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[107th Congress Public Law 248]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ248.107]

[[Page 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. <<NOTE: Oct. 23, 
                         2002 -  [H.R. 5010]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Department of 
Defense Appropriations Act, 2003.>> 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

[[Page 116 STAT. 1520]]

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.

[[Page 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

[[Page 116 STAT. 1522]]

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, <<NOTE: Grants. Florida Memorial College.>> 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 <<NOTE: Grants.>> purposes: Provided, That notwithstanding any 
other provision of law, of the funds provided in this Act for Civil 
Military programs under this heading,

[[Page 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.

[[Page 116 STAT. 1524]]

             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.

[[Page 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.

[[Page 116 STAT. 1526]]

                 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

[[Page 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.

[[Page 116 STAT. 1528]]

        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

[[Page 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;

[[Page 116 STAT. 1530]]

            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 
        destination 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

[[Page 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 contractor-owned 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

[[Page 116 STAT. 1532]]

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, <<NOTE: Deadline.>> 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.

[[Page 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

[[Page 116 STAT. 1534]]

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.

[[Page 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

[[Page 116 STAT. 1536]]

until September 30, 2004: Provided further, <<NOTE: Records.>> 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. <<NOTE: 10 USC 1584 note.>> 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.

[[Page 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, <<NOTE: Notification.>> 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) <<NOTE: 115 Stat. 2247.>> 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. <<NOTE: Notification.>> 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. <<NOTE: 10 USC 2306b note.>> 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

[[Page 116 STAT. 1538]]

 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. <<NOTE: Reports. Deadline. 10 USC 401 note.>> 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

[[Page 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, <<NOTE: Applicability.>> 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. <<NOTE: Lobbying.>> 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 full-time 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, <<NOTE: Applicability.>> 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 cost-effective 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 Javits-Wagner-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

[[Page 116 STAT. 1540]]

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. <<NOTE: 10 USC 2687 note.>> 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

[[Page 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, <<NOTE: Reports.>> 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. Sec. 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. Sec. 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.

[[Page 116 STAT. 1542]]

    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 Javits-Wagner-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

[[Page 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) <<NOTE: Reports.>> 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, <<NOTE: Applicability.>> 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, <<NOTE: Certification.>> 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

[[Page 116 STAT. 1544]]

Circular A-76 shall not apply to competitions conducted under this 
section.
    Sec. 8033. <<NOTE: 41 USC 10b-2.>> (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) <<NOTE: Reports.>> 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. <<NOTE: President. 10 USC 221 note.>> 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.

[[Page 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. <<NOTE: State listing.>> (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.

[[Page 116 STAT. 1546]]

    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, <<NOTE: 50 USC 403u note.>> 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, Defense-Wide'', 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

[[Page 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-by-case 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;

[[Page 116 STAT. 1548]]

            ``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, Defense-Wide, 
        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

[[Page 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. <<NOTE: Deadline. Notification. 10 USC 2674 note.>> (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) <<NOTE: Applicability.>> 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. <<NOTE: 10 USC 374 note.>> (a) None of the funds 
available to the Department of Defense for any fiscal year for drug 
interdiction or counter-drug activities may be transferred to any other 
department or agency of the United States except as specifically 
provided in an appropriations law.

[[Page 116 STAT. 1550]]

    (b) <<NOTE: 50 USC 403f note.>> 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-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, <<NOTE: Applicability.>> 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

[[Page 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. <<NOTE: Notice.>> (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) <<NOTE: Applicability.>> 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

[[Page 116 STAT. 1552]]

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, <<NOTE: Reports.>> 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;

[[Page 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. <<NOTE: 10 USC note prec. 2161.>> 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.

[[Page 116 STAT. 1554]]

    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-by-case 
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) <<NOTE: Applicability.>> 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.

[[Page 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) <<NOTE: Deadline.>> 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,

[[Page 116 STAT. 1556]]

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

[[Page 116 STAT. 1557]]

        Defense (Comptroller) may require additional certifications, as 
        appropriate, with respect to any such system.
            (2) <<NOTE: Notification.>> 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) <<NOTE: Notification.>> 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

[[Page 116 STAT. 1558]]

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. <<NOTE: Alcohol and alcoholic beverages. 10 USC 2488 
note.>> 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, <<NOTE: Applicability.>> 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. <<NOTE: Regulations. 10 USC 182 note.>> 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

[[Page 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, Defense-Wide'', 
$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. <<NOTE: Applicability. 10 USC 113 note.>> 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

[[Page 116 STAT. 1560]]

$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, Defense-
        Wide'', $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, <<NOTE: Applicability.>> 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.

[[Page 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

[[Page 116 STAT. 1562]]

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, <<NOTE: Deadline.>> 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, <<NOTE: Reports. Deadline.>> 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,

[[Page 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, <<NOTE: Grants. Washington.>> 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, Defense-
        Wide'', $36,600,000;
            ``Defense Working Capital Funds'', $148,600,000; and
            ``Defense Health Program'', $32,100,000:

Provided, <<NOTE: Applicability.>> 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 Medicare-Eligible 
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.

[[Page 116 STAT. 1564]]

    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''. <<NOTE: Grants.>> 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), <<NOTE: 10 
USC 2401a note.>> 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.''.

[[Page 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 Navy-Marine 
        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 cost-benefit 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

[[Page 116 STAT. 1566]]

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) <<NOTE: 50 USC 1521 note.>> 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.

[[Page 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, <<NOTE: Grants.>> 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, <<NOTE: Reports. Deadline.>> That the Secretary of Defense 
shall submit a report no

[[Page 116 STAT. 1568]]

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. <<NOTE: Applicability.>> 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. <<NOTE: Budget. 10 USC 221 note.>> 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

[[Page 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. <<NOTE: Applicability.>> 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 dry-dock 
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

[[Page 116 STAT. 1570]]

to determine the requirements of the Navy for providing lift support for 
mine warfare ships and other vessels.
    Sec. 8143. <<NOTE: 36 USC 903 note.>> (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:

``Sec. 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) <<NOTE: President.>> Chapter 357 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 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:

``Sec. 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:

[[Page 116 STAT. 1571]]

``Sec. 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:

``Sec. 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) <<NOTE: 36 USC 903 note.>> 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. <<NOTE: Effective date.>> 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''.

[[Page 116 STAT. 1572]]

    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. <<NOTE: Deadline.>> 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) <<NOTE: Deadline. Reports.>> 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. <<NOTE: 10 USC 2784 note.>> (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) <<NOTE: Guidelines. Procedures.>> 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--

[[Page 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) <<NOTE: Applicability.>> The guidelines and procedures under 
this subsection shall apply uniformly among the Armed Forces and among 
the elements of the Department.

    (d) <<NOTE: Deadline.>> 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. <<NOTE: Government organization.>> 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 <<NOTE: Commercial Reusable In-Space Transportation Act of 
2002.>> IX--COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION

SEC. 901. <<NOTE: 42 USC 14701 note.>> SHORT TITLE.

    This title may be cited as the ``Commercial Reusable In-Space 
Transportation Act of 2002''.

SEC. 902. <<NOTE: 42 USC 14751.>> 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-to-orbit 
        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

[[Page 116 STAT. 1574]]

        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. <<NOTE: 42 USC 14752.>> 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) <<NOTE: Requirements.>> 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.--

[[Page 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.

[[Page 116 STAT. 1576]]

            (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. <<NOTE: 42 USC 14753.>> 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 ``in-space 
        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 ``in-space 
        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.

[[Page 116 STAT. 1577]]

    This Act may be cited as the ``Department of Defense Appropriations 
Act, 2003''.

    Approved October 23, 2002.

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.

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