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[House Report 108-491]
[From the U.S. Government Publishing Office]

108th Congress                                            Rept. 108-491
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

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

 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2005

                                _______
                                

                  May 20, 2004.--Ordered to be printed

                                _______
                                

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

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 4200]

    The supplemental report shows changes in existing law made 
by the bill (H.R. 4200), as reported. The material contained in 
this supplemental report was omitted in the report submitted on 
May 14, 2004 (H. Rept. 108-491).

         Changes in Existing Law Made by the Bill, as Reported

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

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

           *       *       *       *       *       *       *

Subtitle B--Army Programs

           *       *       *       *       *       *       *

[SEC. 126. PILOT PROGRAM FOR FLEXIBLE FUNDING OF CRUISER CONVERSIONS 
                    AND OVERHAULS.

    [(a) Establishment.--The Secretary of the Navy may carry 
out a pilot program of flexible funding of conversions and 
overhauls of cruisers of the Navy in accordance with this 
section.
    [(b) Authority.--Under the pilot program, the Secretary 
may, subject to subsection (d), transfer amounts described in 
subsection (c) to the appropriation for the Navy for 
procurement for shipbuilding and conversion for any fiscal year 
to continue to provide funds for any conversion or overhaul of 
a cruiser of the Navy for which funds were initially provided 
from the appropriation to which transferred.
    [(c) Funds Available for Transfer.--The amounts available 
for transfer under this section are amounts appropriated to the 
Navy for any fiscal year after fiscal year 2003 and before 
fiscal year 2013 for the following purposes:
            [(1) For procurement, as follows:
                    [(A) For shipbuilding and conversion.
                    [(B) For weapons procurement.
                    [(C) For other procurement.
            [(2) For operation and maintenance.
    [(d) Limitations.--(1) A transfer may be made with respect 
to a cruiser under this section only to meet either (or both) 
of the following requirements:
            [(A) An increase in the size of the workload for 
        conversion or overhaul to meet existing requirements 
        for the cruiser.
            [(B) A new conversion or overhaul requirement 
        resulting from a revision of the original baseline 
        conversion or overhaul program for the cruiser.
    [(2) A transfer may not be made under this section before 
the date that is 30 days after the date on which the Secretary 
of the Navy transmits to the congressional defense committees a 
written notification of the intended transfer. The notification 
shall include the following matters:
            [(A) The purpose of the transfer.
            [(B) The amounts to be transferred.
            [(C) Each account from which the funds are to be 
        transferred.
            [(D) Each program, project, or activity from which 
        the funds are to be transferred.
            [(E) Each account to which the funds are to be 
        transferred.
            [(F) A discussion of the implications of the 
        transfer for the total cost of the cruiser conversion 
        or overhaul program for which the transfer is to be 
        made.
    [(e) Merger of Funds.--Amounts transferred to an 
appropriation with respect to the conversion or overhaul of a 
cruiser under this section shall be credited to and merged with 
other funds in the appropriation to which transferred and shall 
be available for the conversion or overhaul of such cruiser for 
the same period as the appropriation to which transferred.
    [(f) Relationship to Other Transfer Authority.--The 
authority to transfer funds under this section is in addition 
to any other authority provided by law to transfer appropriated 
funds and is not subject to any restriction, limitation, or 
procedure that is applicable to the exercise of any such other 
authority.
    [(g) Final Report.--Not later than October 1, 2011, the 
Secretary of the Navy shall submit to the congressional defense 
committees a report containing the Secretary's evaluation of 
the efficacy of the authority provided under this section.
    [(h) Termination of Program.--No transfer may be made under 
this section after September 30, 2012.]

           *       *       *       *       *       *       *

Subtitle D--Air Force Programs

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (c) Interpretation.--Nothing in subsection (b) or section 
1111 of the Emergency Supplemental Appropriations Act for 
Defense and for the Reconstruction of Iraq and Afghanistan, 
2004 (Public Law 108-106; 117 Stat. 1215) is intended to 
prohibit the Secretary of the Air Force from executing the 
program described in section 135(a) of this Act and section 116 
of the National Defense Authorization Act for Fiscal Year 2005.

SEC. 135. PROCUREMENT OF TANKER AIRCRAFT.

    (a) * * *
    [(b) Multiyear Procurement Authority.--(1) Beginning with 
the fiscal year 2004 program year, the Secretary of the Air 
Force may, in accordance with section 2306b of title 10, United 
States Code, enter into a multiyear contract for the purchase 
of tanker aircraft necessary to meet the requirements of the 
Air Force for which leasing of tanker aircraft is provided for 
under the multiyear aircraft lease pilot program but for which 
the number of tanker aircraft leased under the authority of 
subsection (a) is insufficient.
    [(2) The total number of tanker aircraft purchased through 
a multiyear contract under this subsection may not exceed 80.
    [(3) Notwithstanding subsection (k) of section 2306b of 
title 10, United States Code, a contract under this subsection 
may be for any period not in excess of 10 program years.
    [(4) A multiyear contract under this subsection may be 
initiated or continued for any fiscal year for which sufficient 
funds are available to pay the costs of such contract for that 
fiscal year, without regard to whether funds are available to 
pay the costs of such contract for any subsequent fiscal year. 
Such contract shall provide, however, that performance under 
the contract during the subsequent year or years of the 
contract is contingent upon the appropriation of funds and 
shall also provide for a cancellation payment to be made to the 
contractor if such appropriations are not made.]

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Subtitle C--Defense Acquisition and Support Workforce Flexibility

           *       *       *       *       *       *       *

SEC. 832. ELIMINATION OF ROLE OF OFFICE OF PERSONNEL MANAGEMENT.

    (a) Workforce Qualification Requirements and 
Examinations.--Section 1725 of [such title] title 10, United 
States Code, is repealed.

           *       *       *       *       *       *       *

SEC. 834. CONSOLIDATION OF CERTAIN EDUCATION AND TRAINING PROGRAM 
                    REQUIREMENTS.

    (a) Consolidation of Authority.--Section 1742 of [such 
title] title 10, United States Code, is amended to read as 
follows:

           *       *       *       *       *       *       *

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

           *       *       *       *       *       *       *

                       Subtitle D--Other Matters

SEC. 931. AUTHORITY FOR ASIA-PACIFIC CENTER FOR SECURITY STUDIES TO 
                    ACCEPT GIFTS AND DONATIONS.

    (a) Authorized Sources of Gifts and Donations.--Subsection 
(a) of section 2611 of title 10, United States Code, is 
amended--
            (1) in paragraph (1), by striking ``foreign gifts 
        [and donations] or donations'' and inserting ``gifts 
        and donations from sources described in paragraph 
        (2)'';

           *       *       *       *       *       *       *

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2004''.

TITLE XXI--ARMY

           *       *       *       *       *       *       *

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:
    
    

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                          Installation or location                   Amount
----------------------------------------------------------------------------------------------------------------
Alabama....................................  Redstone Arsenal.................                        $5,500,000
Alaska.....................................  Fort Richardson..................                        $2,500,000
                                             Fort Wainwright..................                      $138,800,000
Colorado...................................  Fort Carson......................                        $2,150,000
Georgia....................................  Fort Benning.....................                       $34,500,000
                                             Fort Gordon......................                        $4,350,000
                                             Fort Stewart/Hunter Army Air            [$113,500,000] $114,450,000
                                              Field...........................
Hawaii.....................................  Helemano Military Reservation....                        $1,400,000
                                             Schofield Barracks...............                      $128,100,000
Kansas.....................................  Fort Leavenworth.................                      $115,000,000
                                             Fort Riley.......................                       $40,000,000
Kentucky...................................  Fort Knox........................                       $13,500,000
Louisiana..................................  Fort Polk........................                       $72,000,000
Maryland...................................  Fort Meade.......................                        $9,600,000
Massachusetts..............................  Soldier Systems Center, Natick...                        $5,500,000
New Jersey.................................  Naval Air Engineering Center,                            $2,250,000
                                              Lakehurst.......................
                                             Picatinny Arsenal................                        $8,000,000
New York...................................  Fort Drum........................       [$130,700,000] $135,700,000
North Carolina.............................  Fort Bragg.......................                      $125,400,000
Oklahoma...................................  Fort Sill........................                        $5,500,000
Texas......................................  Fort Bliss.......................                        $5,400,000
                                             Fort Hood........................                       $49,800,000
Virginia...................................  Fort Belvoir.....................                        $7,000,000
                                             Fort Lee.........................                        $3,850,000
                                             Fort Myer........................                        $9,000,000
Washington.................................  Fort Lewis.......................                        $3,900,000
                                                                               ---------------------------------
                                                 Total........................   [$1,037,200,000] $1,043,150,000
----------------------------------------------------------------------------------------------------------------

    
    

           *       *       *       *       *       *       *

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) * * *

           *       *       *       *       *       *       *

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed the sum of the 
following:
            (1) * * *
            (2) [$32,000,000] $32,950,000 (the balance of the 
        amount authorized under section 2101(a) for 
        construction of a barracks, Fort Stewart/Hunter Army 
        Airfield, Georgia).

           *       *       *       *       *       *       *

            (4) [$43,000,000] $48,000,000 (the balance of the 
        amount authorized under section 2101(a) for 
        construction of a barracks complex, Wheeler Army 
        Airfield, Fort Drum, New York).

           *       *       *       *       *       *       *

TITLE XXII--NAVY

           *       *       *       *       *       *       *

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) * * *

           *       *       *       *       *       *       *

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed the sum of the 
following:
            (1) * * *
            (2) $25,690,000 (the balance of the amount 
        authorized under [section 2101(a)] section 2201(a) for 
        construction of a tertiary sewage treatment facility, 
        Marine Corp Base, Camp Pendleton, California).
            (3) $58,190,000 (the balance of the amount 
        authorized under [section 2101(a)] section 2201(a) for 
        construction of a battle station training facility, 
        Naval Training Center, Great Lakes, Illinois).
            (4) $96,980,000 (the balance of the amount 
        authorized under [section 2101(a)] section 2201(a) for 
        construction of a general purpose berthing pier, Naval 
        Weapons Station Earle, New Jersey).
            (5) $118,170,000 (the balance of the amount 
        authorized under [section 2101(a)] section 2201(a) for 
        construction of the Pier 11 replacement, Naval Station, 
        Norfolk, Virginia).
            (6) $28,750,000 (the balance of the amount 
        authorized under [section 2101(a)] section 2201(a) for 
        construction of outlying landing field facilities, 
        various locations in the continental United States).

           *       *       *       *       *       *       *

TITLE XXVIII--GENERAL PROVISIONS

           *       *       *       *       *       *       *

 Subtitle A--Military Construction Program and Military Family Housing 
Changes

           *       *       *       *       *       *       *

SEC. 2808. TEMPORARY, LIMITED AUTHORITY TO USE OPERATION AND 
                    MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS OUTSIDE 
                    THE UNITED STATES.

    (a) Temporary Authority.--During [fiscal year 2004] fiscal 
years 2004 and 2005, the Secretary of Defense may use this 
section as authority to obligate appropriated funds available 
for operation and maintenance to carry out a construction 
project outside the United States that the Secretary determines 
meets each of the following conditions:
            (1) * * *

           *       *       *       *       *       *       *

    (c) Limitation on Use of Authority.--(1) The total cost of 
the construction projects carried out under the authority of 
this section using, in whole or in part, appropriated funds 
available for operation and maintenance shall not exceed 
$200,000,000 [in fiscal year 2004] in a fiscal year.

           *       *       *       *       *       *       *

    (d) Quarterly Report.--Not later than 30 days after the end 
of each fiscal-year quarter of [fiscal year 2004] fiscal years 
2004 and 2005, the Secretary of Defense shall submit to the 
congressional committees specified in subsection (f) a report 
on the worldwide obligation and expenditure during that quarter 
of appropriated funds available for operation and maintenance 
for construction projects.

           *       *       *       *       *       *       *

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

           *       *       *       *       *       *       *

Subtitle B--Program Authorizations, Restrictions, and Limitations

           *       *       *       *       *       *       *

SEC. 3114. TECHNICAL BASE AND FACILITIES MAINTENANCE AND 
                    RECAPITALIZATION ACTIVITIES.

    (a) Deadline for Inclusion of Projects in Facilities and 
Infrastructure Recapitalization Program.--(1) The Administrator 
for Nuclear Security shall complete the selection of a base-
line of projects for inclusion in the Facilities and 
Infrastructure Recapitalization Program of the National Nuclear 
Security Administration not later than December 31, 2004.
    [(2) No project may be included in the Facilities and 
Infrastructure Recapitalization Program after December 31, 
2004, unless such project has been selected for inclusion in 
that program as of that date.]
            (2)(A) After December 31, 2004, a project may be 
        added to or removed from the Facilities and 
        Infrastructure Recapitalization Program only after the 
        Administrator submits to the congressional defense 
        committees a notice that the Administrator has 
        identified such project for addition or removal and has 
        approved such addition or removal as a modification to 
        the baseline for that program.
            (B) The Administrator may not obligate funds for 
        any project added under subparagraph (A) until a period 
        of 60 days has elapsed after the date on which such 
        committees receive the notice under subparagraph (A) 
        with respect to that project.
            (C) The authority of the Administrator to identify 
        and approve under subparagraph (A) may not be 
        delegated.

           *       *       *       *       *       *       *

                              ----------                              

                         TITLE 10--ARMED FORCES

                    Subtitle A--General Military Law

PART I--ORGANIZATION AND GENERAL MILITARY POWERS

           *       *       *       *       *       *       *

Chap.                                                               Sec.
      Definitions....................................................101
     * * * * * * *
      Miscellaneous Studies and Reports........................[481] 480
     * * * * * * *

                    PART III--TRAINING AND EDUCATION

      Training Generally............................................2001
     * * * * * * *
      Educational Assistance for Persons Enlisting for Active Duty.2141]
      Educational Assistance for Persons Enlisting for Active Duty.2141 
2151Professional Military Education...................................

           *       *       *       *       *       *       *

CHAPTER 1--DEFINITIONS

           *       *       *       *       *       *       *

Sec. 101. Definitions

    (a) * * *

           *       *       *       *       *       *       *

    (e) Facilities and Operations.--The following definitions 
relating to facilities and operations apply in this title:
            (1) * * *

           *       *       *       *       *       *       *

            (3) Operational range.--The term ``operational 
        range'' means a range that is under the jurisdiction, 
        custody, or control of the [Secretary of Defense] 
        Secretary of a military department and--
                    (A) * * *

           *       *       *       *       *       *       *

                    CHAPTER 2--DEPARTMENT OF DEFENSE

Sec.
111.    Executive department.
     * * * * * * *
113a.    Transmission of annual defense authorization request.
113b.    Response to congressional inquiries.

           *       *       *       *       *       *       *

Sec. 113b. Response to congressional inquiries

    Whenever the Secretary of Defense or any other official of 
the Department of Defense is requested by the chairman of the 
Committee on Armed Services of the Senate or the chairman of 
the Committee on Armed Services of the House of Representatives 
to respond to a question or inquiry submitted by the chairman 
or another member of that committee pursuant to a committee 
hearing or other activity, the Secretary (or other official) 
shall respond to the request, in writing, within 21 days of the 
date on which the request is transmitted to the Secretary (or 
other official).

           *       *       *       *       *       *       *

Sec. 115. Personnel strengths: requirement for annual authorization

    (a) Active-Duty and Selected Reserve End Strengths To Be 
Authorized by Law.--Congress shall authorize personnel strength 
levels for each fiscal year for each of the following:
            (1) The end strength for each of the armed forces 
        (other than the Coast Guard) for (A) active-duty 
        personnel unless on active duty pursuant to subsection 
        (b) who are to be paid from funds appropriated for 
        active-duty personnel, and (B) active-duty personnel 
        and full-time National Guard duty personnel who are to 
        be paid from funds appropriated for reserve personnel 
        unless on active duty or full-time National Guard duty 
        pursuant to subsection (b).
    (b) Certain Reserves on Active Duty To Be Authorized by 
Law.--(1) Congress shall annually authorize the maximum number 
of members of a reserve component permitted to be on active 
duty or full-time National Guard duty at any given time who are 
called or ordered to--
            (A) active duty under section 12301(d) of this 
        title for the purpose of providing operational support, 
        as prescribed in regulation issued by the Secretary of 
        Defense;
            (B) full-time National Guard duty under section 
        502(f)(2) of title 32 for the purpose of providing 
        operational support when authorized by the Secretary of 
        Defense;
            (C) active duty under section 12301(d) of this 
        title or full-time National Guard duty under section 
        502(f) of title 32 for the purpose of preparing for and 
        performing funeral honors functions for funerals of 
        veterans under section 1491 of this title;
            (D) active duty or retained on active duty under 
        sections 12301(g) of this title while in a captive 
        status; or
            (E) active duty or retained on active duty under 
        12301(h) or 12322 of this title for the purpose of 
        medical evaluation or treatment.
    (2) A member of a reserve component who exceeds either of 
the following limits shall be included in the strength 
authorized under subparagraph (A) or subparagraph (B), as 
appropriate, of subsection (a)(1):
            (A) A call or order to active duty or full-time 
        National Guard duty that specifies a period greater 
        than three years.
            (B) The cumulative periods of active duty and full-
        time National Guard duty performed by the member exceed 
        1095 days in the previous 1460 days.
    (3) In determining the period of active service under 
paragraph (2), the following periods of active service 
performed by a member shall not be included:
            (A) All periods of active duty performed by a 
        member who has not previously served in the Selected 
        Reserve of the Ready Reserve.
            (B) All periods of active duty or full-time 
        National Guard duty for which the member is exempt from 
        strength accounting under paragraphs (1) through (7) of 
        subsection (i).
    [(b)] (c) Limitation on Appropriations for Military 
Personnel.--No funds may be appropriated for any fiscal year to 
or for--
            (1) the use of active-duty personnel or full-time 
        National Guard duty personnel of any of the armed 
        forces (other than the Coast Guard) unless the end 
        strength for such personnel of that armed force for 
        that fiscal year has been authorized by law; [or]
            (2) the use of the Selected Reserve of any reserve 
        component of the armed forces unless the end strength 
        for the Selected Reserve of that component for that 
        fiscal year has been authorized by law[.]; or
            (3) the use of reserve component personnel to 
        perform active duty or full-time National Guard duty 
        under subsection (b) unless the strength for such 
        personnel for that reserve component for that fiscal 
        year has been authorized by law.
    [(c)] (d) Military Technician (Dual Status) End Strengths 
To Be Authorized by Law.--Congress shall authorize for each 
fiscal year the end strength for military technicians (dual 
status) for each reserve component of the Army and Air Force. 
Funds available to the Department of Defense for any fiscal 
year may not be used for the pay of a military technician (dual 
status) during that fiscal year unless the technician fills a 
position that is within the number of such positions authorized 
by law for that fiscal year for the reserve component of that 
technician. This subsection applies without regard to section 
129 of this title. In each budget submitted by the President to 
Congress under section 1105 of title 31, the end strength 
requested for military technicians (dual status) for each 
reserve component of the Army and Air Force shall be 
specifically set forth.
    [(d)] (e) End-of-Quarter Strength Levels.--(1) The 
Secretary of Defense shall prescribe and include in the budget 
justification documents submitted to Congress in support of the 
President's budget for the Department of Defense for any fiscal 
year the Secretary's proposed end-of-quarter strengths for each 
of the first three quarters of the fiscal year for which the 
budget is submitted, in addition to the Secretary's proposed 
fiscal-year end-strengths for that fiscal year. Such end-of-
quarter strengths shall be submitted for each category of 
personnel for which end strengths are required to be authorized 
by law under [subsection (a) or (c)] subsection (a) or (d). The 
Secretary shall ensure that resources are provided in the 
budget at a level sufficient to support the end-of-quarter and 
fiscal-year end-strengths as submitted.
    (2)(A) After annual end-strength levels required by 
[subsections (a) and (c)] subsections (a) and (d) are 
authorized by law for a fiscal year, the Secretary of Defense 
shall promptly prescribe end-of-quarter strength levels for the 
first three quarters of that fiscal year applicable to each 
such end-strength level. Such end-of-quarter strength levels 
shall be established for any fiscal year as levels to be 
achieved in meeting each of those annual end-strength levels 
authorized by law in accordance with subsection (a) (as such 
levels may be adjusted [pursuant to subsection (e)) and 
subsection (c)] pursuant to subsection (f)) and subsection (d).
    (B) At least annually, the Secretary of Defense shall 
establish for each of the armed forces (other than the Coast 
Guard) the maximum permissible variance of actual strength for 
an armed force at the end of any given quarter from the end-of-
quarter strength established pursuant to subparagraph (A). Such 
variance shall be such that it promotes the maintaining of the 
strength necessary to achieve the end-strength levels 
authorized in accordance with subsection (a) (as adjusted 
[pursuant to subsection (e)) and subsection (c)] pursuant to 
subsection (f)) and subsection (d).

           *       *       *       *       *       *       *

    [(e)] (f) Authority for Secretary of Defense Variances for 
Active-Duty and Selected Reserve [End] Strengths.--Upon 
determination by the Secretary of Defense that such action is 
in the national interest, the Secretary may--
            (1) * * *
            (2) increase the end strength authorized pursuant 
        to subsection (a)(1)(B) for a fiscal year for any of 
        the armed forces by a number equal to not more than 2 
        percent of that end strength; [and]
            (3) vary the end strength authorized pursuant to 
        subsection (a)(2) for a fiscal year for the Selected 
        Reserve of any of the reserve components by a number 
        equal to not more than 2 percent of that end 
        strength[.]; and
    (4) increase the maximum strength authorized pursuant to 
subsection (b)(1) for a fiscal year for certain reserves on 
active duty for any of the reserve components by a number equal 
to not more than 10 percent of that strength.
    [(f)] (g) Authority for Service Secretary Variances for 
Active-Duty End Strengths.--Upon determination by the Secretary 
of a military department that such action would enhance manning 
and readiness in essential units or in critical specialties or 
ratings, the Secretary may increase the end strength authorized 
pursuant to subsection (a)(1)(A) for a fiscal year for the 
armed force under the jurisdiction of that Secretary or, in the 
case of the Secretary of the Navy, for any of the armed forces 
under the jurisdiction of that Secretary. Any such increase for 
a fiscal year--
            (1) * * *
            (2) shall be counted as part of the increase for 
        that armed force for that fiscal year authorized under 
        [subsection (e)(1)] subsection (f)(1).
    [(g)] (h) Adjustment When Coast Guard is Operating as a 
Service in the Navy.--The authorized strength of the Navy under 
subsection (a)(1) is increased by the authorized strength of 
the Coast Guard during any period when the Coast Guard is 
operating as a service in the Navy.
    [(h) Certain Active-Duty Personnel Excluded From Counting 
for Active-Duty End Strengths.--In counting active-duty 
personnel for the purpose of the end-strengths authorized 
pursuant to subsection (a)(1), persons in the following 
categories shall be excluded:
            [(1) Members of the Ready Reserve ordered to active 
        duty under section 12302 of this title.
            [(2) Members of the Selected Reserve of the Ready 
        Reserve ordered to active duty under section 12304 of 
        this title.
            [(3) Members of the National Guard called into 
        Federal service under section 12406 of this title.
            [(4) Members of the militia called into Federal 
        service under chapter 15 of this title.
            [(5) Members of reserve components on active duty 
        for training.
            [(6) Members of reserve components on active duty 
        for 180 days or less to perform special work.
            [(7) Members on full-time National Guard duty for 
        180 days or less.
            [(8) Members of the Selected Reserve of the Ready 
        Reserve on active duty for more that 180 days to 
        support programs described in section 1203(b) of the 
        Cooperative Threat Reduction Act of 1993 (title XII of 
        Public Law 103-160; 22 U.S.C. 5952(b)).
            [(9) Members of reserve components (not described 
        in paragraph (8)) on active duty for more than 180 days 
        but less than 271 days to perform special work in 
        support of the combatant commands, except that--
                    [(A) general and flag officers may not be 
                excluded under this paragraph; and
                    [(B) the number of members of any of the 
                armed forces excluded under this paragraph may 
                not exceed the number equal to 0.2 percent of 
                the end strength authorized for active-duty 
                personnel of that armed force under subsection 
                (a)(1)(A).
            [(10) Members of reserve components on active duty 
        to prepare for and to perform funeral honors functions 
        for funerals of veterans in accordance with section 
        1491 of this title.
            [(11) Members on full-time National Guard duty to 
        prepare for and perform funeral honors functions for 
        funerals of veterans in accordance with section 1491 of 
        this title.]
    (i) Certain Personnel Excluded From Counting for Active-
Duty End Strengths.--In counting personnel for the purpose of 
the end strengths authorized pursuant to subsection (a)(1), 
persons in the following categories shall be excluded:
            (1) Members of a reserve component ordered to 
        active duty under section 12301(a) of this title.
            (2) Members of a reserve component in an active 
        status ordered to active duty under section 12301(b) of 
        this title.
            (3) Members of the Ready Reserve ordered to active 
        duty under section 12302 of this title.
            (4) Members of the Selected Reserve of the Ready 
        Reserve or members of the Individual Ready Reserve 
        mobilization category described in section 10144(b) of 
        this title ordered to active duty under section 12304 
        of this title.
            (5) Members of the National Guard called into 
        Federal service under section 12406 of this title.
            (6) Members of the militia called into Federal 
        service under chapter 15 of this title.
            (7) Members of reserve components on active duty 
        for training.
            (8) Members of the Selected Reserve of the Ready 
        Reserve on active duty to support programs described in 
        section 1203(b) of the Cooperative Threat Reduction Act 
        of 1993 (22 U.S.C. 5952(b)).
            (9) Members of the National Guard on active duty or 
        full-time National Guard duty for the purpose of 
        carrying out drug interdiction and counter-drug 
        activities under section 112 of title 32.
            (10) Members of a reserve component on active duty 
        under section 10(b)(2) of the Military Selective 
        Service Act (50 U.S.C. App. 460(b)(2)) for the 
        administration of the Selective Service System.
            (11) Members of the National Guard on full-time 
        National Guard duty for the purpose of providing 
        command, administrative, training, or support services 
        for the National Guard Challenge Program authorized by 
        section 509 of title 32.
    (i) Certain Full-Time National Guard Duty Personnel 
Excluded From Counting for Full-Time National Guard Duty End 
Strengths.--In counting full-time National Guard duty personnel 
for the purpose of end-strengths authorized pursuant to 
subsection (a)(1), persons involuntarily performing operational 
activities under chapter 9 of title 32 shall be excluded.

           *       *       *       *       *       *       *

CHAPTER 3--GENERAL POWERS AND FUNCTIONS

           *       *       *       *       *       *       *

Sec. 130a. Major Department of Defense headquarters activities 
                    personnel: limitation

    (a) Limitation.--[Effective October 1, 2002, the] The 
number of major headquarters activities personnel in the 
Department of Defense may not exceed 85 percent of the 
[baseline number.
    [(b) Phased Reduction.--The number of major headquarters 
activities personnel in the Department of Defense--
            [(1) as of October 1, 2000, may not exceed 95 
        percent of the baseline number; and
            [(2) as of October 1, 2001, may not exceed 90 
        percent of the baseline number.
    [(c) Baseline Number.--In this section, the term ``baseline 
number'' means the] number of major headquarters activities 
personnel in the Department of Defense as of October 1, 1999.
    [(e)] (b) Major Headquarters Activities Personnel.--In this 
section, the term ``major headquarters activities personnel'' 
means military and civilian personnel of the Department of 
Defense who are assigned to, or employed in, functions in major 
headquarters activities.
    [(d)] (c) Major Headquarters Activities.--(1) * * *

           *       *       *       *       *       *       *

    [(f)] (d) Limitation on Reassignment of Functions.--In 
carrying out reductions in the number of personnel assigned to, 
or employed in, major headquarters activities in order to 
comply with this section, the Secretary of Defense and the 
Secretaries of the military departments may not reassign 
functions in order to evade the requirements of this section.
    [(g) Flexibility.--(1) If during fiscal year 2001 or fiscal 
year 2002 the Secretary of Defense determines, and certifies to 
Congress, that the limitation under subsection (a), or a 
limitation under subsection (b), would adversely affect United 
States national security, the Secretary may take any of the 
following actions:
            [(A) Increase the percentage specified in 
        subsection (b)(1) by such amount as the Secretary 
        determines necessary or waive the limitation under that 
        subsection.
            [(B) Increase the percentage specified in 
        subsection (b)(2) by such amount as the Secretary 
        determines necessary, not to exceed a cumulative 
        increase of 7.5 percentage points.
            [(C) Increase the percentage specified in 
        subsection (a) by such amount as the Secretary 
        determines necessary, not to exceed a cumulative 
        increase of 7.5 percentage points.
    [(2) Any certification under paragraph (1) shall include 
notice of the specific waiver or increases made pursuant to the 
authority provided in that paragraph.]

           *       *       *       *       *       *       *

                    CHAPTER 5--JOINT CHIEFS OF STAFF

Sec.
151.    Joint Chiefs of Staff: composition; functions.
     * * * * * * *
156.    Assistants to the Chairman for National Guard members and for 
          Reserve matters.
     * * * * * * *

Sec. 156. Assistants to the Chairman for National Guard matters and for 
                    Reserve matters

    (a) Establishment of Positions.--The Secretary of Defense 
shall establish the following positions within the Joint Staff:
            (1) Assistant to the Chairman of the Joint Chiefs 
        of Staff for National Guard Matters.
            (2) Assistant to the Chairman of the Joint Chiefs 
        of Staff for Reserve Matters.
    (b) Selection.--(1) The Assistant to the Chairman of the 
Joint Chiefs of Staff for National Guard Matters shall be 
selected by the Chairman from officers of the Army National 
Guard of the United States or the Air Guard of the United 
States who--
            (A) are recommended for such selection by their 
        respective Governors or, in the case of the District of 
        Columbia, the commanding general of the District of 
        Columbia National Guard;
            (B) have had at least 10 years of federally 
        recognized commissioned service in the National Guard; 
        and
            (C) are in a grade above the grade of colonel.
    (2) The Assistant to the Chairman of the Joint Chiefs of 
Staff for Reserve Matters shall be selected by the Chairman 
from officers of the Army Reserve, the Naval Reserve, the 
Marine Corps Reserve, or the Air Force Reserve who--
                    (A) are recommended for such selection by 
                the Secretary of the military department 
                concerned;
                    (B) have had at least 10 years of 
                commissioned service in their reserve 
                component; and
                    (C) are in a grade above the grade of 
                colonel or, in the case of the Naval Reserve, 
                captain.
    (c) Term of Office.--Each Assistant to the Chairman under 
subsection (a) serves at the pleasure of the Chairman for a 
term of four years and may be continued in that assignment in 
the same manner for one additional term. However, in time of 
war there is no limit on the number of terms.
    (d) Grade.--Each Assistant to the Chairman, while so 
serving, holds the grade of major general or, in the case of 
the Naval Reserve, rear admiral. Each such officer shall be 
considered to be serving in a position external to that 
officer's Armed Force for purposes of section 721 of title 10, 
United States Code, as added by section 501(a).
    (e) Duties.--The Assistant to the Chairman for National 
Guard Matters is an adviser to the Chairman on matters relating 
to the National Guard and performs the duties prescribed for 
that position by the Chairman. The Assistant to the Chairman 
for Reserve Matters is an adviser to the Chairman on matters 
relating to the reserves and performs the duties prescribed for 
that position by the Chairman.
    (f) Other Reserve Component Representation on Joint 
Staff.--The Secretary of Defense, in consultation with the 
Chairman of the Joint Chiefs, shall develop appropriate policy 
guidance to ensure that, to the maximum extent practicable, the 
level of reserve component officer representation within the 
Joint Staff is commensurate with the significant role of the 
reserve components within the Total Force.

           *       *       *       *       *       *       *

CHAPTER 6--COMBATANT COMMANDS

           *       *       *       *       *       *       *

Sec. 168. Military-to-military contacts and comparable activities

    (a) * * *

           *       *       *       *       *       *       *

    [(f) Active Duty End Strengths.--(1) A member of a reserve 
component referred to in paragraph (2) shall not be counted for 
purposes of the following personnel strength limitations:
            [(A) The end strength for active-duty personnel 
        authorized pursuant to section 115(a)(1) of this title 
        for the fiscal year in which the member carries out the 
        activities referred to in paragraph (2).
            [(B) The authorized daily average for members in 
        pay grades E-8 and E-9 under section 517 of this title 
        for the calendar year in which the member carries out 
        such activities.
            [(C) The authorized strengths for commissioned 
        officers under section 523 of this title for the fiscal 
        year in which the member carries out such activities.
    [(2) A member of a reserve component referred to in 
paragraph (1) is any member on active duty under an order to 
active duty for 180 days or more who is engaged in activities 
authorized under this section.]
    (f) Active Duty End Strengths.--A member of a reserve 
component who is engaged in activities authorized under this 
section shall not be counted for purposes of the following 
personnel strength limitations:
            (1) The end strength for active-duty personnel 
        authorized pursuant to section 115(a)(1) of this title 
        for the fiscal year in which the member carries out the 
        activities referred to under this section.
            (2) The authorized daily average for members in pay 
        grades E-8 and E-9 under section 517 of this title for 
        the calendar year in which the member carries out such 
        activities.
            (3) The authorized strengths for commissioned 
        officers under section 523 of this title for the fiscal 
        year in which the member carries out such activities.

              CHAPTER 7--BOARDS, COUNCILS, AND COMMITTEES

Sec.
171.    Armed Forces Policy Council.
     * * * * * * *
186.    Defense Business System Management Committee.

Sec. 171. Armed Forces Policy Council

    (a) There is in the Department of Defense an Armed Forces 
Policy Council consisting of--
            (1) * * *

           *       *       *       *       *       *       *

            (14) The Commandant of the Coast Guard, for 
        discussion of matters pertaining to the Coast Guard.

           *       *       *       *       *       *       *

Sec. 179. Nuclear Weapons Council

    (a) Establishment; Membership.--There is a [Joint] Nuclear 
Weapons Council (hereinafter in this section referred to as the 
``Council'') [composed of three members as follows:] operated 
as a joint activity of the Department of Defense and the 
Department of Energy. The membership of the Council is 
comprised of the following officers of those departments:
            (1) * * *

           *       *       *       *       *       *       *

            (4) The Under Secretary of Defense for Policy.
    (b) Chairman; Meetings.--(1) * * *

           *       *       *       *       *       *       *

    (c) Staff and Administrative Services; Staff Director.--(1) 
* * *

           *       *       *       *       *       *       *

    (3)(A) * * *
    (B) An individual [appointed] designated under subparagraph 
(A) shall possess substantial technical and policy experience 
relevant to the management and oversight of nuclear weapons 
programs.
    (d) Responsibilities.--The Council shall be responsible for 
the following matters:
            (1) * * *

           *       *       *       *       *       *       *

    (e) [In addition to the responsibilities set forth in 
subsection (d), the Council shall also] Report on Difficulties 
Relating to Safety or Reliability.-- The Council shall submit 
to Congress a report on any analysis conducted by the Council 
with respect to difficulties at nuclear weapons laboratories or 
nuclear weapons production plants that have significant bearing 
on confidence in the safety or reliability of nuclear weapons 
or nuclear weapon types.
    (f) Annual Report.--Each fiscal year, at the same time the 
President submits the budget pursuant to section 1105 of title 
31, the Chairman of the Council, through the Secretary of 
Energy, shall submit to the [Committee on Armed Services and 
the Committee on Appropriations of the Senate and the Committee 
on Armed Services and the Committee on Appropriations of the 
House of Representatives] congressional defense committees a 
report, in classified form, on the following:
            (1) * * *

           *       *       *       *       *       *       *

Sec. 186. Defense business system management Committee

    (a) Establishment.--The Secretary of Defense shall 
establish a Defense Business Systems Management Committee, to 
be composed of the following persons:
            (1) The Deputy Secretary of Defense, who shall 
        serve as the chairman of the Committee.
            (2) The Under Secretary of Defense for Acquisition, 
        Logistics, and Technology.
            (3) The Under Secretary of Defense for Personnel 
        and Readiness.
            (4) The Under Secretary of Defense (Comptroller).
            (5) The Assistant Secretary of Defense for Networks 
        and Information Integration.
            (6) The Secretaries of the military departments and 
        the heads of the Defense Agencies.
            (7) Such additional personnel of the Department of 
        Defense (including personnel assigned to the Joint 
        Chiefs of Staff and combatant commands) as are 
        designated by the Secretary of Defense.
    (b) Duties.--(1) In addition to any other matters assigned 
to the Committee by the Secretary of Defense, the Committee 
shall--
            (A) recommend to the Secretary of Defense policies 
        and procedures necessary to effectively integrate the 
        requirements of section 2222 of this title into all 
        business activities and any transformation, reform, 
        reorganization, or process improvement initiatives 
        undertaken within the Department of Defense; and
            (B) review and approve any major update of the 
        defense business enterprise architecture developed 
        under subsection (b) of section 2222 of this title, 
        including evolving the architecture, and of defense 
        business systems modernization plans.
    (2) The Committee shall be responsible for coordinating 
defense business system modernization initiatives to maximize 
benefits and minimize costs for the Department of Defense and 
periodically report to the Secretary on the status of defense 
business system modernization efforts.
    (3) The Committee shall ensure that funds are obligated for 
defense business system modernization in a manner consistent 
with section 2222 of this title.
    (c) Definitions.--In this section, the terms ``defense 
business system'' and ``defense business system modernization'' 
have the meanings given such terms in section 2222 of this 
title.

           *       *       *       *       *       *       *

                   CHAPTER 9--DEFENSE BUDGET MATTERS

Sec.
221.    Future-years defense program: submission to Congress; 
          consistency in budgeting.
     * * * * * * *
232.    Operations and maintenance budget presentation.
232.    United States Joint Forces Command: amounts for research, 
          development, test, and evaluation to be derived only from 
          Defense-wide amounts.
     * * * * * * *

Sec. 232. Operations and maintenance budget presentation

    (a) In General.--In this section
            (1) The term ``O&M justification documents'' means 
        Department of Defense budget justification documents 
        with respect to accounts for operation and maintenance 
        submitted to the congressional defense committees in 
        support of the Department of Defense component of the 
        President's budget for any fiscal year.
            (2) The term ``President's budget'' means the 
        budget of the President submitted to Congress under 
        section 1105 of title 31 for any fiscal year.
            (3) The term ``current year'' means the fiscal year 
        during which the President's budget is submitted in any 
        year.
    (b) Identification of Baseline Amounts in O&M Justification 
Documents.--In any case in which the amount requested in the 
President's budget for a fiscal year for a Department of 
Defense operations and maintenance program, project, or 
activity is different from the amount appropriated for that 
program, project, or activity for the current year, the O&M 
justification documents supporting that budget shall identify 
that appropriated amount and the difference between that amount 
and the amount requested in the budget, stated as an amount and 
as a percentage.
    (c) Personal Service Contracts.--In the O&M justification 
documents for any fiscal year, costs programmed in the budget 
for that fiscal year for Department of Defense for personal 
service contracts, and the number of personal service 
contractors to be used by the Department of Defense during that 
fiscal year who will be compensated at an annual rate in excess 
of the annual rate of salary of the Vice President under 
section 104 of title 3, shall be separately set forth and 
identified.
    (d) Navy Subactivities for Ship Depot Maintenance and for 
Intermediate Ship Maintenance.--In the O&M justification 
documents for the Navy for any fiscal year, amounts requested 
for ship depot maintenance and amounts requested for 
intermediate ship maintenance shall be set forth as separate 
budget subactivity groups.
    (e) Civilian Average Salary Costs.--In the O&M 
justification documents for any fiscal year, average civilian 
salary costs, shown by subactivity group, shall be set forth as 
a component of the personnel summary exhibit.

Sec. 232. United States Joint Forces Command: amounts for research, 
                    development, test, and evaluation to be derived 
                    only from Defense-wide amounts

    (a) Requirement.--Amounts for research, development, test, 
and evaluation for the United States Joint Forces Command shall 
be derived only from amounts made available to the Department 
of Defense for Defense-wide research, development, test, and 
evaluation.
    (b) Separate Display in Budget.--Any amount in the budget 
submitted to Congress under section 1105 of title 31 for any 
fiscal year for research, development, test, and evaluation for 
the United States Joint Forces Command shall be set forth under 
the account of the Department of Defense for Defense-wide 
research, development, test, and evaluation.

           *       *       *       *       *       *       *

CHAPTER 21--DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS

           *       *       *       *       *       *       *

SUBCHAPTER II--INTELLIGENCE COMMERCIAL ACTIVITIES

           *       *       *       *       *       *       *

Sec. 431. Authority to engage in commercial activities as security for 
                    intelligence collection activities

    (a) Authority.--The Secretary of Defense, subject to the 
provisions of this subchapter, may authorize the conduct of 
those commercial activities necessary to provide security for 
authorized intelligence collection activities abroad undertaken 
by the Department of Defense. No commercial activity may be 
initiated pursuant to this subchapter after December 31, [2004] 
2006.

           *       *       *       *       *       *       *

Sec. 437. Congressional oversight

    (a) * * *

           *       *       *       *       *       *       *

    (c) Annual Report.--Not later each year than the date 
provided in section 507 of the National Security Act of 1947 
(50 U.S.C. 415b), the Secretary shall submit to the 
congressional intelligence committees (as defined in section 3 
of that Act (50 U.S.C. 401a)) a report on all commercial 
activities authorized under this subchapter that were 
undertaken during the previous fiscal year. Such report shall 
include (with respect to the fiscal year covered by the report) 
the following:
            (1) * * *

           *       *       *       *       *       *       *

             CHAPTER 23--MISCELLANEOUS STUDIES AND REPORTS

Sec.
480.    Reports to Congress: submission in electronic form.
     * * * * * * *
489.    Annual report on Department of Defense operation and financial 
          support for military museums.

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (d) [Other Definitions] Inapplicability to Coast Guard.--In 
this section, the term ``armed forces'' does not include the 
Coast Guard when it is not operating as a service in the 
Department of the Navy.

           *       *       *       *       *       *       *

Sec. 489. Annual report on Department of Defense operation and 
                    financial support for military museums

    (a) Report Required.--As part of the budget materials 
submitted to Congress in connection with the submission of the 
budget for a fiscal year pursuant to section 1105 of title 31, 
but in no case later than March 15 of each year, the Secretary 
of Defense shall submit a report identifying all museums that, 
during the preceding fiscal year--
            (1) were operated by the Department of Defense or a 
        military department; or
            (2) were otherwise supported using funds 
        appropriated to the Department of Defense.
    (b) Content of Report.--For each museum identified in a 
report under this section, the Secretary of Defense shall 
include in the report the following:
            (1) The purpose and functions of the museum and the 
        justification for the museum
            (2) A description of the facilities dedicated to 
        the museum.
            (3) An itemized listing of the funds appropriated 
        to the Department of Defense that were obligated to 
        support the museum during the fiscal year covered by 
        the report, as well as any other Federal funds, funds 
        from a nonappropriated fund instrumentality account of 
        the Department of Defense, and non-Federal funds 
        obligated to support the museum.
            (4) The number of civilian employees of the 
        Department of Defense who serve full-time or part-time 
        at the museum.
            (5) The number of members of the armed forces who 
        serve full-time or part-time at the museum.

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                        CHAPTER 31--ENLISTMENTS

Sec.
501.    Definition.
     * * * * * * *
511.    College First Program

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (c) Access to Secondary Schools.--(1)(A) * * *
    (B) A local educational agency may not release a student's 
name, address, and telephone listing under subparagraph (A)(ii) 
without the prior written consent of a parent of the student if 
the student, or a parent of the student, has submitted a 
request to the local educational agency that the student's 
information not be released for a purpose covered by that 
subparagraph without prior written parental consent. Each local 
[education] educational agency shall notify parents of the 
rights provided under the preceding sentence.

           *       *       *       *       *       *       *

Sec. 511. College First Program

    (a) Program Authority.--The Secretary of each military 
department may establish a program to increase the number of, 
and the level of the qualifications of, persons entering the 
armed forces as enlisted members by encouraging recruits to 
pursue higher education or vocational or technical training 
before entry into active service.
    (b) Delayed Entry With Allowance for Higher Education.--The 
Secretary concerned may--
            (1) exercise the authority under section 513 of 
        this title--
                    (A) to accept the enlistment of a person as 
                a Reserve for service in the Selected Reserve 
                or Individual Ready Reserve of a reserve 
                component, notwithstanding the scope of the 
                authority under subsection (a) of that section, 
                in the case of the Army National Guard of the 
                United States or Air National Guard of the 
                United States; and
                    (B) to authorize, notwithstanding the 
                period limitation in subsection (b) of that 
                section, a delay of the enlistment of any such 
                person in a regular component under that 
                subsection for the period during which the 
                person is enrolled in, and pursuing a program 
                of education at, an institution of higher 
                education, or a program of vocational or 
                technical training, on a full-time basis that 
                is to be completed within the maximum period of 
                delay determined for that person under 
                subsection (c); and
            (2) subject to paragraph (2) of subsection (d) and 
        except as provided in paragraph (3) of that subsection, 
        pay an allowance to a person accepted for enlistment 
        under paragraph (1)(A) for each month of the period 
        during which that person is enrolled in and pursuing a 
        program described in paragraph (1)(B).
    (c) Maximum Period of Delay.--The period of delay 
authorized a person under paragraph (1)(B) of subsection (b) 
may not exceed the 30-month period beginning on the date of the 
person's enlistment accepted under paragraph (1)(A) of such 
subsection.
    (d) Allowance.--(1) The monthly allowance paid under 
subsection (b)(2) shall be equal to the amount of the 
subsistence allowance provided for certain members of the 
Senior Reserve Officers' Training Corps with the corresponding 
number of years of participation under section 209(a) of title 
37. The Secretary concerned may supplement that stipend by an 
amount not to exceed $225 per month.
    (2) An allowance may not be paid to a person under this 
section for more than 24 months.
    (3) A member of the Selected Reserve of a reserve component 
may be paid an allowance under this section only for months 
during which the member performs satisfactorily as a member of 
a unit of the reserve component that trains as prescribed in 
section 10147(a)(1) of this title or section 502(a) of title 
32. Satisfactory performance shall be determined under 
regulations prescribed by the Secretary concerned.
    (4) An allowance under this section is in addition to any 
other pay or allowance to which a member of a reserve component 
is entitled by reason of participation in the Ready Reserve of 
that component.
    (e) Recoupment of Allowance.--(1) A person who, after 
receiving an allowance under this section, fails to complete 
the total period of service required of that person in 
connection with delayed entry authorized for the person under 
section 513 shall repay the United States the amount which 
bears the same ratio to the total amount of that allowance paid 
to the person as the unserved part of the total required period 
of service bears to the total period.
    (2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United 
States.
    (3) A discharge of a person in bankruptcy under title 11 
that is entered less than five years after the date on which 
the person was, or was to be, enlisted in the regular Army 
pursuant to the delayed entry authority under section 513 does 
not discharge that person from a debt arising under paragraph 
(1).
    (4) The Secretary concerned may waive, in whole or in part, 
a debt arising under paragraph (1) in any case for which the 
Secretary determines that recovery would be against equity and 
good conscience or would be contrary to the best interests of 
the United States.
    (f) Special Pay and Bonuses.--Upon enlisting in the regular 
component of the member's armed force, a person who initially 
enlisted as a Reserve under this section may, at the discretion 
of the Secretary concerned, be eligible for all regular special 
pays, bonuses, education benefits, and loan repayment programs.

           *       *       *       *       *       *       *

Sec. 517. Authorized  daily  average:  members  in  pay  grades  E-8 
                    and E-9

    (a) The authorized daily average number of enlisted members 
on active duty (other than for training) in an armed force in 
pay grades E-8 and E-9 in a fiscal year may not be more than 
2.5 percent and 1 percent, respectively, of the number of 
enlisted members of that armed force who are on active duty 
(other than for training) on the first day of that fiscal year. 
In computing the limitations prescribed in the preceding 
sentence, there shall be excluded enlisted members of an armed 
force on active duty [(other than for training) in connection 
with organizing, administering, recruiting, instructing, or 
training the reserve component of an armed force.] as 
authorized under section 115(a)(1)(B) or 115(b) of this title, 
or excluded from counting for active duty end strengths under 
section 115(i) of this title.

           *       *       *       *       *       *       *

         CHAPTER 32--OFFICER STRENGTH AND DISTRIBUTION IN GRADE

Sec.
521.    Authority to prescribe total strengths of officers on active 
          duty and officer strengths in various categories.
[522.    Authorized total strengths: regular commissioned officers on 
          active duty.]
     * * * * * * *
[525.    Distribution of commissioned officers on active duty in general 
          officer and flag officer grades.]
525.    Distribution in grade: general and flag officers on active duty.

           *       *       *       *       *       *       *

[Sec. 522. Authorized total strengths: regular commissioned officers on 
                    active duty

    [The authorized strengths of the Army, Navy, Air Force, and 
Marine Corps in regular officers (other than retired officers) 
in grades above chief warrant officer, (W-5), are as follows:

[Army.............................................................63,000
[Navy.............................................................55,000
[Air Force........................................................80,000
[Marine Corps....................................................17,000]

Sec. 523. Authorized strengths: commissioned officers on active duty in 
                    grades of major, lieutenant colonel, and colonel 
                    and Navy grades of lieutenant commander, commander, 
                    and captain

    (a)(1) * * *
    (b) Officers in the following categories shall be excluded 
in computing and determining authorized strengths under this 
section:
            [(1) Reserve officers--
                    [(A) on active duty for training;
                    [(B) on active duty under section 10211, 
                10302 through 10305, or 12402 of this title or 
                under section 708 of title 32;
                    [(C) on active duty under section 12301(d) 
                of this title in connection with organizing, 
                administering, recruiting, instructing, or 
                training the reserve components;
                    [(D) on active duty to pursue special work;
                    [(E) ordered to active duty under section 
                12304 of this title; or
                    [(F) on full-time National Guard duty.]
                    (A) on active duty as authorized under 
                section 115(a)(1)(B) or 115(b)(1) of this 
                title, or excluded from counting for active 
                duty end strengths under section 115(i) of this 
                title;
                    (B) on active duty under section 10211, 
                10302 through 10305, or 12402 of this title or 
                under section 708 of title 32; or
                    (C) on full-time National Guard duty.

           *       *       *       *       *       *       *

            (7) [Reserve or retired officers] Retired officers 
        on active duty under section 10(b)(2) of the Military 
        Selective Service Act (50 U.S.C. App. 460(b)(2)) for 
        the administration of the Selective Service System.

           *       *       *       *       *       *       *

[Sec. 525. Distribution of commissioned officers on active duty in 
                    general officer and flag officer grades]

Sec. 525. Distribution in grade: general and flag officers on active 
                    duty

    [(a) No appointment may be made in a grade above brigadier 
general in the Army, Air Force, or Marine Corps if that 
appointment would result in more than 50 percent of the general 
officers of that armed force on active duty being in grades 
above brigadier general. No appointment may be made in a grade 
above rear admiral (lower half) in the Navy if that appointment 
would result in more than 50 percent of the flag officers of 
the Navy on active duty being in grades above rear admiral 
(lower half).]
    [(b)(1) No appointment] (a) Limitation on Number of General 
and Flag Officers in Senior Grades.--(1) No appointment may be 
made in a grade above major general in the Army or Air Force if 
that appointment would result in more than 15.7 percent of the 
general officers of that armed force on active duty being in 
grades above major general. Of the 15.7 percent of general 
officers of the Army or Air Force on active duty who may be 
serving in grades above major general, not more than 25 percent 
may be serving in the grade of general.

           *       *       *       *       *       *       *

    [(3) An officer] (b) Special Rules and Exceptions.--(1) An 
officer while serving as Chairman or Vice Chairman of the Joint 
Chiefs of Staff or as Chief of Staff to the President, if 
serving in the grade of general or admiral, is in addition to 
the number that would otherwise be permitted for his armed 
force for that grade under [paragraph (1) or (2)] subsection 
(a).
    [(4)] (2)(A) An officer while serving in a position 
designated under subparagraph (B), if serving in the grade of 
lieutenant general or vice admiral, is in addition to the 
number that would otherwise be permitted for that officer's 
armed force for that grade under [paragraph (1) or (2)] 
subsection (a).

           *       *       *       *       *       *       *

    [(5)] (3)(A) An officer while serving in a position 
specified in section 604(b) of this title, if serving in the 
grade of general or admiral, is in addition to the number that 
would otherwise be permitted for that officer's armed force for 
officers serving on active duty in grades above major general 
or rear admiral, as the case may be, [under the first sentence 
of paragraph (1) or (2), as applicable] under subsection (a). 
Any increase by reason of the preceding sentence in the number 
of officers of an armed force serving on active duty in grades 
above major general or rear admiral may only be realized by an 
increase in the number of lieutenant generals or vice admirals, 
as the case may be, serving on active duty, and any such 
increase may not be construed as authorizing an increase in the 
limitation on the total number of general or flag officers for 
that armed force under section 526(a) of this title or in the 
number of general and flag officers that may be designated 
under section 526(b) of this title.

           *       *       *       *       *       *       *

    [(6)] (4) An officer while serving as Chief of the National 
Guard Bureau is in addition to the number that would otherwise 
be permitted for that officer's armed force for officers 
serving on active duty in grades above major general under 
[paragraph (1)] subsection (a)(1).
    [(7)] (5) An officer of the Army while serving as 
Superintendent of the United States Military Academy, if 
serving in the grade of lieutenant general, is in addition to 
the number that would otherwise be permitted for the Army for 
officers serving on active duty in grades above major general 
under [paragraph (1)] subsection (a)(1). An officer of the Navy 
or Marine Corps while serving as Superintendent of the United 
States Naval Academy, if serving in the grade of vice admiral 
or lieutenant general, is in addition to the number that would 
otherwise be permitted for the Navy or Marine Corps, 
respectively, for officers serving on active duty in grades 
above major general or rear admiral under [paragraph (1) or 
(2)] subsection (a)(2). An officer while serving as 
Superintendent of the United States Air Force Academy, if 
serving in the grade of lieutenant general, is in addition to 
the number that would otherwise be permitted for the Air Force 
for officers serving on active duty in grades above major 
general under [paragraph (1)] subsection (a)(1).
    [(8)] (6) An officer while serving in a position designated 
by the Secretary of Defense as Senior Military Assistant to the 
Secretary of Defense, if serving in the grade of lieutenant 
general or vice admiral, is in addition to the number that 
otherwise would be permitted for that officer's armed force for 
that grade under [paragraph (1) or (2)] subsection (a). Only 
one officer may be designated as Senior Military Assistant to 
the Secretary of Defense for purposes of this paragraph.
    [(c)(1)] (c) Reallocation Authority.--(1) Subject to 
paragraph (3), the President--
            (A) may make appointments in the Army, Air Force, 
        and Marine Corps in the grade of lieutenant general and 
        in the Army and Air Force in the grade of general in 
        excees of the applicable numbers determined under 
        [subsection (b)(1)] subsection (a)(1), and may make 
        appointments in the Marine Corps in the grade of 
        general in addition to the Commandant and Assistant 
        Commandant, if each such appointment is made in 
        conjunction with an offsetting reduction under 
        paragraph (2); and
            (B) may make appointments in the Navy in the grades 
        of vice admiral and admiral in excess of the applicable 
        numbers determined under [subsection (b)(2)] subsection 
        (a)(2) if each such appointment is made in conjunction 
        with an offsetting reduction under paragraph (2).

           *       *       *       *       *       *       *

    (3)(A) The number of officers that may be serving on active 
duty in the grades of lieutenant general and vice admiral by 
reason of appointments made under the authority of paragraph 
(1) may not exceed the number equal to 10 percent of the total 
number of officers that may be serving on active duty in those 
grades in the Army, Navy, Air Force, and Marine Corps under 
[subsection (b)] subsections (a) and (b).

           *       *       *       *       *       *       *

    (d) Special Rule for Officers Formerly on Joint Chiefs of 
Staff.--An officer continuing to hold the grade of general or 
admiral under section 601(b)(4) of this title after relief from 
the position of Chairman of the Joint Chiefs of Staff, Chief of 
Staff of the Army, Chief of Naval Operations, Chief of Staff of 
the Air Force, or Commandant of the Marine Corps shall not be 
counted for purposes of this section.

           *       *       *       *       *       *       *

 CHAPTER 33--ORIGINAL APPOINTMENTS OF REGULAR OFFICERS IN GRADES ABOVE 
WARRANT OFFICER GRADES

           *       *       *       *       *       *       *

Sec. 531. Original appointments of commissioned officers

    [(a) Original appointments in the grades of second 
lieutenant through colonel in the Regular Army, Regular Air 
Force, and Regular Marine Corps and in the grades of ensign 
through captain in the Regular Navy shall be made by the 
President, by and with the advice and consent of the Senate.]
    (a)(1) Original appointments in the grades of second 
lieutenant, first lieutenant, and captain in the Regular Army, 
Regular Air Force, and Regular Marine Corps and in the grades 
of ensign, lieutenant (junior grade), and lieutenant in the 
Regular Navy shall be made by the President alone.
    (2) Original appointments in the grades of major, 
lieutenant colonel, and colonel in the Regular Army, Regular 
Air Force, and Regular Marine Corps and in the grades of 
lieutenant commander, commander, and captain in the Regular 
Navy shall be made by the President, by and with the advice and 
consent of the Senate.

           *       *       *       *       *       *       *

Sec. 532. Qualifications for original appointment as a commissioned 
                    officer

    (a) * * *

           *       *       *       *       *       *       *

    [(e) After September 30, 1996, no person may receive an 
original appointment as a commissioned officer in the Regular 
Army, Regular Navy, Regular Air Force, or Regular Marine Corps 
until that person has completed one year of service on active 
duty as a commissioned officer (other than a warrant officer) 
of a reserve component.]
    (f) The Secretary of Defense may waive the requirement of 
paragraph (1) of subsection (a) with respect to a person who 
has been lawfully admitted to the United States for permanent 
residence when the Secretary determines that the national 
security so requires, but only for an original appointment in a 
grade below the grade of major or lieutenant commander.

           *       *       *       *       *       *       *

  CHAPTER 33A--APPOINTMENT, PROMOTION, AND INVOLUNTARY SEPARATION AND 
RETIREMENT FOR MEMBERS ON THE WARRANT OFFICER ACTIVE-DUTY LIST

           *       *       *       *       *       *       *

Sec. 582. Warrant officer active-duty list: exclusions

    Warrant officers in the following categories are not 
subject to this chapter:
            [(1) Reserve warrant officers--
                    [(A) on active duty for training;
                    [(B) on active duty under section 12301(d) 
                of this title in connection with organizing, 
                administering, recruiting, instructing, or 
                training the reserve components;
                    [(C) on active duty to pursue special work;
                    [(D) ordered to active duty under section 
                12304 of this title; or
                    [(E) on full-time National Guard duty.]
            (1) Reserve warrant officers--
                    (A) on active duty as authorized under 
                section 115(a)(1)(B) or 115(b)(1) of this 
                title, or excluded from counting for active 
                duty end strengths under section 115(i) of this 
                title; or
                    (B) on full-time National Guard duty.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                       SUBCHAPTER II--PROMOTIONS

Sec.
619.    Eligibility for consideration for promotion: time-in-grade and 
          other requirements.
     * * * * * * *
619b.    Eligibility for consideration for promotion: joint professional 
          military education required before promotion to colonel or 
          Navy captain; exceptions.

           *       *       *       *       *       *       *

Sec. 619. Eligibility for consideration for promotion: time-in-grade 
                    and other requirements

    (a) * * *

           *       *       *       *       *       *       *

    (d) Certain Officers Not To Be Considered.--A selection 
board convened under section 611(a) of this title may not 
consider for promotion to the next higher grade any of the 
following officers:
            (1) * * *

           *       *       *       *       *       *       *

            (5) An officer of the Army, Air Force, or Marine 
        Corps in the grade of captain, or of the Navy in the 
        grade of lieutenant, who is not a citizen of the United 
        States.

Sec. 619a. Eligibility for consideration for promotion: joint duty 
                    assignment required before promotion to general or 
                    flag grade; exceptions

    (a) General Rule.--An officer on the active-duty list of 
the Army, Navy, Air Force, or Marine Corps may not be appointed 
to the grade of brigadier general or rear admiral (lower half) 
unless--
            (1) * * *
            (2) for appointments after September 30, [2007] 
        2008, the officer has been selected for the joint 
        specialty in accordance with section 661 of this title.
    (b) Exceptions.--Subject to subsection (c), the Secretary 
of Defense may waive paragraph (1) or paragraph (2) of 
subsection (a), or both paragraphs (1) and (2) of subsection 
(a), in the following circumstances:
            (1) * * *

           *       *       *       *       *       *       *

            (4) In the case of an officer selected by a 
        promotion board for appointment to the grade of 
        brigadier general or rear admiral (lower half) while 
        serving in a joint duty assignment [if--
                    [(A) at least 180 days of that joint duty 
                assignment have been completed on the date of 
                the convening of that selection board; and
                    [(B) the officer's] if the officer's total 
                consecutive service in joint duty assignments 
                within that immediate organization is not less 
                than two years.

           *       *       *       *       *       *       *

Sec. 619b. Eligibility for consideration for promotion: joint 
                    professional military education required before 
                    promotion to colonel or Navy captain; exceptions

    (a) General Rule.--After September 30, 2007, an officer on 
the active-duty list of the Army, Air Force, or Marine Corps 
may not be appointed to the grade of colonel, and an officer on 
the active-duty list of the Navy may not be appointed to the 
grade of captain, unless the officer has successfully completed 
a program of instruction approved by the Secretary as 
qualifying for credit as the Joint Professional Military 
Education Phase I or Phase II program of instruction.
    (b) Exceptions.--Subject to subsection (c), the Secretary 
of Defense may waive subsection (a) in the following 
circumstances:
            (1) When necessary for the good of the service.
            (2) In the case of an officer whose proposed 
        selection for promotion is based primarily upon 
        scientific and technical qualifications for which joint 
        requirements do not exist.
            (3) In the case of--
                    (A) a medical officer, dental officer, 
                veterinary officer, medical service officer, 
                nurse, or biomedical science officer;
                    (B) a chaplain; or
                    (C) a judge advocate.
    (c) Waiver To Be Individual.--A waiver may be granted under 
subsection (b) only on a case-by-case basis in the case of an 
individual officer.
    (d) Special Rule for Good-of-the-Service Waiver.--In the 
case of a waiver under subsection (b)(1), the Secretary shall 
provide that the first duty assignment as a colonel or Navy 
captain of the officer for whom the waiver is granted shall be 
to a program of joint professional military education.
    (e) Limitation on Delegation of Waiver Authority.--The 
authority of the Secretary of Defense to grant a waiver under 
subsection (b) (other than under paragraph (1) of that 
subsection) may be delegated only to the Deputy Secretary of 
Defense, an Under Secretary of Defense, or an Assistant 
Secretary of Defense.
    (f) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section. The regulations shall 
specifically identify for purposes of subsection (b)(2) those 
categories of officers for which selection for promotion to 
colonel or, in the case of the Navy, captain is based primarily 
upon scientific and technical qualifications for which joint 
requirements do not exist.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) If a health professions officer described in 
paragraph [(2)] (3) is subject to discharge under subsection 
(a)(1) and, as of the date on which the officer is to be 
discharged [under that paragraph] under that subsection, the 
officer has not completed a period of active duty service 
obligation that the officer incurred under section 2005, 2114, 
2123, or 2603 of this title, the officer shall be retained on 
active duty until completion of such active duty service 
obligation, and then be discharged under that subsection, 
unless sooner retired or discharged under another provision of 
law.

           *       *       *       *       *       *       *

SUBCHAPTER V--ADDITIONAL PROVISIONS RELATING TO PROMOTION, SEPARATION, 
AND RETIREMENT

           *       *       *       *       *       *       *

Sec. 641. Applicability of chapter

    Officers in the following categories are not subject to 
this chapter (other than section 640 and, in the case of 
warrant officers, section 628):
            [(1) Reserve officers--
                    [(A) on active duty for training;
                    [(B) on active duty under section 3038, 
                5143, 5144, 8038, 10211, 10301 through 10305, 
                10502, 10505, 10506(a), 10506(b), 10507, or 
                12402 of this title or section 708 of title 32;
                    [(C) on active duty under section 12301(d) 
                of this title in connection with organizing, 
                administering, recruiting, instructing, or 
                training the reserve components;
                    [(D) on active duty under section 12301(d) 
                of this title, other than as provided under 
                subparagraph (C), if the call or order to 
                active duty, under regulations prescribed by 
                the Secretary concerned, specifies a period of 
                three years or less and continued placement on 
                the reserve active-status list;
                    [(E) on active duty to pursue special work;
                    [(F) ordered to active duty under section 
                12304 of this title;
                    [(G) on active duty under section 10(b)(2) 
                of the Military Selective Service Act (50 
                U.S.C. App. 460(b)(2)) for the administration 
                of the Selective Service System; or
                    [(H) on full-time National Guard duty.]
            (1) Reserve officers--
                    (A) on active duty authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or 
                excluded from counting for active duty end 
                strengths under section 115(i) of this title;
                    (B) on active duty under section 3038, 
                5143, 5144, 8038, 10211, 10301 through 10305, 
                10502, 10505, 10506(a), 10506(b), 10507, or 
                12402 of this title or section 708 of title 32; 
                or
                    (C) on full-time National Guard duty.

                  CHAPTER 38--JOINT OFFICER MANAGEMENT

Sec.
661.    Management policies for joint specialty officers.
[662.    Promotion policy objectives for joint officers.
[663.    Education.]
662.    Promotion policy objectives for joint officers on the active-
          duty list.
633.    Joint duty assignments after completion of joint professional 
          military education.

Sec. 661. Management policies for joint specialty officers

    (a) Establishment.--The Secretary of Defense shall 
establish policies, procedures, and practices for the effective 
management of officers of the Army, Navy, Air Force, and Marine 
Corps [on the active-duty list] who are particularly trained 
in, and oriented toward, joint matters (as defined in section 
668 of this title). Such officers shall be identified or 
designated (in addition to their principal military 
occupational specialty) in such manner as the Secretary of 
Defense directs. For purposes of this chapter, officers to be 
managed by such policies, procedures, and practices are 
referred to as having, or having been nominated for, the 
``joint specialty''.
    (b) Numbers and Selection.--(1) * * *
    (2) Officers shall be selected for the joint specialty by 
the Secretary of Defense with the advice of the Chairman of the 
Joint Chiefs of Staff. Each officer on the active-duty list on 
December 28, 2001, who has not before that date been nominated 
for the joint specialty by the Secretary of a military 
department, [and] each officer who is placed on the active-duty 
list after such date,, and each reserve component officer in an 
active status who is not on the active-duty list, who meets the 
requirements of subsection (c) shall automatically be 
considered to have been nominated for the joint specialty. From 
among those officers considered to be nominated for the joint 
specialty, the Secretary may select for the joint specialty 
only officers--
            (A) * * *

           *       *       *       *       *       *       *

[Sec. 662. Promotion policy objectives for joint officers]

Sec. 662. Promotion policy objectives for joint officers on the active-
                    duty list

    (a) Qualifications.--The Secretary of Defense shall ensure 
that the qualifications of officers on the active-duty list 
assigned to joint duty assignments are such that--
            (1) * * *

           *       *       *       *       *       *       *

    (b) Annual Report.--Not later than January 1 of each year, 
the Secretary of Defense shall submit to Congress a report on 
the promotion rates during the preceding fiscal year of 
officers on the active-duty list who are serving in, or have 
served in, joint duty assignments, especially with respect to 
the record of officer selection boards in meeting the 
objectives of paragraphs (1), (2), and (3) of subsection (a). 
If such promotion rates fail to meet such objectives for any 
fiscal year, the Secretary shall include in the report for that 
fiscal year information on such failure and on what action the 
Secretary has taken or plans to take to prevent further 
failures.

           *       *       *       *       *       *       *

[Sec. 663. Education

    [(a) Capstone Course for New General and Flag Officers.--
(1) Each officer selected for promotion to the grade of 
brigadier general or, in the case of the Navy, rear admiral 
(lower half) shall be required, after such selection, to attend 
a military education course designed specifically to prepare 
new general and flag officers to work with the other armed 
forces.
    [(2) Subject to paragraph (3), the Secretary of Defense may 
waive paragraph (1)--
            [(A) in the case of an officer whose immediately 
        previous assignment was in a joint duty assignment and 
        who is thoroughly familiar with joint matters;
            [(B) when necessary for the good of the service;
            [(C) in the case of an officer whose proposed 
        selection for promotion is based primarily upon 
        scientific and technical qualifications for which joint 
        requirements do not exist (as determined under 
        regulations prescribed under section 619(e)(4) of this 
        title); and
            [(D) in the case of a medical officer, dental 
        officer, veterinary officer, medical service officer, 
        nurse, biomedical science officer, or chaplain.
    [(3) The authority of the Secretary of Defense to grant a 
waiver under paragraph (2) may only be delegated to the Deputy 
Secretary of Defense, an Under Secretary of Defense, or an 
Assistant Secretary of Defense. Such a waiver may be granted 
only on a case-by-case basis in the case of an individual 
officer.]

Sec. 633. Joint duty assignments after completion of joint professional 
                    military education

    [(d) Post-Education Joint Duty Assignments.--(1) The] (a) 
Joint Specialty Officers.--The Secretary of Defense shall 
ensure that each officer with the joint specialty who graduates 
from a joint professional military education school shall be 
assigned to a joint duty assignment for that officer's next 
duty assignment after such graduation (unless the officer 
receives a waiver of that requirement by the Secretary in an 
individual case).
    [(2)(A) The Secretary] (b) Other Officers.--(1) The 
Secretary of Defense shall ensure that a high proportion (which 
shall be greater than 50 percent) of the officers graduating 
from a joint professional military education school who do not 
have the joint specialty shall receive assignments to a joint 
duty assignment as their next duty assignment after such 
graduation or, to the extent authorized [in subparagraph (B)] 
in paragraph (2), as their second duty assignment after such 
graduation.
    [(B) The Secretary] (2) The Secretary may, if the Secretary 
determines that it is necessary to do so for the efficient 
management of officer personnel, establish procedures to allow 
up to one-half of the officers subject to the joint duty 
assignment requirement in subparagraph (A) to be assigned to a 
joint duty assignment as their second (rather than first) 
assignment after such graduation from a joint professional 
military education school.
    [(e) Duration of Principal Course of Instruction at Joint 
Forces Staff College.--(1) The duration of the principal course 
of instruction offered at the Joint Forces Staff College may 
not be less than three months.
    [(2) In this subsection, the term ``principal course of 
instruction'' means any course of instruction offered at the 
Joint Forces Staff College as Phase II joint professional 
military education.]

           *       *       *       *       *       *       *

Sec. 667. Annual report to Congress

    The Secretary of Defense shall include in the annual report 
of the Secretary to Congress under section 113(c) of this 
title, for the period covered by the report, the following 
information (which shall be shown for the Department of Defense 
as a whole and separately for the Army, Navy, Air Force, and 
Marine Corps):
            (1) * * *

           *       *       *       *       *       *       *

            (18) The implementation of authority under section 
        661 of this title to certify reserve component officers 
        as joint specialty officers, together with the number 
        of reserve component officers who were so certified 
        during the reporting period.
            [(18)] (19) Such other information and comparative 
        data as the Secretary of Defense considers appropriate 
        to demonstrate the performance of the Department of 
        Defense and the performance of each military department 
        in carrying out this chapter.

Sec. 668. Definitions

    (a) * * *

           *       *       *       *       *       *       *

    (c) Clarification of ``Tour of Duty''.--For purposes of 
this chapter, a tour of duty in which an officer served in more 
than one joint duty assignment [within the same organization] 
without a break between such assignments shall be considered to 
be a single tour of duty in a joint duty assignment.

           *       *       *       *       *       *       *

CHAPTER 39--ACTIVE DUTY

           *       *       *       *       *       *       *

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

    (a) * * *
    (b) Unless otherwise provided by law, the number of members 
of the armed forces (other than the Coast Guard) on active duty 
at the end of any fiscal year shall be not less than the 
following:
            (1) * * *
            (2) For the Navy, [373,800] 365,900.

           *       *       *       *       *       *       *

            (4) For the Air Force, [359,300] 359,700.

           *       *       *       *       *       *       *

CHAPTER 40--LEAVE

           *       *       *       *       *       *       *

Sec. 704. Use of leave; regulations

    (a) * * *

           *       *       *       *       *       *       *

    (c) Facilitating Granting of Leave for Attendance at 
Hearings.--
            (1) Regulations.--The Secretary concerned shall 
        prescribe regulations to facilitate the granting of 
        leave to a member of the armed forces under the 
        jurisdiction of that Secretary in a case in which--
                    (A) the leave is needed for the member to 
                attend a hearing described in paragraph (2);
                    (B) the member is not serving in or with a 
                unit deployed in a contingency operation; and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not 
                otherwise require that such leave not be 
                granted.
            (2) Covered hearings.--Paragraph (1) applies to a 
        hearing that is conducted by a court or pursuant to an 
        administrative process established under State law, in 
        connection with a civil action--
                    (A) to determine whether a member of the 
                armed forces is a natural parent of a child; or
                    (B) to determine an obligation of a member 
                of the armed forces to provide child support.
            (3) Definitions.--In this subsection:
                    (A) The term ``court'' has the meaning 
                given that term in section 1408(a) of this 
                title.
                    (B) The term ``child support'' has the 
                meaning given that term in section 459(i) of 
                the Social Security Act (42 U.S.C. 659(i)).

           *       *       *       *       *       *       *

Sec. 708. Educational leave of absence

    (a) Under such regulations as the Secretary of Defense may 
prescribe after consultation with the Secretary of Homeland 
Security and subject to subsection (b), the Secretary concerned 
may grant to any eligible member (as defined in subsection (e)) 
a leave of absence for a period of not to exceed [two] three 
years for the purposes of permitting the member to pursue a 
program of education.

           *       *       *       *       *       *       *

          CHAPTER 49--MISCELLANEOUS PROHIBITIONS AND PENALTIES

Sec.
971.    Service credit: officers may not count service performed while 
          serving as cadet or midshipman.
     * * * * * * *
[977.    Operation of commissary stores: assignment of active duty 
          members generally prohibited.]

           *       *       *       *       *       *       *

Sec. 972. Members: effect of time lost

    (a) * * *

           *       *       *       *       *       *       *

            (3) is confined by military or civilian authorities 
        for more than one day in connection with a trial, 
        whether before, during, or after the trial, unless such 
        confinement is excused as unavoidable; or

           *       *       *       *       *       *       *

    (b) Officers Not Allowed Service Credit for Time Lost.--In 
the case of an officer of an armed force who after February 10, 
1996--
            (1) * * *

           *       *       *       *       *       *       *

            (3) is confined by military or civilian authorities 
        for more than one day in connection with a trial, 
        whether before, during, or after the trial, unless such 
        confinement is excused as unavoidable; or

           *       *       *       *       *       *       *

[Sec. 977. Operation of commissary stores: assignment of active duty 
                    members generally prohibited

    [(a) General Rule.--A member of the armed forces on active 
duty may not be assigned to the operation of a commissary 
store.
    [(b) Exception for DCA Director.--The Secretary of Defense 
may assign an officer on the active-duty list to serve as the 
Director of the Defense Commissary Agency.
    [(c) Exception for Certain Additional Members.--Not more 
than 18 members (in addition to the officer referred to in 
subsection (b)) of the armed forces on active duty may be 
assigned to the Defense Commissary Agency. Members who may be 
assigned under this subsection to regional headquarters of the 
agency shall be limited to enlisted members assigned to duty as 
advisors in the regional headquarters responsible for overseas 
commissaries and to veterinary specialists.
    [(d) Exception for Certain Navy Personnel.--(1) The 
Secretary of the Navy may assign to the Defense Commissary 
Agency a member of the Navy on active duty whose assignment 
afloat is part of the operation of a ship's food service or a 
ship's store. Any such assignment shall be on a nonreimbursable 
basis.
    [(2) The number of such members assigned to the Defense 
Commissary Agency during any period may not exceed 400.]

           *       *       *       *       *       *       *

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

    (a) Denial of Funds for Preventing ROTC Access to Campus.--
(1) No funds described in subsection (d)(1) may be provided by 
contract or by grant [(including a grant of funds to be 
available for student aid)] to an institution of higher 
education (including any subelement of such institution) if the 
Secretary of Defense determines that that institution (or any 
subelement of that institution) has a policy or practice 
(regardless of when implemented) that either prohibits, or in 
effect [prevents--] prevents, either (or both) of the 
following:
            [(1) the] (A) The Secretary of a military 
        department from maintaining, establishing, or operating 
        a unit of the Senior Reserve Officer Training Corps (in 
        accordance with section 654 of this title and other 
        applicable Federal laws) at that institution (or any 
        subelement of that institution)[; or].
            [(2) a] (B) A student at that institution (or any 
        subelement of that institution) from enrolling in a 
        unit of the Senior Reserve Officer Training Corps at 
        another institution of higher education.
    (2)(A) Not later than 180 days after the date of the 
enactment of the National Defense Authorization Act for Fiscal 
Year 2005 and annually thereafter, the Secretary of Defense 
shall request from each institution of higher education that 
has students participating in a Senior Reserve Officer Training 
Corps program during the then-current academic year of that 
institution a certification that such institution, during the 
next academic year of the institution, will--
            (i) permit the Secretary of each military 
        department to maintain a unit of the Senior Officer 
        Training Corps (in accordance with subsection (a)) at 
        that institution (or any subelement of that 
        institution), should such Secretary elect to maintain 
        such a unit; and
            (ii) if the Secretary of the military department 
        concerned elects not to establish or maintain a unit of 
        the Senior Reserve Officer Training Corps at that 
        institution, permit a student of that institution (or 
        any subelement of that institution) to enroll in a unit 
        of the Senior Reserve Officer Training Corps at another 
        institution of higher education.
    (B) Any certification under subparagraph (A) shall be made 
by the president of the institution (or equivalent highest 
ranking administrative official) and shall be submitted to the 
Secretary of Defense no later than 90 days after receipt of the 
request from the Secretary.
    (C) In the case of any institution from which a 
certification is requested under subparagraph (A), if the 
Secretary of Defense does not receive a certification in 
accordance with subparagraph (B), or if the certification does 
not state that the university will comply with both clauses (i) 
and (ii) of subparagraph (A) during its next academic year, the 
Secretary shall make a determination under paragraph (1) as to 
whether the institution has a policy or practice described in 
that paragraph.
    (b) Denial of Funds for Preventing Military Recruiting on 
Campus.--No funds described in [subsection (d)(2)] subsection 
(d)(1) may be provided by contract or by grant [(including a 
grant of funds to be available for student aid)] to an 
institution of higher education (including any subelement of 
such institution) if the Secretary of Defense determines that 
that institution (or any subelement of that institution) has a 
policy or practice (regardless of when implemented) that either 
prohibits, or in effect prevents--
            (1) the Secretary of a military department or 
        Secretary of Homeland Security from gaining [entry to 
        campuses] access to campuses, or access to students 
        (who are 17 years of age or older) on campuses, for 
        purposes of military recruiting in a manner that is at 
        least equal in quality and scope to the access to 
        campuses and to students that is provided to any other 
        employer; or

           *       *       *       *       *       *       *

    (d) Covered Funds.--(1) [The limitation established in 
subsection (a) applies] Except as provided in paragraph (2), 
the limitations established in subsections (a) and (b) apply to 
the following:
            (A) * * *
            (B) Any funds made available for any department or 
        agency for which regular appropriations are made in a 
        Departments of Labor, Health and Human Services, and 
        Education, and Related Agencies Appropriations Act.
            (C) Any funds made available for the Department of 
        Homeland Security.
            (D) Any funds made available for the National 
        Nuclear Security Administration of the Department of 
        Energy.
            (E) Any funds made available for the Department of 
        Transportation.
            (F) Any funds made available for the Central 
        Intelligence Agency.
    [(2) The limitation established in subsection (b) applies 
to the following:
            [(A) Funds described in paragraph (1).
            [(B) Any funds made available for the Department of 
        Homeland Security.]
    (2) Any Federal funding specified in paragraph (1) that is 
provided to an institution of higher education, or to an 
individual, to be available solely for student financial 
assistance, related administrative costs, or costs associated 
with attendance, may be used for the purpose for which the 
funding is provided.
    (e) Notice of Determinations.--Whenever the Secretary of 
Defense makes a determination under subsection (a), (b), or 
(c), the Secretary--
            (1) shall transmit a notice of the determination to 
        the Secretary of Education, to the head of each other 
        department and agency the funds of which are subject to 
        the determination, and to Congress; and

           *       *       *       *       *       *       *

Sec. 986. Security clearances: limitations

    (a) * * *

           *       *       *       *       *       *       *

    (c) Persons Disqualified From Being Granted Security 
Clearances.--A person is described in this subsection if any of 
the following applies to that person:
            (1) The person has been convicted in any court of 
        the United States of a crime [and], was sentenced to 
        imprisonment for a term exceeding one year, and was 
        incarcerated as a result of that sentence for not less 
        than one year.

           *       *       *       *       *       *       *

    [(d) Waiver Authority.--In a meritorious case, the 
Secretary of Defense or the Secretary of the military 
department concerned may authorize an exception to the 
prohibition in subsection (a) for a person described in 
paragraph (1) or (4) of subsection (c). The authority under the 
preceding sentence may not be delegated.]
    (d) Waiver Authority.--In a meritorious case, an exception 
to the prohibition in subsection (a) may be authorized for a 
person described in paragraph (1) or (4) of subsection (c) if 
there are mitigating factors. Any such waiver may be authorized 
only in accordance with standards and procedures prescribed by, 
or under the authority of, an Executive order or other guidance 
issued by the President.

           *       *       *       *       *       *       *

             CHAPTER 53--MISCELLANEOUS RIGHTS AND BENEFITS

Sec.
1031.    Administration of oath.
     * * * * * * *
1060b.    Military ID cards: dependents and survivors of retirees; 
          issuance of permanent ID card after attaining 70 years of age.

           *       *       *       *       *       *       *

Sec. 1044. Legal assistance

    (a) * * *

           *       *       *       *       *       *       *

    (e)(1) Notwithstanding any law regarding the licensure of 
attorneys, a judge advocate or civilian attorney who is 
authorized to provide military legal assistance is authorized 
to provide that assistance in any jurisdiction, subject to such 
regulations as may be prescribed by the Secretary concerned.
    (2) In this subsection, the term ``military legal 
assistance'' includes--
            (A) legal assistance provided under this section; 
        and
            (B) legal assistance contemplated by sections 
        1044a, 1044b, 1044c, and 1044d of this title.

           *       *       *       *       *       *       *

Sec. 1047. Allowance for civilian clothing

    (a) Members Traveling In Connection With Medical 
Evacuation.--The Secretary of the military department concerned 
may furnish civilian clothing to a member at a cost not to 
exceed $250, or reimburse a member for the purchase of civilian 
clothing in an amount not to exceed $250, in the case of a 
member who--
            (1) is medically evacuated for treatment in a 
        medical facility by reason of an illness or injury 
        incurred or aggravated while on active duty; or
            (2) after being medically evacuated as described in 
        paragraph (1), is in an authorized travel status from a 
        medical facility to another location approved by the 
        Secretary.
    (b) Certain Enlisted Members.--The Secretary of the 
military department concerned may furnish civilian clothing, at 
a cost of not more than $40, to an enlisted member who is--
            (1) discharged for misconduct or unsuitability or 
        under conditions other than honorable;
            (2) sentenced by a civil court to confinement in a 
        prison;
            (3) interned or discharged as an alien enemy; or
            (4) discharged before completion of recruit 
        training under honorable conditions for dependency, 
        hardship, minority, or disability or for the 
        convenience of the Government.

           *       *       *       *       *       *       *

Sec. 1060b. Military ID cards: dependents and survivors of retirees; 
                    issuance of permanent ID card after attaining 70 
                    years of age

    (a) Permanent ID Card After Age 70.--In issuing military ID 
cards to retiree dependents, the Secretary concerned shall 
issue a permanent ID card (not subject to renewal) to any such 
retiree dependent who has attained 70 years of age. Such a 
permanent ID card shall be issued upon the expiration, after 
the retiree dependent attains 70 years of age, of any earlier, 
renewable military ID card or, if earlier, upon the request of 
such a retiree dependent after attaining age 70.
    (b) Definitions.--In this section:
            (1) The term ``military ID card'' means a card or 
        other form of identification used for purposes of 
        demonstrating eligibility for any benefit from the 
        Department of Defense.
            (2) The term ``retiree dependent'' means a person 
        who is a dependent of a retired member of the uniformed 
        services, or a survivor of a deceased retired member of 
        the uniformed services, who is eligible for any benefit 
        from the Department of Defense.

           *       *       *       *       *       *       *

                  CHAPTER 55--MEDICAL AND DENTAL CARE

Sec.

1071.    Purpose of this chapter.
     * * * * * * *
1074b.    Medical and dental care: members of, and designated applicants 
          for membership in, Senior ROTC.
[1075.    Officers and certain enlisted members: subsistence charges.]
     * * * * * * *
[1076b.   TRICARE program: coverage for members of the Ready Reserve.]
1076b.    TRICARE program: coverage for members of the Ready Reserve.

           *       *       *       *       *       *       *

Sec. 1074. Medical and dental care for members and certain former 
                    members

    (a)(1) * * *

           *       *       *       *       *       *       *

    (d)(1) For the purposes of this chapter, a dependent of a 
member of a reserve component of the armed forces who is issued 
a delayed-effective-date active-duty order, or is covered by 
such an order, shall be treated as being a dependent of a 
member on active duty for a period of more than 30 days 
beginning on [the later of the date that is--
            [(A) the date of the issuance of such order; or
            [(B) 90 days before the date on which the period of 
        active duty is to commence under such order for that 
        member.] the date described in paragraph (3).
    (2) The Secretary of Defense may, beginning on the date 
described in paragraph (3), provide a member of a reserve 
component of the armed forces who is issued a delayed-
effective-date active-duty order, or is covered by such an 
order, such medical and dental care (in addition to care for 
which the member is eligible under section 1074a(f) of this 
title or other provisions of law) the Secretary determines 
appropriate.
    (3) The date referred to in paragraphs (1) and (2) with 
respect to a member is the later of the date that is--
            (A) the date of the issuance of the delayed-
        effective-date active-duty order; or
            (B) 90 days before the date on which the period of 
        active duty is to commence under such order for that 
        member.
    [(2)] (4) In this subsection, the term ``delayed-effective-
date active-duty order'' means an order to active duty for a 
period of more than 30 days in support of a contingency 
operation under a provision of law referred to in section 
101(a)(13)(B) of this title that provides for active-duty 
service to begin under such order on a date after the date of 
the issuance of the order.
    [(3) This subsection shall cease to be effective on 
December 31, 2004.]

           *       *       *       *       *       *       *

Sec. 1074b. Medical and dental care: members of, and designated 
                    applicants for membership in, Senior ROTC

    (a) Under joint regulations prescribed by the administering 
Secretaries, the following persons are entitled to the benefits 
described in subsection (b):
            (1) A member of, and a designated applicant for 
        membership in, Senior ROTC who incurs or aggravates an 
        injury, illness, or disease in the line of duty while 
        performing duties pursuant to section 2109 of this 
        title.
            (2) A member of, and a designated applicant for 
        membership in, Senior ROTC who incurs or aggravates an 
        injury, illness, or disease while traveling directly to 
        or from the place at which that member or applicant is 
        to perform or has performed duties pursuant to section 
        2109 of this title.
            (3) Each member of, and each designated applicant 
        for membership in, Senior ROTC who incurs or aggravates 
        an injury, illness, or disease in the line of duty 
        while remaining overnight immediately before the 
        commencement of duties performed pursuant to section 
        2109 of this title or, while remaining overnight, 
        between successive periods of performing duties 
        pursuant to section 2109 of this title, at or in the 
        vicinity of the site of the duties performed pursuant 
        to section 2109 of this title, if the site is outside 
        reasonable commuting distance from the residence of the 
        member or designated applicant.
    (b) A person described in subsection (a) is entitled to--
            (1) the medical and dental care appropriate for the 
        treatment of the injury, illness, or disease of that 
        person until the resulting disability cannot be 
        materially improved by further hospitalization or 
        treatment; and
            (2) subsistence during hospitalization.
    (c) A member of, and each designated applicant for 
membership in, Senior ROTC is not entitled to benefits under 
subsection (b) if the injury, illness, or disease or 
aggravation of an injury, illness, or disease of that person 
described in subsection (a)(2) is the result of the gross 
negligence or the misconduct of the member or applicant for 
membership in Senior ROTC.
    (d) In this section, the term ``Senior ROTC'' means a 
program under chapter 103 of this title.

           *       *       *       *       *       *       *

Sec. 1074g. Pharmacy benefits program

    (a) Pharmacy Benefits.--(1) * * *

           *       *       *       *       *       *       *

    (6)(A) The Secretary, in the regulations prescribed under 
subsection (g), may establish cost sharing requirements (which 
may be established as a percentage or fixed dollar amount) 
under the pharmacy benefits program for generic, formulary, and 
nonformulary agents. For nonformulary agents, cost sharing 
shall be consistent with common industry practice and not in 
excess of amounts generally comparable to 20 percent for 
beneficiaries covered by section 1079 of this title or 25 
percent for beneficiaries covered by section 1086 of this 
title.
            (B) For a medicare-eligible beneficiary, the cost-
        sharing requirements may not be in excess of the cost-
        sharing requirements applicable to all other 
        beneficiaries covered by section 1086 of this title. 
        For purposes of the preceding sentence, a medicare-
        eligible beneficiary is a beneficiary eligible for 
        health benefits under section 1086 of this title 
        pursuant to subsection (d)(2) of such section.

           *       *       *       *       *       *       *

Sec. 1074j. Sub-acute care program

    (a) * * *
    (b) Benefits.--(1) * * *

           *       *       *       *       *       *       *

    (3)(A) The program shall include a comprehensive, part-time 
or intermittent home health care benefit that shall be provided 
in the manner and under the conditions described in section 
1861(m) of the Social Security Act (42 U.S.C. 1395x(m)).
    (B) The Secretary of Defense shall establish procedures for 
the transition to and implementation of the home health care 
benefit required by subparagraph (A). The Secretary may provide 
in such procedures that covered beneficiaries who, before the 
implementation of such benefit, received home health care under 
this chapter in excess of such benefit, may continue to receive 
such care for such time as the Secretary considers appropriate.

           *       *       *       *       *       *       *

[Sec. 1075. Officers and certain enlisted members: subsistence charges

    [(a) In General.--When an officer or former officer of a 
uniformed service, or an enlisted member of a uniformed service 
entitled to basic allowance for subsistence, is hospitalized 
under section 1074 of this title, he shall pay an amount equal 
to the part of the charge prescribed under section 1078 of this 
title that is attributable to subsistence.
    [(b) Exceptions.--Subsection (a) shall not apply to any of 
the following:
            [(1) An enlisted member, or former enlisted member, 
        of a uniformed service who is entitled to retired or 
        retainer pay or equivalent pay.
            [(2) An officer or former officer of a uniformed 
        service, or an enlisted member or former enlisted 
        member of a uniformed service not described in 
        paragraph (1), who is hospitalized under section 1074 
        because of an injury incurred (as determined under 
        criteria prescribed by the Secretary of Defense)--
                    [(A) as a direct result of armed conflict;
                    [(B) while engaged in hazardous service;
                    [(C) in the performance of duty under 
                conditions simulating war; or
                    [(D) through an instrumentality of war.]

           *       *       *       *       *       *       *

Sec. 1076a. TRICARE dental program

    (a) * * *

           *       *       *       *       *       *       *

    (k) Eligible Dependent Defined.--In this section, the term 
``eligible dependent''--
            (1) * * *
            (2) includes any such dependent of a member who 
        dies while on active duty for a period of more than 30 
        days or a member of the Ready Reserve if, on the date 
        of the death of the member, the dependent is enrolled 
        in a dental benefits plan established under subsection 
        (a) or is not enrolled in such a plan by reason of the 
        dependent's young age on the date of death of the 
        member of a discontinuance of a former enrollment under 
        subsection (f), except that the term does not include 
        the dependent after the end of the three-year period 
        beginning on the date of the member's death.

           *       *       *       *       *       *       *

[Sec. 1076b. TRICARE program: coverage for members of the Ready Reserve

    [(a) Eligibility.--Each member of the Selected Reserve of 
the Ready Reserve and each member of the Individual Ready 
Reserve described in section 10144(b) of this title is 
eligible, subject to subsection (h), to enroll in TRICARE and 
receive benefits under such enrollment for any period that the 
member--
            [(1) is an eligible unemployment compensation 
        recipient; or
            [(2) is not eligible for health care benefits under 
        an employer-sponsored health benefits plan.
    [(b) Types of Coverage.--(1) A member eligible under 
subsection (a) may enroll for either of the following types of 
coverage:
            [(A) Self alone coverage.
            [(B) Self and family coverage.
    [(2) An enrollment by a member for self and family covers 
the member and the dependents of the member who are described 
in subparagraph (A), (D), or (I) of section 1072(2) of this 
title.
    [(c) Open Enrollment Periods.--The Secretary of Defense 
shall provide for at least one open enrollment period each 
year. During an open enrollment period, a member eligible under 
subsection (a) may enroll in the TRICARE program or change or 
terminate an enrollment in the TRICARE program.
    [(d) Scope of Care.--(1) A member and the dependents of a 
member enrolled in the TRICARE program under this section shall 
be entitled to the same benefits under this chapter as a member 
of the uniformed services on active duty or a dependent of such 
a member, respectively.
    [(2) Section 1074(c) of this title shall apply with respect 
to a member enrolled in the TRICARE program under this section.
    [(e) Premiums.--(1) The Secretary of Defense shall charge 
premiums for coverage pursuant to enrollments under this 
section. The Secretary shall prescribe for each of the TRICARE 
program options a premium for self alone coverage and a premium 
for self and family coverage.
    [(2) The monthly amount of the premium in effect for a 
month for a type of coverage under this section shall be the 
amount equal to 28 percent of the total amount determined by 
the Secretary on an appropriate actuarial basis as being 
reasonable for the coverage.
    [(3) The premiums payable by a member under this subsection 
may be deducted and withheld from basic pay payable to the 
member under section 204 of title 37 or from compensation 
payable to the member under section 206 of such title. The 
Secretary shall prescribe the requirements and procedures 
applicable to the payment of premiums by members not entitled 
to such basic pay or compensation.
    [(4) Amounts collected as premiums under this subsection 
shall be credited to the appropriation available for the 
Defense Health Program Account under section 1100 of this 
title, shall be merged with sums in such Account that are 
available for the fiscal year in which collected, and shall be 
available under subparagraph (B) of such section for such 
fiscal year.
    [(f) Other Charges.--A person who receives health care 
pursuant to an enrollment in a TRICARE program option under 
this section, including a member who receives such health care, 
shall be subject to the same deductibles, copayments, and other 
nonpremium charges for health care as apply under this chapter 
for health care provided under the same TRICARE program option 
to dependents described in subparagraph (A), (D), or (I) of 
section 1072(2) of this title.
    [(g) Termination of Enrollment.--(1) A member enrolled in 
the TRICARE program under this section may terminate the 
enrollment only during an open enrollment period provided under 
subsection (c), except as provided in subsection (h).
    [(2) An enrollment of a member for self alone or for self 
and family under this section shall terminate on the first day 
of the first month beginning after the date on which the member 
ceases to be eligible under subsection (a).
    [(3) The enrollment of a member under this section may be 
terminated on the basis of failure to pay the premium charged 
the member under this section.
    [(h) Relationship to Transition TRICARE Coverage Upon 
Separation From Active Duty.--(1) A member may not enroll in 
the TRICARE program under this section while entitled to 
transitional health care under subsection (a) of section 1145 
of this title or while authorized to receive health care under 
subsection (c) of such section.
    [(2) A member who enrolls in the TRICARE program under this 
section within 90 days after the date of the termination of the 
member's entitlement or eligibility to receive health care 
under subsection (a) or (c) of section 1145 of this title may 
terminate the enrollment at any time within one year after the 
date of the enrollment.
    [(i) Certification of Noncoverage by Other Health Benefits 
Plan.--The Secretary of Defense may require a member to submit 
any certification that the Secretary considers appropriate to 
substantiate the member's assertion that the member is not 
covered for health care benefits under any other health 
benefits plan.
    [(j) Eligible Unemployment Compensation Recipient 
Defined.--In this section, the term ``eligible unemployment 
compensation recipient'' means, with respect to any month, any 
individual who is determined eligible for any day of such month 
for unemployment compensation under State law (as defined in 
section 205(9) of the Federal-State Extended Unemployment 
Compensation Act of 1970), including Federal unemployment 
compensation laws administered through the State.
    [(k) Regulations.--The Secretary of Defense, in 
consultation with the other administering Secretaries, shall 
prescribe regulations for the administration of this section.
    [(l) Termination of Authority.--An enrollment in TRICARE 
under this section may not continue after December 31, 2004.]

Sec. 1076b. TRICARE demonstration project: coverage for members of the 
                    Ready Reserve

    (a) In General.--(1) The Secretary of Defense shall conduct 
a demonstration project beginning in fiscal year 2005 to test 
whether TRICARE coverage for certain Ready Reserve members and 
their families enhances medical readiness and retention of such 
members.
    (2) Under the demonstration project required by paragraph 
(1), within the scope of the project, as established by the 
Secretary, members of the Ready Reserve may be allowed to 
enroll for coverage under the TRICARE Standard option of the 
TRICARE program and receive benefits under such enrollment for 
any period that the member--
            (A) is not eligible for health care benefits under 
        an employer-sponsored health benefits plan; and
            (B) either--
                    (i) is not on active duty; or
                    (ii) is on active duty but under a call or 
                order to active duty for a period of 30 days or 
                less.
    (3) A member allowed to enroll in TRICARE Standard under 
the demonstration project may enroll for self-only coverage or 
self and family coverage.
    (b) Scope of Coverage .--A member and the dependents of a 
member enrolled in TRICARE Standard under this section shall be 
entitled to the same benefits and shall pay the same charges as 
are provided under section 1079 of this title.
    (c) Premiums.--(1) The Secretary of Defense shall charge 
premiums for coverage pursuant to enrollments under this 
section. The Secretary shall prescribe a premium for self only 
coverage and a premium for self and family coverage.
    (2) The monthly amount of the premium in effect for a month 
for a type of coverage under this section shall be the amount 
equal to 28 percent of the total amount determined by the 
Secretary on an appropriate actuarial basis as being reasonable 
for the coverage.
    (3) The premiums payable by a member under this subsection 
may be deducted and withheld from basic pay payable to the 
member under section 204 of title 37 or from compensation 
payable to the member under section 206 of such title. The 
Secretary shall prescribe the requirements and procedures 
applicable to the payment of premiums by members not entitled 
to such basic pay or compensation.
    (4) Amounts collected as premiums under this subsection 
shall be credited to the appropriation available for the 
Defense Health Program Account under section 1100 of this 
title, shall be merged with sums in such Account that are 
available for the fiscal year in which collected, and shall be 
available under subparagraph (B) of such section for such 
fiscal year.
    (d) Conditions of Eligibility.--(1) The Secretary of 
Defense may establish other conditions of eligibility, 
including requiring a member to submit any certification that 
the Secretary considers appropriate to substantiate the 
member's assertion that the member is not eligible for health 
care benefits under any other health benefits plan.
    (2) In the case of any member who is self-employed and not 
eligible for coverage under any other employer-sponsored health 
benefits plan, the member shall not be considered eligible to 
enroll under this section if the member's income in the prior 
calendar year exceeded $40,000.
    (e) Scope and Terms of Demonstration Project.--The 
geographic scope and priorities for enrollment under the 
demonstration program, if any, shall be established by the 
Secretary of Defense. The Secretary may establish such other 
terms and conditions for the demonstration project required by 
subsection (a) as the Secretary determines appropriate to 
accomplish its purposes.
    (f) Termination of Authority.--An enrollment in TRICARE 
under this section may not continue after December 31, 2007.
    (g) Evaluation of Demonstration and Report to Congress.--
Not later than March 1, 2007, the Secretary shall provide to 
Congress a report on the results of the demonstration project 
required by this section. Such report shall include an analysis 
of the impact of the demonstration on medical readiness and 
retention of the members who enrolled, an assessment of the 
costs and benefits of any improvements in medical readiness or 
retention, and recommendations concerning TRICARE Standard 
coverage for Ready Reserve members.
    (h) Definition.--In this section, the term ``TRICARE 
Standard'' means the option of the TRICARE program that is also 
known as the Civilian Health and Medical Program of the 
Uniformed Services, as defined in section 1072(4) of this 
title.

Sec. 1076c. Dental insurance plan: certain retirees and their surviving 
                    spouses and other dependents

    (a) * * *

           *       *       *       *       *       *       *

    (b) Persons Eligible for Plan.--The following persons are 
eligible to enroll in the dental insurance plan established 
under subsection (a):
            (1) * * *

           *       *       *       *       *       *       *

            (6) A person who--
                    (i) is an unremarried former spouse of a 
                member described in paragraph (1) or (2);
                    (i) is described in section 1072(2)(F)(i) 
                of this title; and
                    (ii) does not have dental coverage under an 
                employer-sponsored health plan.

           *       *       *       *       *       *       *

Sec. 1077. Medical care for dependents: authorized care in facilities 
                    of uniformed services

    (a) * * *

           *       *       *       *       *       *       *

    (c)[A] (1) Except as provided in paragraph (2), a dependent 
participating under a dental plan established under section 
1076a of this title may not be provided dental care under 
section 1076(a) of this title except for emergency dental care, 
dental care provided outside the United States, and dental care 
that is not covered by such plan.
    (2)(A) Dependents who have not attained age 13 and who are 
participating under a dental plan established under section 
1076a of this title may be treated by post-graduate dental 
students in eligible dental treatment facilities if--
            (i)(I) treatment of pediatric dental patients is 
        required to comply with American Dental Association 
        accreditation standards; or
            (II) pediatric dental training is required to 
        enable post-graduate dental students to provide dental 
        care for such dependents outside the United States; and
            (ii) there are insufficient numbers of children 
        eligible to be provided dental care under section 
        1076(a) of this title to meet such standards or 
        training requirements.
    (B) The total number of dependents who may be treated under 
this paragraph may not exceed 2,000 in any fiscal year.
    (C) In this paragraph, an eligible dental treatment 
facility is a dental treatment facility with a post-graduate 
dental education program accredited by the American Dental 
Association.

           *       *       *       *       *       *       *

Sec. 1079. Contracts for medical care for spouses and children: plans

    (a) * * *

           *       *       *       *       *       *       *

    (h)(1) * * *

           *       *       *       *       *       *       *

    (4)(A) * * *

           *       *       *       *       *       *       *

    (C) In the case of services billed to a dependent referred 
to in subsection (a) of a member of a reserve component who is 
ordered to active duty for a period of more than 30 days in 
support of a contingency operation under a provision of law 
referred to in section 101(a)(13)(B) of this title, the 
regulations shall provide that, in addition to amounts 
otherwise payable by the United States, the Secretary may pay 
the amount referred to in subparagraph (B)(i) for the services.

           *       *       *       *       *       *       *

    (p)(1) * * *

           *       *       *       *       *       *       *

    (4) The Secretary of Defense may provide for coverage of a 
dependent referred to in subsection (a) who is not described in 
paragraph (3) if the Secretary determines that exceptional 
circumstances warrant such coverage.
    [(4)] (5) The Secretary of Defense shall consult with the 
other administering Secretaries in the administration of this 
subsection.

           *       *       *       *       *       *       *

Sec. 1095d. TRICARE program: waiver of certain deductibles

    (a) Waiver Authorized.--The Secretary of Defense may waive 
the deductible payable for medical care provided under the 
TRICARE program to an eligible dependent of--
            (1) a member of a reserve component on active duty 
        pursuant to a call or order to active duty for a period 
        of [less than one year] more than 30 days; or
            (2) a member of the National Guard on full-time 
        National Guard duty pursuant to a call or order to 
        full-time National Guard duty for a period of [less 
        than one year] more than 30 days.

           *       *       *       *       *       *       *

Sec. 1096. Military-civilian health services partnership program

    (a) * * *

           *       *       *       *       *       *       *

    (c) Computation of Charges.--A covered beneficiary who is a 
dependent, with respect to care provided to such beneficiary in 
facilities of the uniformed services under a sharing agreement 
entered into under subsection (a), [shall pay--
            [(1) in the case of a dependent, the charges 
        prescribed by section 1078 of this title; and
            [(2) in the case of a member or former member 
        entitled to retired or retainer pay, the charges 
        prescribed by section 1075 of this title.] shall pay 
        the charges prescribed by section 1078 of this title.

           *       *       *       *       *       *       *

Sec. 1108. Health care coverage through Federal Employees Health 
                    Benefits program: demonstration project

    (a) * * *

           *       *       *       *       *       *       *

    (e) Prohibition Against Use of MTFs and Enrollment Under 
TRICARE.--Covered beneficiaries under this chapter who are 
provided coverage under the demonstration project shall not be 
eligible to receive care at a military medical treatment 
facility or to enroll in a [heath] health care plan under the 
TRICARE program.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Sec. 1111. Establishment and purpose of Fund; definitions; authority to 
                    enter into agreements

    (a) * * *

           *       *       *       *       *       *       *

    (c) The Secretary of Defense shall enter into an agreement 
with each other administering Secretary (as defined in section 
1072(3) of this title) for participation in the Fund by a 
uniformed service under the jurisdiction of that Secretary. The 
agreement shall require that Secretary to determine 
contributions to the Fund on behalf of the members of the 
uniformed service under the jurisdiction of that Secretary in a 
manner comparable to the determination with respect to 
contributions to the Fund made by the Secretary of Defense 
under section [1116 of this title, and such administering 
Secretary may make such contributions.] 1115(b) of this title, 
and such contributions shall be paid into the Fund as provided 
in section 1116(a).

           *       *       *       *       *       *       *

Sec. 1115. Determination of contributions to the Fund

    (a) The Board shall determine the amount that is the 
present value (as of October 1, 2002) of future benefits 
payable from the Fund that are attributable to service in the 
participating uniformed services performed before October 1, 
2002. That amount is the original unfunded liability of the 
Fund. The Board shall determine the period of time over which 
the original unfunded liability should be liquidated and shall 
determine an amortization schedule for the liquidation of such 
liability over that period. Contributions to the Fund for the 
liquidation of the original unfunded liability in accordance 
with such schedule shall be made as provided in section 
[1116(c)] 1116 of this title.
    (b)[(1) The Secretary of Defense shall determine each year, 
in sufficient time for inclusion in budget requests for the 
following fiscal year, the total amount of Department of 
Defense contributions to be made to the Fund during that fiscal 
year under section 1116(a) of this title.] The Secretary of 
Defense shall determine, before the beginning of each fiscal 
year after September 30, 2005, the total amount of the 
Department of Defense contribution to be made to the Fund for 
that fiscal year for purposes of section 1116(b)(2). That 
amount shall be the sum of the following:
            [(A)] (1) The product of--
                    [(i)] (A) the current estimate of the value 
                of the single level dollar amount to be 
                determined under subsection (c)(1)(A) at the 
                time of the next actuarial valuation under 
                subsection (c); and
                    [(ii)] (B) the expected average force 
                strength during that fiscal year for members of 
                the uniformed services under the jurisdiction 
                of the Secretary of Defense on active duty 
                (other than active duty for training) and full-
                time National Guard duty (other than full-time 
                National Guard duty for training only).
            [(B)] (2) The product of--
                    [(i)] (A) the current estimate of the value 
                of the single level dollar amount to be 
                determined under subsection (c)(1)(B) at the 
                time of the next actuarial valuation under 
                subsection (c); and
                    [(ii)] (B) the expected average force 
                strength during that fiscal year for members of 
                the Ready Reserve of the uniformed services 
                under the jurisdiction of the Secretary of 
                Defense (other than members on full-time 
                National Guard duty other than for training) 
                who are not otherwise described in 
                [subparagraph (A)(ii)] paragraph (1)(B).
    [(2) The amount determined under paragraph (1) for any 
fiscal year is the amount needed to be appropriated to the 
Department of Defense (or to the other executive department 
having jurisdiction over the participating uniformed service) 
for that fiscal year for payments to be made to the Fund during 
that year under section 1116(a) of this title. The President 
shall include not less than the full amount so determined in 
the budget transmitted to Congress for that fiscal year under 
section 1105 of title 31. The President may comment and make 
recommendations concerning any such amount.]
    (c)(1) Not less often than every four years, the Secretary 
of Defense shall carry out an actuarial valuation of the Fund. 
Each such actuarial valuation shall include--
            (A) * * *

           *       *       *       *       *       *       *

Such single level dollar amounts shall be used for the purposes 
of subsection (b) [and section 1116(a) of this title]. The 
Secretary of Defense may determine a separate single level 
dollar amount under subparagraph (A) or (B) for any 
participating uniformed service, if, in the judgment of the 
Secretary, such a determination would produce a more accurate 
and appropriate actuarial valuation for that uniformed service.

           *       *       *       *       *       *       *

    (5) Contributions to the Fund in accordance with 
amortization schedules under paragraphs (2), (3), and (4) shall 
be made as provided in section [1116(c)] 1116 of this title.

           *       *       *       *       *       *       *

[Sec. 1116. Payments into the Fund

    [(a) The Secretary of Defense shall pay into the Fund at 
the end of each month as the Department of Defense contribution 
to the Fund for that month the amount that, subject to 
subsection (b), is the sum of the following:
            [(1) The product of--
                    [(A) the monthly dollar amount determined 
                using all the methods and assumptions approved 
                for the most recent (as of the first day of the 
                current fiscal year) actuarial valuation under 
                section 1115(c)(1)(A) of this title (except 
                that any statutory change in the uniformed 
                services retiree health care programs for 
                medicare-eligible beneficiaries that is 
                effective after the date of that valuation and 
                on or before the first day of the current 
                fiscal year shall be used in such 
                determination); and
                    [(B) the total end strength for that month 
                for members of the uniformed services under the 
                jurisdiction of the Secretary of Defense on 
                active duty (other than active duty for 
                training) and full-time National Guard duty 
                (other than full-time National Guard duty for 
                training only).
            [(2) The product of--
                    [(A) the level monthly dollar amount 
                determined using all the methods and 
                assumptions approved for the most recent (as of 
                the first day of the current fiscal year) 
                actuarial valuation under section 1115(c)(1)(B) 
                of this title (except that any statutory change 
                in the uniformed services retiree health care 
                programs for medicare-eligible beneficiaries 
                that is effective after the date of that 
                valuation and on or before the first day of the 
                current fiscal year shall be used in such 
                determination); and
                    [(B) the total end strength for that month 
                for members of the Ready Reserve of the 
                uniformed services under the jurisdiction of 
                the Secretary of Defense other than members on 
                full-time National Guard duty (other than for 
                training) who are not otherwise described in 
                paragraph (1)(B).
    [(b) If an actuarial valuation referred to in paragraph (1) 
or (2) of subsection (a) has been calculated as a separate 
single level dollar amount for a participating uniformed 
service under section 1115(c)(1) of this title, the 
administering Secretary for the department in which such 
uniformed service is operating shall calculate the amount under 
such paragraph separately for such uniformed service. If the 
administering Secretary is not the Secretary of Defense, the 
administering Secretary shall notify the Secretary of Defense 
of the amount so calculated. To determine a single amount for 
the purpose of paragraph (1) or (2) of subsection (a), as the 
case may be, the Secretary of Defense shall aggregate the 
amount calculated under this subsection for a uniformed service 
for the purpose of such paragraph with the amount or amounts 
calculated (whether separately or otherwise) for the other 
uniformed services for the purpose of such paragraph.
    [(c)(1) At the beginning of each fiscal year the Secretary 
of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury the amount certified to the 
Secretary by the Secretary of Defense under paragraph (3). Such 
payment shall be the contribution to the Fund for that fiscal 
year required by sections 1115(a) and 1115(c) of this title.
    [(2) At the beginning of each fiscal year the Secretary of 
Defense shall determine the sum of the following:
            [(A) The amount of the payment for that year under 
        the amortization schedule determined by the Board of 
        Actuaries under section 1115(a) of this title for the 
        amortization of the original unfunded liability of the 
        Fund.
            [(B) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        1115(c)(2) of this title for the amortization of any 
        cumulative unfunded liability (or any gain) to the Fund 
        resulting from changes in benefits.
            [(C) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        1115(c)(3) of this title for the amortization of any 
        cumulative actuarial gain or loss to the Fund resulting 
        from actuarial assumption changes.
            [(D) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        1115(c)(4) of this title for the amortization of any 
        cumulative actuarial gain or loss to the Fund resulting 
        from actuarial experience.
    [(3) The Secretary of Defense shall promptly certify the 
amount determined under paragraph (2) each year to the 
Secretary of the Treasury.
    [(d) Amounts paid into the Fund under subsection (a) shall 
be paid from funds available for the pay of members of the 
participating uniformed services under the jurisdiction of the 
respective administering Secretaries.]

Sec. 1116. Payments into the Fund

    (a) At the beginning of each fiscal year after September 
30, 2005, the Secretary of the Treasury shall promptly pay into 
the Fund from the General Fund of the Treasury--
            (1) the amount certified to the Secretary by the 
        Secretary of Defense under subsection (c), which shall 
        be the contribution to the Fund for that fiscal year 
        required by section 1115; and
            (2) the amount determined by each administering 
        Secretary under section 1111(c) as the contribution to 
        the Fund on behalf of the members of the uniformed 
        services under the jurisdiction of that Secretary.
    (b) At the beginning of each fiscal year, the Secretary of 
Defense shall determine the sum of the following:
            (1) The amount of the payment for that year under 
        the amortization schedule determined by the Board of 
        Actuaries under section 1115(a) of this title for the 
        amortization of the original unfunded liability of the 
        Fund.
            (2) The amount (including any negative amount) of 
        the Department of Defense contribution for that year as 
        determined by the Secretary of Defense under section 
        1115(b) of this title.
            (3) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        1115(c)(2) of this title for the amortization of any 
        cumulative unfunded liability (or any gain) to the Fund 
        resulting from changes in benefits.
            (4) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        1115(c)(3) of this title for the amortization of any 
        cumulative actuarial gain or loss to the Fund resulting 
        from actuarial assumption changes.
            (5) The amount (including any negative amount) for 
        that year under the most recent amortization schedule 
        determined by the Secretary of Defense under section 
        1115(c)(4) of this title for the amortization of any 
        cumulative actuarial gain or loss to the Fund resulting 
        from actuarial experience.
    (c) The Secretary of Defense shall promptly certify the 
amount determined under subsection (b) each year to the 
Secretary of the Treasury.

           *       *       *       *       *       *       *

                   CHAPTER 57--DECORATIONS AND AWARDS

Sec.
1121.    Legion of Merit: award.
     * * * * * * *
1134.    Joint professional military education ribbon: award.
1134.    Civilian medals or decorations of the Department of Defense.

           *       *       *       *       *       *       *

Sec. 1134. Joint professional military education ribbon: award

    (a) JPME I.--The Secretary of Defense may award a ribbon, 
of appropriate design, as approved by the Secretary, to any 
person who successfully completes a program of instruction 
approved by the Secretary as qualifying for credit as the Joint 
Professional Military Education Phase I program of instruction.
    (b) JPME II.--The Secretary of Defense may award a device, 
of appropriate design, as approved by the Secretary, for wear 
with the ribbon awarded under subsection (a), to any person who 
successfully completes a program of instruction approved by the 
Secretary as qualifying for credit as the Joint Professional 
Military Education Phase II course of instruction.

Sec. 1134. Civilian medals or decorations of the Department of Defense

    (a) Prohibition.--Except with the written permission of the 
Secretary of Defense or when authorized by regulations, no 
person may knowingly--
            (1) wear; or
            (2) use, in connection with any merchandise, retail 
        product, impersonation, solicitation, or commercial 
        activity;
medals, decorations, or other insignia awarded by the Secretary 
of Defense to recognize Department of Defense civilian 
employees and other individuals who render service to the 
Department of Defense.
    (b) Authority To Enjoin Violations.--Whenever it appears to 
the Attorney General that any person is engaged or is about to 
engage in an act or practice which constitutes or will 
constitute conduct prohibited by subsection (a), the Attorney 
General may initiate a civil proceeding in a district court of 
the United States to enjoin such act or practice. Such court 
shall proceed as soon as practicable to the hearing and 
determination of such action and may, at any time before final 
determination, enter such restraining orders or prohibitions, 
or take such other actions as is warranted, including imposing 
a civil penalty not to exceed $25,000 for each violation, to 
prevent injury to the United States or to any person or class 
of persons for whose protection the action is brought.

   CHAPTER 58--BENEFITS AND SERVICES FOR MEMBERS BEING SEPARATED OR 
RECENTLY SEPARATED

           *       *       *       *       *       *       *

Sec. 1145. Health benefits

    (a) Transitional Health Care.--(1) * * *

           *       *       *       *       *       *       *

    [(3) Transitional health care shall be available under 
subsection (a) for a specified time period beginning on the 
date on which the member is separated as follows:
            [(A) For members separated with less than six years 
        of active service, 60 days.
            [(B) For members separated with six or more years 
        of active service, 120 days.]
    (3) Transitional health care shall be available under this 
subsection for a period beginning on the date on which the 
member is separated from active duty and ending on the earlier 
of--
            (A) 180 days after the date on which the member is 
        separated from active duty; or
            (B) the date on which the member and dependents of 
        the member are covered by a health plan sponsored by an 
        employer.

           *       *       *       *       *       *       *

      CHAPTER 61--RETIREMENT OR SEPARATION FOR PHYSICAL DISABILITY

Sec.
1201.    Regulars and members on active duty for more than 30 days: 
          retirement.
     * * * * * * *
1206a.  Reserve component members unable to perform duties when ordered 
          to active duty: disability system processing.
     * * * * * * *
[1217.    Cadets, midshipmen, and aviation cadets: chapter does not 
          apply to.]
1217.    Cadets, midshipmen, and aviation cadets: applicability of 
          chapter.
     * * * * * * *

Sec. 1206a. Reserve component members unable to perform duties when 
                    ordered to active duty: disability system 
                    processing

    (a) Members Released From Active Duty Within 30 Days.--A 
member of a reserve component who is ordered to active duty for 
a period of more than 30 days and is released from active duty 
within 30 days of commencing such period of active duty for a 
reason stated in subsection (b) shall be considered for all 
purposes under this chapter to have been serving under an order 
to active duty for a period of 30 days or less.
    (b) Applicable Reasons for Release.--Subsection (a) applies 
in the case of a member released from active duty because of a 
failure to meet--
            (1) physical standards for retention; or
            (2) medical or dental standards for deployment due 
        to a preexisting condition not aggravated during the 
        period of active duty.
    (c) Savings Provision for Medical Care Provided While on 
Active Duty.--Notwithstanding subsection (a), any benefit under 
chapter 55 of this title received by a member described in 
subsection (a) or a dependent of such member before or during 
the period of active duty shall not be subject to recoupment or 
otherwise affected.

           *       *       *       *       *       *       *

[Sec. 1217. Cadets, midshipmen, and aviation cadets: chapter does not 
                    apply to

    [This chapter does not apply to cadets at the United States 
Military Academy, the United States Air Force Academy, or the 
Coast Guard Academy, or to midshipmen of the Navy.]

Sec. 1217. Cadets, midshipmen, and aviation cadets: applicability of 
                    chapter

    (a) This chapter applies to cadets at the United States 
Military Academy, the United States Air Force Academy, and the 
United States Coast Guard Academy and midshipmen of the Navy, 
but only with respect to physical disabilities incurred after 
the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2005.
    (b) Monthly cadet pay and monthly midshipman pay under 
section 203(c) of title 37 shall be considered to be basic pay 
for purposes of this chapter and the computation of retired pay 
and severance and separation pay to which entitlement is 
established under this chapter.

           *       *       *       *       *       *       *

CHAPTER 63--RETIREMENT FOR AGE

           *       *       *       *       *       *       *

Sec. 1251. Age 62: regular commissioned officers; exceptions

    (a) * * *
    (b) Notwithstanding subsection (a), the President may defer 
the retirement of an officer serving in a position that carries 
a grade above major general or rear admiral, but such a 
deferment may not extend beyond the first day of the month 
following the month in which the officer becomes [64] 66 years 
of age. Not more than ten deferments of retirement under this 
subsection may be in effect at any one time.

           *       *       *       *       *       *       *

CHAPTER 69--RETIRED GRADE

           *       *       *       *       *       *       *

Sec. 1370. Commissioned officers: general rule; exceptions

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

CHAPTER 71--COMPUTATION OF RETIRED PAY

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (g) Commissioned Corps of National Oceanic and Atmospheric 
Administration.--In the case of an officer whose retired pay is 
computed under section [305] 245 of the National Oceanic and 
Atmospheric Administration Commissioned Officers Act of 2002 
(33 U.S.C. 3045), the retired pay base is the basic pay of the 
rank with which the officer retired.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

         CHAPTER 73--ANNUITIES BASED ON RETIRED OR RETAINER PAY

Subchapter                                                          Sec.
      Retired Serviceman's Family Protection Plan...................1431
     * * * * * * *
      Supplemental Survivor Benefit Plan...........................1456]
     * * * * * * *

SUBCHAPTER II--SURVIVOR BENEFIT PLAN

           *       *       *       *       *       *       *

Sec. 1448. Application of Plan

    (a) * * *
    (b) Insurable Interest and Former Spouse Coverage.--
            (1) Coverage for person with insurable interest.--
                    (A) * * *

           *       *       *       *       *       *       *

                    (F) Vitiation of election by disability 
                retiree who dies of disability-related cause.--
                If a member retired [on or after the date of 
                the enactment of the National Defense 
                Authorization Act for Fiscal Year 2004] after 
                November 23, 2003, under chapter 61 of this 
                title dies within one year after the date on 
                which the member is so retired and the cause of 
                death is related to a disability for which the 
                member was retired under that chapter (as 
                determined under regulations prescribed by the 
                Secretary of Defense)--
                            (i) * * *

           *       *       *       *       *       *       *

    (d) Coverage for Survivors of Members Who Die on Active 
Duty.--
            (1) * * *
            (2) Dependent children.--
                    (A) * * *
                    (B) Optional annuity when there is an 
                eligible surviving spouse.--In the case of a 
                member described in paragraph (1) who dies [on 
                or after the date of the enactment of the 
                National Defense Authorization Act for Fiscal 
                Year 2004] after November 23, 2003, and for 
                whom there is a surviving spouse eligible for 
                an annuity under paragraph (1), the Secretary 
                may pay an annuity under this subchapter to the 
                member's dependent children under section 
                1450(a)(3) of this title, if applicable, 
                instead of paying an annuity to the surviving 
                spouse under paragraph (1), if the Secretary 
                concerned, in consultation with the surviving 
                spouse, determines it appropriate to provide an 
                annuity for the dependent children under this 
                paragraph instead of an annuity for the 
                surviving spouse under paragraph (1).

           *       *       *       *       *       *       *

            (6) Deemed election.--
                    (A) Annuity for dependent.--In the case of 
                a member described in paragraph (1) who dies 
                [on or after the date of the enactment of the 
                National Defense Authorization Act for Fiscal 
                Year 2004] after November 23, 2003,, the 
                Secretary concerned may, if no other annuity is 
                payable on behalf of the member under this 
                subchapter, pay an annuity to a natural person 
                who has an insurable interest in such member as 
                if the annuity were elected by the member under 
                subsection (b)(1). The Secretary concerned may 
                pay such an annuity under this paragraph only 
                in the case of a person who is a dependent of 
                that member (as defined in section 1072(2) of 
                this title).

           *       *       *       *       *       *       *

Sec. 1451. Amount of annuity

    (a) Computation of Annuity for a Spouse, Former Spouse, or 
Child.--
            (1) Standard annuity.--In the case of a standard 
        annuity provided to a beneficiary under section 1450(a) 
        of this title (other than under section 1450(a)(4)), 
        the monthly annuity payable to the beneficiary shall be 
        determined as follows:
                    (A) * * *
                    (B) Beneficiary 62 years of age or older.--
                            (i) General rule.--If the 
                        beneficiary (other than a dependent 
                        child) is 62 years of age or older when 
                        becoming entitled to the annuity, the 
                        monthly annuity shall be the amount 
                        equal to [35 percent of the base 
                        amount.] the product of the base amount 
                        and the percent applicable to the 
                        month, as follows:
                            (I) For a month before October 
                        2005, the applicable percent is 35 
                        percent.
                            (II) For months after September 
                        2005 and before April 2006, the 
                        applicable percent is 40 percent.
                            (III) For months after March 2006 
                        and before April 2007, the applicable 
                        percent is 45 percent.
                            (IV) For months after March 2007 
                        and before April 2008, the applicable 
                        percent is 50 percent.
                            (V) For months after March 2008, 
                        the applicable percent is 55 percent.
                            (ii) Rule if beneficiary eligible 
                        for social security offset 
                        computation.--If the beneficiary is 
                        eligible to have the annuity computed 
                        under subsection (e) and if[, at the 
                        time the beneficiary becomes entitled 
                        to the annuity,] computation of the 
                        annuity under that subsection is more 
                        favorable to the beneficiary than 
                        computation under clause (i), the 
                        annuity shall be computed under that 
                        subsection rather than under clause 
                        (i).
            (2) Reserve-component annuity.--In the case of a 
        reserve-component annuity provided to a beneficiary 
        under section 1450(a) of this title (other than under 
        section 1450(a)(4)), the monthly annuity payable to the 
        beneficiary shall be determined as follows:
                    (A) * * *
                    (B) Beneficiary 62 years of age or older.--
                            (i) General rule.--If the 
                        beneficiary (other than a dependent 
                        child) is 62 years of age or older when 
                        becoming entitled to the annuity, the 
                        monthly annuity shall be the amount 
                        equal to a percentage of the base 
                        amount that--
                                    (I) is less than [35 
                                percent] the percent specified 
                                under subsection (a)(1)(B)(i) 
                                as being applicable for the 
                                month; and

           *       *       *       *       *       *       *

    (c) Annuities for Survivors of Certain Persons Dying During 
a Period of Special Eligibility for SBP.--
            (1) In general.--In the case of an annuity provided 
        under section 1448(d) or 1448(f) of this title, the 
        amount of the annuity shall be determined as follows:
                    (A) * * *
                    (B) Beneficiary 62 years of age or older.--
                            (i) General rule.--If the person 
                        receiving the annuity (other than a 
                        dependent child) is 62 years of age or 
                        older when the member or former member 
                        dies, the monthly annuity shall be the 
                        amount equal to [35 percent] the 
                        applicable percent of the retired pay 
                        to which the member or former member 
                        would have been entitled as determined 
                        under subparagraph (A). The percent 
                        applicable for a month under the 
                        preceding sentence is the percent 
                        specified under subsection (a)(1)(B)(i) 
                        as being applicable for that month.
                            (ii) Rule if beneficiary eligible 
                        for social security offset 
                        computation.--If the beneficiary is 
                        eligible to have the annuity computed 
                        under subsection (e) and if[, at the 
                        time the beneficiary becomes entitled 
                        to the annuity,] computation of the 
                        annuity under that subsection is more 
                        favorable to the beneficiary than 
                        computation under clause (i), the 
                        annuity shall be computed under that 
                        subsection rather than under clause 
                        (i).

           *       *       *       *       *       *       *

    (d) Reduction of Annuities at Age 62.--
            (1) * * *
            (2) Amount of annuity as reduced.--
                    (A) [35 percent annuity.--] Computation of 
                annuity.--Except as provided in subparagraph 
                (B), the reduced amount of the annuity shall be 
                the amount of the annuity that the person would 
                be receiving on that date if the annuity had 
                initially been computed under subparagraph (B) 
                of that subsection.

           *       *       *       *       *       *       *

SUBCHAPTER III--SUPPLEMENTAL SURVIVOR BENEFIT PLAN

           *       *       *       *       *       *       *

Sec. 1457. Supplemental spouse coverage: payment of annuity; amount

    (a) * * *
    (b) Amount of Annuity for Beneficiary of Person Providing 
Standard Annuity Under SBP.--In the case of a person providing 
a standard annuity for a spouse or former spouse beneficiary 
under the Survivor Benefit Plan and providing a supplemental 
spouse annuity for that beneficiary under this subchapter, the 
monthly annuity payable to the beneficiary under this 
subchapter shall be the amount equal to [5, 10, 15, or 20 
percent] the applicable percent of the base amount under the 
Survivor Benefit Plan of the person providing the annuity, as 
specified by that person when electing to provide the annuity. 
The percent used for the computation shall be an even multiple 
of 5 percent and, whatever the percent specified in the 
election, may not exceed 20 percent for months before October 
2005, 15 percent for months after September 2005 and before 
April 2006, 10 percent for months after March 2006 and before 
April 2007, and 5 percent for months after March 2007 and 
before April 2008. The annuity shall be computed as of the date 
of the death of the person providing the annuity, 
notwithstanding that the annuity is not payable at that time by 
reason of subsection (a).

           *       *       *       *       *       *       *

Sec. 1458. Supplemental spouse coverage: eligible participants; 
                    elections of coverage

    (a) * * *

           *       *       *       *       *       *       *

    (j) Vitiation of Election by Disability Retiree Who Dies of 
Disability-Related Cause.--If a member retired [on or after the 
date of the enactment of the National Defense Authorization Act 
for Fiscal Year 2004] after November 23, 2003, under chapter 61 
of this title dies within one year after the date on which the 
member is so retired and the cause of death is related to a 
disability for which the member was retired under that chapter 
(as determined under regulations prescribed by the Secretary of 
Defense)--
            (1) * * *

           *       *       *       *       *       *       *

    [Effective April 1, 2008, subchapter III of chapter 73 is 
repealed.]

          [SUBCHAPTER III--SUPPLEMENTAL SURVIVOR BENEFIT PLAN

[Sec.
[1456.    Supplemental spouse coverage: establishment of plan; 
          definitions.
[1457.    Supplemental spouse coverage: payment of annuity; amount.
[1458.    Supplemental spouse coverage: eligible participants; elections 
          of coverage.
[1459.    Former spouse coverage: special rules.
[1460.    Supplemental spouse coverage: reductions in retired pay.
[1460a.   Incorporation of certain administrative provisions.
[1460b.   Regulations.

[Sec. 1456. Supplemental spouse coverage: establishment of plan; 
                    definitions

    [(a) Establishment of Supplemental Survivor Benefit Plan.--
            [(1) Plan.--The Secretary of Defense shall carry 
        out a program in accordance with this subchapter to 
        enable participants in the Survivor Benefit Plan who 
        are providing coverage for a spouse or former spouse 
        beneficiary under that Plan to also provide a 
        supplemental annuity for that spouse or former spouse 
        beginning when the participant dies or when the spouse 
        or former spouse becomes 62 years of age, whichever is 
        later, in order to offset the effects of the two-tier 
        annuity computation under the Survivor Benefit Plan.
            [(2) Name of plan.--The program under this 
        subchapter shall be known as the Supplemental Survivor 
        Benefit Plan.
    [(b) Definitions.--
            [(1) Incorporation of definitions applicable to 
        survivor benefit plan.--The definitions in section 1447 
        of this title apply in this subchapter.
            [(2) Supplemental spouse annuity defined.--In this 
        subchapter, the term ``supplemental spouse annuity'' 
        means an annuity provided to a spouse or former spouse 
        under this subchapter.

[Sec. 1457. Supplemental spouse coverage: payment of annuity; amount

    [(a) Commencement of Annuity.--A supplemental spouse 
annuity commences on the later of--
            [(1) the day on which an annuity under the Survivor 
        Benefit Plan becomes payable to the beneficiary; or
            [(2) the first day of the first month after the 
        month in which the beneficiary becomes 62 years of age.
    [(b) Amount of Annuity for Beneficiary of Person Providing 
Standard Annuity Under SBP.--In the case of a person providing 
a standard annuity for a spouse or former spouse beneficiary 
under the Survivor Benefit Plan and providing a supplemental 
spouse annuity for that beneficiary under this subchapter, the 
monthly annuity payable to the beneficiary under this 
subchapter shall be the amount equal to 5, 10, 15, or 20 
percent of the base amount under the Survivor Benefit Plan of 
the person providing the annuity, as specified by that person 
when electing to provide the annuity. The annuity shall be 
computed as of the date of the death of the person providing 
the annuity, notwithstanding that the annuity is not payable at 
that time by reason of subsection (a).
    [(c) Amount of Annuity for Beneficiary of Person Providing 
Reserve-Component Annuity Under SBP.--In the case of a person 
providing a reserve-component annuity for a spouse or former 
spouse beneficiary under the Survivor Benefit Plan and 
providing a supplemental spouse annuity for that beneficiary 
under this subchapter, the monthly annuity payable to that 
beneficiary under this subchapter shall be determined as 
follows:
            [(1) Beneficiary initially 62 years of age or 
        older.--If the beneficiary is 62 years of age or older 
        when the beneficiary becomes entitled to the reserve-
        component annuity under the Survivor Benefit Plan, the 
        monthly amount of the supplemental spouse annuity is 
        the difference between--
                    [(A) the amount of the reserve-component 
                annuity under the Survivor Benefit Plan to 
                which the beneficiary would be entitled if that 
                beneficiary were under 62 years of age (as 
                computed under section 1451(a)(2)(A) of this 
                title); and
                    [(B) the amount of the reserve-component 
                annuity to which the beneficiary is entitled 
                (as computed under section 1451(a)(2)(B) of 
                this title).
            [(2) Beneficiary initially under 62 years of age.--
        If the beneficiary is under 62 years of age when the 
        beneficiary becomes entitled to the reserve-component 
        annuity under the Survivor Benefit Plan, the monthly 
        amount of the supplemental spouse annuity of that 
        beneficiary (commencing on the date specified in 
        subsection (a)(2)) is the amount by which the 
        beneficiary's annuity under the Survivor Benefit Plan 
        is reduced (on the same day) under section 1451(d) of 
        this title.
            [(3) Exclusion of dic offset.--Computations under 
        paragraphs (1) and (2) shall be made without regard to 
        any reduction required under section 1450(c) of this 
        title (or any other provision of law) with respect to 
        the receipt of dependency and indemnity compensation 
        under section 1311 of title 38.
    [(d) Adjustments in Annuities.--
            [(1) Periodic adjustments (colas).--Whenever 
        annuities under the Survivor Benefit Plan are increased 
        under section 1451(g)(1) of this title (or any other 
        provision of law) or recomputed under section 1451(i) 
        of this title, each annuity under this subchapter shall 
        be increased or recomputed at the same time. The 
        increase shall, in the case of any such annuity, be by 
        the same percent as the percent by which the annuity of 
        that beneficiary is increased or recomputed under the 
        Survivor Benefit Plan.
            [(2) Rounding down.--The monthly amount of an 
        annuity payable under this subchapter, if not a 
        multiple of $1, shall be rounded to the next lower 
        multiple of $1.
    [(e) Termination of Annuity.--A supplemental spouse annuity 
terminates effective as of the first day of the month in which 
the beneficiary dies or otherwise becomes ineligible to 
continue to receive an annuity under the Survivor Benefit Plan.

[Sec. 1458. Supplemental spouse coverage: eligible participants; 
                    elections of coverage

    [(a) Coverage.--
            [(1) In general.--A person who provides an annuity 
        for a spouse or former spouse under the Survivor 
        Benefit Plan at the maximum level may elect in 
        accordance with this section to provide a supplemental 
        spouse annuity for that spouse or former spouse.
            [(2) Coverage contingent on concurrent sbp 
        coverage.--When a person providing a supplemental 
        spouse annuity under this subchapter ceases to be a 
        participant under the Survivor Benefit Plan, that 
        person's coverage under this subchapter automatically 
        terminates.
            [(3) Elections to be voluntary.--A person may not 
        be ordered or required to elect (or to enter into an 
        agreement to elect) to provide a spouse or former 
        spouse with a supplemental spouse annuity under this 
        subchapter. Except as provided in section 1459(b) of 
        this title, in no case shall a person be deemed to have 
        made an election to provide a supplemental annuity for 
        a spouse or former spouse of such person.
    [(b) Limitation on Eligibility for Certain SBP Participants 
Not Affected by Two-Tier Annuity Computation.--A person is not 
eligible to make an election under this section if (as 
determined by the Secretary concerned) the annuity of a spouse 
or former spouse beneficiary of that person under the Survivor 
Benefit Plan will be computed under section 1451(e) of this 
title. However, such a person may waive the right to have that 
annuity computed under section 1451(e) of this title. Any such 
election is irrevocable. A person making such a waiver may make 
an election under this section as in the case of any other 
participant in the Survivor Benefit Plan.
    [(c) Election of Supplemental Spouse Annuity Before 
Becoming a Participant in SBP.--
            [(1) In general.--A person anticipating becoming a 
        participant in the Survivor Benefit Plan who has a 
        spouse or former spouse may elect to provide a 
        supplemental spouse annuity under this subchapter for 
        that spouse or former spouse.
            [(2) Conditions on election.--An election under 
        paragraph (1)--
                    [(A) must be made before the day on which 
                the person making the election first becomes a 
                participant in the Survivor Benefit Plan; and
                    [(B) shall be made in the same manner as an 
                election under section 1448 of this title that 
                is available to that person at the same time.
            [(3) Requirement of spouse annuity under sbp.--If 
        upon becoming a participant in the Survivor Benefit 
        Plan under section 1448 of this title the person is not 
        providing an annuity for the person's spouse or former 
        spouse, an election under this section to provide a 
        supplemental spouse annuity shall be void.
            [(4) Special rule for rcsbp participants.--For the 
        purposes of this subsection, a person providing a 
        reserve-component annuity under the Survivor Benefit 
        Plan shall not be considered to have become a 
        participant in that Plan until the end of the 90-day 
        period referred to in clause (iii) of section 
        1448(a)(2)(B) of this title.
    [(d) Election of Former Spouse After Becoming Eligible for 
Survivor Benefit Plan.--
            [(1) Election of coverage.--A person who elects 
        under section 1448(b)(3) of this title to provide 
        coverage under the Survivor Benefit Plan for a former 
        spouse may elect to provide a supplemental spouse 
        annuity for that former spouse. Any such election must 
        be signed by the person and received by the Secretary 
        concerned within one year after the date of the decree 
        of divorce, dissolution, or annulment.
            [(2) Effective date of election.--An election under 
        paragraph (1) is effective as of the same day as the 
        election under section 1448(b)(3) of this title.
    [(e) Notice to Spouse of Former Spouse Coverage.--If a 
married person who is eligible to provide an annuity under the 
Survivor Benefit Plan elects to provide an annuity under that 
Plan for a former spouse (or for a former spouse and dependent 
child) and elects under this section to provide a supplemental 
spouse annuity for that former spouse, the notification to the 
person's spouse under section 1448(a)(3)(E) or 1448(b)(3)(D) of 
this title shall include notice of the election under this 
section.
    [(f) Irrevocability of Elections.--
            [(1) Standard annuity.--An election under 
        subsection (c) to provide a supplemental spouse annuity 
        by a person providing a standard annuity under the 
        Survivor Benefit Plan is irrevocable if not revoked on 
        the day before the date on which the person first 
        becomes a participant in that Plan.
            [(2) Reserve-component annuity.--An election under 
        subsection (c) to provide a supplemental spouse annuity 
        by a person providing a reserve-component annuity under 
        the Survivor Benefit Plan is irrevocable if not revoked 
        before the end of the 90-day period with respect to 
        that person referred to in clause (iii) of section 
        1448(a)(2)(B) of this title.
            [(3) Former spouse elections.--An election under 
        subsection (d) may not be revoked except in accordance 
        with subsection (h).
    [(g) Remarriage After Retirement.--
            [(1) Election upon remarriage.--A person--
                    [(A) who is a participant in the Survivor 
                Benefit Plan and is providing coverage under 
                that Plan for a spouse (or a spouse and child) 
                but is not a participant in the Supplemental 
                Survivor Benefit Plan;
                    [(B) who does not have an eligible spouse 
                beneficiary under that Plan; and
                    [(C) who remarries,
        may (subject to paragraph (2)) elect to provide a 
        supplemental spouse annuity under this subchapter for 
        the person's spouse.
            [(2) Limitations on election.--A person may not 
        make an election under paragraph (1) if the person 
        elects under section 1448(a)(6)(A) of this title not to 
        provide coverage under the Survivor Benefit Plan for 
        the person's spouse.
            [(3) Conditions on election.--An election under 
        paragraph (1)--
                    [(A) is irrevocable;
                    [(B) shall be made within one year after 
                the remarriage; and
                    [(C) shall be made in such form and manner 
                as may be prescribed in regulations under 
                section 1460b of this title.
    [(h) Change of Former Spouse Beneficiary to Spouse or Child 
Beneficiary.--If a person who is providing an annuity for a 
former spouse under the Survivor Benefit Plan and a 
supplemental spouse annuity for that former spouse under this 
subchapter elects under section 1450(f)(1) of this title to 
change the beneficiary of the annuity under the Survivor 
Benefit Plan in order to provide an annuity under that Plan to 
that person's spouse or to a dependent child--
            [(1) the beneficiary under the supplemental spouse 
        annuity shall be deemed to be changed to that spouse 
        also, if the change under section 1450(f)(1) was to 
        provide the annuity for the person's spouse; and
            [(2) participation in the supplemental spouse 
        annuity program shall be terminated, if the change 
        under section 1450(f)(1) of this title was to provide 
        the annuity for a dependent child.
    [(i) Reinstatement of Discontinued Annuity Upon 
Reinstatement of SBP Annuity.--If a person who is providing an 
annuity for a former spouse under the Survivor Benefit Plan and 
a supplemental spouse annuity for that former spouse under this 
subchapter discontinues participation in the Survivor Benefit 
Plan under any provision of law and subsequently resumes 
participation in that Plan under any provision of law, the 
participation of that person in the Supplemental Survivor 
Benefit Plan under this chapter shall be reinstated effective 
on the day on which participation in the Survivor Benefit Plan 
resumes.
    [(j) Vitiation of Election by Disability Retiree Who Dies 
of Disability-Related Cause.--If a member retired on or after 
the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2004 under chapter 61 of this title dies 
within one year after the date on which the member is so 
retired and the cause of death is related to a disability for 
which the member was retired under that chapter (as determined 
under regulations prescribed by the Secretary of Defense)--
            [(1) an election made by the member to provide a 
        supplemental spouse annuity under this subchapter is 
        vitiated; and
            [(2) the amounts by which the member's retired pay 
        was reduced under section 1460 of this title shall be 
        refunded and paid to the person to whom the 
        supplemental spouse annuity would have been paid 
        pursuant to such election.

[Sec. 1459. Former spouse coverage: special rules

    [(a) Disclosure of Voluntary Written Agreement With Former 
Spouse.--A person who elects under section 1458 of this title 
to provide a supplemental spouse annuity for a former spouse 
shall, at the time of making the election, provide the 
Secretary concerned with a written statement (in a form to be 
prescribed by that Secretary and signed by such person and 
former spouse) setting forth whether the election is being made 
pursuant to a written agreement previously entered into 
voluntarily by such person as a part of or incident to a 
proceeding of divorce, dissolution, or annulment and (if so) 
whether such voluntary written agreement has been incorporated 
in, or ratified or approved by, a court order.
    [(b) Enforcement of Voluntary Written Agreements Incident 
to Divorce, Etc.--
            [(1) Elections deemed to have been made.--If a 
        person who is eligible to elect under section 1458 of 
        this title to provide a supplemental spouse annuity for 
        a former spouse voluntarily enters, incident to a 
        proceeding of divorce, dissolution, or annulment, into 
        a written agreement to elect to provide a supplemental 
        annuity for a former spouse and that agreement is 
        incorporated in or ratified or approved by a court 
        order or is filed with the court of appropriate 
        jurisdiction in accordance with applicable State law, 
        and such person then fails or refuses to make the 
        election as set forth in the voluntary agreement, such 
        person shall be deemed to have made the election if the 
        Secretary concerned--
                    [(A) receives from the former spouse 
                concerned a written request, in such manner as 
                the Secretary shall prescribe, requesting that 
                the election be deemed to have been made; and
                    [(B) receives (i) a copy of the court 
                order, regular on its face, which incorporates, 
                ratifies, or approves the written agreement of 
                such person, or (ii) a statement from the clerk 
                of the court (or other appropriate official) 
                that such agreement has been filed with the 
                court in accordance with applicable State law.
            [(2) Time limit for request to secretary 
        concerned.--An election may not be deemed to have been 
        made under paragraph (1) in the case of any person 
        unless the Secretary concerned receives a request from 
        the former spouse within one year after the date of the 
        court order or filing involved.
            [(3) Effective date of deemed election.--An 
        election deemed to have been made under paragraph (1) 
        shall become effective on the first day of the first 
        month which begins after the date of the court order or 
        filing involved.

[Sec. 1460. Supplemental spouse coverage: reductions in retired pay

    [(a) Reduction Required.--The retired pay of a person who 
elects to provide a supplemental spouse annuity shall be 
reduced each month as required under regulations prescribed 
under subsection (b).
    [(b) Regulations Determining Amount of Reduction.--
Regulations for the purposes of subsection (a) shall be 
prescribed by the Secretary of Defense. Those regulations shall 
be based upon assumptions used by the Department of Defense 
Retirement Board of Actuaries in the valuation of military 
retirement and survivor benefit programs under chapter 74 of 
this title (including assumptions relating to mortality, 
interest rates, and inflation) and shall ensure the following:
            [(1) That reductions in retired pay under this 
        section are made in amounts sufficient to provide that 
        the Supplemental Survivor Benefit Plan operates on an 
        actuarially neutral basis.
            [(2) That such reductions are stated, with respect 
        to the base amount (under the Survivor Benefit Plan) of 
        any person, as a constant percentage of that base 
        amount and, in the case of a person providing a 
        supplemental spouse annuity computed under section 
        1457(b) of this title, a constant percentage of such 
        person's base amount for each 5 percent increment 
        specified in accordance with that section.
            [(3) That the amounts of such reductions in retired 
        pay of persons participating in the Supplemental 
        Survivor Benefit Plan (stated as a percentage of base 
        amount)--
                    [(A) are based on the age of the 
                participant at the time participation in that 
                Plan is first effective under this subchapter; 
                and
                    [(B) are not determined by any other 
                demographic differentiation among participants 
                in the Plan.
            [(4) That such reductions are otherwise determined 
        in accordance with generally accepted actuarial 
        principles and practices.
    [(c) Suspension of Reduction When There Is No Spouse 
Beneficiary.--A reduction in retired pay under this section 
shall not be made in the case of any person during any month in 
which there is no eligible spouse or former spouse beneficiary.
    [(d) Adjustments in Amount of Reduction.--Whenever the 
amount of the reduction in retired pay of a participant in the 
Survivor Benefit Plan is increased under section 1452(h) of 
this title or recomputed under section 1452(i) of this title, 
the amount of the reduction in that retired pay under this 
section shall be increased or recomputed, as the case may be, 
at the same time and in the same manner as that increase or 
recomputation.
    [(e) Administrative Provisions.--The provisions of 
subsections (d) and (f) of section 1452 of this title apply 
with respect to the participation of a person in the 
Supplemental Survivor Benefit Plan in the same manner that 
those provisions apply under the Survivor Benefit Plan.

[Sec. 1460a. Incorporation of certain administrative provisions

    [(a) Applicability of Certain Provisions of SBP Law.--The 
provisions of sections 1449, 1452(g), 1453, and 1454 of this 
title are applicable to a person eligible to make an election, 
and to an election, under this subchapter in the same manner as 
if made under subchapter II.
    [(b) Other Applicable Provisions.--Except to the extent 
otherwise provided in regulations prescribed under section 
1460b of this title, the provisions of subsections (h), (i), 
and (l) of section 1450 of this title apply to supplemental 
spouse annuities in the same manner that those provisions apply 
to annuities under the Survivor Benefit Plan.

[Sec. 1460b. Regulations

    [The President shall prescribe regulations to carry out 
this subchapter. Those regulations shall, so far as 
practicable, be uniform for the uniformed services and shall, 
so far as practicable, incorporate provisions of the 
regulations in effect under section 1455 of this title.]
          * * * * * * *

       CHAPTER 74--DEPARTMENT OF DEFENSE MILITARY RETIREMENT FUND

          * * * * * * *

Sec. 1463. Payments from the Fund

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

Sec. 1465. Determination of contributions to the Fund

    (a) * * *
    (b)(1) * * *
          * * * * * * *
    (4) At the same time that the Secretary of Defense makes 
the determination required by paragraph (1) for any fiscal 
year, the Secretary shall determine the amount of the Treasury 
contribution to be made to the Fund for the next fiscal year 
under section 1466(b)(2)(E) of this title. That amount shall be 
determined in the same manner as the determination under 
paragraph (1) of the total amount of Department of Defense 
contributions to be made to the Fund during that fiscal year 
under section 1466(a) of this title, except that for purposes 
of this paragraph the Secretary, in making the calculations 
required by subparagraphs (A) and (B) of that paragraph, shall 
use the single level percentages determined under subsection 
(c)(5), rather than those determined under subsection (c)(1).
    (c)(1) Not less often than every four years, the Secretary 
of Defense shall carry out an actuarial valuation of Department 
of Defense military retirement and survivor benefit programs. 
Each actuarial valuation of such programs shall include--
            (A) a determination (using the aggregate entry-age 
        normal cost method) of a single level percentage of 
        basic pay for members of the armed forces (other than 
        the Coast Guard) on active duty (other than active duty 
        for training) or full-time National Guard duty (other 
        than full-time National Guard duty for training only), 
        to be determined without regard to section [1413, 
        1413a,] 1413a or 1414 of this title and as if benefits 
        under subchpater II of chapter 73 of this title for 
        beneficiaries 62 years of age and older were computed 
        for any fiscal year on the basis of the percentage of 
        35 percent, rather than any percentage otherwise 
        applicable for that computation for that fiscal year; 
        and
            (B) a determination (using the aggregate entry-age 
        normal cost method) of a single level percentage of 
        basic pay and of compensation (paid pursuant to section 
        206 of title 37) for members of the Ready Reserve of 
        the armed forces (other than the Coast Guard and other 
        than members on full-time National Guard duty other 
        than for training) who are not otherwise described by 
        subparagraph (A), to be determined without regard to 
        section [1413, 1413a,] 1413a or 1414 of this title and 
        as if benefits under subchapter II of chapter 73 of 
        this title for beneficiaries 62 years of age and older 
        were computed for any fiscal year on the basis of the 
        percentage of 35 percent, rather than any percentage 
        otherwise applicable for that computation for that 
        fiscal year.
Such single level percentages shall be used for the purposes of 
subsection (b)(1) and section 1466(a) of this title.
          * * * * * * *
    (4) Whenever the Secretary carries out an actuarial 
valuation under paragraph (1), the Secretary shall include as 
part of such valuation the following:
            (A) A determination of a single level percentage 
        determined in the same manner as applies under 
        subparagraph (A) of paragraph (1), but based only upon 
        the provisions of sections [1413, 1413a,] 1413a and 
        1414 of this title.
            (B) A determination of a single level percentage 
        determined in the same manner as applies under 
        subparagraph (B) of paragraph (1), but based only upon 
        the provisions of sections [1413, 1413a,] 1413a and 
        1414 of this title.
Such single level percentages shall be used for the purposes of 
subsection (b)(3).
    (5) Whenever the Secretary carries out an actuarial 
valuation under paragraph (1), the Secretary shall include as 
part of such valuation the following:
            (A) A determination of a single level percentage 
        determined in the same manner as applies under 
        subparagraph (A) of paragraph (1), but determined as if 
        benefits under subchapter II of chapter 73 of this 
        title for beneficiaries 62 years of age and older were 
        computed for any fiscal year on the basis of the 
        percentage of 35 percent, rather than any percentage 
        otherwise applicable for that computation for that 
        fiscal year.
            (B) A determination of a single level percentage 
        determined in the same manner as applies under 
        subparagraph (B) of paragraph (1), but determined as if 
        benefits under subchapter II of chapter 73 of this 
        title for beneficiaries 62 years of age and older were 
        computed for any fiscal year on the basis of the 
        percentage of 35 percent, rather than any percentage 
        otherwise applicable for that computation for that 
        fiscal year.
Such single level percentages shall be used for the purposes of 
subsection (b)(4).
    [(5)] (6) Contributions to the Fund in accordance with 
amortization schedules under paragraphs (2) and (3) shall be 
made as provided in section 1466(b) of this title.

           *       *       *       *       *       *       *

Sec. 1466. Payments into the Fund

    (a) * * *
    (b)(1) At the beginning of each fiscal year the Secretary 
of the Treasury shall promptly pay into the Fund from the 
General Fund of the Treasury the amount certified to the 
Secretary by the Secretary of Defense under paragraph (3). Such 
payment shall be the contribution to the Fund for that fiscal 
year required by sections 1465(a), 1465(b)(3), 1465(b)(4), 
1465(c)(2), and 1465(c)(3) of this title.
    (2) At the beginning of each fiscal year the Secretary of 
Defense shall determine the sum of the following:
            (A) * * *

           *       *       *       *       *       *       *

            (D) The amount for that year determined by the 
        Secretary of Defense under section 1465(b)(3) of this 
        title for the cost to the Fund arising from increased 
        amounts payable from the Fund by reason of section 
        [1413, 1413a,] 1413a or 1414 of this title.
            (E) The amount for that year determined by the 
        Secretary of Defense under section 1465(b)(4) of this 
        title for the cost to the Fund arising from increased 
        amounts payable from the Fund by reason of benefits 
        under subchapter II of chapter 73 of this title for 
        beneficiaries 62 years of age and older being computed 
        for any fiscal year on the basis of the percentage 
        greater than 35 percent.

           *       *       *       *       *       *       *

CHAPTER 76--MISSING PERSONS

           *       *       *       *       *       *       *

Sec. 1501. System for accounting for missing persons

    (a) Office for Missing Personnel.--(1) * * *

           *       *       *       *       *       *       *

    (5)(A) * * *
    [(B) For any fiscal year, the number of military and 
civilian personnel assigned or detailed to the office may not 
be less than the number requested in the President's budget for 
fiscal year 2003, unless a level below such number is expressly 
required by law.
    [(C) For any fiscal year, the level of funding allocated to 
the office within the Department of Defense may not be below 
the level requested for such purposes in the President's budget 
for fiscal year 2003, unless such a level of funding is 
expressly required by law.]
    (B)(i) For any fiscal year--
            (I) the number of full-time Department of Defense 
        personnel permanently assigned or detailed to the 
        office shall be not less than 46 members of the armed 
        forces and not less than 69 civilian employees of the 
        Department of Defense; and
            (II) the number of permanent positions authorized 
        for the office shall be not less than 46 positions for 
        members of the armed forces and not less than 69 
        positions for civilian employees.
    (ii) No reductions below the numbers assigned or authorized 
under clause (i) may be made unless expressly authorized by 
law.
    (iii) If for any reason the number of military or civilian 
personnel assigned to the office should fall below the required 
level under clause (i)(I), the Secretary of Defense shall 
promptly notify the Committees on Armed Services of the Senate 
and House of Representatives of the number of personnel so 
assigned and of the Secretary's plan to restore the staffing 
levels of the office to at least the required minimums under 
clause (i). The Secretary shall publish such notice and plan in 
the Federal Register.
    (C) For any fiscal year, the level of funding allocated to 
the office shall be not less than $16,000,000 unless a lower 
level of funding is expressly required by law.

           *       *       *       *       *       *       *

CHAPTER 79--CORRECTION OF MILITARY RECORDS

           *       *       *       *       *       *       *

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

    (a) * * *
    (b) Clearance Deadline for All Applications.--[Effective 
October 1, 2002, final] Final action by a Corrections Board on 
all applications received by the Corrections Board (other than 
those applications considered suitable for administrative 
correction) shall be completed within 18 months of receipt.

           *       *       *       *       *       *       *

Sec. 1559. Personnel limitation

    (a) Limitation.--[During fiscal years 2003, 2004, and 
2005,] Before October 1, 2008, the Secretary of a military 
department may not carry out any reduction in the number of 
military and civilian personnel assigned to duty with the 
service review agency for that military department below the 
baseline number for that agency until--
            (1) * * *

           *       *       *       *       *       *       *

CHAPTER 80--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER DUTIES

           *       *       *       *       *       *       *

Sec. 1566. Voting assistance: compliance assessments; assistance

    (a) * * *

           *       *       *       *       *       *       *

    (g) Delivery of Mail From Overseas Preceding Federal 
Elections.--(1) * * *
    (2) The Secretary shall ensure that voting materials are 
transmitted expeditiously by military postal authorities at all 
times. The Secretary shall, to the maximum extent practicable, 
implement measures to ensure that a postmark or other official 
proof of mailing date is provided on each absentee ballot 
collected at any overseas location or vessel at sea whenever 
the Department of Defense is responsible for collecting mail 
for return shipment to the United States. The Secretary shall 
ensure that the measures implemented under the preceding 
sentence do not result in the delivery of absentee ballots to 
the final destination of such ballots after the date on which 
the election for Federal office is held. Not later than [the 
date that is 6 months after the date of the enactment of the 
Help America Vote Act of 2002] April 29, 2003, the Secretary 
shall submit to Congress a report describing the measures to be 
implemented to ensure the timely transmittal and postmarking of 
voting materials and identifying the persons responsible for 
implementing such measures.
    (h) Notice of Deadlines and Requirements.--The Secretary of 
each military department, utilizing the voting assistance 
officer network established for each military installation, 
shall, to the maximum extent practicable, provide notice to 
members of the [Armed Forces] armed forces stationed at that 
installation of the last date before a general Federal election 
for which absentee ballots mailed from a postal facility 
located at that installation can reasonably be expected to be 
timely delivered to the appropriate State and local election 
officials.
    (i) Registration and Voting Information for Members and 
Dependents.--(1) The Secretary of each military department, 
using a variety of means including both print and electronic 
media, shall, to the maximum extent practicable, ensure that 
members of the [Armed Forces] armed forces and their dependents 
who are qualified to vote have ready access to information 
regarding voter registration requirements and deadlines 
(including voter registration), absentee ballot application 
requirements and deadlines, and the availability of voting 
assistance officers to assist members and dependents to 
understand and comply with these requirements.

           *       *       *       *       *       *       *

    (3) Where practicable, a special day or days shall be 
designated at each military installation for the purpose of 
informing members of the [Armed Forces] armed forces and their 
dependents of election timing, registration requirements, and 
voting procedures.

           *       *       *       *       *       *       *

                     CHAPTER 81--CIVILIAN EMPLOYEES

Sec.
1580.    Emergency essential employees: designation.
     * * * * * * *
1599e.  Senior executive compensation for nonappropriated fund 
          instrumentalities.

           *       *       *       *       *       *       *

Sec. 1588. Authority to accept certain voluntary services

    (a) Authority To Accept Services.--Subject to subsection 
(b) and notwithstanding section 1342 of title 31, the Secretary 
concerned may accept from any person the following services:
            (1) * * *

           *       *       *       *       *       *       *

            (8) Voluntary services provided to the United 
        States Military Academy, United States Naval Academy, 
        and United States Air Force Academy for the training of 
        cadets and midshipmen.

           *       *       *       *       *       *       *

    (d) Status of Persons Providing Services.--(1) Subject to 
paragraph (3), while providing voluntary services accepted 
under subsection (a) or receiving training under subsection 
(c), a person, other than a person referred to in paragraph 
(2), shall be considered to be an employee of the Federal 
Government only for purposes of the following provisions of 
law:
            (A) * * *

           *       *       *       *       *       *       *

            (D) Chapter 11 of title 18 (relating to conflicts 
        of interest), and chapters 20 and 22 of title 46 
        (relating to claims for damages or loss on navigable 
        waters).

           *       *       *       *       *       *       *

Sec. 1596a. Foreign language proficiency: special pay for proficiency 
                    beneficial for other national security interests

    (a) Authority.--The Secretary of Defense may pay special 
pay under this section to an employee of the Department of 
Defense who--
            (1) * * *
            (2) is assigned duties requiring proficiency in 
        that foreign language [during a contingency operation 
        supported by the armed forces]; and

           *       *       *       *       *       *       *

    (c) Relationship to Other Pay and Allowances.--Special pay 
under this section is in addition to any other pay or 
allowances to which the employee is entitled and shall not be 
considered base pay for any purpose.

           *       *       *       *       *       *       *

Sec. 1599e. Senior executive compensation for nonappropriated fund 
                    instrumentalities

    Notwithstanding any provisions of title 5, the Secretary of 
Defense may regulate the amount of total compensation, 
including the rate of basic pay, of senior executives employed 
by Department of Defense nonappropriated fund 
instrumentalities, to provide for parity with the total 
compensation, including basic pay, of Department of Defense 
employees in the Senior Executive Service and other similar 
senior executive positions.

           *       *       *       *       *       *       *

CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

           *       *       *       *       *       *       *

SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

           *       *       *       *       *       *       *

Sec. 1602. Basic pay

    (a) Authority To Fix Rates of Basic Pay.--The Secretary of 
Defense (subject to the provisions of this section) shall fix 
the rates of basic pay for positions established under section 
1601 of this title [in relation to the rates of basic pay 
provided in subpart D of part III of title 5 for positions 
subject to that subpart which have corresponding levels of 
duties and responsibilities] in relation to the rates of pay 
provided for Department of Defense Senior Executive, Senior 
Level, and other comparable positions.
    [(b) Maximum Rates.--A rate of basic pay fixed under 
subsection (a) for a position established under section 1601 of 
this title may not (except as otherwise provided by law) 
exceed--
            [(1) in the case of a Defense Intelligence Senior 
        Executive Service position, the maximum rate provided 
        in section 5382 of title 5;
            [(2) in the case of an Intelligence Senior Level 
        position, the maximum rate provided in section 5382 of 
        title 5; and
            [(3) in the case of any other position, the maximum 
        rate provided in section 5306(e) of title 5.]
    (b) Performance Appraisal System.--The positions referred 
to in subsection (a) shall be subject to a performance 
appraisal system which, as designed and applied, is certified 
by the Secretary of Defense as making meaningful distinctions 
based on relative performance and may be the same performance 
appraisal system established and implemented within the 
Department for members of the Senior Executive Service.

           *       *       *       *       *       *       *

CHAPTER 87--DEFENSE ACQUISITION WORKFORCE

           *       *       *       *       *       *       *

SUBCHAPTER II--DEFENSE ACQUISITION POSITIONS

           *       *       *       *       *       *       *

Sec. 1724. Contracting positions: qualification requirements

    (a) * * *

           *       *       *       *       *       *       *

    (d) Waiver.--The Secretary of Defense may waive any or all 
of the requirements of subsections (a) and (b) with respect to 
an employee of the Department of Defense or member of the armed 
forces if the Secretary determines that the individual 
possesses significant potential for advancement to levels of 
greater responsibility and authority, based on demonstrated job 
performance and qualifying experience. With respect to each 
waiver granted under this subsection, the Secretary shall set 
forth in a written document the rationale for [its decision] 
the decision of the Secretary to waive such requirements.

           *       *       *       *       *       *       *

SUBCHAPTER III--ACQUISITION CORPS

           *       *       *       *       *       *       *

Sec. 1732. Selection criteria and procedures

    (a) * * *
    (b) Eligibility Criteria.--Except as provided in 
subsections (c) and (d), only persons who meet all of the 
following requirements may be considered for service in the 
Corps:
            (1)(A) In the case of an employee, the person must 
        be currently serving in a position [within grade GS-13 
        or above of the General Schedule] in any position 
        designated by the Secretary of Defense.

           *       *       *       *       *       *       *

    (d) Waiver.--(1) Except as provided in paragraph (2), the 
Secretary of Defense may waive any or all of the requirements 
of subsection (b) with respect to an employee if the Secretary 
determines that the employee possesses significant potential 
for advancement to levels of greater responsibility and 
authority, based on demonstrated analytical and decisionmaking 
capabilities, job performance, and qualifying experience. With 
respect to each waiver granted under this subsection, the 
Secretary shall set forth in a written document the rationale 
for [its decision] the decision of the Secretary to waive such 
requirements.

           *       *       *       *       *       *       *

Sec. 1733. Critical acquisition positions

    (a) * * *
    [(b) Designation of Critical Acquisition Positions.--(1) 
The Secretary of Defense shall designate the acquisition 
positions in the Department of Defense that are critical 
acquisition positions. Such positions shall include the 
following:
            [(A) Any acquisition position which--
                    [(i) in the case of employees, is required 
                to be filled by an employee in a position 
                within grade GS-14 or above of the General 
                Schedule, or in the Senior Executive Service; 
                or
                    [(ii) in the case of members of the armed 
                forces, is required to be filled by a 
                commissioned officer of the Army, Navy, Air 
                Force, or Marine Corps who is serving in the 
                grade of lieutenant colonel, or, in the case of 
                the Navy, commander, or a higher grade.
            [(B) Other selected acquisition positions not 
        covered by subparagraph (A), including the following:
                    [(i) Program executive officer.
                    [(ii) Program manager of a major defense 
                acquisition program (as defined in section 2430 
                of this title) or of a significant nonmajor 
                defense acquisition program (as defined in 
                section 1737(a)(3) of this title).
                    [(iii) Deputy program manager of a major 
                defense acquisition program.
            [(C) Any other acquisition position of significant 
        responsibility in which the primary duties are 
        supervisory or management duties.
    [(2) The Secretary shall periodically publish a list of the 
positions designated under this subsection.]
    (b) Designation of Critical Acquisition.--(1) The Secretary 
of Defense shall designate the acquisition positions in the 
Department of Defense that are critical acquisition positions. 
Such positions shall include the following:
            (A) Program executive officer.
            (B) Program manager of a major defense acquisition 
        program (as defined in section 2430 of this title) or 
        of a significant nonmajor defense acquisition program 
        (as defined in section 1737(a)(3) of this title).
            (C) Deputy program manager of a major defense 
        acquisition program.
            (D) Any other acquisition position of significant 
        responsibility determined by the Secretary to be 
        critical.
    (2) The Secretary shall annually publish a list of the 
positions designated under this subsection.

           *       *       *       *       *       *       *

SUBCHAPTER IV--EDUCATION AND TRAINING

           *       *       *       *       *       *       *

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

    (a) Programs.--The Secretary of Defense shall conduct the 
following education and training programs:
            (1) * * *

           *       *       *       *       *       *       *

    (b) Scholarship Program Requirements.--With respect to any 
scholarship program conducted under this section, the Secretary 
of Defense and the participant shall agree in writing to the 
terms of the scholarship. The agreement shall include the 
obligations of the Secretary and the participant, as well as 
actions available for either party to take if there is a 
failure to meet the obligations under the agreement.

           *       *       *       *       *       *       *

SUBCHAPTER V--GENERAL MANAGEMENT PROVISIONS

           *       *       *       *       *       *       *

Sec. 1761. Management information system

    (a) * * *
    (b) Minimum Information.--The management information system 
shall, at a minimum, [provide for--] provide for the following:
            (1) [the] The collection and retention of 
        information concerning the qualifications, assignments, 
        and tenure of persons in the acquisition workforce[;].
            (2) [any] Any exceptions and waivers granted with 
        respect to the application of qualification, 
        assignment, and tenure policies, procedures, and 
        practices to such persons[;].
            (3) [relative] Relative promotion rates for 
        military personnel in the acquisition workforce[; and].
            [(4) collection of the information necessary for 
        the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics and the Secretary of Defense 
        to comply with the requirements of section 1762 for the 
        years in which that section is in effect.]

           *       *       *       *       *       *       *

CHAPTER 88--MILITARY FAMILY PROGRAMS AND MILITARY CHILD CARE

           *       *       *       *       *       *       *

                 SUBCHAPTER I--MILITARY FAMILY PROGRAMS

Sec.
1781. Office of Family Policy.
     * * * * * * *
[1784. Employment opportunities for military spouses.]
1784. Employment opportunities: military spouses; certain Department of 
          Defense civilian spouses subject to relocation agreements.
     * * * * * * *

[Sec. 1784. Employment opportunities for military spouses]

Sec. 1784. Employment opportunities: military spouses; certain 
                    Department of Defense civilian spouses subject to 
                    relocation agreements

    (a) * * *

           *       *       *       *       *       *       *

    (h) Inclusion of Spouses of Certain DOD Civilian Employees 
Subject to Relocation Agreements.--(1) For the purposes of this 
section, the spouse of a civilian employee described in 
paragraph (2) shall be considered to be the spouse of a member 
of the armed forces.
    (2) An employee described in this paragraph is a Department 
of Defense employee who, pursuant to a mandatory mobility 
agreement executed as a condition of employment or pursuant to 
another civilian mobility program of the Department of Defense, 
has had a change of permanent duty assignment (A) that was 
based on the needs of the Government, and (B) that required a 
relocation of the employee's residence.

           *       *       *       *       *       *       *

                    PART III--TRAINING AND EDUCATION

    Chap.
                                                               Sec.
      Training Generally............................................2001
     * * * * * * *
      Educational Assistance for Persons Enlisting for Active Duty.2141]
      Educational Assistance for Persons Enlisting for Active Duty..2141
2151Professional Military Education...................................

           *       *       *       *       *       *       *

                    CHAPTER 101--TRAINING GENERALLY

Sec.
2002.    Dependents of members of armed forces: language training.
     * * * * * * *
2015.    Defense counterproliferation fellowship program.

           *       *       *       *       *       *       *

Sec. 2007. Payment of tuition for off-duty training or education

    (a) * * *
    (b)(1) In the case of a commissioned officer on active duty 
or full-time National Guard duty, the Secretary of the military 
department concerned may not pay charges under subsection (a) 
unless the officer agrees to remain on active duty or full-time 
National Guard duty for a period of at least two years after 
the completion of the training or education for which the 
charges are paid.
    (2) Notwithstanding paragraph (1), the Secretary of the 
military department may reduce or waive the active duty service 
obligation--
            (A) in the case of a commissioned officer who is 
        subject to mandatory separation;
            (B) in the case of a commissioned officer who has 
        completed the period of active duty service in support 
        of a contingency operation; or
            (C) in other exigent circumstances as determined by 
        the Secretary.
    (c)[(1) Subject to paragraphs (2) and (3), the Secretary of 
the Army may pay not more than 75 percent of the charges of an 
educational institution for the tuition or expenses of an 
officer in the Selected Reserve of the Army National Guard or 
the Army Reserve for education or training of such officer in a 
program leading to a baccalaureate degree.] (1) Subject to 
paragraphs (2) and (3), the Secretary of the Army may pay the 
charges of an educational institution for the tuition or 
expenses of an officer in the Selected Reserve of the Army 
National Guard or the Army Reserve for education or training of 
such officer.

           *       *       *       *       *       *       *

Sec. 2015. Defense counterproliferation fellowship program

    (a) Program Authority.--The Secretary of Defense may carry 
out a program under which foreign military defense personnel 
are selected to attend Department of Defense courses and 
programs in counterproliferation and nonproliferation matters 
in order to improve the ability of the foreign military defense 
personnel to contribute to halting the illicit acquisition or 
transportation of weapons of mass destruction or of materials 
that support the development or use of such weapons.
    (b) Authority to Pay for Costs of Participants.--The 
Secretary of Defense may pay for all costs (including 
transportation, travel, and subsistence costs) associated with 
the attendance by a participant at courses and programs in the 
program under this section.
    (c) Participants.--(1) The following persons may be 
selected for participation in the program under this section:
            (A) Foreign military officers.
            (B) Foreign ministry of defense officials.
    (2) Participants in the program shall be selected by the 
Secretary of Defense based upon recommendations made by the 
commanders of the regional unified combatant commands.
    (d) Authorized Program Activities.--Participants in the 
program may be selected for attendance at, and may be authorize 
to attend, any of the following:
            (1) Department of Defense professional military 
        educational institutions.
            (2) Regional centers for security studies of the 
        Department of Defense.
    (e) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of the program under this 
section.

           *       *       *       *       *       *       *

CHAPTER 103--SENIOR RESERVE OFFICERS' TRAINING CORPS

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Termination of Authority.--No contract may be entered 
into under subsection (a)(1) after December 31, 2006.]

           *       *       *       *       *       *       *

Sec. 2107. Financial assistance program for specially selected members

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) * * *

           *       *       *       *       *       *       *

    (5)(A) The Secretary of the Army may provide an individual 
who received a commission as a Reserve officer in the Army from 
a military junior college through a program under this chapter 
and who does not have a baccalaureate degree with financial 
assistance for pursuit of a baccalaureate degree.
    (B) Such assistance is in addition to any financial 
assistance provided under paragraph (1), (3), or (4).
    (C) The agreement and reimbursement requirements 
established in section 2005 of this title are applicable to 
financial assistance under this paragraph.
    (D) An officer receiving financial assistance under this 
paragraph shall be attached to the unit of the Army at the 
educational institution at which the officer is pursuing a 
baccalaureate degree and shall be considered to be a member of 
the Senior Reserve Officers' Training Corps on inactive duty 
for training, as defined in section 101(23) of title 38.
    (E) A qualified officer who did not previously receive 
financial assistance under this section is eligible to receive 
educational assistance under this paragraph.
    (F) A Reserve officer may not be called or ordered to 
active duty for a deployment while participating in the program 
under this paragraph.
    (G) Any service obligation incurred by an officer under an 
agreement entered into under this paragraph shall be in 
addition to any service obligation incurred by that officer 
under any other provision of law or agreement.
    (H) The amount obligated during any fiscal year under this 
paragraph and paragraph (4) of section 2107a(c) of this title 
may not exceed a total of $1,500,000.

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) * * *

           *       *       *       *       *       *       *

    (4)(A) The Secretary of the Army may provide an individual 
who received a commission as a Reserve officer in the Army from 
a military junior college through a program under this chapter 
and who does not have a baccalaureate degree with financial 
assistance for pursuit of a baccalaureate degree.
    (B) Such assistance is in addition to any provided under 
paragraph (1) or (2).
    (C) The agreement and reimbursement requirements 
established in section 2005 of this title are applicable to 
financial assistance under this paragraph.
    (D) An officer receiving financial assistance under this 
paragraph shall be attached to the unit of the Army at the 
educational institution at which the officer is pursuing a 
baccalaureate degree and shall be considered to be a member of 
the Senior Reserve Officers' Training Corps on inactive duty 
for training, as defined in section 101(23) of title 38.
    (E) A qualified officer who did not previously receive 
financial assistance under this section is eligible to receive 
educational assistance under this paragraph.
    (F) A Reserve officer may not be called or ordered to 
active duty for a deployment while participating in the program 
under this paragraph.
    (G) Any service obligation incurred by an officer under an 
agreement entered into under this paragraph shall be in 
addition to any service obligation incurred by that officer 
under any other provision of law or agreement.
    (H) As provided in subparagraph (H) of section 2107(c)(5) 
of this title, the amount obligated during any fiscal year 
under this paragraph and paragraph (5) of section 2107(c) of 
this title may not exceed a total of $1,500,000.

           *       *       *       *       *       *       *

CHAPTER 104--UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES

           *       *       *       *       *       *       *

Sec. 2114. Students: selection; status; obligation

    (a) * * *
    (b) [Medical students shall be commissioned officers of a 
uniformed service as determined under regulations prescribed by 
the Secretary of Defense after consulting with the Secretary of 
Health and Human Services. Notwithstanding any other provision 
of law, they shall serve on active duty in pay grade O-1 with 
full pay and allowances of that grade.] They shall be appointed 
in a regular component of the uniformed services and shall 
serve on active duty as a second lieutenant or ensign (or the 
equivalent). Upon graduation they shall be appointed in a 
regular component, if qualified, unless they are covered by 
section 2115 of this title. Medical students who graduate shall 
be required, except as provided in section 2115 of this title, 
to serve thereafter on active duty under such regulations as 
the Secretary of Defense or the Secretary of Health and Human 
Services, as appropriate, may prescribe for not less than seven 
years, unless sooner released. Upon completion of, or release 
from, the active-duty service obligation, a member of the 
program who served on active-duty for less than 10 years shall 
serve in the Ready Reserve for the period specified in the 
following table:

Period of Service                                          Ready Reserve
    on Active Duty                                            Obligation

    Less than 8 years...................................         6 years
    8 years or more, but less than 9....................         4 years
    9 years or more, but less than 10...................         2 years

The service credit exclusions specified in section 2126 of this 
title shall apply to students covered by this section.
          * * * * * * *

        SUBCHAPTER II--NURSE OFFICER CANDIDATE ACCESSION PROGRAM

          * * * * * * *

Sec. 2130a. Financial assistance: nurse officer candidates

    (a) Bonus Authorized.--(1) A person described in subsection 
(b) who, during the period beginning on November 29, 1989, and 
ending on December 31, [2004] 2005, executes a written 
agreement in accordance with subsection (c) to accept an 
appointment as a nurse officer may, upon the acceptance of the 
agreement by the Secretary concerned, be paid an accession 
bonus of not more than $10,000. The bonus shall be paid in 
periodic installments, as determined by the Secretary concerned 
at the time the agreement is accepted, except that the first 
installment may not exceed $5,000.
          * * * * * * *

 CHAPTER [107] 106A--EDUCATIONAL ASSISTANCE FOR PERSONS ENLISTING FOR 
                              ACTIVE DUTY

          * * * * * * *

              CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

Sec.
2151.    Definitions
2152.    Professional military education: general requirements.
2153.    Capstone course: newly selected general and flag officers.
2154.    Joint professional military education: three-phase approach.
2155.    Intermediate level service colleges: written examination for 
          selection for attendance.
2156.    Joint professional military education phase II program of 
          instruction.
2157.    Intermediate and senior level service colleges; Joint Forces 
          Staff College: duration of principle course of instruction.
2158.    Annual report to Congress.

Sec. 2151. Definitions

    (a) Joint Professional Military Education.--Joint 
professional military education consists of the rigorous and 
thorough instruction and examination of officers of the armed 
forces in an environment designed to promote a theoretical and 
practical in-depth understanding of joint matters and, 
specifically, of the subject matter covered. The subject matter 
to be covered by joint professional military education shall 
include at least the following:
                    (1) Integrated employment of land, sea, and 
                air forces.
                    (2) National military strategy.
                    (3) Strategic planning.
                    (4) Contingency planning.
                    (5) Command and control of combat 
                operations under unified command.
                    (6) Joint and combined operations.
                    (7) Joint doctrine.
                    (8) Joint logistics.
                    (9) Joint communications.
                    (10) Joint intelligence.
                    (11) Campaign planning.
                    (12) Joint military command and control 
                systems and the interface of those systems with 
                national command systems.
                    (13) Joint force development, including 
                mobilization.
                    (14) Joint requirements development.
                    (15) Military history.
                    (16) Awareness of cultures in areas outside 
                of the United States where United States forces 
                may operate or of forces of foreign countries 
                with whom United States forces may operate.
    (b) Other Definitions.--In this chapter:
            (1) The term ``senior level service school'' means 
        any of the following:
                    (A) The Army War College.
                    (B) The College of Naval Warfare.
                    (C) The Air War College.
                    (D) The Marine Corps University.
            (2) The term ``intermediate level service school'' 
        means any of the following:
                    (A) The United States Army Command and 
                General Staff College.
                    (B) The College of Naval Command and Staff.
                    (C) The Air Command and Staff College.
                    (D) The Marine Corps Command and Staff 
                College.
    (b) Joint Military Education Schools.--The Secretary of 
Defense, with the advice and assistance of the Chairman of the 
Joint Chiefs of Staff, shall periodically review and revise the 
curriculum of each school of the National Defense University 
(and of any other joint professional military education school) 
to enhance the education and training of officers in joint 
matters. The Secretary shall require such schools to maintain 
rigorous standards for the military education of officers with 
the joint specialty.
    (c) Other Professional Military Education Schools.--The 
Secretary of Defense shall require that each Department of 
Defense school concerned with professional military education 
periodically review and revise its curriculum for senior and 
intermediate grade officers in order to strengthen the focus 
on--
            (1) joint matters; and
            (2) preparing officers for joint duty assignments.

Sec. 2152. Joint professional military education: general requirements

    (a) In General.--The Secretary of Defense shall implement a 
coherent and comprehensive framework for the joint professional 
military education of officers, including officers nominated 
under section 661 of this title for the joint specialty.

Sec. 2153. Capstone course: newly selected general and flag officers

    (a) Requirement.--Each officer selected for promotion to 
the grade of brigadier general or, in the case of the Navy, 
rear admiral (lower half) shall be required, after such 
selection, to attend a military education course designed 
specifically to prepare new general and flag officers to work 
with the other armed forces.
    (b) Waiver Authority.--(1) Subject to paragraph (2), the 
Secretary of Defense may waive subsection (a)--
            (A) in the case of an officer whose immediately 
        previous assignment was in a joint duty assignment and 
        who is thoroughly familiar with joint matters;
            (B) when necessary for the good of the service;
            (C) in the case of an officer whose proposed 
        selection for promotion is based primarily upon 
        scientific and technical qualifications for which joint 
        requirements do not exist (as determined under 
        regulations prescribed under section 619(e)(4) of this 
        title); and
            (D) in the case of a medical officer, dental 
        officer, veterinary officer, medical service officer, 
        nurse, biomedical science officer, or chaplain.
    (2) The authority of the Secretary of Defense to grant a 
waiver under paragraph (1) may only be delegated to the Deputy 
Secretary of Defense, an Under Secretary of Defense, or an 
Assistant Secretary of Defense. Such a waiver may be granted 
only on a case-by-case basis in the case of an individual 
officer.

Sec. 2154. Joint professional military education: three-phase approach

    (a) Three-Phase Approach.--The Secretary of Defense shall 
implement a three-phase approach to joint professional military 
education, as follows:
            (1) There shall be a course of instruction, 
        designated and certified by the Secretary of Defense as 
        Phase I instruction, consisting all the elements of a 
        joint professional military education (as specified in 
        section 2151(a) of this title), in addition to the 
        principal curriculum taught to all officers at an 
        intermediate level service school.
            (2) There shall be a course of instruction, 
        designated and certified by the Secretary of Defense as 
        Phase II instruction, consisting of a joint 
        professional military education curriculum taught in 
        residence at--
                    (A) the Joint Forces Staff College; or
                    (B) a senior level service school that has 
                been designated and certified by the Secretary 
                of Defense as a joint professional military 
                education institution.
            (3) There shall be a course of instruction, 
        designated and certified by the Secretary of Defense as 
        the Capstone course, for officers selected for 
        promotion to the grade of brigadier general or, in the 
        case of the Navy, rear admiral (lower half) and offered 
        in accordance with section 2153 of this title.
    (b) Sequenced Approach.--The Secretary shall require the 
sequencing of joint professional military education so that the 
standard sequence of assignments for such education requires an 
officer to complete Phase I instruction before proceeding to 
Phase II instruction, as provided in section 2156(a) of this 
title.

Sec. 2155. Intermediate level service school: written examination for 
                    selection for attendance

    (a) Requirement.--The Secretary of each military department 
shall require that performance on a comprehensive written 
examination shall constitute not less than 20 percent of the 
evaluation criteria for selection of any officer for full-time 
attendance at an intermediate level service school under the 
jurisdiction of the Secretary. Such an examination shall be 
designed so as to require substantive knowledge of military 
history, national military strategy, service and joint 
doctrine, and such other subjects as the Secretary may require. 
Such an examination shall be required for each class entering 
an intermediate level service school after September 30, 2007.
    (b) Selection From Different Service.--The Secretary of a 
military department, in considering candidates for full-time 
attendance at an intermediate level service school under the 
jurisdiction of the Secretary who are officers of an armed 
force other than the armed force that administers that service 
school, shall consider such an officer to be qualified for 
selection for such attendance if the officer has met all the 
requirements for attendance at the equivalent intermediate 
level service school of that officer's own armed force.

Sec. 2156. Joint professional military education phase II program of 
                    instruction

    (a) Prerequisite of Completion of Joint Professional 
Military Education I Program of Instruction.--(1) After 
September 30, 2009, an officer of the armed forces may not be 
accepted for, or assigned to, a program of instruction 
designated by the Secretary of Defense as joint professional 
military education Phase II unless the officer has successfully 
completed a program of instruction designated by the Secretary 
of Defense as joint professional military education Phase I.
    (2) The Chairman of the Joint Chiefs of Staff may grant 
exceptions to the requirement under paragraph (1). Such an 
exception may be granted only on a case-by-case basis for 
compelling cause, as determined by the Chairman. An officer 
selected to receive such an exception shall be required to 
demonstrate a knowledge of joint matters and other aspects of 
the Phase I curriculum that, to the satisfaction of the 
Chairman, qualifies the officer to meet the minimum 
requirements established for entry into Phase II instruction 
without first completing Phase I instruction. The number of 
officers selected to attend an offering of the principal course 
of instruction at the Joint Forces Staff College or a senior 
level service school designated by the Secretary of Defense as 
a joint professional military education institution who have 
not completed Phase I instruction should comprise no more than 
10 percent of the total number of officers selected.
    (b) Phase II Requirements.--The Secretary shall require 
that the curriculum for Phase II joint professional military 
education at any school--
            (1) focus on developing joint attitudes and 
        perspectives and honing joint warfighting skills; and
            (2) be structured --
                    (A) so as to adequately prepare students to 
                perform effectively in an assignment to a 
                joint, multiservice organization; and
                    (B) so that students progress from a basic 
                knowledge of joint matters learned in Phase I 
                instruction to the level of expertise necessary 
                for successful performance in the joint arena.
    (c) Curriculum Content.--In addition to the subjects 
specified in section 2151(a) of this title, the curriculum for 
Phase II joint professional military education shall include 
the following:
            (1) National security strategy.
            (2) Theater strategy and campaigning.
            (3) Joint planning processes and systems.
            (4) Joint, interagency, and multinational 
        capabilities and the integration of those capabilities.
    (d) Student Ratio; Faculty Ratio.--(1) For courses of 
instruction in a Phase II program of instruction that is 
offered at senior level service school that has been designated 
by the Secretary of Defense as a joint professional military 
education institution--
            (1) the percentage of students enrolled in any such 
        course who are officers of the armed force that 
        administers the school may not exceed 60 percent, with 
        the remaining services proportionally represented; and
            (2) of the faculty at the school who are active-
        duty officers who provide instruction in such courses, 
        the percentage who are officers of the armed force that 
        administers the school may not exceed 60 percent, with 
        the remaining services proportionally represented.

Sec. 2157. Intermediate and senior level service schools; Joint Forces 
                    Staff College: duration of principle course of 
                    instruction

    (a) Service Schools.--The duration of the principal course 
of instruction offered at each intermediate level service 
school and each senior level service school may not be less 
than 10 months of resident instruction. The Secretary of 
Defense may waive the requirement in the preceding sentence 
during a period of war or during a national emergency declared 
by the President or the Congress.
    (b) Joint Forces Staff College.--(1) The duration of the 
principal course of instruction offered at the Joint Forces 
Staff College may not be less than 10 weeks of resident 
instruction.
    (2) In this subsection, the term ``principal course of 
instruction'' means any course of instruction offered at the 
Joint Forces Staff College as Phase II joint professional 
military education.

Sec. 2158. Annual report to Congress

    The Secretary of Defense shall include in the annual report 
of the Secretary to Congress under section 113(c) of this 
title, for the period covered by the report, the following 
information (which shall be shown for the Department of Defense 
as a whole and separately for the Army, Navy, Air Force, and 
Marine Corps and each reserve component):
            (1) The number of officers who successfully 
        completed a joint professional military education phase 
        II course and were not selected for promotion.
            (2) The number of officer students and faculty 
        members assigned by each service to the professional 
        military schools of the other services and to the joint 
        schools.

CHAPTER 108--DEPARTMENT OF DEFENSE SCHOOLS

           *       *       *       *       *       *       *

Sec. 2167. National Defense University: admission of private sector 
                    civilians to professional military education 
                    program

    (a) Authority for Admission.--The Secretary of Defense may 
permit eligible private sector employees who work in 
organizations relevant to national security to receive 
instruction at the National Defense University in accordance 
with this section. No more than the equivalent of [10] 20 full-
time student positions may be filled at any one time by private 
sector employees enrolled under this section. Upon successful 
completion of the course of instruction in which enrolled, any 
such private sector employee may be awarded an appropriate 
diploma or degree under section 2165 of this title.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Sec. 2193b. Improvement of education in technical fields: program for 
                    support of elementary and secondary education in 
                    science, mathematics, and technology

    (a) * * *

           *       *       *       *       *       *       *

    (c) STARBASE Academies.--(1) * * *
    (2) The Secretary of Defense shall establish guidelines, 
criteria, and a process for the establishment of STARBASE 
programs in addition to those in operation on [the date of the 
enactment of this section] October 5, 1999.
    [(3) The Secretary may support the establishment and 
operation of any academy in excess of two academies in a State 
only if the Secretary has first authorized in writing the 
establishment of the academy and the costs of the establishment 
and operation of the academy are paid out of funds provided by 
sources other than the Department of Defense. Any such costs 
that are paid out of appropriated funds shall be considered as 
paid out of funds provided by such other sources if such 
sources fully reimburse the United States for the costs.]
    (3)(A) Subject to subparagraph (B), the Secretary may not 
support the establishment in any State of more than two 
academies.
    (B) The Secretary may waive the limitation in subparagraph 
(A). Any such waiver shall be made under criteria to be 
prescribed by the Secretary.

           *       *       *       *       *       *       *

PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *

                 CHAPTER 131--PLANNING AND COORDINATION

Sec.
2201.    Apportionment of funds: authority for exemption; excepted 
          expenses.
     * * * * * * *
[2219.    Retention of morale, welfare, and recreation funds by military 
          installations: limitation.]
     * * * * * * *
2222.    Defense business systems: architecture, accountability, and 
          modernization.

           *       *       *       *       *       *       *

Sec. 2215. Transfer of funds to other departments and agencies: 
                    limitation

    [(a) Certification Required.--]Funds available for military 
functions of the Department of Defense may not be made 
available to any other department or agency of the Federal 
Government pursuant to a provision of law enacted after 
November 29, 1989, unless, not less than 30 days before such 
funds are made available to such other department or agency, 
the Secretary of Defense submits to the [congressional 
committees specified in subsection (b)] congressional defense 
committees a certification that making those funds available to 
such other department or agency is in the national security 
interest of the United States.
    [(b) Congressional Committees.--The committees referred to 
in subsection (a) are--
            [(1) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            [(2) the Committee on Armed Services and the 
        Committee on Appropriations of the House of 
        Representatives.]

           *       *       *       *       *       *       *

Sec. 2222. Defense business systems: architecture, accountability, and 
                    modernization

    (a) Conditions for Obligation of Funds for Defense Business 
System Modernization.--Effective January 1, 2005, funds 
appropriated to the Department of Defense may not be obligated 
for a defense business system modernization that will have a 
total cost in excess of $1,000,000 unless--
            (1) the approval authority designated for the 
        defense business system certifies to the Defense 
        Business Systems Management Committee established by 
        section 186 of this title that the defense business 
        system modernization--
                    (A) is in compliance with the enterprise 
                architecture developed under subsection (b), or 
                such compliance is waived in writing by the 
                approval authority as a result of the 
                investment review process conducted under 
                subsection (d) for the defense business system 
                modernization; and
                    (B) will be acquired or developed in a 
                manner consistent with the system acquisition 
                regulations and instructions of the Department 
                of Defense; and
            (2) the Defense Business Systems Management 
        Committee approves the certification by the approval 
        authority.
    (b) Enterprise Architecture for Defense Business Systems.--
Not later than September 30, 2005, the Secretary of Defense, 
acting through the Defense Business Systems Management 
Committee, shall develop--
            (1) an enterprise architecture to cover all defense 
        business systems, and the functions and activities 
        supported by defense business systems, which shall be 
        sufficiently defined to effectively guide, constrain, 
        and permit implementation of interoperable defense 
        business system solutions and consistent with the 
        policies and procedures established by the Director of 
        the Office of Management and Budget, and
            (2) a transition plan for implementing the 
        enterprise architecture for defense business systems.
    (c) Approval Authorities and Accountability for Defense 
Business Systems.--The Secretary of Defense shall delegate 
responsibility for the planning, design, acquisition, 
deployment, operation, maintenance, modernization, and 
oversight of defense business systems as follows:
            (1) The Under Secretary of Defense for Acquisition, 
        Technology and Logistics shall be responsible and 
        accountable for any defense business system the primary 
        purpose of which is to support acquisition activities, 
        logistics activities, or installations and environment 
        activities of the Department of Defense.
            (2) The Under Secretary of Defense (Comptroller) 
        shall be responsible and accountable for any defense 
        business system the primary purpose of which is to 
        support financial management activities or strategic 
        planning and budgeting activities of the Department of 
        Defense.
            (3) The Under Secretary of Defense for Personnel 
        and Readiness shall be responsible and accountable for 
        any defense business system the primary purpose of 
        which is to support human resource management 
        activities of the Department of Defense.
            (4) The Assistant Secretary of Defense for Networks 
        and Information Integration and the Chief Information 
        Officer of the Department of Defense shall be 
        responsible and accountable for any defense business 
        system the primary purpose of which is to support 
        information technology infrastructure or information 
        assurance activities of the Department of Defense.
            (5) The Deputy Secretary of Defense or an Under 
        Secretary of Defense, as designated by the Secretary of 
        Defense, shall be responsible for any defense business 
        system the primary purpose of which is to support any 
        activity of the Department of Defense not covered by 
        paragraphs (1) through (4).
    (d) Defense Business System Investment Review.--(1) The 
Secretary of Defense shall require each approval authority 
designated under subsection (c) to establish, not later than 
March 15, 2005, an investment review process, consistent with 
section 11312 of title 40, to review the planning, design, 
acquisition, development, deployment, operation, maintenance, 
modernization, and project cost benefits and risks of all 
defense business systems for which the approval authority is 
responsible. The investment review process so established shall 
specifically address the responsibilities of approval 
authorities under subsection (a).
    (2) The review of defense business systems under the 
investment review process shall include the following:
            (A) Review and approval by an investment review 
        board of each defense business system as an investment 
        before the obligation of funds on the system.
            (B) Periodic review, but not less than annually, of 
        every defense business system investment.
            (C) Representation on each investment review board 
        by appropriate officials from among the armed forces, 
        combatant commands, the Joint Chiefs of Staff, and 
        Defense Agencies.
            (D) Use of threshold criteria to ensure an 
        appropriate level of review within the Department of 
        Defense of, and accountability for, defense business 
        system investments depending on scope, complexity, and 
        cost.
    (e) Budget Information.--In the materials that the 
Secretary submits to Congress in support of the budget 
submitted by the President to Congress under section 1105 of 
title 31 for fiscal year 2006 and fiscal years thereafter, the 
Secretary of Defense shall--
            (1) identify the approval authority for each 
        defense business system; and
            (2) for each defense business system for which 
        funding is proposed in the budget--
                    (A) certify that the defense business 
                system complies with the defense business 
                enterprise architecture; or
                    (B) explain why funds for such system are 
                necessary to maintain a mission critical or 
                mission essential system of the Department of 
                Defense, notwithstanding its noncompliance with 
                the defense business enterprise architecture.
    (f) Congressional Reports.--Not later than March 15 of each 
year from 2005 through 2009, the Secretary of Defense shall 
submit to the congressional defense committees a report on 
Department of Defense compliance with the requirements of this 
section. The first report shall define plans and commitments 
for meeting the requirements of subsection (a), including 
specific milestones and performance measures. Subsequent 
reports shall--
            (1) describe actions taken and planned for meeting 
        the requirements of subsection (a), including--
                    (A) specific milestones and actual 
                performance against specified performance 
                measures, and any revision of such milestones 
                and performance measures; and
                    (B) specific actions on the defense 
                business system modernizations submitted for 
                certification under such subsection;
            (2) identify the number of defense business system 
        modernizations so certified;
            (3) identify any defense business system 
        modernization with an obligation in excess of 
        $1,000,000 during the preceding fiscal year that was 
        not certified under subsection (a), and the reasons for 
        the waiver; and
            (4) discuss specific improvements in business 
        operations and cost savings resulting from successful 
        defense business systems modernization efforts.
    (g) Definitions.--In this section:
            (1) The term ``approval authority'', with respect 
        to a defense business system, means the Department of 
        Defense official responsible for the defense business 
        system, as designated by subsection (c).
            (2) The term ``defense business system'' means an 
        information system, other than a national security 
        system, operated by, for, or on behalf of the 
        Department of Defense, including financial systems, 
        mixed systems, financial data feeder systems, and 
        information technology and information assurance 
        infrastructure, used to support business activities, 
        such as acquisition, financial management, logistics, 
        strategic planning and budgeting, installations and 
        environment, and human resource management.
            (3) The term ``defense business system 
        modernization'' means--
                    (A) the acquisition or development of a new 
                defense business system; or
                    (B) any significant modification or 
                enhancement of an existing defense business 
                system (other than necessary to maintain 
                current services).
            (4) The term ``enterprise architecture'' has the 
        meaning given that term in section 3601(4) of title 44.
            (5) The terms ``information system'' and 
        ``information technology'' have the meanings given 
        those terms in section 11101 of title 40.
            (6) The term ``national security system'' has the 
        meaning given that term in section 2315 of this title.

           *       *       *       *       *       *       *

Sec. 2224. Defense Information Assurance Program

    (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

CHAPTER 134--MISCELLANEOUS ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *

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

Sec.
2241.    Availability of appropriations for certain purposes.
     * * * * * * *
[2246.    Department of Defense golf courses: limitation on use of 
          appropriated funds.
[2247.    Use of appropriated funds for operation of Armed Forces 
          Recreation Center, Europe: limitation.]
     * * * * * * *

CHAPTER 137--PROCUREMENT GENERALLY

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    [(f) Contract Period.--The head of an agency entering into 
a task or delivery order contract under this section may 
provide for the contract to cover a total period of not more 
than five years.]
    (f) Contract Period.--The head of an agency entering into a 
task or delivery order contract under this section may provide 
for the contract to cover any base period up to five years and 
may extend the contract period for one or more successive 
periods pursuant to an option provided in the contract or a 
modification to the contract.

           *       *       *       *       *       *       *

Sec. 2305a. Design-build selection procedures

    (a) * * *

           *       *       *       *       *       *       *

    (f) Special Authority for Military Construction Projects.--
(1) The Secretary of a military department, and the Secretary 
of Defense with respect to matters concerning the Defense 
Agencies, may use funds available to the Secretary under 
section 2807(a) or 18233(e) of this title to accelerate the 
design effort in connection with a military construction 
project for which the two-phase selection procedures described 
in subsection (c) are used to select the contractor for both 
the design and construction portion of the project before the 
project is specifically authorized by law and before funds are 
appropriated for the construction portion of the project. 
Notwithstanding the limitations contained in such sections, use 
of such funds for the design portion of a military construction 
project may continue despite the subsequent authorization of 
the project. The advance notice requirement of section 2807(b) 
of this title shall continue to apply whenever the estimated 
cost of the design portion of the project exceeds the amount 
specified in such section.
    (2) Any military construction contract that provides for an 
accelerated design effort, as authorized by paragraph (1), 
shall include as a condition of the contract that the liability 
of the United States in a termination for convenience may not 
exceed costs above the costs attributable to the final design 
of the project.
    (3) Not more than 36 military construction projects 
containing the accelerated design effort authorized by 
paragraph (1) may be carried out.
    (4) Not later than March 1, 2007, the Secretary of Defense 
shall submit to the congressional defense committees a report 
evaluating the usefulness of the authority provided by this 
subsection in expediting the design and construction of 
military construction projects. The authority provided by this 
subsection expires September 30, 2008, except that, if the 
report required by this paragraph is not submitted by March 1, 
2007, the authority shall expire on that date.

Sec. 2306b. Multiyear contracts: acquisition of property

    (a) * * *

           *       *       *       *       *       *       *

    (g) Contract Cancellation Ceilings Exceeding 
$100,000,000.--(1) Before any contract described in subsection 
(a) that contains a clause setting forth a cancellation ceiling 
in excess of $100,000,000 may be awarded, the head of the 
agency concerned shall give written notification of the 
proposed contract and of the proposed cancellation ceiling for 
that contract to the [Committee on Armed Services and the 
Committee on Appropriations of the Senate and the Committee on 
Armed Services and the Committee on Appropriations of the House 
of Representatives] congressional defense committees, and such 
contract may not then be awarded until the end of a period of 
30 days beginning on the date of such notification.
    (2) In the case of a contract described in subsection (a) 
with a cancellation ceiling described in paragraph (1), if the 
budget for the contract does not include proposed funding for 
the costs of contract cancellation up to the cancellation 
ceiling established in the contract, the head of the agency 
concerned shall, as part of the certification required by 
subsection (i)(1)(A), give written notification to the 
congressional defense committees of--
            (A) the cancellation ceiling amounts planned for 
        each program year in the proposed multiyear procurement 
        contract, together with the reasons for the amounts 
        planned;
            (B) the extent to which costs of contract 
        cancellation are not included in the budget for the 
        contract; and
            (C) a financial risk assessment of not including 
        budgeting for costs of contract cancellation, including 
        proposed funding sources to meet such cancellation 
        costs if the contract is canceled.

           *       *       *       *       *       *       *

Sec. 2306c. Multiyear contracts: acquisition of services

    (a) * * *

           *       *       *       *       *       *       *

    (d) Restrictions Applicable Generally.--(1) The head of an 
agency may not initiate under this section a contract for 
services that includes an unfunded contingent liability in 
excess of $20,000,000 unless the [committees of Congress named 
in paragraph (5)] congressional defense committees are notified 
of the proposed contract at least 30 days in advance of the 
award of the proposed contract.

           *       *       *       *       *       *       *

    (3) The head of an agency may not terminate a multiyear 
procurement contract for services until 10 days after the date 
on which notice of the proposed termination is provided to the 
[committees of Congress named in paragraph (5)] congressional 
defense committees.
    (4) Before any contract described in subsection (a) that 
contains a clause setting forth a cancellation ceiling in 
excess of $100,000,000 may be awarded, the head of the agency 
concerned shall give written notification of the proposed 
contract and of the proposed cancellation ceiling for that 
contract to the [committees of Congress named in paragraph (5)] 
congressional defense committees, and such contract may not 
then be awarded until the end of a period of 30 days beginning 
on the date of such notification.
    [(5) The committees of Congress referred to in paragraphs 
(1), (3), and (4) are as follows:
            [(A) The Committee on Armed Services and the 
        Committee on Appropriations of the Senate.
            [(B) The Committee on Armed Services and the 
        Committee on Appropriations of the House of 
        Representatives.]
    (5) In the case of a contract described in subsection (a) 
with a cancellation ceiling described in paragraph (4), if the 
budget for the contract does not include proposed funding for 
the costs of contract cancellation up to the cancellation 
ceiling established in the contract, the head of the agency 
concerned shall give written notification to the congressional 
defense committees of--
            (A) the cancellation ceiling amounts planned for 
        each program year in the proposed multiyear procurement 
        contract, together with the reasons for the amounts 
        planned;
            (B) the extent to which costs of contract 
        cancellation are not included in the budget for the 
        contract; and
            (C) a financial risk assessment of not including 
        budgeting for costs of contract cancellation, including 
        proposed funding sources to meet such cancellation 
        costs if the contract is canceled.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

SUBCHAPTER I--ACQUISITION AND CROSS-SERVICING AGREEMENTS

           *       *       *       *       *       *       *

Sec. 2349. Overseas Workload Program

    (a) * * *

           *       *       *       *       *       *       *

    (d) Definition.--In this section, the term ``major non-NATO 
ally'' has the meaning given that term in section [2350a(i)(3)] 
2350a(i)(2) of this title.

           *       *       *       *       *       *       *

SUBCHAPTER II--OTHER COOPERATIVE AGREEMENTS

           *       *       *       *       *       *       *

Sec. 2350b. Cooperative projects under Arms Export Control Act: 
                    acquisition of defense equipment

    (a) * * *

           *       *       *       *       *       *       *

    (g) Nothing in this section shall be construed as 
authorizing the Secretary of Defense--
            (1) [the Secretary of Defense] to waive any of the 
        financial management responsibilities administered by 
        the Secretary of the Treasury; or

           *       *       *       *       *       *       *

                 CHAPTER 139--RESEARCH AND DEVELOPMENT

Sec.
2351.    Availability of appropriations.
     * * * * * * *
[2370a.   Medical countermeasures against biowarfare threats: allocation 
          of funding between near-term and other threats.]
     * * * * * * *

[Sec. 2370a. Medical countermeasures against biowarfare threats: 
                    allocation of funding between near-term and other 
                    threats

    [(a) Allocation Between Near-Term and Other Threats.--Of 
the funds appropriated or otherwise made available for any 
fiscal year for the medical component of the Biological Defense 
Research Program (BDRP) of the Department of Defense--
            [(1) not more than 80 percent may be obligated and 
        expended for product development, or for research, 
        development, test, or evaluation, of medical 
        countermeasures against near-term validated biowarfare 
        threat agents; and
            [(2) not more than 20 percent may be obligated or 
        expended for product development, or for research, 
        development, test, or evaluation, of medical 
        countermeasures against mid-term or far-term validated 
        biowarfare threat agents.
    [(b) Definitions.--In this section:
            [(1) The term ``validated biowarfare threat agent'' 
        means a biological agent that--
                    [(A) is named in the biological warfare 
                threat list published by the Defense 
                Intelligence Agency; and
                    [(B) is identified as a biowarfare threat 
                by the Deputy Chief of Staff of the Army for 
                Intelligence in accordance with Army 
                regulations applicable to intelligence support 
                for the medical component of the Biological 
                Defense Research Program.
            [(2) The term ``near-term validated biowarfare 
        threat agent'' means a validated biowarfare threat 
        agent that has been, or is being, developed or produced 
        for weaponization within 5 years, as assessed and 
        determined by the Defense Intelligence Agency.
            [(3) The term ``mid-term validated biowarfare 
        threat agent'' means a validated biowarfare threat 
        agent that is an emerging biowarfare threat, is the 
        object of research by a foreign threat country, and 
        will be ready for weaponization in more than 5 years 
        and less than 10 years, as assessed and determined by 
        the Defense Intelligence Agency.
            [(4) The term ``far-term validated biowarfare 
        threat agent'' means a validated biowarfare threat 
        agent that is a future biowarfare threat, is the object 
        of research by a foreign threat country, and could be 
        ready for weaponization in more than 10 years and less 
        than 20 years, as assessed and determined by the 
        Defense Intelligence Agency.
            [(5) The term ``weaponization'' means incorporation 
        into usable ordnance or other militarily useful means 
        of delivery.]

           *       *       *       *       *       *       *

Sec. 2374a. Prizes for advanced technology achievements

    (a) Authority.--The Secretary of Defense, [acting through 
the Director of the Defense Advanced Research Projects Agency] 
acting through the Director of Defense Research and 
Engineering, may carry out a program to award cash prizes in 
recognition of outstanding achievements in basic, advanced, and 
applied research, technology development, and prototype 
development that have the potential for application to the 
performance of the military missions of the Department of 
Defense.

           *       *       *       *       *       *       *

           CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS

Sec.
2381.    Contracts: regulations for bids.
     * * * * * * *
2401b.  Limitation on lease of foreign-built vessels.
     * * * * * * *
2410p.  Rapid acquisition authority to respond to combat emergencies.

           *       *       *       *       *       *       *

Sec. 2401b. Limitation on lease of foreign-built vessels

    (a) Limitation.--The Secretary of a military department may 
not make a contract for a lease or charter of a vessel for a 
term of more than 12 months (including all options to renew or 
extend the contract) if the hull, a major component of the 
hull, or superstructure of the vessel is constructed in a 
foreign shipyard.
    (b) Presidential Waiver for National Security Interest.--
(1) The President may authorize exceptions to the limitation in 
subsection (a) when the President determines that it is in the 
national security interest of the United States to do so.
    (2) The President shall transmit notice to Congress of any 
such determination, and no contract may be made pursuant to the 
exception authorized until the end of the 30-day period 
beginning on the date on which the notice of the determination 
is received by Congress.

           *       *       *       *       *       *       *

Sec. 2410p. Rapid acquisition authority to respond to combat 
                    emergencies

    (a) Rapid Acquisition Authority.--The Secretary of Defense 
may rapidly acquire, in accordance with this section, equipment 
needed by a combatant commander to eliminate a combat 
capability deficiency that has resulted in combat fatalities.
    (b) Process for Rapid Acquisition.--Not later than 30 days 
after the date of the enactment of this section, the Secretary 
of Defense shall develop a process for the rapid acquisition 
authority provided by subsection (a) and submit to Congress a 
detailed explanation of the process, including procedures to be 
followed in carrying out the process. The process shall provide 
for the following:
            (1) A requirement that the process may be used only 
        to acquire the minimum amount of equipment needed until 
        the needs of the combatant commander can be fulfilled 
        under existing acquisition statutes, policies, 
        directives, and regulations.
            (2) A goal of awarding a contract for the equipment 
        within 15 days after receipt of a request from a 
        commander.
            (3) In a case in which the equipment cannot be 
        acquired without an extensive delay, a requirement for 
        an interim solution to minimize the combat capability 
        deficiency and combat fatalities until the equipment 
        can be acquired.
            (4) Waiver of the applicability of all policies, 
        directives, and regulations related to--
                    (A) the establishment of the requirement 
                for the equipment;
                    (B) the research, development, test, and 
                evaluation of the equipment; and
                    (C) the solicitation and selection of 
                sources, and the award of the contract, for 
                procurement of the equipment.
            (5) Such other procedures or requirements as the 
        Secretary considers appropriate.
    (c) Waiver of Certain Statutes.--For purposes of exercising 
the authority provided by subsection (a) with respect to 
equipment, laws relating to the following shall not apply:
            (A) The establishment of the requirement for the 
        equipment.
            (B) The research, development, test, and evaluation 
        of the equipment.
            (C) The solicitation and selection of sources, and 
        the award of the contract, for procurement of the 
        equipment.
    (d) Limitations.--The rapid acquisition authority provided 
by subsection (a) may be used only--
            (1) after the Secretary of Defense, without 
        delegation, determines in writing that there exists a 
        combat capability deficiency that has resulted in 
        combat fatalities; and
            (2) to acquire equipment in an amount aggregating 
        not more than $100,000,000 during a fiscal year.
    (e) Source of Funds.--For acquisitions under this section 
to be made during any fiscal year, the Secretary may use any 
funds made available to the Department of Defense for that 
fiscal year.
    (f) Notification to Congress After Each Use of Authority.--
The Secretary of Defense shall notify the congressional defense 
committees within 15 days after each use of the authority 
provided by subsection (a). Each such notice shall identify the 
equipment to be acquired, the amount to be expended for such 
acquisition, and the source of funds for such acquisition.
    (g) Combatant Commander.--In this section, the term 
``combatant commander'' means the commander of a unified 
combatant command with authority for the conduct of operations 
in a specific area of responsibility or who otherwise has 
authority to conduct operations at the direction of the 
President or Secretary of Defense.

           *       *       *       *       *       *       *

  CHAPTER 142--PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENT 
PROGRAM

           *       *       *       *       *       *       *

Sec. 2416. Subcontractor information

    (a) * * *

           *       *       *       *       *       *       *

    (d) In this section, the term ``defense contractor'', for 
any year, means a person awarded a contract with the Department 
of Defense in that year for an amount in excess of [$500,000] 
$1,000,000.

           *       *       *       *       *       *       *

            CHAPTER 144--MAJOR DEFENSE ACQUISITION PROGRAMS

Sec.
2430.    Major defense acquisition program defined.
     * * * * * * *
2437.    Development of major defense acquisition programs: sustainment 
          and modernization of system to be replaced.
     * * * * * * *

Sec. 2437. Development of major defense acquisition programs: 
                    sustainment and modernization of system to be 
                    replaced

    (a) Requirement for Sustaining and Modernizing Existing 
Forces.--(1) The Secretary of Defense shall require that, 
whenever a new major defense acquisition program begins 
development, the defense acquisition authority responsible for 
that program shall develop a plan (to be known as a sustainment 
and modernization plan) for the existing system that the system 
under development is intended to replace. Any such sustainment 
and modernization plan shall provide for budgeting, sustaining, 
and modernizing the existing system until the replacement 
system to be developed under the major defense acquisition 
program is fielded and assumes the majority responsibility for 
the mission of the existing system. This section does not apply 
to a major defense acquisition that reaches initial operational 
capability before October 1, 2008.
    (2) In this section, the term ``defense acquisition 
authority'' means the Secretary of a military department or the 
commander of the United States Special Operations Command.
    (b) Sustainment and Modernization Plan.--The Secretary of 
Defense shall require that each sustainment and modernization 
plan under this section include, at a minimum, the following:
            (1) The milestone schedule for the development of 
        the major defense acquisition program, including low-
        rate initial production, initial operational 
        capability, full-rate production, full operational 
        capability, and the date when the replacement system 
        assumes the majority responsibility for the mission of 
        the existing system.
            (2) An analysis of the existing system to determine 
        the following:
                    (A) A sustainment plan and budget 
                requirements necessary to provide service life 
                extension to the existing system at acceptable 
                reliability and availability rates.
                    (B) A modernization plan and budget 
                requirements necessary to maintain mission 
                capability against the relevant threats.
                    (C) A modernization plan and budget 
                requirements necessary--
                            (i) to transfer mature technologies 
                        from the new system or other systems so 
                        that the mission capability of the 
                        existing system is enhanced against 
                        relevant threats; and
                            (ii) to provide interoperability 
                        with the new system during the period 
                        from initial fielding until the new 
                        system assumes the majority of 
                        responsibility for the mission of the 
                        existing system.
    (c) Annual Review.--Each fiscal year, before the submission 
to Congress of the President's budget for the next fiscal year, 
the Secretary of Defense shall review the schedule performance 
of each replacement major defense acquisition program for which 
a sustainment and modernization plan has been developed under 
this section to compare that performance with the schedule set 
forth under subsection (b)(1). If the schedule for the program 
has changed, then the Secretary shall notify the congressional 
defense committees of such change.
    (d) Exceptions.--Subsection (a) shall not apply to a major 
defense acquisition program if the Secretary of Defense 
determines that--
            (1) the existing system is no longer relevant to 
        the mission;
            (2) the mission has been eliminated;
            (3) the mission has been consolidated with another 
        mission in such a manner that another existing system 
        can adequately meet the mission requirements; or
            (4) the duration of time until the new system 
        assumes the majority of responsibility for the existing 
        system's mission is sufficiently short so that mission 
        availability, capability, interoperability, and force 
        protection requirements are maintained.
    (e) Waiver.--The Secretary of Defense may waive the 
applicability of subsection (a) to a major defense acquisition 
program if the Secretary determines that, but for such a 
waiver, the Department would be unable to meet national 
security objectives. Whenever the Secretary makes such a 
determination and authorizes such a waiver, the Secretary shall 
submit notice of such waiver and of the Secretary's 
determination and the reasons therefor in writing to the 
congressional defense committees.

           *       *       *       *       *       *       *

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

Sec.
2460.    Definition of depot-level maintenance and repair.
     * * * * * * *
[2472.    Management of depot employees.]
2472.    Prohibition on management of depot employees by end strength.
     * * * * * * *

Sec. 2461. Commercial or industrial type functions: required studies 
                    and reports before conversion to contractor 
                    performance

    (a) * * *
    (b) Notification and Elements of Analysis.--(1) * * *

           *       *       *       *       *       *       *

    (5)(A) A function of the Department of Defense performed by 
10 or more civilian employees may not be converted, in whole or 
in part, to performance by a contractor unless, the conversion 
is based on the results of a public-private competition process 
that--
            (i) formally compares the cost of civilian employee 
        performance of the function with the costs of 
        performance by a contractor;
            (ii) creates an agency tender, including a most 
        efficient organization plan, in accordance with Office 
        of Management and Budget Circular A-76, as implemented 
        on May 29, 2003;
            (iii) determines whether the submitted offers meet 
        the needs of the Department of Defense with respect to 
        factors other than cost, including quality and 
        reliability;
            (iv) requires continued performance of the function 
        by civilian employees if the cost of performance of the 
        function by a contractor would, over all performance 
        periods required by the solicitation, cost less than--
                    (I) 10 percent of the personnel-related 
                costs for performance of that activity or 
                function in the agency tender; or
                    (II) $10,000,000; and
            (v) provides no advantage to an offeror for a 
        proposal to reduce costs for the Department of Defense 
        by--
                    (I) not making an employer-sponsored health 
                insurance plan available to the workers who are 
                to be employed in the performance of such 
                function under a contract; or
                    (II) offering to such workers an employer-
                sponsored health benefits plan that requires 
                the employer to contribute less towards the 
                premium or subscription share than that which 
                is paid by the Department of Defense for health 
                benefits for civilian employees under chapter 
                89 of title 5.
    (B) Any modification, reorganization, division, or other 
change in the organization of a function of the Department of 
Defense so that is performed by less than 10 civilian employees 
of the Department of Defense and, therefore, excluded from 
subparagraph (A), is prohibited.
    (C) Any function that is performed by civilian employees of 
the Department of Defense and is proposed to be reengineered, 
reorganized, modernized, upgraded, expanded, or changed in 
order to become more efficient, but the civilian employees 
would still provide essentially the same service, is subject to 
the competition requirement in subparagraph (A).
    (D) The cost savings requirement specified in subparagraph 
(A) does not apply to any contracts for special studies and 
analyses, construction services, architectural services, 
medical services, scientific and technical services related to 
(but not in support of) research and development, and depot-
level maintenance and repair services.
    (E) The Secretary of Defense may waive the competition 
requirement in specific instances if--
            (i) the written waiver is prepared by the Secretary 
        of Defense, or the relevant Assistant Secretary or 
        agency head;
            (ii) the written waiver is accompanied by a 
        detailed determination that national security interests 
        are so compelling as to preclude compliance with the 
        requirement for a public-private competition; and
            (iii) a copy of the waiver is published in the 
        Federal Register within 10 working days after the date 
        on which the waiver is invoked, although use of the 
        waiver need not be delayed until its publication.

           *       *       *       *       *       *       *

Sec. 2466. Limitations on the performance of depot-level maintenance of 
                    materiel

    (a) * * *

           *       *       *       *       *       *       *

    [(d) Annual Reports.--(1) Not later than February 1 of each 
year, the Secretary of Defense shall submit to Congress a 
report identifying, for each of the armed forces (other than 
the Coast Guard) and each Defense Agency, the percentage of the 
funds referred to in subsection (a) that were expended during 
the preceding two fiscal years for performance of depot-level 
maintenance and repair workloads by the public and private 
sectors, as required by this section.
    [(2) Not later than April 1 of each year, the Secretary of 
Defense shall submit to Congress a report identifying, for each 
of the armed forces (other than the Coast Guard) and each 
Defense Agency, the percentage of the funds referred to in 
subsection (a) that are projected to be expended during each of 
the next five fiscal years for performance of depot-level 
maintenance and repair workloads by the public and private 
sectors, as required by this section.
    [(3) Not later than 60 days after the date on which the 
Secretary submits a report under this subsection, the 
Comptroller General shall submit to Congress the Comptroller 
General's views on whether--
            [(A) in the case of a report under paragraph (1), 
        the Department of Defense has complied with the 
        requirements of subsection (a) for the fiscal years 
        covered by the report; and
            [(B) in the case of a report under paragraph (2), 
        the expenditure projections for future fiscal years are 
        reasonable.]
    (d) Annual Report and Review.--(1) Not later than April 1 
of each year, the Secretary of Defense shall submit to Congress 
a report identifying, for each of the armed forces (other than 
the Coast Guard) and each Defense Agency, the percentage of the 
funds referred to in subsection (a) that was expended during 
the preceding fiscal year, and are projected to be expended in 
the current fiscal year and next fiscal year, for performance 
of depot-level maintenance and repair workloads by the public 
and private sectors.
    (2) Not later than 60 days after the date on which the 
Secretary submits a report under paragraph (1), the Comptroller 
General shall submit to Congress the Comptroller General's 
views on whether--
            (A) the Department of Defense has complied with the 
        requirements of subsection (a) during the preceding 
        fiscal year covered by the report; and
            (B) the expenditure projections for the current 
        fiscal year and next fiscal year are reasonable.

           *       *       *       *       *       *       *

[Sec. 2472. Management of depot employees

    [(a) Prohibition on Management by End Strength.--]

Sec. 2472. Prohibition on management of depot employees by end strength

    The civilian employees of the Department of Defense, 
including the civilian employees of the military departments 
and the Defense Agencies, who perform, or are involved in the 
performance of, depot-level maintenance and repair workloads 
may not be managed on the basis of any constraint or limitation 
in terms of man years, end strength, full-time equivalent 
positions, or maximum number of employees. Such employees shall 
be managed solely on the basis of the available workload and 
the funds made available for such depot-level maintenance and 
repair.
    [(b) Annual Report.--Not later than December 1 of each 
fiscal year, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the 
number of employees employed and expected to be employed by the 
Department of Defense during that fiscal year to perform depot-
level maintenance and repair of materiel. The report shall 
indicate whether that number is sufficient to perform the 
depot-level maintenance and repair functions for which funds 
are expected to be provided for that fiscal year for 
performance by Department of Defense employees.]

           *       *       *       *       *       *       *

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

[Sec.
[2481.    Existence of defense commissary system and exchange stores 
          system.
[2482.    Commissary stores: operation.
[2482a.   Nonappropriated fund instrumentalities: contracts with other 
          agencies and instrumentalities to provide and obtain goods and 
          services.
[2483.    Commissary stores: reimbursement for use of commissary 
          facilities by military departments.
[2484.    Commissary stores: use of appropriated funds to cover 
          operating expenses.
[2485.    Donation of unusable food: commissary stores and other 
          activities.
[2486.    Commissary stores: merchandise that may be sold; uniform 
          surcharges and pricing.
[2487.    Commissary stores: release of certain commercially valuable 
          information to the public.
[2488.    Nonappropriated fund instrumentalities: purchase of alcoholic 
          beverages.
[2489.    Overseas package stores: treatment of United States wines.
[2489a.   Sale or rental of sexually explicit material prohibited.
[2490a.   Combined exchange and commissary stores.
[2492.    Overseas commissary and exchange stores: access and purchase 
          restrictions.
[2493.    Fisher Houses: administration as nonappropriated fund 
          instrumentality.
[2494.    Uniform funding and management of morale, welfare, and 
          recreation programs.

[Sec. 2481. Existence of defense commissary system and exchange stores 
                    system

    [(a) In General.--The Secretary of Defense shall operate a 
defense commissary system and an exchange stores system in the 
manner provided by this chapter and other provisions of law.
    [(b) Separate Systems.--(1) Except as provided in paragraph 
(2), the defense commissary system and the exchange stores 
system shall be operated as separate systems of the Department 
of Defense.
    [(2) This subsection does not apply to the following:
            [(A) Combined exchange and commissary stores 
        operated under the authority provided by section 2490a 
        of this title.
            [(B) NEXMART stores of the Navy Exchange Service 
        Command established before October 1, 2003.]

Subchapter                                                          Sec.
I. Defense Commissary System......................................  2481
II. Relationship, Continuation, and Common Policies of Defense 
              Commissary and Exchange Systems.....................  2487
III. Morale, Welfare, and Recreation Programs and Nonappropriated 
              Fund Instrumentalities..............................  2491

                SUBCHAPTER I--DEFENSE COMMISSARY SYSTEM

Sec.
2481. Existence and purpose of defense commissary system.
2482. Commissary stores: criteria for establishment or closure; store 
          size.
2483. Commissary stores: use of appropriated funds to cover operating 
          expenses.
2484. Commissary stores: merchandise that may be sold; uniform 
          surcharges and pricing.
2485. Commissary stores: operation.

Sec. 2481. Existence and purpose of defense commissary system

    (a) Existence of System.--The Secretary of the Defense 
shall operate, using funds appropriated to the Department of 
Defense, a world-wide system of commissary stores that sell, at 
reduced prices, food and other merchandise consistent with 
societal norms for product selection in commercial large-scale 
grocery stores in the United States to members of the uniformed 
services on active duty, members of the uniformed services 
entitled to retired pay, dependents of such members, and 
patrons authorized to use the system under chapter 54 of this 
title.
    (b) Purpose of System.--The purpose of the defense 
commissary system is to enhance the quality of life of members 
of the uniformed services, retired members, dependents of such 
members, and other authorized patrons and to provide such 
members with an additional nonmonetary compensation in 
recognition of their service to the United States.
    (c) Reduces Prices Defined.--In this section, the term 
``reduced prices'' means prices for food and other merchandise 
determined using the price setting process specified in section 
2484 of this title.

Sec. 2482. Commissary stores: criteria for establishment or closure; 
                    store size

    (a) Primary Consideration for Establishment.--The needs of 
members of the uniformed services on active duty and their 
dependents shall be the primary consideration whenever the 
Secretary of Defense--
            (1) assesses the need to establish a commissary 
        store; and
            (2) selects the actual location for the store.
    (b) Store Size.--In determining the size of a commissary 
store, the Secretary of Defense shall take into consideration 
the number of all authorized patrons of the defense commissary 
system who are likely to use the store.
    (c) Closure Considerations.--(1) Whenever assessing whether 
to close a commissary store, the effect of the closure on the 
quality of life of members of the uniformed services and their 
dependents using the store and on the welfare and security of 
the military community in which the commissary is located shall 
be the primary consideration. In all cases, the quality of life 
for military patrons shall take priority over any consideration 
of economic criteria relative to store financial performance.
    (2) The Secretary of Defense shall give the quality of life 
for members of a reserve component the same priority as the 
quality of life for active duty members whenever assessing 
whether to close a commissary store, including when the 
assessment is undertaken as a result of the closure or 
realignment of a military installation under a base closure 
law.
    (d) Congressional Notification.--The closure of a 
commissary store shall not take effect until the end of the 90-
day period beginning on the date on which the Secretary of 
Defense submits to Congress written notice of the reasons 
supporting the closure. The written notice shall include an 
assessment of the impact closure will have on the quality of 
life for military patrons and the welfare and security of the 
military community in which the commissary is located.

Sec. [2484] 2483. Commissary stores: use of appropriated funds to cover 
                    operating expenses

    (a) * * *

           *       *       *       *       *       *       *

[Sec. 2483. Commissary stores: reimbursement for use of commissary 
                    facilities by military departments

    [(a) Payment Required.--The Secretary of a military 
department shall pay the Defense Commissary Agency the amount 
determined under subsection (b) for any use of a commissary 
facility by the military department for a purpose other than 
commissary sales or operations in support of commissary sales.
    [(b) Amount.--The amount payable under subsection (a) for 
use of a commissary facility by a military department shall be 
equal to the share of depreciation of the facility that is 
attributable to that use, as determined under regulations 
prescribed by the Secretary of Defense.
    [(c) Covered Facilities.--This section applies with respect 
to a commissary facility that is acquired, constructed, 
converted, expanded, installed, or otherwise improved (in whole 
or in part) with the proceeds of an adjustment or surcharge 
applied under section 2486(c) of this title.
    [(d) Crediting of Payments.--The Director of the Defense 
Commissary Agency shall credit amounts paid under this section 
for use of a facility to an appropriate account to which 
proceeds of an adjustment or surcharge referred to in 
subsection (c) are credited.]

Sec. [2486] 2484. Commissary stores: merchandise that may be sold; 
                    uniform surcharges and pricing

    [(a) In General.--Commissary stores are similar to 
commercial grocery stores and may sell merchandise similar to 
that sold in commercial grocery stores.
    [(b) Authorized Commissary Merchandise Categories.--
Merchandise sold in, at, or by commissary stores may include 
items only in the following categories:
            [(1) Health and beauty aids.
            [(2) Meat and poultry.
            [(3) Fish and seafood.
            [(4) Produce.
            [(5) Food and non-food grocery items.
            [(6) Bakery goods.
            [(7) Dairy products.
            [(8) Tobacco products.
            [(9) Delicatessen items.
            [(10) Frozen foods.
            [(11) Magazines and other periodicals.
            [(12) Such other merchandise categories as the 
        Secretary of Defense may prescribe, except that the 
        Secretary shall notify Congress of any addition of, or 
        change in, a merchandise category under this paragraph.
    [(c) Uniform Sales Price Surcharge or Adjustment.--An 
adjustment of or surcharge on sales prices in commissary stores 
under subsection (d) or section 2685(a) of this title or for 
any other purpose shall be applied as a uniform percentage of 
the sales price of all merchandise sold in, at, or by 
commissary stores. Effective on November 18, 1997, the uniform 
percentage shall be equal to five percent and may not be 
changed except by a law enacted after such date.]
    (a) In General.--As provided in section 2481(a) of this 
title, commissary stores are intended to be similar to 
commercial grocery stores and may sell merchandise similar to 
that sold in commercial grocery stores. The Secretary of 
Defense shall ensure that the design and format of commissary 
stores are consistent with modern grocery store stockage and 
format.
    (b) Required Commissary Merchandise Categories.--
Merchandise sold in, at, or by commissary stores shall include 
items in the following categories:
            (1) Meat, poultry, and seafood.
            (2) Nonalcoholic beverages.
            (3) Produce.
            (4) Grocery food, whether stored chilled, frozen, 
        or at room temperature.
            (5) Dairy products.
            (6) Bakery and delicatessen items.
            (7) Nonfood grocery items.
            (8) Health and beauty aids.
            (9) Magazines and periodicals.
            (10) Telephone cards, greeting cards, and film and 
        one-time use cameras.
    (c) Inclusion of General Merchandise Items.--(1) Among the 
various defense retail systems--
            (A) commissary stores shall be the primary 
        Department of Defense-operated store for the sale of 
        items described in paragraphs (1) through (7) of 
        subsection (b); and
            (B) exchange stores shall continue to maintain the 
        exclusive right to operate convenience stores, 
        shopettes, and troop stores, including such stores 
        established to support contingency operations.
    (2) Merchandise sold in commissary stores may include such 
general merchandise items as the Secretary of Defense may 
prescribe, except that the Secretary may not exclude seasonal 
items, tobacco products, pet supplies, batteries, potted plants 
and floral bouquets, women's hosiery, and school supplies, to 
the extent such products have been available in commissary 
stores before June 1, 2004, unless the Secretary determines 
that space or other considerations preclude the sale of all or 
some of the specified items. The Secretary shall provide notice 
to Congress of any reduction in the availability of such items 
at least 30 days before the reduction takes effect.
    (3) A military exchange may be considered as the vendor for 
the purchase of tobacco products, greeting cards, and film and 
one-time use cameras and shall serve as the vendor for 
telephone cards. Subsections (e) and (f) shall not apply to the 
pricing of such an item when a military exchange serves as the 
vendor of the item. Commissary store and exchange prices shall 
be comparable for such an item.
    (4) During the two-year period ending March 31, 2007, the 
Secretary shall maintain sales data for commissary stores and 
exchange stores regarding the items identified in subsection 
(b)(10). Not later than August 1, 2007, the Secretary shall 
submit to Congress a report containing such sales data.
    (d) Excluded Goods or Services.--Commissary stores shall 
not offer film development services.
    (e) Uniform Sales Price Surcharge.--The Secretary of 
Defense shall apply a uniform surcharge equal to not more than 
five percent on the sales prices established under subsection 
(f) for each item of merchandise sold in, at, or by commissary 
stores.
    [(d)] (f) Sales Price Establishment.--(1) The Secretary of 
Defense shall establish the sales price of each item of 
merchandise sold in, at, or by commissary stores at the level 
that will recoup the actual product cost of the item 
[(consistent with this section and section 2685 of this 
title)].

           *       *       *       *       *       *       *

    [(e)] (g) Special Rule for Brand-Name Commercial Items.--
The Secretary of Defense may not use the exception provided in 
section 2304(c)(5) of this title regarding the procurement of a 
brand-name commercial item for resale in, at, or by commissary 
stores unless the commercial item is regularly sold outside of 
commissary stores under the same brand name as the name by 
which the commercial item will be sold in, at, or by commissary 
stores. In determining whether a brand name commercial item is 
regularly sold outside of commissary stores, the Secretary 
shall consider only sales of the item on a regional or national 
basis by commercial grocery or other retail operations 
consisting of multiple stores.]
    [(f)] (h) Special Rules for Certain Merchandise.--
Notwithstanding the general requirement that merchandise sold 
in, at, or by commissary stores be commissary store inventory, 
the Secretary of Defense may authorize the sale of tobacco 
products as noncommissary store inventory. [Subsections (c) and 
(d)] Subsections (e) and (f) shall not apply to the pricing of 
such merchandise items.
    [(g) Collection of Dishonored Checks.--(1) The Secretary of 
Defense may impose a charge for the collection of a check 
accepted at a commissary store that is not honored by the 
financial institution on which the check is drawn. The 
imposition and amounts of charges shall be consistent with 
practices of commercial grocery stores regarding dishonored 
checks.
    [(2)(A) The following persons are liable to the United 
States for the amount of a check referred to in paragraph (1) 
that is returned unpaid to the United States, together with any 
charge imposed under that paragraph:
            [(i) The person who presented the check.
            [(ii) Any person whose status and relationship to 
        the person who presented the check provide the basis 
        for that person's eligibility to make purchases at a 
        commissary store.
    [(B) Any amount for which a person is liable under 
subparagraph (A) may be collected by deducting and withholding 
such amount from any amounts payable to that person by the 
United States.
    [(3) Amounts collected as charges imposed under paragraph 
(1) shall be credited to the commissary trust revolving fund.
    [(4) Appropriated funds may be used to pay any costs 
incurred in the collection of checks and charges referred to in 
paragraph (1). An appropriation account charged a cost under 
the preceding sentence shall be reimbursed the amount of that 
cost out of funds in the commissary trust revolving fund.
    [(5) In this subsection, the term ``commissary trust 
revolving fund'' means the trust revolving fund maintained by 
the Department of Defense for surcharge collections and 
proceeds of sales of commissary stores.]
    (i) Use of Surcharge for Construction, Repair, Improvement, 
and Maintenance.--(1)(A) The Secretary of Defense may use the 
proceeds from the surcharges imposed under subsection (e) 
only--
            (i) to acquire (including acquisition by lease), 
        construct, convert, expand, improve, repair, maintain, 
        and equip the physical infrastructure of commissary 
        stores and central product processing facilities of the 
        defense commissary system; and
            (ii) to cover environmental evaluation and 
        construction costs related to activities described in 
        clause (i), including costs for surveys, 
        administration, overhead, planning, and design.
    (B) In subparagraph (A), the term ``physical 
infrastructure'' includes real property, utilities, and 
equipment (installed and free standing and including computer 
equipment), necessary to provide a complete and usable 
commissary store or central product processing facility.
    (2)(A) The Secretary of Defense may authorize a 
nonappropriated fund instrumentality of the United States to 
enter into a contract for construction of a shopping mall or 
similar facility for a commissary store and one or more 
nonappropriated fund instrumentality activities. The Secretary 
may use the proceeds of surcharges under subsection (e) to 
reimburse the nonappropriated fund instrumentality for the 
portion of the cost of the contract that is attributable to 
construction of the commissary store or to pay the contractor 
directly for that portion of such cost.
    (B) In subparagraph (A), the term ``construction'', with 
respect to a facility, includes acquisition, conversion, 
expansion, installation, or other improvement of the facility.
    (3) The Secretary of Defense, with the approval of the 
Director of the Office of Management and Budget, may obligate 
anticipated proceeds from the surcharges under subsection (e) 
for any use specified in paragraph (1) or (2), without regard 
to fiscal year limitations, if the Secretary determines that 
such obligation is necessary to carry out any use of such 
adjustments or surcharges specified in such paragraph.
    (4) Revenues received by the Secretary of Defense from the 
following sources or activities of commissary store facilities 
shall be available for the purposes set forth in paragraphs 
(1), (2), and (3):
            (A) Sale of recyclable materials.
            (B) Sale of excess and surplus property.
            (C) License fees.
            (D) Royalties.
            (E) Fees paid by sources of products in order to 
        obtain favorable display of the products for resale, 
        known as business related management fees.

[Sec. 2485. Donation of unusable food: commissary stores and other 
                    activities

    [(a) The Secretary of Defense may donate food described in 
subsection (b) to entities specified under subsection (d).
    [(b) Food that may be donated under this section is 
commissary store food, mess food, meals ready-to-eat (MREs), 
rations known as humanitarian daily rations (HDRs), and other 
food available to the Secretary of Defense that--
            [(1) is certified as edible by appropriate food 
        inspection technicians;
            [(2) would otherwise be destroyed as unusable; and
            [(3) in the case of commissary store food, is 
        unmarketable and unsaleable.
    [(c) In the case of commissary store food, a donation under 
this section shall take place at the site of the commissary 
that is donating the food.
    [(d) A donation under this section may only be made to an 
entity that is one of the following:
            [(1) A charitable nonprofit food bank that is 
        designated by the Secretary of Defense or the Secretary 
        of Health and Human Services as authorized to receive 
        such donations.
            [(2) A State or local agency that is designated by 
        the Secretary of Defense or the Secretary of Health and 
        Human Services as authorized to receive such donations.
            [(3) A chapter or other local unit of a recognized 
        national veterans organization that provides services 
        to persons without adequate shelter and is designated 
        by the Secretary of Veterans Affairs as authorized to 
        receive such donations.
            [(4) A not-for-profit organization that provides 
        care for homeless veterans and is designated by the 
        Secretary of Veterans Affairs as authorized to receive 
        such donations.
    [(e) This section does not authorize any service (including 
transportation) to be provided in connection with a donation 
under this section.]

Sec. [2482] 2485. Commissary stores: operation

    (a) Private Operation.--(1) * * *
    (2) Any change to private operation of a commissary store 
function that is being performed by more than 10 Department of 
Defense civilian employees shall not take effect until the end 
of the 75-day period beginning on the date on which the 
Secretary of Defense submits to Congress written notice of the 
change. Until December 31, 2009, the Defense Commissary Agency 
is not required to conduct any cost-comparison study under the 
policies and procedures of Office of Management and Budget 
Circular A-76 relating to the possible contracting out of 
commissary store functions.
    (b) Contracts With Other Agencies and Instrumentalities.--
(1) * * *
    (2) A commissary store operated by a nonappropriated fund 
instrumentality of the Department of Defense shall be operated 
in accordance with [section 2484] section 2483 of this title. 
Subject to such section, the Secretary of Defense may authorize 
a transfer of goods, supplies, and facilities of, and funds 
appropriated for, the Defense Commissary Agency or any other 
agency of the Department of Defense that supports the operation 
of the commissary system to a nonappropriated fund 
instrumentality for the operation of a commissary store.
    (c) Governing Board.--(1) * * *
    (2) The Secretary of Defense shall determine the membership 
of the governing board, which shall include, at a minimum, 
appropriate representatives from each military department. The 
chairman of the governing board shall be a commissioned officer 
or member of the senior executive service who has demonstrated 
experience or knowledge relevant to the management of the 
defense commissary system. In selecting other members of the 
governing board, the Secretary shall give priority to persons 
with experience related to logistics, military personnel, 
military entitlements or other experiences of value of 
management of commissaries.

           *       *       *       *       *       *       *

    (d) Assignment of Active Duty Members.--(1) Except as 
provided in paragraph (2), members of the armed forces on 
active duty may not be assigned to the operation of a 
commissary store.
    (2)(A) The Secretary of Defense may assign an officer on 
the active-duty list to serve as the Director of the Defense 
Commissary Agency.
    (B) Not more than 18 members (in addition to the officer 
referred to in subparagraph (A)) of the armed forces on active 
duty may be assigned to the Defense Commissary Agency. Members 
who may be assigned under this subparagraph to regional 
headquarters of the agency shall be limited to enlisted members 
assigned to duty as advisers in the regional headquarters 
responsible for overseas commissaries and to veterinary 
specialists.
    (e) Reimbursement for Use of Commissary Facilities by 
Military Departments.--(1) The Secretary of a military 
department shall pay the Defense Commissary Agency the amount 
determined under paragraph (2) for any use of a commissary 
facility by the military department for a purpose other than 
commissary sales or operations in support of commissary sales.
    (2) The amount payable under paragraph (1) for use of a 
commissary facility by a military department shall be equal to 
the share of depreciation of the facility that is attributable 
to that use, as determined under regulations prescribed by the 
Secretary of Defense.
    (3) The Director of the Defense Commissary Agency shall 
credit amounts paid under paragraph (1) for use of a facility 
to an appropriate account to which proceeds of a surcharge 
applied under section 2484(e) of this title are credited.
    (4) This subsection applies with respect to a commissary 
facility that is acquired, constructed, converted, expanded, 
installed, or otherwise improved (in whole or in part) with the 
proceeds of a surcharge applied under section 2484(e) of this 
title.
    (f) Donation of Unusable Food.--(1) The Secretary of 
Defense may donate food described in paragraph (2) to any of 
the following entities:
            (A) A charitable nonprofit food bank that is 
        designated by the Secretary of Defense or the Secretary 
        of Health and Human Services as authorized to receive 
        such donations.
            (B) A State or local agency that is designated by 
        the Secretary of Defense or the Secretary of Health and 
        Human Services as authorized to receive such donations.
            (C) A chapter or other local unit of a recognized 
        national veterans organization that provides services 
        to persons without adequate shelter and is designated 
        by the Secretary of Veterans Affairs as authorized to 
        receive such donations.
            (D) A not-for-profit organization that provides 
        care for homeless veterans and is designated by the 
        Secretary of Veterans Affairs as authorized to receive 
        such donations.
    (2) Food that may be donated under this subsection is 
commissary store food, mess food, meals ready-to-eat (MREs), 
rations known as humanitarian daily rations (HDRs), and other 
food available to the Secretary of Defense that--
            (A) is certified as edible by appropriate food 
        inspection technicians;
            (B) would otherwise be destroyed as unusable; and
            (C) in the case of commissary store food, is 
        unmarketable and unsaleable.
    (3) In the case of commissary store food, a donation under 
this subsection shall take place at the site of the commissary 
store that is donating the food.
    (4) This subsection does not authorize any service 
(including transportation) to be provided in connection with a 
donation under this subsection.
    (g) Collection of Dishonored Checks.--(1) The Secretary of 
Defense may impose a charge for the collection of a check 
accepted at a commissary store that is not honored by the 
financial institution on which the check is drawn. The 
imposition and amounts of charges shall be consistent with 
practices of commercial grocery stores regarding dishonored 
checks.
    (2)(A) The following persons are liable to the United 
States for the amount of a check referred to in paragraph (1) 
that is returned unpaid to the United States, together with any 
charge imposed under that paragraph:
            (i) The person who presented the check.
            (ii) Any person whose status and relationship to 
        the person who presented the check provide the basis 
        for that person's eligibility to make purchases at a 
        commissary store.
    (B) Any amount for which a person is liable under 
subparagraph (A) may be collected by deducting and withholding 
such amount from any amounts payable to that person by the 
United States.
    (3) Amounts collected as charges imposed under paragraph 
(1) shall be credited to the commissary trust revolving fund.
    (4) Appropriated funds may be used to pay any costs 
incurred in the collection of checks and charges referred to in 
paragraph (1). An appropriation account charged a cost under 
the preceding sentence shall be reimbursed the amount of that 
cost out of funds in the commissary trust revolving fund.
    (5) In this subsection, the term ``commissary trust 
revolving fund'' means the trust revolving fund maintained by 
the Department of Defense for surcharge collections and 
proceeds of sales of commissary stores.
    (h) Release of Certain Commercially Valuable Information to 
Public.--(1) The Secretary of Defense may limit the release to 
the public of any information described in paragraph (2) if the 
Secretary determines that it is in the best interest of the 
Department of Defense to limit the release of such information. 
If the Secretary determines to limit the release of any such 
information, the Secretary may provide for limited release of 
such information in accordance with paragraph (3).
    (2) Paragraph (1) applies to the following:
            (A) Information contained in the computerized 
        business systems of commissary stores or the Defense 
        Commissary Agency that is collected through or in 
        connection with the use of electronic scanners in 
        commissary stores, including the following information:
                    (i) Data relating to sales of goods or 
                services.
                    (ii) Demographic information on customers.
                    (iii) Any other information pertaining to 
                commissary transactions and operations.
            (B) Business programs, systems, and applications 
        (including software) relating to commissary operations 
        that were developed with funding derived from 
        commissary surcharges.
    (3)(A) The Secretary of Defense may, using competitive 
procedures, enter into a contract to sell information described 
in paragraph (2).
    (B) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to the 
manufacturer or producer of that item or an agent of the 
manufacturer or producer.
    (C) The Secretary of Defense may, by contract entered into 
with a business, grant to the business a license to use 
business programs referred to in paragraph (2)(B), including 
software used in or comprising any such program. The fee 
charged for the license shall be based on the costs of similar 
programs developed and marketed by businesses in the private 
sector, determined by means of surveys.
    (D) Each contract entered into under this paragraph shall 
specify the amount to be paid for information released or a 
license granted under the contract, as the case may be.
    (4) Information described in paragraph (2) may not be 
released, under paragraph (3) or otherwise, in a form that 
identifies any customer or that provides information making it 
possible to identify any customer.
    (5) Amounts received by the Secretary under this section 
shall be credited to funds derived from commissary surcharges 
applied under section 2484(e) of this title, shall be merged 
with those funds, and shall be available for the same purposes 
as the funds with which merged.

[Sec. 2487. Commissary stores: release of certain commercially valuable 
                    information to the public

    [(a) Authority To Limit Release.--(1) The Secretary of 
Defense may limit the release to the public of any information 
described in paragraph (2) if the Secretary determines that it 
is in the best interest of the Department of Defense to limit 
the release of such information. If the Secretary determines to 
limit the release of any such information, the Secretary may 
provide for limited release of such information in accordance 
with subsection (b).
    [(2) Paragraph (1) applies to the following:
            [(A) Information contained in the computerized 
        business systems of commissary stores or the Defense 
        Commissary Agency that is collected through or in 
        connection with the use of electronic scanners in 
        commissary stores, including the following information:
                    [(i) Data relating to sales of goods or 
                services.
                    [(ii) Demographic information on customers.
                    [(iii) Any other information pertaining to 
                commissary transactions and operations.
            [(B) Business programs, systems, and applications 
        (including software) relating to commissary operations 
        that were developed with funding derived from 
        commissary surcharges.
    [(b) Release Authority.--(1) The Secretary of Defense may, 
using competitive procedures, enter into a contract to sell 
information described in subsection (a)(2).
    [(2) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to the 
manufacturer or producer of that item or an agent of the 
manufacturer or producer.
    [(3) The Secretary of Defense may, by contract entered into 
with a business, grant to the business a license to use 
business programs referred to in subsection (a)(2)(B), 
including software used in or comprising any such program. The 
fee charged for the license shall be based on the costs of 
similar programs developed and marketed by businesses in the 
private sector, determined by means of surveys.
    [(4) Each contract entered into under this subsection shall 
specify the amount to be paid for information released or a 
license granted under the contract, as the case may be.
    [(c) Form of Release.--Information described in subsection 
(a)(2) may not be released, under subsection (b) or otherwise, 
in a form that identifies any customer or that provides 
information making it possible to identify any customer.
    [(d) Receipts.--Amounts received by the Secretary under 
this section shall be credited to funds derived from commissary 
surcharges, shall be merged with those funds, and shall be 
available for the same purposes as the funds with which merged.
    [(e) Definition.--In this section, the term ``commissary 
surcharge'' means any adjustment or surcharge applied under 
section 2486(c) of this title.]

   SUBCHAPTER II--RELATIONSHIP, CONTINUATION, AND COMMON POLICIES OF 
                DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

Sec.
2487. Existence and purpose of defense commissary system.
2488. Combined exchange and commissary stores.
2489. Overseas commissary and exchange stores: access and purchase 
          restrictions.

Sec. 2487. Relationship between defense commissary system and exchange 
                    stores system

    (a) Separate Systems.--(1) Except as provided in paragraph 
(2), the defense commissary system and the exchange stores 
system shall be operated as separate systems of the Department 
of Defense.
    (2) Paragraph (1) does not apply to the following:
            (A) Combined exchange and commissary stores 
        operated under the authority provided by section 2489 
        of this title.
            (B) NEXMART stores of the Navy Exchange Service 
        Command established before October 1, 2003.
    (b) Consolidation or Other Organizational Changes of 
Defense Retail Systems.--(1) The operation and administration 
of the defense retail systems may not be consolidated or 
otherwise merged unless the consolidation or merger is 
specifically authorized by an Act of Congress.
    (2) In this subsection, the term ``defense retail systems'' 
means the defense commissary system and exchange stores system 
and other revenue-generating facilities operated by 
nonappropriated fund instrumentalities of the Department of 
Defense for the morale, welfare, and recreation of members of 
the armed forces

Sec. [2490a] 2488. Combined exchange and commissary stores

    (a) * * *

           *       *       *       *       *       *       *

Sec. [2492] 2489. Overseas commissary and exchange stores: access and 
                    purchase restrictions

    (a) * * *

           *       *       *       *       *       *       *

     SUBCHAPTER III--MORALE, WELFARE, AND RECREATION PROGRAMS AND 
                 NONAPPROPRIATED FUND INSTRUMENTALITIES

Sec.
2491. Uniform funding and management of morale, welfare, and recreation 
          programs.
2491a. Department of Defense golf courses: limitation on use of 
          appropriated funds.
2491b. Use of appropriated funds for operation of Armed Forces 
          Recreation Center, Europe: limitation.
2491c. Retention of morale, welfare, and recreation funds by military 
          installations: limitation.
2492. Nonappropriated fund instrumentalities: contracts with other 
          agencies and instrumentalities to provide and obtain goods and 
          services.
2493. Fisher Houses: administration as nonappropriated fund 
          instrumentality.
2494. Nonappropriated fund instrumentalities: furnishing utility 
          services for morale, welfare, and recreation purposes.
2495. Nonappropriated fund instrumentalities: purchase of alcoholic 
          beverages.
2495a. Overseas package stores: treatment of United States wines.
2495b. Sale or rental of sexually explicit material prohibited.

Sec. [2494] 2491. Uniform funding and management of morale, welfare, 
                    and recreation programs

    (a) * * *

           *       *       *       *       *       *       *

Sec. [2246] 2491a. Department of Defense golf courses: limitation on 
                    use of appropriated funds

    (a) * * *

           *       *       *       *       *       *       *

Sec. [2247] 2491b. Use of appropriated funds for operation of Armed 
                    Forces Recreation Center, Europe: limitation

    (a) * * *

           *       *       *       *       *       *       *

Sec. [2219] 2491c. Retention of morale, welfare, and recreation funds 
                    by military installations: limitation

    Amounts may not be retained in a nonappropriated morale, 
welfare, and recreation account of a military installation of 
an armed force in excess of the amount necessary to meet cash 
requirements of that installation. Amounts in excess of that 
amount shall be transferred to a single nonappropriated morale, 
welfare, and recreation account for that armed force. This 
section does not apply to the Coast Guard.

Sec. [2482a] 2492. Nonappropriated fund instrumentalities: contracts 
                    with other agencies and instrumentalities to 
                    provide and obtain goods and services

    An agency or instrumentality of the Department of Defense 
that supports the operation of the exchange system, or the 
operation of a morale, welfare, and recreation system, of the 
Department of Defense may enter into a contract or other 
agreement with another element of the Department of Defense or 
with another Federal department, agency, or instrumentality to 
provide or obtain goods and services beneficial to the 
efficient management and operation of the exchange system or 
that morale, welfare, and recreation system.

Sec. 2494. Nonappropriated fund instrumentalities: furnishing utility 
                    services for morale, welfare, and recreation 
                    purposes

    Appropriations for the Department of Defense may be used to 
provide utility services for--
            (1) buildings on military installations authorized 
        by regulation to be used for morale, welfare, and 
        recreation purposes; and
            (2) other morale, welfare, and recreation 
        activities for members of the armed forces.

Sec. [2488] 2495. Nonappropriated fund instrumentalities: purchase of 
                    alcoholic beverages

    (a) * * *

           *       *       *       *       *       *       *

Sec. [2489] 2495a. Overseas package stores: treatment of United States 
                    wines

    The Secretary of Defense shall ensure that each 
nonappropriated fund activity engaged principally in selling 
alcoholic beverage products in a packaged form (commonly 
referred to as a ``package store'') that is located at a 
military installation outside the United States shall give 
appropriate treatment with respect to wines produced in the 
United States to ensure that such wines are given, in general, 
an equitable distribution, selection, and price when compared 
with wines produced by the host nation.

Sec. [2489a] 2495b. Sale or rental of sexually explicit material 
                    prohibited

    (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Sec. 2515. Office of Technology Transition

    (a) * * *

           *       *       *       *       *       *       *

    (d) Biennial Report.--[(1)] The Secretary of Defense shall 
submit to the [congressional committees specified in paragraph 
(2)] congressional defense committees a biennial report on the 
activities of the Office. The report shall be submitted each 
even-numbered year at the same time that the budget is 
submitted to Congress by the President pursuant to section 1105 
of title 31. The report shall contain a discussion of the 
accomplishments of the Office during the two fiscal years 
preceding the fiscal year in which the report is submitted.
    [(2) The committees referred to in paragraph (1) are--
            [(A) the Committee on Armed Services and the 
        Committee on Appropriations of the Senate; and
            [(B) the Committee on Armed Services and the 
        Committee on Appropriations of the House of 
        Representatives.]

           *       *       *       *       *       *       *

   SUBCHAPTER V--MISCELLANEOUS TECHNOLOGY BASE POLICIES AND PROGRAMS

Sec.
2531.    Defense memoranda of understanding and related agreements.
     * * * * * * *
2532a.    Defense trade reciprocity.

           *       *       *       *       *       *       *

Sec. 2532a. Defense trade reciprocity

    (a) Policy.--(1) It is the policy of Congress that 
procurement regulations used in the conduct of trade in defense 
articles and defense services shall be based on the principle 
of fair trade and reciprocity consistent with United States 
national security, including the need to ensure comprehensive 
manufacturing capability in the United States defense 
industrial base for military system essential items.
    (2) The Secretary of Defense shall make every effort to 
ensure that the policies and practices of the Department of 
Defense reflect the goal of establishing an equitable trading 
relationship between the United States and its foreign defense 
trade partners, including ensuring that United States firms and 
United States employment in the defense sector are not 
disadvantaged by unilateral procurement practices by foreign 
governments, such as the imposition of offset agreements or 
similar requirements in defense procurements by those 
governments. In pursuing this goal, the Secretary shall--
            (A) develop a comprehensive defense acquisition 
        trade policy that provides the necessary guidance and 
        incentives for the elimination of offset agreements as 
        an accepted practice in defense trade; and
            (B) review and make necessary modifications to 
        existing acquisition policies and strategies, and 
        review and seek to make necessary modifications to 
        existing memoranda of understanding, cooperative 
        project agreements, or related agreements with foreign 
        defense trade partners, to reflect this goal.
    (b) Requirement.--The Secretary of Defense may not enter 
into a contract, or approve or permit any subcontract under a 
contract entered into by the Department of Defense, for the 
procurement of any defense article or defense service from a 
foreign firm unless the country in which the foreign firm 
performs substantially all of its manufacturing, production, 
and research and development activities in the performance of 
the contract (or subcontract) agrees to apply offset agreements 
to the procurement of defense articles and defense services 
from the United States firms in the same manner and to the same 
degree as such agreements are applied by the Department of 
Defense to the procurement of defense articles and defense 
services from that country.
    (c) Exception.--Subsection (b) does not apply to a contract 
or subcontract for the procurement of a defense article or 
defense service from a foreign firm if the Secretary of Defense 
determines in writing, with respect to the specific contract or 
subcontract, that an exception to subsection (b) is necessary 
for the Department to be able to meet national security 
objectives.
    (d) Notification Required When Exception Applied.--The 
Secretary of Defense may not apply an exception under 
subsection (c) until--
            (1) a notification of the intent to apply such 
        exception is submitted to the congressional defense 
        committees and published in the Federal Register; and
            (2) a period of 30 days has expired after the date 
        on which such notification is so submitted and 
        published.
    (e) Authority to Apply Exception Not Delegable.--The 
authority of the Secretary to apply the exception under 
subsection (c) may not be delegated to any officer or employee 
in a position at a level lower than the position of the Under 
Secretary of Defense for Acquisition, Technology, and 
Logistics.-
    (f) Regulations.--The Secretary shall prescribe regulations 
to implement this section in the Department of Defense 
supplement to the Federal Acquisition Regulation.
    (g) Effective Date.--This section and the regulations 
prescribed under this section shall apply to contracts and 
subcontracts entered into on and after the date occurring one 
year after the date of the enactment of this Act.
    (h) Definitions.--In this section:
            (1) The term ``foreign firm'' means a business 
        entity that performs substantially all of its 
        manufacturing, production, and research and development 
        activities outside of the United States.
            (2) The term ``United States firm'' means a 
        business entity that performs substantially all of its 
        manufacturing, production, and research and development 
        activities in the United States.
            (3) The term ``foreign defense trade partner'' 
        means a foreign country with respect to which there 
        is--
                    (A) a memorandum of understanding or 
                related agreement described in section 2531(a) 
                of title 10, United States Code; or
                    (B) a cooperative project agreement 
                described in section 27 of the Arms Export 
                Control Act (22 U.S.C. 2767).
            (4) The term ``offset agreement'' has the meaning 
        provided that term by section 36(e) of the Arms Export 
        Control Act (22 U.S.C. 2776(e)).
            (5) The terms ``defense article'' and ``defense 
        service'' have the meanings provided those terms by 
        section 47(7) of the Arms Export Control Act (22 U.S.C. 
        2794(7)).
            (6) The term ``military system essential item'' 
        means an item on the military system essential item 
        breakout list produced pursuant to section 813(b) of 
        the National Defense Authorization Act for Fiscal Year 
        2004 (P.L. 108-136; 117 Stat. 1544).

           *       *       *       *       *       *       *

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

    (a) * * *
    (b) Covered Items.--An item referred to in subsection (a) 
is any of the following:
            (1) An article or item of--
                    (A) * * *
                    (B) clothing and the materials and 
                components thereof, other than sensors, 
                electronics, or other items added to, and not 
                normally associated with, clothing (and the 
                materials and components thereof);

           *       *       *       *       *       *       *

    (k) Notification Required When Certain Exceptions 
Applied.--(1) Funds appropriated or otherwise available to the 
Department of Defense may not be used to enter into a contract 
to procure an item described in subsection (b) pursuant to an 
exception set forth in subsection (c) or (e) until--
            (A) a notification of the intent to apply such 
        exception is submitted to Congress and posted on the 
        website maintained by the General Services 
        Administration known as FedBizOpps.gov (or any 
        successor site); and
            (B) a period of 15 days has expired after the date 
        on which such notification is so submitted and 
        published.
    (2) In any case in which the Secretary of Defense or the 
Secretary of the military department concerned intends to apply 
or applies the exception set forth in subsection (d)(1), the 
Secretary concerned shall submit to Congress a notification of 
such intent or such application during the period beginning six 
months before the date of application of such exception and 
ending six months after the date of application of such 
exception.

           *       *       *       *       *       *       *

SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES

           *       *       *       *       *       *       *

Sec. 2540. Establishment of loan guarantee program

    (a) * * *
    (b) Covered Countries.--The authority under subsection (a) 
applies with respect to the following countries:
            (1) * * *
            (2) A country designated as of March 31, 1995, as a 
        major non-NATO ally pursuant to section 2350a(i)(3) of 
        this title, as in effect on that date.

           *       *       *       *       *       *       *

             CHAPTER 155--ACCEPTANCE OF GIFTS AND SERVICES

Sec.
2601.    General gift funds.
     * * * * * * *
2613.    Acceptance of frequent traveler miles, credits, and tickets; 
          use to facilitate rest and recuperation travel of deployed 
          members and their families.

           *       *       *       *       *       *       *

Sec. 2606. Scouting: cooperation and assistance in foreign areas

    (a) Authority to Cooperate and Provide Assistance.--
[Subject to subsection (b)] In the interest of promoting the 
recognized morale, welfare, and recreation of members of the 
armed forces, the Secretary concerned may cooperate with and 
assist qualified scouting organizations in establishing and 
providing facilities and services for members of the armed 
forces and their dependents, and civilian employees of the 
Department of Defense and their dependents, at locations 
outside the United States.
    (b) Cooperation and assistance under subsection (a) shall 
be provided under regulations prescribed by the Secretary of 
Defense [and may be provided only if the President determines 
that such cooperation and assistance is necessary in the 
interest of the morale, welfare, and recreation of members of 
the armed forces].
    (c) Treatment as Nonappropriated Fund Instrumentalities.--
(1) Subject to paragraphs (2) and (3), to the extent a 
qualified scouting organization is providing services for 
members of the armed forces and their dependents, or civilian 
employees of the Department of Defense and their dependents, at 
a location outside the United States consistent with the 
regulations prescribed under subsection (b), the qualified 
scouting organization shall be a nonappropriated fund 
instrumentality of the Department of Defense.
    (2) Notwithstanding treatment as a nonappropriated fund 
instrumentality of the Department of Defense, personnel of the 
qualified scouting organization who are performing duties in 
connection with cooperation and assistance provided under 
subsection (a) may continue such policies and procedures 
related to personnel management and such other policies or 
procedures established by the qualified scouting organization 
as the personnel consider appropriate, subject to the approval 
of the qualified scouting organization.
    (3) A qualified scouting organization operating outside the 
United States may operate as a private association overseas for 
the purpose of raising funds. Any funds so raised may not be 
commingled with amounts retained in a nonappropriated morale, 
welfare, and recreation account of the Department of Defense.
    (d) Treatment as Nonappropriated Fund Instrumentality 
Employees.--(1) Personnel of a qualified scouting organization 
who are performing duties in connection with cooperation and 
assistance provided under subsection (a) for members of the 
armed forces and their dependents, or civilian employees of the 
Department of Defense and their dependents, shall be 
nonappropriated fund instrumentality employees of the United 
States for any period during which the personnel perform such 
duties.
    (2) Such personnel of a qualified scouting organization 
shall receive the same benefits, entitlements, and logistical 
support as other nonappropriated fund instrumentality 
employees, except that such personnel--
            (A) shall be allowed to decline to participate in 
        retirement programs or other personnel management 
        policies or procedures available to other 
        nonappropriated fund instrumentality employees and 
        elect to continue the programs, policies or procedures 
        made available by the qualified scouting organization; 
        and
            (B) shall not receive nonappropriated fund 
        instrumentality employment credit nor rehire priority.
    (3) In the regulations prescribed under subsection (b), the 
Secretary of Defense may authorize the use of funds 
appropriated to the Department of Defense to pay costs of such 
personnel of a qualified scouting organization, including 
reimbursement of the personnel or the qualified scouting 
organization, in the case of those retirement, personnel 
management, and other compensation programs regarding which the 
personnel have elected to continue the programs made available 
to them by the qualified scouting organization.
    [(c)] (e) Provision of Transportation, Space, and 
Services.--Personnel of a qualified scouting organization, 
including officials certified by that organization as 
representing that organization, who are performing duties in 
connection with cooperation and assistance provided under 
subsection (a) may be furnished, using the authority of 
subsection (d)(3)--
            (1) * * *

           *       *       *       *       *       *       *

    [(d)] (f) Transportation of Supplies.--Supplies of a 
qualified scouting organization may be transported at the 
expense of the United States if the Secretary concerned 
determines, under regulations prescribed under subsection (b), 
that the supplies are necessary to the cooperation and 
assitance provided under this section.
    [(e) The Secretary concerned may reimburse a qualified 
scouting organization for all or part of the pay of an employee 
of that organization for any period during which the employee 
was performing services under subsection (a). Any such 
reimbursement may not be made from appropriated funds and shall 
be made under regulations prescribed under subsection (b).
    [(f) For the purposes of this section, employees of a 
qualified scouting organization performing services under 
subsection (a) may not be considered to be employees of the 
United States.]
    (g) Definition.--In this section, the term ``qualified 
scouting organization'' means the Girl Scouts of the United 
States of America and the Boy Scouts of America.

           *       *       *       *       *       *       *

Sec. 2613. Acceptance of frequent traveler miles, credits, and tickets; 
                    use to facilitate rest and recuperation travel of 
                    deployed members and their families

    (a) Authority to Accept Donation of Travel Benefits.--
Subject to subsection (c), the Secretary of Defense may accept 
from any person or government agency the donation of travel 
benefits for the purposes of use under subsection (d).
    (b) Travel Benefit Defined.--In the section, the term 
``travel benefit'' means frequent traveler miles, credits for 
tickets, or tickets for air or surface transportation issued by 
an air carrier or a surface carrier, respectively, that serves 
the public.
    (c) Condition on Authority to Accept Donation.--The 
Secretary may accept a donation of a travel benefit under this 
section only if the air or surface carrier that is the source 
of the benefit consents to such donation. Any such donation 
shall be under such terms and conditions as the surface carrier 
may specify, and the travel benefit so donated may be used only 
in accordance with the rules established by the carrier.
    (d) Use of Donated Travel Benefits.--A travel benefit 
accepted under this section may be used only for the purpose 
of--
            (1) facilitating the travel of a member of the 
        armed forces who--
                    (A) is deployed on active duty away from 
                the permanent duty station of the member; and
                    (B) is granted, during such deployment, 
                rest and recuperative leave, emergency leave, 
                convalescent leave, or another form of leave 
                authorized for the member; or
            (2) facilitating the travel of family members of a 
        member described in paragraph (1) in order to be 
        reunited with the member.
    (e) Administration.--The Secretary shall designate a single 
office in the Department of Defense to carry out this section. 
That office shall be responsible for developing rules and 
procedures to facilitate the acceptance and distribution of 
travel benefit under this section.
    (f) Status of Benefits Received.--A member of the armed 
forces, or a family member of a member of the armed forces, who 
receives a travel benefit under this section is deemed to 
recognize no income from the receipt or use of such benefit. A 
donors of a travel benefit under this section is deemed to 
obtain no tax benefit from such donation.
    (g) Family Member Defined.--In this section, the term 
``family member'' has the meaning given that term in section 
411h(b)(1) of title 37.

           *       *       *       *       *       *       *

                      CHAPTER 157--TRANSPORTATION

Sec.
2631.    Supplies: preference to United States vessels.
     * * * * * * *
2648.    Persons and supplies: sea transportation.
2649.    Civilian passengers and commercial cargoes: transportation on 
          Department of Defense vessels.
2650.    Civilian personnel in Alaska.
2651.    Passengers and merchandise to Guam: sea transport.

           *       *       *       *       *       *       *

Sec. [4744] 2648. Persons and supplies: sea transportation

    Whenever the [Secretary of the Army] Secretary of Defense 
considers that space is available, the following persons and 
supplies may be transported on vessels operated by [Army 
transport agencies or, within bulk space allocations made to 
the Department of the Army, on vessels operated by any military 
transport agency of] the Department of Defense:
            [(1) Members of the Navy, Marine Corps, or Coast 
        Guard.
            [(2) Officers and employees of the Department of 
        the Army, the Department of the Navy, the Department of 
        the Air Force, or the Coast Guard.
            [(3) Supplies of the Department of the Navy.]
            [(4)] (1) Members of Congress.
            [(5)] (2) Other officers of the United States 
        traveling on official business.
            [(6)] (3) Secretaries and supplies of the Armed 
        Services Department of the Young Men's Christian 
        Association.
            [(7)] (4) Officers and employees of the 
        Commonwealth of Puerto Rico on official business.
            [(8)] (5) The families of [persons described in 
        clauses (1), (2), (4), (5), and (7)] members of the 
        armed forces, officers and employees of the Department 
        of Defense or the Coast Guard, and persons described i 
        paragraphs (1), (2), and (4).
However, a person described in [clause (7) or (8)] paragraph 
(4) or (5) may be so transported only if the transportation is 
without expense to the United States.

[Sec. 4745. Civilian passengers and commercial cargoes: transports in 
                    trans-Atlantic service]

Sec. 2649. Civilian passengers and commercial cargoes: transportation 
                    on Department of Defense vessels

    (a) Whenever space is unavailable on commercial lines and 
is available [(1) on vessels operated by Army transport 
agencies, or (2) within bulk space allocations made to the 
Department of the Army] on vessels operated by [any transport 
agency of] the Department of Defense, civilian passengers and 
commercial cargo may, in the discretion of the [Secretary of 
the Army and the Secretary of Homeland Security, be 
transported] Secretary of Defense, be transported on those 
vessels. Rates for transportation under this section may not be 
less than those charged by commercial lines for the same kinds 
of service.

           *       *       *       *       *       *       *

Sec. [4746] 2650. Civilian personnel in Alaska

    Persons residing in Alaska who are and have been employed 
there by the United States for at least two years, and their 
families, may be transported on vessels or airplanes operated 
by [Army transport agencies or, within bulk space allocations 
made to the Department of the Army, on vessels or airplanes 
operated by any military transport agency of] the Department of 
Defense, if--
            (1) the [Secretary of the Army] Secretary of 
        Defense considers that accommodations are available;

           *       *       *       *       *       *       *

            (4) in case of travel [by air--
                    [(A) the Secretary of Transportation has 
                not certified that commercial air carriers of 
                the United States that can handle the 
                transportation are operating between Alaska and 
                the United States; and
                    [(B) the transportation cannot] by air, the 
                transportation cannot be reasonably handled by 
                a United States commercial air carrier.

Sec. [4747] 2651. Passengers and merchandise to Guam: sea transport

    Whenever space is available, passengers, and merchandise 
produced in the United States, or the Territories, 
Commonwealths, and possessions, and consigned to residents and 
mercantile firms of Guam, may be transported to Guam on vessels 
operated by [Army transport agencies or, within bulk space 
allocations made to the Department of the Army, on vessels 
operated by any transport agency of the Department of Defense, 
under regulations and at rates to be prescribed by the 
Secretary of the Army.] the Department of Defense, under 
regulations and at rates to be prescribed by the Secretary of 
Defense.

           *       *       *       *       *       *       *

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

Sec.
2661.    Miscellaneous administrative provisions relating to real 
          property.
     * * * * * * *
[2664.    Acquisition of property for lumber production.]
     * * * * * * *
[2666.    Acquisition: land purchase contracts; limitation on 
          commission.]
     * * * * * * *
[2673.    Acquisition of certain interests in land: availability of 
          funds.]

           *       *       *       *       *       *       *

Sec. 2661. Miscellaneous administrative provisions relating to real 
                    property

    (a) Availability of Operation and Maintenance Funds.--
Appropriations for operation and maintenance of the active 
forces shall be available for the following:
            (1) * * *

           *       *       *       *       *       *       *

    (b) Leasing and Road Maintenance Authority.--The Secretary 
of Defense and the Secretary of each military department may 
provide for the following:
             * * *

           *       *       *       *       *       *       *

    (c) Commissions on Land Purchase Contracts.--The maximum 
amount payable as a commission on a contract for the purchase 
of land from funds appropriated for the Department of Defense 
is two percent of the purchase price.

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

    (a) General Notice and Wait Requirements.--(1) The 
Secretary of a military department, or his designee, may not 
enter into any of the following listed transactions by or for 
the use of that department until the Secretary submits a 
report, subject to paragraph (3), to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives:
            (A) An acquisition of fee title to any real 
        property, if the estimated price is more than 
        [$750,000] $1,500,000.
            (B) A lease of any real property to the United 
        States, if the estimated annual rental is more than 
        [$750,000] $1,500,000.
            (C) A lease or license of real property owned by 
        the United States, if the estimated annual fair market 
        rental value of the property is more than [$750,000] 
        $1,500,000.
            (D) A transfer of real property owned by the United 
        States to another Federal agency or another military 
        department or to a State, if the estimated value is 
        more than [$750,000] $1,500,000.
            (E) A report of excess real property owned by the 
        United States to a disposal agency, if the estimated 
        value is more than [$750,000] $1,500,000.

           *       *       *       *       *       *       *

    (2) If a transaction covered by subparagraph (A) or (B) of 
paragraph (1) is part of a project, the report [must include a 
summarization] shall include a summary  of  the  general  plan  
for  that project, including an estimate of the total cost of 
the lands to be acquired or leases to be made. The report 
required by this subsection concerning any report of excess 
real property described in subparagraph (E) of paragraph (1) 
shall contain a certification by the Secretary concerned that 
he has considered the feasibility of exchanging such property 
for other real property authorized to be acquired for military 
purposes and has determined that the property proposed to be 
declared excess is not suitable for such purpose.

           *       *       *       *       *       *       *

    (b) Annual Reports on Certain Minor Transactions.--The 
Secretary of each military department shall submit annually to 
the congressional committees named in subsection (a) a report 
on transactions described in [subsection (a) that involve an 
estimated value of more than $250,000, but not more than 
$750,000] such subsection that involve an estimated value of 
more than $500,000, but not more than the amount specified in 
such subsection.

           *       *       *       *       *       *       *

    (e) Notice and Wait Regarding Leases of Space for DoD by 
GSA.--No element of the Department of Defense shall occupy any 
general purpose space leased for it by the General Services 
Administration at an annual rental in excess of [$750,000] 
$1,500,000 (excluding the cost of utilities and other operation 
and maintenance services), if the effect of such occupancy is 
to increase the total amount of such leased space occupied by 
all elements of the Department of Defense, until the end of the 
30-day period beginning on the date on which a report of the 
facts concerning the proposed occupancy is submitted to the 
congressional committees named in subsection (a) or, if 
earlier, the end of the 14-day period beginning on the date on 
which a copy of the report is provided in an electronic medium 
pursuant to section 480 of this title.

           *       *       *       *       *       *       *

[Sec. 2664. Acquisition of property for lumber production

    [(a) The Secretary of a military department, the Secretary 
of Transportation, or any one or more of them, may have 
proceedings brought in the name of the United States to acquire 
by condemnation any interest in property named in subsection 
(b), including temporary use, and needed for--
            [(1) the production of aircraft, vessels, dry 
        docks, or equipment for them;
            [(2) the procurement of supplies for aircraft, 
        vessels, and dry docks; or
            [(3) housing for persons employed by the United 
        States in connection with functions of the Army, Navy, 
        Air Force, or Marine Corps, or the functions 
        transferred to the Secretary of Transportation under 
        section 3 of the Maritime Act of 1981 (46 U.S.C. App. 
        1602).
    [(b) The kinds of property that may be acquired by 
condemnation under subsection (a) are--
            [(1) standing or fallen timber;
            [(2) sawmills;
            [(3) camps;
            [(4) machinery;
            [(5) logging roads;
            [(6) rights-of-way;
            [(7) supplies; and
            [(8) works, property, or appliances suitable for 
        the production of lumber and timber products.
    [(c) Jurisdiction over condemnation proceedings under this 
section is vested in the United States District Court for the 
district in which the property, or any part of it, sought to be 
condemned is located, regardless of its value.
    [(d) In time of war or when war is imminent, the United 
States may, immediately upon the filing of a petition for 
condemnation under subsection (a), take and use the property to 
the extent of the interest sought to be acquired.
    [(e) A person named in subsection (a) may contract for or 
buy any interest in property named in subsection (b), including 
temporary use, needed for any purpose named in subsection (a), 
as soon as the owner fixes a price for it and that person 
considers that price to be reasonable.
    [(f) A person named in subsection (a) may accept for the 
United States a gift of any property named in subsection (b), 
including temporary use, for any purpose named in subsection 
(a).]

           *       *       *       *       *       *       *

[Sec. 2666. Acquisition: land purchase contracts; limitation on 
                    commission

    [The maximum amount payable as commission on a contract for 
the purchase of land from funds appropriated for the Department 
of Defense is 2 percent of the purchase price.]

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

    (a) * * *

           *       *       *       *       *       *       *

    (d)(1)(A) * * *
    (B) Subparagraph (A) does not apply to the following 
proceeds:
            (i) * * *
            (ii) Money rentals deposited in a nonappropriated 
        morale, welfare, and recreation account under paragraph 
        (3).
            [(ii)] (iii) Money rentals referred to in paragraph 
        (4) or (5).

           *       *       *       *       *       *       *

    (3) The Secretary of the Army may deposit up to 50 percent 
of the money rentals received by the United States from a lease 
involving the golf course at Rock Island Arsenal, Illinois, in 
the nonappropriated morale, welfare, and recreation account for 
that installation, to be used for quality-of-life programs at 
that installation.

           *       *       *       *       *       *       *

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

    [(a) Acquisition Authority.--(1) The Secretary of a 
military department may acquire any interest in land that--
            [(A) the Secretary determines is needed in the 
        interest of national defense; and
            [(B) does not cost more than $750,000, exclusive of 
        administrative costs and the amounts of any deficiency 
        judgments.
    [(2) The Secretary of a military department may acquire any 
interest in land that--
            [(A) the Secretary determines is needed solely to 
        correct a deficiency that is life-threatening, health-
        threatening, or safety-threatening; and
            [(B) does not cost more than $1,500,000, exclusive 
        of administrative costs and the amounts of any 
        deficiency judgments.
    [(b) Acquisition of Multiple Parcels.--This section does 
not apply to the acquisition, as a part of the same project, of 
more than one parcel of land unless the parcels are 
noncontiguous, or, if contiguous, unless the total cost is not 
more than $750,000, in the case of an acquisition under 
subsection (a)(1), or $1,500,000, in the case of an acquisition 
under subsection (a)(2).]
    (a) Acquisition Authority.--The Secretary of a military 
department may acquire any interest in land that--
            (1) the Secretary determines is needed in the 
        interest of national defense; and
            (2) does not cost more than $1,500,000, exclusive 
        of administrative costs and the amounts of any 
        deficiency judgments.
    (b) Treatment of Multiple Parcels.--This section does not 
authorize the acquisition, as a part of the same project, of 
more than one parcel of land unless--
            (1) the parcels are noncontiguous; or
            (2) if contiguous, the total cost for the 
        acquisition of all of the contiguous parcels does not 
        cost more than the amount specified in subsection 
        (a)(2).

           *       *       *       *       *       *       *

    (d) Availability of Funds.--Appropriations available to the 
Department of Defense for operation and maintenance or 
construction may be used for the acquisition of land or 
interests in land under this section.

           *       *       *       *       *       *       *

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

    (a) The Secretary of a military department may acquire any 
interest in land in any case in which the Secretary determines 
that--
            (1) [the Secretary determines] the acquisition is 
        needed in the interest of national defense;
            (2) the acquisition is required to maintain the 
        operational integrity of a military installation; and

           *       *       *       *       *       *       *

[Sec. 2673. Acquisition of certain interests in land: availability of 
                    funds

    [Appropriations available to the Department of Defense for 
maintenance or construction may be used for the acquisition of 
land or interests in land under section 2672 of this title and 
for the acquisition of interests in land under section 2675 of 
this title.]

           *       *       *       *       *       *       *

Sec. 2675. Leases: foreign countries

    (a) Lease Authority; Duration.--The Secretary of a military 
department may acquire by lease in foreign countries structures 
and real property relating to structures that are needed for 
military purposes other than for military family housing. A 
lease under this section may be for a period of up to five 
years, or 15 years in the case of a lease in Korea, and the 
rental for each yearly period may be paid from funds 
appropriated to that military department for that year.
    (b) Availability of Funds.--Appropriations available to the 
Department of Defense for operation and maintenance or 
construction may be used for the acquisition of interests in 
land under this section.

Sec. 2676. Acquisition: limitation

    (a) * * *

           *       *       *       *       *       *       *

    (d) The limitations on reduction in scope or increase in 
cost of a land acquisition in subsection (c) do not apply if 
the reduction in scope or the increase in cost, as the case may 
be, is approved by the Secretary concerned and a written 
notification of the facts relating to the proposed reduced 
scope or increased cost (including a statement of the reasons 
therefor) is submitted by the Secretary concerned to the 
[appropriate committees of Congress] congressional defense 
committees. A contract for the acquisition may then be awarded 
only after a period of 21 days elapses from the date the 
notification is received by the committees or, if over sooner, 
a period of 14 days elapses from the date on which a copy of 
that notification is provided in an electronic medium pursuant 
to section 480 of this title.

           *       *       *       *       *       *       *

Sec. 2694a. Conveyance of surplus real property for natural resource 
                    conservation

    (a) * * *

           *       *       *       *       *       *       *

    (e) Congressional Notification.--The Secretary concerned 
may not approve of the reconveyance of real property under 
subsection (c) or grant the release of a covenant under 
subsection (d) until the Secretary notifies the [appropriate 
committees of Congress] congressional defense committees of the 
proposed reconveyance or release and a period of 21 days 
elapses from the date the notification is received by the 
committees.

           *       *       *       *       *       *       *

    (i) Definitions.--In this section:
            (1) The term ``[appropriate committees of Congress] 
        congressional defense committees'' has the meaning 
        given such term in section 2801 of this title.
            [(2) The term ``base closure law'' means the 
        following:
                    [(A) Section 2687 of this title.
                    [(B) Title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                of 1988 (10 U.S.C. 2687 note).
                    [(C) The Defense Base Closure and 
                Realignment Act of 1990 (part A of title XXIX 
                of Public Law 101-510; 10 U.S.C. 2687 note).
                    [(D) Any other similar authority for the 
                closure or realignment of military 
                installations that is enacted after the date of 
                the enactment of the Bob Stump National Defense 
                Authorization Act for Fiscal Year 2003.]
            (2) The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, Guam, the 
        Virgin Islands, and American Samoa.

           *       *       *       *       *       *       *

            [(4) The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Marianas, and the 
        territories and possessions of the United States.]

           *       *       *       *       *       *       *

CHAPTER 160--ENVIRONMENTAL RESTORATION

           *       *       *       *       *       *       *

Sec. 2701. Environmental restoration program

    (a) Environmental Restoration Program--
            (1) * * *
            (2) Application of section 120 of cercla.--
        Activities of the program described in subsection 
        (b)(1) shall be carried out subject to, and in a manner 
        consistent with, section 120 (relating to Federal 
        facilities) of CERCLA (42 U.S.C. 9620).

           *       *       *       *       *       *       *

    (c) Responsibility for Response Actions.--
            (1) * * *
            (2) Other responsible parties.--Paragraph (1) shall 
        not apply to a removal or remedial action if the 
        Administrator has provided for response action by a 
        potentially responsible person in accordance with 
        section 122 [of CERCLA (relating to settlements)] 
        (relating to settlements) of CERCLA (42 U.S.C. 9622).

           *       *       *       *       *       *       *

    (e) Response Action Contractors.--The provisions of section 
119 of CERCLA (42 U.S.C. 9619) apply to response action 
contractors (as defined in that section) who carry out response 
actions under this section.

           *       *       *       *       *       *       *

    (j) Applicability.--(1) * * *
    (2) Subsections (h) and (i) shall not apply to bonds to 
which section 119(g) of [the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980] CERCLA (42 
U.S.C. 9619(g)) applies.

           *       *       *       *       *       *       *

Sec. 2702. Research, development, and demonstration program

    (a) Program.--As part of the Defense Environmental 
Restoration Program, the Secretary of Defense shall carry out a 
program of research, development, and demonstration with 
respect to hazardous wastes. The program shall be carried out 
in consultation and cooperation with the Administrator and the 
advisory council established under section 311(a)(5) of CERCLA 
(42 U.S.C. 9660(a)(5)). The program shall include research, 
development, and demonstration with respect to each of the 
following:
            (1) * * *

           *       *       *       *       *       *       *

Sec. 2703. Environmental restoration accounts

    (a) * * *
    (b) Program Elements for Ordnance Remediation.--The 
Secretary of Defense shall establish a program element for 
remediation of unexploded ordnance, discarded military 
munitions, and munitions constituents within each environmental 
restoration account established under subsection (a). [The 
terms] For purposes of the preceding sentence, the terms 
``unexploded ordnance'', ``discarded military munitions'', and 
``munitions constituents'' have the meanings given such terms 
in section 2710 of this title.

           *       *       *       *       *       *       *

Sec. 2704. Commonly found unregulated hazardous substances

    (a) * * *

           *       *       *       *       *       *       *

    (c) DOD Support.--The Secretary of Defense shall transfer 
to the Secretary of Health and Human Services such 
toxicological data, such sums from amounts appropriated to the 
Department of Defense, and such personnel of the Department of 
Defense as may be necessary (1) for the preparation of 
toxicological profiles under subsection (b) or (2) for other 
health related activities under section 104(i) of CERCLA (42 
U.S.C. 9604(i)). The Secretary of Defense and the Secretary of 
Health and Human Services shall enter into a memorandum of 
understanding regarding the manner in which this section shall 
be carried out, including the manner for transferring funds and 
personnel and for coordination of activities under this 
section.

           *       *       *       *       *       *       *

    (e) Cross Reference.--Section 104(i) of CERCLA (42 U.S.C. 
9604(i)) applies to facilities under the jurisdiction of the 
Secretary of Defense in the manner prescribed in that section.
    (f) Functions of HHS To Be Carried Out Through ATSDR.--The 
functions of the Secretary of Health and Human Services under 
this section shall be carried out through the Administrator of 
the Agency for Toxic Substances and Disease Registry of the 
Department of Health and Human Services established under 
section 104(i) of CERCLA (42 U.S.C. 9604(i)).

           *       *       *       *       *       *       *

             CHAPTER 165--ACCOUNTABILITY AND RESPONSIBILITY

Sec.
2771.    Final settlement of accounts: deceased members.
     * * * * * * *
2780a.    Debt collection: general waiver authority for small amounts 
          owed the United States.
     * * * * * * *
2788.    Licensing of intellectual property of the military departments; 
          authority to charge and retain fees.

           *       *       *       *       *       *       *

Sec. 2780a. Debt collection: general waiver authority for small amounts 
                    owed the United States

    (a) Authority.--In the case of an indebtedness to the 
United States described in subsection (b) that is for an amount 
that is less than the threshold amount specified in subsection 
(c), the Secretary of Defense may, under regulations prescribed 
under this section, cancel the indebtedness and waive recovery 
of the amount owed. Such authority may be used only when, based 
on a cost-benefit analysis, the Secretary determines that the 
costs of collection are expected to exceed the amount 
recoverable.
    (b) Covered Debts.--(1) Except as provided in paragraph 
(2), this section applies with respect to amounts owed to the 
United States that arise out of the activities of, or that are 
referred to, the Department of Defense (including amounts owed 
by members of the armed forces and Department of Defense 
civilian personnel).
    (2) The authority under this section does not apply to 
amounts owed to the United States arising out of activities of 
the Department of Defense that have been referred to another 
executive agency for collection action or that are otherwise 
within the purview of another executive agency.
    (c) Maximum Amount Waivable.--The threshold amount referred 
to in subsection (a) is the micropurchase threshold amount in 
effect under section 32 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428).
    (d) Regulations.--The Secretary of Defense shall prescribe 
regulations for the purposes of this section.

           *       *       *       *       *       *       *

Sec. 2788. Licensing of intellectual property of the military 
                    departments; authority to charge and retain fees

    (a) Authority to Retain Fees.--(1) Under regulations 
prescribed by the Secretary of Defense, the Secretary concerned 
may license trademarks, service marks, certification marks, and 
collective marks owned by a military department and may retain 
and expend fees received from such licensing in accordance with 
subsection (b).
    (2) In this section, the terms ``trademark'', ``service 
mark'', ``certification mark'', ``collective mark'', and 
``mark'' have the meanings given those terms in section 45 of 
the Trademark Act of 1946 (15 U.S.C. 1127).
    (b) Use of Licensing Fees.--(1) Funds received by a 
military department from licensing under subsection (a)(1) 
shall be used for the expenses incurred by the department in 
securing the registration of marks owned by the department and 
in licensing those marks.
    (2) If the amount of fees received by a military department 
during any fiscal year from the licensing of marks exceeds the 
anticipated expenses under paragraph (1) during that year, the 
Secretary concerned may designate those funds as excess and 
expend them as provided in paragraph (3).
    (3) Not more than 50 percent of any such excess funds shall 
be available for military personnel recruiting and retention 
activities of the department. The remainder of such funds shall 
be available for morale, welfare, and recreation activities of 
the department.
    (4) Funds received pursuant to subsection (a)(1) shall 
remain available for two years after the end of the fiscal year 
during which the funds are received.

           *       *       *       *       *       *       *

CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *

                  SUBCHAPTER I--MILITARY CONSTRUCTION

Sec.
2801.    Scope of chapter; definitions.
     * * * * * * *
[2808.    Construction authority in the event of a declaration of war or 
          national emergency.]
2808.    Construction authority related to declaration of war or 
          national emergency; construction requirements related to 
          antiterrorism and force protection.

           *       *       *       *       *       *       *

Sec. 2801. Scope of chapter; definitions

    (a) * * *

           *       *       *       *       *       *       *

    (c) In this chapter:
            (1) * * *
            [(4) The term ``appropriate committees of 
        Congress'' means the congressional defense committees 
        and, with respect to any project to be carried out by, 
        or for the use of, an intelligence component of the 
        Department of Defense, the Permanent Select Committee 
        on Intelligence of the House of Representatives and the 
        Select Committee on Intelligence of the Senate.]
            (4) The term ``congressional defense committees'' 
        includes, with respect to any project to be carried out 
        by, or for the use of, an intelligence component of the 
        Department of Defense--
                    (A) the Permanent Select Committee on 
                Intelligence of the House of Representatives; 
                and
                    (B) the Select Committee on Intelligence of 
                the Senate.

           *       *       *       *       *       *       *

Sec. 2803. Emergency construction

    (a) * * *
    (b) When a decision is made to carry out a military 
construction project under this section, the Secretary 
concerned shall submit a report in writing to the [appropriate 
committees of Congress] congressional defense committees on 
that decision. Each such report shall include (1) the 
justification for the project and the current estimate of the 
cost of the project, (2) the justification for carrying out the 
project under this section, and (3) a statement of the source 
of the funds to be used to carry out the project. The project 
may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by such 
committees or, if earlier, the end of the seven-day period 
beginning on the date on which a copy of the notification is 
provided in an electronic medium pursuant to section 480 of 
this title.

           *       *       *       *       *       *       *

Sec. 2804. Contingency construction

    (a) * * *
    (b) When a decision is made to carry out a military 
construction project under this section, the Secretary of 
Defense shall submit a report in writing to the [appropriate 
committees of Congress] congressional defense committees on 
that decision. Each such report shall include (1) the 
justification for the project and the current estimate of the 
cost of the project, and (2) the justification for carrying out 
the project under this section. The project may then be carried 
out only after the end of the 21-day period beginning on the 
date the notification is received by such committees or, if 
earlier, the end of the 14-day period beginning on the date on 
which a copy of the notification is provided in an electronic 
medium pursuant to section 480 of this title.

           *       *       *       *       *       *       *

Sec. 2805. Unspecified minor construction

    (a) * * *
    (b)(1) An unspecified minor military construction project 
costing more than [$750,000] $1,000,000 may not be carried out 
under this section unless approved in advance by the Secretary 
concerned. This paragraph shall apply even though the project 
is to be carried out using funds made available to enhance the 
deployment and mobility of military forces and supplies.
    (2) When a decision is made to carry out an unspecified 
minor military construction project to which paragraph (1) is 
applicable, the Secretary concerned shall notify in writing the 
[appropriate committees of Congress] congressional defense 
committees of that decision, of the justification for the 
project, and of the estimated cost of the project. The project 
may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by the 
committees or, if earlier, the end of the 14-day period 
beginning on the date on which a copy of the notification is 
provided in an electronic medium pursuant to section 480 of 
this title.
    (c)[(1) Except as provided in paragraphs (2) and (3), the 
Secretary concerned may spend from appropriations available for 
operation and maintenance amounts necessary to carry out an 
unspecified minor military construction project costing not 
more than--
            [(A) $1,500,000, in the case of an unspecified 
        minor military construction project intended solely to 
        correct a deficiency that is life-threatening, health-
        threatening, or safety-threatening; or
            [(B) $750,000, in the case of any other unspecified 
        minor military construction project.]
    (1) Except as provided in paragraphs (2) and (3), the 
Secretary concerned may spend from appropriations available for 
operation and maintenance amounts necessary to carry out an 
unspecified minor military construction project costing not 
more than $1,500,000.

           *       *       *       *       *       *       *

    (3) The [limitations] limitation specified in paragraph (1) 
shall not apply to an unspecified minor military construction 
project if the project is to be carried out using funds made 
available to enhance the deployment and mobility of military 
forces and supplies.

           *       *       *       *       *       *       *

Sec. 2806. Contributions for North Atlantic Treaty Organizations 
                    Security Investment

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) * * *
    (2) If the Secretary determines that the amount 
appropriated for contribution under subsection (a) in any 
fiscal year must be exceeded by more than the amount authorized 
under paragraph (1), the Secretary may make contributions in 
excess of such amount, but not in excess of 125 percent of the 
amount appropriated (A) after submitting a report in writing to 
the [appropriate committees of Congress] congressional defense 
committees on such increase, including a statement of the 
reasons for the increase and a statement of the source of the 
funds to be used for the increase, and (B) after a period of 21 
days has elapsed from the date of receipt of the report.

Sec. 2807. Architectural and engineering services and construction 
                    design

    (a) * * *
    (b) In the case of architectural and engineering services 
and construction design to be undertaken under subsection (a) 
for which the estimated cost exceeds $1,000,000, the Secretary 
concerned shall notify the [appropriate committees of Congress] 
congressional defense committees of the scope of the proposed 
project and the estimated cost of such services before the 
initial obligation of funds for such services. The Secretary 
may then obligate funds for such services only after the end of 
the 21-day period beginning on the date on which the 
notification is received by the committees or, if earlier, the 
end of the 14-day period beginning on the date on which a copy 
of the report is provided in an electronic medium pursuant to 
section 480 of this title.
    (c) If the Secretary concerned determines that the amount 
authorized for activities under subsection (a) in any fiscal 
year must be increased the Secretary may proceed with 
activities at such higher level (1) after submitting a report 
in writing to the [appropriate committees of Congress] 
congressional defense committees on such increase, including a 
statement of the reasons for the increase and a statement of 
the source of funds to be used for the increase, and (2) after 
a period of 21 days has elapsed from the date of receipt of the 
report or, if over sooner, a period of 14 days has elapsed from 
the date on which a copy of the report is provided in an 
electronic medium pursuant to section 480 of this title.

           *       *       *       *       *       *       *

[Sec. 2808. Construction authority in the event of a declaration of war 
                    or national emergency]

Sec. 2808. Construction authority related to declaration of war or 
                    national emergency; construction requirements 
                    related to antiterrorism and force protection

    (a) Construction Authority; Limitation.--In the event of a 
declaration of war or the declaration by the President of a 
national emergency in accordance with the National Emergencies 
Act (50 U.S.C. 1601 et seq.) that requires use of the armed 
forces, the Secretary of Defense, without regard to any other 
provision of law, may undertake military construction projects, 
and may authorize the Secretaries of the military departments 
to undertake military construction projects, not otherwise 
authorized by law that are necessary to support such use of the 
armed forces. Such projects may be undertaken only within the 
total amount of funds that have been appropriated for military 
construction, including funds appropriated for family housing, 
that have not been obligated.
    (b) Congressional Notification.--When a decision is made to 
undertake military construction projects authorized by this 
section, the Secretary of Defense shall notify the [appropriate 
committees of Congress] congressional defense committees of the 
decision and of the estimated cost of the construction 
projects, including the cost of any real estate action 
pertaining to those construction projects.
    (c) Termination.--The authority described in subsection (a) 
shall terminate with respect to any war or national emergency 
at the end of the war or national emergency.
    (d) Antiterrorism and Force Protection Assessments and 
Military Construction Requirements.--(1) The Secretary of 
Defense shall develop common guidance and criteria to be used 
by the Secretary concerned--
            (A) to assess the vulnerability of military 
        installations located inside and outside of the United 
        States to terrorist attack;
            (B) to develop construction standards designed to 
        reduce the vulnerability of structures to terrorist 
        attack and improve the security of the occupants of 
        such structures;
            (C) to prepare and carry out military construction 
        projects, such as gate and fenceline construction, to 
        improve the physical security of military 
        installations; and
            (D) to assist in prioritizing such projects within 
        the military construction budget of each of the armed 
        forces.
    (2) The Secretary of Defense shall require vulnerability 
assessments of military installations to be conducted, at 
regular intervals, using the criteria developed under paragraph 
(1).
    (3) As part of the budget materials submitted to Congress 
in connection with the submission of the budget for a fiscal 
year pursuant to section 1105 of title 31, but in no case later 
than March 15 of each year, the Secretary of Defense shall 
submit a report describing--
            (A) the location and results of the vulnerability 
        assessments conducted during the preceding fiscal year;
            (B) the military construction requirements 
        anticipated to be necessary during the next three 
        fiscal years to improve the physical security of 
        military installations; and
            (C) the extent to which funds are not requested in 
        the Department of Defense budget for the next fiscal 
        year to meet those requirements.
    (4) In the case of the report required under paragraph (3) 
to be submitted in 2006, the Secretary of Defense shall include 
a certification by the Secretary that since September 11, 2001, 
vulnerability assessments have been undertaken at all major 
military installations. The Secretary shall indicate the basis 
by which the Secretary differentiated between major and 
nonmajor military installations for purposes of making the 
certification.

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

    (a) * * *

           *       *       *       *       *       *       *

    (f) Notice and Wait Requirements.--A contract may not be 
entered into under this section until--
            (1) the Secretary concerned submits to the 
        [appropriate committees of Congress] congressional 
        defense committees, in writing, a justification of the 
        need for the facility for which the contract is to be 
        awarded and an economic analysis (based upon accepted 
        life cycle costing procedures) which demonstrates that 
        the proposed contract is cost effective when compared 
        with alternative means of furnishing the same facility; 
        and

           *       *       *       *       *       *       *

Sec. 2811. Repair of facilities

    (a) * * *

           *       *       *       *       *       *       *

    (d) Congressional Notification.--When a decision is made to 
carry out a repair project under this section with an estimated 
cost in excess of [$10,000,000] $7,500,000, the Secretary 
concerned shall submit to the [appropriate committees of 
Congress] congressional defense committees a report 
containing--
            (1) * * *

           *       *       *       *       *       *       *

Sec. 2812. Lease-purchase of facilities

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) The Secretary concerned may not enter into a lease 
under this section until--
            (A) the Secretary submits to the [appropriate 
        committees of Congress] congressional defense 
        committees a justification of the need for the facility 
        for which the proposed lease is being entered into and 
        an economic analysis (based upon accepted life-cycle 
        costing procedures) that demonstrates the cost 
        effectiveness of the proposed lease compared with a 
        military construction project for the same facility; 
        and

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice and Wait Requirements.--A contract may not be 
entered into for the acquisition of a facility under subsection 
(a) until the Secretary concerned transmits to the [appropriate 
committees of Congress] congressional defense committees a 
written notification of the determination to acquire an 
existing facility instead of carrying out the authorized 
military construction project. The notification shall include 
the reasons for acquiring the facility. After the notification 
is transmitted, the Secretary may then enter into the contract 
only after the end of the 30-day period beginning on the date 
on which the notification is received by the committees or, if 
earlier, the end of the 21-day period beginning on the date on 
which a copy of the report is provided in an electronic medium 
pursuant to section 480 of this title.

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

    (a) In General.--(1) * * *
    (2) The Secretary of the Navy may not exercise any 
authority under this section until--
            (A) the Secretary submits to the [appropriate 
        committees of Congress] congressional defense 
        committees a master plan for the development of Ford 
        Island, Hawaii; and

           *       *       *       *       *       *       *

    (g) Notice and Wait Requirements.--The Secretary of the 
Navy may not carry out a transaction authorized by this section 
until--
            (1) the Secretary submits to the [appropriate 
        committees of Congress] congressional defense 
        committees a notification of the transaction, 
        including--
                    (A) a detailed description of the 
                transaction; and
                    (B) a justification for the transaction 
                specifying the manner in which the transaction 
                will meet the purposes of this section; and

           *       *       *       *       *       *       *

SUBCHAPTER II--MILITARY FAMILY HOUSING

           *       *       *       *       *       *       *

Sec. 2825. Improvements to family housing units

    (a) * * *
    (b)(1) Funds may not be expended for the improvement of any 
single family housing unit, or for the improvement of two or 
more housing units that are to be converted into or are to be 
used as a single family housing unit, if the cost per unit of 
such improvement will exceed (A) $50,000 multiplied by the area 
construction cost index as developed by the Department of 
Defense for the location concerned at the time of contract 
award, or (B) in the case of improvements necessary to make the 
unit suitable for habitation by a handicapped person, $60,000 
multiplied by such index. The Secretary concerned may waive the 
limitations contained in the preceding sentence if such 
Secretary determines that, considering the useful life of the 
structure to be improved and the useful life of a newly 
constructed unit and the cost of construction and of operation 
and maintenance of each kind of unit over its useful life, the 
improvement will be cost-effective. If the Secretary concerned 
makes a determination under the preceding sentence with respect 
to an improvement, the waiver under that sentence with respect 
to that improvement may take effect only after the Secretary 
transmits a notice of the proposed waiver, together with an 
economic analysis demonstrating that the improvement will be 
cost effective, to the [appropriate committees of Congress] 
congressional defense committees and a period of 21 days has 
elapsed after the date on which the notification is received by 
those committees or, if over sooner, a period of 14 days has 
elapsed after the date on which a copy of the notice is 
provided in an electronic medium pursuant to section 480 of 
this title.

           *       *       *       *       *       *       *

Sec. 2827. Relocation of military family housing units

    (a) * * *
    (b) A contract to carry out a relocation of military family 
housing units under subsection (a) may not be awarded until (1) 
the Secretary concerned has notified the [appropriate 
committees of Congress] congressional defense committees of the 
proposed new locations of the housing units to be relocated and 
the estimated cost of and source of funds for the relocation, 
and (2) a period of 21 days has elapsed after the notification 
has been received by those committees or, if over sooner, a 
period of 14 days has elapsed after the date on which a copy of 
the notification is provided in an electronic medium pursuant 
to section 480 of this title.

Sec. 2828. Leasing of military family housing

    (a) * * *

           *       *       *       *       *       *       *

    (f) A lease for family housing facilities, or for real 
property related to family housing facilities, in a foreign 
country for which the average estimated annual rental during 
the term of the lease exceeds $500,000 may not be made under 
this section until (1) the Secretary concerned provides to the 
[appropriate committees of Congress] congressional defense 
committees written notification of the facts concerning the 
proposed lease, and (2) a period of 21 days elapses after the 
notification is received by those committees.

           *       *       *       *       *       *       *

Sec. 2831. Military family housing management account

    (a) * * *

           *       *       *       *       *       *       *

    (e) Annual Report of Cost of General Officers and Flag 
Officers Quarters.--As part of the budget materials submitted 
to Congress in connection with the submission of the budget for 
a fiscal year pursuant to section 1105 of title 31, but in no 
case later than March 30 of each year, the Secretary of Defense 
shall submit a report--
            (1) identifying family housing units used, or 
        intended for use, as quarters for general officers or 
        flag officers for which the total operation and 
        maintenance costs, utility costs, and repair costs are 
        anticipated to exceed $20,000 in the next fiscal year; 
        and
            (2) specifying the total of such costs for each 
        unit of family housing identified under paragraph (1).

           *       *       *       *       *       *       *

Sec. 2835. Long-term leasing of military family housing to be 
                    constructed

    (a) * * *

           *       *       *       *       *       *       *

    (g) Notice and Wait Requirements.--A contract may not be 
entered into for the lease of housing facilities under this 
section until--
            (1) the Secretary of Defense, or the Secretary of 
        Homeland Security with respect to the Coast Guard, 
        submits to the [appropriate committees of Congress] 
        congressional defense committees, in writing, an 
        economic analysis (based upon accepted life cycle 
        costing procedures) which demonstrates that the 
        proposed contract is cost-effective when compared with 
        alternative means of furnishing the same housing 
        facilities; and
            (2) a period of 21 calendar days has expired 
        following the date on which the economic analysis is 
        received by those committees.

           *       *       *       *       *       *       *

Sec. 2836. Military housing rental guarantee program

    (a) * * *

           *       *       *       *       *       *       *

    (f) Notice and Wait Requirements.--An agreement may not be 
entered into under subsection (a) until--
            (1) the Secretary of Defense, or the Secretary of 
        Homeland Security with respect to the Coast Guard, 
        submits to the [appropriate committees of Congress] 
        congressional defense committees, in writing, an 
        economic analysis (based upon accepted life cycle 
        costing procedures) which demonstrates that the 
        proposed agreement is cost effective when compared with 
        alternative means of furnishing the same housing 
        facilities; and
            (2) a period of 21 days has expired following the 
        date on which the economic analysis is received by 
        those committees or, if over sooner, a period of 14 
        days has expired following the date on which a copy of 
        the economic analysis is provided in an electronic 
        medium pursuant to section 480 of this title.

           *       *       *       *       *       *       *

Sec. 2837. Limited partnerships with private developers of housing

    (a) * * *

           *       *       *       *       *       *       *

    (c) Selection of Investment Opportunities.--(1) * * *
    (2) When a decision is made to enter into a limited 
partnership under subsection (a), the Secretary concerned shall 
submit a report in writing to the [appropriate committees of 
Congress] congressional defense committees on that decision. 
Each such report shall include the justification for the 
limited partnership, the terms and conditions of the limited 
partnership, a description of the development costs for 
projects under the limited partnership, and a description of 
the share of such costs to be incurred by the Secretary 
concerned. The Secretary concerned may then enter into the 
limited partnership only after the end of the 21-day period 
beginning on the date the report is received by such committees 
or, if earlier, the end of the 14-day period beginning on the 
date on which a copy of the report is provided in an electronic 
medium pursuant to section 480 of this title.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Sec. 2853. Authorized cost variations

    (a) * * *

           *       *       *       *       *       *       *

    (c) The limitation on cost increase in subsection (a) or 
the limitation on scope reduction in subsection (b) does not 
apply if--
            (1) * * *
            (2) the Secretary concerned notifies the 
        [appropriate committees of Congress] congressional 
        defense committees in writing of the increase or 
        reduction and the reasons therefor; and
            (3) a period of 21 days has elapsed after the date 
        on which the notification is received by the committees 
        or, if over sooner, a period of 14 days has elapsed 
        after the date on which a copy of the notification is 
        provided in an electronic medium pursuant to section 
        480 of this title.

           *       *       *       *       *       *       *

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

    (a) * * *
    (b) When a decision is made to carry out construction under 
this section and the cost of the repair, restoration, or 
replacement is greater than the maximum amount for a minor 
construction project, the Secretary concerned shall notify in 
writing the [appropriate committees of Congress] congressional 
defense committees of that decision, of the justification for 
the project, of the current estimate of the cost of the 
project, of the source of funds for the project, and of the 
justification for carrying out the project under this section. 
The project may then be carried out only after the end of the 
21-day period beginning on the date the notification is 
received by such committees or, if earlier, the end of the 
seven-day period beginning on the date on which a copy of the 
notification is provided in an electronic medium pursuant to 
section 480 of this title.

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

    (a) * * *

           *       *       *       *       *       *       *

    (c) Notice and Wait Requirements.--The Secretary concerned 
may not enter into an agreement to convey a family housing 
facility under this section until--
            (1) the Secretary submits to the [appropriate 
        committees of Congress] congressional defense 
        committees, in writing, a justification for the 
        conveyance under the agreement, including--
                    (A) an estimate of the consideration to be 
                provided the United States under the agreement;
                    (B) an estimate of the cost of repairing 
                the family housing facility to be conveyed; and
                    (C) an estimate of the cost of replacing 
                the family housing facility to be conveyed; and

           *       *       *       *       *       *       *

Sec. 2865. Energy savings at military installations

    (a) * * *

           *       *       *       *       *       *       *

    (e) Energy Conservation Construction Projects.--(1) * * *
    (2) When a decision is made to carry out a project under 
paragraph (1), the Secretary of Defense shall notify in writing 
the [appropriate committees of Congress] congressional defense 
committees of that decision. The project may then be carried 
out only after the end of the 21-day period beginning on the 
date the notification is received by such committees or, if 
earlier, the end of the 14-day period beginning on the date on 
which a copy of the notification is provided in an electronic 
medium pursuant to section 480 of this title.

           *       *       *       *       *       *       *

Sec. 2866. Water conservation at military installations

    (a) * * *

           *       *       *       *       *       *       *

    (c) Water Conservation Construction Projects.--(1) * * *
    (2) When a decision is made to carry out a project under 
paragraph (1), the Secretary of Defense shall notify the 
[appropriate committees of Congress] congressional defense 
committees of that decision. Such project may be carried out 
only after the end of the 21-day period beginning on the date 
the notification is received by such committees or, if earlier, 
the end of the 14-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium 
pursuant to section 480 of this title.

           *       *       *       *       *       *       *

Sec. 2868. Utility services: furnishing for certain buildings

    Appropriations for the Department of Defense may be used 
for utility services [for--
            [(1) buildings constructed at private cost, as 
        authorized by law; and
            [(2) buildings on military reservations authorized 
        by regulation to be used for morale, welfare, and 
        recreational purposes.] for buildings constructed at 
        private cost, as authorized by law.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Sec. 2875. Investments

    (a) * * *

           *       *       *       *       *       *       *

    (e) Congressional Notification Required.--Amounts in the 
Department of Defense Family Housing Improvement Fund or the 
Department of Defense Military Unaccompanied Housing 
Improvement Fund may be used to make a cash investment under 
this section in an eligible entity only after the end of the 
30-day period beginning on the date the Secretary of Defense 
submits written notice of, and justification for, the 
investment to the [appropriate committees of Congress] 
congressional defense committees or, if earlier, the end of the 
14-day period beginning on the date on which a copy of the 
notice and justification is provided in an electronic medium 
pursuant to section 480 of this title.

           *       *       *       *       *       *       *

Sec. 2881a. Pilot projects for acquisition or construction of military 
                    unaccompanied housing

    (a) * * *

           *       *       *       *       *       *       *

    (d) Funding.--(1) * * *
    (2) Subject to 90 days prior notification to the 
[appropriate committees of Congress] congressional defense 
committees, such additional amounts as the Secretary of Defense 
considers necessary may be transferred to the Department of 
Defense Military Unaccompanied Housing Improvement Fund from 
amounts appropriated for construction of military unaccompanied 
housing in military construction accounts. The amounts so 
transferred shall be merged with and be available for the same 
purposes and for the same period of time as amounts 
appropriated directly to the Fund.
    (e) Reports.--(1) The Secretary of the Navy shall transmit 
to the [appropriate committees of Congress] congressional 
defense committees a report describing--
            (A) * * *

           *       *       *       *       *       *       *

Sec. 2883. Department of Defense Housing Funds

    (a) * * *

           *       *       *       *       *       *       *

    (f) Notification Required for Transfers.--A transfer of 
appropriated amounts to a Fund under paragraph (1)(B) or (2)(B) 
of subsection (c) may be made only after the end of the 30-day 
period beginning on the date the Secretary of Defense submits 
written notice of, and justification for, the transfer to the 
[appropriate committees of Congress] congressional defense 
committees or, if earlier, the end of the 14-day period 
beginning on the date on which a copy of the notice and 
justification is provided in an electronic medium pursuant to 
section 480 of this title.
    [(g) Limitation on Amount of Budget Authority.--The total 
value in budget authority of all contracts and investments 
undertaken using the authorities provided in this subchapter 
shall not exceed--
            [(1) $850,000,000 for the acquisition or 
        construction of military family housing; and
            [(2) $150,000,000 for the acquisition or 
        construction of military unaccompanied housing.]
    (g) Limitation on Use of Authority to Acquire or Construct 
Military Unaccompanied Housing.--The total value in budget 
authority of all contracts and investments undertaken using the 
authorities provided in this subchapter for the acquisition or 
construction of military unaccompanied housing shall not exceed 
$150,000,000.

           *       *       *       *       *       *       *

Sec. 2884. Reports

    (a) Project Reports.--(1) The Secretary of Defense shall 
transmit to the [appropriate committees of Congress] 
congressional defense committees a report describing--
            (A) * * *

           *       *       *       *       *       *       *

Subtitle B--Army

           *       *       *       *       *       *       *

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 305--THE ARMY STAFF

           *       *       *       *       *       *       *

Sec. 3033. Chief of Staff

    (a)(1) There is a Chief of Staff of the Army, appointed 
[for a period of four years] by the President, by and with the 
advice and consent of the Senate, from the general officers of 
the Army. [He serves at the pleasure of the President. In time 
of war or during a national emergency declared by Congress, he 
may be reappointed for a term of not more than four years.] The 
Chief of Staff serves at the pleasure of the President for a 
term of four years. The President may extend the service of an 
officer as Chief of Staff for an additional period of not to 
exceed two years. In time of war or during a national emergency 
declared by Congress, the President may extend the service of 
an officer as Chief of Staff for such additional periods as the 
President determines necessary, except that the total period of 
an officer's service as Chief of Staff may not exceed eight 
years.

           *       *       *       *       *       *       *

Sec. 3038. Office of Army Reserve: appointment of Chief

    (a) * * *

           *       *       *       *       *       *       *

    (b) Appointment.--(1) * * *

           *       *       *       *       *       *       *

    (4) Until [December 31, 2004,] December 31, 2006, the 
Secretary of Defense may waive subparagraph (B) of paragraph 
(2) with respect to the appointment of an officer as Chief of 
Army Reserve if the Secretary of the Army requests the waiver 
and, in the judgment of the Secretary of Defense--
            (A) * * *

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                  CHAPTER 357--DECORATIONS AND AWARDS

Sec.
3741.    Medal of honor: award.
     * * * * * * *
[3755] 3756.    Korea Defense Service Medal.

           *       *       *       *       *       *       *

Sec. [3755] 3756. Korea Defense Service Medal

    (a) * * *

           *       *       *       *       *       *       *

             CHAPTER 367--RETIREMENT FOR LENGTH OF SERVICE

Sec.
3911.    Twenty years or more: regular or reserve commissioned officers.
     * * * * * * *
[3921.    Mandatory retirement: Superintendent of the United States 
          Military Academy.]

           *       *       *       *       *       *       *

[Sec. 3921. Mandatory retirement: Superintendent of the United States 
                    Military Academy

    [Upon the termination of the detail of an officer to the 
position of Superintendent of the United States Military 
Academy, the Secretary of the Army shall retire the officer 
under any provision of this chapter under which that officer is 
eligible to retire.]

           *       *       *       *       *       *       *

PART III--TRAINING

           *       *       *       *       *       *       *

              CHAPTER 403--UNITED STATES MILITARY ACADEMY

Sec.
4331.    Establishment; Superintendent; faculty.
     * * * * * * *
[4333a.   Superintendent: condition for detail to position.]
4333a.   Superintendent: length of assignment.
     * * * * * * *
4359.   Cadets: charges and fees for attendance; limitation.

           *       *       *       *       *       *       *

[Sec. 4333a. Superintendent: condition for detail to position

    [As a condition for detail to the position of 
Superintendent of the Academy, an officer shall acknowledge 
that upon termination of that detail the officer shall be 
retired.]

Sec. 4333a. Superintendent: length of assignment

    An officer who is detailed to the position of 
Superintendent of the Academy shall be so detailed for a period 
of not less than three years. In any case in which an officer 
serving as Superintendent is reassigned or retires before 
having completed three years service as Superintendent, or 
otherwise leaves that position (other than due to death) 
without having completed three years service in that position, 
the Secretary of the Army shall submit to Congress notice that 
such officer left the position of Superintendent without having 
completed three years service in that position, together with a 
statement of the reasons why that officer did not complete 
three years service in that position.

           *       *       *       *       *       *       *

Sec. 4359. Cadets: charges and fees for attendance; limitation

    (a) Prohibition.--Except as provided in subsection (b), no 
charge or fee for tuition, room, or board for attendance at the 
Academy may be imposed unless the charge or fee is specifically 
authorized by a law enacted after October 5, 1994.
    (b) Exception.--The prohibition specified in subsection (a) 
does not apply with respect to any item or service provided to 
cadets for which a charge or fee is imposed as of October 5, 
1994. The Secretary of Defense shall notify Congress of any 
change made by the Academy in the amount of a charge or fee 
authorized under this subsection.

           *       *       *       *       *       *       *

PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *

CHAPTER 443--DISPOSAL OF OBSOLETE OR SURPLUS MATERIAL

           *       *       *       *       *       *       *

Sec. 4689. Transfer of material and equipment to the Architect of the 
                    Capitol

  The Secretary of the Army is authorized to transfer, without 
payment, to the Architect of the Capitol, such material and 
equipment, not required by the Department of the Army, as the 
Architect may request for use at the Capitol power plant, the 
Capitol [Building], and the Senate and House Office Buildings.

           *       *       *       *       *       *       *

                      CHAPTER 447--TRANSPORTATION

Sec.
[4741.    Control and supervision.
[4743.    Officers: use of transportation.
[4744.    Persons and supplies: sea transportation.
[4745.    Civilian passengers and commercial cargoes: transports in 
          trans-Atlantic service.
[4746.    Civilian personnel in Alaska.
[4747.    Passengers and merchandise to Guam: sea transport.]

           *       *       *       *       *       *       *

[Sec. 4741. Control and supervision

    [The transportation of members, munitions of war, 
equipment, military property, and stores of the Army throughout 
the United States shall be under the immediate control and 
supervision of the Secretary of the Army and agents appointed 
or designated by him.

[Sec. 4743. Officers: use of transportation

    [Under such conditions as the Secretary of the Army may 
prescribe, officers of the Army may, in the performance of 
their duties, use means of transportation provided for the Army 
and its supplies.]

           *       *       *       *       *       *       *

Subtitle C--Navy and Marine Corps

           *       *       *       *       *       *       *

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 505--OFFICE OF THE CHIEF OF NAVAL OPERATIONS

           *       *       *       *       *       *       *

Sec. 5033. Chief of Naval Operations

    (a)(1) There is a Chief of Naval Operations, appointed by 
the President, by and with the advice and consent of the 
Senate. The Chief of Naval Operations shall be appointed for a 
term of four years, from the flag officers of the Navy. [He 
serves at the pleasure of the President. In time of war or 
during a national emergency declared by Congress, he may be 
reappointed for a term of not more than four years.] The Chief 
of Naval Operations serves at the pleasure of the President. 
The President may extend the service of an officer as Chief of 
Naval Operations for an additional period of not to exceed two 
years. In time of war or during a national emergency declared 
by Congress, the President may extend the service of an officer 
as Chief of Naval Operations for such additional periods as the 
President determines necessary, except that the total period of 
an officer's service as Chief of Naval Operations may not 
exceed eight years.

           *       *       *       *       *       *       *

Sec. 5036. Deputy Chiefs of Naval Operations

    (a) There are in the Office of the Chief of Naval 
Operations not more than five Deputy Chiefs of Naval 
Operations, detailed by the Secretary of the Navy from officers 
on the active-duty list [in the line] of the Navy serving in 
grades above captain.

           *       *       *       *       *       *       *

Sec. 5037. Assistant Chiefs of Naval Operations

    (a) There are in the Office of the Chief of Naval 
Operations not more than three Assistant Chiefs of Naval 
Operations, detailed by the Secretary of the Navy from officers 
on the active-duty list [in the line] of the Navy and officers 
on the active-duty list of the Marine Corps.

           *       *       *       *       *       *       *

CHAPTER 506--HEADQUARTERS, MARINE CORPS

           *       *       *       *       *       *       *

Sec. 5043. Commandant of the Marine Corps

    (a)(1) There is a Commandant of the Marine Corps, appointed 
by the President, by and with the advice and consent of the 
Senate. The Commandant shall be appointed for a term of four 
years from the general officers of the Marine Corps. [He serves 
at the pleasure of the President. In time of war or during a 
national emergency declared by Congress, he may be reappointed 
for a term of not more than four years.] The Commandant serves 
at the pleasure of the President. The President may extend the 
service of an officer as Commandant for an additional period of 
not to exceed two years. In time of war or during a national 
emergency declared by Congress, the President may extend the 
service of an officer as Commandant for such additional periods 
as the President determines necessary, except that the total 
period of an officer's service as Commandant may not exceed 
eight years.

           *       *       *       *       *       *       *

CHAPTER 513--BUREAUS; OFFICE OF THE JUDGE ADVOCATE GENERAL

           *       *       *       *       *       *       *

Sec. 5143. Office of Naval Reserve: appointment of Chief

    (a) * * *

           *       *       *       *       *       *       *

    (b) Appointment.--(1) * * *

           *       *       *       *       *       *       *

    (4) Until [December 31, 2004,] December 31, 2006, the 
Secretary of Defense may waive subparagraph (B) of paragraph 
(2) with respect to the appointment of an officer as Chief of 
Naval Reserve if the Secretary of the Navy requests the waiver 
and, in the judgment of the Secretary of Defense--
            (A) * * *

           *       *       *       *       *       *       *

Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

    (a) * * *
    (b) Appointment.--(1) * * *

           *       *       *       *       *       *       *

    (4) Until [December 31, 2004,] December 31, 2006, the 
Secretary of Defense may waive subparagraph (B) of paragraph 
(2) with respect to the appointment of an officer as Commander, 
Marine Forces Reserve, if the Secretary of the Navy requests 
the waiver and, in the judgment of the Secretary of Defense--
            (A) * * *

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                  CHAPTER 567--DECORATIONS AND AWARDS

Sec.
6241.    Medal of honor.
     * * * * * * *
[6257] 6258.    Korea Defense Service Medal.

           *       *       *       *       *       *       *

Sec. [6257] 6258. Korea Defense Service Medal

    (a) * * *

           *       *       *       *       *       *       *

     CHAPTER 573--INVOLUNTARY RETIREMENT, SEPARATION, AND FURLOUGH

Sec.
[6371.    Mandatory retirement: Superintendent of the United States 
          Naval Academy.]
     * * * * * * *

[Sec. 6371. Mandatory retirement: Superintendent of the United States 
                    Naval Academy

    [Upon the termination of the detail of an officer to the 
position of Superintendent of the United States Naval Academy, 
the Secretary of the Navy shall retire the officer under any 
provision of chapter 571 of this title under which the officer 
is eligible to retire.]

           *       *       *       *       *       *       *

PART III--EDUCATION AND TRAINING

           *       *       *       *       *       *       *

                CHAPTER 603--UNITED STATES NAVAL ACADEMY

Sec.
6951.    Location.
     * * * * * * *
4359.    Midshipmen: charges and fees for attendance; limitation.

           *       *       *       *       *       *       *

Sec. 6951a. Superintendent

    (a) * * *
    (b) The Superintendent shall be detailed to that position 
by the President. [As a condition for detail to that position, 
an officer shall acknowledge that upon termination of that 
detail the officer shall be retired.]
    (c) An officer who is detailed to the position of 
Superintendent shall be so detailed for a period of not less 
than three years. In any case in which an officer serving as 
Superintendent is reassigned or retires before having completed 
three years service as Superintendent, or otherwise leaves that 
position (other than due to death) without having completed 
three years service in that position, the Secretary of the Navy 
shall submit to Congress notice that such officer left the 
position of Superintendent without having completed three years 
service in that position, together with a statement of the 
reasons why that officer did not complete three years service 
in that position.

           *       *       *       *       *       *       *

Sec. 6978. Midshipmen: charges and fees for attendance; limitation

    (a) Prohibition.--Except as provided in subsection (b), no 
charge or fee for tuition, room, or board for attendance at the 
Naval Academy may be imposed unless the charge or fee is 
specifically authorized by a law enacted after October 5, 1994.
    (b) Exception.--The prohibition specified in subsection (a) 
does not apply with respect to any item or service provided to 
midshipmen for which a charge or fee is imposed as of October 
5, 1994. The Secretary of Defense shall notify Congress of any 
change made by the Naval Academy in the amount of a charge or 
fee authorized under this subsection.

          CHAPTER 605--UNITED STATES NAVAL POSTGRADUATE SCHOOL

Sec.
7041.    Function.
[7042.    Superintendent; assistants.
[7043.    Academic Dean.]
7042.    President; assistants.
7043.    Provost and Academic Dean.

           *       *       *       *       *       *       *

[Sec. 7042. Superintendent; assistants]

Sec. 7042. President; assistants

    (a) The Secretary of the Navy shall detail as 
[Superintendent] President of the Naval Postgraduate School an 
officer on the active-duty list in the line of the Navy 
eligible for command at sea not below the grade of captain. The 
[Superintendent] President has military command of the 
Postgraduate School.
    (b) The Secretary shall detail officers of the Navy and the 
Marine Corps of appropriate grades and qualifications to assist 
the [Superintendent] President in--
            (1) the advanced instruction and technical 
        education of students; and
            (2) the administration of the Postgraduate School.

[Sec. 7043. Academic Dean]

    [(a) There is at the Naval Postgraduate School the civilian 
position of Academic Dean. The Academic Dean shall be 
appointed, to serve for periods of not more than five years, by 
the Secretary of the Navy upon the recommendation of the 
Postgraduate School Council consisting of the Superintendent, 
the Deputy Superintendent, and the directors of the Technical, 
Administrative, and Professional Divisions of the school.]

Sec. 7043. Provost and Academic Dean

    (a) There is at the Naval Postgraduate School the civilian 
position of Provost and Academic Dean. The Provost and Academic 
Dean shall be appointed, to serve for periods of not more than 
five years, by the Secretary of the Navy after consultation 
with the Naval Postgraduate School Board of Advisors and 
consideration of the recommendation of the leadership and 
faculty of the Naval Postgraduate School.
    (b) The [Academic Dean] Provost and Academic Dean is 
entitled to such compensation for his services as the Secretary 
prescribes, but not more than the rate of compensation 
authorized for level IV of the Executive Schedule.

Sec. 7044. Civilian teachers: number; compensation

    The Secretary of the Navy may employ as many civilians as 
he considers necessary to serve at the Naval Postgraduate 
School under the direction of the [Superintendent] President of 
the school as senior professors, professors, associate 
professors, assistant professors, and instructors. The 
Secretary shall prescribe the compensation of those persons.

           *       *       *       *       *       *       *

Sec. 7048. Conferring of degree on graduates

    (a) The [Superintendent] President of the Naval 
Postgraduate School, under regulations prescribed by the 
Secretary of the Navy, may confer on any qualified graduate a 
bachelor's, master's, or doctor's degree in engineering or a 
related field.

           *       *       *       *       *       *       *

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

    (a) * * *

           *       *       *       *       *       *       *

    (e) Tuition.--The [Superintendent] of the school shall 
charge tuition for students enrolled under this section at a 
rate not less than the rate charged for employees of the United 
States outside the Department of the Navy.

           *       *       *       *       *       *       *

CHAPTER 609--PROFESSIONAL MILITARY EDUCATION SCHOOLS

           *       *       *       *       *       *       *

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

    (a) [Authority] Master of Military Studies.--Upon the 
recommendation of the Director and faculty of the Command and 
Staff College of the Marine Corps University, the President of 
the Marine Corps University may confer the degree of master of 
military studies upon graduates of the Command and Staff 
College who fulfill the requirements for that degree.
    (b) [Marine Corps War College] Master of Strategic 
Studies.--Upon the recommendation of the Director and faculty 
of the Marine Corps War College of the Marine Corps University, 
the President of the Marine Corps University may confer the 
degree of master of strategic studies upon graduates of the 
Marine Corps War College who fulfill the requirements for that 
degree.
    (c) [Command and Staff College of the Marine Corps 
University] Master of Operational Studies.--Upon the 
recommendation of the Director and faculty of the Command and 
Staff College of the Marine Corps University, the President of 
the Marine Corps University may confer the degree of master of 
operational studies upon graduates of the Command and Staff 
College's School of Advanced Warfighting who fulfill the 
requirements for that degree.
    (d) Regulations.--The authority provided by [subsections 
(a) and (b)] this section shall be exercised under regulations 
prescribed by the Secretary of the Navy.

           *       *       *       *       *       *       *

PART IV--GENERAL ADMINISTRATION

           *       *       *       *       *       *       *

  CHAPTER 631--SECRETARY OF THE NAVY: MISCELLANEOUS POWERS AND DUTIES

Sec.
7204.    Schools near naval activities: financial aid.
     * * * * * * *
7234.    Submarine safety programs: participation of allied naval 
          personnel.

           *       *       *       *       *       *       *

Sec. 7234. Submarine safety programs: participation of allied naval 
                    personnel

    (a) Acceptance of Assignment of Foreign Naval Personnel.--
In order to facilitate the development, standardization, and 
interoperability of submarine vessel safety and rescue systems 
and procedures, the Secretary of the Navy may conduct a program 
under which members of the naval service of any of the member 
nations of the North Atlantic Treaty Organization and 
Australia, Japan, the Republic of Korea, and Sweden may be 
assigned to United States commands to work on such systems and 
procedures.
    (b) Costs for Foreign Personnel.--(1) The United States may 
not pay the following costs for a member of a foreign naval 
service sent to the United States under the program authorized 
by this section:
            (A) Salary.
            (B) Per diem.
            (C) Cost of living.
            (D) Travel costs.
            (E) Cost of language or other training.
            (F) Other costs.
    (2) Paragraph (1) does not apply to the following costs, 
which may be paid by the United States:
            (A) The cost of temporary duty directed by the 
        United States Navy.
            (B) The cost of training programs conducted to 
        familiarize, orient, or certify members of foreign 
        naval services regarding unique aspects of their 
        assignments.
            (C) Costs incident to the use of the facilities of 
        the United States Navy in the performance of assigned 
        duties.
    (d) Applicability to Authority to Enter Into Agreements.--
The requirements of this section shall apply in the exercise of 
any authority of the Secretary of the Navy to enter into an 
agreement with the government of a foreign country, subject to 
the concurrence of the Secretary of State, to provide for the 
assignment of members of the naval service of the foreign 
country to a United States Navy submarine safety program.
    (e) Regulations.--The Secretary of the Navy may prescribe 
regulations for the application of this section in the exercise 
of authority referred to in subsection (d).

           *       *       *       *       *       *       *

CHAPTER 633--NAVAL VESSELS

           *       *       *       *       *       *       *

Sec.
7291.    Classification.
     * * * * * * *
7305a.    Vessels stricken from Naval Vessel Register: contracts for 
          dismantling on net-cost basis.

           *       *       *       *       *       *       *

Sec. 7305a. Vessels stricken from Naval Vessel Register: contracts for 
                    dismantling on net-cost basis

    (a) Authority for Net-Cost Basis Contracts.--When the 
Secretary of the Navy awards a contract for the dismantling of 
a vessel stricken from the Naval Vessel Register, the Secretary 
may award the contract on a net-cost basis.
    (b) Retention by Contractor of Proceeds of Sale of Scrap 
and Reusable Items.--When the Secretary awards a contract on a 
net-cost basis under subsection (a), the Secretary shall 
provide in the contract that the contractor may retain the 
proceeds from the sale of scrap and reusable items removed from 
the vessel dismantled under the contract.
    (c) Definitions.--In this section:
            (1) The term ``net-cost basis'', with respect to a 
        contract for the dismantling of a vessel, means that 
        the amount to be paid to the contractor under the 
        contract for dismantling and for removal and disposal 
        of hazardous waste material is discounted by the 
        offeror's estimate of the value of scrap and reusable 
        items that the contractor will remove from the vessel 
        during performance of the contract.
            (2) The term ``scrap'' means personal property that 
        has no value except for its basic material content.
            (3) The term ``reusable item'' means a 
        demilitarized component or a removable portion of a 
        vessel or equipment that the Secretary of the Navy has 
        identified as excess to the needs of the Navy but which 
        has potential resale value on the open market.

           *       *       *       *       *       *       *

Subtitle D--Air Force

           *       *       *       *       *       *       *

PART I--ORGANIZATION

           *       *       *       *       *       *       *

CHAPTER 805--THE AIR STAFF

           *       *       *       *       *       *       *

Sec. 8033. Chief of Staff

    (a)(1) There is a Chief of Staff of the Air Force, 
appointed [for a period of four years] by the President, by and 
with the advice and consent of the Senate, from the general 
officers of the Air Force. [He serves at the pleasure of the 
President. In time of war or during a national emergency 
declared by Congress, he may be reappointed for a term of not 
more than four years.] The Chief of Staff serves at the 
pleasure of the President for a period of four years. The 
President may extend the service of an officer as Chief of 
Staff for an additional period of not to exceed two years. In 
time of war or during a national emergency declared by 
Congress, the President may extend the service of an officer as 
Chief of Staff for such additional periods as the President 
determines necessary, except that the total period of an 
officer's service as Chief of Staff may not exceed eight years.

           *       *       *       *       *       *       *

Sec. 8038. Office of Air Force Reserve: appointment of Chief

    (a) * * *
    (b) Appointment.--(1) * * *

           *       *       *       *       *       *       *

    (4) Until [December 31, 2004,] December 31, 2006, the 
Secretary of Defense may waive subparagraph (B) of paragraph 
(2) with respect to the appointment of an officer as Chief of 
Air Force Reserve if the Secretary of the Air Force requests 
the waiver and, in the judgment of the Secretary of Defense--
            (A) * * *

           *       *       *       *       *       *       *

CHAPTER 807--THE AIR FORCE

           *       *       *       *       *       *       *

Sec. 8084. Officer career field for space

    The Secretary of the Air Force shall establish and 
implement policies and procedures to develop a career field for 
officers in the Air Force with technical competence in space-
related matters to have the [capabilty] capability to--
            (1) * * *

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

                  CHAPTER 857--DECORATIONS AND AWARDS

Sec.
8741.    Medal of honor: award.
     * * * * * * *
[8755] 8756.    Korea Defense Service Medal.

           *       *       *       *       *       *       *

Sec. [8755] 8756. Korea Defense Service Medal

    (a) * * *

           *       *       *       *       *       *       *

CHAPTER 867--RETIREMENT FOR LENGTH OF SERVICE

           *       *       *       *       *       *       *

[Sec. 8921. Mandatory retirement: Superintendent of the United States 
                    Air Force Academy

    [Upon the termination of the detail of an officer to the 
position of Superintendent of the United States Air Force 
Academy, the Secretary of the Air Force shall retire the 
officer under any provision of this chapter under which the 
officer is eligible to retire.]

           *       *       *       *       *       *       *

PART III--TRAINING

           *       *       *       *       *       *       *

                    CHAPTER 901--TRAINING GENERALLY

Sec.
9301.    Members of Air Force: detail as students, observers, and 
          investigators at educational institutions, industrial plants, 
          and hospitals.
     * * * * * * *
9317.    Air University: [graduate-level] degrees.
     * * * * * * *

Sec. 9315. Community College of the Air Force: associate degrees

    (a) * * *

           *       *       *       *       *       *       *

    (c) Conferral of Degrees.--(1) Subject to paragraph (2), 
the commander of the [Air Education and Training Command of the 
Air Force] Air University may confer an academic degree at the 
level of associate upon any enlisted member who has completed 
the program prescribed by the Community College of the Air 
Force.
    (2) No degree may be conferred upon any enlisted member 
under this section unless (A) the Community College of the Air 
Force certifies to the commander of the [Air Education and 
Training Command of the Air Force] Air University that such 
member has satisfied all the requirements prescribed for such 
degree, and (B) the Secretary of Education determines that the 
standards for the award of academic degrees in agencies of the 
United States have been met.

           *       *       *       *       *       *       *

Sec. 9317. Air University: [graduate-level] degrees

    (a) Authority.--Upon the recommendation of the faculty of 
the appropriate school of the Air University, the commander of 
the Air University [may confer--] may confer degrees as 
follows:
            (1) [the] The degree of master of strategic studies 
        upon graduates of the Air War College who fulfill the 
        requirements for that degree[;].
            (2) [the] The degree of master of military 
        operational art and science upon graduates of the Air 
        Command and Staff College who fulfill the requirements 
        for that degree[; and].
            (3) [the] The degree of master of airpower art and 
        science upon graduates of the School of Advanced 
        Airpower Studies who fulfill the requirements for that 
        degree.
            (4) An associate level degree upon graduates of the 
        Community College of the Air Force.

           *       *       *       *       *       *       *

              CHAPTER 903--UNITED STATES AIR FORCE ACADEMY

Sec.
9331.    Establishment; Superintendent; faculty.
     * * * * * * *
[9333a.   Superintendent: condition for detail to position.]
9333a.   Superintendent: length of assignment.
     * * * * * * *
9359.   Cadets: charges and fees for attendance; limitation.

           *       *       *       *       *       *       *

[Sec. 9333a. Superintendent: condition for detail to position

    [As a condition for detail to the position of 
Superintendent of the Academy, an officer shall acknowledge 
that upon termination of that detail the officer shall be 
retired.]

Sec. 9333a. Superintendent: length of assignment

    An officer who is detailed to the position of 
Superintendent of the Academy shall be so detailed for a period 
of not less than three years. In any case in which an officer 
serving as Superintendent is reassigned or retires before 
having completed three years service as Superintendent, or 
otherwise leaves that position (other than due to death) 
without having completed three years service in that position, 
the Secretary of the Air Force shall submit to Congress notice 
that such officer left the position of Superintendent without 
having completed three years service in that position, together 
with a statement of the reasons why that officer did not 
complete three years service in that position.

           *       *       *       *       *       *       *

Sec. 9335. Dean of the Faculty

    (a) The Dean of the Faculty is responsible to the 
Superintendent for developing and sustaining the curriculum and 
overseeing the faculty of the Academy. The qualifications, 
selection procedures, training, pay grade, and retention of the 
Dean shall be prescribed by the Secretary of the Air Force, 
except that, if the Dean is not an officer on active duty, the 
Dean shall be a retired officer or former officer, and a person 
may not be appointed or assigned as Dean unless that person 
holds the highest academic degree in that person's academic 
field. If a person appointed as the Dean is not an officer on 
active duty, the person shall be appointed as a member of the 
Senior Executive Service.

           *       *       *       *       *       *       *

Sec. 9359. Cadets: charges and fees for attendance; limitation

    (a) Prohibition.--Except as provided in subsection (b), no 
charge or fee for tuition, room, or board for attendance at the 
Academy may be imposed unless the charge or fee is specifically 
authorized by a law enacted after October 5, 1994.
    (b) Exception.--The prohibition specified in subsection (a) 
does not apply with respect to any item or service provided to 
cadets for which a charge or fee is imposed as of October 5, 
1994. The Secretary of Defense shall notify Congress of any 
change made by the Academy in the amount of a charge or fee 
authorized under this subsection.

           *       *       *       *       *       *       *

PART IV--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *

                      CHAPTER 947--TRANSPORTATION

Sec.
[9741.    Control and supervision.
[9743.    Officers: use of transportation.
[9746.    Civilian personnel in Alaska.]

[Sec. 9741. Control and supervision

    The transportation of members, munitions of war, equipment, 
military property, and stores of the Air Force throughout the 
United States shall be under the immediate control and 
supervision of the Secretary of the Air Force and agents 
appointed or designated by him.

[Sec. 9743. Officers: use of transportation

    [Under such conditions as the Secretary of the Air Force 
may prescribe, officers of the Air Force may, in the 
performance of their duties, use means of transportation 
provided for the Air Force and its supplies.

[Sec. 9746. Civilian personnel in Alaska

    [Persons residing in Alaska who are and have been employed 
there by the United States for at least two years, and their 
families, may be transported on airplanes operated by Air Force 
transport agencies or, within bulk space allocations made to 
the Department of the Air Force, on vessels or airplanes 
operated by any military transport agency of the Department of 
Defense, if--
            [(1) the Secretary of the Air Force considers that 
        accommodations are available;
            [(2) the transportation is without expense to the 
        United States;
            [(3) the transportation is limited to one round 
        trip between Alaska and the United States during any 
        two-year period, except in an emergency such as 
        sickness or death; and
            [(4) in case of travel by air--
                    [(A) the Secretary of Transportation has 
                not certified that commercial air carriers of 
                the United States that can handle the 
                transportation are operating between Alaska and 
                the United States; and
                    [(B) the transportation cannot be 
                reasonably handled by a United States 
                commercial air carrier.]

           *       *       *       *       *       *       *

Subtitle E--Reserve Components

           *       *       *       *       *       *       *

PART I--ORGANIZATION AND ADMINISTRATION

           *       *       *       *       *       *       *

CHAPTER 1003--RESERVE COMPONENTS GENERALLY

           *       *       *       *       *       *       *

Sec. 10102. Purpose of reserve components

    The purpose of each reserve component is to provide trained 
units and qualified persons available for active duty in the 
armed forces, in time of war or national emergency, and at such 
other times as the national security may require, to fill the 
needs of the armed forces whenever[, during and after the 
period needed to procure and train additional units and 
qualified persons to achieve the planned mobilization,] more 
units and persons are needed than are in the regular 
components.

           *       *       *       *       *       *       *

                  CHAPTER 1011--NATIONAL GUARD BUREAU

Sec.
10501.    National Guard Bureau.
[10502.    Chief of the National Guard Bureau: appointment; adviser on 
          National Guard matters; grade.]
10502.    Chief of the National Guard Bureau: appointment; adviser on 
          National Guard matters; grade; succession.
     * * * * * * *
[10505.    Vice Chief of the National Guard Bureau.]
10505.    Director of the Joint Staff of the National Guard Bureau.

           *       *       *       *       *       *       *

[Sec. 10502. Chief of the National Guard Bureau: appointment; adviser 
                    on National Guard matters; grade]

Sec. 10502. Chief of the National Guard Bureau: appointment; adviser on 
                    National Guard matters; grade; succession

    (a) * * *

           *       *       *       *       *       *       *

    (e) Succession.--(1) Unless otherwise directed by the 
President or Secretary of Defense, when there is a vacancy in 
the office of the Chief of the National Guard Bureau or in the 
event the Chief of the National Guard Bureau is unable to 
perform the duties of that office, the senior of the officers 
specified in paragraph (2) shall serve as the acting Chief 
until a successor is appointed or the Chief once again is able 
to perform the duties of that office.
    (2) The officers specified in this paragraph are the 
following:
            (A) The senior officer of the Army National Guard 
        of the United States on duty with the National Guard 
        Bureau.
            (B) The senior officer of the Air National Guard of 
        the United States on duty with the National Guard 
        Bureau.

           *       *       *       *       *       *       *

[Sec. 10505. Vice Chief of the National Guard Bureau]

Sec. 10505. Director of the Joint Staff of the National Guard Bureau

    (a) Appointment.--(1) There is a [Vice Chief of the 
National Guard Bureau] Director of the Joint Staff of the 
National Guard Bureau, selected by the Secretary of Defense 
from officers of the Army National Guard of the United States 
or the Air National Guard of the United States who--
            (A) * * *

           *       *       *       *       *       *       *

    (2) The Chief and [Vice Chief of the National Guard Bureau] 
Director of the Joint Staff of the National Guard Bureau may 
not both be members of the Army or of the Air Force.
    (3)(A) Except as provided in subparagraph (B), an officer 
appointed as [Vice Chief of the National Guard Bureau] Director 
of the Joint Staff of the National Guard Bureau serves for a 
term of four years, but may be removed from office at any time 
for cause.
    (B) The term of the [Vice Chief of the National Guard 
Bureau] Director of the Joint Staff of the National Guard 
Bureau shall end upon the appointment of a Chief of the 
National Guard Bureau who is a member of the same armed force 
as the Vice Chief.
    (4) The Secretary of Defense may waive the restrictions in 
paragraph (2) and the provisions of paragraph (3)(B) for a 
limited period of time to provide for the orderly transition of 
officers appointed to serve in the positions of Chief and [Vice 
Chief of the National Guard Bureau] Director of the Joint Staff 
of the National Guard Bureau.
    (b) Duties.--The [Vice Chief of the National Guard Bureau] 
Director of the Joint Staff of the National Guard Bureau 
performs such duties as may be prescribed by the Chief of the 
National Guard Bureau.
    (c) Grade.--The [Vice Chief of the National Guard Bureau] 
Director of the Joint Staff of the National Guard Bureau shall 
be appointed to serve in the grade of major general.
    [(d) Functions as Acting Chief.--When there is a vacancy in 
the office of the Chief of the National Guard Bureau or in the 
absence or disability of the Chief, the Vice Chief of the 
National Guard Bureau acts as Chief and performs the duties of 
the Chief until a successor is appointed or the absence or 
disability ceases.
    [(e) Succession After Chief and Vice Chief.--When there is 
a vacancy in the offices of both Chief and Vice Chief of the 
National Guard Bureau or in the absence or disability of both 
the Chief and Vice Chief of the National Guard Bureau, or when 
there is a vacancy in one such office and in the absence or 
disability of the officer holding the other, the senior officer 
of the Army National Guard of the United States or the Air 
National Guard of the United States on duty with the National 
Guard Bureau shall perform the duties of the Chief until a 
successor to the Chief or Vice Chief is appointed or the 
absence or disability of the Chief or Vice Chief ceases, as the 
case may be.]

Sec. 10506. Other senior National Guard Bureau officers

    (a) Additional General Officers.--(1) * * *

           *       *       *       *       *       *       *

    (3)(A) * * *

           *       *       *       *       *       *       *

    (D) Until [December 31, 2004,] December 31, 2006, the 
Secretary of Defense may waive clause (ii) of subparagraph (B) 
with respect to the appointment of an officer as Director, Army 
National Guard, or as Director, Air National Guard, if the 
Secretary of the military department concerned requests the 
waiver and, in the judgment of the Secretary of Defense--
            (i) * * *

           *       *       *       *       *       *       *

PART II--PERSONNEL GENERALLY

           *       *       *       *       *       *       *

CHAPTER 1201--AUTHORIZED STRENGTHS AND DISTRIBUTION IN GRADE

           *       *       *       *       *       *       *

Sec. 12004. Strength in grade: reserve general and flag officers in an 
                    active status

    (a) * * *

           *       *       *       *       *       *       *

    (c)[(1)] The authorized strength of the Navy under 
subsection (a) is exclusive of officers counted under section 
526 of this title. [Of the number authorized under subsection 
(a), 39 are distributed among the line and the staff corps as 
follows:

    [Line.....................................................       28 
    [Medical Department staff corps...........................        9 
    [Chaplain Corps...........................................        1 
    [Judge Advocate General's Corps...........................        1 
                                                                        
    [(2) The remaining authorizations for the Navy under 
subsection (a) shall be distributed among such other staff 
corps as are established by the Secretary of the Navy under the 
authority provided by section 5150(b) of this title, except 
that--
            [(A) if the Secretary has established a Supply 
        Corps, the authorized strength for the Supply Corps 
        shall be seven; and
            [(B) if the Secretary has established a Civil 
        Engineering Corps, the authorized strength for the 
        Civil Engineering Corps shall be two.
    [(3) Not more than 50 percent of the officers in an active 
status authorized under this section for the Navy may serve in 
the grade of rear admiral.
    [(4)(A) For the purposes of paragraph (1), the Medical 
Department staff corps referred to in the table are as follows:
            [(i) The Medical Corps.
            [(ii) The Dental Corps.
            [(iii) The Nurse Corps.
            [(iv) The Medical Service Corps.
    [(B) Each of the Medical Department staff corps is 
authorized one rear admiral (lower half) within the strength 
authorization distributed to the Medical Department staff corps 
under paragraph (1). The Secretary of the Navy shall distribute 
the remainder of the strength authorization for the Medical 
Department staff corps under that paragraph among those staff 
corps as the Secretary determines appropriate to meet the needs 
of the Navy.]

           *       *       *       *       *       *       *

Sec. 12005. Strength in grade: commissioned officers in grades below 
                    brigadier general or rear admiral (lower half) in 
                    an active status

    (a) * * *

           *       *       *       *       *       *       *

    (c)(1) The authorized strengths of the Marine Corps Reserve 
in officers in an active status in the grades of colonel, 
lieutenant colonel, major, and captain, and in the grades of 
first lieutenant and second lieutenant combined, are the 
following percentages of the total authorized number of those 
officers:

[Colonel................................................      2 percent 
Lieutenant colonel......................................      6 percent 
Major...................................................     12 percent 
Captain.................................................     35 percent 
First lieutenant and second lieutenant (when combined 
    with the number authorized for general officer 
    grades under section 12004 of this title)...........  32.5 percent.]

Colonel.................................................      2 percent 
Lieutenant colonel......................................      8 percent 
Major...................................................     16 percent 
Captain.................................................     39 percent 
First lieutenant and second lieutenant (when combined 
    with the number authorized for general officer 
35 percent.der section 12004 of this title)...........

           *       *       *       *       *       *       *

Sec. 12011. Authorized strengths: reserve officers on active duty or on 
                    full-time National Guard duty for administration of 
                    the reserves or the National Guard

    (a) * * *

           *       *       *       *       *       *       *

    (e) Full-Time Reserve Component Duty Defined.--In this 
section, the term ``full-time reserve component duty'' means 
the following duty:
            (1) * * *
            [(2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32.]
            (2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32, except for 
        duty under section 115(b)(1)(B) and (C) of this title 
        and section 115(i)(9) of this title.

           *       *       *       *       *       *       *

Sec. 12012. Authorized strengths: senior enlisted members on active 
                    duty or on full-time National Guard duty for 
                    administration of the reserves or the National 
                    Guard

    (a) Limitations.--Of the total number of members of a 
reserve component who are serving on full-time reserve 
component duty at the end of any fiscal year, the number of 
those members in each of pay grades of E-8 and E-9 who may be 
serving on active duty under section 10211 or 12310, or on 
full-time National Guard duty under the authority of section 
502(f) of title 32 (other than for training) in connection with 
organizing, administering, recruiting, instructing, or training 
the reserve components or the National Guard may not, as of the 
end of that fiscal year, exceed the number determined in 
accordance with the following table:

------------------------------------------------------------------------
                                     Number of members of that reserve
   Total number of members of a     component who may be serving in the
reserve component serving on full-               grade of:
   time reserve component duty:   --------------------------------------
                                          E-8                 E-9
------------------------------------------------------------------------
Army Reserve:
10,000...........................              1,052              154
11,000...........................              1,126              168
12,000...........................              1,195              180
13,000...........................              1,261              191
14,000...........................              1,327              202
15,000...........................              1,391              213
16,000...........................              1,455              224
17,000...........................              1,519              235
18,000...........................              1,583              246
19,000...........................              1,647              257
20,000...........................              1,711              268
21,000...........................              1,775              278

      *         *         *         *         *         *         *

Air National Guard:
5,000............................              1,020              405
6,000............................              1,070              435
7,000............................              1,120              465
8,000............................              1,170              490
9,000............................              1,220              510
10,000...........................              1,270              530
11,000...........................              1,320              550
12,000...........................              1,370              570
13,000...........................              1,420              589
14,000...........................              1,470              608
15,000...........................              1,520              626
16,000...........................              1,570              644
17,000...........................              1,620              661
18,000...........................              1,670              678
19,000...........................              1,720              695
20,000...........................              1,770              712.
------------------------------------------------------------------------

                                                      

           *       *       *       *       *       *       *
CHAPTER 1209--ACTIVE DUTY

           *       *       *       *       *       *       *

Sec. 12301. Reserve components generally

    (a) In time of war or of national emergency declared by 
Congress, or when otherwise authorized by law, an authority 
designated by the Secretary concerned may, without the consent 
of the persons affected, order any unit, and any member not 
assigned to a unit organized to serve as a unit, of a reserve 
component under the jurisdiction of that Secretary to active 
duty [(other than for training)] for the duration of the war or 
emergency and for six months thereafter. However a member on an 
inactive status list or in a retired status may not be ordered 
to active duty under this subsection unless the Secretary 
concerned, with the approval of the Secretary of Defense in the 
case of the Secretary of a military department, determines that 
there are not enough qualified Reserves in an active status or 
in the inactive National Guard in the required category who are 
readily available.

           *       *       *       *       *       *       *

    (c) So far as practicable, during any expansion of the 
active armed forces that requires that units and members of the 
reserve components be ordered to active duty [(other than for 
training)] as provided in subsection (a), members of units 
organized and trained to serve as units who are ordered to that 
duty without their consent shall be so ordered with their 
units. However, members of those units may be reassigned after 
being [ordered to active duty (other than for training)] so 
ordered to active duty.

           *       *       *       *       *       *       *

    (e) The period of time allowed between the date when a 
Reserve ordered to active duty [(other than for training)] as 
provided in subsection (a) is alerted for that duty and the 
date when the Reserve is required to enter upon that duty shall 
be determined by the Secretary concerned based upon military 
requirements at that time.

           *       *       *       *       *       *       *

Sec. 12302. Ready Reserve

    (a) In time of national emergency declared by the President 
after January 1, 1953, or when otherwise authorized by law, an 
authority designated by the Secretary concerned may, without 
the consent of the persons concerned, order any unit, and any 
member not assigned to a unit organized to serve as a unit, in 
the Ready Reserve under the jurisdiction of that Secretary to 
active duty [(other than for training)] for not more than 24 
consecutive months.

           *       *       *       *       *       *       *

    (c) Not more than 1,000,000 members of the Ready Reserve 
may be on active duty [(other than for training)], without 
their consent, under this section at any one time.

           *       *       *       *       *       *       *

Sec. 12304. Selected Reserve and certain Individual Ready Reserve 
                    members; order to active duty other than during war 
                    or national emergency

    (a) Authority.--Notwithstanding the provisions of section 
12302(a) or any other provision of law, when the President 
determines that it is necessary to augment the active forces 
for any operational mission or that it is necessary to provide 
assistance referred to in subsection (b), he may authorize the 
Secretary of Defense and the Secretary of Homeland Security 
with respect to the Coast Guard when it is not operating as a 
service in the Navy, without the consent of the members 
concerned, to order any unit, and any member not assigned to a 
unit organized to serve as a unit of the Selected Reserve (as 
defined in section 10143(a) of this title), or any member in 
the Individual Ready Reserve mobilization category and 
designated as essential under regulations prescribed by the 
Secretary concerned, under their respective jurisdictions, to 
active duty [(other than for training)] for not more than 270 
days.

           *       *       *       *       *       *       *

Sec. 12306. Standby Reserve

    (a) Units and members in the Standby Reserve may be ordered 
to active duty [(other than for training) only] as provided in 
section 12301(a) as provided in section 12301 of this title.
    (b) In time of emergency--
            (1) no unit in the Standby Reserve organized to 
        serve as a unit or any member thereof may be ordered to 
        active duty [(other than for training)] as provided in 
        section 12301(a) of this title, unless the Secretary 
        concerned, with the approval of the Secretary of 
        Defense in the case of a Secretary of a military 
        department, determines that there are not enough of the 
        required kinds of units in the Ready Reserve that are 
        readily available; and
            (2) no other member in the Standby Reserve may be 
        ordered to active duty [(other than for training)] as 
        provided in section 12301(a) of this title as an 
        individual without his consent, unless the Secretary 
        concerned, with the approval of the Secretary of 
        Defense in the case of a Secretary of a military 
        department, determines that there are not enough 
        qualified members in the Ready Reserve in the required 
        category who are readily available.

           *       *       *       *       *       *       *

CHAPTER 1221--SEPARATION

           *       *       *       *       *       *       *

Sec. 12686. Reserves on active duty within two years of retirement 
                    eligibility: limitation on release from active duty

    (a) Limitation.--Under regulations to be prescribed by the 
Secretary concerned, which shall be as uniform as practicable, 
a member of a reserve component who is on active duty (other 
than for training) and is within two years of becoming eligible 
for retired pay or retainer pay under a purely military 
retirement system (other than the retirement system under 
chapter 1223 of this title), may not be involuntarily released 
from that duty before he becomes eligible for that pay, unless 
the release is approved by the Secretary.

           *       *       *       *       *       *       *

CHAPTER 1223--RETIRED PAY FOR NON-REGULAR SERVICE

           *       *       *       *       *       *       *

Sec. 12731. Age and service requirements

    (a) Except as provided in subsection (c), a person is 
entitled, upon application, to retired pay computed under 
section 12739 of this title, if the person--
            (1) * * *

           *       *       *       *       *       *       *

            (3) in the case of a person who completed the 
        service requirements of paragraph (2) before the date 
        of the enactment of the National Defense Authorization 
        Act for Fiscal Year 2005, performed the last six years 
        of qualifying service while a member of any category 
        named in section 12732(a)(1) of this title, but not 
        while a member of a regular component, the Fleet 
        Reserve, or the Fleet Marine Corps Reserve, except that 
        in the case of a person who completed the service 
        requirements of paragraph (2) before October 5, 1994, 
        the number of years of such qualifying service under 
        this paragraph shall be eight; and

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

CHAPTER 1609--EDUCATION LOAN REPAYMENT PROGRAMS

           *       *       *       *       *       *       *

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

    (a)(1) * * *
    (2) [The Secretary] Except as provided in paragraph (3), 
the Secretary of Defense may repay loans described in paragraph 
(1) in the case of any person for service performed as an 
enlisted member of the Selected Reserve of the Ready Reserve of 
an armed force in a reserve component and military specialty 
specified by the Secretary of Defense. The Secretary may repay 
such a loan only if the person to whom the loan was made 
performed such service after the loan was made.
    (3) In the case of a commitment made by the Secretary of 
Defense after the date of the enactment of this paragraph to 
repay a loan under paragraph (1) conditioned upon the 
performance by the borrower of service as an enlisted member 
under paragraph (2), the Secretary shall repay the loan for 
service performed by the borrower as an officer (rather than as 
an enlisted member) in the case of a borrower who, after such 
commitment is entered into and while performing service as an 
enlisted member, accepts an appointment or commission as a 
warrant officer or commissioned officer of the Selected 
Reserve.

           *       *       *       *       *       *       *

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

    (a) Under regulations prescribed by the Secretary of 
Defense and subject to the other provisions of this section, 
the Secretary concerned may repay--
            (1) * * *

           *       *       *       *       *       *       *

            (5) a loan made, insured, or guaranteed through a 
        recognized financial or educational institution if that 
        loan was used to finance education regarding a basic 
        professional qualifying degree (as determined under 
        regulations prescribed by the Secretary of Defense) or 
        graduate education in a health profession that the 
        Secretary of Defense determines to be critically needed 
        in order to meet identified wartime combat medical 
        skill shortages.

           *       *       *       *       *       *       *

    (d) The authority provided in this section shall apply only 
in the case of a person first appointed as a commissioned 
officer before [January 1, 2005] January 1, 2006.

           *       *       *       *       *       *       *

PART V--SERVICE, SUPPLY, AND PROCUREMENT

           *       *       *       *       *       *       *

CHAPTER 1803--FACILITIES FOR RESERVE COMPONENTS

           *       *       *       *       *       *       *

Sec. 18233. Acquisition

    (a) * * *

           *       *       *       *       *       *       *

    (g)(1) The Secretary of Defense may convey, by exchange or 
sale, an existing facility of a reserve component of the armed 
forces for the purpose of acquiring a replacement facility 
under this section or using the proceeds from the sale to 
acquire a replacement facility under this section, if the 
Secretary determines it is in the best interests of the United 
States to acquire the replacement facility by such exchange or 
sale. The United States shall receive funds or a replacement 
facility, or a combination of both, having a total value at 
least equal to the fair market value of the conveyed facility.
    (2) Acquisition of a replacement facility under this 
subsection may be accomplished by construction, expansion, 
rehabilitation, or conversion and must result in a fully 
equipped and operational replacement facility. Nothing in this 
subsection prohibits the Secretary of Defense from contributing 
additional funds, in accordance with this section, to obtain a 
fully equipped and operational replacement facility.
    (3) Funds received under this subsection shall be deposited 
in a separate account and remain available to the Secretary of 
Defense, without appropriation, for use in accordance with this 
subsection. Any funds received under this subsection in 
connection with a conveyance in excess of the funds required to 
obtain a fully equipped and operational replacement facility 
for the conveyed facility may be used by the Secretary for the 
purposes of subsection (a).

           *       *       *       *       *       *       *

                              ----------                              

   BOB STUMP NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2003

           *       *       *       *       *       *       *
                      TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

           *       *       *       *       *       *       *

[SEC. 1004. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL MANAGEMENT 
                    ENTERPRISE ARCHITECTURE.

    [(a) Requirement for Enterprise Architecture and for 
Transition Plan.--Not later than May 1, 2003, the Secretary of 
Defense shall develop--
            [(1) a financial management enterprise architecture 
        for all budgetary, accounting, finance, enterprise 
        resource planning, and mixed information systems of the 
        Department of Defense; and
            [(2) a transition plan for implementing that 
        financial management enterprise architecture.
    [(b) Composition of Enterprise Architecture.--(1) The 
financial management enterprise architecture developed under 
subsection (a)(1) shall describe an information infrastructure 
that, at a minimum, would enable the Department of Defense to--
            [(A) comply with all Federal accounting, financial 
        management, and reporting requirements;
            [(B) routinely produce timely, accurate, and 
        reliable financial information for management purposes;
            [(C) integrate budget, accounting, and program 
        information and systems; and
            [(D) provide for the systematic measurement of 
        performance, including the ability to produce timely, 
        relevant, and reliable cost information.
    [(2) That enterprise architecture shall also include 
policies, procedures, data standards, and system interface 
requirements that are to apply uniformly throughout the 
Department of Defense.
    [(c) Composition of Transition Plan.--The transition plan 
developed under subsection (a)(2) shall include the following:
            [(1) The acquisition strategy for the enterprise 
        architecture, including specific time-phased 
        milestones, performance metrics, and financial and 
        nonfinancial resource needs.
            [(2) A listing of the mission critical or mission 
        essential operational and developmental financial and 
        nonfinancial management systems of the Department of 
        Defense, as defined by the Under Secretary of Defense 
        (Comptroller), consistent with budget justification 
        documentation, together with--
                    [(A) the costs to operate and maintain each 
                of those systems during fiscal year 2002; and
                    [(B) the estimated cost to operate and 
                maintain each of those systems during fiscal 
                year 2003.
            [(3) A listing of the operational and developmental 
        financial management systems of the Department of 
        Defense as of the date of the enactment of this Act 
        (known as ``legacy systems'') that will not be part of 
        the objective financial and nonfinancial management 
        system, together with the schedule for terminating 
        those legacy systems that provides for reducing the use 
        of those legacy systems in phases.
    [(d) Conditions for Obligation of Significant Amounts for 
Financial System Improvements.--An amount in excess of 
$1,000,000 may be obligated for a defense financial system 
improvement only if the Under Secretary of Defense 
(Comptroller) makes a determination regarding that improvement 
as follows:
            [(1) Before the date of an approval specified in 
        paragraph (2), a determination that the defense 
        financial system improvement is necessary for either of 
        the following reasons:
                    [(A) To achieve a critical national 
                security capability or address a critical 
                requirement in an area such as safety or 
                security.
                    [(B) To prevent a significant adverse 
                effect (in terms of a technical matter, cost, 
                or schedule) on a project that is needed to 
                achieve an essential capability, taking into 
                consideration in the determination the 
                alternative solutions for preventing the 
                adverse effect.
            [(2) On and after the date of any approval by the 
        Secretary of Defense of a financial management 
        enterprise architecture and a transition plan that 
        satisfy the requirements of this section, a 
        determination that the defense financial system 
        improvement is consistent with both the enterprise 
        architecture and the transition plan.
    [(e) Congressional Reports.--Not later than March 15 of 
each year from 2004 through 2007, the Secretary of Defense 
shall submit to the congressional defense committees a report 
on the progress of the Department of Defense in implementing 
the enterprise architecture and transition plan required by 
this section. Each report shall include, at a minimum--
            [(1) a description of the actions taken during the 
        preceding fiscal year to implement the enterprise 
        architecture and transition plan (together with the 
        estimated costs of such actions);
            [(2) an explanation of any action planned in the 
        enterprise architecture and transition plan to be taken 
        during the preceding fiscal year that was not taken 
        during that fiscal year;
            [(3) a description of the actions taken and planned 
        to be taken during the current fiscal year to implement 
        the enterprise architecture and transition plan 
        (together with the estimated costs of such actions); 
        and
            [(4) a description of the actions taken and planned 
        to be taken during the next fiscal year to implement 
        the enterprise architecture and transition plan 
        (together with the estimated costs of such actions).
    [(f) Comptroller General Review.--Not later than 60 days 
after the approval of an enterprise architecture and transition 
plan in accordance with the requirements of subsection (a), and 
not later than 60 days after the submission of an annual report 
required by subsection (e), the Comptroller General shall 
submit to the congressional defense committees an assessment of 
the extent to which the actions taken by the Department comply 
with the requirements of this section.
    [(g) Definitions.--In this section:
            [(1) The term ``defense financial system 
        improvement'' means the acquisition of a new budgetary, 
        accounting, finance, enterprise resource planning, or 
        mixed information system for the Department of Defense 
        or a modification of an existing budgetary, accounting, 
        finance, enterprise resource planning, or mixed 
        information system of the Department of Defense. Such 
        term does not include routine maintenance and operation 
        of any such system.
            [(2) The term ``mixed information system'' means an 
        information system that supports financial and non-
        financial functions of the Federal Government as 
        defined in Office of Management and Budget Circular A-
        127 (Financial management Systems).
    [(h) Repeal.--(1) Section 2222 of title 10, United States 
Code, is repealed. The table of sections at the beginning of 
chapter 131 of such title is amended by striking the item 
relating to such section.
    [(2) Section 185(d) of such title is amended by striking 
``has the meaning given that term in section 2222(c)(2) of this 
title'' and inserting ``means an automated or manual system 
from which information is derived for a financial management 
system or an accounting system''.]

           *       *       *       *       *       *       *

Subtitle F--Other Matters

           *       *       *       *       *       *       *

SEC. 1064. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE SERVICES 
                    DURING PERIODS OF EMERGENCY.

    (a) National Foreign Language Skills Registry.--(1) * * *
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1596a the following new item:
``1596b. Foreign language proficiency: National Foreign Language Skills 
          Registry.''.

           *       *       *       *       *       *       *

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2003''.

                            TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), the Secretary of the Army may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                          Installation or location                   Amount
----------------------------------------------------------------------------------------------------------------
Alabama....................................  Anniston Army Depot..............                        $1,900,000
                                             Fort Rucker......................                       $15,808,000
                                             Redstone Arsenal.................                        $1,950,000
Alaska.....................................  Fort Greely......................                        $2,700,000
                                             Fort Richardson..................                       $20,011,000
                                             Fort Wainwright..................                      $139,906,000
Arizona....................................  Fort Huachuca....................                       $10,400,000
                                             Yuma Proving Ground..............                        $4,500,000
California.................................  Fort Irwin.......................                        $2,522,000
Colorado...................................  Fort Carson......................                        $9,698,000
District of Columbia.......................  Walter Reed Army Medical Center..                       $13,794,000
Georgia....................................  Fort Benning.....................                       $86,250,000
                                             Fort Stewart/Hunter Army Air                            $26,000,000
                                              Field...........................
Hawaii.....................................  Schofield Barracks...............                      $191,000,000
Kansas.....................................  Fort Leavenworth.................                        $7,979,000
                                             Fort Riley.......................                       $81,095,000
Kentucky...................................  Blue Grass Army Depot............                        $5,500,000
                                             Fort Campbell....................                      $106,300,000
                                             Fort Knox........................                        $5,873,000
Louisiana..................................  Fort Polk........................                       $37,620,000
Maryland...................................  Fort Detrick.....................                       $22,500,000
Massachusetts..............................  Natick Research, Development, and                        $4,100,000
                                              Engineering Center..............
Missouri...................................  Fort Leonard Wood................                       $24,993,000
New Jersey.................................  Picatinny Arsenal................                        $7,500,000
New York...................................  Fort Drum........................                       $18,300,000
                                             United States Military Academy,                          $4,991,000
                                              West Point......................
North Carolina.............................  Fort Bragg.......................                       $99,632,000
Oklahoma...................................  Fort Sill........................         [$39,652,000] $40,752,000
Pennsylvania...............................  Letterkenny Army Depot...........                        $1,550,000
South Carolina.............................  Fort Jackson.....................                        $3,051,000
Texas......................................  Fort Bliss.......................                        $5,200,000
                                             Fort Hood........................                       $83,061,000
Virginia...................................  Fort Eustis......................                        $4,133,000
                                             Fort Lee.........................                        $7,103,000
Washington.................................  Fort Lewis.......................                       $56,195,000
                                             Yakima Training Center...........                        $3,000,000
                                                                               ---------------------------------
                                                 Total........................   [$1,155,767,000] $1,157,267,000
----------------------------------------------------------------------------------------------------------------

                                                                                

           *       *       *       *       *       *       *
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) * * *

           *       *       *       *       *       *       *

    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
            (1) * * *

           *       *       *       *       *       *       *

            (6) [$25,000,000] $26,100,000 (the balance of the 
        amount authorized under section 2101(a) for 
        construction of a consolidated maintenance complex at 
        Fort Sill, Oklahoma).

           *       *       *       *       *       *       *

                              ----------                              

FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001

           *       *       *       *       *       *       *
TITLE III--OPERATION AND MAINTENANCE

           *       *       *       *       *       *       *

Subtitle D--Department of Defense Industrial Facilities

           *       *       *       *       *       *       *

SEC. 343. ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Demonstration Program Required.--To help maintain the 
viability of the Army manufacturing arsenals and the unique 
capabilities of these arsenals to support the national security 
interests of the United States, the Secretary of the Army shall 
carry out a demonstration program under this section during 
fiscal years 2001 through [2004] 2008 at each manufacturing 
arsenal of the Department of the Army.

           *       *       *       *       *       *       *

    (g) Reporting Requirements.--(1) Not later than July 1 of 
each year in which a guarantee issued under subsection (d) is 
in effect, the Secretary of the Army shall submit to Congress a 
report specifying the amounts of loans guaranteed under such 
subsection during the preceding calendar year. No report is 
required after fiscal year [2004] 2008.
    (2) Not later than July 1, [2003] 2007, the Secretary of 
the Army shall submit to the congressional defense committees a 
report on the results of the demonstration program since its 
implementation, including the Secretary's views regarding the 
benefits of the program for Army manufacturing arsenals and the 
Department of the Army and the success of the program in 
achieving the purposes specified in subsection (b). The report 
shall contain a comprehensive review of contracting at the Army 
manufacturing arsenals covered by the program and such 
recommendations as the Secretary considers appropriate 
regarding changes to the program.

           *       *       *       *       *       *       *

TITLE XII--MATTERS RELATING TO OTHER NATIONS

           *       *       *       *       *       *       *

Subtitle D--Other Matters

           *       *       *       *       *       *       *

SEC. 1238. UNITED STATES-CHINA SECURITY REVIEW COMMISSION.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Duties.--
            (1) Annual report.--Not later than March 1 each 
        year [(beginning in 2002)], the Commission shall submit 
        to Congress a report, in both unclassified and 
        classified form, regarding the national security 
        implications and impact of the bilateral trade and 
        economic relationship between the United States and the 
        People's Republic of China. The report shall include a 
        full analysis, along with conclusions and 
        recommendations for legislative and administrative 
        actions, if any, of the national security implications 
        for the United States of the trade and current balances 
        with the People's Republic of China in goods and 
        services, financial transactions, and technology 
        transfers. The Commission shall also take into account 
        patterns of trade and transfers through third countries 
        to the extent practicable. The report shall include a 
        full discussion of the activities of the Commission 
        under each of the subparagraphs of paragraph (2).
            [(2) Contents of report.--Each report under 
        paragraph (1) shall include, at a minimum, a full 
        discussion of the following:]
                    [(A) The portion of trade in goods and 
                services with the United States that the 
                People's Republic of China dedicates to 
                military systems or systems of a dual nature 
                that could be used for military purposes.
                    [(B) The acquisition by the People's 
                Republic of China of advanced military or dual-
                use technologies from the United States by 
                trade (including procurement) and other 
                technology transfers, especially those 
                transfers, if any, that contribute to the 
                proliferation of weapons of mass destruction or 
                their delivery systems, or that undermine 
                international agreements or United States laws 
                with respect to nonproliferation.
                    [(C) Any transfers, other than those 
                identified under subparagraph (B), to the 
                military systems of the People's Republic of 
                China made by United States firms and United 
                States-based multinational corporations.
                    [(D) An analysis of the statements and 
                writing of the People's Republic of China 
                officials and officially-sanctioned writings 
                that bear on the intentions, if any, of the 
                Government of the People's Republic of China 
                regarding the pursuit of military competition 
                with, and leverage over, or cooperation with, 
                the United States and the Asian allies of the 
                United States.
                    [(E) The military actions taken by the 
                Government of the People's Republic of China 
                during the preceding year that bear on the 
                national security of the United States and the 
                regional stability of the Asian allies of the 
                United States.
                    [(F) The effects, if any, on the national 
                security interests of the United States of the 
                use by the People's Republic of China of 
                financial transactions and capital flow and 
                currency manipulations.
                    [(G) Any action taken by the Government of 
                the People's Republic of China in the context 
                of the World Trade Organization that is adverse 
                or favorable to the United States national 
                security interests.
                    [(H) Patterns of trade and investment 
                between the People's Republic of China and its 
                major trading partners, other than the United 
                States, that appear to be substantively 
                different from trade and investment patterns 
                with the United States and whether the 
                differences have any national security 
                implications for the United States.
                    [(I) The extent to which the trade surplus 
                of the People's Republic of China with the 
                United States enhances the military budget of 
                the People's Republic of China.
                    [(J) An overall assessment of the state of 
                the security challenges presented by the 
                People's Republic of China to the United States 
                and whether the security challenges are 
                increasing or decreasing from previous years.]
            (2) Areas of focus.--The Commission shall focus, in 
        lieu of any other area of work or study, on the 
        following:
                    (A) Proliferation practices.--The 
                Commission shall analyze and assess the Chinese 
                role in the proliferation of weapons of mass 
                destruction and other weapons (including dual 
                use technologies) to terrorist-sponsoring 
                states, and suggest possible steps which the 
                United States might take, including economic 
                sanctions, to encourage the Chinese to stop 
                such practices.
                    (B) Economic reforms and united states 
                economic transfers.--The Commission shall 
                analyze and assess the qualitative and 
                quantitative nature of the shift of United 
                States production activities to China, 
                including the relocation of high-technology, 
                manufacturing, and R&D facilities; the impact 
                of these transfers on United States national 
                security, including political influence by the 
                Chinese Government over American firms, 
                dependence of the United States national 
                security industrial base on Chinese imports, 
                the adequacy of United States export control 
                laws, and the effect of these transfers on 
                United States economic security, employment, 
                and the standard of living of the American 
                people; analyze China's national budget and 
                assess China's fiscal strength to address 
                internal instability problems and assess the 
                likelihood of externalization of such problems.
                    (C) Energy.--The Commission shall evaluate 
                and assess how China's large and growing 
                economy will impact upon world energy supplies 
                and the role the United States can play, 
                including joint R&D efforts and technological 
                assistance, in influencing China's energy 
                policy.
                    (D) United states capital markets.--The 
                Commission shall evaluate the extent of Chinese 
                access to, and use of United States capital 
                markets, and whether the existing disclosure 
                and transparency rules are adequate to identify 
                Chinese companies which are active in United 
                States markets and are also engaged in 
                proliferation activities or other activities 
                harmful to United States security interests.
                    (E) Corporate reporting.--The Commission 
                shall assess United States trade and investment 
                relationship with China, including the need for 
                corporate reporting on United States 
                investments in China and incentives that China 
                may be offering to United States corporations 
                to relocate production and R&D to China.
                    (F) Regional economic and security 
                impacts.--The Commission shall assess the 
                extent of China's ``hollowing-out'' of Asian 
                manufacturing economies, and the impact on 
                United States economic and security interests 
                in the region; review the triangular economic 
                and security relationship among the United 
                States, Taipei and Beijing, including Beijing's 
                military modernization and force deployments 
                aimed at Taipei, and the adequacy of United 
                States executive branch coordination and 
                consultation with Congress on United States 
                arms sales and defense relationship with 
                Taipei.
                    (G) United states-china bilateral 
                programs.--The Commission shall assess science 
                and technology programs to evaluate if the 
                United States is developing an adequate 
                coordinating mechanism with appropriate review 
                by the intelligence community with Congress; 
                assess the degree of non-compliance by China 
                and United States-China agreements on prison 
                labor imports and intellectual property rights; 
                evaluate United States enforcement policies; 
                and recommend what new measures the United 
                States Government might take to strengthen our 
                laws and enforcement activities and to 
                encourage compliance by the Chinese.
                    (H) World trade organization compliance.--
                The Commission shall review China's record of 
                compliance to date with its accession agreement 
                to the WTO, and explore what incentives and 
                policy initiatives should be pursued to promote 
                further compliance by China.
                    (I) Media control.--The Commission shall 
                evaluate Chinese government efforts to 
                influence and control perceptions of the United 
                States and its policies through the internet, 
                the Chinese print and electronic media, and 
                Chinese internal propaganda.

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 901 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1998

[SEC. 901. ASSISTANTS TO THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF FOR 
                    NATIONAL GUARD MATTERS AND FOR RESERVE MATTERS.

    [(a) Establishment of Positions.--The Secretary of Defense 
shall establish the following positions within the Joint Staff:
            [(1) Assistant to the Chairman of the Joint Chiefs 
        of Staff for National Guard Matters.
            [(2) Assistant to the Chairman of the Joint Chiefs 
        of Staff for Reserve Matters.
    [(b) Selection.--(1) The Assistant to the Chairman of the 
Joint Chiefs of Staff for National Guard Matters shall be 
selected by the Chairman from officers of the Army National 
Guard of the United States or the Air Guard of the United 
States who--
            [(A) are recommended for such selection by their 
        respective Governors or, in the case of the District of 
        Columbia, the commanding general of the District of 
        Columbia National Guard;
            [(B) have had at least 10 years of federally 
        recognized commissioned service in the National Guard; 
        and
            [(C) are in a grade above the grade of colonel.
    [(2) The Assistant to the Chairman of the Joint Chiefs of 
Staff for Reserve Matters shall be selected by the Chairman 
from officers of the Army Reserve, the Naval Reserve, the 
Marine Corps Reserve, or the Air Force Reserve who--
                    [(A) are recommended for such selection by 
                the Secretary of the military department 
                concerned;
                    [(B) have had at least 10 years of 
                commissioned service in their reserve 
                component; and
                    [(C) are in a grade above the grade of 
                colonel or, in the case of the Naval Reserve, 
                captain.
    [(c) Term of Office.--Each Assistant to the Chairman under 
subsection (a) serves at the pleasure of the Chairman for a 
term of two years and may be continued in that assignment in 
the same manner for one additional term. However, in time of 
war there is no limit on the number of terms.
    [(d) Grade.--Each Assistant to the Chairman, while so 
serving, holds the grade of major general or, in the case of 
the Naval Reserve, rear admiral. Each such officer shall be 
considered to be serving in a position external to that 
officer's Armed Force for purposes of section 721 of title 10, 
United States Code, as added by section 501(a).
    [(e) Duties.--The Assistant to the Chairman for National 
Guard Matters is an adviser to the Chairman on matters relating 
to the National Guard and performs the duties prescribed for 
that position by the Chairman. The Assistant to the Chairman 
for Reserve Matters is an adviser to the Chairman on matters 
relating to the reserves and performs the duties prescribed for 
that position by the Chairman.
    [(f) Other Reserve Component Representation on Joint 
Staff.--(1) The Secretary of Defense, in consultation with the 
Chairman of the Joint Chiefs, shall develop appropriate policy 
guidance to ensure that, to the maximum extent practicable, the 
level of reserve component officer representation within the 
Joint Staff is commensurate with the significant role of the 
reserve components within the Total Force.
    [(2) Not later than March 1, 1998, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report describing the steps taken and being taken to 
implement this subsection.
    [(g) Effective Date.--The positions specified in subsection 
(a) shall be established by the Secretary of Defense not later 
than 60 days after the date of the enactment of this Act.]

           *       *       *       *       *       *       *

                              ----------                              

SECTION 1123 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS 
                             1990 AND 1991

SEC. 1123. PROFESSIONAL MILITARY EDUCATION IN JOINT MATTERS

  (a) * * *
  [(b) Statement of Congressional Policy.--As part of the 
efforts of the Secretary of Defense to improve professional 
military education, Congress urges, as a matter of policy, and 
fully expects the Secretary to establish the following:
          [(1) A coherent and comprehensive framework for the 
        education of officers, including officers nominated for 
        the joint specialty.
          [(2) A two-phase approach to strengthening the focus 
        on joint matters, as follows:
                  [(A) Phase I instruction consisting of a 
                joint curriculum, in addition to the principal 
                curriculum taught to all officers at service-
                operated professional military education 
                schools.
                  [(B) Phase II instruction consisting of a 
                follow-on, solely joint curriculum taught at 
                the Armed Forces Staff College to officers who 
                are expected to be selected for the joint 
                specialty. The curriculum should emphasize 
                multiple ``hands on'' exercises and must 
                adequately prepare students to perform 
                effectively from the outset in what will 
                probably be their first exposure to a totally 
                new environment, an assignment to a joint, 
                multiservice organization. Phase II instruction 
                should be structured so that students progress 
                from a basic knowledge of joint matters learned 
                in Phase I to the level of expertise necessary 
                for successful performance in the joint arena.
          [(3) A sequenced approach to joint education in which 
        the norm would require an officer to complete Phase I 
        instruction before proceeding to Phase II instruction. 
        An exception to the normal sequence should be granted 
        by the Chairman of the Joint Chiefs of Staff only on a 
        case-by-case basis for compelling cause. Officers 
        selected to receive such an exception should be 
        required to demonstrate a basic knowledge of joint 
        matters and other aspects of the Phase I curriculum 
        that qualifies them to meet the minimum requirements 
        established for entry into Phase II instruction without 
        first completing Phase I instruction. The number of 
        officers selected to attend an offering of the 
        principal course of instruction at the Armed Forces 
        Staff College who have not completed Phase I 
        instruction should comprise only a small portion of the 
        total number of officers selected.]

           *       *       *       *       *       *       *

                              ----------                              

                      TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *
PART III--EMPLOYEES

           *       *       *       *       *       *       *

Subpart B--Employment and Retention

           *       *       *       *       *       *       *

CHAPTER 33--EXAMINATION, SELECTION, AND PLACEMENT

           *       *       *       *       *       *       *

SUBCHAPTER III--DETAILS, VACANCIES, AND APPOINTMENTS

           *       *       *       *       *       *       *

Sec. 3341. Details; within Executive or military departments

    (a) * * *

           *       *       *       *       *       *       *

    [(c) For purposes of this section--
            [(1) the term ``base closure law'' means--
                    [(A) section 2687 of title 10;
                    [(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (10 U.S.C. 2687 note); and
                    [(C) the Defense Base Closure and 
                Realignment Act of 1990 (10 U.S.C. 2687 note); 
                and
            [(2) the term ``military installation''--
                    [(A) in the case of an installation covered 
                by section 2687 of title 10, has the meaning 
                given such term in subsection (e)(1) of such 
                section;
                    [(B) in the case of an installation covered 
                by the Act referred to in subparagraph (B) of 
                paragraph (1), has the meaning given such term 
                in section 209(6) of such Act; and
                    [(C) in the case of an installation covered 
                by the Act referred to in subparagraph (C) of 
                that paragraph, has the meaning given such term 
                in section 2910(4) of such Act.]
    (c) For purposes of this section, the term ``base closure 
law'' has the meaning given such term in section 101(a)(17) of 
title 10.

           *       *       *       *       *       *       *

Subpart D--Pay and Allowances

           *       *       *       *       *       *       *

Sec. 5102. Definitions; application

    (a) * * *

           *       *       *       *       *       *       *

    (c) This chapter does not apply to--
            (2) * * *

           *       *       *       *       *       *       *

            (10) civilian professors, instructors, and 
        lecturers at a professional military education school 
        (and, in the case of the George C. Marshall European 
        Center for Security Studies, the Director and the 
        Deputy Director) whose pay is fixed under section 1595, 
        4021, 7478, or 9081 of title 10; civilian professors, 
        lecturers, and instructors at the Military Academy, the 
        Naval Academy, and the Air Force Academy whose pay is 
        fixed under sections 4338, 6952, and 9338, 
        respectively, of title 10; senior professors, 
        professors, associate and assistant professors, and 
        instructors at the Naval Postgraduate School whose pay 
        is fixed under section 7044 of title 10; the [Academic 
        Dean] Provost and Academic Dean of the Postgraduate 
        School of the Naval Academy whose pay is fixed under 
        section 7043 of title 10; civilian professors, 
        instructors, and lecturers in the defense acquisition 
        university structure (including the Defense Systems 
        Management College) whose pay is fixed under section 
        1746(b) of title 10;

           *       *       *       *       *       *       *

Subpart E--Attendance and Leave

           *       *       *       *       *       *       *

CHAPTER 63--LEAVE

           *       *       *       *       *       *       *

SUBCHAPTER II--OTHER PAID LEAVE

           *       *       *       *       *       *       *

Sec. 6323. Military leave; Reserves and National Guardsmen

    (a)(1) * * *

           *       *       *       *       *       *       *

    (d)(1) A military reserve technician described in section 
8401(30) is entitled at such person's request to leave without 
loss of, or reduction in, pay, leave to which such person is 
otherwise entitled, credit for time or service, or performance 
or efficiency rating for each day, not to exceed 44 workdays in 
a calendar year, in which such person is on active duty without 
pay, as authorized pursuant to section 12315 of title 10, under 
section 12301(b) or 12301(d) of title 10 [(other than active 
duty during a war or national emergency declared by the 
President or Congress)] for participation in operations outside 
the United States, its territories and possessions.

           *       *       *       *       *       *       *

                      CHAPTER 89--HEALTH INSURANCE

Sec. 8905a. Continued coverage

    (a) Any individual described in [paragraph (1) or (2) of] 
subsection (b) may elect to continue coverage under this 
chapter in accordance with the provisions of this section.
    (b) This section applies with respect to--
            (1) any employee who--
                    (A) * * *
                    (B) would not otherwise be eligible for any 
                benefits under this chapter (determined without 
                regard to any temporary extension of coverage 
                and without regard to any benefits available 
                under a nongroup contract); [and]
            (2) any individual who--
                    (A) * * *

           *       *       *       *       *       *       *

                    (C) would not otherwise be eligible for any 
                benefits under this chapter (determined without 
                regard to any temporary extension of coverage 
                and without regard to any benefits available 
                under a nongroup contract)[.]; and
            (3) any employee who--
                    (A) is enrolled in a health benefits plan 
                under this chapter;
                    (B) is a member of a Reserve component of 
                the armed forces;
                    (C) is called or ordered to active duty in 
                support of a contingency operation (as defined 
                in section 101(a)(13) of title 10);
                    (D) is placed on leave without pay or 
                separated from service to perform active duty; 
                and
                    (E) serves on active duty for a period of 
                more than 30 consecutive days.

           *       *       *       *       *       *       *

    (e)(1) Continued coverage under this section may not extend 
beyond--
            (A) in the case of an individual whose continued 
        coverage is based on separation from service, the date 
        which is 18 months after the effective date of the 
        separation; [or]
            (B) in the case of an individual whose continued 
        coverage is based on ceasing to meet the requirements 
        for being considered an unmarried dependent child, the 
        date which is 36 months after the date on which the 
        individual first ceases to meet those requirements, 
        subject to paragraph (2)[.]; or
                    (C) in the case of an employee described in 
                subsection (b)(3), the date which is 24 months 
                after the employee is placed on leave without 
                pay or separated from service to perform active 
                duty.

           *       *       *       *       *       *       *

Sec. 8906. Contributions

    (a) * * *

           *       *       *       *       *       *       *

    (e)(1) * * *

           *       *       *       *       *       *       *

    (3)(A) * * *

           *       *       *       *       *       *       *

    (C) Notwithstanding the one-year limitation on coverage 
described in paragraph (1)(A), payment may be made under this 
paragraph for a period not to exceed [18] 24 months.

           *       *       *       *       *       *       *

                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2002

           *       *       *       *       *       *       *
TITLE XVI--UNIFORMED SERVICES VOTING

           *       *       *       *       *       *       *

[SEC. 1604. ELECTRONIC VOTING DEMONSTRATION PROJECT.

    [(a) Establishment of Demonstration Project.--
            [(1) In general.--Subject to paragraph (2), the 
        Secretary of Defense shall carry out a demonstration 
        project under which absent uniformed services voters 
        are permitted to cast ballots in the regularly 
        scheduled general election for Federal office for 
        November 2002 through an electronic voting system. The 
        project shall be carried out with participation of 
        sufficient numbers of absent uniformed services voters 
        so that the results are statistically relevant.
            [(2) Authority to delay implementation.--If the 
        Secretary of Defense determines that the implementation 
        of the demonstration project under paragraph (1) with 
        respect to the regularly scheduled general election for 
        Federal office for November 2002 may adversely affect 
        the national security of the United States, the 
        Secretary may delay the implementation of such 
        demonstration project until the regularly scheduled 
        general election for Federal office for November 2004. 
        The Secretary shall notify the Committee on Armed 
        Services and the Committee on Rules and Administration 
        of the Senate and the Committee on Armed Services and 
        the Committee on House Administration of the House of 
        Representatives of any decision to delay implementation 
        of the demonstration project.
    [(b) Coordination With State Election Officials.--The 
Secretary shall carry out the demonstration project under this 
section through cooperative agreements with State election 
officials of States that agree to participate in the project.
    [(c) Report to Congress.--Not later than June 1 of the year 
following the year in which the demonstration project is 
conducted under this section, the Secretary of Defense shall 
submit to Congress a report analyzing the demonstration 
project. The Secretary shall include in the report any 
recommendations the Secretary considers appropriate for 
continuing the project on an expanded basis for absent 
uniformed services voters during the next regularly scheduled 
general election for Federal office.
    [(d) Definitions.--In this section:
            [(1) Absent uniformed services voter.--The term 
        ``absent uniformed services voter'' has the meaning 
        given that term in section 107(1) of the Uniformed and 
        Overseas Citizens Absentee Voting Act (42 U.S.C. 
        1973ff-6(1)).
            [(2) State.--The term ``State'' includes the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the Virgin Islands, and American Samoa.]

           *       *       *       *       *       *       *

TITLE XXVIII--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle B--Real Property and Facilities Administration

           *       *       *       *       *       *       *

SEC. 2814. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY 
                    MAINTENANCE COSTS.

    (a) Authority To Carry Out Program.--The Secretary of 
Defense [or the Secretary of a military department] and the 
Secretaries of the military departments may conduct a 
demonstration program to assess the feasibility and 
desirability of including facility maintenance requirements in 
construction contracts for military construction projects for 
the purpose of determining whether such requirements facilitate 
reductions in the long-term facility maintenance costs of the 
military departments.
    (b) Contracts.--(1) Not more than [12 contracts per 
military department] 36 contracts may contain requirements 
referred to in subsection (a) for the purpose of the 
demonstration program.
    (2) The demonstration program may only cover contracts 
entered into on or after [the date of the enactment of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003] 
December 2, 2002, except that the Secretary of the Army shall 
treat any contract containing requirements referred to in 
subsection (a) that was entered into under the authority in 
such subsection between that date and December 28, 2001, as a 
contract for the purpose of the demonstration program.

           *       *       *       *       *       *       *

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

           *       *       *       *       *       *       *

SEC. 3306. RESTRICTION ON DISPOSAL OF MANGANESE FERRO.

    (a) Temporary Quantity Restrictions.--During fiscal years 
2002 through 2005, the disposal of manganese ferro in the 
National Defense Stockpile may not exceed the following 
quantities:
            (1) * * *

           *       *       *       *       *       *       *

            (3) During [each of the fiscal years 2004 and 2005] 
        fiscal year 2004, 50,000 short tons of high carbon 
        manganese ferro of the highest grade.
            (4) During fiscal year 2005, 100,000 short tons of 
        high carbon manganese ferro of the highest grade.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 128 OF THE MILITARY CONSTRUCTION APPROPRIATIONS ACT, 2004

           *       *       *       *       *       *       *
GENERAL PROVISIONS

           *       *       *       *       *       *       *

    [Sec. 128. (a) Commission on Review of Overseas Military 
Facility Structure of the United States.--(1) There is 
established the Commission on the Review of the Overseas 
Military Facility Structure of the United States (in this 
section referred to as the ``Commission'').
    [(2)(A) The Commission shall be composed of eight members 
of whom--
            [(i) two shall be appointed by the Majority Leader 
        of the Senate;
            [(ii) two shall be appointed by the Minority Leader 
        of the Senate;
            [(iii) two shall be appointed by the Speaker of the 
        House of Representatives; and
            [(iv) two shall be appointed by the Minority Leader 
        of the House of Representatives.
    [(B) Individuals appointed to the Commission shall have 
significant experience in the national security or foreign 
policy of the United States.
    [(C) Appointments of the members of the Commission shall be 
made not later than 45 days after the date of the enactment of 
this Act.
    [(3) Members shall be appointed for the life of the 
Commission. Any vacancy in the Commission shall not affect its 
powers, but shall be filled in the same manner as the original 
appointment.
    [(4) Not later than 30 days after the date on which all 
members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    [(5) The Commission shall meet at the call of the Chairman.
    [(6) A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold 
hearings.
    [(7) The Commission shall select a Chairman and Vice 
Chairman from among its members.
    [(b) Duties.--(1) The Commission shall conduct a thorough 
study of matters relating to the military facility structure of 
the United States overseas.
    [(2) In conducting the study, the Commission shall--
            [(A) assess the number of forces required to be 
        forward based outside the United States;
            [(B) examine the current state of the military 
        facilities and training ranges of the United States 
        overseas for all permanent stations and deployed 
        locations, including the condition of land and 
        improvements at such facilities and ranges and the 
        availability of additional land, if required, for such 
        facilities and ranges;
            [(C) identify the amounts received by the United 
        States, whether in direct payments, in-kind 
        contributions, or otherwise, from foreign countries by 
        reason of military facilities of the United States 
        overseas;
            [(D) assess whether or not the current military 
        basing and training range structure of the United 
        States overseas is adequate to meet the current and 
        future mission of the Department of Defense, including 
        contingency, mobilization, and future force 
        requirements;
            [(E) assess the feasibility and advisability of the 
        closure or realignment of military facilities of the 
        United States overseas, or of the establishment of new 
        military facilities of the United States overseas; and
            [(F) consider or assess any other issue relating to 
        military facilities of the United States overseas that 
        the Commission considers appropriate.
    [(3)(A) Not later than December 31, 2004, the Commission 
shall submit to the President and Congress a report which shall 
contain a detailed statement of the findings and conclusions of 
the Commission, together with its recommendations for such 
legislation and administrative actions as it considers 
appropriate.
    [(B) In addition to the matters specified in subparagraph 
(A), the report shall also include a proposal by the Commission 
for an overseas basing strategy for the Department of Defense 
in order to meet the current and future mission of the 
Department.
    [(c) Powers.--(1) The Commission may hold such hearings, 
sit and act at such times and places, take such testimony, and 
receive such evidence as the Commission considers advisable to 
carry out this section.
    [(2) The Commission may secure directly from any Federal 
department or agency such information as the Commission 
considers necessary to carry out this section. Upon request of 
the Chairman of the Commission, the head of such department or 
agency shall furnish such information to the Commission.
    [(3) Upon request of the Commission, the Administrator of 
General Services shall provide to the Commission, on a 
reimbursable basis, the administrative support necessary for 
the Commission to carry out its duties under this section.
    [(4) The Commission may use the United States mails in the 
same manner and under the same conditions as other departments 
and agencies of the Federal Government.
    [(5) The Commission may accept, use, and dispose of gifts 
or donations of services or property.
    [(d) Personnel Matters.--(1) Each member of the Commission 
who is not an officer or employee of the Federal Government 
shall be compensated at a rate equal to the daily equivalent of 
the annual rate of basic pay prescribed for level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code, for each day (including travel time) during which such 
member is engaged in the performance of the duties of the 
Commission under this section. All members of the Commission 
who are officers or employees of the United States shall serve 
without compensation in addition to that received for their 
services as officers or employees of the United States.
    [(2)(A) Members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Commission under this section.
    [(B) Members and staff of the Commission may receive 
transportation on military aircraft to and from the United 
States, and overseas, for purposes of the performance of the 
duties of the Commission to the extent that such transportation 
will not interfere with the requirements of military 
operations.
    [(3)(A) The Chairman of the Commission may, without regard 
to the civil service laws and regulations, appoint and 
terminate an executive director and such other additional 
personnel as may be necessary to enable the Commission to 
perform its duties under this section. The employment of an 
executive director shall be subject to confirmation by the 
Commission.
    [(B) The Commission may employ a staff to assist the 
Commission in carrying out its duties. The total number of the 
staff of the Commission, including an executive director under 
subparagraph (A), may not exceed 12.
    [(C) The Chairman of the Commission may fix the 
compensation of the executive director and other personnel 
without regard to chapter 51 and subchapter III of chapter 53 
of title 5, United States Code, relating to classification of 
positions and General Schedule pay rates, except that the rate 
of pay for the executive director and other personnel may not 
exceed the rate payable for level V of the Executive Schedule 
under section 5316 of such title.
    [(4) Any employee of the Department of Defense, the 
Department of State, or the General Accounting Office may be 
detailed to the Commission without reimbursement, and such 
detail shall be without interruption or loss of civil service 
status or privilege.
    [(5) The Chairman of the Commission may procure temporary 
and intermittent services under section 3109(b) of title 5, 
United States Code, at rates for individuals which do not 
exceed the daily equivalent of the annual rate of basic pay 
prescribed for level V of the Executive Schedule under section 
5316 of such title.
    [(e) Security.--(1) Members and staff of the Commission, 
and any experts and consultants to the Commission, shall 
possess security clearances appropriate for their duties with 
the Commission under this section.
    [(2) The Secretary of Defense shall assume responsibility 
for the handling and disposition of any information relating to 
the national security of the United States that is received, 
considered, or used by the Commission under this section.
    [(f) Termination.--The Commission shall terminate 45 days 
after the date on which the Commission submits its report under 
subsection (b).
    [(g) Funding.--(1) Of the amount appropriated by this Act, 
$3,000,000 shall be available to the Commission to carry out 
this section.
    [(2) The amount made available by paragraph (1) shall 
remain available, without fiscal year limitation, until 
September 2005.]
                              ----------                              

                      TITLE 32, UNITED STATES CODE

                        CHAPTER 1--ORGANIZATION

Chap.                                                               Sec.
      Organization...................................................101
     * * * * * * *
      Operations of a National or Federal Interest...................901
     * * * * * * *

CHAPTER 1--ORGANIZATION

           *       *       *       *       *       *       *

Sec. 112. Drug interdiction and counter-drug activities

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Exclusion From End-Strength Computation.--Members of 
the National Guard on active duty or full-time National Guard 
duty for the purposes of administering (or during fiscal year 
1993 otherwise implementing) this section shall not be counted 
toward the annual end strength authorized for reserves on 
active duty in support of the reserve components of the armed 
forces or toward the strengths authorized in sections 12011 and 
12012 of title 10.]
    [(f)] (e) End Strength Limitation.--(1) Except as provided 
in paragraph (2), at the end of a fiscal year there may not be 
more than 4000 members of the National Guard--
            (A) on full-time National Guard duty under section 
        502(f) of this title to perform drug interdiction or 
        counter-drug activities pursuant to an order to duty 
        [for a period of more than 180 days]; or
            (B) on duty under State authority to perform drug 
        interdiction or counter-drug activities pursuant to an 
        order to duty [for a period of more than 180 days] with 
        State pay and allowances being reimbursed with funds 
        provided under subsection (a)(1).

           *       *       *       *       *       *       *

    [(g)] (f) Annual Report.--The Secretary of Defense shall 
submit to Congress an annual report regarding assistance 
provided and activities carried out under this section during 
the preceding fiscal year. The report shall include the 
following:
            (1) * * *

           *       *       *       *       *       *       *

    [(h)] (g) Statutory Construction.--Nothing in this section 
shall be construed as a limitation on the authority of any unit 
of the National Guard of a State, when such unit is not in 
Federal service, to perform law enforcement functions 
authorized to be performed by the National Guard by the laws of 
the State concerned.
    [(i)] (h) Definitions.--For purposes of this section:
            (1) * * *

           *       *       *       *       *       *       *

CHAPTER 3--PERSONNEL

           *       *       *       *       *       *       *

Sec. 305. Federal recognition of commissioned officers: persons 
                    eligible

    (a) The following categories are eligible for Federal 
recognition as commissioned officers of the National Guard:
            (1) Members of the National Guard.
            (2) Members of the [Army, Navy, Air Force, or 
        Marine Corps] armed forces.
            (3) Former officers of the [Army, Navy, Air Force, 
        or Marine Corps] armed forces.
            (4) Former enlisted members of the [Army, Navy, Air 
        Force, or Marine Corps] armed forces who were 
        discharged honorably or under honorable conditions.
            (5) Graduates of the United States Military 
        Academy, the United States Naval Academy, [or the 
        United States Air Force Academy] the United States Air 
        Force Academy, or the United States Coast Guard 
        Academy.

           *       *       *       *       *       *       *

        CHAPTER 9--OPERATIONS OF A NATIONAL OR FEDERAL INTEREST

Sec.
901. Operational activities.
902. Operational duty.
903. Funding assistance.
904. Operations requests.

Sec. 901. Operational activities

    The Secretary of Defense may provide funds in advance or on 
a reimbursable basis to a Governor to employ National Guard 
units and individuals to conduct operational activities that 
the Secretary determines to be in the national interest. The 
Secretary of Defense shall prescribe regulations to implement 
this chapter.

Sec. 902. Operational duty

    All duty performed under this chapter shall be considered 
to be full-time National Guard duty under section 502(f) of 
this title. Members of the National Guard performing full-time 
National Guard duty in the Active Guard and Reserve Program may 
support or execute operational activities performed by the 
National Guard under this chapter.

Sec. 903. Funding assistance

    When the Secretary of Defense determines that certain 
operational activities of the National Guard are in the 
national interest under section 901 of this title, the 
Secretary shall provide funds to a State in an amount that the 
Secretary determines is appropriate for the following costs of 
the operational activities from funds available to the 
Department for related purposes:
            (1) The pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses of personnel 
        of the National Guard of that State.
            (2) The operation and maintenance of the equipment 
        and facilities of the National Guard of that State.
            (3) The procurement of services and equipment, and 
        the leasing of equipment, for the National Guard of 
        that State.

Sec. 904. Operations requests

    (a) Requests.--A Governor of a State may request funding 
assistance for the operational activities of the National Guard 
of that State from the Secretary of Defense. Any such request 
shall include the following:
            (1) The specific intended operational activities of 
        the National Guard of that State.
            (2) An explanation of why the operational 
        activities are in the national interest.
            (3) A certification that operational activities are 
        to be conducted at a time when the personnel involved 
        are not in Federal service.
            (4) A certification that participation by National 
        Guard personnel in the operational activities is 
        service in addition to training required under section 
        502 of this title.
                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000

           *       *       *       *       *       *       *
TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

Subtitle H--Matters Related to Recruiting

           *       *       *       *       *       *       *

[SEC. 573. ARMY COLLEGE FIRST PILOT PROGRAM.

    [(a) Program Required.--The Secretary of the Army shall 
establish a pilot program (to be known as the ``Army College 
First'' program) to assess whether the Army could increase the 
number of, and the level of the qualifications of, persons 
entering the Army as enlisted members by encouraging recruits 
to pursue higher education or vocational or technical training 
before entry into active service in the Army.
    [(b) Delayed Entry With Allowance for Higher Education.--
Under the pilot program, the Secretary may--
            [(1) exercise the authority under section 513 of 
        title 10, United States Code--
                    [(A) to accept the enlistment of a person 
                as a Reserve for service in the Selected 
                Reserve or Individual Ready Reserve of the Army 
                Reserve or, notwithstanding the scope of the 
                authority under subsection (a) of that section, 
                in the Army National Guard of the United 
                States; and
                    [(B) to authorize, notwithstanding the 
                period limitation in subsection (b) of that 
                section, a delay of the enlistment of any such 
                person in a regular component under that 
                subsection for the period during which the 
                person is enrolled in, and pursuing a program 
                of education at, an institution of higher 
                education, or a program of vocational or 
                technical training, on a full-time basis that 
                is to be completed within the maximum period of 
                delay determined for that person under 
                subsection (c); and
            [(2) subject to paragraph (2) of subsection (d) and 
        except as provided in paragraph (3) of that subsection, 
        pay an allowance to a person accepted for enlistment 
        under paragraph (1)(A) for each month of the period 
        during which that person is enrolled in and pursuing a 
        program described in paragraph (1)(B).
    [(c) Maximum Period of Delay.--The period of delay 
authorized a person under paragraph (1)(B) of subsection (b) 
may not exceed the 30-month period beginning on the date of the 
person's enlistment accepted under paragraph (1)(A) of such 
subsection.
    [(d) Allowance.--(1) The monthly allowance paid under 
subsection (b)(2) shall be equal to the amount of the 
subsistence allowance provided for certain members of the 
Senior Reserve Officers' Training Corps with the corresponding 
number of years of participation under section 209(a) of title 
37, United States Code.
    [(2) An allowance may not be paid to a person under this 
section for more than 24 months.
    [(3) A member of the Selected Reserve of a reserve 
component may be paid an allowance under this section only for 
months during which the member performs satisfactorily as a 
member of a unit of the reserve component that trains as 
prescribed in section 10147(a)(1) of title 10, United States 
Code, or section 502(a) of title 32, United States Code. 
Satisfactory performance shall be determined under regulations 
prescribed by the Secretary.
    [(4) An allowance under this section is in addition to any 
other pay or allowance to which a member of a reserve component 
is entitled by reason of participation in the Ready Reserve of 
that component.
    [(f) Recoupment of Allowance.--(1) A person who, after 
receiving an allowance under this section, fails to complete 
the total period of service required of that person in 
connection with delayed entry authorized for the person under 
section 513 of title 10, United States Code, shall repay the 
United States the amount which bears the same ratio to the 
total amount of that allowance paid to the person as the 
unserved part of the total required period of service bears to 
the total period.
      [(2) An obligation to repay the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States.
      [(3) A discharge of a person in bankruptcy under title 
11, United States Code, that is entered less than five years 
after the date on which the person was, or was to be, enlisted 
in the regular Army pursuant to the delayed entry authority 
under section 513 of title 10, United States Code, does not 
discharge that person from a debt arising under paragraph (1).
    [(4) The Secretary of the Army may waive, in whole or in 
part, a debt arising under paragraph (1) in any case for which 
the Secretary determines that recovery would be against equity 
and good conscience or would be contrary to the best interests 
of the United States.
    [(g) Comparison Group.--To perform the assessment under 
subsection (a), the Secretary may define and study any group 
not including persons receiving a benefit under subsection (b) 
and compare that group with any group or groups of persons who 
receive such benefits under the pilot program.
    [(h) Duration of Pilot Program.--The pilot program shall be 
in effect during the period beginning on October 1, 1999, and 
ending on September 30, 2004.
    [(i) Report.--Not later than February 1, 2004, the 
Secretary shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the 
pilot program. The report shall include the following:
            [(1) The assessment of the Secretary regarding the 
        value of the authority under this section for achieving 
        the objectives of increasing the number of, and the 
        level of the qualifications of, persons entering the 
        Army as enlisted members.
            [(2) Any recommendation for legislation or other 
        action that the Secretary considers appropriate to 
        achieve those objectives through grants of entry delays 
        and financial benefits for advanced education and 
        training of recruits.]

           *       *       *       *       *       *       *

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

           *       *       *       *       *       *       *

Subtitle B--Department of Defense Organization

           *       *       *       *       *       *       *

SEC. 914. CENTER FOR THE STUDY OF CHINESE MILITARY AFFAIRS.

    [(a) Establishment.--The Secretary of Defense shall 
establish a Center for the Study of Chinese Military Affairs as 
part of the National Defense University. The Center shall be 
organized under the Institute for National Strategic Studies of 
the University.]
    (a) Establishment.--There shall be a Center for the Study 
of Chinese Military Affairs organized under the United States-
China Economic and Security Review Commission established by 
section 1238 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (22 U.S.C. 7002).

           *       *       *       *       *       *       *

    [(d) Startup of Center.--The Secretary of Defense shall 
establish the Center for the Study of Chinese Military Affairs 
not later than March 1, 2000. The first Director of the Center 
shall be appointed not later than June 1, 2000. The Center 
should be fully operational not later than June 1, 2001.
    [(e) Implementation Report.--(1) Not later than January 1, 
2001, the President of the National Defense University shall 
submit to the Secretary of Defense a report setting forth the 
President's organizational plan for the Center for the Study of 
Chinese Military Affairs, the proposed budget for the Center, 
and the timetable for initial and full operations of the 
Center. The President of the National Defense University shall 
prepare that report in consultation with the Director of the 
Center and the Director of the Institute for National Strategic 
Studies of the University.
    [(2) The Secretary of Defense shall transmit the report 
under paragraph (1), together with whatever comments the 
Secretary considers appropriate, to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives not later than February 1, 2001.]

           *       *       *       *       *       *       *

                              ----------                              

               CHAPTER 9 OF TITLE 14, UNITED STATES CODE

                     CHAPTER 9--COAST GUARD ACADEMY

Sec.
181.    Administration of Academy.
     * * * * * * *
197.    Cadets: charges and fees for attendance; limitation.
     * * * * * * *

Sec. 197. Cadets: charges and fees for attendance; limitation

    (a) Prohibition.--Except as provided in subsection (b), no 
charge or fee for tuition, room, or board for attendance at the 
Academy may be imposed unless the charge or fee is specifically 
authorized by a law enacted after October 5, 1994.
    (b) Exception.--The prohibition specified in subsection (a) 
does not apply with respect to any item or service provided to 
cadets for which a charge or fee is imposed as of October 5, 
1994. The Secretary of Homeland Security shall notify Congress 
of any change made by the Academy in the amount of a charge or 
fee authorized under this subsection.
                              ----------                              

                       MERCHANT MARINE ACT, 1936

           *       *       *       *       *       *       *
TITLE XII--WAR RISK INSURANCE

           *       *       *       *       *       *       *

    Sec. 1208. (a) The Secretary shall create an insurance fund 
in the Treasury to enable him to carry out the provisions of 
this title. Moneys appropriated by Congress to carry out the 
provisions of this title and all moneys received from premiums, 
salvage, or other recoveries and all receipts in connection 
with this title shall be deposited in the Treasury to the 
credit of such fund. [Payments of return premiums, losses, 
settlements, judgments, and all liabilities incurred by the 
United States under this title shall be made from such fund 
through the Division of Disbursement, Treasury Department.] The 
Secretary of Transportation may request the Secretary of the 
Treasury to invest such portion of the Fund as is not, in the 
judgment of the Secretary of Transportation, required to meet 
the current needs of the fund. Such investments shall be made 
by the Secretary of the Treasury in public debt securities of 
the United States, with maturities suitable to the needs of the 
fund, and bearing interest rates determined by the Secretary of 
the Treasury, taking into consideration current market yields 
on outstanding marketable obligations of the United States of 
comparable maturity. Upon the request of the Secretary of 
Transportation, the Secretary of the Treasury may invest or 
reinvest all or any part of the fund in securities of the 
United States or in securities guaranteed as to principal and 
interest by the United States. The interest and benefits 
accruing from such securities shall be deposited to the credit 
of the fund.

           *       *       *       *       *       *       *

    Sec. 1214. The authority of the Secretary to provide 
insurance and reinsurance under this title shall expire [June 
30, 2005] December 31, 2010.

TITLE XIII--MARITIME EDUCATION AND TRAINING

           *       *       *       *       *       *       *

    Sec. 1303. (a) * * *

           *       *       *       *       *       *       *

    (j) Limitation on Charges and Fees for Attendance.--
            (1) Except as provided in paragraph (2), no charge 
        or fee for tuition, room, or board for attendance at 
        the Academy may be imposed unless the charge or fee is 
        specifically authorized by a law enacted after October 
        5, 1994.
            (2)The prohibition specified in paragraph (1) does 
        not apply with respect to any item or service provided 
        to cadets for which a charge or fee is imposed as of 
        October 5, 1994. The Secretary of Transportation shall 
        notify Congress of any change made by the Academy in 
        the amount of a charge or fee authorized under this 
        paragraph.

           *       *       *       *       *       *       *

                              ----------                              

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1995

           *       *       *       *       *       *       *
TITLE III--OPERATION AND MAINTENANCE

           *       *       *       *       *       *       *

Subtitle E--Civilian Employees

           *       *       *       *       *       *       *

SEC. 349. UNIFORM HEALTH BENEFITS PROGRAM FOR EMPLOYEES OF THE 
                    DEPARTMENT OF DEFENSE ASSIGNED TO NONAPPROPRIATED 
                    FUND INSTRUMENTALITIES.

    (a) * * *

           *       *       *       *       *       *       *

    (c) Treatment of Program as Federal Health Benefit 
Program.--(1) No State tax, fee, other monetary payment, or 
State health plan requirement, may be imposed, directly or 
indirectly, on the Nonappropriated Fund Uniform Health Benefits 
Program of the Department of Defense, or on a carrier or an 
underwriting or plan administration contractor of the Program, 
to the same extent as such prohibition applies to the health 
insurance program authorized by chapter 89 of title 5, United 
States Code, under section 8909(f) of such title.
    (2) Paragraph (1) shall not be construed to exempt the 
Nonappropriated Fund Uniform Health Benefits Program of the 
Department of Defense, or any carrier or underwriting or plan 
administration contractor of the Program from the imposition, 
payment, or collection of a tax, fee, or other monetary payment 
on the net income or profit accruing to, or realized by, the 
Program or by such carrier or contractor from business 
conducted under the Program, so long as the tax, fee, or 
payment is applicable to a broad range of business activity.
    (3) In this section, the term ``State'' means each of the 
several States, the District of Columbia, the Commonwealth of 
Puerto Rico, the United States Virgin Islands, Guam, American 
Samoa, and the Commonwealth of the Northern Mariana Islands, 
and any political subdivision or other non-Federal authority 
thereof.

           *       *       *       *       *       *       *

TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

Subtitle E--Other Matters

           *       *       *       *       *       *       *

[SEC. 553. PROHIBITION ON IMPOSITION OF ADDITIONAL CHARGES OR FEES FOR 
                    ATTENDANCE AT CERTAIN ACADEMIES.

    [(a) Prohibition.--Except as provided in subsection (b), no 
charge or fee for tuition, room, or board for attendance at an 
academy named in subsection (c) may be imposed unless the 
charge or fee is specifically authorized by a law enacted after 
the date of the enactment of this Act.
    [(b) Exception.--The prohibition specified in subsection 
(a) shall not apply with respect to any item or service 
provided to cadets or midshipmen at an academy named in 
subsection (c) for which a charge or fee is imposed as of the 
date of the enactment of this Act.
    [(c) Covered Academies.--This section applies to the 
following:
            [(1) The United States Military Academy.
            [(2) The United States Naval Academy.
            [(3) The United States Air Force Academy.
            [(4) The United States Coast Guard Academy.
            [(5) The United States Merchant Marine Academy.]

           *       *       *       *       *       *       *

TITLE XV--ARMS CONTROL MATTERS

           *       *       *       *       *       *       *

SEC. 1504. AMOUNTS FOR COUNTERPROLIFERATION ACTIVITIES.

    (a) * * *

           *       *       *       *       *       *       *

    (e) Use of Funds for Technology Development.--(1) * * *

           *       *       *       *       *       *       *

    (3)(A) [The training program referred to in paragraph 
(1)(B) is a] The Secretary of Defense may participate in a 
training program carried out jointly by the Secretary of 
Defense and the Director of the Federal Bureau of Investigation 
in order to expand and improve United States efforts to deter 
the possible proliferation and acquisition of weapons of mass 
destruction by organized crime organizations in Eastern Europe, 
the Baltic countries, and states of the former Soviet Union, 
and in other countries in which, as determined by the Secretary 
of Defense, there exists a significant threat of such 
proliferation and acquisition.

           *       *       *       *       *       *       *

TITLE XXVIII--GENERAL PROVISIONS

           *       *       *       *       *       *       *

Subtitle B--Defense Base Closure and Realignment

           *       *       *       *       *       *       *

SEC. 2814. GOVERNMENT RENTAL OF FACILITIES LOCATED ON CLOSED MILITARY 
                    INSTALLATIONS.

    (a) * * *
    [(b) Base Closure Law Defined.--For purposes of this 
section, the term ``base closure law'' means each of the 
following:
            [(1) 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).
            [(2) Title II of the Defense Authorization 
        Amendments and Base Closure and Realignment Act (Public 
        Law 100-526; 10 U.S.C. 2687 note).]
    (b) Base Closure Law Defined.--In this section, the term 
``base closure law'' has the meaning given such term in section 
101(a)(17) of title 10, United States Code.

           *       *       *       *       *       *       *

                              ----------                              

 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

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

TITLE I--PROCUREMENT

           *       *       *       *       *       *       *

Subtitle E--Other Matters

           *       *       *       *       *       *       *

SEC. 142. ALTERNATIVE TECHNOLOGIES FOR DESTRUCTION OF ASSEMBLED 
                    CHEMICAL WEAPONS.

    [(a) Program Management.--The program manager for the 
Assembled Chemical Weapons Assessment shall continue to manage 
the development and testing (including demonstration and pilot-
scale testing) of technologies for the destruction of lethal 
chemical munitions that are potential or demonstrated 
alternatives to the baseline incineration program. In 
performing such management, the program manager shall act 
independently of the program manager for Chemical 
Demilitarization and shall report to the Under Secretary of 
Defense for Acquisition and Technology.
    [(b) Post-Demonstration Activities.--(1) The program 
manager for the Assembled Chemical Weapons Assessment may carry 
out those activities necessary to ensure that an alternative 
technology for the destruction of lethal chemical munitions can 
be implemented immediately after--
            [(A) the technology has been demonstrated to be 
        successful; and
            [(B) the Under Secretary of Defense for Acquisition 
        and Technology has submitted a report on the 
        demonstration to Congress that includes a decision to 
        proceed with the pilot-scale facility phase for an 
        alternative technology.
    [(2) To prepare for the immediate implementation of any 
such technology, the program manager may, during fiscal years 
1998 and 1999, take the following actions:
            [(A) Establish program requirements.
            [(B) Prepare procurement documentation.
            [(C) Develop environmental documentation.
            [(D) Identify and prepare to meet public outreach 
        and public participation requirements.
            [(E) Prepare to award a contract for the design, 
        construction, and operation of a pilot facility for the 
        technology to the provider team for the technology not 
        later than December 30, 1999.
    [(c) Independent Evaluation.--The Under Secretary of 
Defense for Acquisition and Technology shall provide for an 
independent evaluation of the cost and schedule of the 
Assembled Chemical Weapons Assessment, which shall be performed 
and submitted to the Under Secretary not later than September 
30, 1999. The evaluation shall be performed by a 
nongovernmental organization qualified to make such an 
evaluation.
    [(d) Pilot Facilities Contracts.--(1) The Under Secretary 
of Defense for Acquisition and Technology shall determine 
whether to proceed with pilot-scale testing of a technology 
referred to in paragraph (2) in time to award a contract for 
the design, construction, and operation of a pilot facility for 
the technology to the provider team for the technology not 
later than December 30, 1999. If the Under Secretary determines 
to proceed with such testing, the Under Secretary shall 
(exercising the acquisition authority of the Secretary of 
Defense) so award a contract not later than such date.
    [(2) Paragraph (1) applies to an alternative technology for 
the destruction of lethal chemical munitions, other than 
incineration, that the Under Secretary--
            [(A) certifies in writing to Congress is--
                    [(i) as safe and cost effective for 
                disposing of assembled chemical munitions as is 
                incineration of such munitions; and
                    [(ii) is capable of completing the 
                destruction of such munitions on or before the 
                later of the date by which the destruction of 
                the munitions would be completed if 
                incineration were used or the deadline date for 
                completing the destruction of the munitions 
                under the Chemical Weapons Convention; and
            [(B) determines as satisfying the Federal and State 
        environmental and safety laws that are applicable to 
        the use of the technology and to the design, 
        construction, and operation of a pilot facility for use 
        of the technology.
    [(3) The Under Secretary shall consult with the National 
Research Council in making determinations and certifications 
for the purpose of paragraph (2).
    [(4) In this subsection, the term ``Chemical Weapons 
Convention'' means the Convention on the Prohibition of 
Development, Production, Stockpiling and Use of Chemical 
Weapons and on their Destruction, opened for signature on 
January 13, 1993, together with related annexes and associated 
documents.
    [(e) Plan for Pilot Program.--If the Secretary of Defense 
proceeds with a pilot program under section 152(f) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 214; 50 U.S.C. 1521 note), the Secretary 
shall prepare a plan for the pilot program and shall submit to 
Congress a report on such plan (including information on the 
cost of, and schedule for, implementing the pilot program).
    [(f) Funding.--(1) Of the amount authorized to be 
appropriated under section 107, funds shall be available for 
the program manager for the Assembled Chemical Weapons 
Assessment for the following:
            [(A) Demonstrations of alternative technologies 
        under the Assembled Chemical Weapons Assessment.
            [(B) Planning and preparation to proceed from 
        demonstration of an alternative technology immediately 
        into the development of a pilot-scale facility for the 
        technology, including planning and preparation for--
                    [(i) continued development of the 
                technology leading to deployment of the 
                technology for use;
                    [(ii) satisfaction of requirements for 
                environmental permits;
                    [(iii) demonstration, testing, and 
                evaluation;
                    [(iv) initiation of actions to design a 
                pilot plant;
                    [(v) provision of support at the field 
                office or depot level for deployment of the 
                technology for use; and
                    [(vi) educational outreach to the public to 
                engender support for the deployment.
            [(C) The independent evaluation of cost and 
        schedule required under subsection (c).
    [(2) Funds authorized to be appropriated under section 
107(1) are authorized to be used for awarding contracts in 
accordance with subsection (d) and for taking any other action 
authorized in this section.
    [(g) Assembled Chemical Weapons Assessment Defined.--In 
this section, the term ``Assembled Chemical Weapons 
Assessment'' means the pilot program carried out under section 
8065 of the Department of Defense Appropriations Act, 1997 
(section 101(b) of Public Law 104-208; 110 Stat. 3009-101; 50 
U.S.C. 1521 note).]
    (a) Program Management.--(1) The program manager for the 
Assembled Chemical Weapons Alternatives program shall report to 
the Secretary of the Army.
    (2) The Secretary of the Army shall provide for that 
program to be managed as part of the management organization 
within the Department of the Army specified in section 1412(e) 
of Public Law 99-145 (50 U.S.C. 1521(e)).
    (b) Continued Implementation of Previously Selected 
Alternative Technologies.--(1) In carrying out the destruction 
of lethal chemical munitions at Pueblo Chemical Depot, 
Colorado, the Secretary of the Army shall continue to implement 
fully the alternative technology for such destruction at that 
depot selected by the Under Secretary of Defense for 
Acquisition, Technology, and Logistics on July 16, 2002.
    (2) In carrying out the destruction of lethal chemical 
munitions at Blue Grass Army Depot, Kentucky, the Secretary of 
the Army shall continue to implement fully the alternative 
technology for such destruction at that depot selected by the 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics on February 3, 2003.

           *       *       *       *       *       *       *

TITLE III--OPERATION AND MAINTENANCE

           *       *       *       *       *       *       *

Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

           *       *       *       *       *       *       *

[SEC. 367. PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES 
                    OF DEPARTMENT OF DEFENSE RETAIL SYSTEMS.

    [(a) Defense Retail Systems Defined.--For purposes of this 
section, the term ``defense retail systems'' means the defense 
commissary system and exchange stores and other revenue-
generating facilities operated by nonappropriated fund 
activities of the Department of Defense for the morale, 
welfare, and recreation of members of the Armed Forces.
    [(b) Prohibition.--The operation and administration of the 
defense retail systems may not be consolidated or otherwise 
merged unless the consolidation or merger is specifically 
authorized by a law enacted after the date of the enactment of 
this Act.
    [(c) Effect on Existing Study.--Nothing in this section 
shall be construed to prohibit the study of defense retail 
systems, known as the ``Joint Exchange Due Diligence Study'', 
which is underway on the date of the enactment of this Act 
pursuant to a contract awarded by the Department of the Navy on 
April 21, 1998, except that any recommendation contained in the 
completed study regarding the operation or administration of 
the defense retail systems may not be implemented unless 
implementation of the recommendation is specifically authorized 
by a law enacted after the date of the enactment of this Act.]

           *       *       *       *       *       *       *

TITLE V--MILITARY PERSONNEL POLICY

           *       *       *       *       *       *       *

Subtitle G--Other Matters

           *       *       *       *       *       *       *

SEC. 571. PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL DIPLOMA 
                    RECIPIENTS AS HIGH SCHOOL GRADUATES FOR 
                    DETERMINATIONS OF ELIGIBILITY FOR ENLISTMENT IN THE 
                    ARMED FORCES.

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Duration of Pilot Program.--The pilot program shall be 
in effect during the period beginning on October 1, 1998, and 
ending on September 30, 2003.]
    (e) Duration of Pilot Program.--The pilot program shall be 
in effect during the period beginning on October 1, 2004, and 
ending on September 30, 2005.

           *       *       *       *       *       *       *

TITLE XII--MATTERS RELATING TO OTHER NATIONS

           *       *       *       *       *       *       *

Subtitle D--Other Matters

           *       *       *       *       *       *       *

SEC. 1237. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL EMERGENCY 
                    ECONOMIC POWERS ACT TO COMMUNIST CHINESE MILITARY 
                    COMPANIES.

    (a) * * *
    (b) Determination and Reporting of Communist Chinese 
Military Companies Operating in United States.--
            (1) * * *

           *       *       *       *       *       *       *

            (4) Communist chinese military company.--For 
        purposes of making the determination required by 
        paragraph (1) and of carrying out paragraph (2), the 
        term ``Communist Chinese military company'' means--
                    (A) * * *
                    (B) any other person that--
                            (i) is owned or controlled by the 
                        People's Liberation Army, by a ministry 
                        of the government of the People's 
                        Republic of China, or by an entity 
                        affiliated with the defense industrial 
                        base of the People's Republic of China; 
                        and

           *       *       *       *       *       *       *

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

           *       *       *       *       *       *       *

SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL 
                    DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (c), the 
President shall dispose of materials contained in the National 
Defense Stockpile and specified in the table in subsection (b) 
so as to result in receipts to the United States in total 
amounts not less than--
            (1) * * *

           *       *       *       *       *       *       *

            [(4) $760,000,000 by the end of fiscal year 2005; 
        and
            [(5) $770,000,000 by the end of fiscal year 2011.]
            (4) $785,000,000 by the end of fiscal year 2005; 
        and
            (5) $870,000,000 by the end of fiscal year 2009.

           *       *       *       *       *       *       *

                              ----------                              

   SECTION 8120 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2000

    [Sec. 8120. During the current fiscal year and hereafter, 
any Federal grant of funds to an institution of higher 
education to be available solely for student financial 
assistance or related administrative costs may be used for the 
purpose for which the grant is made without regard to any 
provision to the contrary in section 514 of the Departments of 
Labor, Health and Human Services, Education, and Related 
Agencies Appropriations Act, 1997 (10 U.S.C. 503 note), or 
section 983 of title 10, United States Code.]
                              ----------                              

            DEFENSE BASE CLOSURE AND REALIGNMENT ACT OF 1990

           *       *       *       *       *       *       *
           TITLE XXIX--DEFENSE BASE CLOSURES AND REALIGNMENTS

        Part A--Defense Base Closure and Realignment Commission

SEC. 2901. SHORT TITLE AND PURPOSE

    (a) Short Title.--This part may be cited as the ``Defense 
Base Closure and Realignment Act of 1990''.

           *       *       *       *       *       *       *

SEC. 2902. THE COMMISSION

    (a) * * *

           *       *       *       *       *       *       *

    (e) Meetings.--(1) * * *
    (2)(A) * * *
    (B) All the proceedings, information, and deliberations of 
the Commission shall be open, upon request, to the following:
            (i) The Chairman and the ranking minority party 
        member of the [Subcommittee on Readiness, 
        Sustainability, and Support] Subcommittee on Readiness 
        and Management Support of the Committee on Armed 
        Services of the Senate, or such other members of the 
        Subcommittee designated by such Chairman or ranking 
        minority party member.
            (ii) The Chairman and the ranking minority party 
        member of the [Subcommittee on Military Installations 
        and Facilities] Subcommittee on Readiness of the 
        Committee on Armed Services of the House of 
        Representatives, or such other members of the 
        Subcommittee designated by such Chairman or ranking 
        minority party member.

           *       *       *       *       *       *       *

SEC. 2904. CLOSURE AND REALIGNMENT OF MILITARY INSTALLATIONS

    (a) In General.--Subject to subsection (b), the Secretary 
shall--
            (1) * * *

           *       *       *       *       *       *       *

            (3) carry out the privatization in place of a 
        military installation recommended for closure or 
        realignment by the Commission [in the 2005 report] in a 
        report submitted after 2001 only if privatization in 
        place is a method of closure or realignment of the 
        military installation specified in the recommendations 
        of the Commission in such report and is determined by 
        the Commission to be the most cost-effective method of 
        implementation of the recommendation;

           *       *       *       *       *       *       *

SEC. 2906. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 1990

    (a) * * *

           *       *       *       *       *       *       *

    (e) Account Exclusive Source of Funds for Environmental 
Restoration Projects.--Except as provided in section 2906A(e) 
with respect to funds in the Department of Defense Base Closure 
Account [2005] 2007 under section 2906A and except for funds 
deposited into the Account under subsection (a), funds 
appropriated to the Department of Defense may not be used for 
purposes described in section 2905(a)(1)(C). The prohibition in 
this subsection shall expire upon the closure of the Account 
under subsection (a)(3).

SEC. 2906A. DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT [2005] 2007.

    (a) In General.--(1) If the Secretary makes the 
certifications required under section 2912(b), there shall be 
established on the books of the Treasury an account to be known 
as the ``Department of Defense Base Closure Account [2005] 
2007'' (in this section referred to as the ``Account''). The 
Account shall be administered by the Secretary as a single 
account.
    (2) There shall be deposited into the Account--
            (A) * * *

           *       *       *       *       *       *       *

            (C) except as provided in subsection (d), proceeds 
        received from the lease, transfer, or disposal of any 
        property at a military installation that is closed or 
        realigned under this part pursuant to a closure or 
        realignment the date of approval of which is after 
        January 1, [2005] 2007.

           *       *       *       *       *       *       *

    (b) Use of Funds.--(1) The Secretary may use the funds in 
the Account only for the purposes described in section 2905 
with respect to military installations the date of approval of 
closure or realignment of which is after January 1, [2005] 
2007.

           *       *       *       *       *       *       *

    (c) Reports.--(1) * * *
    (2) No later than 60 days after the termination of the 
authority of the Secretary to carry out a closure or 
realignment under this part with respect to military 
installations the date of approval of closure or realignment of 
which is after January 1, [2005] 2007, and no later than 60 
days after the closure of the Account under subsection (a)(3), 
the Secretary shall transmit to the congressional defense 
committees a report containing an accounting of--
            (A) * * *

           *       *       *       *       *       *       *

    (d) Disposal or Transfer of Commissary Stores and Property 
Purchased With Nonappropriated Funds.--(1) If any real property 
or facility acquired, constructed, or improved (in whole or in 
part) with commissary store funds or nonappropriated funds is 
transferred or disposed of in connection with the closure or 
realignment of a military installation under this part the date 
of approval of closure or realignment of which is after January 
1, [2005] 2007, a portion of the proceeds of the transfer or 
other disposal of property on that installation shall be 
deposited in the reserve account established under section 
204(b)(7)(C) of the Defense Authorization Amendments and Base 
Closure and Realignment Act (10 U.S.C. 2687 note).

           *       *       *       *       *       *       *

SEC. 2909. RESTRICTION ON OTHER BASE CLOSURE AUTHORITY

    (a) In General.--Except as provided in subsection (c), 
during the period beginning on November 5, 1990, and ending on 
April 15, [2006] 2008, this part shall be the exclusive 
authority for selecting for closure or realignment, or for 
carrying out any closure or realignment of, a military 
installation inside the United States.

           *       *       *       *       *       *       *

SEC. 2912. [2005] 2007 ROUND OF REALIGNMENTS AND CLOSURES OF MILITARY 
                    INSTALLATIONS.

    (a) Force-Structure Plan and Infrastructure Inventory.--
            (1) Preparation and submission.--As part of the 
        budget justification documents submitted to Congress in 
        support of the budget for the Department of Defense for 
        fiscal year [2005] 2007, the Secretary shall include 
        the following:
                    (A) A force-structure plan for the Armed 
                Forces based on an assessment by the Secretary 
                of the probable threats to the national 
                security during the 20-year period beginning 
                with fiscal year [2005] 2007, the probable end-
                strength levels and major military force units 
                (including land force divisions, carrier and 
                other major combatant vessels, air wings, and 
                other comparable units) needed to meet these 
                threats, and the anticipated levels of funding 
                that will be available for national defense 
                purposes during such period.

           *       *       *       *       *       *       *

            (4) Revision.--The Secretary may revise the force-
        structure plan and infrastructure inventory. If the 
        Secretary makes such a revision, the Secretary shall 
        submit the revised plan or inventory to Congress as 
        part of the budget justification documents submitted to 
        Congress for fiscal year 2006.
    (b) Certification of Need for Further Closures and 
Realignments.--
            (1) Certification required.--On the basis of the 
        force-structure plan and infrastructure inventory 
        prepared under subsection (a) for fiscal year 2007 and 
        the descriptions and economic analysis prepared under 
        such subsection, the Secretary shall include as part of 
        the submission of the plan and inventory--
                    (A) * * *

           *       *       *       *       *       *       *

            (2) Effect of failure to certify.--If the Secretary 
        does not include the certifications referred to in 
        paragraph (1), the process by which military 
        installations may be selected for closure or 
        realignment under this part [in 2005] under section 
        2914 shall be terminated.
    (c) Comptroller General Evaluation.--
            (1) Evaluation required.--If the certification is 
        provided under subsection (b), the Comptroller General 
        shall prepare an evaluation of the following:
                    (A) The force-structure plan and 
                infrastructure inventory prepared under 
                subsection (a) and the final selection 
                [criteria prepared under section 2913] criteria 
                specified in section 2913, including an 
                evaluation of the accuracy and analytical 
                sufficiency of such plan, inventory, and 
                criteria.

           *       *       *       *       *       *       *

    (d) Authorization of Additional Round; Commission.--
            (1) Appointment of commission.--Subject to the 
        certifications required under subsection (b), the 
        President may commence an additional round for the 
        selection of military installations for closure and 
        realignment under this part [in 2005] under section 
        2914 by transmitting to the Senate, not later than 
        March 15, [2005] 2007, nominations pursuant to section 
        2902(c) for the appointment of new members to the 
        Defense Base Closure and Realignment Commission.
            (2) Effect of failure to nominate.--If the 
        President does not transmit to the Senate the 
        nominations for the Commission by March 15, [2005] 
        2007, the process by which military installations may 
        be selected for closure or realignment under this part 
        [in 2005] under section 2914 shall be terminated.

           *       *       *       *       *       *       *

            (4) Terms; meetings; termination.--Notwithstanding 
        subsections (d), (e)(1), and (l) of section 2902, the 
        Commission appointed under the authority of this 
        subsection shall meet during [calendar year 2005 and 
        shall terminate on April 15, 2006] calendar year 2007 
        and shall terminate on April 15, 2008.
            (5) Funding.--If no funds are appropriated to the 
        Commission by the end of the [second session of the 
        108th Congress for the activities of the Commission in 
        2005] second session of the 109th Congress for the 
        activities of the Commission under section 2914, the 
        Secretary may transfer to the Commission for purposes 
        of its activities under this part in that year such 
        funds as the Commission may require to carry out such 
        activities. The Secretary may transfer funds under the 
        preceding sentence from any funds available to the 
        Secretary. Funds so transferred shall remain available 
        to the Commission for such purposes until expended.
    (e) Infrastructure-Related Reports.--
            (1) Required reports.--The Secretary shall prepare 
        the following reports related to infrastructure 
        requirements for the Armed Forces:
                    (A) A report containing the Integrated 
                Global Presence and Basing Strategy of the 
                Department of Defense, including the location 
                of long-term overseas installations, 
                installations to be used for rotational 
                purposes, and forward operating locations, 
                anticipated rotational plans and policies, and 
                domestic and overseas infrastructure 
                requirements associated with the strategy.
                    (B) A report describing the anticipated 
                infrastructure requirements associated with the 
                probable end-strength levels and major military 
                force units (including land force divisions, 
                carrier and other major combatant vessels, air 
                wings, and other comparable units) for each of 
                the Armed Forces resulting from force 
                transformation.
                    (C) A report describing the anticipated 
                infrastructure requirements related to expected 
                changes in the active component versus reserve 
                component personnel mix of the Armed Forces.
                    (D) A report describing the anticipated 
                infrastructure requirements associated with the 
                so-called ``10-30-30 objective'' of the 
                Secretary to ensure that military forces are 
                capable of deployment overseas within 10 days 
                in sufficient strength to defeat an enemy 
                within 30 days and be ready for redeployment 
                within 30 days after the end of combat 
                operations.
                    (E) A report containing the results of a 
                complete reassessment of the infrastructure 
                necessary to support the force structure 
                described in the force-structure plan prepared 
                under paragraph (1) of subsection (a) and 
                describing any resulting excess infrastructure 
                and infrastructure capacity, which were 
                previously required by paragraph (2) of such 
                subsection. The reassessment shall be based on 
                actual infrastructure, facility, and space 
                requirements for the Armed Forces rather than a 
                comparative study between 1989 and 2003.
                    (F) A report describing the anticipated 
                infrastructure requirements associated with the 
                assessment prepared by the Secretary pursuant 
                to section 2822 of the National Defense 
                Authorization Act for Fiscal Year 2004 (Public 
                Law 108-136; 117 Stat. 1726), in which Congress 
                required the Secretary to assess the probable 
                threats to national security and determine the 
                potential, prudent, surge requirements for the 
                Armed Forces and military installations to meet 
                those threats.
            (2) Time for submission of reports.--The reports 
        required by paragraph (1) shall be submitted to the 
        congressional defense committees only during the period 
        beginning on January 1, 2006, and ending on March 15, 
        2006.
            (3) Termination of round for failure to submit 
        reports as required.--If the reports required by 
        paragraph (1) are not submitted during the period 
        specified in paragraph (2), the process for the making 
        of recommendations to the Congress for the closure or 
        realignment of military installations and the selection 
        of installations for closure or realignment under this 
        part in 2007 shall be terminated.

[SEC. 2913. SELECTION CRITERIA FOR 2005 ROUND.

    [(a) Preparation of Proposed Selection Criteria.--
            [(1) In general.--Not later than December 31, 2003, 
        the Secretary shall publish in the Federal Register and 
        transmit to the congressional defense committees the 
        criteria proposed to be used by the Secretary in making 
        recommendations for the closure or realignment of 
        military installations inside the United States under 
        this part in 2005.
            [(2) Public comment.--The Secretary shall provide 
        an opportunity for public comment on the proposed 
        criteria for a period of at least 30 days and shall 
        include notice of that opportunity in the publication 
        required under this subsection.
    [(b) Military Value as Primary Consideration.--The 
selection criteria prepared by the Secretary shall ensure that 
military value is the primary consideration in the making of 
recommendations for the closure or realignment of military 
installations under this part in 2005. Military value shall 
include at a minimum the following:
            [(1) Preservation of training areas suitable for 
        maneuver by ground, naval, or air forces to guarantee 
        future availability of such areas to ensure the 
        readiness of the Armed Forces.
            [(2) Preservation of military installations in the 
        United States as staging areas for the use of the Armed 
        Forces in homeland defense missions.
            [(3) Preservation of military installations 
        throughout a diversity of climate and terrain areas in 
        the United States for training purposes.
            [(4) The impact on joint warfighting, training, and 
        readiness.
            [(5) Contingency, mobilization, and future total 
        force requirements at both existing and potential 
        receiving locations to support operations and training.
    [(c) Special Considerations.--The selection criteria for 
military installations shall also address at a minimum the 
following:
            [(1) The extent and timing of potential costs and 
        savings, including the number of years, beginning with 
        the date of completion of the closure or realignment, 
        for the savings to exceed the costs.
            [(2) The economic impact on existing communities in 
        the vicinity of military installations.
            [(3) The ability of both existing and potential 
        receiving communities' infrastructure to support 
        forces, missions, and personnel.
            [(4) The impact of costs related to potential 
        environmental restoration, waste management, and 
        environmental compliance activities.
    [(d) Effect on Department and Other Agency Costs.--Any 
selection criteria proposed by the Secretary relating to the 
cost savings or return on investment from the proposed closure 
or realignment of military installations shall take into 
account the effect of the proposed closure or realignment on 
the costs of any other activity of the Department of Defense or 
any other Federal agency that may be required to assume 
responsibility for activities at the military installations.
    [(e) Final Selection Criteria.--Not later than February 16, 
2004, the Secretary shall publish in the Federal Register and 
transmit to the congressional defense committees the final 
criteria to be used in making recommendations for the closure 
or realignment of military installations inside the United 
States under this part in 2005. Such criteria shall be the 
final criteria to be used, along with the force-structure plan 
and infrastructure inventory referred to in section 2912, in 
making such recommendations unless disapproved by an Act of 
Congress enacted on or before March 15, 2004.
    [(f) Relation to Criteria for Earlier Rounds.--Section 
2903(b), and the selection criteria prepared under such 
section, shall not apply with respect to the process of making 
recommendations for the closure or realignment of military 
installations in 2005.]

SEC. 2913. FINAL SELECTION CRITERIA FOR ADDITIONAL ROUND OF BASE 
                    CLOSURES AND REALIGNMENTS.

    (a) Final Selection Criteria.--The final criteria to be 
used by the Secretary in making recommendations for the closure 
or realignment of military installations inside the United 
States under this part in any additional round of base closures 
and realignments are as follows:
            (1) The current and future mission requirements and 
        the impact on operational readiness of the total force 
        of the Department of Defense, including the impact on 
        joint warfighting, training, readiness, and research, 
        development, test, and evaluation of weapons systems 
        and equipment.
            (2) The availability and condition of land, 
        facilities, infrastructure, and associated air and 
        water space (including preservation of training areas 
        suitable for maneuver by ground, naval, or air forces 
        throughout a diversity of climate and terrain areas, 
        the preservation of testing ranges able to accommodate 
        current or future military weapons systems and 
        equipment, and the preservation of staging areas for 
        the use of the Armed Forces in homeland defense 
        missions) at both existing and potential receiving 
        locations.
            (3) The ability to accommodate contingency, 
        mobilization, and future total force requirements at 
        both existing and potential receiving locations to 
        support operations, training, maintenance, and repair.
            (4) Preservation of land, air, and water space, 
        facilities, and infrastructure necessary to support 
        training and operations of military forces determined 
        to be surge requirements by the Secretary of Defense, 
        as required by section 2822 of the National Defense 
        Authorization Act for Fiscal Year 2004 (Public Law 108-
        136; 117 Stat. 1726).
            (5) The extent and timing of potential costs and 
        savings of base realignment and closure actions on the 
        entire Federal budget, as well as the Department of 
        Defense, including the number of years, beginning with 
        the date of completion of the closure or realignment, 
        for the savings to exceed the costs. Costs shall 
        include those costs related to potential environmental 
        restoration, waste management, and environmental 
        compliance activities.
            (6) The economic impact on existing communities in 
        the vicinity of military installations.
            (7) The ability of the infrastructure of both the 
        existing and potential receiving communities to support 
        forces, missions, and personnel, including quality of 
        living standards for members of the Armed Forces and 
        their dependents.
            (8) The environmental impact on receiving 
        locations.
    (b) Priority Given to Military Value.--In recommending 
military installations for closure or realignment, the 
Secretary shall give priority consideration to the first four 
criteria specified in subsection (a).
    (c) Relation to Other Materials.--The final selection 
criteria specified in subsection (a) shall be the only criteria 
to be used, along with the force-structure plan and 
infrastructure inventory referred to in section 2912, in making 
recommendations for the closure or realignment of military 
installations inside the United States under this part after 
December 31, 2003.
    (d) Relation to Criteria for Earlier Rounds.--Section 
2903(b), and the selection criteria prepared under such 
section, shall not apply with respect to the process of making 
recommendations for the closure or realignment of military 
installations after December 31, 2003.

SEC. 2914. SPECIAL PROCEDURES FOR MAKING RECOMMENDATIONS FOR 
                    REALIGNMENTS AND CLOSURES FOR [2005] 2007 ROUND; 
                    COMMISSION CONSIDERATION OF RECOMMENDATIONS.

    (a) Recommendations Regarding Closure or Realignment of 
Military Installations.--If the Secretary makes the 
certifications required under section 2912(b), the Secretary 
shall publish in the Federal Register and transmit to the 
congressional defense committees and the Commission, not later 
than May 16, [2005] 2007, a list of the military installations 
inside the United States that the Secretary recommends for 
closure or realignment on the basis of the force-structure plan 
and infrastructure inventory prepared by the Secretary under 
section 2912 and the final selection [criteria prepared by the 
Secretary under section 2913] criteria specified in section 
2913.

           *       *       *       *       *       *       *

    (d) Commission Review and Recommendations.--
            (1) In general.--Except as provided in this 
        subsection, section 2903(d) shall apply to the 
        consideration by the Commission of the recommendations 
        transmitted by the Secretary in 2005. The Commission's 
        report containing its findings and conclusions, based 
        on a review and analysis of the Secretary's 
        recommendations, shall be transmitted to the President 
        not later than September 8, [2005] 2007.
            (2) Availability of recommendations to congress.--
        After September 8, [2005] 2007, the Commission shall 
        promptly provide, upon request, to any Member of 
        Congress information used by the Commission in making 
        its recommendations.
            (3) Limitations on authority [to add] to consider 
        additions to closure or realignment lists.--The 
        Commission may not consider making a change in the 
        recommendations of the Secretary that would add a 
        military installation to the Secretary's list of 
        installations recommended for closure or realignment 
        unless, in addition to the requirements of section 
        2903(d)(2)(C)--
                    (A) * * *

           *       *       *       *       *       *       *

            [(5) Site visit.--In the report required under 
        section 2903(d)(2)(A) that is to be transmitted under 
        paragraph (1), the Commission may not recommend the 
        closure of a military installation not recommended for 
        closure by the Secretary under subsection (a) unless at 
        least two members of the Commission visit the 
        installation before the date of the transmittal of the 
        report.]
            (5) Requirements to expand closure or realignment 
        recommendations.--In the report required under section 
        2903(d)(2)(A) that is to be transmitted under paragraph 
        (1), the Commission may not make a change in the 
        recommendations of the Secretary that would close a 
        military installation not recommended for closure by 
        the Secretary, would realign a military installation 
        not recommended for closure or realignment by the 
        Secretary, or would expand the extent of the 
        realignment of a military installation recommended for 
        realignment by the Secretary unless--
                    (A) at least two members of the Commission 
                visit the military installation before the date 
                of the transmittal of the report; and
                    (B) the decision of the Commission to make 
                the change to recommend the closure of the 
                military installation, the realignment of the 
                installation, or the expanded realignment of 
                the installation is unanimous.
            (6) Comptroller general report.--The Comptroller 
        General report required by section 2903(d)(5)(B) 
        analyzing the recommendations of the Secretary and the 
        selection process [in 2005] under this section shall be 
        transmitted to the congressional defense committees not 
        later than July 1, [2005] 2007.
    (e) Review by the President.--
            (1) In general.--Except as provided in this 
        subsection, section 2903(e) shall apply to the review 
        by the President of the recommendations of the 
        Commission under this section, and the actions, if any, 
        of the Commission in response to such review, [in 2005] 
        under this section. The President shall review the 
        recommendations of the Secretary and the 
        recommendations contained in the report of the 
        Commission under subsection (d) and prepare a report, 
        not later than September 23, [2005] 2007, containing 
        the President's approval or disapproval of the 
        Commission's recommendations.
            (2) Commission reconsideration.--If the Commission 
        prepares a revised list of recommendations under 
        section 2903(e)(3) in 2005 in response to the review of 
        the President in that year under paragraph (1), the 
        Commission shall transmit the revised list to the 
        President not later than October 20, [2005] 2007.
            (3) Effect of failure to transmit.--If the 
        President does not transmit to Congress an approval and 
        certification described in paragraph (2) or (4) of 
        section 2903(e) by November 7, [2005] 2007, the process 
        by which military installations may be selected for 
        closure or realignment under this part in [2005] 2007 
        shall be terminated.

           *       *       *       *       *       *       *

SEC. 2915. ADHERENCE TO CERTAIN AUTHORITIES ON PRESERVATION OF MILITARY 
                    DEPOT CAPABILITIES DURING ANY SUBSEQUENT ROUND OF 
                    BASE CLOSURES AND REALIGNMENTS.

    (a) Adherence Required.--(1) Any base closure and 
realignment actions under section 2914 or subsequent round of 
base closure and realignment, and any actions to carry out the 
closure or realignment of military installations as a result of 
such actions, shall reflect a strict adherence to the 
provisions of title 10, United States Code, for the maintenance 
of government-owned, government-operated depot-level 
maintenance, repair, and logistics capabilities within the 
Department of Defense, including the provisions of chapter 146 
of such title and other applicable provisions.
    (2) No action to carry out the closure or realignment of 
military installations in any base closures and realignments 
under this part after the date of the enactment of this section 
may include a waiver authorized by paragraph (2) or (3) of 
section 2464(b) or section 2466(b) of title 10, United States 
Code.
    (b) Base Closure and Realignment Actions Defined.--In this 
section, the term ``base closure and realignment actions'' 
means the following:
            (1) The preparation by the Secretary of Defense of 
        recommendations on installations for closure or 
        realignment under this part or any subsequent base 
        closure law.
            (2) The review by the Commission of the 
        recommendations referred to in paragraph (1).
            (3) The review by the President of the 
        recommendations referred to in paragraphs (1) and (2).

           *       *       *       *       *       *       *

                              ----------                              

                     NATIONAL SECURITY ACT OF 1947

           *       *       *       *       *       *       *
TITLE VII--PROTECTION OF OPERATIONAL FILES

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    OPERATIONAL FILES OF THE NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY

    Sec. 702. (a) Exemption of Certain Operational Files From 
Search, Review, Publication, or Disclosure.--(1) * * *

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    (6)(A) * * *
    (B) Judicial review shall not be available in the manner 
provided for under subparagraph (A) as follows:
            (i) * * *

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            (iv)(I) When a complainant alleges that requested 
        records were improperly withheld because of improper 
        exemption of operational files, NGA shall meet its 
        burden under section 552(a)(4)(B) of title 5, United 
        States Code, by demonstrating to the court by sworn 
        written submission that exempted operational files 
        likely to contain [responsible records] responsive 
        records currently perform the functions set forth in 
        paragraph (2).

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        OPERATIONAL FILES OF THE NATIONAL RECONNAISSANCE OFFICE

    Sec. 703. (a) Exemption of Certain Operational Files From 
Search, Review, Publication, or Disclosure.--(1) * * *

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    (6)(A) * * *
    (B) Judicial review shall not be available in the manner 
provided for under subparagraph (A) as follows:
            (i) * * *

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            (iv)(I) When a complainant alleges that requested 
        records were improperly withheld because of improper 
        exemption of operational files, NRO shall meet its 
        burden under section 552(a)(4)(B) of title 5, United 
        States Code, by demonstrating to the court by sworn 
        written submission that exempted operational files 
        likely to contain [responsible records] responsive 
        records currently perform the functions set forth in 
        paragraph (2).

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           OPERATIONAL FILES OF THE NATIONAL SECURITY AGENCY

    Sec. 704. (a) * * *

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    (f) Allegation; Improper Withholding of Records; Judicial 
Review.--(1) * * *
    (2) Judicial review shall not be available in the manner 
provided for under paragraph (1) as follows:
            (A) * * *

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            (D)(i) When a complainant alleges that requested 
        records were improperly withheld because of improper 
        exemption of operational files, the National Security 
        Agency shall meet its burden under section 552(a)(4)(B) 
        of title 5, United States Code, by demonstrating to the 
        court by sworn written submission that exempted 
        operational files likely to contain [responsible 
        records] responsive records currently perform the 
        functions set forth in subsection (b).

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                        ARMS EXPORT CONTROL ACT

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Chapter 2.--FOREIGN MILITARY SALES AUTHORIZATIONS

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    Sec. 27. Authority of President to Enter into Cooperative 
Projects with Friendly Foreign Countries.--(a) * * *

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    [(g) In the case of a cooperative project with a North 
Atlantic Treaty Organization country, section 36(b) of this Act 
shall not apply to sales made under section 21 or 22 of this 
Act and to production and exports made pursuant to cooperative 
projects under this section, and section 36(c) of this Act 
shall not apply to the issuance of licenses or other approvals 
under section 38 of this Act, if such sales are made, such 
production and exports ensue, or such licenses or approvals are 
issued, as part of a cooperative project.]
    (g) Unless the President states in his certification that 
an emergency exists which requires the immediate approval of 
the cooperative agreement in the national security interests of 
the United States (in which case the President shall set forth 
in the certification a justification for this determination), 
an agreement shall not be signed if, within the 30-day period 
specified in subsection (f), a joint resolution prohibiting the 
agreement is enacted into law.

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    (k) A license shall be required for the export of defense 
articles or defense services relating to a cooperative project 
by any person required to be registered under section 
38(b)(1)(A)(i) whenever such export is made pursuant to, or in 
furtherance of, a private contract, purchase order, or similar 
commercial arrangement with a foreign corporation.

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Chapter 3.--MILITARY EXPORT CONTROLS

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    Sec. 38. Control of Arms Exports and Imports.--(a) * * *
    (b)(1) * * *
    [(2) Except] (2)(A) Except as otherwise specifically 
provided in regulations issued under subsection (a)(1), no 
defense articles or defense services designated by the 
President under subsection (a)(1) may be exported or imported 
without a license for such export or import, issued in 
accordance with this Act and regulations issued under this Act, 
except that no license shall be required for exports or imports 
made by or for an agency of the United States Government [(A) 
for official] (i) for official use by a department or agency of 
the United States Government, or [(B) for carrying out] (ii) 
for carrying out any foreign assistance or sales program 
authorized by law and subject to the control of the President 
by other means.
    (B) The President may not establish an exemption in 
regulation or otherwise from the license requirements of this 
section for the export of a defense article that is significant 
military equipment (other than a firearm that is intended for 
personal use).

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Chapter 4.--GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS

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    Sec. 47. Definitions.--For purposes of this Act, the term--
    (1) * * *

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    (10) ``weapons of mass destruction'' has the meaning 
provided by section 1403(1) of the Defense Against Weapons of 
Mass Destruction Act of 1996 (title XIV of Public Law 104-201; 
110 Stat. 2717; 50 U.S.C. 2302(1)); [and]
    (11) ``Sales territory'' means a country or group of 
countries to which a defense article or defense service is 
authorized to be reexported[.];
    (12) ``license'' means a document bearing the word license 
issued by the United States Government agency charged with 
implementing section 38 of this Act, which permits the export 
or import of a defense article or defense service;
    (13) ``agent'' means a representative or emissary of a 
government other than an officer or employee of the government; 
and
    (14) ``exporting agent'' means a freight forwarder or other 
consignee designated on a license application who is authorized 
to act on behalf of and the control of the license applicant.

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SECTION 1424 OF THE DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION ACT OF 
                                  1996

SEC. 1424. INTERNATIONAL BORDER SECURITY.

    (a) * * *
    [(b) Funding.--Of the total amount authorized to be 
appropriated by section 301, $15,000,000 is available for 
carrying out the programs referred to in subsection (a).]
    (b) Other Countries.--The Secretary of Defense may carry 
out programs under subsection (a) in a country other than a 
country specified in that subsection if the Secretary 
determines that there exists in that country a significant 
threat of the unauthorized transfer and transportation of 
nuclear, biological, or chemical weapons or related materials.

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             SECTION 4601 OF THE ATOMIC ENERGY DEFENSE ACT

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

    (a) * * *

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    (c) Termination.--(1) The authority provided under 
subsection (a)(1) shall terminate on September 30, [2004] 2006.

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SECTION 2710 OF THE EMERGENCY WARTIME SUPPLEMENTAL APPROPRIATIONS ACT, 
                                  2003

    Sec. 2710. None of the funds in this Act or any other Act 
may be obligated or expended to pay for transportation 
described in section 41106 of title 49, United States Code, to 
be performed by any air carrier that is not effectively 
controlled by citizens of the United States: Provided, That for 
purposes of implementing section 41106, an air carrier shall 
not be considered to be effectively controlled by citizens of 
the United States if the air carrier receives 50 percent or 
more of its operating revenue over the most recent 3-year 
period from a person not a citizen of the United States and 
such person, directly or indirectly, either owns a voting 
interest in the air carrier or is owned by an agency or 
instrumentality of a foreign state: Provided further, That this 
prohibition applies to transportation performed under any 
contract awarded or re-awarded after the date of enactment of 
this Act: Provided further, That when the Secretary of Defense 
decides that no air carrier holding a certificate under section 
41102 is capable of providing, and willing to provide, such 
transportation, the Secretary of Defense may make a contract to 
provide the transportation with an air carrier not having a 
certificate: Provided further, That the Secretary of 
Transportation is directed to use an Administrative Law Judge 
in a formal proceeding to resolve docket number OST-2002-13089. 
Any determination for purposes of this section of whether (in 
accordance with the first proviso of this section) an air 
carrier is effectively controlled by citizens of the United 
States shall be made by, or shall be based on determinations 
made by, the Secretary of Transportation.

                                  
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