PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1519

Public Law 107–248

107th Congress

An Act

Making appropriations for the Department of Defense for the fiscal year ending

September 30, 2003, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled, That the

following sums are appropriated, out of any money in the Treasury

not otherwise appropriated, for the fiscal year ending September

30, 2003, for military functions administered by the Department

of Defense, and for other purposes, namely:

TITLE I

MILITARY PERSONNEL

MILITARY PERSONNEL, ARMY

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except members

of reserve components provided for elsewhere), cadets, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), and to the Department

of Defense Military Retirement Fund, $26,855,017,000.

MILITARY PERSONNEL, NAVY

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members

of the Reserve provided for elsewhere), midshipmen, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), and to the Department

of Defense Military Retirement Fund, $21,927,628,000.

MILITARY PERSONNEL, MARINE CORPS

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except

Department of

Defense

Appropriations

Act, 2003.

Oct. 23, 2002

[H.R. 5010]

116 STAT. 1520 PUBLIC LAW 107–248—OCT. 23, 2002

members of the Reserve provided for elsewhere); and for payments

pursuant to section 156 of Public Law 97–377, as amended (42

U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $8,501,087,000.

MILITARY PERSONNEL, AIR FORCE

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel

(including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members

of reserve components provided for elsewhere), cadets, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), and to the Department of Defense Military Retirement Fund, $21,981,277,000.

RESERVE PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Army Reserve on active

duty under sections 10211, 10302, and 3038 of title 10, United

States Code, or while serving on active duty under section 12301(d)

of title 10, United States Code, in connection with performing

duty specified in section 12310(a) of title 10, United States Code,

or while undergoing reserve training, or while performing drills

or equivalent duty or other duty, and for members of the Reserve

Officers’ Training Corps, and expenses authorized by section 16131

of title 10, United States Code; and for payments to the Department

of Defense Military Retirement Fund, $3,374,355,000.

RESERVE PERSONNEL, NAVY

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Navy Reserve on active

duty under section 10211 of title 10, United States Code, or while

serving on active duty under section 12301(d) of title 10, United

States Code, in connection with performing duty specified in section

12310(a) of title 10, United States Code, or while undergoing reserve

training, or while performing drills or equivalent duty, and for

members of the Reserve Officers’ Training Corps, and expenses

authorized by section 16131 of title 10, United States Code; and

for payments to the Department of Defense Military Retirement

Fund, $1,907,552,000.

RESERVE PERSONNEL, MARINE CORPS

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Marine Corps Reserve

on active duty under section 10211 of title 10, United States Code,

or while serving on active duty under section 12301(d) of title

10, United States Code, in connection with performing duty specified

in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent

duty, and for members of the Marine Corps platoon leaders class,

and expenses authorized by section 16131 of title 10, United States

Code; and for payments to the Department of Defense Military

Retirement Fund, $553,983,000.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1521

RESERVE PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Air Force Reserve on

active duty under sections 10211, 10305, and 8038 of title 10,

United States Code, or while serving on active duty under section

12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States

Code, or while undergoing reserve training, or while performing

drills or equivalent duty or other duty, and for members of the

Air Reserve Officers’ Training Corps, and expenses authorized by

section 16131 of title 10, United States Code; and for payments

to the Department of Defense Military Retirement Fund,

$1,236,904,000.

NATIONAL GUARD PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Army National Guard

while on duty under section 10211, 10302, or 12402 of title 10

or section 708 of title 32, United States Code, or while serving

on duty under section 12301(d) of title 10 or section 502(f) of

title 32, United States Code, in connection with performing duty

specified in section 12310(a) of title 10, United States Code, or

while undergoing training, or while performing drills or equivalent

duty or other duty, and expenses authorized by section 16131 of

title 10, United States Code; and for payments to the Department

of Defense Military Retirement Fund, $5,114,588,000.

NATIONAL GUARD PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Air National Guard on

duty under section 10211, 10305, or 12402 of title 10 or section

708 of title 32, United States Code, or while serving on duty

under section 12301(d) of title 10 or section 502(f) of title 32,

United States Code, in connection with performing duty specified

in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or

other duty, and expenses authorized by section 16131 of title 10,

United States Code; and for payments to the Department of Defense

Military Retirement Fund, $2,125,161,000.

TITLE II

OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE, ARMY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Army, as authorized by law;

and not to exceed $10,818,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of the Army, and payments may be made on

his certificate of necessity for confidential military purposes,

$23,992,082,000: Provided, That of the funds appropriated in this

116 STAT. 1522 PUBLIC LAW 107–248—OCT. 23, 2002

paragraph, not less than $355,000,000 shall be made available

only for conventional ammunition care and maintenance: Provided

further, That of the funds made available under this heading, $2,500,000 shall be available for Fort Baker, in accordance with

the terms and conditions as provided under the heading ‘‘Operation

and Maintenance, Army’’, in Public Law 107–117.

OPERATION AND MAINTENANCE, NAVY

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Navy and the Marine Corps,

as authorized by law; and not to exceed $4,415,000 can be used

for emergencies and extraordinary expenses, to be expended on

the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential

military purposes, $29,331,526,000.

OPERATION AND MAINTENANCE, MARINE CORPS

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Marine Corps, as authorized

by law, $3,585,759,000.

OPERATION AND MAINTENANCE, AIR FORCE

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Air Force, as authorized by law;

and not to exceed $7,902,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of the Air Force, and payments may be made

on his certificate of necessity for confidential military purposes,

$27,339,533,000: Provided, That notwithstanding any other provision of law, that of the funds available under this heading, $750,000

shall only be available to the Secretary of the Air Force for a

grant to Florida Memorial College for the purpose of funding

minority aviation training: Provided further, That of the amount

provided under this heading, $2,000,000 may be obligated for the

deployment of Air Force active and Reserve aircrews that perform

combat search and rescue operations to operate and evaluate the

United Kingdom’s Royal Air Force EH–101 helicopter, to receive

training using that helicopter, and to exchange operational techniques and procedures regarding that helicopter.

OPERATION AND MAINTENANCE, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law, $14,773,506,000, of which not to exceed $25,000,000

may be available for the CINC initiative fund account; and of

which not to exceed $34,500,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of Defense, and payments may be made on his

certificate of necessity for confidential military purposes: Provided,

That notwithstanding any other provision of law, of the funds

provided in this Act for Civil Military programs under this heading,

Grants.

Grants.

Florida Memorial

College.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1523

$750,000 shall be available for a grant for Outdoor Odyssey, Roaring

Run, Pennsylvania, to support the Youth Development and Leadership program and Department of Defense STARBASE program:

Provided further, That none of the funds appropriated or otherwise

made available by this Act may be used to plan or implement

the consolidation of a budget or appropriations liaison office of

the Office of the Secretary of Defense, the office of the Secretary

of a military department, or the service headquarters of one of

the Armed Forces into a legislative affairs or legislative liaison

office: Provided further, That $4,675,000, to remain available until

expended, is available only for expenses relating to certain classified

activities, and may be transferred as necessary by the Secretary

to operation and maintenance appropriations or research, development, test and evaluation appropriations, to be merged with and

to be available for the same time period as the appropriations

to which transferred: Provided further, That any ceiling on the

investment item unit cost of items that may be purchased with

operation and maintenance funds shall not apply to the funds

described in the preceding proviso: Provided further, That the

transfer authority provided under this heading is in addition to

any other transfer authority provided elsewhere in this Act.

OPERATION AND MAINTENANCE, ARMY RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;

care of the dead; recruiting; procurement of services, supplies, and

equipment; and communications, $1,970,180,000.

OPERATION AND MAINTENANCE, NAVY RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;

care of the dead; recruiting; procurement of services, supplies, and

equipment; and communications, $1,236,809,000.

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Marine Corps Reserve; repair of facilities

and equipment; hire of passenger motor vehicles; travel and

transportation; care of the dead; recruiting; procurement of services,

supplies, and equipment; and communications, $187,532,000.

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Air Force Reserve; repair of facilities and

equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications, $2,163,104,000.

116 STAT. 1524 PUBLIC LAW 107–248—OCT. 23, 2002

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For expenses of training, organizing, and administering the

Army National Guard, including medical and hospital treatment

and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger

motor vehicles; personnel services in the National Guard Bureau;

travel expenses (other than mileage), as authorized by law for

Army personnel on active duty, for Army National Guard division,

regimental, and battalion commanders while inspecting units in

compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying

and equipping the Army National Guard as authorized by law;

and expenses of repair, modification, maintenance, and issue of

supplies and equipment (including aircraft), $4,261,707,000.

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For operation and maintenance of the Air National Guard,

including medical and hospital treatment and related expenses

in non-Federal hospitals; maintenance, operation, repair, and other

necessary expenses of facilities for the training and administration

of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of

things, hire of passenger motor vehicles; supplies, materials, and

equipment, as authorized by law for the Air National Guard; and

expenses incident to the maintenance and use of supplies, materials,

and equipment, including such as may be furnished from stocks

under the control of agencies of the Department of Defense; travel

expenses (other than mileage) on the same basis as authorized

by law for Air National Guard personnel on active Federal duty,

for Air National Guard commanders while inspecting units in

compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau,

$4,117,585,000.

OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For expenses directly relating to Overseas Contingency Operations by United States military forces, $5,000,000, to remain available until expended: Provided, That the Secretary of Defense may

transfer these funds only to military personnel accounts; operation

and maintenance accounts within this title; the Defense Health

Program appropriation; procurement accounts; research, development, test and evaluation accounts; and to working capital funds:

Provided further, That the funds transferred shall be merged with

and shall be available for the same purposes and for the same

time period, as the appropriation to which transferred: Provided

further, That upon a determination that all or part of the funds

transferred from this appropriation are not necessary for the purposes provided herein, such amounts may be transferred back to

this appropriation: Provided further, That the transfer authority

provided in this paragraph is in addition to any other transfer

authority contained elsewhere in this Act.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1525

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

For salaries and expenses necessary for the United States Court of Appeals for the Armed Forces, $9,614,000, of which not

to exceed $2,500 can be used for official representation purposes.

ENVIRONMENTAL RESTORATION, ARMY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $395,900,000, to remain

available until transferred: Provided, That the Secretary of the

Army shall, upon determining that such funds are required for

environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris of the Department

of the Army, or for similar purposes, transfer the funds made

available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to

be available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, NAVY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Navy, $256,948,000, to remain available until transferred: Provided, That the Secretary of the Navy

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste,

removal of unsafe buildings and debris of the Department of the

Navy, or for similar purposes, transfer the funds made available

by this appropriation to other appropriations made available to

the Department of the Navy, to be merged with and to be available

for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such

amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Air Force, $389,773,000, to remain

available until transferred: Provided, That the Secretary of the

Air Force shall, upon determining that such funds are required

for environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris of the Department

of the Air Force, or for similar purposes, transfer the funds made

available by this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and

to be available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation.

116 STAT. 1526 PUBLIC LAW 107–248—OCT. 23, 2002

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For the Department of Defense, $23,498,000, to remain available until transferred: Provided, That the Secretary of Defense

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste,

removal of unsafe buildings and debris of the Department of

Defense, or for similar purposes, transfer the funds made available

by this appropriation to other appropriations made available to

the Department of Defense, to be merged with and to be available

for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such

amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $246,102,000, to remain

available until transferred: Provided, That the Secretary of the

Army shall, upon determining that such funds are required for

environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris at sites formerly

used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available

to the Department of the Army, to be merged with and to be

available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

For expenses relating to the Overseas Humanitarian, Disaster,

and Civic Aid programs of the Department of Defense (consisting

of the programs provided under sections 401, 402, 404, 2547, and

2551 of title 10, United States Code), $58,400,000, to remain available until September 30, 2004.

FORMER SOVIET UNION THREAT REDUCTION

For assistance to the republics of the former Soviet Union,

including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and

storage of nuclear, chemical and other weapons; for establishing

programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs

relating to the training and support of defense and military personnel for demilitarization and protection of weapons, weapons

components and weapons technology and expertise, and for defense

and military contacts, $416,700,000, to remain available until September 30, 2005: Provided, That of the amounts provided under

this heading, $10,000,000 shall be available only to support the

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1527

dismantling and disposal of nuclear submarines and submarine

reactor components in the Russian Far East.

SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE

For logistical and security support for international sporting

competitions (including pay and non-travel related allowances only

for members of the Reserve Components of the Armed Forces of

the United States called or ordered to active duty in connection

with providing such support), $19,000,000, to remain available until

expended.

TITLE III

PROCUREMENT

AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and

modernization of aircraft, equipment, including ordnance, ground

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private

plants, including the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $2,285,574,000, to

remain available for obligation until September 30, 2005: Provided,

That of the funds made available under this heading, $39,100,000

shall be available only to support a restructured CH–47F helicopter

upgrade program for the full fleet to facilitate increases in the

planned production rate to an economically optimal rate by fiscal

year 2005: Provided further, That funds in the immediately preceding proviso shall not be made available until the Secretary

of the Army has certified to the congressional defense committees

that the Army intends to budget for the upgrade of the entire

CH–47 fleet required for the Objective Force at economically optimal

production rates in order to complete this program within ten

years after it is initiated.

MISSILE PROCUREMENT, ARMY

For construction, procurement, production, modification, and

modernization of missiles, equipment, including ordnance, ground

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private

plants, including the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,096,548,000, to

remain available for obligation until September 30, 2005.

116 STAT. 1528 PUBLIC LAW 107–248—OCT. 23, 2002

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

For construction, procurement, production, and modification

of weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment

and training devices; expansion of public and private plants,

including the land necessary therefor, for the foregoing purposes,

and such lands and interests therein, may be acquired, and

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $2,266,508,000, to

remain available for obligation until September 30, 2005.

PROCUREMENT OF AMMUNITION, ARMY

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854 of title 10, United

States Code, and the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,253,099,000, to

remain available for obligation until September 30, 2005.

OTHER PROCUREMENT, ARMY

For construction, procurement, production, and modification

of vehicles, including tactical, support, and non-tracked combat

vehicles; the purchase of passenger motor vehicles for replacement

only; and the purchase of 6 vehicles required for physical security

of personnel, notwithstanding price limitations applicable to passenger vehicles but not to exceed $180,000 per vehicle; communications and electronic equipment; other support equipment; spare

parts, ordnance, and accessories therefor; specialized equipment

and training devices; expansion of public and private plants,

including the land necessary therefor, for the foregoing purposes,

and such lands and interests therein, may be acquired, and

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $5,874,674,000, to

remain available for obligation until September 30, 2005.

AIRCRAFT PROCUREMENT, NAVY

For construction, procurement, production, modification, and

modernization of aircraft, equipment, including ordnance, spare

parts, and accessories therefor; specialized equipment; expansion

of public and private plants, including the land necessary therefor,

and such lands and interests therein, may be acquired, and

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1529

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway,

$8,812,855,000, to remain available for obligation until September

30, 2005.

WEAPONS PROCUREMENT, NAVY

For construction, procurement, production, modification, and

modernization of missiles, torpedoes, other weapons, and related

support equipment including spare parts, and accessories therefor;

expansion of public and private plants, including the land necessary

therefor, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway,

$1,868,517,000, to remain available for obligation until September

30, 2005.

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854 of title 10, United

States Code, and the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,165,730,000, to

remain available for obligation until September 30, 2005.

SHIPBUILDING AND CONVERSION, NAVY

For expenses necessary for the construction, acquisition, or

conversion of vessels as authorized by law, including armor and

armament thereof, plant equipment, appliances, and machine tools

and installation thereof in public and private plants; reserve plant

and Government and contractor-owned equipment layaway;

procurement of critical, long leadtime components and designs for

vessels to be constructed or converted in the future; and expansion

of public and private plants, including land necessary therefor,

and such lands and interests therein, may be acquired, and

construction prosecuted thereon prior to approval of title, as follows:

Carrier Replacement Program, $90,000,000;

Carrier Replacement Program (AP), $403,703,000;

NSSN, $1,499,152,000;

NSSN (AP), $645,209,000;

SSGN, $404,305,000;

SSGN (AP), $421,000,000;

CVN Refuelings (AP), $221,781,000;

Submarine Refuelings, $435,792,000;

Submarine Refuelings (AP), $64,000,000;

DDG–51 Destroyer, $2,321,502,000;

116 STAT. 1530 PUBLIC LAW 107–248—OCT. 23, 2002

LPD–17, $596,492,000;

LHD–8, $243,000,000; LCAC Landing Craft Air Cushion, $89,638,000;

Mine Hunter SWATH, $7,000,000;

Prior year shipbuilding costs, $1,279,899,000;

Service Craft, $9,756,000; and

For outfitting, post delivery, conversions, and first destina- tion transportation, $300,608,000;

In all: $9,032,837,000, to remain available for obligation until

September 30, 2007: Provided, That additional obligations may

be incurred after September 30, 2007, for engineering services,

tests, evaluations, and other such budgeted work that must be

performed in the final stage of ship construction: Provided further,

That none of the funds provided under this heading for the construction or conversion of any naval vessel to be constructed in shipyards

in the United States shall be expended in foreign facilities for

the construction of major components of such vessel: Provided further, That none of the funds provided under this heading shall

be used for the construction of any naval vessel in foreign shipyards.

OTHER PROCUREMENT, NAVY

For procurement, production, and modernization of support

equipment and materials not otherwise provided for, Navy ordnance

(except ordnance for new aircraft, new ships, and ships authorized

for conversion); the purchase of passenger motor vehicles for

replacement only, and the purchase of 3 vehicles required for physical security of personnel, notwithstanding price limitations

applicable to passenger vehicles but not to exceed $240,000 per

unit for one unit and not to exceed $125,000 per unit for the

remaining two units; expansion of public and private plants,

including the land necessary therefor, and such lands and interests

therein, may be acquired, and construction prosecuted thereon prior

to approval of title; and procurement and installation of equipment,

appliances, and machine tools in public and private plants; reserve

plant and Government and contractor-owned equipment layaway,

$4,612,910,000, to remain available for obligation until September

30, 2005.

PROCUREMENT, MARINE CORPS

For expenses necessary for the procurement, manufacture, and

modification of missiles, armament, military equipment, spare

parts, and accessories therefor; plant equipment, appliances, and

machine tools, and installation thereof in public and private plants;

reserve plant and Government and contractor-owned equipment

layaway; vehicles for the Marine Corps, including the purchase

of passenger motor vehicles for replacement only; and expansion

of public and private plants, including land necessary therefor,

and such lands and interests therein, may be acquired, and

construction prosecuted thereon prior to approval of title,

$1,388,583,000, to remain available for obligation until September

30, 2005.

AIRCRAFT PROCUREMENT, AIR FORCE

For construction, procurement, lease, and modification of aircraft and equipment, including armor and armament, specialized

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1531

ground handling equipment, and training devices, spare parts, and

accessories therefor; specialized equipment; expansion of public and

private plants, Government-owned equipment and installation

thereof in such plants, erection of structures, and acquisition of

land, for the foregoing purposes, and such lands and interests

therein, may be acquired, and construction prosecuted thereon prior

to approval of title; reserve plant and Government and contractorowned equipment layaway; and other expenses necessary for the

foregoing purposes including rents and transportation of things,

$13,137,255,000, to remain available for obligation until September

30, 2005: Provided, That amounts provided under this heading

shall be used for the advance procurement of 15 C–17 aircraft.

MISSILE PROCUREMENT, AIR FORCE

For construction, procurement, and modification of missiles,

spacecraft, rockets, and related equipment, including spare parts

and accessories therefor, ground handling equipment, and training

devices; expansion of public and private plants, Government-owned

equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and

such lands and interests therein, may be acquired, and construction

prosecuted thereon prior to approval of title; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes including rents and

transportation of things, $3,174,739,000, to remain available for

obligation until September 30, 2005.

PROCUREMENT OF AMMUNITION, AIR FORCE

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854 of title 10, United

States Code, and the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes, $1,288,164,000, to

remain available for obligation until September 30, 2005.

OTHER PROCUREMENT, AIR FORCE

For procurement and modification of equipment (including

ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and

spare parts therefor, not otherwise provided for; the purchase of

passenger motor vehicles for replacement only, and the purchase

of 2 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger vehicles but not

to exceed $232,000 per vehicle; lease of passenger motor vehicles;

and expansion of public and private plants, Government-owned

equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and

such lands and interests therein, may be acquired, and construction

prosecuted thereon, prior to approval of title; reserve plant and

116 STAT. 1532 PUBLIC LAW 107–248—OCT. 23, 2002

Government and contractor-owned equipment layaway,

$10,672,712,000, to remain available for obligation until September

30, 2005.

PROCUREMENT, DEFENSE-WIDE

For expenses of activities and agencies of the Department of

Defense (other than the military departments) necessary for

procurement, production, and modification of equipment, supplies,

materials, and spare parts therefor, not otherwise provided for;

the purchase of passenger motor vehicles for replacement only;

the purchase of 4 vehicles required for physical security of personnel, notwithstanding price limitations applicable to passenger

vehicles but not to exceed $250,000 per vehicle; expansion of public

and private plants, equipment, and installation thereof in such

plants, erection of structures, and acquisition of land for the foregoing purposes, and such lands and interests therein, may be

acquired, and construction prosecuted thereon prior to approval

of title; reserve plant and Government and contractor-owned equipment layaway, $3,444,455,000, to remain available for obligation

until September 30, 2005.

NATIONAL GUARD AND RESERVE EQUIPMENT

For procurement of aircraft, missiles, tracked combat vehicles,

ammunition, other weapons, and other procurement for the reserve

components of the Armed Forces, $100,000,000, to remain available

for obligation until September 30, 2005: Provided, That the Chiefs

of the Reserve and National Guard components shall, not later

than 30 days after the enactment of this Act, individually submit

to the congressional defense committees the modernization priority

assessment for their respective Reserve or National Guard component.

DEFENSE PRODUCTION ACT PURCHASES

For activities by the Department of Defense pursuant to sections 108, 301, 302, and 303 of the Defense Production Act of

1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), $73,057,000,

to remain available until expended, of which, $5,000,000 may be

used for a Processable Rigid-Rod Polymeric Material Supplier Initiative under title III of the Defense Production Act of 1950 (50

U.S.C. App. 2091 et seq.) to develop affordable production methods

and a domestic supplier for military and commercial processable

rigid-rod polymeric materials.

TITLE IV

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$7,669,656,000, to remain available for obligation until September

30, 2004.

Deadline.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1533

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$13,946,085,000, to remain available for obligation until September

30, 2004: Provided, That funds appropriated in this paragraph

which are available for the V–22 may be used to meet unique

operational requirements of the Special Operations Forces.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$18,822,569,000, to remain available for obligation until September

30, 2004.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For expenses of activities and agencies of the Department of

Defense (other than the military departments), necessary for basic

and applied scientific research, development, test and evaluation;

advanced research projects as may be designated and determined

by the Secretary of Defense, pursuant to law; maintenance,

rehabilitation, lease, and operation of facilities and equipment,

$17,924,642,000, to remain available for obligation until September

30, 2004.

OPERATIONAL TEST AND EVALUATION, DEFENSE

For expenses, not otherwise provided for, necessary for the

independent activities of the Director, Operational Test and Evaluation, in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in

connection therewith, $245,554,000, to remain available for obligation until September 30, 2004.

TITLE V

REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

For the Defense Working Capital Funds, $1,784,956,000: Provided, That during fiscal year 2003, funds in the Defense Working

Capital Funds may be used for the purchase of not to exceed

315 passenger carrying motor vehicles for replacement only for

the Defense Security Service, and the purchase of not to exceed

7 vehicles for replacement only for the Defense Logistics Agency.

NATIONAL DEFENSE SEALIFT FUND

For National Defense Sealift Fund programs, projects, and

activities, and for expenses of the National Defense Reserve Fleet,

as established by section 11 of the Merchant Ship Sales Act of

1946 (50 U.S.C. App. 1744), and for the necessary expenses to

116 STAT. 1534 PUBLIC LAW 107–248—OCT. 23, 2002

maintain and preserve a U.S.-flag merchant fleet to serve the

national security needs of the United States, $942,629,000, to

remain available until expended: Provided, That none of the funds

provided in this paragraph shall be used to award a new contract

that provides for the acquisition of any of the following major

components unless such components are manufactured in the

United States: auxiliary equipment, including pumps, for all shipboard services; propulsion system components (that is; engines,

reduction gears, and propellers); shipboard cranes; and spreaders

for shipboard cranes: Provided further, That the exercise of an

option in a contract awarded through the obligation of previously

appropriated funds shall not be considered to be the award of

a new contract: Provided further, That the Secretary of the military

department responsible for such procurement may waive the restrictions in the first proviso on a case-by-case basis by certifying in

writing to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are

not available to meet Department of Defense requirements on a

timely basis and that such an acquisition must be made in order

to acquire capability for national security purposes: Provided further, That, notwithstanding any other provision of law, $8,500,000

of the funds available under this heading shall be available in

addition to other amounts otherwise available, only to finance the

cost of constructing additional sealift capacity.

TITLE VI

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

For expenses, not otherwise provided for, for medical and health

care programs of the Department of Defense, as authorized by

law, $14,843,542,000, of which $14,100,386,000 shall be for Operation and maintenance, of which not to exceed 2 percent shall

remain available until September 30, 2004; of which $284,242,000,

to remain available for obligation until September 30, 2005, shall

be for Procurement; of which $458,914,000, to remain available

for obligation until September 30, 2004, shall be for Research,

development, test and evaluation, and of which not less than

$7,000,000 shall be available for HIV prevention educational activities undertaken in connection with U.S. military training, exercises,

and humanitarian assistance activities conducted primarily in African nations.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

For expenses, not otherwise provided for, necessary for the

destruction of the United States stockpile of lethal chemical agents

and munitions in accordance with the provisions of section 1412

of the Department of Defense Authorization Act, 1986 (50 U.S.C.

1521), and for the destruction of other chemical warfare materials

that are not in the chemical weapon stockpile, $1,490,199,000,

of which $974,238,000 shall be for Operation and maintenance

to remain available until September 30, 2004, $213,278,000 shall

be for Procurement to remain available until September 30, 2005,

and $302,683,000 shall be for Research, development, test and

evaluation to remain available until September 30, 2004.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1535

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

(INCLUDING TRANSFER OF FUNDS)

For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the

Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United

States Code; for Operation and maintenance; for Procurement; and

for Research, development, test and evaluation, $881,907,000: Provided, That the funds appropriated under this heading shall be

available for obligation for the same time period and for the same

purpose as the appropriation to which transferred: Provided further,

That upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation:

Provided further, That the transfer authority provided under this

heading is in addition to any other transfer authority contained

elsewhere in this Act.

OFFICE OF THE INSPECTOR GENERAL

For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act

of 1978, as amended, $157,165,000, of which $155,165,000 shall

be for Operation and maintenance, of which not to exceed $700,000

is available for emergencies and extraordinary expenses to be

expended on the approval or authority of the Inspector General,

and payments may be made on the Inspector General’s certificate

of necessity for confidential military purposes; and of which

$2,000,000 to remain available until September 30, 2005, shall

be for Procurement.

TITLE VII

RELATED AGENCIES

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

SYSTEM FUND

For payment to the Central Intelligence Agency Retirement

and Disability System Fund, to maintain the proper funding level

for continuing the operation of the Central Intelligence Agency

Retirement and Disability System, $222,500,000.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Intelligence Community Management Account, $163,479,000, of which $24,252,000 for the Advanced

Research and Development Committee shall remain available until

September 30, 2004: Provided, That of the funds appropriated under

this heading, $34,100,000 shall be transferred to the Department

of Justice for the National Drug Intelligence Center to support

the Department of Defense’s counter-drug intelligence responsibilities, and of the said amount, $1,500,000 for Procurement shall

remain available until September 30, 2005 and $1,000,000 for

Research, development, test and evaluation shall remain available

116 STAT. 1536 PUBLIC LAW 107–248—OCT. 23, 2002

until September 30, 2004: Provided further, That the National

Drug Intelligence Center shall maintain the personnel and technical

resources to provide timely support to law enforcement authorities

and the intelligence community by conducting document and computer exploitation of materials collected in Federal, State, and local

law enforcement activity associated with counter-drug, counter-terrorism, and national security investigations and operations.

PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION, AND

ENVIRONMENTAL RESTORATION FUND

For payment to Kaho’olawe Island Conveyance, Remediation,

and Environmental Restoration Fund, as authorized by law,

$75,000,000, to remain available until expended.

NATIONAL SECURITY EDUCATION TRUST FUND

For the purposes of title VIII of Public Law 102–183,

$8,000,000, to be derived from the National Security Education

Trust Fund, to remain available until expended.

TITLE VIII

GENERAL PROVISIONS

SEC. 8001. No part of any appropriation contained in this

Act shall be used for publicity or propaganda purposes not authorized by the Congress.

SEC. 8002. During the current fiscal year, provisions of law

prohibiting the payment of compensation to, or employment of,

any person not a citizen of the United States shall not apply

to personnel of the Department of Defense: Provided, That salary

increases granted to direct and indirect hire foreign national

employees of the Department of Defense funded by this Act shall

not be at a rate in excess of the percentage increase authorized

by law for civilian employees of the Department of Defense whose

pay is computed under the provisions of section 5332 of title 5,

United States Code, or at a rate in excess of the percentage increase

provided by the appropriate host nation to its own employees,

whichever is higher: Provided further, That this section shall not

apply to Department of Defense foreign service national employees

serving at United States diplomatic missions whose pay is set

by the Department of State under the Foreign Service Act of 1980:

Provided further, That the limitations of this provision shall not

apply to foreign national employees of the Department of Defense

in the Republic of Turkey.

SEC. 8003. No part of any appropriation contained in this

Act shall remain available for obligation beyond the current fiscal

year, unless expressly so provided herein.

SEC. 8004. No more than 20 percent of the appropriations

in this Act which are limited for obligation during the current

fiscal year shall be obligated during the last 2 months of the

fiscal year: Provided, That this section shall not apply to obligations

for support of active duty training of reserve components or summer

camp training of the Reserve Officers’ Training Corps.

10 USC 1584

note.

Records.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1537

(TRANSFER OF FUNDS)

SEC. 8005. Upon determination by the Secretary of Defense

that such action is necessary in the national interest, he may,

with the approval of the Office of Management and Budget, transfer

not to exceed $2,000,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction)

between such appropriations or funds or any subdivision thereof,

to be merged with and to be available for the same purposes,

and for the same time period, as the appropriation or fund to

which transferred: Provided, That such authority to transfer may

not be used unless for higher priority items, based on unforeseen

military requirements, than those for which originally appropriated

and in no case where the item for which funds are requested

has been denied by the Congress: Provided further, That the Secretary of Defense shall notify the Congress promptly of all transfers

made pursuant to this authority or any other authority in this

Act: Provided further, That no part of the funds in this Act shall

be available to prepare or present a request to the Committees

on Appropriations for reprogramming of funds, unless for higher

priority items, based on unforeseen military requirements, than

those for which originally appropriated and in no case where the

item for which reprogramming is requested has been denied by

the Congress: Provided further, That a request for multiple

reprogrammings of funds using authority provided in this section

must be made prior to May 31, 2003: Provided further, That section

8005 of the Department of Defense Appropriations Act, 2002 (Public

Law 107–117) is amended by striking ‘‘$2,000,000,000’’, and

inserting ‘‘$2,500,000,000’’.

(TRANSFER OF FUNDS)

SEC. 8006. During the current fiscal year, cash balances in

working capital funds of the Department of Defense established

pursuant to section 2208 of title 10, United States Code, may

be maintained in only such amounts as are necessary at any time

for cash disbursements to be made from such funds: Provided,

That transfers may be made between such funds: Provided further,

That transfers may be made between working capital funds and

the ‘‘Foreign Currency Fluctuations, Defense’’ appropriation and

the ‘‘Operation and Maintenance’’ appropriation accounts in such

amounts as may be determined by the Secretary of Defense, with

the approval of the Office of Management and Budget, except that

such transfers may not be made unless the Secretary of Defense

has notified the Congress of the proposed transfer. Except in

amounts equal to the amounts appropriated to working capital

funds in this Act, no obligations may be made against a working

capital fund to procure or increase the value of war reserve material

inventory, unless the Secretary of Defense has notified the Congress

prior to any such obligation.

SEC. 8007. Funds appropriated by this Act may not be used

to initiate a special access program without prior notification 30

calendar days in session in advance to the congressional defense

committees.

SEC. 8008. 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 1 year

10 USC 2306b

note.

Notification.

115 Stat. 2247.

Notification.

116 STAT. 1538 PUBLIC LAW 107–248—OCT. 23, 2002

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 1 year, unless

the congressional defense committees have been notified at least

30 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.

Funds appropriated in title III of this Act may be used for

multiyear procurement contracts as follows:

C–130 aircraft;

FMTV; and

F/A–18E and F engine.

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.

SEC. 8010. (a) During fiscal year 2003, the civilian personnel

of the Department of Defense may not be managed on the basis

of any end-strength, and the management of such personnel during

that fiscal year shall not be subject to any constraint or limitation

(known as an end-strength) on the number of such personnel who

may be employed on the last day of such fiscal year.

(b) The fiscal year 2004 budget request for the Department

of Defense as well as all justification material and other documentation supporting the fiscal year 2004 Department of Defense budget

request shall be prepared and submitted to the Congress as if

Reports.

Deadline.

10 USC 401 note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1539

subsections (a) and (b) of this provision were effective with regard

to fiscal year 2004.

(c) Nothing in this section shall be construed to apply to military

(civilian) technicians.

SEC. 8011. Notwithstanding any other provision of law, none

of the funds made available by this Act shall be used by the

Department of Defense to exceed, outside the 50 United States,

its territories, and the District of Columbia, 125,000 civilian

workyears: Provided, That workyears shall be applied as defined

in the Federal Personnel Manual: Provided further, That workyears

expended in dependent student hiring programs for disadvantaged

youths shall not be included in this workyear limitation.

SEC. 8012. None of the funds made available by this Act shall

be used in any way, directly or indirectly, to influence congressional

action on any legislation or appropriation matters pending before

the Congress.

SEC. 8013. None of the funds appropriated by this Act shall

be available for the basic pay and allowances of any member of

the Army participating as a full-time student and receiving benefits

paid by the Secretary of Veterans Affairs from the Department

of Defense Education Benefits Fund when time spent as a fulltime student is credited toward completion of a service commitment:

Provided, That this subsection shall not apply to those members

who have reenlisted with this option prior to October 1, 1987:

Provided further, That this subsection applies only to active components of the Army.

SEC. 8014. None of the funds appropriated by this Act shall

be available to convert to contractor performance an activity or

function of the Department of Defense that, on or after the date

of the enactment of this Act, is performed by more than 10 Department of Defense civilian employees until a most efficient and costeffective organization analysis is completed on such activity or

function and certification of the analysis is made to the Committees

on Appropriations of the House of Representatives and the Senate:

Provided, That this section and subsections (a), (b), and (c) of

10 U.S.C. 2461 shall not apply to a commercial or industrial type

function of the Department of Defense that: (1) is included on

the procurement list established pursuant to section 2 of the Act

of June 25, 1938 (41 U.S.C. 47), popularly referred to as the JavitsWagner-O’Day Act; (2) is planned to be converted to performance

by a qualified nonprofit agency for the blind or by a qualified

nonprofit agency for other severely handicapped individuals in

accordance with that Act; or (3) is planned to be converted to

performance by a qualified firm under 51 percent ownership by

an Indian tribe, as defined in section 450b(e) of title 25, United

States Code, or a Native Hawaiian organization, as defined in

section 637(a)(15) of title 15, United States Code.

(TRANSFER OF FUNDS)

SEC. 8015. Funds appropriated in title III of this Act for the

Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for

the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the

National Defense Authorization Act for Fiscal Year 1991 (Public

Law 101–510; 10 U.S.C. 2301 note), as amended, under the

Applicability.

Lobbying.

Applicability.

116 STAT. 1540 PUBLIC LAW 107–248—OCT. 23, 2002

authority of this provision or any other transfer authority contained

in this Act.

SEC. 8016. None of the funds in this Act may be available

for the purchase by the Department of Defense (and its departments

and agencies) of welded shipboard anchor and mooring chain 4

inches in diameter and under unless the anchor and mooring chain

are manufactured in the United States from components which

are substantially manufactured in the United States: Provided,

That for the purpose of this section manufactured will include

cutting, heat treating, quality control, testing of chain and welding

(including the forging and shot blasting process): Provided further,

That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost

of the components produced or manufactured in the United States

exceeds the aggregate cost of the components produced or manufactured outside the United States: Provided further, That when adequate domestic supplies are not available to meet Department of

Defense requirements on a timely basis, the Secretary of the service

responsible for the procurement may waive this restriction on a

case-by-case basis by certifying in writing to the Committees on

Appropriations that such an acquisition must be made in order

to acquire capability for national security purposes.

SEC. 8017. None of the funds appropriated by this Act available

for the Civilian Health and Medical Program of the Uniformed

Services (CHAMPUS) or TRICARE shall be available for the

reimbursement of any health care provider for inpatient mental

health service for care received when a patient is referred to a

provider of inpatient mental health care or residential treatment

care by a medical or health care professional having an economic

interest in the facility to which the patient is referred: Provided,

That this limitation does not apply in the case of inpatient mental

health services provided under the program for persons with disabilities under subsection (d) of section 1079 of title 10, United States

Code, provided as partial hospital care, or provided pursuant to

a waiver authorized by the Secretary of Defense because of medical

or psychological circumstances of the patient that are confirmed

by a health professional who is not a Federal employee after a

review, pursuant to rules prescribed by the Secretary, which takes

into account the appropriate level of care for the patient, the intensity of services required by the patient, and the availability of

that care.

SEC. 8018. 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 2004

shall identify such sums anticipated in residual value settlements,

and identify such construction, real property maintenance or base

10 USC 2687

note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1541

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.

SEC. 8019. None of the funds available to the Department

of Defense may be used to demilitarize or dispose of M–1 Carbines,

M–1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles,

or M–1911 pistols.

SEC. 8020. No more than $500,000 of the funds appropriated

or made available in this Act shall be used during a single fiscal

year for any single relocation of an organization, unit, activity

or function of the Department of Defense into or within the National

Capital Region: Provided, That the Secretary of Defense may waive

this restriction on a case-by-case basis by certifying in writing

to the congressional defense committees that such a relocation

is required in the best interest of the Government.

SEC. 8021. In addition to the funds provided elsewhere in

this Act, $8,000,000 is appropriated only for incentive payments

authorized by Section 504 of the Indian Financing Act of 1974

(25 U.S.C. 1544): Provided, That a prime contractor or a subcontractor at any tier that makes a subcontract award to any subcontractor or supplier as defined in 25 U.S.C. 1544 or a small business

owned and controlled by an individual defined under 25 U.S.C.

4221(9) shall be considered a contractor for the purposes of being

allowed additional compensation under section 504 of the Indian

Financing Act of 1974 (25 U.S.C. 1544) whenever the prime contract

or subcontract amount is over $500,000 and involves the expenditure of funds appropriated by an Act making Appropriations for

the Department of Defense with respect to any fiscal year: Provided

further, That notwithstanding 41 U.S.C. § 430, this section shall

be applicable to any Department of Defense acquisition of supplies

or services, including any contract and any subcontract at any

tier for acquisition of commercial items produced or manufactured,

in whole or in part by any subcontractor or supplier defined in

25 U.S.C. § 1544 or a small business owned and controlled by

an individual defined under 25 U.S.C. 4221(9).

SEC. 8022. None of the funds appropriated by this Act shall

be available to perform any cost study pursuant to the provisions

of OMB Circular A–76 if the study being performed exceeds a

period of 24 months after initiation of such study with respect

to a single function activity or 48 months after initiation of such

study for a multi-function activity.

SEC. 8023. Funds appropriated by this Act for the American

Forces Information Service shall not be used for any national or

international political or psychological activities.

SEC. 8024. Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian

employees hired for certain health care occupations as authorized

for the Secretary of Veterans Affairs by section 7455 of title 38,

United States Code.

Reports.

116 STAT. 1542 PUBLIC LAW 107–248—OCT. 23, 2002

SEC. 8025. (a) Of the funds for the procurement of supplies

or services appropriated by this Act, qualified nonprofit agencies

for the blind or other severely handicapped shall be afforded the

maximum practicable opportunity to participate as subcontractors

and suppliers in the performance of contracts let by the Department

of Defense.

(b) During the current fiscal year, a business concern which

has negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns pursuant to section 8(d) of the Small Business Act (15 U.S.C. 637(d))

shall be given credit toward meeting that subcontracting goal for

any purchases made from qualified nonprofit agencies for the blind

or other severely handicapped.

(c) For the purpose of this section, the phrase ‘‘qualified nonprofit agency for the blind or other severely handicapped’’ means

a nonprofit agency for the blind or other severely handicapped

that has been approved by the Committee for the Purchase from

the Blind and Other Severely Handicapped under the JavitsWagner-O’Day Act (41 U.S.C. 46–48).

SEC. 8026. During the current fiscal year, net receipts pursuant

to collections from third party payers pursuant to section 1095

of title 10, United States Code, shall be made available to the

local facility of the uniformed services responsible for the collections

and shall be over and above the facility’s direct budget amount.

SEC. 8027. During the current fiscal year, the Department

of Defense is authorized to incur obligations of not to exceed

$350,000,000 for purposes specified in section 2350j(c) of title 10,

United States Code, in anticipation of receipt of contributions, only

from the Government of Kuwait, under that section: Provided,

That upon receipt, such contributions from the Government of

Kuwait shall be credited to the appropriations or fund which

incurred such obligations.

SEC. 8028. Of the funds made available in this Act, not less

than $21,188,000 shall be available for the Civil Air Patrol Corporation, of which $19,688,000 shall be available for Civil Air Patrol

Corporation operation and maintenance to support readiness activities which includes $1,500,000 for the Civil Air Patrol counterdrug

program: Provided, That funds identified for ‘‘Civil Air Patrol’’ under

this section are intended for and shall be for the exclusive use

of the Civil Air Patrol Corporation and not for the Air Force or

any unit thereof.

SEC. 8029. (a) None of the funds appropriated in this Act

are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC),

either as a new entity, or as a separate entity administrated by

an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs

and other non-profit entities.

(b) No member of a Board of Directors, Trustees, Overseers,

Advisory Group, Special Issues Panel, Visiting Committee, or any

similar entity of a defense FFRDC, and no paid consultant to

any defense FFRDC, except when acting in a technical advisory

capacity, may be compensated for his or her services as a member

of such entity, or as a paid consultant by more than one FFRDC

in a fiscal year: Provided, That a member of any such entity

referred to previously in this subsection shall be allowed travel

expenses and per diem as authorized under the Federal Joint Travel

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1543

Regulations, when engaged in the performance of membership

duties.

(c) Notwithstanding any other provision of law, none of the

funds available to the department from any source during fiscal

year 2003 may be used by a defense FFRDC, through a fee or

other payment mechanism, for construction of new buildings, for

payment of cost sharing for projects funded by Government grants,

for absorption of contract overruns, or for certain charitable contributions, not to include employee participation in community

service and/or development.

(d) Notwithstanding any other provision of law, of the funds

available to the department during fiscal year 2003, not more

than 6,321 staff years of technical effort (staff years) may be funded

for defense FFRDCs: Provided, That of the specific amount referred

to previously in this subsection, not more than 1,050 staff years

may be funded for the defense studies and analysis FFRDCs.

(e) The Secretary of Defense shall, with the submission of

the department’s fiscal year 2004 budget request, submit a report

presenting the specific amounts of staff years of technical effort

to be allocated for each defense FFRDC during that fiscal year.

(f) Notwithstanding any other provision of this Act, the total

amount appropriated in this Act for FFRDCs is hereby reduced

by $74,200,000.

SEC. 8030. None of the funds appropriated or made available

in this Act shall be used to procure carbon, alloy or armor steel

plate for use in any Government-owned facility or property under

the control of the Department of Defense which were not melted

and rolled in the United States or Canada: Provided, That these

procurement restrictions shall apply to any and all Federal Supply

Class 9515, American Society of Testing and Materials (ASTM)

or American Iron and Steel Institute (AISI) specifications of carbon,

alloy or armor steel plate: Provided further, That the Secretary

of the military department responsible for the procurement may

waive this restriction on a case-by-case basis by certifying in writing

to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely

basis and that such an acquisition must be made in order to

acquire capability for national security purposes: Provided further,

That these restrictions shall not apply to contracts which are in

being as of the date of the enactment of this Act.

SEC. 8031. For the purposes of this Act, the term ‘‘congressional

defense committees’’ means the Armed Services Committee of the

House of Representatives, the Armed Services Committee of the

Senate, the Subcommittee on Defense of the Committee on Appropriations of the Senate, and the Subcommittee on Defense of the

Committee on Appropriations of the House of Representatives.

SEC. 8032. During the current fiscal year, the Department

of Defense may acquire the modification, depot maintenance and

repair of aircraft, vehicles and vessels as well as the production

of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities

and private firms: Provided, That the Senior Acquisition Executive

of the military department or defense agency concerned, with power

of delegation, shall certify that successful bids include comparable

estimates of all direct and indirect costs for both public and private

bids: Provided further, That Office of Management and Budget

Certification.

Applicability.

Reports.

116 STAT. 1544 PUBLIC LAW 107–248—OCT. 23, 2002

Circular A–76 shall not apply to competitions conducted under

this section.

SEC. 8033. (a)(1) If the Secretary of Defense, after consultation

with the United States Trade Representative, determines that a

foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating

against certain types of products produced in the United States

that are covered by the agreement, the Secretary of Defense shall

rescind the Secretary’s blanket waiver of the Buy American Act

with respect to such types of products produced in that foreign

country.

(2) An agreement referred to in paragraph (1) is any reciprocal

defense procurement memorandum of understanding, between the

United States and a foreign country pursuant to which the Secretary

of Defense has prospectively waived the Buy American Act for

certain products in that country.

(b) The Secretary of Defense shall submit to the Congress

a report on the amount of Department of Defense purchases from

foreign entities in fiscal year 2003. Such report shall separately

indicate the dollar value of items for which the Buy American

Act was waived pursuant to any agreement described in subsection

(a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.),

or any international agreement to which the United States is a

party.

(c) For purposes of this section, the term ‘‘Buy American Act’’ means title III of the Act entitled ‘‘An Act making appropriations

for the Treasury and Post Office Departments for the fiscal year

ending June 30, 1934, and for other purposes’’, approved March

3, 1933 (41 U.S.C. 10a et seq.).

SEC. 8034. Appropriations contained in this Act that remain

available at the end of the current fiscal year as a result of energy

cost savings realized by the Department of Defense shall remain

available for obligation for the next fiscal year to the extent, and

for the purposes, provided in section 2865 of title 10, United States

Code.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8035. Amounts deposited during the current fiscal year

to the special account established under 40 U.S.C. 485(h)(2) and

to the special account established under 10 U.S.C. 2667(d)(1) are

appropriated and shall be available until transferred by the Secretary of Defense to current applicable appropriations or funds

of the Department of Defense under the terms and conditions

specified by 40 U.S.C. 485(h)(2)(A) and (B) and 10 U.S.C.

2667(d)(1)(B), to be merged with and to be available for the same

time period and the same purposes as the appropriation to which

transferred.

SEC. 8036. The President shall include with each budget for

a fiscal year submitted to the Congress under section 1105 of

title 31, United States Code, materials that shall identify clearly

and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the defense agencies.

SEC. 8037. Notwithstanding any other provision of law, funds

available for ‘‘Drug Interdiction and Counter-Drug Activities,

Defense’’ may be obligated for the Young Marines program.

President.

10 USC 221 note.

Reports.

41 USC 10b–2.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1545

(INCLUDING TRANSFER OF FUNDS)

SEC. 8038. During the current fiscal year, amounts contained

in the Department of Defense Overseas Military Facility Investment

Recovery Account established by section 2921(c)(1) of the National

Defense Authorization Act of 1991 (Public Law 101–510; 10 U.S.C.

2687 note) shall be available until expended for the payments

specified by section 2921(c)(2) of that Act.

SEC. 8039. (a) IN GENERAL.—Notwithstanding any other provision of law, the Secretary of the Air Force may convey at no

cost to the Air Force, without consideration, to Indian tribes located

in the States of North Dakota, South Dakota, Montana, and Minnesota relocatable military housing units located at Grand Forks

Air Force Base and Minot Air Force Base that are excess to the

needs of the Air Force.

(b) PROCESSING OF REQUESTS.—The Secretary of the Air Force

shall convey, at no cost to the Air Force, military housing units

under subsection (a) in accordance with the request for such units

that are submitted to the Secretary by the Operation Walking

Shield Program on behalf of Indian tribes located in the States

of North Dakota, South Dakota, Montana, and Minnesota.

(c) RESOLUTION OF HOUSING UNIT CONFLICTS.—The Operation

Walking Shield program shall resolve any conflicts among requests

of Indian tribes for housing units under subsection (a) before

submitting requests to the Secretary of the Air Force under subsection (b).

(d) INDIAN TRIBE DEFINED.—In this section, the term ‘‘Indian

tribe’’ means any recognized Indian tribe included on the current

list published by the Secretary of the Interior under section 104

of the Federally Recognized Indian Tribe Act of 1994 (Public Law

103–454; 108 Stat. 4792; 25 U.S.C. 479a–1).

SEC. 8040. During the current fiscal year, appropriations which

are available to the Department of Defense for operation and

maintenance may be used to purchase items having an investment

item unit cost of not more than $100,000.

SEC. 8041. (a) During the current fiscal year, none of the

appropriations or funds available to the Department of Defense

Working Capital Funds shall be used for the purchase of an investment item for the purpose of acquiring a new inventory item for

sale or anticipated sale during the current fiscal year or a subsequent fiscal year to customers of the Department of Defense

Working Capital Funds if such an item would not have been chargeable to the Department of Defense Business Operations Fund during

fiscal year 1994 and if the purchase of such an investment item

would be chargeable during the current fiscal year to appropriations

made to the Department of Defense for procurement.

(b) The fiscal year 2004 budget request for the Department

of Defense as well as all justification material and other documentation supporting the fiscal year 2004 Department of Defense budget

shall be prepared and submitted to the Congress on the basis

that any equipment which was classified as an end item and funded

in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 2004 procurement appropriation

and not in the supply management business area or any other

area or category of the Department of Defense Working Capital

Funds.

State listing.

116 STAT. 1546 PUBLIC LAW 107–248—OCT. 23, 2002

SEC. 8042. None of the funds appropriated by this Act for

programs of the Central Intelligence Agency shall remain available

for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 2004: Provided, That funds appropriated,

transferred, or otherwise credited to the Central Intelligence Agency

Central Services Working Capital Fund during this or any prior

or subsequent fiscal year shall remain available until expended:

Provided further, That any funds appropriated or transferred to

the Central Intelligence Agency for agent operations and for covert

action programs authorized by the President under section 503

of the National Security Act of 1947, as amended, shall remain

available until September 30, 2004.

SEC. 8043. Notwithstanding any other provision of law, funds

made available in this Act for the Defense Intelligence Agency

may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and

intelligence information systems for the Services, the Unified and

Specified Commands, and the component commands.

SEC. 8044. Of the funds appropriated to the Department of

Defense under the heading ‘‘Operation and Maintenance, DefenseWide’’, not less than $10,000,000 shall be made available only

for the mitigation of environmental impacts, including training

and technical assistance to tribes, related administrative support,

the gathering of information, documenting of environmental damage, and developing a system for prioritization of mitigation and

cost to complete estimates for mitigation, on Indian lands resulting

from Department of Defense activities.

SEC. 8045. Of the funds made available in this Act, not less

than $68,900,000 shall be available to maintain an attrition reserve

force of 18 B–52 aircraft, of which $3,700,000 shall be available

from ‘‘Military Personnel, Air Force’’, $40,000,000 shall be available

from ‘‘Operation and Maintenance, Air Force’’, and $25,200,000

shall be available from ‘‘Aircraft Procurement, Air Force’’: Provided,

That the Secretary of the Air Force shall maintain a total force

of 94 B–52 aircraft, including 18 attrition reserve aircraft, during

fiscal year 2003: Provided further, That the Secretary of Defense

shall include in the Air Force budget request for fiscal year 2004

amounts sufficient to maintain a B–52 force totaling 94 aircraft.

SEC. 8046. (a) None of the funds appropriated in this Act

may be expended by an entity of the Department of Defense unless

the entity, in expending the funds, complies with the Buy American

Act. For purposes of this subsection, the term ‘‘Buy American Act’’

means title III of the Act entitled ‘‘An Act making appropriations

for the Treasury and Post Office Departments for the fiscal year

ending June 30, 1934, and for other purposes’’, approved March

3, 1933 (41 U.S.C. 10a et seq.).

(b) If the Secretary of Defense determines that a person has

been convicted of intentionally affixing a label bearing a ‘‘Made

in America’’ inscription to any product sold in or shipped to the

United States that is not made in America, the Secretary shall

determine, in accordance with section 2410f of title 10, United

States Code, whether the person should be debarred from contracting with the Department of Defense.

(c) In the case of any equipment or products purchased with

appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending

50 USC 403u

note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1547

the appropriation, purchase only American-made equipment and

products, provided that American-made equipment and products

are cost-competitive, quality-competitive, and available in a timely

fashion.

SEC. 8047. None of the funds appropriated by this Act shall

be available for a contract for studies, analysis, or consulting services entered into without competition on the basis of an unsolicited

proposal unless the head of the activity responsible for the procurement determines— (1) as a result of thorough technical evaluation, only one

source is found fully qualified to perform the proposed work;

(2) the purpose of the contract is to explore an unsolicited

proposal which offers significant scientific or technological

promise, represents the product of original thinking, and was

submitted in confidence by one source; or

(3) the purpose of the contract is to take advantage of

unique and significant industrial accomplishment by a specific

concern, or to insure that a new product or idea of a specific

concern is given financial support:

Provided, That this limitation shall not apply to contracts in an amount of less than $25,000, contracts related to improvements

of equipment that is in development or production, or contracts

as to which a civilian official of the Department of Defense, who

has been confirmed by the Senate, determines that the award

of such contract is in the interest of the national defense.

SEC. 8048. (a) Except as provided in subsections (b) and (c),

none of the funds made available by this Act may be used— (1) to establish a field operating agency; or

(2) to pay the basic pay of a member of the Armed Forces

or civilian employee of the department who is transferred or

reassigned from a headquarters activity if the member or

employee’s place of duty remains at the location of that headquarters.

(b) The Secretary of Defense or Secretary of a military department may waive the limitations in subsection (a), on a case-bycase basis, if the Secretary determines, and certifies to the Committees on Appropriations of the House of Representatives and Senate

that the granting of the waiver will reduce the personnel requirements or the financial requirements of the department.

(c) This section does not apply to field operating agencies funded

within the National Foreign Intelligence Program.

SEC. 8049. Notwithstanding section 303 of Public Law 96– 487 or any other provision of law, the Secretary of the Navy is

authorized to lease real and personal property at Naval Air Facility,

Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes: Provided, That notwithstanding any other

provision of law, the Secretary of the Navy may remove hazardous

materials from facilities, buildings, and structures at Adak, Alaska,

and may demolish or otherwise dispose of such facilities, buildings,

and structures.

(RESCISSIONS)

SEC. 8050. Of the funds appropriated in Department of Defense

Appropriations Acts, the following funds are hereby rescinded from

the following accounts and programs in the specified amounts:

‘‘Procurement of Weapons and Tracked Combat Vehicles,

Army, 2001/2003’’, $9,500,000;

116 STAT. 1548 PUBLIC LAW 107–248—OCT. 23, 2002

‘‘Procurement of Ammunition, Army, 2001/2003’’, $4,000,000; ‘‘Other Procurement, Army, 2001/2003’’, $8,000,000; ‘‘Other Procurement, Navy, 2001/2003’’, $5,000,000;

‘‘Missile Procurement, Air Force, 2001/2003’’, $93,600,000;

‘‘Missile Procurement, Army, 2002/2004’’, $37,650,000;

‘‘Procurement of Ammunition, Army, 2002/2004’’,

$19,000,000;

‘‘Other Procurement, Army, 2002/2004’’, $21,200,000;

‘‘Missile Procurement, Air Force, 2002/2004’’, $114,600,000;

‘‘Research, Development, Test and Evaluation, Navy, 2002/

2003’’, $1,700,000;

‘‘Research, Development, Test and Evaluation, Air Force,

2002/2003’’, $69,000,000; and

‘‘Research, Development, Test and Evaluation, DefenseWide, 2002/2003’’, $19,500,000.

SEC. 8051. None of the funds available in this Act may be

used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army

Reserve and Air Force Reserve for the purpose of applying any

administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are

a direct result of a reduction in military force structure.

SEC. 8052. None of the funds appropriated or otherwise made

available in this Act may be obligated or expended for assistance

to the Democratic People’s Republic of North Korea unless specifically appropriated for that purpose.

SEC. 8053. During the current fiscal year, funds appropriated

in this Act are available to compensate members of the National

Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under

section 112 of title 32, United States Code: Provided, That during

the performance of such duty, the members of the National Guard

shall be under State command and control: Provided further, That

such duty shall be treated as full-time National Guard duty for

purposes of sections 12602(a)(2) and (b)(2) of title 10, United States

Code.

SEC. 8054. Funds appropriated in this Act for operation and

maintenance of the Military Departments, Combatant Commands

and Defense Agencies shall be available for reimbursement of pay,

allowances and other expenses which would otherwise be incurred

against appropriations for the National Guard and Reserve when

members of the National Guard and Reserve provide intelligence

or counterintelligence support to Combatant Commands, Defense

Agencies and Joint Intelligence Activities, including the activities

and programs included within the National Foreign Intelligence

Program (NFIP), the Joint Military Intelligence Program (JMIP),

and the Tactical Intelligence and Related Activities (TIARA) aggregate: Provided, That nothing in this section authorizes deviation

from established Reserve and National Guard personnel and

training procedures.

SEC. 8055. During the current fiscal year, none of the funds

appropriated in this Act may be used to reduce the civilian medical

and medical support personnel assigned to military treatment facilities below the September 30, 2002 level: Provided, That the Service

Surgeons General may waive this section by certifying to the

congressional defense committees that the beneficiary population

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1549

is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and

capitation-based budgeting.

SEC. 8056. (a) LIMITATION ON PENTAGON RENOVATION COSTS.—

Not later than the date each year on which the President submits

to Congress the budget under section 1105 of title 31, United

States Code, the Secretary of Defense shall submit to Congress

a certification that the total cost for the planning, design, construction, and installation of equipment for the renovation of wedges

2 through 5 of the Pentagon Reservation, cumulatively, will not

exceed four times the total cost for the planning, design, construction, and installation of equipment for the renovation of wedge

1.

(b) ANNUAL ADJUSTMENT.—For purposes of applying the limitation in subsection (a), the Secretary shall adjust the cost for the

renovation of wedge 1 by any increase or decrease in costs attributable to economic inflation, based on the most recent economic

assumptions issued by the Office of Management and Budget for

use in preparation of the budget of the United States under section

1104 of title 31, United States Code.

(c) EXCLUSION OF CERTAIN COSTS.—For purposes of calculating

the limitation in subsection (a), the total cost for wedges 2 through

5 shall not include—

(1) any repair or reconstruction cost incurred as a result

of the terrorist attack on the Pentagon that occurred on September 11, 2001;

(2) any increase in costs for wedges 2 through 5 attributable

to compliance with new requirements of Federal, State, or

local laws; and

(3) any increase in costs attributable to additional security

requirements that the Secretary of Defense considers essential

to provide a safe and secure working environment.

(d) CERTIFICATION COST REPORTS.—As part of the annual certification under subsection (a), the Secretary shall report the projected cost (as of the time of the certification) for—

(1) the renovation of each wedge, including the amount

adjusted or otherwise excluded for such wedge under the

authority of paragraphs (2) and (3) of subsection (c) for the

period covered by the certification; and

(2) the repair and reconstruction of wedges 1 and 2 in

response to the terrorist attack on the Pentagon that occurred

on September 11, 2001.

(e) DURATION OF CERTIFICATION REQUIREMENT.—The requirement to make an annual certification under subsection (a) shall

apply until the Secretary certifies to Congress that the renovation

of the Pentagon Reservation is completed.

SEC. 8057. Notwithstanding any other provision of law, that

not more than 35 percent of funds provided in this Act for environmental remediation may be obligated under indefinite delivery/

indefinite quantity contracts with a total contract value of

$130,000,000 or higher.

SEC. 8058. (a) None of the funds available to the Department

of Defense for any fiscal year for drug interdiction or counterdrug activities may be transferred to any other department or

agency of the United States except as specifically provided in an

appropriations law.

10 USC 374 note.

Applicability.

Deadline.

Notification.

10 USC 2674

note.

116 STAT. 1550 PUBLIC LAW 107–248—OCT. 23, 2002

(b) None of the funds available to the Central Intelligence

Agency for any fiscal year for drug interdiction and counter-drug

activities may be transferred to any other department or agency

of the United States except as specifically provided in an appropriations law.

(TRANSFER OF FUNDS)

SEC. 8059. Appropriations available in this Act under the

heading ‘‘Operation and Maintenance, Defense-Wide’’ for increasing

energy and water efficiency in Federal buildings may, during their

period of availability, be transferred to other appropriations or

funds of the Department of Defense for projects related to increasing

energy and water efficiency, to be merged with and to be available

for the same general purposes, and for the same time period,

as the appropriation or fund to which transferred.

SEC. 8060. None of the funds appropriated by this Act may

be used for the procurement of ball and roller bearings other than

those produced by a domestic source and of domestic origin: Provided, That the Secretary of the military department responsible

for such procurement may waive this restriction on a case-bycase basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate

domestic supplies are not available to meet Department of Defense

requirements on a timely basis and that such an acquisition must

be made in order to acquire capability for national security purposes: Provided further, That this restriction shall not apply to

the purchase of ‘‘commercial items’’, as defined by section 4(12)

of the Office of Federal Procurement Policy Act, except that the

restriction shall apply to ball or roller bearings purchased as end

items.

SEC. 8061. Notwithstanding any other provision of law, funds

available to the Department of Defense shall be made available

to provide transportation of medical supplies and equipment, on

a nonreimbursable basis, to American Samoa, and funds available

to the Department of Defense shall be made available to provide

transportation of medical supplies and equipment, on a nonreimbursable basis, to the Indian Health Service when it is in

conjunction with a civil-military project.

SEC. 8062. None of the funds in this Act may be used to

purchase any supercomputer which is not manufactured in the

United States, unless the Secretary of Defense certifies to the

congressional defense committees that such an acquisition must

be made in order to acquire capability for national security purposes

that is not available from United States manufacturers.

SEC. 8063. Notwithstanding any other provision of law, the

Naval shipyards of the United States shall be eligible to participate

in any manufacturing extension program financed by funds appropriated in this or any other Act.

SEC. 8064. Notwithstanding any other provision of law, each

contract awarded by the Department of Defense during the current

fiscal year for construction or service performed in whole or in

part in a State (as defined in section 381(d) of title 10, United

States Code) which is not contiguous with another State and has

an unemployment rate in excess of the national average rate of

unemployment as determined by the Secretary of Labor, shall

include a provision requiring the contractor to employ, for the

purpose of performing that portion of the contract in such State

Applicability.

50 USC 403f

note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1551

that is not contiguous with another State, individuals who are

residents of such State and who, in the case of any craft or trade,

possess or would be able to acquire promptly the necessary skills:

Provided, That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of

national security.

SEC. 8065. (a) None of the funds made available in this or

any other Act may be used to pay the salary of any officer or

employee of the Department of Defense who approves or implements

the transfer of administrative responsibilities or budgetary

resources of any program, project, or activity financed by this Act

to the jurisdiction of another Federal agency not financed by this

Act without the express authorization of Congress: Provided, That

this limitation shall not apply to transfers of funds expressly provided for in Defense Appropriations Acts, or provisions of Acts

providing supplemental appropriations for the Department of

Defense.

(b) None of the funds in this or any other Act may be used

to dismantle national memorials commemorating United States

participation in World War I.

SEC. 8066. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES

AND SERVICES.—Notwithstanding any other provision of law, none

of the funds available to the Department of Defense for the current

fiscal year may be obligated or expended to transfer to another

nation or an international organization any defense articles or

services (other than intelligence services) for use in the activities

described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of

Representatives, and the Committee on Foreign Relations of the

Senate are notified 15 days in advance of such transfer.

(b) COVERED ACTIVITIES.—This section applies to—

(1) any international peacekeeping or peace-enforcement

operation under the authority of chapter VI or chapter VII

of the United Nations Charter under the authority of a United

Nations Security Council resolution; and

(2) any other international peacekeeping, peace-enforcement, or humanitarian assistance operation.

(c) REQUIRED NOTICE.—A notice under subsection (a) shall

include the following:

(1) A description of the equipment, supplies, or services

to be transferred.

(2) A statement of the value of the equipment, supplies,

or services to be transferred.

(3) In the case of a proposed transfer of equipment or

supplies—

(A) a statement of whether the inventory requirements

of all elements of the Armed Forces (including the reserve

components) for the type of equipment or supplies to be

transferred have been met; and

(B) a statement of whether the items proposed to be

transferred will have to be replaced and, if so, how the

President proposes to provide funds for such replacement.

SEC. 8067. To the extent authorized by subchapter VI of chapter

148 of title 10, United States Code, the Secretary of Defense may

issue loan guarantees in support of United States defense exports

not otherwise provided for: Provided, That the total contingent

liability of the United States for guarantees issued under the

Applicability.

Notice.

116 STAT. 1552 PUBLIC LAW 107–248—OCT. 23, 2002

authority of this section may not exceed $15,000,000,000: Provided

further, That the exposure fees charged and collected by the Secretary for each guarantee shall be paid by the country involved

and shall not be financed as part of a loan guaranteed by the

United States: Provided further, That the Secretary shall provide

quarterly reports to the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate and the Committees

on Appropriations, Armed Services, and International Relations

in the House of Representatives on the implementation of this

program: Provided further, That amounts charged for administrative fees and deposited to the special account provided for under

section 2540c(d) of title 10, shall be available for paying the costs

of administrative expenses of the Department of Defense that are

attributable to the loan guarantee program under subchapter VI

of chapter 148 of title 10, United States Code.

SEC. 8068. None of the funds available to the Department

of Defense under this Act shall be obligated or expended to pay

a contractor under a contract with the Department of Defense

for costs of any amount paid by the contractor to an employee

when— (1) such costs are for a bonus or otherwise in excess of

the normal salary paid by the contractor to the employee;

and

(2) such bonus is part of restructuring costs associated

with a business combination.

SEC. 8069. (a) None of the funds appropriated or otherwise

made available in this Act may be used to transport or provide

for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.

(b) The prohibition in subsection (a) shall not apply to any

obsolete World War II chemical munition or agent of the United

States found in the World War II Pacific Theater of Operations.

(c) The President may suspend the application of subsection

(a) during a period of war in which the United States is a party.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8070. During the current fiscal year, no more than $30,000,000 of appropriations made in this Act under the heading

‘‘Operation and Maintenance, Defense-Wide’’ may be transferred

to appropriations available for the pay of military personnel, to

be merged with, and to be available for the same time period

as the appropriations to which transferred, to be used in support

of such personnel in connection with support and services for eligible

organizations and activities outside the Department of Defense

pursuant to section 2012 of title 10, United States Code.

SEC. 8071. During the current fiscal year, in the case of an

appropriation account of the Department of Defense for which the

period of availability for obligation has expired or which has closed

under the provisions of section 1552 of title 31, United States

Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be

charged to any current appropriation account for the same purpose

as the expired or closed account if— (1) the obligation would have been properly chargeable

(except as to amount) to the expired or closed account before

the end of the period of availability or closing of that account;

Reports.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1553

(2) the obligation is not otherwise properly chargeable to

any current appropriation account of the Department of

Defense; and

(3) in the case of an expired account, the obligation is

not chargeable to a current appropriation of the Department

of Defense under the provisions of section 1405(b)(8) of the

National Defense Authorization Act for Fiscal Year 1991, Public

Law 101–510, as amended (31 U.S.C. 1551 note): Provided,

That in the case of an expired account, if subsequent review

or investigation discloses that there was not in fact a negative

unliquidated or unexpended balance in the account, any charge

to a current account under the authority of this section shall

be reversed and recorded against the expired account: Provided

further, That the total amount charged to a current appropriation under this section may not exceed an amount equal to

1 percent of the total appropriation for that account.

SEC. 8072. Funds appropriated in title II of this Act and for

the Defense Health Program in title VI of this Act for supervision

and administration costs for facilities maintenance and repair,

minor construction, or design projects may be obligated at the

time the reimbursable order is accepted by the performing activity:

Provided, That for the purpose of this section, supervision and

administration costs includes all in-house Government cost.

SEC. 8073. During the current fiscal year and hereafter, the

Secretary of Defense may waive reimbursement of the cost of conferences, seminars, courses of instruction, or similar educational

activities of the Asia-Pacific Center for Security Studies for military

officers and civilian officials of foreign nations if the Secretary

determines that attendance by such personnel, without reimbursement, is in the national security interest of the United States:

Provided, That costs for which reimbursement is waived pursuant

to this section shall be paid from appropriations available for the

Asia-Pacific Center.

SEC. 8074. (a) Notwithstanding any other provision of law,

the Chief of the National Guard Bureau may permit the use of

equipment of the National Guard Distance Learning Project by

any person or entity on a space-available, reimbursable basis. The

Chief of the National Guard Bureau shall establish the amount

of reimbursement for such use on a case-by-case basis.

(b) Amounts collected under subsection (a) shall be credited

to funds available for the National Guard Distance Learning Project

and be available to defray the costs associated with the use of

equipment of the project under that subsection. Such funds shall

be available for such purposes without fiscal year limitation.

SEC. 8075. Using funds available by this Act or any other

Act, the Secretary of the Air Force, pursuant to a determination

under section 2690 of title 10, United States Code, may implement

cost-effective agreements for required heating facility modernization

in the Kaiserslautern Military Community in the Federal Republic

of Germany: Provided, That in the City of Kaiserslautern such

agreements will include the use of United States anthracite as

the base load energy for municipal district heat to the United

States Defense installations: Provided further, That at Landstuhl

Army Regional Medical Center and Ramstein Air Base, furnished

heat may be obtained from private, regional or municipal services,

if provisions are included for the consideration of United States

coal as an energy source.

10 USC note

prec. 2161.

116 STAT. 1554 PUBLIC LAW 107–248—OCT. 23, 2002

SEC. 8076. None of the funds appropriated in title IV of this

Act may be used to procure end-items for delivery to military

forces for operational training, operational use or inventory requirements: Provided, That this restriction does not apply to end-items

used in development, prototyping, and test activities preceding and

leading to acceptance for operational use: Provided further, That

this restriction does not apply to programs funded within the

National Foreign Intelligence Program: Provided further, That the

Secretary of Defense may waive this restriction on a case-by-case

basis by certifying in writing to the Committees on Appropriations

of the House of Representatives and the Senate that it is in the

national security interest to do so.

SEC. 8077. None of the funds made available in this Act may

be used to approve or license the sale of the F–22 advanced tactical

fighter to any foreign government.

SEC. 8078. (a) The Secretary of Defense may, on a case-bycase basis, waive with respect to a foreign country each limitation

on the procurement of defense items from foreign sources provided

in law if the Secretary determines that the application of the

limitation with respect to that country would invalidate cooperative

programs entered into between the Department of Defense and

the foreign country, or would invalidate reciprocal trade agreements

for the procurement of defense items entered into under section

2531 of title 10, United States Code, and the country does not

discriminate against the same or similar defense items produced

in the United States for that country.

(b) Subsection (a) applies with respect to—

(1) contracts and subcontracts entered into on or after

the date of the enactment of this Act; and

(2) options for the procurement of items that are exercised

after such date under contracts that are entered into before

such date if the option prices are adjusted for any reason

other than the application of a waiver granted under subsection

(a).

(c) Subsection (a) does not apply to a limitation regarding

construction of public vessels, ball and roller bearings, food, and

clothing or textile materials as defined by section 11 (chapters

50–65) of the Harmonized Tariff Schedule and products classified

under headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019,

7218 through 7229, 7304.41 through 7304.49, 7306.40, 7502 through

7508, 8105, 8108, 8109, 8211, 8215, and 9404.

SEC. 8079. Funds made available to the Civil Air Patrol in

this Act under the heading ‘‘Drug Interdiction and Counter-Drug

Activities, Defense’’ may be used for the Civil Air Patrol Corporation’s counterdrug program, including its demand reduction program involving youth programs, as well as operational and training

drug reconnaissance missions for Federal, State, and local government agencies; and for equipment needed for mission support or

performance: Provided, That the Department of the Air Force should

waive reimbursement from the Federal, State, and local government

agencies for the use of these funds.

SEC. 8080. (a) PROHIBITION.—None of the funds made available

by this Act may be used to support any training program involving

a unit of the security forces of a foreign country if the Secretary

of Defense has received credible information from the Department

of State that the unit has committed a gross violation of human

rights, unless all necessary corrective steps have been taken.

Applicability.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1555

(b) MONITORING.—The Secretary of Defense, in consultation

with the Secretary of State, shall ensure that prior to a decision

to conduct any training program referred to in subsection (a), full

consideration is given to all credible information available to the

Department of State relating to human rights violations by foreign

security forces.

(c) WAIVER.—The Secretary of Defense, after consultation with

the Secretary of State, may waive the prohibition in subsection

(a) if he determines that such waiver is required by extraordinary

circumstances.

(d) REPORT.—Not more than 15 days after the exercise of any

waiver under subsection (c), the Secretary of Defense shall submit

a report to the congressional defense committees describing the

extraordinary circumstances, the purpose and duration of the

training program, the United States forces and the foreign security

forces involved in the training program, and the information

relating to human rights violations that necessitates the waiver.

SEC. 8081. The Secretary of Defense, in coordination with the

Secretary of Health and Human Services, may carry out a program

to distribute surplus dental equipment of the Department of

Defense, at no cost to the Department of Defense, to Indian Health

Service facilities and to federally-qualified health centers (within

the meaning of section 1905(l)(2)(B) of the Social Security Act

(42 U.S.C. 1396d(l)(2)(B))).

SEC. 8082. The total amount appropriated in this Act is hereby

reduced by $338,000,000 to reflect savings from favorable foreign

currency fluctuations, to be derived as follows:

‘‘Military Personnel, Army’’, $80,000,000;

‘‘Military Personnel, Navy’’, $6,500,000;

‘‘Military Personnel, Marine Corps’’, $11,000,000;

‘‘Military Personnel, Air Force’’, $29,000,000;

‘‘Operation and Maintenance, Army’’, $102,000,000;

‘‘Operation and Maintenance, Navy’’, $21,500,000;

‘‘Operation and Maintenance, Marine Corps’’, $2,000,000;

‘‘Operation and Maintenance, Air Force’’, $46,000,000; and ‘‘Operation and Maintenance, Defense-Wide’’, $40,000,000.

SEC. 8083. None of the funds appropriated or made available

in this Act to the Department of the Navy shall be used to develop,

lease or procure the T–AKE class of ships unless the main propulsion diesel engines and propulsors are manufactured in the United

States by a domestically operated entity: Provided, That the Secretary of Defense may waive this restriction on a case-by-case

basis by certifying in writing to the Committees on Appropriations

of the House of Representatives and the Senate that adequate

domestic supplies are not available to meet Department of Defense

requirements on a timely basis and that such an acquisition must

be made in order to acquire capability for national security purposes

or there exists a significant cost or quality difference.

SEC. 8084. None of the funds appropriated or otherwise made

available by this or other Department of Defense Appropriations

Acts may be obligated or expended for the purpose of performing

repairs or maintenance to military family housing units of the

Department of Defense, including areas in such military family

housing units that may be used for the purpose of conducting

official Department of Defense business.

SEC. 8085. Notwithstanding any other provision of law, funds

appropriated in this Act under the heading ‘‘Research, Development,

Deadline.

116 STAT. 1556 PUBLIC LAW 107–248—OCT. 23, 2002

Test and Evaluation, Defense-Wide’’ for any advanced concept technology demonstration project may only be obligated 30 days after

a report, including a description of the project and its estimated

annual and total cost, has been provided in writing to the congressional defense committees: Provided, That the Secretary of Defense

may waive this restriction on a case-by-case basis by certifying

to the congressional defense committees that it is in the national

interest to do so.

SEC. 8086. Notwithstanding any other provision of law, for

the purpose of establishing all Department of Defense policies governing the provision of care provided by and financed under the

military health care system’s case management program under

10 U.S.C. 1079(a)(17), the term ‘‘custodial care’’ shall be defined

as care designed essentially to assist an individual in meeting

the activities of daily living and which does not require the supervision of trained medical, nursing, paramedical or other specially

trained individuals: Provided, That the case management program

shall provide that members and retired members of the military

services, and their dependents and survivors, have access to all

medically necessary health care through the health care delivery

system of the military services regardless of the health care status

of the person seeking the health care: Provided further, That the

case management program shall be the primary obligor for payment

of medically necessary services and shall not be considered as

secondarily liable to title XIX of the Social Security Act, other

welfare programs or charity based care.

SEC. 8087. During the current fiscal year, refunds attributable

to the use of the Government travel card, refunds attributable

to the use of the Government Purchase Card and refunds attributable to official Government travel arranged by Government Contracted Travel Management Centers may be credited to operation

and maintenance accounts of the Department of Defense which

are current when the refunds are received.

SEC. 8088. (a) REGISTERING FINANCIAL MANAGEMENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD CHIEF INFORMATION

OFFICER.—None of the funds appropriated in this Act may be used

for a mission critical or mission essential financial management

information technology system (including a system funded by the

defense working capital fund) that is not registered with the Chief

Information Officer of the Department of Defense. A system shall

be considered to be registered with that officer upon the furnishing

to that officer of notice of the system, together with such information

concerning the system as the Secretary of Defense may prescribe.

A financial management information technology system shall be

considered a mission critical or mission essential information technology system as defined by the Under Secretary of Defense (Comptroller).

(b) CERTIFICATIONS AS TO COMPLIANCE WITH FINANCIAL

MANAGEMENT MODERNIZATION PLAN.—

(1) During the current fiscal year, a financial management

major automated information system may not receive Milestone

A approval, Milestone B approval, or full rate production, or

their equivalent, within the Department of Defense until the

Under Secretary of Defense (Comptroller) certifies, with respect

to that milestone, that the system is being developed and

managed in accordance with the Department’s Financial

Management Modernization Plan. The Under Secretary of

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1557

Defense (Comptroller) may require additional certifications, as

appropriate, with respect to any such system.

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications

under paragraph (1).

(c) CERTIFICATIONS AS TO COMPLIANCE WITH CLINGER-COHEN

ACT.—(1) During the current fiscal year, a major automated

information system may not receive Milestone A approval, Milestone

B approval, or full rate production approval, or their equivalent,

within the Department of Defense until the Chief Information

Officer certifies, with respect to that milestone, that the system

is being developed in accordance with the Clinger-Cohen Act of

1996 (40 U.S.C. 1401 et seq.). The Chief Information Officer may

require additional certifications, as appropriate, with respect to

any such system.

(2) The Chief Information Officer shall provide the congressional defense committees timely notification of certifications under

paragraph (1). Each such notification shall include, at a minimum,

the funding baseline and milestone schedule for each system covered

by such a certification and confirmation that the following steps

have been taken with respect to the system:

(A) Business process reengineering.

(B) An analysis of alternatives.

(C) An economic analysis that includes a calculation of the

return on investment.

(D) Performance measures.

(E) An information assurance strategy consistent with the

Department’s Global Information Grid.

(d) DEFINITIONS.—For purposes of this section:

(1) The term ‘‘Chief Information Officer’’ means the senior

official of the Department of Defense designated by the Secretary of Defense pursuant to section 3506 of title 44, United

States Code.

(2) The term ‘‘information technology system’’ has the

meaning given the term ‘‘information technology’’ in section

5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(3) The term ‘‘major automated information system’’ has

the meaning given that term in Department of Defense Directive 5000.1.

SEC. 8089. During the current fiscal year, none of the funds

available to the Department of Defense may be used to provide

support to another department or agency of the United States

if such department or agency is more than 90 days in arrears

in making payment to the Department of Defense for goods or

services previously provided to such department or agency on a

reimbursable basis: Provided, That this restriction shall not apply

if the department is authorized by law to provide support to such

department or agency on a nonreimbursable basis, and is providing

the requested support pursuant to such authority: Provided further,

That the Secretary of Defense may waive this restriction on a

case-by-case basis by certifying in writing to the Committees on

Appropriations of the House of Representatives and the Senate

that it is in the national security interest to do so.

SEC. 8090. None of the funds provided in this Act may be

used to transfer to any nongovernmental entity ammunition held

by the Department of Defense that has a center-fire cartridge

and a United States military nomenclature designation of ‘‘armor

Notification.

Notification.

116 STAT. 1558 PUBLIC LAW 107–248—OCT. 23, 2002

penetrator’’, ‘‘armor piercing (AP)’’, ‘‘armor piercing incendiary

(API)’’, or ‘‘armor-piercing incendiary-tracer (API–T)’’, except to an

entity performing demilitarization services for the Department of

Defense under a contract that requires the entity to demonstrate

to the satisfaction of the Department of Defense that armor piercing

projectiles are either: (1) rendered incapable of reuse by the demilitarization process; or (2) used to manufacture ammunition pursuant

to a contract with the Department of Defense or the manufacture

of ammunition for export pursuant to a License for Permanent

Export of Unclassified Military Articles issued by the Department

of State.

SEC. 8091. Notwithstanding any other provision of law, the

Chief of the National Guard Bureau, or his designee, may waive

payment of all or part of the consideration that otherwise would

be required under 10 U.S.C. 2667, in the case of a lease of personal

property for a period not in excess of 1 year to any organization

specified in 32 U.S.C. 508(d), or any other youth, social, or fraternal

non-profit organization as may be approved by the Chief of the

National Guard Bureau, or his designee, on a case-by-case basis.

SEC. 8092. None of the funds appropriated by this Act shall

be used for the support of any nonappropriated funds activity

of the Department of Defense that procures malt beverages and

wine with nonappropriated funds for resale (including such alcoholic

beverages sold by the drink) on a military installation located

in the United States unless such malt beverages and wine are

procured within that State, or in the case of the District of

Columbia, within the District of Columbia, in which the military

installation is located: Provided, That in a case in which the military

installation is located in more than one State, purchases may be

made in any State in which the installation is located: Provided

further, That such local procurement requirements for malt beverages and wine shall apply to all alcoholic beverages only for

military installations in States which are not contiguous with

another State: Provided further, That alcoholic beverages other

than wine and malt beverages, in contiguous States and the District

of Columbia shall be procured from the most competitive source,

price and other factors considered.

SEC. 8093. During the current fiscal year and hereafter, under

regulations prescribed by the Secretary of Defense, the Center

of Excellence for Disaster Management and Humanitarian Assistance may also pay, or authorize payment for, the expenses of

providing or facilitating education and training for appropriate military and civilian personnel of foreign countries in disaster management, peace operations, and humanitarian assistance.

SEC. 8094. (a) The Department of Defense is authorized to

enter into agreements with the Department of Veterans Affairs

and federally-funded health agencies providing services to Native

Hawaiians for the purpose of establishing a partnership similar

to the Alaska Federal Health Care Partnership, in order to maximize Federal resources in the provision of health care services

by federally-funded health agencies, applying telemedicine technologies. For the purpose of this partnership, Native Hawaiians

shall have the same status as other Native Americans who are

eligible for the health care services provided by the Indian Health

Service.

(b) The Department of Defense is authorized to develop a consultation policy, consistent with Executive Order No. 13084 (issued

Regulations.

10 USC 182 note.

Applicability.

Alcohol and

alcoholic

beverages.

10 USC 2488

note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1559

May 14, 1998), with Native Hawaiians for the purpose of assuring

maximum Native Hawaiian participation in the direction and

administration of governmental services so as to render those services more responsive to the needs of the Native Hawaiian community.

(c) For purposes of this section, the term ‘‘Native Hawaiian’’

means any individual who is a descendant of the aboriginal people

who, prior to 1778, occupied and exercised sovereignty in the area

that now comprises the State of Hawaii.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8095. Of the amounts appropriated in this Act under

the heading ‘‘Research, Development, Test and Evaluation, DefenseWide’’, $136,000,000 shall be made available for the Arrow missile

defense program: Provided, That of this amount, $66,000,000 shall

be available for the purpose of continuing the Arrow System

Improvement Program (ASIP), and $70,000,000 shall be available

for the purpose of producing Arrow missile components in the

United States and Arrow missile components and missiles in Israel

to meet Israel’s defense requirements, consistent with each nation’s

laws, regulations and procedures: Provided further, That funds

made available under this provision for production of missiles and

missile components may be transferred to appropriations available

for the procurement of weapons and equipment, to be merged with

and to be available for the same time period and the same purposes

as the appropriation to which transferred: Provided further, That

the transfer authority provided under this provision is in addition

to any other transfer authority contained in this Act.

SEC. 8096. Funds available to the Department of Defense for

the Global Positioning System during the current fiscal year may

be used to fund civil requirements associated with the satellite

and ground control segments of such system’s modernization program.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8097. Of the amounts appropriated in this Act under

the heading, ‘‘Operation and Maintenance, Defense-Wide’’,

$68,000,000 shall remain available until expended: Provided, That

notwithstanding any other provision of law, the Secretary of Defense

is authorized to transfer such funds to other activities of the Federal

Government.

SEC. 8098. Section 8106 of the Department of Defense Appropriations Act, 1997 (titles I through VIII of the matter under

subsection 101(b) of Public Law 104–208; 110 Stat. 3009–111; 10

U.S.C. 113 note) shall continue in effect to apply to disbursements

that are made by the Department of Defense in fiscal year 2003.

SEC. 8099. In addition to amounts provided in this Act,

$1,700,000 is hereby appropriated for ‘‘Defense Health Program’’,

to remain available for obligation until expended: Provided, That

notwithstanding any other provision of law, these funds shall be

available only for a grant to the Fisher House Foundation, Inc.,

only for the construction and furnishing of additional Fisher Houses

to meet the needs of military family members when confronted

with the illness or hospitalization of an eligible military beneficiary.

SEC. 8100. Notwithstanding any other provision of this Act,

the total amount appropriated in this Act is hereby reduced by

Applicability.

10 USC 113 note.

116 STAT. 1560 PUBLIC LAW 107–248—OCT. 23, 2002

$850,000,000, to reflect savings to be achieved from business process

reforms, management efficiencies, and procurement of administrative and management support, to be distributed as follows:

‘‘Operation and Maintenance, Army’’, $26,000,000;

‘‘Operation and Maintenance, Navy’’, $60,300,000;

‘‘Operation and Maintenance, Marine Corps’’, $8,400,000;

‘‘Operation and Maintenance, Air Force’’, $91,200,000;

‘‘Operation and Maintenance, Defense-Wide’’, $199,000,000;

‘‘Operation and Maintenance, Army Reserve’’, $5,900,000;

‘‘Operation and Maintenance, Marine Corps Reserve’’,

$900,000;

‘‘Operation and Maintenance, Air Force Reserve’’,

$1,000,000;

‘‘Operation and Maintenance, Army National Guard’’,

$4,300,000;

‘‘Operation and Maintenance, Air National Guard’’,

$2,600,000;

‘‘Aircraft Procurement, Army’’, $3,700,000;

‘‘Missile Procurement, Army’’, $1,100,000;

‘‘Procurement of Weapons and Tracked Combat Vehicles,

Army’’, $3,100,000;

‘‘Other Procurement, Army’’, $17,700,000;

‘‘Aircraft Procurement, Navy’’, $22,800,000;

‘‘Weapons Procurement, Navy’’, $4,800,000;

‘‘Procurement of Ammunition, Navy and Marine Corps’’,

$1,000,000;

‘‘Shipbuilding and Conversion, Navy’’, $15,700,000;

‘‘Other Procurement, Navy’’, $7,200,000;

‘‘Procurement, Marine Corps’’, $2,600,000;

‘‘Aircraft Procurement, Air Force’’, $9,700,000;

‘‘Missile Procurement, Air Force’’, $6,200,000;

‘‘Other Procurement, Air Force’’, $6,200,000;

‘‘Procurement, Defense-Wide’’, $1,200,000;

‘‘Research, Development, Test and Evaluation, Army’’,

$23,500,000;

‘‘Research, Development, Test and Evaluation, Navy’’,

$55,700,000;

‘‘Research, Development, Test and Evaluation, Air Force’’,

$66,200,000;

‘‘Research, Development, Test and Evaluation, DefenseWide’’, $154,000,000;

‘‘Operational Test and Evaluation, Defense’’, $5,000,000;

‘‘National Defense Sealift Fund’’, $1,000,000;

‘‘Defense Health Program’’, $12,000,000;

‘‘Chemical Agents and Munitions Destruction, Army’’,

$20,000,000; and

‘‘Drug Interdiction and Counter-Drug Activities, Defense’’,

$10,000,000:

Provided, That these reductions shall be applied proportionally

to each budget activity, activity group and subactivity group and

each program, project, and activity within each appropriation

account: Provided further, That none of the funds provided in this

Act may be used for consulting and advisory services for legislative

affairs and legislative liaison functions.

Applicability.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1561

(INCLUDING TRANSFER OF FUNDS)

SEC. 8101. Of the amounts appropriated in this Act under

the heading ‘‘Shipbuilding and Conversion, Navy’’, $1,279,899,000

shall be available until September 30, 2003, to fund prior year

shipbuilding cost increases: Provided, That upon enactment of this

Act, the Secretary of the Navy shall transfer such funds to the

following appropriations in the amounts specified: Provided further,

That the amounts transferred shall be merged with and be available

for the same purposes as the appropriations to which transferred:

To:

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1996/03’’:

LPD–17 Amphibious Transport Dock Ship Program, $300,681,000;

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1998/03’’:

DDG–51 Destroyer Program, $76,100,000;

New SSN, $190,882,000;

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1999/03’’:

DDG–51 Destroyer Program, $93,736,000;

LPD–17 Amphibious Transport Dock Ship Program, $82,000,000;

New SSN, $135,800,000;

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 2000/03’’:

DDG–51 Destroyer Program, $51,724,000;

LPD–17 Amphibious Transport Dock Ship Program, $187,000,000;

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 2001/03’’:

DDG–51 Destroyer Program, $63,976,000; and

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 2002/03’’:

DDG–51 Destroyer Program, $98,000,000.

SEC. 8102. The Secretary of the Navy may settle, or compromise, and pay any and all admiralty claims under 10 U.S.C.

7622 arising out of the collision involving the U.S.S.

GREENEVILLE and the EHIME MARU, in any amount and without regard to the monetary limitations in subsections (a) and (b)

of that section: Provided, That such payments shall be made from

funds available to the Department of the Navy for operation and

maintenance.

SEC. 8103. The total amount appropriated in title II of this

Act is hereby reduced by $97,000,000, to reflect savings attributable

to improved supervision in determining appropriate purchases to

be made using the Government purchase card, to be derived as

follows:

‘‘Operation and Maintenance, Army’’, $24,000,000;

‘‘Operation and Maintenance, Navy’’, $29,000,000;

‘‘Operation and Maintenance, Marine Corps’’, $3,000,000;

‘‘Operation and Maintenance, Air Force’’, $27,000,000; and

‘‘Operation and Maintenance, Defense-Wide’’, $14,000,000.

SEC. 8104. Funds provided for the current fiscal year or hereafter for Operation and maintenance for the Armed Forces may

116 STAT. 1562 PUBLIC LAW 107–248—OCT. 23, 2002

be used, notwithstanding any other provision of law, for the purchase of ultralightweight camouflage net systems as unit spares.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8105. During the current fiscal year and for fiscal years

2004 and 2005, notwithstanding any other provision of law, the

Secretary of Defense may transfer not more than $20,000,000 of

unobligated balances remaining in a Research, Development, Test

and Evaluation, Army appropriation account during the last fiscal

year before the account closes under section 1552 of title 31 United

States Code, to a current Research, Development, Test and Evaluation, Army appropriation account to be used only for the continuation of the Venture Capital Fund demonstration, as originally

approved in Section 8150 of Public Law 107–117, to pursue high

payoff technology and innovations in science and technology: Provided, That any such transfer shall be made not later than July

31 of each year: Provided further, That funds so transferred shall

be merged with and shall be available for the same purposes and

for the same time period as the appropriation to which transferred:

Provided further, That the transfer authority provided in this section is in addition to any other transfer authority available to

the Department of Defense: Provided further, That no funds for

programs, projects, or activities designated as special congressional

interest items in DD Form 1414 shall be eligible for transfer under

the authority of this section: Provided further, That any unobligated

balances transferred under this authority may be restored to the

original appropriation if required to cover unexpected upward

adjustments: Provided further, That the Secretary of the Army

shall provide an annual report to the House and Senate Appropriations Committees no later than 15 days prior to the annual transfer

of funds under authority of this section describing the sources

and amounts of funds proposed to be transfered, summarizing the

projects funded under this demonstration program (including the

name and location of project sponsors) to date, a description of

the major program accomplishments to date, and an overall assessment of the benefits of this demonstration program compared to

the goals expressed in the legislative history accompanying Section

8150 of Public Law 107–117.

SEC. 8106. Notwithstanding any other provision of law or regulation, the Secretary of Defense may exercise the provisions of

38 U.S.C. 7403(g) for occupations listed in 38 U.S.C. 7403(a)(2)

as well as the following:

Pharmacists, Audiologists, and Dental Hygienists.

(A) The requirements of 38 U.S.C. 7403(g)(1)(A) shall

apply.

(B) The limitations of 38 U.S.C. 7403(g)(1)(B) shall

not apply.

SEC. 8107. Funds appropriated by this Act, or made available

by the transfer of funds in this Act, for intelligence activities are

deemed to be specifically authorized by the Congress for purposes

of section 504 of the National Security Act of 1947 (50 U.S.C.

414) during fiscal year 2003 until the enactment of the Intelligence

Authorization Act for fiscal year 2003.

SEC. 8108. In addition to funds made available elsewhere in

this Act $7,750,000 is hereby appropriated and shall remain available until expended to provide assistance, by grant or otherwise

(such as, but not limited to, the provision of funds for repairs,

Reports.

Deadline.

Deadline.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1563

maintenance, construction, and/or for the purchase of information

technology, text books, teaching resources), to public schools that

have unusually high concentrations of special needs military

dependents enrolled: Provided, That in selecting school systems

to receive such assistance, special consideration shall be given to

school systems in States that are considered overseas assignments,

and all schools within these school systems shall be eligible for

assistance: Provided further, That up to $2,000,000 shall be available for the Department of Defense to establish a non-profit trust

fund to assist in the public-private funding of public school repair

and maintenance projects, or provide directly to non-profit organizations who in return will use these monies to provide assistance

in the form of repair, maintenance, or renovation to public school

systems that have high concentrations of special needs military

dependents and are located in States that are considered overseas

assignments, and of which 2 percent shall be available to support

the administration and execution of the funds: Provided further,

That to the extent a federal agency provides this assistance, by

contract, grant, or otherwise, it may accept and expend non-federal

funds in combination with these federal funds to provide assistance

for the authorized purpose, if the non-federal entity requests such

assistance and the non-federal funds are provided on a reimbursable

basis: Provided further, That $2,750,000 shall be available for a

grant to the Central Kitsap School District, Washington.

SEC. 8109. Notwithstanding any other provision in this Act,

the total amount appropriated in this Act is hereby reduced by

$400,000,000, to reduce cost growth in information technology

development, to be distributed as follows:

‘‘Operation and Maintenance, Defense-Wide’’, $19,500,000;

‘‘Other Procurement, Army’’, $53,200,000;

‘‘Other Procurement, Navy’’, $20,600,000;

‘‘Procurement, Marine Corps’’, $3,400,000;

‘‘Other Procurement, Air Force’’, $12,000,000;

‘‘Procurement, Defense-Wide’’, $3,500,000;

‘‘Research, Development, Test and Evaluation, Army’’,

$17,700,000;

‘‘Research, Development, Test and Evaluation, Navy’’,

$25,600,000;

‘‘Research, Development, Test and Evaluation, Air Force’’,

$27,200,000;

‘‘Research, Development, Test and Evaluation, DefenseWide’’, $36,600,000;

‘‘Defense Working Capital Funds’’, $148,600,000; and

‘‘Defense Health Program’’, $32,100,000:

Provided, That these reductions shall be applied proportionally

to each budget activity, activity group and subactivity group and

each program, project, and activity within each appropriation

account.

SEC. 8110. Notwithstanding section 1116(c) of title 10, United

States Code, payments into the Department of Defense MedicareEligible Retiree Health Care Fund for fiscal year 2003 under section

1116(a) of such title shall be made from funds available in this

Act for the pay of military personnel.

SEC. 8111. None of the funds in this Act may be used to

initiate a new start program without prior notification to the Office

of Secretary of Defense and the congressional defense committees.

Applicability.

Grants.

Washington.

116 STAT. 1564 PUBLIC LAW 107–248—OCT. 23, 2002

SEC. 8112. The amount appropriated in title II of this Act

is hereby reduced by $120,000,000, to reflect Working Capital Fund

cash balance and rate stabilization adjustments, to be derived as

follows:

‘‘Operation and Maintenance, Navy’’, $120,000,000.

SEC. 8113. Notwithstanding any other provision in this Act,

the total amount appropriated in this Act is hereby reduced by

$48,000,000, to reduce excess funded carryover, to be derived as

follows:

‘‘Operation and Maintenance, Army’’, $48,000,000.

SEC. 8114. Of the amounts appropriated in title II of this

Act, not less than $1,000,000,000 is available for operations of

the Department of Defense to prosecute the war on terrorism.

SEC. 8115. (a) In addition to the amounts provided elsewhere

in this Act, the amount of $3,400,000 is hereby appropriated to

the Department of Defense for ‘‘Operation and Maintenance, Army

National Guard’’. Such amount shall be made available to the

Secretary of the Army only to make a grant in the amount of

$3,400,000 to the entity specified in subsection (b) to facilitate

access by veterans to opportunities for skilled employment in the

construction industry.

(b) The entity referred to in subsection (a) is the Center for

Military Recruitment, Assessment and Veterans Employment, a

nonprofit labor-management co-operation committee provided for

by section 302(c)(9) of the Labor-Management Relations Act, 1947

(29 U.S.C. 186(c)(9)), for the purposes set forth in section 6(b)

of the Labor Management Cooperation Act of 1978 (29 U.S.C. 175a

note).

SEC. 8116. (a) During the current fiscal year, funds available

to the Secretary of a military department for Operation and Maintenance may be used for the purposes stated in subsection (b) to

support chaplain-led programs to assist members of the Armed

Forces and their immediate family members in building and

maintaining a strong family structure.

(b) The purposes referred to in subsection (a) are costs of

transportation, food, lodging, supplies, fees, and training materials

for members of the Armed Forces and their family members while

participating in such programs, including participation at retreats

and conferences.

SEC. 8117. Section 8159 of the Department of Defense Appropriations Act, 2002 (division A of Public Law 107–117; 115 Stat.

2284), is revised as follows:

(1) in subsection (c) by inserting at the end of paragraph

(1) the following new sentence: ‘‘Notwithstanding the provisions

of Section 3324 of Title 31, United States Code, payment for

the acquisition of leasehold interests under this section may

be made for each annual term up to one year in advance.’’.

(2) by adding the following paragraph (g):

‘‘(g) Notwithstanding any other provision of law, any payments

required for a lease entered into under this Section, or any payments made pursuant to subsection (c)(3) above, may be made

from appropriations available for operation and maintenance or

for lease or procurement of aircraft at the time that the lease

takes effect; appropriations available for operation and maintenance

or for lease or procurement of aircraft at the time that the payment

is due; or funds appropriated for those payments.’’.

10 USC 2401a

note.

Grants.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1565

SEC. 8118. (a) LIMITATION ON ADDITIONAL NMCI CONTRACT

WORK STATIONS.—Notwithstanding section 814 of the Floyd D.

Spence National Defense Authorization Act for Fiscal Year 2001

(as enacted into law by Public Law 106–398; 114 Stat. 1654A– 215) or any other provision of law, the total number of work stations

provided under the Navy-Marine Corps Intranet contract (as defined

in subsection (i) of such section 814) may not exceed 160,000 work

stations until the Under Secretary of Defense for Acquisition, Technology, and Logistics and the Chief Information Officer of the

Department of Defense certify to the congressional defense committees that all of the conditions specified in subsection (b) have

been satisfied.

(b) CONDITIONS.—The conditions referred to in subsection (a)

are the following:

(1) The Commander of the Navy Operational Test and

Evaluation Force conducts an operational assessment of the

work stations that have been fully transitioned to the NavyMarine Corps Intranet, as defined in the Test and Evaluation

Strategy Plan for the Navy-Marine Corps Intranet approved

on September 4, 2002.

(2) The results of the assessment are submitted to the

Under Secretary of Defense for Acquisition, Technology, and

Logistics and the Chief Information Officer of the Department

of Defense, and they determine that the results of the assessment are acceptable.

SEC. 8119. None of the funds in this Act, excluding funds

provided for advance procurement of fiscal year 2004 aircraft, may

be obligated for acquisition of more than 16 F–22 aircraft until

the Under Secretary of Defense for Acquisition, Technology, and

Logistics has provided to the congressional defense committees:

(a) A formal risk assessment which identifies and characterizes

the potential cost, technical, schedule or other significant risks

resulting from increasing the F–22 procurement quantities prior

to the conclusion of Dedicated Initial Operational Test and Evaluation (DIOT&E) of the aircraft: Provided, That such risk assessment

shall evaluate, based on the best available current information:

(1) the range of potential additional program costs (compared to

the program costs assumed in the President’s fiscal year 2003

budget) that could result from retrofit modifications to F–22 production aircraft that are placed under contract or delivered to the

government prior to the conclusion of DIOT&E; and (2) a costbenefit analysis comparing, in terms of unit cost and total program

cost, the cost advantages of increasing aircraft production at this

time to the potential cost of retrofitting production aircraft once

DIOT&E has been completed; and

(b) Certification that increasing the F–22 production quantity

for fiscal year 2003 beyond 16 airplanes involves lower risk and

lower total program cost than staying at that quantity, or he submits a revised production plan, funding plan and test schedule.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8120. Section 305(a) of the Emergency Supplemental Act,

2002 (division B of Public Law 107–117; 115 Stat. 2300), is amended

by adding at the end the following new sentences: ‘‘From amounts

transferred to the Pentagon Reservation Maintenance Revolving

Fund pursuant to the preceding sentence, not to exceed

$305,000,000 may be transferred to the Defense Emergency

116 STAT. 1566 PUBLIC LAW 107–248—OCT. 23, 2002

Response Fund, but only in amounts necessary to reimburse that

fund (and the category of that fund designated as ‘Pentagon Repair/

Upgrade’) for expenses charged to that fund (and that category)

between September 11, 2001, and February 19, 2002, for reconstruction costs of the Pentagon Reservation. Funds transferred to the

Defense Emergency Response Fund pursuant to this section shall

be available only for reconstruction, recovery, force protection, or

security enhancements for the Pentagon Reservation.’’.

SEC. 8121. FINANCING AND FIELDING OF KEY ARMY CAPABILITIES. The Department of Defense and the Department of the Army

shall make future budgetary and programming plans to fully finance

the Non-Line of Sight (NLOS) Objective Force cannon and resupply

vehicle program in order to field this system in the 2008 timeframe.

As an interim capability to enhance Army lethality, survivability,

and mobility for light and medium forces before complete fielding

of the Objective Force, the Army shall ensure that budgetary and

programmatic plans will provide for no fewer than six Stryker

Brigade Combat Teams to be fielded between 2003 and 2008.

SEC. 8122. (a) MANAGEMENT OF CHEMICAL DEMILITARIZATION

ACTIVITIES AT BLUEGRASS ARMY DEPOT, KENTUCKY.—If a technology

other than the baseline incineration program is selected for the

destruction of lethal chemical munitions pursuant to section 142

of the Strom Thurmond National Defense Authorization Act for

Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 1521 note), the

program manager for the Assembled Chemical Weapons Assessment

shall be responsible for management of the construction, operation,

and closure, and any contracting relating thereto, of chemical

demilitarization activities at Bluegrass Army Depot, Kentucky,

including management of the pilot-scale facility phase of the alternative technology.

(b) MANAGEMENT OF CHEMICAL DEMILITARIZATION ACTIVITIES

AT PUEBLO DEPOT, COLORADO.—The program manager for the

Assembled Chemical Weapons Assessment shall be responsible for

management of the construction, operation, and closure, and any

contracting relating thereto, of chemical demilitarization activities

at Pueblo Army Depot, Colorado, including management of the

pilot-scale facility phase of the alternative technology selected for

the destruction of lethal chemical munitions.

SEC. 8123. Of the total amount appropriated pursuant to this

Act for any selected component of the Department of Defense that

the Director of the Office of Management and Budget determines

shall require audited financial statements under subsection (c) of

section 3515 of title 31, United States Code, not more than 99

percent may be expended until the Inspector General of the Department of Defense certifies to the Congress of the United States

that the head of the affected agency has made a formal decision

as to whether to audit vouchers of the agency pursuant to section

3521(b) of title 31, United States Code: Provided, That such certification shall include a written assessment of the agency head’s

decision by the Inspector General.

SEC. 8124. Of the funds made available under the heading

‘‘Operation and Maintenance, Air Force’’, $8,000,000 shall be available to realign railroad track on Elmendorf Air Force Base and

Fort Richardson.

50 USC 1521

note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1567

(TRANSFER OF FUNDS)

SEC. 8125. Upon enactment of this Act, the Secretary of the

Navy shall make the following transfers of funds: Provided, That

the amounts transferred shall be available for the same purpose

as the appropriations to which transferred, and for the same time

period as the appropriation from which transferred: Provided further, That the amounts shall be transferred between the following

appropriations in the amount specified:

From:

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1994/2003’’:

DDG–51 Destroyer program, $7,900,000;

LHD–1 Amphibious Assault Ship program,

$6,500,000;

Oceanographic Ship program, $3,416,000;

Craft, outfitting, post delivery, first destination

transportation, $1,800,000;

Mine warfare command and control ship, $604,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion,

Navy, 1999/2003’’:

LPD–17 Amphibious Transport Dock Ship program, $20,220,000.

SEC. 8126. Of the amounts appropriated in Public Law 107– 206 under the heading ‘‘Defense Emergency Response Fund’’, an

amount up to the fair market value of the leasehold interest in

adjacent properties necessary for the force protection requirements

of Tooele Army Depot, Utah, may be made available to resolve

any property disputes associated with Tooele Army Depot, Utah,

and to acquire such leasehold interest as required: Provided, That

none of these funds may be used to acquire fee title to the properties.

SEC. 8127. Up to $3,000,000 of the funds appropriated under

the heading ‘‘Operation and Maintenance, Navy’’ in this Act for

the Pacific Missile Range Facility may be made available to contract

for the repair, maintenance, and operation of adjacent off-base

water, drainage, and flood control systems critical to base operations.

SEC. 8128. Of the total amount appropriated by this Act under

the heading ‘‘Operation and Maintenance, Defense-Wide’’,

$3,000,000 may be available for payments under section 363 of

the Floyd D. Spence National Defense Authorization Act for Fiscal

Year 2001 (as enacted into law by Public Law 106–398; 114 Stat.

1654A–77).

SEC. 8129. In addition to the amounts appropriated or otherwise

made available in this Act, $8,100,000, to remain available until

September 30, 2003, is hereby appropriated to the Department

of Defense: Provided, That the Secretary of Defense shall make

grants in the amount of $2,800,000 to the American Red Cross

for Armed Forces Emergency Services; $2,800,000 to the United

Service Organizations, Incorporated; and $2,500,000 to the Intrepid

Sea-Air-Space Foundation.

SEC. 8130. None of the funds appropriated in this Act under

the heading ‘‘Overseas Contingency Operations Transfer Fund’’ may

be transferred or obligated for Department of Defense expenses

not directly related to the conduct of overseas contingencies: Provided, That the Secretary of Defense shall submit a report no Reports.

Deadline.

Grants.

116 STAT. 1568 PUBLIC LAW 107–248—OCT. 23, 2002

later than 30 days after the end of each fiscal quarter to the

Committees on Appropriations of the Senate and House of Representatives that details any transfer of funds from the ‘‘Overseas

Contingency Operations Transfer Fund’’: Provided further, That

the report shall explain any transfer for the maintenance of real

property, pay of civilian personnel, base operations support, and

weapon, vehicle or equipment maintenance.

SEC. 8131. For purposes of section 1553(b) of title 31, United

States Code, any subdivision of appropriations made in this Act

under the heading ‘‘Shipbuilding and Conversion, Navy’’ shall be

considered to be for the same purpose as any subdivision under

the heading ‘‘Shipbuilding and Conversion, Navy’’ appropriations

in any prior year, and the 1 percent limitation shall apply to

the total amount of the appropriation.

SEC. 8132. The budget of the President for fiscal year 2004

submitted to the Congress pursuant to section 1105 of title 31,

United States Code, and each annual budget request thereafter,

shall include separate budget justification documents for costs of

United States Armed Forces’ participation in contingency operations

for the Military Personnel accounts, the Overseas Contingency

Operations Transfer Fund, the Operation and Maintenance

accounts, and the Procurement accounts: Provided, That these

budget justification documents shall include a description of the

funding requested for each anticipated contingency operation, for

each military service, to include active duty and Guard and Reserve

components, and for each appropriation account: Provided further,

That these documents shall include estimated costs for each element

of expense or object class, a reconciliation of increases and decreases

for ongoing contingency operations, and programmatic data

including, but not limited to troop strength for each active duty

and Guard and Reserve component, and estimates of the major

weapons systems deployed in support of each contingency: Provided

further, That these documents shall include budget exhibits OP–

5 and OP–32, as defined in the Department of Defense Financial

Management Regulation, for the Overseas Contingency Operations

Transfer Fund for fiscal years 2002 and 2003.

SEC. 8133. Notwithstanding any other provision in this Act,

the total amount appropriated in this Act is hereby reduced by

$59,260,000, to reduce cost growth in travel, to be distributed

as follows:

‘‘Operation and Maintenance, Army’’, $14,000,000;

‘‘Operation and Maintenance, Navy’’, $9,000,000;

‘‘Operation and Maintenance, Marine Corps’’, $10,000,000;

‘‘Operation and Maintenance, Air Force’’, $15,000,000; and

‘‘Operation and Maintenance, Defense-Wide’’, $11,260,000.

SEC. 8134. None of the funds in this Act may be used for

research, development, test, evaluation, procurement or deployment

of nuclear armed interceptors of a missile defense system.

(INCLUDING RESCISSIONS)

SEC. 8135. (a) The total amount appropriated or otherwise

made available in titles II, III, and IV of this Act is hereby reduced

by $1,374,000,000 to reflect revised economic assumptions: Provided, That the Secretary of Defense shall allocate this reduction

proportionately to each budget activity, activity group, subactivity

group, and each program, project, and activity within each

Budget.

10 USC 221 note.

Applicability.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1569

applicable appropriation account: Provided further, That appropriations made available in this Act for the pay and benefits of military

personnel are exempt from reductions under this provision.

(b) Of the funds provided in the Department of Defense Appropriations Act, 2002, (division A of Public Law 107–117),

$300,000,000 are rescinded from amounts made available under

titles III and IV of that Act: Provided, That the Secretary of Defense

shall allocate this rescission proportionately by program, project,

and activity.

SEC. 8136. During the current fiscal year, section 2533a(f)

of Title 10, United States Code, shall not apply to any fish, shellfish,

or seafood product. 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).

SEC. 8137. None of the funds appropriated by this Act may

be used to convert the 939th Combat Search and Rescue Wing

of the Air Force Reserve until the Secretary of the Air Force

certifies to the Congress the following: (a) that a functionally comparable search and rescue capability is available in the 939th Search

and Rescue Wing’s area of responsibility; (b) that any new aircraft

assigned to the unit will comply with local environmental and

noise standards; and (c) that the Air Force has developed a plan

for the transition of personnel and manpower billets currently

assigned to this unit.

SEC. 8138. NAVY DRY-DOCK AFDL–47 (a) REQUIREMENT FOR

SALE.—Notwithstanding any other provision of law, the Secretary

of the Navy shall sell the Navy Dry-dock AFDL–47, located in

Charleston, South Carolina, to Detyens Shipyards, Inc., the current

lessee of the dry-dock from the Navy.

(b) CONSIDERATION.—As consideration for the sale of the drydock under subsection (a), the Secretary shall receive an amount

equal to the fair market value of the dry-dock at the time of

the sale, as determined by the Secretary, taking into account

amounts paid by, or due and owing from, the lessee.

SEC. 8139. From funds made available in this Act for the

Office of Economic Adjustment under the heading ‘‘Operation and

Maintenance, Defense-Wide’’, $100,000 shall be available for the

elimination of asbestos at former Battery 204, Odiorne Point, New

Hampshire.

SEC. 8140. The Secretary of Defense may, using amounts appropriated or otherwise made available by this Act, make a grant

to the National D-Day Museum in the amount of $3,000,000.

SEC. 8141. (a) PRELIMINARY STUDY AND ANALYSIS REQUIRED.—

The Secretary of the Army shall carry out a preliminary engineering

study and environmental analysis regarding the establishment of

a connector road between United States Route 1 and Telegraph

Road in the vicinity of Fort Belvoir, Virginia.

(b) FUNDING.—Of the amount appropriated by title II under

the heading ‘‘OPERATION AND MAINTENANCE, ARMY’’, up to

$5,000,000 may be available for the preliminary study and analysis

required by subsection (a).

SEC. 8142. Of the amount appropriated by title V under the

heading ‘‘NATIONAL DEFENSE SEALIFT FUND’’, up to $10,000,000

may be available for implementing the recommendations resulting

from the Navy’s Non-Self Deployable Watercraft (NDSW) Study

and the Joint Chiefs of Staff Focused Logistics Study, which are

Applicability.

116 STAT. 1570 PUBLIC LAW 107–248—OCT. 23, 2002

to determine the requirements of the Navy for providing lift support

for mine warfare ships and other vessels.

SEC. 8143. (a) Congress finds that— (1) the Medal of Honor is the highest award for valor

in action against an enemy force which can be bestowed upon

an individual serving in the Armed Forces of the United States;

(2) the Medal of Honor was established by Congress during

the Civil War to recognize soldiers who had distinguished themselves by gallantry in action;

(3) the Medal of Honor was conceived by Senator James

Grimes of the State of Iowa in 1861; and

(4) the Medal of Honor is the Nation’s highest military

honor, awarded for acts of personal bravery or self-sacrifice

above and beyond the call of duty.

(b)(1) Chapter 9 of title 36, United States Code, is amended

by adding at the end the following new section:

‘‘§ 903. Designation of Medal of Honor Flag

‘‘(a) DESIGNATION.—The Secretary of Defense shall design and

designate a flag as the Medal of Honor Flag. In selecting the

design for the flag, the Secretary shall consider designs submitted

by the general public. ‘‘(b) PRESENTATION.—The Medal of Honor Flag shall be presented as specified in sections 3755, 6257, and 8755 of title 10

and section 505 of title 14.’’. (2) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘903. Designation of Medal of Honor Flag.’’.

(c)(1)(A) Chapter 357 of title 10, United States Code, is amended

by adding at the end the following new section:

‘‘§ 3755. Medal of honor: presentation of Medal of Honor Flag

‘‘The President shall provide for the presentation of the Medal

of Honor Flag designated under section 903 of title 36 to each

person to whom a medal of honor is awarded under section 3741

of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation

of the medal under section 3741 or 3752(a) of this title.’’.

(B) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘3755. Medal of honor: presentation of Medal of Honor Flag.’’.

(2)(A) Chapter 567 of such title is amended by adding at the

end the following new section:

‘‘§ 6257. Medal of honor: presentation of Medal of Honor Flag

‘‘The President shall provide for the presentation of the Medal

of Honor Flag designated under section 903 of title 36 to each

person to whom a medal of honor is awarded under section 6241

of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation

of the medal under section 6241 or 6250 of this title.’’. (B) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘6257. Medal of honor: presentation of Medal of Honor Flag.’’.

(3)(A) Chapter 857 of title 10, United States Code, is amended

by adding at the end the following new section:

President.

36 USC 903 note.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1571

‘‘§ 8755. Medal of honor: presentation of Medal of Honor Flag

‘‘The President shall provide for the presentation of the Medal

of Honor Flag designated under section 903 of title 36 to each

person to whom a medal of honor is awarded under section 8741

of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation

of the medal under section 8741 or 8752(a) of this title.’’. (B) The table of sections at the beginning of such chapter

is amended by adding at the end the following new item:

‘‘8755. Medal of honor: presentation of Medal of Honor Flag.’’.

(4)(A) Chapter 13 of title 14, United States Code, is amended

by inserting after section 504 the following new section:

‘‘§ 505. Medal of honor: presentation of Medal of Honor Flag

‘‘The President shall provide for the presentation of the Medal

of Honor Flag designated under section 903 of title 36 to each

person to whom a medal of honor is awarded under section 491

of this title after the date of the enactment of this section. Presentation of the flag shall be made at the same time as the presentation

of the medal under section 491 or 498 of this title.’’. (B) The table of sections at the beginning of such chapter

is amended by inserting after the item relating to section 504

the following new item:

‘‘505. Medal of honor: presentation of Medal of Honor Flag.’’.

(d) The President shall provide for the presentation of the

Medal of Honor Flag designated under section 903 of title 36,

United States Code, as added by subsection (b), to each person

awarded the Medal of Honor before the date of enactment of this

Act who is living as of that date. Such presentation shall be made

as expeditiously as possible after the date of the designation of

the Medal of Honor Flag by the Secretary of Defense under such

section.

SEC. 8144. (a) The conditions described in section 1305 of

the National Defense Authorization Act for Fiscal Year 2000 (Public

Law 106–65; 22 U.S.C. 5952 note) shall not apply to the obligation

and expenditure of funds for fiscal years 2000, 2001, 2002 and

2003 for the planning, design, or construction of a chemical weapons

destruction facility in Russia if the President submits to Congress

a written certification that includes— (1) a statement as to why waiving the conditions is important to the national security interests of the United States;

(2) a full and complete justification for exercising this

waiver; and

(3) a plan to promote a full and accurate disclosure by

Russia regarding the size, content, status, and location of its

chemical weapons stockpile.

(b) EXPIRATION OF AUTHORITY.—The authority under paragraph

(a) shall expire on September 30, 2003.

SEC. 8145. Effective as of August 2, 2002, the 2002 Supplemental Appropriations Act for Further Recovery From and Response

To Terrorist Attacks on the United States (Public Law 107–206)

is amended—

(1) in section 305(a) (116 Stat. 840), by striking ‘‘fiscal

year 2002’’ and inserting ‘‘fiscal years 2002 and 2003’’; and

(2) in section 309 (116 Stat. 841), by striking ‘‘of’’ after

‘‘instead’’.

Effective date.

36 USC 903 note.

116 STAT. 1572 PUBLIC LAW 107–248—OCT. 23, 2002

SEC. 8146. The Secretary of Defense may modify the grant

made to the State of Maine pursuant to section 310 of the 2002

Supplemental Appropriations Act for Further Recovery From and

Response To Terrorist Attacks on the United States (Public Law

107–206) such that the modified grant is for purposes of supporting

community adjustment activities relating to the closure of the Naval

Security Group Activity, Winter Harbor, Maine (the naval base

on Schoodic Point, within Acadia National Park), and the reuse

of such Activity, including reuse as a research and education center

the activities of which may be consistent with the purposes of

Acadia National Park, as determined by the Secretary of the

Interior. The grant may be so modified not later than 60 days

after the date of the enactment of this Act.

SEC. 8147. None of the funds appropriated by this Act may

be used for leasing of transport/VIP aircraft under any contract

entered into under any procurement procedures other than pursuant

to the Competition and Contracting Act.

SEC. 8148. (a) Funds appropriated by title II under the heading

‘‘Operation and Maintenance, Defense-Wide’’ may be used by the

Military Community and Family Policy Office of the Department

of Defense for the operation of multidisciplinary, impartial domestic

violence fatality review teams of the Department of Defense that

operate on a confidential basis.

(b) Of the total amount appropriated by title II under the

heading ‘‘Operation and Maintenance, Defense-Wide’’, $5,000,000

may be used for an advocate of victims of domestic violence to

provide confidential assistance to victims of domestic violence at

military installations.

(c) Not later than June 30, 2003, the Secretary of Defense

shall submit to the Congress a report on the implementation of

the recommendations included in the reports submitted to the Secretary by the Defense Task Force on Domestic Violence.

SEC. 8149. (a) LIMITATION ON NUMBER OF GOVERNMENT CHARGE

CARD ACCOUNTS DURING FISCAL YEAR 2003.—The total number

of accounts for government purchase charge cards and government

travel charge cards for Department of Defense personnel during

fiscal year 2003 may not exceed 1,500,000 accounts.

(b) REQUIREMENT FOR CREDITWORTHINESS FOR ISSUANCE OF

GOVERNMENT CHARGE CARD.—(1) The Secretary of Defense shall

evaluate the creditworthiness of an individual before issuing the

individual a government purchase charge card or government travel

charge card.

(2) An individual may not be issued a government purchase

charge card or government travel charge card if the individual

is found not credit worthy as a result of the evaluation under

paragraph (1).

(c) DISCIPLINARY ACTION FOR MISUSE OF GOVERNMENT CHARGE

CARD.—(1) The Secretary shall establish guidelines and procedures

for disciplinary actions to be taken against Department personnel

for improper, fraudulent, or abusive use of government purchase

charge cards and government travel charge cards.

(2) The guidelines and procedures under this subsection shall

include appropriate disciplinary actions for use of charge cards

for purposes, and at establishments, that are inconsistent with

the official business of the Department or with applicable standards

of conduct.

(3) The disciplinary actions under this subsection may include—

Guidelines.

Procedures.

10 USC 2784

note.

Deadline.

Reports.

Deadline.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1573

(A) the review of the security clearance of the individual

involved; and

(B) the modification or revocation of such security clearance

in light of the review.

(4) The guidelines and procedures under this subsection shall

apply uniformly among the Armed Forces and among the elements

of the Department.

(d) REPORT.—Not later than June 30, 2003, the Secretary shall

submit to the congressional defense committees a report on the

implementation of the requirements and limitations in this section,

including the guidelines and procedures established under subsection (c).

SEC. 8150. Notwithstanding any provision 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) or any other provision

of law, the Secretary of the Navy shall transfer administrative

jurisdiction of the portion of the former Charleston Naval Base,

South Carolina, comprising a law enforcement training facility of

the Department of Justice, together with any improvements

thereon, to the head of the department of the Federal Government

having jurisdiction of the Border Patrol as of the date of the transfer

under this section.

TITLE IX—COMMERCIAL REUSABLE IN-SPACE

TRANSPORTATION

SEC. 901. SHORT TITLE.

This title may be cited as the ‘‘Commercial Reusable In-Space

Transportation Act of 2002’’.

SEC. 902. FINDINGS.

Congress makes the following findings:

(1) It is in the national interest to encourage the production

of cost-effective, in-space transportation systems, which would

be built and operated by the private sector on a commercial

basis.

(2) The use of reusable in-space transportation systems

will enhance performance levels of in-space operations, enhance

efficient and safe disposal of satellites at the end of their

useful lives, and increase the capability and reliability of

existing ground-to-space launch vehicles.

(3) Commercial reusable in-space transportation systems

will enhance the economic well-being and national security

of the United States by reducing space operations costs for

commercial and national space programs and by adding new

space capabilities to space operations.

(4) Commercial reusable in-space transportation systems

will provide new cost-effective space capabilities (including

orbital transfers from low altitude orbits to high altitude orbits

and return, the correction of erroneous satellite orbits, and

the recovery, refurbishment, and refueling of satellites) and

the provision of upper stage functions to increase ground-toorbit launch vehicle payloads to geostationary and other high

energy orbits.

(5) Commercial reusable in-space transportation systems

can enhance and enable the space exploration of the United

States by providing lower cost trajectory injection from earth

42 USC 14751.

42 USC 14701

note.

Commercial

Reusable

In-Space

Transportation

Act of 2000.

Government

organization.

Deadline.

Applicability.

116 STAT. 1574 PUBLIC LAW 107–248—OCT. 23, 2002

orbit, transit trajectory control, and planet arrival deceleration

to support potential National Aeronautics and Space Administration missions to Mars, Pluto, and other planets.

(6) Satellites stranded in erroneous earth orbit due to deficiencies in their launch represent substantial economic loss

to the United States and present substantial concerns for the

current backlog of national space assets.

(7) Commercial reusable in-space transportation systems

can provide new options for alternative planning approaches

and risk management to enhance the mission assurance of

national space assets.

(8) Commercial reusable in-space transportation systems

developed by the private sector can provide in-space transportation services to the National Aeronautics and Space Administration, the Department of Defense, the National Reconnaissance Office, and other agencies without the need for the United

States to bear the cost of production of such systems.

(9) The availability of loan guarantees, with the cost of

credit risk to the United States paid by the private-sector,

is an effective means by which the United States can help

qualifying private-sector companies secure otherwise unattainable private financing for the production of commercial reusable

in-space transportation systems, while at the same time minimizing Government commitment and involvement in the

development of such systems.

SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL

REUSABLE IN-SPACE TRANSPORTATION.

(a) AUTHORITY TO MAKE LOAN GUARANTEES.—The Secretary

may guarantee loans made to eligible United States commercial

providers for purposes of producing commercial reusable in-space

transportation services or systems.

(b) ELIGIBLE UNITED STATES COMMERCIAL PROVIDERS.—The

Secretary shall prescribe requirements for the eligibility of United

States commercial providers for loan guarantees under this section.

Such requirements shall ensure that eligible providers are financially capable of undertaking a loan guaranteed under this section.

(c) LIMITATION ON LOANS GUARANTEED.—The Secretary may

not guarantee a loan for a United States commercial provider

under this section unless the Secretary determines that credit would

not otherwise be reasonably available at the time of the guarantee

for the commercial reusable in-space transportation service or

system to be produced utilizing the proceeds of the loan.

(d) CREDIT SUBSIDY.—

(1) COLLECTION REQUIRED.—The Secretary shall collect

from each United States commercial provider receiving a loan

guarantee under this section an amount equal to the amount,

as determined by the Secretary, to cover the cost, as defined

in section 502(5) of the Federal Credit Reform Act of 1990,

of the loan guarantee.

(2) PERIODIC DISBURSEMENTS.—In the case of a loan guarantee in which proceeds of the loan are disbursed over time,

the Secretary shall collect the amount required under this

subsection on a pro rata basis, as determined by the Secretary,

at the time of each disbursement.

(e) OTHER TERMS AND CONDITIONS.—

Requirements.

42 USC 14752.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1575

(1) PROHIBITION ON SUBORDINATION.—A loan guaranteed

under this section may not be subordinated to another debt

contracted by the United States commercial provider concerned,

or to any other claims against such provider.

(2) RESTRICTION ON INCOME.—A loan guaranteed under

this section may not—

(A) provide income which is excluded from gross income

for purposes of chapter 1 of the Internal Revenue Code

of 1986; or

(B) provide significant collateral or security, as determined by the Secretary, for other obligations the income

from which is so excluded.

(3) TREATMENT OF GUARANTEE.—The guarantee of a loan

under this section shall be conclusive evidence of the following:

(A) That the guarantee has been properly obtained.

(B) That the loan qualifies for the guarantee.

(C) That, but for fraud or material misrepresentation

by the holder of the loan, the guarantee is valid, legal,

and enforceable.

(4) OTHER TERMS AND CONDITIONS.—The Secretary may

establish any other terms and conditions for a guarantee of

a loan under this section, as the Secretary considers appropriate

to protect the financial interests of the United States.

(f) ENFORCEMENT OF RIGHTS.—

(1) IN GENERAL.—The Attorney General may take any

action the Attorney General considers appropriate to enforce

any right accruing to the United States under a loan guarantee

under this section.

(2) FORBEARANCE.—The Attorney General may, with the

approval of the parties concerned, forebear from enforcing any

right of the United States under a loan guaranteed under

this section for the benefit of a United States commercial provider if such forbearance will not result in any cost, as defined

in section 502(5) of the Federal Credit Reform Act of 1990,

to the United States.

(3) UTILIZATION OF PROPERTY.—Notwithstanding any other

provision of law and subject to the terms of a loan guaranteed

under this section, upon the default of a United States commercial provider under the loan, the Secretary may, at the election

of the Secretary—

(A) assume control of the physical asset financed by

the loan; and

(B) complete, recondition, reconstruct, renovate, repair,

maintain, operate, or sell the physical asset.

(g) CREDIT INSTRUMENTS.—

(1) AUTHORITY TO ISSUE INSTRUMENTS.—Notwithstanding

any other provision of law, the Secretary may, subject to such

terms and conditions as the Secretary considers appropriate,

issue credit instruments to United States commercial providers

of in-space transportation services or system, with the aggregate cost (as determined under the provisions of the Federal

Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)) of such

instruments not to exceed $1,500,000,000, but only to the extent

that new budget authority to cover such costs is provided in

subsequent appropriations Acts or authority is otherwise provided in subsequent appropriations Acts.

116 STAT. 1576 PUBLIC LAW 107–248—OCT. 23, 2002

(2) CREDIT SUBSIDY.—The Secretary shall provide a credit

subsidy for any credit instrument issued under this subsection

in accordance with the provisions of the Federal Credit Reform

Act of 1990.

(3) CONSTRUCTION.—The eligibility of a United States

commercial provider of in-space transportation services or systems for a credit instrument under this subsection is in addition

to any eligibility of such provider for a loan guarantee under

other provisions of this section.

SEC. 904. DEFINITIONS.

In this title:

(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Defense.

(2) COMMERCIAL PROVIDER.—The term ‘‘commercial provider’’ means any person or entity providing commercial

reusable in-orbit space transportation services or systems, primary control of which is held by persons other than the Federal

Government, a State or local government, or a foreign government.

(3) IN-SPACE TRANSPORTATION SERVICES.—The term ‘‘inspace transportation services’’ means operations and activities

involved in the direct transportation or attempted transportation of a payload or object from one orbit to another by

means of an in-space transportation vehicle.

(4) IN-SPACE TRANSPORTATION SYSTEM.—The term ‘‘in-space

transportation system’’ means the space and ground elements,

including in-space transportation vehicles and support space

systems, and ground administration and control facilities and

associated equipment, necessary for the provision of in-space

transportation services.

(5) IN-SPACE TRANSPORTATION VEHICLE.—The term ‘‘inspace transportation vehicle’’ means a vehicle designed—

(A) to be based and operated in space;

(B) to transport various payloads or objects from one

orbit to another orbit; and

(C) to be reusable and refueled in space.

(6) UNITED STATES COMMERCIAL PROVIDER.—The term

‘‘United States commercial provider’’ means any commercial

provider organized under the laws of the United States that

is more than 50 percent owned by United States nationals.

42 USC 14753.

PUBLIC LAW 107–248—OCT. 23, 2002 116 STAT. 1577

LEGISLATIVE HISTORY—H.R. 5010:

HOUSE REPORTS: Nos. 107–532 (Comm. on Appropriations) and 107–732

(Comm. of Conference).

SENATE REPORTS: No. 107–213 (Comm. on Appropriations).

CONGRESSIONAL RECORD, Vol. 148 (2002):

June 27, considered and passed House.

July 31, Aug. 1, considered and passed Senate, amended.

Oct. 10, House agreed to conference report.

Oct. 16, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):

Oct. 23, Presidential remarks and statement.

Æ

This Act may be cited as the ‘‘Department of Defense Appropriations Act, 2003’’.

Approved October 23, 2002.