I 
108TH CONGRESS 
1ST SESSION H. R. 1588
To authorize appropriations for fiscal year 2004 for military activities of 
the Department of Defense, to prescribe military personnel strengths 
for fiscal year 2004, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 3, 2003
Mr. HUNTER (for himself and Mr. SKELTON) (both by request) introduced the 
following bill; which was referred to the Committee on Armed Services 
A BILL 
To authorize appropriations for fiscal year 2004 for military 
activities of the Department of Defense, to prescribe 
military personnel strengths for fiscal year 2004, and 
for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 2004’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows:
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Sec. 1. Short title. 
Sec. 2. Table of contents. 
DIVISION A—DEPARTMENT OF DEFENSE 
AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—Authorization of Appropriations 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense-wide activities. 
Sec. 105. Defense Inspector General. 
Sec. 106. Defense health program. 
Sec. 107. Chemical agents and munitions destruction. 
Subtitle B—Multi-Year Contract Authorizations 
Sec. 111. Multiyear procurement authority for Navy programs. 
Sec. 112. Amendment to multiyear procurement authority for C-130J aircraft 
for the Air Force. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND EVALUATION 
Subtitle A—Authorization of Appropriations 
Sec. 201. Authorization of appropriations. 
Subtitle B—Ballistic Missile Defense 
Sec. 211. Renewal of authority to assist local communities impacted by ballistic 
missile defense system test bed. 
Subtitle C—Other Matters 
Sec. 221. Rescind the prohibition on research and development of low-yield nu-
clear weapons. 
TITLE III—OPERATION AND MAINTENANCE 
Subtitle A—Authorization of Appropriations 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Armed Forces Retirement Home. 
Subtitle B—Environmental Provisions 
Sec. 311. Clarify definitions of salvage facilities and salvage services to include 
environmental responses and related equipment. 
Sec. 312. Authorization for federal participation in wetland mitigation banks. 
Sec. 313. Provision to exempt restoration advisory boards from the Federal Ad-
visory Committee Act. 
Sec. 314. Repeal of military equipment and infrastructure: prevention and miti-
gation of corrosion. 
Subtitle C—Workplace and Depot Issues
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Sec. 321. Repeal of time limitation on exclusion of expenditures on contracting 
for depot-level maintenance. 
Sec. 322. Exception to competition requirement for depot-level maintenance 
and repair. 
Sec. 323. Exclude workloads for special access programs from limitations on 
the performance of depot-level maintenance of materiel. 
Sec. 324. Establishing minimum level of performance of depot-level mainte-
nance of materiel by federal government personnel or at a gov-
ernment-owned facility. 
Sec. 325. Centers of industrial and technical excellence: extension of partner-
ship exemption. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
Subtitle A—Active Forces 
Sec. 401. End strengths for active forces. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for Reserves on active duty in support of the reserves. 
Sec. 413. End strengths for military technicians (dual status). 
Sec. 414. Fiscal year 2004 limitation on number of non-dual status technicians. 
TITLE V—MILITARY PERSONNEL POLICY 
Subtitle A—Officer Personnel Policy 
Sec. 501. Repeal of prohibition against regular Navy officers transferring be-
tween line and staff corps in grades above lieutenant com-
mander. 
Sec. 502. Retention of officers serving in health professions to fulfill active duty 
service commitments following promotion non-selection. 
Sec. 503. Requirement of exemplary conduct. 
Subtitle B—Reserve Component Management 
Sec. 511. Ready Reserve training requirement. 
Sec. 512. Streamline process to continue officers on the Reserve active status 
list. 
Subtitle C—Military Education and Training 
Sec. 521. Authority for the Marine Corps University to award the degree of 
Master of Operational Studies. 
Sec. 522. Joint professional military education. 
Subtitle D—Administrative Matters 
Sec. 531. Enhancements to personnel tempo program. 
Sec. 532. Consistent time in service retirement criteria. 
Subtitle E—Benefits 
Sec. 541. Authority to transport remains of retirees who die in military treat-
ment facilities outside the United States. 
Sec. 542. Change family separation housing allowance from an entitlement to 
a discretionary allowance.
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Sec. 543. Payment of dependent student baggage storage. 
Sec. 544. Modification of prohibition on requirement of nonavailability state-
ment or preauthorization. 
Subtitle F—Military Justice Matters 
Sec. 551. Technical amendment to the Uniform Code of Military Justice con-
cerning the offense of drunken operation of a vehicle, aircraft, 
or vessel. 
Subtitle G—Other Matters 
Sec. 561. Basic training requirement for certain members accessed under a di-
rect entry program. 
Sec. 562. Alternate initial military service obligation for persons accessed under 
direct entry program. 
Sec. 563. Joint warfighting capabilities funding. 
Sec. 564. Reappointment of Chairman and Vice-Chairman of the Joint Chiefs 
of Staff during national emergency. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Increase in basic pay for fiscal year 2004. 
Sec. 602. Housing allowance for each married partner when both are on sea 
duty and there are no other dependents. 
Sec. 603. Amendment to basic pay for certain commissioned officers with prior 
service as an enlisted member or warrant officer. 
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 611. Increase maximum amount of selective reenlistment bonus. 
Sec. 612. Making all warrant officers eligible for accession bonus for new offi-
cers in critical skills. 
Sec. 613. Incentive bonus: lateral conversion bonus for converting to under-
manned military occupational specialties. 
Sec. 614. Extending hostile fire and imminent danger pay to Reserve compo-
nent members on inactive duty. 
Sec. 615. Expanded educational assistance authority for cadets and mid-
shipmen receiving ROTC scholarships. 
Sec. 616. Notice and wait provision concerning critical skills retention bonus. 
Sec. 617. Expansion of overseas tour extension incentive program benefits to 
officers. 
Sec. 618. One-year extension of certain bonus and special pay authorities for 
Reserve forces. 
Sec. 619. One-year extension of special pay and bonus authorities for nuclear 
officers. 
Sec. 620. One-year extension of authorities relating to payment of other bo-
nuses. 
Subtitle C—Travel and Transportation Allowances 
Sec. 621. Shipment of a privately owned motor vehicle within the continental 
United States. 
Subtitle D—Other Matters
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Sec. 631. Permit non-scholarship senior ROTC sophomores to voluntarily con-
tract and receive subsistence allowance. 
TITLE VII—HEALTH CARE PROVISIONS 
Sec. 701. Revision of Department of Defense Medicare Eligible Retiree Health 
Care Fund to permit more accurate actuarial valuations. 
Sec. 702. Applicability of the Federal Advisory Committee Act to the Pharmacy 
and Therapeutics Committee. 
TITLE VIII—ACQUISITION POLICY, ACQUISITION MANAGEMENT, 
AND RELATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Milestone authorization of selected defense acquisition programs. 
Sec. 802. Contract closeout. 
Sec. 803. Clarification of requirement to buy certain articles from american 
sources; exceptions. 
Subtitle B—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 811. Extend use of the Defense Modernization Account for life cycle cost 
reduction initiatives. 
Sec. 812. Extension and clarification of authority to carry out certain prototype 
projects. 
Sec. 813. Other transaction authority for modernizing legacy systems. 
Sec. 814. Authority for DoD intelligence components to award personal service 
contracts. 
Sec. 815. Elimination of subcontract notification requirements. 
Sec. 816. Exception for replacement ball bearings and roller bearings to be 
used in a component of non-domestic origin. 
Sec. 817. Industry assignment program. 
Subtitle C—Acquisition-Related Reports and Other Matters 
Sec. 821. Elimination of the requirement to furnish written assurances of tech-
nical data conformity. 
Sec. 822. Conversions of commercial activities. 
Sec. 823. Make permanent the authority to enter into certain personal services 
contracts. 
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Duties and Functions of Department of Defense Officers 
Sec. 901. Alternative authority for acquisition and improvement of military 
housing. 
Subtitle B—Space Activities 
Sec. 911. Authorize provision of space surveillance network services to non-
United States government entities. 
Subtitle C—Reports 
Sec. 921. Repeal of various reports required of the Department of Defense.
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Subtitle D—Other Matters 
Sec. 931. Combatant commands initiatives fund. 
Sec. 932. Consolidating the financial management of facilities in the national 
capital region and designated alternate sites. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Payment of full replacement value for personal property claims. 
Sec. 1002. Restoration of authority to enter into 12-month leases at any time 
during the fiscal year. 
Sec. 1003. Authority to provide reimbursement for cellular telephone use. 
Sec. 1004. Reimbursement for Reserve intelligence support. 
Sec. 1005. Increased use of energy cost savings. 
Sec. 1006. Allow the Department of Defense to capture all expired funds from 
the Military Personnel and Operation and Maintenance Appro-
priations Accounts for use in the Foreign Currency Fluctua-
tions Account. 
Sec. 1007. Funding for special operations Reserve component personnel en-
gaged in activities relating to clearance of landmines. 
Subtitle B—Naval Vessels and Shipyards 
Sec. 1011. Reimbursement to the Navy for assistance provided in support of 
certain ship and shipboard equipment transfers. 
Sec. 1012. Vessels stricken from naval vessel register: use for experimental pur-
poses. 
Sec. 1013. Authorize transfer of vessels stricken from the naval vessel register 
for use as artificial reefs. 
Sec. 1014. Repeal of the Shipbuilding Capability Preservation Agreement. 
Subtitle C—Counter-Drug Activities 
Sec. 1021. Extend authority for use of counter drug activities. 
Sec. 1022. Department of Defense support for counter-terrorism activities in 
the Americas. 
Sec. 1023. Expansion and extension of authority to provide additional support 
for counter-drug activities. 
Subtitle D—Other Department of Defense Provisions 
Sec. 1031. Provision of living quarters for certain students. 
Sec. 1032. Repeal of required grade for defense attache´ in France. 
Sec. 1033. National Geospatial-Intelligence Agency. 
Subtitle E—Other Matters 
Sec. 1041. Updating definitions in title 10, United States Code. 
Sec. 1042. Improving readiness in providing firefighting services. 
Sec. 1043. Documents, historical artifacts, and obsolete or surplus materiel: 
loan, donation, or exchange. 
Sec. 1044. Authority to ensure demilitarization of significant military equip-
ment formerly owned by the Department of Defense. 
TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL
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Sec. 1101. Position vacancy promotion consideration in time of war or national 
emergency. 
TITLE XII—MATTERS RELATING TO OTHER NATIONS 
Subtitle A—Matters Related to Allies and Friendly Foreign Nations 
Sec. 1201. Expansion of authority to conduct the Arctic military environmental 
cooperation program. 
Sec. 1202. Authority to waive domestic source or content requirements. 
Sec. 1203. Authority to expend funds to recognize superior noncombat achieve-
ments or performance by members of friendly foreign forces 
and other foreign nationals. 
Sec. 1204. Administrative support and services for foreign liaison officers. 
Sec. 1205. George C. Marshall European Center for Security Studies. 
Sec. 1206. Restrictions on permanent transfer of significant military equip-
ment. 
Sec. 1207. Amendment to authority for acceptance by Asia-Pacific Center for 
Security Studies of foreign gifts and donations. 
Sec. 1208. Addition of individuals authorized to receive check cashing and ex-
changes of foreign currency. 
Sec. 1209. Continuation of the regional counterterrorism fellowship program. 
Sec. 1210. Logistics support for friendly nations. 
Subtitle B—Other Matters 
Sec. 1221. Repeal of the authorization for the establishment of the Center for 
the Study of Chinese Military Affairs. 
TITLE XIII—HOMELAND SECURITY 
Sec. 1301. Sales of chemical and biological defense articles and services to state 
and local governments. 
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS 
Sec. 2001. Short title. 
TITLE XXI—ARMY 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Authorization of appropriations, Army. 
Sec. 2105. Modification to carry out certain fiscal year 2002 projects. 
TITLE XXII—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Authorization of appropriations, Navy. 
TITLE XXIII—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects.
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Authorization of appropriations, Air Force.
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TITLE XXIV—DEFENSE AGENCIES 
Sec. 2401. Authorized Defense Agencies construction and land acquisition 
projects. 
Sec. 2402. Family housing. 
Sec. 2403. Improvements to military family housing units. 
Sec. 2404. Energy conservation projects. 
Sec. 2405. Authorization of appropriations, Defense Agencies. 
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION 
SECURITY INVESTMENT PROGRAM 
Sec. 2501. Authorized NATO construction and land acquisition projects. 
Sec. 2502. Authorization of appropriations, NATO. 
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES 
Sec. 2601. Authorized Guard and Reserve construction and land acquisition 
projects. 
TITLE XXVII—EXPIRATION AND EXTENSION OF 
AUTHORIZATIONS 
Sec. 2701. Expiration of authorizations and amounts required to be specified 
by law. 
Sec. 2702. Extension of authorizations of certain fiscal year 2001 projects. 
Sec. 2703. Extension of authorizations of certain fiscal year 2000 projects. 
Sec. 2704. Effective date. 
TITLE XXVIII—GENERAL PROVISIONS 
Subtitle A—Military Construction and Military Family Housing 
Sec. 2801. Streamlining military construction to reduce facility acquisition and 
construction cycle time. 
Sec. 2802. Increased terms for leases of family housing and other facilities in 
foreign countries. 
Subtitle B—Real Property and Facilities Administration 
Sec. 2811. Expanded authority to transfer property at military installations to 
be closed to persons who construct or provide military housing. 
Sec. 2812. Acceptance of in-kind consideration for easements. 
Sec. 2813. Modification of authority to accept funds to cover administrative ex-
penses relating to certain real property transactions. 
Sec. 2814. Authority to convey property at military installations to persons who 
construct or provide military housing. 
Sec. 2815. Increase in threshold for reports to congressional committees on real 
property transactions. 
Sec. 2816. Contracting with local governments for municipal services. 
Subtitle C—Other Matters 
Sec. 2821. Increase authority to lease military family housing in Italy. 
Sec. 2822. Conveyance of Army and Air Force Exchange Service property, Dal-
las, Texas.
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DIVISION A—DEPARTMENT OF 
DEFENSE AUTHORIZATIONS 
TITLE I—PROCUREMENT 
SUBTITLE A—AUTHORIZATION OF APPROPRIATIONS 
SEC. 101. ARMY. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for procurement for the Army as follows: 
(1) For aircraft, $2,128,485,000. 
(2) For missiles, $1,459,462,000. 
(3) For weapons and tracked combat vehicles, 
$1,640,704,000. 
(4) For ammunition, $1,309,966,000. 
(5) For other procurement, $4,216,854,000. 
SEC. 102. NAVY AND MARINE CORPS. 
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 2004 for procurement for the Navy 
as follows: 
(1) For aircraft, $8,788,148,000. 
(2) For weapons, including missiles and tor-
pedoes, $1,991,821,000. 
(3) 
For 
shipbuilding 
and 
conversion, 
$11,438,984,000. 
(4) For other procurement, $4,679,443,000.
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(b) MARINE CORPS.—Funds are hereby authorized to 
be appropriated for fiscal year 2004 for procurement for 
the Marine Corps in the amount of $1,070,999,000. 
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds 
are hereby authorized to be appropriated for fiscal year 
2004 for procurement of ammunition for the Navy and 
Marine Corps in the amount of $922,355,000. 
SEC. 103. AIR FORCE. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for procurement for the Air Force as fol-
lows: 
(1) For aircraft, $12,079,360,000. 
(2) For missiles, $4,393,039,000. 
(3) 
For 
procurement 
of 
ammunition, 
$1,284,725,000. 
(4) For other procurement, $11,583,659,000. 
SEC. 104. DEFENSE-WIDE ACTIVITIES. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for defense-wide procurement in the 
amount of $3,691,006,000. 
SEC. 105. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for procurement for the Defense Inspec-
tor General in the amount of $2,100,000.
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SEC. 106. DEFENSE HEALTH PROGRAM. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for the Department of Defense for pro-
curement for carrying out health care programs, projects, 
and activities of the Department of Defense in the total 
amount of $327,826,000. 
SEC. 107. CHEMICAL AGENTS AND MUNITIONS DESTRUC-
TION. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for chemical agents and munitions de-
struction in the amount of $1,650,076,000 for—
(1) the destruction of lethal chemical weapons 
in accordance with section 1412 of the Department 
of Defense Authorization Act, 1986 (50 U.S.C. 
1521); and 
(2) the destruction of chemical warfare material 
of the United States that is not covered by section 
1412 of such Act. 
Subtitle B—Multi-Year Contract 
Authorizations 
SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR 
NAVY PROGRAMS. 
(a) MULTI-YEAR CONTRACT AUTHORITY.—Begin-
ning with the fiscal year 2004 program year, the Secretary 
of the Navy may, in accordance with section 2306b of title
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10, United States Code, enter into multiyear contracts for 
procurement of the following: 
(1) F/A–18 aircraft. 
(2) E–2C aircraft. 
(3) the Tactical Tomahawk missile. 
(4) the Virginia class submarine. 
(b) SHIPBUILDER TEAMING.—Paragraphs (2)(A), 
(3), and (4) of section 121(b) of the National Defense Au-
thorization Act for Fiscal Year 1998 (Public Law 105–
85; 111 Stat. 1648) apply to the procurement of Virginia 
class submarines under this section. 
SEC. 112. AMENDMENT TO MULTIYEAR PROCUREMENT AU-
THORITY FOR C–130J AIRCRAFT FOR THE AIR 
FORCE. 
Section 131(a) of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107–
314; 116 Stat. 2475) is amended by striking ‘‘40 C–130J 
aircraft’’ and inserting ‘‘42 C–130J aircraft’’.
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TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION 
Subtitle A—Authorization of 
Appropriations 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for the use of the Armed Forces for re-
search, development, test, and evaluation, as follows: 
(1) For the Army, $9,122,825,000. 
(2) For the Navy, $14,106,653,000. 
(3) For the Air Force, $20,336,258,000. 
(4) For Defense-wide research, development, 
test, and evaluation, $18,260,918,000, of which 
$286,661,000 is authorized for the Director of Oper-
ational Test and Evaluation. 
(5) 
For 
the 
Defense 
Health 
Program, 
$65,796,000. 
(6) 
For 
the 
Defense 
Inspector 
General, 
$300,000.
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Subtitle B—Ballistic Missile 
Defense 
SEC. 211. RENEWAL OF AUTHORITY TO ASSIST LOCAL COM-
MUNITIES IMPACTED BY BALLISTIC MISSILE 
DEFENSE SYSTEM TEST BED. 
Section 235(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 2002 (Public Law 107–107; 115 
Stat. 1041) is amended by striking ‘‘for fiscal year 2002’’ 
and inserting ‘‘for fiscal years after fiscal year 2001’’. 
Subtitle C—Other Matters 
SEC. 221. RESCIND THE PROHIBITION ON RESEARCH AND 
DEVELOPMENT 
OF 
LOW-YIELD 
NUCLEAR 
WEAPONS. 
Section 3136 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 
1946) is repealed. 
TITLE III—OPERATION AND 
MAINTENANCE 
Subtitle A—Authorization of 
Appropriations 
SEC. 301. OPERATION AND MAINTENANCE FUNDING. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for the use of the Armed Forces of the 
United States and other activities and agencies of the De-
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partment of Defense, for expenses, not otherwise provided 
for, for operation and maintenance, in amounts as follows: 
(1) For the Army, $24,965,342,000. 
(2) For the Navy, $28,287,690,000. 
(3) For the Marine Corps, $3,406,656,000. 
(4) For the Air Force, $27,793,931,000. 
(5) 
For 
the 
Defense-wide 
activities, 
$16,570,847,000. 
(6) For the Army Reserve, $1,952,009,000. 
(7) For the Naval Reserve, $1,171,921,000. 
(8) 
For 
the 
Marine 
Corps 
Reserve, 
$173,952,000. 
(9) For the Air Force Reserve, $2,179,188,000. 
(10) 
For 
the 
Army 
National 
Guard, 
$4,211,331,000. 
(11) 
For 
the 
Air 
National 
Guard, 
$4,402,646,000. 
(12) For the Defense Inspector General, 
$160,049,000. 
(13) For the United States Court of Appeals 
for the Armed Forces, $10,333,000. 
(14) For Environmental Restoration, Army, 
$396,018,000. 
(15) For Environmental Restoration, Navy, 
$256,153,000.
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(16) For Environmental Restoration, Air Force, 
$384,307,000. 
(17) For Environmental Restoration, Defense-
wide, $24,081,000. 
(18) For Environmental Restoration, Formerly 
Used Defense Sites, $212,619,000. 
(19) For Overseas Humanitarian, Disaster, and 
Civic Aid programs, $59,000,000. 
(20) For Drug Interdiction and Counter-drug 
Activities, Defense-wide, $817,371,000. 
(21) 
For 
the 
Defense 
Health 
Program, 
$14,876,887,000. 
(22) For Cooperative Threat Reduction pro-
grams, $450,800,000. 
(23) For Overseas Contingency Operations 
Transfer Fund, $50,000,000. 
SEC. 302. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for 
fiscal year 2004 for the use of the Armed Forces of the 
United States and other activities and agencies of the De-
partment of Defense for providing capital for working cap-
ital and revolving funds in amounts as follows: 
(1) For the Defense Working Capital Funds, 
$1,721,507,000.
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(2) For the National Defense Sealift Fund, 
$1,062,762,000. 
SEC. 303. ARMED FORCES RETIREMENT HOME. 
There is hereby authorized to be appropriated for fis-
cal year 2004 from the Armed Forces Retirement Home 
Trust Fund the sum of $65,279,000 for the operation of 
the Armed Forces Retirement Home, including the United 
States Soldiers’ and Airmen’s Home and the Naval Home. 
Subtitle B—Environmental 
Provisions 
SEC. 311. CLARIFY DEFINITIONS OF SALVAGE FACILITIES 
AND SALVAGE SERVICES TO INCLUDE ENVI-
RONMENTAL 
RESPONSES 
AND 
RELATED 
EQUIPMENT. 
(a) SALVAGE FACILITIES.—Section 7361(a) of title 
10, United States Code, is amended by adding at the end 
the following new sentence: ‘‘Salvage facilities include, but 
are not limited to, equipment and gear utilized to prevent, 
abate or minimize damage to the environment.’’. 
(b) SETTLEMENT OF CLAIMS FOR SALVAGE SERV-
ICES.—Section 7363 of such title is amended by adding 
at the end the following new sentence: ‘‘Claims for such 
salvage services include, but are not limited to, those for 
enhanced or special compensation for services that pre-
vent, abate or minimize damage to the environment.’’.
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‘‘(4) in accordance with applicable contracting 
procedures, the customer agency is not charged for 
any effort undertaken by the partnership to correct 
performance deficiencies; and 
‘‘(5) the depot does not charge its partner con-
tractor for any effort the depot undertakes to cor-
rect performance deficiencies under the contract.’’. 
SEC. 323. EXCLUDE WORKLOADS FOR SPECIAL ACCESS 
PROGRAMS FROM LIMITATIONS ON THE PER-
FORMANCE OF DEPOT-LEVEL MAINTENANCE 
OF MATERIEL. 
Section 2466(d) of title 10, United States Code, is 
amended to read as follows: 
‘‘(d) EXCEPTIONS.—Subsection (a) shall not apply 
with respect to—
‘‘(1) the Sacramento Army Depot, Sacramento, 
California; and 
‘‘(2) workloads for special access programs.’’.
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SEC. 324. ESTABLISHING MINIMUM LEVEL OF PERFORM-
ANCE OF DEPOT-LEVEL MAINTENANCE OF 
MATERIEL BY FEDERAL GOVERNMENT PER-
SONNEL OR AT A GOVERNMENT-OWNED FA-
CILITY. 
(a) 
ESTABLISHING
MINIMUM
LEVEL.—Section 
2466(a) of title 10, United States Code, is amended to 
read as follows: 
‘‘(a) ALLOCATION OF WORKLOAD PERCENTAGE.—At 
least 50 percent of the funds made available in a fiscal 
year to a military department or a Defense Agency for 
depot-level maintenance and repair workload shall be used 
for the performance of such workload for the military de-
partment or the Defense Agency by Federal Government 
personnel or at a Government-owned facility.’’. 
(b) CONFORMING AMENDMENT.—Section 2474(f)(1) 
of such title is amended by striking ‘‘percentage limita-
tion’’ and inserting ‘‘allocation of workload percentage’’. 
SEC. 325. CENTERS OF INDUSTRIAL AND TECHNICAL EX-
CELLENCE: EXTENSION OF PARTNERSHIP EX-
EMPTION. 
Section 2474(f)(1) of title 10, United States Code, 
is amended by striking ‘‘at’’ and inserting ‘‘for’’.
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TITLE IV—MILITARY 
PERSONNEL AUTHORIZATIONS 
Subtitle A—Active Forces 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 
The Armed Forces are authorized strengths for active 
duty personnel as of September 30, 2004, as follows: 
(1) The Army, 480,000. 
(2) The Navy, 373,800. 
(3) The Marine Corps, 175,000. 
(4) The Air Force, 359,300. 
Subtitle B—Reserve Forces 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE. 
(a) IN GENERAL.—The Armed Forces are authorized 
strengths for Selected Reserve personnel of the reserve 
components as of September 30, 2004, as follows: 
(1) The Army National Guard of the United 
States, 350,000. 
(2) The Army Reserve, 205,000. 
(3) The Naval Reserve, 85,900. 
(4) The Marine Corps Reserve, 39,600. 
(5) The Air National Guard of the United 
States, 107,000. 
(6) The Air Force Reserve, 75,800. 
(7) The Coast Guard Reserve, 10,000.
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(b) ADJUSTMENTS.—The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve com-
ponent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of 
such component which are on active duty (other 
than for training) at the end of the fiscal year; and 
(2) the total number of individual members not 
in units organized to serve as units of the Selected 
Reserve of such component who are on active duty 
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end 
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end 
strength prescribed for such fiscal year for the Selected 
Reserve of such reserve component shall be increased pro-
portionately by the total authorized strengths of such 
units and by the total number of such individual members. 
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE 
DUTY IN SUPPORT OF THE RESERVES. 
Within the end strengths prescribed in section 
411(a), the reserve components of the Armed Forces are 
authorized, as of September 30, 2004, the following num-
ber of Reserves to be serving on full-time active duty or,
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in the case of members of the National Guard, full-time 
National Guard duty for the purpose of organizing, ad-
ministering, recruiting, instructing, or training the reserve 
components: 
(1) The Army National Guard of the United 
States, 25,386. 
(2) The Army Reserve, 14,374. 
(3) The Naval Reserve, 14,384. 
(4) The Marine Corps Reserve, 2,261. 
(5) The Air National Guard of the United 
States, 12,140. 
(6) The Air Force Reserve, 1,660. 
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS 
(DUAL STATUS). 
The Reserve Components of the Army and the Air 
Force are authorized strengths for military technicians 
(dual status) as of September 30, 2004, as follows: 
(1) For the Army Reserve, 6,699. 
(2) For the Army National Guard of the United 
States, 24,589. 
(3) For the Air Force Reserve, 9,991. 
(4) For the Air National Guard of the United 
States, 22,806.
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SEC. 414. FISCAL YEAR 2004 LIMITATION ON NUMBER OF 
NON-DUAL STATUS TECHNICIANS. 
The number of civilian employees who are non-dual 
status technicians of a reserve component of the Army or 
Air Force as of September 30, 2004, may not exceed the 
following: 
(1) For the Army Reserve, 895. 
(2) For the Army National Guard of the United 
States, 1,600. 
(3) For the Air Force Reserve, 90. 
(4) For the Air National Guard of the United 
States, 350. 
TITLE V—MILITARY PERSONNEL 
POLICY 
Subtitle A—Officer Personnel 
Policy 
SEC. 501. REPEAL OF PROHIBITION AGAINST REGULAR 
NAVY OFFICERS TRANSFERRING BETWEEN 
LINE AND STAFF CORPS IN GRADES ABOVE 
LIEUTENANT COMMANDER. 
(a) REPEAL.—Section 5582 of title 10, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 539 of such title is amended 
by striking the item relating to section 5582.
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SEC. 502. RETENTION OF OFFICERS SERVING IN HEALTH 
PROFESSIONS TO FULFILL ACTIVE DUTY 
SERVICE COMMITMENTS FOLLOWING PRO-
MOTION NON-SELECTION. 
(a) IN GENERAL.—Subsection (a) of section 632 of 
title 10, United States Code, is amended—
(1) by striking ‘‘or’’ at the end of paragraph 
(2); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(4) if on the date on which he is to be dis-
charged under paragraph (1) a medical officer or 
dental officer or an officer appointed in a medical 
skill other than as a medical officer or dental officer 
(as defined in regulations prescribed by the Sec-
retary of Defense) has yet to complete a period of 
active duty service obligation incurred under section 
2005, 2114, 2123, or 2603 of this title, he shall be 
retained on active duty until completion of such 
service obligation, unless the Secretary concerned de-
termines that completion of the active duty obliga-
tion is not in the best interest of the military depart-
ment.’’.
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(b) TECHNICAL AMENDMENT.—Such subsection is 
further amended by striking ‘‘clause (1)’’ in paragraph (3) 
and inserting ‘‘paragraph (1)’’. 
SEC. 503. REQUIREMENT OF EXEMPLARY CONDUCT. 
(a) IN GENERAL.—Chapter 3 of title 10, United 
States Code, is amended by inserting after section 121 the 
following new section: 
‘‘§ 121a. Requirement of exemplary conduct 
‘‘All commanding officers and others in authority in 
the Department of Defense are required—
‘‘(1) to show in themselves a good example of 
virtue, honor, patriotism, and subordination; 
‘‘(2) to be vigilant in inspecting the conduct of 
all persons who are placed under their command or 
charge; 
‘‘(3) to guard against and to suppress all disso-
lute and immoral practices and to correct, according 
to applicable laws and regulations, all persons who 
are guilty of them; and 
‘‘(4) to take all necessary and proper measures, 
under the laws, regulations, and customs applicable 
to the armed forces, to promote and safeguard the 
morale, the physical well-being, and the general wel-
fare of the officers, enlisted persons, and civilian 
persons under their command or charge.’’.
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(b) CONFORMING AND CLERICAL AMENDMENTS.—
(1) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
121 the following new item:
‘‘121a. Requirement of exemplary conduct.’’.
(2) Title 10 is further amended as follows: 
(A)(i) Section 3583 is repealed. 
(ii) The table of sections at the beginning of 
chapter 345 is amended by striking the item relating 
to section 3583. 
(B)(i) Section 5947 is repealed. 
(ii) The table of sections at the beginning of 
chapter 551 is amended by striking the item relating 
to section 5947. 
(C)(i) Section 8583 is repealed. 
(ii) The table of sections at the beginning of 
chapter 845 is amended by striking the item relating 
to section 8583. 
Subtitle B—Reserve Component 
Management 
SEC. 511. READY RESERVE TRAINING REQUIREMENT. 
Subsection (a) of section 10147 of title 10, United 
States Code, is amended to read as follows: 
‘‘(a) Except as specifically provided in regulations to 
be prescribed by the Secretary of Defense, or by the Sec-
retary of Homeland Security with respect to the Coast
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Guard when it is not operating as a service in the Navy, 
each person who is enlisted, inducted, or appointed in an 
armed force, and who becomes a member of the Ready 
Reserve under any provision of law except section 513 or 
10145(b) of this title, shall be required, while in the Ready 
Reserve, to participate in a combination of drills, training 
periods or active duty equivalent to 38 days, exclusive of 
travel, during each year.’’. 
SEC. 512. STREAMLINE PROCESS TO CONTINUE OFFICERS 
ON THE RESERVE ACTIVE STATUS LIST. 
(a) CONTINUATION.—Section 14701 of title 10, 
United States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘by a se-
lection board convened under section 14101(b) 
of this title’’ and inserting ‘‘under regulations 
prescribed by the Secretary concerned’’; 
(B) in paragraph (6), by striking ‘‘as a re-
sult of the convening of a selection board under 
section 14101(b) of this title’’; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsection (d) as sub-
section (b). 
(b) CONFORMING AMENDMENT.—Subsection (b) of 
section 14101 of such title is amended—
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(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively. 
Subtitle C—Military Education and 
Training 
SEC. 521. AUTHORITY FOR THE MARINE CORPS UNIVER-
SITY TO AWARD THE DEGREE OF MASTER OF 
OPERATIONAL STUDIES. 
Section 7102 of title 10, United States Code, is 
amended—
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) COMMAND AND STAFF COLLEGE OF THE MA-
RINE CORPS UNIVERSITY.—Upon the recommendation of 
the Director and faculty of the Command and Staff Col-
lege 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.’’. 
SEC. 522. JOINT PROFESSIONAL MILITARY EDUCATION. 
Section 663(e) of title 10, United States Code, is re-
pealed.
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Subtitle D—Administrative Matters 
SEC. 531. ENHANCEMENTS TO PERSONNEL TEMPO PRO-
GRAM. 
(a) REVISIONS TO DEPLOYMENT LIMITS AND AU-
THORITY TO AUTHORIZE EXEMPTIONS.—Section 991(a) 
of title 10, United States Code, is amended to read as 
follows: 
‘‘(a) SERVICE AND GENERAL OR FLAG OFFICER RE-
SPONSIBILITIES.—The deployment (or potential deploy-
ment) of a member of the armed forces shall be managed 
to ensure the member is not deployed, or continued in a 
deployment, on any day on which the total number of days 
on which the member has been deployed out of the pre-
ceding 730 days would exceed 400, or a lower threshold 
as approved by the Under Secretary of Defense for Per-
sonnel and Readiness. The member may be deployed, or 
continued in a deployment, without regard to the pre-
ceding sentence if such deployment, or continued deploy-
ment, is approved by a member of the Senior Executive 
Service or the first general or flag officer (including offi-
cers in the grade of 0–6 in such positions already selected 
for general or flag rank) in the member’s chain of com-
mand.’’.
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(b) CHANGES
TO
HIGH-DEPLOYMENT
ALLOW-
ANCE.—Section 436 of title 37, United States Code, is 
amended—
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) MONTHLY ALLOWANCE REQUIRED.—The Sec-
retary of the military department concerned shall pay a 
high-deployment allowance to a member of the armed 
forces under the Secretary’s jurisdiction for each month 
during which the member—
‘‘(1) is deployed; and 
‘‘(2) has, as of that day, been deployed for ei-
ther or both of the following periods: 
‘‘(A) 401 or more days out of the pre-
ceding 730 days (or at a lower threshold as ap-
proved by the Under Secretary of Defense for 
Personnel and Readiness); or 
‘‘(B) 191 or more consecutive days (or for 
a lower threshold as approved by the Under 
Secretary of Defense for Personnel and Readi-
ness).’’; 
(2) by amending subsection (c) to read as fol-
lows:
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‘‘(c) MAXIMUM RATE.—The maximum monthly rate 
of the allowance payable to a member under this section 
is $1,000.’’; 
(3) in subsection (e), by striking ‘‘per diem’’ 
and inserting ‘‘allowance’’; 
(4) in subsection (f)—
(A) by striking ‘‘per diem’’ and inserting 
‘‘allowance’’; and 
(B) by striking ‘‘day on’’ and inserting 
‘‘month during’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(g) EXCLUDED BILLETS.—The Secretary concerned 
may exclude selected billets from eligibility for the high-
deployment allowance upon approval by the Under Sec-
retary of Defense for Personnel and Readiness. A billet 
may only be excluded on a prospective basis once the cur-
rent incumbent has vacated that billet.’’. 
(c) CHANGES TO REPORTING REQUIREMENT.—Sec-
tion 487(b)(5) of title 10, United States Code, is amended 
to read as follows: 
‘‘(5) For each of the armed forces, the description 
shall indicate the number of members who received the 
high-deployment allowance, the total number of months
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for which the allowance was paid to members, and the 
total amount spent on the allowance.’’. 
(d) CLERICAL AMENDMENTS.—(1) The heading of 
section 436 of title 37, United States Code, is amended 
to read as follows: 
‘‘§ 436. 
Monthly 
high-deployment 
allowance 
for 
lengthy or numerous deployments’’; 
and 
(2) The item relating to that section in the table of 
sections at the beginning of chapter 7 of such title is 
amended to read as follows:
‘‘436. Monthly high-deployment allowance for lengthy or numerous deploy-
ments.’’.
SEC. 532. CONSISTENT TIME IN SERVICE RETIREMENT CRI-
TERIA. 
(a) OFFICERS IN REGULAR NAVY OR MARINE CORPS 
WHO COMPLETED 40 YEARS OF ACTIVE SERVICE.—Sec-
tion 6321(a) of title 10, United States Code, is amended 
by striking ‘‘after completing 40 or more years’’ and in-
serting ‘‘and has at least 40 years’’. 
(b) OFFICERS IN REGULAR NAVY OR MARINE CORPS 
WHO COMPLETED 30 YEARS OF ACTIVE SERVICE.—Sec-
tion 6322(a) of such is amended by striking ‘‘after com-
pleting 30 or more years’’ and inserting ‘‘and has at least 
30 years’’.
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(c) OFFICERS IN NAVY OR MARINE CORPS WHO 
COMPLETED 20 YEARS OF ACTIVE SERVICE.—Section 
6323(a)(1) of such title is amended by striking ‘‘after 
completing more than 20 years’’ and inserting ‘‘and has 
at least 20 years’’. 
(d) ENLISTED MEMBERS IN REGULAR NAVY OR MA-
RINE CORPS WHO COMPLETED 30 YEARS OF ACTIVE 
SERVICE.—Section 6326(a) of such title is amended by 
striking ‘‘after completing 30 or more years’’ and inserting 
‘‘and has at least 30 years’’. 
(e) TRANSFER
OF ENLISTED MEMBERS
TO
THE 
FLEET
RESERVE
AND
FLEET
MARINE
CORPS
RE-
SERVE.—Section 6330(b) of such title is amended by 
striking ‘‘who has completed 20 or more years’’ both 
places it appears and inserting ‘‘and has at least 20 
years’’. 
(f) TRANSFER OF MEMBERS OF THE FLEET RE-
SERVE AND FLEET MARINE CORPS RESERVE TO THE RE-
TIRED LIST.—Section 6331(a) of such title is amended 
by striking ‘‘completed 30 years’’ and inserting ‘‘has at 
least 30 years’’. 
(g) EFFECTIVE DATE.—The Secretary of the Navy 
may determine the effective date of the amendments made 
by this section.
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Subtitle E—Benefits 
SEC. 541. AUTHORITY TO TRANSPORT REMAINS OF RETIR-
EES WHO DIE IN MILITARY TREATMENT FA-
CILITIES OUTSIDE THE UNITED STATES. 
(a) AUTHORIZE TRANSPORT OUTSIDE THE UNITED 
STATES.—Section 1490 of title 10, United States Code, 
is amended—
(1) in subsection (a), by striking ‘‘located in the 
United States’’; and 
(2) in subsection (b)(1), by striking ‘‘outside 
the United States or to a place’’. 
(b) CONFORMING AMENDMENT.—Subsection (c) of 
such section is amended to read as follows: 
‘‘(c) In this section, the term ‘dependent’ has the 
meaning given such term in section 1072(2) of this title.’’. 
SEC. 542. CHANGE FAMILY SEPARATION HOUSING ALLOW-
ANCE FROM AN ENTITLEMENT TO A DISCRE-
TIONARY ALLOWANCE. 
Section 403(d)(1) of title 37, United States Code, is 
amended by striking ‘‘is entitled to’’ and inserting ‘‘may 
be paid, at the discretion of the Secretary concerned,’’. 
SEC. 543. PAYMENT OF DEPENDENT STUDENT BAGGAGE 
STORAGE. 
Section 430(b)(2) of title 37, United States Code, is 
amended by striking ‘‘during the dependent’s annual trip
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between the school and the member’s duty station’’ and 
inserting ‘‘one time per fiscal year’’. 
SEC. 544. MODIFICATION OF PROHIBITION ON REQUIRE-
MENT OF NONAVAILABILITY STATEMENT OR 
PREAUTHORIZATION. 
Section 721 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106–
398; 114 Stat. 1654A–184), as enacted into law by Public 
Law 106–398, and as amended by Public Law 107–107, 
is hereby repealed. 
Subtitle F—Military Justice 
Matters 
SEC. 551. TECHNICAL AMENDMENT TO THE UNIFORM CODE 
OF MILITARY JUSTICE CONCERNING THE OF-
FENSE OF DRUNKEN OPERATION OF A VEHI-
CLE, AIRCRAFT, OR VESSEL. 
Section 911 of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 911. Drunken or reckless operation of a vehicle, 
aircraft, or vessel 
‘‘(a) Any person subject to this chapter who—
‘‘(1) operates or physically controls any vehicle, 
aircraft, or vessel in a reckless or wanton manner or 
while impaired by a substance described in section 
912a(b) of this title, or
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‘‘(2) operates or is in actual physical control of 
any vehicle, aircraft, or vessel while drunk or when 
the alcohol concentration in the person’s blood or 
breath is at or above the level prohibited under sub-
section (b), as shown by chemical analysis, shall be 
punished as a court-martial may direct. 
‘‘(b)(1) For purposes of subsection (a), the applicable 
limit on the alcohol concentration in a person’s blood or 
breath is as follows: 
‘‘(A) In the case of the operation or control of 
a vehicle, aircraft, or vessel in the United States, the 
level is the blood or breath alcohol concentration 
prohibited under the law of the State in which the 
conduct occurred, except as may be provided under 
paragraph (2) for conduct on a military installation 
that is in more than one State, and subject to the 
prohibited alcohol concentration level specified in 
paragraph (3). 
‘‘(B) In the case of the operation or control of 
a vehicle, aircraft, or vessel outside the United 
States, the level is the blood alcohol concentration 
specified in paragraph (3) or such lower level as the 
Secretary of Defense may by regulation prescribe. 
‘‘(2) In the case of a military installation that is in 
more than one State, if those States have different levels
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for defining their prohibited blood alcohol concentrations 
under their respective State laws, the Secretary concerned 
for the installation may select one such level to apply uni-
formly on that installation. 
‘‘(3) For purposes of paragraph (1), the level of alco-
hol concentration prohibited in a person’s blood is 0.10 
grams or more of alcohol per 100 milliliters of blood and 
with respect to a person’s breath is 0.10 grams or more 
of alcohol per 210 liters of breath, as shown by chemical 
analysis. 
‘‘(4) In this subsection, the term ‘United States’ in-
cluded the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, and American 
Samoa and the term ‘State’ includes each of those juris-
dictions.’’. 
Subtitle G—Other Matters 
SEC. 561. BASIC TRAINING REQUIREMENT FOR CERTAIN 
MEMBERS 
ACCESSED 
UNDER 
A 
DIRECT 
ENTRY PROGRAM. 
Paragraph (1) of section 671(c) of title 10, United 
States Code, is amended to read as follows: 
‘‘(1) Under regulations prescribed under para-
graph (2), a period of basic training (or equivalent 
training) shorter than 12 weeks may be established
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by the Secretary concerned for members of the 
armed forces who—
‘‘(A) have been credentialed in a medical 
profession or occupation and are serving in a 
health-care occupational specialty; or 
‘‘(B) have been accessed into a direct entry 
program established by the Secretary concerned 
based on unique skills acquired in a civilian oc-
cupation. 
Any such period shall be established under regula-
tions prescribed under paragraph (2) and may be es-
tablished notwithstanding section 4(a) of the Mili-
tary 
Selective 
Service 
Act 
(50 
U.S.C. 
App. 
454(a)).’’. 
SEC. 562. ALTERNATE INITIAL MILITARY SERVICE OBLIGA-
TION FOR PERSONS ACCESSED UNDER DI-
RECT ENTRY PROGRAM. 
Subsection (a) of section 651 of title 10, United 
States Code, is amended to read as follows: 
‘‘(a)(1) Each person who becomes a member of an 
armed force, other than a person described in paragraph 
(2), shall serve in the armed forces for a total initial period 
of not less than six years nor more than eight years, as 
provided in regulations prescribed by the Secretary of De-
fense for the armed forces under his jurisdiction and by
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the Secretary of Homeland Security for the Coast Guard 
when it is not operating as a service in the Navy, unless 
such person is sooner discharged under such regulations 
because of personal hardship. Any part of such service 
that is not active duty or that is active duty for training 
shall be performed in a reserve component. 
‘‘(2) A person is not subject to paragraph (1) if that 
person—
‘‘(A) deferred under the next to the last sen-
tence of section 6(d)(1) of the Military Selective 
Service Act (50 U.S.C. App. 456(d)(1)); or 
‘‘(B) accessed into a direct entry program es-
tablished by the Secretary concerned based on 
unique skills acquired in a civilian occupation.’’. 
SEC. 563. JOINT WARFIGHTING CAPABILITIES FUNDING. 
Section 166a(b) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(10) Joint warfighting capabilities.’’. 
SEC. 564. REAPPOINTMENT OF CHAIRMAN AND VICE-
CHAIRMAN OF THE JOINT CHIEFS OF STAFF 
DURING NATIONAL EMERGENCY. 
(a) REAPPOINTMENT OF THE CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF.—Section 152(a) of title 10, 
United States Code, is amended—
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(1) in paragraph (1), by striking ‘‘in time of 
war’’ and inserting ‘‘in time of war or during a na-
tional emergency declared by the President or Con-
gress’’; and 
(2) in paragraph (3), by striking ‘‘in time of 
war’’ and inserting ‘‘in time of war or during a na-
tional emergency declared by the President or Con-
gress’’. 
(b) REAPPOINTMENT OF THE VICE-CHAIRMAN OF 
THE JOINT CHIEFS OF STAFF.—Paragraph (3) of section 
154(a) of such title is amended by striking ‘‘in time of 
war’’ and inserting ‘‘in time of war or during a national 
emergency declared by the President or Congress’’. 
TITLE VI—COMPENSATION AND 
OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2004. 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The 
adjustment to become effective during fiscal year 2004 re-
quired by section 1009 of title 37, United States Code, 
in the rates of monthly basic pay authorized members of 
the uniformed services shall not be made. 
(b) INCREASE
IN BASIC PAY
FOR MEMBERS
OF 
ARMED FORCES.—Effective on January 1, 2004, the rates
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of monthly basic pay for members of the armed forces 
within each pay grade are as follows: 
COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
O–10 2 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00
O–9 ...
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 ...
7,751.10 
8,004.90 
8,173.20 
8,220.60 
8,430.30
O–7 ...
6,440.70 
6,739.80 
6,878.40 
6,988.50 
7,187.40
O–6 ...
4,773.60 
5,244.30 
5,588.40 
5,588.40 
5,609.70
O–5 ...
3,979.50 
4,482.90 
4,793.40 
4,851.60 
5,044.80
O–4 ...
3,433.50 
3,974.70 
4,239.90 
4,299.00 
4,545.30
O–3 3
3,018.90 
3,422.40 
3,693.90 
4,027.20 
4,220.10
O–2 3
2,595.60 
2,956.50 
3,405.00 
3,519.90 
3,592.50
O–1 3
2,253.60 
2,345.10 
2,834.70 
2,834.70 
2,834.70
Over 8 
Over 10 
Over 12 
Over 14 
Over 16
O–10 2 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 ...
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 ...
8,781.90 
8,863.50 
9,197.10 
9,292.80 
9,579.90
O–7 ...
7,384.20 
7,611.90 
7,839.00 
8,066.70 
8,781.90
O–6 ...
5,850.00 
5,882.10 
5,882.10 
6,216.30 
6,807.30
O–5 ...
5,161.20 
5,415.90 
5,602.80 
5,844.00 
6,213.60
O–4 ...
4,809.30 
5,137.80 
5,394.00 
5,571.60 
5,673.60
O–3 3
4,431.60 
4,568.70 
4,794.30 
4,911.30 
4,911.30
O–2 3
3,592.50 
3,592.50 
3,592.50 
3,592.50 
3,592.50
O–1 3
2,834.70 
2,834.70 
2,834.70 
2,834.70 
2,834.70
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2 
$0.00 
$12,524.70 
$12,586.20 
$12,847.80 
$13,303.80
O–9 ...
0.00 
10,954.50 
11,112.30 
11,340.30 
11,738.40
O–8 ...
9,995.70 
10,379.10 
10,635.30 
10,635.30 
10,635.30
O–7 ...
9,386.10 
9,386.10 
9,386.10 
9,386.10 
9,433.50
O–6 ...
7,154.10 
7,500.90 
7,698.30 
7,897.80 
8,285.40
O–5 ...
6,389.70 
6,563.40 
6,760.80 
6,760.80 
6,760.80
O–4 ...
5,733.00 
5,733.00 
5,733.00 
5,733.00 
5,733.00
O–3 3
4,911.30 
4,911.30 
4,911.30 
4,911.30 
4,911.30
O–2 3
3,592.50 
3,592.50 
3,592.50 
3,592.50 
3,592.50
O–1 3
2,834.70 
2,834.70 
2,834.70 
2,834.70 
2,834.70
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for 
commissioned officers in pay grades O–7 through O–10 may not exceed the rate of pay for level III 
of the Executive Schedule and the actual rate of basic pay for all other officers may not exceed the 
rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an officer in this grade while serv-
ing as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief 
of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Com-
mandant of the Coast Guard, is $14,679.30, regardless of cumulative years of service computed 
under section 205 of title 37, United States Code. 
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have 
been credited with over 4 years of active duty service as an enlisted member or warrant officer.
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE 
AS AN ENLISTED MEMBER OR WARRANT OFFICER 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
O–3E 
$0.00 
$0.00 
$0.00 
$4,027.20 
$4,220.10
O–2E 
0.00 
0.00 
0.00 
3,537.00 
3,609.90
O–1E 
0.00 
0.00 
0.00 
2,848.50 
3,042.30
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E 
$4,431.60 
$4,568.70 
$4,794.30 
$4,984.20 
$5,092.80
O–2E 
3,724.80 
3,918.60 
4,068.60 
4,180.20 
4,180.20
O–1E 
3,154.50 
3,269.40 
3,382.20 
3,537.00 
3,537.00
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E 
$5,241.30 
$5,241.30 
$5,241.30 
$5,241.30 
$5,241.30
O–2E 
4,180.20 
4,180.20 
4,180.20 
4,180.20 
4,180.20
O–1E 
3,537.00 
3,537.00 
3,537.00 
3,537.00 
3,537.00
WARRANT OFFICERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
W–5 ..
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 ..
3,119.40 
3,355.80 
3,452.40 
3,547.20 
3,710.40
W–3 ..
2,848.80 
2,967.90 
3,089.40 
3,129.30 
3,257.10
W–2 ..
2,505.90 
2,649.00 
2,774.10 
2,865.30 
2,943.30
W–1 ..
2,212.80 
2,394.00 
2,515.20 
2,593.50 
2,802.30
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ..
$0.00 
$0.00 
$0.00 
$0.00 
$0.00
W–4 ..
3,871.50 
4,035.00 
4,194.30 
4,359.00 
4,617.30
W–3 ..
3,403.20 
3,595.80 
3,786.30 
3,988.80 
4,140.60
W–2 ..
3,157.80 
3,321.60 
3,443.40 
3,562.20 
3,643.80
W–1 ..
2,928.30 
3,039.90 
3,164.70 
3,247.20 
3,321.90
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ..
$0.00 
$5,360.70 
$5,544.30 
$5,728.80 
$5,914.20
W–4 ..
4,782.60 
4,944.30 
5,112.00 
5,277.00 
5,445.90
W–3 ..
4,291.80 
4,356.90 
4,424.10 
4,570.20 
4,716.30 
W–2 ..
3,712.50 
3,843.00 
3,972.60 
4,103.70 
4,103.70
W–1 ..
3,443.70 
3,535.80 
3,535.80 
3,535.80 
3,535.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for war-
rant officers may not exceed the rate of pay for level V of the Executive Schedule.
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ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
E–9 2
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
E–8 ...
0.00 
0.00 
0.00 
0.00 
0.00 
E–7 ...
2,145.00 
2,341.20 
2,430.60 
2,549.70 
2,642.10
E–6 ...
1,855.50 
2,041.20 
2,131.20 
2,218.80 
2,310.00
E–5 ...
1,700.10 
1,813.50 
1,901.10 
1,991.10 
2,130.60
E–4 ...
1,558.20 
1,638.30 
1,726.80 
1,814.10 
1,891.50
E–3 ...
1,407.00 
1,495.50 
1,585.50 
1,585.50 
1,585.50
E–2 ...
1,331.40 
1,331.40 
1,331.40 
1,331.40 
1,331.40
E–1 3
1,086.00 
0.00 
0.00 
0.00 
0.00
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00 
$3,769.20 
$3,854.70 
$3,962.40 
$4,089.30
E–8 ...
3,085.50 
3,222.00 
3,306.30 
3,407.70 
3,517.50
E–7 ...
2,801.40 
2,891.10 
2,980.20 
3,139.80 
3,219.60
E–6 ...
2,516.10 
2,596.20 
2,685.30 
2,763.30 
2,790.90
E–5 ...
2,250.90 
2,339.70 
2,367.90 
2,367.90 
2,367.90
E–4 ...
1,891.50 
1,891.50 
1,891.50 
1,891.50 
1,891.50
E–3 ...
1,585.50 
1,585.50 
1,585.50 
1,585.50 
1,585.50
E–2 ...
1,331.40 
1,331.40 
1,331.40 
1,331.40 
1,331.40
E–1 3
1,173.90 
1,173.90 
1,173.90 
1,173.90 
1,173.90
Over 18 
Over 20
Over 22
Over 24
Over 26
E–9 2
$4,216.50 
$4,421.10 
$4,594.20 
$4,776.60 
$5,054.70 
E–8 ...
3,715.50 
3,815.70 
3,986.40 
4,081.20 
4,314.30
E–7 ...
3,295.50 
3,341.70 
3,498.00 
3,599.10 
3,855.00
E–6 ...
2,809.80 
2,809.80 
2,809.80 
2,809.80 
2,809.80
E–5 ...
2,367.90 
2,367.90 
2,367.90 
2,367.90 
2,367.90
E–4 ...
1,891.50 
1,891.50 
1,891.50 
1,891.50 
1,891.50
E–3 ...
1,585.50 
1,585.50 
1,585.50 
1,585.50 
1,585.50
E–2 ...
1,331.40 
1,331.40 
1,331.40 
1,331.40 
1,331.40
E–1 3
1,173.90 
1,173.90 
1,173.90 
1,173.90 
1,173.90
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for en-
listed members may not exceed the rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade 
while serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Mas-
ter Sergeant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer 
of the Coast Guard, is $6,090.90, regardless of cumulative years of service computed under section 
205 of title 37, United States Code. 
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, 
the rate of basic pay is $1,086.00. 
(c) INCREASE IN BASIC PAY FOR MEMBERS OF THE 
UNIFORMED SERVICES NOT IN THE ARMED FORCES.—
Effective on January 1, 2004, the monthly basic pay for 
members of the uniformed services not in the armed forces 
is increased by 2.0 percent.
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SEC. 602. HOUSING ALLOWANCE FOR EACH MARRIED PART-
NER WHEN BOTH ARE ON SEA DUTY AND 
THERE ARE NO OTHER DEPENDENTS. 
Subparagraph (C) of subsection 403(f)(2) of title 37, 
United States Code, is amended to read as follows: 
‘‘(C) Notwithstanding section 421 of this title, two 
members of the uniformed services in a pay grade below 
pay grade E–6 who are married to each other, have no 
other dependents, and are simultaneously assigned to sea 
duty are each entitled to a basic allowance for housing 
during the period of such simultaneous sea duty. The 
amount of each member’s allowance shall be based on the 
without dependents rate for the pay grade of the mem-
ber.’’. 
SEC. 603. AMENDMENT TO BASIC PAY FOR CERTAIN COM-
MISSIONED OFFICERS WITH PRIOR SERVICE 
AS AN ENLISTED MEMBER OR WARRANT OF-
FICER. 
Section 203(d)(2) of title 37, United States Code, is 
amended to read as follows: 
‘‘(2) Service to be taken into account for purposes 
of computing basic pay under paragraph (1) is as follows: 
‘‘(A) Active service as a warrant officer or as 
a warrant officer and an enlisted member. 
‘‘(B) Service as a warrant officer, as an enlisted 
member, or as a warrant officer and an enlisted
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member, for which at least 1,460 points have been 
credited to the officer for the purposes of section 
12732(a)(2) of title 10.’’.
Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. INCREASE MAXIMUM AMOUNT OF SELECTIVE RE-
ENLISTMENT BONUS. 
Section 308(a)(2)(B) of title 37, United States Code, 
is amended by striking ‘‘$60,000’’ and inserting 
‘‘$90,000’’. 
SEC. 612. MAKING ALL WARRANT OFFICERS ELIGIBLE FOR 
ACCESSION BONUS FOR NEW OFFICERS IN 
CRITICAL SKILLS. 
Section 324 of title 37, United States Code, is 
amended—
(1) in subsection (a), by inserting ‘‘or an ap-
pointment’’ after ‘‘commission’’; and 
(2) in subsection (f), by inserting ‘‘or an ap-
pointment’’ after ‘‘commission’’. 
SEC. 
613. 
INCENTIVE 
BONUS: 
LATERAL 
CONVERSION 
BONUS FOR CONVERTING TO UNDERMANNED 
MILITARY OCCUPATIONAL SPECIALTIES. 
(a) BONUS AUTHORIZED.—Chapter 5 of title 37, 
United States Code, is amended by adding at the end the 
following new section:
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‘‘§ 326. Incentive bonus: lateral conversion bonus for 
converting to undermanned military oc-
cupational specialties 
‘‘(a) 
AUTHORITY
AND
ELIGIBILITY
REQUIRE-
MENTS.—
‘‘(1) The Secretary concerned may pay a bonus 
to a member of the armed forces who agrees to serve 
in a military occupational specialty, rating or other 
military specialty defined by the member’s armed 
force, that is designated by the Secretary concerned 
as undermanned for purposes of this bonus. 
‘‘(2) A bonus may only be paid under this sec-
tion to a member who—
‘‘(A) is entitled to basic pay; 
‘‘(B) is serving in pay grade E–6 (with less 
than 10 years of service) or E–5 and below (re-
gardless of years of service); and 
‘‘(C) agrees to serve for a period of not 
less than two years in a military occupational 
specialty, rating or other military specialty des-
ignated by the Secretary concerned as under-
manned for the purposes of this bonus. 
‘‘(b) AMOUNT AND PAYMENT OF BONUS.—
‘‘(1) A bonus under this section may not exceed 
$4,000.
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‘‘(2) Any bonus payable under this section shall 
be disbursed in one lump sum payment when the 
member’s conversion to the new military specialty is 
approved by the personnel chief of the member’s 
armed force, or his designee. 
‘‘(c) RELATIONSHIP TO OTHER PAY AND ALLOW-
ANCES.—A bonus paid to a member under this section is 
in addition to any other pay and allowances to which the 
member is entitled. 
‘‘(d) REPAYMENT OF BONUS.—
‘‘(1) A member who receives a bonus payment 
under this section and who voluntarily or through 
misconduct, fails to serve for the required period in 
the undermanned military occupational specialty, 
rating or other military specialty defined by the 
armed force for which the bonus was paid, shall re-
fund to the United States an amount that bears the 
same ratio to the amount of the bonus paid to the 
member as the period that the member failed to 
serve bears to the total period for which the bonus 
was paid. 
‘‘(2) An obligation to reimburse the United 
States imposed under paragraph (1) is, for all pur-
poses, a debt owed to the United States.
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‘‘(3) A discharge in bankruptcy under title 11 
that is entered less than five years after the termi-
nation of service for which a bonus was paid under 
this section shall not discharge the person receiving 
such bonus payment from the debt arising under 
paragraph (1). 
‘‘(4) Under regulations prescribed pursuant to 
subsection (e), the Secretary concerned may waive, 
in whole or in part, an obligation to reimburse the 
United States imposed under paragraph (1) when 
the Secretary determines that recovery would be 
against equity and good conscience or would be con-
trary to the best interests of the United States. 
‘‘(e) REGULATIONS.—The Secretaries concerned shall 
prescribe regulations to carry out this section. Regulations 
prescribed by the Secretary of a military department shall 
be subject to the approval of the Secretary of Defense. 
‘‘(f) TERMINATION
OF
BONUS
AUTHORITY.—No 
bonus may be paid under this section with respect to any 
lateral conversion approved after September 30 of the 
third fiscal year that began after the date of enactment 
of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
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‘‘326. Incentive bonus: lateral conversion bonus for converting to undermanned 
military occupational specialties.’’.
SEC. 614. EXTENDING HOSTILE FIRE AND IMMINENT DAN-
GER PAY TO RESERVE COMPONENT MEM-
BERS ON INACTIVE DUTY. 
Section 310 of title 37, United States Code, is 
amended—
(1) in subsection (a), by inserting ‘‘under sec-
tion 204, or to compensation under section 206 (as 
provided in subsection (b)(2)), of this title,’’ after 
‘‘basic pay’’; and 
(2) in subsection (b)(2), by inserting ‘‘, includ-
ing a member who is entitled to compensation under 
section 206 of this title if performing inactive duty 
in an area that has not been designated as an immi-
nent danger area or has not been under hostile fire 
but comes under hostile fire or an explosion of hos-
tile mines during such inactive duty for training pe-
riod,’’ after ‘‘reserve component’’. 
SEC. 615. EXPANDED EDUCATIONAL ASSISTANCE AUTHOR-
ITY FOR CADETS AND MIDSHIPMEN RECEIV-
ING ROTC SCHOLARSHIPS. 
(a) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE 
ON ACTIVE DUTY.—Section 2107(c) of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph:
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‘‘(3)(A) In the case of any cadet or midshipman 
eligible to receive financial assistance as provided 
under paragraph (1) or (2), the Secretary of the 
military department concerned may pay room and 
board expenses for such cadet or midshipman, and 
other expenses required by the educational institu-
tion, in lieu of all or part of the financial assistance 
described in paragraph (1). 
‘‘(B) The total amount of financial assistance, 
including the payment of room and board and other 
educational expenses, provided to a cadet or mid-
shipman in an academic year under this subsection 
may not exceed an amount equal to the amount that 
could be provided as financial assistance for such 
cadet or midshipman under paragraph (1) or (2), or 
other amount determined by the Secretary con-
cerned, without regard to whether room and board 
and other educational expenses for such cadet or 
midshipman are paid under this paragraph.’’. 
(b) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE 
IN TROOP PROGRAM UNITS.—Section 2107a(c) of such 
title is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(2) by adding at the end the following new 
paragraph:
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‘‘(2)(A) In the case of any cadet eligible to re-
ceive financial assistance as provided under para-
graph (1), the Secretary of the military department 
concerned may pay room and board expenses for 
such cadet, and other expenses required by the edu-
cational institution, in lieu of all or part of the fi-
nancial assistance described in paragraph (1). 
‘‘(B) The total amount of financial assistance, 
including the payment of room and board and any 
other educational expenses, provided to a cadet in an 
academic year under this subsection may not exceed 
an amount equal to the amount that could be pro-
vided as financial assistance for such cadet under 
paragraph (1), or other amount determined by the 
Secretary of the Army, without regard to whether 
the room and board and other educational expenses 
for such cadet are paid under this paragraph.’’. 
SEC. 616. NOTICE AND WAIT PROVISION CONCERNING 
CRITICAL SKILLS RETENTION BONUS. 
Section 323(b) of title 37, United States Code, is 
amended by striking paragraph (2). 
SEC. 617. EXPANSION OF OVERSEAS TOUR EXTENSION IN-
CENTIVE PROGRAM BENEFITS TO OFFICERS. 
(a) REST AND RECUPERATIVE ABSENCE.—
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(1) Section 705 of title 10, United States Code, 
is amended—
(A) by striking ‘‘enlisted’’ in the section 
heading; and 
(B) in subsection (a), by striking ‘‘an en-
listed’’ and inserting ‘‘a’’. 
(2) The item relating to such section in the 
table of sections at the beginning of chapter 40 of 
such title is amended to read as follows:
‘‘705. Rest and recuperative absence for qualified members extending duty at 
designated locations overseas.’’.
(b) SPECIAL PAY OR BONUS.—
(1) Section 314 of title 37, United States Code, 
is amended—
(A) by striking ‘‘enlisted’’ in the section 
heading; 
(B) in subsection (a), by striking ‘‘an en-
listed’’ and inserting ‘‘a’’; and 
(C) in subsection (b), by striking ‘‘an en-
listed’’ and inserting ‘‘a’’. 
(2) The item relating to such section in the 
table of sections at the beginning of chapter 5 of 
such title is amended to read as follows:
‘‘314. Special pay or bonus: qualified members extending duty at designated lo-
cations overseas.’’.
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SEC. 618. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR RESERVE 
FORCES. 
(a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN 
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section 
302g(f) of title 37, United States Code, is amended by 
striking out ‘‘December 31, 2003’’ and inserting ‘‘Decem-
ber 31, 2004’’. 
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of such title is amended by striking out 
‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking out ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section 
308d(c) of such title is amended by striking out ‘‘Decem-
ber 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2001’’ and inserting ‘‘December 31, 2004’’. 
(f) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘Decem-
ber 31, 2004’’.
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(g) PRIOR SERVICE REENLISTMENT BONUS.—Sec-
tion 308i(f) of such title is amended by striking ‘‘Decem-
ber 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(h) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of title 10, United 
States Code, is amended by striking ‘‘January 1, 2004’’ 
and inserting ‘‘January 1, 2005’’. 
SEC. 619. ONE-YEAR EXTENSION OF SPECIAL PAY AND 
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 
312(e) of title 37, United States Code, is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(c) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE 
BONUS.—Section 312c(d) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’.
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SEC. 620. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER BONUSES. 
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘Decem-
ber 31, 2004’’. 
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
ing ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
(c) ENLISTMENT BONUS.—Section 309(e) of such 
title is amended by striking ‘‘December 31, 2003’’ and in-
serting ‘‘December 31, 2004’’. 
(d) RETENTION BONUS FOR MEMBERS QUALIFIED 
IN A CRITICAL MILITARY SKILL.—Section 323(i) of such 
title is amended by striking ‘‘December 31, 2003’’ and in-
serting ‘‘December 31, 2004’’. 
(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’.
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Subtitle C—Travel and 
Transportation Allowances 
SEC. 621. SHIPMENT OF A PRIVATELY OWNED MOTOR VEHI-
CLE 
WITHIN 
THE 
CONTINENTAL 
UNITED 
STATES. 
(a) AUTHORITY
TO
PROCURE
CONTRACT
FOR 
TRANSPORTATION OF MOTOR VEHICLE.—Section 2634 of 
title 10, United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(i) In the case of a change of permanent station de-
scribed in clause (A) or (B) of subsection (h)(1) of this 
section, the Secretary concerned may authorize the mem-
ber to arrange shipment of the motor vehicle in lieu of 
transportation at the expense of the United States. The 
member may be paid a monetary allowance in lieu of 
transportation as established under section 404(d)(1) of 
title 37 and the member is responsible for any transpor-
tation costs in excess of such allowance.’’. 
(b) ALLOWANCE
FOR
SELF-PROCUREMENT
OF 
TRANSPORTATION OF MOTOR VEHICLE.—Subparagraph 
(B) of section 406(b)(1) of title 37, United States Code, 
is amended by adding at the end the following new sen-
tence: ‘‘In the case of the transportation of a motor vehicle 
arranged by the member under subsection (i) of section 
2634 of title 10, the member, who has proof of shipment,
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may be paid a monetary allowance in lieu of transpor-
tation as established under section 404(d)(1) of this 
title.’’. 
Subtitle D—Other Matters 
SEC. 631. PERMIT NON-SCHOLARSHIP SENIOR ROTC SOPH-
OMORES TO VOLUNTARILY CONTRACT AND 
RECEIVE SUBSISTENCE ALLOWANCE. 
Section 209 of title 37, United States Code, is 
amended—
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) PILOT PROGRAM
FOR CONTRACT
OF NON-
SCHOLARSHIP SENIOR ROTC MEMBERS.—(1) An eligible 
member of the Selected Reserve Officers’ Training Corps 
is entitled to a monthly subsistence allowance at a rate 
prescribed under subsection (a) for a maximum of twenty 
months. 
‘‘(2) To be eligible to receive a subsistence al-
lowance under this subsection, a person must—
‘‘(A) be a citizen of the United States; 
‘‘(B) enlist in an armed force under the ju-
risdiction of the Secretary of the military de-
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‘‘(3) This program will run as a pilot program 
for the period of three years beginning in January 
2004. The Secretary of Defense will report to the 
Office of Management and Budget annually on the 
participation rates for the program with a cost eval-
uation of the program’s effectiveness. Such annual 
reports will be due by December 31 for each of the 
three years.’’. 
TITLE VII—HEALTH CARE 
PROVISIONS 
SEC. 701. REVISION OF DEPARTMENT OF DEFENSE MEDI-
CARE 
ELIGIBLE 
RETIREE 
HEALTH 
CARE 
FUND TO PERMIT MORE ACCURATE ACTU-
ARIAL VALUATIONS. 
Section 1115(c) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(6) In determining single level dollar amounts in 
subparagraphs (1)(A) and (1)(B), the Secretary of De-
fense may, if the Secretary determines that it would 
produce a more accurate and appropriate actuarial valu-
ation, determine a separate single level dollar amount 
under either or both subparagraphs for any individual par-
ticipating uniformed service. If the Secretary makes any 
such determination, the Secretary (or in the case of a par-
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ticipating uniformed service under the jurisdiction of an-
other administering Secretary, the administering Sec-
retary concerned) shall make corresponding calculations 
under section 1116(a) of this title for the contributions 
applicable to the affected uniformed services.’’. 
SEC. 702. APPLICABILITY OF THE FEDERAL ADVISORY 
COMMITTEE ACT TO THE PHARMACY AND 
THERAPEUTICS COMMITTEE. 
Section 1074g(b)(1) of title 10, United States Code, 
is amended by adding at the end the following new sen-
tence: ‘‘The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the Pharmacy and Therapeutics 
Committee.’’. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. MILESTONE AUTHORIZATION OF SELECTED DE-
FENSE ACQUISITION PROGRAMS. 
(a) IN GENERAL.—(1) Chapter 144 of title 10, 
United States Code is amended by adding after section 
2435 the following new section:
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‘‘§ 2436. Milestone authorization 
‘‘(a) DESIGNATION OF PARTICIPATING PROGRAMS.—
(1) The Secretary of Defense may designate defense ac-
quisition programs in each military department to be con-
sidered for milestone authorization of appropriations 
under subsection (c). 
‘‘(2) The Secretary may designate a defense acquisi-
tion program under paragraph (1) only if the program—
‘‘(A) is ready to proceed into system develop-
ment and demonstration or production and deploy-
ment, or 
‘‘(B) is in either system development and dem-
onstration or production and deployment. 
‘‘(b) SUBMISSION OF BASELINE DESCRIPTIONS.—
Not later than the end of the 90-day period beginning on 
the date that a defense acquisition program is designated 
under subsection (a), the Secretary of Defense shall re-
quest from Congress that funds be authorized to be appro-
priated in a single amount sufficient to carry out the ac-
quisition phase for which the baseline description is sub-
mitted.
‘‘(c) MILESTONE AUTHORIZATION.—Congress shall 
authorize the appropriation of funds for the system devel-
opment and demonstration, or the production and deploy-
ment of a program designated by the Secretary of Defense 
under subsection (a) in a single amount sufficient to carry
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out that phase, provided that such period for which funds 
may be obligated may not exceed six years. 
‘‘(d) NO EFFECT ON STATUTORY AND REGULATORY 
REQUIREMENTS.—Granting milestone authorization does 
not change any other statutory or regulatory requirements 
relating to defense acquisition programs.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
after the item relating to section 2435 the following new 
item:
‘‘2436. Milestone authorization.’’.
SEC. 802. CONTRACT CLOSEOUT. 
(a) IN GENERAL.—The Secretary of Defense shall 
have the authority to promulgate regulations to settle the 
financial accounts for contracts executed prior to Sep-
tember 30, 1996 that are administratively complete and 
for which any unreconciled balance, either positive or neg-
ative, is less than $100,000. 
(b) FINALITY OF DECISION.—Decisions carried out 
in accordance with these regulations shall be final and 
conclusive upon the accounting officers of the United 
States.
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SEC. 803. CLARIFICATION OF REQUIREMENT TO BUY CER-
TAIN ARTICLES FROM AMERICAN SOURCES; 
EXCEPTIONS. 
Section 2533a of title 10, United States Code, is 
amended—
(1) in subsection (a)—
(A) by striking ‘‘subsections (c) through 
(h)’’ and inserting ‘‘subsections (b) through 
(i)’’; and 
(B) by striking ‘‘if the item is not grown, 
reprocessed, reused, or produced in the United 
States’’; 
(2) in subsection (b), by amending paragraphs 
(1) through (3) to read as follows: 
‘‘(1) An article or item of—
‘‘(A) meals ready-to-eat listed in Federal 
Supply Class 8970 unless the item is produced 
or manufactured in the United States; 
‘‘(B) clothing unless the item is grown, re-
processed, reused, or produced in the United 
States; 
‘‘(C) tents, tarpaulins, or covers unless the 
item is grown, reprocessed, reused, or produced 
in the United States; 
‘‘(D) cotton and other natural fiber prod-
ucts, woven silk or woven silk blends, spun silk
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yarn for cartridge cloth, synthetic fabric or 
coated synthetic fabric (including all textile fi-
bers and yarns that are for use in such fabrics), 
canvas products, or wool (whether in the form 
of fiber or yarn or contained in fabrics, mate-
rials, or manufactured articles) unless the item 
is grown, reprocessed, reused, or produced in 
the United States; or 
‘‘(E) any item of individual equipment 
manufactured from or containing such fibers, 
yarns, fabrics, or materials unless the item is 
grown, reprocessed, reused, or produced in the 
United States; 
‘‘(2) Equipment of the following Federal supply 
classifications that contain a specialty metal unless 
the specialty metal used to produce or manufacture 
the item, or an equivalent amount that is acquired 
by the contractor or a subcontractor, was smelted in 
the United States: 
‘‘(A) Weapons listed in Federal Supply 
Group 10. 
‘‘(B) Nuclear ordnance listed in Federal 
Supply Group 11. 
‘‘(C) Fire control equipment listed in Fed-
eral Supply Group 12.
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‘‘(D) Ammunition and explosives listed in 
Federal Supply Group 13. 
‘‘(E) Guided missiles listed in Federal 
Supply Group 14. 
‘‘(F) Aircraft and related components, ac-
cessories, and equipment listed in Federal Sup-
ply Groups 15, 16, and 17. 
‘‘(G) Space vehicles listed in Federal Sup-
ply Group 18. 
‘‘(H) Ships, small craft, pontoons, and 
floating docks listed in Federal Supply Group 
19. 
‘‘(I) Ship and marine equipment listed in 
Federal Supply Group 20. 
‘‘(J) Passenger motor vehicles listed in 
Federal Supply Class 2310. 
‘‘(K) Tracked combat vehicles listed in 
Federal Supply Class 2350. 
‘‘(L) Engines, turbines, and components 
listed in Federal Supply Group 28. 
For the purposes of this paragraph, ‘specialty metal’ 
means: 
‘‘(A) steel—
‘‘(i) where the maximum alloy content 
exceeds one or more of the following limits:
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manganese, 1.65 percent; silicon, 0.60 per-
cent; or copper, 0.60 percent; or 
‘‘(ii) that contains more than 0.25 
percent of any of the following elements: 
aluminum, chromium, cobalt, columbium, 
molybdenum, nickel, titanium, tungsten, or 
vanadium; 
‘‘(B) metal alloys consisting of nickel, iron-
nickel, and cobalt base alloys containing a total 
of other alloying metals (except iron) in excess 
of 10 percent; 
‘‘(C) titanium and titanium alloys; or 
‘‘(D) zirconium and zirconium base alloys; 
and 
‘‘(3) Hand tools listed in Federal Supply Group 
51 and measuring tools listed in Federal Supply 
Group 52 unless the item is produced or manufac-
tured in the United States.’’; 
(3) in subsection (c)—
(A) by striking ‘‘Subsection (a)’’ and in-
serting ‘‘This section’’; and 
(B) by striking ‘‘(1) or specialty metals 
(including stainless steel flatware)’’; 
(4) in subsection (d)—
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(A) in the catch line for such subsection, 
by striking ‘‘OUTSIDE THE UNITED STATES’’ 
and inserting ‘‘IN EXIGENT CIRCUMSTANCES’’; 
(B) by striking ‘‘Subsection (a) does not 
apply’’ and inserting ‘‘This section does not 
apply’’; 
(C) by revising paragraph (1) to read as 
follows: 
‘‘(1) Procurements of items listed in sub-
sections (b)(1)(A), (b)(2), and(b)(3) in support of 
contingency 
operations 
as 
defined 
in 
section 
101(a)(13) of this title, and procurements outside 
the United States of items listed in subsections 
(b)(1)(B) through (b)(1)(E) in support of combat 
operations.’’; 
(D) by revising paragraph (3) to read as 
follows: 
‘‘(3) Procurements of items listed in sub-
sections (b)(1)(A), (b)(2), and (b)(3) of unusual and 
compelling urgency under the authority of section 
2304(c)(2) of this title, and emergency procurements 
by an establishment located outside the United 
States of items listed in subsections (b)(1)(B) 
through (b)(1)(E) for the personnel attached to such 
establishment.’’;
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(5) by revising subsection (e) to read as follows: 
‘‘(e) EXCEPTION
FOR
SPECIALTY
METALS
AND 
CHEMICAL WARFARE PROTECTIVE CLOTHING.—(1) This 
section does not apply to the procurement of end items 
or components of equipment listed in subsection (b)(2) if 
the specialty metal used to produce or manufacture the 
item, or an equivalent amount that is acquired by the con-
tractor or a subcontractor, was smelted in a foreign coun-
try that has a memorandum of understanding providing 
for reciprocal procurement of defense items that is entered 
into with the Department of Defense in accordance with 
section 2531 of this title. 
‘‘(2) This section does not apply to the procurement 
of chemical warfare protective clothing produced outside 
the United States if—
‘‘(A) such procurement is necessary—
‘‘(i) to comply with agreements with for-
eign governments requiring the United States 
to purchase supplies from foreign sources for 
the purposes of offsetting sales made by the 
United States Government or United States 
firms under approved programs serving defense 
requirements; or 
‘‘(ii) in furtherance of agreements with for-
eign governments in which both such govern-
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ments agree to remove barriers to purchases of 
supplies produced in the other country or serv-
ices performed by sources of the other country; 
and 
‘‘(B) any such agreement with a foreign govern-
ment complies, where applicable, with the require-
ments of section 36 of the Arms Export Control Act 
(22 U.S.C. 2776) and with section 2457 of this 
title.’’; 
(6) in subsection (f), by striking ‘‘Subsection 
(a) does not preclude’’ and inserting ‘‘This section 
does not preclude’’; 
(7) in subsection (g), by striking ‘‘Subsection 
(a) does not apply’’ and inserting ‘‘This section does 
not apply’’; 
(8) in subsection (h), by striking ‘‘Subsection 
(a) does not apply’’ and inserting ‘‘This section does 
not apply’’; and 
(9) in subsection (i)—
(A) by striking ‘‘This section’’ and insert-
ing ‘‘(1) Except as provided in paragraph (2), 
this section’’; and 
(B) by adding at the end the following new 
paragraph:
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‘‘(2) This section does not apply to commercial 
items, or components thereof, that are listed in sec-
tions (b)(1)(A), (b)(2), and (b)(3), except if the end 
item is specialty metal.’’. 
Subtitle B—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 811. EXTEND USE OF THE DEFENSE MODERNIZATION 
ACCOUNT FOR LIFE CYCLE COST REDUCTION 
INITIATIVES. 
(a) TITLE 10 AMENDMENTS.—Section 2216 of title 
10, United States Code, is amended—
(1) by striking the catch line in subsection (c); 
(2) by redesignating subsection (c) as para-
graph (b)(5); 
(3) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) APPROPRIATIONS FOR LIFE CYCLE COST RE-
DUCTION.—(1) Funds are authorized to be appropriated 
for fiscal years 2004–2006 in the amount of $25,000,000 
annually to the Defense Modernization Account for the 
purpose of providing startup funds for projects under-
taken by a military department, Defense Agency, or other 
element of the Department of Defense to reduce the life
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cycle cost of new or existing systems in accordance with 
criteria established by the Secretary of Defense. 
‘‘(2) A military department, Defense agency, or other 
element of the Department of Defense that receives funds 
appropriated pursuant to paragraph (1) shall, upon 
achieving savings from such a project, reimburse the Ac-
count for the funds previously received. Funds transferred 
back to the Account pursuant to this paragraph shall be 
available for funding new projects under paragraph (1).’’. 
(4) in subsection (d), by striking ‘‘Authorized 
Use of Funds.—Funds available from the Defense 
Modernization Account pursuant to subsection (f) or 
(g) may be used for the following purposes:’’ and in-
serting ‘‘Authorized Use of Transferred Funds.—
Funds transferred to the Defense Modernization Ac-
count pursuant to subsection (b) may be used for 
the following purposes:’’; and 
(5) in paragraph (f)(1), by striking the sentence 
beginning with ‘‘The Secretary’’ and inserting ‘‘The 
Secretary of Defense may transfer funds in the De-
fense Modernization Account to appropriations avail-
able to the Department of Defense for the purposes 
set forth in subsections (c) and (d).’’. 
(b) EXTENSION OF AUTHORITY.—Subsection (c) of 
section 912 of the National Defense Authorization Act for
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Fiscal Year 1996 (Public Law 104–106; 110 Stat. 410) 
is amended to read as follows: 
‘‘(c) EXPIRATION OF AUTHORITY AND ACCOUNT.—
(1) The authority under section 2216(b) of title 10, 
United States Code, to transfer funds into the Defense 
Modernization Account and the authorization under sec-
tion 2216(c) of such title to appropriate funds to the De-
fense Modernization Account shall terminate on Sep-
tember 30, 2006. 
‘‘(2) The Defense Modernization Account shall be 
closed on September 30, 2011, and any remaining balance 
in the Account shall be cancelled and thereafter shall not 
be available for any purpose.’’. 
SEC. 812. EXTENSION AND CLARIFICATION OF AUTHORITY 
TO 
CARRY 
OUT 
CERTAIN 
PROTOTYPE 
PROJECTS. 
Section 845 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 
1547) is amended in subsection (g), by striking ‘‘Sep-
tember 30, 2004’’ and inserting ‘‘September 30, 2008’’. 
SEC. 813. OTHER TRANSACTION AUTHORITY FOR MODERN-
IZING LEGACY SYSTEMS. 
Section 845(a) of National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 103–160; 107 Stat. 
1547) is amended by inserting ‘‘, or are improvements to
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weapons or weapon systems currently fielded by the De-
partment of Defense’’ after ‘‘Department of Defense’’. 
SEC. 814. AUTHORITY FOR CERTAIN DOD COMPONENTS TO 
AWARD PERSONAL SERVICES CONTRACTS. 
(a) Notwithstanding any other provision of law, sums 
made available by appropriation or otherwise to a covered 
component, as defined in subsection (b), may be expended 
for personal services contracts necessary to carry out the 
covered component’s missions, including personal services 
without regard to limitations on types of persons to be 
employed.
(b) The term ‘‘covered component’’ includes—
(1) any Department of Defense component that 
is an element of the Intelligence Community, as de-
fined in Section 3(4) of the National Security Act of 
1947 (50 U.S.C. 401a); 
(2) any element of the Office of the Secretary 
of Defense designated by the Secretary of Defense 
for purposes of this section; and 
(3) the United States Special Operations Com-
mand when engaged in special operations activities 
delineated in 10 U.S.C. 167(j)(1)–(4).
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SEC. 815. ELIMINATION OF SUBCONTRACT NOTIFICATION 
REQUIREMENTS. 
Section 2306(e) of title 10, United States Code, is 
amended to read as follows: 
‘‘(e) Except for contracts with a contractor that 
maintains a purchasing system approved by the cognizant 
contracting officer, each cost contract and each cost-plus-
a-fixed-fee contract shall require the contractor to provide 
notice to the agency, prior to the award under a prime 
contract, of—
‘‘(1) a cost-plus-a-fixed-fee subcontract; or 
‘‘(2) a fixed-price subcontract or purchase order 
involving more than the greater of—
‘‘(A) the simplified acquisition threshold; 
or 
‘‘(B) five percent of the estimated cost of 
the prime contract.’’. 
SEC. 816 . EXCEPTION FOR REPLACEMENT BALL BEARINGS 
AND ROLLER BEARINGS TO BE USED IN A 
COMPONENT OF NON-DOMESTIC ORIGIN. 
Section 2534(a)(5) of title 10, United States Code, 
is amended by inserting before the period at the end the 
following: ‘‘, other than ball bearings and roller bearings 
to be used in an end product or a component of non-do-
mestic origin’’.
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SEC. 817. INDUSTRY ASSIGNMENT PROGRAM. 
(a) IN GENERAL.—Chapter 81 of title 10, United 
States Code, is amended by inserting after section 1599c 
the following new section: 
‘‘§ 1599d. Government industry assignment program 
‘‘(a) AUTHORITY.—The Secretary of Defense may es-
tablish a pilot program for the temporary assignment of 
non-governmental personnel who are employed in the pri-
vate sector to the Department of Defense. The Secretary 
may promulgate regulations for such purpose. 
‘‘(b) PURPOSE.—This program is designed to im-
prove the Department’s acquisition-related processes and 
procedures. It would accomplish this through an infusion 
of new and modern ideas by the temporary assignment 
in the Department of non-governmental personnel who are 
employed by private industry. The private sector employ-
ees would be compensated by their private employer yet 
would be subject generally to governmental requirements 
that are in force for Federal employees. The Department 
would provide the private employer the benefit of a career 
enhancement for its private sector employees who partici-
pate in the program. 
‘‘(c) LIMITATIONS.—(1) This program is limited to 
those individuals in private sector positions whose duties, 
as determined by the Secretary, are comparable to defense 
acquisition positions.
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‘‘(2) Each such assignment shall be based on a writ-
ten agreement between the Department of Defense, the 
private sector employer, and the employee concerned, 
which shall include nondisclosure provisions addressing 
the use and disclosure of classified and unclassified infor-
mation in the possession or under the control of the De-
partment of Defense that has not been released to the 
public and which shall also include the Federal laws and 
penalties applicable to the disclosure of classified informa-
tion, including, but not limited to section 798 of title 18, 
United States Code. 
‘‘(3) During the period of an assignment made pursu-
ant to this section, a private sector employee—
‘‘(A) is not entitled to pay from the Depart-
ment of Defense, except, as determined by the Sec-
retary on a case by case basis, to the extent that the 
pay received from the private sector employer is less 
than the appropriate rate of pay which the duties 
would warrant under the applicable pay provisions of 
this title, title 5, United States Code, or other appli-
cable authority; 
‘‘(B) is deemed an employee of the Department 
of Defense, subject to section 7353 of title 5, United 
States Code; sections 201, 203, 205, 207, 208, 209, 
219, 602, 603, 606, 607, 610, 643, 654, 1905, 1913
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and other provisions of title 18, United States Code, 
not specifically exempted herein; sections 1343, 
1344, and 1349(b) of title 31, United States Code; 
the Federal Tort Claims Act (28 U.S.C. 2671 et 
seq.); any other Federal tort liability statute; section 
27 of the Office of Federal Procurement Policy Act, 
as amended (41 U.S.C. 423) and regulations imple-
menting that Act; the Ethics in Government Act of 
1978 (5 U.S.C. App.) and regulations implementing 
that Act; and any other provisions of Federal law 
not specifically exempted herein. Notwithstanding 
section 209 of title 18, United States Code, the pri-
vate sector employer may pay, contribute to, or sup-
plement the salary or other benefits of such private 
sector employee (who may accept such pay, contribu-
tions, and benefits), subject to the terms of the writ-
ten private sector employee assignment agreement 
required in paragraph (c)(2) above; 
‘‘(C) is also deemed an employee of his or her 
private sector employer for purposes of section 208 
of title 18, United States Code; 
‘‘(D) is subject to such regulations that the 
Secretary may prescribe, which shall incorporate by 
reference executive branch standards of ethical con-
duct and any authorized agency supplemental stand-
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ards of conduct and which shall include as a min-
imum—
‘‘(i) limitations on the number of partici-
pants (no more than 400); 
‘‘(ii) length of temporary assignments (up 
to two years); 
‘‘(iii) protection of government informa-
tion; 
‘‘(iv) procedures for avoidance of conflicts 
of interest, including selection of program prior-
ities and funding decisions that may involve the 
assignee’s employer or its competitors, and 
avoidance of the appearance of conflicts of in-
terest; and 
‘‘(v) exclusions from the performance of in-
herently governmental functions, such as policy-
making and supervision of government employ-
ees; and 
‘‘(vi) methodology and criteria for evalua-
tion of the pilot; and 
‘‘(E) is not deemed to be an employee for pur-
poses of federal employee pay and benefits under 
title 5, United States Code, except as provided for 
under this subsection. 
‘‘(d) WORKERS COMPENSATION COVERAGE.—
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‘‘(1) A private sector employee assigned to the 
Department of Defense pursuant to this section 
shall not be deemed an employee of the United 
States for the purposes of Chapter 81 of title 5, 
United States Code, (relating to compensation for 
injury). 
‘‘(2) Notwithstanding any other law, the United 
States, any instrumentality of the United States; or 
an employee, agent, or assign of the United States 
shall not be liable to: 
‘‘(A) a private sector employee assigned to 
the Department of Defense pursuant to this 
section; 
‘‘(B) such employee’s legal representative, 
spouse, dependents, survivors and next of kin; 
and 
‘‘(C) any other person, including any third 
party as to whom such employee, or his or her 
legal representative, spouse, dependents, sur-
vivors, or next of kin, has a cause of action 
arising out of an injury or death sustained in 
the performance of duty pursuant to an assign-
ment under this section, otherwise entitled to 
recover damages from the United States, any 
instrumentality of the United States, or any
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employee, agent, or assign of the United 
States—
with respect to any injury or death suffered by a pri-
vate sector employee sustained in the performance of 
duty pursuant to an assignment under this section. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘private sector employer’ means 
a corporation, partnership, sole proprietorship, or 
other entity operated on a for-profit basis. It may, 
at the option of the Secretary, also include ‘other or-
ganizations’ as defined in section 3371 of title 5. 
‘‘(2) The term ‘acquisition position’ has the 
same meaning as in section 1721(b) of this title. 
‘‘(3) The term ‘assignment’ means an assign-
ment under an arrangement made pursuant to the 
section under which a private sector employee is as-
signed to the Department of Defense by being ap-
pointed without regard to the provisions of title 5, 
United States Code, governing appointments in the 
competitive service or being deemed to be detailed to 
the Department of Defense. 
‘‘(4) The term ‘government employee’ means an 
‘employee’ as defined in section 2105 of title 5. 
‘‘(f) EXPIRATION.—The Secretary may not assign 
non-governmental personnel who are employed in the pri-
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vate sector to the Department of Defense under the provi-
sions of this section after the last day of the fifth year 
beginning with the effective date of this Act.’’. 
(b) REPORTING REQUIREMENT.—During the fourth 
year after the enactment of this Act, the Secretary of De-
fense, with input from the Inspector General of the De-
partment of Defense, and in consultation with the Direc-
tor of the Office of Personnel Management, shall evaluate 
the program authorized under this section and prepare a 
report for the President that includes an analysis of the 
use of the authorities of this section, including conflict of 
interest standards, and the costs and benefits of assign-
ments made pursuant to this section. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter 81 is amended by insert-
ing after the item relating to section 2331 the following 
new item:
‘‘1599d. Government industry assignment program.’’.
Subtitle C—Acquisition-Related 
Reports and Other Matters 
SEC. 821. ELIMINATION OF THE REQUIREMENT TO FUR-
NISH WRITTEN ASSURANCES OF TECHNICAL 
DATA CONFORMITY. 
Section 2320(b) of title 10, United States Code, is 
amended—
(1) by striking paragraph (7); and
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(2) by redesignating paragraphs (8) and (9) as 
paragraphs (7) and (8), respectively. 
SEC. 822. CONVERSIONS OF COMMERCIAL ACTIVITIES. 
(a) CHANGES TO ELEMENTS OF ANALYSIS.—Para-
graph (3)(A) of section 2461(b) of title 10, United States 
Code, is amended—
(1) by striking ‘‘of the cost’’; 
(2) by striking ‘‘savings’’ and inserting ‘‘the 
best value’’; 
(3) by redesignating subsection (iii) as sub-
section (iv); and 
(4) by inserting after clause (ii) the following 
new clause (iii): 
‘‘(iii) Benefits in addition to price that warrant 
performance of the function by a source at a cost 
higher than that of performance by Department of 
Defense civilian employees.’’. 
(b) 
CONTRACTING
IF
BEST
VALUE.—Section 
2462(a) of such title is amended by striking ‘‘such a 
source can provide such supply or service to the Depart-
ment at a cost that is lower (after including any cost dif-
ferential required by law, Executive order, or regulation) 
than the cost at which the Department can provide the 
same supply or service’’ and inserting ‘‘performance by 
that source represents the best value to the Government,
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determined in accordance with the competition require-
ments of OMB Circular A–76.’’. 
SEC. 823. MAKE PERMANENT THE AUTHORITY TO ENTER 
INTO CERTAIN PERSONAL SERVICES CON-
TRACTS. 
Section 1091(a)(2) of title 10, United States Code, 
is amended by striking ‘‘The Secretary may not enter into 
a contract under this paragraph after December 31, 
2003.’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Duties and Functions 
of Department of Defense Officers 
SEC. 901. ALTERNATIVE AUTHORITY FOR ACQUISITION 
AND IMPROVEMENT OF MILITARY HOUSING. 
(a) UNIT SIZE AND TYPE.—Section 2880(b)(2) of 
title 10, United States Code, is amended by striking ‘‘un-
less the unit is located on a military installation’’; and 
(b) DEPARTMENT OF DEFENSE HOUSING FUND.—
(1) Section 2883 of title 10, United States Code is amend-
ed—
(A) by striking subsections (a), (b), and (c); 
(B) by inserting the following new subsections 
(a) and (b):
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‘‘(a) ESTABLISHMENT.—There is hereby established 
on the books of the Treasury the Department of Defense 
Housing Improvement Fund. 
‘‘(b) CREDITS TO FUNDS.—There shall be credited 
to the Department of Defense Housing Improvement 
Fund the following: 
‘‘(1) Amounts authorized for and appropriated 
to that Fund. 
‘‘(2) Subject to subsection (e), any amounts 
that the Secretary of Defense transfers, in such 
amounts as provided in appropriation Acts to that 
Fund from amounts authorized and appropriated to 
the Department of Defense for the acquisition or 
construction of military family housing or military 
unaccompanied housing.
‘‘(3) Proceeds from the conveyance or lease of 
property or facilities under section 2878 of this title 
for the purpose of carrying out activities under this 
subchapter with respect to military family housing 
or military unaccompanied housing. 
‘‘(4) Income derived from any activities under 
this subchapter with respect to military family hous-
ing or military unaccompanied housing, including in-
come and gains realized from investments under sec-
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tion 2875 of this title and any return of capital in-
vested as part of such investments. 
‘‘(5) Any amounts that the Secretary of the 
Navy transfers to that Fund pursuant to section 
2814(i)(3) of this title, subject to the restrictions on 
the use of the transferred amounts specified in that 
section.’’; 
(C) by redesignating subsections (d), (e), (f), 
and (g) as (c), (d), (e), and (f) respectively; 
(D) in the newly redesignated subsection (c)—
(i) by striking ‘‘Family in paragraph (1); 
(ii) by striking paragraph (2); and 
(iii) by redesignating paragraph (3) as (2); 
(E) in the newly redesignated subsection (e) by 
striking ‘‘a Fund under paragraph (1)(B) or (2)(B) 
of subsection (c)’’ and inserting ‘‘the Fund under 
paragraph (2) of subsection (b)’’; 
(F) in subsection (f) as relettered by subpara-
graph (C) of this paragraph—
(i) by striking ‘‘$850,000,000’’ in para-
graph (1) and inserting ‘‘$1,700,000,000’’; and 
(ii) by striking ‘‘$150,000,000’’ in para-
graph (2) and inserting ‘‘$300,000,000’’; 
(2) Section 2871(6) of title 10, United States Code, 
is amended by striking ‘‘Family Housing Improvement
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Fund or the Department of Defense Military Unaccom-
panied Housing Improvement Fund’’ and inserting 
‘‘Housing Improvement Fund’’; and 
(3) Section 2875(e) of title 10, United States Code, 
is amended by striking ‘‘Family Housing Improvement 
Fund or the Department of Defense Military Unaccom-
panied Housing Improvement Fund’’ and inserting 
‘‘Housing Improvement Fund’’. 
Subtitle B—Space Activities 
SEC. 911. AUTHORIZE PROVISION OF SPACE SURVEIL-
LANCE NETWORK SERVICES TO NON-UNITED 
STATES GOVERNMENTAL ENTITIES. 
(a) IN GENERAL.—Chapter 136 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 2283. Space surveillance network 
‘‘(a) SATELLITE TRACKING SERVICES.—To support 
the establishment of an experimental pilot program, The 
Secretary of Defense is authorized to establish procedures 
under which non-United States Federal governmental en-
tities, including but not limited to U.S. and non-U.S. com-
mercial entities, state and local government entities and 
foreign governments, may purchase, directly or through 
a contractor, satellite tracking services from assets owned 
or controlled by the Department of Defense. The Sec-
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retary may include in such transactions the provision and 
analysis of satellite data if he determines it is in the na-
tional security interests of the United States. Any pro-
posed sale to a foreign government or foreign commercial 
entity shall be subject to the concurrence of the Secretary 
of State to ensure its consistency with United States for-
eign policy interests. The pilot program shall be conducted 
during a three-year period beginning not later than 180 
days after the date of the enactment of this Act. 
‘‘(b) REIMBURSEMENT OF COSTS.—In the case of 
any purchase made by a non-United States Federal gov-
ernmental entity under the procedures established under 
subsection (a), the Secretary of Defense may require the 
non-United States Federal governmental entity to reim-
burse the Department of Defense for the costs to the De-
partment of such purchase. 
‘‘(c) DEPOSIT
OF FUNDS RECEIVED.—Funds re-
ceived pursuant to the sales authorized in subsection (a) 
shall be credited to accounts of the Department of Defense 
that are current when the proceeds are received and that 
are available for the same purposes as the accounts origi-
nally charged to perform the services. Funds so credited 
are to merge with and become available for obligation for 
the same period as the accounts to which they are cred-
ited.
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‘‘(d) 
NON-TRANSFERABILITY
AGREEMENT.—The 
Department will require all non-United States Federal 
governmental entities to execute a binding commitment 
not to transfer any data or technical information, includ-
ing the analysis of the tracking data, to any other entity 
without the Department’s expressed approval. In the case 
of foreign governments and foreign commercial entities, 
the Department’s approval will be subject to the concur-
rence of the Department of State. 
‘‘(e) PROHIBITION CONCERNING INTELLIGENCE AS-
SETS OR DATA.—Nothing in this section shall be deemed 
to authorize the provision of services or information con-
cerning, or derived from, United States intelligence assets 
or data.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2283. Space surveillance network.’’.
Subtitle C—Reports 
SEC. 921. REPEAL OF VARIOUS REPORTS REQUIRED OF 
THE DEPARTMENT OFDEFENSE. 
(a) PROVISIONS
OF TITLE 10.—Title 10, United 
States Code, is amended—
(1) in section 113—
(A) by striking subsection (j); 
(B) by striking subsection (m); and
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(C) by redesignating subsections (k) and 
(l) as (j) and (k), respectively; 
(2) in section 116—
(A) by repealing this entire section in 
chapter 2; and 
(B) by amending the table of sections at 
the beginning of such chapter 2 by striking the 
item relating to section 116; 
(3) in section 117—
(A) by striking subsection (e); and 
(B) by redesignating subsection (f) as sub-
section (e); 
(4) in section 127, by striking subsection (d); 
(5) in section 127a—
(A) by striking subparagraph (a)(3); 
(B) by redesignating subparagraph (a)(4) 
as subparagraph (a)(3); 
(C) by striking subsection (d); and 
(D) 
by 
redesignating 
subsections 
(e) 
through (i) as subsections (d) through (h), re-
spectively; 
(6) in section 129, by striking subsection (f); 
(7) in section 153, by striking subsection (d); 
(8) in section 184—
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(A) by amending subsection (a) to read as 
follows: 
‘‘(a) AUTHORITY TO ESTABLISH REGIONAL CENTER 
FOR SECURITY STUDIES.—The Secretary of Defense may 
establish such regional centers for security studies as he 
deems necessary and appropriate.’’; 
(B) by striking subsection (b); and 
(C) by redesignating subsection (c) as sub-
section (b); 
(9) for section 228—
(A) by repealing this entire section in 
chapter 9; and 
(B) by amending the table of sections at 
the beginning of such chapter by striking the 
item relating to section 228; 
(10) in section 401—
(A) by striking subsection (d); and 
(B) by redesignating subsection (e) as sub-
section (d); 
(11) in section 437—
(A) by striking subsections (b) and (c); 
(B) by redesignating subsection (d) as sub-
section (b); 
(12) in section 482—
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(A) by repealing this entire section in 
chapter 23; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 482; 
(13) in section 483—
(A) by repealing this entire section in 
chapter 23; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 483; 
(14) in section 484—
(A) by repealing this entire section in 
chapter 23; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 484; 
(15) in section 487—
(A) by repealing this entire section in 
chapter 23; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 487; 
(16) in section 520c—
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(A) by striking subsections (b) and (c); 
and 
(B) by striking the designator and the 
catch line in the preceding matter; 
(C) by amending the section title to read: 
‘‘§ 520c. Provision of meals and refreshments 
for recruiting purposes’’; and 
(D) by amending the table of sections at 
the beginning of chapter 31 by replacing the 
item relating to section 520c with the following 
new item:
‘‘520c. Provision of meals and refreshments for recruiting purposes.’’;
(17) in section 664(i), (4)(F)(ii), by striking 
‘‘and notifies Congress upon each approval, pro-
viding the criteria that led to that approval’’; 
(18) in section 983(e)(1), by striking ‘‘and to 
Congress’’; 
(19) in section 986, by striking subsection (e); 
(20) in section 1060—
(A) by striking subsection (d); and 
(B) by redesignating subsections (e), 
through (g) as subsections (d) through (f) re-
spectively; 
(21) in section 1130—
(A) by striking subsection (b); and
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(B) by redesignating subsections (c) and 
(d) as subsections (b) and (c), respectively; 
(22) in section 1557—
(A) by striking subsection (e); and 
(B) by redesignating subsection (f) as sub-
section (e); 
(23) in section 1563—
(A) by repealing this entire section in 
chapter 80; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 1563; 
(24) in section 1597, by striking subsections (c) 
through (e); 
(25) in section 2010—
(A) by striking subsection (b); and 
(B) by redesignating subsections (c) and 
(d) as subsections (b) and (c), respectively; 
(26) in section 2011, by striking subsection (e). 
(27) in section 2166, by striking subsection (h); 
(28) in section 2208, in subsection (j)(2), by 
striking ‘‘and notifies Congress regarding the rea-
sons for the waiver’’; 
(29) in section 2212—
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(A) by striking subsections (d) and (e); 
and 
(B) by redesignating subsection (f) as sub-
section (d);
(30) in section 2214—
(A) by striking subsection (c); and 
(B) by redesignating subsection (d) as sub-
section (e); 
(31) in section 2216—
(A) by striking subsection (i); and 
(B) by redesignating subsection (j) as sub-
section (i); 
(32) in section 2222—
(A) by repealing this entire section in 
chapter 131; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 2222; 
(33) in section 2255(b)—
(A) by striking paragraph (2); and 
(B) by striking the designator ‘‘(1)’’ after 
the catch line; 
(34) in section 2281—
(A) by striking subsection (d); and
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(B) by redesignating subsection (e) as sub-
section (d); 
(35) in section 2282—
(A) by repealing this entire section in 
chapter 136; and 
(B) by amending the table of sections for 
such chapter by striking the item relating to 
section 2282; 
(36) in section 2306b—
(A) by striking subsection (i); 
(B) in subsection (l)—
(i) by striking paragraphs (1) and (6); 
(ii) by redesignating paragraphs (2) 
through (10) of subsection (l) as para-
graphs (1) through (8), respectively; and 
(C) 
by 
redesignating 
subsections 
(j) 
through (l) as subsections (i) through (k), re-
spectively; 
(37) in section 2327(c)(1)—
(A) in subparagraph (A), by striking 
‘‘after the date on which such head of an agen-
cy submits to Congress a report on the con-
tract’’ and inserting ‘‘if in the best interests of 
the government’’; 
(B) by striking subparagraph (B); and
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(C) by redesignating subparagraph (C) as 
subparagraph (B); 
(38) in section 2350a—
(A) by striking subsection (f); and 
(B) in subsection (g), by striking para-
graph (3); 
(39) in section 2350b—
(A) by striking subsection (d); 
(B) by redesignating subsections (e), (f), 
and (g) as subsections (d), (e), and (f), respec-
tively; 
(40) in section 2350j—
(A) by striking subsection (e); and 
(B) by redesignating subsections (f) and 
(g) as subsections (e) and (f), respectively; 
(41) in section 2367, by striking subsections (c) 
and (d); 
(42) in section 2374a—
(A) by striking subsection (e); and 
(B) by redesignating subsection (f) as sub-
section (e); 
(43) in section 2401—
(A) in subsection (a), by striking ‘‘only as 
provided in subsection (b)’’ both times such 
phrase appears in the subsection;
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(B) by striking subsection (b); and 
(C) 
by 
redesignating 
subsections 
(c) 
through (f) as subsections (b) through (e), re-
spectively; 
(44) in section 2410i, in subsection (c), by 
striking the last sentence; 
(45) in section 2410m, by striking subsection 
(c); 
(46) in section 2457—
(A) by striking subsection (d); and 
(B) by redesignating subsections (e) and 
(f) as subsections (d) and (e), respectively; 
(47) in section 2461a—
(A) by striking subsection (d); and 
(B) by redesignating subsection (e) as sub-
section (d); 
(48) in section 2464, by striking paragraph (3) 
in subsection (b); 
(49) in section 2467, by striking subsection (c); 
(50) in section 2472, by striking subsection (b); 
(51) in section 2493, by striking subsection (g); 
(52) for section 2504—
(A) by repealing the entire section in chap-
ter 148; and
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(B) by amending the section of tables for 
such chapter by striking all references to sec-
tion 2504; 
(53) in section 2515, by striking subsection (d); 
(54) in section 2521, by striking subsection (e); 
(55) in section 2536—
(A) by striking paragraph (2) in subsection 
(b), and by striking designator (1) after the 
catch line; and 
(B) by redesignating subparagraphs (A) 
and (B) as paragraphs (1) and (2), respectively; 
and 
(C) by redesignating subparagraphs (i) and 
(ii) as subparagraphs (A) and (B), respectively; 
(56) in section 2537—
(A) by striking subsection (b); and 
(B) by redesignating subsection (c) as sub-
section (b); 
(57) in section 2541d—
(A) by striking subsection (b); and 
(B) by striking the ‘‘(a)’’ and the catch 
line in the remaining matter; 
(58) in section 2561—
(A) by striking subsections (c), (d) and (f); 
and
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(B) by redesignating subsection (e) as sub-
section (c); 
(59) in section 2563, by striking ‘‘and notifies 
Congress regarding the reasons for the waiver’’ in 
subsection (c)(2); 
(60) in section 2631, by striking the last sen-
tence in subsection (b)(3); 
(61) in section 2645—
(A) by striking subsection (d); 
(B) by striking subsection (g); and
(C) by redesignating subsections (e), (f), 
and (h) as subsections (d), (e), and (f), respec-
tively; 
(62) in section 2662—
(A) by striking subsection (e); 
(B) by redesignating subsections (f) and 
(g) as subsections (e) and (f), respectively; and 
(C) in subsection (f), as redesignated by 
subparagraph (B), by striking ‘‘, and the re-
porting requirement set forth in subsection (e) 
must not apply with respect to a real property 
transaction otherwise covered by that sub-
section,’’; 
(63) in section 2667a (c)—
(A) by striking paragraph (2);
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(B) by striking designator (1) after the 
catch line; 
(64) in section 2676, in subsection (d), by strik-
ing all after ‘‘is approved by the Secretary con-
cerned’’ and inserting a period; 
(65) in section 2680, by striking subsection (e); 
(66) in section 2688—
(A) by striking subsection (e); 
(B) 
by 
redesignating 
subsections 
(f) 
through (i) as subsections (e) through (h), re-
spectively; and 
(C) in subsection (f), as redesignated by 
subparagraph (B), by striking the last sentence; 
(67) in section 2696—
(A) by striking subsections (c) and (d); 
and 
(B) by redesignating subsection (e) as sub-
section (c); 
(68) in section 2703(b)(2)—
(A) by striking subparagraph (B); 
(B) by striking the designator ‘‘(A)’’ which 
precedes ‘‘determines that permanent reloca-
tion—’’;
104
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(C) by striking the dash that follows ‘‘such 
paragraph unless the Secretary’’ in paragraph 
(2); 
(D) by realigning the previously designated 
subparagraph (A) to follow at the end of para-
graph (2); and 
(E) by redesignating clauses (i) through 
(iii) as subparagraphs (A) through (C), respec-
tively; 
(69) in section 2805—
(A) in subsection (b), by striking para-
graph (2); and 
(B) by striking the designator ‘‘(1)’’ that 
precedes the remaining matter; 
(70) in section 2807—
(A) by striking subsections (b) and (c); 
and 
(B) by redesignating subsection (d) as sub-
section (b); 
(71) in section 2809, by striking subsection (f); 
(72) in section 2811—
(A) by striking subsection (d); and 
(B) by redesignating subsection (e) as sub-
section (d); 
(73) in section 2812—
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(A) in subsection (c), by striking para-
graph (1); 
(B) by striking the designator ‘‘(2)’’ that 
precedes the remaining matter; 
(74) in section 2813, by striking subsection (c); 
(75) in section 2815—
(A) by repealing this entire section in 
chapter 169; and 
(B) by amending the table of section at the 
beginning of such chapter by striking the item 
relating to section 2815; 
(76) in section 2825—
(A) in subparagraph (b)(1)(B)—
(i) by striking clause (ii); 
(ii) by striking ‘‘, and’’ at the end of 
clause (i); and 
(iii) by striking the designator ‘‘(i)’’ in 
the remaining text following ‘‘in the pre-
ceding sentence if’’; 
(B) in subsection (c)(1)—
(i) by striking subparagraphs (C) and 
(D); 
(ii) by inserting ‘‘and’’ at the end of 
subparagraph (A); and
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(iii) by striking the semicolon at the 
end of subparagraph (B) and inserting a 
period; 
(77) in section 2826—
(A) by striking subsection (b); and 
(B) 
by 
redesignating 
subsections 
(c) 
through (i) as subsections (b) through (h), re-
spectively; 
(78) in section 2827—
(A) by striking subsection (b); and 
(B) by striking ‘‘(a) Subject to subsection 
(b), the Secretary’’ and inserting ‘‘The Sec-
retary’’; 
(79) in section 2828—
(A) by striking subsection (f); and 
(B) by redesignating subsection (g) as sub-
section (f); 
(80) in section 2835—
(A) by striking subsections (b) and (g); 
(B) 
by 
redesignating 
subsections 
(c) 
through (h) as subsections (b) through (f), re-
spectively; and 
(C) in subsection (a), by striking ‘‘Subject 
to subsection (b), the Secretary’’ and inserting 
‘‘The Secretary’’;
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(81) in section 2836—
(A) in subsection (a), by striking ‘‘Subject 
to subsection (b), the Secretary’’ and inserting 
‘‘The Secretary’’; 
(B) by striking subsection (b); 
(C) by striking subsection (f); and 
(D) 
by 
redesignating 
subsections 
(c) 
through (g) as subsections (b) through (e), re-
spectively;
(82) in section 2837—
(A) in subsection (c)—
(i) by striking paragraph (2); and 
(ii) by striking the designator ‘‘(1)’’ 
after the catch line and preceding the re-
maining matter; 
(B) by striking subsection (f); and 
(C) by redesignating subsections (g) and 
(h) as subsections (f) and (g), respectively; 
(83) in section 2853—
(A) in subsection (c), by striking para-
graphs (2) and (3); 
(B) in the remaining matter, by striking 
the designator ‘‘(1)’’ and the dash and realign-
ing the paragraph to read as a subsection; and
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HR 1588 IH 
(C) by striking the semicolon at the end of 
the remaining matter and inserting a period; 
(84) in section 2854—
(A) by striking subsection (b); and 
(B) by striking ‘‘(a) Subject to subsection 
(b), the’’ in the preceding matter and inserting 
‘‘The’’; 
(85) in section 2854a—
(A) by striking subsection (c); and 
(B) 
by 
redesignating 
subsections 
(d) 
through (g) as subsections (c) through (f), re-
spectively; 
(86) in section 2865—
(A) in subsection (e), by striking para-
graph (2); and 
(B) by striking subsection (f); and 
(C) by striking designator (1) after the 
catch line; 
(87) in section 2866—
(A) in subsection (c), by striking para-
graph (2); and 
(B) by striking designator (1) after the 
catch line; 
(88) in section 2867, by striking subsection (c); 
(89) in section 2875, by striking subsection (e);
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HR 1588 IH 
(90) in section 2884—
(A) by striking subsection (b); 
(B) by striking the designator ‘‘(1)’’ that 
follows the catch line in the remaining matter; 
(C) by striking the designator before sub-
paragraph (2) and inserting ‘‘(b) CONTENT OF 
REPORTS.—’’ to redesignate that subparagraph 
as a subsection; 
(D) by amending the section title to read: 
‘‘§ 2884. Project reports’’; and 
(E) by amending the table of sections at 
the beginning of such chapter 169 by replacing 
the item relating to section 2884 with the fol-
lowing new item:
‘‘2884. Project reports.’’;
(91) in section 2902—
(A) in subsection (g), by striking para-
graph (2); and 
(B) by striking designator (1) after the 
catch line; 
(92) in section 5143, by striking subsection (e); 
(93) in section 6954—
(A) by striking subsection (f); and 
(B) by redesignating subsection (g) as sub-
section (f); 
(94) in section 7049—
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(A) by striking subsection (c); and 
(B) 
by 
redesignating 
subsections 
(d) 
through (g) as subsections (c) through (f), re-
spectively; 
(95) in section 9356—
(A) by striking subsection (c); 
(B) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively; and 
(C) in subsection (a), by striking ‘‘Subject 
to subsection (c), the Secretary’’ and inserting 
‘‘The Secretary’’; 
(96) in section 9514—
(A) by striking subsection (c); 
(B) by striking subsection (f); and 
(C) by redesignating subsection (g) as sub-
section (f); 
(97) in section 12302—
(A) in subsection (b), by striking the last 
sentence; and 
(B) by striking subsection (d); and 
(98) in section 16137—
(A) by repealing this entire section in 
chapter 1606; and
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HR 1588 IH 
(B) 
by 
redesignating 
subsections 
(d) 
through (f) as subsections (c) through (e), re-
spectively; and 
(2) by repealing section 2868. 
(i) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1993.—The National Defense Authoriza-
tion Act for Fiscal Year 1993 (Public Law 102–484; 106 
Stat. 2367, 2439, 2516, and 2609 respectively) is amend-
ed—
(1) in section 324, by striking subsection (b), 
and by striking the designator ‘‘(a)’’ prior to ‘‘Sense 
of Congress’’ in the remaining matter; 
(2) in section 722, by striking subsection (d); 
(3) in section 1082(b)—
(A) by striking subparagraph (1)(B); 
(B) by striking the dash in subsection (b) 
of section 1082; and 
(C) by striking the designator ‘‘(A)’’ pre-
ceding the remaining matter, and realigning it 
to read as a paragraph; and 
(4) in section 2827—
(A) by striking subsection (b); and 
(B) by redesignating subsection (c) as sub-
section (b).
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(j) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1994.—The National Defense Authoriza-
tion Act for Fiscal Year 1994 (Public Law 103–160; 107 
Stat. 1659 and 1931 respectively) is amended—
(1) by repealing section 542; and 
(2) in section 2924, by striking subsection (b). 
(k) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1995.—The National Defense Authoriza-
tion Act for Fiscal Year 1995 (Public Law 103–337; 108 
Stat. 2804 and 2890, respectively) is amended—
(1) in section 721—
(A) by striking subsection (h); and 
(B) by redesignating subsection (i) as sub-
section (h); and 
(2) in section 1305, by striking subsection (h). 
(l) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1996.—Section 2840 of the National De-
fense Authorization Act for Fiscal Year 1996 (Public Law 
104–106; 110 Stat. 564) is amended—
(1) in subsection (a)—
(A) by striking paragraph (4); and 
(B) by redesignating paragraph (5) as 
paragraph (4); and 
(2) in subsection (b)—
(A) by striking paragraph (4); and
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(B) by redesignating paragraph (5) as 
paragraph (4). 
(m) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1997.—The National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110 
Stat. 2480 and 2653, respectively) is amended—
(1) in section 324, by striking subsection (c); 
and 
(2) in section 1065, by striking subsection (b). 
(n) OMNIBUS CONSOLIDATED APPROPRIATIONS ACT, 
1997.—Section 8009 of the Omnibus Consolidated Appro-
priations Act, 1997 (Public Law 104–208; 110 Stat. 
3009–89) is amended—
(1) by striking ‘‘unless the congressional de-
fense committees have been notified at least thirty 
days in advance of the proposed contract award’’; 
(2) by striking the comma after ‘‘year’’; and 
(3) by striking the colon before ‘‘Provided’’. 
(o) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1998.—Section 349 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105–
85; 111 Stat. 1690) is amended by striking subsection (e). 
(p) STROM THURMOND NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 1999.—The Strom 
Thurmond National Defense Authorization Act for Fiscal
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HR 1588 IH 
Year 1999 (Public Law 105–261; 112 Stat. 2075 and 
2155, respectively) is amended—
(1) in section 745(e)—
(A) by striking paragraph (2); and 
(B) by striking the designator ‘‘(1)’’ fol-
lowing the catch line in the preceding matter; 
and 
(2) by repealing section 1223. 
(q) DEPARTMENT
OF DEFENSE APPROPRIATIONS 
ACT, 1999.—Section 8005 of the Department of Defense 
Appropriations Act, 1999 (Public Law 105–262; 112 Stat. 
2297) is amended by striking ‘‘Provided further, That the 
Secretary of Defense shall notify the Congress promptly 
of all transfers made pursuant to this authority or any 
other authority in this Act:’’. 
(r) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2000.—The National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113 
Stat. 542, 697, 706, 748, 756, 779, and 798, respectively) 
is amended—
(1) in section 212, by striking subsection (c); 
(2) in section 724, by striking subsection (e); 
(3) by repealing section 811; 
(4) by repealing section 1025; 
(5) in section 1039, by striking subsection (b);
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HR 1588 IH 
(6) in section 1201—
(A) by striking subsections (d) and (e); 
and 
(B) by redesignating subsection (f) as sub-
section (d); and 
(7) in section 1402, by striking subsection 
(b)(2).
(s) MILITARY CONSTRUCTION APPROPRIATIONS ACT, 
2001.—The Military Construction Appropriations Act, 
2001 (Public Law 106–246; 114 Stat. 517 and 518, re-
spectively) is amended—
(1) by repealing section 125; and 
(2) in section 127, by striking all that follows 
after ‘‘including flag and general officer quarters’’ 
and inserting a period. 
(t) DEPARTMENT
OF DEFENSE APPROPRIATIONS 
ACT, 2001.—Section 8019 of the Department of Defense 
Appropriations Act, 2001 (Public Law 106–259; 114 Stat. 
678;) is amended by striking the last sentence. 
(u) FLOYD D. SPENCE NATIONAL DEFENSE AU-
THORIZATION ACT FOR FISCAL YEAR 2001.—The Floyd 
D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (Public Law 106–398 Appendix; 114 Stat. 
1654A–28 and 1654A–247, respectively) is amended—
(1) by repealing section 131;
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(2) in section 1006, by striking subsection (c); 
and 
(3) by repealing section 1233. 
(v) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2002.—The National Defense Authoriza-
tion Act for Fiscal Year 2002 (Public Law 107–107; 115 
Stat. 1180 and 1204, respectively) is amended in section 
804(a), by striking ‘‘of each of years 2003 through 2006’’ 
and inserting ‘‘2003,’’. 
(w) DEPARTMENT OF DEFENSE AND EMERGENCY 
SUPPLEMENTAL APPROPRIATIONS FOR RECOVERY FROM 
AND RESPONSE TO TERRORIST ATTACKS ON THE UNITED 
STATES ACT, 2002.—Section 8009 of the Department of 
Defense and Emergency Supplemental Appropriations for 
Recovery From and Response To Terrorist Attacks on the 
United States Act, 2002 (Public Law 107–117; 115 Stat. 
2249; 10 U.S.C. 401 note) is amended by striking ‘‘, and 
these obligations shall be reported to the Congress as of 
September 30 of each year’’. 
(x) SENATE EXECUTIVE RESOLUTION 75 (105TH 
CONGRESS, 1ST SESSION, AGREED TO BY THE SENATE 
ON APRIL 24, 1997).—Section 2, Condition 11, paragraph 
(F), of Senate Executive Resolution 75, a provision of the 
Senate’s advice and consent to the ratification of the
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Chemical Weapons Convention (Treaty Doc. 103–21), is 
repealed. 
Subtitle D—Other Matters 
SEC. 931. COMBATANT COMMANDS INITIATIVES FUND. 
(a) SUBSTITUTION OF THE TERM ‘‘CINC’’.—Section 
166a of title 10, United States Code, is amended by strik-
ing ‘‘CINC’’ wherever it appears and inserting ‘‘Combat-
ant Commander’’. 
(b) FUNDS AUTHORIZED.—Subsection (e)(1) of such 
title is amended—
(1) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$7,000,000’’ and inserting ‘‘$15,000,000’’; 
(2) 
in 
subparagraph 
(B), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$10,000,000’’; and 
(3) 
in 
subparagraph 
(C), 
by 
striking 
‘‘$2,000,000’’ and inserting ‘‘$10,000,000’’. 
SEC. 932. CONSOLIDATING THE FINANCIAL MANAGEMENT 
OF FACILITIES IN THE NATIONAL CAPITAL 
REGION 
AND 
DESIGNATED 
ALTERNATE 
SITES. 
Section 2674 of title 10, United States Code, is 
amended—
(1) in subsection (b)(1), by striking ‘‘of the De-
partment of Defense, and located’’ and inserting ‘‘of
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the Department of Defense that is either on the 
Pentagon Reservation or’’; 
(2) in subsection (d), by inserting before the pe-
riod at the end the following: ‘‘or at facilities occu-
pied by the Department of Defense in the National 
Capital Region’’; 
(3) in subsection (e)—
(A) in paragraph (1), by striking ‘‘pursu-
ant to subsection (d)’’ and inserting ‘‘or at fa-
cilities occupied by the Department of Defense 
in the National Capital Region pursuant to sub-
section (d). Any residual balance in the Build-
ings Maintenance Fund shall be transferred to 
the Pentagon Reservation Maintenance Revolv-
ing Fund’’; and 
(B) in paragraph (2), by inserting before 
the period at the end the following: ‘‘and at fa-
cilities occupied by the Department of Defense 
in the National Capital Region.’’; 
(4) in subsection (f)(1)—
(A) by inserting ‘‘—(A)’’ after the ‘‘The 
Pentagon Reservation means’’; 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and
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(C) by adding at the end the following new 
subparagraph: 
‘‘(B) notwithstanding section 2682 of this 
title, such other areas of land, locations, or 
physical facilities of the Department of Defense 
as the Secretary of Defense may determine are 
necessary to designate as part of the Pentagon 
Reservation in order to meet continuity of oper-
ations or other related national security needs 
of the Department.’’. 
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters 
SEC. 1001. PAYMENT OF FULL REPLACEMENT VALUE FOR 
PERSONAL PROPERTY CLAIMS. 
Section 2636 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(c) The Secretary of Defense or the Secretary of a 
military department may procure from commercial trans-
portation service providers full replacement value coverage 
for household goods shipments provided at government ex-
pense without regard to the dollar limitations contained 
in title 37, United States Code, Section 3721, relative to 
claims for loss or damages. Under such contracts, 
servicemembers will be reimbursed full replacement value,
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if warranted, and such amounts may be deducted from 
the amounts due the carriers if settlement is not reached 
between the servicemember and the carrier.’’. 
SEC. 1002. RESTORATION OF AUTHORITY TO ENTER INTO 
12-MONTH LEASES AT ANY TIME DURING THE 
FISCAL YEAR. 
Section 2410a(a) of title 10, United States Code, is 
amended by inserting after ‘‘severable services’’ the fol-
lowing: ‘‘and the lease of real or personal property, includ-
ing the maintenance of such property when contracted for 
as part of the lease agreement,’’. 
SEC. 1003. AUTHORITY TO PROVIDE REIMBURSEMENT FOR 
CELLULAR TELEPHONE USE. 
(a) GENERAL AUTHORITY.—The Secretary of De-
fense is authorized to reimburse employees on a flat-rate 
basis for cellular telephone used on privately-owned cel-
lular phones when on official government business. 
(b) REIMBURSEMENT RATE.—The Secretary of De-
fense may prescribe the cellular phone flat reimbursement 
rate. This reimbursement rate shall not exceed the equiva-
lent Government costs of providing a cellular telephone to 
employees on official Government business.
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SEC. 1004. REIMBURSEMENT FOR RESERVE INTELLIGENCE 
SUPPORT. 
(a) IN GENERAL.—Chapter 1003 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 10115. Reimbursement for reserve intelligence sup-
port 
‘‘The Secretary of Defense or the Secretary con-
cerned shall reimburse a Reserve or National Guard unit 
or organization for the pay, allowances, or other expenses 
incurred by the Reserve or National Guard unit or organi-
zation when a member of the Reserve or National Guard 
unit or organization provides intelligence support, counter-
intelligence support, or intelligence and counterintelligence 
support to Combatant Commands, Defense Agencies, and 
Joint Intelligence Activities, including but not limited to 
the activities and programs within the National Foreign 
Intelligence Program, the Joint Military Intelligence Pro-
gram, and the Tactical Intelligence and Related Activities. 
Reimbursement shall be paid out of funds available for 
operations and maintenance of the military departments, 
combatant commands, or Defense Agencies.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘10115. Reimbursement for reserve intelligence support.’’.
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ment of pay and allowances of Special Operations Reserve 
Component personnel performing duty in connection with 
training and activities related to the clearing of landmines 
for humanitarian purposes. 
Subtitle B—Naval Vessels and 
Shipyards 
SEC. 1011. REIMBURSEMENT TO THE NAVY FOR ASSIST-
ANCE PROVIDED IN SUPPORT OF CERTAIN 
SHIP AND SHIPBOARD EQUIPMENT TRANS-
FERS. 
(a) IN GENERAL.—Chapter 633 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 7316. Reimbursement for assistance provided in 
support of certain ship and shipboard 
equipment transfers 
‘‘(a) AUTHORITY TO PERFORM WORK.—The Sec-
retary of the Navy may provide assistance in support of 
any ship or shipboard equipment transfer under sections 
2572, 7306, 7307, and 7545 of this title, or under any 
other authority, in connection with inactive decommis-
sioned Navy-owned vessels maintained and located at 
Navy facilities. 
‘‘(b) REIMBURSEMENT.—The Secretary may require 
the entities receiving assistance under subsection (a) to
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reimburse the Navy for amounts expended in providing 
such assistance. 
‘‘(c) DEPOSIT
OF FUNDS RECEIVED.—Funds re-
ceived under subsection (b) shall be credited to the appro-
priations supporting the maintenance and operation of the 
Navy Inactive Ships Management Office for the fiscal year 
in which the funds are received, to merge with and become 
available for the same purposes and period as the accounts 
to which they are credited.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘7316. Reimbursement for assistance provided in support of certain ship and 
shipboard equipment transfers.’’.
SEC. 1012. VESSELS STRICKEN FROM NAVAL VESSEL REG-
ISTER: USE FOR EXPERIMENTAL PURPOSES.
Section 7306a of title 10, United States Code, is 
amended—
(1) in subsection (b)—
(A) in paragraph (1), by adding at the end 
the following new sentence: ‘‘Material and 
equipment stripped from the vessel may be sold 
by a contractor or a designated sales agent on 
behalf of the Navy.’’; and 
(B) in paragraph (2), by striking ‘‘scrap-
ping services’’ and all that follows through the
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end of the paragraph and inserting ‘‘services 
needed for such stripping and for environmental 
remediation required for the use of a vessel for 
experimental purposes. Amounts received which 
are in excess of amounts needed for reimburse-
ment of those costs shall be deposited into the 
account from which the stripping and environ-
mental remediation expenses were incurred and 
shall be available for stripping and environ-
mental remediation of other vessels used for ex-
perimental purposes.’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(c) EXPERIMENTAL
PURPOSES
DEFINED.—For 
purposes of this section, the term ‘experimental purposes’ 
includes vessels used in Navy sink exercises and for target 
use.’’. 
SEC. 1013. AUTHORIZE TRANSFER OF VESSELS STRICKEN 
FROM THE NAVAL VESSEL REGISTER FOR 
USE AS ARTIFICIAL REEFS. 
Chapter 633 of title 10, United States Code, is 
amended by inserting after section 7306a the following 
new section:
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‘‘§ 7306b. Vessels stricken from Naval Vessel Register; 
transfer by gift or otherwise for use as 
artificial reefs 
‘‘(a) AUTHORITY TO MAKE TRANSFER.—Subject to 
subsections (c) and (d) of section 602 of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C. 
474), the Secretary of the Navy may transfer, by gift or 
otherwise, any vessel stricken from the Naval Vessel Reg-
ister to any State, Commonwealth, or possession of the 
United States or any municipal corporation or political 
subdivision thereof. 
‘‘(b) VESSEL TO BE USED AS ARTIFICIAL REEF.—
An agreement for the transfer of a vessel under subsection 
(a) shall require that—
‘‘(1) the transferee use, site, construct, monitor 
and manage the vessel only as an artificial reef in 
accordance with the requirements of chapter 35 of 
title 33, except that the transferee also may use the 
artificial reef to enhance diving opportunities if that 
use does not have an adverse effect on fishery re-
sources, as defined in section 1802(14) of the Mag-
nuson-Stevens Fishery Conservation and Manage-
ment Act of 1976, as amended (Public Law 100–
627; 16 U.S.C. 1802); and 
‘‘(2) the transferee shall obtain and bear all of 
the responsibility for complying with all of the appli-
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cable federal, state, interstate, and local permits for 
siting, constructing, monitoring and managing a ves-
sel as an artificial reef. 
‘‘(c) ADDITIONAL TERMS.—The Secretary may re-
quire such additional terms in connection with the convey-
ance authorized by this section as the Secretary considers 
appropriate. 
‘‘(d) COST SHARING ON TRANSFERS.—The Depart-
ment of the Navy may share with the recipient any of the 
costs associated with transferring the vessel under this 
section. 
‘‘(e) APPLICATION FOR MORE THAN ONE VESSEL.—
A State, Commonwealth, or possession of the United 
States, or any municipal corporation or political subdivi-
sion thereof, may apply for more than one vessel under 
this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 7306a the following new 
item:
‘‘7306b. Vessels stricken from Naval Vessel Register; transfer by gift or other-
wise for use as artificial reefs.’’.
SEC. 1014. REPEAL OF THE SHIPBUILDING CAPABILITY 
PRESERVATION AGREEMENT. 
(a) IN GENERAL.—Section 7315 of title 10, United 
States Code, is repealed.
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(b) SAVINGS PROVISION.—Agreements entered into 
under the authority of section 7315 prior to the date of 
enactment of this Act shall continue to remain in full force 
and effect. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 633 of such title is amended 
by striking the item relating to section 7315. 
Subtitle C—Counter-Drug 
Activities 
SEC. 1021. EXTEND AUTHORITY FOR USE OF COUNTER-
DRUG ACTIVITIES. 
(a)(1) AUTHORITY.—In fiscal years 2004 and 2005, 
the Secretary of Defense may use funds available for drug 
interdiction and counter-drug activities to provide assist-
ance to the Government of Colombia to support a unified 
campaign against narcotics trafficking, to support a uni-
fied campaign against activities by organizations des-
ignated as terrorist organizations such as the Revolu-
tionary Armed Forces of Colombia, the National Libera-
tion Army, and the United Self-Defense Forces of Colom-
bia, and to take actions to protect human health and wel-
fare in emergency circumstances, including undertaking 
rescue operations.
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(2) The authority in this section is in addition to au-
thorities currently available to provide assistance to Co-
lombia. 
(b) APPLICATION TO FUNDS.—Sections 556, 567, 
and 568 of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 2002 (Public 
Law 107–115; 115 Stat. 2160, 2165 and 2166, respec-
tively), section 8093 of the Department of Defense Appro-
priations Act, 2002 (Public Law 107–248; 116 Stat. 
1558), and the numerical limitations on the number of 
United States military personnel and United States indi-
vidual civilian contractors in section 3204(b)(1) of the 
Military Construction Appropriations Act, 2001 (Public 
Law 106–246; 114 Stat. 575), as amended, shall be appli-
cable to funds made available pursuant to the authority 
contained in subsection (a). 
(c) PROHIBITION.—No United States Armed Forces 
personnel or United States civilian contractor employed by 
the United States will participate in any combat operation 
in connection with assistance made available under this 
chapter, except for the purpose of acting in self-defense 
or rescuing any United States citizen to include United 
States Armed Forces personnel, United States civilian em-
ployees, and civilian contractors employed by the United 
States.
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SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT FOR 
COUNTER-TERRORISM ACTIVITIES IN THE 
AMERICAS. 
In fiscal year 2004, funds made available to the De-
partment of Defense to support counter-drug activities are 
hereby authorized to support a unified campaign against 
illicit narcotics-trafficking and related activities by identi-
fied organizations engaged in such narcotics-trafficking, to 
support a unified campaign against activities by organiza-
tions in the Americas hemisphere actively engaged in, or 
designated as, terrorist organizations, and to take suffi-
cient action to protect human health and welfare in exi-
gent circumstances, including the undertaking of rescue 
operations throughout Central and South America and the 
waters south of the Continental United States, such as 
the Pacific Ocean east of 120 degrees West, the Gulf of 
Mexico, and the Caribbean Sea. The exercise of this au-
thority by the Secretary of Defense is subject to the con-
currence of the Secretary of State.
SEC. 1023. EXPANSION AND EXTENSION OF AUTHORITY TO 
PROVIDE 
ADDITIONAL 
SUPPORT 
FOR 
COUNTER-DRUG ACTIVITIES. 
Section 1033 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat. 
1881), as amended by the National Defense Authorization
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Act for Fiscal Year 2001 (Public Law 106–398; 114 Stat. 
1654A–255), is amended—
(1) in the section title by striking ‘‘Peru and 
Colombia’’ and inserting ‘‘other countries’’; 
(2) in subsection (a)—
(A) by striking ‘‘2002’’ and inserting 
‘‘2006’’; and 
(B) by striking ‘‘either or both’’ and in-
serting ‘‘any’’; 
(3) by amending subsection (b) to read as fol-
lows: 
‘‘(b) GOVERNMENTS ELIGIBLE TO RECEIVE SUP-
PORT.—The foreign governments eligible to receive 
counter-drug support under this section are as follows: 
‘‘(1) Afghanistan. 
‘‘(2) Ecuador. 
‘‘(3) Pakistan. 
‘‘(4) Tajikistan. 
‘‘(5) Turkmenistan. 
‘‘(6) Uzbekistan 
‘‘(7) Peru; and 
‘‘(8) Colombia.’’; 
(4) in subsection (c)—
(A) 
in 
paragraph 
(2) 
by 
striking 
‘‘riverine’’;
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(B) by amending paragraph (3) to read as 
follows: 
‘‘(3) The maintenance, repair, or upgrade of 
equipment of the government that is used for 
counter-drug activities.’’; and 
(C) by adding at the end the following new 
paragraph (4): 
‘‘(4) The sustainment, including ammunition, of 
counter-drug security forces.’’; 
(5) in subsection (e)(2)—
(A) by striking ‘‘$20,000,000’’ and insert-
ing ‘‘$40,000,000’’; and 
(B) by striking ‘‘1999’’ and inserting 
‘‘2004’’; and 
(6) in subsection (h)—
(A) by amending subsection (h) to read as 
follows: 
‘‘(h) COUNTER-DRUG PLAN.—The Secretary of De-
fense, in consultation with the Secretary of State, shall 
prepare for fiscal year 2004 (and revise as necessary for 
subsequent fiscal years) a counter-drug plan involving the 
governments named in subsection (b) to which support will 
be provided under this section:’’; 
(B) 
in 
paragraph 
(2), 
by 
striking 
‘‘riverine’’;
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(C) 
in 
paragraph 
(7), 
by 
striking 
‘‘riverine’’; 
(D) 
in 
paragraph 
(8), 
by 
striking 
‘‘riverine’’; and 
(E) by amending paragraph (9) to read as 
follows: 
‘‘(9) A detailed discussion of how the counter-
drug program supports the national drug control 
strategy and the national security cooperation goals 
of the United States.’’. 
Subtitle D—Other Department of 
Defense Provisions 
SEC. 1031. PROVISION OF LIVING QUARTERS FOR CERTAIN 
STUDENTS. 
Section 2195 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(d) Notwithstanding the provisions of section 
5911(c), title 5, United States Code, the Director of the 
National Security Agency may provide living quarters 
without charge, or at rates or charges fixed by regulation, 
to a student in the Student Educational Employment Pro-
gram or similar program, as prescribed by the Office of 
Personnel Management, while the student is employed at 
the Agency’s laboratory.’’.
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SEC. 1032. REPEAL OF REQUIRED GRADE FOR DEFENSE 
ATTACHE´ IN FRANCE. 
(a) IN GENERAL.—Section 714 of title 10, United 
States Code, is repealed. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 41 of that title is amend-
ed by striking the item relating to section 714. 
SEC. 1033. NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY. 
(a) DEFINITION OF GEOSPATIAL INTELLIGENCE.—
Section 467 of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(5) The term ‘geospatial intelligence’ means 
the exploitation and analysis of imagery and 
geospatial information to describe, assess, and vis-
ually depict physical features and geographically ref-
erenced activities on the Earth. This term consists 
of imagery, imagery intelligence, and geospatial in-
formation.’’. 
(b) MISSIONS.—Section 442(a) of such title is 
amended to read as follows: 
‘‘(a) NATIONAL SECURITY MISSIONS.—
(1) The National Geospatial-Intelligence Agency 
shall, in support of the national security objectives 
of the United States, provide geospatial intelligence 
consisting of the following: 
‘‘(A) Imagery.
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‘‘(B) Imagery intelligence. 
‘‘(C) Geospatial information. 
‘‘(2) Geospatial intelligence provided in carrying 
out paragraph (1) shall be timely, relevant, and ac-
curate.’’. 
(c) NATIONAL SECURITY ACT CHANGE.—Section 110 
of the National Security Act of 1947 (50 U.S.C. 404(e)) 
is amended by striking ‘‘imagery’’ and inserting 
‘‘geospatial intelligence’’. 
(d) TECHNICAL CHANGES TO TITLE 10.—
(1) The title of chapter 22 of such title is 
amended by striking ‘‘National Imagery and Map-
ping Agency’’ and inserting ‘‘National Geospatial-In-
telligence Agency’’. 
(2) Paragraphs (a) and (b) of section 441 of 
such title are amended by striking ‘‘National Im-
agery and Mapping Agency’’ and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(3) Section 442 of such title is amended by 
striking ‘‘National Imagery and Mapping Agency’’ 
wherever 
it 
appears 
and 
inserting 
‘‘National 
Geospatial-Intelligence Agency’’. 
(4) Paragraphs (a) and (b) of section 443 of 
such title are amended by striking ‘‘National Im-
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agery and Mapping Agency’’ and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(5) Paragraphs (a), (b), (c), and (e) of section 
444 of such title are amended by striking ‘‘National 
Imagery and Mapping Agency’’ and inserting ‘‘Na-
tional Geospatial-Intelligence Agency’’. 
(6) Section 451 of such title is amended by 
striking ‘‘National Imagery and Mapping Agency’’ 
and 
inserting 
‘‘National 
Geospatial-Intelligence 
Agency’’. 
(7) Paragraphs (a) and (b) of section 452 of 
such title are amended by striking ‘‘National Im-
agery and Mapping Agency’’ and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(8) Paragraphs (a) and (b) of section 453 of 
such title are amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ and inserting ‘‘National 
Geospatial-Intelligence Agency’’; and 
(B) by striking ‘‘NIMA’’ and inserting 
‘‘NGA’’. 
(9) Section 454 of such title is amended by 
striking ‘‘National Imagery and Mapping Agency’’ 
and 
inserting 
‘‘National 
Geospatial-Intelligence 
Agency’’.
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(10) Paragraphs (a) and (b) of section 455 of 
such title are amended by striking ‘‘National Im-
agery and Mapping Agency’’ and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(11) Paragraphs (a) and (b) of section 456 of 
such title are amended by striking ‘‘National Im-
agery and Mapping Agency’’ and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(12) Paragraph (b) of section 457 of such title 
is amended by striking ‘‘National Imagery and Map-
ping Agency’’ and inserting ‘‘National Geospatial-In-
telligence Agency’’. 
(13) Paragraphs (a), (b), (c), and (d) of section 
461 of such title are amended by striking ‘‘National 
Imagery and Mapping Agency’’ and inserting ‘‘Na-
tional Geospatial-Intelligence Agency’’. 
(14) Section 1614 of such title is amended by 
striking ‘‘National Imagery and Mapping Agency’’ 
and 
inserting 
‘‘National 
Geospatial-Intelligence 
Agency’’. 
(e) TECHNICAL CHANGES TO THE NATIONAL SECU-
RITY ACT OF 1947.—
(1) Section 3 of the National Security Act of 
1947 (50 U.S.C. 401a) is amended by striking ‘‘Na-
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tional Imagery and Mapping Agency’’ and inserting 
‘‘National Geospatial-Intelligence Agency’’. 
(2) Paragraphs (b) and (d) of section 105 of 
such Act (50 U.S.C. 403–5) are amended by strik-
ing ‘‘National Imagery and Mapping Agency’’ and 
inserting ‘‘National Geospatial-Intelligence Agency’’. 
(3) Paragraph (b) of section 105A of such Act 
(50 U.S.C. 403–5a) is amended by striking ‘‘Na-
tional Imagery and Mapping Agency’’ and inserting 
‘‘National Geospatial-Intelligence Agency’’. 
(4) Section 105C of such Act (50 U.S.C. 403–
5c) is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ wherever it appears and in-
serting ‘‘National Geospatial-Intelligence Agen-
cy’’; and 
(B) and by striking ‘‘NIMA’’ wherever it 
appears and inserting ‘‘NGA’’. 
(5) Paragraph (a) of section 106 of such Act 
(50 U.S.C. 403–6) is amended by striking ‘‘National 
Imagery and Mapping Agency’’ and inserting ‘‘Na-
tional Geospatial-Intelligence Agency’’. 
(6) Paragraphs (a), (b), and (c) of section 110 
of such Act (50 U.S.C. 404e) are amended by strik-
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ing ‘‘National Imagery and Mapping Agency’’ and 
inserting ‘‘National Geospatial-Intelligence Agency’’. 
(f) SEAL.—Section 425 (a) of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(5) The words ‘National Geospatial-Intel-
ligence Agency’, the initials ‘NGA,’ or the seal of the 
National Geospatial-Intelligence Agency.’’. 
Subtitle E—Other Matters 
SEC. 1041. UPDATING DEFINITIONS IN TITLE 10, UNITED 
STATES CODE. 
(a) GENERAL DEFINITIONS.—Subsection (a) of sec-
tion 101 of title 10, United States Code, is amended by 
adding at the end the following new paragraphs: 
‘‘(16) The term ‘appropriate committees of 
Congress’ means the Committee on Armed Services 
and the Committee on Appropriations of the Senate 
and the Committee on Armed Services and the Com-
mittee on Appropriations of the House of Represent-
atives 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 Rep-
resentatives and the Select Committee on Intel-
ligence of the Senate.
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‘‘(17) The term ‘base closure law’ means—
‘‘(A) section 2687 of this title; 
‘‘(B) title II of the Defense Authorization 
Amendments and Base Closure and Realign-
ment Act of 1988 (Public Law 100–526; 10 
U.S.C. 2687 note); 
‘‘(C) the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of 
Public Law 101–510; 10 U.S.C. 2687 note); 
and 
‘‘(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 Authoriza-
tion Act for Fiscal Year 2003. 
‘‘(18) The term ‘Indian tribe’ has the meaning 
given such term in section 102(2) of the Federally 
Recognized Indian Tribe List Act of 1994 (25 
U.S.C. 479a(2)).’’. 
(b) FACILITIES DEFINITIONS.—Section 101 is fur-
ther amended—
(1) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(2) by inserting after subsection (d) the fol-
lowing new subsection (e):
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‘‘(e) FACILITIES AND OPERATIONS.—Unless the con-
text indicates otherwise, the following definitions relating 
to facilities and operations apply to this title:
‘‘(1) The term ‘military munitions’—
‘‘(A) means all ammunition products and 
components produced for or used by the armed 
forces for national defense and security, includ-
ing ammunition products or components under 
the control of the Department of Defense, the 
Coast Guard, the Department of Energy, and 
the National Guard. The term includes confined 
gaseous, liquid, and solid propellants, explo-
sives, pyrotechnics, chemical and riot control 
agents, smokes, incendiaries, bulk explosives 
and chemical warfare agents, chemical muni-
tions, rockets, guided and ballistic missiles, 
bombs, warheads, mortar rounds, artillery am-
munition, small arms ammunition, grenades, 
mines, torpedoes, depth charges, cluster muni-
tions and dispensers, demolition charges, and 
devices and components thereof, and 
‘‘(B) does not include wholly inert items, 
improvised explosive devices, and nuclear weap-
ons, nuclear devices, and nuclear components, 
except that the term does include non-nuclear
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components of nuclear devices that are man-
aged under the nuclear weapons program of the 
Department of Energy after all required saniti-
zation operations under the Atomic Energy Act 
of 1954 (42 U.S.C. 2011, et seq.) have been 
completed. 
‘‘(2) The term ‘operational range’ means—
‘‘(A) a range that is used for range activi-
ties, or 
‘‘(B) a range that is not currently being 
used for range activities, but that is still consid-
ered by the Secretary concerned to be a range, 
is under the jurisdiction, custody, or control of 
the Secretary concerned, and has not been put 
to a new use that is incompatible with range ac-
tivities. 
‘‘(3) The term ‘range’ means a designated land 
or water area set aside, managed, and used to con-
duct research, development, testing, and evaluation 
of military munitions, other ordnance, or weapon 
systems, or to train military personnel in their use 
and handling. Ranges include firing lines and posi-
tions, maneuver areas, firing lanes, test pads, deto-
nation pads, impact areas, electronic scoring sites, 
buffer zones with restricted access and exclusionary
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areas, and airspace areas designated for military use 
according to regulations and procedures established 
by the Federal Aviation Administration such as spe-
cial use airspace areas, military training routes, or 
other associated airspace. 
‘‘(4) The term ‘unexploded ordnance’ means 
military munitions that—
‘‘(A) have been primed, fused, armed, or 
otherwise prepared for action; 
‘‘(B) have been fired, dropped, launched, 
projected, or placed in such a manner as to con-
stitute a hazard to operations, installations, 
personnel, or material; and 
‘‘(C) remain unexploded either by malfunc-
tion, design, or any other cause.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Subsection (e) of section 2710 of title 10, 
United States Code, is amended—
(A) by striking paragraphs (3), (5), and 
(9); and 
(B) by redesignating paragraphs (4), (6), 
(7), (8), and (10) as paragraphs (3), (4), (5), 
(6), and (7), respectively. 
(2) Subsection (d) of section 313 of the Na-
tional Defense Authorization Act for Fiscal Year
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2002 (Public Law 107–107; 115 Stat. 1053), is 
amended by inserting after ‘‘311’’ the following: ‘‘, 
or in section 101 of title 10, United States Code’’. 
(3) Title 10, United States Code, is further 
amended as follows: 
(A) Subsection (c) of section 2801 is 
amended by striking paragraph (4). 
(B) Sections 181, 229, 1107, 2216, 2218, 
2306b, 2366, 2399, 2534, 2667, and 10216 are 
amended by striking ‘‘congressional defense 
committees’’ each place it appears and inserting 
‘‘appropriate committees of Congress’’. 
(C) Subsection (d)(2) of section 181 is 
amended—
(i) by striking ‘‘subsection: (A) The’’ 
and inserting ‘‘subsection, the’’; and 
(ii) by striking paragraph (B). 
(D) Subsection (f) of section 229 is re-
pealed. 
(E) Subsection (f)(4) of section 1107 is 
amended by striking subparagraph (C). 
(F) Subsection (j) of section 2216 is 
amended by striking paragraph (3). 
(G) Subsection (l) of section 2218 is 
amended—
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(i) by striking paragraph (4); and 
(ii) by redesignating paragraph (5) as 
paragraph (4). 
(H) Subsection (l) of section 2306b is 
amended—
(i) by striking paragraph (9); and 
(ii) by redesignating paragraph (10) 
as paragraph (9). 
(I) Subsection (e) of section 2366 is 
amended by striking paragraph (7). 
(J) Subsection (h) of section 2399 is 
amended—
(i) in paragraph (1), by striking ‘‘sec-
tion: (1) The’’ and inserting ‘‘section, the’’; 
and 
(ii) by striking paragraph (2). 
(K) Subsection (h) of section 2667 is 
amended—
(i) by striking paragraphs (1) and (2); 
and 
(ii) by striking ‘‘section: (3) The’’ and 
inserting ‘‘section, the’’. 
(4) Title 10, United States Code, is further 
amended as follows:
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(A) Subsection (f) of section 2490a is 
amended—
(i) by striking ‘‘section: (1) The’’ and 
inserting ‘‘section, the’’; and 
(ii) by striking paragraph (2). 
(B) Section 2705 is amended by striking 
subsection (h). 
(C) Section 2871 is amended—
(i) by striking paragraph (2); and 
(ii) by redesignating paragraphs (3), 
(4), (5), (6), (7), and (8) as paragraphs 
(2), (3), (4), (5), (6), and (7), respectively. 
SEC. 1042. IMPROVING READINESS IN PROVIDING FIRE-
FIGHTING SERVICES. 
Section 2465(b) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(4) to a contract for the performance of a fire-
fighting function for a period of one year or less to 
fill vacant positions created by deployed military fire 
fighters.’’.
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SEC. 1043. DOCUMENTS, HISTORICAL ARTIFACTS, AND OB-
SOLETE OR SURPLUS MATERIEL: LOAN, DO-
NATION, OR EXCHANGE. 
(a) IN GENERAL.—Section 2572 of title 10, United 
States Code, is amended—
(1) in the heading, by striking ‘‘condemned or 
obsolete combat’’ and inserting ‘‘obsolete or sur-
plus’’; 
(2) in subsection (a), by striking ‘‘subsection 
(c)’’ and inserting ‘‘subsection (c)(1)’’; 
(3) in subsection (b), by striking ‘‘subsection 
(c)’’ and inserting ‘‘subsection (c)(2)’’; and 
(4) in subsection (c)—
(A) by striking ‘‘(c) This section’’ and 
‘‘(c)(1) Subsection (a)’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) Subsection (b) applies to the following 
types of property held by a military department or 
the Coast Guard: books, manuscripts, works of art, 
historical artifacts, drawings, plans, models, and ob-
solete or surplus materiel.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of chapter 153 of such title is 
amended by amending the item relating to section 2572
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to read as follows:
‘‘2572. Documents, historical artifacts, and obsolete or surplus combat materiel: 
loan, gift, or exchange.’’.
SEC. 1044. AUTHORITY TO ENSURE DEMILITARIZATION OF 
SIGNIFICANT 
MILITARY 
EQUIPMENT 
FOR-
MERLY OWNED BY THE DEPARTMENT OF DE-
FENSE. 
(a) IN GENERAL.—Chapter 153 of title 10, United 
States Code, is amended by inserting after section 2582 
the following new section: 
‘‘§ 2583. Continued authority to require demilitariza-
tion of significant military equipment 
after disposal 
‘‘(a) AUTHORITY TO REQUIRE DEMILITARIZATON.—
The Secretary of Defense may require any person in pos-
session of significant military equipment formerly owned 
by the Department of Defense—
‘‘(1) to demilitarize the equipment; 
‘‘(2) to have the equipment demilitarized by a 
third party; or 
‘‘(3) to return the equipment to the United 
States Government for demilitarization. 
‘‘(b) COST
AND VALIDATION
OF DEMILITARIZA-
TION.—When the demilitarization of significant military 
equipment is carried out by the person in possession of 
the equipment pursuant to paragraph (1) or (2) of sub-
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section (a), the person shall be solely responsible for all 
demilitarization costs, and the United States shall have 
the right to validate that the equipment has been demili-
tarized. 
‘‘(c) RETURN OF EQUIPMENT TO THE U.S. GOVERN-
MENT.—When the Secretary of Defense requires the re-
turn of significant military equipment for demilitarization 
by the United States Government, the Secretary shall bear 
all costs to transport and demilitarize the equipment. If 
the person in possession of the significant military equip-
ment obtained the property in the manner authorized by 
law or regulation and the Secretary determines that the 
cost to demilitarize and return the property to the person 
is prohibitive, the Secretary shall reimburse the person for 
the fair market value of the property or, if the fair market 
value is not readily ascertainable, the purchase cost of the 
property and for the reasonable transportation costs in-
curred by the person to purchase the equipment. 
‘‘(d) ESTABLISHMENT OF DEMILITARIZATON STAND-
ARDS.—The Secretary of Defense may prescribe by regu-
lation what constitutes demilitarization for each type of 
significant military equipment. 
‘‘(e) EXCEPTIONS.—This section does not apply—
‘‘(1) when a person is in possession of signifi-
cant equipment formerly owned by the Department
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of Defense for the purpose of demilitarizing the 
equipment pursuant to a U.S. Government contract; 
‘‘(2) to small arms weapons issued under the 
Defense Civilian Marksmanship Program established 
in title 36, United States Code; 
‘‘(3) to issues by the Department of Defense to 
museums where demilitarization has been performed 
in accordance with departmental regulations; and 
‘‘(4) to other issues and undemilitarized signifi-
cant military equipment under the provisions of de-
partmental regulations. 
‘‘(f) DEFINITION OF SIGNIFICANT MILITARY EQUIP-
MENT.—In this section, the term ‘significant military 
equipment’ means—
‘‘(1) an article for which special export controls 
are warranted under the Arms Export Control Act 
(22 U.S.C. 2751 et seq.) because of its capacity for 
substantial military utility or capability, as identified 
on the United States Munitions List maintained 
under sect 121.1 of title 22, Code of Federal Regu-
lations; and 
‘‘(2) any other article designated by the Depart-
ment of Defense as requiring demilitarization before 
its disposal.’’.
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(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2583. Continued authority to require demilitarization of significant military 
equipment after disposal.’’.
TITLE XI—DEPARTMENT OF 
DEFENSE CIVILIAN PERSONNEL 
SEC. 1101. POSITION VACANCY PROMOTION CONSIDER-
ATION IN TIME OF WAR OR NATIONAL EMER-
GENCY. 
(a) VACANCY PROMOTION CONSIDERATION.—Section 
14317 of title 10, United States Code, is amended—
(1) in subsection (d), by striking ‘‘If a reserve 
officer’’ and inserting ‘‘Except as provided in sub-
section (e), if a reserve officer’’; and 
(2) in subsection (e), by inserting ‘‘or, in the 
case of an officer who has been ordered to or is serv-
ing on active duty in support of a contingency oper-
ation as defined in section 101(a)(13) of this title, 
a vacancy promotion board’’ after ‘‘mandatory pro-
motion board’’. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 14315(a) of such title is amended by striking ‘‘or, 
as determined by the Secretary concerned, is available to 
occupy a position’’ and inserting ‘‘or, under regulations
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prescribed by the Secretary concerned, is recommended to 
occupy a position’’. 
TITLE XII—MATTERS RELATING 
TO OTHER NATIONS 
Subtitle A—Matters Related to Al-
lies and Friendly Foreign Na-
tions 
SEC. 1201. EXPANSION OF AUTHORITY TO CONDUCT THE 
ARCTIC 
MILITARY 
ENVIRONMENTAL 
CO-
OPERATION PROGRAM. 
Section 327 of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999 (Public Law 
No. 105–261; 112 Stat. 1965), is amended—
(1) in the title, by inserting ‘‘AND WESTERN 
PACIFIC’’ after ‘‘ARCTIC’’; 
(2) by striking subsections (b) and (c); 
(3) by redesignating subsection (a) as sub-
section (b); 
(4) by inserting after the title the following new 
subsection (a): 
‘‘(a) AUTHORITY TO CONDUCT PROGRAM.—Subject 
to subsection (b), the Secretary of Defense, with the con-
currence of the Secretary of State, may conduct the Arctic 
and Western Pacific Military Environmental Cooperation 
Program.’’; and
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(5) in subsection (b), as redesignated by para-
graph (3)—
(A) in paragraph (1)—
(i) by inserting ‘‘and Western Pacific’’ 
after ‘‘Subject to paragraph (2), activities 
under the Arctic’’; 
(ii) by inserting ‘‘and assistance’’ 
after ‘‘shall include cooperative’’; and 
(iii) by striking ‘‘in the Arctic Re-
gion’’; and 
(B) in paragraph (2)—
(i) by inserting ‘‘Western Pacific’’ 
after ‘‘Activities under the Arctic’’; and 
(ii) by striking ‘‘for purposes for 
which funds for Cooperative Threat Reduc-
tion programs have been denied or are pro-
hibited, including the purposes’’. 
SEC. 1202. AUTHORITY TO WAIVE DOMESTIC SOURCE OR 
CONTENT REQUIREMENTS. 
(a) IN GENERAL.—Subchapter V of chapter 148 of 
title 10, United States Code, is amended by adding at the 
end the following new section:
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‘‘§ 2539c. Waiver of domestic source or content re-
quirements 
‘‘(a) AUTHORITY.—Except as provided in subsection 
(f), the Secretary of Defense may waive the application 
of any domestic source requirement or domestic content 
requirement referred to in subsection (b) and thereby au-
thorize the procurement of items that are grown, reproc-
essed, reused, produced, or manufactured—
‘‘(1) in a foreign country that has a reciprocal 
defense procurement memorandum of understanding 
or agreement with the United States; 
‘‘(2) in a foreign country that has a reciprocal 
defense procurement memorandum of understanding 
or agreement with the United States substantially 
from components and materials grown, reprocessed, 
reused, produced, or manufactured in the United 
States or any foreign country that has a reciprocal 
defense procurement memorandum of understanding 
or agreement with the United States; or 
‘‘(3) in the United States substantially from 
components and materials grown, reprocessed, re-
used, produced, or manufactured in the United 
States or any foreign country that has a reciprocal 
defense procurement memorandum of understanding 
or agreement with the United States.
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‘‘(b) COVERED REQUIREMENTS.—For purposes of 
this section: 
‘‘(1) A domestic source requirement is any re-
quirement under law that the Department of De-
fense satisfy its requirements for an item by pro-
curing an item that is grown, reprocessed, reused, 
produced, or manufactured in the United States or 
by a manufacturer that is a part of the national 
technology and industrial base (as defined in section 
2500(1) of this title). 
‘‘(2) A domestic content requirement is any re-
quirement under law that the Department of De-
fense satisfy its requirements for an item by pro-
curing an item produced or manufactured partly or 
wholly from components and materials grown, re-
processed, reused, produced, or manufactured in the 
United States. 
‘‘(c) APPLICABILITY.—The authority of the Secretary 
to waive the application of a domestic source or content 
requirements under subsection (a) applies to the procure-
ment of items for which the Secretary of Defense deter-
mines that—
‘‘(1) application of the requirement would im-
pede the reciprocal procurement of defense items 
under a memorandum of understanding providing
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for reciprocal procurement of defense items between 
a foreign country and the United States in accord-
ance with section 2531 of this title; and 
‘‘(2) such country does not discriminate against 
defense items produced in the United States to a 
greater degree than the United States discriminates 
against defense items produced in that country. 
‘‘(d) LAWS NOT WAIVABLE.—The Secretary of De-
fense may not exercise the authority under subsection (a) 
to waive any domestic source or content requirement con-
tained in any of the following laws: 
‘‘(1) The Small Business Act (15 U.S.C. 631 et 
seq.). 
‘‘(2) The Javits-Wagner-O’Day Act (41 U.S.C. 
et seq.). 
‘‘(3) Sections 2533a, 7309 and 7310 of this 
title. 
‘‘(e) RELATIONSHIP TO OTHER WAIVER AUTHOR-
ITY.—The authority under subsection (a) to waive a do-
mestic source requirement or domestic content require-
ment is in addition to any other authority to waive such 
requirement. 
‘‘(f) CONSTRUCTION WITH RESPECT TO LATER EN-
ACTED LAWS.—This section may not be construed as 
being inapplicable to a domestic source requirement or do-
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mestic content requirement that is set forth in a law en-
acted after the enactment of this section solely on the 
basis of the later enactment.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by insert-
ing after the item relating to section 2539b the following 
new item:
‘‘2539c. Waiver of domestic source or content requirements.’’.
SEC. 1203. AUTHORITY TO EXPEND FUNDS TO RECOGNIZE 
SUPERIOR NONCOMBAT ACHIEVEMENTS OR 
PERFORMANCE BY MEMBERS OF FRIENDLY 
FOREIGN FORCES AND OTHER FOREIGN NA-
TIONALS. 
(a) IN GENERAL—Chapter 53 of title 10, United 
States Code, is amended by inserting after section 1051 
the following new section: 
‘‘§ 1051a. Bilateral or regional cooperation programs: 
expenditure of funds to recognize supe-
rior noncombat achievements or perform-
ance 
‘‘(a) GENERAL AUTHORITY.—The Secretary of De-
fense may expend operations and maintenance funds to 
recognize superior noncombat achievements or perform-
ance, by members of friendly foreign forces and other for-
eign nationals, that significantly enhance or support the 
National Security Strategy of the United States. Activities
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that may be recognized include superior achievement or 
performance that—
‘‘(1) plays a crucial role in shaping the inter-
national security environment in ways that protect 
and promote United States interests; 
‘‘(2) supports or enhances United States over-
seas presence and peacetime engagement activities 
such as defense cooperation initiatives, security as-
sistance training and programs, and training and ex-
ercises with United States Armed Forces; 
‘‘(3) helps to deter aggression and coercion, 
build coalitions, promote regional stability; and 
‘‘(4) serves as role models for appropriate con-
duct by militaries in emerging democracies. 
‘‘(b) LIMITATIONS.—Expenditures for the purchase 
or production of suitable mementos under this section 
shall not exceed the ‘‘minimal value’’ established in ac-
cordance with section 7342(a)(5) of title 5.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1051 the following new 
item:
‘‘1051a. Bilateral or regional cooperation programs: expenditure of funds to rec-
ognize superior noncombat achievements or performance.’’.
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SEC. 1204. ADMINISTRATIVE SUPPORT AND SERVICES FOR 
FOREIGN LIAISON OFFICERS. 
(a) AUTHORITY.—Section 1051a of title 10, United 
States Code, is amended to read as follows: 
‘‘§ 1051a. Administrative support and services for for-
eign liaison officers 
‘‘(a) AUTHORITY.—The Secretary of Defense may 
provide administrative services and support for the per-
formance of duties by any liaison officer of another nation 
while the liaison officer is assigned to the headquarters 
of combatant command, component command, or subordi-
nate operational command of the United States. 
‘‘(b) TRAVEL, SUBSISTENCE, 
AND
OTHER
EX-
PENSES.—The Secretary may pay the travel, subsistence, 
and similar personal expenses of a liaison officer of a de-
veloping nation involved in a coalition while the liaison of-
ficer is assigned temporarily to the headquarters of a com-
batant command, component command, or subordinate 
operational command of the United States, in connection 
with the planning for, or conduct of, a coalition operation, 
if the assignment is requested by the commander of the 
combatant command. 
‘‘(c) REIMBURSEMENT.—To the extent that the Sec-
retary determines appropriate, the Secretary may provide 
the services and support authorized under subsection (a) 
and the expenses authorized by subsection (b) with or
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without reimbursement from (or on behalf of) the recipi-
ents. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘administrative services and sup-
port’ includes base or installation support services, 
office space, utilities, copying services, fire and po-
lice protection, and computer support. 
‘‘(2) The term ‘coalition’ means an ad hoc ar-
rangement between or among the United States and 
one or more other nations for common action.’’. 
SEC. 1205. GEORGE C. MARSHALL EUROPEAN CENTER FOR 
SECURITY STUDIES. 
Section 1306 (b)(1) of the National Defense Author-
ization Act for Fiscal Year 1995 (Public Law 103–337; 
108 Stat. 2892) is amended by striking ‘‘military officers 
and civilian officials of cooperation partner states of the 
North Atlantic Council or the Partnership for Peace’’ and 
inserting ‘‘foreign participants’’. 
SEC. 1206. RESTRICTIONS ON PERMANENT TRANSFER OF 
SIGNIFICANT MILITARY EQUIPMENT. 
(a) IN GENERAL.—Chapter 138 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section:
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‘‘§ 2350l. Restrictions on permanent transfer of sig-
nificant military equipment 
‘‘(a) TRANSFER OF SIGNIFICANT MILITARY EQUIP-
MENT.—Lethal and non-lethal military equipment des-
ignated as significant military equipment (SME), may be 
permanently transferred, with the concurrence of the Sec-
retary of State, only when the transaction is conducted 
as replacement in kind, where the equipment is identical, 
and in situations where the recipient country has an exist-
ing inventory for the SME in question. 
‘‘(b) EXPORT AND TRANSFER LAWS.—The authority 
to transfer SME in accordance with subsection (a) is sub-
ject to all other applicable laws and regulations pertaining 
to export and transfers.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2350l. Restrictions on permanent transfer of significant military equipment.’’.
SEC. 1207. AMENDMENT TO AUTHORITY FOR ACCEPTANCE 
BY ASIA–PACIFIC CENTER FOR SECURITY 
STUDIES OF FOREIGN GIFTS AND DONA-
TIONS. 
Section 2611 of title 10, United States Code, is 
amended—
(1) by striking ‘‘foreign’’ from—
(A) the title;
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(B) subsection (a) in both places it ap-
pears; 
(C) subsection (c); 
(D) subsection (f)—
(i) in the heading; and 
(ii) the first place it appears; and 
(E) from the section title in the table of 
sections in the beginning of the chapter; 
(2) in subsection (a)(1), by adding at the end 
the following sentence: ‘‘Such donations may be ac-
cepted from any agency of the Federal Government, 
any State or local government, any foreign govern-
ment, any foundation or other charitable organiza-
tion (including any that is organized or operates 
under the laws of a foreign country), or any other 
private source in the United States or a foreign 
country.’’; and 
(3) in subsection (f), by striking all after ‘‘serv-
ices’’ and inserting a period. 
SEC. 1208. ADDITION OF INDIVIDUALS AUTHORIZED TO RE-
CEIVE CHECK CASHING AND EXCHANGES OF 
FOREIGN CURRENCY. 
Section 3342(b) of title 31, United States Code, is 
amended—
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(1) by striking ‘‘or’’ at the end of paragraph 
(6); 
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(8) a military member of an allied or coalition 
nation who is part of a joint operation, joint exer-
cise, humanitarian or peacekeeping mission with the 
military forces of the United States, provided that 
such accommodation has been approved by the sen-
ior United States military commander assigned to 
the joint operation or mission, that the allied or coa-
lition nation has guaranteed payment for any defi-
ciency resulting from such accommodation, and that 
accommodations of negotiable instruments are lim-
ited to negotiable instruments drawn on financial in-
stitutions located in the United States or on foreign 
branches of such institutions.’’. 
SEC. 1209. CONTINUATION OF THE REGIONAL DEFENSE 
COUNTERTERRORISM 
FELLOWSHIP 
PRO-
GRAM. 
The Secretary of Defense may pay for all costs asso-
ciated with the attendance of foreign military officers, 
ministry of defense officials, and security officials at
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United States military educational institutions, regional 
centers, conferences, seminars, or other training programs 
conducted under the Regional Defense Counterterrorism 
Fellowship Program, including transportation, travel, and 
subsistence costs. 
SEC. 1210. LOGISTICS SUPPORT FOR FRIENDLY NATIONS. 
Section 2342 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(e) Notwithstanding any other provision of law or 
regulation, the Secretary of Defense, when in the best in-
terests of the United States and subject to the availability 
of appropriations, may provide logistics support, supplies 
and services, on a reimbursable or non–reimbursable basis, 
without a completed cross-servicing or foreign military 
sales agreement, to the following countries participating, 
with or on behalf of the United States, in an exercise, a 
contingency operation, as defined by section 101 of this 
title, or war—
‘‘(1) North Atlantic Treaty Organization bodies 
and member countries; 
‘‘(2) Countries permitting stationing of United 
States Armed Forces, importation of United States 
military equipment and materials and porting of 
ships;
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‘‘(3) Counties holding a defense alliance with 
the United States; and 
‘‘(4) Countries hosting military exercises involv-
ing the United States.’’. 
Subtitle B—Other Matters 
SEC. 1221. REPEAL OF THE AUTHORIZATION FOR THE ES-
TABLISHMENT OF THE CENTER FOR THE 
STUDY OF CHINESE MILITARY AFFAIRS. 
Section 914 of the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat. 
721), is repealed. 
TITLE XIII—HOMELAND 
SECURITY
Sec. 1301. Sales of chemical and biological defense articles and services to state 
and local governments.
SEC. 1301. SALES OF CHEMICAL AND BIOLOGICAL DEFENSE 
ARTICLES AND SERVICES TO STATE AND 
LOCAL GOVERNMENTS. 
(a) AUTHORITY FOR PROCUREMENT AND SALES.—
Chapter 18 of title 10, United States Code, is amended 
by adding at the end the following new section: 
‘‘§ 383. Sales of chemical and biological defense arti-
cles and services to State and local gov-
ernments 
‘‘(a) PROCUREMENT THROUGH THE DEPARTMENT 
OF DEFENSE.—The Secretary of Defense shall establish
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procedures in accordance with this subsection under which 
States and units of local government may purchase arti-
cles suitable for chemical and biological defense and oper-
ator training, repair and maintenance, and similar services 
in connection with such articles, through the Department 
of Defense. 
‘‘(b) SALES FROM INVENTORIES.—The Secretary of 
Defense may sell articles suitable for chemical and biologi-
cal defense in Department of Defense inventories to States 
and units of local government at a price based upon the 
estimated or actual costs incurred by the Department in 
providing the articles. 
‘‘(c) PROVISION OF SERVICES.—The Secretary may 
provide, within any State or unit of local government, op-
erator training, repair and maintenance, and similar serv-
ices in connection with articles suitable for chemical and 
biological defense at a price based upon the estimated or 
actual costs incurred by the Department in providing the 
services. 
‘‘(d) PAYMENT FOR ARTICLES AND SERVICES.—Pay-
ment for articles and services under this section may be 
in advance or on providing the articles or services. 
‘‘(e) 
REIMBURSEMENT
OF
ADMINISTRATIVE 
COSTS.—In the case of any purchase made by a State or 
unit of local government under this section, the Secretary
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may require the State or unit of local government to reim-
burse the Department of Defense for administrative costs 
to the Department of such purchase. 
‘‘(f) CREDIT OF FUNDS FROM SALES.—Funds re-
ceived by the Department of Defense from sales of articles 
under subsection (b) shall be credited to the military de-
partment, Defense Agency, or Department of Defense 
Field Activity that sold the articles so as to merge with 
and become available for the same purposes and period 
as the accounts to which they are credited, and shall be 
available until expended only for the acquisition of articles 
suitable for chemical and biological defense. 
‘‘(g) CREDIT OF FUNDS FOR SERVICES.—Funds re-
ceived for the provision of services under subsection (c) 
shall be credited to the military department, Defense 
Agency, or Department of Defense Field Activity that pro-
vided the services and shall be available until expended 
only for the provision of such services. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The terms ‘articles suitable for chemical 
and biological defense’ and ‘services’ have the mean-
ing given those terms in regulations as prescribed by 
the Secretary of Defense. 
‘‘(2) The term ‘State’ has the meaning given the 
term in section 381(d)(1)of this title.
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‘‘(3) The term ‘unit of local government’ has the 
meaning given the term in section 381(d)(2) of this 
title.’’. 
‘‘(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘383. Sales of chemical and biological defense articles and services to State and 
local governments.’’.
DIVISION 
B—MILITARY 
CON-
STRUCTION 
AUTHORIZA-
TIONS 
SEC. 2001. SHORT TITLE. 
This division may be cited as the ‘‘Military Construc-
tion 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 appropria-
tions in section 2104(a)(1), the Secretary of the Army 
may acquire real property and carry out military construc-
tion projects for the installations or locations inside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Army: Inside the United States 
State 
Installation or location 
Amount 
Alabama ..............................
Redstone Arsenal .........................
$5,500,000
Alaska .................................
Fort Wainwright ..........................
$138,800,000
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Army: Inside the United States—Continued
State 
Installation or location 
Amount 
Georgia ................................
Fort Benning ...............................
$30,000,000
Fort Stewart/Hunter Army Air 
Field .........................................
$64,500,000
Hawaii .................................
Helemano Military Reservation ...
$1,400,000
Schofield Barracks .......................
$119,400,000
Kansas ................................
Fort Riley .....................................
$40,000,000
Kentucky .............................
Fort Knox ....................................
$3,500,000
Louisiana ............................
Fort Polk .....................................
$72,000,000
Maryland .............................
Fort Meade ..................................
$9,600,000
New York ............................
Fort Drum ...................................
$114,500,000
North Carolina ....................
Fort Bragg ...................................
$152,000,000
Oklahoma ............................
Fort Sill .......................................
$3,500,000
Texas ...................................
Fort Hood ....................................
$47,000,000
Virginia ...............................
Fort Myer ....................................
$9,000,000
Washington .........................
Fort Lewis ...................................
$3,900,000
Total .....................................
$814,600,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2104(a)(2), the Secretary of the Army 
may acquire real property and carry out military construc-
tion projects for the installations or locations outside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Army: Outside the United States 
Country 
Installation or location 
Amount 
Germany ...............................
Area Support Group, Bamberg ......
$17,900,000
Darmstadt .......................................
$7,700,000
Grafenwoehr ....................................
$76,000,000
Heidelberg .......................................
$17,000,000
Hohenfels ........................................
$13,200,000
Mannheim .......................................
$4,300,000
Schweinfurt .....................................
$7,500,000
Wuerzburg ......................................
$18,500,000
Italy ......................................
Aviano Air Base ..............................
$15,500,000
Livorno ............................................
$22,000,000
Korea ....................................
Camp Casey ....................................
$86,000,000
Camp Hovey ...................................
$29,000,000
Kwajalein Atoll .....................
Kwajalein Atoll ...............................
9,400,000
Total ...............................................
$324,000,000 
(c) UNSPECIFIED WORLDWIDE.—(1) Using amounts 
appropriated pursuant to the authorization of appropria-
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tions in section 2104(a)(3) and amounts, not to exceed 
$150,000,000 provided under Public Law 107–38, the 
Secretary of the Army may acquire personal services and 
real property, and may provide for the operation and con-
struction of critical infrastructure and allied systems to 
ensure essential governmental functions for the installa-
tion or location, and in the amount, set forth in the fol-
lowing table:
Army: Unspecified Worldwide 
Location 
Installation 
Amount 
Worldwide Unspecified .........
Unspecified Worldwide ...................
$663,900,000
Total ...............................................
$663,900,000
(2) Military Construction projects, and those funded 
in whole or in part under Public Law 107–38, containing 
national security classified information and for the pur-
poses of preventing, responding to, or countering the ef-
fects of terrorist attacks shall comply, to the extent prac-
tical, with applicable Federal, State, and local laws and 
other orders regarding regulatory compliance, consulta-
tion, coordination and inspection; provided that in car-
rying out such projects—
(A) no such compliance, consultation, coordina-
tion or inspection may expose, endanger, or other-
wise compromise national security; and 
(B) any anticipated exception to such compli-
ance, consultation, coordination or inspection shall
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be addressed in project documentation submitted to 
Congress under paragraph (3). 
(3) Where applicable, project documentation sub-
mitted to the congressional defense committees shall sat-
isfy general provisions of section 1001 of Public Law 107–
117 and address any exception to compliance, consulta-
tion, coordination or inspection anticipated by paragraph 
(2). 
SEC. 2102. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2104(a)(6)(A), the Secretary of the 
Army may construct or acquire family housing units (in-
cluding land acquisition and supporting facilities) at the 
installations or locations, for the purposes and in the 
amounts, set forth in the following table:
Army: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
Alaska ...........................
Fort Wainwright ...............
100 Units ....
$44,000,000
Arizona .........................
Fort Huachuca ..................
160 Units ....
$27,000,000
Kentucky .......................
Fort Knox .........................
178 Units ....
$41,000,000
New Mexico ..................
White Sands Missile Range 
58 Units ......
$14,600,000
Total: ...
$126,600,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may 
carry out architectural and engineering services and con-
struction design activities with respect to the construction
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or improvement of family housing units in an amount not 
to exceed $34,488,000. 
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States 
Code, and using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(6)(A), 
the Secretary of the Army may improve existing military 
family housing units in an amount not to exceed 
$197,803,000. 
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY. 
(a) IN GENERAL.—Funds are hereby authorized to 
be appropriated for fiscal years beginning after September 
30, 2003, for military construction, land acquisition and 
military family housing functions of the Department of the 
Army in the total amount of $2,935,927,000 as follows: 
(1) For military construction projects inside the 
United States authorized by section 2101(a), 
$721,600,000. 
(2) For military construction projects outside 
the United States authorized by section 2101(b), 
$314,000,000. 
(3) For military construction projects at un-
specified worldwide locations authorized by section 
2101(c), $178,700,000.
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(4) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $20,000,000. 
(5) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $122,710,000. 
(6) For military family housing functions: 
(A) For construction and acquisition, plan-
ning and design, and improvement of military 
family housing and facilities, $356,891,000. 
(B) For support of military family housing 
(including the functions described in section 
2833 of title 10, United States Code), 
$1,043,026,000. 
(7) For the construction of phase 3 of a bar-
racks complex, D Street, at Fort Richardson, Alas-
ka, authorized by section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107–107; 115 Stat. 
1281), $33,000,000. 
(8) For the construction of phase 2 of a bar-
racks complex, Capron Road, at Schofield Barracks, 
Hawaii, authorized by section 2101(a) of the Mili-
tary Construction Authorization Act for Fiscal Year 
2002 (division B of Public Law 107–107; 115 Stat.
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1283), as amended by section 2105 of this Act, 
$49,000,000. 
(9) For the construction of phase 2 of a bar-
racks complex, Range Road, at Fort Campbell, Ken-
tucky, authorized by section 2101(a) of the Bob 
Stump National Defense Authorization Act for Fis-
cal Year 2003 (division B of Public Law 107–314; 
116 Stat. 2681), $49,000,000. 
(10) For the construction of phase 3 of a bar-
racks complex, 17th & B Streets, at Fort Lewis, 
Washington, authorized by section 2101(a) of the 
Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107–107; Stat. 
1280), $48,000,000.
SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT 
CERTAIN FISCAL YEAR 2002 PROJECTS. 
(a) MODIFICATION.—The table in section 2101(a) of 
the Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107-107; 115 Stat. 
1281), is amended in the item relating to Fort Richard-
son, Alaska, by striking ‘‘$115,000,000’’ in the amount 
column and inserting ‘‘$117,000,000’’. 
(b) CONFORMING AMENDMENT.—Paragraph (2) of 
section 2104(b) of such Act (115 Stat. 1284) is amended 
by striking ‘‘$52,000,000’’ and inserting ‘‘$54,000,000’’.
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TITLE XXII—NAVY 
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(1), the Secretary of the Navy may 
acquire real property and carry out military construction 
projects for the installations or locations inside the United 
States, and in the amounts, set forth in the following 
table:
Navy: Inside the United States 
State 
Installation or location 
Amount 
Arizona ..........................
Marine Corps Air Station, Yuma ...........
$22,230,000
California ......................
Marine Corps Base, Camp Pendleton ....
$73,580,000
Naval Air Station, Lemoore ...................
$34,510,000
Marine Corps Air Station, Miramar ......
$4,740,000
Naval Air Station, North Island ............
$49,240,000
Naval Air Warfare Center, China Lake
$12,890,000
Naval Air Warfare Center, Point Mugu, 
San Nicholas Island ............................
$6,150,000
Naval Air Facility, San Clemente Island 
$18,940,000
Naval Postgraduate School, Monterey ...
$35,550,000
Naval Station, San Diego .......................
$49,710,000
Marine Air Ground Task Force Train-
ing Center, Twentynine Palms ...........
$28,390,000
District of Columbia .....
Marine Corps Barracks ..........................
$1,550,000
Florida ..........................
Naval Air Station, Jacksonville ..............
$3,190,000
Naval Air Station, Whiting Field, Milton 
$4,830,000
Naval Surface Warfare Center, Coastal 
Systems Station, Panama City ...........
$9,550,000
Blount Island (Jacksonville) ..................
$115,711,000
Georgia ..........................
Strategic Weapons Facility Atlantic, 
Kings Bay ...........................................
$11,510,000
Hawaii ...........................
Fleet and Industrial Supply Center, 
Pearl Harbor ......................................
$32,180,000
Naval Magazine, Lualualei .....................
$6,320,000
Naval Shipyard, Pearl Harbor ...............
$7,010,000
Illinois ...........................
Naval Training Center, Great Lakes .....
$137,120,000
Maryland .......................
Naval Air Warfare Center, Patuxent 
River ...................................................
$24,370,000
Naval Surface Warfare Center, Indian 
Head ...................................................
$14,850,000
Mississippi .....................
Naval Air Station, Meridian ...................
$4,570,000
New Jersey ....................
Naval Air Warfare Center, Lakehurst ...
$20,681,000
Naval Weapons Station, Earle ...............
$123,720,000
North Carolina ..............
Marine Corps Air Station, New River ....
$6,240,000
Marine Corps Base, Camp Lejeune .......
$29,450,000
Rhode Island .................
Naval Station, Newport ..........................
$16,140,000
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Navy: Inside the United States—Continued
State 
Installation or location 
Amount 
Naval Undersea Warfare Center, New-
port .....................................................
$10,890,000
Virginia .........................
Henderson Hall, Arlington .....................
$1,970,000
Marine Corps Combat Development 
Command, Quantico ...........................
$3,700,000
Naval Amphibious Base, Little Creek ....
$3,810,000
Naval Station, Norfolk ...........................
$182,240,000
Naval Space Command Center, Dahl-
gren .....................................................
$20,520,000
Norfolk Naval Shipyard, Portsmouth ....
$17,770,000
Washington ...................
Naval Magazine, Indian Island ..............
$2,240,000
Naval Submarine Base, Bangor .............
$33,820,000
Strategic Weapons Facility Pacific, Ban-
gor .......................................................
$6,530,000
Various Locations .........
Various Locations, CONUS ...................
$56,360,000
Total ...............................................
$1,244,772,000
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(2), the Secretary of the Navy may 
acquire real property and carry out military construction 
projects for the installations or locations outside the 
United States, and in the amounts, set forth in the fol-
lowing table:
Navy: Outside the United States 
Country 
Installation or location 
Amount 
Bahrain ..........................
Naval Support Activity, Bahrain ............
$18,030,000
Italy ................................
Naval Support Activity, La Maddalena ..
$39,020,000
Naval Air Station, Sigonella ...................
$34,070,000
United Kingdom .............
Joint Maritime Facility, St. Mawgan ......
$7,070,000
Total ................................................
$98,190,000
SEC. 2202. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2204(a)(6)(A), the Secretary of the 
Navy may construct or acquire family housing units (in-
cluding land acquisition and supporting facilities) at the
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installations or locations, for the purposes and in the 
amounts, set forth in the following table:
Navy: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
California ......................
Naval Air Station, 
Lemoore .........................
187 Units ....
$41,585,000
Florida ..........................
Naval Air Station, Pensa-
cola ................................
25 Units ......
$4,447,000
North Carolina .............
Marine Corps Base, Camp 
Lejeune ..........................
519 Units ....
$68,531,000
Marine Corps Air Station, 
Cherry Point ..................
339 Units ....
42,803,000
Total ....
$157,366,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriation in 
section 2204(a)(5)(A), the Secretary of the Navy may 
carry out architectural and engineering services and con-
struction design activities with respect to the construction 
or improvement of military family housing units in an 
amount not to exceed $8,381,000. 
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States 
Code, and using amounts appropriated pursuant to the 
authorization of appropriations in section 2204(a)(5)(A), 
the Secretary of the Navy may improve existing military 
family housing units in an amount not to exceed 
$20,446,000. 
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY. 
Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2003, for mili-