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Armed Services, and Foreign Relations of the Senate and
the Committees on Appropriations, Armed Services, and
International Relations in the House of Representatives on
the implementation of this program: Provided further, That
amounts charged for administrative fees and deposited to
the special account provided for under section 2540c(d) of
title 10, shall be available for paying the costs of adminis-
trative expenses of the Department of Defense that are at-
tributable to the loan guarantee program under subchapter
VI of chapter 148 of title 10, United States Code.
SEC. 8068. None of the funds available to the Depart-
ment of Defense under this Act shall be obligated or ex-
pended to pay a contractor under a contract with the De-
partment of Defense for costs of any amount paid by the
contractor to an employee when—
(1) such costs are for a bonus or otherwise in ex-
cess of the normal salary paid by the contractor to the
employee; and
(2) such bonus is part of restructuring costs asso-
ciated with a business combination.
SEC. 8069. (a) None of the funds appropriated or oth-
erwise made available in this Act may be used to transport
or provide for the transportation of chemical munitions or
agents to the Johnston Atoll for the purpose of storing or
demilitarizing such munitions or agents.
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(b) The prohibition in subsection (a) shall not apply
to any obsolete World War II chemical munition or agent
of the United States found in the World War II Pacific
Theater of Operations.
(c) The President may suspend the application of sub-
section (a) during a period of war in which the United
States is a party.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8070. During the current fiscal year, no more
than $30,000,000 of appropriations made in this Act under
the heading ‘‘Operation and Maintenance, Defense-Wide’’
may be transferred to appropriations available for the pay
of military personnel, to be merged with, and to be available
for the same time period as the appropriations to which
transferred, to be used in support of such personnel in con-
nection with support and services for eligible organizations
and activities outside the Department of Defense pursuant
to section 2012 of title 10, United States Code.
SEC. 8071. During the current fiscal year, in the case
of an appropriation account of the Department of Defense
for which the period of availability for obligation has ex-
pired or which has closed under the provisions of section
1552 of title 31, United States Code, and which has a nega-
tive unliquidated or unexpended balance, an obligation or
an adjustment of an obligation may be charged to any cur-
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rent appropriation account for the same purpose as the ex-
pired or closed account if—
(1) the obligation would have been properly
chargeable (except as to amount) to the expired or
closed account before the end of the period of avail-
ability or closing of that account;
(2) the obligation is not otherwise properly
chargeable to any current appropriation account of
the Department of Defense; and
(3) in the case of an expired account, the obliga-
tion is not chargeable to a current appropriation of
the Department of Defense under the provisions of sec-
tion 1405(b)(8) of the National Defense Authorization
Act for Fiscal Year 1991, Public Law 101–510, as
amended (31 U.S.C. 1551 note): Provided, That in
the case of an expired account, if subsequent review
or investigation discloses that there was not in fact a
negative unliquidated or unexpended balance in the
account, any charge to a current account under the
authority of this section shall be reversed and re-
corded against the expired account: Provided further,
That the total amount charged to a current appro-
priation under this section may not exceed an
amount equal to 1 percent of the total appropriation
for that account.
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SEC. 8072. Funds appropriated in title II of this Act
and for the Defense Health Program in title VI of this Act
for supervision and administration costs for facilities
maintenance and repair, minor construction, or design
projects may be obligated at the time the reimbursable order
is accepted by the performing activity: Provided, That for
the purpose of this section, supervision and administration
costs includes all in-house Government cost.
SEC. 8073. During the current fiscal year and here-
after, the Secretary of Defense may waive reimbursement
of the cost of conferences, seminars, courses of instruction,
or similar educational activities of the Asia-Pacific Center
for Security Studies for military officers and civilian offi-
cials of foreign nations if the Secretary determines that at-
tendance by such personnel, without reimbursement, is in
the national security interest of the United States: Pro-
vided, That costs for which reimbursement is waived pursu-
ant to this section shall be paid from appropriations avail-
able for the Asia-Pacific Center.
SEC. 8074. (a) Notwithstanding any other provision
of law, the Chief of the National Guard Bureau may permit
the use of equipment of the National Guard Distance Learn-
ing Project by any person or entity on a space-available,
reimbursable basis. The Chief of the National Guard Bu-
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reau shall establish the amount of reimbursement for such
use on a case-by-case basis.
(b) Amounts collected under subsection (a) shall be
credited to funds available for the National Guard Distance
Learning Project and be available to defray the costs associ-
ated with the use of equipment of the project under that
subsection. Such funds shall be available for such purposes
without fiscal year limitation.
SEC. 8075. Using funds available by this Act or any
other Act, the Secretary of the Air Force, pursuant to a
determination under section 2690 of title 10, United States
Code, may implement cost-effective agreements for required
heating facility modernization in the Kaiserslautern Mili-
tary Community in the Federal Republic of Germany: Pro-
vided, That in the City of Kaiserslautern such agreements
will include the use of United States anthracite as the base
load energy for municipal district heat to the United States
Defense installations: Provided further, That at Landstuhl
Army Regional Medical Center and Ramstein Air Base,
furnished heat may be obtained from private, regional or
municipal services, if provisions are included for the con-
sideration of United States coal as an energy source.
SEC. 8076. None of the funds appropriated in title IV
of this Act may be used to procure end-items for delivery
to military forces for operational training, operational use
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or inventory requirements: Provided, That this restriction
does not apply to end-items used in development, proto-
typing, and test activities preceding and leading to accept-
ance for operational use: Provided further, That this restric-
tion does not apply to programs funded within the National
Foreign Intelligence Program: Provided further, That the
Secretary of Defense may waive this restriction on a case-
by-case basis by certifying in writing to the Committees on
Appropriations of the House of Representatives and the
Senate that it is in the national security interest to do so.
SEC. 8077. None of the funds made available in this
Act may be used to approve or license the sale of the F–
22 advanced tactical fighter to any foreign government.
SEC. 8078. (a) The Secretary of Defense may, on a
case-by-case basis, waive with respect to a foreign country
each limitation on the procurement of defense items from
foreign sources provided in law if the Secretary determines
that the application of the limitation with respect to that
country would invalidate cooperative programs entered into
between the Department of Defense and the foreign country,
or would invalidate reciprocal trade agreements for the pro-
curement of defense items entered into under section 2531
of title 10, United States Code, and the country does not
discriminate against the same or similar defense items pro-
duced in the United States for that country.
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(b) Subsection (a) applies with respect to—
(1) contracts and subcontracts entered into on or
after the date of the enactment of this Act; and
(2) options for the procurement of items that are
exercised after such date under contracts that are en-
tered into before such date if the option prices are ad-
justed for any reason other than the application of a
waiver granted under subsection (a).
(c) Subsection (a) does not apply to a limitation re-
garding construction of public vessels, ball and roller bear-
ings, food, and clothing or textile materials as defined by
section 11 (chapters 50–65) of the Harmonized Tariff
Schedule and products classified under headings 4010,
4202, 4203, 6401 through 6406, 6505, 7019, 7218 through
7229, 7304.41 through 7304.49, 7306.40, 7502 through
7508, 8105, 8108, 8109, 8211, 8215, and 9404.
SEC. 8079. Funds made available to the Civil Air Pa-
trol in this Act under the heading ‘‘Drug Interdiction and
Counter-Drug Activities, Defense’’ may be used for the Civil
Air Patrol Corporation’s counterdrug program, including
its demand reduction program involving youth programs,
as well as operational and training drug reconnaissance
missions for Federal, State, and local government agencies;
and for equipment needed for mission support or perform-
ance: Provided, That the Department of the Air Force
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should waive reimbursement from the Federal, State, and
local government agencies for the use of these funds.
SEC. 8080. (a) PROHIBITION.—None of the funds made
available by this Act may be used to support any training
program involving a unit of the security forces of a foreign
country if the Secretary of Defense has received credible in-
formation from the Department of State that the unit has
committed a gross violation of human rights, unless all nec-
essary corrective steps have been taken.
(b) MONITORING.—The Secretary of Defense, in con-
sultation with the Secretary of State, shall ensure that prior
to a decision to conduct any training program referred to
in subsection (a), full consideration is given to all credible
information available to the Department of State relating
to human rights violations by foreign security forces.
(c) WAIVER.—The Secretary of Defense, after consulta-
tion with the Secretary of State, may waive the prohibition
in subsection (a) if he determines that such waiver is re-
quired by extraordinary circumstances.
(d) REPORT.—Not more than 15 days after the exercise
of any waiver under subsection (c), the Secretary of Defense
shall submit a report to the congressional defense commit-
tees describing the extraordinary circumstances, the purpose
and duration of the training program, the United States
forces and the foreign security forces involved in the train-
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ing program, and the information relating to human rights
violations that necessitates the waiver.
SEC. 8081. The Secretary of Defense, in coordination
with the Secretary of Health and Human Services, may
carry out a program to distribute surplus dental equipment
of the Department of Defense, at no cost to the Department
of Defense, to Indian Health Service facilities and to feder-
ally-qualified health centers (within the meaning of section
1905(l)(2)(B) of the Social Security Act (42 U.S.C.
1396d(l)(2)(B))).
SEC. 8082. The total amount appropriated in this Act
is hereby reduced by $338,000,000 to reflect savings from
favorable foreign currency fluctuations, to be derived as fol-
lows:
‘‘Military Personnel, Army’’, $80,000,000;
‘‘Military Personnel, Navy’’, $6,500,000;
‘‘Military 
Personnel, 
Marine 
Corps’’,
$11,000,000;
‘‘Military Personnel, Air Force’’, $29,000,000;
‘‘Operation 
and 
Maintenance, 
Army’’,
$102,000,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$21,500,000;
‘‘Operation and Maintenance, Marine Corps’’,
$2,000,000;
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‘‘Operation 
and 
Maintenance, 
Air 
Force’’,
$46,000,000; and
‘‘Operation and Maintenance, Defense-Wide’’,
$40,000,000.
SEC. 8083. None of the funds appropriated or made
available in this Act to the Department of the Navy shall
be used to develop, lease or procure the T–AKE class of ships
unless the main propulsion diesel engines and propulsors
are manufactured in the United States by a domestically
operated entity: Provided, That the Secretary of Defense
may waive this restriction on a case-by-case basis by certi-
fying in writing to the Committees on Appropriations of
the House of Representatives and the Senate that adequate
domestic supplies are not available to meet Department of
Defense requirements on a timely basis and that such an
acquisition must be made in order to acquire capability for
national security purposes or there exists a significant cost
or quality difference.
SEC. 8084. None of the funds appropriated or other-
wise made available by this or other Department of Defense
Appropriations Acts may be obligated or expended for the
purpose of performing repairs or maintenance to military
family housing units of the Department of Defense, includ-
ing areas in such military family housing units that may
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be used for the purpose of conducting official Department
of Defense business.
SEC. 8085. Notwithstanding any other provision of
law, funds appropriated in this Act under the heading ‘‘Re-
search, Development, Test and Evaluation, Defense-Wide’’
for any advanced concept technology demonstration project
may only be obligated 30 days after a report, including a
description of the project and its estimated annual and total
cost, has been provided in writing to the congressional de-
fense committees: Provided, That the Secretary of Defense
may waive this restriction on a case-by-case basis by certi-
fying to the congressional defense committees that it is in
the national interest to do so.
SEC. 8086. Notwithstanding any other provision of
law, for the purpose of establishing all Department of De-
fense policies governing the provision of care provided by
and financed under the military health care system’s case
management program under 10 U.S.C. 1079(a)(17), the
term ‘‘custodial care’’ shall be defined as care designed es-
sentially to assist an individual in meeting the activities
of daily living and which does not require the supervision
of trained medical, nursing, paramedical or other specially
trained individuals: Provided, That the case management
program shall provide that members and retired members
of the military services, and their dependents and survivors,
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have access to all medically necessary health care through
the health care delivery system of the military services re-
gardless of the health care status of the person seeking the
health care: Provided further, That the case management
program shall be the primary obligor for payment of medi-
cally necessary services and shall not be considered as sec-
ondarily liable to title XIX of the Social Security Act, other
welfare programs or charity based care.
SEC. 8087. During the current fiscal year, refunds at-
tributable to the use of the Government travel card, refunds
attributable to the use of the Government Purchase Card
and refunds attributable to official Government travel ar-
ranged by Government Contracted Travel Management
Centers may be credited to operation and maintenance ac-
counts of the Department of Defense which are current when
the refunds are received.
SEC. 8088. (a) REGISTERING FINANCIAL MANAGE-
MENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD
CHIEF INFORMATION OFFICER.—None of the funds appro-
priated in this Act may be used for a mission critical or
mission essential financial management information tech-
nology system (including a system funded by the defense
working capital fund) that is not registered with the Chief
Information Officer of the Department of Defense. A system
shall be considered to be registered with that officer upon
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the furnishing to that officer of notice of the system, together
with such information concerning the system as the Sec-
retary of Defense may prescribe. A financial management
information technology system shall be considered a mission
critical or mission essential information technology system
as defined by the Under Secretary of Defense (Comptroller).
(b) CERTIFICATIONS AS TO COMPLIANCE WITH FINAN-
CIAL MANAGEMENT MODERNIZATION PLAN.—
(1) During the current fiscal year, a financial
management major automated information system
may not receive Milestone A approval, Milestone B
approval, or full rate production, or their equivalent,
within the Department of Defense until the Under
Secretary of Defense (Comptroller) certifies, with re-
spect to that milestone, that the system is being devel-
oped and managed in accordance with the Depart-
ment’s Financial Management Modernization Plan.
The Under Secretary of Defense (Comptroller) may
require additional certifications, as appropriate, with
respect to any such system.
(2) The Chief Information Officer shall provide
the congressional defense committees timely notifica-
tion of certifications under paragraph (1).
(c) CERTIFICATIONS
AS
TO
COMPLIANCE
WITH
CLINGER-COHEN ACT.—(1) During the current fiscal year,
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a major automated information system may not receive
Milestone A approval, Milestone B approval, or full rate
production approval, or their equivalent, within the De-
partment of Defense until the Chief Information Officer cer-
tifies, with respect to that milestone, that the system is being
developed in accordance with the Clinger-Cohen Act of 1996
(40 U.S.C. 1401 et seq.). The Chief Information Officer may
require additional certifications, as appropriate, with re-
spect to any such system.
(2) The Chief Information Officer shall provide the
congressional defense committees timely notification of cer-
tifications under paragraph (1). Each such notification
shall include, at a minimum, the funding baseline and
milestone schedule for each system covered by such a certifi-
cation and confirmation that the following steps have been
taken with respect to the system:
(A) Business process reengineering.
(B) An analysis of alternatives.
(C) An economic analysis that includes a calculation
of the return on investment.
(D) Performance measures.
(E) An information assurance strategy consistent with
the Department’s Global Information Grid.
(d) DEFINITIONS.—For purposes of this section:
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(1) The term ‘‘Chief Information Officer’’ means
the senior official of the Department of Defense des-
ignated by the Secretary of Defense pursuant to sec-
tion 3506 of title 44, United States Code.
(2) The term ‘‘information technology system’’
has the meaning given the term ‘‘information tech-
nology’’ in section 5002 of the Clinger-Cohen Act of
1996 (40 U.S.C. 1401).
(3) The term ‘‘major automated information sys-
tem’’ has the meaning given that term in Department
of Defense Directive 5000.1.
SEC. 8089. During the current fiscal year, none of the
funds available to the Department of Defense may be used
to provide support to another department or agency of the
United States if such department or agency is more than
90 days in arrears in making payment to the Department
of Defense for goods or services previously provided to such
department or agency on a reimbursable basis: Provided,
That this restriction shall not apply if the department is
authorized by law to provide support to such department
or agency on a nonreimbursable basis, and is providing the
requested support pursuant to such authority: Provided fur-
ther, That the Secretary of Defense may waive this restric-
tion on a case-by-case basis by certifying in writing to the
Committees on Appropriations of the House of Representa-
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tives and the Senate that it is in the national security inter-
est to do so.
SEC. 8090. None of the funds provided in this Act may
be used to transfer to any nongovernmental entity ammuni-
tion held by the Department of Defense that has a center-
fire cartridge and a United States military nomenclature
designation of ‘‘armor penetrator’’, ‘‘armor piercing (AP)’’,
‘‘armor piercing incendiary (API)’’, or ‘‘armor-piercing in-
cendiary-tracer (API–T)’’, except to an entity performing
demilitarization services for the Department of Defense
under a contract that requires the entity to demonstrate to
the satisfaction of the Department of Defense that armor
piercing projectiles are either: (1) rendered incapable of
reuse by the demilitarization process; or (2) used to manu-
facture ammunition pursuant to a contract with the De-
partment of Defense or the manufacture of ammunition for
export pursuant to a License for Permanent Export of Un-
classified Military Articles issued by the Department of
State.
SEC. 8091. Notwithstanding any other provision of
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under 10 U.S.C.
2667, in the case of a lease of personal property for a period
not in excess of 1 year to any organization specified in 32
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U.S.C. 508(d), or any other youth, social, or fraternal non-
profit organization as may be approved by the Chief of the
National Guard Bureau, or his designee, on a case-by-case
basis.
SEC. 8092. None of the funds appropriated by this Act
shall be used for the support of any nonappropriated funds
activity of the Department of Defense that procures malt
beverages and wine with nonappropriated funds for resale
(including such alcoholic beverages sold by the drink) on
a military installation located in the United States unless
such malt beverages and wine are procured within that
State, or in the case of the District of Columbia, within
the District of Columbia, in which the military installation
is located: Provided, That in a case in which the military
installation is located in more than one State, purchases
may be made in any State in which the installation is lo-
cated: Provided further, That such local procurement re-
quirements for malt beverages and wine shall apply to all
alcoholic beverages only for military installations in States
which are not contiguous with another State: Provided fur-
ther, That alcoholic beverages other than wine and malt bev-
erages, in contiguous States and the District of Columbia
shall be procured from the most competitive source, price
and other factors considered.
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SEC. 8093. During the current fiscal year and here-
after, under regulations prescribed by the Secretary of De-
fense, the Center of Excellence for Disaster Management and
Humanitarian Assistance may also pay, or authorize pay-
ment for, the expenses of providing or facilitating education
and training for appropriate military and civilian per-
sonnel of foreign countries in disaster management, peace
operations, and humanitarian assistance.
SEC. 8094. (a) The Department of Defense is author-
ized to enter into agreements with the Department of Vet-
erans Affairs and federally-funded health agencies pro-
viding services to Native Hawaiians for the purpose of es-
tablishing a partnership similar to the Alaska Federal
Health Care Partnership, in order to maximize Federal re-
sources in the provision of health care services by federally-
funded health agencies, applying telemedicine technologies.
For the purpose of this partnership, Native Hawaiians
shall have the same status as other Native Americans who
are eligible for the health care services provided by the In-
dian Health Service.
(b) The Department of Defense is authorized to develop
a consultation policy, consistent with Executive Order No.
13084 (issued May 14, 1998), with Native Hawaiians for
the purpose of assuring maximum Native Hawaiian par-
ticipation in the direction and administration of govern-
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mental services so as to render those services more respon-
sive to the needs of the Native Hawaiian community.
(c) For purposes of this section, the term ‘‘Native Ha-
waiian’’ means any individual who is a descendant of the
aboriginal people who, prior to 1778, occupied and exer-
cised sovereignty in the area that now comprises the State
of Hawaii.
SEC. 8095. Of the amounts appropriated in this Act
under the heading ‘‘Research, Development, Test and Eval-
uation, Defense-Wide’’, $146,000,000 shall be made avail-
able for the Arrow missile defense program: Provided, That
of this amount, $66,000,000 shall be available for the pur-
pose of continuing the Arrow System Improvement Pro-
gram (ASIP), $10,000,000 shall be available for continuing
the 
Enhanced 
Arrow 
Deployability 
Program, 
and
$70,000,000 shall be available for the purpose of producing
Arrow missile components in the United States and Arrow
missile components and missiles in Israel to meet Israel’s
defense requirements, consistent with each nation’s laws,
regulations and procedures: Provided further, That funds
made available under this provision for production of mis-
siles and missile components may be transferred to appro-
priations available for the procurement of weapons and
equipment, to be merged with and to be available for the
same time period and the same purposes as the appropria-
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tion to which transferred: Provided further, That the trans-
fer authority provided under this provision is in addition
to any other transfer authority contained in this Act.
SEC. 8096. Funds available to the Department of De-
fense for the Global Positioning System during the current
fiscal year may be used to fund civil requirements associ-
ated with the satellite and ground control segments of such
system’s modernization program.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8097. Of the amounts appropriated in this Act
under the heading, ‘‘Operation and Maintenance, Defense-
Wide’’, $68,000,000 shall remain available until expended:
Provided, That notwithstanding any other provision of law,
the Secretary of Defense is authorized to transfer such funds
to other activities of the Federal Government.
SEC. 8098. Section 8106 of the Department of Defense
Appropriations Act, 1997 (titles I through VIII of the mat-
ter under subsection 101(b) of Public Law 104–208; 110
Stat. 3009–111; 10 U.S.C. 113 note) shall continue in effect
to apply to disbursements that are made by the Department
of Defense in fiscal year 2003.
SEC. 8099. Of the funds made available under the
heading ‘‘Operation and Maintenance, Air Force’’,
$8,000,000 shall be available to realign railroad track on
Elmendorf Air Force Base and Fort Richardson.
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SEC. 8100. Notwithstanding any other provision of
this Act, the total amount appropriated in this Act is here-
by reduced by $850,000,000, to reflect savings to be achieved
from business process reforms, management efficiencies, and
procurement of administrative and management support:
Provided, That none of the funds provided in this Act may
be used for consulting and advisory services for legislative
affairs and legislative liaison functions.
(INCLUDING TRANSFER OF FUNDS)
SEC. 8101. Of the amounts appropriated in this Act
under the heading ‘‘Shipbuilding and Conversion, Navy’’,
$1,481,955,000 shall be available until September 30, 2003,
to fund prior year shipbuilding cost increases: Provided,
That upon enactment of this Act, the Secretary of the Navy
shall transfer such funds to the following appropriations in
the amounts specified: Provided further, That the amounts
transferred shall be merged with and be available for the
same purposes as the appropriations to which transferred:
To:
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 1996/03’’:
LPD–17 Amphibious Transport Dock
Ship Program, $300,681,000;
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 1998/03’’:
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DDG–51 
Destroyer 
Program,
$76,100,000;
New SSN, $190,882,000;
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 1999/03’’:
DDG–51 
Destroyer 
Program,
$93,736,000;
LPD–17 Amphibious Transport Dock
Ship Program, $82,000,000;
New SSN, $292,000,000;
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 2000/03’’:
DDG–51 
Destroyer 
Program,
$72,924,000;
LPD–17 Amphibious Transport Dock
Ship Program, $187,000,000;
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 2001/03’’:
DDG–51 
Destroyer 
Program,
$81,700,000;
New SSN, $6,932,000; and
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 2002/03’’:
DDG–51 
Destroyer 
Program,
$98,000,000.
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SEC. 8102. The Secretary of the Navy may settle, or
compromise, and pay any and all admiralty claims under
10 U.S.C. 7622 arising out of the collision involving the
U.S.S. GREENEVILLE and the EHIME MARU, in any
amount and without regard to the monetary limitations in
subsections (a) and (b) of that section: Provided, That such
payments shall be made from funds available to the Depart-
ment of the Navy for operation and maintenance.
(TRANSFER OF FUNDS)
SEC. 8103. Upon enactment of this Act, the Secretary
of the Navy shall make the following transfers of funds: Pro-
vided, That the amounts transferred shall be available for
the same purpose as the appropriations to which trans-
ferred, and for the same time period as the appropriation
from which transferred: Provided further, That the amounts
shall be transferred between the following appropriations in
the amount specified:
From:
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 1994/2003’’:
DDG–51 
Destroyer 
program,
$7,900,000;
LHD–1 Amphibious Assault Ship pro-
gram, $6,500,000;
Oceanographic 
Ship 
program,
$3,416,000;
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Craft, outfitting, post delivery, first
destination transportation, $1,800,000;
Mine warfare command and control
ship, $604,000;
To:
Under the heading, ‘‘Shipbuilding and Con-
version, Navy, 1999/2003’’:
LPD–17 Amphibious Transport Dock
Ship program, $20,220,000.
SEC. 8104. Notwithstanding section 229(a) of the So-
cial Security Act, no wages shall be deemed to have been
paid to any individual pursuant to that section in any cal-
endar year after 2001.
SEC. 8105. Up to $3,000,000 of the funds appropriated
under the heading ‘‘Operation and Maintenance, Navy’’ in
this Act for the Pacific Missile Range Facility may be made
available to contract for the repair, maintenance, and oper-
ation of adjacent off-base water, drainage, and flood control
systems critical to base operations.
SEC. 8106. Notwithstanding any other provision of
law or regulation, the Secretary of Defense may exercise the
provisions of 38 U.S.C. 7403(g) for occupations listed in
38 U.S.C. 7403(a)(2) as well as the following:
Pharmacists, Audiologists, and Dental Hygien-
ists.
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(A) 
The 
requirements 
of 
U.S.C.
7403(g)(1)(A) shall apply.
(B) 
The 
limitations 
of 
U.S.C.
7403(g)(1)(B) shall not apply.
SEC. 8107. Of the total amount appropriated by this
Act under the heading ‘‘Operation and Maintenance, De-
fense-Wide’’, $5,000,000 may be available for payments
under section 363 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law
by Public Law 106–398; 114 Stat. 1654A–77).
SEC. 8108. In addition to funds made available else-
where in this Act $5,000,000 is hereby appropriated and
shall remain available until expended to provide assistance,
by grant or otherwise (such as, but not limited to, the provi-
sion of funds for repairs, maintenance, and/or for the pur-
chase of information technology, text books, teaching re-
sources), to public schools that have unusually high con-
centrations of special needs military dependents enrolled:
Provided, That in selecting school systems to receive such
assistance, special consideration shall be given to school sys-
tems in States that are considered overseas assignments,
and all schools within these school systems shall be eligible
for assistance: Provided further, That up to $2,000,000 shall
be available for the Department of Defense to establish a
non-profit trust fund to assist in the public-private funding
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of public school repair and maintenance projects, or provide
directly to non-profit organizations who in return will use
these monies to provide assistance in the form of repair,
maintenance, or renovation to public school systems that
have high concentrations of special needs military depend-
ents and are located in States that are considered overseas
assignments, and of which 2 percent shall be available to
support the administration and execution of the funds: Pro-
vided further, That to the extent a federal agency provides
this assistance, by contract, grant, or otherwise, it may ac-
cept and expend non-federal funds in combination with
these federal funds to provide assistance for the authorized
purpose, if the non-federal entity requests such assistance
and the non-federal funds are provided on a reimbursable
basis.
SEC. 8109. Notwithstanding any other provision in
this Act, the total amount appropriated in this Act is here-
by reduced by $400,000,000, to reduce cost growth in infor-
mation technology development, to be distributed as follows:
‘‘Operation and Maintenance, Defense-Wide’’,
$19,500,000;
‘‘Other Procurement, Army’’, $53,200,000;
‘‘Other Procurement, Navy’’, $20,600,000;
‘‘Procurement, Marine Corps’’, $3,400,000;
‘‘Other Procurement, Air Force’’, $12,000,000;
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‘‘Procurement, Defense-Wide’’, $3,500,000;
‘‘Research, Development, Test and Evaluation,
Army’’, $17,700,000;
‘‘Research, Development, Test and Evaluation,
Navy’’, $25,600,000;
‘‘Research, Development, Test and Evaluation,
Air Force’’, $27,200,000;
‘‘Research, Development, Test and Evaluation,
Defense-Wide’’, $36,600,000;
‘‘Defense Working Capital Funds’’, $148,600,000;
and
‘‘Defense Health Program’’, $32,100,000.
SEC. 8110. In addition to the amounts appropriated
or otherwise made available in this Act, $4,000,000, to re-
main available until September 30, 2003, is hereby appro-
priated to the Department of Defense: Provided, That the
Secretary of Defense shall make a grant in the amount of
$4,000,000 to the American Red Cross for Armed Forces
Emergency Services.
SEC. 8111. None of the funds appropriated in this Act
under the heading ‘‘Overseas Contingency Operations
Transfer Fund’’ may be transferred or obligated for Depart-
ment of Defense expenses not directly related to the conduct
of overseas contingencies: Provided, That the Secretary of
Defense shall submit a report no later than 30 days after
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the end of each fiscal quarter to the Committees on Appro-
priations of the Senate and House of Representatives that
details any transfer of funds from the ‘‘Overseas Contin-
gency Operations Transfer Fund’’: Provided further, That
the report shall explain any transfer for the maintenance
of real property, pay of civilian personnel, base operations
support, and weapon, vehicle or equipment maintenance.
SEC. 8112. For purposes of section 1553(b) of title 31,
United States Code, any subdivision of appropriations
made in this Act under the heading ‘‘Shipbuilding and
Conversion, Navy’’ shall be considered to be for the same
purpose as any subdivision under the heading ‘‘Ship-
building and Conversion, Navy’’ appropriations in any
prior year, and the 1 percent limitation shall apply to the
total amount of the appropriation.
SEC. 8113. The budget of the President for fiscal year
2004 submitted to the Congress pursuant to section 1105
of title 31, United States Code, and each annual budget re-
quest thereafter, shall include separate budget justification
documents for costs of United States Armed Forces’ partici-
pation in contingency operations for the Military Personnel
accounts, the Overseas Contingency Operations Transfer
Fund, the Operation and Maintenance accounts, and the
Procurement accounts: Provided, That these budget jus-
tification documents shall include a description of the fund-
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ing requested for each anticipated contingency operation,
for each military service, to include active duty and Guard
and Reserve components, and for each appropriation ac-
count: Provided further, That these documents shall include
estimated costs for each element of expense or object class,
a reconciliation of increases and decreases for ongoing con-
tingency operations, and programmatic data including, but
not limited to troop strength for each active duty and
Guard and Reserve component, and estimates of the major
weapons systems deployed in support of each contingency:
Provided further, That these documents shall include budget
exhibits OP–5 and OP–32, as defined in the Department
of Defense Financial Management Regulation, for the Over-
seas Contingency Operations Transfer Fund for fiscal years
2002 and 2003.
SEC. 8114. Notwithstanding any other provision in
this Act, the total amount appropriated in this Act is here-
by reduced by $59,260,000, to reduce cost growth in travel,
to be distributed as follows:
‘‘Operation 
and 
Maintenance, 
Army’’,
$14,000,000;
‘‘Operation 
and 
Maintenance, 
Navy’’,
$9,000,000;
‘‘Operation and Maintenance, Marine Corps’’,
$10,000,000;
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‘‘Operation 
and 
Maintenance, 
Air 
Force’’,
$15,000,000; and
‘‘Operation and Maintenance, Defense-wide’’,
$11,260,000.
SEC. 8115. None of the funds in this Act may be used
for research, development, test, evaluation, procurement or
deployment of nuclear armed interceptors of a missile de-
fense system.
SEC. 8116. (a) In addition to the amounts appro-
priated or otherwise made available in this Act,
$814,300,000 is hereby appropriated to the Department of
Defense for whichever of the following purposes the Presi-
dent determines to be in the national security interests of
the United States:
(1) research, development, test and evaluation for
ballistic missile defense; and,
(2) activities for combating terrorism.
(b) The total amount appropriated or otherwise made
available by this Act is hereby reduced by $814,300,000 to
reflect revised economic assumptions: Provided, That the
Secretary of Defense shall allocate this reduction propor-
tionately by program, project, and activity: Provided fur-
ther, That appropriations made available in this Act for
the pay and benefits of military personnel are exempt from
reductions under this provision.
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SEC. 8117. Section 8159 of the Department of Defense
Appropriations Act, 2002 (division A of Public Law 107–
117; 115 Stat. 2284), is revised by adding the following
paragraph (g):
‘‘(g) Notwithstanding any other provision of law, any
payments made pursuant to Subsection (c)(3) above may
be made from appropriations available for operation and
maintenance or for lease or procurement of aircraft at the
time that the lease is signed.’’.
(TRANSFER OF FUNDS)
SEC. 8118. In addition to the amounts appropriated
or otherwise made available by this Act, $300,000,000 is
hereby appropriated to the Department of Defense and shall
be available only for transfer to the United States Coast
Guard.
SEC. 8119. During the current fiscal year, section
2533a(f) of Title 10, United States Code, shall not apply
to any fish, shellfish, or seafood product. This section is ap-
plicable to contracts and subcontracts for the procurement
of commercial items notwithstanding section 34 of the Office
of Federal Procurement Policy Act (41 U.S.C. 430).
SEC. 8120. None of the funds appropriated by this Act
may be used to convert the 939th Combat Search and Res-
cue Wing of the Air Force Reserve until 60 days after the
Secretary of the Air Force certifies to the Congress the fol-
lowing: (a) that a functionally comparable search and res-
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cue capability is available in the 939th Search and Rescue
Wing’s area of responsibility; (b) that any new aircraft as-
signed to the unit will comply with local environmental and
noise standards; and (c) that the Air Force has developed
a plan for the transition of personnel and manpower billets
currently assigned to this unit.
SEC. 8121. NAVY DRY-DOCK AFDL–47 (a) REQUIRE-
MENT FOR SALE.—Notwithstanding any other provision of
law, the Secretary of the Navy shall sell the Navy Dry-dock
AFDL–47, located in Charleston, South Carolina, to
Detyens Shipyards, Inc., the current lessee of the dry-dock
from the Navy.
(b) CONSIDERATION.—As consideration for the sale of
the dry-dock under subsection (a), the Secretary shall re-
ceive an amount equal to the fair market value of the dry-
dock at the time of the sale, as determined by the Secretary,
taking into account amounts paid by, or due and owing
from, the lessee.
SEC. 8122. (a) MANAGEMENT OF CHEMICAL DEMILI-
TARIZATION ACTIVITIES
AT BLUEGRASS ARMY DEPOT,
KENTUCKY.—If a technology other than the baseline incin-
eration program is selected for the destruction of lethal
chemical munitions pursuant to section 142 of the Strom
Thurmond National Defense Authorization Act for Fiscal
Year 1999 (Public Law 105–261; 50 U.S.C. 1521 note), the
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program manager for the Assembled Chemical Weapons As-
sessment shall be responsible for management of the con-
struction, operation, and closure, and any contracting re-
lating thereto, of chemical demilitarization activities at
Bluegrass Army Depot, Kentucky, including management
of the pilot-scale facility phase of the alternative technology.
(b) MANAGEMENT OF CHEMICAL DEMILITARIZATION
ACTIVITIES AT PUEBLO DEPOT, COLORADO.—The program
manager for the Assembled Chemical Weapons Assessment
shall be responsible for management of the construction, op-
eration, and closure, and any contracting relating thereto,
of chemical demilitarization activities at Pueblo Army
Depot, Colorado, including management of the pilot-scale
facility phase of the alternative technology selected for the
destruction of lethal chemical munitions.
SEC. 8123. From funds made available in this Act for
the Office of Economic Adjustment under the heading ‘‘Op-
eration and Maintenance, Defense-Wide’’, $100,000 shall be
available for the elimination of asbestos at former Battery
204, Odiorne Point, New Hampshire.
TITLE IX—COMMERCIAL REUSABLE IN-SPACE
TRANSPORTATION
SEC. 901. SHORT TITLE.
This title may be cited as the ‘‘Commercial Reusable
In-Space Transportation Act of 2002’’.
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SEC. 902. FINDINGS.
Congress makes the following findings:
(1) It is in the national interest to encourage the
production of cost-effective, in-space transportation
systems, which would be built and operated by the
private sector on a commercial basis.
(2) The use of reusable in-space transportation
systems will enhance performance levels of in-space
operations, enhance efficient and safe disposal of sat-
ellites at the end of their useful lives, and increase the
capability and reliability of existing ground-to-space
launch vehicles.
(3) Commercial reusable in-space transportation
systems will enhance the economic well-being and na-
tional security of the United States by reducing space
operations costs for commercial and national space
programs and by adding new space capabilities to
space operations.
(4) Commercial reusable in-space transportation
systems will provide new cost-effective space capabili-
ties (including orbital transfers from low altitude or-
bits to high altitude orbits and return, the correction
of erroneous satellite orbits, and the recovery, refur-
bishment, and refueling of satellites) and the provi-
sion of upper stage functions to increase ground-to-
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orbit launch vehicle payloads to geostationary and
other high energy orbits.
(5) Commercial reusable in-space transportation
systems can enhance and enable the space exploration
of the United States by providing lower cost trajec-
tory injection from earth orbit, transit trajectory con-
trol, and planet arrival deceleration to support poten-
tial National Aeronautics and Space Administration
missions to Mars, Pluto, and other planets.
(6) Satellites stranded in erroneous earth orbit
due to deficiencies in their launch represent substan-
tial economic loss to the United States and present
substantial concerns for the current backlog of na-
tional space assets.
(7) Commercial reusable in-space transportation
systems can provide new options for alternative plan-
ning approaches and risk management to enhance the
mission assurance of national space assets.
(8) Commercial reusable in-space transportation
systems developed by the private sector can provide
in-space transportation services to the National Aero-
nautics and Space Administration, the Department of
Defense, the National Reconnaissance Office, and
other agencies without the need for the United States
to bear the cost of production of such systems.
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(9) The availability of loan guarantees, with the
cost of credit risk to the United States paid by the
private-sector, is an effective means by which the
United States can help qualifying private-sector com-
panies secure otherwise unattainable private financ-
ing for the production of commercial reusable in-
space transportation systems, while at the same time
minimizing Government commitment and involve-
ment in the development of such systems.
SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COM-
MERCIAL REUSABLE IN-SPACE TRANSPOR-
TATION.
(a) AUTHORITY TO MAKE LOAN GUARANTEES.—The
Secretary may guarantee loans made to eligible United
States commercial providers for purposes of producing com-
mercial reusable in-space transportation services or sys-
tems.
(b) ELIGIBLE UNITED STATES COMMERCIAL PRO-
VIDERS.—The Secretary shall prescribe requirements for the
eligibility of United States commercial providers for loan
guarantees under this section. Such requirements shall en-
sure that eligible providers are financially capable of under-
taking a loan guaranteed under this section.
(c) LIMITATION ON LOANS GUARANTEED.—The Sec-
retary may not guarantee a loan for a United States com-
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mercial provider under this section unless the Secretary de-
termines that credit would not otherwise be reasonably
available at the time of the guarantee for the commercial
reusable in-space transportation service or system to be pro-
duced utilizing the proceeds of the loan.
(d) CREDIT SUBSIDY.—
(1) COLLECTION
REQUIRED.—The Secretary
shall collect from each United States commercial pro-
vider receiving a loan guarantee under this section an
amount equal to the amount, as determined by the
Secretary, to cover the cost, as defined in section
502(5) of the Federal Credit Reform Act of 1990, of
the loan guarantee.
(2) PERIODIC DISBURSEMENTS.—In the case of a
loan guarantee in which proceeds of the loan are dis-
bursed over time, the Secretary shall collect the
amount required under this subsection on a pro rata
basis, as determined by the Secretary, at the time of
each disbursement.
(e) OTHER TERMS AND CONDITIONS.—
(1) PROHIBITION ON SUBORDINATION.—A loan
guaranteed under this section may not be subordi-
nated to another debt contracted by the United States
commercial provider concerned, or to any other
claims against such provider.
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(2) RESTRICTION ON INCOME.—A loan guaran-
teed under this section may not—
(A) provide income which is excluded from
gross income for purposes of chapter 1 of the In-
ternal Revenue Code of 1986; or
(B) provide significant collateral or secu-
rity, as determined by the Secretary, for other
obligations the income from which is so excluded.
(3) TREATMENT OF GUARANTEE.—The guarantee
of a loan under this section shall be conclusive evi-
dence of the following:
(A) That the guarantee has been properly
obtained.
(B) That the loan qualifies for the guar-
antee.
(C) That, but for fraud or material mis-
representation by the holder of the loan, the
guarantee is valid, legal, and enforceable.
(4) OTHER TERMS AND CONDITIONS.—The Sec-
retary may establish any other terms and conditions
for a guarantee of a loan under this section, as the
Secretary considers appropriate to protect the finan-
cial interests of the United States.
(f) ENFORCEMENT OF RIGHTS.—
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(1) IN GENERAL.—The Attorney General may
take any action the Attorney General considers ap-
propriate to enforce any right accruing to the United
States under a loan guarantee under this section.
(2) FORBEARANCE.—The Attorney General may,
with the approval of the parties concerned, forebear
from enforcing any right of the United States under
a loan guaranteed under this section for the benefit
of a United States commercial provider if such for-
bearance will not result in any cost, as defined in sec-
tion 502(5) of the Federal Credit Reform Act of 1990,
to the United States.
(3) 
UTILIZATION
OF
PROPERTY.—Notwith-
standing any other provision of law and subject to the
terms of a loan guaranteed under this section, upon
the default of a United States commercial provider
under the loan, the Secretary may, at the election of
the Secretary—
(A) assume control of the physical asset fi-
nanced by the loan; and
(B) complete, recondition, reconstruct, ren-
ovate, repair, maintain, operate, or sell the phys-
ical asset.
(g) CREDIT INSTRUMENTS.—
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(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Defense.
(2) COMMERCIAL
PROVIDER.—The term ‘‘com-
mercial provider’’ means any person or entity pro-
viding commercial reusable in-orbit space transpor-
tation services or systems, primary control of which
is held by persons other than the Federal Government,
a State or local government, or a foreign government.
(3) IN-SPACE TRANSPORTATION SERVICES.—The
term ‘‘in-space transportation services’’ means oper-
ations and activities involved in the direct transpor-
tation or attempted transportation of a payload or
object from one orbit to another by means of an in-
space transportation vehicle.
(4) IN-SPACE
TRANSPORTATION
SYSTEM.—The
term ‘‘in-space transportation system’’ means the
space and ground elements, including in-space trans-
portation vehicles and support space systems, and
ground administration and control facilities and as-
sociated equipment, necessary for the provision of in-
space transportation services.
(5) IN-SPACE TRANSPORTATION VEHICLE.—The
term ‘‘in-space transportation vehicle’’ means a vehi-
cle designed—
(A) to be based and operated in space;
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(B) to transport various payloads or objects
from one orbit to another orbit; and
(C) to be reusable and refueled in space.
(6) UNITED STATES COMMERCIAL PROVIDER.—
The term ‘‘United States commercial provider’’ means
any commercial provider organized under the laws of
the United States that is more than 50 percent owned
by United States nationals.
This Act may be cited as the ‘‘Department of Defense
Appropriations Act, 2003’’.
Calendar No. 505
107TH CONGRESS
2D SESSION
H.R. 5010
[Report No. 107–213]
AN ACT
Making appropriations for the Department of De-
fense for the fiscal year ending September 30,
2003, and for other purposes.
JUNE 28, 2002
Received; read twice and referred to the Committee on
Appropriations
JULY 18, 2002
Reported with an amendment