Budget and the Director of the Congressional 
Budget Office shall submit to the Speaker of the House of 
Representatives and the Committees on Armed Services, 
Appropriations, and the Budget of the Senate a joint report 
containing an agreed resolution of all differences between--
            (1) the technical assumptions to be used by the 
        Office of Management and Budget in preparing estimates 
        with respect to all accounts in major functional 
        category 050 (National Defense) for the budget to be 
        submitted to Congress [in the following year] in that 
        year pursuant to section 1105 of title 31; and
            (2) the technical assumptions to be used by the 
        Congressional Budget Office in preparing estimates with 
        respect to those accounts for that budget.

           *       *       *       *       *       *       *

[Sec. 228. Monthly reports on allocation of funds within operation and 
                    maintenance budget subactivities]

Sec. 228. Quarterly reports on allocation of funds within operation and 
                    maintenance budget subactivities

    (a) [Monthly] Quarterly Report.--The Secretary of Defense 
shall submit to the congressional defense committees a 
[monthly] quarterly report on the allocation of appropriations 
to O&M budget activities and to the subactivities of those 
budget activities. Each such report shall be submitted not 
later than 60 days after the end of the [month] fiscal-year 
quarter to which the report pertains.

           *       *       *       *       *       *       *

    (c) Identification of Certain Fluctuations.--(1) If, in the 
report under this section for a [month] quarter of a fiscal 
year after the first [month] quarter of that fiscal year, an 
amount shown under subsection (b) for a subactivity is 
different by more than $15,000,000 from the corresponding 
amount for that subactivity in the report for the first [month] 
quarter of that fiscal year, the Secretary shall include in the 
report notice of that difference.
    (2) If, in the report under this section for a [month] 
quarter of a fiscal year after a [month] quarter for which the 
report under this section includes a notice under paragraph 
(1), an amount shown under subsection (b) for a subactivity is 
different by more than $15,000,000 from the corresponding 
amount for that subactivity in the most recent report that 
includes a notice under paragraph (1) or this paragraph, the 
Secretary shall include in the report notice of that 
difference.

           *       *       *       *       *       *       *

    (e) [Definitions.--In this section:]
            [(1) The term] O&M Budget Activity Defined.--In 
        this section, the term ``O&M budget activity'' means a 
        budget activity within an operation and maintenance 
        appropriation of the Department of Defense for a fiscal 
        year.
            [(2) The term ``congressional defense committees'' 
        means the Committee on Armed Services and the Committee 
        on Appropriations of the Senate and the Committee on 
        Armed Services and the Committee on Appropriations of 
        the House of Representatives.]

Sec. 229. Programs for combating terrorism: display of budget 
                    information

    (a) * * *

           *       *       *       *       *       *       *

    [(f) Congressional Defense Committees Defined.--In this 
section, 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.]

           *       *       *       *       *       *       *

             CHAPTER 20--HUMANITARIAN AND OTHER ASSISTANCE

Sec.
401.    Humanitarian and civic assistance provided in conjunction with 
          military operations.

           *       *       *       *       *       *       *

Sec. 401. Humanitarian and civic assistance provided in conjunction 
                    with military operations

    (a) * * *

           *       *       *       *       *       *       *

    [(d) The Secretary of Defense shall submit to the Committee 
on Armed Services and the Committee on Foreign Relations of the 
Senate and the Committee on Armed Services and the Committee on 
International Relations of the House of Representatives a 
report, not later than March 1 of each year, on activities 
carried out under this section during the preceding fiscal 
year. The Secretary shall include in each such report--
            [(1) a list of the countries in which humanitarian 
        and civic assistance activities were carried out during 
        the preceding fiscal year;
            [(2) the type and description of such activities 
        carried out in each country during the preceding fiscal 
        year; and
            [(3) the amount expended in carrying out each such 
        activity in each such country during the preceding 
        fiscal year.]

           *       *       *       *       *       *       *

Sec. 402. Transportation of humanitarian relief supplies to foreign 
                    countries

    (a) * * *
    (b)(1) The Secretary may not transport supplies under 
subsection (a) unless the Secretary determines that--
            (A) * * *

           *       *       *       *       *       *       *

            (C) there is a legitimate humanitarian need for 
        such supplies by the people or entity for whom they are 
        intended;

           *       *       *       *       *       *       *

            (E) adequate arrangements have been made for the 
        distribution or use of such supplies in the destination 
        country.

           *       *       *       *       *       *       *

    (3) It shall be the responsibility of the [donor to ensure 
that supplies to be transported under this section] entity 
requesting the transport of supplies under this section to 
ensure that the supplies are suitable for transport.

           *       *       *       *       *       *       *

    (d) Response to Environmental Emergencies.--The authority 
of the Secretary of Defense to transport humanitarian relief 
supplies under this section includes the authority 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.
    [(d)] (e) Not later than July 31 each year, the Secretary 
of State shall submit to the Committee on Armed Services and 
the Committee on Foreign Relations of the Senate and the 
Committee on Armed Services and the Committee on International 
Relations of the House of Representatives a report identifying 
the origin, contents, destination, and disposition of all 
supplies transported under this section during the 12-month 
period ending on the preceding June 30.

           *       *       *       *       *       *       *

Sec. 404. Foreign disaster assistance

    (a) In General.--The President may direct the Secretary of 
Defense to provide disaster assistance outside the United 
States to respond to manmade or natural disasters when 
necessary to prevent loss of lives or serious harm to the 
environment.

           *       *       *       *       *       *       *

    (c) Notification Required.--Not later than 48 hours after 
the commencement of disaster assistance activities to provide 
assistance under this section, the President shall transmit to 
Congress a report containing notification of the assistance 
provided, and proposed to be provided, under this section and a 
description of so much of the following as is then available:
            (1) * * *
            (2) The threat to human lives or the environment 
        presented by the disaster.

           *       *       *       *       *       *       *

CHAPTER 21--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

           *       *       *       *       *       *       *

                     SUBCHAPTER I--GENERAL MATTERS

Sec.
421.    Funds for foreign cryptologic support.
     * * * * * * *
[424.    Disclosure of organizational and personnel information: 
          exemption for Defense Intelligence Agency, National 
          Reconnaissance Office, and National Imagery and Mapping 
          Agency.]
424.    Disclosure of organizational and personnel information: 
          exemption for specified intelligence agencies.
     * * * * * * *
426.    Personal services contracts: authority and limitations.
426.    Counterintelligence polygraph program.

           *       *       *       *       *       *       *

[Sec. 424. Disclosure of organizational and personnel information: 
                    exemption for Defense Intelligence Agency, National 
                    Reconnaissance Office, and National Imagery and 
                    Mapping Agency]

Sec. 424. Disclosure of organizational and personnel information: 
                    exemption for specified intelligence agencies

    (a) * * *

           *       *       *       *       *       *       *

    (b) Covered Organizations.--This section applies to the 
following organizations of the Department of Defense:
            (1) * * *

           *       *       *       *       *       *       *

            (3) The [National Imagery and Mapping Agency] 
        National Geospatial-Intelligence Agency.

           *       *       *       *       *       *       *

Sec. 425. Prohibition of unauthorized use of name, initials, or seal: 
                    specified intelligence agencies

    (a) Prohibition.--Except with the written permission of 
both the Secretary of Defense and the Director of Central 
Intelligence, no person may knowingly use, in connection with 
any merchandise, retail product, impersonation, solicitation, 
or commercial activity in a manner reasonably calculated to 
convey the impression that such use is approved, endorsed, or 
authorized by the Secretary and the Director, any of the 
following (or any colorable imitation thereof):
            (1) * * *

           *       *       *       *       *       *       *

            (5) The words ``National Geospatial-Intelligence 
        Agency'', the initials ``NGA,'' or the seal of the 
        National Geospatial-Intelligence Agency.

           *       *       *       *       *       *       *

Sec. 426. Personal services contracts: authority and limitations

    (a) Personal Services.--(1) The Secretary of Defense may, 
notwithstanding section 3109 of title 5, enter into personal 
services contracts in the United States if the personal 
services directly support the mission of a defense intelligence 
component or counter-intelligence organization.
    (2) The contracting officer for a personal services 
contract shall be responsible for ensuring that a personal 
services contract is the appropriate vehicle for carrying out 
the purpose of the contract.
    (b) Definition.--In this section, the term ``defense 
intelligence component'' means a component of the Department of 
Defense that is an element of the intelligence community, as 
defined in section 3(4) of the National Security Act of 1947 
(50 U.S.C. 401a(4)).

Sec. 426. 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 polygraphs 
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 of Defense 
shall carry out a continuing research program to support the 
polygraph 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.

SUBCHAPTER II--INTELLIGENCE COMMERCIAL ACTIVITIES

           *       *       *       *       *       *       *

Sec. 437. Congressional oversight

    (a) * * *
    (b) Current Information.--Consistent with title V of the 
National Security Act of 1947 (50 U.S.C. 413 et seq.), the 
Secretary of Defense shall ensure that the intelligence 
committees are kept fully and currently informed of actions 
taken pursuant to this subchapter, including any significant 
anticipated activity to be authorized pursuant to this 
subchapter. [The Secretary shall promptly notify the 
appropriate committees of Congress whenever a corporation, 
partnership, or other legal entity is established pursuant to 
this subchapter.]
    [(c) Annual Report.--Not later each year than the date 
provided in section 507 of the National Security Act of 1947, 
the Secretary shall submit to the congressional intelligence 
committees (as defined in section 3 of that Act (50 U.S.C. 
401a)) a report on all commercial activities authorized under 
this subchapter that were undertaken during the previous fiscal 
year. Such report shall include (with respect to the fiscal 
year covered by the report)--
            [(1) a description of any exercise of the authority 
        provided by section 433(b) of this title;
            [(2) a description of any expenditure of funds made 
        pursuant to this subchapter (whether from appropriated 
        or non-appropriated funds); and
            [(3) a description of any actions taken with 
        respect to audits conducted pursuant to section 432 of 
        this title to implement recommendations or correct 
        deficiencies identified in such audits.]

           *       *       *       *       *       *       *

           [CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY]

CHAPTER 22--NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY

           *       *       *       *       *       *       *

SUBCHAPTER I--MISSIONS AND AUTHORITY

           *       *       *       *       *       *       *

Sec. 441. Establishment

    (a) Establishment.--The [National Imagery and Mapping 
Agency] National Geospatial-Intelligence Agency is a combat 
support agency of the Department of Defense and has significant 
national missions.
    (b) Director.--(1) The Director of the [National Imagery 
and Mapping Agency] National Geospatial-Intelligence Agency is 
the head of the agency.

           *       *       *       *       *       *       *

Sec. 442. Missions

    (a) National Security Missions.--(1) The [National Imagery 
and Mapping Agency] National Geospatial-Intelligence Agency 
shall, in support of the national security objectives of the 
United States, provide geospatial intelligence consisting of 
the following:
            (A) * * *

           *       *       *       *       *       *       *

    (2) [Imagery, intelligence, and information] Geospatial 
intelligence provided in carrying out paragraph (1) shall be 
timely, relevant, and accurate.

           *       *       *       *       *       *       *

    (b) Navigation Information.--The [National Imagery and 
Mapping Agency] National Geospatial-Intelligence Agency shall 
improve means of navigating vessels of the Navy and the 
merchant marine by providing, under the authority of the 
Secretary of Defense, accurate and inexpensive nautical charts, 
sailing directions, books on navigation, and manuals of 
instructions for the use of all vessels of the United States 
and of navigators generally.
    (c) Maps, Charts, Etc.--The [National Imagery and Mapping 
Agency] National Geospatial-Intelligence Agency shall prepare 
and distribute maps, charts, books, and geodetic products as 
authorized under subchapter II of this chapter.
    (d) National Missions.--The [National Imagery and Mapping 
Agency] National Geospatial-Intelligence Agency also has 
national missions as specified in [section 120(a) of the 
National Security Act of 1947] section 110(a) of the National 
Security Act of 1947 (50 U.S.C. 404e(a)).
    (e) Systems.--The [National Imagery and Mapping Agency] 
National Geospatial-Intelligence Agency may, in furtherance of 
a mission of the Agency, design, develop, deploy, operate, and 
maintain systems related to the processing and dissemination of 
imagery intelligence and geospatial information that may be 
transferred to, accepted or used by, or used on behalf of--
            (1) * * *

           *       *       *       *       *       *       *

Sec. 443. Imagery intelligence and geospatial information: support for 
                    foreign countries

    (a) Use of Appropriated Funds.--The Director of the 
[National Imagery and Mapping Agency] National Geospatial-
Intelligence Agency may use appropriated funds available to the 
National Imagery and Mapping Agency to provide foreign 
countries with imagery intelligence and geospatial information 
support.
    (b) Use of Funds Other Than Appropriated Funds.--The 
Director may use funds other than appropriated funds to provide 
foreign countries with imagery intelligence and geospatial 
information support, notwithstanding provisions of law relating 
to the expenditure of funds of the United States, except that--
            (1) no such funds may be expended, in whole or in 
        part, by or for the benefit of the [National Imagery 
        and Mapping Agency] National Geospatial-Intelligence 
        Agency for a purpose for which Congress had previously 
        denied funds;

           *       *       *       *       *       *       *

Sec. 444. Support from Central Intelligence Agency

    (a) Support Authorized.--The Director of Central 
Intelligence may provide support in accordance with this 
section to the Director of the [National Imagery and Mapping 
Agency] National Geospatial-Intelligence Agency. The Director 
of the National Imagery and Mapping Agency may accept support 
provided under this section.
    (b) Administrative and Contract Services.--(1) In 
furtherance of the national intelligence effort, the Director 
of Central Intelligence may provide administrative and contract 
services to the [National Imagery and Mapping Agency] National 
Geospatial-Intelligence Agency as if that agency were an 
organizational element of the Central Intelligence Agency.
    (2) Services provided under paragraph (1) may include the 
services of security police. For purposes of section 15 of the 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403o), an 
installation of the [National Imagery and Mapping Agency] 
National Geospatial-Intelligence Agency that is provided 
security police services under this section shall be considered 
an installation of the Central Intelligence Agency.

           *       *       *       *       *       *       *

    (c) Detail of Personnel.--The Director of Central 
Intelligence may detail personnel of the Central Intelligence 
Agency indefinitely to the [National Imagery and Mapping 
Agency] National Geospatial-Intelligence Agency without regard 
to any limitation on the duration of interagency details of 
Federal Government personnel.

           *       *       *       *       *       *       *

    (e) Authority To Transfer Funds.--(1) The Director of the 
[National Imagery and Mapping Agency] National Geospatial-
Intelligence Agency may transfer funds available for that 
agency to the Director of Central Intelligence for the Central 
Intelligence Agency.
    (2) The Director of Central Intelligence--
            (A) * * *
            (B) shall expend such funds, in accordance with the 
        Central Intelligence Agency Act of 1949 (50 U.S.C. 403a 
        et seq.), to provide administrative and contract 
        services or detail personnel to the [National Imagery 
        and Mapping Agency] National Geospatial-Intelligence 
        Agency under this section.

           *       *       *       *       *       *       *

Sec. 453. Sale of maps, charts, and navigational publications: prices; 
                    use of proceeds

    (a) * * *
    (b) Use of Proceeds To Pay Foreign Licensing Fees.--(1) The 
Secretary of Defense may pay any [NIMA] NGA foreign data 
acquisition fee out of the proceeds of the sale of maps, 
charts, and other publications of the Agency, and those 
proceeds are hereby made available for that purpose.
    (2) In this subsection, the term ``[NIMA] NGA foreign data 
acquisition fee'' means any licensing or other fee imposed by a 
foreign country or international organization for the 
acquisition or use of data or products by the [National Imagery 
and Mapping Agency] National Geospacial Intelligence Agency.

           *       *       *       *       *       *       *

SUBCHAPTER IV--DEFINITIONS

           *       *       *       *       *       *       *

Sec. 467. Definitions

    In this chapter:
            (1) * * *

           *       *       *       *       *       *       *

            (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.

           *       *       *       *       *       *       *

             CHAPTER 23--MISCELLANEOUS STUDIES AND REPORTS

Sec.
480.    Reports to Congress: submission in electronic form.
     * * * * * * *
[484.    Annual report on aircraft inventory.]

           *       *       *       *       *       *       *

[Sec. 484. Annual report on aircraft inventory

    [(a) Annual Report.--The Under Secretary of Defense 
(Comptroller) shall submit to Congress each year a report on 
the aircraft in the inventory of the Department of Defense. The 
Under Secretary shall submit the report when the President 
submits the budget to Congress under section 1105(a) of title 
31.
    [(b) Content.--The report shall set forth, in accordance 
with subsection (c), the following information:
            [(1) The total number of aircraft in the inventory.
            [(2) The total number of the aircraft in the 
        inventory that are active, stated in the following 
        categories (with appropriate subcategories for mission 
        aircraft, training aircraft, dedicated test aircraft, 
        and other aircraft):
                    [(A) Primary aircraft.
                    [(B) Backup aircraft.
                    [(C) Attrition and reconstitution reserve 
                aircraft.
            [(3) The total number of the aircraft in the 
        inventory that are inactive, stated in the following 
        categories:
                    [(A) Bailment aircraft.
                    [(B) Drone aircraft.
                    [(C) Aircraft for sale or other transfer to 
                foreign governments.
                    [(D) Leased or loaned aircraft.
                    [(E) Aircraft for maintenance training.
                    [(F) Aircraft for reclamation.
                    [(G) Aircraft in storage.
            [(4) The aircraft inventory requirements approved 
        by the Joint Chiefs of Staff.
    [(c) Display of Information.--The report shall specify the 
information required by subsection (b) separately for the 
active component of each armed force and for each reserve 
component of each armed force and, within the information set 
forth for each such component, shall specify the information 
separately for each type, model, and series of aircraft 
provided for in the future-years defense program submitted to 
Congress.]

           *       *       *       *       *       *       *

Sec. 487. Unit operations tempo and personnel tempo: annual report

    (a) * * *
    (b) Specific Requirements.--(1) * * *

           *       *       *       *       *       *       *

    [(5) For each of the armed forces, the description shall 
indicate the average number of days a member of that armed 
force was deployed away from the member's home station during 
the period covered by the report as compared to recent previous 
years for which such information is available.]
    (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.

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                        CHAPTER 31--ENLISTMENTS

Sec.
501.    Definition.
     * * * * * * *
[520c.   Recruiting functions: use of funds.]
520c.   Recruiting functions: provision of meals and refreshments.

           *       *       *       *       *       *       *

Sec. 503. Enlistments: recruiting campaigns; compilation of directory 
                    information

    (a) * * *

           *       *       *       *       *       *       *

    (c) Access to Secondary Schools.--(1) * * *

           *       *       *       *       *       *       *

    (5) The requirements of this subsection do not [apply to--
            [(A) a local educational agency with respect to 
        access to secondary school students or access to 
        directory information concerning such students for any 
        period during which there is in effect a policy of that 
        agency, established by majority vote of the governing 
        body of the agency, to deny recruiting access to those 
        students or to that directory information, 
        respectively; or
            [(B) a private secondary school which] apply to a 
        private secondary school that maintains a religious 
        objection to service in the armed forces and which 
        objection is verifiable through the corporate or other 
        organizational documents or materials of that school.
    (6) In this subsection:
            (A) The term ``local educational agency'' means--
                    (i) a local educational agency, within the 
                meaning of that term in section [14101] 9101 of 
                the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. [8801] 7801); and

           *       *       *       *       *       *       *

[Sec. 520c. Recruiting functions: use of funds]

Sec. 520c. Recruiting functions: provision of meals and refreshments

    [(a) Provision of Meals and Refreshments.--]Under 
regulations prescribed by the Secretary concerned, funds 
appropriated to the Department of Defense for recruitment of 
military personnel may be expended for small meals and 
refreshments during recruiting functions for the following 
persons:
            (1) Persons who have enlisted under the Delayed 
        Entry Program authorized by section 513 of this title.
            (2) Persons who are objects of armed forces 
        recruiting efforts.
            (3) Persons whose assistance in recruiting efforts 
        of the military departments is determined to be 
        influential by the Secretary concerned.
            (4) Members of the armed forces and Federal 
        employees when attending recruiting functions in 
        accordance with a requirement to do so.
            (5) Other persons whose presence at recruiting 
        functions will contribute to recruiting efforts.
    [(b) Annual Report.--Not later than February 1 of each of 
the years 1998 through 2002, the Secretary of Defense shall 
submit to Congress a report on the extent to which the 
authority under subsection (a) was exercised during the fiscal 
year ending in the preceding year.]

           *       *       *       *       *       *       *

   CHAPTER 36--PROMOTION, SEPARATION, AND INVOLUNTARY RETIREMENT OF 
OFFICERS ON THE ACTIVE-DUTY LIST

           *       *       *       *       *       *       *

 SUBCHAPTER III--FAILURE OF SELECTION FOR PROMOTION AND RETIREMENT FOR 
YEARS OF SERVICE

           *       *       *       *       *       *       *

Sec. 630. Discharge of commissioned officers with less than five years 
                    of active commissioned service or found not 
                    qualified for promotion for first lieutenant or 
                    lieutenant (junior grade)

    The Secretary of the military department concerned, under 
regulations prescribed by the Secretary of Defense--
            (1) * * *
            (2) shall, unless the officer has been promoted, 
        discharge any officer described in [clause] paragraph 
        (1)(B) at the end of the 18-month period beginning on 
        the date on which the officer is first found not 
        qualified for promotion.

           *       *       *       *       *       *       *

Sec. 631. Effect of failure of selection for promotion: first 
                    lieutenants and lieutenants (junior grade)

    (a) Except an officer of the Navy and Marine Corps who is 
an officer designated for limited duty (to whom section 5596(e) 
or 6383 of this title applies), each officer of the Army, Air 
Force, or Marine Corps on the active-duty list who holds the 
grade of first lieutenant and has failed of selection for 
promotion to the grade of captain for the second time, and each 
officer of the Navy on the active-duty list who holds the grade 
of lieutenant (junior grade) and has failed of selection for 
promotion to the grade of lieutenant for the second time, whose 
name is not on a list of officers recommended for promotion to 
the next higher grade shall--
            (1) * * *

           *       *       *       *       *       *       *

            (3) if on the date on which he is to be discharged 
        under [clause] paragraph (1) he is within two years of 
        qualifying for retirement under section 3911, 6323, or 
        8911 of this title, be retained on active duty until he 
        is qualified for retirement and then be retired under 
        that section, unless he is sooner retired or discharged 
        under another provision of law.

           *       *       *       *       *       *       *

Sec. 632. Effect of failure of selection for promotion: captains and 
                    majors of the Army, Air Force, and Marine Corps and 
                    lieutenants and lieutenant commanders of the Navy

    (a) Except an officer of the Navy and Marine Corps who is 
an officer designated for limited duty (to whom section 5596(e) 
or 6383 of this title applies) and except as provided under 
section 637(a) of this title, each officer of the Army, Air 
Force, or Marine Corps on the active-duty list who holds the 
grade of captain or major, and each officer of the Navy on the 
active-duty list who holds the grade of lieutenant or 
lieutenant commander, who has failed of selection for promotion 
to the next higher grade for the second time and whose name is 
not on a list of officers recommended for promotion to the next 
higher grade shall--
            (1) except as provided in paragraph (3) and in 
        subsection (c), be discharged on the date requested by 
        him and approved by the Secretary concerned, which date 
        shall be not later than the first day of the seventh 
        calendar month beginning after the month in which the 
        President approves the report of the board which 
        considered him for the second time;

           *       *       *       *       *       *       *

            (3) if on the date on which he is to be discharged 
        under [clause] paragraph (1) he is within two years of 
        qualifying for retirement under section 3911, 6323, or 
        8911 of this title, be retained on active duty until he 
        is qualified for retirement and then retired under that 
        section, unless he is sooner retired or discharged 
        under another provision of law.

           *       *       *       *       *       *       *

    (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).

           *       *       *       *       *       *       *

CHAPTER 39--ACTIVE DUTY

           *       *       *       *       *       *       *

Sec. 691. Permanent end strength levels to support two major regional 
                    contingencies

    (a) * * *
    (b) Unless otherwise provided by law, the number of members 
of the armed forces (other than the Coast Guard) on active duty 
at the end of any fiscal year shall be not less than the 
following:
            (1) For the Army, [480,000] 482,375.

           *       *       *       *       *       *       *

            (4) For the Air Force, [359,000] 361,268.

           *       *       *       *       *       *       *

                           CHAPTER 40--LEAVE

Sec.
701.    Entitlement and accumulation.
     * * * * * * *
[705.    Rest and recuperation absence: qualified enlisted members 
          extending duty at designated locations overseas.]
705.    Rest and recuperative absence for qualified members extending 
          duty at designated locations overseas.

           *       *       *       *       *       *       *

Sec. 701. Entitlement and accumulation

    (a) * * *

           *       *       *       *       *       *       *

    [(f)(1) Under uniform regulations to be prescribed by the 
Secretary concerned, and approved by the Secretary of Defense, 
a member who serves on active duty for a continuous period of 
at least 120 days in an area in which he is entitled to special 
pay under section 310(a) of title 37 or a member assigned to a 
deployable ship, mobile unit, or to other duty designated for 
the purpose of this section, may accumulate 90 days' leave. 
Except as provided in paragraph (2), leave in excess of 60 days 
accumulated under this subsection is lost unless it is used by 
the member before the end of the third fiscal year after the 
fiscal year in which the service terminated.]
    (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.

           *       *       *       *       *       *       *

[Sec. 705. Rest and recuperation absence: qualified enlisted members 
                    extending duty at designated locations overseas]

Sec. 705. Rest and recuperation absence: qualified members extending 
                    duty at designated locations overseas

    (a) Under regulations prescribed by the Secretary 
concerned, [an enlisted member] a member of an armed force 
who--
            (1) * * *

           *       *       *       *       *       *       *

CHAPTER 47--UNIFORM CODE OF MILITARY JUSTICE

           *       *       *       *       *       *       *

SUBCHAPTER X--PUNITIVE ARTICLES

           *       *       *       *       *       *       *

Sec. 911. Art. 111. Drunken or reckless operation of a vehicle, 
                    aircraft, or vessel

    (a) Any person subject to this chapter who--
            (1) * * *
            (2) operates or is in actual physical control of 
        any vehicle, aircraft, or vessel while drunk or when 
        the alcohol concentration in the person's blood or 
        breath is [in excess of] at, or in excess of, the 
        applicable limit under subsection (b),
shall be punished as a court-martial may direct.
    (b)(1) * * *

           *       *       *       *       *       *       *

    (4) In this subsection:
            (A) The term ``blood alcohol content limit'' means 
        the [maximum permissible alcohol concentration in a 
        person's blood or breath for purposes of operation or 
        control of a vehicle, aircraft, or vessel.] amount of 
        alcohol concentration in a person's blood or breath at 
        which operation or control of a vehicle, aircraft, or 
        vessel is prohibited.

           *       *       *       *       *       *       *

CHAPTER 49--MISCELLANEOUS PROHIBITIONS AND PENALTIES

           *       *       *       *       *       *       *

Sec. 973. Duties: officers on active duty; performance of civil 
                    functions restricted

    (a) * * *
    (b)(1) * * *

           *       *       *       *       *       *       *

    (3)(A) Except as otherwise authorized by law, an officer to 
whom this subsection applies may not hold or exercise, by 
election or appointment, the functions of a civil office in the 
government of a State, the District of Columbia, or a 
territory, possession, or commonwealth of the United States (or 
of any political subdivision of any such government).
    (B) The prohibition in subparagraph (A) does not apply to 
the functions of a civil office held by election, in the case 
of an officer to whom this subsection applies by reason of 
subparagraph (B) or (C) of paragraph (1).

           *       *       *       *       *       *       *

Sec. 983. Institutions of higher education that prevent ROTC access or 
                    military recruiting on campus: denial of grants and 
                    contracts from Department of Defense, Department of 
                    Education, and certain other departments and 
                    agencies

    (a) * * *

           *       *       *       *       *       *       *

    (e) Notice of Determinations.--Whenever the Secretary of 
Defense makes a determination under subsection (a), (b), or 
(c), the Secretary--
            (1) shall transmit a notice of the determination to 
        the Secretary of Education [and to Congress]; and

           *       *       *       *       *       *       *

           CHAPTER 50--MISCELLANEOUS COMMAND RESPONSIBILITIES

Sec.
991. Management of deployments of members.
992. Requirement of exemplary conduct: commanding officers and others in 
          authority.
     * * * * * * *

Sec. 991. Management of deployments of members

    [(a) General or Flag Officer Responsibilities.--(1) The 
deployment (or potential deployment) of a member of the armed 
forces shall be managed, during any period when the member is a 
high-deployment days member, by the officer in the chain of 
command of that member who is the lowest-ranking general or 
flag officer in that chain of command. That officer shall 
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 out of the preceding 365 
days would exceed 220. However, the member may be deployed, or 
continued in a deployment, without regard to the preceding 
sentence if such deployment, or continued deployment, is 
approved--
            [(A) in the case of a member who is assigned to a 
        combatant command in a position under the operational 
        control of the officer in that combatant command who is 
        the service component commander for the members of that 
        member's armed force in that combatant command, by that 
        officer; and
            [(B) in the case of a member not assigned as 
        described in subparagraph (A), by the service chief of 
        that member's armed force (or, if so designated by that 
        service chief, by an officer of the same armed force on 
        active duty who is in the grade of general or admiral 
        or who is the personnel chief for that armed force).
    [(2) In this section, the term ``high-deployment days 
member'' means a member who has been deployed 182 days or more 
out of the preceding 365 days.
    [(3) In paragraph (1)(B), the term ``service chief'' means 
the Chief of Staff of the Army, the Chief of Naval Operations, 
the Chief of Staff of the Air Force, or the Commandant of the 
Marine Corps.]
    (a) Service and General or Flag Officer Responsibilities.--
(1) Subject to paragraph (3), the deployment (or potential 
deployment) of members of the armed forces shall be managed to 
ensure that a 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 out of the preceding 730 
days would exceed the high-deployment threshold.
    (2) In this subsection, the term ``high-deployment 
threshold'' means--
            (A) 400 days; or
            (B) a lower number of days prescribed by the 
        Secretary of Defense.
    (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 
        an in a general or flag officer position who has been 
        selected for promotion to the grade of brigadier 
        general or rear admiral (lower half)).

           *       *       *       *       *       *       *

Sec. 992. Requirement of exemplary conduct: commanding officers and 
                    others in authority

    All commanding officers and others in authority in the 
Department of Defense are required--
            (1) to show in themselves a good example of virtue, 
        honor, patriotism, and subordination;
            (2) to be vigilant in inspecting the conduct of all 
        persons who are placed under their command or charge;
            (3) to guard against and to suppress all dissolute 
        and immoral practices and to correct, according to 
        applicable laws and regulations, all persons who are 
        guilty of them; and
            (4) to take all necessary and proper measures, 
        under the laws, regulations, and customs applicable to 
        the armed forces, to promote and safeguard the morale, 
        the physical well-being, and the general welfare of all 
        under their command or charge.

           *       *       *       *       *       *       *

             CHAPTER 53--MISCELLANEOUS RIGHTS AND BENEFITS

Sec.
1031.    Administration of oath.
     * * * * * * *
[1051a.   Coalition liaison officers: administrative services and 
          support; travel, subsistence, and other personal expenses.]
1051a.   Foreign officers: administrative services and support; travel, 
          subsistence, and other personal expenses.
1051b.   Bilateral or regional cooperation programs: awards and mementos 
          to recognize superior noncombat achievements or performance.

           *       *       *       *       *       *       *

[Sec. 1051a. Coalition liaison officers: administrative services and 
                    support; travel, subsistence, and other personal 
                    expenses]

Sec. 1051a. Foreign officers: administrative services and support; 
                    travel, subsistence, and other personal expenses

    (a) [Authority] Administrative Services and Support.--The 
Secretary of Defense may provide administrative services and 
support for the performance of duties by a liaison officer of 
another nation [involved in a coalition with the United States] 
while the liaison officer is assigned [temporarily] to the 
headquarters of a combatant command, component command, or 
subordinate operational command of the United States [in 
connection with the planning for, or conduct of, a coalition 
operation].
    (b) Travel and Subsistence Expenses.--[(1)] The Secretary 
may pay the [expenses specified in paragraph (2)] travel, 
subsistence, and similar personal expenses of a liaison officer 
of a developing [country in connection with the assignment of 
that officer to the headquarters of a combatant command as 
described in subsection (a)] nation involved in a coalition 
while the liaison officer is assigned temporarily to a 
headquarters described in subsection (a) in connection with the 
planning for, or conduct of, a coalition operation, if the 
assignment is requested by the commander of the combatant 
command.
    [(2) Expenses of a liaison officer that may be paid under 
paragraph (1) in connection with an assignment described in 
that paragraph are the following:
            [(A) Travel and subsistence expenses.
            [(B) Personal expenses directly necessary to carry 
        out the duties of that officer in connection with that 
        assignment.]
    (c) Reimbursement.--To the extent that the Secretary 
determines appropriate, the Secretary may provide the services 
and support authorized [by] under subsection (a) and the 
expenses authorized by subsection (b) with or without 
reimbursement from (or on behalf of) the recipients.

           *       *       *       *       *       *       *

Sec. 1051b. Bilateral or regional cooperation programs: awards and 
                    mementos funds 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'' established in accordance with 
section 7342(a)(5) of title 5.

           *       *       *       *       *       *       *

Sec. 1059. Dependents of members separated for dependent abuse: 
                    transitional compensation; commissary and exchange 
                    benefits

    (a) * * *
    (b) Punitive and Other Adverse Actions Covered.--This 
section applies in the case of a member of the armed forces on 
active duty for a period of more than 30 days--
            (1) * * *
            (2) who is administratively separated, voluntarily 
        or involuntarily, from active duty in accordance with 
        applicable regulations if the basis for the separation 
        includes a dependent-abuse offense.

           *       *       *       *       *       *       *

    (e) Commencement and Duration of Payment.--(1) Payment of 
transitional compensation under this section--
            (A) in the case of a member convicted by a court-
        martial for a dependent-abuse offense, [shall commence 
        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 a dismissal, dishonorable discharge, bad 
        conduct discharge, or forfeiture of all pay and 
        allowances; and] 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 
                includes 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;

           *       *       *       *       *       *       *

    (2) Transitional compensation with respect to a member 
shall be paid for a period of 36 months[, except that, if as of 
the date on which payment of transitional compensation 
commences the unserved portion of the member's period of 
obligated active duty service is less than 36 months, the 
period for which transitional compensation is paid shall be 
equal to the greater of--
            [(A) the unserved portion of the member's period of 
        obligated active duty service; or
            [(B) 12 months].
    (3)(A) If a member is sentenced by a court-martial to 
receive punishment that includes a dismissal, dishonorable 
discharge, bad conduct discharge, or forfeiture of all pay and 
allowances as a result of a conviction by a court-martial for a 
dependent-abuse offense and each such [punishment applicable to 
the member under the sentence is remitted, set aside, or 
mitigated] 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 to a lesser punishment that 
does not include any such punishment, any payment of 
transitional compensation that has commenced under this section 
on the basis of such sentence in that case shall cease.

           *       *       *       *       *       *       *

    (m) Additional Eligibility.--The Secretary concerned, under 
regulations prescribed under subsection (k), may authorize 
eligibility for benefits under this section to dependents of a 
member or former member of the armed forces not covered by 
subsection (b) if the Secretary concerned determines that there 
are extenuating circumstances such that granting benefits under 
this section is consistent with the intent of this section.

Sec. 1060. Military service of retired members with newly democratic 
                    nations: consent of Congress

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Reports to Congressional Committees.--The Secretary 
concerned and the Secretary of State shall notify the Committee 
on Armed Services and the Committee on Foreign Relations of the 
Senate and the Committee on Armed Services and the Committee on 
International Relations of the House of Representatives of each 
approval under subsection (b) and each determination under 
subsection (c).]

           *       *       *       *       *       *       *

              CHAPTER 54--COMMISSARY AND EXCHANGE BENEFITS

Sec.
1061.    Survivors of certain Reserve and Guard members.
     * * * * * * *
[1063.    Use of commissary stores: members of Ready Reserve.
[1063a.   Use of commissary stores and MWR retail facilities: members of 
          National Guard serving in federally declared disaster or 
          national emergency.
[1064.    Use of commissary stores: persons qualified for retired pay 
          under chapter 1223 but under age 60.
[1065.    Morale, welfare, and recreation retail facilities: use by 
          members of reserve components and dependents.]
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. 1063. Use of commissary stores: members of Ready Reserve

    [(a) Eligibility of Members With 50 or More Creditable 
Points.--A member of the Ready Reserve who satisfactorily 
completes 50 or more points creditable under section 
12732(a)(2) of this title in a calendar year shall be eligible 
to use commissary stores of the Department of Defense. The 
Secretary concerned shall authorize the member to have 24 days 
of eligibility for any calendar year that the member qualifies 
for eligibility under this subsection.
    [(b) Eligibility of New Members.--(1) The Secretary 
concerned shall authorize a new member of the Ready Reserve to 
use commissary stores of the Department of Defense for a number 
of days accruing at the rate of two days for each month in 
which the member participates satisfactorily in training 
required under section 10147(a)(1) of this title or section 
502(a) of title 32, as the case may be.
    [(2) For the purposes of paragraph (1), a person shall be 
considered a new member of the Ready Reserve upon becoming a 
member and continuing without a break in the membership until 
the earlier of--
            [(A) the date on which the member becomes eligible 
        to use commissary stores under subsection (a); or
            [(B) December 31 of the first calendar year in 
        which the membership has been continuous for the entire 
        year.
    [(3) A new member may not be authorized under this 
subsection to use commissary stores for more than 24 days for 
any calendar year.
    [(c) Effect of Compensation or Type of Duty.--Subsections 
(a) and (b) shall apply without regard to whether, during the 
calendar year, the member receives compensation for the duty or 
training performed by the member or performs active duty for 
training.
    [(d) Regulations.--The Secretary concerned shall prescribe 
regulations, subject to the approval of the Secretary of 
Defense, to carry out this section. The regulations shall 
specify the required documentation of satisfactory 
participation in training for the purposes of subsection (b).

[Sec. 1064. Use of commissary stores: persons qualified for retired pay 
                    under chapter 1223 but under age 60

    [Under regulations prescribed by the Secretary of Defense, 
a person who would be eligible for retired pay under chapter 
1223 of this title but for the fact that the person is under 60 
years of age shall be authorized to use commissary stores of 
the Department of Defense for 24 days each calendar year.]

[Sec. 1065. Morale, welfare, and recreation retail facilities: use by 
                    members of reserve components and dependents]

Sec. 1063. Use of commissary stores and MWR retail facilities: members 
                    of reserve components and reserve retirees under 
                    age 60

    (a) Members of the Selected Reserve.--A member of the 
Selected Reserve in good standing (as determined by the 
Secretary concerned) shall be permitted to use commissary 
stores and MWR retail facilities on the same basis as members 
on active duty.
    (b) Members of Ready Reserve Not in Selected Reserve.--
Subject to such regulations as the Secretary of Defense may 
prescribe, a member of the Ready Reserve (other than members of 
the Selected Reserve) may be permitted to use commissary stores 
and MWR retail facilities on the same basis as members serving 
on active duty.
    (c) Reserve Retirees Under Age 60.--A member or former 
member of a reserve component under 60 years of age who, but 
for age, would be eligible for retired pay under chapter 1223 
of this title shall be permitted to use commissary stores and 
MWR retail facilities on the same basis as members of the armed 
forces entitled to retired pay under any other provision of 
law.
    (d) Dependents.--(1) Dependents of a member who is 
permitted under subsection (a) or (b) to use commissary stores 
and MWR retail facilities shall be permitted to use stores and 
such facilities on the same basis as dependents of members on 
active duty.
    (2) Dependents of a member who is permitted under 
subsection (c) to use commissary stores and MWR retail 
facilities shall be permitted to use stores and such facilities 
on the same basis as dependents of members of the armed forces 
entitled to retired pay under any other provision of law.

[Sec. 1063a.] Sec. 1064. Use of commissary stores and MWR retail 
                    facilities: members of National Guard serving in 
                    federally declared disaster or national emergency

    (a) * * *

           *       *       *       *       *       *       *

    (c) Definitions.--In this section:
            (1) * * *
            (2) MWR retail facilities.--The term ``MWR retail 
        facilities'' has the meaning given that term in 
        [section 1065(e)] section 1063(e) of this title.

           *       *       *       *       *       *       *

CHAPTER 55--MEDICAL AND DENTAL CARE

           *       *       *       *       *       *       *

Sec. 1074a. Medical and dental care: members on duty other than active 
                    duty for a period of more than 30 days

    (a) * * *

           *       *       *       *       *       *       *

    (f)(1) The Department of Defense may provide medical and 
dental screening and care to members of the Selected Reserve 
who are assigned to a unit that has been alerted that the unit 
will be mobilized for active duty in support of an operational 
mission or contingency operation, during a national emergency, 
or in a time of war.
    (2) The medical and dental screening and care that may be 
provided under this subsection is screening and care necessary 
to ensure that a member meets the medical and dental standards 
for required deployment.
    (3) The services provided under this subsection shall be 
provided to a member at no cost to the member and at any time 
after the unit to which the member is assigned is alerted or 
otherwise notified that the unit will be mobilized.

           *       *       *       *       *       *       *

Sec. 1074g. Pharmacy benefits program

    (a) * * *
    (b) Establishment of Committee.--(1) The Secretary of 
Defense shall, in consultation with the Secretaries of the 
military departments, establish a Pharmacy and Therapeutics 
Committee for the purpose of developing the uniform formulary 
of pharmaceutical agents required by subsection (a), reviewing 
such formulary on a periodic basis, and making additional 
recommendations regarding the formulary as the committee 
determines necessary and appropriate. The committee shall 
include representatives of pharmacies of the uniformed services 
[facilities, contractors responsible for the TRICARE retail 
pharmacy program, contractors responsible for the national 
mail-order pharmacy program, providers in facilities of the 
uniformed services, and TRICARE network providers.] facilities 
and representatives of providers in facilities of the uniformed 
services. Committee members shall have expertise in treating 
the medical needs of the populations served through such 
entities and in the range of pharmaceutical and biological 
medicines available for treating such populations. The 
committee shall function under procedures established by the 
Secretary under the regulations prescribed under subsection 
(g).

           *       *       *       *       *       *       *

    (c) Advisory Panel.--(1) * * *
    (2) The Secretary shall determine the size and membership 
of the panel established under paragraph (1), which shall 
include members that [represent nongovernmental] represent--
            (A) nongovernmental organizations and associations 
        that represent the views and interests of a large 
        number of eligible covered beneficiaries[.];
            (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. 1091. Personal services contracts

    (a) Authority.--(1) * * *
    (2) The Secretary of Defense, and the Secretary of 
Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy, may also enter into 
personal services contracts to carry out other health care 
responsibilities of the Secretary (such as the provision of 
medical screening examinations at Military Entrance Processing 
Stations) at locations outside medical treatment facilities, as 
determined necessary pursuant to regulations prescribed by the 
Secretary. [The Secretary may not enter into a contract under 
this paragraph after December 31, 2003.]

           *       *       *       *       *       *       *

Sec. 1107. Notice of use of an investigational new drug or a drug 
                    unapproved for its applied use

    (a) * * *

           *       *       *       *       *       *       *

    (f ) Limitation and Waiver.--(1) * * *

           *       *       *       *       *       *       *

    (4) In this subsection:
            (A) * * *

           *       *       *       *       *       *       *

            [(C) The term ``congressional defense committee'' 
        means each of the following:
                    [(i) The Committee on Armed Services and 
                the Committee on Appropriations of the Senate.
                    [(ii) The Committee on Armed Services and 
                the Committee on Appropriations of the House of 
                Representatives.]

           *       *       *       *       *       *       *

CHAPTER 56--DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
FUND

           *       *       *       *       *       *       *

Sec. 1115. Determination of contributions to the Fund

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) Not less often than every four years, the Secretary 
of Defense shall carry out an actuarial valuation of the Fund. 
Each such actuarial valuation shall include--
            (A) * * *

           *       *       *       *       *       *       *

Such single level dollar amounts shall be used for the purposes 
of subsection (b) and section 1116(a) of this title. In 
determining single level dollar amounts under subparagraphs (A) 
and (B) of this paragraph, the Secretary of Defense may 
determine a separate single level dollar amount under either or 
both subparagraphs 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.

           *       *       *       *       *       *       *

CHAPTER 57--DECORATIONS AND AWARDS

           *       *       *       *       *       *       *

Sec. 1130. Consideration of proposals for decorations not previously 
                    submitted in timely fashion: procedures for review 
                    and recommendation

    (a) Upon request of a Member of Congress, the Secretary 
concerned shall review a proposal for the award or presentation 
of a decoration (or the upgrading of a decoration), either for 
an individual or a unit, that is not otherwise authorized to be 
presented or awarded due to limitations established by law or 
policy for timely submission of a recommendation for such award 
or presentation. Based upon such review, the Secretary shall 
make a determination as to the merits of approving the award or 
presentation of the decoration and [the other determinations 
necessary to comply with subsection (b)] respond with a 
detailed description of the rationale supporting the 
determination.
    [(b) Upon making a determination under subsection (a) as to 
the merits of approving the award or presentation of the 
decoration, the Secretary concerned shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives and to the 
requesting member of Congress notice in writing of one of the 
following:
            [(1) The award or presentation of the decoration 
        does not warrant approval on the merits.
            [(2) The award or presentation of the decoration 
        warrants approval and a waiver by law of time 
        restrictions prescribed by law is recommended.
            [(3) The award or presentation of the decoration 
        warrants approval on the merits and has been approved 
        as an exception to policy.
            [(4) The award or presentation of the decoration 
        warrants approval on the merits, but a waiver of the 
        time restrictions prescribed by law or policy is not 
        recommended.
A notice under paragraph (1) or (4) shall be accompanied by a 
statement of the reasons for the decision of the Secretary.]

           *       *       *       *       *       *       *

CHAPTER 69--RETIRED GRADE

           *       *       *       *       *       *       *

Sec. 1370. Commissioned officers: general rule; exceptions

    (a) Rule for Retirement in Highest Grade Held 
Satisfactorily.--(1) Unless entitled to a higher retired grade 
under some other provision of law, a commissioned officer 
(other than a commissioned warrant officer) of the Army, Navy, 
Air Force, or Marine Corps who retires under any provision of 
law other than chapter 61 or chapter 1223 of this title shall, 
[except as provided in paragraph (2)] subject to paragraphs (2) 
and (3), be retired in the highest grade in which he served on 
active duty satisfactorily, as determined by the Secretary of 
the military department concerned[, for not less than six 
months].
    [(2)(A) In order to be eligible for voluntary retirement 
under any provision of this title in a grade above major or 
lieutenant commander, a commissioned officer of the Army, Navy, 
Air Force, or Marine Corps must have served on active duty in 
that grade for not less than three years, except that the 
Secretary of Defense may authorize the Secretary of a military 
department to reduce such period to a period not less than two 
years in the case of retirements effective during the period 
beginning on October 1, 2002, and ending on December 31, 2003.
    [(B) In the case of an officer to be retired in a general 
or flag officer grade, authority provided by the Secretary of 
Defense to the Secretary of a military department under 
subparagraph (A) may be exercised with respect to that officer 
only if approved by the Secretary of Defense or another 
civilian official in the Office of the Secretary of Defense 
appointed by the President, by and with the advice and consent 
of the Senate.
    [(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may 
be delegated within that military department only to a civilian 
official of that military department appointed by the 
President, by and with the advice and consent of the Senate.
    [(D) The President may waive subparagraph (A) in individual 
cases involving extreme hardship or exceptional or unusual 
circumstances. The authority of the President under the 
preceding sentence may not be delegated.
    [(E) In the case of a grade below the grade of lieutenant 
general or vice admiral, the number of members of one of the 
armed forces in that grade for whom a reduction is made during 
any fiscal year in the period of service-in-grade otherwise 
required under this paragraph may not exceed the number equal 
to two percent of the authorized active-duty strength for that 
fiscal year for officers of that armed force in that grade.]
    (2) In order to be eligible for voluntary retirement under 
this title in a grade below the grade of lieutenant colonel or 
commander, a commissioned officer of the Army, Navy, Air Force, 
or Marine Corps covered by paragraph (1) must have served on 
active duty in that grade for not less than six months.
    (3)(A) In order to be eligible for voluntary retirement in 
a grade above major or lieutenant commander and below brigadier 
general or rear admiral (lower half), a commissioned officer of 
the Army, Navy, Air Force, or Marine Corps covered by paragraph 
(1) must have served on active duty in that grade for not less 
than three years, except that the Secretary of Defense may 
authorize the Secretary of the military department concerned to 
reduce such period to a period not less than two years.
    (B) In order to be eligible for voluntary retirement in a 
grade above colonel or captain, in the case of the Navy, a 
commissioned officer of the Army, Navy, Air Force, or Marine 
Corps covered by paragraph (1) must have served on active duty 
in that grade for not less than one year.
    (C) An officer in a grade above major general or rear 
admiral may be retired in the highest grade in which the 
officer served on active duty satisfactorily for not less than 
one year, upon approval by the Secretary of the military 
department concerned and concurrence by the Secretary of 
Defense. The function of the Secretary of Defense under the 
preceding sentence may only be delegated to a civilian official 
in the Office of the Secretary of Defense appointed by the 
President, by and with the advice and consent of the Senate.
    (D) The President may waive subparagraph (A), (B) or (C) in 
individual cases involving extreme hardship or exceptional or 
unusual circumstances. The authority of the President under the 
preceding sentence may not be delegated.
    [(3)] (4) A reserve or temporary officer who is notified 
that he will be released from active duty without his consent 
and thereafter requests retirement under section 3911, 6323, or 
8911 of this title and is retired pursuant to that request is 
considered for purposes of this section, to have been retired 
involuntarily. An officer retired pursuant to section 
1186(b)(1) of this title is considered for purposes of this 
section to have been retired voluntarily.
    (b) Retirement in Next Lower Grade.--An officer whose 
length of service in the highest grade he held while on active 
duty does not meet the service in grade requirements specified 
in subsection (a) or whose service on active duty in that grade 
was not determined to be satisfactory by the Secretary of the 
military department concerned shall be retired in the next 
lower grade in which he served on active duty satisfactorily, 
as determined by the Secretary of the military department 
concerned, for not less than six months.
    [(c) Officers in O-9 and O-10 Grades.--(1) An officer who 
is serving in or has served in the grade of general or admiral 
or lieutenant general or vice admiral may be retired in that 
grade under subsection (a) only after the Secretary of Defense 
certifies in writing to the President and Congress that the 
officer served on active duty satisfactorily in that grade.
    [(2) In the case of an officer covered by paragraph (1), 
the three-year service-in-grade requirement in paragraph (2)(A) 
of subsection (a) may not be reduced or waived under that 
subsection--
            [(A) while the officer is under investigation for 
        alleged misconduct; or
            [(B) while there is pending the disposition of an 
        adverse personnel action against the officer for 
        alleged misconduct.
    [(3)(A) The Secretary of Defense may delegate authority to 
make a certification with respect to an officer under paragraph 
(1) only to the Under Secretary of Defense for Personnel and 
Readiness or the Deputy Under Secretary of Defense for 
Personnel and Readiness.
    [(B) If authority is delegated under subparagraph (A) and, 
in the course of consideration of an officer for a 
certification under paragraph (1), the Under Secretary or (if 
such authority is delegated to both the Under and Deputy Under 
Secretary) the Deputy Under Secretary makes a determination 
described in subparagraph (C) with respect to that officer, the 
Under Secretary or Deputy Under Secretary, as the case may be, 
may not exercise the delegated authority in that case, but 
shall refer the matter to the Secretary of Defense, who shall 
personally determine whether to issue a certification under 
paragraph (1) with respect to that officer.
    [(C) A determination referred to in subparagraph (B) is a 
determination that there is potentially adverse information 
concerning an officer and that such information has not 
previously been submitted to the Senate in connection with the 
consideration by the Senate of a nomination of that officer for 
an appointment for which the advice and consent of the Senate 
is required.]
    [(d)] (c) Reserve Officers.--(1) * * *

           *       *       *       *       *       *       *

    (3)(A)(i) In order to be credited with satisfactory service 
in an officer grade above major or lieutenant commander and 
below brigadier general or rear admiral (lower half), a person 
covered by paragraph (1) must have served satisfactorily in 
that grade (as determined by the Secretary of the military 
department concerned) as a reserve commissioned officer in an 
active status, or in a retired status on active duty, for not 
less than three years, except that the Secretary of Defense may 
authorize the Secretary of the military department concerned to 
reduce such period to a period not less than two years.
    (ii) In order to be credited with satisfactory service in a 
grade above colonel or captain, in the case of the Navy, a 
person covered by paragraph (1) must have served satisfactorily 
in that grade (as determined by the Secretary of the military 
department concerned) as a reserve commissioned officer in 
active status, or in a retired status on active duty, for not 
less than one year.
    (iii) An officer covered by paragraph (1) who is in a grade 
above the grade of major general or rear admiral may be retired 
in the highest grade in which the officer served satisfactorily 
for not less than one year, upon approval by the Secretary of 
the military department concerned and concurrence by the 
Secretary of Defense. The function of the Secretary of Defense 
under the preceding sentence may only be delegated to a 
civilian official in the Office of the Secretary of Defense 
appointed by the president, by and with the advice and consent 
of the Senate.

           *       *       *       *       *       *       *

    (D) To the extent authorized by the Secretary of the 
military department concerned, a person who, after having been 
recommended for promotion in a report of a promotion board but 
before being promoted to the recommended grade, served in a 
position for which that grade is the minimum authorized grade 
may be credited for purposes of subparagraph (A)(i) as having 
served in that grade for the period for which the person served 
in that position while in the next lower grade. The period 
credited may not include any period before the date on which 
the Senate provides advice and consent for the appointment of 
that person in the recommended grade.
    (E) To the extent authorized by the Secretary of the 
military department concerned, a person who, after having been 
found qualified for Federal recognition in a higher grade by a 
board under section 307 of title 32, serves in a position for 
which that grade is the minimum authorized grade and is 
appointed as a reserve officer in that grade may be credited 
for the purposes of subparagraph (A)(i) as having served in 
that grade. The period of the service for which credit is 
afforded under the preceding sentence may only be the period 
for which the person served in the position after the Senate 
provides advice and consent for the appointment.
    [(F) A person covered by subparagraph (A) who has completed 
at least six months of satisfactory service in a grade above 
colonel or (in the case of the Navy) captain and, while serving 
in an active status in such grade, is involuntarily transferred 
(other than for cause) from active status may be credited with 
satisfactory service in the grade in which serving at the time 
of such transfer, notwithstanding failure of the person to 
complete three years of service in that grade.]

           *       *       *       *       *       *       *

    [(5)(A) The Secretary of Defense may authorize the 
Secretary of a military department to reduce the 3-year period 
required by paragraph (3)(A) to a period not less than 2 years 
in the case of transfers to the Retired Reserve and discharges 
of retirement-qualified officers effective during the period 
beginning on October 1, 2002, and ending on December 31, 2003.
    [(B) In the case of a person who, upon transfer to the 
Retired Reserve or discharge, is to be credited with 
satisfactory service in a general or flag officer grade under 
paragraph (1), authority provided by the Secretary of Defense 
to the Secretary of a military department under subparagraph 
(A) may be exercised with respect to that person only if 
approved by the Secretary of Defense or another civilian 
official in the Office of the Secretary of Defense appointed by 
the President, by and with the advice and consent of the 
Senate.
    [(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may 
be delegated within that military department only to a civilian 
official of that military department appointed by the 
President, by and with the advice and consent of the Senate.
    [(6) The number of reserve commissioned officers of an 
armed force in the same grade for whom a reduction is made 
during any fiscal year in the period of service-in-grade 
otherwise required under paragraph (5) may not exceed the 
number equal to 2 percent of the strength authorized for that 
fiscal year for reserve commissioned officers of that armed 
force in an active status in that grade.
    [(e) Advance Notice to Congressional Committees.--(1) In 
the case of an officer to be retired in a grade that is a 
general or flag officer grade who is eligible to retire in that 
grade only by reason of an exercise of authority under 
paragraph (2) of subsection (a) to reduce the three-year 
service-in-grade requirement otherwise applicable under that 
paragraph, the Secretary of Defense, before the officer is 
retired in that grade, shall notify the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives of the exercise of authority under 
that paragraph with respect to that officer.]

           *       *       *       *       *       *       *

CHAPTER 71--COMPUTATION OF RETIRED PAY

           *       *       *       *       *       *       *

Sec. 1406. Retired pay base for members who first became members before 
                    September 8, 1980: final basic pay

    (a) * * *

           *       *       *       *       *       *       *

    (i) Special Rule for Former Chairmen and Vice Chairmen of 
the JCS, Chiefs of Service, and Senior Enlisted Members.--
            (1) * * *
            (2) Exception for [members reduced in grade or who 
        do not serve satisfactorily] enlisted members reduced 
        in grade.--Paragraph (1) does not apply in the case of 
        [a member] an enlisted member who, while or after 
        serving in a position specified in that paragraph and 
        by reason of conduct occurring after October 16, 
        [1998--
                    [(A) in the case of an enlisted member, is 
                reduced in] 1998, is reduced in grade as the 
                result of a court-martial sentence, nonjudicial 
                punishment, or other administrative process[; 
                or].
                    [(B) in the case an officer, is not 
                certified by the Secretary of Defense under 
                section 1370(c) of this title as having served 
                on active duty satisfactorily in the grade of 
                general or admiral, as the case may be, while 
                serving in that position.]

           *       *       *       *       *       *       *

Sec. 1413. Special compensation for certain severely disabled uniformed 
                    services retirees

    (a) * * *

           *       *       *       *       *       *       *

    (g) Source of Funds.--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. 
Payments under this section for any other member for any fiscal 
year shall be paid out of funds appropriated for pay and 
allowances payable by the Secretary concerned for that fiscal 
year.

           *       *       *       *       *       *       *

Sec. 1413a. Special compensation for certain combat-related disabled 
                    uniformed services retirees

    (a) * * *

           *       *       *       *       *       *       *

    (h) Source of Payments.--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. 
Payments under this section for any other member for any fiscal 
year shall be paid out of funds appropriated for pay and 
allowances payable by the Secretary concerned for that fiscal 
year.

           *       *       *       *       *       *       *

CHAPTER 74--DEPARTMENT OF DEFENSE MILITARY RETIREMENT FUND

           *       *       *       *       *       *       *

Sec. 1463. Payments from the Fund

    (a) There shall be paid from the Fund--
            (1) retired pay payable to members on the retired 
        lists of the Army, Navy, Air Force, and Marine Corps 
        and payments under section 1413, 1413a, or 1414 of this 
        title paid to such members;

           *       *       *       *       *       *       *

Sec. 1465. Determination of contributions to the Fund

    (a) * * *
    (b)(1) * * *

           *       *       *       *       *       *       *

    (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).
    (c)(1) Not less often than every four years, the Secretary 
of Defense shall carry out an actuarial valuation of Department 
of Defense military retirement and survivor benefit programs. 
Each actuarial valuation of such programs shall include--
            (A) a determination (using the aggregate entry-age 
        normal cost method) of a single level percentage of 
        basic pay for members of the armed forces (other than 
        the Coast Guard) on active duty (other than active duty 
        for training) or full-time National Guard duty (other 
        than full-time National Guard duty for training only), 
        to be determined without regard to section 1413, 1413a, 
        or 1414 of this title; and
            (B) a determination (using the aggregate entry-age 
        normal cost method) of a single level percentage of 
        basic pay and of compensation (paid pursuant to section 
        206 of title 37) for members of the Ready Reserve of 
        the armed forces (other than the Coast Guard and other 
        than members on full-time National Guard duty other 
        than for training) who are not otherwise described by 
        subparagraph (A), to be determined without regard to 
        section 1413, 1413a, or 1414 of this title.
Such single level percentages shall be used for the purposes of 
subsection (b)(1) and section 1466(a) of this title.

           *       *       *       *       *       *       *

    (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 section 1413, 1413a, or 1414 of this 
        title (whichever is in effect).
            (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 section 1413, 1413a, or 1414 of this 
        title (whichever is in effect).
Such single level percentages shall be used for the purposes of 
subsection (b)(3).
    [(4)] (5) Contributions to the Fund in accordance with 
amortization schedules under paragraphs (2) and (3) shall be 
made as provided in section 1466(b) of this title.

           *       *       *       *       *       *       *

Sec. 1466. Payments into the Fund

    (a) * * *
    (b)(1) At the beginning of each fiscal year the Secretary 
of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury the amount certified to the 
Secretary by the Secretary of Defense under paragraph (3). Such 
payment shall be the contribution to the Fund for that fiscal 
year required by [sections 1465(a) and 1465(c)] sections 
1465(a), 1465(b)(3), 1465(c)(2), and 1465(c)(3) of this title.
    (2) At the beginning of each fiscal year the Secretary of 
Defense shall determine the sum of the following:
            (A) * * *

           *       *       *       *       *       *       *

            (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.

           *       *       *       *       *       *       *

CHAPTER 75--DECEASED PERSONNEL

           *       *       *       *       *       *       *

SUBCHAPTER II--DEATH BENEFITS

           *       *       *       *       *       *       *

Sec. 1490. Transportation of remains: certain retired members and 
                    dependents who die in military medical facilities

    (a) Subject to subsection (b), when a member entitled to 
retired or retainer pay or equivalent pay, or a dependent of 
such a member, dies while properly admitted under chapter 55 of 
this title to a medical facility of the armed forces [located 
in the United States], the Secretary concerned may transport 
the remains, or pay the cost of transporting the remains, of 
the decedent to the place of burial of the decedent.
    (b)(1) Transportation provided under this section may not 
be to a place [outside the United States or to a place] further 
from the place of death than the decedent's last place of 
permanent residence, and any amount paid under this section may 
not exceed the cost of transportation from the place of death 
to the decedent's last place of permanent residence.

           *       *       *       *       *       *       *

    [(c) In this section:
            [(1) The term ``United States'' includes the 
        Commonwealth of Puerto Rico and the territories and 
        possessions of the United States.
            [(2) The term ``dependent'' has the meaning given 
        such term in section 1072(2) of this title.]
    (c) Definition of Dependent.--In this section, the term 
``dependent'' has the meaning given such term in section 
1072(2) of this title.

           *       *       *       *       *       *       *

CHAPTER 79--CORRECTION OF MILITARY RECORDS

           *       *       *       *       *       *       *

Sec. 1557. Timeliness standards for disposition of applications before 
                    Corrections Boards

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Reports on Failure To Meet Timeliness Standards.--The 
Secretary of the military department concerned shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report not 
later than June 1 following any fiscal year during which the 
Corrections Board of that Secretary's military department was 
unable to meet the applicable timeliness standard for that 
fiscal year under subsections (a) and (b). The report shall 
specify the reasons why the standard could not be met and the 
corrective actions initiated to ensure compliance in the 
future. The report shall also specify the number of waivers 
granted under subsection (c) during that fiscal year.]

           *       *       *       *       *       *       *

CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

           *       *       *       *       *       *       *

Sec. 1563. Consideration of proposals for posthumous and honorary 
                    promotions and appointments: procedures for review 
                    and recommendation

    (a) Review by Secretary Concerned.--Upon request of a 
Member of Congress, the Secretary concerned shall review a 
proposal for the posthumous or honorary promotion or 
appointment of a member or former member of the armed forces, 
or any other person considered qualified, that is not otherwise 
authorized by law. Based upon such review, the Secretary shall 
make a determination as to the merits of approving the 
posthumous or honorary promotion or appointment and [the other 
determinations necessary to comply with subsection (b)] respond 
with a detailed description of the rationale supporting the 
determination.
    [(b) Notice of Results of Review.--Upon making a 
determination under subsection (a) as to the merits of 
approving the posthumous or honorary promotion or appointment, 
the Secretary concerned shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives and to the requesting Member of 
Congress notice in writing of one of the following:
            [(1) The posthumous or honorary promotion or 
        appointment does not warrant approval on the merits.
            [(2) The posthumous or honorary promotion or 
        appointment warrants approval and authorization by law 
        for the promotion or appointment is recommended.
            [(3) The posthumous or honorary promotion or 
        appointment warrants approval on the merits and has 
        been recommended to the President as an exception to 
        policy.
            [(4) The posthumous or honorary promotion or 
        appointment warrants approval on the merits and 
        authorization by law for the promotion or appointment 
        is required but is not recommended.
A notice under paragraph (1) or (4) shall be accompanied by a 
statement of the reasons for the decision of the Secretary.]

           *       *       *       *       *       *       *

CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

           *       *       *       *       *       *       *

SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

           *       *       *       *       *       *       *

Sec. 1614. Definitions

    In this subchapter:
            (1) * * *
            (2) The term ``intelligence component of the 
        Department of Defense'' means any of the following:
                    (A) * * *

           *       *       *       *       *       *       *

                    (C) The [National Imagery and Mapping 
                Agency] National Geospatial-Intelligence 
                Agency.

           *       *       *       *       *       *       *

              SUBCHAPTER V--GENERAL MANAGEMENT PROVISIONS

Sec.
1761.    Management information system.
     * * * * * * *
1765.    Defense acquisition workforce: limitation.

           *       *       *       *       *       *       *

Sec. 1765. Defense acquisition workforce: limitation

    (a) Limitation.--Effective October 1, 2008, the number of 
defense acquisition and support personnel in the Department of 
Defense may not exceed 75 percent of the baseline number.
    (b) Phased Reduction.--The number of defense acquisition 
and support personnel in the Department of Defense--
            (1) as of October 1, 2004, may not exceed 95 
        percent of the baseline number;
            (2) as of October 1, 2005, may not exceed 90 
        percent of the baseline number;
            (3) as of October 1, 2006, may not exceed 85 
        percent of the baseline number; and
            (4) as of October 1, 2007, may not exceed 80 
        percent of the baseline number.
    (c) Baseline Number.--In this section, the term ``baseline 
number'' means the number of defense acquisition and support 
personnel in the Department of Defense as of October 1, 2003.
    (d) Defense Acquisition and Support Personnel Defined.--In 
this section, the term ``defense acquisition and support 
personnel'' means military 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 organizations which the Secretary may determine 
to have a predominantly acquisition mission.

           *       *       *       *       *       *       *

CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

           *       *       *       *       *       *       *

                 SUBCHAPTER I--MILITARY FAMILY PROGRAMS

Sec.
1781. Office of Family Policy.
     * * * * * * *
 1789. Chaplain-led programs: authorized support.

           *       *       *       *       *       *       *

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.

           *       *       *       *       *       *       *

PART III--TRAINING AND EDUCATION

           *       *       *       *       *       *       *

CHAPTER 101--TRAINING GENERALLY

           *       *       *       *       *       *       *

Sec. 2002. Dependents of members of armed forces: language training

    (a) Notwithstanding section 701(b) of the Foreign Service 
Act of 1980 (22 U.S.C. 4021(b)) or any other provision of law, 
and under regulations to be prescribed by the Secretary of 
Defense or, with respect to the Coast Guard when it is not 
operating as a service in the Navy, the Secretary of Homeland 
Security, language training may be provided in--
            (1) * * *
            (2) a facility of the [Foreign Service Institute] 
        George P. Schultz National Foreign Affairs Training 
        Center established under section 701(a) of the Foreign 
        Service Act of 1980 (22 U.S.C. 4021(a)); or

           *       *       *       *       *       *       *

Sec. 2010. Participation of developing countries in combined exercises: 
                    payment of incremental expenses

    (a) * * *
    [(b) The Secretary of Defense shall submit to Congress a 
report each year, not later than March 1, containing--
            [(1) a list of the developing countries for which 
        expenses have been paid by the United States under this 
        section during the preceding year; and
            [(2) the amounts expended on behalf of each 
        government.]

           *       *       *       *       *       *       *

          CHAPTER 103--SENIOR RESERVE OFFICERS' TRAINING CORPS

Sec.
2101.    Definitions.
     * * * * * * *
2103a.    Students not eligible for advanced training: commitment to 
          military service.

           *       *       *       *       *       *       *

Sec. 2103a. Students not eligible for advanced training: commitment to 
                    military service

    (a) 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) 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) 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.

           *       *       *       *       *       *       *

Sec. 2107. Financial assistance program for specially selected members

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) * * *

           *       *       *       *       *       *       *

    (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 other 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).

           *       *       *       *       *       *       *

Sec. 2107a. Financial assistance program for specially selected 
                    members: Army Reserve and Army National Guard

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) The Secretary of the Army shall provide for the 
payment of all expenses of the Department of the Army in 
administering the financial assistance program under this 
section, including the cost of tuition, fees, books, and 
laboratory expenses which are incurred by members of the 
program appointed as cadets under this section while such 
members are students at a military junior college.
    (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 other 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).

           *       *       *       *       *       *       *

    (h) The Secretary of the Army shall appoint not more than 
208 cadets each year under this section, to include not less 
than [10] 17 cadets at each military junior college at which 
there are not less than [10] 17 members of the program eligible 
under subsection (b) for such an appointment. At any military 
junior college at which in any year there are fewer than [10] 
17 such members, the Secretary shall appoint each such member 
as a cadet under this section.

           *       *       *       *       *       *       *

   CHAPTER 105--ARMED FORCES HEALTH PROFESSIONS FINANCIAL ASSISTANCE 
PROGRAMS

           *       *       *       *       *       *       *

SUBCHAPTER II--NURSE OFFICER CANDIDATE ACCESSION PROGRAM

           *       *       *       *       *       *       *

Sec. 2130a. Financial assistance: nurse officer candidates

    (a) Bonus Authorized.--(1) A person described in subsection 
(b) who, during the period beginning on November 29, 1989, and 
ending on [December 31, 2003] December 31, 2004, executes a 
written agreement in accordance with subsection (c) to accept 
an appointment as a nurse officer may, upon the acceptance of 
the agreement by the Secretary concerned, be paid an accession 
bonus of not more than $10,000. The bonus shall be paid in 
periodic installments, as determined by the Secretary concerned 
at the time the agreement is accepted, except that the first 
installment may not exceed $5,000.

           *       *       *       *       *       *       *

CHAPTER 108--DEPARTMENT OF DEFENSE SCHOOLS

           *       *       *       *       *       *       *

Sec. 2166. Western Hemisphere Institute for Security Cooperation

    (a) * * *

           *       *       *       *       *       *       *

    (e) Board of Visitors.--(1) * * *

           *       *       *       *       *       *       *

    (5) Not later than 60 days after its annual meeting, the 
Board shall submit to the Secretary of Defense and to Congress 
a written report of its activities and of its views and 
recommendations pertaining to the Institute.

           *       *       *       *       *       *       *

    [(i) Annual Report.--Not later than March 15 of each year, 
the Secretary of Defense shall submit to Congress a detailed 
report on the activities of the Institute during the preceding 
year. The report shall include a copy of the latest report of 
the Board of Visitors received by the Secretary under 
subsection (e)(5), together with any comments of the Secretary 
on the Board's report. The report shall be prepared in 
consultation with the Secretary of State.]

           *       *       *       *       *       *       *

CHAPTER 111--SUPPORT OF SCIENCE, MATHEMATICS, AND ENGINEERING EDUCATION

           *       *       *       *       *       *       *

Sec. 2195. Department of Defense cooperative education programs

    (a) * * *

           *       *       *       *       *       *       *

    (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.

           *       *       *       *       *       *       *

               PART IV--SERVICE, SUPPLY, AND PROCUREMENT

Chap.                                                               Sec.
      Planning and Coordination.....................................2201
     * * * * * * *
[2701] 2700mental Restoration.........................................

           *       *       *       *       *       *       *

                 CHAPTER 131--PLANNING AND COORDINATION

Sec.
2201.    Apportionment of funds: authority for exemption; excepted 
          expenses.
     * * * * * * *
[2224a.   Information security: continued applicability of expiring 
          Governmentwide requirements to the Department of Defense.]
     * * * * * * *

Sec. 2208. Working-capital funds

    (a) * * *

           *       *       *       *       *       *       *

    (j)(1) * * *
    (2) The Secretary of Defense may waive the conditions in 
paragraph (1) in the case of a particular sale if the Secretary 
determines that the waiver is necessary for reasons of national 
security [and notifies Congress regarding the reasons for the 
waiver].

           *       *       *       *       *       *       *

Sec. 2214. Transfer of funds: procedure and limitations

    (a) * * *
    (b) Transfer of Procurement Funds For Development 
Activities for Major Defense Acquisition Systems.--(1) In the 
case of a major defense acquisition program (as defined in 
section 2430 of this title) for which funds are currently 
available both for procurement and for research, development, 
test, and evaluation, if the Secretary concerned determines 
that funds are required for further research, development, 
test, and evaluation activities for that program in excess of 
the funds currently available for that purpose, the Secretary 
may (subject to paragraph (2)) transfer funds available for 
that program for procurement to funds available for that 
program for research, development, test, and evaluation for the 
purpose of continuing research, development, test, and 
evaluation activities for that program.
    (2)(A) The total amount transferred under the authority of 
paragraph (1) for any acquisition program may not exceed 
$20,000,000.
    (B) The total amount transferred under the authority of 
paragraph (1) from amounts made available for any fiscal year 
may not exceed $250,000,000.
    (3) The authority provided by paragraph (1) is in addition 
to any other transfer authority that may be provided by law.
    (4) Upon a determination that all or part of the funds 
transferred under paragraph (1) are not necessary for the 
purpose for which the transfer was made, such amounts may be 
transferred back to a Procurement appropriation for the purpose 
of procurement of the acquisition program for which funds were 
transferred.
    [(b)] (c) Limitations on Programs for Which Authority May 
Be Used.--Such authority to transfer amounts--
            (1) * * *

           *       *       *       *       *       *       *

    [(c)] (d) Notice to Congress.--The Secretary of Defense 
shall promptly notify the Congress of each transfer made under 
such authority to transfer amounts.
    [(d)] (e) Limitations on Requests to Congress for 
Reprogrammings.--Neither the Secretary of Defense nor the 
Secretary of a military department may prepare or present to 
the Congress, or to any committee of either House of the 
Congress, a request with respect to a reprogramming of funds--
            (1) unless the funds to be transferred are to be 
        used for a higher priority item, based on unforeseen 
        military requirements, than the item for which the 
        funds were originally appropriated; or
            (2) if the request would be for authority to 
        reprogram amounts to an item for which the Congress has 
        denied funds.

           *       *       *       *       *       *       *

Sec. 2216. Defense Modernization Account

    (a) Establishment.--There is established in the Treasury an 
account to be known as the ``Defense Modernization Account''.

           *       *       *       *       *       *       *

    (j) Definitions.--In this section:
            (1) * * *

           *       *       *       *       *       *       *

            [(3) 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.]

           *       *       *       *       *       *       *

Sec. 2218. National Defense Sealift Fund

    (a) * * *

           *       *       *       *       *       *       *

    (l) Definitions.--In this section:
            (1) * * *

           *       *       *       *       *       *       *

            [(4) 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.]
            [(5)] (4) The term ``head of an agency'' has the 
        meaning given that term in section 2302(1) of this 
        title.

           *       *       *       *       *       *       *

Sec. 2223. Information technology: additional responsibilities of Chief 
                    Information Officers

    (a) * * *

           *       *       *       *       *       *       *

    (c) Performance-based and Results-based Management.--In 
addition to the responsibilities provided for in subsections 
(a) and (b), the Chief Information Officer of the Department of 
Defense and the Chief Information Officer of a military 
department shall--
            (1) encourage the use of performance-based and 
        results-based management in fulfilling the 
        responsibilities provided for in subsections (a) and 
        (b), as applicable;
            (2) evaluate the information resources management 
        practices of the department concerned with respect to 
        the performance and results of the investments made by 
        the department in information technology;
            (3) establish effective and efficient capital 
        planning processes for selecting, managing, and 
        evaluating the results of all of the department's major 
        investments in information systems;
            (4) ensure that any analysis of the missions of the 
        department is adequate and make recommendations, as 
        appropriate, on the department's mission-related 
        processes, administrative processes, and any 
        significant investments in information technology to be 
        used in support of those missions; and
            (5) ensure that information security policies, 
        procedures, and practices are adequate.
    (d) Defense Agencies and Field Activities.--The Secretary 
of Defense shall require the Director of each Defense Agency 
and Department of Defense Field Activity to ensure that the 
responsibilities set forth in subsections (b) and (c) for Chief 
Information Officers of military departments are carried out 
within the Agency or Field Activity by any officer or employee 
acting as a chief information officer or carrying out duties 
similar to a chief information officer.
    [(c)] (e) Definitions.--In this section:
            (1) * * *

           *       *       *       *       *       *       *

Sec. 2224. Defense Information Assurance Program

    (a) * * *

           *       *       *       *       *       *       *

    (c) Program Strategy.--In carrying out the program, the 
Secretary shall develop a program strategy that encompasses 
those actions necessary to assure the readiness, reliability, 
continuity, and integrity of Defense information systems, 
networks, and infrastructure, including through compliance with 
subtitle II of chapter 35 of title 44, including through 
compliance with [subchapter III] subchapter II of chapter 35 of 
title 44. The program strategy shall include the following:
            (1) * * *

           *       *       *       *       *       *       *

    (e) Annual Report.--Each year through 2007, at or about the 
time the President submits the annual budget for the next 
fiscal year pursuant to section 1105 of title 31, the Secretary 
shall submit to Congress a report on the Defense Information 
Assurance Program. Each report shall include the following:
            (1) * * *

           *       *       *       *       *       *       *

[Sec. 2224a. Information security: continued applicability of expiring 
                    Governmentwide requirements to the Department of 
                    Defense

    [(a) In General.--The provisions of subchapter II of 
chapter 35 of title 44 shall continue to apply through 
September 30, 2004, with respect to the Department of Defense, 
notwithstanding the expiration of authority under section 3536 
of such title.
    [(b) Responsibilities.--In administering the provisions of 
subchapter II of chapter 35 of title 44 with respect to the 
Department of Defense after the expiration of authority under 
section 3536 of such title, the Secretary of Defense shall 
perform the duties set forth in that subchapter for the 
Director of the Office of Management and Budget.]

Sec. 2225. Information technology purchases: tracking and management

    (a) * * *

           *       *       *       *       *       *       *

    (d) Limitation on Certain Purchases.--No purchase of 
information technology products or services in excess of the 
simplified acquisition threshold shall be made for the 
Department of Defense from a Federal agency outside the 
Department of Defense unless--
            (1) * * *
            (2)(A) * * *

           *       *       *       *       *       *       *

            (B) in the case of a purchase by a military 
        department, the purchase is approved by the [senior 
        procurement executive] Chief Acquisition Officer of the 
        military department.

           *       *       *       *       *       *       *

    (f ) Definitions.--In this section:
            (1) The term ``[senior procurement executive] Chief 
        Acquisition Officer'', with respect to a military 
        department, means the official designated as the senior 
        procurement executive for the military department for 
        the purposes of section 16(3) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(3)).

           *       *       *       *       *       *       *

CHAPTER 134--MISCELLANEOUS ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *

SUBCHAPTER I--MISCELLANEOUS AUTHORITIES, PROHIBITIONS, AND LIMITATIONS 
                    ON THE USE OF APPROPRIATED FUNDS

Sec.
2241.    Availability of appropriations for certain purposes.
     * * * * * * *
2244a.   Equipment scheduled for retirement or disposal: limitation on 
          expenditures for modifications.
     * * * * * * *
[2248.    Purchase of surety bonds: prohibition.]

           *       *       *       *       *       *       *

Sec. 2244a. Equipment scheduled for retirement or disposal: limitation 
                    on expenditures for modifications

    (a) Prohibition.--Except as otherwise provided in this 
section, the Secretary of a military department may not carry 
out a significant modification of an aircraft, weapon, vessel, 
or other item of equipment that the Secretary plans to retire 
or otherwise dispose of within five years after the date on 
which the modification, if carried out, would be completed.
    (b) Significant Modifications Defined.--For purposes of 
this section, a significant modification is any modification 
for which the cost is in an amount equal to or greater than 
$1,000,000.
    (c) Exception for Safety Modifications.--The prohibition in 
subsection (a) does not apply to a safety modification.
    (d) Waiver Authority.--The Secretary concerned may waive 
the prohibition in subsection (a) in the case of any 
modification otherwise subject to that subsection if the 
Secretary determines that carrying out the modification is in 
the national security interest of the United States. Whenever 
the Secretary issues such a waiver, the Secretary shall notify 
the congressional defense committees in writing.

           *       *       *       *       *       *       *

[Sec. 2248. Purchase of surety bonds: prohibition

    [Funds appropriated or otherwise made available to the 
Department of Defense for fiscal years 1995 through 1999 may 
not be obligated or expended for the purchase of surety bonds 
or other guarantees of financial responsibility in order to 
guarantee the performance of any direct function of the 
Department of Defense.]

           *       *       *       *       *       *       *

         SUBCHAPTER II--MISCELLANEOUS ADMINISTRATIVE AUTHORITY

Sec.
2251.    Household furnishings and other property: personnel outside the 
          United States or in Alaska or Hawaii.
     * * * * * * *
2258. Personal cellular telephones: reimbursement when used for 
          Government business.

           *       *       *       *       *       *       *

Sec. 2255. Aircraft accident investigation boards: composition 
                    requirements

    (a) * * *
    (b) Exception.--[(1)] The Secretary of the military 
department concerned may waive the requirement of subsection 
(a)(1) in the case of an aircraft accident if the Secretary 
determines that--
            (A)  it  is  not  practicable  to  meet  the  
        requirement because of--
                    (i) the remote location of the aircraft 
                accident;
                    (ii) an urgent need to promptly begin the 
                investi-
                gation; or
                    (iii) a lack of available persons outside 
                of the mishap unit who have adequate knowledge 
                and expertise regarding the type of aircraft 
                involved in the accident; and
            (B) the objectivity and independence of the 
        aircraft accident investigation board will not be 
        compromised.
    [(2) The Secretary shall notify Congress of a waiver 
exercised under this subsection and the reasons therefor.]

           *       *       *       *       *       *       *

Sec. 2258. Personal cellular telephones: reimbursement when used for 
                    Government business

    (a) General Authority.--The Secretary of Defense may 
reimburse members of the Army, Navy, Air Force, and Marine 
Corp, and civilian officers and employees of the Department of 
Defense, for cellular telephone use on a privately owned 
cellular telephone when used on official Government business. 
Such reimbursement shall be on a flat-rate basis.
    (b) Reimbursement Rate.--The Secretary of Defense may 
prescribe the reimbursement rate for purposes of subsection 
(a). That reimbursement rate may not exceed the equivalent 
Government costs of providing a cellular telephone to employees 
on official Government business.

           *       *       *       *       *       *       *

                      CHAPTER 135--SPACE PROGRAMS

Sec.
2271. Management of space programs: joint program offices and officer 
          management programs.
2272. Space surveillance network: pilot program for provision of 
          satellite tracking services and data to entities outside 
          United States Government.

           *       *       *       *       *       *       *

Sec. 2272. 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 Governmental 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 
Governmental entity, subject to an agreement described in 
subsection (c), 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) Required Agreement.--The Secretary may not provide 
space surveillance data support to a non-United States 
Governmental 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 (f); 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 Secretary's express approval.
    (d) Requirements With Respect to Foreign Transactions.--(1) 
The Secretary may enter into an agreement under subsection (c) 
to provide space surveillance data support to a foreign 
government or other foreign entity only with the concurrence of 
the Secretary of State.
    (2) In the case of such an agreement that is entered into 
with a foreign government or other foreign entity, the 
Secretary of Defense may provide approval under subsection 
(c)(2) for a transfer of data or technical information only 
with the concurrence of the Secretary of State.
    (e) Prohibition 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.--As a condition of an agreement under 
subsection (c), the Secretary of Defense may require the non-
United States Governmental entity entering into the agreement 
to pay to the Department of Defense--
            (1) such amounts as the Secretary determines to be 
        necessary to reimburse the Department of Defense for 
        the costs to the Department of providing space 
        surveillance data support under the agreement; and
            (2) any other amount or fee that the Secretary may 
        prescribe
    (g) Crediting of Funds Received.--Funds received pursuant 
to an agreement under this section shall be credited to 
accounts of the Department of Defense that are current when the 
proceeds are received and that are available for the same 
purposes as the accounts originally charged to perform the 
services. 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 
analytical support 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.

           *       *       *       *       *       *       *

         CHAPTER 136--PROVISIONS RELATING TO SPECIFIC PROGRAMS

Sec.
2281.    Global Positioning System.
[2282.    B-2 bomber: annual report.]

Sec. 2281. Global Positioning System

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Biennial Report.--(1) Not later than 30 days after the 
end of each even-numbered fiscal year, 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 report on the Global Positioning System. The 
report shall include a discussion of the following matters:
            [(A) The operational status of the system.
            [(B) The capability of the system to satisfy 
        effectively (i) the military requirements for the 
        system that are current as of the date of the report, 
        and (ii) the performance requirements of the Federal 
        Radionavigation Plan.
            [(C) The most recent determination by the President 
        regarding continued use of the selective availability 
        feature of the system and the expected date of any 
        change or elimination of the use of that feature.
            [(D) The status of cooperative activities 
        undertaken by the United States with the governments of 
        other countries concerning the capability of the system 
        or any augmentation of the system to satisfy civil, 
        commercial, scientific, and military requirements, 
        including a discussion of the status and results of 
        activities undertaken under any regional international 
        agreement.
            [(E) Any progress made toward establishing GPS as 
        an international standard for consistency of 
        navigational service.
            [(F) Any progress made toward protecting GPS from 
        disruption and interference.
            [(G) The effects of use of the system on national 
        security, regional security, and the economic 
        competitiveness of United States industry, including 
        the Global Positioning System equipment and service 
        industry and user industries.
    [(2) In preparing the parts of each such report required 
under subparagraphs (D), (E), (F), and (G) of paragraph (1), 
the Secretary of Defense shall consult with the Secretary of 
State, the Secretary of Commerce, and the Secretary of 
Transportation.]

           *       *       *       *       *       *       *

[Sec. 2282. B-2 bomber: annual report

    [Not later than March 1 of each year, 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 report on the B-2 bomber aircraft. Each such 
report shall include the following:
            [(1) Identification of the average full-mission 
        capable rate of B-2 aircraft for the preceding fiscal 
        year and the Secretary's overall assessment of the 
        implications of that full-mission capable rate on 
        mission accomplishment for the B-2 aircraft, together 
        with the Secretary's determination as to whether that 
        rate is adequate for the accomplishment of each of the 
        missions assigned to the B-2 aircraft as of the date of 
        the assessment.
            [(2) An assessment of the technical capabilities of 
        the B-2 aircraft and whether these capabilities are 
        adequate to accomplish each of the missions assigned to 
        that aircraft as of the date of the assessment.
            [(3) Identification of all ongoing and planned 
        development of technologies to enhance the capabilities 
        of that aircraft.
            [(4) Identification and assessment of additional 
        technologies that would make that aircraft more capable 
        or survivable against known and evolving threats.
            [(5) A fiscally phased program for each technology 
        identified in paragraphs (3) and (4) for the budget 
        year and the future-years defense program, based on the 
        following three funding situations:
                    [(A) The President's current budget.
                    [(B) The President's current budget and the 
                current Department of Defense unfunded priority 
                list.
                    [(C) The maximum executable funding for the 
                B-2 aircraft given the requirement to maintain 
                enough operationally ready aircraft to 
                accomplish missions assigned to the B-2 
                aircraft.]

           *       *       *       *       *       *       *

                   CHAPTER 137--PROCUREMENT GENERALLY

Sec.
2302.    Definitions.
     * * * * * * *
2305b.    Protests.

           *       *       *       *       *       *       *

Sec. 2302c. Implementation of electronic commerce capability

    (a) * * *
    (b) Designation of Agency Official.--The head of each 
agency named in paragraph (5) or (6) of section 2303(a) this 
title shall designate a program manager to implement the 
electronic commerce capability for that agency. The program 
manager shall report directly to an official at a level not 
lower than the [senior procurement executive] Chief Acquisition 
Officer designated for the agency under section 16(3) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 414(3)).

           *       *       *       *       *       *       *

Sec. 2304. Contracts: competition requirements

    (a) * * *

           *       *       *       *       *       *       *

    (f)(1) Except as provided in paragraph (2), the head of an 
agency may not award a contract using procedures other than 
competitive procedures unless--
            (A) * * *
            (B) the justification is approved--
                    (i) * * *

           *       *       *       *       *       *       *

                    (iii) in the case of a contract for an 
                amount exceeding $50,000,000, by the [senior 
                procurement executive] Chief Acquisition 
                Officer of the agency designated pursuant to 
                section 16(3) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 414(3)) 
                (without further delegation) or in the case of 
                the Under Secretary of Defense for Acquisition, 
                Technology, and Logistics, acting in his 
                capacity as the [senior procurement executive] 
                Chief Acquisition Officer for the Department of 
                Defense, the Under Secretary's delegate 
                designated pursuant to paragraph (6)(B); and

           *       *       *       *       *       *       *

Sec. 2304a. Task and delivery order contracts: general authority

    (a) * * *

           *       *       *       *       *       *       *

    (e) Contract Modifications.--(1) A task or delivery order 
may not increase the scope, period, or maximum value of the 
task or delivery order contract under which the order is 
issued. The scope, period, or maximum value of the contract may 
be increased only by modification of the contract.
    (2) Unless use of procedures other than competitive 
procedures is authorized by an exception in subsection (c) of 
section 2304 of this title and approved in accordance with 
subsection (f) of such section, competitive procedures shall be 
used for making such a modification.
    (3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416) and section 8(e) of the Small 
Business Act (15 U.S.C. 637(e)).
    [(f) Inapplicability to Contracts for Advisory and 
Assistance Services.--Except as otherwise specifically provided 
in section 2304b of this title, this section does not apply to 
a task or delivery order contract for the procurement of 
advisory and assistance services (as defined in section 1105(g) 
of title 31).]
    (f) Limitation on Contract Period.--The base period of a 
task order contract or delivery order contract entered into 
under this section may not exceed five years unless a longer 
period is specifically authorized in a law that is applicable 
to such contract. The contract may be extended for an 
additional 5 years (for a total contract period of not more 
than 10 years) through modifications, options, or otherwise.

           *       *       *       *       *       *       *

Sec. 2304b. Task order contracts: advisory and assistance services

    [(a) Authority To Award.--(1) Subject to the requirements 
of this section, section 2304c of this title, and other 
applicable law, the head of an agency may enter into a task 
order contract (as defined in section 2304d of this title) for 
procurement of advisory and assistance services.
    [(2) The head of an agency may enter into a task order 
contract for procurement of advisory and assistance services 
only under the authority of this section.
    [(b) Limitation on Contract Period.--The period of a task 
order contract entered into under this section, including all 
periods of extensions of the contract under options, 
modifications, or otherwise, may not exceed five years unless a 
longer period is specifically authorized in a law that is 
applicable to such contract.]
    (a) In General.--A task order contract (as defined in 
section 2304d of this title) for procurement of advisory and 
assistance services shall be subject to the requirements of 
this section, sections 2304a and 2304c of this title, and other 
applicable provisions of law.
    [(c)] (b) Content of Notice.--The notice required by 
section 18 of the Office of Federal Procurement Policy Act (41 
U.S.C. 416) and section 8(e) of the Small Business Act (15 
U.S.C. 637(e)) shall reasonably and fairly describe the general 
scope, magnitude, and duration of the proposed task order 
contract in a manner that would reasonably enable a potential 
offeror to decide whether to request the solicitation and 
consider submitting an offer.]
    [(d) Required Content of Solicitation and Contract.--(1) 
The solicitation for the proposed task order contract shall 
include the information (regarding services) described in 
section 2304a(b) of this title.
    [(2) A task order contract entered into under this section 
shall contain the same information that is required by 
paragraph (1) to be included in the solicitation of offers for 
that contract.]
    (c) Required Content of Contract.--A task order contract 
described in subsection (a) shall contain the same information 
that is required by section 2304a(b) to be included in the 
solicitation of offers for that contract.
    [(e)] (d) Multiple Awards.--(1) The head of an agency may, 
on the basis of one solicitation, award separate task order 
contracts [under this section] described in subsection (a) for 
the same or similar services to two or more sources if the 
solicitation states that the head of the agency has the option 
to do so.
    (2) If, in the case of a task order contract for advisory 
and assistance services to be entered into [under this 
section], the contract period is to exceed three years and the 
contract amount is estimated to exceed $10,000,000 (including 
all options), the solicitation shall--
            (A) * * *

           *       *       *       *       *       *       *

    [(f) Contract Modifications.--(1) A task order may not 
increase the scope, period, or maximum value of the task order 
contract under which the order is issued. The scope, period, or 
maximum value of the contract may be increased only by 
modification of the contract.
    [(2) Unless use of procedures other than competitive 
procedures is authorized by an exception in subsection (c) of 
section 2304 of this title and approved in accordance with 
subsection (f) of such section, competitive procedures shall be 
used for making such a modification.
    [(3) Notice regarding the modification shall be provided in 
accordance with section 18 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416) and section 8(e) of the Small 
Business Act (15 U.S.C. 637(e)).
    [(g) Contract Extensions.--(1) Notwithstanding the 
limitation on the contract period set forth in subsection (b) 
or in a solicitation or contract pursuant to subsection (e), a 
task order contract entered into by the head of an agency under 
this section may be extended on a sole-source basis for a 
period not exceeding six months if the head of such agency 
determines that--
            [(A) the award of a follow-on contract has been 
        delayed by circumstances that were not reasonably 
        foreseeable at the time the initial contract was 
        entered into; and
            [(B) the extension is necessary in order to ensure 
        continuity of the receipt of services pending the award 
        of, and commencement of performance under, the follow-
        on contract.
    [(2) A task order contract may be extended under the 
authority of paragraph (1) only once and only in accordance 
with the limitations and requirements of this subsection.]
    [(h)] (e) Inapplicability to Certain Contracts.--This 
section does not apply to a contract for the acquisition of 
property or services that includes acquisition of advisory and 
assistance services if the head of an agency entering into such 
contract determines that, under the contract, advisory and 
assistance services are necessarily incident to, and not a 
significant component of, the contract.
    [(i)] (f) Advisory and Assistance Services Defined.--In 
this section, the term ``advisory and assistance services'' has 
the meaning given such term in section 1105(g) of title 31.

           *       *       *       *       *       *       *

Sec. 2305a. Design-build selection procedures

    (a) * * *

           *       *       *       *       *       *       *

    (c) Procedures Described.--Two-phase selection procedures 
consist of the following:
            (1) The agency develops, either in-house or by 
        contract, a scope of work statement for inclusion in 
        the solicitation that defines the project and provides 
        prospective offerors with sufficient information 
        regarding the Government's requirements (which may 
        include criteria and preliminary design, budget 
        parameters, and schedule or delivery requirements) to 
        enable the offerors to submit proposals which meet the 
        Government's needs. If the agency contracts for 
        development of the scope of work statement, the agency 
        shall contract for architectural and engineering 
        services as defined by and in accordance with [the 
        Brooks Architect-Engineers Act (40 U.S.C. 541 et seq.)] 
        chapter 11 of title 40.

           *       *       *       *       *       *       *

Sec. 2305b. Protests

    (a) In General.--An interested party may protest an 
acquisition of supplies or services by an agency based on an 
alleged violation of an acquisition law or regulation, and a 
decision regarding such alleged violation shall be made by the 
agency in accordance with this section.
    (b) Restriction on Contract Award Pending Decision.--(1) 
Except as provided in paragraph (2), a contract may not be 
awarded by an agency after a protest concerning the acquisition 
has been submitted under this section and while the protest is 
pending.
    (2) The head of the acquisition activity responsible for 
the award of the contract may authorize the award of a 
contract, notwithstanding pending protest under this section, 
upon making a written finding that urgent and compelling 
circumstances do not allow for waiting for a decision on the 
protest.
    (c) Restriction on Contract Performance Pending Decision.--
(1) Except as provided in paragraph (2), performance of a 
contract may not be authorized (and performance of the contract 
shall cease if performance has already begun) in any case in 
which a protest of the contract award is submitted under this 
section before the later of--
            (A) the date that is 10 days after the date of 
        contract award; or
            (B) the date that is five days after an agency 
        debriefing date offered to an unsuccessful offeror for 
        any debriefing that is requested and, when requested, 
        is required, under section 2305(b)(5) of this title.
    (2) The head of the acquisition activity responsible for 
the award of a contract may authorize performance of the 
contract notwithstanding a pending protest under this section 
upon making a written finding that urgent and compelling 
circumstances do not allow for waiting for a decision on the 
protest.
    (d) Deadline for Decision.--The head of an agency shall 
issue a decision on a protest under this section not later than 
the date that is 20 working days after the date on which the 
protest is submitted to such head of an agency.
    (e) Construction.--Nothing in this section shall affect the 
right of an interested party to file a protest with the 
Comptroller General under subchapter V of chapter 35 of title 
31 or in the United States Court of Federal Claims.
    (f) Definitions.--In this section, the terms ``protest'' 
and ``interested party'' have the meanings given such terms in 
section 3551 of title 31.

           *       *       *       *       *       *       *

Sec. 2306. Kinds of contracts

    (a) * * *

           *       *       *       *       *       *       *

    (e) [Each] (1) Except as provided in paragraph (2), each 
cost contract and each cost-plus-a-fixed-fee contract shall 
provide for notice to the agency by the contractor before the 
making, under the prime contract, of--
            [(1)] (A) a cost-plus-a-fixed-fee subcontract; or
            [(2)] (B) a fixed-price subcontract or purchase 
        order involving more than the greater of [(A)] (i) the 
        simplified acquisition threshold, or [(B)] (ii) 5 
        percent of the estimated cost of the prime contract.
    (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. 2306b. Multiyear contracts: acquisition of property

    (a) * * *

           *       *       *       *       *       *       *

    (l) Various Additional Requirements With Respect to 
Multiyear Defense Contracts.--(1) * * *

           *       *       *       *       *       *       *

    [(9) In this subsection, the term ``congressional defense 
committees'' means the following:
            [(A) The Committee on Armed Services of the Senate 
        and the Subcommittee on Defense of the Committee on 
        Appropriations of the Senate.
            [(B) The Committee on Armed Services of the House 
        of Representatives and the Subcommittee on National 
        Security of the Committee on Appropriations of the 
        House of Representatives.]
    [(10)] (9) In this subsection:
            (A) * * *

           *       *       *       *       *       *       *

Sec. 2306c. Multiyear contracts: acquisition of services

    (a) * * *

           *       *       *       *       *       *       *

    [(g) Limitation Period for Task and Delivery Order 
Contracts.--(1) The authority and restrictions of this section, 
including the authority to enter into contracts for periods of 
not more than five years, shall apply with respect to task 
order and delivery order contracts entered into under the 
authority of section 2304a, 2304b, or 2304c of this title.
    [(2) The regulations implementing this subsection shall 
establish a preference that, to the maximum extent practicable, 
multi-year requirements for task order and delivery order 
contracts be met with separate awards to two or more sources 
under the authority of section 2304a(d)(1)(B) of this title.]
    (h) [Additional Definitions.--In this section:
            [(1) The term ``base closure law'' has the meaning 
        given such term in section 2667(h)(2) of this title.
            [(2) The term] Military Installation Defined.--In 
        this section, the term ``military installation'' has 
        the meaning given such term in section 2801(c)(2) of 
        this title.

           *       *       *       *       *       *       *

Sec. 2308. Buy-to-budget acquisition: end items

    (a) * * *

           *       *       *       *       *       *       *

    (e) Definitions.--(1) * * *
    (2) In this section:
                    [(A) The term ``congressional defense 
                committees'' means--
                            [(i) the Committee on Armed 
                        Services and the Committee on 
                        Appropriations of the Senate; and
                            [(ii) the Committee on Armed 
                        Services and the Committee on 
                        Appropriations of the House of 
                        Representatives.]
                    [(B)] (A) The term ``end item'' means a 
                production product assembled, completed, and 
                ready for issue or deployment.
                    [(C)] (B) The term ``head of an agency'' 
                means the Secretary of Defense, the Secretary 
                of the Army, the Secretary of the Navy, and the 
                Secretary of the Air Force.

           *       *       *       *       *       *       *

Sec. 2320. Rights in technical data

    (a) * * *
    (b) Regulations prescribed under subsection (a) shall 
require that, wherever practicable, a contract for supplies or 
services entered into by an agency named in section 2303 of 
this title contain appropriate provisions relating to technical 
data, including provisions--
            (1) * * *

           *       *       *       *       *       *       *

            [(7) requiring the contractor to furnish written 
        assurance at the time the technical data is delivered 
        or is made available that the technical data is 
        complete and accurate and satisfies the requirements of 
        the contract concerning technical data;]
            [(8)] (7) establishing remedies to be available to 
        the United States when technical data required to be 
        delivered or made available under the contract is found 
        to be incomplete or inadequate or to not satisfy the 
        requirements of the contract concerning technical data; 
        and
            [(9)] (8) authorizing the head of the agency to 
        withhold payments under the contract (or exercise such 
        other remedies as the head of the agency considers 
        appropriate) during any period if the contractor does 
        not meet the requirements of the contract pertaining to 
        the delivery of technical data.

           *       *       *       *       *       *       *

Sec. 2323. Contract goal for small disadvantaged businesses and certain 
                    institutions of higher education

    (a) * * *

           *       *       *       *       *       *       *

    (d) Applicability.--Subsection (a) does not apply to the 
Department of [Defense--
            [(1) to the extent] Defense to the extent to which 
        the Secretary of Defense determines that compelling 
        national security considerations require otherwise[; 
        and].
            [(2) if the Secretary notifies Congress of such 
        determination and the reasons for such determination.]

           *       *       *       *       *       *       *

    [(i) Annual Report.--(1) Not later than December 15 of each 
year, the head of the agency shall submit to Congress a report 
on the progress of the agency toward attaining the goal of 
subsection (a) during the preceding fiscal year.
    [(2) The report required under paragraph (1) shall include 
the following:
            [(A) A full explanation of any progress toward 
        attaining the goal of subsection (a).
            [(B) A plan to achieve the goal, if necessary.
    [(3) The report required under paragraph (1) shall also 
include the following:
            [(A) The aggregate differential between the fair 
        market price of all contracts awarded pursuant to 
        subsection (e)(3) and the estimated fair market price 
        of all such contracts had such contracts been entered 
        into using full and open competitive procedures.
            [(B) An analysis of the impact that subsection (a) 
        shall have on the ability of small business concerns 
        not owned and controlled by socially and economically 
        disadvantaged individuals to compete for contracts with 
        the agency.
            [(C) A description of the percentage of contracts 
        (actions), the total dollar amount (size of action), 
        and the number of different entities relative to the 
        attainment of the goal of subsection (a), separately 
        for Black Americans, Native Americans, Hispanic 
        Americans, Asian Pacific Americans, and other 
        minorities.
            [(D) A detailed description of the infrastructure 
        assistance provided under subsection (c) during the 
        preceding fiscal year and of the plans for providing 
        such assistance during the fiscal year in which the 
        report is submitted.]

           *       *       *       *       *       *       *

Sec. 2327. Contracts: consideration of national security objectives

    (a) * * *

           *       *       *       *       *       *       *

    (c) Waiver.--(1)(A) If the Secretary of Defense determines 
under paragraph (2) that entering into a contract with a firm 
or a subsidiary of a firm described in subsection (b) is not 
inconsistent with the national security objectives of the 
United States, the head of an agency may enter into a contract 
with such firm or subsidiary [after the date on which such head 
of an agency submits to Congress a report on the contract] if 
in the best interests of the Government.
    (B) [A report under subparagraph (A)] The Secretary shall 
maintain records of each contract entered into by reason of 
subparagraph (A). Such records shall include the following:
            (i) * * *

           *       *       *       *       *       *       *

    [(C) After the head of an agency submits a report to 
Congress under subparagraph (A) with respect to a firm or a 
subsidiary, such head of an agency is not required to submit a 
report before entering into any subsequent contract with such 
firm or subsidiary unless the information required to be 
included in such report under subparagraph (B) has materially 
changed since the submisson of the previous report.]

           *       *       *       *       *       *       *

    CHAPTER 138--COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER 
COUNTRIES

           *       *       *       *       *       *       *

SUBCHAPTER II--OTHER COOPERATIVE AGREEMENTS

           *       *       *       *       *       *       *

Sec. 2350a. Cooperative research and development agreements: NATO 
                    organizations; allied and friendly foreign 
                    countries

    (a) * * *

           *       *       *       *       *       *       *

    [(f) Reports to Congress.--(1) Not later than March 1 of 
each year, the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to the Speaker of the 
House of Representatives and the Committees on Armed Services 
and Appropriations of the Senate a report on cooperative 
research and development projects under this section. Each such 
report shall include--
            [(A) a description of the status, funding, and 
        schedule of existing projects carried out under this 
        section for which memoranda of understanding (or other 
        formal agreements) have been entered into; and
            [(B) a description of the purpose, funding, and 
        schedule of any new projects proposed to be carried out 
        under this section (including those projects for which 
        memoranda of understanding (or other formal agreements) 
        have not yet been entered into) for which funds have 
        been included in the budget submitted to Congress 
        pursuant to section 1105 of title 31 for the fiscal 
        year following the fiscal year in which the report is 
        submitted.
    [(2) Not later than January 1 of each year, the Secretary 
of Defense shall submit to the Committees on Armed Services and 
on Foreign Relations of the Senate and to the Committees on 
Armed Services and on International Relations of the House of 
Representatives a report specifying--
            [(A) the countries that are eligible to participate 
        in a cooperative project agreement under this section; 
        and
            [(B) the criteria used to determine the eligibility 
        of such countries.]
    (g) Side-by-Side Testing.--(1) * * *

           *       *       *       *       *       *       *

    [(3) The Deputy Director, Defense Research and Engineering 
(Test and Evaluation) shall notify the Speaker of the House of 
Representatives and the Committees on Armed Services and on 
Appropriations of the Senate of the Deputy Director's intent to 
obligate funds made available to carry out this subsection not 
less than 30 days before such funds are obligated.]

           *       *       *       *       *       *       *

Sec. 2350j. Burden sharing contributions by designated countries and 
                    regional organizations

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Notice and Wait Requirements.--(1) When a decision is 
made to carry out a military construction project under 
subsection (d), the Secretary of Defense shall submit to the 
congressional committees specified in subsection (g) a report 
containing--
            [(A) an explanation of the need for the project;
            [(B) the then current estimate of the cost of the 
        project; and
            [(C) a justification for carrying out the project 
        under that subsection.
    [(2) The Secretary of Defense or the Secretary of a 
military department may not commence a military construction 
project under subsection (d) until the end of the 21-day period 
beginning on the date on which the Secretary of Defense submits 
the report under paragraph (1) regarding the project.
    [(3)(A) A military construction project under subsection 
(d) may be carried out without regard to the requirement in 
paragraph (1) and the limitation in paragraph (2) if the 
project is necessary to support the armed forces in the country 
or region in which the project is carried out by reason of a 
declaration of war, or a declaration by the President of a 
national emergency pursuant to the National Emergencies Act (50 
U.S.C. 1601 et seq.), that is in force at the time of the 
commencement of the project.
    [(B) When a decision is made to carry out a military 
construction project under subparagraph (A), the Secretary of 
Defense shall submit to the congressional committees specified 
in subsection (g)--
            [(i) a notice of the decision; and
            [(ii) a statement of the current estimated cost of 
        the project, including the cost of any real property 
        transaction in connection with the project.]

           *       *       *       *       *       *       *

    [(g) Congressional Committees.--The congressional 
committees referred to in subsection (e) are--
            [(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.]

           *       *       *       *       *       *       *

CHAPTER 139--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *

Sec. 2359a. Technology Transition Initiative

    (a) * * *

           *       *       *       *       *       *       *

    (i) Definition.--In this section, the term ``acquisition 
executive'', with respect to a military department or Defense 
Agency, means the official designated as the [senior 
procurement executive] Chief Acquisition Officer for that 
military department or Defense Agency for the purposes of 
section 16(3) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 414(3)).

           *       *       *       *       *       *       *

Sec. 2366. Major systems and munitions programs: survivability and 
                    lethality testing required before full-scale 
                    production

    (a) * * *

           *       *       *       *       *       *       *

    (e) Definitions.--In this section:
            (1) * * *

           *       *       *       *       *       *       *

            [(7) 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.]
            [(8)] (7) The term ``Milestone B approval'' means a 
        decision to enter into system development and 
        demonstration pursuant to guidance prescribed by the 
        Secretary of Defense for the management of Department 
        of Defense acquisition programs.
            [(9)] (8) The term ``Milestone C approval'' means a 
        decision to enter into production and deployment 
        pursuant to guidance prescribed by the Secretary of 
        Defense for the management of Department of Defense 
        acquisition programs.

Sec. 2367. Use of federally funded research and development centers

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Identification to Congress of FFRDC Workload Effort.--
After the close of a fiscal year, and not later than January 1 
of the next year, the Secretary shall submit to the Committee 
on Armed Services and the Committee on Appropriations of the 
Senate and the Committee on Armed Services and the Committee on 
Appropriations of the House of Representatives a report setting 
forth the actual obligations and the actual man-years of effort 
expended at each federally funded research and development 
center during that fiscal year.]

           *       *       *       *       *       *       *

Sec. 2371. Research projects: transactions other than contracts and 
                    grants

    (a) * * *

           *       *       *       *       *       *       *

    [(h) Annual Report.--(1) Not later than 90 days after the 
end of each fiscal year, 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 
report on the use by the Department of Defense during such 
fiscal 
year of--
            [(A) cooperative agreements authorized under 
        section 2358 of this title that contain a clause under 
        subsection (d); and
            [(B) transactions authorized by subsection (a).
    [(2) The report shall include, with respect to the 
cooperative agreements and other transactions covered by the 
report, the 
following:
            [(A) The technology areas in which research 
        projects were conducted under such agreements or other 
        transactions.
            [(B) The extent of the cost-sharing among Federal 
        Government and non-Federal sources.
            [(C) The extent to which the use of the cooperative 
        agreements and other transactions--
                    [(i) has contributed to a broadening of the 
                technology and industrial base available for 
                meeting Department of Defense needs; and
                    [(ii) has fostered within the technology 
                and industrial base new relationships and 
                practices that support the national security of 
                the United States.
            [(D) The total amount of payments, if any, that 
        were received by the Federal Government during the 
        fiscal year covered by the report pursuant to a clause 
        described in subsection (d) that was included in the 
        cooperative agreements and other transactions, and the 
        amount of such payments, if any, that were credited to 
        each account established under subsection (f).]

           *       *       *       *       *       *       *

Sec. 2374a. Prizes for advanced technology achievements

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Annual Report.--Promptly after the end of each fiscal 
year, the Secretary shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on the administration of the program for that fiscal 
year. The report shall include the following:
            [(1) The military applications of the research, 
        technology, or prototypes for which prizes were 
        awarded.
            [(2) The total amount of the prizes awarded.
            [(3) The methods used for solicitation and 
        evaluation of submissions, together with an assessment 
        of the effectiveness of those methods.]

           *       *       *       *       *       *       *

CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS

           *       *       *       *       *       *       *

Sec. 2399. Operational test and evaluation of defense acquisition 
                    programs

    (a) * * *

           *       *       *       *       *       *       *

    (h) [Definitions.--In this section:
            [(1) The term] Operational Test and Evaluation 
        Defined.--In this section, the term ``operational test 
        and evaluation'' has the meaning given that term in 
        section 139(a)(2)(A) of this title. For purposes of 
        subsection (a), that term does not include an 
        operational assessment based exclusively on--
            [(A)] (1) computer modeling;
            [(B)] (2) simulation; or
            [(C)] (3) an analysis of system requirements, 
        engineering proposals, design specifications, or any 
        other information contained in program documents.
            [(2) 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.]

           *       *       *       *       *       *       *

Sec. 2410a. Severable service contracts for periods crossing fiscal 
                    years

    (a) Authority.--The Secretary of Defense, the Secretary of 
a military department, or the Secretary of Homeland Security 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, may enter into a contract for procurement 
of severable services and the lease of real or personal 
property, including the maintenance of such property when 
contracted for as part of the lease agreement, for a period 
that begins in one fiscal year and ends in the next fiscal year 
if (without regard to any option to extend the period of the 
contract) the contract period does not exceed one year.

           *       *       *       *       *       *       *

Sec. 2410i. Prohibition on contracting with entities that comply with 
                    the secondary Arab boycott of Israel

    (a) * * *

           *       *       *       *       *       *       *

    (c) Waiver Authority.--The Secretary of Defense may waive 
the prohibition in subsection (b) in specific instances when 
the Secretary determines that the waiver is necessary in the 
national security interests of the United States. [Within 15 
days after the end of each fiscal year, the Secretary shall 
submit to Congress a report identifying each contract for which 
a waiver was granted under this subsection during that fiscal 
year.]

           *       *       *       *       *       *       *

Sec. 2410m. Retention of amounts collected from contractor during the 
                    pendency of contract dispute

    (a) * * *

           *       *       *       *       *       *       *

    (c) [Reporting Requirement.--Each year] Annual Report.--Not 
later than 60 days after the end of each fiscal year, the Under 
Secretary of Defense (Comptroller) shall submit to Congress a 
report on the amounts, if any, that are available for 
obligation pursuant to this section. The report shall include, 
at a minimum, the following:
            (1) The total amount available for obligation at 
        the end of such fiscal year.
            (2) The total amount collected from contractors 
        [during the year preceding the year in which the report 
        is submitted] under this section during that fiscal 
        year.
            (3) The total amount disbursed [in such preceding 
        year] under this section during that fiscal year and a 
        description of the purpose for each disbursement.
            (4) The total amount returned to the Treasury [in 
        such preceding year] under this section during that 
        fiscal year.

           *       *       *       *       *       *       *

            CHAPTER 144--MAJOR DEFENSE ACQUISITION PROGRAMS

Sec.
2430.    Major defense acquisition program defined.
     * * * * * * *
2436.    Major defense acquisition programs: requirement for certain 
          items to be entirely produced in United States.

           *       *       *       *       *       *       *

Sec. 2432. Selected Acquisition Reports

    (a) * * *

           *       *       *       *       *       *       *

    (h)(1) Total program reporting under this section shall 
apply to a major defense acquisition program when funds have 
been appropriated for such program and the Secretary of Defense 
has decided to proceed to system development and demonstration 
of such program. Reporting may be limited to the development 
program as provided in paragraph (2) before a decision is made 
by the Secretary of Defense to proceed to system development 
and demonstration if the Secretary notifies the Committee on 
Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives of the intention to 
submit a limited report under this subsection not less than 15 
days before a report is due under this section.

           *       *       *       *       *       *       *

Sec. 2433. Unit cost reports

    (a) * * *

           *       *       *       *       *       *       *

    (d)(1) When a unit cost report is submitted to the service 
acquisition executive designated by the Secretary concerned 
under this section with respect to a major defense acquisition 
program, the service acquisition executive shall determine 
whether the current program acquisition unit cost for the 
program has increased by at least 15 percent[, or by at least 
25 percent,] over the program acquisition unit cost for the 
program as shown in the Baseline Estimate.
    (2) When a unit cost report is submitted to the service 
acquisition executive designated by the Secretary concerned 
under this section with respect to a major defense acquisition 
program that is a procurement program, the service acquisition 
executive, in addition to the determination under paragraph 
(1), shall determine whether the procurement unit cost for the 
program has increased by at least 15 percent[, or by at least 
25 percent,] over the procurement unit cost for the program as 
reflected in the Baseline Estimate.
    (3) If, based upon the service acquisition executive's 
determination, the Secretary concerned determines that the 
current program acquisition unit cost has increased by at least 
15 percent, [or by at least 25 percent,] as determined under 
paragraph (1), or that the procurement unit cost has increased 
by at least 15 percent, [or by at least 25 percent,] as 
determined under paragraph (2), the Secretary shall notify 
Congress in writing of such determination and of the increase 
with respect to such program. In the case of a determination 
based on a quarterly report submitted in accordance with 
subsection (b), the Secretary shall submit the notification to 
Congress within 45 days after the end of the quarter. In the 
case of a determination based on a report submitted in 
accordance with subsection (c), the Secretary shall submit the 
notification to Congress within 45 days after the date of that 
report. The Secretary shall include in the notification the 
date on which the determination was made.
    (e)(1) * * *
    [(2) If the percentage increase in the program acquisition 
unit cost or procurement unit cost of a major defense 
acquisition program (as determined by the Secretary under 
subsection (d)) exceeds 25 percent, the Secretary of Defense 
shall submit to Congress, before the end of the 30-day period 
beginning on the day the Selected Acquisition Report containing 
the information described in subsection (g) is required to be 
submitted under section 2432(f) of this title--
            [(A) a written certification, stating that--
                    [(i) such acquisition program is essential 
                to the national security;
                    [(ii) there are no alternatives to such 
                acquisition program which will provide equal or 
                greater military capability at less cost;
                    [(iii) the new estimates of the program 
                acquisition unit cost or procurement unit cost 
                are reasonable; and
                    [(iv) the management structure for the 
                acquisition program is adequate to manage and 
                control program acquisition unit cost or 
                procurement unit cost; and
            [(B) if a report under paragraph (1) has been 
        previously submitted to Congress with respect to such 
        program for the current fiscal year but was based upon 
        a different unit cost report from the program manager 
        to the service acquisition executive designated by the 
        Secretary concerned, a further report containing the 
        information described in subsection (g), determined 
        from the time of the previous report to the time of the 
        current report.]
    [(3)] (2) If a determination of an increase of at least 15 
percent is made by the Secretary under subsection (d) and a 
Selected Acquisition Report containing the information 
described in subsection (g) is not submitted to Congress under 
paragraph (1), [or if a determination of an increase of at 
least 25 percent is made by the Secretary under subsection (d) 
and the certification of the Secretary of Defense is not 
submitted to Congress under paragraph (2),] funds appropriated 
for military construction, for research, development, test, and 
evaluation, and for procurement may not be obligated for a 
major contract under the program.
    (3) The prohibition under paragraph (2) on the obligation 
of funds for a major defense acquisition program shall cease to 
apply at the end of a period of 30 days of continuous session 
of Congress (as determined under section 7307(b)(2) of this 
title) beginning on [the date--
            [(A) on which Congress receives the Selected 
        Acquisition Report under paragraph (1) or (2)(B) with 
        respect to that program, in the case of a determination 
        of an increase of at least 15 percent (as determined in 
        subsection (d)); or
            [(B) on which Congress has received both the 
        Selected Acquisition Report under paragraph (1) or 
        (2)(B) and the certification of the Secretary of 
        Defense under paragraph (2)(A) with respect to that 
        program, in the case of an increase of at least 25 
        percent (as determined under subsection (d)).] the date 
        on which Congress receives the Selected Acquisition 
        Report under paragraph (1) with respect to that 
        program.

           *       *       *       *       *       *       *

Sec. 2436. Major defense acquisition programs: requirement for certain 
                    items to be entirely produced in United States

    The Secretary of Defense shall require that, for any 
procurement of a major defense acquisition program--
            (1) the contractor for the procurement shall use 
        only machine tools entirely produced within the United 
        States to carry out the contract; and
            (2) any subcontractor under the contract shall 
        comply with paragraph (1) in the case of any contract 
        in an amount that is $5,000,000 or greater.

           *       *       *       *       *       *       *

              CHAPTER 145--CATALOGING AND STANDARDIZATION

Sec.
2451.    Defense supply management.
[2452.    Duties of Secretary of Defense.
[2453.    Supply catalog: distribution and use.
[2454.    Supply catalog: new or obsolete items.]

           *       *       *       *       *       *       *

[Sec. 2451. Defense supply management

    [(a) The Secretary of Defense shall develop a single 
catalog system and related program of standardizing supplies 
for the Department of Defense.
    [(b) In cataloging, the Secretary shall name, describe, 
classify, and number each item recurrently used, bought, 
stocked, or distributed by the Department of Defense, so that 
only one distinctive combination of letters or numerals, or 
both, identifies the same item throughout the Department of 
Defense. Only one identification may be used for each item for 
all supply functions from purchase to final disposal in the 
field or other area. The catalog may consist of a number of 
volumes, sections, or supplements. It shall include all items 
of supply and, for each item, information needed for supply 
operations, such as descriptive and performance data, size, 
weight, cubage, packaging and packing data, a standard 
quantitative unit of measurement, and other related data that 
the Secretary determines to be desirable.
    [(c) In standardizing supplies the Secretary shall, to the 
highest degree practicable--
            [(1) standardize items used throughout the 
        Department of Defense by developing and using single 
        specifications, eliminating overlapping and duplicate 
        specifications, and reducing the number of sizes and 
        kinds of items that are generally similar;
            [(2) standardize the methods of packing, packaging, 
        and preserving such items; and
            [(3) make efficient use of the services and 
        facilities for inspecting, testing, and accepting such 
        items.]

Sec. 2451. Defense supply management

    (a) Single Catalog System.--The Secretary of Defense shall 
adopt, implement and maintain a single catalog system for 
standardizing supplies for the Department of Defense. The 
single catalog system shall be used for each supply the 
Department uses, buys, stocks, or distributes.
    (b) Standardization Requirements.--To the highest degree 
practicable, the Secretary of Defense shall--
            (1) adopt and use single commercial standards or 
        voluntary standards, in consultation with industry 
        advisory groups, in order to eliminate overlapping and 
        duplicate specifications for supplies for the 
        Department of Defense and to reduce the number of sizes 
        and kind of supplies that are generally similar;
            (2) standardize the methods of packing, packaging, 
        and preserving supplies; and
            (3) make efficient use of the services and 
        facilities for inspecting, testing, and accepting 
        supplies.
    (c) Consultation and Cooperation.--The Secretary of Defense 
shall maintain liaison with industry advisory groups to 
coordinate the development of the supply catalog and the 
standardization program with the best practices of industry and 
to obtain the fullest practicable cooperation and participation 
of industry in developing the supply catalog and the 
standardization program.

[Sec. 2452. Duties of Secretary of Defense

    [The Secretary of Defense shall--
            [(1) develop and maintain the supply catalog, and 
        the standardization program, described in section 2451 
        of this title;
            [(2) direct and coordinate progressive use of the 
        supply catalog in all supply functions within the 
        Department of Defense from the determination of 
        requirements through final disposal;
            [(3) direct, review, and approve--
                    [(A) the naming, description, and pattern 
                of description of all items;
                    [(B) the screening, consolidation, 
                classification, and numbering of descriptions 
                of all items; and
                    [(C) the publication and distribution of 
                the supply catalog;
            [(4) maintain liaison with industry advisory groups 
        to coordinate the development of the supply catalog and 
        the standardization program with the best practices of 
        industry and to obtain the fullest practicable 
        cooperation and participation of industry in developing 
        the supply catalog and the standardization program;
            [(5) establish, publish, review, and revise, within 
        the Department of Defense, military specifications, 
        standards, and lists of qualified products, and resolve 
        differences between the military departments, bureaus, 
        and services with respect to them;
            [(6) assign responsibility for parts of the 
        cataloging and the standardization programs to the 
        military departments, bureaus, and services within the 
        Department of Defense, when practical and consistent 
        with their capacity and interest in those supplies;
            [(7) establish time schedules for assignments made 
        under clause (6); and
            [(8) make final decisions in all matters concerned 
        with the cataloging and standardization programs.

[Sec. 2453. Supply catalog: distribution and use

    [The Secretary of Defense shall distribute the parts of the 
supply catalog described in section 2451 of this title as they 
are completed. Existing catalogs shall be replaced according to 
schedules established by the Secretary. After replacement no 
other supply catalog may be used within the Department of 
Defense with respect to the kinds of items covered by that 
part. All property reports and records shall use the 
nomenclature, item numbers, and descriptive data of the supply 
catalog.

[Sec. 2454. Supply catalog: new or obsolete items

    [(a) After any part of the supply catalog described in 
section 2451 of this title is distributed, and with respect to 
the kinds of items covered by that part, only the items listed 
in it may be procured for recurrent use in the Department of 
Defense. However, a military department may acquire any new 
item that is necessary to carry out its mission. As soon as 
such an item is acquired, it shall be submitted to the 
Secretary for inclusion in the catalog and the standardization 
program.
    [(b) Obsolete items may be deleted from the catalog at any 
time.]

           *       *       *       *       *       *       *

Sec. 2457. Standardization of equipment with North Atlantic Treaty 
                    Organization members

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Before February 1, 1989, and biennially thereafter, 
the Secretary shall submit a report to Congress that includes--
            [(1) each specific assessment and evaluation made 
        and the results of each assessment and evaluation, and 
        the results achieved with the members of the North 
        Atlantic Treaty Organization, under subsections (a) (1) 
        and (2) and (b);
            [(2) procurement action initiated on each new major 
        system not complying with the policy of subsection (a);
            [(3) procurement action initiated on each new major 
        system that is not standardized or interoperable with 
        equipment of other members of the Organization, 
        including a description of the system chosen and the 
        reason for choosing that system;
            [(4) the identity of--
                    [(A) each program of research and 
                development for the armed forces of the United 
                States stationed in Europe that supports, 
                conforms, or both, to common Organization 
                requirements of developing weapon systems for 
                use by the Organization, including a common 
                definition of the military threat to the 
                Organization; and
                    [(B) the common requirements of the 
                Organization to which those programs conform or 
                which they support;
            [(5) action of the Alliance toward common 
        Organization requirements if none exist;
            [(6) efforts to establish a regular procedure and 
        mechanism in the Organization to determine common 
        military requirements;
            [(7) a description of each existing and planned 
        program of the Department of Defense that supports the 
        development or procurement of a weapon system or other 
        military equipment originally developed or procured by 
        members of the Organization other than the United 
        States and for which funds have been authorized to be 
        appropriated for the fiscal year in which the report is 
        submitted, including a summary listing of the amount of 
        funds--
                    [(A) appropriated for those programs for 
                the fiscal year in which the report is 
                submitted; and
                    [(B) requested, or proposed to be 
                requested, for those programs for each of the 2 
                fiscal years following the fiscal year for 
                which the report is submitted; and
            [(8) a description of each weapon system or other 
        military equipment originally developed or procured in 
        the United States and that is being developed or 
        procured by members of the Organization other than the 
        United States during the fiscal year for which the 
        report is submitted.]

           *       *       *       *       *       *       *

  CHAPTER 146--CONTRACTING FOR PERFORMANCE OF CIVILIAN COMMERCIAL OR 
INDUSTRIAL TYPE FUNCTIONS

           *       *       *       *       *       *       *

Sec. 2474. Centers of Industrial and Technical Excellence: designation; 
                    public-private partnerships

    (a) * * *

           *       *       *       *       *       *       *

    (f) Exclusion of Certain Expenditures From Percentage 
Limitation.--(1) Amounts expended for the performance of a 
depot-level maintenance and repair workload by non-Federal 
Government personnel at a Center of Industrial and Technical 
Excellence under any contract [entered into during fiscal years 
2003 through 2006] shall not be counted for purposes of 
applying the percentage limitation in section 2466(a) of this 
title if the personnel are provided by private industry or 
other entities outside the Department of Defense pursuant to a 
public-private partnership.

           *       *       *       *       *       *       *

CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND 
                         RECREATION ACTIVITIES

Sec.
2481.    Existence of defense commissary system and exchange stores 
          system.
2482.    Commissary stores: operation.

           *       *       *       *       *       *       *

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.--Except as authorized by section 
2490a of this title, the defense commissary system and the 
exchange stores system shall be operated as separate systems of 
the Department of Defense.

Sec. 2482. Commissary stores: operation

    (a) Private Operation.--[Private persons may operate 
commissary stores under such regulations as the Secretary of 
Defense may approve. A contract with a private person for the 
operation of any commissary store may not require or permit the 
contractor to carry out functions for the procurement of 
products to be sold in the store or to engage in functions 
relating to the overall management of a commissary system or 
the management of any such store.] (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. Such functions shall be 
carried out by personnel of the Department of Defense under 
regulations approved by the Secretary of Defense.
    (2) Any change to private operation of a commissary store 
function shall not take effect until the Secretary of Defense 
submits written notice of the proposed change to Congress and a 
period of 90 days of continuous session of Congress expires 
following the date on which notice was received, determined as 
provided in section 2486(d)(2) of this title.

           *       *       *       *       *       *       *

Sec. 2484. Commissary stores: use of appropriated funds to cover 
                    operating expenses

    (a) Operation of Agency and System.--Except as otherwise 
provided in this title, the operation of the Defense Commissary 
Agency and the defense commissary system [may] shall be funded 
using such amounts as are appropriated for such purpose.
    (b) Operating Expenses of Commissary Stores.--Appropriated 
funds [may] shall be used to cover the expenses of operating 
commissary stores and central product processing facilities of 
the defense commissary system. For purposes of this subsection, 
operating expenses include the following:
            (1) * * *

           *       *       *       *       *       *       *

    (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. 2490a. Combined exchange and commissary stores

    (a) * * *

           *       *       *       *       *       *       *

    (f) [Definitions.--In this section:
            [(1) The term] Nonappropriated Fund Instrumentality 
        Defined.--In this section, the term ``nonappropriated 
        fund instrumentality'' means the Army and Air Force 
        Exchange Service, Navy Exchange Service Command, Marine 
        Corps exchanges, or any other instrumentality of the 
        United States under the jurisdiction of the Armed 
        Forces which is conducted for the comfort, pleasure, 
        contentment, or physical or mental improvement of 
        members of the Armed Forces.
            [(2) The term ``base closure law'' has the meaning 
        given such term by section 2667(h) of this title.]

           *       *       *       *       *       *       *

Sec. 2493. Fisher Houses: administration as nonappropriated fund 
                    instrumentality

    (a) * * *

           *       *       *       *       *       *       *

    [(g) Annual Report.--Not later than January 15 of each 
year, the Secretary of each military department shall submit to 
Congress a report describing the operation of Fisher Houses and 
Fisher Suites associated with health care facilities of that 
military department. The report shall include, at a minimum, 
the following:
            [(1) The amount in the fund established by that 
        Secretary under subsection (d) as of October 1 of the 
        previous year.
            [(2) The operation of the fund during the preceding 
        fiscal year, including--
                    [(A) all gifts, fees, and interest credited 
                to the fund; and
                    [(B) all disbursements from the fund.
            [(3) The budget for the operation of the Fisher 
        Houses and Fisher Suites for the fiscal year in which 
        the report is submitted.]

           *       *       *       *       *       *       *

 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
REINVESTMENT, AND DEFENSE CONVERSION

           *       *       *       *       *       *       *

SUBCHAPTER I--DEFINITIONS

           *       *       *       *       *       *       *

Sec. 2500. Definitions

    In this chapter:
            (1) The term ``national technology and industrial 
        base'' means the persons and organizations that are 
        engaged in research, development, [production, or 
        maintenance] production, and maintenance activities 
        conducted within the United States [and Canada] .

           *       *       *       *       *       *       *

                  SUBCHAPTER II--POLICIES AND PLANNING

Sec.
2501.    National security objectives concerning national technology and 
          industrial base.
     * * * * * * *
2508.    Goods and technologies critical for military superiority: list.

           *       *       *       *       *       *       *

Sec. 2508. Goods and technologies critical for military superiority: 
                    list

    (a) Requirement to Maintain List.--(1) The Secretary of 
Defense shall maintain a list of any goods or technology that, 
if obtained by a potential adversary, could undermine the 
military superiority or qualitative military advantage of the 
United States over potential adversaries.
    (2) In this section, the term ``goods or technology'' 
means--
            (A) any article, natural or manmade substance, 
        material, supply, or manufactured product, including 
        inspection and test equipment; and
            (B) any information and know-how (whether in 
        tangible form, such as models, prototypes, drawings, 
        sketches, diagrams, blueprints, or manuals, or in 
        intangible form, such as training or technical 
        services) that can be used to design, produce, 
        manufacture, utilize, or reconstruct goods, including 
        computer software and technical data.
    (b) Matters to be Included on List.--The Secretary shall 
include on the list the following:
            (1) Any technology or developing critical 
        technology (including conventional weapons, weapons of 
        mass destruction, and delivery systems) that could 
        enhance a potential adversary's military capabilities 
        or that is critical to the United States maintaining 
        its military superiority and qualitative military 
        advantage.
            (2) Any dual-use good, material, or know-how that 
        could enhance a potential adversary's military 
        capabilities or that is critical to the United States 
        maintaining its military superiority and qualitative 
        military advantage, including those used to manufacture 
        weapons of mass destruction and their associated 
        delivery systems.
    (c) Requirements.--The Secretary shall ensure that--
            (1) the list is subject to a systematic, ongoing 
        assessment and analysis of dual-use technologies; and
            (2) the list is updated not less often than every 
        two months.
    (d) Availability.--The list shall be made available--
            (1) in unclassified form on the Department of 
        Defense public website, in a usable form; and
            (2) in classified form to the Committee on Armed 
        Services of the Senate and the Committee on Armed 
        Services of the House of Representatives.

 SUBCHAPTER III--PROGRAMS FOR DEVELOPMENT, APPLICATION, AND SUPPORT OF 
DUAL-USE TECHNOLOGIES

           *       *       *       *       *       *       *

Sec. 2515. Office of Technology Transition

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Annual Report.--(1) The Secretary of Defense shall 
submit to the congressional committees specified in paragraph 
(2) an annual report on the activities of the Office. The 
report shall be submitted each year at the same time that the 
budget is submitted to Congress by the President pursuant to 
section 1105 of title 31. The report shall contain a discussion 
of the accomplishments of the Office during the fiscal year 
preceding the fiscal year in which the report is submitted.
    [(2) The committees referred to in paragraph (1) are--
            [(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.]

           *       *       *       *       *       *       *

SUBCHAPTER IV--MANUFACTURING TECHNOLOGY

           *       *       *       *       *       *       *

Sec. 2521. Manufacturing Technology Program

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Five-Year Plan.--(1) The Secretary of Defense shall 
prepare and maintain a five-year plan for the program.
    [(2) The plan shall establish the following:
            [(A) The overall manufacturing technology 
        objectives, milestones, priorities, and investment 
        strategy for the program.
            [(B) The specific objectives of, and funding for 
        the program by, each military department and each 
        Defense Agency participating in the program.
            [(C) Plans for the implementation of the advanced 
        manufacturing technologies and processes being 
        developed under the program.
    [(3) The plan shall be updated biennially and shall be 
included in the budget justification documents submitted in 
support of the budget of the Department of Defense for each 
even-numbered fiscal year (as included in the budget of the 
President submitted to Congress under section 1105 of title 
31).]

           *       *       *       *       *       *       *

SUBCHAPTER V--MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

           *       *       *       *       *       *       *

Sec. 2533a. Requirement to buy certain articles from American sources; 
                    exceptions

    (a) Requirement.--Except as provided in subsections (c) 
[through (h)] through (i), funds appropriated or otherwise 
available to the Department of Defense may not be used for the 
procurement of an item described in subsection (b) if the item 
is not grown, reprocessed, reused, or produced in the United 
States.
    (b) Covered Items.--An item referred to in subsection (a) 
is any of the following:
            (1) An article or item of--
                    (A) * * *
                    (B) clothing and the materials and 
                components thereof;

           *       *       *       *       *       *       *

            (2) Specialty metals, including stainless steel 
        flatware and any specialty metal that may be part of 
        another item.

           *       *       *       *       *       *       *

    (c) Availability Exception.--Subsection (a) does not apply 
to the extent that the Secretary of Defense [or the Secretary 
of the military department concerned] determines that 
satisfactory quality and sufficient quantity of any such 
article or item described in subsection (b)(1) or specialty 
metals (including stainless steel flatware) grown, reprocessed, 
reused, or produced in the United States cannot be procured as 
and when needed at United States market prices. For each such 
determination, the Secretary of Defense shall notify Congress 
in writing of the factors supporting the determination. The 
Secretary of Defense or the Secretary of the military 
department concerned may not procure specialty metals pursuant 
to the exception authorized by this subsection until the 
Secretary submits to Congress and publishes in the Federal 
Register notice of the determination made under this subsection 
and a period of 15 days expires after the date such 
notification is submitted.

           *       *       *       *       *       *       *

    (e) Exception for [Specialty Metals and] Chemical Warfare 
Protective Clothing.--Subsection (a) does not preclude the 
procurement of [specialty metals or] chemical warfare 
protective clothing produced outside the United States if--
            (1) * * *

           *       *       *       *       *       *       *

    (i) Exception for Commercial Items Containing Specialty 
Metals.--
            (1) In General.--Subsection (a) does not apply to 
        the procurement of a commercial item containing 
        specialty metals if--
                    (A) the contractor agrees to comply with 
                the requirement set forth in paragraph (2); or
                    (B) the Secretary of Defense determines in 
                writing that the Department of Defense's need 
                for the commercial item containing specialty 
                metal is of such an unusual and compelling 
                urgency that the United States would be 
                seriously injured unless the Department is 
                permitted to procure the item containing 
                specialty metal from outside the United States.
            (2) Requirement to purchase equivalent amount of 
        domestic metal.--For purposes of paragraph (1)(A), the 
        requirement set forth in this paragraph is that the 
        contractor for each contract entered into by the 
        Secretary for the procurement of a commercial item 
        containing specialty metal agrees to purchase, over the 
        18-month period beginning on the date of award of the 
        contract, an amount of specialty metal that is--
                    (A) produced, including such functions as 
                melting and smelting, in the United States; and
                    (B) equivalent to--
                            (i) the amount of specialty metal 
                        (measured by factors including volume, 
                        type, and grade) purchased to carry out 
                        the work under the contract (including 
                        the work under each subcontract at any 
                        tier under the contract); plus
                            (ii) 10 percent of the amount 
                        referred to in clause (i).
            (3) Relationship to other exceptions.--The 
        exceptions under subsections (c), (d), and (h) of this 
        section shall not apply to the procurement of a 
        commercial item containing specialty metals.
            (4) Notice to congress.--The Secretary of Defense 
        shall not enter into a contract to procure a commercial 
        item containing specialty metal pursuant to the 
        exception in subsection (a) until Congress is notified 
        that the Secretary has applied the exception and a 
        period of 15 days has expired after such notification 
        is made.
            (5) Notice to industry.--The Secretary of Defense 
        shall publish a notice in the Federal Register on the 
        method that the Department of Defense will use to 
        measure an equivalent amount of specialty metal for 
        purposes of this subsection. Such a method shall 
        consider factors such as volume, type, and grade of 
        specialty metal that otherwise would be produced from 
        United States sources.
    [(i)] (j) Applicability to Contracts and Subcontracts for 
Procurement of Commercial Items.--This section is applicable to 
contracts and subcontracts for the procurement of commercial 
items notwithstanding section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430).
    [(j)] (k) Geographic Coverage.--In this section, the term 
``United States'' includes the possessions of the United 
States.
    (l) Authority Not Delegable.--The Secretary may not 
delegate any authority under this section to anyone other than 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics.

Sec. 2534. Miscellaneous limitations on the procurement of goods other 
                    than United States goods

    (a) Limitation on Certain Procurements.--The Secretary of 
Defense may procure any of the following items only if the 
manufacturer of the item satisfies the requirements of 
subsection (b):
            (1) * * *

           *       *       *       *       *       *       *

            (6) Fuzes used for ordnance.
            (7) Microwave power tubes or traveling wave tubes.
            (8) PAN carbon fiber.
            (9) Aircraft tires.
            (10) Ground vehicle tires.
            (11) Tank track assemblies.
            (12) Tank track components.
            (13) Packaging in direct contact with meals within 
        meals ready-to-eat listed in Federal Supply Class 8970.

           *       *       *       *       *       *       *

    (d) Waiver Authority.--The Secretary of Defense may waive 
the limitation in subsection (a) with respect to the 
procurement of an item listed in that subsection if the 
Secretary determines in writing that any of the following 
apply:
            [(1) Application of the limitation would cause 
        unreasonable costs or delays to be incurred.
            [(2) United States producers of the item would not 
        be jeopardized by competition from a foreign country, 
        and that country does not discriminate against defense 
        items produced in the United States to a greater degree 
        than the United States discriminates against defense 
        items produced in that country.
            [(3) Application of the limitation would impede 
        cooperative programs entered into between the 
        Department of Defense and a foreign country, or would 
        impede the reciprocal procurement of defense items 
        under a memorandum of understanding providing for 
        reciprocal procurement of defense items that is entered 
        into under section 2531 of this title, and that country 
        does not discriminate against defense items produced in 
        the United States to a greater degree than the United 
        States discriminates against defense items produced in 
        that country.]
            (1) The Department of Defense's need for the item 
        is of such an unusual and compelling urgency that the 
        United States would be seriously injured unless the 
        Department is permitted to procure the item from 
        sources outside the United States.
            [(4)] (2) Satisfactory quality items manufactured 
        by an entity that is part of the national technology 
        and industrial base (as defined in section 2500(1) of 
        this title) are not available.
            [(5)] (3) Application of the limitation would 
        result in the existence of only one source for the item 
        that is an entity that is part of the national 
        technology and industrial base (as defined in section 
        2500(1) of this title). This exception shall not apply 
        to items determined to be critical by the Secretary of 
        Defense under section 812 of the National Defense 
        Authorization Act for Fiscal Year 2004.
            [(6) The procurement is for an amount less than the 
        simplified acquisition threshold and simplified 
        purchase procedures are being used.
            [(7) Application of the limitation is not in the 
        national security interests of the United States.
            [(8) Application of the limitation would adversely 
        affect a United States company.]

           *       *       *       *       *       *       *

Sec. 2536. Award of certain contracts to entities controlled by a 
                    foreign government: prohibition

    (a) * * *

           *       *       *       *       *       *       *

    (b) Waiver Authority.--(1) * * *
    (2) The Secretary concerned shall [notify Congress] 
maintain a record of any decision to grant a waiver under 
paragraph (1)(B) with respect to a contract. [The contract may 
be awarded only after the end of the 45-day period beginning on 
the date the notification is received by the committees.] The 
records maintained under the preceding sentence with respect to 
a waiver shall include a justification in suport of the 
decision to grant the waiver and shall be retrievable for any 
particular waiver or for waivers during any period of time.

           *       *       *       *       *       *       *

    (d) The Secretary of Defense shall maintain an account of 
actions relating to the award of contracts to a prime 
contractor. The Secretary of Defense shall include in such 
accounts the reasons for exercising the awards and the work 
expected to be performed.

           *       *       *       *       *       *       *

SUBCHAPTER VII--CRITICAL INFRASTRUCTURE PROTECTION LOAN GUARANTEES

           *       *       *       *       *       *       *

Sec. 2541d. Reports

    [(a) Report by Commercial Firms to Secretary of Defense.--
]The Secretary of Defense shall require each qualified 
commercial firm for which a loan is guaranteed under this 
subchapter to submit to the Secretary a report on the 
improvements financed or refinanced with the loan. The report 
shall include an assessment of the value of the improvements 
for the protection of the critical infrastructure of that 
commercial firm. The Secretary shall prescribe the time for 
submitting the report.
    [(b) Annual Report by Secretary of Defense to Congress.--
Not later than March 1 of each year in which guarantees are 
made under this subchapter, the Secretary of Defense shall 
submit to Congress a report on the loan guarantee program under 
this subchapter. The report shall include the following:
            [(1) The amounts of the loans for which guarantees 
        were issued during the year preceding the year of the 
        report.
            [(2) The success of the program in improving the 
        protection of the critical infrastructure of the 
        commercial firms covered by the guarantees.
            [(3) The relationship of the loan guarantee program 
        to the critical infrastructure protection program of 
        the Department of Defense, together with an assessment 
        of the extent to which the loan guarantee program 
        supports the critical infrastructure protection 
        program.
            [(4) Any other information on the loan guarantee 
        program that the Secretary considers appropriate to 
        include in the report.]

           *       *       *       *       *       *       *

CHAPTER 152--ISSUE OF SUPPLIES, SERVICES, AND FACILITIES

           *       *       *       *       *       *       *

Sec. 2561. Humanitarian assistance

    (a) Authorized Assistance.--(1) To the extent provided in 
defense authorization Acts, funds authorized to be appropriated 
to the Department of Defense for a fiscal year for humanitarian 
assistance shall be used for the purpose of providing 
transportation of humanitarian relief and for other 
humanitarian purposes worldwide.
    (2) The authority of the Department of Defense to provide 
humanitarian assistance under this section includes the 
authority to transport supplies or provide assistance 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.

           *       *       *       *       *       *       *

    [(c) Status Reports.--(1) The Secretary of Defense shall 
submit to the congressional committees specified in subsection 
(f) an annual report on the provision of humanitarian 
assistance pursuant to this section for the prior fiscal year. 
The report shall be submitted each year at the time of the 
budget submission by the President for the next fiscal year.
    [(2) Each report required by paragraph (1) shall cover all 
provisions of law that authorize appropriations for 
humanitarian assistance to be available from the Department of 
Defense for the purposes of this section.
    [(3) Each report under this subsection shall set forth the 
following information regarding activities during the previous 
fiscal year:
            [(A) The total amount of funds obligated for 
        humanitarian relief under this section.
            [(B) The number of scheduled and completed 
        transportation missions for purposes of providing 
        humanitarian assistance under this section.
            [(C) A description of any transfer of excess 
        nonlethal supplies of the Department of Defense made 
        available for humanitarian relief purposes under 
        section 2557 of this title. The description shall 
        include the date of the transfer, the entity to whom 
        the transfer is made, and the quantity of items 
        transferred.
    [(d) Report Regarding Relief for Unauthorized Countries.--
In any case in which the Secretary of Defense provides for the 
transportation of humanitarian relief to a country to which the 
transportation of humanitarian relief has not been specifically 
authorized by law, the Secretary shall notify the congressional 
committees specified in subsection (f) and the Committees on 
Appropriations of the Senate and House of Representatives of 
the Secretary's intention to provide such transportation. The 
notification shall be submitted not less than 15 days before 
the commencement of such transportation.]

           *       *       *       *       *       *       *

    [(f) Congressional Committees.--The congressional 
committees referred to in subsections (c)(1) and (d) are the 
following:
            [(1) The Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.
            [(2) The Committee on Armed Services and the 
        Committee on International Relations of the House of 
        Representatives.]

           *       *       *       *       *       *       *

Sec. 2563. Articles and services of industrial facilities: sale to 
                    persons outside the Department of Defense

    (a) * * *

           *       *       *       *       *       *       *

    (c) Conditions for Sales.--(1) * * *
    (2) The Secretary of Defense may waive the condition in 
paragraph (1)(A) and subsection (a)(1) that an article or 
service must be not available from a United States commercial 
source in the case of a particular sale if the Secretary 
determines that the waiver is necessary for reasons of national 
security [and notifies Congress regarding the reasons for the 
waiver].

           *       *       *       *       *       *       *

CHAPTER 153--EXCHANGE OF MATERIAL AND DISPOSAL OF OBSOLETE, SURPLUS, OR 
UNCLAIMED PROPERTY

           *       *       *       *       *       *       *

Sec.
2571.    Interchange of property and services.
     * * * * * * *
[2581.    Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for 
          transfer to foreign countries.]
2581.    Specified excess aircraft: requirements for transfer to foreign 
          countries.
     * * * * * * *

[Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements 
                    for transfer to foreign countries]

Sec. 2581. Specified excess aircraft: requirements for transfer to 
                    foreign countries

    (a) Requirements.--(1) Before an excess [UH-1 Huey 
helicopter or AH-1 Cobra helicopter] UH-1 Huey aircraft, AH-1 
Cobra aircraft, T-2 Buckeye aircraft, or T-37 Tweet aircraft is 
transferred on a grant or sales basis 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 
[helicopter] aircraft receives, to the extent necessary, 
maintenance and repair equivalent to the depot-level 
maintenance and repair (as defined in section 2460 of this 
title) that the [helicopter] aircraft would need were the 
[helicopter] aircraft to remain in operational use with the 
armed forces. Any such maintenance and repair work shall be 
performed at no cost to the Department of Defense.

           *       *       *       *       *       *       *

             CHAPTER 155--ACCEPTANCE OF GIFTS AND SERVICES

Sec.
2601.    General gift funds.
     * * * * * * *
2611.    Asia-Pacific Center for Security Studies: acceptance of 
          [foreign] gifts and donations.

           *       *       *       *       *       *       *

Sec. 2611. Asia-Pacific Center for Security Studies: acceptance of 
                    [foreign] gifts and donations

    (a) Authority To Accept [Foreign] Gifts and Donations.--(1) 
Subject to subsection (b), the Secretary of Defense may accept, 
on behalf of the Asia-Pacific Center, [foreign] gifts or 
donations in order to defray the costs of, or enhance the 
operation of, the Asia-Pacific Center. Such gifts and donations 
may be accepted from any agency of the United States, any State 
or local government, any foreign government, any foundation or 
other charitable organization (including any that is organized 
or operates under the laws of a foreign country), or any other 
private source in the United States or a foreign country.

           *       *       *       *       *       *       *

    (c) Criteria for Acceptance.--The Secretary shall prescribe 
written guidance setting forth the criteria to be used in 
determining whether the acceptance of a [foreign] gift or 
donation would have a result described in subsection (b).

           *       *       *       *       *       *       *

    (f) [Foreign] Gift or Donation Defined.--For purposes of 
this section, a [foreign] gift or donation is a gift or 
donation of funds, materials (including research materials), 
property, or services (including lecture services and faculty 
services) [from a foreign government, a foundation or other 
charitable organization in a foreign country, or an individual 
in a foreign country].

           *       *       *       *       *       *       *

                      CHAPTER 157--TRANSPORTATION

Sec.
2631.    Supplies: preference to United States vessels.
     * * * * * * *
2648. Dependents of members assigned to overseas duty locations for 
          continuous period in excess of one year: space-available 
          transportation.

           *       *       *       *       *       *       *

Sec. 2634. Motor vehicles: transportation or storage for members on 
                    change of permanent station or extended deployment

    (a) * * *

           *       *       *       *       *       *       *

    (h) In the case of a 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.
    [(h)] (i) In this section:
            (1) * * *

           *       *       *       *       *       *       *

Sec. 2645. Indemnification of Department of Transportation for losses 
                    covered by vessel war risk insurance

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Notice to Congress.--In the event of a loss that is 
covered by vessel war risk insurance in the case of an incident 
in which the covered loss is (or is expected to be) in an 
amount in excess of $1,000,000, the Secretary of Defense shall 
submit to Congress--
            [(1) notification of the loss as soon after the 
        occurrence of the loss as possible and in no event more 
        than 30 days after the date of the loss; and
            [(2) semiannual reports thereafter updating the 
        information submitted under paragraph (1) and showing 
        with respect to losses arising from such incident the 
        total amount expended to cover such losses, the source 
        of such funds, pending litigation, and estimated total 
        cost to the Government.]

           *       *       *       *       *       *       *

    [(g) Annual Report on Contingent Liabilities.--Not later 
than March 1 of each year, the Secretary of Defense shall 
submit to Congress a report setting forth the current amount of 
the contingent outstanding liability of the United States under 
the vessel war risk insurance program under title XII of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et seq.).]

           *       *       *       *       *       *       *

Sec. 2648. Dependents of members assigned to overseas duty locations 
                    for continuous period in excess of one year: space-
                    available transportation

    (a) Authority.--The Secretary of Defense shall authorize 
travel on Government aircraft on a space-available basis for 
dependents of members on active duty assigned to duty at an 
overseas location as described in subsection (b) to the same 
extent as such travel is authorized for a dependent of a member 
assigned to that duty location in a permanent change of station 
status.
    (b) Duty Status Covered.--Duty at an overseas location 
described in this subsection is duty for a continuous period in 
excess of one year that is in a temporary duty status or that 
is in a permanent duty status without change of station.
    (c) Types of Transportation Authorized.--If authorized for 
other members at that duty location, travel provided under this 
section may include (1) travel between the overseas duty 
location and the United States and return, and (2) travel 
between the overseas duty location and another overseas 
location and return.
    (d) Alaska and Hawaii.--For purposes of this section, duty 
in Alaska or Hawaii shall be considered to be duty at an 
overseas location.

           *       *       *       *       *       *       *

  CHAPTER 159--REAL PROPERTY; RELATED PERSONAL PROPERTY; AND LEASE OF 
                           NONEXCESS PROPERTY

Sec.
2661.    Miscellaneous administrative provisions relating to real 
          property.
     * * * * * * *
[2672.    Acquisition: interests in land when cost is not more than 
          $500,000.]
2672.    Authority to acquire low-cost interests in land.
     * * * * * * *
[2679.    Representatives of veterans' organizations: use of space and 
          equipment.]
2679. Access to and use of space and equipment at military 
          installations: representatives of veterans' organizations and 
          other persons.
     * * * * * * *
2694b. Participation in wetland mitigation banks.

           *       *       *       *       *       *       *

Sec. 2662. Real property transactions: reports to congressional 
                    committees

    (a) General Notice and Wait Requirements.--The Secretary of 
a military department, or his designee, may not enter into any 
of the following listed transactions by or for the use of that 
department until after the expiration of [30 days from the date 
upon which a report of the facts concerning the proposed 
transaction is submitted] 14 days after the beginning of the 
month with respect to which a single report containing the 
facts concerning such transaction and all other such proposed 
transactions for that month is submitted, not later than the 
first day of that month, to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives:
            (1) An acquisition of fee title to any real 
        property, if the estimated price is more than 
        [$500,000] $1,500,000.
            (2) A lease of any real property to the United 
        States, if the estimated annual rental is more than 
        [$500,000] $1,500,000.
            (3) A lease or license of real property owned by 
        the United States, if the estimated annual fair market 
        rental value of the property is more than [$500,000] 
        $1,500,000.
            (4) A transfer of real property owned by the United 
        States to another Federal agency or another military 
        department or to a State, if the estimated value is 
        more than [$500,000] $1,500,000.
            (5) A report of excess real property owned by the 
        United States to a disposal agency, if the estimated 
        value is more than [$500,000] $1,500,000.

           *       *       *       *       *       *       *

    (b) Annual Reports on Certain Minor Transactions.--The 
Secretary of each military department shall submit annually to 
the congressional committees named in subsection (a) a report 
on transactions described in subsection (a) that involve an 
estimated value of [more than the simplified acquisition 
threshold specified in section 4(11) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(11)), but not more than 
$500,000] more than $250,000 but not more than $1,500,000.

           *       *       *       *       *       *       *

    (e) Notice and Wait Regarding Leases of Space for DoD by 
GSA.--No element of the Department of Defense shall occupy any 
general purpose space leased for it by the General Services 
Administration at an annual rental in excess of [$500,000] 
$1,000,000 (excluding the cost of utilities and other operation 
and maintenance services), if the effect of such occupancy is 
to increase the total amount of such leased space occupied by 
all elements of the Department of Defense, until the expiration 
of [thirty days] 14 days from the date upon which a report of 
the facts concerning the proposed occupancy is submitted to the 
congressional committees named in subsection (a).

           *       *       *       *       *       *       *

    (g) Exceptions for Transactions for War and Certain 
Emergency and Other Operations.--(1) * * *

           *       *       *       *       *       *       *

    (3) Not later than [30 days] 14 days after entering into a 
real property transaction covered by paragraph (1) or (2), the 
Secretary concerned shall submit to the committees named in 
subsection (a) a report on the transaction. The report shall 
set forth any facts or information which would otherwise have 
been submitted in a report on the transaction under subsection 
(a) or (e), as the case may be, but for the operation of 
paragraph (1) or (2).

           *       *       *       *       *       *       *

Sec. 2667. Leases: non-excess property of military departments

    (a) * * *

           *       *       *       *       *       *       *

    (h) In this [section:
            [(1) The term ``congressional defense committees'' 
        means:
                    [(A) The Committee on Armed Services and 
                the Committee on Appropriations of the Senate.
                    [(B) The Committee on Armed Services and 
                the Committee on Appropriations of the House of 
                Representatives.
            [(2) 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).
            [(3) The term] section, the term ``military 
        installation'' has the meaning given such term in 
        section 2687(e)(1) of this title.

           *       *       *       *       *       *       *

Sec. 2667a. Leases: non-excess property of Defense agencies

    (a) * * *

           *       *       *       *       *       *       *

    (c) Competitive Selection.--(1) * * *
    (2) Not later than [45 days] 14 days before entering into a 
lease described in paragraph (1), the Secretary shall submit to 
Congress a written notice describing the terms of the proposed 
lease and the competitive procedures used to select the lessee.

           *       *       *       *       *       *       *

[Sec. 2672. Acquisition: interests in land when cost is not more than 
                    $500,000]

Sec. 2672. Authority to acquire low-cost interests in land

    (a)(1) The Secretary of a military department may acquire 
any interest in land that--
            (A) * * *
            (B) does not cost more than [$500,000] $1,500,000, 
        exclusive of administrative costs and the amounts of 
        any deficiency judgments.
    (2) This section does not apply to the acquisition, as a 
part of the same project, of more than one parcel of land 
unless the parcels are noncontiguous, or, if contiguous, unless 
the total cost is not more than [$500,000] $1,500,000.

           *       *       *       *       *       *       *

Sec. 2672a. Acquisition: interests in land when need is urgent

    (a) The Secretary of a military department may acquire any 
interest in land that--
            (1) [he or his designee] the Secretary determines 
        is needed in the interest of national defense;

           *       *       *       *       *       *       *

    (b) Appropriations available for military construction may 
be used for the purposes of this section. The authority to 
acquire an interest in land under this section includes 
authority to make surveys and acquire interests in land 
(including temporary use), by gift, purchase, exchange of land 
owned by the United States, or otherwise. [The Secretary of a 
military department contemplating action under this section 
shall provide notice, in writing, to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives at least 30 days in advance of any 
action being taken.]
    (c) Not later than 10 days after the determination is made 
under subsection (a)(1) that acquisition of an interest in land 
is needed in the interest of the national defense, the 
Secretary of the military department making that determination 
shall provide 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.

           *       *       *       *       *       *       *

Sec. 2674. Operation and control of Pentagon Reservation and defense 
                    facilities in National Capital Region

    (a) * * *

           *       *       *       *       *       *       *

    (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 and such other areas of 
land, locations, and physical facilities of the Department of 
Defense within 100 miles of the District of Columbia as the 
Secretary of Defense determines are necessary to meet the needs 
of the Department of Defense directly relating to continuity of 
operations and continuity of government.

Sec. 2675. Leases: foreign countries

    The Secretary of a military department may acquire by lease 
in foreign countries structures and real property relating to 
structures that are needed for military purposes other than for 
military family housing. A lease under this section may be for 
a period of up to five years, or 15 years in the case of a 
lease in Korea, and the rental for each yearly period may be 
paid from funds appropriated to that military department for 
that year.

Sec. 2676. Acquisition: limitation

    (a) * * *

           *       *       *       *       *       *       *

    (d) The limitations on reduction in scope or increase in 
cost of a land acquisition in subsection (c) do not apply if 
the reduction in scope or the increase in cost, as the case may 
be, is approved by the Secretary concerned and a written 
notification of the facts relating to the proposed reduced 
scope or increased cost (including a statement of the reasons 
therefor) is submitted by the Secretary concerned to the 
appropriate committees of Congress. A contract for the 
acquisition may then be awarded only after a period of [21 
days] 14 days elapses from the date the notification is 
received by the committees.

           *       *       *       *       *       *       *

[Sec. 2679. Representatives of veterans' organizations: use of space 
                    and equipment]

Sec. 2679. Access to and use of space and equipment at military 
                    installations: representatives of veterans' 
                    organizations and other persons

    (a) Access by Representatives of Veterans' Organizations.--
(1) Upon certification to the Secretary concerned by the 
Secretary of Veterans' Affairs, the Secretary concerned shall 
allow accredited, paid, full-time representatives of the 
organizations named in section 5902 of title 38, or of other 
organizations recognized by the Secretary of Veterans Affairs, 
to function on military installations under the jurisdiction of 
that Secretary concerned that are on land and from which 
persons are discharged or released from active duty.
    [(b)] (2) The commanding officer of each of those military 
installations shall allow the representatives described in 
[subsection (a)] paragraph (1) to use available space and 
equipment at that installation.
    [(c)] (3) The regulations prescribed to carry out this 
[section] subsection that are in effect on January 1, 1958, 
remain in effect until changed by joint action of the Secretary 
concerned and the Secretary of Veterans Affairs.
    (b) Access for Personal Commercial Solicitation.--An 
amendment or other revision to a Department of Defense 
directive relating to access to military installations for the 
purpose of conducting limited personal commercial solicitation 
shall not take effect until the end of the 90-day period 
beginning on the date the Secretary of Defense submits to 
Congress notice of the amendment or revision and the reasons 
therefor.
    [(d)] (c) This section does not authorize the violation of 
measures of military security.

Sec. 2680. Leases: land for special operations activities

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Reports.--Not later than March 1 of each year, 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 report that--
            [(1) identifies each leasehold interest acquired 
        during the previous fiscal year under subsection (a); 
        and
            [(2) contains a discussion of each project for the 
        construction or modification of facilities carried out 
        pursuant to subsection (c) during such fiscal year.]

           *       *       *       *       *       *       *

Sec. 2688. Utility systems: conveyance authority

    (a) * * *

           *       *       *       *       *       *       *

    (e) Notice-and-Wait Requirement.--The Secretary concerned 
may not make a conveyance under subsection (a) until--
            (1) the Secretary submits to [the Committee on 
        Armed Services and the Committee on Appropriations of 
        the Senate and the Committee on Armed Services and the 
        Committee on Appropriations of the House of 
        Representatives] the congressional defense committees 
        an economic analysis (based upon accepted life-cycle 
        costing procedures approved by the Secretary of 
        Defense) demonstrating that--
                    (A) * * *

           *       *       *       *       *       *       *

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.
    (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.

           *       *       *       *       *       *       *

Sec. 2696. Screening of real property for further Federal use before 
                    conveyance

    (a) * * *

           *       *       *       *       *       *       *

    [(c) Notice of Further Federal Use.--If the Administrator 
of General Services notifies the Secretary concerned under 
subsection (b) that further Federal use of a parcel of real 
property authorized or required to be conveyed by any provision 
of law is requested by a Federal agency, the Secretary 
concerned shall submit a copy of the notice to Congress.
    [(d) Congressional Disapproval.--If the Secretary concerned 
submits a notice under subsection (c) with regard to a parcel 
of real property, 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 if 
Congress enacts a law rescinding the conveyance authority or 
requirement before the end of the 180-day period beginning on 
the date on which the Secretary concerned submits the notice.]
    (e) Excepted Conveyance Authorities.--The screening 
requirements of this section shall not apply to real property 
authorized or required to be conveyed under any of the 
following provisions of law:
            [(1) Section 2687 of this title.
            [(2) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).
            [(3) 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).
            [(4) Any provision of law authorizing the closure 
        or realignment of a military installation that is 
        enacted after November 18, 1997.]
            (1) A base closure law.
            [(6)] (2) Any specific provision of law authorizing 
        or requiring the transfer of administrative 
        jurisdiction over a parcel of real property between 
        Federal agencies.

           *       *       *       *       *       *       *

CHAPTER 160--ENVIRONMENTAL RESTORATION

           *       *       *       *       *       *       *

Sec. 2703. Environmental restoration accounts

    (a) * * *

           *       *       *       *       *       *       *

    (c) Obligation of Authorized Amounts.--(1) * * *
    (2) The authority provided by paragraph (1)(B) expires 
September 30, 2003. The Secretary of Defense or the Secretary 
of a military department may not pay the costs of permanently 
relocating a facility under such paragraph [unless the 
Secretary--
            [(A) determines that] unless the Secretary 
        determines that permanent relocation--
            [(i)] (A) is the most cost effective method of 
        responding to the release or threatened release of 
        hazardous substances, pollutants, or contaminants from 
        the real property on which the facility is located;
            [(ii)] (B) has the approval of relevant regulatory 
        agencies; and
            [(iii)] (C) is supported by the affected community; 
        and
            [(B) submits to Congress written notice of the 
        determination before undertaking the permanent 
        relocation of the facility, including a description of 
        the response action taken or to be taken in connection 
        with the permanent relocation and a statement of the 
        costs incurred or to be incurred in connection with the 
        permanent relocation.]

           *       *       *       *       *       *       *

Sec. 2705. Notice of environmental restoration activities

    (a) * * *

           *       *       *       *       *       *       *

    (d) Restoration Advisory Board.--(1) * * *
    (2)(A) * * *

           *       *       *       *       *       *       *

    (C) The Federal Advisory Committee Act (5 U.S.C. App.) 
shall not apply to a restoration advisory board established 
under this subsection.

           *       *       *       *       *       *       *

    [(h) Definition.--In this section, the term ``base closure 
law'' means the following:
            [(1) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).
            [(2) 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).
            [(3) Section 2687 of this title.]

           *       *       *       *       *       *       *

 CHAPTER 161--PROPERTY RECORDS AND REPORT OF THEFT OR LOSS OF CERTAIN 
                                PROPERTY

Sec.
2721.    Property records: maintenance on quantitative and monetary 
          basis.
     * * * * * * *
[2723.    Notice to congressional committees of certain security and 
          counterintelligence failures within defense programs.]

           *       *       *       *       *       *       *

[Sec. 2723. Notice to congressional committees of certain security and 
                    counterintelligence failures within defense 
                    programs

    [(a) Required Notification.--The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a notification of each security or 
counterintelligence failure or compromise of classified 
information relating to any defense operation, system, or 
technology of the United States that the Secretary considers 
likely to cause significant harm or damage to the national 
security interests of the United States. The Secretary shall 
consult with the Director of Central Intelligence and the 
Director of the Federal Bureau of Investigation, as 
appropriate, before submitting any such notification.
    [(b) Manner of Notification.--Notification of a failure or 
compromise of classified information under subsection (a) shall 
be provided, in accordance with the procedures established 
pursuant to subsection (c), not later than 30 days after the 
date on which the Department of Defense determines that the 
failure or compromise has taken place.
    [(c) Procedures.--The Secretary of Defense and the 
Committees on Armed Services of the Senate and House of 
Representatives shall each establish such procedures as may be 
necessary to protect from unauthorized disclosure classified 
information, information relating to intelligence sources and 
methods, and sensitive law enforcement information that is 
submitted to those committees pursuant to this section and that 
are otherwise necessary to carry out the provisions of this 
section.
    [(d) Statutory Construction.--(1) Nothing in this section 
shall be construed as authority to withhold any information 
from the Committees on Armed Services of the Senate and House 
of Representatives on the grounds that providing the 
information to those committees would constitute the 
unauthorized disclosure of classified information, information 
relating to intelligence sources and methods, or sensitive law 
enforcement information.
    [(2) Nothing in this section shall be construed to modify 
or supersede any other requirement to report information on 
intelligence activities to the Congress, including the 
requirement under section 501 of the National Security Act of 
1947 (50 U.S.C. 413).]

           *       *       *       *       *       *       *

CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *

                  SUBCHAPTER I--MILITARY CONSTRUCTION

Sec.
2801.    Scope of chapter; definitions.
     * * * * * * *
2810.    Use of operation and maintenance funds for construction: 
          notification and reporting requirements and limitations.

           *       *       *       *       *       *       *

Sec. 2801. Scope of chapter; definitions

    (a) * * *

           *       *       *       *       *       *       *

    (c) In this chapter:
            (1) * * *

           *       *       *       *       *       *       *

            (4) The term ``appropriate committees of Congress'' 
        means the [Committee on Armed Services and the 
        Committee on Appropriations of the Senate and the 
        Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives] the 
        congressional defense committees and, with respect to 
        any project to be carried out by, or for the use of, an 
        intelligence component of the Department of Defense, 
        the Permanent Select Committee on Intelligence of the 
        House of Representatives and the Select Committee on 
        Intelligence of the Senate.

           *       *       *       *       *       *       *

Sec. 2803. Emergency construction

    (a) * * *
    (b) When a decision is made to carry out a military 
construction project under this section, the Secretary 
concerned shall submit a report in writing to the appropriate 
committees of Congress on that decision. Each such report shall 
include (1) the justification for the project and the current 
estimate of the cost of the project, (2) the justification for 
carrying out the project under this section, and (3) a 
statement of the source of the funds to be used to carry out 
the project. The project may then be carried out only after the 
end of the [21-day period] seven-day period beginning on the 
date the notification is received by such committees.
    (c)(1) The maximum amount that the Secretary concerned may 
obligate in any fiscal year under this section is [$30,000,000] 
$45,000,000.

           *       *       *       *       *       *       *

Sec. 2804. Contingency construction

    (a) * * *
    (b) When a decision is made to carry out a military 
construction project under this section, the Secretary of 
Defense shall submit a report in writing to the appropriate 
committees of Congress on that decision. Each such report shall 
include (1) the justification for the project and the current 
estimate of the cost of the project, and (2) the justification 
for carrying out the project under this section. The project 
may then be carried out only after the end of the [21-day 
period] 14-day period beginning on the date the notification is 
received by such committees.

Sec. 2805. Unspecified minor construction

    (a) * * *
    (b)(1) An unspecified minor military construction project 
costing more than [$750,000] $1,000,000 may not be carried out 
under this section unless approved in advance by the Secretary 
concerned. This paragraph shall apply even though the project 
is to be carried out using funds made available to enhance the 
deployment and mobility of military forces and supplies.
    (2) When a decision is made to carry out an unspecified 
minor military construction project to which paragraph (1) is 
applicable, the Secretary concerned shall notify in writing the 
appropriate committees of Congress of that decision, of the 
justification for the project, and of the estimated cost of the 
project. The project may then be carried out only after the end 
of the [21-day period] seven-day period beginning on the date 
the notification is received by the committees.

           *       *       *       *       *       *       *

Sec. 2807. Architectural and engineering services and construction 
                    design

    (a) * * *
    (b) In the case of architectural and engineering services 
and construction design to be undertaken under subsection (a) 
for which the estimated cost exceeds [$500,000] $1,000,000, the 
Secretary concerned shall notify the appropriate committees of 
Congress of the scope of the proposed project and the estimated 
cost of such services [not less than 21 days] before the 
initial obligation of funds for such services.
    (c) If the Secretary concerned determines that the amount 
authorized for activities under subsection (a) in any fiscal 
year must be increased the Secretary may proceed with 
activities at such higher level (1) after submitting a report 
in writing to the appropriate committees of Congress on such 
increase, including a statement of the reasons for the increase 
and a statement of the source of funds to be used for the 
increase, and (2) after a period of [21] 14 days has elapsed 
from the date of receipt of the report.

           *       *       *       *       *       *       *

Sec. 2809. Long-term facilities contracts for certain activities and 
                    services

    (a) * * *

           *       *       *       *       *       *       *

    (f) Notice and Wait Requirements.--A contract may not be 
entered into under this section until--
            (1) * * *
            (2) a period of [21 calendar days] 14 days has 
        expired following the date on which the justification 
        and the economic analysis are received by the 
        committees.

Sec. 2810. Use of operation and maintenance funds for construction: 
                    notification and reporting requirements and 
                    limitations

    (a) Advance Notification of Obligation of Funds.--(1) The 
Secretary concerned shall submit to the appropriate committees 
of Congress advance written notice before appropriations 
available for operation and maintenance are obligated for 
construction described in paragraph (2). The notice shall be 
submitted not later than 14 days before the date on which 
appropriations available for operation and maintenance are 
first obligated for that construction and shall contain the 
information required by subsection (c).
    (2) Paragraph (1) applies with respect to any construction 
having an estimated total cost of more than $1,500,000, but not 
more than $5,000,000, which is paid for in whole or in part 
using appropriations available for operation and maintenance, 
if--
            (A) the construction is necessary to meet urgent 
        military operational requirements of a temporary 
        nature;
            (B) the construction was not carried out at a 
        military installation where the United States is 
        reasonably expected to have a long-term interest or 
        presence;
            (C) the United States has no intention of using the 
        construction after the operational requirement has been 
        satisfied; and
            (D) the level of construction is the minimum 
        necessary to meet the temporary operational need.
    (b) Waiver Authority; Congressional Notification.--(1) The 
Secretary concerned may waive the advance notice requirement 
under subsection (a) on a case-by-case basis if the Secretary 
determines that--
            (A) the project is vital to the national security 
        or to the protection of health, safety, or the quality 
        of the environment; and
            (B) the requirement for the construction is so 
        urgent that deferral of the construction during the 
        period specified in subsection (a)(1) would be 
        inconsistent with national security or the protection 
        of health, safety, or environmental quality, as the 
        case may be.
    (2) Not later than five days after the date on which a 
waiver is granted under paragraph (1), the Secretary concerned 
shall provide to the appropriate committees of Congress written 
notice containing the reasons for the waiver and the 
information required by subsection (c) with regard to the 
construction for which the waiver was granted.
    (c) Content of Notice.--The notice provided under 
subsection (a) or (b) with regard to construction funded using 
appropriations available for operation and maintenance shall 
include the following:
            (1) A description of the purpose for which the 
        funds are being obligated.
            (2) An estimate of the total amount to be obligated 
        for the construction.
            (3) The reasons appropriations available for 
        operation and maintenance are being used.
    (d) Limitations on Use of Operation and Maintenance 
Funds.--(1) The Secretary concerned shall not use 
appropriations available for operation and maintenance to carry 
out any construction having an estimated total cost of more 
than $5,000,000.
    (2) The total cost of construction carried out by the 
Secretaries concerned in whole or in part using appropriations 
available for operation and maintenance shall not exceed 
$200,000,000 in any fiscal year.
    (e) Quarterly Report.--The Secretary concerned shall submit 
to the appropriate committees of Congress a quarterly report on 
the worldwide obligation and expenditure of appropriations 
available for operation and maintenance by the Secretary 
concerned for construction during the preceding quarter.

           *       *       *       *       *       *       *

Sec. 2812. Lease-purchase of facilities

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) The Secretary concerned may not enter into a lease 
under this section until--
            (A) * * *
            (B) a period of [21] 14 days has expired following 
        the date on which the justification and economic 
        analysis are received by the committees.

           *       *       *       *       *       *       *

Sec. 2813. Acquisition of existing facilities in lieu of authorized 
                    construction

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice and Wait Requirements.--A contract may not be 
entered into for the acquisition of a facility under subsection 
(a) until the end of the [30-day period] 21-day period 
beginning on the date the Secretary concerned transmits to the 
appropriate committees of Congress a written notification of 
the determination to acquire an existing facility instead of 
carrying out the authorized military construction project. The 
notification shall include the reasons for acquiring the 
facility.

Sec. 2814. Special authority for development of Ford Island, Hawaii

    (a) * * *

           *       *       *       *       *       *       *

    (i) Use of Account.--(1) * * *

           *       *       *       *       *       *       *

    [(3)(A) The Secretary may transfer funds from the Ford 
Island Improvement Account to the following funds:
            [(i) The Department of Defense Family Housing 
        Improvement Fund established by section 2883(a)(1) of 
        this title.
            [(ii) The Department of Defense Military 
        Unaccompanied Housing Improvement Fund established by 
        section 2883(a)(2) of this title.]
    (A) The Secretary may transfer funds from the Ford Island 
Improvement Account to the Department of Defense Housing 
Improvement Fund established by section 2883(a) of this title.
    (B) Amounts transferred under subparagraph (A) to [a fund] 
the Fund referred to in that subparagraph shall be available in 
accordance with the provisions of section 2883 of this title 
for activities authorized under subchapter IV of this chapter 
at Ford Island.

           *       *       *       *       *       *       *

SUBCHAPTER II--MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *

Sec. 2822. Requirement for authorization of number of family housing 
                    units

    (a) * * *
    (b) Subsection (a) does not apply to the following:
            (1) * * *

           *       *       *       *       *       *       *

            (6) Housing units constructed or provided under 
        section 2869 of this title.

           *       *       *       *       *       *       *

Sec. 2825. Improvements to family housing units

    (a) * * *
    (b)(1) Funds may not be expended for the improvement of any 
single family housing unit, or for the improvement of two or 
more housing units that are to be converted into or are to be 
used as a single family housing unit, if the cost per unit of 
such improvement will exceed (A) $50,000 multiplied by the area 
construction cost index as developed by the Department of 
Defense for the location concerned at the time of contract 
award, or (B) in the case of improvements necessary to make the 
unit suitable for habitation by a handicapped person, $60,000 
multiplied by such index. The Secretary concerned may waive the 
limitations contained in the preceding sentence if (i) such 
Secretary determines that, considering the useful life of the 
structure to be improved and the useful life of a newly 
constructed unit and the cost of construction and of operation 
and maintenance of each kind of unit over its useful life, the 
improvement will be cost-effective, and (ii) a period of [21] 
14 days elapses after the date on which the appropriate 
committees of Congress receive a notice from such Secretary of 
the proposed waiver, together with an economic analysis 
demonstrating that the improvement will be cost effective.

           *       *       *       *       *       *       *

    (c)(1) The Secretary concerned may construct replacement 
military family housing units in lieu of improving existing 
military family housing units if--
            (A) * * *

           *       *       *       *       *       *       *

            (D) a period of [21] 14 days elapses after the date 
        on which the Secretary submits the notice required by 
        subparagraph (C).

           *       *       *       *       *       *       *

Sec. 2826. Military family housing: local comparability of room 
                    patterns and floor areas

    [(a) Local Comparability.--]In the construction, 
acquisition, and improvement of military family housing, the 
Secretary concerned shall ensure that the room patterns and 
floor areas of military family housing in a particular locality 
(as designated by the Secretary concerned for purposes of this 
section) are similar to room patterns and floor areas of 
similar housing in the private sector in that locality.
    [(b) Requests for Authority for Military Family Housing.--
(1) In submitting to Congress a request for authority to carry 
out the construction, acquisition, or improvement of military 
family housing, the Secretary concerned shall include in the 
request information on the net floor area of each unit of 
military family housing to be constructed, acquired, or 
improved under the authority.
    [(2) In this subsection, the term ``net floor area'', in 
the case of a military family housing unit, means the total 
number of square feet of the floor space inside the exterior 
walls of the unit, excluding the floor area of an unfinished 
basement, an unfinished attic, a utility space, a garage, a 
carport, an open or insect-screened porch, a stairwell, and any 
space used for a solar-energy system.]

Sec. 2827. Relocation of military family housing units

    (a) * * *
    (b) A contract to carry out a relocation of military family 
housing units under subsection (a) may not be awarded until (1) 
the Secretary concerned has notified the appropriate committees 
of Congress of the proposed new locations of the housing units 
to be relocated and the estimated cost of and source of funds 
for the relocation, and (2) a period of [21] 14 days has 
elapsed after the notification has been received by those 
committees.

Sec. 2828. Leasing of military family housing

    (a) * * *

           *       *       *       *       *       *       *

    (d)(1) Leases of housing units in foreign countries under 
subsection (c) for assignment as family housing may be for any 
period not in excess of [ten years,] 10 years, or 15 years in 
the case of leases in Korea, and the costs of such leases for 
any year may be paid out of annual appropriations for that 
year.

           *       *       *       *       *       *       *

    (e)(1) * * *
    (2) In addition to the 450 units of family housing referred 
to in paragraph (1) for which the maximum lease amount is 
$25,000 per unit per year, the Secretary of the Navy may lease 
not more than [2,000] 2,800 units of family housing in Italy, 
and the Secretary of the Army may lease not more than 500 units 
of family housing in Italy, subject to that maximum lease 
amount.

           *       *       *       *       *       *       *

Sec. 2836. Military housing rental guarantee program

    (a) * * *

           *       *       *       *       *       *       *

    (f) Notice and Wait Requirements.--An agreement may not be 
entered into under subsection (a) until--
            (1) * * *
            (2) a period of [21] 14 calendar days has expired 
        following the date on which the economic analysis is 
        received by those committees.

           *       *       *       *       *       *       *

Sec. 2837. Limited partnerships with private developers of housing

    (a) * * *

           *       *       *       *       *       *       *

    (c) Selection of Investment Opportunities.--(1) * * *
    (2) When a decision is made to enter into a limited 
partnership under subsection (a), the Secretary concerned shall 
submit a report in writing to the appropriate committees of 
Congress on that decision. Each such report shall include the 
justification for the limited partnership, the terms and 
conditions of the limited partnership, a description of the 
development costs for projects under the limited partnership, 
and a description of the share of such costs to be incurred by 
the Secretary concerned. The Secretary concerned may then enter 
into the limited partnership only after the end of the [21-day 
period] 14-day period beginning on the date the report is 
received by such committees.

           *       *       *       *       *       *       *

 SUBCHAPTER III--ADMINISTRATION OF MILITARY CONSTRUCTION AND MILITARY 
                             FAMILY HOUSING

Sec.
2851.    Supervision of military construction projects.
     * * * * * * *
[2859.    Transmission of annual military construction authorization 
          request.]
     * * * * * * *
2869.    Conveyance of property at military installations closed or to 
          be closed in exchange for military construction activities.

           *       *       *       *       *       *       *

Sec. 2854. Restoration or replacement of damaged or destroyed 
                    facilities

    (a) * * *
    (b) When a decision is made to carry out construction under 
this section and the cost of the repair, restoration, or 
replacement is greater than the maximum amount for a minor 
construction project, the Secretary concerned shall notify in 
writing the appropriate committees of Congress of that 
decision, of the justification for the project, of the current 
estimate of the cost of the project, of the source of funds for 
the project, and of the justification for carrying out the 
project under this section. The project may then be carried out 
only after the end of the [21-day period] seven-day period 
beginning on the date the notification is received by such 
committees.

Sec. 2854a. Conveyance of damaged or deteriorated military family 
                    housing; use of proceeds

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice and Wait Requirements.--The Secretary concerned 
may not enter into an agreement to convey a family housing 
facility under this section until--
            (1) * * *
            (2) a period of [21 calendar days] 14 days has 
        elapsed after the date on which the justification is 
        received by the committees.

           *       *       *       *       *       *       *

Sec. 2855. Law applicable to contracts for architectural and 
                    engineering services and construction design

    (a) * * *
    (b)(1) * * *
    (2) The initial threshold amount under paragraph (1) is 
[$85,000] $300,000. The Secretary of Defense may revise that 
amount in order to ensure that small business concerns receive 
a reasonable share of contracts referred to in subsection (a).

           *       *       *       *       *       *       *

    (4) The selection and competition requirements described in 
subsection (a) shall apply to any contract for architectural 
and engineering services (including surveying and mapping 
services) that is entered into by the head of an agency (as 
such term is defined in section 2302 of this title).

           *       *       *       *       *       *       *

[Sec. 2859. Transmission of annual military construction authorization 
                    request

    [The Secretary of Defense shall transmit to Congress the 
annual request for military construction authorization for a 
fiscal year during the first 10 days after the President 
transmits to Congress the Budget for that fiscal year pursuant 
to section 1105 of title 31.]

           *       *       *       *       *       *       *

Sec. 2865. Energy savings at military installations

    (a) * * *
    (b) Use of Energy Cost Savings.--(1) [Two-thirds of the 
portion of the funds appropriated to the Department of Defense 
for a fiscal year that is] Funds appropriated to the Department 
of Defense for a fiscal year that are equal to the amount of 
energy cost savings realized by the Department, including 
financial benefits resulting from shared energy savings 
contracts, shall remain available for obligation under 
paragraph (2) until expended, without additional authorization 
or appropriation.

           *       *       *       *       *       *       *

    (e) Energy Conservation Construction Projects.--[(1)] The 
Secretary of Defense may carry out a military construction 
project for energy conservation, not previously authorized, 
using funds appropriated or otherwise made available for that 
purpose.
    [(2) When a decision is made to carry out a project under 
paragraph (1), the Secretary of Defense shall notify in writing 
the appropriate committees of Congress of that decision. The 
project may then be carried out only after the end of the 21-
day period beginning on the date the notification is received 
by such committees.
    [(f) Annual Report.--Not later than December 31 of each 
year, the Secretary of Defense shall transmit an annual report 
to the Congress containing a description of the actions taken 
to carry out this section, and the savings realized from such 
actions, during the fiscal year ending in the year in which the 
report is made. The Secretary shall also include in each report 
the types and amount of financial incentives received under 
subsection (d)(2) and section 2866(a)(2) of this title during 
the period covered by the report and the appropriation account 
or accounts to which the incentives were credited.]

Sec. 2866. Water conservation at military installations

    (a) * * *

           *       *       *       *       *       *       *

    (c) Water Conservation Construction Projects.--[(1)] The 
Secretary of Defense may carry out a military construction 
project for water conservation, not previously authorized, 
using funds appropriated or otherwise made available to the 
Secretary for water conservation.
    [(2) When a decision is made to carry out a project under 
paragraph (1), the Secretary of Defense shall notify the 
appropriate committees of Congress of that decision. Such 
project may be carried out only after the end of the 21-day 
period beginning on the date the notification is received by 
such committees.]

Sec. 2867. Sale of electricity from alternate energy and cogeneration 
                    production facilities

    (a) * * *

           *       *       *       *       *       *       *

    (c) Before carrying out a military construction project 
described in subsection (b) using proceeds from sales under 
subsection (a), the Secretary concerned shall notify Congress 
in writing of the project, the justification for the project, 
and the estimated cost of the project. The project may be 
carried out only after the end of the [21-day period] 14-day 
period beginning on the date the notification is received by 
Congress.

           *       *       *       *       *       *       *

Sec. 2869. Conveyance of property at military installations closed or 
                    to be closed in exchange for military construction 
                    activities

    (a) Conveyance Authorized; Consideration.--The Secretary of 
Defense 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, or provide services in connection 
        with, an authorized military construction project; or
            (2) to transfer to the Secretary of Defense 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 
        or military unaccompanied housing (or both).
    (b) Conditions on Conveyance Authority.--A conveyance of 
real property may be made under subsection (a) only if--
            (1) the fair market value of the consideration to 
        be received in exchange for the real property conveyed 
        under subsection (a) is equal to or greater than the 
        fair market value of the property, including any 
        improvements thereon, as determined by the Secretary 
        concerned; and
            (2) in the event the fair market value of the 
        consideration to be received is equal to at least 90 
        percent, but less than 100 percent, of the fair market 
        value of the real property to be conveyed, including 
        any improvements thereon, the recipient of the property 
        agrees to pay to the Secretary of Defense an amount 
        equal to the difference in the fair market values.
    (c) Use of Authority.--(1) To the maximum extent 
practicable, the Secretary of Defense shall use the authority 
provided by subsection (a) to convey at least 20 percent of the 
total acreage conveyed each fiscal year at military 
installations closed or realigned under the base closure laws. 
Notice of the proposed use of this authority shall be provided 
in such manner as the Secretary may prescribe, including 
publication in the Federal Register and otherwise. In 
determining such total acreage for a fiscal year, the Secretary 
shall exclude real property identified in a redevelopment plan 
as property essential to the reuse or redevlopment of a 
military installation closed or to be closed under a base 
closure law.
    (2) To the maximum extent practicable, the Secretary of 
Defense shall endeavor to use the authority provided by 
subsection (a) to obtain military construction and military 
housing services having a total value of at least $200,000,000 
each fiscal year for each of the military departments.
    (3) The Secretary concerned shall utilize the authority 
provided in subsection (a) in lieu of obligating and expending 
funds appropriated for military construction and military 
housing projects that are authorized by law.
    (d) Deposit of Funds.--The Secretary of Defense may deposit 
funds received under subsection (b)(2) in the Department of 
Defense Housing Improvement Fund established under section 
2883(a) of this title.
    (e) Annual Report.--The Secretary of Defense shall include 
each year in the materials that the Secretary submits to 
Congress in support of the budget submitted by the President 
pursuant to section 1105 of title 31 a report detailing the 
extent to which the Secretary used the authority provided by 
subsection (a) to convey real property in exchange for military 
construction and military housing and plans for the use of such 
authority for the future. The report shall include the 
following:
            (1) The total value of the real property that was 
        actually conveyed during the preceding fiscal year 
        using the authority provided by subsection (a).
            (2) The total value of the military construction 
        and military housing services obtained in exchange, 
        and, if the dollar goal specified in subsection (c)(2) 
        was not achieved for a military department, an 
        explanation regarding the reasons why the goal was not 
        achieved.
            (3) The current inventory of unconveyed lands at 
        military installations closed or realigned under a base 
        closure law.
            (4) A description of the results of conveyances 
        under subsection (a) during the preceding fiscal year 
        and plans for such conveyances 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.
    (f) 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 of 
Defense.
    (g) Additional Terms and Conditions.--The Secretary of 
Defense 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.

SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                            MILITARY HOUSING

Sec.
2871.    Definitions.
     * * * * * * *
[2883.    Department of Defense Housing Funds.]
2883.    Department of Defense Housing Improvement Fund.

           *       *       *       *       *       *       *

Sec. 2871. Definitions

    In this subchapter:
            (1) * * *
            [(2) The term ``base closure law'' means the 
        following:
                    [(A) Section 2687 of this title.
                    [(B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (Public Law 100-526; 10 U.S.C. 2687 note).
                    [(C) 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).]

           *       *       *       *       *       *       *

            (6) The term ``Fund'' means the [Department of 
        Defense Family Housing Improvement Fund or the 
        Department of Defense Military Unaccompanied Housing 
        Improvement Fund] Department of Defense Housing 
        Improvement Fund established under section 2883(a) of 
        this title.

           *       *       *       *       *       *       *

Sec. 2875. Investments

    (a) * * *

           *       *       *       *       *       *       *

    (e) Congressional Notification Required.--Amounts in the 
[Department of Defense Family Housing Improvement Fund or the 
Department of Defense Military Unaccompanied Housing 
Improvement Fund] Department of Defense Housing Improvement 
Fund may be used to make a cash investment under this section 
in an eligible entity only after the end of the [30-day period] 
14-day period beginning on the date the Secretary of Defense 
submits written notice of, and justification for, the 
investment to the appropriate committees of Congress.

           *       *       *       *       *       *       *

Sec. 2880. Unit size and type

    (a) * * *
    (b) Inapplicability of Limitations on Space by Pay Grade.--
(1) * * *
    (2) The regulations prescribed under section 2856 of this 
title shall not apply to any military unaccompanied housing 
unit acquired or constructed under this subchapter [unless the 
unit is located on a military installation].

           *       *       *       *       *       *       *

[Sec. 2883. Department of Defense Housing Funds

    [(a) Establishment.--There are hereby established on the 
books of the Treasury the following accounts:
            [(1) The Department of Defense Family Housing 
        Improvement Fund.
            [(2) The Department of Defense Military 
        Unaccompanied Housing Improvement Fund.
    [(b) Commingling of Funds Prohibited.--(1) The Secretary of 
Defense shall administer each Fund separately.
    [(2) Amounts in the Department of Defense Family Housing 
Improvement Fund may be used only to carry out activities under 
this subchapter with respect to military family housing.
    [(3) Amounts in the Department of Defense Military 
Unaccompanied Housing Improvement Fund may be used only to 
carry out activities under this subchapter with respect to 
military unaccompanied housing.
    [(c) Credits to Funds.--(1) There shall be credited to the 
Department of Defense Family Housing Improvement Fund the 
following:
            [(A) Amounts authorized for and appropriated to 
        that Fund.
            [(B) Subject to subsection (f), any amounts that 
        the Secretary of Defense transfers, in such amounts as 
        provided in appropriation Acts, to that Fund from 
        amounts authorized and appropriated to the Department 
        of Defense for the acquisition or construction of 
        military family housing.
            [(C) Proceeds from the conveyance or lease of 
        property or facilities under section 2878 of this title 
        for the purpose of carrying out activities under this 
        subchapter with respect to military family housing.
            [(D) Income derived from any activities under this 
        subchapter with respect to military family housing, 
        including interest on loans made under section 2873 of 
        this title, income and gains realized from investments 
        under section 2875 of this title, and any return of 
        capital invested as part of such investments.
            [(E) Any amounts that the Secretary of the Navy 
        transfers to that Fund pursuant to section 2814(i)(3) 
        of this title, subject to the restrictions on the use 
        of the transferred amounts specified in that section.
    [(2) There shall be credited to the Department of Defense 
Military Unaccompanied Housing Improvement Fund the following:
            [(A) Amounts authorized for and appropriated to 
        that Fund.
            [(B) Subject to subsection (f), any amounts that 
        the Secretary of Defense transfers, in such amounts as 
        provided in appropriation Acts, to that Fund from 
        amounts authorized and appropriated to the Department 
        of Defense for the acquisition or construction of 
        military unaccompanied housing.
            [(C) Proceeds from the conveyance or lease of 
        property or facilities under section 2878 of this title 
        for the purpose of carrying out activities under this 
        subchapter with respect to military unaccompanied 
        housing.
            [(D) Income derived from any activities under this 
        subchapter with respect to military unaccompanied 
        housing, including interest on loans made under section 
        2873 of this title, income and gains realized from 
        investments under section 2875 of this title, and any 
        return of capital invested as part of such investments.
            [(E) Any amounts that the Secretary of the Navy 
        transfers to that Fund pursuant to section 2814(i)(3) 
        of this title, subject to the restrictions on the use 
        of the transferred amounts specified in that section.]

Sec. 2883. Department of Defense Housing Improvement Fund

    (a) Establishment.--There is hereby established on the 
books of the Treasury an account to be known as the Department 
of Defense Housing Improvement Fund (in this section referred 
to as the ``Fund'').
    (b) Credits to Fund.--There shall be credited to the Fund 
the following:
            (1) Amounts authorized for and appropriated to the 
        Fund.
            (2) Subject to subsection (e), any amounts that the 
        Secretary of Defense transfers, in such amounts as are 
        provided for in appropriation Acts, to the Fund from 
        amounts authorized and appropriated to the Department 
        of Defense for the acquisition or construction of 
        military family housing or military unaccompanied 
        housing.
            (3) Proceeds from the conveyance or lease of 
        property or facilities under section 2878 of this title 
        for the purpose of carrying out activities under this 
        subchapter with respect to military family housing or 
        military unaccompanied housing.
            (4) Income derived from any activities under this 
        subchapter with respect to military family housing or 
        military unaccompanied housing, income and gains 
        realized from investments under section 2875 of this 
        title, and any return of capital invested as part of 
        such investments.
            (5) Any amounts that the Secretary of the Navy 
        transfers to the Fund pursuant to section 2814(i)(3) of 
        this title, subject to the restrictions on the use of 
        the transferred amounts specified in that section.
            (6) Any amounts that the Secretary concerned 
        transfers to the Fund pursuant to section 2869 of this 
        title.
    [(d)] (c) Use of Amounts in [Funds] Fund.--(1) In such 
amounts as provided in appropriation Acts and except as 
provided in subsection [(e)] (d), the Secretary of Defense may 
use amounts in the [Department of Defense Family Housing 
Improvement] Fund to carry out activities under this subchapter 
with respect to military family housing, including activities 
required in connection with the planning, execution, and 
administration of contracts entered into under the authority of 
this subchapter. The Secretary may also use for expenses of 
activities required in connection with the planning, execution, 
and administration of such contracts funds that are otherwise 
available to the Department of Defense for such types of 
expenses.
    [(2) In such amounts as provided in appropriation Acts and 
except as provided in subsection (e), the Secretary of Defense 
may use amounts in the Department of Defense Military 
Unaccompanied Housing Improvement Fund to carry out activities 
under this subchapter with respect to military unaccompanied 
housing, including activities required in connection with the 
planning, execution, and administration of contracts entered 
into under the authority of this subchapter. The Secretary may 
also use for expenses of activities required in connection with 
the planning, execution, and administration of such contracts 
funds that are otherwise available to the Department of Defense 
for such types of expenses.]
    [(3)] (2) Amounts made available under this subsection 
shall remain available until expended. The Secretary of Defense 
may transfer amounts made available under this subsection to 
the Secretaries of the military departments to permit such 
Secretaries to carry out the activities for which such amounts 
may be used.
    [(e)] (d) Limitation on Obligations.--The Secretary may not 
incur an obligation under a contract or other agreement entered 
into under this subchapter in excess of the unobligated 
balance, at the time the contract is entered into, of the Fund 
required to be used to satisfy the obligation.
    [(f)] (e) Notification Required for Transfers.--A transfer 
of appropriated amounts to [a Fund under paragraph (1)(B) or 
(2)(B) of subsection (c)] the Fund under subsection (b)(2) may 
be made only after the end of the [30-day period] 14-day period 
beginning on the date the Secretary of Defense submits written 
notice of, and justification for, the transfer to the 
appropriate committees of Congress.
    [(g)] (f) Limitation on Amount of Budget Authority.--The 
total value in budget authority of all contracts and 
investments undertaken using the authorities provided in this 
subchapter shall not exceed--
            (1) [$850,000,000] $900,000,000 for the acquisition 
        or construction of military family housing; and

           *       *       *       *       *       *       *

Sec. 2884. Reports

    (a) * * *
    (b) Annual Reports.--The Secretary of Defense shall include 
each year in the materials that the Secretary submits to 
Congress in support of the budget submitted by the President 
pursuant to section 1105 of title 31 the following:
            (1) * * *
            (2) A methodology for evaluating the extent and 
        effectiveness of the use of the authorities under this 
        subchapter during such preceding fiscal year, and such 
        recommendations as the Secretary considers necessary 
        for improving the extent and effectiveness of the use 
        of such authorities in the future.
            [(3) A description of the objectives of the 
        Department of Defense for providing military family 
        housing and military unaccompanied housing for members 
        of the armed forces.]
            (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.

           *       *       *       *       *       *       *

CHAPTER 172--STRATEGIC ENVIRONMENTAL RESEARCH AND DEVELOPMENT PROGRAM

           *       *       *       *       *       *       *

Sec. 2902. Strategic Environmental Research and Development Program 
                    Council

    (a) * * *

           *       *       *       *       *       *       *

    (g)[(1)] Not later than February 1 of each year, the 
Council shall submit to the Secretary of Defense the annual 
report prepared pursuant to subsection (d)(3).
    [(2) Not later than March 15 of each year, the Secretary of 
Defense shall submit such annual report to Congress, along with 
such comments as the Secretary considers appropriate.]

           *       *       *       *       *       *       *

Subtitle B--Army

           *       *       *       *       *       *       *

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 303--DEPARTMENT OF THE ARMY

           *       *       *       *       *       *       *

Sec. 3013. Secretary of the Army

    (a) * * *

           *       *       *       *       *       *       *

    (c) Subject to the authority, direction, and control of the 
Secretary of Defense, the Secretary of the Army is also 
responsible to the Secretary of Defense for--
            (1) * * *

           *       *       *       *       *       *       *

            (4) carrying out the functions of the Department of 
        the Army so as to fulfill [(to the maximum extent 
        practicable)] the current and future operational 
        requirements of the unified and specified combatant 
        commands;

           *       *       *       *       *       *       *

CHAPTER 307--THE ARMY

           *       *       *       *       *       *       *

Sec. 3062. Policy; composition; organized peace establishment

    (a)  * * *

           *       *       *       *       *       *       *

    (e) The Army shall be so organized as to include not less 
than--
            (1) 10 active and eight National Guard combat 
        divisions or their equivalents;
            (2) one active armored cavalry regiment and one 
        light cavalry regiment or their equivalents;
            (3) 15 National Guard enhanced brigades or their 
        equivalents; and
            (4) such other active and reserve component land 
        combat, rotary-wing aviation, and other services as may 
        be required to support forces specified in paragraphs 
        (1) through (3).

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                     CHAPTER 345--RANK AND COMMAND

Sec.
3572.    Rank: commissioned officers serving under temporary 
          appointments.
     * * * * * * *
[3583.    Requirement of exemplary conduct.]

           *       *       *       *       *       *       *

[Sec. 3583. Requirement of exemplary conduct

    [All commanding officers and others in authority in the 
Army are required--
            [(1) to show in themselves a good example of 
        virtue, honor, patriotism, and subordination;
            [(2) to be vigilant in inspecting the conduct of 
        all persons who are placed under their command;
            [(3) to guard against and suppress all dissolute 
        and immoral practices, and to correct, according to the 
        laws and regulations of the Army, all persons who are 
        guilty of them; and
            [(4) to take all necessary and proper measures, 
        under the laws, regulations, and customs of the Army, 
        to promote and safeguard the morale, the physical well-
        being, and the general welfare of the officers and 
        enlisted persons under their command or charge.]

           *       *       *       *       *       *       *

PART III--TRAINING

           *       *       *       *       *       *       *

CHAPTER 403--UNITED STATES MILITARY ACADEMY

           *       *       *       *       *       *       *

Sec. 4342. Cadets: appointment; numbers, territorial distribution

    (a) The authorized strength of the Corps of Cadets of the 
Academy (determined for any year as of the day before the last 
day of the academic year) is 4,000 or such higher number as may 
be prescribed by the Secretary of the Army under subsection 
(j). Subject to that limitation, cadets are selected as 
follows:
            (1) * * *

           *       *       *       *       *       *       *

            (6) [Two] Three cadets from the Virgin Islands, 
        nominated by the Delegate in Congress from the Virgin 
        Islands.

           *       *       *       *       *       *       *

            (8) [Two] Three cadets from Guam, nominated by the 
        Delegate in Congress from Guam.
            (9) [One] Two cadet from American Samoa, nominated 
        by the Delegate in Congress from American Samoa.

           *       *       *       *       *       *       *

    (h) The [Secretary of the Army] Superintendent shall 
furnish to any Member of Congress, upon the written request of 
such Member, the name of the Congressman or other nominating 
authority responsible for the nomination of any named or 
identified person for appointment to the Academy.

           *       *       *       *       *       *       *

Sec. 4357. Acceptance of guarantees with gifts for major projects

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice of Proposed Acceptance.--The Secretary of the 
Army may not accept a qualified guarantee under this section 
for the completion of a major project until after [the 
expiration of 30 days following] the date upon which a report 
of the facts concerning the proposed guarantee is submitted to 
Congress.

           *       *       *       *       *       *       *

Subtitle C--Navy and Marine Corps

           *       *       *       *       *       *       *

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 503--DEPARTMENT OF THE NAVY

           *       *       *       *       *       *       *

Sec. 5013. Secretary of the Navy

    (a) * * *

           *       *       *       *       *       *       *

    (c) Subject to the authority, direction, and control of the 
Secretary of Defense, the Secretary of the Navy is also 
responsible to the Secretary of Defense for--
            (1) * * *

           *       *       *       *       *       *       *

            (4) carrying out the functions of the Department of 
        the Navy so as to fulfill [(to the maximum extent 
        practicable)] the current and future operational 
        requirements of the unified and specified combatant 
        commands;

           *       *       *       *       *       *       *

CHAPTER 505--OFFICE OF THE CHIEF OF NAVAL OPERATIONS

           *       *       *       *       *       *       *

Sec. 5033. Chief of Naval Operations

    (a)(1) There is a Chief of Naval Operations, appointed by 
the President, by and with the advice and consent of the 
Senate. The Chief of Naval Operations shall be appointed for a 
term of four years, [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] flag officers of the 
Navy. He serves at the pleasure of the President. In time of 
war or during a national emergency declared by Congress, he may 
be reappointed for a term of not more than four years.

           *       *       *       *       *       *       *

CHAPTER 506--HEADQUARTERS, MARINE CORPS

           *       *       *       *       *       *       *

Sec. 5043. Commandant of the Marine Corps

    (a)(1) There is a Commandant of the Marine Corps, appointed 
by the President, by and with the advice and consent of the 
Senate. The Commandant shall be appointed for a term of four 
years [from officers on the active-duty list of the Marine 
Corps not below the grade of colonel] general officers of the 
Marine Corps. He serves at the pleasure of the President. In 
time of war or during a national emergency declared by 
Congress, he may be reappointed for a term of not more than 
four years.

           *       *       *       *       *       *       *

CHAPTER 507--COMPOSITION OF THE DEPARTMENT OF THE NAVY

           *       *       *       *       *       *       *

Sec. 5062. United States Navy: composition; functions

    (a)  * * *

           *       *       *       *       *       *       *

    (d) The Navy, within the Department of the Navy, shall be 
so organized as to include--
            (1) not less than 305 vessels in active service;
            (2) not less than 12 aircraft carrier battle groups 
        or their equivalents, not less than 12 amphibious ready 
        groups or their equivalents, not less than 55 attack 
        submarines, not less than 108 active surface combatant 
        vessels, and not less than 8 reserve combatant vessels; 
        and
            (3) such other active and reserve naval combat, 
        naval aviation, and service forces as may be required 
        to support forces specified in paragraphs (1) and (2).

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                   CHAPTER 539--ORIGINAL APPOINTMENTS

Sec.
[5582.    Regular Navy: transfers, line and staff corps.]

           *       *       *       *       *       *       *

[Sec. 5582. Regular Navy: transfers, line and staff corps

    [(a) A regular officer of the Navy in a staff corps in a 
grade not above lieutenant commander may be appointed in the 
line of the Navy to the same grade.
    [(b) A regular officer in the line of the Navy in a grade 
not above lieutenant commander may be appointed to the same 
grade in a staff corps under regulations prescribed by the 
Secretary of Defense.]

           *       *       *       *       *       *       *

                    CHAPTER 551--OFFICERS IN COMMAND

Sec.
5942.    Aviation commands: eligibility.
     * * * * * * *
[5947.    Requirement of exemplary conduct.]

           *       *       *       *       *       *       *

[Sec. 5947. Requirement of exemplary conduct

    [All commanding officers and others in authority in the 
naval service are required to show in themselves a good example 
of virtue, honor, patriotism, and subordination; to be vigilant 
in inspecting the conduct of all persons who are placed under 
their command; to guard against and suppress all dissolute and 
immoral practices, and to correct, according to the laws and 
regulations of the Navy, all persons who are guilty of them; 
and to take all necessary and proper measures, under the laws, 
regulations, and customs of the naval service, to promote and 
safeguard the morale, the physical well-being, and the general 
welfare of the officers and enlisted persons under their 
command or charge.]

           *       *       *       *       *       *       *

CHAPTER 571--VOLUNTARY RETIREMENT

           *       *       *       *       *       *       *

Sec. 6321. Officers: 40 years

    (a) Each officer of the Regular Navy or the Regular Marine 
Corps holding a permanent appointment in the grade of warrant 
officer, W-1, or above who applies for retirement [after 
completing 40 or more years] and has at least 40 years of 
active service shall be retired by the Secretary of the Navy.

           *       *       *       *       *       *       *

Sec. 6322. Officers: 30 years

    (a) An officer of the Regular Navy or the Regular Marine 
Corps holding a permanent appointment in the grade of warrant 
officer, W-1, or above who applies for retirement [after 
completing 30 or more years] and has at least 30 years of 
active service may, in the discretion of the Secretary of the 
Navy, be retired.

           *       *       *       *       *       *       *

Sec. 6323. Officers: 20 years

    (a)(1) An officer of the Navy or the Marine Corps who 
applies for retirement [after completing more than 20 years] 
and has at least 20 years of active service, of which at least 
10 years was service as a commissioned officer, may, in the 
discretion of the President, be retired on the first day of any 
month designated by the President.

           *       *       *       *       *       *       *

Sec. 6326. Enlisted members: 30 years

    (a) Each enlisted member of the Regular Navy or the Regular 
Marine Corps who applies for retirement [after completing 30 or 
more years] and has at least 30 years of active service in the 
armed forces shall be retired by the President.

           *       *       *       *       *       *       *

Sec. 6330. Enlisted members: transfer to Fleet Reserve and Fleet Marine 
                    Corps Reserve; retainer pay

    (a) * * *
    (b) An enlisted member of the Regular Navy or the Naval 
Reserve [who has completed 20 or more years] who has at least 
20 years of active service in the armed forces may, at his 
request, be transferred to the Fleet Reserve. An enlisted 
member of the Regular Marine Corps or the Marine Corps Reserve 
[who has completed 20 or more years] who has at least 20 years 
of active service in the armed forces may, at his request, be 
transferred to the Fleet Marine Corps Reserve.

           *       *       *       *       *       *       *

Sec. 6331. Members of the Fleet Reserve and Fleet Marine Corps Reserve: 
                    transfer to the retired list; retired pay

    (a) When he has [completed 30 years] has at least 30 years 
of service, or when he is found not physically qualified in an 
examination under section 6485 of this title, a member of the 
Fleet Reserve or the Fleet Marine Corps Reserve shall be 
transferred--
            (1) * * *

           *       *       *       *       *       *       *

PART III--EDUCATION AND TRAINING

           *       *       *       *       *       *       *

CHAPTER 603--UNITED STATES NAVAL ACADEMY

           *       *       *       *       *       *       *

Sec. 6954. Midshipmen: number

    (a) The authorized strength of the Brigade of Midshipmen 
(determined for any year as of the day before the last day of 
the academic year) is 4,000 or such higher number as may be 
prescribed by the Secretary of the Navy under subsection (h). 
Subject to that limitation, midshipmen are selected as follows:
            (1) * * *

           *       *       *       *       *       *       *

            (6) [Two] Three from the Virgin Islands, nominated 
        by the Delegate in Congress from the Virgin Islands.

           *       *       *       *       *       *       *

            (8) [Two] Three from Guam, nominated by the 
        Delegate in Congress from Guam.
            (9) [One] Two from American Samoa nominated by the 
        Delegate in Congress from American Samoa.

           *       *       *       *       *       *       *

    (f) The [Secretary of the Navy] Superintendent of the Naval 
Academy shall furnish to any Member of Congress, upon the 
written request of such Member, the name of the Congressman or 
other nominating authority responsible for the nomination of 
any named or identified person for appointment to the Academy.

           *       *       *       *       *       *       *

Sec. 6975. Acceptance of guarantees with gifts for major projects

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice of Proposed Acceptance.--The Secretary of the 
Navy may not accept a qualified guarantee under this section 
for the completion of a major project until after [the 
expiration of 30 days following] the date upon which a report 
of the facts concerning the proposed guarantee is submitted to 
Congress.

           *       *       *       *       *       *       *

CHAPTER 605--UNITED STATES NAVAL POSTGRADUATE SCHOOL

           *       *       *       *       *       *       *

Sec. 7045. Officers of the other armed forces; enlisted members: 
                    admission

    (a)(1) * * *
    [(2) The Secretary may permit an enlisted member of the 
armed forces who is assigned to the Naval Postgraduate School 
or to a nearby command to receive instruction at the Naval 
Postgraduate School. Admission of enlisted members for 
instruction under this paragraph shall be on a space-available 
basis.]
    (2) The Secretary may permit enlisted members of the armed 
forces to receive instruction at the Naval Postgraduate School 
for the purpose of attending--
            (A) executive level seminars; or
            (B) the information security scholarship program 
        under chapter 112 of this title.
    (3) In addition to instruction authorized under paragraph 
(2), the Secretary may, on a space-available basis, permit an 
enlisted member of any of the armed forces to receive 
instruction at the Naval Postgraduate School if the member is 
assigned permanently to the staff of the Naval Postgraduate 
School or to a nearby command.
    (b) [The Department](1) Except as provided under paragraph 
(3), the Department of the Army, the Department of the Air 
Force, and the Department of Homeland Security shall bear the 
cost of the instruction received by [officers] members detailed 
for that instruction by the Secretary of the Army, the 
Secretary of the Air Force, and the Secretary of Homeland 
Security, respectively.
    (2) In the case of an enlisted member permitted under 
subsection (a)(3) to receive instruction at the Postgraduate 
School on a space-available basis, the Secretary of the Navy 
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)].
    (3) The Secretary of Defense may prescribe exceptions to 
the requirements of paragraph (1) with regard to attendance at 
the Postgraduate School pursuant to chapter 112 of this title.

           *       *       *       *       *       *       *

Sec. 7049. Defense industry civilians: admission to defense product 
                    development program

    (a) * * *

           *       *       *       *       *       *       *

    (c) Annual [Certification] Determination by the Secretary 
of the Navy.--Defense industry employees may receive 
instruction at the school during any academic year only if, 
before the start of that academic year, the Secretary of the 
Navy determines[, and certifies to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives,] that providing instruction to 
defense industry employees under this section during that 
year--
            (1) * * *

           *       *       *       *       *       *       *

CHAPTER 609--PROFESSIONAL MILITARY EDUCATION SCHOOLS

           *       *       *       *       *       *       *

Sec. 7102. Marine Corps University: masters degrees; board of advisors

    (a) * * *

           *       *       *       *       *       *       *

    (c) Command and Staff College of the Marine Corp 
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.
    [(c)] (d) Regulations.--The authority provided by 
subsections (a) and (b) shall be exercised under regulations 
prescribed by the Secretary of the Navy.
    [(d)] (e) Board of Advisors.--The Secretary of the Navy 
shall establish a board of advisors for the Marine Corps 
University. The Secretary shall ensure that the board is 
established so as to meet all requirements of the appropriate 
regional accrediting association.

           *       *       *       *       *       *       *

PART IV--GENERAL ADMINISTRATION

           *       *       *       *       *       *       *

                       CHAPTER 633--NAVAL VESSELS

Sec.
7291.    Classification.
     * * * * * * *
7306b.    Vessels stricken from Naval Vessel Register: transfer by gift 
          or otherwise for use as artificial reefs.

           *       *       *       *       *       *       *

Sec. 7296. Combatant surface vessels: notice before reduction in 
                    number; preservation of surge capability

    (a) Notice-and-Wait Before Reductions.--(1) * * *

           *       *       *       *       *       *       *

    [(3) Any notification under paragraph (1)(A)] (b) Content 
of Notification.--Any notification under subsection (a)(1)(A) 
shall include the following:
            [(A)] (1) The schedule for the proposed reduction.
            [(B)] (2) The number of vessels that are to 
        comprise the force of combatant surface vessels after 
        the reduction.
            [(C)] (3) A risk assessment for a force of 
        combatant surface vessels of the number specified under 
        [subparagraph (B)] paragraph (2) that is based on the 
        same assumptions as were applied in the QDR 2001 
        combatant surface force risk assessment.
    [(b) Preservation of Surge Capability.--Whenever the number 
of combatant surface vessels is less than 116, the Secretary of 
the Navy shall maintain on the Naval Vessel Register a 
sufficient number of combatant surface vessels to enable the 
Navy to regain a force of combatant surface vessels numbering 
not less than 116 within 120 days after the date of any 
decision by the President to increase the number of combatant 
surface vessels.]

           *       *       *       *       *       *       *

Sec. 7306a. Vessels stricken from Naval Vessel Register: use for 
                    experimental purposes

    (a) * * *
    (b) Stripping Vessel.--(1) Before using a vessel for an 
experimental purpose pursuant to subsection (a), the Secretary 
shall carry out such stripping of the vessel as is practicable. 
Material and equipment stripped from the vessel may be sold by 
a contractor or a designated sales agent on behalf of the Navy.
    (2) Amounts received as proceeds from the stripping of a 
vessel pursuant to this subsection shall be credited to 
appropriations available for the procurement of [scrapping 
services needed for such stripping. Amounts received which are 
in excess of amounts needed for procuring such services shall 
be deposited into the general fund of the Treasury.] 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) Use for Experimental Purposes Defined.--In this 
section, the term ``use for experimental purposes'' includes 
use of a vessel in a Navy sink exercise or for target purposes.

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 an artificial reef 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 transferee 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 transferee also may use the 
        artificial reef to enhance diving opportunities if that 
        use does not have an adverse effect on fishery 
        resources; and
            (2) the transferee shall obtain, and bear all of 
        the responsibility for complying with, all applicable 
        Federal, State, interstate, and local permits for 
        siting, constructing, monitoring, and managing a vessel 
        as an artificial reef.
    (c) Additional Terms.--The Secretary may require such 
additional terms in connection with a conveyance authorized by 
this section as the Secretary considers appropriate.
    (d) Cost Sharing on Transfers.--The Secretary of the Navy 
may share with the recipient any of the costs associated with 
transferring a vessel under this section.
    (e) Application for More Than One Vessel.--A State, 
Commonwealth, or possession of the United States, or any 
municipal corporation or political subdivision thereof, may 
apply for more than one vessel under this section.
    (f) Definition.--In this section, the term ``fishery 
resources'' has the meaning given such term in section 3(14) of 
the Magnuson-Stevens Fishery Conservation and Management Act of 
1976 (16 U.S.C. 1802(14)).

           *       *       *       *       *       *       *

CHAPTER 637--SALVAGE FACILITIES

           *       *       *       *       *       *       *

Sec. 7361. Authority to provide for necessary salvage facilities

    (a) * * *

           *       *       *       *       *       *       *

    (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 in 
connection with a marine salvage operation.

           *       *       *       *       *       *       *

Sec. 7363. Settlement of claims

    (a) Authority to Settle Claim.--The Secretary of the Navy 
may settle any claim by the United States for salvage services 
rendered by the Department of the Navy and may receive payment 
of any such claim.
    (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.

           *       *       *       *       *       *       *

Subtitle D--Air Force

           *       *       *       *       *       *       *

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 803--DEPARTMENT OF THE AIR FORCE

           *       *       *       *       *       *       *

Sec. 8013. Secretary of the Air Force

    (a) * * *

           *       *       *       *       *       *       *

    (c) Subject to the authority, direction, and control of the 
Secretary of Defense, the Secretary of the Air Force is also 
responsible to the Secretary of Defense for--
            (1) * * *

           *       *       *       *       *       *       *

            (4) carrying out the functions of the Department of 
        the Air Force so as to fulfill [(to the maximum extent 
        practicable)] the current and future operational 
        requirements of the unified and specified combatant 
        commands;

           *       *       *       *       *       *       *

CHAPTER 807--THE AIR FORCE

           *       *       *       *       *       *       *

Sec. 8062. Policy; composition; aircraft authorization

    (a)  * * *

           *       *       *       *       *       *       *

    (g) Notwithstanding subsection (e), the Air Force shall be 
so organized as to include not less than--
            (1) 46 active fighter squadrons or their 
        equivalents;
            (2) 38 National Guard and Reserve squadrons or 
        their equivalents;
            (3) 96 combat-coded bomber aircraft in active 
        service; and
            (4) such other squadrons, reserve groups, and 
        supporting auxiliary and reserve units as may be 
        required to support forces specified in paragraphs (1) 
        through (3).

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                     CHAPTER 845--RANK AND COMMAND

Sec.
8572.    Rank: commissioned officers serving under temporary 
          appointments.
     * * * * * * *
[8583.    Requirement of exemplary conduct.]

           *       *       *       *       *       *       *

[Sec. 8583. Requirement of exemplary conduct

    [All commanding officers and others in authority in the Air 
Force are required--
            [(1) to show in themselves a good example of 
        virtue, honor, patriotism, and subordination;
            [(2) to be vigilant in inspecting the conduct of 
        all persons who are placed under their command;
            [(3) to guard against and suppress all dissolute 
        and immoral practices, and to correct, according to the 
        laws and regulations of the Air Force, all persons who 
        are guilty of them; and
            [(4) to take all necessary and proper measures, 
        under the laws, regulations, and customs of the Air 
        Force, to promote and safeguard the morale, the 
        physical well-being, and the general welfare of the 
        officers and enlisted persons under their command or 
        charge.]

           *       *       *       *       *       *       *

PART III--TRAINING

           *       *       *       *       *       *       *

CHAPTER 903--UNITED STATES AIR FORCE ACADEMY

           *       *       *       *       *       *       *

Sec. 9342. Cadets: appointment; numbers, territorial distribution

    (a) The authorized strength of Air Force Cadets of the 
Academy (determined for any year as of the day before the last 
day of the academic year) is 4,000 or such higher number as may 
be prescribed by the Secretary of the Air Force under 
subsection (j). Subject to that limitation, Air Force Cadets 
are selected as follows:
            (1) * * *

           *       *       *       *       *       *       *

            (6) [Two] Three cadets from the Virgin Islands, 
        nominated by the Delegate in Congress from the Virgin 
        Islands.

           *       *       *       *       *       *       *

            (8) [Two] Three cadets from Guam, nominated by the 
        Delegate in Congress from Guam.
            (9) [One] Two cadet from American Samoa, nominated 
        by the Delegate in Congress from American Samoa.

           *       *       *       *       *       *       *

    (h) The [Secretary of the Air Force] Superintendent shall 
furnish to any Member of Congress, upon the written request of 
such Member, the name of the Congressman or other nominating 
authority responsible for the nomination of any named or 
identified person for appointment to the Academy.

           *       *       *       *       *       *       *

Sec. 9356. Acceptance of guarantees with gifts for major projects

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice of Proposed Acceptance.--The Secretary of the 
Air Force may not accept a qualified guarantee under this 
section for the completion of a major project until after [the 
expiration of 30 days following] the date upon which a report 
of the facts concerning the proposed guarantee is submitted to 
Congress.

           *       *       *       *       *       *       *

Subtitle E--Reserve Components

           *       *       *       *       *       *       *

PART I--ORGANIZATION AND ADMINISTRATION

           *       *       *       *       *       *       *

CHAPTER 1005--ELEMENTS OF RESERVE COMPONENTS

           *       *       *       *       *       *       *

Sec. 10145. Ready Reserve: placement in

    (a) * * *

           *       *       *       *       *       *       *

    (d) Under such regulations as the Secretary concerned may 
prescribe, any qualified member of a reserve component or any 
qualified retired enlisted member of a regular component may, 
upon his request, be placed in the Ready Reserve. However, a 
member of the Retired Reserve entitled to retired pay or a 
retired enlisted member of a regular component may not be 
placed in the Ready Reserve unless the Secretary concerned 
makes a special finding that the member's services in the Ready 
Reserve are indispensable. [The Secretary concerned may not 
delegate his authority under the preceding sentence.] 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 the 
        Assistant Secretary of the military department 
        concerned; 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. 10147. Ready Reserve: training requirements

    [(a) Except as specifically provided in regulations to be 
prescribed 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, each person who is 
enlisted, inducted, or appointed in an armed force, and who 
becomes a member of the Ready Reserve under any provision of 
law except section 513 or 10145(b) of this title, shall be 
required, while in the Ready Reserve, to--
            [(1) participate in at least 48 scheduled drills or 
        training periods during each year and serve on active 
        duty for training of not less than 14 days (exclusive 
        of traveltime) during each year; or
            [(2) serve on active duty for training not more 
        than 30 days during each year.]
    (a)(1) Except as provided pursuant to paragraph (2), each 
person who is enlisted, inducted, or appointed in an armed 
force and who becomes a member of the Ready Reserve under any 
provision of law other than section 513 or 10145(b) of this 
title shall be required, while in the Ready Reserve, to 
participate in a combination of drills, training periods, and 
active duty equivalent to 38 days (exclusive of travel) during 
each year.
    (2) The Secretary of Defense, and the Secretary of Homeland 
Security with respect to the Coast Guard when it is not 
operating as a service in the Navy, may prescribe regulations 
providing specific exceptions for the requirements of paragraph 
(1).

           *       *       *       *       *       *       *

CHAPTER 1007--ADMINISTRATION OF RESERVE COMPONENTS

           *       *       *       *       *       *       *

Sec. 10217. Non-dual status technicians

    (a) * * *

           *       *       *       *       *       *       *

    (c) Permanent Limitations on Number.--(1) Effective October 
1, 2007, the total number of non-dual status technicians 
employed by the Army Reserve [and Air Force Reserve may not 
exceed 175] may not exceed 595 and by the Air Force Reserve may 
not exceed 90. If at any time after the preceding sentence 
takes effect the number of non-dual status technicians employed 
by the Army Reserve and Air Force Reserve exceeds the number 
specified in the limitation in the preceding sentence, the 
Secretary of Defense shall require that the Secretary of the 
Army or the Secretary of the Air Force, or both, take immediate 
steps to reduce the number of such technicians in order to 
comply with such limitation.

           *       *       *       *       *       *       *

PART II--PERSONNEL GENERALLY

           *       *       *       *       *       *       *

CHAPTER 1209--ACTIVE DUTY

           *       *       *       *       *       *       *

Sec. 12302. Ready Reserve

    (a) * * *
    (b) To achieve fair treatment as between members in the 
Ready Reserve who are being considered for recall to duty 
without their consent, consideration shall be given to--
            (1) * * *

           *       *       *       *       *       *       *

The Secretary of Defense shall prescribe such policies and 
procedures as he considers necessary to carry out this 
subsection. [He shall report on those policies and procedures 
at least once a year to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives.]

           *       *       *       *       *       *       *

    [(d) Whenever one or more units of the Ready Reserve are 
ordered to active duty, the President shall, on the first day 
of the second fiscal year quarter immediately following the 
quarter in which the first unit or units are ordered to active 
duty and on the first day of each succeeding six-month period 
thereafter, so long as such unit is retained on active duty, 
submit a report to the Congress regarding the necessity for 
such unit or units being ordered to and retained on active 
duty. The President shall include in each such report a 
statement of the mission of each such unit ordered to active 
duty, an evaluation of such unit's performance of that mission, 
where each such unit is being deployed at the time of the 
report, and such other information regarding each unit as the 
President deems appropriate.]

           *       *       *       *       *       *       *

  PART III--PROMOTION AND RETENTION OF OFFICERS ON THE RESERVE ACTIVE-
STATUS LIST

           *       *       *       *       *       *       *

CHAPTER 1403--SELECTION BOARDS

           *       *       *       *       *       *       *

Sec. 14101. Convening of selection boards

    (a) * * *
    (b) [Continuation Boards] Selective Early Separation 
Boards.--Whenever the needs of the Army, Navy, Air Force, or 
Marine Corps require, the Secretary concerned may convene a 
selection board to recommend officers of that armed force--
            [(1) for continuation on the reserve active-status 
        list under section 14701 of this title;]
            [(2)] (1) for selective early removal from the 
        reserve active-status list under section 14704 of this 
        title; or
            [(3)] (2) for selective early retirement under 
        section 14705 of this title.
[A selection board convened under this subsection shall be 
known as a ``continuation board''.]

Sec. 14102. Selection boards: appointment and composition

    (a) Appointment.--Members of selection boards convened 
under section 14101 of this title shall be appointed by the 
Secretary of the military department concerned in accordance 
with this section. Promotion boards and special selection 
boards shall consist of five or more officers. [Continuation 
boards] Selection boards convened under section 14101(b) of 
this title shall consist of three or more officers. All of the 
officers of any such selection board shall be of the same armed 
force as the officers under consideration by the board.

           *       *       *       *       *       *       *

CHAPTER 1405--PROMOTIONS

           *       *       *       *       *       *       *

Sec. 14315. Position vacancy promotions: Army and Air Force officers

    (a) Officers Eligible for Consideration For Vacancy 
Promotions Below Brigadier General.--A reserve officer of the 
Army who is in the Army Reserve, or a reserve officer of the 
Air Force who is in the Air Force Reserve, who is on the 
reserve active-status list in the grade of first lieutenant, 
captain, major, or lieutenant colonel is eligible for 
consideration for promotion to the next higher grade under this 
section if each of the following applies:
            (1) The officer is occupying or, [as determined by 
        the Secretary concerned, is available] under 
        regulations prescribed by the Secretary concerned, has 
        been recommended to occupy a position in the same 
        competitive category as the officer and for which a 
        grade higher than the one held by that officer is 
        authorized.

           *       *       *       *       *       *       *

Sec. 14317. Officers in transition to and from the active-status list 
                    or active-duty list

    (a) * * *

           *       *       *       *       *       *       *

    (d) Officers Selected for Position Vacancies.--[If a 
reserve officer] Except as provided in subsection (e), if a 
reserve officer is ordered to active duty (other than active 
duty for training) or full-time National Guard duty (other than 
full-time National Guard duty for training only) after being 
recommended for promotion under section 14315 of this title to 
fill a position vacancy or examined for Federal recognition 
under title 32, and before being promoted to fill that vacancy, 
the officer shall not be promoted while serving such active 
duty or full-time National Guard duty unless the officer is 
ordered to active duty as a member of the unit in which the 
vacancy exists when that unit is ordered to active duty. If, 
under this subsection, the name of an officer is removed from a 
list of officers recommended for promotion, the officer shall 
be treated as if the officer had not been considered for 
promotion or examined for Federal recognition.
    [(e) Officers Ordered to Active Duty in Time of War or 
National Emergency.--Under regulations prescribed by the 
Secretary of the military department concerned, 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 by a mandatory promotion 
board convened under section 14101(a) or a special selection 
board convened under section 14502 of this title for not more 
than two years from the date the officer is ordered to active 
duty unless the President suspends the operation of this 
section under the provisions of section 123 or 10213 of this 
title.]
    (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 the 
provisions of section 123 or 10213 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.

           *       *       *       *       *       *       *

  CHAPTER 1409--CONTINUATION OF OFFICERS ON THE RESERVE ACTIVE-STATUS 
LIST AND SELECTIVE EARLY REMOVAL

           *       *       *       *       *       *       *

Sec. 14701. Selection of officers for continuation on the reserve 
                    active-status list

    (a) Consideration for Continuation.--(1) A reserve officer 
of the Army, Navy, Air Force, or Marine Corps who is required 
to be removed from the reserve active-status list under section 
14505, 14506, or 14507 of this title may, subject to the needs 
of the service and to section 14509 of this title, be 
considered for continuation on the reserve active-status list 
[by a selection board convened under section 14101(b) of this 
title] under regulations prescribed by the Secretary of 
Defense.

           *       *       *       *       *       *       *

    (6) An officer who is selected for continuation on the 
reserve active-status list [as a result of the convening of a 
selection board under section 14101(b) of this title] under 
regulations prescribed under paragraph (1) but who declines to 
continue on that list shall be separated in accordance with 
section 14513 or 14514 of this title, as the case may be.

           *       *       *       *       *       *       *

    [(b) Approval of Secretary Concerned.--Continuation of an 
officer on the reserve active-status list under this section 
pursuant to action of a continuation board convened under 
section 14101(b) of this title is subject to the approval of 
the Secretary of the military department concerned.
    [(c) Instructions To Continuation Boards.--A continuation 
board convened under section 14101(b) of this title to consider 
officers for continuation on the reserve active-status list 
under this section shall act in accordance with the 
instructions and directions provided to the board by the 
Secretary of the military department concerned.]
    [(d)] (b) Regulations.--The Secretary of Defense shall 
prescribe regulations for the administration of this section.

           *       *       *       *       *       *       *

Sec. 14705. Selective early retirement: reserve general and flag 
                    officers of the Navy and Marine Corps

    (a) * * *
    (b) Boards.--(1) If the Secretary of the Navy determines 
that consideration of officers for early retirement under this 
section is necessary, the Secretary shall convene a 
[continuation board] selection board under section 14101(b) of 
this title to recommend an appropriate number of officers for 
early retirement.

           *       *       *       *       *       *       *

  PART IV--TRAINING FOR RESERVE COMPONENTS AND EDUCATIONAL ASSISTANCE 
PROGRAMS

           *       *       *       *       *       *       *

   CHAPTER 1606--EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE SELECTED 
                                RESERVE

Sec.
16131.    Educational assistance program: establishment; amount.
     * * * * * * *
[16137.    Biennial report to Congress.]

           *       *       *       *       *       *       *

[Sec. 16137. Biennial report to Congress

    [The Secretary of Defense shall submit to Congress a report 
not later than March 1 of each odd-numbered year concerning the 
operation of the educational assistance program established by 
this chapter during the preceding two fiscal years. Each such 
report shall include the number of members of the Selected 
Reserve of the Ready Reserve of each armed force receiving, and 
the number entitled to receive, educational assistance under 
this chapter during those fiscal years. The Secretary may 
submit the report more frequently and adjust the period covered 
by the report accordingly.]

           *       *       *       *       *       *       *

CHAPTER 1609--EDUCATION LOAN REPAYMENT PROGRAMS

           *       *       *       *       *       *       *

Sec. 16301. Education loan repayment program: enlisted members of 
                    Selected Reserve with critical specialties

    (a) * * *
    (b) The portion or amount of a loan that may be repaid 
under subsection (a) is 15 percent or $500, whichever is 
greater, for each year of service, plus the amount of any 
interest that may accrue during the current year.
    (c) If a portion of a loan is repaid under this section for 
any year, interest on the remainder of the loan shall accrue 
and be paid in the same manner as is otherwise required. 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.
    (d) Nothing in this section shall be construed to authorize 
refunding any repayment of a loan.

           *       *       *       *       *       *       *

Sec. 16302. Education loan repayment program: health professions 
                    officers serving in Selected Reserve with wartime 
                    critical medical skill shortages

    (a) * * *

           *       *       *       *       *       *       *

    (d) The authority provided in this section shall apply only 
in the case of a person first appointed as a commissioned 
officer before January 1, [2004] 2005.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 232 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  2002

SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.

    (a)  * * *

           *       *       *       *       *       *       *

    (c) Requirement for Annual Program Goals.--(1)  * * *

           *       *       *       *       *       *       *

    (3) Each statement of goals submitted under paragraph (1) 
shall set forth cost, schedule, testing, and performance goals 
that pertain to [each functional area program element 
identified in subsection (a), and each program element 
identified in subsection (b),] each then-current program 
element for ballistic missile defense systems in effect 
pursuant to subsection (a) or (b) of section 223 of title 10, 
United States Code.
    (d) Annual Program Plan.--(1) With the submission of the 
statement of goals under subsection (c) for any year, the 
Secretary of Defense shall submit to the congressional defense 
committees a program of activities planned to be carried out 
for each missile defense program that enters engineering and 
manufacturing development (as defined in section 223(b)(2) of 
title 10, United States Code[, as added by subsection (b)]).

           *       *       *       *       *       *       *

                              ----------                              

SIKES ACT

           *       *       *       *       *       *       *

TITLE I--CONSERVATION PROGRAMS ON MILITARY INSTALLATIONS

           *       *       *       *       *       *       *

    Sec. 101. (a)  * * *
    (b) Required Elements of Plans.--Consistent with the use of 
military installations to ensure the preparedness of the Armed 
Forces, each integrated natural resources management plan 
prepared under subsection (a)--
            (1) shall, to the extent appropriate and 
        applicable, provide for--
                    (A)  * * *

           *       *       *       *       *       *       *

                    (D) during fiscal years 2004 through 2008, 
                in the case of a plan for a military 
                installation in Guam, management, control, and 
                eradication of invasive species that are not 
                native to the ecosystem of the military 
                installation and the introduction of which 
                cause or may cause harm to military readiness, 
                the environment, the economy, or human health 
                and safety;
                    [(D)] (E) integration of, and consistency 
                among, the various activities conducted under 
                the plan;
                    [(E)] (F) establishment of specific natural 
                resource management goals and objectives and 
                time frames for proposed action;
                    [(F)] (G) sustainable use by the public of 
                natural resources to the extent that the use is 
                not inconsistent with the needs of fish and 
                wildlife resources;
                    [(G)] (H) public access to the military 
                installation that is necessary or appropriate 
                for the use described in subparagraph (F), 
                subject to requirements necessary to ensure 
                safety and military security;
                    [(H)] (I) enforcement of applicable natural 
                resource laws (including regulations);
                    [(I)] (J) no net loss in the capability of 
                military installation lands to support the 
                military mission of the installation; and
                    [(J)] (K) such other activities as the 
                Secretary of the military department determines 
                appropriate;

           *       *       *       *       *       *       *

    Sec. 108. (a)  * * *
    (b) There are authorized to be appropriated to the 
Secretary of Defense not to exceed $1,500,000 for each of the 
[fiscal years 1998 through 2003] fiscal years 2004 through 
2008, to carry out this title, including the enhancement of 
fish and wildlife habitat and the development of public 
recreation and other facilities, and to carry out such 
functions and responsibilities as the Secretary may have under 
cooperative agreements entered into under section 103a. The 
Secretary of Defense shall, to the greatest extent practicable, 
enter into agreements to utilize the services, personnel, 
equipment, and facilities, with or without reimbursement, of 
the Secretary of the Interior in carrying out the provisions of 
this section.
    (c) There are authorized to be appropriated to the 
Secretary of the Interior not to exceed $3,000,000 for each of 
the [fiscal years 1998 through 2003] fiscal years 2004 through 
2008, to carry out such functions and responsibilities as the 
Secretary may have under integrated natural resources 
management plans to which such Secretary is a party under this 
section, including those for the enhancement of fish and 
wildlife habitat and the development of public recreation and 
other facilities.

           *       *       *       *       *       *       *

                              ----------                              

            SECTION 4 OF THE ENDANGERED SPECIES ACT OF 1973

       DETERMINATION OF ENDANGERED SPECIES AND THREATENED SPECIES

    Sec. 4. (a) General.--(1)  * * *

           *       *       *       *       *       *       *

    (3)(A) The Secretary, by regulation promulgated in 
accordance with subsection (b) and to the maximum extent 
[prudent and determinable] necessary--
            [(A)] (i) shall, concurrently with making a 
        determination under paragraph (1) that a species is an 
        endangered species or a threatened species, designate 
        any habitat of such species which is then considered to 
        be critical habitat; and
            [(B)] (ii) may, from time-to-time thereafter as 
        appropriate, revise such designation.
    (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 that such plan 
addresses special management considerations or protection (as 
those terms are used in section 3(5)(A)(i)).
    (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) Basis for Determinations.--(1)  * * *
    (2) The Secretary shall designate critical habitat, and 
make revisions thereto, under subsection (a)(3) on the basis of 
the best scientific data available and after taking into 
consideration the economic impact, the impact on national 
security, and any other relevant impact, of specifying any 
particular area as critical habitat. The Secretary may exclude 
any area from critical habitat if he determines that the 
benefits of such exclusion outweight the benefits of specifying 
such area as part of the critical habitat, unless he 
determines, based on the best scientific and commercial data 
available, that the failure to designate such area as critical 
habitat will result in the extinction of the species concerned.

           *       *       *       *       *       *       *

                              ----------                              

MARINE MAMMAL PROTECTION ACT OF 1972

           *       *       *       *       *       *       *

                              DEFINITIONS

    Sec. 3. For the purposes of this Act--
            (1)  * * *

           *       *       *       *       *       *       *

            [(18)(A) The term ``harassment'' means any act of 
        pursuit, torment, or annoyance which--
                    [(i) has the potential to injure a marine 
                mammal or marine mammal stock in the wild; or
                    [(ii) has the potential to disturb a marine 
                mammal or marine mammal stock in the wild by 
                causing disruption of behavioral patterns, 
                including, but not limited to, migration, 
                breathing, nursing, breeding, feeding, or 
                sheltering.]
            (18)(A) 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.

           *       *       *       *       *       *       *

TITLE I--CONSERVATION AND PROTECTION OF MARINE MAMMALS

           *       *       *       *       *       *       *

                       MORATORIUM AND EXCEPTIONS

    Sec. 101. (a) There shall be a moratorium on the taking and 
importation of marine mammals and marine mammal products, 
commencing on the effective date of this Act, during which time 
no permit may be issued for the taking of any marine mammal and 
no marine mammal or marine mammal product may be imported into 
the United States except in the following cases:
            (1)  * * *

           *       *       *       *       *       *       *

            (5)(A) Upon request therefor by citizens of the 
        United States who engage in a specified activity (other 
        than commercial fishing) [within a specified 
        geographical region], the Secretary shall allow, during 
        periods of not more than five consecutive years each, 
        the incidental, but not intentional, taking by citizens 
        while engaging in that activity [within that region of 
        small numbers] of marine mammals of a species or 
        population stock if the Secretary, after notice (in the 
        Federal Register and in newspapers of general 
        circulation, and through appropriate electronic media, 
        in the coastal areas that may be affected by such 
        activity) and opportunity for public comment--
                    (i)  * * *

           *       *       *       *       *       *       *

Notwithstanding the preceding sentence, the Secretary is not 
required to publish notice under this subparagraph with respect 
to incidental takings while engaged in a military readiness 
activity (as defined in section 315(f) of Public Law 107-314; 
16 U.S.C. 703 note) authorized by the Secretary of Defense, 
except in the Federal Register.
            (B) The Secretary shall withdraw, or suspend for a 
        time certain (either on an individual or class basis, 
        as appropriate) the permission to take marine mammals 
        under subparagraph (A) pursuant to a specified activity 
        [within a specified geographical region] if the 
        Secretary finds, after notice and opportunity for 
        public comment (as required under subparagraph (A) 
        unless subparagraph (C)(i) applies), that--
                    (i)  * * *
                    (ii) the taking allowed under subparagraph 
                (A) pursuant to one or more activities [within 
                one or more regions] is having, or may have, 
                more than a negligible impact on the species or 
                stock concerned.

           *       *       *       *       *       *       *

            (D)(i) Upon request therefor by citizens of the 
        United States who engage in a specified activity (other 
        than commercial fishing) [within a specific geographic 
        region], the Secretary shall authorize, for periods of 
        not more than 1 year, subject to such conditions as the 
        Secretary may specify, the incidental, but not 
        intentional, taking by harassment [of small numbers] of 
        marine mammals of a species or population stock by such 
        citizens while engaging in that activity [within that 
        region] if the Secretary finds that such harassment 
        during each period concerned--
                    (I)  * * *

           *       *       *       *       *       *       *

    (vi) Notwithstanding clause (iii), the Secretary is not 
required to publish notice under this subparagraph with respect 
to an authorization under clause (i) of incidental takings 
while engaged in a military readiness activity (as defined in 
section 315(f) of Public Law 107-314; 16 U.S.C. 703 note) 
authorized by the Secretary of Defense, except in the Federal 
Register.

           *       *       *       *       *       *       *

    (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.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 107 OF TITLE 32, UNITED STATES CODE

Sec. 107. Availability of appropriations

    (a) Under such regulations as the Secretary concerned may 
prescribe, appropriations for the National Guard are available 
for--
            (1)  * * *
            (2) the necessary expenses of [officers] members of 
        the Regular Army or the Regular Air Force on duty in 
        the National Guard Bureau or with the [Army General 
        Staff] Army Staff or the Air Staff, traveling to and 
        from annual conventions of the [National Guard 
        Association of the United States], Enlisted Association 
        of the National Guard of the United States, National 
        Guard Association of the United States, or the 
        Adjutants General Association;

           *       *       *       *       *       *       *

                              ----------                              

TITLE 37, UNITED STATES CODE

           *       *       *       *       *       *       *

CHAPTER 3--BASIC PAY

           *       *       *       *       *       *       *

Sec. 203. Rates

    (a)  * * *

           *       *       *       *       *       *       *

    (d)(1)  * * *
    (2) Service to be taken into account for purposes of 
computing basic pay under paragraph (1) is as follows:
            (A) Active service as a warrant officer or as a 
        warrant officer and an [enlisted member, in the case 
        of--
                    [(i) a commissioned officer on active duty 
                who is paid from funds appropriated for active-
                duty personnel; or
                    [(ii) a commissioned officer on active 
                Guard and Reserve duty.] enlisted member.
            [(B) In the case of a commissioned officer (not 
        referred to in subparagraph (A)(ii)) who is paid from 
        funds appropriated for reserve personnel, service as a 
        warrant officer, or as a warrant officer and 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.]
            (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. 209. Members of precommissioning programs

    (a)  * * *

           *       *       *       *       *       *       *

    (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). The allowance may be paid 
to the member for a maximum of 20 months.
    [(c)] (d) Pay While Attending Training or Practice 
Cruise.--Each cadet or midshipman in the Senior Reserve 
Officers' Training Corps, while he is attending training or 
practice cruises under chapter 103 of title 10 if the training 
or cruise is of at least four weeks duration and must be 
completed before the cadet or midshipman is commissioned, and 
each applicant for membership in the Senior Reserve Officers' 
Training Corps, while he is attending field training or 
practice cruises to satisfy the requirements of section 
2104(b)(6)(B) of title 10 for admission to advanced training, 
is entitled, while so attending, to pay at the rate prescribed 
for cadets and midshipmen at the United States Military, Naval, 
and Air Force Academies under section 203(c) of this title, 
except that the rate for a cadet or midshipman who is a member 
of the regular component of an armed force shall be the rate of 
basic pay applicable to the member under section 203 of this 
title.
    [(d)] (e) Members of Marine Corps Officer Candidate 
Program.--Except when serving on active duty, a member who is 
enrolled in a Marine Corps officer candidate program which 
requires a baccalaureate degree as a prerequisite to being 
commissioned as an officer and who is not enrolled in a program 
established under chapter 103 of title 10 or an academy 
established under chapter 403, 603, or 903 of title 10 may be 
paid a subsistence allowance at a monthly rate prescribed under 
subsection (a) for a member of the Senior Reserve Officers' 
Training Corps who is selected for advanced training under 
section 2104 of title 10.

           *       *       *       *       *       *       *

                 CHAPTER 5--SPECIAL AND INCENTIVE PAYS

Sec.

301.    Incentive pay: hazardous duty.
     * * * * * * *
301f.  Incentive pay: duty on ground in Antarctica or on Arctic icepack.
     * * * * * * *
305b.  Special pay: service as member of Weapons of Mass Destruction 
          Civil Support Team.
     * * * * * * *
[314.    Special pay or bonus: qualified enlisted members extending duty 
          at designated locations overseas.]
314.    Special pay or bonus: qualified members extending duty at 
          designated locations overseas.
     * * * * * * *
326.    Incentive bonus: lateral conversion bonus for service in 
          critically short military occupational speciality.
     * * * * * * *

Sec. 301. Incentive pay: hazardous duty

      (a)  * * *

           *       *       *       *       *       *       *

    (f)(1)  * * *

           *       *       *       *       *       *       *

    (3) Notwithstanding paragraphs (1) or (2), if a member 
described in paragraph (1) performs the duty described in 
clauses (3) or (4) of subsection (a) in any month, the member 
shall be entitled for that month to the full amount specified 
in the first sentence of subsection (c)(1), in the case of the 
duty described in clause (4) of subsection (a) or parachute 
jumping involving the use of a static line, or the full amount 
specified in the second sentence of subsection (c)(1), in the 
case of parachute jumping in military free fall operations.

           *       *       *       *       *       *       *

Sec. 301b. Special pay: aviation career officers extending period of 
                    active duty

      (a) Bonus Authorized.--An aviation officer described in 
subsection (b) who, during the period beginning on January 1, 
1989, and ending on [December 31, 2003] December 31, 2004, 
executes a written agreement to remain on active duty in 
aviation service for at least one year may, upon the acceptance 
of the agreement by the Secretary concerned, be paid a 
retention bonus as provided in this section.

           *       *       *       *       *       *       *

Sec. 301f. Incentive pay: duty on ground in Antarctica or on Arctic 
                    icepack

    (a) Availability of Incentive Pay.--A member of the 
uniformed services who performs duty at a location described in 
subsection (b) is entitled to special pay under this section at 
a rate of $5 for each day of that duty.
    (b) Covered Locations.--Subsection (a) applies with respect 
to duty performed on the ground in Antarctica or on the Arctic 
icepack.

           *       *       *       *       *       *       *

Sec. 302d. Special pay: accession bonus for registered nurses

      (a) Accession Bonus Authorized.--(1) A person who is a 
registered nurse and who, during the period beginning on 
November 29, 1989, and ending on [December 31, 2003] December 
31, 2004, executes a written agreement described in subsection 
(c) to accept a commission as an officer and remain on active 
duty for a period of not less than four years may, upon the 
acceptance of the agreement by the Secretary concerned, be paid 
an accession bonus in an amount determined by the Secretary 
concerned.

           *       *       *       *       *       *       *

Sec. 302e. Special pay: nurse anesthetists

      (a) Special Pay Authorized.--(1) An officer described in 
subsection (b)(1) who, during the period beginning on November 
29, 1989, and ending on [December 31, 2003] December 31, 2004, 
executes a written agreement to remain on active duty for a 
period of one year or more may, upon the acceptance of the 
agreement by the Secretary concerned, be paid incentive special 
pay in an amount not to exceed $50,000 for any 12-month period.

           *       *       *       *       *       *       *

Sec. 302g. Special pay: Selected Reserve health care professionals in 
                    critically short wartime specialties

    (a)  * * *

           *       *       *       *       *       *       *

    (f) Termination of Agreement Authority.--No agreement under 
this section may be entered into after [December 31, 2003] 
December 31, 2004.

Sec. 302h. Special pay: accession bonus for dental officers

    (a) Accession Bonus Authorized.--(1) A person who is a 
graduate of an accredited dental school and who, during the 
period beginning on September 23, 1996, and ending on [December 
31, 2003] December 31, 2004, executes a written agreement 
described in subsection (c) to accept a commission as an 
officer of the armed forces and remain on active duty for a 
period of not less than four years may, upon the acceptance of 
the agreement by the Secretary concerned, be paid an accession 
bonus in an amount determined by the Secretary concerned.

           *       *       *       *       *       *       *

Sec. 305b. Special pay: service as member of Weapons of Mass 
                    Destruction Civil Support Team

    (a) Availability of Special Pay.--The Secretary of a 
military department may pay special pay under this section to a 
member of the armed forces under the jurisdiction of that 
Secretary who is entitled to basic pay under section 204 and is 
assigned by orders to duty as a member of a Weapons of Mass 
Destruction Civil Support Team.
    (b) Monthly Rate.--Special pay payable under subsection (a) 
shall be paid at a rate equal to $150 a month.
    (c) Eligibility of Reserve Component Members When 
Performing Inactive Duty Training.--Under regulations 
prescribed by the Secretary concerned and to the extent 
provided for in appropriation Acts, when a member of a reserve 
component of the armed forces who is entitled to compensation 
under section 206 of this title performs duty under orders as a 
member of a Weapons of Mass Destruction Civil Support Team, the 
member may be paid an increase in compensation equal to \1/30\ 
of the monthly special pay specified in subsection (b) for each 
day on which the member performs such duty.
    (d) 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.

           *       *       *       *       *       *       *

Sec. 308. Special pay: reenlistment bonus

    (a)  * * *

           *       *       *       *       *       *       *

    (g) No bonus shall be paid under this section with respect 
to any reenlistment, or voluntary extension of an active-duty 
reenlistment, in the armed forces entered into after [December 
31, 2003] December 31, 2004.

Sec. 308b. Special pay: reenlistment bonus for members of the Selected 
                    Reserve

    (a)  * * *

           *       *       *       *       *       *       *

    (f) Termination of Authority.--No bonus may be paid under 
this section to any enlisted member who, after [December 31, 
2003] December 31, 2004, reenlists or voluntarily extends his 
enlistment in a reserve component.

Sec. 308c. Special pay: bonus for enlistment in the Selected Reserve

      (a)  * * *

           *       *       *       *       *       *       *

    (e) No bonus may be paid under this section to any enlisted 
member who, after [December 31, 2003] December 31, 2004, 
enlists in the Selected Reserve of the Ready Reserve of an 
armed force.

           *       *       *       *       *       *       *

Sec. 308d. Special pay: enlisted members of the Selected Reserve 
                    assigned to certain high priority units

      (a)  * * *

           *       *       *       *       *       *       *

      (c) Additional compensation may not be paid under this 
section for inactive duty performed after [December 31, 2003] 
December 31, 2004.

Sec. 308e. Special pay: bonus for reserve affiliation agreement

    (a)  * * *

           *       *       *       *       *       *       *

    (e) No bonus may be paid under this section to any person 
for a reserve obligation agreement entered into after [December 
31, 2003] December 31, 2004.

           *       *       *       *       *       *       *

Sec. 308h. Special pay: bonus for reenlistment, enlistment, or 
                    voluntary extension of enlistment in elements of 
                    the Ready Reserve other than the Selected Reserve

    (a)  * * *

           *       *       *       *       *       *       *

    (g) Termination of Authority.--A bonus may not be paid 
under this section to any person for a reenlistment, 
enlistment, or voluntary extension of an enlistment after 
[December 31, 2003] December 31, 2004.

Sec. 308i. Special pay: prior service enlistment bonus

    (a)  * * *

           *       *       *       *       *       *       *

    (f) Termination of Authority.--No bonus may be paid under 
this section to any person for an enlistment after [December 
31, 2003] December 31, 2004.

Sec. 309. Special pay: enlistment bonus

    (a)  * * *

           *       *       *       *       *       *       *

    (e) Duration of Authority.--No bonus shall be paid under 
this section with respect to any enlistment in the armed forces 
made after [December 31, 2003] December 31, 2004.

Sec. 310. Special pay: duty subject to hostile fire or imminent danger

      [(a) 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 he was entitled 
to basic pay and in which he--
            [(1) was subject to hostile fire or explosion of 
        hostile mines;
            [(2) was on duty in an area in which he was in 
        imminent danger of being exposed to hostile fire or 
        explosion of hostile mines and in which, during the 
        period he was on duty in the area, other members of the 
        uniformed services were subject to hostile fire or 
        explosion of hostile mines;
            [(3) was killed, injured, or wounded by hostile 
        fire, explosion of a hostile mine, or any other hostile 
        action; or
            [(4) was on duty in a foreign area in which he was 
        subject to the threat of physical harm or imminent 
        danger on the basis of civil insurrection, civil war, 
        terrorism, or wartime conditions.
A member covered by clause (3) who is hospitalized for the 
treatment of his injury or wound may be paid special pay under 
this section for not more than three additional months during 
which he is so hospitalized.]
    (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)] (c) Limitations and Administration.--(1) A member may 
not be paid more than one special pay under this section for 
any month. A member may be paid special pay under this section 
in addition to any other pay and allowances to which he may be 
entitled.

           *       *       *       *       *       *       *

    [(c)] (d) Determinations of Fact.--Any determination of 
fact that is made in administering this section is conclusive. 
Such a determination may not be reviewed by any other officer 
or agency of the United States unless there has been fraud or 
gross negligence. However, the determination may be changed on 
the basis of new evidence or for other good cause.

Sec. 312. Special pay: nuclear-qualified officers extending period of 
                    active duty

    (a)  * * *

           *       *       *       *       *       *       *

    (e) The provisions of this section shall be effective only 
in the case of officers who, on or before [December 31, 2003] 
December 31, 2004, execute the required written agreement to 
remain in active service.

           *       *       *       *       *       *       *

Sec. 312b. Special pay: nuclear career accession bonus

    (a)  * * *

           *       *       *       *       *       *       *

    (c) The provisions of this section shall be effective only 
in the case of officers who, on or before [December 31, 2003] 
December 31, 2004, have been accepted for training for duty in 
connection with the supervision, operation, and maintenance of 
naval nuclear propulsion plants.

Sec. 312c. Special pay: nuclear career annual incentive bonus

    (a)  * * *

           *       *       *       *       *       *       *

    (d) For the purposes of this section, a ``nuclear service 
year'' is any fiscal year beginning before [December 31, 2003] 
December 31, 2004.

[Sec. 314. Special pay or bonus: qualified enlisted members extending 
                    duty at designated locations overseas]

Sec. 314. Special pay or bonus: qualified members extending duty at 
                    designated locations overseas

    (a) Covered Members.--This section applies with respect to 
[an enlisted member] a member of an armed force who--
            (1)  * * *

           *       *       *       *       *       *       *

    (b) Special Pay or Bonus Authorized.--Upon the acceptance 
by the Secretary concerned of the agreement providing for an 
extension of the tour of duty of [an enlisted member] a member 
described in subsection (a), the member is entitled, at the 
election of the Secretary concerned, to either--
            (1)  * * *

           *       *       *       *       *       *       *

Sec. 323. Special pay: retention incentives for members qualified in a 
                    critical military skill

    (a) Retention Bonus Authorized.--An officer or enlisted 
member of the armed forces who is serving on active duty and is 
qualified in a designated critical military skill may be paid a 
retention bonus as provided in this section if--
            (1) in the case of an officer, the member executes 
        a written agreement to remain on active duty for at 
        least [1 year] one year; or
            (2) in the case of an enlisted member, the member 
        reenlists or voluntarily extends the member's 
        enlistment for a period of at least [1 year] one year.
    (b) Designation of Critical Skills.--[(1)] A designated 
critical military skill referred to in subsection (a) is a 
military skill designated as critical 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.
    [(2) The Secretary of Defense, and the Secretary of 
Homeland Security with respect to the Coast Guard when it is 
not operating as a service in the Navy, shall notify Congress, 
in advance, of each military skill to be designated by the 
Secretary as critical for purposes of this section. The notice 
shall be submitted at least 90 days before any bonus with 
regard to that critical skill is offered under subsection (a) 
and shall include a discussion of the necessity for the bonus, 
the amount and method of payment of the bonus, and the 
retention results that the bonus is expected to achieve.]

           *       *       *       *       *       *       *

    (i) Termination of Bonus Authority.--No bonus may be paid 
under this section with respect to any reenlistment, or 
voluntary extension of an enlistment, in the armed forces 
entered into after [December 31, 2003] December 31, 2004, and 
no agreement under this section may be entered into after that 
date.

Sec. 324. Special pay: accession bonus for new officers in critical 
                    skills

    (a) Accession Bonus Authorized.--Under regulations 
prescribed by the Secretary concerned, a person who executes a 
written agreement to accept a commission or an appointment as 
an officer of the armed forces and serve on active duty in a 
designated critical officer skill for the period specified in 
the agreement may, upon acceptance of the agreement by the 
Secretary concerned, be paid an accession bonus in an amount 
determined by the Secretary concerned.

           *       *       *       *       *       *       *

    (f) Repayment for Failure To Commence or Complete Obligated 
Service.--(1) An individual who, after having received all or 
part of the accession bonus under an agreement referred to in 
subsection (a), fails to accept a commission or an appointment 
as an officer or to commence or complete the total period of 
active duty service specified in the agreement shall repay to 
the United States the amount that bears the same ratio to the 
total amount of the bonus authorized for such person as the 
unserved part of the period of agreed active duty service bears 
to the total period of the agreed active duty service. However, 
the amount required to be repaid by the individual may not 
exceed the amount of the accession bonus that was paid to the 
individual.

           *       *       *       *       *       *       *

    (g) Termination of Authority.--No agreement under this 
section may be entered into after [December 31, 2003] December 
31, 2004.

           *       *       *       *       *       *       *

Sec. 326. Incentive bonus: lateral conversion bonus for service in 
                    critically short military occupational speciality

    (a) Incentive Bonus Authorized.--The Secretary concerned 
may pay a bonus under this section to a member of the armed 
forces who executes a written agreement to convert to, and 
serve for a period of not less than two years in, a critically 
short military occupational specialty.
    (b) Eligible Members.--A bonus may only be paid under this 
section only to a member who--
            (1) is entitled to basic pay; and
            (2) is serving in pay grade E-6 (with less than 10 
        years of service computed under section 205 of this 
        title) or pay grade E-5 or below (regardless of years 
        of service) at the time the agreement under subsection 
        (a) is executed.
    (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 payment when the member's conversion to the 
critically short military occupational specialty is approved by 
the personnel chief 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 the critically short military 
occupational specialty for the period specified in the 
agreement 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 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) Definition.--In this section, the term ``critically 
short military occupational specialty'' means a military 
occupational specialty, military rating, or other military 
speciality designated by the Secretary concerned as undermanned 
for purposes of this section.
    (h) Termination of Authority.--No agreement under this 
section may be entered into after December 31, 2004.

                         CHAPTER 7--ALLOWANCES

Sec.

401.    Definitions.
     * * * * * * *
[436.    Per diem allowance for lengthy or numerous deployments.]
436.    Monthly high-deployment allowance for lengthy or numerous 
          deployments.

           *       *       *       *       *       *       *

Sec. 402. Basic allowance for subsistence

    (a)  * * *
    (b) Rates of Allowance Based on Food Costs.--[(1) Through 
December 31, 2001, the monthly rate of basic allowance for 
subsistence to be in effect for an enlisted member for a year 
(beginning on January 1 of that year) shall be the amount that 
is halfway between the following amounts, which are determined 
by the Secretary of Agriculture as of October 1 of the 
preceding year:
            [(A) The amount equal to the monthly cost of a 
        moderate-cost food plan for a male in the United States 
        who is between 20 and 50 years of age.
            [(B) The amount equal to the monthly cost of a 
        liberal food plan for a male in the United States who 
        is between 20 and 50 years of age.]
    (2) [On and after January 1, 2002, the] The monthly rate of 
basic allowance for subsistence to be in effect for an enlisted 
member for a year (beginning on January 1 of that year) shall 
be equal to the sum of--
            (A)  * * *

           *       *       *       *       *       *       *

    (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 assigned to duty 
in a high-cost duty location or under other unique and unusual 
circumstances, but is not entitled to the meals portion of the 
per diem in connection with that duty, 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.
    [(f)] (g) Policies on Use of Dining and Messing 
Facilities.--The Secretary of Defense, in consultation with the 
Secretaries concerned, shall prescribe policies regarding use 
of dining and field messing facilities of the uniformed 
services.
    [(g)] (h) Regulations.--(1) The Secretary of Defense shall 
prescribe regulations for the administration of this section. 
Before prescribing the regulations, the Secretary shall consult 
with each Secretary concerned.

           *       *       *       *       *       *       *

Sec. 406. Travel and transportation allowances: dependents; baggage and 
                    household effects

    (a)  * * *
    (b)(1)(A)  * * *
    (B) Subject to uniform regulations prescribed by the 
Secretaries concerned, in the case of a permanent change of 
station in which the Secretary concerned has authorized 
transportation of a motor vehicle under section 2634 of title 
10 (except when such transportation is authorized from the old 
duty station to the new duty station), the member is entitled 
to a monetary allowance for transportation of that motor 
vehicle--
            (i)  * * *

           *       *       *       *       *       *       *

Such monetary allowance shall be established at a rate per mile 
that does not exceed the rate established under section 
404(d)(1) of this title. If clause (i)(I) applies to the 
transportation by the member of a motor vehicle from the old 
duty station, the monetary allowance under this subparagraph 
shall also cover return travel to the old duty station by the 
member or other person transporting the vehicle. In the case of 
transportation described in clause (ii), the monetary allowance 
shall also cover travel from the new duty station to the port 
of debarkation to pick up the vehicle. 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 proof of shipment, a monetary allowance in 
lieu of transportation, as established under section 404(d)(1) 
of this title.

           *       *       *       *       *       *       *

    (h)(1)  * * *

           *       *       *       *       *       *       *

    (4)(A) The Secretary concerned shall provide to the 
dependents of a member the travel and transportation allowances 
described in paragraphs (1) and (3) in a case in which--
            (i) a commander has substantiated that the member 
        has committed dependent abuse, as defined in section 
        1059(c) of title 10;
            (ii) a safety plan and counseling have been 
        provided;
            (iii) there has been a determination that the 
        victim's safety is at stake and that relocation is the 
        best course of action; and
            (iv) the abused dependent, or parent of the abused 
        dependent if the abused dependent is a child, requests 
        relocation,
    (B) In the case of allowances paid under subparagraph (A), 
any monetary allowances shall accrue to the dependents in lieu 
of the member and may be paid to the dependents.
    (C) Shipment of the dependent's baggage and household 
effects, and of any motor vehicle, may not be provided until 
there is a property division established by written agreement 
with the member or by order of a court of competent 
jurisdiction.

           *       *       *       *       *       *       *

Sec. 430. Travel and transportation: dependent children of members 
                    stationed overseas

    (a)  * * *
    (b) Allowance Authorized.--(1)  * * *
    (2) At the option of the member, in lieu of the 
transportation of baggage of a dependent child under paragraph 
(1) from the dependent's school in the continental United 
States, the Secretary concerned may pay or reimburse the member 
for costs incurred to store the baggage at or in the vicinity 
of the school during the dependent's annual trip between the 
school and the member's duty station or during a different 
period in the same fiscal year selected by the member. The 
amount of the payment or reimbursement may not exceed the cost 
that the Government would incur to transport the baggage.

           *       *       *       *       *       *       *

[Sec. 436. Per diem allowance for lengthy or numerous deployments]

Sec. 436. Monthly high-deployment allowance for lengthy or numerous 
                    deployments

    [(a) Per Diem Required.--The Secretary of the military 
department concerned shall pay a high-deployment per diem 
allowance to a member of the armed forces under the Secretary's 
jurisdiction for each day on which the member (1) is deployed, 
and (2) has, as of that day, been deployed 401 or more days out 
of the preceding 730 days. The Secretary shall pay the 
allowance from appropriations available for operation and 
maintenance for the armed force in which the member serves.]
    (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);
                    (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); or
                    (C) in the case of a member of a reserve 
                component, is on active duty 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.

           *       *       *       *       *       *       *

    [(c) Amount of Per Diem.--The amount of the high-deployment 
per diem payable to a member under this section is $100.]
    (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.
    (d) Payment of Claims.--A claim of a member for payment of 
the high-deployment [per diem] allowance that is not fully 
substantiated by the recordkeeping system applicable to the 
member under section 991(c) of title 10 shall be paid if the 
member furnishes the Secretary concerned with other evidence 
determined by the Secretary as being sufficient to substantiate 
the claim.
    (e) Relationship to Other Allowances.--A high-deployment 
[per diem] allowance payable to a member under this section is 
in addition to any other pay or allowance payable to the member 
under any other provision of law.
    (f) National Security Waiver.--No [per diem] allowance may 
be paid under this section to a member for any [day on] month 
during which the applicability of section 991 of title 10 to 
the member is suspended under subsection (d) of that section.
    (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. 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.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 521 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1996

SEC. 521. AWARD OF PURPLE HEART TO PERSONS WOUNDED WHILE HELD AS 
                    PRISONERS OF WAR BEFORE APRIL 25, 1962.

    (a) * * *
    [(b) Standards for Award.--An award of the Purple Heart 
under subsection (a) shall be made in accordance with the 
standards in effect on the date of the enactment of this Act 
for the award of the Purple Heart to persons wounded on or 
after April 25, 1962.]
    (b) Standards and Procedures for Award.--In determining 
whether a former prisoner of war is eligible for the award of 
the Purple Heart under subsection (a), the Secretary concerned 
shall apply the following procedures:
            (1) The standard to be used by the Secretary 
        concerned for awarding the Purple Heart under this 
        section shall be to award the Purple Heart in any case 
        in which a prisoner of war (A) was wounded while in 
        captivity, or (B) while in captivity was subjected to 
        systematic and prolonged deprivation of food, medical 
        treatment, and other forms of deprivation or 
        mistreatment likely to have prolonged aftereffects on 
        the individual concerned.
            (2) When a former prisoner of war applies for the 
        Purple Heart under subsection (a), the Secretary 
        concerned may request the former prisoner of war to 
        provide any documentation that the Secretary would 
        otherwise require, but failure of the former prisoner 
        of war to provide such documentation shall not by 
        itself be a disqualification for award of the Purple 
        Heart.
            (3) The Secretary concerned shall inform the former 
        prisoner of war that historical information as to the 
        prison camp or other circumstances in which the former 
        prisoner of war was held captive and other information 
        as to the circumstances of the former prisoner of war's 
        captivity may be considered by the Secretary in 
        evaluating the application for the award of the Purple 
        Heart and that the former prisoner of war may submit 
        such information.
            (4) The Secretary concerned shall provide 
        assistance to the applicant for the Purple Heart in 
        obtaining information referred to in paragraph (3).
            (5) The Secretary shall review a completed 
        application under this section based upon the totality 
        of the evidence presented and shall take 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.
            (6) In considering an application under this 
        section, the Secretary shall take into account the 
        length of time that the applicant was held in 
        captivity, which while not in itself establishing 
        entitlement of the applicant to award of the Purple 
        Heart, can and should be a factor in determining 
        whether a former prisoner of war was likely to have 
        been wounded, starved, or denied medical treatment to 
        the extent likely to have prolonged aftereffects on the 
        individual concerned.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *

PART III--EMPLOYEES

           *       *       *       *       *       *       *

                        Subpart I--Miscellaneous

       Personnel flexibilities relating to the Internal Revenue Serv9501
     * * * * * * *
99. Department of Defense National Security Personnel System......  9901
     * * * * * * *

Subpart D--Pay and Allowances

           *       *       *       *       *       *       *

CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *

SUBCHAPTER I--PAY COMPARABILITY SYSTEM 

           *       *       *       *       *       *       *

Sec. 5304. Locality-based comparability payments

    (a)  * * *

           *       *       *       *       *       *       *

    (g)(1)  * * *
    (2) The applicable maximum under this subsection shall be 
level III of the Executive Schedule for--
            (A) positions under [subparagraphs (A)-(E)] 
        subparagraphs (A)-(D) of subsection (h)(1); and
            (B) any positions under [subsection (h)(1)(F)] 
        subsection (h)(1)(D) which the President may determine.
    (h)(1) For the purpose of this subsection, the term 
``position'' means--
            (A)  * * *
            [(B) a Senior Executive Service position under 
        section 3132;
            [(C) a position in the Federal Bureau of 
        Investigation and Drug Enforcement Administration 
        Senior Executive Service under section 3151;]
            [(D)] (B) a position to which section 5372 applies 
        (relating to administrative law judges appointed under 
        section 3105);
            [(E)] (C) a position to which section 5372a applies 
        (relating to contract appeals board members); and
            [(F)] (D) a position within an Executive agency not 
        covered under the General Schedule or any of the 
        preceding subparagraphs, the rate of basic pay for 
        which is (or, but for this section, would be) no more 
        than the rate payable for level IV of the Executive 
        Schedule;
but does not include--
            (i)  * * *
            (ii) a position as to which a rate of pay is 
        authorized under section 5377 (relating to critical 
        positions); [or]
            (iii) a position to which subchapter II applies 
        (relating to the Executive Schedule)[.];
            (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).
    (2)(A)  * * *
    (B) A request by an agency head or exercise of authority by 
the President under subparagraph (A) shall cover--
            (i) with respect to the positions under 
        [subparagraphs (A) through (E)] subparagraphs (A) 
        through (C) of paragraph (1), all positions described 
        in the subparagraph or subparagraphs involved 
        (excluding any under [clause (i) or (ii)] clause (i), 
        (ii), (iii), (iv), (v), or (vii) of such paragraph); 
        and
            (ii) with respect to the positions under [paragraph 
        (1)(F)] paragraph (1)(D), such positions as may be 
        considered appropriate (excluding any under [clause (i) 
        or (ii)] clause (i), (ii), (iii), (iv), (v), or (vi) of 
        paragraph (1)).

           *       *       *       *       *       *       *

SUBCHAPTER IV--PREVAILING RATE SYSTEMS

           *       *       *       *       *       *       *

Sec. 5343. Prevailing rate determinations; wage schedules; night 
                    differentials

    (a)  * * *

           *       *       *       *       *       *       *

    (c) The Office of Personnel Management, by regulation, 
shall prescribe practices and procedures for conducting wage 
surveys, analyzing wage survey data, developing and 
establishing wage schedules and rates, and administering the 
prevailing rate system. The regulations shall provide--
            (1)  * * *

           *       *       *       *       *       *       *

            (4) for proper differentials, as determined by the 
        Office, for duty involving unusually severe working 
        conditions or unusually severe hazards, 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;

           *       *       *       *       *       *       *

SUBCHAPTER VII--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *

Sec. 5379. Student loan repayments

    (a)  * * *
    (b)(1)  * * *
    (2) Payments under this section shall be made subject to 
such terms, limitations, or conditions as may be mutually 
agreed to by the agency and employee concerned, except that the 
amount paid by an agency under this section may not exceed--
            (A) [$6,000] $10,000 for any employee in any 
        calendar year; or

           *       *       *       *       *       *       *

SUBCHAPTER VIII--PAY FOR THE SENIOR EXECUTIVE SERVICE

           *       *       *       *       *       *       *

[Sec. 5382. Establishment and adjustment of rates of pay for the Senior 
                    Executive Service

    [(a) There shall be 5 or more rates of basic pay for the 
Senior Executive Service, and each senior executive shall be 
paid at one of the rates. The rates of basic pay shall be 
initially established and thereafter adjusted by the President 
subject to subsection (b) of this section.
    [(b) In setting rates of basic pay, the lowest rate for the 
Senior Executive Service shall not be less than the minimum 
rate of basic pay payable under section 5376 and the highest 
rate shall not exceed the rate for level IV of the Executive 
Schedule. The payment of the rates shall not be subject to the 
pay limitation of section 5306(e) or 5373 of this title.
    [(c) Subject to subsection (b) of this section, effective 
at the beginning of the first applicable pay period commencing 
on or after the first day of the month in which an adjustment 
takes effect under section 5303 of this title in the rates of 
pay under the General Schedule, each rate of basic pay for the 
Senior Executive Service shall be adjusted by an amount 
determined by the President to be appropriate.
    [(d) The rates of basic pay that are established and 
adjusted under this section shall be printed in the Federal 
Register and shall supersede any prior rates of basic pay for 
the Senior Executive Service.]

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).

Sec. 5383. Setting individual senior executive pay

    (a) Each appointing authority shall determine, in 
accordance with criteria established by the Office of Personnel 
Management, [which of the rates established under section 5382 
of this title] which of the rates within a range established 
under section 5382 shall be paid to each senior executive under 
such appointing authority.

           *       *       *       *       *       *       *

    (c) Except [for any pay adjustment under section 5382 of 
this title] as provided in regulations prescribed by the Office 
under section 5385, the rate of basic pay for any senior 
executive may not be adjusted more than once during any 12-
month period.

           *       *       *       *       *       *       *

CHAPTER 55--PAY ADMINISTRATION

           *       *       *       *       *       *       *

SUBCHAPTER I--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Sec. 5504. Biweekly pay periods; computation of pay

    (a) The pay period for an employee covers two 
administrative workweeks. [For the purpose of this subsection, 
``employee'' means--
            [(1) an employee in or under an Executive agency;
            [(2) 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
            [(3) an individual employed by the government of 
        the District of Columbia;
but 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 
        section 5541(2)(xvi) of this title.]
    (b) When, in the case of an employee, it is necessary for 
computation of pay under this subsection to convert an annual 
rate of basic pay to a basic hourly, daily, weekly, or biweekly 
rate, the following rules govern:
            (1)  * * *

           *       *       *       *       *       *       *

Rates are computed to the nearest cent, counting one-half and 
over as a whole cent. [For the purpose of this subsection, 
``employee'' means--
            [(A) an employee in or under an Executive agency;
            [(B) an employee in or under the judicial branch;
            [(C) 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
            [(D) an individual employed by the government of 
        the District of Columbia;
but does not include 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 section 
5541(2)(xvi) of this title.]
    (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).
    [(c)] (d)(1) The Office of Personnel Management may 
prescribe regulations, subject to the approval of the 
President, necessary for the administration of this section 
insofar as this section affects employees in or under an 
Executive agency.
    (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.

           *       *       *       *       *       *       *

SUBCHAPTER V--PREMIUM PAY

           *       *       *       *       *       *       *

Sec. 5542. Overtime rates; computation

    (a) For full-time, part-time and intermittent tours of 
duty, hours of work officially ordered or approved in excess of 
40 hours in an administrative workweek, or (with the exception 
of an employee engaged in professional or technical engineering 
or scientific activities for whom the first 40 hours of duty in 
an administrative workweek is the basic workweek and an 
employee whose basic pay exceeds the minimum rate for GS-10 
(including any applicable locality-based comparability payment 
under section 5304 or similar provision of law and any 
applicable special rate of pay under section 5305 or similar 
provision of law) for whom the first 40 hours of duty in an 
administrative workweek is the basic workweek) in excess of 8 
hours in a day, performed by an employee are overtime work and 
shall be paid for, except as otherwise provided by this 
subchapter, at the following rates:
            (1)  * * *
            (2) For an employee whose basic pay is at a rate 
        which exceeds the minimum rate of basic pay for GS-10 
        (including any applicable locality-based comparability 
        payment under section 5304 or similar provision of law 
        and any applicable special rate of pay under section 
        5305 or similar provision of law), the overtime hourly 
        rate of pay is an amount equal to the greater of one 
        and one-half times the hourly rate of the minimum rate 
        of basic pay for GS-10 (including any applicable 
        locality-based comparability payment under section 5304 
        or similar provision of law and any applicable special 
        rate of pay under section 5305 or similar provision of 
        law) or the hourly rate of basic pay of the employee, 
        and all that amount is premium pay.

           *       *       *       *       *       *       *

Sec. 5545. Night, standby, irregular, and hazardous duty differential

    (a)  * * *

           *       *       *       *       *       *       *

    (d) The Office shall establish a schedule or schedules of 
pay differentials for duty involving unusual physical hardship 
or hazard, 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. Under such 
regulations as the Office may prescribe, and for such minimum 
periods as it determines appropriate, an employee to whom 
chapter 51 and subchapter III of chapter 53 of this title 
applies is entitled to be paid the appropriate differential for 
any period in which he is subjected to physical hardship or 
hazard not usually involved in carrying out the duties of his 
position. However, the pay differential--
            (1)  * * *

           *       *       *       *       *       *       *

Subpart E--Attendance and Leave

           *       *       *       *       *       *       *

CHAPTER 63--LEAVE

           *       *       *       *       *       *       *

SUBCHAPTER II--OTHER PAID LEAVE

           *       *       *       *       *       *       *

Sec. 6323. Military leave; Reserves and National Guardsmen

    (a)  * * *
    (b) Except as provided by section 5519 of this title, an 
employee as defined by section 2105 of this title or an 
individual employed by the government of the District of 
Columbia, permanent or temporary indefinite, who--
            (1)  * * *
            (2)(A) performs, for the purpose of providing 
        military aid to enforce the law or for the purpose of 
        providing assistance to civil authorities in the 
        protection or saving of life or property or the 
        prevention of injury--
                    [(A)] (i) Federal service under section 
                331, 332, 333, or 12406 of title 10, or other 
                provision of law, as applicable, or
                    [(B)] (ii) full-time military service for 
                his State, the District of Columbia, the 
                Commonwealth of Puerto Rico, or a territory of 
                the United States; or
            (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;

           *       *       *       *       *       *       *

Subpart F--Labor-Management and Employee Relations

           *       *       *       *       *       *       *

             CHAPTER 73--SUITABILITY, SECURITY, AND CONDUCT

                   SUBCHAPTER I--REGULATION OF CONDUCT

Sec.
7301.    Presidential regulations.
7302.    Post-employment notification.
     * * * * * * *

SUBCHAPTER I--REGULATION OF CONDUCT

           *       *       *       *       *       *       *

Sec. 7302. Post-employment notification

    (a) Not later than the effective date of the amendments 
made by sections 3 and 4 of the Federal Employees Pay for 
Performance Act of 2003, or 180 days after the date of 
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.

           *       *       *       *       *       *       *

Subpart G--Insurance and Annuities

           *       *       *       *       *       *       *

CHAPTER 89--HEALTH INSURANCE

           *       *       *       *       *       *       *

Sec. 8905a. Continued coverage

    (a)  * * *

           *       *       *       *       *       *       *

    (d)(1)  * * *

           *       *       *       *       *       *       *

    (5)(A) If the basis for continued coverage under this 
section is an involuntary separation from a position in or 
under the Department of Veterans Affairs due to a reduction in 
force or a title 38 staffing readjustment, or a voluntary or 
involuntary separation from a Department of Energy position at 
a Department of Energy facility at which the Secretary is 
carrying out a closure project selected under [section 3143 of 
the National Defense Authorization Act for Fiscal Year 1997 (42 
U.S.C. 7274n)] section 4421 of the Atomic Energy Defense Act--
            (i)  * * *

           *       *       *       *       *       *       *

CHAPTER 90--LONG-TERM CARE INSURANCE

           *       *       *       *       *       *       *

Sec. 9001. Definitions

    For purposes of this chapter:
            (1) Employee.--The term ``employee'' means--
                    (A)  * * *

           *       *       *       *       *       *       *

                    (D) an employee of a nonappropriated fund 
                instrumentality of the Department of Defense 
                described in section [2105(c),
        but does not include an individual employed by the 
        government of the District of Columbia (other than an 
        employee of the District of Columbia Courts).] 2105(c).
            (2) Annuitant.--The term ``annuitant'' means--
                    (A) any individual who would satisfy the 
                requirements of paragraph (3) of section 8901 
                if, for purposes of such paragraph, the term 
                ``employee'' were considered to have the 
                meaning given to it under paragraph (1) of this 
                subsection; [and]
                    (B) any individual who--
                            (i)  * * *
                            (iii) would not (but for this 
                        subparagraph) otherwise satisfy the 
                        requirements of this paragraph[.]; and
                    (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.

           *       *       *       *       *       *       *

            (4) Retired member of the uniformed services.--The 
        term ``retired member of the uniformed services'' means 
        a member or former member of the uniformed services 
        entitled to retired or retainer pay, [including a 
        member or former member retired under chapter 1223 of 
        title 10 who has] 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 attained the age of 60 and who satisfies such 
        eligibility requirements as the Office of Personnel 
        Management prescribes under section 9008.

           *       *       *       *       *       *       *

Subpart I--Miscellaneous

           *       *       *       *       *       *       *

  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. Employment of older Americans.
9905. 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. If the Secretary certifies that issuance or adjustment 
of a regulation, or the inclusion, exclusion, or modification 
of a particular provision therein, is essential to the national 
security, the Secretary may, subject to the decision of the 
President, waive the requirement in the preceding sentence that 
the regulation or adjustment be issued jointly with the 
Director.
    (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 (c)); 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 that is waivable under this chapter or 
        by any provision of this chapter or any rule or 
        regulation prescribed under this title that is waivable 
        under this chapter, except as specifically provided for 
        in this section; 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; and
                    (H) a means for ensuring that adequate 
                agency resources are allocated for the design, 
                implementation, and administration of the 
                performance management system.
    (c) 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), 57, 59, 72, 73, and 79, and this chapter.
    (d) 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 of this title.
    (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 of 
this title 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.
    (e) 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 any human resources management system or 
adjustments to such system under this section, the Secretary 
and the Director shall provide for the following:
            (A) The Secretary and the Director shall, with 
        respect to any proposed system or adjustment--
                    (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.
    (f) Provisions Regarding National Level Bargaining.--(1) 
Any human resources management 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 of this title.
    (2) For any bargaining unit so included under paragraph 
(1), the Secretary may bargain at an organizational level above 
the level of exclusive recognition. Any such bargaining shall--
            (A) be binding on all subordinate bargaining units 
        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, 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 for any 
        purpose, including bargaining at the level of 
        recognition, except as provided for by the Secretary; 
        and
            (D) except as otherwise specified in this chapter, 
        not be subject to review or to statutory third-party 
        dispute resolution procedures outside the Department of 
        Defense.
    (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.
    (g) Provisions Relating to Appellate Procedures.--(1) The 
Secretary shall--
            (A) establish an appeals process that provides that 
        employees of the Department of Defense are entitled to 
        fair treatment in any appeals that they bring in 
        decisions relating to their employment; and
            (B) in prescribing regulations for any such appeals 
        process--
                    (i) ensure that employees of the Department 
                of Defense 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) Any regulations establishing the appeals process 
required by paragraph (1) that relate to any matters within the 
purview of chapter 77 shall--
            (A) provide for an independent review panel, 
        appointed by the President, which shall not include the 
        Secretary or the Deputy Secretary of Defense or any of 
        their subordinates;
            (B) be issued only after--
                    (i) notification to the appropriate 
                committees of Congress; and
                    (ii) consultation with the Merit Systems 
                Protection Board and the Equal Employment 
                Opportunity Commission;
            (C) ensure the availability of procedures that--
                    (i) are consistent with requirements of due 
                process; and
                    (ii) provide, to the maximum extent 
                practicable, for the expeditious handling of 
                any matters involving the Department of 
                Defense; and
            (D) modify procedures under chapter 77 only insofar 
        as such modifications are designed to further the fair, 
        efficient, and expeditious resolution of matters 
        involving the employees of the Department of Defense.
    (h) 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) 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 of this title, 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 paragraph (1); 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.
    (3) 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 pursuant 
to the program established under subsection (a).
    (4)(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) of 
        this title, 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 of this title, 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 (5).
    (5)(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 of this title) 
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.
    (6) 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.
    (i) Provisions Relating to Reemployment.--If 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.
    (j) Additional Provisions Relating to Personnel 
Management.--Notwithstanding subsection (c), the Secretary may 
exercise authorities that would otherwise be available to the 
Secretary under paragraphs (1), (3), and (8) of section 4703(a) 
of this title.

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 of this title) 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 of this title, as increased by locality-based 
        comparability payments under section 5304 of this 
        title, 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) 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. Employment of older Americans

    (a) In General.--Notwithstanding any other provision of 
law, the Secretary may appoint older Americans into positions 
in the excepted service for a period not to exceed 2 years, 
provided that--
            (1) any such appointment shall not result in--
                    (A) the displacement of individuals 
                currently employed by the Department of Defense 
                (including partial displacement through 
                reduction of nonovertime hours, wages, or 
                employment benefits); or
                    (B) the employment of any individual when 
                any other person is in a reduction-in-force 
                status from the same or substantially 
                equivalent job within the Department of 
                Defense; and
            (2) the individual to be appointed is otherwise 
        qualified for the position, as determined by the 
        Secretary.
    (b) Effect on Existing Retirement Benefits.--
Notwithstanding any other provision of law, an individual 
appointed pursuant to subsection (a) who otherwise is receiving 
an annuity, pension, retired pay, or other similar payment 
shall not have the amount of said annuity, pension, or other 
similar payment reduced as a result of such employment.
    (c) Extension of Appointment.--Notwithstanding subsection 
(a), the Secretary may extend an appointment made pursuant to 
this section for up to an additional 2 years if the individual 
employee possesses unique knowledge or abilities that are not 
otherwise available to the Department of Defense.
    (d) Definition.--For purposes of this section, the term 
``older American'' means any citizen of the United States who 
is at least 55 years of age.

Sec. 9905. 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).
                              ----------                              

     SECTION 1404 OF THE DEFENSE DEPENDENTS' EDUCATION ACT OF 1978

                       [TUITION-PAYING STUDENTS]

            SPACE-AVAILABLE ENROLLMENT OF STUDENTS; TUITION

    Sec. 1404. (a)  * * *

           *       *       *       *       *       *       *

    (c)(1) The Secretary of Defense may by regulation identify 
classes of children who shall be eligible to enroll in schools 
of the defense dependents' education system under this section 
if and to the extent that there is space available, establish 
priorities among such classes, waive the tuition requirement of 
subsection (b)(1) with respect to any such class, and issue 
such other regulations as may be necessary to carry out this 
section.
    (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 in a tour of duty that 
        (voluntarily or involuntarily) has been extended to a 
        period in excess of one year.
    (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.

           *       *       *       *       *       *       *

                              ----------                              

TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *

PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *

               CHAPTER 3--DEPARTMENT OF VETERANS AFFAIRS

Sec.
301.    Department.
     * * * * * * *
320.    Department of Veterans Affairs-Department of Defense Joint 
          Executive Committee.

           *       *       *       *       *       *       *

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.

           *       *       *       *       *       *       *

PART VI--ACQUISITION AND DISPOSITION OF PROPERTY

           *       *       *       *       *       *       *

   CHAPTER 81--ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY 
    FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL 
PROPERTY

           *       *       *       *       *       *       *

Sec. 8111. Sharing of Department of Veterans Affairs and Department of 
                    Defense health care resources

    (a)  * * *
    (b) Joint Requirements for Secretaries of Veterans Affairs 
and Defense.--To facilitate the mutually beneficial 
coordination, use, or exchange of use of the health care 
resources of the two Departments, the two Secretaries shall 
carry out the following functions:
            (1)  * * *
            (2) Jointly fund the interagency committee provided 
        for under [subsection (c)] section 320 of this title.

           *       *       *       *       *       *       *

    [(c) DOD-VA Health Executive Committee.--(1) There is 
established an interagency committee to be known as the 
Department of Veterans Affairs-Department of Defense Health 
Executive Committee (hereinafter in this section referred to as 
the ``Committee''). 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.
    [(2)(A) During odd-numbered fiscal years, the Deputy 
Secretary of Veterans Affairs shall chair the Committee. During 
even-numbered fiscal years, the Under Secretary of Defense 
shall chair the Committee.
    [(B) The Deputy Secretary and the Under Secretary shall 
determine the size and structure of the Committee, as well as 
the administrative and procedural guidelines for the operation 
of the Committee. The two Departments shall share equally the 
Committee's cost of personnel and administrative support and 
services. Support for such purposes shall be provided at a 
level sufficient for the efficient operation of the Committee, 
including a permanent staff and, as required, other temporary 
working groups of appropriate departmental staff and outside 
experts.
    [(3) The Committee shall recommend to the Secretaries 
strategic direction for the joint coordination and sharing 
efforts between and within the two Departments under this 
section and shall oversee implementation of those efforts.
    [(4) The Committee shall submit to the two Secretaries and 
to Congress an annual report containing such recommendations as 
the Committee considers appropriate.
    [(5) In order to enable the Committee to make 
recommendations in its annual report under paragraph (4), the 
Committee shall do the following:
            [(A) Review existing policies, procedures, and 
        practices relating to the coordination and sharing of 
        health care resources between the two Departments.
            [(B) 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 the health care resources of the two 
        Departments, with the goal of improving the access to, 
        and quality and cost effectiveness of, the health care 
        provided by the Veterans Health Administration and the 
        Military Health System to the beneficiaries of both 
        Departments.
            [(C) Identify and assess further opportunities for 
        the coordination and sharing of health care resources 
        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 care provided by either Department.
            [(D) Review the plans of both Departments for the 
        acquisition of additional health care 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 health care resources.
            [(E) Review the implementation of activities 
        designed to promote the coordination and sharing of 
        health care resources between the Departments.
    [(6) The Committee chairman, under procedures jointly 
developed by the two Secretaries, may require the Inspector 
General of either or both Departments to assist in activities 
under paragraph (5)(E).]
    (d) Joint Incentives Program.--(1) Pursuant to subsection 
(b)(4), the two Secretaries shall carry out a program to 
identify, provide incentives to, implement, fund, and evaluate 
creative coordination and sharing initiatives at the facility, 
intraregional, and nationwide levels. The program shall be 
administered by the [Committee established in subsection (c)] 
Department of Veterans Affairs-Department of Defense Joint 
Executive Committee, under procedures jointly prescribed by the 
two Secretaries.

           *       *       *       *       *       *       *

    (e) Guidelines and Policies for Implementation of 
Coordination and Sharing Recommendations, Contracts, and 
Agreements.--(1) To implement the recommendations made by the 
[Committee under subsection (c)(2)] Department of Veterans 
Affairs-Department of Defense Joint Executive Committee with 
respect to health care resources, as well as to carry out other 
health care contracts and agreements for coordination and 
sharing initiatives as they consider appropriate, the two 
Secretaries shall jointly issue guidelines and policy 
directives. Such guidelines and policies shall provide for 
coordination and sharing that--
            (A)  * * *

           *       *       *       *       *       *       *

    (f) Annual Joint Report.--(1)  * * *
    (2) Each report under this section shall include the 
following:
            (A)  * * *
            [(B) The assessment of further opportunities 
        identified under subparagraph (C) of subsection (c)(5) 
        for the sharing of health-care resources between the 
        two Departments.
            [(C) Any recommendation made under subsection 
        (c)(4) during such fiscal year.]
            (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.

           *       *       *       *       *       *       *

    (3) In addition to the matters specified in paragraph (2), 
the two Secretaries shall include in the annual report under 
this subsection an overall status report of the progress of 
health resources sharing between the two Departments as a 
consequence of subtitle C of title VII of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314) and of other sharing initiatives taken during the 
period covered by the report. Such status report shall indicate 
the status of such sharing and shall include appropriate data 
as well as analyses of that data. The annual report shall 
include the following:
            (A)  * * *

           *       *       *       *       *       *       *

    (4) In addition to the matters specified in paragraphs (2) 
and (3), the two Secretaries shall include in the annual report 
under this subsection for each year through 2008 the following:
            (A) A description of the measures taken, or planned 
        to be taken, to implement the health resources sharing 
        project under section 722 of the Bob Stump National 
        Defense Authorization Act for Fiscal Year 2003 (Public 
        Law 107-314) and any cost savings anticipated, or cost 
        sharing achieved, at facilities participating in the 
        project, including information on improvements in 
        access to care, quality, and timeliness, as well as 
        impediments encountered and legislative recommendations 
        to ameliorate such impediments.
            (B) A description of the use of the waiver 
        authority provided by section 722(d)(1) of the Bob 
        Stump National Defense Authorization Act for Fiscal 
        Year 2003 (Public Law 107-314), including--
                    (i)  * * *

           *       *       *       *       *       *       *

    (5) In addition to the matters specified in paragraphs (2), 
(3), and (4), the two Secretaries shall include in the annual 
report under this subsection for each year through 2009 a 
report on the pilot program for graduate medical education 
under section 725 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314), 
including activities under the program during the preceding 
year and each Secretary's assessment of the efficacy of 
providing education and training under that program.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 8003 OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

SEC. 8003. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    (a)  * * *
    (b) Basic Support Payments and Payments With Respect to 
Fiscal Years in Which Insufficient Funds Are Appropriated.--
            (1)  * * *
            (2) Basic Support Payments for Heavily Impacted 
        Local Educational Agencies.--
                    (A)  * * *

           *       *       *       *       *       *       *

                    (H) Eligibility for heavily impacted local 
                educational agencies affected by privatization 
                of military housing.--
                            [(i) Eligibility.--For any fiscal 
                        year beginning with fiscal year 2003, a 
                        heavily impacted local educational 
                        agency that received a basic support 
                        payment under subparagraph (A) for the 
                        prior fiscal year, but is ineligible 
                        for such payment for the current fiscal 
                        year under subparagraph (B) or (C), 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.]
                            (i) Eligibility.--For any fiscal 
                        year beginning with fiscal 2003, a 
                        heavily impacted local educational 
                        agency that received a basic support 
                        payment under paragraph (b)(2) 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.

           *       *       *       *       *       *       *

 SECTION 204 OF THE DEFENSE AUTHORIZATION AMENDMENTS AND BASE CLOSURE 
                          AND REALIGNMENT ACT

SEC. 204. IMPLEMENTATION

    (a) * * *
    (b) Management and Disposal of Property.--(1)  * * *

           *       *       *       *       *       *       *

    (7)(A)  * * *

           *       *       *       *       *       *       *

    (C)(i) If any real property or facility acquired, 
constructed, or improved (in whole or in part) with commissary 
store funds or nonappropriated funds is transferred or disposed 
of in connection with the closure or realignment of a military 
installation under this title, a portion of the proceeds of the 
transfer or other disposal of property on that installation 
shall be deposited in a reserve account established in the 
Treasury to be administered by the Secretary. [The Secretary 
may use amounts in the account (in such an aggregate amount as 
is provided in advance in appropriation Acts)] Amounts in the 
account shall be available to the Secretary, without 
appropriation and until expended, for the purpose of acquiring, 
constructing, and improving--
            (I) commissary stores; and
            (II) real property and facilities for 
        nonappropriated fund instrumentalities.

           *       *       *       *       *       *       *

    [(e) Transfer Authority in Connection With Construction or 
Provision of Military Family Housing.--(1) Subject to paragraph 
(2), the Secretary may enter into an agreement to transfer by 
deed real property or facilities located at or near an 
installation closed or to be closed under this title with any 
person who agrees, in exchange for the real property or 
facilities, to transfer to the Secretary housing units that are 
constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable 
housing to meet the requirements of members of the Armed Forces 
and their dependents.
    [(2) A transfer of real property or facilities may be made 
under paragraph (1) only if--
            [(A) the fair market value of the housing units to 
        be received by the Secretary in exchange for the 
        property or facilities to be transferred is equal to or 
        greater than the fair market value of such property or 
        facilities, as determined by the Secretary; or
            [(B) in the event the fair market value of the 
        housing units is less than the fair market value of 
        property or facilities to be transferred, the recipient 
        of the property or facilities agrees to pay to the 
        Secretary the amount equal to the excess of the fair 
        market value of the property or facilities over the 
        fair market value of the housing units.
    [(3) Notwithstanding section 207(a)(7), the Secretary may 
deposit funds received under paragraph (2)(B) in the Department 
of Defense Family Housing Improvement Fund established under 
section 2883(a) of title 10, United States Code.
    [(4) The Secretary shall submit to the appropriate 
committees of Congress a report describing each agreement 
proposed to be entered into under paragraph (1), including the 
consideration to be received by the United States under the 
agreement. The Secretary may not enter into the agreement until 
the end of the 21-day period beginning on the date the 
appropriate committees of Congress receive the report regarding 
the agreement.
    [(5) The Secretary may require any additional terms and 
conditions in connection with an agreement authorized by this 
subsection as the Secretary considers appropriate to protect 
the interests of the United States.]

           *       *       *       *       *       *       *

                              ----------                              

            DEFENSE BASE CLOSURE AND REALIGNMENT ACT OF 1990

           *       *       *       *       *       *       *
           TITLE XXIX--DEFENSE BASE CLOSURES AND REALIGNMENTS

Part A--Defense Base Closure and Realignment Commission

           *       *       *       *       *       *       *

SEC. 2905. IMPLEMENTATION

    (a)  * * *

           *       *       *       *       *       *       *

    [(f) Transfer Authority in Connection With Construction or 
Provision of Military Family Housing.--(1) Subject to paragraph 
(2), the Secretary may enter into an agreement to transfer by 
deed real property or facilities located at or near an 
installation closed or to be closed under this part with any 
person who agrees, in exchange for the real property or 
facilities, to transfer to the Secretary housing units that are 
constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable 
housing to meet the requirements of members of the Armed Forces 
and their dependents.
    [(2) A transfer of real property or facilities may be made 
under paragraph (1) only if--
            [(A) the fair market value of the housing units to 
        be received by the Secretary in exchange for the 
        property or facilities to be transferred is equal to or 
        greater than the fair market value of such property or 
        facilities, as determined by the Secretary; or
            [(B) in the event the fair market value of the 
        housing units is less than the fair market value of 
        property or facilities to be transferred, the recipient 
        of the property or facilities agrees to pay to the 
        Secretary the amount equal to the excess of the fair 
        market value of the property or facilities over the 
        fair market value of the housing units.
    [(3) Notwithstanding paragraph (2) of section 2906(a), the 
Secretary may deposit funds received under paragraph (2)(B) in 
the Department of Defense Family Housing Improvement Fund 
established under section 2883(a) of title 10, United States 
Code.
    [(4) The Secretary shall submit to the congressional 
defense committees a report describing each agreement proposed 
to be entered into under paragraph (1), including the 
consideration to be received by the United States under the 
agreement. The Secretary may not enter into the agreement until 
the end of the 30-day period beginning on the date the 
congressional defense committees receive the report regarding 
the agreement.
    [(5) The Secretary may require any additional terms and 
conditions in connection with an agreement authorized by this 
subsection as the Secretary considers appropriate to protect 
the interests of the United States.]

           *       *       *       *       *       *       *

SEC. 2906. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 1990

    (a)  * * *

           *       *       *       *       *       *       *

    (d) Disposal or Transfer of Commissary Stores and Property 
Purchased With Nonappropriated Funds.--(1)  * * *

           *       *       *       *       *       *       *

    (3) [The Secretary may use amounts in the account (in such 
an aggregate amount as is provided in advance in appropriation 
Acts)] Amounts in the account shall be available to the 
Secretary, without appropriation and until expended, for the 
purpose of acquiring, constructing, and improving--
            (A)  * * *

           *       *       *       *       *       *       *

SEC. 2912. 2005 ROUND OF REALIGNMENTS AND CLOSURES OF MILITARY 
                    INSTALLATIONS.

    (a) Force-Structure Plan and Infrastructure Inventory.--
            (1) Preparation and submission.--As part of the 
        budget justification documents submitted to Congress in 
        support of the budget for the Department of Defense for 
        fiscal year 2005, the Secretary shall include the 
        following:
                    [(A) A force-structure plan for the Armed 
                Forces based on an assessment by the Secretary 
                of the probable threats to the national 
                security during the 20-year period beginning 
                with fiscal year 2005, the probable end-
                strength levels and major military force units 
                (including land force divisions, carrier and 
                other major combatant vessels, air wings, and 
                other comparable units) needed to meet these 
                threats, and the anticipated levels of funding 
                that will be available for national defense 
                purposes during such period.]
                    (A) A force-structure plan for the Armed 
                Forces that--
                            (i) at a minimum, assumes the force 
                        structure under the 1991 Base Force 
                        force structure (as defined in 
                        paragraph (5)) that is also known as 
                        the ``Cheney-Powell force structure''; 
                        and
                            (ii) includes such consideration as 
                        the Secretary considers appropriate of 
                        an assessment by the Secretary of--
                                    (I) the probable threats to 
                                the national security during 
                                the 20-year period beginning 
                                with fiscal year 2005;
                                    (II) the probable end-
                                strength levels and major 
                                military force units (including 
                                land force divisions, carrier 
                                and other major combatant 
                                vessels, air wings, and other 
                                comparable units) needed to 
                                meet those threats; and
                                    (III) the anticipated 
                                levels of funding that will be 
                                available for national defense 
                                purposes during such period.

           *       *       *       *       *       *       *

            (2) Relationship of plan and inventory.--Using the 
        force-structure plan and infrastructure inventory 
        prepared under paragraph (1), the Secretary shall 
        prepare (and include as part of the submission of such 
        plan and inventory) the following:
                    (A) A description of the infrastructure 
                necessary to support the force structure 
                described in the force-structure plan, based 
                upon an assumption that there are no 
                installations available outside the United 
                States for the permanent basing of elements of 
                the Armed Forces.

           *       *       *       *       *       *       *

            (4) Revision.--The Secretary may revise the force-
        structure plan and infrastructure inventory. Any such 
        revision shall be consistent with this subsection. If 
        the Secretary makes such a revision, the Secretary 
        shall submit the revised plan or inventory to Congress 
        as part of the budget justification documents submitted 
        to Congress for fiscal year 2006.
            (5) Base force.--In this subsection, the term 
        ``1991 Base Force force structure'' means the force 
        structure plan for the Armed Forces, known as the 
        ``Base Force'', that was adopted by the Secretary of 
        Defense in November 1990 based upon recommendations of 
        the Chairman of the Joint Chiefs of Staff and as 
        incorporated in the President's budget for fiscal year 
        1992, as submitted to Congress in February 1991 and 
        that assumed the following force structure:
                    (A) For the Department of Defense, 
                1,600,000 members of the Armed Forces on active 
                duty and 900,000 members in an active status in 
                the reserve components.
                    (B) For the Army, 12 active divisions, six 
                National Guard divisions, and two cadre 
                divisions or their equivalents.
                    (C) For the Navy, 12 aircraft carrier 
                battle groups or their equivalents and 451 
                naval vessels, including 85 attack submarines.
                    (D) For the Marine Corps, three active and 
                one Reserve divisions and three active and one 
                Reserve air wings.
                    (E) For the Air Force, 15 active fighter 
                wings and 11 National Guard fighter wings or 
                their equivalents.

           *       *       *       *       *       *       *

SEC. 2913. SELECTION CRITERIA FOR 2005 ROUND.

    (a) Preparation of Proposed Selection Criteria.--
            (1) * * *

           *       *       *       *       *       *       *

            (3) Use of force-structure plan.--In preparing the 
        proposed and final criteria to be used by the Secretary 
        in making recommendations under section 2914 for the 
        closure or realignment of military installations inside 
        the United States, the Secretary shall use the force-
        structure plan for the Armed Forces prepared under 
        section 2912(a).

           *       *       *       *       *       *       *

    (g) Base Exclusion Criteria.--In preparing the selection 
criteria required by this section that will be used in making 
recommendations for the closure or realignment of military 
installations inside the United States, the Secretary shall 
ensure that the final criteria reflect the requirement to 
develop a list of those military installations to be excluded 
from the base closure and realignment process, as provided in 
subsection (h).
    (h) List of Installations Excluded From Consideration for 
Closure or Realignment.--(1) Before preparing the list required 
by section 2914(a) of the military installations inside the 
United States that the Secretary recommends for closure or 
realignment, the Secretary shall prepare a list of core 
military installations that the Secretary considers absolutely 
essential to the national defense and that should not be 
considered for closure.
    (2) Not later than April 1, 2005, the Secretary shall 
submit to the congressional defense committees, publish in the 
Federal Register, and send to the Commission the list required 
by paragraph (1). The list shall contain at least 50 percent of 
the total number of military installations located inside the 
United States as of the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2004.
    (3) The Commission shall consider the list based on the 
final criteria developed under subsection (e). The Commission 
may modify this list, in the manner provided in section 2903(d) 
and section 2914(d), if the Commission finds that the inclusion 
of a military installation on the list substantially violates 
the criteria. The Commission shall forward to the President, 
not later than April 30, 2005, a report containing its 
recommendations regarding the list, which must comply with the 
percentages specified in paragraph (2). The Comptroller General 
shall also comply with section 2903(d)(5) by that date.
    (4) If the Commission submits a report to the President 
under paragraph (3), the President shall notify Congress, not 
later than May 10, 2005, regarding whether the President 
approves or disapproves the report. If the President 
disapproves the report, the Commission shall be dissolved, and 
the process by which military installations may be selected for 
closure or realignment under this part in 2005 shall be 
terminated.
    (5) A military installation included on the exclusion list 
approved under this subsection may not be included on the 
closure and realignment list prepared under section 2914(a) or 
otherwise considered for closure or realignment as part of the 
base closure process in 2005.

SEC. 2914. SPECIAL PROCEDURES FOR MAKING RECOMMENDATIONS FOR 
                    REALIGNMENTS AND CLOSURES FOR 2005 ROUND; 
                    COMMISSION CONSIDERATION OF RECOMMENDATIONS.

    (a) * * *

           *       *       *       *       *       *       *

    (d) Commission Review and Recommendations.--
            (1) * * *

           *       *       *       *       *       *       *

            (3) Limitations on authority [to add] to consider 
        additions to closure or realignment lists.--The 
        Commission may not consider making a change in the 
        recommendations of the Secretary that would add a 
        military installation to the Secretary's list of 
        installations recommended for closure or realignment 
        unless, in addition to the requirements of section 
        2903(d)(2)(C)--
                    (A) * * *

           *       *       *       *       *       *       *

            (5) Site visit and unanimous vote.--In the report 
        required under section 2903(d)(2)(A) that is to be 
        transmitted under paragraph (1), the Commission may not 
        recommend the closure of a military installation not 
        recommended for closure by the Secretary under 
        subsection (a) unless at least two members of the 
        Commission visit the installation before the date of 
        the transmittal of the report and the decision of the 
        Commission to recommend the closure of the installation 
        is unanimous.

           *       *       *       *       *       *       *

                              ----------                              

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993

           *       *       *       *       *       *       *

                  TITLE III--OPERATION AND MAINTENANCE

          * * * * * * *

                  Subtitle C--Environmental Provisions

          * * * * * * *

SEC. 324. OVERSEAS ENVIRONMENTAL RESTORATION.

    [(a) Sense of Congress.--]It is the sense of the Congress 
that in carrying out environmental restoration activities at 
military installations outside the United States, the President 
should seek to obtain an equitable division of the costs of 
environmental restoration with the nation in which the 
installation is located.
    [(b) Report.--The Secretary of Defense shall include in 
each Report on Allied Contributions to the Common Defense 
prepared under section 1003 of Public Law 98-525 (22 U.S.C. 
1928) information, in classified and unclassified form, 
describing the efforts undertaken and the progress made by the 
President in carrying out subsection (a) during the period 
covered by the report.]
          * * * * * * *

                   TITLE VII--HEALTH CARE PROVISIONS

          * * * * * * *

                       Subtitle C--Other Matters

          * * * * * * *

SEC. 722. MILITARY HEALTH CARE FOR PERSONS RELIANT ON HEALTH CARE 
                    FACILITIES AT BASES BEING CLOSED OR REALIGNED.

    [(a) Establishment.--The Secretary of Defense shall 
establish a joint services working group on the provision of 
military health care to persons who rely for health care on 
health care facilities at military installations being closed 
or realigned.
    [(b) Membership.--The members of the working group shall 
include the Assistant Secretary of Defense for Health Affairs, 
the Surgeon General of the Army, the Surgeon General of the 
Navy, the Surgeon General of the Air Force, or a designee of 
each such person, and one independent member appointed by the 
Secretary of Defense from among private citizens whose interest 
in matters within the responsibility of the working group 
qualify that person to represent all personnel entitled to 
health care under chapter 55 of title 10, United States Code.
    [(c) Duties.--(1) In the case of each closure or 
realignment of a military installation that will adversely 
affect the accessibility of health care in a facility of the 
uniformed services for persons entitled to such health care 
under chapter 55 of title 10, United States Code, the working 
group shall solicit the views of such persons regarding 
suitable substitutes for the furnishing of health care to those 
persons under that chapter.
    [(2) In carrying out paragraph (1), the working group--
            [(A) shall conduct meetings with persons referred 
        to in that paragraph, or representatives of such 
        persons;
            [(B) may use reliable sampling techniques;
            [(C) shall visit the areas where closures or 
        realignments of military installations will adversely 
        affect the accessibility of health care in a facility 
        of the uniformed services for persons referred to in 
        paragraph (1) and shall conduct public meetings; and
            [(D) 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 views.
    [(d) Recommendations.--With respect to each closure and 
realignment of a military installation referred to in 
subsection (c), the working group shall submit to the Congress 
and the Secretary of Defense the working group's 
recommendations regarding the alternative means for continuing 
to provide accessible health care under chapter 55 of title 10, 
United States Code, to persons referred to in that subsection.]
    (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 of Health 
        Affairs, or the designee of the Assistant Secretary.
            (2) The Surgeon General of the Army, or the 
        designee of that Surgeon General.
            (3) The Surgeon General of the Navy, or the 
        designee of that Surgeon General.
            (4) The Surgeon General of the Air Force, or the 
        designee of that Surgeon General.
            (5) At least one independent member 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 selection criteria and 
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.

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle H--Other Matters

           *       *       *       *       *       *       *

SEC. 1082. LIMITATION ON SUPPORT FOR UNITED STATES CONTRACTORS SELLING 
                    ARMS OVERSEAS.

    (a) * * *
    (b) Department of Defense Exhibitions.--(1) A military 
department may not participate directly in any airshow or trade 
exhibition held outside the United States unless [the Secretary 
of Defense--
            [(A) determines that it is in the national security 
        interests of the United States for the military 
        department to do so; and
            [(B) provides to the congressional defense 
        committees at least 45 days before the opening of the 
        airshow or trade exhibition a report detailing--
                    [(i) why the show or exhibition is in the 
                national security interest;
                    [(ii) a description of the implications 
                that promoting the sale of the weapons in 
                question will have on arms control; and
                    [(iii) an estimate of any costs to be 
                incurred.] the Secretary of Defense determines 
                that it is in the national security interests 
                of the United States for the military 
                departments to do so.

           *       *       *       *       *       *       *

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

           *       *       *       *       *       *       *

                  [Subtitle E--Defense Nuclear Workers

[SEC. 3161. DEPARTMENT OF ENERGY DEFENSE NUCLEAR FACILITIES WORKFORCE 
                    RESTRUCTURING PLAN.

    [(a) In General.--Upon determination that a change in the 
workforce at a defense nuclear facility is necessary, the 
Secretary of Energy (hereinafter in this subtitle referred to 
as the ``Secretary'') shall develop a plan for restructuring 
the workforce for the defense nuclear facility that takes into 
account--
            [(1) the reconfiguration of the defense nuclear 
        facility; and
            [(2) the plan for the nuclear weapons stockpile 
        that is the most recently prepared plan at the time of 
        the development of the plan referred to in this 
        subsection.
    [(b) Consultation.--(1) In developing a plan referred to in 
subsection (a) and any updates of the plan under subsection 
(e), the Secretary shall consult with the Secretary of Labor, 
appropriate representatives of local and national collective-
bargaining units of individuals employed at Department of 
Energy defense nuclear facilities, appropriate representatives 
of departments and agencies of State and local governments, 
appropriate representatives of State and local institutions of 
higher education, and appropriate representatives of community 
groups in communities affected by the restructuring plan.
    [(2) The Secretary shall determine appropriate 
representatives of the units, governments, institutions, and 
groups referred to in paragraph (1).
    [(c) Objectives.--In preparing the plan required under 
subsection (a), the Secretary shall be guided by the following 
objectives:
            [(1) Changes in the workforce at a Department of 
        Energy defense nuclear facility--
                    [(A) should be accomplished so as to 
                minimize social and economic impacts;
                    [(B) should be made only after the 
                provision of notice of such changes not later 
                than 120 days before the commencement of such 
                changes to such employees and the communities 
                in which such facilities are located; and
                    [(C) should be accomplished, when possible, 
                through the use of retraining, early 
                retirement, attrition, and other options that 
                minimize layoffs.
            [(2) Employees whose employment in positions at 
        such facilities is terminated shall, to the extent 
        practicable, receive preference in any hiring of the 
        Department of Energy (consistent with applicable 
        employment seniority plans or practices of the 
        Department of Energy and with section 3152 of the 
        National Defense Authorization Act for Fiscal Years 
        1990 and 1991 (Public Law 101-189; 103 Stat. 1682)).
            [(3) Employees shall, to the extent practicable, be 
        retrained for work in environmental restoration and 
        waste management activities at such facilities or other 
        facilities of the Department of Energy.
            [(4) The Department of Energy should provide 
        relocation assistance to employees who are transferred 
        to other Department of Energy facilities as a result of 
        the plan.
            [(5) The Department of Energy should assist 
        terminated employees in obtaining appropriate 
        retraining, education, and reemployment assistance 
        (including employment placement assistance).
            [(6) The Department of Energy should provide local 
        impact assistance to communities that are affected by 
        the restructuring plan and coordinate the provision of 
        such assistance with--
                    [(A) programs carried out by the Secretary 
                of Labor under the Job Training Partnership Act 
                or title I of the Workforce Investment Act of 
                1998;
                    [(B) programs carried out pursuant to the 
                Defense Economic Adjustment, Diversification, 
                Conversion, and Stabilization Act of 1990 
                (division D of Public Law 101-510; 10 U.S.C. 
                2391 note); and
                    [(C) programs carried out by the Department 
                of Commerce pursuant to title II of the Public 
                Works and Economic Development Act of 1965 (42 
                U.S.C. 3141 et seq.).
    [(d) Implementation.--The Secretary shall, subject to the 
availability of appropriations for such purpose, work on an 
ongoing basis with representatives of the Department of Labor, 
workforce bargaining units, and States and local communities in 
carrying out a plan required under subsection (a).
    [(e) Plan Updates.--Not later than one year after issuing a 
plan referred to in subsection (a) and on an annual basis 
thereafter, the Secretary shall issue an update of the plan. 
Each updated plan under this subsection shall--
            [(1) be guided by the objectives referred to in 
        subsection (c), taking into account any changes in the 
        function or mission of the Department of Energy defense 
        nuclear facilities and any other changes in 
        circumstances that the Secretary determines to be 
        relevant;
            [(2) contain an evaluation by the Secretary of the 
        implementation of the plan during the year preceding 
        the report; and
            [(3) contain such other information and provide for 
        such other matters as the Secretary determines to be 
        relevant.
    [(f) Submittal to Congress.--(1) The Secretary shall submit 
to Congress a plan referred to in subsection (a) with respect 
to a defense nuclear facility within 90 days after the date on 
which a notice of changes described in subsection (c)(1)(B) is 
provided to employees of the facility, or 90 days after the 
date of the enactment of this Act, whichever is later.
    [(2) The Secretary shall submit to Congress any updates of 
the plan under subsection (e) immediately upon completion of 
any such update.

[SEC. 3162. PROGRAM TO MONITOR DEPARTMENT OF ENERGY WORKERS EXPOSED TO 
                    HAZARDOUS AND RADIOACTIVE SUBSTANCES.

    [(a) In General.--The Secretary shall establish and carry 
out a program for the identification and on-going medical 
evaluation of current and former Department of Energy employees 
who are subject to significant health risks as a result of the 
exposure of such employees to hazardous or radioactive 
substances during such employment.
    [(b) Implementation of Program.--(1) The Secretary shall, 
with the concurrence of the Secretary of Health and Human 
Services, issue regulations under which the Secretary shall 
implement the program. Such regulations shall, to the extent 
practicable, provide for a process to--
            [(A) identify the hazardous substances and 
        radioactive substances to which current and former 
        Department of Energy employees may have been exposed as 
        a result of such employment;
            [(B) identify employees referred to in subparagraph 
        (A) who received a level of exposure identified under 
        paragraph (2)(B);
            [(C) determine the appropriate number, scope, and 
        frequency of medical evaluations and laboratory tests 
        to be provided to employees who have received a level 
        of exposure identified under paragraph (2)(B) to permit 
        the Secretary to evaluate fully the extent, nature, and 
        medical consequences of such exposure;
            [(D) make available the evaluations and tests 
        referred to in subparagraph (C) to the employees 
        referred to in such subparagraph;
            [(E) ensure that privacy is maintained with respect 
        to medical information that personally identifies any 
        such employee; and
            [(F) ensure that employee participation in the 
        program is voluntary.
    [(2)(A) In determining the most appropriate means of 
carrying out the activities referred to in subparagraphs (A) 
through (D) of paragraph (1), the Secretary shall consult with 
the Secretary of Health and Human Services under the agreement 
referred to in subsection (c).
    [(B) The Secretary of Health and Human Services, with the 
assistance of the Director of the Centers for Disease Control 
and the Director of the National Institute for Occupational 
Safety and Health, and the Secretary of Labor shall identify 
the levels of exposure to the substances referred to in 
subparagraph (A) of paragraph (1) that present employees 
referred to in such subparagraph with significant health risks 
under Federal and State occupational, health, and safety 
standards;
    [(3) In prescribing the guidelines referred to in paragraph 
(1), the Secretary shall consult with representatives of the 
following entities:
            [(A) The American College of Occupational and 
        Environmental Medicine.
            [(B) The National Academy of Sciences.
            [(C) The National Council on Radiation Protection.
            [(D) Any labor organization or other collective 
        bargaining agent authorized to act on the behalf of 
        employees of a Department of Energy defense nuclear 
        facility.
    [(4) The Secretary shall provide for each employee 
identified under paragraph (1)(D) and provided with any medical 
examination or test under paragraph (1)(E) to be notified by 
the appropriate medical personnel of the identification and the 
results of any such examination or test. Each notification 
under this paragraph shall be provided in a form that is 
readily understandable by the employee.
    [(5) The Secretary shall collect and assemble information 
relating to the examinations and tests carried out under 
paragraph (1)(E).
    [(6) The Secretary shall commence carrying out the program 
described in this subsection not later than 1 year after the 
date of the enactment of this Act.
    [(c) Agreement with Secretary of Health and Human 
Services.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall enter into an 
agreement with the Secretary of Health and Human Services 
relating to the establishment and conduct of the program 
required and regulations issued under this section.

[SEC. 3163. DEFINITIONS.

    [For purposes of this subtitle:
            [(1) The term ``Department of Energy defense 
        nuclear facility'' means--
                    [(A) 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;
                    [(B) a nuclear waste storage or disposal 
                facility that is under the control or 
                jurisdiction of the Secretary;
                    [(C) 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);
                    [(D) an atomic weapons research facility 
                that is under the control or jurisdiction of 
                the Secretary (including the Lawrence 
                Livermore, Los Alamos, and Sandia National 
                Laboratories); or
                    [(E) any facility described in 
                subparagragraphs (A) through (D) that--
                            [(i) is no longer in operation;
                            [(ii) was under the control or 
                        jurisdiction of the Department of 
                        Defense, the Atomic Energy Commission, 
                        or the Energy Research and Development 
                        Administration; and
                            [(iii) was operated for national 
                        security purposes.
            [(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.]

           *       *       *       *       *       *       *

                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1994

           *       *       *       *       *       *       *
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
MATTERS

           *       *       *       *       *       *       *

Subtitle E--Other Matters

           *       *       *       *       *       *       *

SEC. 845. AUTHORITY OF THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY TO 
                    CARRY OUT CERTAIN PROTOTYPE PROJECTS.

    (a) * * *

           *       *       *       *       *       *       *

    (g) Period of Authority.--The authority to carry out 
projects under subsection (a) shall terminate at the end of 
[September 30, 2004] September 30, 2008.

           *       *       *       *       *       *       *

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

           *       *       *       *       *       *       *

Subtitle C--Program Authorizations, Restrictions, and Limitations

           *       *       *       *       *       *       *

SEC. 3136. PROHIBITION ON [RESEARCH AND DEVELOPMENT] DEVELOPMENT AND 
                    PRODUCTION OF LOW-YIELD NUCLEAR WEAPONS.

    (a) United States Policy.--It shall be the policy of the 
United States not to [conduct research and development which 
could lead to the production by the United States of] develop 
or produce a new low-yield nuclear weapon, including a 
precision low-yield warhead.
    (b) Limitation.--The Secretary of Energy may not [conduct, 
or provide for the conduct of, research and development which 
could lead to the production by the United States of] develop, 
produce, or provide for the development or production of, a 
low-yield nuclear weapon which, as of [the date of the 
enactment of this Act] November 30, 1993,, has not entered 
production.
    (c) Effect on Other [Research and] Development.--Nothing in 
this section shall prohibit the Secretary of Energy from 
conducting, or providing for the conduct of, [research and] 
development necessary--
            (1)  * * *

           *       *       *       *       *       *       *

            (3) to address proliferation concerns, including 
        assessment of low-yield nuclear weapons development by 
        other nations that may pose a national security risk to 
        the United States.
    (d) Effect on Studies and Design Work.--Nothing in this 
section shall prohibit the Secretary of Energy from conducting, 
or providing for the conduct of, concept definition studies, 
feasibility studies, or detailed engineering design work.
    [(d)] (e) Definition.--In this section, the term ``low-
yield nuclear weapon'' means a nuclear weapon that has a yield 
of less than five kilotons.

[SEC. 3137. TESTING OF NUCLEAR WEAPONS.

    [(a) In General.--Of the funds authorized to be 
appropriated under section 3101(a)(2) for the Department of 
Energy for fiscal year 1994 for weapons testing, $211,326,000 
shall be available for infrastructure maintenance at the Nevada 
Test Site, and for maintaining the technical capability to 
resume underground nuclear testing at the Nevada Test Site.
    [(b) Atmospheric Testing of Nuclear Weapons.--None of the 
funds appropriated pursuant to this Act or any other Act for 
any fiscal year may be available to maintain the capability of 
the United States to conduct atmospheric testing of a nuclear 
weapon.

[SEC. 3138. STOCKPILE STEWARDSHIP PROGRAM.

    [(a) Establishment.--The Secretary of Energy shall 
establish a stewardship program to ensure the preservation of 
the core intellectual and technical competencies of the United 
States in nuclear weapons, including weapons design, system 
integration, manufacturing, security, use control, reliability 
assessment, and certification.
    [(b) Program Elements.--The program shall include the 
following:
            [(1) An increased level of effort for advanced 
        computational capabilities to enhance the simulation 
        and modeling capabilities of the United States with 
        respect to the detonation of nuclear weapons.
            [(2) An increased level of effort for above-ground 
        experimental programs, such as hydrotesting, high-
        energy lasers, inertial confinement fusion, plasma 
        physics, and materials research.
            [(3) Support for new facilities construction 
        projects that contribute to the experimental 
        capabilities of the United States, such as an advanced 
        hydrodynamics facility, the National Ignition Facility, 
        and other facilities for above-ground experiments to 
        assess nuclear weapons effects.
    [(c) Authorization of Appropriations.--Of funds authorized 
to be appropriated to the Secretary of Energy for fiscal year 
1994 for weapons activities, $157,400,000 shall be available 
for the stewardship program established under subsection (a).]

           *       *       *       *       *       *       *

Subtitle D--Other Matters

           *       *       *       *       *       *       *

[SEC. 3153. BASELINE ENVIRONMENTAL MANAGEMENT REPORTS.

    [(a) Annual Environmental Restoration Reports.--(1) The 
Secretary of Energy shall (in the years and at the times 
specified in paragraph (2)) submit to the Congress a report on 
the activities and projects necessary to carry out the 
environmental restoration of all Department of Energy defense 
nuclear facilities.
    [(2) Reports under paragraph (1) shall be submitted as 
follows:
            [(A) The initial report shall be submitted not 
        later than March 1, 1995.
            [(B) A report after the initial report shall be 
        submitted in each year after 1995 during which the 
        Secretary of Energy conducts, or plans to conduct, 
        environmental restoration activities and projects, not 
        later than 30 days after the date on which the 
        President submits to the Congress the budget for the 
        fiscal year beginning in that year.
    [(b) Biennial Waste Management Reports.--(1) The Secretary 
of Energy shall (in the years and at the times specified in 
paragraph (2)) submit to the Congress a report on all 
activities and projects for waste management, including 
pollution prevention and transition of operational facilities 
to safe shutdown status, that are necessary for Department of 
Energy defense nuclear facilities.
    [(2) Reports required under paragraph (1) shall be 
submitted as follows:
            [(A) The initial report shall be submitted not 
        later than June 1, 1995.
            [(B) A report after the initial report shall be 
        submitted in each odd-numbered year after 1997, not 
        later than 30 days after the date on which the 
        President submits to the Congress the budget for the 
        fiscal year beginning in that year.
    [(c) Contents of Reports.--A report required under 
subsection (a) or (b) shall be based on compliance with all 
applicable provisions of law, permits, regulations, orders, and 
agreements, and shall--
            [(1) provide the estimated total cost of, and the 
        complete schedule for, the activities and projects 
        covered by the report; and
            [(2) with respect to each such activity and 
        project, contain--
                    [(A) a description of the activity or 
                project;
                    [(B) a description of the problem addressed 
                by the activity or project;
                    [(C) the proposed remediation of the 
                problem, if the remediation is known or 
                decided;
                    [(D) the estimated cost to complete the 
                activity or project, including, where 
                appropriate, the cost for every five-year 
                increment; and
                    [(E) the estimated date for completion of 
                the activity or project, including, where 
                appropriate, progress milestones for every 
                five-year increment.
    [(d) Biennial Status and Variance Reports.--(1)(A) The 
Secretary of Energy shall (in the years and at the time 
specified in subparagraph (B)) submit to the Congress a status 
and variance report on environmental restoration and waste 
management activities and projects at Department of Energy 
defense nuclear facilities.
    [(B) A report under subparagraph (A) shall be submitted in 
1995 and in each odd-numbered year thereafter during which the 
Secretary of Energy conducts environmental restoration and 
waste management activities, not later than 30 days after the 
date on which the President submits to the Congress the budget 
for the fiscal year beginning in that year.
    [(2) Each status and variance report under paragraph (1) 
shall contain the following:
            [(A) Information on each such activity and project 
        for which funds were appropriated for the two fiscal 
        years immediately before the fiscal year during which 
        the report is submitted, including the following:
                    [(i) Information on whether or not the 
                activity or project has been completed, and 
                information on the estimated date of completion 
                for activities or projects that have not been 
                completed.
                    [(ii) The total amount of funds expended 
                for the activity or project during such prior 
                fiscal years, including the amount of funds 
                expended from amounts made available as the 
                result of supplemental appropriations or a 
                transfer of funds, and an estimate of the total 
                amount of funds required to complete the 
                activity or project.
                    [(iii) Information on whether the President 
                requested an amount of funds for the activity 
                or project in the budget for the fiscal year 
                during which the report is submitted, and 
                whether such funds were appropriated or 
                transferred.
                    [(iv) An explanation of the reasons for any 
                projected cost variance between actual and 
                estimated expenditures of more than 15 percent 
                or $10,000,000, or any schedule delay of more 
                than six months, for the activity or project.
            [(B) For the fiscal year during which the report is 
        submitted, a disaggregation of the funds appropriated 
        for Department of Energy defense environmental 
        restoration and waste management into the activities 
        and projects (including discrete parts of multiyear 
        activities and projects) that the Secretary of Energy 
        expects to accomplish during that fiscal year.
            [(C) For the fiscal year for which the budget is 
        submitted, a disaggregation of the Department of Energy 
        defense environmental restoration and waste management 
        budget request into the activities and projects 
        (including discrete parts of multiyear activities and 
        projects) that the Secretary of Energy expects to 
        accomplish during that fiscal year.
    [(e) Compliance Tracking.--In preparing a report under this 
section, the Secretary of Energy shall provide, with respect to 
each activity and project identified in the report, information 
which is sufficient to track the Department of Energy's 
compliance with relevant Federal and State regulatory 
milestones.]

           *       *       *       *       *       *       *

                              ----------                              

NATIONAL SECURITY ACT OF 1947

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

Sec. 2. Declaration of policy.
     * * * * * * *

               Title I--Coordination for National Security

Sec. 101. National Security Council.
     * * * * * * *
[Sec. 105C. Protection of the operational files of the National Imagery 
          and Mapping Agency.]
Sec. 105C. Protection of operational files of National Geospatial-
          Intelligence Agency.
     * * * * * * *
[Sec. 110. National mission of National Imagery and Mapping Agency.]
Sec. 110. National mission of National Geospatial-Intelligence Agency.
     * * * * * * *

                              DEFINITIONS

    Sec. 3. As used in this Act:
            (1)  * * *

           *       *       *       *       *       *       *

            (4) The term ``intelligence community'' includes--
                    (A)  * * *

           *       *       *       *       *       *       *

                    (E) the [National Imagery and Mapping 
                Agency] National Geospatial- Intelligence 
                Agency;

           *       *       *       *       *       *       *

TITLE I--COORDINATION FOR NATIONAL SECURITY

           *       *       *       *       *       *       *

RESPONSIBILITIES OF THE SECRETARY OF DEFENSE PERTAINING TO THE NATIONAL 
                      FOREIGN INTELLIGENCE PROGRAM

    Sec. 105. (a)  * * *
    (b) Responsibility for the Performance of Specific 
Functions.--Consistent with sections 103 and 104 of this Act, 
the Secretary of Defense shall ensure--
            (1)  * * *
            (2) through the [National Imagery and Mapping 
        Agency] National Geospatial-Intelligence Agency (except 
        as otherwise directed by the President or the National 
        Security Council), with appropriate representation from 
        the intelligence community, the continued operation of 
        an effective unified organization within the Department 
        of Defense--
                    (A)  * * *

           *       *       *       *       *       *       *

    (d) Annual Evaluation of Performance and Responsiveness of 
Certain Elements of Intelligence Community.--(1)  * * *

           *       *       *       *       *       *       *

    (3) An evaluation described in this paragraph is an 
evaluation of the performance and responsiveness of the 
National Security Agency, the National Reconnaissance Office, 
and the [National Imagery and Mapping Agency] National 
Geospatial-Intelligence Agency in meeting their respective 
national missions.

           *       *       *       *       *       *       *

          ASSISTANCE TO UNITED STATES LAW ENFORCEMENT AGENCIES

    Sec. 105A. (a)  * * *
    (b) Limitation on Assistance by Elements of Department of 
Defense.--(1) With respect to elements within the Department of 
Defense, the authority in subsection (a) applies only to the 
following:
            (A)  * * *

           *       *       *       *       *       *       *

            (C) The [National Imagery and Mapping Agency] 
        National Geospatial-Intelligence Agency.

           *       *       *       *       *       *       *

 PROTECTION OF OPERATIONAL FILES OF THE [NATIONAL IMAGERY AND MAPPING 
            AGENCY] NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY

    Sec. 105C. (a) Exemption of Certain Operational Files From 
Search, Review, Publication, or Disclosure.--(1) The Director 
of the [National Imagery and Mapping Agency] National 
Geospatial-Intelligence Agency, with the coordination of the 
Director of Central Intelligence, may exempt operational files 
of the [National Imagery and Mapping Agency] National 
Geospatial-Intelligence Agency from the provisions of section 
552 of title 5, United States Code, which require publication, 
disclosure, search, or review in connection therewith.
    (2)(A) Subject to subparagraph (B), for the purposes of 
this section, the term ``operational files'' means files of the 
[National Imagery and Mapping Agency] National Geospatial-
Intelligence Agency (hereafter in this section referred to as 
``[NIMA] NGA'') concerning the activities of [NIMA] NGA that 
before the establishment of [NIMA] NGA were performed by the 
National Photographic Interpretation Center of the Central 
Intelligence Agency (NPIC), that document the means by which 
foreign intelligence or counterintelligence is collected 
through scientific and technical systems.

           *       *       *       *       *       *       *

    (3) Notwithstanding paragraph (1), exempted operational 
files shall continue to be subject to search and review for 
information concerning--
            (A)  * * *

           *       *       *       *       *       *       *

            (C) 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:
                    (i)  * * *

           *       *       *       *       *       *       *

                    (iv) The Office of General Counsel of 
                [NIMA] NGA.
                    (v) The Office of the Director of [NIMA] 
                NGA.

           *       *       *       *       *       *       *

    (6)(A) Except as provided in subparagraph (B), whenever any 
person who has requested agency records under section 552 of 
title 5, United States Code, alleges that [NIMA] NGA 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.
    (B) Judicial review shall not be available in the manner 
provided for under subparagraph (A) as follows:
            (i) 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 [NIMA] NGA, such information shall be 
        examined ex parte, in camera by the court.

           *       *       *       *       *       *       *

            (iv)(I) When a complainant alleges that requested 
        records were improperly withheld because of improper 
        exemption of operational files, [NIMA] NGA 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 paragraph (2).
            (II) The court may not order [NIMA] NGA to review 
        the content of any exempted operational file or files 
        in order to make the demonstration required under 
        subclause (I), unless the complainant disputes NIMA's 
        showing with a sworn written submission based on 
        personal knowledge or otherwise admissible evidence.

           *       *       *       *       *       *       *

            (vi) If the court finds under this paragraph that 
        [NIMA] NGA has improperly withheld requested records 
        because of failure to comply with any provision of this 
        subsection, the court shall order [NIMA] NGA 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 subsection.
            (vii) If at any time following the filing of a 
        complaint pursuant to this paragraph [NIMA] NGA agrees 
        to search the appropriate exempted operational file or 
        files for the requested records, the court shall 
        dismiss the claim based upon such complaint.

           *       *       *       *       *       *       *

    (b) Decennial Review of Exempted Operational Files.--(1) 
Not less than once every 10 years, the Director of the 
[National Imagery and Mapping Agency] National Geospatial-
Intelligence Agency and the Director of Central Intelligence 
shall review the exemptions in force under subsection (a)(1) to 
determine whether such exemptions may be removed from the 
category of exempted files or any portion thereof. The Director 
of Central Intelligence must approve any determination to 
remove such exemptions.

           *       *       *       *       *       *       *

    (3) A complainant that alleges that [NIMA] NGA 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 [NIMA] NGA 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 [NIMA] NGA, in fact, considered the 
        criteria set forth in paragraph (2) in conducting the 
        required review.

           *       *       *       *       *       *       *

     APPOINTMENT OF OFFICIALS RESPONSIBLE FOR INTELLIGENCE-RELATED 
                               ACTIVITIES

    Sec. 106. (a) Concurrence of DCI in Certain Appointments.--
(1)  * * *
    (2) Paragraph (1) applies to the following positions:
            (A)  * * *

           *       *       *       *       *       *       *

            (C) The Director of the [National Imagery and 
        Mapping Agency] National Geospatial-Intelligence 
        Agency.

           *       *       *       *       *       *       *

  NATIONAL MISSION OF [NATIONAL IMAGERY AND MAPPING AGENCY] NATIONAL 
                     GEOSPATIAL-INTELLIGENCE AGENCY

    Sec. 110. (a) In General.--In addition to the Department of 
Defense missions set forth in section 442 of title 10, United 
States Code, the [National Imagery and Mapping Agency] National 
Geospatial-Intelligence Agency shall support the [imagery] 
geospatial intelligence requirements of the Department of State 
and other departments and agencies of the United States outside 
the Department of Defense.
    (b) Requirements and Priorities.--The Director of Central 
Intelligence shall establish requirements and priorities 
governing the collection of national intelligence by the 
[National Imagery and Mapping Agency] National Geospatial-
Intelligence Agency under subsection (a).
    (c) Correction of Deficiencies.--The Director of Central 
Intelligence shall develop and implement such programs and 
policies as the Director and the Secretary of Defense jointly 
determine necessary to review and correct deficiencies 
identified in the capabilities of the [National Imagery and 
Mapping Agency] National Geospatial-Intelligence Agency to 
accomplish assigned national missions, including support to the 
all-source analysis and production process. The Director shall 
consult with the Secretary of Defense on the development and 
implementation of such programs and policies. The Secretary 
shall obtain the advice of the Chairman of the Joint Chiefs of 
Staff regarding the matters on which the Director and the 
Secretary are to consult under the preceding sentence.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 4004 OF THE DEFENSE ECONOMIC ADJUSTMENT, DIVERSIFICATION, 
               CONVERSION, AND STABILIZATION ACT OF 1990

SEC. 4004. CONTINUATION OF ECONOMIC ADJUSTMENT COMMITTEE

  (a)  * * *
    (b) Chairman.--[Until October 1, 1997, the] The Secretary 
of Defense shall be the chairman of the Committee. [After that, 
the chairmanship shall rotate annually among the Secretary of 
Defense, Secretary of Labor, and the Secretary of Commerce.]

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 1405 OF THE DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986

[SEC. 1405. TWO-YEAR BUDGET CYCLE FOR THE DEPARTMENT OF DEFENSE.

    [(a) Findings.--The Congress finds that the programs and 
activities of the Department of Defense could be more 
effectively and efficiently planned and managed if funds for 
the Department were provided on a two-year cycle rather than 
annually.
    [(b) Requirement for Two-Year Budget Proposal.--The 
President shall include in the budget submitted to the Congress 
pursuant to section 1105 of title 31, United States Code, for 
fiscal year 1988 a single proposed budget for the Department of 
Defense and related agencies for fiscal years 1988 and 1989. 
Thereafter, the President shall submit a proposed two-year 
budget for the Department of Defense and related agencies every 
other year.
    [(c) Report.--Not later than April 1, 1986, the Secretary 
of Defense shall submit to the Committees on Armed Services and 
on Appropriations of the Senate and House of Representatives a 
report containing the Secretary's views on the following:
            [(1) The advantages and disadvantages of operating 
        the Department of Defense and related agencies on a 
        two-year budget cycle.
            [(2) The Secretary's plans for converting to a two-
        year budget cycle.
            [(3) A description of any impediments (statutory or 
        otherwise) to converting the operations of the 
        Department of Defense and related agencies to a two-
        year budget cycle beginning with fiscal year 1988.]
                              ----------                              

           SECTION 656 OF THE FOREIGN ASSISTANCE ACT OF 1961

[SEC. 656. ANNUAL FOREIGN MILITARY TRAINING REPORT.

    [(a) Annual Report.--
            [(1) In general.--Not later than January 31 of each 
        year, the Secretary of Defense and the Secretary of 
        State shall jointly prepare and submit to the 
        appropriate congressional committees a report on all 
        military training provided to foreign military 
        personnel by the Department of Defense and the 
        Department of State during the previous fiscal year and 
        all such training proposed for the current fiscal year.
            [(2) Exception for certain countries.--Paragraph 
        (1) does not apply to any NATO member, Australia, 
        Japan, or New Zealand, unless one of the appropriate 
        congressional committees has specifically requested, in 
        writing, inclusion of such country in the report. Such 
        request shall be made not later than 90 calendar days 
        prior to the date on which the report is required to be 
        transmitted.
    [(b) Contents.--The report described in subsection (a) 
shall include the following:
            [(1) For each military training activity, the 
        foreign policy justification and purpose for the 
        activity, the number of foreign military personnel 
        provided training and their units of operation, and the 
        location of the training.
            [(2) For each country, the aggregate number of 
        students trained and the aggregate cost of the military 
        training activities.
            [(3) With respect to United States personnel, the 
        operational benefits to United States forces derived 
        from each military training activity and the United 
        States military units involved in each activity.
    [(c) Form.--The report described in subsection (a) shall be 
in unclassified form but may include a classified annex.
    [(d) Availability on Internet.--All unclassified portions 
of the report described in subsection (a) shall be made 
available to the public on the Internet through the Department 
of State.
    [(e) Definition.--In this section, the term `appropriate 
congressional committees' means--
            [(1) the Committee on Appropriations and the 
        Committee on International Relations of the House of 
        Representatives; and
            [(2) the Committee on Appropriations and the 
        Committee on Foreign Relations of the Senate.]
                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1991

           *       *       *       *       *       *       *
TITLE XXIX--DEFENSE BASE CLOSURES AND REALIGNMENTS

           *       *       *       *       *       *       *

    Part B--Other Provisions Relating to Defense Base Closures and 
                              Realignments

SEC. 2921. CLOSURE OF FOREIGN MILITARY INSTALLATIONS

    (a) * * *

           *       *       *       *       *       *       *

    (f) OMB Review of Proposed Settlements.--(1) The Secretary 
of Defense may not enter into an agreement of settlement with a 
host country regarding the release to the host country of 
improvements made by the United States to facilities at an 
installation located in the host country until [30] 14 days 
after the date on which the Secretary submits the proposed 
settlement to the Director of the Office of Management and 
Budget. The prohibition set forth in the preceding sentence 
shall apply only to agreements of settlement for improvements 
having a value in excess of $10,000,000. The Director shall 
evaluate the overall equity of the proposed settlement. In 
evaluating the proposed settlement, the Director shall consider 
such factors as the extent of the United States capital 
investment in the improvements being released to the host 
country, the depreciation of the improvements, the condition of 
the improvements, and any applicable requirements for 
environmental remediation or restoration at the installation.

           *       *       *       *       *       *       *

    (g) Congressional Oversight of Payments-In-Kind.--(1) Not 
less than [30] 14 days before concluding an agreement for 
acceptance of military construction or facility improvements as 
a payment-in-kind, the Secretary of Defense shall submit to 
Congress a notification on the proposed agreement. Any such 
notification shall contain the following:
            (A)  * * *

           *       *       *       *       *       *       *

    (2) Not less than [30] 14 days before concluding an 
agreement for acceptance of host nation support or host nation 
payment of operating costs of United States forces as a 
payment-in-kind, the Secretary of Defense shall submit to 
Congress a notification on the proposed agreement. Any such 
notification shall contain the following:
            (A)  * * *

           *       *       *       *       *       *       *

SEC. 2926. CONTRACTS FOR CERTAIN ENVIRONMENTAL RESTORATION ACTIVITIES

    (a) * * *

           *       *       *       *       *       *       *

    [(g) Report.--The Secretary of Defense shall include a 
description of the progress made during the preceding fiscal 
year in implementing and accomplishing the goals of this 
section within the annual report to Congress required by 
section 2706 of title 10, United States Code.]

           *       *       *       *       *       *       *

                              ----------                              

   NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS 1992 AND 1993

           *       *       *       *       *       *       *
TITLE VII--HEALTH CARE PROVISIONS

           *       *       *       *       *       *       *

                         Part C--Miscellaneous

SEC. 734. REGISTRY OF MEMBERS OF THE ARMED FORCES EXPOSED TO FUMES OF 
                    BURNING OIL IN CONNECTION WITH OPERATION DESERT 
                    STORM.

    (a) * * *

           *       *       *       *       *       *       *

    [(c) Reporting Requirement Relating to Exposure Studies.--
The Secretary shall submit to Congress each year, at or about 
the time that the President's budget is submitted that year 
under section 1105 of title 31, United States Code, a report 
regarding--
            [(1) the results of all on-going studies on the 
        members referred to in subsection (a)(1) to determine 
        the health consequences (including any short- or long-
        term consequences) of the exposure of such members to 
        the fumes of burning oil; and
            [(2) the need for additional studies relating to 
        the exposure of such members to such fumes.]

           *       *       *       *       *       *       *

TITLE XXVIII--GENERAL PROVISIONS

           *       *       *       *       *       *       *

   Part A--Military Construction Program and Military Family Housing 
Changes

           *       *       *       *       *       *       *

Part E--Miscellaneous

           *       *       *       *       *       *       *

SEC. 2868. REPORTS RELATING TO MILITARY CONSTRUCTION FOR FACILITIES 
                    SUPPORTING NEW WEAPON SYSTEMS.

    (a) Requirement.--[The Secretary of Defense shall submit to 
Congress with the budget submitted under section 1105 of title 
31, United States Code, for the fiscal year in which the first 
construction of a facility for the permanent basing of a new 
weapon system is to be authorized] 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 a report 
describing--
            (1)  * * *

           *       *       *       *       *       *       *

                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1995

           *       *       *       *       *       *       *
TITLE VII--HEALTH CARE PROVISIONS

           *       *       *       *       *       *       *

                    Subtitle C--Persian Gulf Illness

SEC. 721. PROGRAMS RELATED TO DESERT STORM MYSTERY ILLNESS.

    (a) * * *

           *       *       *       *       *       *       *

    [(h) Annual Report to Congress.--(1) The Secretary of 
Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives an annual report on--
            [(A) efforts taken and results achieved in 
        notifying members of the Armed Forces and their 
        families as part of the outreach program required by 
        subsection (a);
            [(B) efforts taken to revise the Physical 
        Evaluation Board disability rating criteria and interim 
        efforts to adjudicate cases before the revision of the 
        criteria; and
            [(C) results of the review and rerating of 
        previously separated servicemembers.
    [(2) The first report under paragraph (1) shall be 
submitted not later than 120 days after the date of the 
enactment of this Act.]

           *       *       *       *       *       *       *

        TITLE XIII--MATTERS RELATING TO ALLIES AND OTHER NATIONS

Subtitle A--Matters Relating to NATO

           *       *       *       *       *       *       *

SEC. 1306. GEORGE C. MARSHALL EUROPEAN CENTER FOR SECURITY STUDIES.

    (a)  * * *
    (b) Waiver of Charges.--(1) The Secretary of Defense may 
waive reimbursement of the costs of conferences, seminars, 
courses of instruction, or similar educational activities of 
the George C. Marshall European Center for Security Studies for 
military officers and civilian officials [of cooperation 
partner states of the North Atlantic Cooperation Council or the 
Partnership for Peace] from states located in Europe or the 
territory of the former Soviet Union if the Secretary 
determines that attendance by such personnel without 
reimbursement is in the national security interest of the 
United States.

           *       *       *       *       *       *       *

                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997

           *       *       *       *       *       *       *
TITLE III--OPERATION AND MAINTENANCE

           *       *       *       *       *       *       *

Subtitle C--Environmental Provisions

           *       *       *       *       *       *       *

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

    (a) * * *

           *       *       *       *       *       *       *

    [(c) Report on Compliance With Annex V to the Convention.--
The Secretary of Defense shall include in each report on 
environmental compliance activities submitted to Congress under 
section 2706(b) of title 10, United States Code, the following 
information:
            [(1) A list of the ship types, if any, for which 
        the Secretary of the Navy has made the determination 
        referred to in paragraph (2)(C) of section 3(c) of the 
        Act to Prevent Pollution from Ships, as amended by 
        subsection (a)(2) of this section.
            [(2) A list of ship types which the Secretary of 
        the Navy has determined can comply with Regulation 5 of 
        Annex V to the Convention.
            [(3) A summary of the progress made by the Navy in 
        implementing the requirements of paragraphs (2) and (3) 
        of such section 3(c), as so amended.
            [(4) A description of any emerging technologies 
        offering the potential to achieve full compliance with 
        Regulation 5 of Annex V to the Convention.
            [(5) The amount and nature of the discharges in 
        special areas, not otherwise authorized under the Act 
        to Prevent Pollution from Ships (33 U.S.C. 1901 et 
        seq.), during the preceding year from ships referred to 
        in section 3(b)(1)(A) of such Act owned or operated by 
        the Department of the Navy.]

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle F--Other Matters

           *       *       *       *       *       *       *

SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC SECURITY 
                    STUDIES.

    (a) * * *
    (b) Marshall Center Participation By Foreign Nations.--
[(1)] Notwithstanding any other provision of law, the Secretary 
of Defense may authorize participation by a European or 
Eurasian nation in Marshall Center programs if the Secretary 
determines, after consultation with the Secretary of State, 
that such participation is in the national interest of the 
United States.
    [(2) Not later than January 31 of each year, the Secretary 
of Defense shall submit to Congress a report setting forth the 
names of the foreign nations permitted to participate in 
programs of the Marshall Center during the preceding year under 
paragraph (1). Each such report shall be prepared by the 
Secretary with the assistance of the Director of the Marshall 
Center.]

           *       *       *       *       *       *       *

SEC. 1084. DEFENSE BURDENSHARING.

    (a) * * *
    (e) Report Date.--Section 1003(c) of Public Law [98-515] 
98-525 is amended by striking out ``each year'' and inserting 
``by March 1, 1998, and every other year thereafter''.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 8009 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1997

      Sec. 8009. None of the funds provided in this Act shall 
be available to initiate (1) a multiyear contract that employs 
economic order quantity procurement in excess of $20,000,000 in 
any one year of the contract or that includes an unfunded 
contingent liability in excess of $20,000,000, or (2) a 
contract for advance procurement leading to a multiyear 
contract that employs economic order quantity procurement in 
excess of $20,000,000 in any one year[, unless the 
congressional defense committees have been notified at least 
thirty days in advance of the proposed contract award]: 
Provided, That no part of any appropriation contained in this 
Act shall be available to initiate a multiyear contract for 
which the economic order quantity advance procurement is not 
funded at least to the limits of the Government's liability: 
Provided further, That no part of any appropriation contained 
in this Act shall be available to initiate multiyear 
procurement contracts for any systems or component thereof if 
the value of the multiyear contract would exceed $500,000,000 
unless specifically provided in this Act: Provided further, 
That no multiyear procurement contract can be terminated 
without 10-day prior notification to the congressional defense 
committees: Provided further, That the execution of multiyear 
authority shall require the use of a present value analysis to 
determine lowest cost compared to an annual procurement: 
Provided further, That notwithstanding Section 8010 of Public 
Law 104-61, funds appropriated for the DDG-15 destroyer program 
in Public Law 104-61 may be used to initiate a multiyear 
contract for the Raleigh Burke class destroyer program.
                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

           *       *       *       *       *       *       *
TITLE III--OPERATION AND MAINTENANCE

           *       *       *       *       *       *       *

Subtitle C--Environmental Provisions

           *       *       *       *       *       *       *

SEC. 349. PARTNERSHIPS FOR INVESTMENT IN INNOVATIVE ENVIRONMENTAL 
                    TECHNOLOGIES.

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Report.--In the annual report required under section 
2706(a) of title 10, United States Code, the Secretary of 
Defense shall include the following information with respect to 
partnerships entered into under this section:
            [(1) The number of such partnerships.
            [(2) A description of the nature of the technology 
        involved in each such partnership.
            [(3) A list of all partners in such partnerships.]

           *       *       *       *       *       *       *

                              ----------                              

 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

           *       *       *       *       *       *       *
TITLE VII--HEALTH CARE PROVISIONS

           *       *       *       *       *       *       *

                       Subtitle E--Other Matters

SEC. 745. JOINT DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS 
                    AFFAIRS REPORTS RELATING TO INTERDEPARTMENTAL 
                    COOPERATION IN THE DELIVERY OF MEDICAL CARE.

    (a)  * * *

           *       *       *       *       *       *       *

    (e) Participation in TRICARE.--[(1)] The Secretary of 
Defense shall review the TRICARE program to identify 
opportunities for increased participation by the Department of 
Veterans Affairs in that program. The ongoing collaboration 
between Department of Defense officials and Department of 
Veterans Affairs officials regarding increased participation 
shall be included among the matters reviewed.
    [(2) The Secretary of Defense and the Secretary of Veterans 
Affairs shall jointly submit to the appropriate committees of 
Congress a semiannual report on the status of the review under 
this subsection and on efforts to increase the participation of 
the Department of Veterans Affairs in the TRICARE program. No 
report is required under this paragraph after the submission of 
a semiannual report in which the Secretaries declare that the 
Department of Veterans Affairs is participating in the TRICARE 
program to the extent that can reasonably be expected to be 
attained.]

           *       *       *       *       *       *       *

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
MATTERS

           *       *       *       *       *       *       *

Subtitle A--Amendments to General Contracting Authorities, Procedures, 
and Limitations

           *       *       *       *       *       *       *

[SEC. 807. PARA-ARAMID FIBERS AND YARNS.

    [(a) Authority.--The Secretary of Defense may procure 
articles containing para-aramid fibers and yarns manufactured 
in a foreign country referred to in subsection (d) if the 
Secretary determines that--
            [(1) procuring articles that contain only para-
        aramid fibers and yarns manufactured from suppliers 
        within the national technology and industrial base 
        would result in sole-source contracts or subcontracts 
        for the supply of such para-aramid fibers and yarns; 
        and
            [(2) such sole-source contracts or subcontracts 
        would not be in the best interests of the Government or 
        consistent with the objectives of section 2304 of title 
        10, United States Code.
    [(b) Submission to Congress.--Not later than 30 days after 
making a determination under subsection (a), the Secretary 
shall submit to Congress a copy of the determination.
    [(c) Applicability to Subcontracts.--The authority under 
subsection (a) applies with respect to subcontracts under 
Department of Defense contracts as well as to such contracts.
    [(d) Foreign Countries Covered.--The authority under 
subsection (a) applies with respect to a foreign country that--
            [(1) is a party to a defense memorandum of 
        understanding entered into under section 2531 of this 
        title; and
            [(2) permits United States firms that manufacture 
        para-aramid fibers and yarns to compete with foreign 
        firms for the sale of para-aramid fibers and yarns in 
        that country, as determined by the Secretary of 
        Defense.
    [(e) Definition.--In this section, the term ``national 
technology and industrial base'' has the meaning given that 
term in section 2500 of title 10, United States Code.]

           *       *       *       *       *       *       *

Subtitle B--Other Matters

           *       *       *       *       *       *       *

SEC. 819. FIVE-YEAR AUTHORITY FOR SECRETARY OF THE NAVY TO EXCHANGE 
                    CERTAIN ITEMS.

    (a) Barter Authority.--The Secretary of the Navy may enter 
into a barter agreement to convey trucks and other tactical 
vehicles in exchange for the repair and remanufacture of ribbon 
bridges for the Marine Corps. The Secretary shall enter into 
any such agreement in accordance with [section 201(c) of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 481(c)),] section 503 of title 40, United States Code, 
and the regulations issued under such section, except that the 
requirement that the items to be exchanged be similar shall not 
apply to the authority provided under this subsection.

           *       *       *       *       *       *       *

TITLE XII--MATTERS RELATING TO OTHER NATIONS

           *       *       *       *       *       *       *

Subtitle C--Matters Relating to NATO and Europe

           *       *       *       *       *       *       *

[SEC. 1223. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN SECURITY AND 
                    DEFENSE IDENTITY.

    [(a) Requirement for Reports.--The Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives in accordance with this section reports on the 
development of the European Security and Defense Identity 
(ESDI) within the NATO Alliance that would enable the Western 
European Union (WEU), with the consent of the NATO Alliance, to 
assume the political control and strategic direction of NATO 
assets and capabilities made available by the Alliance.
    [(b) Reports To Be Submitted.--The reports required to be 
submitted under subsection (a) are as follows:
            [(1) An initial report, submitted not later than 
        December 15, 1998, that contains a discussion of the 
        actions taken, and the plans for future actions, to 
        build the European Security and Defense Identity, 
        together with the matters required under subsection 
        (c).
            [(2) A semiannual report on the progress made 
        toward establishing the European Security and Defense 
        Identity, submitted not later than June 15 and December 
        15 of each year after 1998.
    [(c) Content of Reports.--The Secretary shall include in 
each report under this section the following:
            [(1) A discussion of the arrangements between NATO 
        and the Western European Union for the release, 
        transfer, monitoring, return, and recall of NATO assets 
        and capabilities.
            [(2) A discussion of the development of such 
        planning and other capabilities by the Western European 
        Union that are necessary to provide political control 
        and strategic direction of NATO assets and 
        capabilities.
            [(3) A discussion of the development of terms of 
        reference for the Deputy Supreme Allied Commander, 
        Europe, with respect to the European Security and 
        Defense Identity.
            [(4) A discussion of the arrangements for the 
        assignment or appointment of NATO officers to serve in 
        two positions concurrently (commonly referred to as 
        ``dual-hatting'').
            [(5) A discussion of the development of the 
        Combined Joint Task Force (CJTF) concept, including 
        lessons-learned from the NATO-led Stabilization Force 
        in Bosnia.
            [(6) Identification within the NATO Alliance of the 
        types of separable but not separate capabilities, 
        assets, and support assets for Western European Union-
        led operations.
            [(7) Identification of separable but not separate 
        headquarters, headquarters elements, and command 
        positions for command and conduct of Western European 
        Union-led operations.
            [(8) The conduct by NATO, at the request of and in 
        coordination with the Western European Union, of 
        military planning and exercises for illustrative 
        missions.
            [(9) A discussion of the arrangements between NATO 
        and the Western European Union for the sharing of 
        information, including intelligence.
            [(10) Such other information as the Secretary 
        considers useful for a complete understanding of the 
        establishment of the European Security and Defense 
        Identity within the NATO Alliance.
    [(d) Termination of Reporting Requirement.--The requirement 
to submit reports under subsection (b)(2) terminates upon the 
submission by the Secretary under that subsection of a report 
in which the Secretary states that the European Security and 
Defense Identity has been fully established.]

           *       *       *       *       *       *       *

                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000

           *       *       *       *       *       *       *
TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

           *       *       *       *       *       *       *

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 212. SENSE OF CONGRESS REGARDING DEFENSE SCIENCE AND TECHNOLOGY 
                    PROGRAM.

    (a)  * * *

           *       *       *       *       *       *       *

    [(c) Certification.--If the proposed budget for a fiscal 
year covered by subsection (b) fails to comply with the 
objective set forth in that subsection--
            [(1) the Secretary of Defense shall submit to 
        Congress--
                    [(A) the certification of the Secretary 
                that the budget does not jeopardize the 
                stability of the defense technology base or 
                increase the risk of failure to maintain 
                technological superiority in future weapon 
                systems; or
                    [(B) a statement of the Secretary 
                explaining why the Secretary is unable to 
                submit such certification; and
            [(2) the Defense Science Board shall, not more than 
        60 days after the date on which the Secretary submits 
        the certification or statement under paragraph (1), 
        submit to the Secretary and Congress a report assessing 
        the effect such failure to comply is likely to have on 
        defense technology and the national defense.]

           *       *       *       *       *       *       *

TITLE VII--HEALTH CARE PROVISIONS

           *       *       *       *       *       *       *

Subtitle C--Other Matters

           *       *       *       *       *       *       *

SEC. 724. JOINT TELEMEDICINE AND TELEPHARMACY DEMONSTRATION PROJECTS BY 
                    THE DEPARTMENT OF DEFENSE AND DEPARTMENT OF 
                    VETERANS AFFAIRS.

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Report.--Not later than December 31, 2002, the 
Secretaries shall jointly submit to Congress a report on the 
demonstration projects. The report shall include--
            [(1) a description of each demonstration project; 
        and
            [(2) an evaluation, based on the demonstration 
        projects, of the feasibility and practicability of 
        using telecommunications to provide health care 
        services and pharmacy services, including the provision 
        of such services to field hospitals of the Armed Forces 
        and to Department of Veterans Affairs outpatient health 
        care clinics.]

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle D--Miscellaneous Report Requirements and Repeals

           *       *       *       *       *       *       *

SEC. 1039. REPORT ON NATO DEFENSE CAPABILITIES INITIATIVE.

    (a) * * *
    [(b) Annual Report.--(1) Not later than January 31 of each 
year, 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, to be prepared in 
consultation with the Secretary of State, on implementation of 
the Defense Capabilities Initiative by the nations of the NATO 
Alliance. The report shall include the following:
            [(A) A discussion of the work of the temporary 
        High-Level Steering Group, or any successor group, 
        established to oversee the implementation of the 
        Defense Capabilities Initiative and to meet the 
        requirement of coordination and harmonization among 
        relevant planning disciplines.
            [(B) A description of the actions taken, including 
        implementation of the Multinational Logistics Center 
        concept and development of the C3 system architecture, 
        by the Alliance as a whole to further the Defense 
        Capabilities Initiative.
            [(C) A description of the actions taken by each 
        member of the Alliance other than the United States to 
        improve the capabilities of its forces in each of the 
        following areas:
                    [(i) Interoperability with forces of other 
                Alliance members.
                    [(ii) Deployability and mobility.
                    [(iii) Sustainability and logistics.
                    [(iv) Survivability and effective 
                engagement capability.
                    [(v) Command and control and information 
                systems.
    [(2) The report shall be submitted in unclassified form, 
but may also be submitted in classified form if necessary.]

           *       *       *       *       *       *       *

                   TITLE XIII--COOPERATIVE THREAT RE-
                    DUCTION WITH STATES OF THE FOR-
MER SOVIET UNION

           *       *       *       *       *       *       *

SEC. 1305. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION.

    No fiscal year 2000 Cooperative Threat Reduction funds, and 
no funds appropriated for Cooperative Threat Reduction programs 
after the date of the enactment of this Act, may be obligated 
or expended for planning, design, or construction of a chemical 
weapons destruction facility in Russia until the Secretary of 
Defense submits to Congress a certification that there has 
been--
            (1)  * * *

           *       *       *       *       *       *       *

            (6) a demonstrated commitment from the 
        international community to fund and build 
        infrastructure needed to support and operate the 
        facility.[.]

           *       *       *       *       *       *       *

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

           *       *       *       *       *       *       *

Subtitle C--Program Authorizations, Restrictions, and Limitations

           *       *       *       *       *       *       *

[SEC. 3132. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF 
                    LEGACY NUCLEAR MATERIALS.

    [The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site, Aiken, South Carolina, 
and shall provide the technical staff necessary to operate and 
so maintain such facilities.

[SEC. 3133. NUCLEAR WEAPONS STOCKPILE LIFE EXTENSION PROGRAM.

    [(a) Program Required.--The Secretary of Energy shall, in 
consultation with the Secretary of Defense, carry out a program 
to provide for the extension of the effective life of the 
weapons in the nuclear weapons stockpile.
    [(b) Administrative Responsibility for Program.--(1) The 
program under subsection (a) shall be carried out through the 
element of the Department of Energy with responsibility for 
defense programs.
    [(2) For each budget submitted by the President to Congress 
under section 1105 of title 31, United States Code, the amounts 
requested for the program shall be clearly identified in the 
budget justification materials submitted to Congress in support 
of that budget.
    [(c) Program Plan.--As part of the program under subsection 
(a), the Secretary shall develop a long-term plan for the 
extension of the effective life of the weapons in the nuclear 
weapons stockpile. The plan shall include the following:
            [(1) Mechanisms to provide for the remanufacture, 
        refurbishment, and modernization of each weapon design 
        designated by the Secretary for inclusion in the 
        enduring nuclear weapons stockpile as of the date of 
        the enactment of this Act.
            [(2) Mechanisms to expedite the collection of 
        information necessary for carrying out the program, 
        including information relating to the aging of 
        materials and components, new manufacturing techniques, 
        and the replacement or substitution of materials.
            [(3) Mechanisms to ensure the appropriate 
        assignment of roles and missions for each nuclear 
        weapons laboratory and production plant of the 
        Department, including mechanisms for allocation of 
        workload, mechanisms to ensure the carrying out of 
        appropriate modernization activities, and mechanisms to 
        ensure the retention of skilled personnel.
            [(4) Mechanisms for allocating funds for activities 
        under the program, including allocations of funds by 
        weapon type and facility.
            [(5) An identification of the funds needed, in the 
        current fiscal year and in each of the next five fiscal 
        years, to carry out the program.
    [(d) Annual Submittal of Plan.--(1) The Secretary shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives the plan developed under 
subsection (c) not later than January 1, 2000. The plan shall 
contain the maximum level of detail practicable.
    [(2) The Secretary shall submit to the committees referred 
to in paragraph (1) each year after 2000, at the same time as 
the submission of the budget for the fiscal year beginning in 
such year under section 1105 of title 31, United States Code, 
an update of the plan submitted under paragraph (1). Each 
update shall contain the same level of detail as the plan 
submitted under paragraph (1).
    [(e) GAO Assessment.--Not later than 30 days after the 
submission of the plan under subsection (d)(1) or any update of 
the plan under subsection (d)(2), the Comptroller General shall 
submit to the committees referred to in subsection (d)(1) an 
assessment of whether the program can be carried out under the 
plan or the update (as applicable)--
            [(1) in the current fiscal year, given the budget 
        for that fiscal year; and
            [(2) in future fiscal years.
    [(f) Sense of Congress Regarding Funding of Program.--It is 
the sense of Congress that the President should include in each 
budget for a fiscal year submitted to Congress under section 
1105 of title 31, United States Code, sufficient funds to carry 
out in the fiscal year covered by such budget the activities 
under the program under subsection (a) that are specified in 
the most current version of the plan for the program under this 
section.
    [(g) Termination of Annual Updates.--Effective December 31, 
2004, the requirements of subsections (c), (d), (e), and (f) 
shall terminate.

[SEC. 3134. PROCEDURES FOR MEETING TRITIUM PRODUCTION REQUIREMENTS.

    [(a) Production of New Tritium.--The Secretary of Energy 
shall produce new tritium to meet the requirements of the 
Nuclear Weapons Stockpile Memorandum at the Tennessee Valley 
Authority Watts Bar or Sequoyah nuclear power plants consistent 
with the Secretary's December 22, 1998, decision document 
designating the Secretary's preferred tritium production 
technology.
    [(b) Support.--To support the method of tritium production 
set forth in subsection (a), the Secretary shall design and 
construct a new tritium extraction facility in the H-Area of 
the Savannah River Site, Aiken, South Carolina.
    [(c) Design and Engineering Development.--The Secretary 
shall--
            [(1) complete preliminary design and engineering 
        development of the Accelerator Production of Tritium 
        technology design as a backup source of tritium to the 
        source set forth in subsection (a) and consistent with 
        the Secretary's December 22, 1998, decision document; 
        and
            [(2) make available those funds necessary to 
        complete engineering development and demonstration, 
        preliminary design, and detailed design of key elements 
        of the system consistent with the Secretary's decision 
        document of December 22, 1998.]

           *       *       *       *       *       *       *

[SEC. 3136. NONPROLIFERATION INITIATIVES AND ACTIVITIES.

    [(a) Initiative for Proliferation Prevention Program.--(1) 
Not more than 35 percent of the funds available in any fiscal 
year after fiscal year 1999 for the Initiatives for 
Proliferation Prevention program (IPP) may be obligated or 
expended by the Department of Energy national laboratories to 
carry out or provide oversight of any activities under that 
program.
    [(2)(A) None of the funds available in any fiscal year 
after fiscal year 1999 for the Initiatives for Proliferation 
Prevention program may be used to increase or otherwise 
supplement the pay or benefits of a scientist or engineer if 
the scientist or engineer--
            [(i) is currently engaged in activities directly 
        related to the design, development, production, or 
        testing of chemical or biological weapons or a missile 
        system to deliver such weapons; or
            [(ii) was not formerly engaged in activities 
        directly related to the design, development, 
        production, or testing of weapons of mass destruction 
        or a missile system to deliver such weapons.
    [(B) None of the funds available in any fiscal year after 
fiscal year 1999 for the Initiatives for Proliferation 
Prevention program may be made available to an institute if the 
institute--
            [(i) is currently involved in activities described 
        in subparagraph (A)(i); or
            [(ii) was not formerly involved in activities 
        described in subparagraph (A)(ii).
    [(3)(A) No funds available for the Initiatives for 
Proliferation Prevention program may be provided to an 
institute or scientist under the program if the Secretary of 
Energy determines that the institute or scientist has made a 
scientific or business contact in any way associated with or 
related to weapons of mass destruction with a representative of 
a country of proliferation concern.
    [(B) For purposes of this paragraph, the term ``country of 
proliferation concern'' means any country so designated by the 
Director of Central Intelligence for purposes of the 
Initiatives for Proliferation Prevention program.
    [(4)(A) The Secretary of Energy shall prescribe procedures 
for the review of projects under the Initiatives for 
Proliferation Prevention program. The purpose of the review 
shall be to ensure the following:
            [(i) That the military applications of such 
        projects, and any information relating to such 
        applications, is not inadvertently transferred or 
        utilized for military purposes.
            [(ii) That activities under the projects are not 
        redirected toward work relating to weapons of mass 
        destruction.
            [(iii) That the national security interests of the 
        United States are otherwise fully considered before the 
        commencement of the projects.
    [(B) Not later than 30 days after the date on which the 
Secretary prescribes the procedures required by subparagraph 
(A), the Secretary shall submit to Congress a report on the 
procedures. The report shall set forth a schedule for the 
implementation of the procedures.
    [(5)(A) The Secretary shall evaluate the projects carried 
out under the Initiatives for Proliferation Prevention program 
for commercial purposes to determine whether or not such 
projects are likely to achieve their intended commercial 
objectives.
    [(B) If the Secretary determines as a result of the 
evaluation that a project is not likely to achieve its intended 
commercial objective, the Secretary shall terminate the 
project.
    [(6) Funds appropriated for the Initiatives for 
Proliferation Prevention program may not be used to pay any tax 
or customs duty levied by the government of the Russian 
Federation. In the event payment of such a tax or customs duty 
with such funds is unavoidable, the Secretary of Energy shall--
            [(A) after such payment, submit a report to the 
        congressional defense committees explaining the 
        particular circumstances making such payment under the 
        Initiatives for Proliferation Prevention program with 
        such funds unavoidable; and
            [(B) ensure that sufficient additional funds are 
        provided to the Initiatives for Proliferation 
        Prevention Program to offset the amount of such 
        payment.
    [(b) Nuclear Cities Initiative.--(1) No amounts authorized 
to be appropriated by this title for the Nuclear Cities 
Initiative may be obligated or expended for purposes of the 
initiative until the Secretary of Energy certifies to Congress 
that Russia has agreed to close some of its facilities engaged 
in work on weapons of mass destruction.
    [(2) Notwithstanding a certification under paragraph (1), 
amounts authorized to be appropriated by this title for the 
Nuclear Cities Initiative may not be obligated or expended for 
purposes of providing assistance under the initiative to more 
than three nuclear cities, and more than two serial production 
facilities, in Russia in fiscal year 2000.
    [(3)(A) The Secretary shall conduct a study of the 
potential economic effects of each commercial program proposed 
under the Nuclear Cities Initiative before providing assistance 
for the conduct of the program. The study shall include an 
assessment regarding whether or not the mechanisms for job 
creation under each program are likely to lead to the creation 
of the jobs intended to be created by that program.
    [(B) If the Secretary determines as a result of the study 
that the intended commercial benefits of a program are not 
likely to be achieved, the Secretary may not provide assistance 
for the conduct of that program.
    [(4) Not later than January 1, 2000, the Secretary shall 
submit to Congress a report describing the participation in or 
contribution to the Nuclear Cities Initiative of each 
department and agency of the United States Government that 
participates in or contributes to the initiative. The report 
shall describe separately any interagency participation in or 
contribution to the initiative.
    [(c) Report.--(1) Not later than January 1, 2000, the 
Secretary of Energy 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 Initiatives for 
Proliferation Prevention program and the Nuclear Cities 
Initiative.
    [(2) The report shall include the following:
            [(A) A strategic plan for the Initiatives for 
        Proliferation Prevention program and for the Nuclear 
        Cities Initiative, which shall establish objectives for 
        the program or initiative, as the case may be, and 
        means for measuring the achievement of such objectives.
            [(B) A list of the most successful projects under 
        the Initiatives for Proliferation Prevention program, 
        including for each such project the name of the 
        institute and scientists who are participating or have 
        participated in the project, the number of jobs created 
        through the project, and the manner in which the 
        project has met the nonproliferation objectives of the 
        United States.
            [(C) A list of the institutes and scientists 
        associated with weapons of mass destruction programs or 
        other defense-related programs in the states of the 
        former Soviet Union that the Department seeks to engage 
        in commercial work under the Initiatives for 
        Proliferation Prevention program or the Nuclear Cities 
        Initiative, including--
                    [(i) a description of the work performed by 
                such institutes and scientists under such 
                weapons of mass destruction programs or other 
                defense-related programs; and
                    [(ii) a description of any work proposed to 
                be performed by such institutes and scientists 
                under the Initiatives for Proliferation 
                Prevention program or the Nuclear Cities 
                Initiative.
    [(d) Nuclear Cities Initiative Defined.--For purposes of 
this section, the term ``Nuclear Cities Initiative'' means the 
initiative arising pursuant to the March 1998 discussions 
between the Vice President of the United States and the Prime 
Minister of the Russian Federation and between the Secretary of 
Energy of the United States and the Minister of Atomic Energy 
of the Russian Federation.]

           *       *       *       *       *       *       *

       Subtitle D--Matters Relating to Safeguards, Security, and 
Counterintelligence

           *       *       *       *       *       *       *

[SEC. 3143. BACKGROUND INVESTIGATIONS OF CERTAIN PERSONNEL AT 
                    DEPARTMENT OF ENERGY FACILITIES.

    [(a) In General.--The Secretary of Energy shall ensure that 
an investigation meeting the requirements of section 145 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2165) is made for each 
Department of Energy employee, or contractor employee, at a 
national laboratory or nuclear weapons production facility 
who--
            [(1) carries out duties or responsibilities in or 
        around a location where Restricted Data is present; or
            [(2) has or may have regular access to a location 
        where Restricted Data is present.
    [(b) Compliance.--The Secretary shall have 15 months from 
the date of the enactment of this Act to meet the requirement 
in subsection (a).]

           *       *       *       *       *       *       *

[SEC. 3145. PROTECTION OF CLASSIFIED INFORMATION DURING LABORATORY-TO-
                    LABORATORY EXCHANGES.

    [(a) Provision of Training.--The Secretary of Energy shall 
ensure that all Department of Energy employees and Department 
of Energy contractor employees participating in laboratory-to-
laboratory cooperative exchange activities are fully trained in 
matters relating to the protection of classified information 
and to potential espionage and counterintelligence threats.
    [(b) Countering of Espionage and Intelligence-Gathering 
Abroad.--(1) The Secretary shall establish a pool of Department 
employees and Department contractor employees who are specially 
trained to counter threats of espionage and intelligence-
gathering by foreign nationals against Department employees and 
Department contractor employees who travel abroad for 
laboratory-to-laboratory exchange activities or other 
cooperative exchange activities on behalf of the Department.
    [(2) The Director of Counterintelligence of the Department 
of Energy may assign at least one employee from the pool 
established under paragraph (1) to accompany a group of 
Department employees or Department contractor employees who 
travel to any nation designated to be a sensitive country for 
laboratory-to-laboratory exchange activities or other 
cooperative exchange activities on behalf of the Department.

[SEC. 3146. RESTRICTIONS ON ACCESS TO NATIONAL LABORATORIES BY FOREIGN 
                    VISITORS FROM SENSITIVE COUNTRIES.

    [(a) Background Review Required.--The Secretary of Energy 
may not admit to any facility of a national laboratory other 
than areas accessible to the general public any individual who 
is a citizen or agent of a nation that is named on the current 
sensitive countries list unless the Secretary first completes a 
background review with respect to that individual.
    [(b) Moratorium Pending Certification.--(1) During the 
period described in paragraph (2), the Secretary may not admit 
to any facility of a national laboratory other than areas 
accessible to the general public any individual who is a 
citizen or agent of a nation that is named on the current 
sensitive countries list.
    [(2) The period referred to in paragraph (1) is the period 
beginning 30 days after the date of the enactment of this Act 
and ending on the later of the following:
            [(A) The date that is 90 days after the date of the 
        enactment of this Act.
            [(B) The date that is 45 days after the date on 
        which the Secretary submits to Congress the 
        certifications described in paragraph (3).
    [(3) The certifications referred to in paragraph (2) are 
one certification each by the Director of Counterintelligence 
of the Department of Energy, the Director of the Federal Bureau 
of Investigation, and the Director of Central Intelligence, of 
each of the following:
            [(A) That the foreign visitors program at that 
        facility complies with applicable orders, regulations, 
        and policies of the Department of Energy relating to 
        the safeguarding and security of sensitive information 
        and fulfills any counterintelligence requirements 
        arising under such orders, regulations, and policies.
            [(B) That the foreign visitors program at that 
        facility complies with Presidential Decision Directives 
        and similar requirements relating to the safeguarding 
        and security of sensitive information and fulfills any 
        counterintelligence requirements arising under such 
        Directives or requirements.
            [(C) That the foreign visitors program at that 
        facility includes adequate protections against the 
        inadvertent release of Restricted Data, information 
        important to the national security of the United 
        States, and any other sensitive information the 
        disclosure of which might harm the interests of the 
        United States.
            [(D) That the foreign visitors program at that 
        facility does not pose an undue risk to the national 
        security interests of the United States.
    [(c) Waiver of Moratorium.--(1) The Secretary of Energy may 
waive the prohibition in subsection (b) on a case-by-case basis 
with respect to any specific individual or any specific 
delegation of individuals whose admission to a national 
laboratory is determined by the Secretary to be in the interest 
of the national security of the United States.
    [(2) Not later than the seventh day of the month following 
a month in which a waiver is made, the Secretary shall submit a 
report in writing providing notice of each waiver made in that 
month to 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.
    [(3) Each such report shall be in classified form and shall 
contain the identity of each individual or delegation for whom 
such a waiver was made and, with respect to each such 
individual or delegation, the following information:
            [(A) A detailed justification for the waiver.
            [(B) For each individual with respect to whom a 
        background review was conducted, whether the background 
        review determined that negative information exists with 
        respect to that individual.
            [(C) The Secretary's certification that the 
        admission of that individual or delegation to a 
        national laboratory is in the interest of the national 
        security of the United States.
    [(4) The authority of the Secretary under paragraph (1) may 
be delegated only to the Director of Counterintelligence of the 
Department of Energy.
    [(d) Exception to Moratorium for Certain Individuals.--The 
moratorium under subsection (b) shall not apply to any person 
who--
            [(1) is, on the date of the enactment of this Act, 
        an employee or assignee of the Department of Energy, or 
        of a contractor of the Department; and
            [(2) has undergone a background review in 
        accordance with subsection (a).
    [(e) Exception to Moratorium for Certain Programs.--The 
moratorium under subsection (b) shall not apply--
            [(1) to activities relating to cooperative threat 
        reduction with states of the former Soviet Union; or
            [(2) to the materials protection control and 
        accounting program of the Department.
    [(f) Sense of Congress Regarding Background Reviews.--It is 
the sense of Congress that the Secretary of Energy, the 
Director of the Federal Bureau of Investigation, and the 
Director of Central Intelligence should ensure that background 
reviews carried out under this section are completed in not 
more than 15 days.
    [(g) Definitions.--For purposes of this section:
            [(1) The term ``background review'', commonly known 
        as an indices check, means a review of information 
        provided by the Director of Central Intelligence and 
        the Director of the Federal Bureau of Investigation 
        regarding personal background, including information 
        relating to any history of criminal activity or to any 
        evidence of espionage.
            [(2) The term ``sensitive countries list'' means 
        the list prescribed by the Secretary of Energy known as 
        the Department of Energy List of Sensitive Countries as 
        in effect on January 1, 1999.]

           *       *       *       *       *       *       *

[SEC. 3149. SUPPLEMENT TO PLAN FOR DECLASSIFICATION OF RESTRICTED DATA 
                    AND FORMERLY RESTRICTED DATA.

    [(a) Supplement to Plan.--The Secretary of Energy and the 
Archivist of the United States shall, after consultation with 
the members of the National Security Council and in 
consultation with the Secretary of Defense and the heads of 
other appropriate Federal agencies, develop a supplement to the 
plan required under 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).
    [(b) Contents of Supplement.--The supplement shall provide 
for the application of that plan (including in particular the 
element of the plan required by section 3161(b)(1) of that Act) 
to all records subject to Executive Order No. 12958 that were 
determined before the date of the enactment of that Act to be 
suitable for declassification.
    [(c) Limitation on Declassification of Records.--All 
records referred to in subsection (b) shall be treated, for 
purposes of section 3161(c) of that Act, in the same manner as 
records referred to in section 3161(a) of that Act.
    [(d) Submission of Supplement.--The Secretary of Energy 
shall submit the supplement required under subsection (a) to 
the recipients of the plan referred to in section 3161(d) of 
that Act.]

           *       *       *       *       *       *       *

       Subtitle D--Matters Relating to Safeguards, Security, and 
Counterintelligence

           *       *       *       *       *       *       *

[SEC. 3150. NOTICE TO CONGRESSIONAL COMMITTEES OF CERTAIN SECURITY AND 
                    COUNTERINTELLIGENCE FAILURES WITHIN NUCLEAR ENERGY 
                    DEFENSE PROGRAMS.

    [(a) Required Notification.--The Secretary of Energy shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a notification of each significant 
nuclear defense intelligence loss. Any such notification shall 
be provided only after consultation with the Director of 
Central Intelligence and the Director of the Federal Bureau of 
Investigation, as appropriate.
    [(b) Significant Nuclear Defense Intelligence Losses.--In 
this section, the term ``significant nuclear defense 
intelligence loss'' means any national security or 
counterintelligence failure or compromise of classified 
information at a facility of the Department of Energy or 
operated by a contractor of the Department that the Secretary 
considers likely to cause significant harm or damage to the 
national security interests of the United States.
    [(c) Manner of Notification.--Notification of a significant 
nuclear defense intelligence loss under subsection (a) shall be 
provided, in accordance with the procedures established 
pursuant to subsection (d), not later than 30 days after the 
date on which the Department of Energy determines that the loss 
has taken place.
    [(d) Procedures.--The Secretary of Energy and the 
Committees on Armed Services of the Senate and House of 
Representatives shall each establish such procedures as may be 
necessary to protect from unauthorized disclosure classified 
information, information relating to intelligence sources and 
methods, and sensitive law enforcement information that is 
submitted to those committees pursuant to this section and that 
are otherwise necessary to carry out the provisions of this 
section.
    [(e) Statutory Construction.--(1) Nothing in this section 
shall be construed as authority to withhold any information 
from the Committees on Armed Services of the Senate and House 
of Representatives on the grounds that providing the 
information to those committees would constitute the 
unauthorized disclosure of classified information, information 
relating to intelligence sources and methods, or sensitive law 
enforcement information.
    [(2) Nothing in this section shall be construed to modify 
or supersede any other requirement to report information on 
intelligence activities to the Congress, including the 
requirement under section 501 of the National Security Act of 
1947 (50 U.S.C. 413) for the President to ensure that the 
congressional intelligence committees are kept fully informed 
of the intelligence activities of the United States and for 
those committees to notify promptly other congressional 
committees of any matter relating to intelligence activities 
requiring the attention of those committees.]

           *       *       *       *       *       *       *

[SEC. 3152. REPORT ON COUNTERINTELLIGENCE AND SECURITY PRACTICES AT 
                    NATIONAL LABORATORIES.

    [(a) In General.--Not later than March 1 of each year, the 
Secretary of Energy shall submit to the Congress a report for 
the preceding year on counterintelligence and security 
practices at the facilities of the national laboratories 
(whether or not classified activities are carried out at the 
facility).
    [(b) Content of Report.--The report shall include, with 
respect to each national laboratory, the following:
            [(1) The number of employees, including full-time 
        counterintelligence and security professionals and 
        contractor employees.
            [(2) A description of the counterintelligence and 
        security training courses conducted and, for each such 
        course, any requirement that employees successfully 
        complete that course.
            [(3) A description of each contract awarded that 
        provides an incentive for the effective performance of 
        counterintelligence or security activities.
            [(4) A description of the requirement that an 
        employee report the travel to sensitive countries of 
        that employee (whether or not the travel was for 
        official business).
            [(5) The number of trips by individuals who 
        traveled to sensitive countries, with identification of 
        the sensitive countries visited.

[SEC. 3153. REPORT ON SECURITY VULNERABILITIES OF NATIONAL LABORATORY 
                    COMPUTERS.

    [(a) Report Required.--Not later than March 1 of each year, 
the National Counterintelligence Policy Board shall prepare a 
report on the security vulnerabilities of the computers of the 
national laboratories.
    [(b) Preparation of Report.--In preparing the report, the 
National Counterintelligence Policy Board shall establish a so-
called ``red team'' of individuals to perform an operational 
evaluation of the security vulnerabilities of the computers of 
one or more national laboratories, including by direct 
experimentation. Such individuals shall be selected by the 
National Counterintelligence Policy Board from among employees 
of the Department of Defense, the National Security Agency, the 
Central Intelligence Agency, the Federal Bureau of 
Investigation, and of other agencies, and may be detailed to 
the National Counterintelligence Policy Board from such 
agencies without reimbursement and without interruption or loss 
of civil service status or privilege.
    [(c) Submission of Report to Secretary of Energy and to FBI 
Director.--Not later than March 1 of each year, the report 
shall be submitted in classified and unclassified form to the 
Secretary of Energy and the Director of the Federal Bureau of 
Investigation.
    [(d) Forwarding to Congressional Committees.--Not later 
than 30 days after the report is submitted, the Secretary and 
the Director shall each separately forward that report, with 
the recommendations in classified and unclassified form of the 
Secretary or the Director, as applicable, in response to the 
findings of that report, to the following:
            [(1) The Committee on Armed Services and the Select 
        Committee on Intelligence of the Senate.
            [(2) The Committee on Armed Services and the 
        Permanent Select Committee on Intelligence of the House 
        of Representatives.
    [(e) First Report.--The first report under this section 
shall be the report for the year 2000. That report shall cover 
each of the national laboratories.

[SEC. 3154. COUNTERINTELLIGENCE POLYGRAPH PROGRAM.

    [(a) Program Required.--The Secretary of Energy, acting 
through the Director of Counterintelligence, shall carry out a 
counterintelligence polygraph program for the defense-related 
activities of the Department. The counterintelligence polygraph 
program shall consist of the administration of 
counterintelligence polygraph examinations to each covered 
person who has access to high-risk programs.
    [(b) Covered Persons.--(1) Subject to paragraph (2), for 
purposes of this section, a covered person is one of the 
following:
            [(A) An officer or employee of the Department.
            [(B) An expert or consultant under contract to the 
        Department.
            [(C) An officer or employee of a contractor of the 
        Department.
            [(D) An individual assigned or detailed to the 
        Department.
            [(E) An applicant for a position in the Department.
    [(2) A person described in paragraph (1) is a covered 
person for purposes of this section only if the position of the 
person, or for which the person is applying, under that 
paragraph is a position in one of the categories of positions 
listed in section 709.4(a) of title 10, Code of Federal 
Regulations.
    [(c) High-Risk Programs.--For purposes of this section, 
high-risk programs are the following:
            [(1) Programs using information known as Sensitive 
        Compartmented Information.
            [(2) The programs known as Special Access Programs 
        and Personnel Security and Assurance Programs.
            [(3) Any other program or position category 
        specified in section 709.4(a) of title 10, Code of 
        Federal Regulations.
    [(d) Initial Testing and Consent.--(1) The Secretary may 
not permit a covered person to have initial access to any high-
risk program unless that person first undergoes a 
counterintelligence polygraph examination and consents in a 
signed writing to the counterintelligence polygraph 
examinations required by this section.
    [(2) Subject to paragraph (3), the Secretary may, after 
consultation with appropriate security personnel, waive the 
applicability of paragraph (1) to a covered person--
            [(A) if--
                    [(i) the Secretary determines that the 
                waiver is important to the national security 
                interests of the United States;
                    [(ii) the covered person has an active 
                security clearance; and
                    [(iii) the covered person acknowledges in a 
                signed writing that the capacity of the covered 
                person to perform duties under a high-risk 
                program after the expiration of the waiver is 
                conditional upon meeting the requirements of 
                paragraph (1) within the effective period of 
                the waiver;
            [(B) if another Federal agency certifies to the 
        Secretary that the covered person has completed 
        successfully a full-scope or counterintelligence-scope 
        polygraph examination during the 5-year period ending 
        on the date of the certification; or
            [(C) if the Secretary determines, after 
        consultation with the covered person and appropriate 
        medical personnel, that the treatment of a medical or 
        psychological condition of the covered person should 
        preclude the administration of the examination.
    [(3)(A) The Secretary may not commence the exercise of the 
authority under paragraph (2) to waive the applicability of 
paragraph (1) to any covered persons until 15 days after the 
date on which the Secretary submits to the appropriate 
committees of Congress a report setting forth the criteria to 
be used by the Secretary for determining when a waiver under 
paragraph (2)(A) is important to the national security 
interests of the United States. The criteria shall not include 
the need to maintain the scientific vitality of the laboratory. 
The criteria shall include an assessment of counterintelligence 
risks and programmatic impacts.
    [(B) Any waiver under paragraph (2)(A) shall be effective 
for not more than 120 days, and a person who is subject to a 
waiver under paragraph (2)(A) may not ever be subject to 
another waiver under paragraph (2)(A).
    [(C) Any waiver under paragraph (2)(C) shall be effective 
for the duration of the treatment on which such waiver is 
based.
    [(4) The Secretary shall submit to the appropriate 
committees of Congress on a semi-annual basis a report on any 
determinations made under paragraph (2)(A) during the 6-month 
period ending on the date of such report. The report shall 
include a national security justification for each waiver 
resulting from such determinations.
    [(5) In this subsection, 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.
    [(6) It is the sense of Congress that the waiver authority 
in paragraph (2) not be used by the Secretary to exempt from 
the applicability of paragraph (1) any covered persons in the 
highest risk categories, such as persons who have access to the 
most sensitive weapons design information and other highly 
sensitive programs, including special access programs.
    [(7) The authority under paragraph (2) to waive the 
applicability of paragraph (1) to a covered person shall expire 
on September 30, 2002.
    [(e) Additional Testing.--The Secretary may not permit a 
covered person to have continued access to any high-risk 
program unless that person undergoes a counterintelligence 
polygraph examination within five years after that person has 
initial access, and thereafter--
            [(1) not less frequently than every five years; and
            [(2) at any time at the direction of the Director 
        of Counterintelligence.
    [(f) Counterintelligence Polygraph Examination.--For 
purposes of this section, the term ``counterintelligence 
polygraph examination'' means a polygraph examination using 
questions reasonably calculated to obtain counterintelligence 
information, including questions relating to espionage, 
sabotage, terrorism, unauthorized disclosure of classified 
information, deliberate damage to or malicious misuse of a 
United States Government information or defense system, and 
unauthorized contact with foreign nationals.
    [(g) Regulations.--The Secretary shall prescribe any 
regulations necessary to carry out this section. Those 
regulations shall include procedures, to be developed in 
consultation with the Federal Bureau of Investigation, for--
            [(1) identifying and addressing ``false positive'' 
        results of polygraph examinations; and
            [(2) ensuring that adverse personnel actions not be 
        taken against an individual solely by reason of that 
        individual's physiological reaction to a question in a 
        polygraph examination, unless reasonable efforts are 
        first made to independently determine through 
        alternative means the veracity of that individual's 
        response to that question.
    [(h) Plan for Extension of Program.--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 plan on extending the program required by 
this section. The plan shall provide for the administration of 
counterintelligence polygraph examinations in accordance with 
the program to each covered person who has access to--
            [(1) the programs known as Personnel Assurance 
        Programs; and
            [(2) the information identified as Sensitive 
        Compartmented Information.]

           *       *       *       *       *       *       *

[SEC. 3164. WHISTLEBLOWER PROTECTION PROGRAM.

    [(a) Program Required.--The Secretary of Energy shall 
establish a program to ensure that covered individuals may not 
be discharged, demoted, or otherwise discriminated against as a 
reprisal for making protected disclosures.
    [(b) Covered Individuals.--For purposes of this section, a 
covered individual is an individual who is an employee of the 
Department of Energy, or of a contractor of the Department, who 
is engaged in the defense activities of the Department.
    [(c) Protected Disclosures.--For purposes of this section, 
a protected disclosure is a disclosure--
            [(1) made by a covered individual who takes 
        appropriate steps to protect the security of the 
        information in accordance with guidance provided under 
        this section;
            [(2) made to a person or entity specified in 
        subsection (d); and
            [(3) of classified or other information that the 
        covered individual reasonably believes to provide 
        direct and specific evidence of any of the following:
                    [(A) A violation of law or Federal 
                regulation.
                    [(B) Gross mismanagement, a gross waste of 
                funds, or abuse of authority.
                    [(C) A false statement to Congress on an 
                issue of material fact.
    [(d) Persons and Entities to Which Disclosures May Be 
Made.--A person or entity specified in this subsection is any 
of the following:
            [(1) A member of a committee of Congress having 
        primary responsibility for oversight of the department, 
        agency, or element of the Government to which the 
        disclosed information relates.
            [(2) An employee of Congress who is a staff member 
        of such a committee and has an appropriate security 
        clearance for access to information of the type 
        disclosed.
            [(3) The Inspector General of the Department of 
        Energy.
            [(4) The Federal Bureau of Investigation.
            [(5) Any other element of the Government designated 
        by the Secretary as authorized to receive information 
        of the type disclosed.
    [(e) Official Capacity of Persons to Whom Information is 
Disclosed.--A member of, or an employee of Congress who is a 
staff member of, a committee of Congress specified in 
subsection (d) who receives a protected disclosure under this 
section does so in that member or employee's official capacity 
as such a member or employee.
    [(f) Assistance and Guidance.--The Secretary, acting 
through the Inspector General of the Department of Energy, 
shall provide assistance and guidance to each covered 
individual who seeks to make a protected disclosure under this 
section. Such assistance and guidance shall include the 
following:
            [(1) Identifying the persons or entities under 
        subsection (d) to which that disclosure may be made.
            [(2) Advising that individual regarding the steps 
        to be taken to protect the security of the information 
        to be disclosed.
            [(3) Taking appropriate actions to protect the 
        identity of that individual throughout that disclosure.
            [(4) Taking appropriate actions to coordinate that 
        disclosure with any other Federal agency or agencies 
        that originated the information.
    [(g) Regulations.--The Secretary shall prescribe 
regulations to ensure the security of any information disclosed 
under this section.
    [(h) Notification to Covered Individuals.--The Secretary 
shall notify each covered individual of the following:
            [(1) The rights of that individual under this 
        section.
            [(2) The assistance and guidance provided under 
        this section.
            [(3) That the individual has a responsibility to 
        obtain that assistance and guidance before seeking to 
        make a protected disclosure.
    [(i) Complaint by Covered Individuals.--If a covered 
individual believes that that individual has been discharged, 
demoted, or otherwise discriminated against as a reprisal for 
making a protected disclosure under this section, the 
individual may submit a complaint relating to such matter to 
the Director of the Office of Hearings and Appeals of the 
Department of Energy.
    [(j) Investigation by Office of Hearings and Appeals.--(1) 
For each complaint submitted under subsection (i), the Director 
of the Office of Hearings and Appeals shall--
            [(A) determine whether or not the complaint is 
        frivolous; and
            [(B) if the Director determines the complaint is 
        not frivolous, conduct an investigation of the 
        complaint.
    [(2) The Director shall submit a report on each 
investigation undertaken under paragraph (1)(B) to--
            [(A) the individual who submitted the complaint on 
        which the investigation is based;
            [(B) the contractor concerned, if any; and
            [(C) the Secretary of Energy.
    [(k) Remedial Action.--(1) Whenever the Secretary 
determines that a covered individual has been discharged, 
demoted, or otherwise discriminated against as a reprisal for 
making a protected disclosure under this section, the Secretary 
shall--
            [(A) in the case of a Department employee, take 
        appropriate actions to abate the action; or
            [(B) in the case of a contractor employee, order 
        the contractor concerned to take appropriate actions to 
        abate the action.
    [(2)(A) If a contractor fails to comply with an order 
issued under paragraph (1)(B), the Secretary may file an action 
for enforcement of the order in the appropriate United States 
district court.
    [(B) In any action brought under subparagraph (A), the 
court may grant appropriate relief, including injunctive relief 
and compensatory and exemplary damages.
    [(l) Relationship to Other Laws.--The protections provided 
by this section are independent of, and not subject to any 
limitations that may be provided in, the Whistleblower 
Protection Act of 1989 (Public Law 101-512) or any other law 
that may provide protection for disclosures of information by 
employees of the Department of Energy or of a contractor of the 
Department.
    [(m) Annual Report.--(1) Not later than 30 days after the 
commencement of each fiscal year, the Director 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 investigations undertaken under subsection (j)(1)(B) during 
the preceding fiscal year, including a summary of the results 
of each such investigation.
    [(2) A report under paragraph (1) may not identify or 
otherwise provide any information about an individual 
submitting a complaint under this section without the consent 
of the individual.
    [(n) Implementation Report.--Not later than 60 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 describing the implementation of the program required by 
this section.]

Subtitle F--Other Matters

           *       *       *       *       *       *       *

[SEC. 3172. INTEGRATED FISSILE MATERIALS MANAGEMENT PLAN.

    [(a) Plan.--The Secretary of Energy shall develop a long-
term plan for the integrated management of fissile materials by 
the Department of Energy. The plan shall--
            [(1) identify means of coordinating or integrating 
        the responsibilities of the Office of Environmental 
        Management, the Office of Fissile Materials 
        Disposition, the Office of Nuclear Energy, and the 
        Office of Defense Programs for the treatment, storage 
        and disposition of fissile materials, and for the waste 
        streams containing fissile materials, in order to 
        achieve budgetary and other efficiencies in the 
        discharge of those responsibilities; and
            [(2) identify any expenditures necessary at the 
        sites that are anticipated to have an enduring mission 
        for plutonium management in order to achieve the 
        integrated management of fissile materials by the 
        Department.
    [(b) Submittal to Congress.--The Secretary shall submit the 
plan required by subsection (a) to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives not later than March 31, 2000.

[SEC. 3173. IDENTIFICATION IN BUDGET MATERIALS OF AMOUNTS FOR 
                    DECLASSIFICATION ACTIVITIES AND LIMITATION ON 
                    EXPENDITURES FOR SUCH ACTIVITIES.

    [(a) Amounts for Declassification of Records.--The 
Secretary of Energy shall include in the budget justification 
materials submitted to Congress in support of the Department of 
Energy budget for any fiscal year (as submitted with the budget 
of the President under section 1105(a) of title 31, United 
States Code) specific identification, as a budgetary line item, 
of the amounts required to carry out programmed activities 
during that fiscal year to declassify records pursuant to 
Executive Order No. 12958 (50 U.S.C. 435 note), or any 
successor Executive order, or to comply with any statutory 
requirement to declassify Government records.
    [(b) Certification Required With Respect To Automatic 
Declassification of Records.--No records of the Department of 
Energy that have not as of October 5, 1999, been reviewed for 
declassification shall be subject to automatic declassification 
unless the Secretary of Energy certifies to Congress that such 
declassification would not harm the national security.
    [(c) Report on Automatic Declassification of Department of 
Energy Records.--Not later than February 1, 2001, the Secretary 
of Energy shall submit to the Committee on Armed Services of 
the House of Representatives and the Committee on Armed 
Services of the Senate a report on the efforts of the 
Department of Energy relating to the declassification of 
classified records under the control of the Department of 
Energy. Such report shall include the following:
            [(1) An assessment of whether the Department will 
        be able to review all relevant records for 
        declassification before any date established for 
        automatic declassification.
            [(2) An estimate of the number of records, if any, 
        that the Department will be unable to review for 
        declassification before any such date and the effect on 
        national security of the automatic declassification of 
        those records.
            [(3) An estimate of the length of time by which any 
        such date would need to be extended to avoid the 
        automatic declassification of records that have not yet 
        been reviewed as of such date.]

           *       *       *       *       *       *       *

                TITLE XXXIV--NATIONAL DEFENSE STOCKPILE

           *       *       *       *       *       *       *
SEC. 3402. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.

    (a) * * *
    (b) Management of Disposal To Achieve Objectives for 
Receipts.--The President shall manage the disposal of materials 
under subsection (a) so as to result in receipts to the United 
States in amounts equal to--
            (1) $10,000,000 during fiscal year 2000;
            (2) $100,000,000 during the 5-fiscal year period 
        ending September 30, 2004; [and]
            [(3) $300,000,000 during the 10-fiscal year period 
        ending September 30, 2009.]
            (3) $310,000,000 before the end of fiscal year 
        2008; and
            (4) $320,000,000 before the end of fiscal year 
        2009.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 125 OF THE MILITARY CONSTRUCTION APPROPRIATIONS ACT, 2001

    [Sec. 125. (a) Not later than 60 days before issuing any 
solicitation for a contract with the private sector for 
military family housing the Secretary of the military 
department concerned shall submit to the congressional defense 
committees the notice described in subsection (b).
    [(b)(1) A notice referred to in subsection (a) is a notice 
of any guarantee (including the making of mortgage or rental 
payments) proposed to be made by the Secretary to the private 
party under the contract involved in the event of--
            [(A) the closure or realignment of the installation 
        for which housing is provided under the contract;
            [(B) a reduction in force of units stationed at 
        such installation; or
            [(C) the extended deployment overseas of units 
        stationed at such installation.
    [(2) Each notice under this subsection shall specify the 
nature of the guarantee involved and assess the extent and 
likelihood, if any, of the liability of the Federal Government 
with respect to the guarantee.
    [(c) In this section, the term ``congressional defense 
committees'' means the following:
            [(1) The Committee on Armed Services and the 
        Military Construction Subcommittee, Committee on 
        Appropriations of the Senate.
            [(2) The Committee on Armed Services and the 
        Military Construction Subcommittee, Committee on 
        Appropriations of the House of Representatives.]
                              ----------                              

   SECTION 8019 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2001

    Sec. 8019. Notwithstanding any other provision of law, 
during the current fiscal year, the Secretary of Defense may, 
by executive agreement, establish with host nation governments 
in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United 
States military installations in NATO member states may be 
deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: 
Provided, That such credits may be utilized only for the 
construction of facilities to support United States military 
forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through 
monetary transfers to such host nations: Provided further, That 
the Department of Defense's budget submission for fiscal year 
2002 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property 
maintenance or base operating costs that shall be funded by the 
host nation through such credits: Provided further, That all 
military construction projects to be executed from such 
accounts must be previously approved in a prior Act [of 
Congress: Provided further, That each such executive agreement 
with a NATO member host nation shall be reported to the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate 30 days prior to 
the conclusion and endorsement of any such agreement 
established under this provision] of Congress.
                              ----------                              

FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001

           *       *       *       *       *       *       *

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

           *       *       *       *       *       *       *

  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
MATTERS

           *       *       *       *       *       *       *

Subtitle B--Information Technology

           *       *       *       *       *       *       *

SEC. 814. NAVY-MARINE CORPS INTRANET.

    (a)  * * *

           *       *       *       *       *       *       *

    (d) Applicability of Statutory and Regulatory 
Requirements.--The acquisition of a Navy-Marine Corps Intranet 
shall be managed by the Department of the Navy in accordance 
with the requirements of--
            (1) [the Clinger-Cohen Act of 1996 (divisions D and 
        E of Public Law 104-106)] subtitle III of title 40, 
        United States Code, including the requirement for 
        utilizing modular contracting in accordance with 
        section 38 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 434); and

           *       *       *       *       *       *       *

             Subtitle C--Other Acquisition-Related Matters

SEC. 821. IMPROVEMENTS IN PROCUREMENTS OF SERVICES.

    (a)  * * *
    [(b) Incentive for Use of Performance-Based Service 
Contracts.--(1) A Department of Defense performance-based 
service contract or performance-based task order may be treated 
as a contract for the procurement of commercial items if--
            [(A) the contract or task order is valued at 
        $5,000,000 or less;
            [(B) the contract or task order sets forth 
        specifically each task to be performed and, for each 
        task--
                    [(i) defines the task in measurable, 
                mission-related terms;
                    [(ii) identifies the specific end products 
                or output to be achieved; and
                    [(iii) contains a firm fixed price; and
            [(C) the source of the services provides similar 
        services contemporaneously to the general public under 
        terms and conditions similar to those offered to the 
        Federal Government.
    [(2) The special simplified procedures provided in the 
Federal Acquisition Regulation pursuant to section 
2304(g)(1)(B) of title 10, United States Code, shall not apply 
to a performance-based service contract or performance-based 
task order that is treated as a contract for the procurement of 
commercial items under paragraph (1).
    [(3) Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General shall submit a report on 
the implementation of this subsection to the congressional 
defense committees.
    [(4) The authority under this subsection shall not apply to 
contracts entered into or task orders issued more than 3 years 
after the date of the enactment of this Act.]

           *       *       *       *       *       *       *

TITLE X--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle A--Financial Matters

           *       *       *       *       *       *       *

SEC. 1006. REQUIREMENT FOR PROMPT PAYMENT OF CONTRACT VOUCHERS.

    (a)  * * *

           *       *       *       *       *       *       *

    [(c) Conditional Requirement for Report.--(1) If for any 
month of the noncompliance reporting period the requirement in 
section 2226 of title 10, United States Code (as added by 
subsection (a)), is not met, 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 
report on the magnitude of the unpaid contract vouchers. The 
report for a month shall be submitted not later than 30 days 
after the end of that month.
    [(2) A report for a month under paragraph (1) shall include 
information current as of the last day of the month as follows:
            [(A) The number of the vouchers received by the 
        Defense Finance and Accounting Service by means of the 
        mechanization of contract administration services 
        system during each month.
            [(B) The number of the vouchers so received, 
        whenever received by the Defense Finance and Accounting 
        Service, that remain unpaid for each of the following 
        periods:
                    [(i) Over 30 days and not more than 60 
                days.
                    [(ii) Over 60 days and not more than 90 
                days.
                    [(iii) More than 90 days.
            [(C) The number of the vouchers so received that 
        remain unpaid for the major categories of procurements, 
        as defined by the Secretary of Defense.
            [(D) The corrective actions that are necessary, and 
        those that are being taken, to ensure compliance with 
        the requirement in subsection (a).
    [(3) For purposes of this subsection:
            [(A) The term ``noncompliance reporting period'' 
        means the period beginning on December 1, 2000, and 
        ending on November 30, 2004.
            [(B) The term ``contract voucher'' has the meaning 
        given that term in section 2226(b) of title 10, United 
        States Code (as added by subsection (a)).]

           *       *       *       *       *       *       *

  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
SOVIET UNION

           *       *       *       *       *       *       *

SEC. 1308. REPORTS ON ACTIVITIES AND ASSISTANCE UNDER COOPERATIVE 
                    THREAT REDUCTION PROGRAMS.

    (a)  * * *

           *       *       *       *       *       *       *

    (c) Matters To Be Included.--The report under subsection 
(a) in a year shall set forth the following:
            (1)  * * *

           *       *       *       *       *       *       *

            [(6)] (7) To the maximum extent practicable, a 
        description of how revenue generated by activities 
        carried out under Cooperative Threat Reduction programs 
        in recipient States is being utilized, monitored, and 
        accounted for.
            [(7)] (8) A description of the defense and military 
        activities carried out under Cooperative Threat 
        Reduction programs during the fiscal year ending in the 
        year preceding the year of the report, including--
                    (A)  * * *

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 8009 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2002

    Sec. 8009. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby 
appropriated pursuant to section 401 of title 10, United States 
Code, for humanitarian and civic assistance costs under chapter 
20 of title 10, United States Code. Such funds may also be 
obligated for humanitarian and civic assistance costs 
incidental to authorized operations and pursuant to authority 
granted in section 401 of chapter 20 of title 10, United States 
Code[, and these obligations shall be reported to the Congress] 
as of September 30 of each year: Provided, That funds available 
for operation and maintenance shall be available for providing 
humanitarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact of 
Free Association as authorized by Public Law 99-239: Provided 
further, That upon a determination by the Secretary of the Army 
that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in 
Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to 
such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam.
                              ----------                              

SECTION 1121 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS 
                             1988 AND 1989

[SEC. 1121. 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 (d), 
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 4.2(a) of Executive Order 12356 (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.
  [(c) Limitation on Number of Examinations.--The number of 
counterintelligence polygraph examinations that may be 
administered under this section may not exceed 5,000 during any 
fiscal year
  [(d) Exceptions From Coverage for Certain Intelligence 
Agencies and Functions.--This section does not apply--
          [(1) to 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) to (A) a person 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) to a person assigned to a space where sensitive 
        cryptographic information is produced, processed, or 
        stored; or
          [(4) to 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.
  [(e) Polygraph Research Program.--The Secretary of Defense 
shall carry out a continuing research program to support the 
polygraph 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.
  [(f) Annual Report on Polygraph Programs.--(1) Not later than 
January 15 of each year, the Secretary of Defense shall submit 
to Congress a report on polygraph examinations administered by 
or for the Department of Defense during the previous fiscal 
year (whether administered under this section or any other 
authority).
  [(2) Each such report shall include the following with regard 
to the program authorized by subsection (a):
          [(A) A statement of the number of polygraph 
        examinations administered by or for the Department of 
        Defense during such fiscal year.
          [(B) A description of the purposes and results of 
        such examinations.
          [(C) A description of the criteria used for selecting 
        programs and persons for such examination.
          [(D) A statement of the number of persons who refused 
        to submit to such an examination and a description of 
        the actions taken as a result of the refusals.
          [(E) A statement of the number of persons for which 
        such an examination indicated deception and the action 
        taken as a result of the examinations.
          [(F) A detailed accounting of those cases in which 
        more than two such examinations were needed to attempt 
        to resolve discrepancies and those cases in which the 
        examination of a person extended over more than one 
        day.
  [(3) Each such report shall also include the following:
          [(A) A description of any plans to expand the use of 
        polygraph examinations in the Department of Defense.
          [(B) A discussion of any plans of the Secretary for 
        recruiting and training additional polygraph operators 
        together with statistical data on the employment 
        turnover of Department of Defense polygraph operators.
          [(C) A description of the results during the 
        preceding fiscal year of the research program under 
        subsection (e).
          [(D) A statement of the number of polygraph 
        examinations administered to persons described in 
        subsection (d) (which number may be set forth in a 
        classified annex to the report).
  [(g) Repeal.--Section 1221 of the Department of Defense 
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 726), is 
repealed.
  [(h) Effective Date.--This section shall take effect as of 
October 1, 1987.]
                              ----------                              

   SECTION 8053 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1998

    [Sec. 8053. None of the funds provided in this Act and 
hereafter shall be available for use by a military department 
to modify an aircraft, weapon, ship or other item of equipment, 
that the military department concerned plans to retire or 
otherwise dispose of within 5 years after completion of the 
modification: Provided, That this prohibition shall not apply 
to safety modifications: Provided further, That this 
prohibition may be waived by the Secretary of a military 
department if the Secretary determines it is in the best 
national security interest of the United States to provide such 
waiver and so notifies the congressional defense committees in 
writing.]
                              ----------                              

FEDERAL ACQUISITION STREAMLINING ACT OF 1994

           *       *       *       *       *       *       *

                      TITLE I--CONTRACT FORMATION

                    Subtitle A--Competition Statutes

                  PART I--ARMED SERVICES ACQUISITIONS

Subpart A--Competition Requirements

           *       *       *       *       *       *       *

SEC. 1004. TASK AND DELIVERY ORDER CONTRACTS.

    (a)  * * *

           *       *       *       *       *       *       *

    (d) Provisions Not Affected.--Nothing in section 2304a, 
2304b, 2304c, or 2304d of title 10, United States Code, as 
added by subsection (a), and nothing in the amendments made by 
subsections (b) and (c), shall be construed as modifying or 
superseding, or as intended to impair or restrict, authorities 
or responsibilities [under--
            [(1) the Brooks Automatic Data Processing Act 
        (section 111 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 759)); and
            [(2) the Brooks Architect-Engineers Act (title IX 
        of the Federal Property and Administrative Services Act 
        of 1949 (40 U.S.C. 541 et seq.)).] under chapter 11 of 
        title 40, United States Code.

           *       *       *       *       *       *       *

                      TITLE VIII--COMMERCIAL ITEMS

Subtitle A--Definitions and Regulations

           *       *       *       *       *       *       *

SEC. 8002. REGULATIONS ON ACQUISITION OF COMMERCIAL ITEMS.

    (a)  * * *

           *       *       *       *       *       *       *

    (d) Use of Firm, Fixed Price Contracts.--The Federal 
Acquisition Regulation shall include, for acquisitions of 
commercial items--
            (1) a requirement that firm, fixed price contracts 
        or fixed price with economic price adjustment contracts 
        be used to the maximum extent practicable; [and]
            (2) a prohibition on use of cost type contracts[.]; 
        and
            (3) 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.

           *       *       *       *       *       *       *

                              ----------                              

      SECTION 1520 OF THE ARMED FORCES RETIREMENT HOME ACT OF 1991

SEC. 1520. DISPOSITION OF EFFECTS OF DECEASED PERSONS; UNCLAIMED 
                    PROPERTY

    (a)  * * *
    (b) Sale of Effects.--(1)(A)  * * *

           *       *       *       *       *       *       *

    (C) If a personal representative or other fiduciary is 
appointed to administer a deceased resident's estate and the 
administration is completed before the end of such three-year 
period, the balance of the entire net proceeds of the estate, 
less expenses, shall be deposited directly in the Armed Forces 
Retirement Home Trust Fund. The heirs or legatees of the 
deceased resident may file a claim made with the Secretary of 
Defense to reclaim such proceeds. A determination of the claim 
by the Secretary shall be subject to judicial review 
exclusively by the United States Court of Federal Claims.

           *       *       *       *       *       *       *

                              ----------                              

             SECTION 30305 OF TITLE 49, UNITED STATES CODE

Sec. 30305. Access to Register information

    (a)  * * *
    (b) Requests To Obtain Information.--(1)  * * *

           *       *       *       *       *       *       *

    (9) An individual who is being investigated for--
            (A) eligibility for access to a particular level of 
        classified information for purposes of Executive Order 
        12968, or any successor Executive order; or
            (B) Federal employment under authority of Executive 
        Order 10450, or any successor Executive order,
may request the chief driver licensing official of a State to 
provide information about the individual pursuant to subsection 
(a) of this section to a Federal department or agency that is 
authorized to investigate the individual for the purpose of 
assisting in the determination of the eligibility of the 
individual for access to classified information or for Federal 
employment. A Federal department or agency that receives such 
information about an individual may use it in accordance with 
applicable law. Information may not be obtained from the 
Register under this paragraph if the information was entered in 
the Register more than 3 years before the request, unless the 
information is about a revocation or suspension still in effect 
on the date of the request.
    [(9)] (10) A request under this subsection shall be made in 
the form and way the Secretary of Transportation prescribes by 
regulation.
    [(10)] (11) An individual may request the chief driver 
licensing official of a State to obtain information about the 
individual under subsection (a) of this section--
            (A)  * * *

           *       *       *       *       *       *       *

    [(11)] (12) The head of a Federal department or agency 
authorized to receive information regarding an individual from 
the Register under this section may request and receive such 
information from the Secretary.

           *       *       *       *       *       *       *

                              ----------                              

         SECTION 19 OF THE NATIONAL SECURITY AGENCY ACT OF 1959

    Sec. 19. (a) Exemption of Certain Operational Files From 
Search, Review, Publication, or Disclosure.--(1) The Director 
of the National Security Agency, with the coordination of 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.
    (2)(A) Subject to subparagraph (B), for the purposes of 
this section, the term ``operational files'' means files of the 
National Security Agency that document the means by which 
foreign intelligence or counterintelligence is collected 
through technical systems.
    (B) Files that contain disseminated intelligence are not 
operational files.
    (3) Notwithstanding paragraph (1), exempted operational 
files shall continue to be subject to search and review for 
information concerning--
            (A) United States citizens or aliens lawfully 
        admitted for permanent residence who have requested 
        information on themselves pursuant to the provisions of 
        section 552 of title 5 or section 552a of title 5, 
        United States Code;
            (B) any special activity the existence of which is 
        not exempt from disclosure under the provisions of 
        section 552 of title 5, United States Code; or
            (C) 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:
                    (i) The Permanent Select Committee on 
                Intelligence of the House of Representatives.
                    (ii) The Select Committee on Intelligence 
                of the Senate.
                    (iii) The Intelligence Oversight Board.
                    (iv) The Department of Justice.
                    (v) The Office of General Counsel of the 
                National Security Agency.
                    (vi) The Office of the Director of the 
                National Security Agency.
    (4)(A) Files that are not exempted under paragraph (1) 
which contain information derived or disseminated from exempted 
operational files shall be subject to search and review.
    (B) The inclusion of information from exempted operational 
files in files that are not exempted under paragraph (1) shall 
not affect the exemption under paragraph (1) of the originating 
operational files from search, review, publication, or 
disclosure.
    (C) 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.
    (D) Records from exempted operational files which have been 
disseminated to and referenced in files that are not exempted 
under paragraph (1) and which have been returned to exempted 
operational files for sole retention shall be subject to search 
and review.
    (5) The provisions of paragraph (1) may not be superseded 
except by a provision of law which is enacted after the date of 
the enactment of this section, and which specifically cites and 
repeals or modifies its provisions.
    (6)(A) Except as provided in subparagraph (B), 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.
    (B) Judicial review shall not be available in the manner 
provided for under subparagraph (A) as follows:
            (i) 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 which 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.
            (ii) The court shall, to the fullest extent 
        practicable, determine the issues of fact based on 
        sworn written submissions of the parties.
            (iii) 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.
            (iv)(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 responsive records 
        currently perform the functions set forth in paragraph 
        (2).
            (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 subclause (I), unless the 
        complainant disputes the National Security Agency's 
        showing with a sworn written submission based on 
        personal knowledge or otherwise admissible evidence.
            (v) In proceedings under clauses (iii) and (iv), 
        the parties may not obtain discovery pursuant to rules 
        26 through 36 of the Federal Rules of Civil Procedure, 
        except that requests for admission may be made pursuant 
        to rules 26 and 36.
            (vi) If the court finds under this paragraph 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 
        subsection.
            (vii) 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.
            (viii) Any information filed with, or produced for 
        the court pursuant to clauses (i) and (iv) shall be 
        coordinated with the Director of Central Intelligence 
        prior to submission to the court.
    (b) 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)(1) to 
determine whether such exemptions may be removed from the 
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 the 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.
                              ----------                              

              SECTION 207 OF TITLE 18, UNITED STATES CODE

Sec. 207. Restrictions on former officers, employees, and elected 
                    officials of the executive and legislative branches

    (a)  * * *

           *       *       *       *       *       *       *

    (c) One-Year Restrictions on Certain Senior Personnel of 
the Executive Branch and Independent Agencies.--
            (1)  * * *
            (2) Persons to whom restrictions apply.--(A) 
        Paragraph (1) shall apply to a person (other than a 
        person subject to the restrictions of subsection (d))--
                    (i)  * * *
                    [(ii) employed in a position which is not 
                referred to in clause (i) and for which the 
                basic rate of pay, exclusive of any locality-
                based pay adjustment under section 5302 of 
                title 5 (or any comparable adjustment pursuant 
                to interim authority of the President), is 
                equal to or greater than the rate of basic pay 
                payable for level 5 of the Senior Executive 
                Service,]
                    (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 96 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 Federal Employees Pay for 
                Performance Act of 2003, 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,

           *       *       *       *       *       *       *

                              ----------                              

TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *

SUBTITLE II--THE BUDGET PROCESS

           *       *       *       *       *       *       *

CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

           *       *       *       *       *       *       *

Sec. 1115. Performance plans

    (a) In carrying out the provisions of [section 1105(a)(29)] 
section 1105(a)(28), the Director of the Office of Management 
and Budget shall require each agency to prepare an annual 
performance plan covering each program activity set forth in 
the budget of such agency. Such plan shall--
            (1)  * * *

           *       *       *       *       *       *       *

SUBTITLE III--FINANCIAL MANAGEMENT

           *       *       *       *       *       *       *

CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY

           *       *       *       *       *       *       *

SUBCHAPTER III--MISCELLANEOUS

           *       *       *       *       *       *       *

Sec. 3342. Check cashing and exchange transactions

    (a)  * * *
    (b) A disbursing official may act under subsection (a) (1) 
and (2) of this section [only for--] only for the following:
            (1) [an] An official purpose[;].
            (2) [personnel] Personnel of the Government[;].
            (3) [a] A dependent of personnel of the Government, 
        but only--
                    (A)  * * *
                    (B) in the case of negotiation of 
                negotiable instruments, if the dependent's 
                sponsor authorizes, in writing, the 
                presentation of negotiable instruments to the 
                disbursing official for negotiation[;].
            (4) [a] A veteran hospitalized or living in an 
        institution operated by an agency[;].
            (5) [a] A contractor, or personnel of a contractor, 
        carrying out a Government project[;].
            (6) [personnel] Personnel of an authorized agency 
        not part of the Government that operates with an agency 
        of the Government[; or].
            (7) [a] A Federal credit union (as defined in 
        section 101(1) of the Federal Credit Union Act (12 
        U.S.C. [1752(1))] 1752(1))) that at the request of the 
        Secretary of Defense is operating on a United States 
        military installation in a foreign country, but only if 
        that country does not permit contractor-operated 
        military banking facilities to operate on such 
        installations.
            (8) A member of the military forces of an allied or 
        coalition nation who is participating in a joint 
        operation, joint exercise, humanitarian mission, 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 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.

           *       *       *       *       *       *       *

CHAPTER 35--ACCOUNTING AND COLLECTION

           *       *       *       *       *       *       *

SUBCHAPTER V--PROCUREMENT PROTEST SYSTEM

           *       *       *       *       *       *       *

Sec. 3553. Review of protests; effect on contracts pending decision

    (a)  * * *

           *       *       *       *       *       *       *

    (d)(1)  * * *

           *       *       *       *       *       *       *

    (4) The period referred to in paragraphs (2) and (3)(A), 
with respect to a contract, is the period beginning on the date 
of the contract award and ending on the later of--
            (A) the date that is 10 days after the date of the 
        contract award; [or]
            (B) the date that is 5 days after the debriefing 
        date offered to an unsuccessful offeror for any 
        debriefing that is requested and, when requested, is 
        required[.]; or
            (C) in the case of a protest of the same matter 
        regarding such contract that is submitted under section 
        2305b of title 10 or section 303N of the Federal 
        Property and Administrative Services Act of 1949, the 
        date that is 5 days after the date on which a decision 
        on that protest is issued.

           *       *       *       *       *       *       *

                              ----------                              

OFFICE OF FEDERAL PROCUREMENT POLICY ACT

           *       *       *       *       *       *       *

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a)  * * *
    (b) Table of Contents.--The table of contents for this Act 
is as follows:
Sec. 1. Short title; table of contents.
     * * * * * * *
[Sec. 16. Executive agency responsibilities.]
Sec. 16. Chief Acquisition Officers.
Sec. 16A. Chief Acquisition Officers Council.
     * * * * * * *
Sec. 40. Protection of constitutional rights of contractors.
Sec. 41. Incentives for efficient performance of services contracts.
     * * * * * * *

SEC. 4. DEFINITIONS.

    As used in this Act:
            (1)  * * *

           *       *       *       *       *       *       *

            (11) The term ``simplified acquisition threshold'' 
        means $100,000, except that such amount may be adjusted 
        by the Administrator every five years to the amount 
        equal to $100,000 in constant fiscal year 2003 dollars 
        (rounded to the nearest $10,000).
            (12) The term ``commercial item'' means any of the 
        following:
                    (A)  * * *

           *       *       *       *       *       *       *

                    (F) Services offered and sold 
                competitively, in substantial quantities, in 
                the commercial marketplace based on established 
                [catalog or] market prices for specific tasks 
                performed or specific outcomes to be achieved 
                and under standard commercial terms and 
                conditions.

           *       *       *       *       *       *       *

                    (I) Items or services produced or provided 
                by a commercial entity.

           *       *       *       *       *       *       *

            (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.
            (17) The term ``commercial entity'' means any 
        enterprise whose primary customers are other than the 
        Federal Government. In order to qualify as a commercial 
        entity, at least 90 percent (in dollars) of the sales 
        of the enterprise over the past three business years 
        must have been made to private sector entities.

           *       *       *       *       *       *       *

[SEC. 16. EXECUTIVE AGENCY RESPONSIBILITIES.

    [To further achieve effective, efficient, and economic 
administration of the Federal procurement system, the head of 
each executive agency shall, in accordance with applicable 
laws, Government-wide policies and regulations, and good 
business practices--
            [(1) increase the use of full and open competition 
        in the procurement of property or services by the 
        executive agency by establishing policies, procedures, 
        and practices that assure 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 
        reasonable cost considering the nature of the property 
        or service procured;
            [(2) establish clear lines of authority, 
        accountability, and responsibility for procurement 
        decisionmaking within the executive agency, including 
        placing the procurement function at a sufficiently high 
        level in the executive agency to provide--
                    [(A) direct access to the head of the major 
                organizational element of the executive agency 
                served; and
                    [(B) comparative equality with 
                organizational counterparts;
            [(3) 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; and
            [(4) develop and maintain a procurement career 
        management program in the executive agency to assure an 
        adequate professional work force.]

SEC. 16. AGENCY CHIEF ACQUISITION OFFICERS.

    (a) Establishment of Agency Chief Acquisition Officers.--
The head of each executive agency (other than the Department of 
Defense) shall appoint or designate a non-career employee as 
Chief Acquisition Officer for the agency, who shall--
            (1) have acquisition management as that official's 
        primary duty; and
            (2) 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 best value 
        considering the nature of the property or service 
        procured;
            (3) making acquisition decisions consistent with 
        all applicable laws and establishing clear lines of 
        authority, accountability, and responsibility for 
        acquisition decisionmaking within the executive agency;
            (4) managing the direction of acquisition policy 
        for the executive agency, including implementation of 
        the unique acquisition policies, regulations, and 
        standards of the executive agency;
            (5) developing and maintaining an acquisition 
        career management program in the executive agency to 
        ensure that there is an adequate professional 
        workforce; and
            (6) 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.

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 chief acquisition officer of each executive 
        agency.
            (4) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            (5) Any other officer or employee of the United 
        States designated by the Chairman.
    (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.

           *       *       *       *       *       *       *

SEC. 20. ADVOCATES FOR COMPETITION.

    (a)(1)  * * *
    (2) The head of each executive agency shall--
            (A) designate for the executive agency and for each 
        procuring activity of the executive agency one officer 
        or employee serving in a position authorized for such 
        executive agency on the date of enactment of the 
        Competition in Contracting Act of 1984 (other than the 
        [senior procurement executive] Chief Acquisition 
        Officer designated pursuant to section 16(3)) to serve 
        as the advocate for competition;

           *       *       *       *       *       *       *

    (b) The advocate for competition of an executive agency 
shall--
            (1)  * * *

           *       *       *       *       *       *       *

            (3) identify and report to the [senior procurement 
        executive] Chief Acquisition Officer of the executive 
        agency designated pursuant to section 16(3)--
                    (A)  * * *

           *       *       *       *       *       *       *

            (4) prepare and transmit to such [senior 
        procurement executive] Chief Acquisition Officer an 
        annual report describing--
                    (A)  * * *

           *       *       *       *       *       *       *

            (5) recommend to the [senior procurement executive] 
        Chief Acquisition Officer of the executive agency goals 
        and the plans for increasing competition on a fiscal 
        year basis;
            (6) recommend to the [senior procurement executive] 
        Chief Acquisition Officer of the executive agency a 
        system of personal and organizational accountability 
        for competition, which may include the use of 
        recognition and awards to motivate program managers, 
        contracting officers, and others in authority to 
        promote competition in procurement programs; and

           *       *       *       *       *       *       *

SEC. 29. CONTRACT CLAUSES AND CERTIFICATIONS.

    (a)  * * *

           *       *       *       *       *       *       *

    (c) Prohibition on Certification Requirements.--(1)  * * *
    (2)(A) A requirement for a certification by a contractor or 
offeror may not be included in a procurement regulation of an 
executive agency unless--
            (i)  * * *
            (ii) written justification for such certification 
        requirement is provided to the head of the executive 
        agency by the [senior procurement executive] Chief 
        Acquisition Officer of the agency, and the head of the 
        executive agency approves in writing the inclusion of 
        such certification requirement.

           *       *       *       *       *       *       *

SEC. 37. ACQUISITION WORKFORCE.

    (a)  * * *

           *       *       *       *       *       *       *

    (c) [Senior Procurement Executive] Chief Acquisition 
Officer Authorities and Responsibilities.--Subject to the 
authority, direction, and control of the head of an executive 
agency, the [senior procurement executive] Chief Acquisition 
Officer of the agency shall carry out all powers, functions, 
and duties of the head of the agency with respect to 
implementation of this section. The [senior procurement 
executive] Chief Acquisition Officer shall ensure that the 
policies of the head of the executive agency established in 
accordance with this section are implemented throughout the 
agency.

           *       *       *       *       *       *       *

    (h) Education and Training.--
            (1)  * * *

           *       *       *       *       *       *       *

            (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 until expended.

           *       *       *       *       *       *       *

SEC. [39.] 40. PROTECTION OF CONSTITUTIONAL RIGHTS OF CONTRACTORS.

      (a)  * * *

           *       *       *       *       *       *       *

SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF SERVICES CONTRACTS.

    (a) Options for Services Contracts.--An option included in 
a contract for services to extend the contract by one or more 
periods may provide that it be exercised on the basis of 
exceptional performance by the contractor. A contract that 
contains such an option provision shall include performance 
standards for measuring performance under the contract, and to 
the maximum extent practicable be performance-based. Such 
option provision shall only be exercised in accordance with 
applicable provisions of law or regulation that set forth 
restrictions on the duration of the contract containing the 
option.
    (b) Incentive for Use of Performance-Based Services 
Contracts.--(1) 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--
            (A) the contract or task order sets forth 
        specifically each task to be performed and, for each 
        task--
                    (i) defines the task in measurable, 
                mission-related terms; and
                    (ii) identifies the specific end products 
                or output to be achieved; and
            (B) the source of the services provides similar 
        services to the general public under terms and 
        conditions similar to those offered to the Federal 
        Government.
    (2) The regulations implementing this subsection 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 
subsection. The data may be collected using the Federal 
Procurement Data System or other reporting mechanism.
    (3) Not later than two years after the date of the 
enactment of this subsection, 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 subsection. The report shall 
include data on the use of such authority both government-wide 
and for each department and agency.
    (4) The authority under this subsection shall expire 10 
years after the date of the enactment of this subsection.
    (c) Definition of Performance-Based.--In this section, the 
term ``performance-based'', with respect to a contract, task 
order, or contracting, means that the contract, task order, or 
contracting, respectively, includes the use of performance work 
statements that set forth contract requirements in clear, 
specific, and objective terms with measurable outcomes.
                              ----------                              

        FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

TITLE III--PROCUREMENT PROCEDURE

           *       *       *       *       *       *       *

SEC. 302C. IMPLEMENTATION OF FACNET CAPABILITY.

    (a) * * *
    (b) Designation of Agency Official.--The head of each 
executive agency shall designate a program manager to have 
responsibility for implementation of FACNET capability for that 
agency and otherwise to implement this section. Such program 
manager shall report directly to the [senior procurement 
executive] Chief Acquisition Officer designated for the 
executive agency under section 16(3) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 414(3)).

SEC. 303. COMPETITION REQUIREMENTS.

    (a)  * * *

           *       *       *       *       *       *       *

    (f)(1) Except as provided in paragraph (2), an executive 
agency may not award a contract using procedures other than 
competitive procedures unless--
            (A)  * * *
            (B) the justification is approved--
                    (i)  * * *

           *       *       *       *       *       *       *

                    (iii) in the case of a contract for an 
                amount exceeding $50,000,000, by the [senior 
                procurement executive] Chief Acquisition 
                Officer of the agency designated pursuant to 
                section 16(3) of the Office of Federal 
                Procurement Policy Act (41 U.S.C. 414(3)) 
                (without further delegation); and

           *       *       *       *       *       *       *

SEC. 303N. PROTESTS.

    (a) In General.--An interested party may protest an 
acquisition of supplies or services by an executive agency 
based on an alleged violation of an acquisition law or 
regulation, and a decision regarding such alleged violation 
shall be made by the agency in accordance with this section.
    (b) Restriction on Contract Award Pending Decision.--(1) 
Except as provided in paragraph (2), a contract may not be 
awarded by an agency after a protest concerning the acquisition 
has been submitted under this section and while the protest is 
pending.
    (2) The head of the acquisition activity responsible for 
the award of a contract may authorize the award of the 
contract, notwithstanding a pending protest under this section, 
upon making a written finding that urgent and compelling 
circumstances do not allow for waiting for a decision on the 
protest.
    (c) Restriction on Contract Performance Pending Decision.--
(1) Except as provided in paragraph (2), performance of a 
contract may not be authorized (and performance of the contract 
shall cease if performance has already begun) in any case in 
which a protest of the contract award is submitted under this 
section before the later of--
            (A) the date that is 10 days after the date of 
        contract award; or
            (B) the date that is five days after an agency 
        debriefing date offered to an unsuccessful offeror for 
        any debriefing that is requested and, when requested, 
        is required, under section 303B(e) of this title.
    (2) The head of the acquisition activity responsible for 
the award of a contract may authorize performance of the 
contract notwithstanding a pending protest under this section 
upon making a written finding that urgent and compelling 
circumstances do not allow for waiting for a decision on the 
protest.
    (d) Deadline for Decision.--The head of an executive agency 
shall issue a decision on a protest under this section not 
later than the date that is 20 working days after the date on 
which the protest is submitted to the executive agency.
    (e) Construction.--Nothing in this section shall affect the 
right of an interested party to file a protest with the 
Comptroller General under subchapter V of chapter 35 of title 
31, United States Code, or in the United States Court of 
Federal Claims.
    (f) Definitions.--In this section, the terms ``protest'' 
and ``interested party'' have the meanings given such terms in 
section 3551 of title 31, United States Code.

           *       *       *       *       *       *       *

SEC. 317. SHARE-IN-SAVINGS CONTRACTS.

    (a) Authority To Enter Into Share-in-Savings Contracts.--
(1)  * * *

           *       *       *       *       *       *       *

    (4) Contracts awarded pursuant to the authority of this 
section shall include a provision containing a quantifiable 
baseline that is to be the basis upon which a savings share 
ratio is established that governs the amount of payment a 
contractor is to receive under the contract. Before 
commencement of performance of such a contract, the [senior 
procurement executive] Chief Acquisition Officer of the agency 
shall determine in writing that the terms of the provision are 
quantifiable and will likely yield value to the Government.

           *       *       *       *       *       *       *

SEC. 318. 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). In applying the requirements and conditions 
        of that section 845--
                    (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.
            (3) Applicability to selected executive agencies.--
                    (A) OMB authorization required.--The head 
                of an executive agency may exercise authority 
                under this subsection only if authorized by the 
                Director of the Office of Management and Budget 
                to do so.
                    (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.
                              ----------                              

      SECTION 403 OF THE FEDERAL FINANCIAL MANAGEMENT ACT OF 1994

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

    (a)  * * *

           *       *       *       *       *       *       *

    (f) Termination.--The provisions of this section shall 
expire on [October 1, 2003] October 1, 2006.
                              ----------                              

TITLE 40, UNITED STATES CODE

           *       *       *       *       *       *       *

            SUBTITLE III--INFORMATION TECHNOLOGY MANAGEMENT

Chapter                                                             Sec.
      GENERAL......................................................11101
     * * * * * * *
      INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM............11501]
     * * * * * * *

     [CHAPTER 115--INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM

                 [SUBCHAPTER I--CONDUCT OF PILOT PROGRAM

[Sec.
[11501.  Authority to conduct pilot program.
[11502.  Evaluation criteria and plans.
[11503.  Report.
[11504.  Recommended legislation.
[11505.  Rule of construction.

                 [SUBCHAPTER II--SPECIFIC PILOT PROGRAM

                [SUBCHAPTER I--CONDUCT OF PILOT PROGRAM

[Sec. 11501. Authority to conduct pilot program

  [(a) In General.--
          [(1) Purpose.--In consultation with the Administrator 
        for the Office of Information and Regulatory Affairs, 
        the Administrator for Federal Procurement Policy may 
        conduct a pilot program pursuant to the requirements of 
        section 11521 of this title to test alternative 
        approaches for the acquisition of information 
        technology by executive agencies.
          [(2) Multiagency, multi-activity conduct of each 
        program.--Except as otherwise provided in this chapter, 
        the pilot program conducted under this chapter shall be 
        carried out in not more than two procuring activities 
        in each of the executive agencies that are designated 
        by the Administrator for Federal Procurement Policy in 
        accordance with this chapter to carry out the pilot 
        program. With the approval of the Administrator for 
        Federal Procurement Policy, the head of each designated 
        executive agency shall select the procuring activities 
        of the executive agency that are to participate in the 
        test and shall designate a procurement testing official 
        who shall be responsible for the conduct and evaluation 
        of the pilot program within the executive agency.
  [(b) Limitation on Amount.--The total amount obligated for 
contracts entered into under the pilot program conducted under 
this chapter may not exceed $750,000,000. The Administrator for 
Federal Procurement Policy shall monitor those contracts and 
ensure that contracts are not entered into in violation of this 
subsection.
  [(c) Period of Programs.--
          [(1) In general.--Subject to paragraph (2), the pilot 
        program may be carried out under this chapter for the 
        period, not in excess of five years, the Administrator 
        for Federal Procurement Policy determines is sufficient 
        to establish reliable results.
          [(2) Continuing validity of contracts.--A contract 
        entered into under the pilot program before the 
        expiration of that program remains in effect according 
        to the terms of the contract after the expiration of 
        the program.

[Sec. 11502. Evaluation criteria and plans

  [(a) Measurable Test Criteria.--To the maximum extent 
practicable, the head of each executive agency conducting the 
pilot program under section 11501 of this title shall establish 
measurable criteria for evaluating the effects of the 
procedures or techniques to be tested under the program.
  [(b) Test Plan.--Before the pilot program may be conducted 
under section 11501 of this title, the Administrator for 
Federal Procurement Policy shall submit to Congress a detailed 
test plan for the program, including a detailed description of 
the procedures to be used and a list of regulations that are to 
be waived.

[Sec. 11503. Report

  [(a) Requirement.--Not later than 180 days after the 
completion of the pilot program under this chapter, the 
Administrator for Federal Procurement Policy shall--
          [(1) submit to the Director of the Office of 
        Management and Budget a report on the results and 
        findings under the program; and
          [(2) provide a copy of the report to Congress.
  [(b) Content.--The report shall include--
          [(1) a detailed description of the results of the 
        program, as measured by the criteria established for 
        the program; and
          [(2) a discussion of legislation that the 
        Administrator recommends, or changes in regulations 
        that the Administrator considers necessary, to improve 
        overall information resources management in the Federal 
        Government.

[Sec. 11504. Recommended legislation

  [If the Director of the Office of Management and Budget 
determines that the results and findings under the pilot 
program under this chapter indicate that legislation is 
necessary or desirable to improve the process for acquisition 
of information technology, the Director shall transmit the 
Director's recommendations for that legislation to Congress.

[Sec. 11505. Rule of construction

  [This chapter does not authorize the appropriation or 
obligation of amounts for the pilot program authorized under 
this chapter.

[SUBCHAPTER II--SPECIFIC PILOT PROGRAM]

           *       *       *       *       *       *       *

                              ----------                              

               CHAPTER 35 OF TITLE 44, UNITED STATES CODE

         CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

                SUBCHAPTER I--FEDERAL INFORMATION POLICY

Sec.
3501. Purposes.
     * * * * * * *

                   SUBCHAPTER II--INFORMATION SECURITY

[Sec.
[3531. Purposes.
[3532. Definitions.
[3533. Authority and functions of the Director.
[3534. Federal agency responsibilities.
[3535. Annual independent evaluation.
[3536. National security systems.
[3537. Authorization of appropriations.
[3538. Effect on existing law.

                 [SUBCHAPTER III--INFORMATION SECURITY]

Sec.
3541. Purposes.
     * * * * * * *

                  [SUBCHAPTER II--INFORMATION SECURITY

[Sec. 3531. Purposes

    [The purposes of this subchapter are to--
            [(1) provide a comprehensive framework for ensuring 
        the effectiveness of information security controls over 
        information resources that support Federal operations 
        and assets;
            [(2) recognize the highly networked nature of the 
        current Federal computing environment and provide 
        effective governmentwide management and oversight of 
        the related information security risks, including 
        coordination of information security efforts throughout 
        the civilian, national security, and law enforcement 
        communities;
            [(3) provide for development and maintenance of 
        minimum controls required to protect Federal 
        information and information systems;
            [(4) provide a mechanism for improved oversight of 
        Federal agency information security programs;
            [(5) acknowledge that commercially developed 
        information security products offer advanced, dynamic, 
        robust, and effective information security solutions, 
        reflecting market solutions for the protection of 
        critical information infrastructures important to the 
        national defense and economic security of the nation 
        that are designed, built, and operated by the private 
        sector; and
            [(6) recognize that the selection of specific 
        technical hardware and software information security 
        solutions should be left to individual agencies from 
        among commercially developed products.

[Sec. 3532. Definitions

    [(a) In General.--Except as provided under subsection (b), 
the definitions under section 3502 shall apply to this 
subchapter.
    [(b) Additional Definitions.--As used in this subchapter--
            [(1) the term ``information security'' means 
        protecting information and information systems from 
        unauthorized access, use, disclosure, disruption, 
        modification, or destruction in order to provide--
                    [(A) integrity, which means guarding 
                against improper information modification or 
                destruction, and includes ensuring information 
                nonrepudiation and authenticity;
                    [(B) confidentiality, which means 
                preserving authorized restrictions on access 
                and disclosure, including means for protecting 
                personal privacy and proprietary information;
                    [(C) availability, which means ensuring 
                timely and reliable access to and use of 
                information; and
                    [(D) authentication, which means utilizing 
                digital credentials to assure the identity of 
                users and validate their access;
            [(2) the term ``national security system'' means 
        any information system (including any 
        telecommunications system) used or operated by an 
        agency or by a contractor of an agency, or other 
        organization on behalf of an agency, the function, 
        operation, or use of which--
                    [(A) involves intelligence activities;
                    [(B) involves cryptologic activities 
                related to national security;
                    [(C) involves command and control of 
                military forces;
                    [(D) involves equipment that is an integral 
                part of a weapon or weapons system; or
                    [(E) is critical to the direct fulfillment 
                of military or intelligence missions provided 
                that this definition does not apply to a system 
                that is used for routine administrative and 
                business applications (including payroll, 
                finance, logistics, and personnel management 
                applications);
            [(3) the term ``information technology'' has the 
        meaning given that term in section 11101 of title 40; 
        and
            [(4) the term ``information system'' means any 
        equipment or interconnected system or subsystems of 
        equipment that is used in the automatic acquisition, 
        storage, manipulation, management, movement, control, 
        display, switching, interchange, transmission, or 
        reception of data or information, and includes--
                    [(A) computers and computer networks;
                    [(B) ancillary equipment;
                    [(C) software, firmware, and related 
                procedures;
                    [(D) services, including support services; 
                and
                    [(E) related resources.

[Sec. 3533. Authority and functions of the Director

    [(a) The Director shall oversee agency information security 
policies and practices, by--
            [(1) promulgating information security standards 
        under section 11331 of title 40;
            [(2) overseeing the implementation of policies, 
        principles, standards, and guidelines on information 
        security;
            [(3) requiring agencies, consistent with the 
        standards promulgated under such section 11331 and the 
        requirements of this subchapter, to identify and 
        provide information security protections commensurate 
        with the risk and magnitude of the harm resulting from 
        the unauthorized access, use, disclosure, disruption, 
        modification, or destruction of--
                    [(A) information collected or maintained by 
                or on behalf of an agency; or
                    [(B) information systems used or operated 
                by an agency or by a contractor of an agency or 
                other organization on behalf of an agency;
            [(4) coordinating the development of standards and 
        guidelines under section 20 of the National Institute 
        of Standards and Technology Act (15 U.S.C. 278g-3) with 
        agencies and offices operating or exercising control of 
        national security systems (including the National 
        Security Agency) to assure, to the maximum extent 
        feasible, that such standards and guidelines are 
        complementary with standards and guidelines developed 
        for national security systems;
            [(5) overseeing agency compliance with the 
        requirements of this subchapter, including through any 
        authorized action under section 11303(b)(5) of title 
        40, to enforce accountability for compliance with such 
        requirements;
            [(6) reviewing at least annually, and approving or 
        disapproving, agency information security programs 
        required under section 3534(b);
            [(7) coordinating information security policies and 
        procedures with related information resources 
        management policies and procedures; and
            [(8) reporting to Congress no later than March 1 of 
        each year on agency compliance with the requirements of 
        this subchapter, including--
                    [(A) a summary of the findings of 
                evaluations required by section 3535;
                    [(B) significant deficiencies in agency 
                information security practices;
                    [(C) planned remedial action to address 
                such deficiencies; and
                    [(D) a summary of, and the views of the 
                Director on, the report prepared by the 
                National Institute of Standards and Technology 
                under section 20(d)(9) of the National 
                Institute of Standards and Technology Act (15 
                U.S.C. 278g-3).
    [(b) Except for the authorities described in paragraphs (4) 
and (7) of subsection (a), the authorities of the Director 
under this section shall not apply to national security 
systems.

[Sec. 3534. Federal agency responsibilities

    [(a) The head of each agency shall--
            [(1) be responsible for--
                    [(A) providing information security 
                protections commensurate with the risk and 
                magnitude of the harm resulting from 
                unauthorized access, use, disclosure, 
                disruption, modification, or destruction of--
                            [(i) information collected or 
                        maintained by or on behalf of the 
                        agency; and
                            [(ii) information systems used or 
                        operated by an agency or by a 
                        contractor of an agency or other 
                        organization on behalf of an agency;
                    [(B) complying with the requirements of 
                this subchapter and related policies, 
                procedures, standards, and guidelines, 
                including--
                            [(i) information security standards 
                        promulgated by the Director under 
                        section 11331 of title 40; and
                            [(ii) information security 
                        standards and guidelines for national 
                        security systems issued in accordance 
                        with law and as directed by the 
                        President; and
                    [(C) ensuring that information security 
                management processes are integrated with agency 
                strategic and operational planning processes;
            [(2) ensure that senior agency officials provide 
        information security for the information and 
        information systems that support the operations and 
        assets under their control, including through--
                    [(A) assessing the risk and magnitude of 
                the harm that could result from the 
                unauthorized access, use, disclosure, 
                disruption, modification, or destruction of 
                such information or information systems;
                    [(B) determining the levels of information 
                security appropriate to protect such 
                information and information systems in 
                accordance with standards promulgated under 
                section 11331 of title 40 for information 
                security classifications and related 
                requirements;
                    [(C) implementing policies and procedures 
                to cost-effectively reduce risks to an 
                acceptable level; and
                    [(D) periodically testing and evaluating 
                information security controls and techniques to 
                ensure that they are effectively implemented;
            [(3) delegate to the agency Chief Information 
        Officer established under section 3506 (or comparable 
        official in an agency not covered by such section) the 
        authority to ensure compliance with the requirements 
        imposed on the agency under this subchapter, 
        including--
                    [(A) designating a senior agency 
                information security officer who shall--
                            [(i) carry out the Chief 
                        Information Officer's responsibilities 
                        under this section;
                            [(ii) possess professional 
                        qualifications, including training and 
                        experience, required to administer the 
                        functions described under this section;
                            [(iii) have information security 
                        duties as that official's primary duty; 
                        and
                            [(iv) head an office with the 
                        mission and resources to assist in 
                        ensuring agency compliance with this 
                        section;
                    [(B) developing and maintaining an 
                agencywide information security program as 
                required by subsection (b);
                    [(C) developing and maintaining information 
                security policies, procedures, and control 
                techniques to address all applicable 
                requirements, including those issued under 
                section 3533 of this title, and section 11331 
                of title 40;
                    [(D) training and overseeing personnel with 
                significant responsibilities for information 
                security with respect to such responsibilities; 
                and
                    [(E) assisting senior agency officials 
                concerning their responsibilities under 
                paragraph (2);
            [(4) ensure that the agency has trained personnel 
        sufficient to assist the agency in complying with the 
        requirements of this subchapter and related policies, 
        procedures, standards, and guidelines; and
            [(5) ensure that the agency Chief Information 
        Officer, in coordination with other senior agency 
        officials, reports annually to the agency head on the 
        effectiveness of the agency information security 
        program, including progress of remedial actions.
    [(b) Each agency shall develop, document, and implement an 
agencywide information security program, approved by the 
Director under section 3533(a)(5), to provide information 
security for the information and information systems that 
support the operations and assets of the agency, including 
those provided or managed by another agency, contractor, or 
other source, that includes--
            [(1) periodic assessments of the risk and magnitude 
        of the harm that could result from the unauthorized 
        access, use, disclosure, disruption, modification, or 
        destruction of information and information systems that 
        support the operations and assets of the agency;
            [(2) policies and procedures that--
                    [(A) are based on the risk assessments 
                required by paragraph (1);
                    [(B) cost-effectively reduce information 
                security risks to an acceptable level;
                    [(C) ensure that information security is 
                addressed throughout the life cycle of each 
                agency information system; and
                    [(D) ensure compliance with--
                            [(i) the requirements of this 
                        subchapter;
                            [(ii) policies and procedures as 
                        may be prescribed by the Director, and 
                        information security standards 
                        promulgated under section 11331 of 
                        title 40;
                            [(iii) minimally acceptable system 
                        configuration requirements, as 
                        determined by the agency; and
                            [(iv) any other applicable 
                        requirements, including standards and 
                        guidelines for national security 
                        systems issued in accordance with law 
                        and as directed by the President;
            [(3) subordinate plans for providing adequate 
        information security for networks, facilities, and 
        systems or groups of information systems, as 
        appropriate;
            [(4) security awareness training to inform 
        personnel, including contractors and other users of 
        information systems that support the operations and 
        assets of the agency, of--
                    [(A) information security risks associated 
                with their activities; and
                    [(B) their responsibilities in complying 
                with agency policies and procedures designed to 
                reduce these risks;
            [(5) periodic testing and evaluation of the 
        effectiveness of information security policies, 
        procedures, and practices, to be performed with a 
        frequency depending on risk, but no less than annually, 
        of which such testing--
                    [(A) shall include testing of management, 
                operational, and technical controls of every 
                information system identified in the inventory 
                required under section 3505(c); and
                    [(B) may include testing relied on in a 
                evaluation under section 3535;
            [(6) a process for planning, implementing, 
        evaluating, and documenting remedial action to address 
        any deficiencies in the information security policies, 
        procedures, and practices of the agency;
            [(7) procedures for detecting, reporting, and 
        responding to security incidents, including--
                    [(A) mitigating risks associated with such 
                incidents before substantial damage is done; 
                and
                    [(B) notifying and consulting with, as 
                appropriate--
                            [(i) law enforcement agencies and 
                        relevant Offices of Inspector General;
                            [(ii) an office designated by the 
                        President for any incident involving a 
                        national security system; and
                            [(iii) any other agency or office, 
                        in accordance with law or as directed 
                        by the President; and
            [(8) plans and procedures to ensure continuity of 
        operations for information systems that support the 
        operations and assets of the agency.
    [(c) Each agency shall--
            [(1) report annually to the Director, the 
        Committees on Government Reform and Science of the 
        House of Representatives, the Committees on 
        Governmental Affairs and Commerce, Science, and 
        Transportation of the Senate, the appropriate 
        authorization and appropriations committees of 
        Congress, and the Comptroller General on the adequacy 
        and effectiveness of information security policies, 
        procedures, and practices, and compliance with the 
        requirements of this subchapter, including compliance 
        with each requirement of subsection (b);
            [(2) address the adequacy and effectiveness of 
        information security policies, procedures, and 
        practices in plans and reports relating to--
                    [(A) annual agency budgets;
                    [(B) information resources management under 
                subchapter 1 of this chapter;
                    [(C) information technology management 
                under subtitle III of title 40;
                    [(D) program performance under sections 
                1105 and 1115 through 1119 of title 31, and 
                sections 2801 and 2805 of title 39;
                    [(E) financial management under chapter 9 
                of title 31, and the Chief Financial Officers 
                Act of 1990 (31 U.S.C. 501 note; Public Law 
                101-576) (and the amendments made by that Act);
                    [(F) financial management systems under the 
                Federal Financial Management Improvement Act 
                (31 U.S.C. 3512 note); and
                    [(G) internal accounting and administrative 
                controls under section 3512 of title 31, United 
                States Code, (known as the ``Federal Managers 
                Financial Integrity Act''); and
            [(3) report any significant deficiency in a policy, 
        procedure, or practice identified under paragraph (1) 
        or (2)--
                    [(A) as a material weakness in reporting 
                under section 3512 of title 31; and
                    [(B) if relating to financial management 
                systems, as an instance of a lack of 
                substantial compliance under the Federal 
                Financial Management Improvement Act (31 U.S.C. 
                3512 note).
    [(d)(1) In addition to the requirements of subsection (c), 
each agency, in consultation with the Director, shall include 
as part of the performance plan required under section 1115 of 
title 31 a description of--
            [(A) the time periods; and
            [(B) the resources, including budget, staffing, and 
        training,
that are necessary to implement the program required under 
subsection (b).
    [(2) The description under paragraph (1) shall be based on 
the risk assessments required under subsection (b)(2)(1).
    [(e) Each agency shall provide the public with timely 
notice and opportunities for comment on proposed information 
security policies and procedures to the extent that such 
policies and procedures affect communication with the public.

[Sec. 3535. Annual independent evaluation

    [(a)(1) Each year each agency shall have performed an 
independent evaluation of the information security program and 
practices of that agency to determine the effectiveness of such 
program and practices.
    [(2) Each evaluation by an agency under this section shall 
include--
            [(A) testing of the effectiveness of information 
        security policies, procedures, and practices of a 
        representative subset of the agency's information 
        systems;
            [(B) an assessment (made on the basis of the 
        results of the testing) of compliance with--
                    [(i) the requirements of this subchapter; 
                and
                    [(ii) related information security 
                policies, procedures, standards, and 
                guidelines; and
            [(C) separate presentations, as appropriate, 
        regarding information security relating to national 
        security systems.
    [(b) Subject to subsection (c)--
            [(1) for each agency with an Inspector General 
        appointed under the Inspector General Act of 1978, the 
        annual evaluation required by this section shall be 
        performed by the Inspector General or by an independent 
        external auditor, as determined by the Inspector 
        General of the agency; and
            [(2) for each agency to which paragraph (1) does 
        not apply, the head of the agency shall engage an 
        independent external auditor to perform the evaluation.
    [(c) For each agency operating or exercising control of a 
national security system, that portion of the evaluation 
required by this section directly relating to a national 
security system shall be performed--
            [(1) only by an entity designated by the agency 
        head; and
            [(2) in such a manner as to ensure appropriate 
        protection for information associated with any 
        information security vulnerability in such system 
        commensurate with the risk and in accordance with all 
        applicable laws.
    [(d) The evaluation required by this section--
            [(1) shall be performed in accordance with 
        generally accepted government auditing standards; and
            [(2) may be based in whole or in part on an audit, 
        evaluation, or report relating to programs or practices 
        of the applicable agency.
    [(e) Each year, not later than such date established by the 
Director, the head of each agency shall submit to the Director 
the results of the evaluation required under this section.
    [(f) Agencies and evaluators shall take appropriate steps 
to ensure the protection of information which, if disclosed, 
may adversely affect information security. Such protections 
shall be commensurate with the risk and comply with all 
applicable laws and regulations.
    [(g)(1) The Director shall summarize the results of the 
evaluations conducted under this section in the report to 
Congress required under section 3533(a)(8).
    [(2) The Director's report to Congress under this 
subsection shall summarize information regarding information 
security relating to national security systems in such a manner 
as to ensure appropriate protection for information associated 
with any information security vulnerability in such system 
commensurate with the risk and in accordance with all 
applicable laws.
    [(3) Evaluations and any other descriptions of information 
systems under the authority and control of the Director of 
Central Intelligence or of National Foreign Intelligence 
Programs systems under the authority and control of the 
Secretary of Defense shall be made available to Congress only 
through the appropriate oversight committees of Congress, in 
accordance with applicable laws.
    [(h) The Comptroller General shall periodically evaluate 
and report to Congress on--
            [(1) the adequacy and effectiveness of agency 
        information security policies and practices; and
            [(2) implementation of the requirements of this 
        subchapter.

[Sec. 3536. Expiration

    [This subchapter shall not be in effect after May 31, 2003.

[Sec. 3537. Authorization of appropriations

    [There are authorized to be appropriated to carry out the 
provisions of this subchapter such sums as may be necessary for 
each of fiscal years 2003 through 2007.

[Sec. 3538. Effect on existing law

    [Nothing in this subchapter, section 11331 of title 40, or 
section 20 of the National Standards and Technology Act (15 
U.S.C. 278g-3) may be construed as affecting the authority of 
the President, the Office of Management and Budget or the 
Director thereof, the National Institute of Standards and 
Technology, or the head of any agency, with respect to the 
authorized use or disclosure of information, including with 
regard to the protection of personal privacy under section 552a 
of title 5, the disclosure of information under section 552 of 
title 5, the management and disposition of records under 
chapters 29, 31, or 33 of title 44, the management of 
information resources under subchapter I of chapter 35 of this 
title, or the disclosure of information to Congress or the 
Comptroller General of the United States.]

SUBCHAPTER [III] II--INFORMATION SECURITY

           *       *       *       *       *       *       *

Sec. 3549. Effect on existing law

    Nothing in this subchapter, section 11331 of title 40, or 
section 20 of the National Standards and Technology Act (15 
U.S.C. 278g-3) may be construed as affecting the authority of 
the President, the Office of Management and Budget or the 
Director thereof, the National Institute of Standards and 
Technology, or the head of any agency, with respect to the 
authorized use or disclosure of information, including with 
regard to the protection of personal privacy under section 552a 
of title 5, the disclosure of information under section 552 of 
title 5, the management and disposition of records under 
chapters 29, 31, or 33 of title 44, the management of 
information resources under subchapter I of chapter 35 of this 
title, or the disclosure of information to the Congress or the 
Comptroller General of the United States. [While this 
subchapter is in effect, subchapter II of this chapter shall 
not apply.]
                              ----------                              

MILITARY CONSTRUCTION AUTHORIZATION ACT FOR FISCAL YEAR 2002

           *       *       *       *       *       *       *

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                    State                              Installation or location                   Amount
----------------------------------------------------------------------------------------------------------------
Alabama......................................  Anniston Army Depot.....................               $5,150,000
                          *         *         *         *         *         *         *
Alaska.......................................  Fort Richardson.........................           [$115,000,000]
                                                                                                    $117,000,000
                          *         *         *         *         *         *         *
Washington...................................  Fort Lewis..............................             $238,200,000
                                                                                        ------------------------
                                                   Total:..............................         [$1,358,750,000]
                                                                                                  $1,364,750,000
----------------------------------------------------------------------------------------------------------------

                                                                                         

           *       *       *       *       *       *       *
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a)  * * *
    (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--
            (1)  * * *
            (2) [$52,000,000] $54,000,000 (the balance of the 
        amount authorized under section 2201(a) for 
        construction of a barracks complex, D Street, at Fort 
        Richardson, Alaska);

           *       *       *       *       *       *       *

                              ----------                              

                          ACT OF JULY 22, 1970

                          (Public Law 91-347)

 AN ACT To provide for the conveyance of certain real property of the 
Federal Government to the Board of Public Instruction, Okaloosa County, 
                                Florida.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That, 
subject to section 3 of this Act, the Secretary of the Air 
Force shall donate, grant, and convey to the Board of Public 
Instruction for the County of Okaloosa, Florida, all right, 
title, and interest of the United States in and to the real 
property described in section 2 of this Act for use as 
permanent sites for Okaloosa County public schools or for other 
public purposes.

           *       *       *       *       *       *       *

    Sec. 3. The conveyance provided for by the first section of 
this Act shall be subject to the following conditions:
            (1) The real property so conveyed shall be used as 
        permanent sites for Okaloosa County public schools or 
        for other public purposes, and if such property is not 
        used for [such purpose] such a purpose, all right, 
        title, and interest in and to such real property shall 
        revert to the United States, which shall have the right 
        of immediate entry thereon.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 148 OF THE ATOMIC ENERGY ACT OF 1954

    Sec. 148. Prohibition Against the Dissemination of Certain 
Unclassified Information.--
    a. (1) In addition to any other authority or requirement 
regarding protection from dissemination of information, and 
subject to section 552(b)(3) of title 5, United States Code, 
the Secretary of Energy (hereinafter in this section referred 
to as the ``Secretary'')[, with respect to atomic energy 
defense programs,] shall prescribe such regulations, after 
notice and opportunity for public comment thereon, or issue 
such orders as may be necessary to prohibit the unauthorized 
dissemination of unclassified information pertaining to--
            (A) the design of [production facilities or 
        utilization facilities] production facilities, 
        utilization facilities, nuclear waste storage 
        facilities, or uranium enrichment facilities, or any 
        other facilities at which activities relating to 
        nuclear weapons or nuclear materials are carried out, 
        that are under the control or jurisdiction of the 
        Secretary of Energy;
            (B) security measures (including security plans, 
        procedures, and equipment) for the physical protection 
        of (i) [production or utilization facilities] such 
        facilities, (ii) nuclear material contained in such 
        facilities, or (iii) nuclear material in transit; or

           *       *       *       *       *       *       *

                              ----------                              

                  SECTION 9 OF THE SHIPPING ACT, 1916

    Sec. 9.
    (b)  * * *

           *       *       *       *       *       *       *

    (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, with the concurrence of the 
        Secretary of Defense, determines that at least one 
        replacement vessel of like 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; and
            (2) an operating agreement covering the vessel 
        under the Maritime Security Act of 2003 has expired.
                              ----------                              

MERCHANT MARINE ACT, 1936

           *       *       *       *       *       *       *

TITLE VI--VESSEL OPERATING ASSISTANCE PROGRAMS

           *       *       *       *       *       *       *

              [Subtitle B--Maritime Security Fleet Program

                        [ESTABLISHMENT OF FLEET

    [Sec. 651. (a) In General.--The Secretary of Transportation 
shall establish a fleet of active, 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-flag vessels for which there are 
in effect operating agreements under this subtitle, and shall 
be known as the Maritime Security Fleet.
    [(b) Vessel Eligibility.--A vessel is eligible to be 
included in the Fleet if the vessel is self-propelled and--
            [(1)(A) is operated by a person as an ocean common 
        carrier;
            [(B) whether in commercial service, on charter to 
        the Department of Defense, or in other employment, is 
        either--
                    [(i) a roll-on/roll-off vessel with a 
                carrying capacity of at least 80,000 square 
                feet or 500 twenty-foot equivalent units; or
                    [(ii) a lighter aboard ship vessel with a 
                barge capacity of at least 75 barges; or
            [(C) any other type of vessel that is determined by 
        the Secretary to be suitable for use by the United 
        States for national defense or military purposes in 
        time of war or national emergency;
            [(2)(A)(i) is a United States-documented vessel; 
        and
            [(ii) on the date an operating agreement covering 
        the vessel is entered into under this subtitle, is--
                    [(I) a LASH vessel that is 25 years of age 
                or less; or
                    [(II) any other type of vessel that is 15 
                years of age or less;
        except that the Secretary of Transportation may waive 
        the application of clause (ii) if the Secretary, in 
        consultation with the Secretary of Defense, determines 
        that the waiver is in the national interest; or
            [(B) it is not a United States-documented vessel, 
        but the owner of the vessel has demonstrated an intent 
        to have the vessel documented under chapter 121 of 
        title 46, United States Code, if it is included in the 
        Fleet, and the vessel will be less than 10 years of age 
        on the date of that documentation;
            [(3) the Secretary of Transportation determines 
        that the vessel is necessary to maintain a United 
        States presence in international commercial shipping 
        or, after consultation with the Secretary of Defense, 
        determines that the vessel is militarily useful for 
        meeting the sealift needs of the United States with 
        respect to national emergencies; and
            [(4) at the time an operating agreement for the 
        vessel is entered into under this subtitle, the vessel 
        will be eligible for documentation under chapter 121 of 
        title 46, United States Code.

                         [OPERATING AGREEMENTS

    [Sec. 652. (a) In General.--The Secretary of Transportation 
shall require, as a condition of including any vessel in the 
Fleet, that the owner or operator of the vessel enter into an 
operating agreement with the Secretary under this section. 
Notwithstanding subsection (g), the Secretary may enter into an 
operating agreement for, among other vessels that are eligible 
to be included in the Fleet, any vessel which continues to 
operate under an operating-differential subsidy contract under 
subtitle A or which is under charter to the Department of 
Defense.
    [(b) Requirements for Operation.--An operating agreement 
under this section shall require that, during the period a 
vessel is operating under the agreement--
            [(1) the vessel--
                    [(A) shall be operated exclusively in the 
                foreign trade or in mixed foreign and domestic 
                trade allowed under a registry endorsement 
                issued under section 12105 of title 46, United 
                States Code, and
                    [(B) shall not otherwise be operated in the 
                coastwise trade; and
            [(2) the vessel shall be documented under chapter 
        121 of title 46, United States Code.
    [(c) Regulatory Relief.--A contractor of a vessel included 
in an operating agreement under this subtitle may operate the 
vessel in the foreign commerce of the United States without 
restriction, and shall not be subject to any requirement under 
section 801, 808, 809, or 810. Participation in the program 
established by this subtitle shall not subject a contractor to 
section 805 or to any provision of subtitle A. The restrictions 
of section 901(b)(1) of this Act 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 under an operating agreement under 
this subtitle.
    [(d) Effectiveness and Annual Payment Requirements of 
Operating Agreements.--
            [(1) Effectiveness.--The Secretary of 
        Transportation may enter into an operating agreement 
        under this subtitle for fiscal year 1996. 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 2005.
            [(2) Annual payment.--An operating agreement under 
        this subtitle shall require, subject to the 
        availability of appropriations and the other provisions 
        of this section, that the Secretary of Transportation 
        pay each fiscal year to the contractor, for each vessel 
        that is covered by the operating agreement, an amount 
        equal to $2,300,000 for fiscal year 1996 and $2,100,000 
        for each fiscal year thereafter in which the agreement 
        is in effect. 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.
    [(e) 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 of 
Transportation, that the vessel has been and will be operated 
in accordance with subsection (b)(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.
    [(f) Operating Agreement is Obligation of United States 
Government.--An operating agreement under this subtitle 
constitutes a contractual obligation of the United States 
Government to pay the amounts provided for in the agreement to 
the extent of actual appropriations.
    [(g) Limitations.--The Secretary of Transportation shall 
not make any payment under this subtitle for a vessel with 
respect to any days for which the vessel is--
            [(1) subject to an operating-differential subsidy 
        contract under subtitle A or under a charter to the 
        United States Government, other than a charter pursuant 
        to section 653;
            [(2) not operated or maintained in accordance with 
        an operating agreement under this subtitle; or
            [(3) more than 25 years of age, except that the 
        Secretary may make such payments for a LASH vessel for 
        any day for which the vessel is more than 25 years of 
        age if that vessel--
                    [(A) is modernized after January 1, 1994,
                    [(B) is modernized before it is 25 years of 
                age, and
                    [(C) is not more than 30 years of age.
    [(h) Payments.--With respect to payments under this 
subtitle for a vessel covered by an operating agreement, the 
Secretary of Transportation--
            [(1) except as provided in paragraph (2), shall not 
        reduce any payment for the operation of a vessel to 
        carry military or other preference cargoes under 
        section 2631 of title 10, United States Code, the Act 
        of March 26, 1934 (46 App. U.S.C. 1241-1), section 
        901(a), 901(b), or 901b of this Act, or any other cargo 
        preference law of the United States;
            [(2) shall not make any payment for any day that a 
        vessel is engaged in transporting more than 7,500 tons 
        of civilian bulk preference cargoes pursuant to section 
        901(a), 901(b), or 901b 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 a vessel 
        covered by an operating agreement is not operated in 
        accordance with subsection (b)(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.
    [(i) Priority for Awarding Agreements.--Subject to the 
availability of appropriations, the Secretary shall enter into 
operating agreements according to the following priority:
            [(1) Vessels owned by citizens.--
                    [(A) Priority.--First, for any vessel that 
                is--
                            [(i) owned and operated by persons 
                        who are citizens of the United States 
                        under section 2 of the Shipping Act, 
                        1916; or
                            [(ii) less than 10 years of age and 
                        owned and operated by a corporation 
                        that is--
                                    [(I) eligible to document a 
                                vessel under chapter 121 of 
                                title 46, United States Code; 
                                and
                                    [(II) affiliated with a 
                                corporation operating or 
                                managing for the Secretary of 
                                Defense other vessels 
                                documented under that chapter, 
                                or chartering other vessels to 
                                the Secretary of Defense.
                    [(B) Limitation on number of operating 
                agreements.--The total number of operating 
                agreements that may be entered into by a person 
                under the priority in subparagraph (A)--
                            [(i) for vessels described in 
                        subparagraph (A)(i), may not exceed the 
                        sum of--
                                    [(I) the number of United 
                                States-documented vessels the 
                                person operated in the foreign 
                                commerce of the United States 
                                (except mixed coastwise and 
                                foreign commerce) on May 17, 
                                1995; and
                                    [(II) the number of United 
                                States-documented vessels the 
                                person chartered to the 
                                Secretary of Defense on that 
                                date; and
                            [(ii) for vessels described in 
                        subparagraph (A)(ii), may not exceed 5 
                        vessels.
                    [(C) Treatment of related parties.--For 
                purposes of subparagraph (B), a related party 
                with respect to a person shall be treated as 
                the person.
            [(2) Other vessels owned by citizens and government 
        contractors.--To the extent that amounts are available 
        after applying paragraph (1), any vessel that is owned 
        and operated by a person who is--
                    [(A) a citizen of the United States under 
                section 2 of the Shipping Act, 1916, that has 
                not been awarded an operating agreement under 
                the priority established under paragraph (1); 
                or
                    [(B)(i) eligible to document a vessel under 
                chapter 121 of title 46, United States Code; 
                and
                    [(ii) affiliated with a corporation 
                operating or managing other United States-
                documented vessels for the Secretary of Defense 
                or chartering other vessels to the Secretary of 
                Defense.
            [(3) Other vessels.--To the extent that amounts are 
        available after applying paragraphs (1) and (2), any 
        other eligible vessel.
    [(j) 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 
eligible to enter into that operating agreement under this 
subtitle after notification of the Secretary in accordance with 
regulations prescribed by the Secretary, unless the transfer is 
disapproved by the Secretary within 90 days after the date of 
that notification. A person to whom an operating agreement is 
transferred may receive payments from the Secretary under the 
agreement only if each vessel to be covered by the agreement 
after the transfer is an eligible vessel under section 651(b).
    [(k) Reversion of Unused Authority.--The obligation of the 
Secretary to make payments under an operating agreement under 
this subtitle shall terminate with respect to a vessel if the 
contractor fails to engage in operation of the vessel for which 
such payment is required--
            [(1) within one year after the effective date of 
        the operating agreement, in the case of a vessel in 
        existence on the effective date of the agreement, or
            [(2) within 30 months after the effective date of 
        the operating agreement, in the case of a vessel to be 
        constructed after that effective date.
    [(l) Procedure for Considering Application; Effective Date 
for Certain Vessels.--
            [(1) Procedures.--No later than 30 days after the 
        date of the enactment of the Maritime Security Act of 
        1996, the Secretary shall accept applications for 
        enrollment of vessels in the Fleet, and within 90 days 
        after receipt of an application for enrollment of a 
        vessel in the Fleet, the Secretary shall enter into an 
        operating agreement with the applicant or provide in 
        writing the reason for denial of that application.
            [(2) Effective date.--Unless an earlier date is 
        requested by the applicant, the effective date for an 
        operating agreement with respect to a vessel which is, 
        on the date of entry into an operating agreement, 
        either subject to a contract under subtitle A or on 
        charter to the United States Government, other than a 
        charter under section 653, shall be the expiration or 
        termination date of the contract under subtitle A or of 
        the Government charter covering the vessel, 
        respectively, or any earlier date the vessel is 
        withdrawn from that contract or charter.
    [(m) Early Termination.--An operating agreement under this 
subtitle 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. Vessels covered 
by an operating agreement terminated under this subsection 
shall remain documented under chapter 121 of title 46, United 
States Code, until the date the operating agreement would have 
terminated according to its terms. A contractor who terminates 
an operating agreement pursuant to this subsection shall 
continue to be bound by the provisions of section 653 until the 
date the operating agreement would have terminated according to 
its terms. All terms and conditions of an Emergency 
Preparedness Agreement entered into under section 653 shall 
remain in effect until the date the operating agreement would 
have terminated according to its terms, except that the terms 
of such Emergency Preparedness Agreement may be modified by the 
mutual consent of the contractor and the Secretary of 
Transportation and the Secretary of Defense.
    [(n) 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 section 655 for that fiscal 
year, the Secretary of Transportation shall notify the Congress 
that operating agreements authorized under this subtitle 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. If funds are not 
appropriated under the authority provided by section 655 for 
any fiscal year by the 60th day of that fiscal year, then each 
vessel covered by an operating agreement under this subtitle 
for which funds are not available is thereby released from any 
further obligation under the operating agreement, and the 
vessel owner or operator may transfer and register such vessel 
under a foreign registry deemed acceptable by the Secretary of 
Transportation, notwithstanding any other provision of law. If 
section 902 is applicable to such vessel after registration of 
the vessel under such a registry, the vessel is available to be 
requisitioned by the Secretary of Transportation pursuant to 
section 902.
    [(o) Award of Operating Agreements.--
            [(1) In general.--The Secretary of Transportation, 
        subject to paragraph (4), shall award operating 
        agreements within each priority under subsection (i) 
        (1), (2), and (3) under regulations prescribed by the 
        Secretary.
            [(2) Number of agreements awarded.--Regulations 
        under paragraph (1) shall provide that if appropriated 
        amounts are not sufficient for operating agreements for 
        all vessels within a priority under subsection (i) (1), 
        (2), or (3), the Secretary shall award to each person 
        submitting a request a number of operating agreements 
        that bears approximately the same ratio to the total 
        number of vessels in the priority, as the amount of 
        appropriations available for operating agreements for 
        vessels in the priority bears to the amount of 
        appropriations necessary for operating agreements for 
        all vessels in the priority.
            [(3) Treatment of related parties.--For purposes of 
        paragraph (2), a related party with respect to a person 
        shall be treated as the person.
            [(4) Preference for united states-built vessels.--
        In awarding operating agreements for vessels within a 
        priority under subsection (i) (1), (2), or (3), the 
        Secretary shall give preference to a vessel that was 
        constructed in the United States, to the extent such 
        preference is consistent with establishment of a fleet 
        described in the first sentence of section 651(a) 
        (taking into account the age of the vessel, the nature 
        of service provided by the vessel, and the commercial 
        viability of the vessel).
    [(p) Notice to United States Shipbuilders Required.--The 
Secretary shall include in any operating agreement under this 
subtitle a requirement that the contractor under the agreement 
shall, by not later than 30 days after soliciting any bid or 
offer for the construction of any vessel in a foreign shipyard 
and before entering into a contract for construction of a 
vessel in a foreign shipyard, provide notice of the intent of 
the contractor to enter into such a contract to each shipyard 
in the United States that is capable of constructing the 
vessel.

                    [NATIONAL SECURITY REQUIREMENTS

    [Sec. 653. (a) Emergency Preparedness Agreement.--
            [(1) Requirement to enter agreement.--The Secretary 
        of Transportation shall establish an Emergency 
        Preparedness Program under this section that is 
        approved by the Secretary of Defense. Under the 
        program, the Secretary of Transportation shall include 
        in each operating agreement under this subtitle 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 subtitle.
            [(2) Terms of agreement.--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 (including any natural disaster, international 
        peace operation, 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 subtitle shall make 
        available commercial transportation resources 
        (including services). The basic terms of the Emergency 
        Preparedness Agreements shall be established pursuant 
        to consultations among the Secretary, the Secretary of 
        Defense, and Maritime Security Program contractors. 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.
            [(3) Participation after expiration of operating 
        agreement.--Except as provided by section 652(m), the 
        Secretary may not require, through an Emergency 
        Preparedness Agreement or operating agreement, that a 
        contractor continue to participate in an Emergency 
        Preparedness Agreement when 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.
    [(b) 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 may determine to be 
necessary, seeking to minimize disruption of the contractor's 
service to commercial shippers.
    [(c) Compensation.--
            [(1) In general.--The Secretary of Transportation 
        shall provide in each Emergency Preparedness Agreement 
        for 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 include all the contractor's 
                costs associated with provision and use of the 
                contractor's commercial resources to meet 
                emergency requirements;
                    [(C) in the case of a charter of an entire 
                vessel, shall be fair and reasonable;
                    [(D) shall be in addition to and shall not 
                in any way reflect amounts payable under 
                section 652; and
                    [(E) shall be provided from the time that a 
                vessel or resource is diverted from commercial 
                service until the time that it reenters 
                commercial service.
            [(3) Approval of amount by secretary of defense.--
        No compensation may be provided for a vessel under this 
        subsection unless the amount of the compensation is 
        approved by the Secretary of Defense.
    [(d) Temporary Replacement Vessels.--Notwithstanding any 
other provision of this subtitle or of other law to the 
contrary--
            [(1) a contractor or other person that commits to 
        make available a vessel or vessel capacity under the 
        Emergency Preparedness Program or another primary 
        sealift readiness program approved by the Secretary of 
        Defense may, during the activation of that vessel or 
        capacity under that program, operate or employ in 
        foreign commerce a foreign-flag vessel or foreign-flag 
        vessel capacity as a temporary replacement for the 
        activated vessel or capacity; 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 App. U.S.C. 1241-1), and sections 901(a), 901(b), 
        and 901b of this Act to the same extent as the 
        eligibility of the vessel or vessel capacity replaced.
    [(e) 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 Government shall fully 
        compensate the contractor for any necessary repair or 
        replacement.
            [(2) Limitation on liability of united states.--
        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.
            [(3) Limitation on application of other 
        requirements.--Sections 902 and 909 of this Act shall 
        not apply to a vessel while it is covered by an 
        Emergency Preparedness Agreement under this subtitle. 
        Any Emergency Preparedness Agreement entered into by a 
        contractor shall supersede any other agreement between 
        that contractor and the Government for vessel 
        availability in time of war or national emergency.

                              [DEFINITIONS

    [Sec. 654. In this subtitle:
            [(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 
        of Transportation under section 652.
            [(3) Ocean common carrier.--The term ``ocean common 
        carrier'' means a person holding itself out to the 
        general public to operate vessels to provide 
        transportation by water of passengers or cargo between 
        the United States and a foreign country for 
        compensation, that--
                    [(A) assumes responsibility for the 
                transportation from the port or point of 
                receipt to the port or point of destination, 
                and
                    [(B) utilizes, for all or part of that 
                transportation, a vessel operating on the high 
                seas or the Great Lakes between a port in the 
                United States and a port in a foreign country, 
                except that the term does not include a common 
                carrier engaged in ocean transportation by 
                ferry boat, ocean tramp, or chemical parcel-
                tanker. As used in this paragraph, ``chemical 
                parcel-tanker'' means a vessel whose cargo-
                carrying capability consists of individual 
                cargo tanks for bulk chemicals that are a 
                permanent part of the vessel, that have 
                segregation capability with piping systems to 
                permit simultaneous carriage of several bulk 
                chemical cargoes with minimum risk of cross-
                contamination, and that has a valid certificate 
                of fitness under the International Maritime 
                Organization Code for the Construction and 
                Equipment of Ships Carrying Dangerous Chemicals 
                in Bulk.
            [(4) Fleet.--The term ``Fleet'' means the Maritime 
        Security Fleet established pursuant to section 651(a).
            [(5) LASH vessel.--The term ``LASH vessel'' means a 
        lighter aboard ship vessel.
            [(6) United states-documented vessel.--The term 
        ``United States-documented vessel'' means a vessel 
        documented under chapter 121 of title 46, United States 
        Code.

                    [AUTHORIZATION OF APPROPRIATIONS

    [Sec. 655. There are authorized to be appropriated for 
operating agreements under this subtitle, to remain available 
until expended, $100,000,000 for fiscal year 1996 and such sums 
as may be necessary, not to exceed $100,000,000, for each 
fiscal year thereafter through fiscal year 2005.

                     [NONCONTIGUOUS DOMESTIC TRADES

    [Sec. 656. (a)(1) Except as otherwise provided in this 
section, no contractor or related party shall receive payments 
pursuant to this subtitle during a period when it participates 
in a noncontiguous domestic trade, except upon written 
permission of the Secretary of Transportation. Such written 
permission shall also be required for any material change in 
the number or frequency of sailings, the capacity offered, or 
the domestic ports called by a contractor or related party in a 
noncontiguous domestic trade. The Secretary may grant such 
written permission pursuant to written application of such 
contractor or related party unless the Secretary finds that--
            [(A) existing service in that trade is adequate; or
            [(B) the service sought to be provided by the 
        contractor or related party--
                    [(i) would result in unfair competition to 
                any other person operating vessels in such 
                noncontiguous domestic trade, or
                    [(ii) would be contrary to the objects and 
                policy of this Act.
    [(2) For purposes of this subsection, ``written permission 
of the Secretary'' means permission which states the capacity 
offered, the number and frequency of sailings, and the domestic 
ports called, and which is granted following--
            [(A) written application containing the information 
        required by paragraph (e)(1) by a person seeking such 
        written permission, notice of which application shall 
        be published in the Federal Register within 15 days of 
        filing of such application with the Secretary;
            [(B) holding of a hearing on the application under 
        section 554 of title 5, United States Code, in which 
        every person, firm or corporation having any interest 
        in the application shall be permitted to intervene and 
        be heard; and
            [(C) final decision on the application by the 
        Secretary within 120 days following conclusion of such 
        hearing.
    [(b)(1) Subsection (a) shall not apply in any way to 
provision by a contractor of service within the level of 
service provided by that contractor as of the date established 
by subsection (c) or to provision of service permitted by 
subsection (d).
    [(2) Subsection (a) shall not apply to operation by a 
contractor of a self-propelled tank vessel in a noncontiguous 
domestic trade, or to ownership by a contractor of an interest 
in a self-propelled tank vessel that operates in a 
noncontiguous domestic trade.
    [(c) The date referred to in subsection (b) shall be August 
9, 1995: Provided however, That with respect to tug and barge 
service to Alaska the date referred to in subsection (b) shall 
be July 1, 1992.
    [(d) A contractor may provide service in a trade in 
addition to the level of service provided as of the applicable 
date established by subsection (c) in proportion to the annual 
increase in real gross product of the noncontiguous State or 
Commonwealth served since the applicable date established by 
subsection (c).
    [(e)(1) A person applying for award of an agreement under 
this subtitle shall include with the application a description 
of the level of service provided by that person in each 
noncontiguous domestic trade served as of the date applicable 
under subsection (c). The application also shall include, for 
each such noncontiguous domestic trade: a list of vessels 
operated by that person in such trade, their container carrying 
capacity expressed in twenty-foot equivalent units (TEUs) or 
other carrying capacity, the itinerary for each such vessel, 
and such other information as the Secretary may require by 
regulation. Such description and information shall be made 
available to the public. Within 15 days of the date of an 
application for an agreement by a person seeking to provide 
service pursuant to subsections (b) and (c) of this section, 
the Secretary shall cause to be published in the Federal 
Register notice of such description, along with a request for 
public comment thereon. Comments on such description shall be 
submitted to the Secretary within 30 days of publication in the 
Federal Register. Within 15 days after receipt of comments, the 
Secretary shall issue a determination in writing either 
accepting, in whole or part, or rejecting use of the 
applicant's description to establish the level of service 
provided as of the date applicable under subsection (c): 
Provided, That notwithstanding the provisions of this 
subsection, processing of the application for an award of an 
agreement shall not be suspended or delayed during the time in 
which comments may be submitted with respect to the 
determination or during the time prior to issuance by the 
Secretary of the required determination: Provided further, That 
if the Secretary does not make the determination required by 
this paragraph within the time provided by this paragraph, the 
description of the level of service provided by the applicant 
shall be deemed to be the level of service provided as of the 
applicable date until such time as the Secretary makes the 
determination.
    [(2) No contractor shall implement the authority granted in 
subsection (d) of this section except as follows:
            [(A) An application shall be filed with the 
        Secretary which shall state the increase in capacity 
        sought to be offered, a description of the means by 
        which such additional capacity would be provided, the 
        basis for applicant's position that such increase in 
        capacity would be in proportion to or less than the 
        increase in real gross product of the relevant 
        noncontiguous State or Commonwealth since the 
        applicable date established by subsection (c), and such 
        information as the Secretary may require so that the 
        Secretary may accurately determine such increase in 
        real gross product of the relevant noncontiguous State 
        or Commonwealth.
            [(B) Such increase in capacity sought by applicant 
        and such information shall be made available to the 
        public.
            [(C) Within 15 days of the date of an application 
        pursuant to this paragraph the Secretary shall cause to 
        be published in the Federal Register notice of such 
        application, along with a request for public comment 
        thereon.
            [(D) Comments on such application shall be 
        submitted to the Secretary within 30 days of 
        publication in the Federal Register.
            [(E) Within 15 days after receipt of comments, the 
        Secretary shall issue a determination in writing either 
        accepting, in whole or part, or rejecting, the increase 
        in capacity sought by the applicant as being in 
        proportion to or less than the increase in real gross 
        product of the relevant noncontiguous State or 
        Commonwealth since the applicable date established by 
        subsection (c): Provided, That, notwithstanding the 
        provisions of this section, if the Secretary does not 
        make the determination required by this paragraph 
        within the time provided by this paragraph, the 
        increase in capacity sought by applicant shall be 
        permitted as being in proportion to or less than such 
        increase in real gross product until such time as the 
        Secretary makes the determination.
    [(f) With respect to provision by a contractor of service 
in a noncontiguous domestic trade not authorized by this 
section, the Secretary shall deny payments under the operating 
agreement with respect to the period of provision of such 
service but shall deny payments only in part if the extent of 
provision of such unauthorized service was de minimis or not 
material.
    [(g) Notwithstanding any other provision of this subtitle, 
the Secretary may issue temporary permission for any United 
States citizen, as that term is defined in section 2 of the 
Shipping Act, 1916, to provide service to a noncontiguous State 
or Commonwealth upon the request of the Governor of such 
noncontiguous State or Commonwealth, in circumstances where an 
Act of God, a declaration of war or national emergency, or any 
other condition occurs that prevents ocean transportation 
service to such noncontiguous State or Commonwealth from being 
provided by persons currently providing such service. Such 
temporary permission shall expire 90 days from date of grant, 
unless extended by the Secretary upon written request of the 
Governor of such State or Commonwealth.
    [(h) As used in this section:
            [(1) The term ``level of service provided by a 
        contractor'' in a trade as of a date means--
                    [(A) with respect to service other than 
                service described in (B), the total annual 
                capacity provided by the contractor in that 
                trade for the 12 calendar months preceding that 
                date: Provided, That, with respect to 
                unscheduled, contract carrier tug and barge 
                service between points in Alaska south of the 
                Arctic Circle and points in the contiguous 48 
                States, the level of service provided by a 
                contractor shall include 100 percent of the 
                capacity of the equipment dedicated to such 
                service on the date specified in subsection (c) 
                and actually utilized in that service in the 
                two-year period preceding that date, excluding 
                service to points between Anchorage, Alaska and 
                Whittier, Alaska, served by common carrier 
                service unless such unscheduled service is only 
                for carriage of oil or pursuant to a contract 
                with the United States military: Provided 
                further, That, with respect to scheduled barge 
                service between the contiguous 48 States and 
                Puerto Rico, such total annual capacity shall 
                be deemed as such total annual capacity plus 
                the annual capacity of two additional barges, 
                each capable of carrying 185 trailers and 100 
                automobiles; and
                    [(B) with respect to service provided by 
                container vessels, the overall capacity equal 
                to the sum of--
                            [(i) 100 percent of the capacity of 
                        vessels operated by or for the 
                        contractor on that date, with the 
                        vessels' configuration and frequency of 
                        sailing in effect on that date, and 
                        which participate solely in that 
                        noncontiguous domestic trade; and
                            [(ii) 75 percent of the capacity of 
                        vessels operated by or for the 
                        contractor on that date, with the 
                        vessels' configuration and frequency of 
                        sailing in effect on that date, and 
                        which participate in that noncontiguous 
                        domestic trade and in another trade, 
                        provided that the term does not include 
                        any restriction on frequency, or number 
                        of sailings, or on ports called within 
                        such overall capacity.
            [(2) The level of service set forth in paragraph 
        (1) shall be described with the specificity required by 
        subsection (e)(1) and shall be the level of service in 
        a trade with respect to the applicable date established 
        by subsection (c) only if the service is not abandoned 
        thereafter, except for interruptions due to military 
        contingency or other events beyond the contractor's 
        control.
            [(3) 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.
            [(4) The term ``related party'' means--
                    [(A) a holding company, subsidiary, 
                affiliate, or associate of a contractor who is 
                a party to an operating agreement under this 
                subtitle; and
                    [(B) an officer, director, agent, or other 
                executive of a contractor or of a person 
                referred to in subparagraph (A).]

           *       *       *       *       *       *       *

TITLE VIII--CONTRACT PROVISIONS

           *       *       *       *       *       *       *

    [Sec. 804. (a) Except as provided in subsections (b) and 
(c) of this section, it shall be unlawful for any contractor 
receiving an operating-differential subsidy under title VI or 
for any charterer of vessels under title VII of this Act, or 
any holding company, subsidiary, affiliate, or associate of 
such contractor or such charterer, or any officer, director, 
agent, or executive thereof, directly or indirectly to own, 
charter, act as agent or broker for, or operate any foreign-
flag vessel which competes with any American-flag service 
determined by the Secretary of Transportation to be essential 
as provided in section 211 of this Act.
    [(b) Under special circumstances and for good cause shown, 
the Secretary of Transportation may, in his discretion, waive 
the provisions of subsection (a) of this section as to any 
contractor, for a specific period of time.
    [(c) Upon application to the Secretary of Transportation 
the provisions of subsection (a) of this section shall not 
apply to the following specified activities of any contractor 
under title VI, or those in the foregoing specified 
relationship to him, who was not such a contractor on April 
15,1970, and who shall have complied with the requirement set 
forth in subsection (d) of this section:
            [(1) Until April 15, 1990--
                    [(A) the continued ownership, charter, or 
                operation of a foreign-flag vessel engaged in 
                the carriage of dry or liquid cargoes in bulk 
                which was owned, chartered, or operated by such 
                contractor, or those in the foregoing specified 
                relationship to him, on April 15, 1970;
                    [(B) the continued acting as agent or 
                broker for a vessel described in subsection 
                (c)(1)(A) of this section which is owned, 
                chartered, or operated by such contractor, or 
                those in the foregoing specified relationship 
                to him, and for which such contractor, or those 
                in the foregoing specified relationship to him, 
                were acting as agent or broker on April 15, 
                1970;
    [(d) No contractor under title VI, whether he shall have 
become such a contractor before or after the date of enactment 
of this section, shall avail himself of the provisions of 
subsection (c) of this section unless not later than ninety 
days after the enactment of this section there shall have been 
filed with the Secretary of Transportation a full and complete 
statement, satisfactory in form and substance to the Secretary, 
of all foreign-flag vessels which he, or those in the foregoing 
specified relationship to him, directly or indirectly owned, 
chartered, acted as agent or broker, for, or operated on April 
15, 1970.
    [(e) During the period of time provided for in subsection 
(c) of this section, the Secretary of Transportation shall 
include in the annual report pursuant to section 208 of this 
Act, a report on the activities of contractors under such 
subsection, including but not limited to, the nature and extent 
of such activities; its effect, if any, upon carrying forward 
the national policy declared in section 101 of this Act; and 
the Secretary's recommendations for legislation, if such is 
deemed to be necessary.
    [(f) The provisions of subsection (a) shall not preclude a 
contractor receiving assistance under subtitle A or B of title 
VI, or any holding company, subsidiary, or affiliate of the 
contractor, or any officer, director, agent, or executive 
thereof, from--
            [(1) owning, chartering, or operating any foreign-
        flag vessel on a voyage or a segment of a voyage that 
        does not call at a port in the United States;
            [(2) owning, chartering, or operating any foreign-
        flag vessel in line haul service between the United 
        States and foreign ports if--
                    [(A) the foreign-flag vessel was owned, 
                chartered, or operated by, or is a replacement 
                for a foreign-flag vessel owned, chartered, or 
                operated by, such owner or operator, or any 
                holding company, subsidiary, affiliate, or 
                associate of such owner or operator, on the 
                date of enactment of the Maritime Security Act 
                of 1996;
                    [(B) the owner or operator, with respect to 
                each additional foreign-flag vessel, other than 
                a time chartered vessel, has first applied to 
                have that vessel covered by an operating 
                agreement under subtitle B of title VI, and the 
                Secretary has not awarded an operating 
                agreement with respect to that vessel within 90 
                days after the filing of the application; or
                    [(C) the vessel has been placed under 
                foreign documentation pursuant to section 9 of 
                the Shipping Act, 1916 [46 App. U.S.C. 808), 
                except that any foreign-flag vessel, other than 
                a time chartered vessel, a replacement vessel 
                under section 653(d), or a vessel operated by 
                the owner or operator on the date of enactment 
                of the Maritime Security Act of 1996, in line 
                haul service between the United States and 
                foreign ports is registered under the flag of 
                an effective United States-controlled foreign 
                flag, and available to be requisitioned by the 
                Secretary of Transportation pursuant to section 
                902 of this Act;
            [(3) owning, chartering, or operating foreign-flag 
        bulk cargo vessels that are operated in foreign-to-
        foreign service or the foreign commerce of the United 
        States;
            [(4) chartering or operating foreign-flag vessels 
        that are operated solely as replacement vessels for 
        United States-flag vessels or vessel capacity that are 
        made available to the Secretary of Defense pursuant to 
        section 653 of this Act; or
            [(5) entering into time or space charter or other 
        cooperative agreements with respect to foreign-flag 
        vessels or acting as agent or broker for a foreign-flag 
        vessel or vessels.]

           *       *       *       *       *       *       *

TITLE XI--FEDERAL SHIP MORTGAGE INSURANCE

           *       *       *       *       *       *       *

    Sec. 1103. (a)  * * *

           *       *       *       *       *       *       *

    (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 C of the Maritime 
Security Act of 2003.

           *       *       *       *       *       *       *

                              ----------                              

             SECTION 12102 OF TITLE 46, UNITED STATES CODE

Sec. 12102. Vessels eligible for documentation

    (a)  * * *

           *       *       *       *       *       *       *

    (d)(1)  * * *

           *       *       *       *       *       *       *

    (4) If a person chartering a vessel from a trust that is 
qualified under paragraph (2) of this subsection is a citizen 
of the United States under section 2 of the Shipping Act, 1916 
(46 App. U.S.C. 802), then the vessel is deemed to be owned by 
a citizen of the United States for purposes of that section and 
related laws, except for subtitle B of title VI of the Merchant 
Marine Act, 1936 or section 3511(b) of the Maritime Security 
Act of 2003.

                                
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