305
ment, personnel management, and other compensation 
programs regarding which the personnel have elected to 
continue the programs made available to them by the 
qualified scouting organization.’’. 
(c) CONFORMING AND CLERICAL AMENDMENTS.—
Such section is further amended—
(1) in subsection (a), by inserting ‘‘AUTHORITY 
TO COOPERATE AND PROVIDE ASSISTANCE.—’’ after 
‘‘(a)’’; 
(2) in subsection (c), by inserting ‘‘BASIS FOR 
COOPERATION AND ASSISTANCE.—’’; 
(3) in subsection (e), as redesignated by sub-
section (b)(2)—
(A) by inserting ‘‘PROVISION OF TRANS-
PORTATION, SPACE, AND SERVICES.—’’ after 
‘‘(e)’’; and 
(B) in the matter preceding paragraph (1), 
by inserting ‘‘, using the authority of subsection 
(d)(3)’’ after ‘‘furnished’’; 
(4) in subsection (f), as redesignated by sub-
section (b)(2), by inserting ‘‘TRANSPORTATION OF 
SUPPLIES.—’’ after ‘‘(f)’’; and 
(5) in subsection (g), by inserting ‘‘DEFINI-
TION.—’’ after ‘‘(g)’’.
306
Subtitle F—Other Matters 
SEC. 661. REPEAL OF REQUIREMENT THAT MEMBERS ENTI-
TLED TO BASIC ALLOWANCE FOR SUBSIST-
ENCE PAY SUBSISTENCE CHARGES WHILE 
HOSPITALIZED. 
(a) REPEAL.—(1) Section 1075 of title 10, United 
States Code, is repealed. 
(2) The table of sections at the beginning of chapter 
55 of such title is amended by striking the item relating 
to section 1075. 
(b) CONFORMING AMENDMENT REGARDING MILI-
TARY-CIVILIAN HEALTH SERVICES PARTNERSHIP PRO-
GRAM.—Section 1096(c) of such title is amended—
(1) by inserting ‘‘who is a dependent’’ after 
‘‘covered beneficiary’’; and 
(2) by striking ‘‘shall pay’’ and all that follows 
through the period at the end of paragraph (2) and 
inserting ‘‘shall pay the charges prescribed by sec-
tion 1078 of this title.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act.
307
SEC. 662. CLARIFICATION OF EDUCATION LOANS QUALI-
FYING FOR EDUCATION LOAN REPAYMENT 
PROGRAM 
FOR 
RESERVE 
COMPONENT 
HEALTH PROFESSIONS OFFICERS. 
Section 16302(a)(5) of title 10, United States Code, 
is amended by inserting ‘‘a basic professional qualifying 
degree (as determined under regulations prescribed by the 
Secretary of Defense) or graduate education in’’ after ‘‘re-
garding’’. 
SEC. 663. SURVEY AND ANALYSIS OF EFFECT OF EXTENDED 
AND FREQUENT MOBILIZATION OF RESERV-
ISTS FOR ACTIVE DUTY SERVICE ON RESERV-
IST INCOME. 
(a) SURVEY OF MOBILIZED RESERVISTS TO DETER-
MINE DIFFERENTIAL BETWEEN PRIVATE SECTOR IN-
COME AND MILITARY COMPENSATION.—(1) The Secretary 
of Defense shall conduct a survey involving members of 
the reserve components who serve, or have served, on ac-
tive duty in support of a contingency operation at any time 
during the period beginning on September 11, 2001, and 
ending on September 30, 2005, to determine the extent 
to which such members sustained a reduction in monthly 
income during the period of the active duty service com-
pared to the average monthly civilian income of the mem-
bers during the 12 months preceding their mobilization.
308
(2) At least 50 percent of the total number of mem-
bers of the reserve components who have served on active 
duty in support of a contingency operation at any time 
during the period specified in paragraph (1) shall be in-
cluded in the survey. 
(b) CALCULATION OF INCOME DIFFERENTIAL.—For 
each member surveyed under subsection (a) who reports 
that total monthly military compensation during the active 
duty service of the member was less, or appeared to be 
less, than the average monthly civilian income of the mem-
ber, the Secretary of Defense, in cooperation with the 
member, shall calculate the monthly active-duty income 
differential for the member. 
(c) DEFINITIONS USED
IN CONDUCTING SURVEY 
AND CALCULATIONS.—In this section: 
(1) The term ‘‘monthly active-duty income dif-
ferential’’, with respect to a member of a reserve 
component surveyed under subsection (a), means the 
difference between—
(A) the average monthly civilian income of 
the member; and 
(B) the total monthly military compensa-
tion of the member. 
(2) The term ‘‘average monthly civilian in-
come’’, with respect to a member of a reserve com-
309
ponent surveyed under subsection (a), means the 
amount, determined by the Secretary of Defense, of 
the earned income of the member for the 12 months 
preceding the first mobilization of the member dur-
ing the period specified in subsection (a)(1), divided 
by 12. 
(3) The term ‘‘total monthly military compensa-
tion’’, with respect to a member of a reserve compo-
nent surveyed under subsection (a), means the 
amount, computed on a monthly basis, of the sum 
of—
(A) the amount of the regular military 
compensation (RMC), as defined in section 
101(25) of title 37, United States Code, of the 
member during the period specified in sub-
section (a)(1); and 
(B) any amount of special pay or incentive 
pay and any allowance (other than an allowance 
included in regular military compensation) that 
is paid to the member on a monthly basis dur-
ing the period specified in subsection (a)(1). 
(d) COLLECTION
OF DEMOGRAPHIC DATA.—The 
Secretary of Defense shall collect demographic data re-
garding each member of a reserve component surveyed
310
under subsection (a), including, at a minimum, data on 
the following: 
(1) Reserve component. 
(2) Unit of assignment. 
(3) Grade. 
(4) Age. 
(5) Years of service. 
(6) Sex. 
(7) Marital status. 
(8) Number of dependents. 
(9) General category of private-sector employ-
ment, as determined by the Secretary, but to include 
an employment category to cover members who are 
self-employed. 
(10) Military occupational specialty, including 
specifying all surveyed members who are serving in 
a critical wartime specialty. 
(11) Length of service on active duty during 
the most recent mobilization. 
(12) Number of times mobilized since Sep-
tember 11, 2001. 
(e) EFFECT OF INCOME LOSS ON RETENTION.—The 
Secretary of Defense shall include in the survey a question 
to solicit information from each member of a reserve com-
ponent surveyed under subsection (a) regarding the likely
311
effect of a reoccurring monthly active-duty income dif-
ferential for the member while serving on active duty on 
the decision of the member to remain in the reserve com-
ponent. 
(f) ANALYSIS OF SURVEY DATA.—(1) At a minimum, 
the Secretary of Defense shall determine, for each variable 
listed in paragraphs (2) through (12) of subsection (d), 
the number of members of the reserve components sur-
veyed under subsection (a) who sustained a monthly ac-
tive-duty income differential for any month during their 
active duty service and compare and contrast that number 
with the number of members who did not experience a 
monthly active-duty income differential. 
(2) The Secretary shall also determine the average 
amount of the active-duty income differential by reserve 
component for each variable within the characteristics list-
ed in paragraphs (2) through (12) of subsection (d). 
(g) SUBMISSION OF SURVEY RESULTS AND REC-
OMMENDATIONS.—Not later than January 31, 2006, the 
Secretary of Defense shall submit to Congress and the 
Comptroller General a report containing the results of the 
surveys conducted under subsection (a), including the re-
sults of the analysis of survey data required by subsection 
(e). The Secretary shall include such recommendations as 
the Secretary considers appropriate regarding alternatives
312
for restoring income lost by members of the reserve com-
ponents who sustained a monthly active-duty income dif-
ferential during their active duty service. 
(h) COMPTROLLER
GENERAL
EVALUATION.—Not 
later than March 31, 2006, the Comptroller General shall 
submit to Congress an assessment of the findings and rec-
ommendations contained in the report of the Secretary of 
Defense submitted under subsection (g).
TITLE VII—HEALTH CARE 
PROVISIONS
Subtitle A—Enhanced Benefits for 
Reserves
SEC. 701. DEMONSTRATION PROJECT FOR TRICARE COV-
ERAGE FOR READY RESERVE MEMBERS. 
(a) DEMONSTRATION PROGRAM.—Section 1076b of 
title 10, United States Code, is amended to read as fol-
lows: 
‘‘§ 1076b. TRICARE demonstration project: coverage 
for members of the Ready Reserve 
‘‘(a) IN GENERAL.—(1) The Secretary of Defense 
shall conduct a demonstration project beginning in fiscal 
year 2005 to test whether TRICARE coverage for certain 
Ready Reserve members and their families enhances med-
ical readiness and retention of such members.
313
‘‘(2) Under the demonstration project required by 
paragraph (1), within the scope of the project, as estab-
lished by the Secretary, members of the Ready Reserve 
may be allowed to enroll for coverage under the TRICARE 
Standard option of the TRICARE program and receive 
benefits under such enrollment for any period that the 
member—
‘‘(A) is not eligible for health care benefits 
under an employer-sponsored health benefits plan; 
and 
‘‘(B) either—
‘‘(i) is not on active duty; or 
‘‘(ii) is on active duty but under a call or 
order to active duty for a period of 30 days or 
less. 
‘‘(3) A member allowed to enroll in TRICARE Stand-
ard under the demonstration project may enroll for self-
only coverage or self and family coverage.
‘‘(b) SCOPE OF COVERAGE .—A member and the de-
pendents of a member enrolled in TRICARE Standard 
under this section shall be entitled to the same benefits 
and shall pay the same charges as are provided under sec-
tion 1079 of this title. 
‘‘(c) PREMIUMS.—(1) The Secretary of Defense shall 
charge premiums for coverage pursuant to enrollments
314
under this section. The Secretary shall prescribe a pre-
mium for self only coverage and a premium for self and 
family coverage. 
‘‘(2) The monthly amount of the premium in effect 
for a month for a type of coverage under this section shall 
be the amount equal to 28 percent of the total amount 
determined by the Secretary on an appropriate actuarial 
basis as being reasonable for the coverage. 
‘‘(3) The premiums payable by a member under this 
subsection may be deducted and withheld from basic pay 
payable to the member under section 204 of title 37 or 
from compensation payable to the member under section 
206 of such title. The Secretary shall prescribe the re-
quirements and procedures applicable to the payment of 
premiums by members not entitled to such basic pay or 
compensation. 
‘‘(4) Amounts collected as premiums under this sub-
section shall be credited to the appropriation available for 
the Defense Health Program Account under section 1100 
of this title, shall be merged with sums in such Account 
that are available for the fiscal year in which collected, 
and shall be available under subparagraph (B) of such sec-
tion for such fiscal year. 
‘‘(d) CONDITIONS OF ELIGIBILITY.—(1) The Sec-
retary of Defense may establish other conditions of eligi-
315
bility, including requiring a member to submit any certifi-
cation that the Secretary considers appropriate to sub-
stantiate the member’s assertion that the member is not 
eligible for health care benefits under any other health 
benefits plan. 
‘‘(2) In the case of any member who is self-employed 
and not eligible for coverage under any other employer-
sponsored health benefits plan, the member shall not be 
considered eligible to enroll under this section if the mem-
ber’s income in the prior calendar year exceeded $40,000. 
‘‘(e) SCOPE
AND
TERMS
OF
DEMONSTRATION 
PROJECT.—The geographic scope and priorities for enroll-
ment under the demonstration program, if any, shall be 
established by the Secretary of Defense. The Secretary 
may establish such other terms and conditions for the 
demonstration project required by subsection (a) as the 
Secretary determines appropriate to accomplish its pur-
poses. 
‘‘(f) TERMINATION OF AUTHORITY.—An enrollment 
in TRICARE under this section may not continue after 
December 31, 2007. 
‘‘(g) EVALUATION OF DEMONSTRATION AND REPORT 
TO CONGRESS.—Not later than March 1, 2007, the Sec-
retary shall provide to Congress a report on the results 
of the demonstration project required by this section. Such
316
report shall include an analysis of the impact of the dem-
onstration on medical readiness and retention of the mem-
bers who enrolled, an assessment of the costs and benefits 
of any improvements in medical readiness or retention, 
and recommendations concerning TRICARE Standard 
coverage for Ready Reserve members. 
‘‘(h) DEFINITION.—In this section, the term 
‘TRICARE Standard’ means the option of the TRICARE 
program that is also known as the Civilian Health and 
Medical Program of the Uniformed Services, as defined 
in section 1072(4) of this title.’’. 
(b) TERMINATION
OF COVERAGE UNDER SUPER-
SEDED PROVISION OF LAW.—An enrollment in TRICARE 
under section 1076b of title 10, United States Code, as 
in effect before the date of the enactment of this Act may 
not continue after such date. 
(c) SITE IDENTIFICATION.—(1) Not later than 60 
days after the date of enactment of this Act, the Secretary 
of Defense, in consultation with the Committees on Armed 
Services of the Senate and the House of Representatives, 
shall identify not less than 10 sites that meet the criteria 
specified in paragraph (2) for the conduct of the dem-
onstration project required under section 1076b of title 
10, United States Code, as amended by this section.
317
(2) For purposes of paragraph (1), the sites selected 
for the conduct of the demonstration project shall be areas 
of the United States that include a substantial number 
of personnel expected to be ordered to active duty for a 
period of more than 30 days. 
(d) INDEPENDENT EVALUATION AND REPORTS.—(1) 
The Comptroller General shall conduct an evaluation of 
the demonstration project required under section 1076b 
of title 10, United States Code (as amended by this sec-
tion) The evaluation shall include an assessment of the 
following: 
(A) Compliance by the Department of Defense 
with the requirements under section 1076b of title 
10, United States Code (as amended by this sec-
tion). 
(B) A description of the effects of the dem-
onstration project on medical readiness and reten-
tion of the participants compared to nonparticipants. 
(C) The number of Ready Reserve members 
and their dependents opting to participate in the 
demonstration project. 
(D) An analysis of how the demonstration 
project affects the overall accessibility of care in the 
direct and purchased care systems and a description
318
of the unintended effects (if any) upon the normal 
treatment priority system. 
(E) A description of the difficulties (if any) ex-
perienced by the Department of Defense in man-
aging the demonstration project. 
(F) Any impact of the demonstration project on 
employers, including causing them to discontinue 
health care insurance benefits for employees who are 
members of the reserves. 
(G) A recommendation whether to extend the 
demonstration project or make the project perma-
nent. 
(H) A determination of whether the terms and 
conditions of the demonstration project should be 
continued or modified if the project is extended or 
expanded. 
(I) Implications on cost, medical readiness, re-
cruitment, and retention if the demonstration project 
was made available to all reservists meeting the en-
rollment criteria throughout the United States and 
its territories. 
(J) Any additional elements that the Comp-
troller General determines are appropriate to assess 
the demonstration project.
319
(2) The Comptroller General shall submit to the 
Committees on Armed Services of the Senate and the 
House of Representatives—
(A) an interim report on the evaluation under 
this section not later than 12 months after the date 
on which the demonstration project begins operation; 
and 
(B) a final report on the evaluation under this 
section not later than March 1, 2007.
SEC. 702. COMPTROLLER GENERAL REPORT ON THE COST 
AND FEASIBILITY OF PROVIDING PRIVATE 
HEALTH INSURANCE STIPENDS FOR MEM-
BERS OF THE READY RESERVES. 
(a) STUDY REQUIRED.—The Comptroller General 
shall conduct a study on the cost and feasibility of pro-
viding a stipend to members of the Ready Reserves to off-
set the cost of continuing private health insurance cov-
erage for the member’s dependents when the member is 
on active duty for a period of more than 30 days, with 
the dependents being ineligible to enroll in the TRICARE 
program and payment of the stipend ending when the 
member is no longer on active duty. 
(b) MATTERS COVERED.—The study shall include the 
following matters:
320
(1) Recommendation for a benefit amount and 
cost to the Department of Defense. 
(2) Potential effects on medical readiness, re-
cruitment, and retention. 
(3) The extent to which the Reserves and mem-
bers of their families might participate under the sti-
pend program. 
(4) Administrative and management consider-
ations for the Department of Defense. 
(5) Impact of pre-existing conditions on con-
tinuity of care for dependents. 
(6) Possible implications for employers. 
(c) REPORT.—Not later than March 31, 2005, the 
Comptroller General shall submit to the Committee on 
Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report 
containing the results of the study under this section.
SEC. 703. IMPROVEMENT OF MEDICAL SERVICES FOR ACTI-
VATED MEMBERS OF THE READY RESERVE 
AND THEIR FAMILIES.
(a) REQUIREMENT FOR TRICARE COVERAGE FOR 
DEPENDENTS OF MEMBERS OF RESERVE COMPONENTS 
CALLED TO ACTIVE DUTY.—Paragraph (1) of section 
1074(d) of title 10, United States Code, is amended—
321
(1) by inserting ‘‘a dependent of’’ after ‘‘chap-
ter,’’; 
(2) by inserting ‘‘a dependent of a member’’ 
after ‘‘treated as being’’; and 
(3) by striking ‘‘the later of’’ and all that fol-
lows through the period at the end of subparagraph 
(B) and inserting ‘‘the date described in paragraph 
(3).’’. 
(b) AUTHORITY
FOR TRICARE COVERAGE
FOR 
MEMBERS OF RESERVE COMPONENTS CALLED TO AC-
TIVE DUTY.—Section 1074(d) of such title is further 
amended—
(1) by striking paragraph (3); 
(2) by redesignating paragraph (2) as para-
graph (4); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) The Secretary of Defense may, beginning on the 
date described in paragraph (3), provide a member of a 
reserve component of the armed forces who is issued a 
delayed-effective-date active-duty order, or is covered by 
such an order, such medical and dental care (in addition 
to care for which the member is eligible under section 
1074a(f) of this title or other provisions of law) the Sec-
retary determines appropriate.
322
‘‘(3) The date referred to in paragraphs (1) and (2) 
with respect to a member is the later of the date that is—
‘‘(A) the date of the issuance of the delayed-ef-
fective-date active-duty order; or 
‘‘(B) 90 days before the date on which the pe-
riod of active duty is to commence under such order 
for that member.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2005.
SEC. 
704. 
MODIFICATION 
OF 
WAIVER 
OF 
CERTAIN 
DEDUCTIBLES UNDER TRICARE PROGRAM. 
Section 1095d(a) of title 10, United States Code, is 
amended in paragraphs (1) and (2) by striking ‘‘less than 
one year’’ each place it appears and inserting ‘‘more than 
30 days’’.
SEC. 705. AUTHORITY FOR PAYMENT BY UNITED STATES OF 
ADDITIONAL AMOUNTS BILLED BY HEALTH 
CARE PROVIDERS TO ACTIVATED RESERVE 
MEMBERS. 
Section 1079(h) of title 10, United States Code, is 
amended by adding at the end of paragraph (4) the fol-
lowing new subparagraph: 
‘‘(C) In the case of services billed to a dependent re-
ferred to in subsection (a) of a member of a reserve com-
ponent who is ordered to active duty for a period of more
323
than 30 days in support of a contingency operation under 
a provision of law referred to in section 101(a)(13)(B) of 
this title, the regulations shall provide that, in addition 
to amounts otherwise payable by the United States, the 
Secretary may pay the amount referred to in subpara-
graph (B)(i) for the services.’’.
SEC. 706. EXTENSION OF TRANSITIONAL HEALTH CARE 
BENEFITS AFTER SEPARATION FROM ACTIVE 
DUTY. 
(a) EXTENSION OF TRANSITIONAL HEALTH CARE 
BENEFITS.—Paragraph (3) of section 1145(a) of title 10, 
United States Code, is amended to read as follows: 
‘‘(3) Transitional health care shall be available under 
this subsection for a period beginning on the date on 
which the member is separated from active duty and end-
ing on the earlier of—
‘‘(A) 180 days after the date on which the 
member is separated from active duty; or 
‘‘(B) the date on which the member and de-
pendents of the member are covered by a health plan 
sponsored by an employer.’’. 
(b) LIMITATION.—During the period beginning on 
January 1, 2005, and ending on September 30, 2005, not 
more than $170,000,000 of the amount appropriated pur-
suant to the authorization for operations and maintenance
324
for the Defense Health Program in section 303(a) may 
be used for transitional health care under section 1145(a) 
of title 10, United States Code, as amended by this sec-
tion. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to separations from 
active duty that take effect on or after January 1, 2005. 
Subtitle B—Other Benefits 
Improvements 
SEC. 711. COVERAGE OF CERTAIN YOUNG CHILDREN 
UNDER TRICARE DENTAL PROGRAM. 
(a) COVERAGE OF CERTAIN YOUNG CHILDREN.—
Section 1076a(k)(2) of title 10, United States Code, is 
amended by inserting after ‘‘by reason of’’ the following: 
‘‘the dependent’s young age on the date of death of the 
member of’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on the date of the enact-
ment of this Act.
SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION 
OF HEALTH AND SUPPORT SERVICES FOR EX-
CEPTIONAL FAMILY MEMBER PROGRAM EN-
ROLLEES. 
(a) EVALUATION REQUIREMENT.—The Comptroller 
General shall evaluate the effect of the Exceptional Family
325
Member Program (in this section referred to as ‘‘EFMP’’) 
on health and support services in selected civilian commu-
nities near military installations with a high concentration 
of EFMP enrollees. 
(b) MATTERS COVERED.—The evaluation under sub-
section (a) shall include a discussion of the following: 
(1) Communities that have high concentrations 
of EFMP enrollees that use State and local health 
and support services. 
(2) Needs of EFMP enrollees, if any, that are 
not met by State and local health and support serv-
ices. 
(3) The burdens, financial and otherwise, 
placed on State and local health and support serv-
ices by EFMP enrollees and their families. 
(4) The ability of the TRICARE program to 
meet the needs of EFMP enrollees and their fami-
lies. 
(5) Reasons 
for 
any 
limitations 
of 
the 
TRICARE program, the EFMP, and State and local 
health and support services in providing assistance 
to EFMP enrollees and their families. 
(6) Recommendations for more effectively meet-
ing the needs of EFMP enrollees and their families.
326
(c) COMMUNITIES COVERED.—The evaluation under 
subsection (a) shall examine no fewer than four civilian 
communities, as determined by the Comptroller General, 
that have high concentrations of EFMP enrollees and that 
are near several military installations, including at least 
two military installations with tenants from more than one 
of the Armed Forces. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘health and support services’’ 
means services provided to children and other de-
pendents with special needs, including specialized 
day care, mental health day treatment services, res-
pite services, counseling, and other such services 
provided for children and other dependents with spe-
cial needs. 
(2) The term ‘‘TRICARE program’’ has the 
meaning given that term in section 1072(7) of title 
10, United States Code. 
(e) REPORT.—Not later than March 31, 2005, the 
Comptroller General shall submit to the Armed Services 
Committees of the Senate and the House of Representa-
tives a report on the results of the evaluation required 
under subsection (a), with findings and recommendations.
327
SEC. 713. EXCEPTIONAL ELIGIBILITY FOR TRICARE PRIME 
REMOTE. 
Section 1079(p) of title 10, United States Code, is 
amended—
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) The Secretary of Defense may provide for cov-
erage of a dependent referred to in subsection (a) who is 
not described in paragraph (3) if the Secretary determines 
that exceptional circumstances warrant such coverage.’’.
SEC. 714. TRANSITION TO HOME HEALTH CARE BENEFIT 
UNDER SUB-ACUTE CARE PROGRAM. 
Section 1074j of title 10, United States Code, is 
amended in subsection (b)(3)—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 
(2) by adding at the end the following: 
‘‘(B) The Secretary of Defense shall establish proce-
dures for the transition to and implementation of the 
home health care benefit required by subparagraph (A). 
The Secretary may provide in such procedures that cov-
ered beneficiaries who, before the implementation of such 
benefit, received home health care under this chapter in 
excess of such benefit, may continue to receive such care 
for such time as the Secretary considers appropriate.’’.
328
SEC. 715. REQUIREMENT RELATING TO PRESCRIPTION 
DRUG BENEFITS FOR MEDICARE-ELIGIBLE 
ENROLLEES UNDER DEFENSE HEALTH CARE 
PLANS. 
Section 1074g(a)(6) of title 10, United States Code, 
is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and 
(2) by adding at the end the following: 
‘‘(B) For a medicare-eligible beneficiary, the 
cost-sharing requirements may not be in excess of 
the cost-sharing requirements applicable to all other 
beneficiaries covered by section 1086 of this title. 
For purposes of the preceding sentence, a medicare-
eligible beneficiary is a beneficiary eligible for health 
benefits under section 1086 of this title pursuant to 
subsection (d)(2) of such section.’’.
SEC. 716. PROFESSIONAL ACCREDITATION OF MILITARY 
DENTISTS. 
Section 1077(c) of title 10, United States Code, is 
amended—
(1) by striking ‘‘A’’ and inserting ‘‘(1) Except 
as provided in paragraph (2), a’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2)(A) Dependents who have not attained age 13 
and who are participating under a dental plan established
329
under section 1076a of this title may be treated by post-
graduate dental students in eligible dental treatment fa-
cilities if—
‘‘(i)(I) treatment of pediatric dental patients is 
required to comply with American Dental Associa-
tion accreditation standards; or 
‘‘(II) pediatric dental training is required to en-
able post-graduate dental students to provide dental 
care for such dependents outside the United States; 
and 
‘‘(ii) there are insufficient numbers of children 
eligible to be provided dental care under section 
1076(a) of this title to meet such standards or train-
ing requirements. 
‘‘(B) The total number of dependents who may be 
treated under this paragraph may not exceed 2,000 in any 
fiscal year. 
‘‘(C) In this paragraph, an eligible dental treatment 
facility is a dental treatment facility with a post-graduate 
dental education program accredited by the American 
Dental Association.’’.
330
SEC. 717. ADDITION OF CERTAIN UNREMARRIED FORMER 
SPOUSES TO PERSONS ELIGIBLE FOR DEN-
TAL INSURANCE PLAN OF RETIREES OF THE 
UNIFORMED SERVICES. 
(a) ELIGIBILITY OF CERTAIN FORMER SPOUSES FOR 
DENTAL COVERAGE.—(1) Section 1076c(b) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph: 
‘‘(6) A person who—
‘‘(i) is an unremarried former spouse of a 
member described in paragraph (1) or (2); 
‘‘(i) is described in section 1072(2)(F)(i) 
of this title; and 
‘‘(ii) does not have dental coverage under 
an employer-sponsored health plan.’’. 
(b) EFFECTIVE DATE.—Section 1076c(b)(6) of title 
10, United States Code, as added by subsection (a), shall 
take effect on the date of the enactment of this Act. 
SEC. 718. WAIVER OF COLLECTION OF PAYMENTS DUE 
FROM CERTAIN PERSONS UNAWARE OF LOSS 
OF CHAMPUS ELIGIBILITY. 
(a) AUTHORITY TO WAIVE COLLECTION.—The Sec-
retary of Defense may waive (in whole or in part) the col-
lection of payments otherwise due from a person described 
in subsection (b) as a result of the receipt by the person 
of health benefits under section 1086 of title 10, United
331
States Code, after the termination of the person’s eligi-
bility for such benefits and may also authorize continued 
coverage of benefits under section 1086 of such title for 
such person for the period described in subsection (c). 
(b) PERSONS ELIGIBLE.—A person shall be eligible 
for relief under subsection (a) if the person—
(1) is a person described in paragraph (1) of 
subsection (d) of section 1086, of title 10, United 
States Code; 
(2) in the absence of such paragraph, would 
have been eligible for health benefits under such sec-
tion; 
(3) at the time of the receipt of such benefits, 
satisfies the criteria specified in subparagraph (B) of 
paragraph (2) of such subsection; and 
(4) was unaware of the loss of eligibility to re-
ceive health benefits at the time they were received. 
(c) EXTENT OF AUTHORITY.—The authority to waive 
the collection of payments and to continue coverage of 
benefits under this section shall apply during the period 
beginning on July 1, 1999, and ending on December 31, 
2004, under terms established by the Secretary of De-
fense. 
(d) QUARTERLY REPORTS.—(1) The Secretary of 
Defense shall provide quarterly reports to the Committees
332
on Armed Services of the Senate and House of Represent-
atives regarding—
(A) efforts by the Department of Defense to 
identify persons who satisfy the criteria specified in 
subparagraph (B) of subsection (d)(2) of section 
1086 of title 10, United States Code, and would be 
eligible for health benefits under such section if the 
criteria specified in subparagrpah (A) were also sat-
isfied; and 
(B) actions taken by the Department with re-
spect to persons identified under subparagraph (B) 
of this paragraph. 
(2) The first report under paragraph (1) shall be sub-
mitted not later than 30 days after the end of the first 
quarter of fiscal year 2005.
Subtitle C—Planning, 
Programming, and Management
SEC. 721. PILOT PROGRAM FOR TRANSFORMATION OF 
HEALTH CARE DELIVERY. 
(a) FINDINGS.—(1) Congress finds the following: 
(A) Historically, providing military health care 
to military beneficiaries has centered on building a 
military medical treatment facility and providing a 
full range of services on a military installation.
333
(B) Traditionally, in many locations the major-
ity of military personnel and their dependents who 
are eligible beneficiaries of the military health care 
system do not live on military installations. 
(C) As the cost of repairing, replacing, recapi-
talizing, or expanding aging military treatment fa-
cilities and maintaining adequate health care serv-
ices on military installations increases, the Depart-
ment of Defense will be challenged to find new, more 
cost-effective ways of providing enhanced health care 
for military and civilian beneficiaries of the Depart-
ment of Defense health care system. 
(2) In view of these findings, the Secretary of De-
fense is directed to examine feasible and cost-effective 
methods for leveraging and expanding non-military health 
care resources to provide health care to military bene-
ficiaries. Furthermore, the Secretary of Defense shall con-
duct a pilot program in accordance with this section. 
(b) PILOT PROGRAM PURPOSES.—The Secretary of 
Defense shall conduct a pilot program at one or more mili-
tary installations for purposes of testing—
(1) the feasibility and cost effectiveness of ex-
panding use of non-military health care resources, 
particularly in cases in which such use would reduce
334
or eliminate the need for military medical construc-
tion projects; 
(2) initiatives that build cooperative health care 
arrangements and agreements between military in-
stallations and local and regional non-military health 
care systems; and 
(3) development of an integrated, long range 
business plan for the delivery of health care services 
for military beneficiaries, incorporating present and 
potential future capabilities in the non-military 
health care sector. 
(c) REQUIREMENTS OF PILOT PROGRAM.—In con-
ducting the pilot program, the Secretary of Defense 
shall—
(1) identify and analyze health care delivery op-
tions that range from outsourcing all health care de-
livery services to the private sector to providing some 
health care services in military facilities located on 
the installation; 
(2) determine the cost avoidance or savings re-
sulting from innovative partnerships between the 
Department of Defense and the private sector and 
limiting recapitalization costs in military facilities; 
(3) study the potential, viability, cost efficiency, 
and health care effectiveness of Department of De-
335
fense health care providers delivering health care in 
civilian community hospitals; 
(4) determine the opportunities for and barriers 
to coordinating and leveraging the use of existing 
health care resources, including Federal, State, local, 
and contractor assets; and 
(5) develop recommendations for a model health 
care delivery system that may be used at other mili-
tary installations. 
(d) CONSULTATION REQUIREMENTS.—The Secretary 
of Defense shall develop the pilot program in consultation 
with the Secretaries of the military departments, rep-
resentatives from the military installation selected for the 
pilot program, Federal, State, and local entities, and the 
TRICARE managed care support contractor with respon-
sibility for that installation. 
(e) SELECTION OF MILITARY INSTALLATION.—The 
pilot program shall be implemented at one or more mili-
tary installations selected by the Secretary of Defense. At 
least one of the selected military installations shall meet 
the following criteria: 
(1) The military installation is an Army instal-
lation located in a rural area. 
(2) The military installation has members of 
the Armed Forces on active duty and members of re-
337
begin not later than May 1, 2005, and shall be conducted 
during fiscal years 2005, 2006, and 2007. 
(g) FUNDS.—For fiscal year 2005, not more than 
$5,000,000 of the amount appropriated pursuant to the 
authorization for operations and maintenance for the De-
fense Health Program in section 303(a) may be used to 
conduct the pilot program under this section. 
(h) REPORTS.—Not later than July 1, 2005, the Sec-
retary of Defense shall submit an interim report to the 
Committees on Armed Services of the Senate and of the 
House of Representatives describing the details of the 
pilot program. Not later than July 1, 2007, the Secretary 
of Defense shall submit to such committees a final report 
describing the results of the pilot program with rec-
ommendations for a model health care delivery system for 
other military installations. 
SEC. 722. STUDY OF PROVISION OF TRAVEL REIMBURSE-
MENT TO HOSPITALS FOR CERTAIN MILI-
TARY DISABILITY RETIREES. 
(a) STUDY.—The Secretary of Defense shall conduct 
a study of the feasibility, and of the desirability, of pro-
viding that a member of the uniformed services retired 
under chapter 61 of title 10, United States Code, for a 
combat-related disability (as defined in section 1413a(e) 
of that title) shall be provided reimbursement for the trav-
338
el expenses of such member for travel, during the two-
year period beginning on the date of the retirement of the 
member, to a military treatment facility for medical care. 
The Secretary shall include in that study consideration of 
whether reimbursement under such a plan should, as near-
ly as practicable, be under the same terms and conditions, 
and at the same rate, as apply to beneficiary travel reim-
bursement provided by the Secretary of Veterans Affairs 
under section 111 of title 38, United States Code. 
(b) REPORT.—The Secretary of Defense shall submit 
to the congressional defense committees a report providing 
the results of the study under subsection (a). Such report 
shall be submitted not later than March 1, 2005.
SEC. 723. STUDY OF MENTAL HEALTH SERVICES. 
(a) STUDY REQUIRED.—The Secretary of Defense 
shall conduct a study of mental health services available 
to members of the Armed Forces. 
(b) PERSONS COVERED.—The study shall evaluate 
the availability and effectiveness of existing mental health 
treatment and screening resources—
(1) for members of the Armed Forces during a 
deployment to a combat theater; 
(2) for members of the Armed Forces returning 
from a deployment to a combat theater, both—
339
(A) in the short-term, post-deployment pe-
riod; and 
(B) in the long-term, following the post-de-
ployment period; 
(3) for the families of members of the Armed 
Forces who have been deployed to a combat theater 
during the time of the deployment; 
(4) for the families of members of the Armed 
Forces who have been deployed to a combat theater 
after the member has returned from the deployment; 
and 
(5) for members of the Armed Forces and their 
families described in this subsection who are mem-
bers of Reserve components. 
(c) ASSESSMENT OF OBSTACLES.—The study shall 
provide an assessment of existing obstacles that prevent 
members of the Armed Forces and military families in 
need of mental health services from obtaining these serv-
ices, including— 
(1) the extent to which existing confidentiality 
regulations, or lack thereof, inhibit members of the 
Armed Forces from seeking mental health treat-
ment; 
(2) the implications that a decision to seek 
mental health services can have on a military career;
340
(3) the extent to which a social stigma exists 
within the Armed Forces that prevents members of 
the Armed Forces and military families from seeking 
mental health treatment within the Department of 
Defense and the individual Armed Forces; 
(4) the extent to which logistical obstacles, par-
ticularly with respect to members of the Armed 
Forces and families residing in rural areas, deter 
members in need of mental health services from ob-
taining them; and 
(5) the extent to which members of the Armed 
Forces and their families are prevented or hampered 
from obtaining mental health treatment due to the 
cost of such services. 
(d) IDENTIFICATION OF PROBLEMS UNIQUE TO RE-
SERVES.—The study shall identify potential problems in 
obtaining mental health treatment that are unique to 
members of Reserve components. 
(e) REPORT.—The Secretary of Defense shall submit 
to Congress a report on the study conducted under this 
section not later than 90 days after the date of the enact-
ment of this Act. The report shall contain the results of 
the study and make specific recommendations—
(1) for improving the effectiveness and accessi-
bility of mental health services provided by Depart-
341
ment of Defense to the persons listed in subsection 
(b), including recommendations to ensure appro-
priate referrals and a seamless transition to the care 
of the Department of Veterans Affairs following sep-
aration from the Armed Forces; 
(2) for removing or mitigating any obstacles 
identified under subsection (c); and 
(3) for steps that can be taken by the Depart-
ment of Defense or Congress to bring parity to men-
tal health services available to members of Reserve 
components and members of the Armed Forces on 
active duty.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 801. RAPID ACQUISITION AUTHORITY TO RESPOND TO 
COMBAT EMERGENCIES. 
(a) IN GENERAL.—Chapter 141 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section:
342
‘‘§ 2410p. Rapid acquisition authority to respond to 
combat emergencies 
‘‘(a) RAPID ACQUISITION AUTHORITY.—The Sec-
retary of Defense may rapidly acquire, in accordance with 
this section, equipment needed by a combatant com-
mander to eliminate a combat capability deficiency that 
has resulted in combat fatalities. 
‘‘(b) PROCESS FOR RAPID ACQUISITION.—Not later 
than 30 days after the date of the enactment of this sec-
tion, the Secretary of Defense shall develop a process for 
the rapid acquisition authority provided by subsection (a) 
and submit to Congress a detailed explanation of the proc-
ess, including procedures to be followed in carrying out 
the process. The process shall provide for the following: 
‘‘(1) A requirement that the process may be 
used only to acquire the minimum amount of equip-
ment needed until the needs of the combatant com-
mander can be fulfilled under existing acquisition 
statutes, policies, directives, and regulations. 
‘‘(2) A goal of awarding a contract for the 
equipment within 15 days after receipt of a request 
from a commander. 
‘‘(3) In a case in which the equipment cannot 
be acquired without an extensive delay, a require-
ment for an interim solution to minimize the combat
343
capability deficiency and combat fatalities until the 
equipment can be acquired. 
‘‘(4) Waiver of the applicability of all policies, 
directives, and regulations related to—
‘‘(A) the establishment of the requirement 
for the equipment; 
‘‘(B) the research, development, test, and 
evaluation of the equipment; and 
‘‘(C) the solicitation and selection of 
sources, and the award of the contract, for pro-
curement of the equipment. 
‘‘(5) Such other procedures or requirements as 
the Secretary considers appropriate. 
‘‘(c) WAIVER OF CERTAIN STATUTES.—For purposes 
of exercising the authority provided by subsection (a) with 
respect to equipment, laws relating to the following shall 
not apply: 
‘‘(A) The establishment of the requirement for 
the equipment. 
‘‘(B) The research, development, test, and eval-
uation of the equipment. 
‘‘(C) The solicitation and selection of sources, 
and the award of the contract, for procurement of 
the equipment.
344
‘‘(d) LIMITATIONS.—The rapid acquisition authority 
provided by subsection (a) may be used only—
‘‘(1) after the Secretary of Defense, without 
delegation, determines in writing that there exists a 
combat capability deficiency that has resulted in 
combat fatalities; and 
‘‘(2) to acquire equipment in an amount aggre-
gating not more than $100,000,000 during a fiscal 
year. 
‘‘(e) SOURCE OF FUNDS.—For acquisitions under 
this section to be made during any fiscal year, the Sec-
retary may use any funds made available to the Depart-
ment of Defense for that fiscal year. 
‘‘(f) NOTIFICATION TO CONGRESS AFTER EACH USE 
OF AUTHORITY.—The Secretary of Defense shall notify 
the congressional defense committees within 15 days after 
each use of the authority provided by subsection (a). Each 
such notice shall identify the equipment to be acquired, 
the amount to be expended for such acquisition, and the 
source of funds for such acquisition. 
‘‘(g) COMBATANT COMMANDER.—In this section, the 
term ‘combatant commander’ means the commander of a 
unified combatant command with authority for the con-
duct of operations in a specific area of responsibility or
345
who otherwise has authority to conduct operations at the 
direction of the President or Secretary of Defense.’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2410p. Rapid acquisition authority to respond to combat emergencies.’’.
SEC. 802. DEFENSE ACQUISITION WORKFORCE CHANGES. 
(a) SELECTION CRITERIA AND PROCEDURES.—Sec-
tion 1732(b)(1)(A) of title 10, United States Code, is 
amended by striking ‘‘within grade GS–13 or above of the 
General Schedule’’ and inserting ‘‘in any position des-
ignated by the Secretary of Defense’’. 
(b) CRITICAL
ACQUISITION
POSITIONS.—Section 
1733 of such title is amended by striking subsection (b) 
and inserting the following: 
‘‘(b) DESIGNATION OF CRITICAL ACQUISITION.—(1) 
The Secretary of Defense shall designate the acquisition 
positions in the Department of Defense that are critical 
acquisition positions. Such positions shall include the fol-
lowing: 
‘‘(A) Program executive officer. 
‘‘(B) Program manager of a major defense ac-
quisition program (as defined in section 2430 of this 
title) or of a significant nonmajor defense acquisition 
program (as defined in section 1737(a)(3) of this 
title).
346
‘‘(C) Deputy program manager of a major de-
fense acquisition program. 
‘‘(D) Any other acquisition position of signifi-
cant responsibility determined by the Secretary to be 
critical. 
‘‘(2) The Secretary shall annually publish a list of 
the positions designated under this subsection.’’. 
(c) SCHOLARSHIP PROGRAMS.—Section 1742 of such 
title is amended—
(1) by inserting ‘‘(a) PROGRAMS.—’’ at the be-
ginning of the text; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) SCHOLARSHIP
PROGRAM
REQUIREMENTS.—
With respect to any scholarship program conducted under 
this section, the Secretary of Defense and the participant 
shall agree in writing to the terms of the scholarship. The 
agreement shall include the obligations of the Secretary 
and the participant, as well as actions available for either 
party to take if there is a failure to meet the obligations 
under the agreement.’’.
SEC. 803. LIMITATION ON TASK AND DELIVERY ORDER 
CONTRACTS. 
Subsection 2304a(f) of title 10, United States Code, 
is amended to read as follows:
347
‘‘(f) CONTRACT PERIOD.—The head of an agency en-
tering into a task or delivery order contract under this 
section may provide for the contract to cover any base pe-
riod up to five years and may extend the contract period 
for one or more successive periods pursuant to an option 
provided in the contract or a modification to the con-
tract.’’.
SEC. 804. FUNDING FOR CONTRACT CEILINGS FOR CER-
TAIN 
MULTIYEAR 
PROCUREMENT 
CON-
TRACTS. 
(a) MULTIYEAR CONTRACTS RELATING TO PROP-
ERTY.—Section 2306b(g) of title 10, United States Code, 
is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Before any’’; 
(2) by striking ‘‘Committee’’ through ‘‘House of 
Representatives’’ and inserting ‘‘congressional de-
fense committees’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) In the case of a contract described in subsection 
(a) with a cancellation ceiling described in paragraph (1), 
if the budget for the contract does not include proposed 
funding for the costs of contract cancellation up to the 
cancellation ceiling established in the contract, the head 
of the agency concerned shall, as part of the certification
348
required by subsection (i)(1)(A), give written notification 
to the congressional defense committees of—
‘‘(A) the cancellation ceiling amounts planned 
for each program year in the proposed multiyear 
procurement contract, together with the reasons for 
the amounts planned; 
‘‘(B) the extent to which costs of contract can-
cellation are not included in the budget for the con-
tract; and 
‘‘(C) a financial risk assessment of not includ-
ing budgeting for costs of contract cancellation, in-
cluding proposed funding sources to meet such can-
cellation costs if the contract is canceled.’’. 
(b) MULTIYEAR CONTRACTS RELATING TO SERV-
ICES.—Section 2306c(d) of title 10, United States Code, 
is amended—
(1) in paragraphs (1), (3), and (4), by striking 
‘‘committees of Congress named in paragraph (5)’’ 
and inserting ‘‘congressional defense committees’’ 
each place it appears; and 
(2) by amending paragraph (5) to read as fol-
lows: 
‘‘(5) In the case of a contract described in subsection 
(a) with a cancellation ceiling described in paragraph (4), 
if the budget for the contract does not include proposed
349
funding for the costs of contract cancellation up to the 
cancellation ceiling established in the contract, the head 
of the agency concerned shall give written notification to 
the congressional defense committees of—
‘‘(A) the cancellation ceiling amounts planned 
for each program year in the proposed multiyear 
procurement contract, together with the reasons for 
the amounts planned; 
‘‘(B) the extent to which costs of contract can-
cellation are not included in the budget for the con-
tract; and 
‘‘(C) a financial risk assessment of not includ-
ing budgeting for costs of contract cancellation, in-
cluding proposed funding sources to meet such can-
cellation costs if the contract is canceled.’’
SEC. 805. INCREASED THRESHOLD FOR REQUIRING CON-
TRACTORS 
TO 
PROVIDE 
SPECIFIED 
EM-
PLOYEE 
INFORMATION 
TO 
COOPERATIVE 
AGREEMENT HOLDERS. 
Section 2416(d) of title 10, United States Code, is 
amended 
by 
striking 
‘‘$500,000’’ 
and 
inserting 
‘‘$1,000,000’’.
350
SEC. 806. EXTENSION OF AUTHORITY FOR USE OF SIM-
PLIFIED ACQUISITION PROCEDURES. 
Section 4202(e) of the Clinger-Cohen Act (division D 
of Public Law 104–106; 110 Stat. 652; 10 U.S.C. 2304 
note) is amended by striking ‘‘January 1, 2006’’ and in-
serting ‘‘October 1, 2009’’.
SEC. 807. AUTHORITY TO ADJUST ACQUISITION-RELATED 
DOLLAR THRESHOLDS FOR INFLATION. 
(a) INFLATION
ADJUSTMENT
AUTHORITY.—The 
FAR Council and the heads of executive agencies may ad-
just the dollar thresholds in procurement laws in order to 
maintain the constant dollar value of the threshold, taking 
into account the effect of inflation on the threshold. 
(b) LIMITATION ON EXERCISE OF AUTHORITY.—Ad-
justments of dollar thresholds under subsection (a) may 
be carried out—
(1) by the FAR Council only with respect to 
procurement laws that apply to executive agencies 
generally; and 
(2) by the head of an executive agency only 
with respect to procurement laws that apply to that 
agency exclusively. 
(c) ADDITIONAL REQUIREMENTS.—In adjusting a 
threshold under subsection (a), the FAR Council and the 
head of an agency shall—
351
(2) consult with the Director of the Office of 
Management and Budget; 
(3) round the threshold, to facilitate implemen-
tation; and 
(4) publish the adjusted threshold in the Fed-
eral Register. 
(d) EXCLUSIONS.—This section does not apply to—
(1) dollar thresholds in sections 3141 through 
3144, 3146, and 3147 of title 40, United States 
Code; 
(2) dollar thresholds in the Service Contract 
Act of 1965 (41 U.S.C. 351, et seq.); or 
(3) dollar thresholds established by the United 
States Trade Representative pursuant to title III of 
the Trade Agreements Act of 1979 (19 U.S.C. 2511 
et seq.). 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘procurement law’’ means any 
provision of law that sets forth policies, procedures, 
requirements, or restrictions for the procurement of 
property or services by the Federal Government. 
(2) The terms ‘‘executive agency’’ and ‘‘pro-
curement’’ have the meanings provided by section 
4(1) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(1))
352
(3) The term ‘‘FAR Council’’ means the Fed-
eral Acquisition Regulatory Council established 
under section 25 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 421)). 
Subtitle B—United States Defense 
Industrial Base Provisions 
SEC. 811. DEFENSE TRADE RECIPROCITY. 
(a) IN GENERAL.—Chapter 148 of title 10, United 
States Code, is amended by inserting after section 2532 
the following new section:
‘‘§ 2532a. Defense trade reciprocity 
‘‘(a) POLICY.—(1) It is the policy of Congress that 
procurement regulations used in the conduct of trade in 
defense articles and defense services shall be based on the 
principle of fair trade and reciprocity consistent with 
United States national security, including the need to en-
sure comprehensive manufacturing capability in the 
United States defense industrial base for military system 
essential items. 
‘‘(2) The Secretary of Defense shall make every effort 
to ensure that the policies and practices of the Depart-
ment of Defense reflect the goal of establishing an equi-
table trading relationship between the United States and 
its foreign defense trade partners, including ensuring that 
United States firms and United States employment in the
353
defense sector are not disadvantaged by unilateral pro-
curement practices by foreign governments, such as the 
imposition of offset agreements or similar requirements in 
defense procurements by those governments. In pursuing 
this goal, the Secretary shall—
‘‘(A) develop a comprehensive defense acquisi-
tion trade policy that provides the necessary guid-
ance and incentives for the elimination of offset 
agreements as an accepted practice in defense trade; 
and 
‘‘(B) review and make necessary modifications 
to existing acquisition policies and strategies, and re-
view and seek to make necessary modifications to ex-
isting memoranda of understanding, cooperative 
project agreements, or related agreements with for-
eign defense trade partners, to reflect this goal. 
‘‘(b) REQUIREMENT.—The Secretary of Defense may 
not enter into a contract, or approve or permit any sub-
contract under a contract entered into by the Department 
of Defense, for the procurement of any defense article or 
defense service from a foreign firm unless the country in 
which the foreign firm performs substantially all of its 
manufacturing, production, and research and development 
activities in the performance of the contract (or sub-
contract) agrees to apply offset agreements to the procure-
354
ment of defense articles and defense services from the 
United States firms in the same manner and to the same 
degree as such agreements are applied by the Department 
of Defense to the procurement of defense articles and de-
fense services from that country. 
‘‘(c) EXCEPTION.—Subsection (b) does not apply to 
a contract or subcontract for the procurement of a defense 
article or defense service from a foreign firm if the Sec-
retary of Defense determines in writing, with respect to 
the specific contract or subcontract, that an exception to 
subsection (b) is necessary for the Department to be able 
to meet national security objectives.
‘‘(d) NOTIFICATION REQUIRED WHEN EXCEPTION 
APPLIED.—The Secretary of Defense may not apply an 
exception under subsection (c) until—
‘‘(1) a notification of the intent to apply such 
exception is submitted to the congressional defense 
committees and published in the Federal Register; 
and 
‘‘(2) a period of 30 days has expired after the 
date on which such notification is so submitted and 
published. 
‘‘(e) AUTHORITY TO APPLY EXCEPTION NOT DELE-
GABLE.—The authority of the Secretary to apply the ex-
ception under subsection (c) may not be delegated to any
355
officer or employee in a position at a level lower than the 
position of the Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics.–
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
regulations to implement this section in the Department 
of Defense supplement to the Federal Acquisition Regula-
tion. 
‘‘(g) EFFECTIVE DATE.—This section and the regu-
lations prescribed under this section shall apply to con-
tracts and subcontracts entered into on and after the date 
occurring one year after the date of the enactment of this 
Act. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘foreign firm’ means a business 
entity that performs substantially all of its manufac-
turing, production, and research and development 
activities outside of the United States. 
‘‘(2) The term ‘United States firm’ means a 
business entity that performs substantially all of its 
manufacturing, production, and research and devel-
opment activities in the United States. 
‘‘(3) The term ‘foreign defense trade partner’ 
means a foreign country with respect to which there 
is—
356
‘‘(A) a memorandum of understanding or 
related agreement described in section 2531(a) 
of title 10, United States Code; or 
‘‘(B) a cooperative project agreement de-
scribed in section 27 of the Arms Export Con-
trol Act (22 U.S.C. 2767). 
‘‘(4) The term ‘offset agreement’ has the mean-
ing provided that term by section 36(e) of the Arms 
Export Control Act (22 U.S.C. 2776(e)). 
‘‘(5) The terms ‘defense article’ and ‘defense 
service’ have the meanings provided those terms by 
section 47(7) of the Arms Export Control Act (22 
U.S.C. 2794(7)). 
‘‘(6) The term ‘military system essential item’ 
means an item on the military system essential item 
breakout list produced pursuant to section 813(b) of 
the National Defense Authorization Act for Fiscal 
Year 2004 (P.L. 108–136; 117 Stat. 1544).’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2532a. Defense trade reciprocity.’’.
357
SEC. 812. AMENDMENTS TO DOMESTIC SOURCE REQUIRE-
MENTS. 
(a) NOTICE.—Section 2533a of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) NOTIFICATION REQUIRED WHEN CERTAIN EX-
CEPTIONS APPLIED.—(1) Funds appropriated or other-
wise available to the Department of Defense may not be 
used to enter into a contract to procure an item described 
in subsection (b) pursuant to an exception set forth in sub-
section (c) or (e) until—
‘‘(A) a notification of the intent to apply such 
exception is submitted to Congress and posted on 
the website maintained by the General Services Ad-
ministration known as FedBizOpps.gov (or any suc-
cessor site); and 
‘‘(B) a period of 15 days has expired after the 
date on which such notification is so submitted and 
published. 
‘‘(2) In any case in which the Secretary of Defense 
or the Secretary of the military department concerned in-
tends to apply or applies the exception set forth in sub-
section (d)(1), the Secretary concerned shall submit to 
Congress a notification of such intent or such application 
during the period beginning six months before the date
358
of application of such exception and ending six months 
after the date of application of such exception.’’. 
(b) CLOTHING MATERIALS AND COMPONENTS COV-
ERED.—Subsection (b) of section 2533a of title 10, United 
States Code, is amended in paragraph (1)(B) by inserting 
before the semicolon the following: ‘‘and the materials and 
components thereof, other than sensors, electronics, or 
other items added to, and not normally associated with, 
clothing (and the materials and components thereof)’’.
SEC. 813. THREE-YEAR EXTENSION OF RESTRICTION ON AC-
QUISITION OF POLYACRYLONITRILE (PAN) 
CARBON FIBER FROM FOREIGN SOURCES. 
The Secretary of Defense shall delay by three years 
the phase-out of the restriction on acquisition of 
polyacrylonitrile (PAN) carbon fiber from foreign sources 
(described in subpart 225.7103 of the Department of De-
fense supplement to the Federal Acquisition Regulation). 
In implementing such delay, the Secretary shall revise the 
appplicable regulations to ensure that such restriction ap-
plies to—
(1) solicitations and contracts issued on or be-
fore May 31, 2006, for major systems that are not 
yet in production; and 
(2) solicitations and contracts issued during the 
period beginning June 1, 2006, and ending May 31,
359
2008, for major systems that are not yet in engi-
neering and manufacturing development. 
SEC. 814. GRANT PROGRAM FOR DEFENSE CONTRACTORS 
TO 
IMPLEMENT 
STRATEGIES 
TO 
AVOID 
OUTSOURCING OF JOBS. 
(a) GRANT PROGRAM AUTHORIZED.—The Secretary 
of Defense may make grants under this section for fiscal 
year 2005 to qualified defense contractor groups for the 
purposes described in subsection (b). 
(b) GRANT PURPOSES.—A grant may be made under 
this section for the purpose of implementing a strategy 
to avoid the outsourcing of jobs by a defense contractor, 
including the following strategies: 
(1) Cost-cutting measures. 
(2) Retraining programs. 
(3) Technology development. 
(4) Plant upgrades. 
(c) APPLICATION.—A grant may not be awarded 
under this section unless an application is submitted to, 
and approved by, the Secretary. Such an application—
(1) shall be submitted by a qualified defense 
contractor group in such form and manner as the 
Secretary may require; and 
(2) shall contain—
360
(A) a description of the strategy proposed 
for avoiding the outsourcing of at least 10 jobs 
in the performance of a defense contract by the 
defense contractor concerned; and 
(B) such other information as the Sec-
retary may require. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘qualified defense contractor 
group’’, with respect to a defense contractor, is a 
group or person representing—
(A) management of the contractor; 
(B) a labor organization that represents 
employees of the contractor; or 
(C) employees of the contractor. 
(2) The term ‘‘outsourcing’’, with respect to a 
defense contract, includes the performance outside 
the United States of work under the contract. 
(e) FEDERAL SHARE.—The Federal share of the 
costs of the strategy carried out with a grant under this 
section may not exceed 50 percent. 
(f) USE
OF DEFENSE INDUSTRIAL CAPABILITIES 
FUND FOR GRANTS.—(1) Notwithstanding section 814(c) 
of the National Defense Authorization Act for Fiscal Year 
2004 (P.L. 108–136; 117 Stat. 1545), amounts in the De-
361
fense Industrial Base Capabilities Fund may be used for 
grants under this section. 
(2) For fiscal year 2005, up to $50,000,000 of 
amounts available in such Fund may be used to carry out 
this section. 
(g) AUTHORIZATION OF FUNDS.—There are author-
ized to be appropriated to the Defense Industrial Base Ca-
pabilities Fund $50,000,000 for purposes of providing 
grants under this section. 
SEC. 815. PREFERENCE FOR DOMESTIC FREIGHT FOR-
WARDING SERVICES. 
(a) PREFERENCE.—In the procurement of transpor-
tation services described in subsection (b), the Secretary 
of Defense shall give preference to any freight forwarder 
that—
(1) certifies to the Department of Defense that 
it is owned and controlled by citizens of the United 
States; and 
(2) offers services at fair and reasonable rates. 
(b) SERVICES COVERED.—Subsection (a) applies to 
transportation services to, from, or within Iraq or Afghan-
istan, and warehousing, logistics, or other similar services 
performed within Iraq or Afghanistan.
362
Subtitle C—Other Acquisition 
Matters 
SEC. 821. SUSTAINMENT AND MODERNIZATION PLANS FOR 
EXISTING SYSTEMS WHILE REPLACEMENT 
SYSTEMS ARE UNDER DEVELOPMENT. 
(a) EXISTING SYSTEMS TO BE MAINTAINED WHILE 
REPLACEMENT SYSTEMS ARE UNDER DEVELOPMENT.—
(1) Chapter 144 of title 10, United States Code, is amend-
ed by inserting after section 2436 the following new sec-
tion:
‘‘§ 2437. Development of major defense acquisition 
programs: sustainment and moderniza-
tion of system to be replaced 
‘‘(a) REQUIREMENT FOR SUSTAINING AND MODERN-
IZING EXISTING FORCES.—(1) The Secretary of Defense 
shall require that, whenever a new major defense acquisi-
tion program begins development, the defense acquisition 
authority responsible for that program shall develop a plan 
(to be known as a sustainment and modernization plan) 
for the existing system that the system under development 
is intended to replace. Any such sustainment and mod-
ernization plan shall provide for budgeting, sustaining, 
and modernizing the existing system until the replacement 
system to be developed under the major defense acquisi-
tion program is fielded and assumes the majority responsi-
363
bility for the mission of the existing system. This section 
does not apply to a major defense acquisition that reaches 
initial operational capability before October 1, 2008. 
‘‘(2) In this section, the term ‘‘defense acquisition au-
thority’’ means the Secretary of a military department or 
the commander of the United States Special Operations 
Command. 
‘‘(b) SUSTAINMENT AND MODERNIZATION PLAN.—
The Secretary of Defense shall require that each 
sustainment and modernization plan under this section in-
clude, at a minimum, the following: 
‘‘(1) The milestone schedule for the develop-
ment of the major defense acquisition program, in-
cluding low-rate initial production, initial operational 
capability, full-rate production, full operational capa-
bility, and the date when the replacement system as-
sumes the majority responsibility for the mission of 
the existing system. 
‘‘(2) An analysis of the existing system to de-
termine the following: 
‘‘(A) A sustainment plan and budget re-
quirements necessary to provide service life ex-
tension to the existing system at acceptable reli-
ability and availability rates.
364
‘‘(B) A modernization plan and budget re-
quirements necessary to maintain mission capa-
bility against the relevant threats. 
‘‘(C) A modernization plan and budget re-
quirements necessary—
‘‘(i) to transfer mature technologies 
from the new system or other systems so 
that the mission capability of the existing 
system 
is 
enhanced 
against 
relevant 
threats; and 
‘‘(ii) to provide interoperability with 
the new system during the period from ini-
tial fielding until the new system assumes 
the majority of responsibility for the mis-
sion of the existing system. 
‘‘(c) ANNUAL REVIEW.—Each fiscal year, before the 
submission to Congress of the President’s budget for the 
next fiscal year, the Secretary of Defense shall review the 
schedule performance of each replacement major defense 
acquisition program for which a sustainment and mod-
ernization plan has been developed under this section to 
compare that performance with the schedule set forth 
under subsection (b)(1). If the schedule for the program 
has changed, then the Secretary shall notify the congres-
sional defense committees of such change.
365
‘‘(d) EXCEPTIONS.—Subsection (a) shall not apply to 
a major defense acquisition program if the Secretary of 
Defense determines that—
‘‘(1) the existing system is no longer relevant to 
the mission; 
‘‘(2) the mission has been eliminated; 
‘‘(3) the mission has been consolidated with an-
other mission in such a manner that another exist-
ing system can adequately meet the mission require-
ments; or 
‘‘(4) the duration of time until the new system 
assumes the majority of responsibility for the exist-
ing system’s mission is sufficiently short so that mis-
sion availability, capability, interoperability, and 
force protection requirements are maintained. 
‘‘(e) WAIVER.—The Secretary of Defense may waive 
the applicability of subsection (a) to a major defense ac-
quisition program if the Secretary determines that, but for 
such a waiver, the Department would be unable to meet 
national security objectives. Whenever the Secretary 
makes such a determination and authorizes such a waiver, 
the Secretary shall submit notice of such waiver and of 
the Secretary’s determination and the reasons therefor in 
writing to the congressional defense committees.’’.
366
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 2436 the following new item:
‘‘2437. Development of major defense acquisition programs: sustainment and 
modernization of system to be replaced.’’.
(b) APPLICATION TO EXISTING PROGRAMS IN DE-
VELOPMENT.—Section 2437 of title 10, United States 
Code, as added by subsection (a), shall apply with respect 
to a major defense acquisition program that is under de-
velopment as of the date of the enactment of this Act and 
is not expected to reach initial operational capability be-
fore October 1, 2008. The Secretary of Defense shall re-
quire that a sustainment and modernization plan under 
that section be developed not later than one year after the 
date of the enactment of this Act for the existing system 
that the system under development is intended to replace. 
SEC. 822. REVIEW AND DEMONSTRATION PROJECT RELAT-
ING TO CONTRACTOR EMPLOYEES. 
(a) GENERAL REVIEW.—(1) The Secretary of De-
fense shall conduct a review of policies, procedures, prac-
tices, and penalties of the Department of Defense relating 
to employees of defense contractors for purposes of ensur-
ing that the Department of Defense is in compliance with 
Executive Order No. 12989 (relating to a prohibition on 
entering into contracts with contractors that are not in 
compliance with the Immigration and Nationality Act).
367
(2) In conducting the review, the Secretary shall—
(A) identify potential weaknesses and areas for 
improvement in existing policies, procedures, prac-
tices, and penalties; 
(B) develop and implement reforms to strength-
en, upgrade, and improve policies, procedures, prac-
tices, and penalties of the Department of Defense 
and its contractors; and 
(C) review and analyze reforms developed pur-
suant to this paragraph to identify for purposes of 
national implementation those which are most effi-
cient and effective. 
(3) The review under this subsection shall be com-
pleted not later than 180 days after the date of the enact-
ment of this Act. 
(b) DEMONSTRATION PROJECT.—The Secretary of 
Defense shall conduct a demonstration project in accord-
ance with this section, in one or more regions selected by 
the Secretary, for purposes of promoting greater con-
tracting opportunities for contractors offering effective, 
reliable staffing plans to perform defense contracts that 
ensure all contract personnel employed for such projects, 
including management employees, professional employees, 
craft labor personnel, and administrative personnel, are 
lawful residents or persons properly authorized to be em-
368
ployed in the United States and properly qualified to per-
form services required under the contract. The demonstra-
tion project shall focus on contracts for construction, ren-
ovation, maintenance, and repair services for military in-
stallations. 
(c) DEMONSTRATION PROJECT PROCUREMENT PRO-
CEDURES.—As part of the demonstration project under 
subsection (b), the Secretary of Defense shall conduct a 
competition in which there is a provision in contract solici-
tations and request for proposal documents to require sig-
nificant weight or credit be allocated to—
(1) reliable, effective workforce programs of-
fered by prospective contractors that provide back-
ground checks and other measures to ensure the 
contractor is in compliance with the Immigration 
and Nationality Act; and 
(2) reliable, effective project staffing plans of-
fered by prospective contractors that specify for all 
contract employees (including management employ-
ees, professionals, and craft labor personnel) the 
skills, training, and qualifications of such persons 
and the labor supply sources and hiring plans or 
procedures used for employing such persons. 
(d) 
IMPLEMENTATION
OF
DEMONSTRATION 
PROJECT.—The Secretary of Defense shall begin oper-
369
ation of the demonstration project required under this sec-
tion after completion of the review under subsection (a), 
but in no event later than 270 days after the date of the 
enactment of this Act. 
(e) REPORT
ON DEMONSTRATION PROJECT.—Not 
later than six months after award of a contract under the 
demonstration project, the Secretary of Defense shall sub-
mit to the Committees on Armed Services of the Senate 
and House of Representatives a report setting forth a re-
view of the demonstration project and recommendations 
on the actions, if any, that can be implemented to ensure 
compliance by the Department of Defense with Executive 
Order No. 12989. 
(f) DEFINITION.—In this section, the term ‘‘military 
installation’’ means a base, camp, post, station, yard, cen-
ter, homeport facility for any ship, or other activity under 
the jurisdiction of the Department of Defense, including 
any leased facility, which is located within any of the sev-
eral States, the District of Columbia, the Commonwealth 
of Puerto Rico, American Samoa, the Virgin Islands, or 
Guam. Such term does not include any facility used pri-
marily for civil works, rivers and harbors projects, or flood 
control projects.
370
SEC. 823. DEFENSE ACQUISITION WORKFORCE LIMITATION 
AND REPORTS. 
(a) DEFENSE ACQUISITION
AND SUPPORT PER-
SONNEL LIMITATION.—(1) Effective October 1, 2005, the 
number of defense acquisition and support personnel in 
the Department of Defense may not exceed 95 percent of 
the baseline number. 
(2) For purposes of paragraph (1), the baseline num-
ber is the number of defense acquisition and support per-
sonnel as of October 1, 2004. 
(3) All determinations of personnel strengths for pur-
poses of this section shall be on the basis of full-time 
equivalent positions. 
(b) GAO STUDY AND REPORT ON DEFENSE ACQUISI-
TION AND SUPPORT PERSONNEL.—(1) The Comptroller 
General shall conduct a study of Department of Defense 
management of defense acquisition and support personnel. 
The study shall include—
(A) an analysis of the number and structure of 
defense acquisition and support personnel; and 
(B) an assessment of the size, mission, com-
position, and projected workload requirements of de-
fense acquisition and support personnel. 
(2) The Comptroller General shall submit to the 
Committees on Armed Services of the Senate and the 
House of Representatives a report on the results of the
371
study conducted under this subsection not later than 
March 1, 2005. 
(c) DEFENSE ACQUISITION UNIVERSITY STUDY AND 
REPORT ON DEFENSE ACQUISITION AND SUPPORT PER-
SONNEL.—(1) The Defense Acquisition University shall 
conduct a study of all the training programs offered to 
defense acquisition and support personnel. 
(2) The Defense Acquisition University shall submit 
to the Committees on Armed Services of the Senate and 
the House of Representatives a report on the results of 
the study conducted under this subsection not later than 
March 1, 2005. The report shall include—
(A) the number of individuals currently cer-
tified within the field they are working in; and 
(B) recommendations on how to improve edu-
cation and productivity for defense acquisition and 
support personnel, including recommendations for 
additional training program requirements. 
(d) DEFINITION.—In this section, the term ‘‘defense 
acquisition and support personnel’’ means members of the 
Armed Forces and civilian personnel (other than civilian 
personnel who are employed at a maintenance depot) who 
are assigned to, or employed in, acquisition organizations 
of the Department of Defense (as specified in Department 
of Defense Instruction numbered 5000.58, dated January
372
14, 1992), and any other organization that, as determined 
by the Secretary, has acquisition as its predominant mis-
sion. 
SEC. 824. PROVISION OF INFORMATION TO CONGRESS TO 
ENHANCE TRANSPARENCY IN CONTRACTING. 
Upon request of the chairman or ranking member of 
the Committee on Armed Services of the Senate or House 
of Representatives, the Secretary of Defense shall provide, 
with respect to any contract or task or delivery order 
under a task or delivery order contract entered into by 
the Department of Defense, within 14 days after receipt 
of the request, unredacted copies of any documents re-
quired to be maintained in the contracting office contract 
file, the contract administration office contract file, and 
the paying office contract file pursuant to subpart 4.8 of 
the Federal Acquisition Regulation, including—
(1) copies of the contract and all modifications; 
(2) orders issued under the contract; 
(3) justifications and approvals; 
(4) any government estimate of contract price; 
(5) source selection documentation; 
(6) cost or price analysis; 
(7) audit reports; 
(8) justification for type of contract;
373
(9) authority for deviations from regulations, 
statutory requirements, or other restrictions; 
(10) bills, invoices, vouchers, and supporting 
documents; and 
(11) records of payments or receipts.
SEC. 825. REQUIREMENT TO TREAT SURETIES IN SAME 
MANNER AS FINANCING INSTITUTIONS WHEN 
CONTRACTORS DEFAULT. 
(a) AMENDMENT TO TITLE 31.—Section 3727(c) of 
title 31, United States Code, is amended by inserting 
‘‘surety on a bond provided in connection with a contract 
or other’’ before ‘‘financing institution’’. 
(b) AMENDMENT TO REVISED STATUTES.—Section 
3737(b) of the Revised Statutes (41 U.S.C. 15) is amend-
ed in the first sentence by inserting ‘‘surety on a bond 
provided in connection with a contract,’’ before ‘‘or other 
financing institution’’.
SEC. 826. PROVISIONS RELATING TO CREATION OF JOBS IN 
THE UNITED STATES BY DEFENSE CONTRAC-
TORS. 
(a) AUTHORITY TO EXCLUDE CERTAIN SOURCES ON 
BASIS OF CREATION OF JOBS IN UNITED STATES.—Sec-
tion 2304(b)(1) of title 10, United States Code, is amend-
ed—
374
(1) by striking ‘‘or’’ at the end of subparagraph 
(E); 
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(G) would create jobs in the United States.’’. 
(b) REQUIREMENT TO INCLUDE CREATION OF JOBS 
IN UNITED STATES AS EVALATION FACTOR.—(1) Section 
2305(a)(3)(A) of title 10, United States Code, is amend-
ed—
(A) by striking ‘‘and’’ at the end of clause (ii); 
(B) by redesignating clause (iii) as clause (iv); 
and 
(C) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) shall include the creation of jobs in the 
United States as an evaluation factor that must be 
considered in the evaluation of proposals; and’’. 
(2) Section 2305(a)(3)(B) of such title is amended 
by striking ‘‘clause (iii)’’ and inserting ‘‘clause (iv)’’.
375
TITLE 
IX—DEPARTMENT 
OF
DEFENSE 
ORGANIZATION 
AND MANAGEMENT
SEC. 901. CHANGE IN TITLE OF SECRETARY OF THE NAVY 
TO SECRETARY OF THE NAVY AND MARINE 
CORPS. 
(a) CHANGE IN TITLE.—The position of the Sec-
retary of the Navy is hereby redesignated as the Secretary 
of the Navy and Marine Corps. 
(b) REFERENCES.—Any reference to the Secretary of 
the Navy in any law, regulation, document, record, or 
other paper of the United States shall be considered to 
be a reference to the Secretary of the Navy and Marine 
Corps.
SEC. 902. TRANSFER OF CENTER FOR THE STUDY OF CHI-
NESE MILITARY AFFAIRS FROM NATIONAL 
DEFENSE UNIVERSITY TO UNITED STATES-
CHINA ECONOMIC AND SECURITY REVIEW 
COMMISSION. 
(a) TRANSFER.—The Center for the Study of Chinese 
Military Affairs established by section 914 of the National 
Defense Authorization Act for Fiscal Year 2000 (10 
U.S.C. 2165 note) is transferred from the National De-
fense University of the Department of Defense to the
376
United States-China Economic and Security Review Com-
mission. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 914 of the National Defense Authorization Act for 
2000 (10 U.S.C. 2165 note) is amended to read as follows: 
‘‘(a) ESTABLISHMENT.—There shall be a Center for 
the Study of Chinese Military Affairs organized under the 
United States-China Economic and Security Review Com-
mission established by section 1238 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal 
Year 2001 (22 U.S.C. 7002).’’. 
(c) REPEAL OF OBSOLETE PROVISIONS.—Such sec-
tion is further amended by striking subsections (d) and 
(e). 
(d) TECHNICAL
AMENDMENTS
TO
COMMISSION 
CHARTER.—(1) Section 1238(c) of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 
(22 U.S.C. 7002) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(beginning in 2002)’’; and 
(B) by adding at the end the following new 
sentence: ‘‘The report shall include a full dis-
cussion of the activities of the Commission 
under each of the subparagraphs of paragraph 
(2).’’; and
377
(2) in paragraph (2)—
(A) by striking the matter preceding sub-
paragraph (A) and inserting the following: 
‘‘(2) AREAS OF FOCUS.—The Commission shall 
focus, in lieu of any other area of work or study, on 
the following:’’; and 
(B) 
by 
replacing 
subparagraphs 
(A) 
through (J) with the text of subparagraphs (A) 
through (I) of section 2(c)(2) of division P of 
Public Law 108–7 (22 U.S.C. 7002 note). 
(2) Section 2(c)(2) of division P of Public Law 108–
7 (22 U.S.C. 7002 note) is repealed. 
(e) EFFECTIVE
DATE.—Subsection (a) and the 
amendment made by subsection (b) shall take effect at the 
end of the 90-day period beginning on the date of the en-
actment of this Act.
SEC. 903. TRANSFER TO SECRETARY OF THE ARMY OF RE-
SPONSIBILITY FOR ASSEMBLED CHEMICAL 
WEAPONS ALTERNATIVES PROGRAM. 
Effective January 1, 2005, the text of section 142 
of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105–261; 50 U.S.C. 
1521 note) is amended to read as follows:
378
‘‘(a) PROGRAM MANAGEMENT.—(1) The program 
manager for the Assembled Chemical Weapons Alter-
natives program shall report to the Secretary of the Army. 
‘‘(2) The Secretary of the Army shall provide for that 
program to be managed as part of the management orga-
nization within the Department of the Army specified in 
section 1412(e) of Public Law 99–145 (50 U.S.C. 
1521(e)). 
‘‘(b) CONTINUED IMPLEMENTATION OF PREVIOUSLY 
SELECTED ALTERNATIVE TECHNOLOGIES.—(1) In car-
rying out the destruction of lethal chemical munitions at 
Pueblo Chemical Depot, Colorado, the Secretary of the 
Army shall continue to implement fully the alternative 
technology for such destruction at that depot selected by 
the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics on July 16, 2002. 
‘‘(2) In carrying out the destruction of lethal chem-
ical munitions at Blue Grass Army Depot, Kentucky, the 
Secretary of the Army shall continue to implement fully 
the alternative technology for such destruction at that 
depot selected by the Under Secretary of Defense for Ac-
quisition, Technology, and Logistics on February 3, 
2003.’’.
379
SEC. 904. MODIFICATION OF OBLIGATED SERVICE RE-
QUIREMENTS UNDER NATIONAL SECURITY 
EDUCATION PROGRAM. 
(a) IN GENERAL.—Subsection (b)(2) of section 802 
of the David L. Boren National Security Education Act 
of 1991 (50 U.S.C. 1902) is amended by striking subpara-
graphs (A) and (B), as added by section 925(a) of the 
National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108–136; 117 Stat. 1578), and inserting the 
following: 
‘‘(A) in the case of a recipient of a scholar-
ship, as soon as practicable but in no case later 
than three years after the completion by the re-
cipient of the study for which scholarship as-
sistance was provided under the program, the 
recipient shall work for a period of one year—
‘‘(i) in a national security position 
that the Secretary certifies is appropriate 
to use the unique language and region ex-
pertise acquired by the recipient pursuant 
to such study in the Department of De-
fense, in any element of the intelligence 
community, in the Department of Home-
land Security, or in the Department of 
State; or
380
‘‘(ii) in such a position in any other 
Federal department or agency not referred 
to in clause (i) if the recipient dem-
onstrates to the Secretary that no position 
is available in a Federal department or 
agency specified in clause (i); or 
‘‘(B) in the case of a recipient of a fellow-
ship, as soon as practicable but in no case later 
than two years after the completion by the re-
cipient of the study for which fellowship assist-
ance was provided under the program, the re-
cipient shall work for a period equal to the du-
ration of assistance provided under the pro-
gram, but in no case less than one year—
‘‘(i) in a position described in sub-
paragraph (A)(i) that the Secretary cer-
tifies is appropriate to use the unique lan-
guage and region expertise acquired by the 
recipient pursuant to such study; or 
‘‘(ii) in such a position in any other 
Federal department or agency not referred 
to in clause (i) if the recipient dem-
onstrates to the Secretary that no position 
is available in a Federal department or 
agency specified in clause (i); and’’.
381
(b) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out the amendment made 
by subsection (a). In prescribing such regulations, the Sec-
retary shall establish standards that recipients of scholar-
ship and fellowship assistance under the program under 
such section 802 are required to demonstrate to satisfy 
the requirement of a good faith effort to gain employment 
as required under subparagraphs (A) and (B) of sub-
section (b)(2) of such section. 
(c) APPLICABILITY.—(1) The amendment made by 
subsection (a) shall apply with respect to service agree-
ments entered into under the David L. Boren National 
Security Education Act of 1991 on or after the date of 
the enactment of this Act. 
(2) The amendment made by subsection (a) shall not 
affect the force, validity, or terms of any service agreement 
entered into under the David L. Boren National Security 
Education Act of 1991 before the date of the enactment 
of this Act that is in force as of that date.
SEC. 905. CHANGE OF MEMBERSHIP OF CERTAIN COUN-
CILS. 
(a) MEMBERSHIP OF ARMED FORCES POLICY COUN-
CIL.—Section 171(a) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph:
382
‘‘(14) The Commandant of the Coast Guard, 
for discussion of matters pertaining to the Coast 
Guard.’’. 
(b) MEMBERSHIP
OF COUNCIL UNDER SECTION 
179.—Subsection (a) of section 179 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) The Under Secretary of Defense for Pol-
icy.’’. 
(b) CONFORMING AND CLARIFYING AMENDMENTS.—
Such subsection is further amended in the matter pre-
ceding paragraph (1)—
(1) by striking ‘‘Joint’’; and 
(2) by striking ‘‘composed of three members as 
follows:’’ and inserting ‘‘operated as a joint activity 
of the Department of Defense and the Department 
of Energy. The membership of the Council is com-
prised of the following officers of those depart-
ments:’’. 
(c) OTHER TECHNICAL AND CLARIFYING AMEND-
MENTS.—Such section is further amended as follows: 
(1) Subsection (c)(3)(B) is amended by striking 
‘‘appointed’’ and inserting ‘‘designated’’.
383
(2) Subsection (e) is amended by striking ‘‘In 
addition’’ and all that follows through ‘‘also’’ and in-
serting ‘‘The Council shall’’. 
(3) Subsection (f) is amended by striking 
‘‘Committee on’’ the first place it appears and all 
that follows through ‘‘Representatives’’ and inserting 
‘‘congressional defense committees’’. 
(d) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended as follows: 
(1) Subsection (a) is amended by inserting ‘‘ES-
TABLISHMENT; MEMBERSHIP.—’’ after ‘‘(a)’’. 
(2) Subsection (b) is amended by inserting 
‘‘CHAIRMAN; MEETINGS.—’’ after ‘‘(b)’’. 
(3) Subsection (c) is amended by inserting 
‘‘STAFF
AND ADMINISTRATIVE SERVICES; STAFF 
DIRECTOR.—’’ after ‘‘(c)’’. 
(4) Subsection (d) is amended by inserting 
‘‘RESPONSIBILITIES.—’’ after ‘‘(d)’’. 
(5) Subsection (e) is amended by inserting 
‘‘REPORT ON DIFFICULTIES RELATING TO SAFETY 
OR RELIABILITY.—’’ after ‘‘(e)’’. 
(6) Subsection (f) is amended by inserting ‘‘AN-
NUAL REPORT.—’’ after ‘‘(f)’’.
384
(e) FURTHER CONFORMING AMENDMENT.—Section 
3212(e) of the National Nuclear Security Administration 
Act (50 U.S.C. 2402(e)) is amended—
(1) by striking ‘‘JOINT’’ in the subsection head-
ing; and 
(2) by striking ‘‘Joint’’.
SEC. 906. ACTIONS TO PREVENT THE ABUSE OF DETAIN-
EES. 
(a) POLICIES REQUIRED.—The Secretary of Defense 
shall prescribe policies regarding procedures for the 
Armed Forces and other elements of the Department of 
Defense and contractor personnel of the Department of 
Defense intended to prevent the conditions leading to acts 
of abuse of detainees who are held by the United States 
as part of the Global War on Terrorism. Policies under 
this subsection shall be prescribed not later than 120 days 
after the date of the enactment of this Act. 
(b) MATTERS TO BE INCLUDED.—In order to achieve 
the objective stated in subsection (a), the policies on the 
prevention of abuse of detainees under that subsection 
shall specify, at a minimum, procedures for the following: 
(1) Ensuring that commanders of detention fa-
cilities and commanders of interrogation facilities 
provide all assigned personnel (including contractor 
personnel) with training, and documented acknowl-
385
edgement of receiving training, regarding the Gene-
va Convention Relative to the Treatment of Pris-
oners of War and established Standing Operating 
Procedures for the treatment of detainees. Training 
provided under this paragraph to contractor per-
sonnel shall be at least comparable in degree to that 
provided to members of the Armed Forces. 
(2) Providing all detainees with information, in 
their own language, of the protections afforded 
under the Geneva Convention Relative to the Treat-
ment of Prisoners of War. 
(3) Conducting periodic unannounced and an-
nounced inspections of prisons and other areas 
where detainees are held in order to provide contin-
ued oversight of interrogation and detention oper-
ations. 
(4) Prohibiting contact between male guards 
and female detainees and between female guards 
and male detainees, except under exigent cir-
cumstances. 
(c) REPORTS TO CONGRESS.—The Secretary of De-
fense shall submit to the Committees on Armed Services 
of the Senate and House of Representatives—
386
(1) a copy of the policies prescribed pursuant to 
subsection (a), immediately after those policies are 
prescribed; and 
(2) a report on the implementation of those 
policies, not later than one year after the date on 
which those policies are prescribed.
SEC. 907. RESPONSES TO CONGRESSIONAL INQUIRIES. 
(a) IN GENERAL.—(1) Chapter 3 of title 10, United 
States Code, is amended by inserting after section 113a 
the following new section:
‘‘§ 113b. Response to congressional inquiries 
‘‘Whenever the Secretary of Defense or any other of-
ficial of the Department of Defense is requested by the 
chairman of the Committee on Armed Services of the Sen-
ate or the chairman of the Committee on Armed Services 
of the House of Representatives to respond to a question 
or inquiry submitted by the chairman or another member 
of that committee pursuant to a committee hearing or 
other activity, the Secretary (or other official) shall re-
spond to the request, in writing, within 21 days of the 
date on which the request is transmitted to the Secretary 
(or other official).’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting
387
after the item relating to section 113a the following new 
item:
‘‘113b. Response to congressional inquiries.’’.
SEC. 908. SECRETARY OF DEFENSE GUIDANCE ON IDENTI-
FICATION AND INTERNAL TRANSMISSION OF 
CRITICAL INFORMATION. 
(a) DEFENSE GUIDANCE.—The Secretary of Defense 
shall establish criteria for determining the types of critical 
information required to be made known expeditiously to 
senior decision makers in the Department of Defense. The 
types of information specified should be matters of ex-
traordinary significance and potential strategic impact 
and should be immediately necessary to facilitate timely 
information management in the high-level, decision-mak-
ing process affecting successful mission accomplishment. 
The Secretary may from time to time modify the list to 
suit the current strategic situation, as necessary. The Sec-
retary should provide to the Secretaries of the military de-
partments, the commanders of deployed forces, and other 
elements of the Department of Defense guidance for the 
purposes of identifying those critical information require-
ments. 
(b) MATTERS TO BE INCLUDED.—The guidance 
under subsection (a) shall include, at a minimum, require-
ment for identification of the following:
388
(1) Any incident that may require a military 
contingency based on the incident’s nature, gravity, 
or potential for significant adverse consequences to 
United States citizens, military personnel, or assets, 
including an incident that provides opportunities for 
significant adverse publicity of a nature that could 
have a strategic impact. 
(2) Any event, development, or situation that 
can be reasonably assumed to escalate into a signifi-
cant adverse incident described in paragraph (1). 
(3) Any deficiency or error in policy, standards, 
or training that can be reasonably assumed to foster 
significant adverse incidents described in paragraph 
(1). 
(c) POLICY FOR TRANSMISSION OF INFORMATION TO 
OSD.—The Secretary of Defense shall establish a policy 
for the transmission from any element of the Department 
of Defense as expeditiously as possible to the Secretary 
of Defense and the Joint Chiefs of Staff of any report, 
assessment, or evaluation commissioned from any level 
within the Department of Defense that results in the iden-
tification of any of the items on the list required by sub-
section (a). As part of that policy, the Secretary should 
establish a timetable for transmission of any such report, 
assessment, or evaluation to the responsible major com-
389
mand upon receipt of the final document by the commis-
sioning authority. 
(d) TIME FOR ISSUANCE OF GUIDANCE.—The Sec-
retary of Defense shall establish the list required by sub-
section (a) and issue the guidance required by that sub-
section not later than 90 days after the date of the enact-
ment of this Act.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) Upon determination by the Secretary of Defense that 
such action is necessary in the national interest, the Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 2005 between any such authorizations for that 
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and be 
available for the same purposes as the authorization to 
which transferred. 
(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section 
may not exceed $3,000,000,000. Of such amount, 
$500,000,000 may be used only for a transfer from an 
account for an active component to an account for a re-
390
serve component, or from an account of a reserve compo-
nent to an account of an active component, of the same 
Armed Force. 
(b) LIMITATIONS.—The authority provided by this 
section to transfer authorizations—
(1) may only be used to provide authority for 
items that have a higher priority than the items 
from which authority is transferred; 
(2) may not be used to provide authority for an 
item that has been denied authorization by Con-
gress; and 
(3) may not be combined with the authority 
provided under section 1519. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the 
amount authorized for the account to which the amount 
is transferred by an amount equal to the amount trans-
ferred. 
(d) NOTICE
TO CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under 
subsection (a).
391
SEC. 1002. BUDGET JUSTIFICATION DOCUMENTS FOR OP-
ERATION AND MAINTENANCE. 
(a) IN GENERAL.—(1) Chapter 9 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 232. Operations and maintenance budget presen-
tation 
‘‘(a) IN GENERAL.—In this section 
‘‘(1) The term ‘O&M justification documents’ 
means Department of Defense budget justification 
documents with respect to accounts for operation 
and maintenance submitted to the congressional de-
fense committees in support of the Department of 
Defense component of the President’s budget for 
any fiscal year. 
‘‘(2) The term ‘President’s budget’ means the 
budget of the President submitted to Congress 
under section 1105 of title 31 for any fiscal year. 
‘‘(3) The term ‘current year’ means the fiscal 
year during which the President’s budget is sub-
mitted in any year. 
‘‘(b) IDENTIFICATION
OF BASELINE AMOUNTS
IN 
O&M JUSTIFICATION DOCUMENTS.—In any case in which 
the amount requested in the President’s budget for a fiscal 
year for a Department of Defense operations and mainte-
nance program, project, or activity is different from the
392
amount appropriated for that program, project, or activity 
for the current year, the O&M justification documents 
supporting that budget shall identify that appropriated 
amount and the difference between that amount and the 
amount requested in the budget, stated as an amount and 
as a percentage. 
‘‘(c) PERSONAL SERVICE CONTRACTS.—In the O&M 
justification documents for any fiscal year, costs pro-
grammed in the budget for that fiscal year for Department 
of Defense for personal service contracts, and the number 
of personal service contractors to be used by the Depart-
ment of Defense during that fiscal year who will be com-
pensated at an annual rate in excess of the annual rate 
of salary of the Vice President under section 104 of title 
3, shall be separately set forth and identified. 
‘‘(d) NAVY SUBACTIVITIES FOR SHIP DEPOT MAIN-
TENANCE
AND
FOR
INTERMEDIATE
SHIP
MAINTE-
NANCE.—In the O&M justification documents for the 
Navy for any fiscal year, amounts requested for ship depot 
maintenance and amounts requested for intermediate ship 
maintenance shall be set forth as separate budget sub-
activity groups. 
‘‘(e) CIVILIAN AVERAGE SALARY COSTS.—In the 
O&M justification documents for any fiscal year, average 
civilian salary costs, shown by subactivity group, shall be
393
set forth as a component of the personnel summary ex-
hibit.’’.
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item:
‘‘232. Operations and maintenance budget presentation.’’.
(b) COMPONENTS OF LINE ITEMS FOR OTHER COSTS 
AND OTHER CONTRACTS.—Not later than March 1, 2005, 
the Secretary of Defense shall submit to the congressional 
defense committees a report setting forth the component 
elements of the line items identified as ‘‘Other Costs’’ and 
‘‘Other Contracts’’ in the exhibit identified as ‘‘Summary 
of Price and Program Changes’’ in the budget justification 
materials submitted to those committees in support of the 
budget for fiscal year 2006.
SEC. 1003. RETENTION OF FEES FROM INTELLECTUAL 
PROPERTY LICENSES. 
(a) IN GENERAL.—Chapter 165 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 2788. Licensing of intellectual property of the mili-
tary departments; authority to charge 
and retain fees 
‘‘(a) AUTHORITY TO RETAIN FEES.—(1) Under reg-
ulations prescribed by the Secretary of Defense, the Sec-
retary concerned may license trademarks, service marks,
394
certification marks, and collective marks owned by a mili-
tary department and may retain and expend fees received 
from such licensing in accordance with subsection (b). 
‘‘(2) In this section, the terms ‘trademark’, ‘service 
mark’, ‘certification mark’, ‘collective mark’, and ‘mark’ 
have the meanings given those terms in section 45 of the 
Trademark Act of 1946 (15 U.S.C. 1127). 
‘‘(b) USE OF LICENSING FEES.—(1) Funds received 
by a military department from licensing under subsection 
(a)(1) shall be used for the expenses incurred by the de-
partment in securing the registration of marks owned by 
the department and in licensing those marks. 
‘‘(2) If the amount of fees received by a military de-
partment during any fiscal year from the licensing of 
marks exceeds the anticipated expenses under paragraph 
(1) during that year, the Secretary concerned may des-
ignate those funds as excess and expend them as provided 
in paragraph (3). 
‘‘(3) Not more than 50 percent of any such excess 
funds shall be available for military personnel recruiting 
and retention activities of the department. The remainder 
of such funds shall be available for morale, welfare, and 
recreation activities of the department.
395
‘‘(4) Funds received pursuant to subsection (a)(1) 
shall remain available for two years after the end of the 
fiscal year during which the funds are received.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘2788. Licensing of intellectual property of the military departments; authority 
to charge and retain fees.’’.
SEC. 1004. AUTHORITY TO WAIVE CLAIMS OF THE UNITED 
STATES WHEN AMOUNTS RECOVERABLE ARE 
LESS THAN COSTS OF COLLECTION. 
(a) AUTHORITY.—Chapter 165 of title 10, United 
States Code, is amended by inserting after section 2780 
the following new section: 
‘‘§ 2780a. Debt collection: general waiver authority 
for small amounts owed the United States 
‘‘(a) AUTHORITY.—In the case of an indebtedness to 
the United States described in subsection (b) that is for 
an amount that is less than the threshold amount specified 
in subsection (c), the Secretary of Defense may, under 
regulations prescribed under this section, cancel the in-
debtedness and waive recovery of the amount owed. Such 
authority may be used only when, based on a cost-benefit 
analysis, the Secretary determines that the costs of collec-
tion are expected to exceed the amount recoverable.
396
‘‘(b) COVERED DEBTS.—(1) Except as provided in 
paragraph (2), this section applies with respect to 
amounts owed to the United States that arise out of the 
activities of, or that are referred to, the Department of 
Defense (including amounts owed by members of the 
armed forces and Department of Defense civilian per-
sonnel). 
‘‘(2) The authority under this section does not apply 
to amounts owed to the United States arising out of activi-
ties of the Department of Defense that have been referred 
to another executive agency for collection action or that 
are otherwise within the purview of another executive 
agency. 
‘‘(c) MAXIMUM AMOUNT WAIVABLE.—The threshold 
amount referred to in subsection (a) is the micropurchase 
threshold amount in effect under section 32 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 428). 
‘‘(d) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations for the purposes of this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 2780 the following new 
item:
‘‘2780a. Debt collection: general waiver authority for small amounts owed the 
United States.’’.
397
SEC. 1005. REPEAL OF FUNDING RESTRICTIONS CON-
CERNING DEVELOPMENT OF MEDICAL COUN-
TERMEASURES AGAINST BIOLOGICAL WAR-
FARE THREATS. 
(a) REPEAL.—Section 2370a of title 10, United 
States Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 139 of such title is amended 
by striking the item relating to that section.
SEC. 1006. REPORT ON BUDGETING FOR EXCHANGE RATES 
FOR FOREIGN CURRENCY FLUCTUATIONS. 
(a) SECRETARY
OF DEFENSE REPORT.—(1) Not 
later than December 1, 2004, the Secretary Defense shall 
submit to the Committees on Armed Services of the Sen-
ate and House of Representatives a report on the foreign 
currency exchange rate projection used in annual Depart-
ment of Defense budget presentations. 
(2) In the report under paragraph (1), the Secretary 
shall—
(A) identify alternative approaches for selecting 
foreign currency exchange rates that would produce 
more realistic estimates of amounts required to be 
appropriated or otherwise made available for the De-
partment of Defense to accommodate foreign cur-
rency exchange rate fluctuations;
398
(B) address the advantages and disadvantages 
of each approach identified pursuant to subpara-
graph (A); 
(C) identify the Secretary’s preferred approach 
among the alternatives identified pursuant to sub-
paragraph (A) and provide the Secretary’s rationale 
for preferring that approach. 
(3) In identifying alternative approaches pursuant to 
paragraph (2)(A), the Secretary shall examine—
(A) approaches used by other Federal depart-
ments and agencies; and 
(B) the feasibility of using private economic 
forecasting. 
(b) COMPTROLLER GENERAL REVIEW
AND RE-
PORT.—The Comptroller General of the United States 
shall review the report under subsection (a), including the 
basis for the Secretary’s conclusions stated in the report, 
and shall submit to the Committees on Armed Services 
of the Senate and House of Representatives a report con-
taining the Comptroller General’s conclusions with respect 
to that report. Such report shall be submitted not later 
than January 15, 2005.
SEC. 1007. FISCAL YEAR 2004 TRANSFER AUTHORITY. 
Section 1001(a)(2) of the National Defense Author-
ization Act for Fiscal Year 2004 (Public Law 108–136;
399
117 Stat. 1582) is amended by striking ‘‘$2,500,000,000’’ 
and inserting ‘‘$3,000,000,000’’. 
SEC. 1008. REPORT ON AMOUNTS REMITTED AND REIM-
BURSED DURING FISCAL YEAR 2004 UNDER 
SECTION 1007 OF PUBLIC LAW 108–136. 
Not later than 30 days after the end of fiscal year 
2004, the Secretary of Defense shall submit to the con-
gressional defense committees a report on amounts remit-
ted and reimbursed during fiscal year 2004 under section 
1007 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108–136; 117 Stat. 1585; 10 
U.S.C. 2241 note).
Subtitle B—Naval Vessels and 
Shipyards
SEC. 1011. AUTHORITY FOR AWARD OF CONTRACTS FOR 
SHIP DISMANTLING ON NET-COST BASIS. 
(a) IN GENERAL.—Chapter 633 of title 10, United 
States Code, is amended by inserting after section 7305 
the following new section: 
‘‘§ 7305a. Vessels stricken from Naval Vessel Register: 
contracts for dismantling on net-cost 
basis 
‘‘(a) AUTHORITY
FOR
NET-COST
BASIS
CON-
TRACTS.—When the Secretary of the Navy awards a con-
tract for the dismantling of a vessel stricken from the
400
Naval Vessel Register, the Secretary may award the con-
tract on a net-cost basis. 
‘‘(b) RETENTION BY CONTRACTOR OF PROCEEDS OF 
SALE OF SCRAP AND REUSABLE ITEMS.—When the Sec-
retary awards a contract on a net-cost basis under sub-
section (a), the Secretary shall provide in the contract that 
the contractor may retain the proceeds from the sale of 
scrap and reusable items removed from the vessel disman-
tled under the contract. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘net-cost basis’, with respect to 
a contract for the dismantling of a vessel, means 
that the amount to be paid to the contractor under 
the contract for dismantling and for removal and 
disposal of hazardous waste material is discounted 
by the offeror’s estimate of the value of scrap and 
reusable items that the contractor will remove from 
the vessel during performance of the contract. 
‘‘(2) The term ‘scrap’ means personal property 
that has no value except for its basic material con-
tent. 
‘‘(3) The term ‘reusable item’ means a demili-
tarized component or a removable portion of a vessel 
or equipment that the Secretary of the Navy has 
identified as excess to the needs of the Navy but
401
which has potential resale value on the open mar-
ket.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 7305 the following new 
item:
‘‘7305a. Vessels stricken from Naval Vessel Register: contracts for dismantling 
on net-cost basis.’’.
SEC. 1012. INDEPENDENT STUDY TO ASSESS COST EFFEC-
TIVENESS OF THE NAVY SHIP CONSTRUC-
TION PROGRAM. 
(a) STUDY.—The Secretary of Defense shall provide 
for a study, to be conducted by an entity independent of 
the Department of Defense, of the cost effectiveness of 
the ship construction program of the Navy. The purpose 
of the study shall be to examine both—
(1) a variety of approaches by which the Navy 
ship construction program could be made more effi-
cient in the near term; and 
(2) a variety of approaches by which, with a na-
tionally integrated effort over the next decade, the 
United States shipbuilding industry might be made 
competitive globally. 
(b) NEAR TERM IMPROVEMENTS IN EFFICIENCY.—
With respect to the examination under subsection (a)(1) 
of approaches by which the Navy ship construction pro-
402
gram could be made more efficient in the near term, the 
Secretary shall provide for the entity conducting the 
study—
(1) to determine, with respect to each approach 
so examined, the cost savings that could result from 
implementation of that approach over each of the 
next 10 years; 
(2) to recommend one or more of the ap-
proaches examined under subsection (a)(1) for im-
plementation; and 
(3) for each approach recommended under 
paragraph (2) for implementation, to develop a con-
cept and implementation plan by which the rec-
ommended improvements could best be phased into 
the naval ship construction program. 
(c) GLOBAL COMPETITIVENESS OF UNITED STATES 
SHIPBUILDING INDUSTRY.—With respect to the examina-
tion under subsection (a)(2) of approaches by which, with 
a nationally integrated effort over the next decade, the 
United States shipbuilding industry might be made com-
petitive globally, the Secretary shall provide for the entity 
conducting the study—
(1) to develop a plan to modernize the United 
States shipbuilding infrastructure within the next
403
decade in order to make the United States ship-
building industry more competitive globally; and 
(2) to estimate the resources required to carry 
out a modernization plan developed under paragraph 
(1). 
(d) REPORT.—Not later than June 1, 2005, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report providing the results of the study 
under subsection (a). The report shall include the matters 
specified in subsections (b) and (c).
SEC. 1013. AUTHORITY TO TRANSFER SPECIFIED FORMER 
NAVAL VESSELS TO CERTAIN FOREIGN COUN-
TRIES. 
(a) AUTHORITY
TO
TRANSFER
BY GRANT.—The 
Prsident is authorized to transfer vessels to foreign coun-
tries on a grant basis under section 516 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j), as follows: 
(1) CHILE.—The ‘‘SPRUANCE’’ class de-
stroyer O’BANNON (DD–987) to the Government 
of Chile. 
(2) PORTUGAL.—The ‘‘OLIVER HAZARD 
PERRY’’ class guided missile frigate GEORGE 
PHILIP (FFG–12) to the Government of Portugal. 
(b) AUTHORITY TO TRANSFER BY SALE.—The Presi-
dent is authorized to transfer on a sale basis under section
404
21 of the Arms Export Control Act (22 U.S.C. 2761) the 
‘‘ANCHORAGE’’ class dock landing ship ANCHORAGE 
(LSD–36) to the Taipei Economic and Cultural Rep-
resentative Office in the United States (which is the Tai-
wan instrumentality designated pursuant to section 10(a) 
of the Taiwan Relations Act). 
(c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF 
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 
of a vessel transferred to another country on a grant basis 
under section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) pursuant to authority provided by sub-
section (a) shall not be counted for the purposes of sub-
section (g) of that section in the aggregate value of excess 
defense articles transferred to countries under that section 
in any fiscal year. 
(d) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient (notwith-
standing section 516(e) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j (e)) in the case of a transfer au-
thorized to be made on a grant basis under subsection 
(a)). 
(e) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the
405
transfer of a vessel under this section, that the country 
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed, before the vessel 
joins the naval forces of that country, performed at a ship-
yard located in the United States, including a United 
States Navy shipyard. 
(f) EXPIRATION OF AUTHORITY.—The authority to 
transfer a vessel under this section shall expire at the end 
of the two-year period beginning on the date of the enact-
ment of this Act.
SEC. 1014. LIMITATION ON LEASING OF FOREIGN-BUILT 
VESSELS. 
(a) IN GENERAL.—(1) Chapter 141 of title 10, 
United States Code, is amended by inserting after section 
2401a the following new section:
‘‘§ 2401b. Limitation on lease of foreign-built vessels 
‘‘(a) LIMITATION.—The Secretary of a military de-
partment may not make a contract for a lease or charter 
of a vessel for a term of more than 12 months (including 
all options to renew or extend the contract) if the hull, 
a major component of the hull, or superstructure of the 
vessel is constructed in a foreign shipyard. 
‘‘(b) PRESIDENTIAL WAIVER FOR NATIONAL SECU-
RITY INTEREST.—(1) The President may authorize excep-
tions to the limitation in subsection (a) when the President
406
determines that it is in the national security interest of 
the United States to do so. 
‘‘(2) The President shall transmit notice to Congress 
of any such determination, and no contract may be made 
pursuant to the exception authorized until the end of the 
30-day period beginning on the date on which the notice 
of the determination is received by Congress.’’.
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 2401a the following new item:
‘‘2401b. Limitation on lease of foreign-built vessels.’’.
(b) EFFECTIVE DATE.—Section 2401b of title 10, 
United States Code, as added by subsection (a), shall 
apply with respect to contracts entered into after the date 
of the enactment of this Act.
Subtitle C—Sunken Military Craft 
SEC. 1021. PRESERVATION OF TITLE TO SUNKEN MILITARY 
CRAFT AND ASSOCIATED CONTENTS. 
Right, title, and interest of the United States in and 
to any United States sunken military craft shall not be 
extinguished by the passage of time, regardless of when 
the sunken military craft sank. 
SEC. 1022. PROHIBITIONS. 
(a) UNAUTHORIZED
ACTIVITIES
DIRECTED
AT 
SUNKEN MILITARY CRAFT.—No person shall engage in 
or attempt to engage in any activity directed at a sunken
407
military craft that disturbs, removes, or injures any sunk-
en military craft, except—
(1) as authorized by a permit under this sub-
title; 
(2) as authorized by regulations issued under 
this subtitle; or 
(3) as otherwise authorized by law. 
(b) POSSESSION OF SUNKEN MILITARY CRAFT.—No 
person may possess, disturb, remove, or injure any sunken 
military craft in violation of—
(1) this section; or 
(2) any prohibition, rule, regulation, ordinance, 
or permit that applies under any other applicable 
Federal, foreign, or other law. 
(c) LIMITATIONS ON APPLICATION.—
(1) ACTIONS BY UNITED STATES.—This section 
shall not apply to actions taken by, or at the direc-
tion of, the United States. 
(2) FOREIGN PERSONS.—This section shall not 
apply to any action by a person who is not a citizen, 
national, or resident alien of the United States, ex-
cept in accordance with—
(A) generally recognized principles of inter-
national law;
408
(B) an agreement between the United 
States and the foreign country of which the 
person is a citizen; or 
(C) in the case of an individual who is a 
crew member or other individual on a foreign 
vessel or foreign aircraft, an agreement between 
the United States and the flag State of the for-
eign vessel or aircraft that applies to the indi-
vidual. 
(3) LOAN OF SUNKEN MILITARY CRAFT.—This 
section does not prohibit the loan of United States 
sunken military craft in accordance with regulations 
issued by the Secretary concerned. 
SEC. 1023. PERMITS. 
(a) IN GENERAL.—The Secretary concerned may 
issue a permit authorizing a person to engage in an activ-
ity otherwise prohibited by section 1022 with respect to 
a United States military craft, for archaeological, histor-
ical, or educational purposes, in accordance with regula-
tions issued by such Secretary that implement this section. 
(b) CONSISTENCY WITH OTHER LAWS.—The Sec-
retary concerned shall require that any activity carried out 
under a permit issued by such Secretary under this section 
must be consistent with all requirements and restrictions 
that apply under any other provision of Federal law.
409
(c) CONSULTATION.—In carrying out this section (in-
cluding the issuance after the date of the enactment of 
this Act of regulations implementing this section), the Sec-
retary concerned shall consult with the head of each Fed-
eral agency having authority under Federal law with re-
spect to activities directed at sunken military craft or the 
locations of such craft. 
SEC. 1024. PENALTIES. 
(a) IN GENERAL.—Any person who violates this sub-
title, or any regulation or permit issued under this sub-
title, shall be liable to the United States for a civil penalty 
under this section. 
(b) ASSESSMENT AND AMOUNT.—The Secretary con-
cerned may assess a civil penalty under this section, after 
notice and an opportunity for a hearing, of not more than 
$100,000 for each violation. 
(c) CONTINUING VIOLATIONS.—Each day of a contin-
ued violation of this subtitle or a regulation or permit 
issued under this subtitle shall constitute a separate viola-
tion for purposes of this section. 
SEC. 1025. LIABILITY FOR DAMAGES. 
(a) IN GENERAL.—Any person who engages in an ac-
tivity in violation of section 1022 or any regulation or per-
mit issued under this subtitle that disturbs, removes, or 
injures any United States sunken military craft shall pay
410
the United States enforcement costs and damages result-
ing from such disturbance, removal, or injury. 
(b) INCLUDED DAMAGES.—Damages referred to in 
subsection (a) may include—
(1) the reasonable costs incurred in storage, 
restoration, care, maintenance, conservation, and 
curation of any sunken military craft that is dis-
turbed, removed, or injured in violation of section 
1022 or any regulation or permit issued under this 
subtitle; and 
(2) the cost of retrieving, from the site where 
the sunken military craft was disturbed, removed, or 
injured, any information of an archaeological, histor-
ical, or cultural nature. 
SEC. 1026. RELATIONSHIP TO OTHER LAWS. 
(a) IN GENERAL.—Except to the extent that an ac-
tivity is undertaken as a subterfuge for activities prohib-
ited by this subtitle, nothing in this subtitle is intended 
to affect—
(1) any activity that is not directed at a sunken 
military craft; or 
(2) the traditional high seas freedoms of navi-
gation, including—
(A) the laying of submarine cables and 
pipelines;
411
(B) operation of vessels; 
(C) fishing; or 
(D) other internationally lawful uses of the 
sea related to such freedoms. 
(b) INTERNATIONAL LAW.—This subtitle and any 
regulations implementing this subtitle shall be applied in 
accordance with generally recognized principles of inter-
national law and in accordance with the treaties, conven-
tions, and other agreements to which the United States 
is a party. 
(c) LAW OF FINDS.—The law of finds shall not apply 
to any United States sunken military craft, wherever lo-
cated. 
(d) LAW OF SALVAGE.—No salvage rights or awards 
shall be granted with respect to any sunken military craft 
without the express permission of the United States. 
(e) LAW OF CAPTURE OR PRIZE.—Nothing in this 
subtitle is intended to alter the international law of cap-
ture or prize with respect to sunken military craft. 
(f) LIMITATION OF LIABILITY.—Nothing in sections 
4281 through 4287 and 4289 of the Revised Statutes (46 
U.S.C. App. 181 et seq.) or section 3 of the Act of Feb-
ruary 13, 1893 (chapter 105; 27 Stat. 445; 46 U.S.C. 
App. 192), shall limit the liability of any person under this 
section.
412
(g) AUTHORITIES OF THE COMMANDANT OF THE 
COAST GUARD.—Nothing in this subtitle is intended to 
preclude or limit the application of any other law enforce-
ment authorities of the Commandant of the Coast Guard. 
(h) PRIOR DELEGATIONS, AUTHORIZATIONS, AND 
RELATED REGULATIONS.—Nothing in this subtitle shall 
invalidate any prior delegation, authorization, or related 
regulation that is consistent with this subtitle. 
(i) CRIMINAL LAW.—Nothing in this subtitle is in-
tended to prevent the United States from pursuing crimi-
nal sanctions for plundering of wrecks, larceny of Govern-
ment property, or violation of any applicable criminal law. 
SEC. 1027. ENCOURAGEMENT OF AGREEMENTS WITH FOR-
EIGN COUNTRIES. 
The Secretary of State, in consultation with the Sec-
retary of Defense, is encouraged to negotiate and conclude 
bilateral and multilateral agreements with foreign coun-
tries with regard to sunken military craft consistent with 
this subtitle. 
SEC. 1028. DEFINITIONS. 
In this subtitle: 
(1) ASSOCIATED CONTENTS.—The term ‘‘asso-
ciated contents’’ means—
413
(A) the equipment, cargo, and contents of 
a sunken military craft that are within its de-
bris field; and 
(B) the remains and personal effects of the 
crew and passengers of a sunken military craft 
that are within its debris field. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of a military department. 
(3) SUNKEN
MILITARY
AIRCRAFT.—The term 
‘‘sunken military aircraft’’ means any sunken mili-
tary aircraft that was owned or operated by the 
United States when it sank. 
(4) SUNKEN
MILITARY
CRAFT.—The term 
‘‘sunken military craft’’ means any sunken military 
vessel, sunken military aircraft, or associated con-
tents, or any portion thereof, the title to which has 
not been abandoned or transferred in a manner pre-
scribed by the United States. 
(5) SUNKEN
MILITARY
VESSEL.—The term 
‘‘sunken military vessel’’ means any sunken warship 
or naval auxiliary of the United States that is a pub-
lic vessel as that term is used in the Act of March 
3, 1925 (chapter 428; 46 U.S.C. App. 781 et seq.), 
popularly known as the Public Vessels Act.
414
(6) UNITED STATES CONTIGUOUS ZONE.—The 
term ‘‘United States contiguous zone’’ means the 
contiguous zone of the United States under Presi-
dential Proclamation 7219, dated September 2, 
1999. 
(7) UNITED STATES INTERNAL WATERS.—The 
term ‘‘United States internal waters’’ means all wa-
ters of the United States on the landward side of the 
baseline from which the breadth of the United 
States territorial sea is measured. 
(8) UNITED STATES TERRITORIAL SEA.—The 
term ‘‘United States territorial sea’’ means the wa-
ters of the United States territorial sea under Presi-
dential Proclamation 5928, dated December 27, 
1988. 
(9) UNITED
STATES
WATERS.—The 
term 
‘‘United States waters’’ means United States inter-
nal waters, the United States territorial sea, and the 
United States contiguous zone.
415
Subtitle D—Counter-Drug 
Activities
SEC. 1031. CONTINUATION OF AUTHORITY TO USE DEPART-
MENT OF DEFENSE FUNDS FOR UNIFIED 
COUNTERDRUG 
AND 
COUNTERTERRORISM 
CAMPAIGN IN COLOMBIA. 
(a) AUTHORITY TO PROVIDE ASSISTANCE.—During 
fiscal years 2005 and 2006, the Secretary of Defense may 
use funds made available to the Department of Defense 
for drug interdiction and counter-drug activities to provide 
assistance to the Government of Colombia—
(1) to support a unified campaign against nar-
cotics trafficking in Colombia; 
(2) to support a unified campaign against ac-
tivities by designated terrorist organizations, such as 
the Revolutionary Armed Forces of Colombia 
(FARC), the National Liberation Army (ELN), and 
the United Self-Defense Forces of Colombia (AUC); 
and 
(3) to take actions to protect human health and 
welfare in emergency circumstances, including un-
dertaking rescue operations. 
(b) RELATION
TO OTHER ASSISTANCE AUTHOR-
ITY.—The authority provided by subsection (a) is in addi-
416
tion to other provisions of law authorizing the provision 
of assistance to the Government of Colombia.
SEC. 1032. LIMITATION ON NUMBER OF UNITED STATES 
MILITARY PERSONNEL IN COLOMBIA. 
(a) LIMITATION.—None of the funds available to the 
Department of Defense for any fiscal year may be used 
to support or maintain more than 500 members of the 
Armed Forces on duty in the Republic of Colombia at any 
time. 
(b) EXCLUSION OF CERTAIN MEMBERS.—For pur-
poses of determining compliance with the limitation in 
subsection (a), the Secretary of Defense may exclude the 
following military personnel: 
(1) A member of the Armed Forces in the Re-
public of Colombia for the purpose of rescuing or re-
trieving United States military or civilian Govern-
ment personnel, except that the period for which 
such a member may be so excluded may not exceed 
30 days unless expressly authorized by law. 
(2) A member of the Armed Forces assigned to 
the United States Embassy in Colombia as an 
attache´, as a member of the security assistance of-
fice, or as a member of the Marine Corps security 
contingent.
417
(3) A member of the Armed Forces in Colombia 
to participate in relief efforts in responding to a nat-
ural disaster. 
(4) Nonoperational transient military personnel. 
(5) A member of the Armed Forces making a 
port call from a military vessel in Colombia. 
Subtitle E—Reports
SEC. 1041. STUDY OF CONTINUED REQUIREMENT FOR TWO-
CREW MANNING FOR BALLISTIC MISSILE 
SUBMARINES. 
(a) STUDY AND DETERMINATION.—The Secretary of 
Defense shall conduct a study of whether the practice of 
using two alternating crews (referred to as the ‘‘Gold 
Crew’’ and the ‘‘Blue Crew’’) for manning of ballistic mis-
sile submarines (SSBNs) continues to be justified under 
the changed circumstances since the end of the Cold War 
and, based on that study, shall make a determination of 
whether that two-crew manning practice should be contin-
ued or should be modified or terminated. 
(b) REPORT.—Not later than six months after the 
date of the enactment of this Act, the Secretary shall sub-
mit to the Committees on Armed Services of the Senate 
and House of Representatives a report providing notice 
of the Secretary’s determination under subsection (a) and 
the reasons for that determination.
418
SEC. 1042. STUDY OF EFFECT ON DEFENSE INDUSTRIAL 
BASE OF ELIMINATION OF UNITED STATES 
DOMESTIC 
FIREARMS 
MANUFACTURING 
BASE. 
Not later than 60 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report describ-
ing in detail the effect on both military readiness and the 
defense industrial base that would result from the elimi-
nation of the United States domestic firearms manufac-
turing base. 
SEC. 1043. STUDY OF EXTENT AND QUALITY OF TRAINING 
PROVIDED TO MEMBERS OF THE ARMED 
SERVICES TO PREPARE FOR POST-CONFLICT 
OPERATIONS. 
(a) STUDY REQUIRED.—The Secretary of Defense 
shall conduct a study to determine the extent to which 
members of the Armed Forces assigned to duty in support 
of contingency operations receive training in preparation 
for post-conflict operations and to evaluate the quality of 
such training 
(b) MATTERS INCLUDED IN STUDY.—As part of the 
study under subsection (a), the Secretary shall specifically 
evaluate the following: 
(1) The doctrine, training, and leader-develop-
ment system necessary to enable members of the
419
Armed Forces to successfully operate in post-conflict 
operations. 
(2) The adequacy of curricula at military edu-
cational facilities to ensure that the Armed Forces 
has a cadre of members skilled in post-conflict du-
ties, foreign languages, and foreign cultures. 
(3) The training time and resources available to 
members and units to develop cultural awareness 
about ethnic backgrounds, religious beliefs, and po-
litical loyalties of the people living in areas in which 
the Armed Forces operate. 
(4) The organization of the combatant com-
mands to conduct post-conflict operations. 
(c) SUBMISSION
OF STUDY RESULTS.—Not later 
than March 15, 2005, the Secretary of Defense shall sub-
mit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of 
Representatives a report containing the results of the 
study conducted under this section. 
Subtitle F—Security Matters
SEC. 1051. USE OF NATIONAL DRIVER REGISTER FOR PER-
SONNEL SECURITY INVESTIGATIONS AND DE-
TERMINATIONS. 
Section 30305(b) of title 49, United States Code, is 
amended—
420
(1) by redesignating paragraphs (9) through 
(11) as paragraphs (10) through (12), respectively; 
and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) An individual who has or is seeking access to 
national security information for purposes of Executive 
Order No. 12968, or any successor Executive order, or 
an individual who is being investigated for Federal em-
ployment under authority of Executive Order No. 10450, 
or any successor Executive order, may request the chief 
driver licensing official of a State to provide information 
about the individual pursuant to subsection (a) of this sec-
tion to a Federal department or agency that is authorized 
to investigate the individual for the purpose of assisting 
in the determination of the eligibility of the individual for 
access to national security information or for Federal em-
ployment. A Federal department or agency that receives 
such information about an individual may use it in accord-
ance with applicable law.’’. 
SEC. 1052. STANDARDS FOR DISQUALIFICATION FROM ELI-
GIBILITY FOR DEPARTMENT OF DEFENSE SE-
CURITY CLEARANCE. 
(a) DISQUALIFIED PERSONS.—Subsection (c)(1) of 
section 986 of title 10, United States Code, is amended—
421
(1) by striking ‘‘and’’ and inserting ‘‘, was’’; 
and 
(2) and inserting before the period at the end 
the following: ‘‘, and was incarcerated as a result of 
that sentence for not less than one year’’. 
(b) WAIVER AUTHORITY.—Subsection (d) of such 
section is amended to read as follows: 
‘‘(d) WAIVER AUTHORITY.—In a meritorious case, an 
exception to the prohibition in subsection (a) may be au-
thorized for a person described in paragraph (1) or (4) 
of subsection (c) if there are mitigating factors. Any such 
waiver may be authorized only in accordance with stand-
ards and procedures prescribed by, or under the authority 
of, an Executive orders or other guidance issued by the 
President.’’.
Subtitle G—Transportation-Related 
Matters
SEC. 1061. USE OF MILITARY AIRCRAFT TO TRANSPORT 
MAIL TO AND FROM OVERSEAS LOCATIONS. 
(a) AUTHORITY FOR USE OF MILITARY AIRCRAFT.—
Section 3401 of title 39, United States Code, is amend-
ed—
(1) in subsection (b)—
(A) in the matter preceding paragraph 
(1)(A), by striking ‘‘title 49,’’ and inserting
422
‘‘title 49, or on military aircraft at rates not to 
exceed those so fixed and determined for sched-
uled United States air carriers,’’; and 
(B) in the sentence following paragraph 
(3), by striking ‘‘carriers’’ each place it appears 
and inserting ‘‘carriers and military aircraft’’; 
and 
(2) in subsection (c)—
(A) in the first sentence, by striking ‘‘title 
49,’’ and inserting ‘‘title 49, or on military air-
craft at rates not to exceed those so fixed and 
determined for scheduled United States air car-
riers,’’; and 
(B) in the second sentence—
(i) by inserting ‘‘and military air-
craft’’ after ‘‘carriers’’ the first place it ap-
pears; and 
(ii) by striking ‘‘by air carriers other 
than scheduled United States air carriers’’ 
and inserting ‘‘by other than scheduled 
United States air carriers and military air-
craft’’. 
(b) DEFINITION.—Such section is further amended 
by adding at the end the following new subsection:
423
‘‘(g) In this section, the term ‘military aircraft’ 
means an aircraft owned, operated, or chartered by the 
Department of Defense.’’.
SEC. 1062. REORGANIZATION AND CLARIFICATION OF CER-
TAIN PROVISIONS RELATING TO CONTROL 
AND 
SUPERVISION 
OF 
TRANSPORTATION 
WITHIN THE DEPARTMENT OF DEFENSE. 
(a) TRANSFER OF CERTAIN TRANSPORTATION AU-
THORITIES.—Sections 4744, 4745, 4746, and 4747 of 
title 10, United States Code, are transferred to chapter 
157 of such title, inserted (in that order) at the end of 
such chapter, and redesignated as sections 2648, 2649, 
2650, and 2651, respectively. 
(b) CLARIFICATION OF APPLICABILITY OF TRANS-
FERRED AUTHORITIES THROUGHOUT THE DEPARTMENT 
OF DEFENSE.—(1) Section 2648 of such title, as trans-
ferred and redesignated by subsection (a), is amended—
(A) by striking ‘‘Secretary of the Army’’ in the 
matter preceding paragraph (1) and inserting ‘‘Sec-
retary of Defense’’; 
(B) by striking ‘‘Army transport agencies’’ in 
the matter preceding paragraph (1) and all that fol-
lows through ‘‘military transport agency of’’; and 
(C) by striking paragraphs (1), (2), and (3);
424
(D) by redesignating paragraph (4), (5), (6), 
and (7) as paragraphs (1), (2), (3), and (4), respec-
tively; 
(E) by redesignating paragraph (8) as para-
graph (5) and in that paragraph striking ‘‘persons 
described in clauses (1), (2), (4), (5), and (7)’’ and 
inserting ‘‘members of the armed forces, officers and 
employees of the Department of Defense or the 
Coast Guard, and persons described i paragraphs 
(1), (2), and (4)’’; and 
(F) by striking ‘‘clause (7) or (8)’’ in the last 
sentence and inserting ‘‘paragraph (4) or (5)’’. 
(2) Section 2649 of such title, as transferred and re-
designated by subsection (a), is amended—
(A) by striking the section heading and insert-
ing the following: 
‘‘§ 2649. Civilian passengers and commercial cargoes: 
transportation on Department of Defense 
vessels’’; 
(B) by striking ‘‘(1) on vessels’’ and all that 
follows through ‘‘Department of the Army’’; 
(C) by striking ‘‘any transport agency of’’; and 
(D) by striking ‘‘Secretary of the Army’’ and all 
that follows through ‘‘be transported’’ and inserting 
‘‘Secretary of Defense, be transported’’.
425
(3) Section 2650 of such title, as transferred and re-
designated by subsection (a), is amended—
(A) in the matter preceding paragraph (1), by 
striking ‘‘Army transport agencies’’ and all that fol-
lows through ‘‘military transport agency of’’; 
(B) in paragraph (1), by striking ‘‘Secretary of 
the Army’’ and inserting ‘‘Secretary of Defense’’; 
and 
(C) in paragraph (4), by striking ‘‘by air—’’ 
and all that follows through ‘‘the transportation can-
not’’ and inserting ‘‘by air, the transportation can-
not’’. 
(4) Section 2651 of such title, as transferred and re-
designated by subsection (a), is amended by striking 
‘‘Army transport agencies’’ and all that follows and insert-
ing ‘‘the Department of Defense, under regulations and 
at rates to be prescribed by the Secretary of Defense.’’. 
(c) REPEAL OF SUPERSEDED AND OBSOLETE PROVI-
SIONS.—The following sections of such title are repealed: 
sections 4741, 4743, 9741, 9743, and 9746. 
(d) CLERICAL AMENDMENTS.—
(1) The table of sections at the beginning of 
chapter 157 of such title is amended by adding at 
the end the following new items:
‘‘2648. Persons and supplies: sea transportation. 
‘‘2649. Civilian passengers and commercial cargoes: transportation on Depart-
ment of Defense vessels.
426
‘‘2650. Civilian personnel in Alaska. 
‘‘2651. Passengers and merchandise to Guam: sea transport.’’.
(2) The table of sections at the beginning of 
chapter 447 of such title is amended by striking the 
items relating to sections 4741, 4743, 4744, 4745, 
4746, and 4747. 
(3) The table of sections at the beginning of 
chapter 947 of such title is amended by striking the 
items relating to sections 9741, 9743, and 9746.
SEC. 1063. DETERMINATION OF WHETHER PRIVATE AIR 
CARRIERS ARE CONTROLLED BY UNITED 
STATES CITIZENS FOR PURPOSES OF ELIGI-
BILITY FOR GOVERNMENT CONTRACTS FOR 
TRANSPORTATION OF PASSENGERS OR SUP-
PLIES. 
Section 2710 of the Emergency Wartime Supple-
mental Appropriations Act, 2003 (Public Law 108–11; 
117 Stat. 601), is amended by adding at the end the fol-
lowing new sentence: ‘‘Any determination for purposes of 
this section of whether (in accordance with the first pro-
viso of this section) an air carrier is effectively controlled 
by citizens of the United States shall be made by, or shall 
be based on determinations made by, the Secretary of 
Transportation.’’.
427
SEC. 1064. EVALUATION OF WHETHER TO PROHIBIT CER-
TAIN OFFERS FOR TRANSPORTATION OF SE-
CURITY-SENSITIVE CARGO. 
(a) EVALUATION REQUIREMENT.—The Secretary of 
Defense shall evaluate whether, and under what cir-
cumstances, in the award of service contracts for domestic 
freight transportation for security-sensitive cargo (such as 
arms, ammunitions, explosive, and classified material), the 
Secretary should not consider an offer or tender from 
more than one motor carrier that is part of a group of 
motor carriers under common financial or administrative 
control. In conducting the evaluation, the Secretary shall 
seek industry comment. 
(b) REPORT.—Not later than January 1, 2005, the 
Secretary of Defense shall submit to the Committees on 
Armed Services of the House of Representatives and the 
Senate a report on the results of the evaluation conducted 
under subsection (a).
SEC. 1065. PHASED IMPLEMENTATION OF NEW PROGRAM 
FOR TRANSPORTING HOUSEHOLD GOODS OF 
MEMBERS OF THE ARMED FORCES. 
The Secretary of Defense may not implement the new 
program for the transportation of household goods of 
members of the Armed Forces and their dependents be-
yond phase I of the program, which includes the testing 
of electronic bill processing at 14 sites, until the Secretary
428
submits to Congress a report evaluating whether Phase 
I met its objectives and whether it is in the best interest 
of the Department of Defense and members of the Armed 
Forces to move forward to Phase II of the program.
Subtitle H—Other Matters
SEC. 1071. TWO-YEAR EXTENSION OF AUTHORITY OF THE 
SECRETARY OF DEFENSE TO ENGAGE IN 
COMMERCIAL ACTIVITIES AS SECURITY FOR 
INTELLIGENCE 
COLLECTION 
ACTIVITIES 
ABROAD. 
Section 431(a) of title 10, United States Code, is 
amended by striking ‘‘December 31, 2004’’ and inserting 
‘‘December 31, 2006’’.
SEC. 1072. ASSISTANCE FOR STUDY OF FEASIBILITY OF BI-
ENNIAL INTERNATIONAL AIR TRADE SHOW 
IN THE UNITED STATES AND FOR INITIAL IM-
PLEMENTATION. 
(a) ASSISTANCE
FOR
COMMUNITY
FEASIBILITY 
STUDY.—(1) The Secretary of Defense shall provide as-
sistance to a community selected under subsection (d) for 
expenses of a study by that community of the feasibility 
of the establishment and operation of a biennial inter-
national air trade show in the area of that community. 
(2) The Secretary shall provide for the community 
to submit to the Secretary a report containing the results
429
of the study not later than September 30, 2005. The Sec-
retary shall promptly submit the report to Congress, to-
gether with such comments on the report as the Secretary 
considers appropriate. 
(b) ASSISTANCE
FOR
IMPLEMENTATION.—If the 
community conducting the study under subsection (a) de-
termines that the establishment and operation of such an 
air show is feasible and should be implemented, the Sec-
retary shall provide assistance to the community for the 
initial expenses of implementing such an air show in the 
selected community. 
(c) AMOUNT OF ASSISTANCE.—The amount of assist-
ance provided by the Secretary under subsections (a) and 
(b)—
(1) may not exceed a total of $1,000,000, to be 
derived from amounts available for operation and 
maintenance for the Air Force for fiscal year 2005 
or later fiscal years; and 
(2) may not exceed one-half of the cost of the 
study and may not exceed one-half the cost of such 
initial implementation. 
(d) SELECTION
OF COMMUNITY.—The Secretary 
shall select a community for purposes of subsection (a) 
through the use of competitive procedures. In making such 
selection, the Secretary shall give preference to those com-
430
munities that already sponsor an air show, have dem-
onstrated a history of supporting air shows with local re-
sources, and have a significant role in the aerospace com-
munity. The community shall be selected not later than 
March 1, 2005.
SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS. 
(a) CLARIFICATION
OF DEFINITION
OF ‘‘OPER-
ATIONAL RANGE’’.—Section 101(e)(3) of title 10, United 
States Code, is amended by striking ‘‘Secretary of De-
fense’’ and inserting ‘‘Secretary of a military depart-
ment’’. 
(b) AMENDMENTS RELATING
TO DEFINITION
OF 
CONGRESSIONAL DEFENSE COMMITTEES.—
(1) Chapter 169 of such title is amended as fol-
lows: 
(A) Paragraph (4) of section 2801(c) is 
amended to read as follows: 
‘‘(4) The term ‘congressional defense commit-
tees’ includes, with respect to any project to be car-
ried out by, or for the use of, an intelligence compo-
nent of the Department of Defense—
‘‘(A) the Permanent Select Committee on 
Intelligence of the House of Representatives; 
and
431
‘‘(B) the Select Committee on Intelligence 
of the Senate.’’. 
(B) The following sections are amended by 
striking ‘‘appropriate committees of Congress’’ 
each place it appears and inserting ‘‘congres-
sional defense committees’’: sections 2803(b), 
2804(b), 
2805(b)(2), 
2806(c)(2), 
2807(b), 
2807(c), 
2808(b), 
2809(f)(1), 
2811(d), 
2812(c)(1)(A), 
2813(c), 
2814(a)(2)(A), 
2814(g)(1), 
2825(b)(1), 
2827(b), 
2828(f), 
2835(g), 
2836(f), 
2837(c)(2), 
2853(c)(2), 
2854(b), 2854a(c)(1), 2865(e)(2), 2866(c)(2), 
2875(e), 2881a(d)(2), 2881a(e), 2883(f), and 
2884(a). 
(2) Section 2215 is amended—
(A) by striking ‘‘(a) CERTIFICATION RE-
QUIRED.—’’; 
(B) by striking ‘‘congressional committees 
specified in subsection (b)’’ and inserting ‘‘con-
gressional defense committees’’; and 
(C) by striking subsection (b). 
(3) Section 2306b(g) is amended by striking 
‘‘Committee on’’ the first place it appears and all 
that follows through ‘‘House of Representatives’’ 
and inserting ‘‘congressional defense committees’’.
432
(4) Section 2515(d) is amended—
(A) by striking ‘‘(1)’’ before ‘‘The Sec-
retary’’; 
(B) by striking ‘‘congressional committees 
specified in paragraph (2)’’ and inserting ‘‘con-
gressional defense committees’’; and 
(C) by striking paragraph (2). 
(5) Section 2676(d) is amended by striking 
‘‘appropriate committees of Congress’’ at the end of 
the first sentence and inserting ‘‘congressional de-
fense committees’’. 
(6) Section 2694a is amended by striking ‘‘ap-
propriate committees of Congress’’ in subsections (e) 
and (i)(1) and inserting ‘‘congressional defense com-
mittees’’. 
(c) AMENDMENTS RELATING
TO DEFINITION
OF 
BASE CLOSURE LAWS.—
(1) Section 2694a(i) of title 10, United States 
Code, is amended by striking paragraph (2). 
(2) Paragraph (1) of section 1333(i) of the Na-
tional Defense Authorization Act for Fiscal Year 
1994 (Public Law 103–160; 10 U.S.C. 2701 note) 
is amended to read as follows:
433
‘‘(1) BASE CLOSURE LAW.—The term ‘base clo-
sure law’ has the meaning given such term in section 
101(a)(17) of title 10, United States Code.’’. 
(3) Subsection (b) of section 2814 of the Mili-
tary Construction Authorization Act for Fiscal Year 
1995 (division B of Public Law 103–337; 10 U.S.C. 
2687 note) is amended to read as follows: 
‘‘(b) BASE CLOSURE LAW DEFINED.—In this sec-
tion, the term ‘base closure law’ has the meaning given 
such term in section 101(a)(17) of title 10, United States 
Code.’’. 
(4) Subsection (c) of section 3341 of title 5, 
United States Code, is amended to read as follows: 
‘‘(c) For purposes of this section, the term ‘base clo-
sure law’ has the meaning given such term in section 
101(a)(17) of title 10.’’. 
(5)(A) Paragraph (1) of section 554(a) of title 
40, United States Code, is amended to read as fol-
lows: 
‘‘(1) BASE CLOSURE LAW.—The term ‘base clo-
sure law’ has the meaning given that term in section 
101(a)(17) of title 10.’’. 
(B) Subparagraph (B) of section 572(b)(1) of 
title 40 is amended to read as follows:
434
‘‘(B) BASE
CLOSURE
LAW.—The term 
‘base closure law’ has the meaning given that 
term in section 101(a)(17) of title 10.’’. 
(d) DEFINITION OF STATE FOR PURPOSES OF SEC-
TION 2694A.—Subsection (i) of section 2694a of title 10, 
United States Code, as amended by subsections (b)(6) and 
(c)(1), is further amended—
(1) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) The term ‘State’ includes the District of 
Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, 
Guam, the Virgin Islands, and American Samoa.’’; 
and 
(2) by striking paragraph (4). 
(e) MISCELLANEOUS AMENDMENTS TO TITLE 10, 
UNITED STATES CODE.—Title 10, United States Code, is 
amended as follows: 
(1) The tables of chapters at the beginning of 
subtitle A, and at the beginning of part I of subtitle 
A, are amended by striking ‘‘481’’ in the item relat-
ing to chapter 23 and inserting ‘‘480’’. 
(2) Section 130a is amended—
(A) by striking ‘‘Effective October 1, 2002, 
the’’ in subsection (a) and inserting ‘‘The’’;
435
(B) by striking ‘‘baseline number’’ in sub-
section (a) and all that follows through ‘‘means 
the’’ in subsection (c); 
(C) by transferring subsection (e) so as to 
appear before subsection (d) and redesignating 
that subsection as subsection (b); 
(D) by redesignating subsections (d) and 
(f) as subsection (c) and (d), respectively; and 
(E) by striking subsection (g). 
(3) Section 437(c) is amended by inserting ‘‘(50 
U.S.C. 415b)’’ after ‘‘National Security Act of 
1947’’. 
(4) Section 487(d) is amended by striking 
‘‘OTHER DEFINITIONS’’ and inserting ‘‘INAPPLICA-
BILITY TO COAST GUARD’’. 
(5) Section 503(c)(1)(B) is amended by striking 
‘‘education’’ in the second sentence and inserting 
‘‘educational’’. 
(6) Section 632(c)(1) is amended—
(A) by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraph (3)’’; and 
(B) by striking ‘‘under that paragraph’’ 
and inserting ‘‘under that subsection’’.
436
(7) The item relating to section 1076b in the 
table of sections at the beginning of chapter 55 is 
amended to read as follows:
‘‘1076b. TRICARE program: coverage for members of the Ready Reserve.’’.
(8) Section 1108(e) is amended by striking 
‘‘heath’’ and inserting ‘‘health’’. 
(9) Section 1406(g) is amended—
(A) by striking ‘‘section 305’’ and insert-
ing ‘‘section 245’’; and 
(B) by inserting ‘‘(33 U.S.C. 3045)’’ after 
‘‘of 2002’’. 
(10) Sections 1448(b)(1)(F), 1448(d)(2)(B), 
1448(d)(6)(A), and 1458(j) are amended by striking 
‘‘on or after the date of the enactment of the Na-
tional Defense Authorization Act for Fiscal Year 
2004’’ and inserting ‘‘after November 23, 2003,’’. 
(11) 
Sections 
1463(a), 
1465(c)(1)(A), 
1465(c)(1)(B), 1465(c)(4)(A), 1465(c)(4)(B), and 
1466(b)(2)(D) are amended by striking ‘‘1413, 
1413a,’’ and inserting ‘‘1413a’’. 
(12) Section 1557(b) is amended by striking 
‘‘Effective October 1, 2002, final’’ and inserting 
‘‘Final’’. 
(13) Section 1566 is amended—
(A) in subsection (g)(2), by striking ‘‘the 
date that is 6 months after the date of the en-
437
actment of the Help America Vote Act of 
2002’’ in the last sentence and inserting ‘‘April 
29, 2003’’; and 
(B) in subsections (h), (i)(1), and (i)(3), 
by striking ‘‘Armed Forces’’ and inserting 
‘‘armed forces’’. 
(14) Sections 1724(d) and 1732(d)(1) are 
amended by striking ‘‘its decision’’ in the second 
sentence and inserting ‘‘the decision of the Sec-
retary’’. 
(15) Section 1761(b) is amended—
(A) in the matter preceding paragraph (1), 
by striking ‘‘provide for—’’ and inserting ‘‘pro-
vide for the following:’’; 
(B) in paragraphs (1), (2), and (3), by 
capitalizing the first letter of the first word; 
(C) at the end of paragraphs (1) and (2), 
by striking the semicolon and inserting a pe-
riod; 
(D) at the end of paragraph (3), by strik-
ing ‘‘; and’’ and inserting a period; and 
(E) by striking paragraph (4). 
(16) Section 2193b(c)(2) is amended by strik-
ing ‘‘the date of the enactment of this section’’ and 
inserting ‘‘October 5, 1999’’.
438
(17) Section 2224(c) is amended in the matter 
preceding paragraph (1) by striking ‘‘subtitle II of 
chapter 35’’ and inserting ‘‘subchapter II of chapter 
35’’. 
(18) Section 2349(d) is amended by striking 
‘‘section 
2350a(i)(3)’’ 
and 
inserting 
‘‘section 
2350a(i)(2)’’. 
(19) Section 2350b(g) is amended—
(A) in the matter preceding paragraph (1), 
by inserting ‘‘the Secretary of Defense’’ after 
‘‘authorizing’’; and 
(B) in paragraph (1), by striking ‘‘the Sec-
retary of Defense’’. 
(20) Section 2540(b)(2) is amended by insert-
ing ‘‘, as in effect on that date’’ before the period 
at the end. 
(21) Section 2662(a)(2) is amended—
(A) in the first sentence, by striking ‘‘must 
include a summarization’’ and inserting ‘‘shall 
include a summary’’; and 
(B) in the second sentence, by inserting 
‘‘of paragraph (1)’’ after ‘‘in subparagraph 
(E)’’. 
(22) Section 2672a(a) is amended—
439
(A) in the matter preceding paragraph (1), 
by inserting ‘‘in any case in which the Secretary 
determines’’ after ‘‘in land’’; 
(B) in paragraph (1), by striking ‘‘the Sec-
retary determines’’ and inserting ‘‘the acquisi-
tion’’; and 
(C) in paragraph (2), by inserting ‘‘the ac-
quisition’’ after ‘‘(2)’’. 
(23) Section 2701 is amended—
(A) in subsection (a)(2), by inserting ‘‘(42 
U.S.C. 9620)’’ before the period at the end; 
(B) in subsection (c)(2), by striking ‘‘of 
CERCLA (relating to settlements)’’ and insert-
ing ‘‘(relating to settlements) of CERCLA (42 
U.S.C. 9622)’’; 
(C) in subsection (e), by inserting ‘‘(42 
U.S.C. 9619)’’ after ‘‘CERCLA’’; and 
(D) in subsection (j)(2), by striking ‘‘the 
Comprehensive’’ and all the follows through ‘‘of 
1980’’ and inserting ‘‘CERCLA’’. 
(24) Section 2702 is amended by inserting ‘‘(42 
U.S.C. 9660(a)(5))’’ in the second sentence of sub-
section (a) before the period at the end. 
(25) Section 2703(b) is amended by striking 
‘‘The terms’’ at the beginning of the second sentence
440
and inserting ‘‘For purposes of the preceding sen-
tence, the terms’’. 
(26) Section 2704 is amended by inserting ‘‘(42 
U.S.C. 9604(i))’’ in subsections (c), (e), and (f) 
after ‘‘CERCLA’’. 
(27) The second section 3755, added by section 
543(b)(1) of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 
107–314; 116 Stat. 2549), is redesignated as section 
3756, and the item relating to that section in the 
table of sections at the beginning of chapter 357 is 
revised to reflect such redesignation. 
(28) Section 4689 is amended by striking 
‘‘Building’’ after ‘‘Capitol’’. 
(29) The second section 6257, added by section 
543(c)(1) of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 
107–314; 116 Stat. 2549), is redesignated as section 
6258, and the item relating to that section in the 
table of sections at the beginning of chapter 567 is 
revised to reflect such redesignation. 
(30) Section 7102 is amended—
(A) by striking ‘‘AUTHORITY’’ at the begin-
ning of subsection (a) and inserting ‘‘MASTER 
OF MILITARY STUDIES’’;
441
(B) by striking ‘‘MARINE CORPS WAR 
COLLEGE’’ at the beginning of subsection (b) 
and inserting ‘‘MASTER OF STRATEGIC STUD-
IES’’; 
(C) by striking ‘‘COMMAND
AND STAFF 
COLLEGE
OF
THE MARINE CORPS UNIVER-
SITY’’ at the beginning of subsection (c) and in-
serting ‘‘MASTER OF OPERATIONAL STUDIES’’; 
and 
(D) by striking ‘‘subsections (a) and (b)’’ 
in subsection (d) and inserting ‘‘this section’’. 
(31) Section 8084 is amended by striking 
‘‘capabilty’’ and inserting ‘‘capability’’. 
(32) The second section 8755, added by section 
543(d)(1) of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 
107–314; 116 Stat. 2550), is redesignated as section 
8756, and the item relating to that section in the 
table of sections at the beginning of chapter 857 is 
revised to reflect such redesignation. 
(33) The table in section 12012(a) is amended 
by inserting a colon after ‘‘Air National Guard’’. 
(f) TITLE 37, UNITED STATES CODE.—Section 
323(h) of title 37, United States Code, is amended by
442
striking ‘‘Secretary of Transportation’’ and inserting 
‘‘Secretary of Homeland Security’’. 
(g) PUBLIC LAW 108–136.—Effective as of Novem-
ber 24, 2003, and as if included therein as enacted, the 
National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108–136) is amended as follows: 
(1) Sections 832(a) and 834(a) (117 Stat. 
1550) are each amended by striking ‘‘such title’’ and 
inserting ‘‘title 10, United States Code,’’
(2) Section 931(a)(1) (117 Stat. 1580) is 
amended by striking ‘‘and donations’’ in the first 
quoted matter and inserting ‘‘or donations’’. 
(3) Section 2204(b) (117 Stat. 1706) is amend-
ed by striking ‘‘section 2101(a)’’ each place it ap-
pears and inserting ‘‘section 2201(a)’’. 
(h) PUBLIC LAW 107–314.—Effective as of Decem-
ber 2, 2002, and as if included therein as enacted, section 
1064(a)(2) of the Bob Stump National Defense Author-
ization Act for Fiscal Year 2003 (Public Law 107–314; 
116 Stat. 2654) is amended by inserting ‘‘the item relat-
ing to’’ after ‘‘is amended by inserting after’’. 
(i) PUBLIC LAW 101–510.—Section 2902(e)(2)(B) of 
the Defense Base Closure and Realignment Act of 1990 
(part A of title XXIX of Public Law 101–510; 10 U.S.C. 
2687 note) is amended—
443
(1) in clause (i), by striking ‘‘Subcommittee on 
Readiness, Sustainability, and Support’’ and insert-
ing ‘‘Subcommittee on Readiness and Management 
Support’’; and 
(2) in clause (ii), by striking ‘‘Subcommittee on 
Military Installations and Facilities’’ and inserting 
‘‘Subcommittee on Readiness’’. 
(j) NATIONAL SECURITY ACT OF 1947.—Sections 
702(a)(6)(B)(iv)(I), 
703(a)(6)(B)(iv)(I), 
and 
704(f)(2)(D)(i) of the National Security Act of 1947 are 
amended by striking ‘‘responsible records’’ and inserting 
‘‘responsive records’’. 
(k) CODIFICATION RELATING TO LEAVE FOR AT-
TENDANCE AT CERTAIN HEARINGS.—Subsection (b) of 
section 363 of the Personal Responsibility and Work Op-
portunity Reconciliation Act of 1996 (10 U.S.C. 704 note) 
is—
(1) transferred to section 704 of title 10, 
United States Code; 
(2) inserted at the end of that section; 
(3) redesignated as subsection (c); and 
(4) amended—
(A) by striking ‘‘Armed Forces’’ each place 
it appears and inserting ‘‘armed forces’’; 
(B) in paragraph (1)—
444
(i) by striking ‘‘Secretary of each’’ 
and all that follows through ‘‘in the Navy,’’ 
and inserting ‘‘Secretary concerned’’; and 
(ii) by striking ‘‘(as defined in section 
101 of title 10, United States Code)’’; and 
(C) in paragraph (3)—
(i) by striking ‘‘For purposes of this 
subsection—’’ and inserting ‘‘In this sub-
section:’’; 
(ii) in subparagraph (A), by striking 
‘‘title 10, United States Code’’ and insert-
ing ‘‘this title’’; and 
(iii) in subparagraph (B), by striking 
‘‘such term’’ and inserting ‘‘that term’’.
SEC. 1074. COMMISSION ON THE LONG-TERM IMPLEMENTA-
TION OF THE NEW STRATEGIC POSTURE OF 
THE UNITED STATES. 
(a) ESTABLISHMENT OF COMMISSION.—
(1) ESTABLISHMENT.—There is hereby estab-
lished a commission to be known as the ‘‘Commis-
sion on the Long-Term Implementation of the New 
Strategic Posture of the United States’’. The Sec-
retary of Defense shall enter into a contract with a 
federally funded research and development center to 
provide for the organization, management, and sup-
445
port of the Commission. Such contract shall be en-
tered into in consultation with the Secretary of En-
ergy. 
(2) COMPOSITION.—(A) The Commission shall 
be composed of 12 members who shall be appointed 
by the Secretary of Defense. In selecting individuals 
for appointment to the Commission, the Secretary of 
Defense shall consult with the chairman and ranking 
minority member of the Committee on Armed Serv-
ices of the Senate and the chairman and ranking mi-
nority member of the Committee on Armed Services 
of the House of Representatives. 
(B) Members of the Commission shall be ap-
pointed from among private United States citizens 
with knowledge and expertise in the political, mili-
tary, operational, and technical aspects of nuclear 
strategy. 
(3) CHAIRMAN OF THE COMMISSION.—The Sec-
retary of Defense shall designate one of the mem-
bers of the Commission to serve as chairman of the 
Commission. 
(4) PERIOD
OF
APPOINTMENT; VACANCIES.—
Members shall be appointed for the life of the Com-
mission. Any vacancy in the Commission shall be
446
filled in the same manner as the original appoint-
ment. 
(5) SECURITY CLEARANCES.—All members of 
the Commission shall hold appropriate security 
clearances. 
(b) DUTIES OF COMMISSION.—
(1) REVIEW OF LONG-TERM IMPLEMENTATION 
OF THE NUCLEAR POSTURE REVIEW.—The Com-
mission shall examine long-term programmatic re-
quirements to achieve the goals set forth in the re-
port of the Secretary of Defense submitted to Con-
gress on December 31, 2001, providing the results 
of the Nuclear Posture Review conducted pursuant 
to section 1041 of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (as en-
acted into law by Public Law 106–398; 114 Stat. 
1654, 1654A–262) and results of periodic assess-
ments of the Nuclear Posture Review. Matters ex-
amined by the Commission shall include the fol-
lowing: 
(A) The process of establishing require-
ments for strategic forces and how that process 
accommodates employment of nonnuclear strike 
platforms and munitions in a strategic role.
447
(B) How strategic intelligence, reconnais-
sance, and surveillance requirements differ from 
nuclear intelligence, reconnaissance, and sur-
veillance requirements. 
(C) The ability of a limited number of 
strategic platforms to carry out a growing 
range of nonnuclear strategic strike missions. 
(D) The limits of tactical systems to per-
form nonnuclear global strategic missions in a 
prompt manner. 
(E) An assessment of the ability of the 
current nuclear stockpile to address the evolving 
strategic threat environment through 2025. 
(2) 
RECOMMENDATIONS.—The 
Commission 
shall include in its report recommendations with re-
spect to the following: 
(A) Changes to the requirements process 
to employ nonnuclear strike platforms and mu-
nitions in a strategic role. 
(B) Changes to the nuclear stockpile and 
infrastructure required to preserve a nuclear ca-
pability commensurate with the changes to the 
strategic threat environment through 2025. 
(C) Actions the Secretary of Defense and 
the Secretary of Energy can take to preserve
448
flexibility of the defense nuclear comples while 
reducing the cost of a Cold War strategic infra-
structure. 
(D) Identify shortfalls in the strategic 
modernization programs of the United States 
that would undermine the ability of the United 
States to develop new nonnuclear strategic 
strike capabilities. 
(3) COOPERATION
FROM
GOVERNMENT
OFFI-
CIALS.—(A) In carrying out its duties, the Commis-
sion shall receive the full and timely cooperation of 
the Secretary of Defense, the Secretary of Energy, 
and any other United States Government official in 
providing the Commission with analyses, briefings, 
and other information necessary for the fulfillment 
of its responsibilities. 
(B) The Secretary of Energy and the Secretary 
of Defense shall each designate at least one officer 
or employee of the Department of Energy and the 
Department of Defense, respectively, to serve as a li-
aison officer between the department and the Com-
mission. 
(c) REPORTS.—
(1) COMMISSION
REPORT.—The Commission 
shall submit to the Secretary of Defense and the
449
Committees on Armed Services of the Senate and 
House of Representatives a report on the Commis-
sion’s findings and conclusions. Such report shall be 
submitted not later that 28 months after the date of 
the first meeting of the Commission. 
(2) SECRETARY OF DEFENSE RESPONSE.—Not 
later than one year after the date on which the Com-
mission submits its report under paragraph (1), the 
Secretary of Defense shall submit to Congress a re-
port—
(A) commenting on the Commission’s find-
ings and conclusions; and 
(B) explaining what actions, if any, the 
Secretary intends to take to implement the rec-
ommendations of the Commission and, with re-
spect to each such recommendation, the Sec-
retary’s reasons for implementing, or not imple-
menting, the recommendation. 
(d) HEARINGS AND PROCEDURES.—
(1) HEARINGS.—The Commission may, for the 
purpose of carrying out the purposes of this section, 
hold hearings and take testimony. 
(2) PROCEDURES.—The federally funded re-
search and development center with which a contract 
is entered into under subsection (a)(1) shall be re-
450
sponsible for establishing appropriate procedures for 
the Commission. 
(3) DETAIL
OF
GOVERNMENT
EMPLOYEES.—
Upon request of the chairman of the Commission, 
the head of any Federal department or agency may 
detail, on a nonreimbursable basis, personnel of that 
department or agency to the Commission to assist it 
in carrying out its duties. 
(e) FUNDING.—Funds for activities of the Commis-
sion shall be provided from amounts appropriated for the 
Department of Defense. 
(f) TERMINATION OF COMMISSION.—The Commis-
sion shall terminate 60 days after the date of the submis-
sion of its report under subsection (c)(1). 
(g) IMPLEMENTATION.—
(1) FFRDC CONTRACT.—The Secretary of De-
fense shall enter into the contract required under 
subsection (a)(1) not later that 60 days after the 
date of the enactment of this Act. 
(2) FIRST
MEETING.—The Commission shall 
convene its first meeting not later than 60 days 
after the date as of which all members of the Com-
mission have been appointed.
451
SEC. 1075. LIABILITY PROTECTION FOR CERTAIN DEPART-
MENT OF DEFENSE VOLUNTEERS WORKING 
IN THE MARITIME ENVIRONMENT. 
(a) AUTHORITY TO ACCEPT CERTAIN VOLUNTEER 
SERVICES.—Subsection (a) of section 1588 of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph: 
‘‘(8) Voluntary services provided to the United 
States Military Academy, United States Naval Acad-
emy, and United States Air Force Academy for the 
training of cadets and midshipmen.’’. 
(b) LIABILITY PROTECTION FOR VOLUNTEERS IN 
MARITIME ENVIRONMENT.—Subparagraph (D) of sub-
section (d)(1) of such section is amended—
(1) by striking ‘‘and’’ after ‘‘this title’’ and in-
serting a comma; and 
(2) by inserting before the period at the end the 
following: ‘‘, and chapters 20 and 22 of title 46 (re-
lating to claims for damages or loss on navigable wa-
ters)’’. 
SEC. 1076. TRANSFER OF HISTORIC F3A-1 BREWSTER COR-
SAIR AIRCRAFT. 
(a) AUTHORITY TO CONVEY.—The Secretary of the 
Navy may convey, without consideration, to Lex Cralley, 
of Princeton Minnesota (in this section referred to as 
‘‘transferee’’), all right, title and interest of the United
452
States in and to a F3A-1 Brewster Corsair aircraft (Bu-
reau Number 04634). The conveyance shall be made by 
means of a deed of gift. 
(b) CONDITION OF AIRCRAFT.—The aircraft shall be 
conveyed under subsection (a) in its current unflyable, ‘‘as 
is’’ condition. The Secretary is not required to repair or 
alter the condition of the aircraft before conveying owner-
ship of the aircraft. 
(c) CONVEYANCE
AT NO COST
TO
THE UNITED 
STATES.—The conveyance of the aircraft under subsection 
(a) shall be made at no cost to the United States. Any 
costs associated with the conveyance and costs of oper-
ation and maintenance of the aircraft conveyed shall be 
borne by the transferee. 
(d) ADDITIONAL TERMS
AND CONDITIONS.—The 
Secretary may require such additional terms and condi-
tions in connection with a conveyance under this section 
as the Secretary considers appropriate to protect the inter-
ests of the United States. 
SEC. 1077. ASSIGNMENT OF MEMBERS TO ASSIST BUREAU 
OF BORDER SECURITY AND BUREAU OF CITI-
ZENSHIP AND IMMIGRATION SERVICES OF 
THE DEPARTMENT OF HOMELAND SECURITY. 
(a) ASSIGNMENT AUTHORITY OF SECRETARY OF DE-
FENSE.—Chapter 18 of title 10, United States Code, is
453
amended by inserting after section 374 the following new 
section: 
‘‘§ 374a. Assignment of members to assist border pa-
trol and control 
‘‘(a) ASSIGNMENT AUTHORIZED.—Upon submission 
of a request consistent with subsection (b), the Secretary 
of Defense may assign members of the Army, Navy, Air 
Force, and Marine Corps to assist—
‘‘(1) the Bureau of Border Security of the De-
partment of Homeland Security in preventing the 
entry of terrorists, drug traffickers, and illegal aliens 
into the United States; and 
‘‘(2) the United States Customs Service of the 
Department of Homeland Security in the inspection 
of cargo, vehicles, and aircraft at points of entry 
into the United States to prevent the entry of weap-
ons of mass destruction, components of weapons of 
mass destruction, prohibited narcotics or drugs, or 
other terrorist or drug trafficking items. 
‘‘(b) REQUEST FOR ASSIGNMENT.—The assignment 
of members under subsection (a) may occur only if—
‘‘(1) the assignment is at the request of the 
Secretary of Homeland Security; and 
‘‘(2) the request is accompanied by a certifi-
cation by the Secretary of Homeland Security that
454
the assignment of members pursuant to the request 
is necessary to respond to a threat to national secu-
rity posed by the entry into the United States of ter-
rorists, drug traffickers, or illegal aliens. 
‘‘(c) TRAINING
PROGRAM
REQUIRED.—The Sec-
retary of Homeland Security and the Secretary of De-
fense, shall establish a training program to ensure that 
members receive general instruction regarding issues af-
fecting law enforcement in the border areas in which the 
members may perform duties under an assignment under 
subsection (a). A member may not be deployed at a border 
location pursuant to an assignment under subsection (a) 
until the member has successfully completed the training 
program. 
‘‘(d) CONDITIONS OF USE.—(1) Whenever a member 
who is assigned under subsection (a) to assist the Bureau 
of Border Security or the United States Customs Service 
is performing duties at a border location pursuant to the 
assignment, a civilian law enforcement officer from the 
agency concerned shall accompany the member. 
‘‘(2) Nothing in this section shall be construed to—
‘‘(A) authorize a member assigned under sub-
section (a) to conduct a search, seizure, or other 
similar law enforcement activity or to make an ar-
rest; and
455
‘‘(B) supersede section 1385 of title 18 (popu-
larly known as the ‘Posse Comitatus Act’). 
‘‘(e) ESTABLISHMENT
OF ONGOING JOINT TASK 
FORCES.—(1) The Secretary of Homeland Security may 
establish ongoing joint task forces if the Secretary of 
Homeland Security determines that the joint task force, 
and the assignment of members to the joint task force, 
is necessary to respond to a threat to national security 
posed by the entry into the United States of terrorists, 
drug traffickers, or illegal aliens. 
‘‘(2) If established, the joint task force shall fully 
comply with the standards as set forth in this section. 
‘‘(f) NOTIFICATION REQUIREMENTS.—The Secretary 
of Homeland Security shall provide to the Governor of the 
State in which members are to be deployed pursuant to 
an assignment under subsection (a) and to local govern-
ments in the deployment area notification of the deploy-
ment of the members to assist the Department of Home-
land Security under this section and the types of tasks 
to be performed by the members. 
‘‘(g) REIMBURSEMENT REQUIREMENT.—Section 377 
of this title shall apply in the case of members assigned 
under subsection (a).
456
‘‘(h) TERMINATION OF AUTHORITY.—No assignment 
may be made or continued under subsection (a) after Sep-
tember 30, 2006.’’. 
(b) COMMENCEMENT OF TRAINING PROGRAM.—The 
training program required by subsection (c) of section 
374a of title 10, United States Code, as added by sub-
section (a), shall be established as soon as practicable 
after the date of the enactment of this Act. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 374 the following new 
item:
‘‘374a. Assignment of members to assist border patrol and control.’’.
SEC. 1078. AUTHORITY TO ACCEPT CERTAIN VOLUNTARY 
SERVICES. 
Section 1588 of title 10, United States Code, is 
amended—
(1) in subsection (a), by adding at the end the 
following new paragraph: 
‘‘(8) Voluntary services to support programs of 
a committee of the Employer Support of the Guard 
and Reserve as authorized by the Secretary of De-
fense.’’; and 
(2) in subsection (f)(1), by inserting ‘‘and 
(a)(8)’’ before the period at the end.
457
SEC. 1079. TRANSFER OF EXCESS DEPARTMENT OF DE-
FENSE PERSONAL PROPERTY SUITABLE FOR 
FIREFIGHTING USE TO SUPPORT FEDERAL 
EXCESS PERSONAL PROPERTY PROGRAM. 
(a) IN GENERAL.—Section 2576b of title 10, United 
States Code, is amended—
(1) in subsection (a)—
(A) by striking ‘‘Subject’’ and inserting 
‘‘Notwithstanding any other provision of law 
and subject’’; and 
(B) by striking ‘‘a firefighting agency in a 
State’’ and inserting ‘‘the United States Forest 
Service’’; 
(2) in subsections (b)(2) and (c), by striking 
‘‘recipient firefighting agency’’ and inserting ‘‘Forest 
Service’; and 
(3) by striking subsection (d) and inserting the 
following new subsections: 
‘‘(d) PRIORITY FOR RURAL FIREFIGHTING AGEN-
CIES.—(1) Subject to paragraph (2), the Secretary of De-
fense shall enter into an agreement with the Secretary of 
Agriculture to use the existing property disposal program 
of the Forest Service, known as the Federal Excess Per-
sonal Property Program, to facilitate the reutilization of 
Department of Defense personal property described in 
subsection (a) by firefighting agencies in rural areas.
458
‘‘(2) An agreement under paragraph (1) shall not 
provide for the reutilization of Department of Defense air-
craft by the Forest Service until the end of the one-year 
period beginning on the date on which the Secretary of 
Agriculture submits a report to the Committee on Agri-
culture and the Committee on Armed Services of the 
House of Representatives and the Committee on Agri-
culture, Nutrition, and Forestry and the Committee on 
Armed Services of the Senate detailing measures taken by 
the Forest Service in response to National Transportation 
Safety Board Recommendations A-04-29 through A-04-
33. 
‘‘(3) The transfer of Department of Defense personal 
property described in subsection (a) to the Forest Service 
for reutilization by firefighting agencies in rural areas 
shall be afforded a property disposal priority at least equal 
to the priority given the military departments and other 
entities within the Department of Defense. 
‘‘(e) DEFINITION OF STATE.—The term ‘State’ in-
cludes the District of Columbia, the Commonwealth of 
Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, and any territory or possession of the United 
States.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows:
459
‘‘§ 2576b. Excess personal property: reutilization to 
assist firefighting agencies’’.
(2) The table of sections at the beginning of chapter 
153 of such title is amended by striking the item relating 
to section 2576b and inserting the following new item:
‘‘2576b. Excess personal property: reutilization to assist firefighting agencies.’’.
SEC. 1080. EXPANSION OF DEPARTMENT OF DEFENSE EX-
CESS PERSONAL PROPERTY DISPOSAL PRO-
GRAM TO INCLUDE HEALTH AGENCIES. 
(a) INCLUSION
OF HEALTH AGENCIES.—Section 
2576b of title 10, United States Code, is amended by add-
ing at the end the following new subsection: 
‘‘(e) TRANSFER TO STATE HEALTH AGENCIES.—The 
Secretary of Defense may expand the program authorized 
by this section to include the transfer to State health 
agencies of personal property of the Department of De-
fense that the Secretary determines is—
‘‘(1) excess to the needs of the Department of 
Defense; and 
‘‘(2) suitable for use in responding to health or 
environmental emergencies.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows:
460
‘‘§ 2576b. Excess personal property: reutilization to 
assist firefighting agencies and health 
agencies 
(2) The table of sections at the beginning of chapter 
153 of such title is amended by striking the item relating 
to section 2576b and inserting the following new item:
‘‘2576b. Excess personal property: reutilization to assist firefighting agencies 
and health agencies.’’.
SEC. 1081. PLACEMENT OF MEMORIAL IN ARLINGTON NA-
TIONAL CEMETERY HONORING NONCITIZENS 
KILLED IN THE LINE OF DUTY WHILE SERV-
ING IN THE ARMED FORCES OF THE UNITED 
STATES. 
(a) IN GENERAL.—The Secretary of the Army shall 
place in Arlington National Cemetery a memorial marker 
honoring the service and sacrifice of noncitizens killed in 
the line of duty while serving in the Armed Forces of the 
United States. 
(b) APPROVAL OF DESIGN AND SITE.—The Secretary 
of the Army, in consultation with Secretary of Veterans 
Affairs, shall approve an appropriate design and site with-
in Arlington National Cemetery for the memorial marker 
provided for under subsection (a). 
(c) USE OF FEDERAL FUNDS.—Federal funds shall 
not be required or permitted to be used for the design
461
and construction of the memorial marker provided for 
under subsection (a). 
(d) AUTHORITY TO ACCEPT DONATIONS.—(1) The 
Secretary of the Army may accept gifts and donations of 
services, money, and property (including personal, tan-
gible, or intangible property) for the design and construc-
tion of the memorial marker provided for under subsection 
(a). 
(2) The authority of the Secretary of the Army to 
accept gifts and donations under paragraph (1) shall ex-
pire on the date that is five years after the date of the 
enactment of this Act.
TITLE XI—DEPARTMENT OF 
DEFENSE CIVILIAN PERSONNEL 
SEC. 1101. PAYMENT OF FEDERAL EMPLOYEE HEALTH BEN-
EFIT PREMIUMS FOR MOBILIZED FEDERAL 
EMPLOYEES. 
(a) AUTHORITY
TO
CONTINUE
BENEFIT
COV-
ERAGE.—Section 8905a of title 5, United States Code is 
amended—
(1) in subsection (a), by striking ‘‘paragraph 
(1) or (2) of’’; 
(2) in subsection (b)—
(A) in paragraph (1)(B), by striking ‘‘and’’ 
at the end;
462
(B) in paragraph (2)(C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(3) any employee who—
‘‘(A) is enrolled in a health benefits plan 
under this chapter; 
‘‘(B) is a member of a Reserve component 
of the armed forces; 
‘‘(C) is called or ordered to active duty in 
support of a contingency operation (as defined 
in section 101(a)(13) of title 10); 
‘‘(D) is placed on leave without pay or sep-
arated from service to perform active duty; and 
‘‘(E) serves on active duty for a period of 
more than 30 consecutive days.’’; and 
(4) in subsection (e)(1)—
(A) in subparagraph (A), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) in the case of an employee described 
in subsection (b)(3), the date which is 24
463
months after the employee is placed on leave 
without pay or separated from service to per-
form active duty.’’. 
(b) AUTHORITY
FOR
AGENCIES
TO
PAY
PRE-
MIUMS.—Subparagraph (C) of section 8906(e)(3) of such 
title is amended by striking ‘‘18 months’’ and inserting 
‘‘24 months’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to Federal employees 
called or ordered to active duty on or after September 14, 
2001.
SEC. 1102. FOREIGN LANGUAGE PROFICIENCY PAY. 
Section 1596a of title 10, United States Code, is 
amended—
(1) in subsection (a)(2), by striking ‘‘during a 
contingency operation supported by the armed 
forces’’; and 
(2) in subsection (c), by inserting before the pe-
riod at the end the following: ‘‘and shall not be con-
sidered base pay for any purpose’’.
SEC. 1103. PAY PARITY FOR CIVILIAN INTELLIGENCE PER-
SONNEL. 
Section 1602 of title 10, United States Code, is 
amended—
464
(1) in subsection (a), by striking ‘‘in relation to 
the rates of pay provided in subpart D of part III 
of title 5 for positions subject to that subpart which 
have corresponding levels of duties and responsibil-
ities’’ and inserting ‘‘in relation to the rates of pay 
provided for Department of Defense Senior Execu-
tive, Senior Level, and other comparable positions’’; 
and 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) PERFORMANCE APPRAISAL SYSTEM.—The posi-
tions referred to in subsection (a) shall be subject to a 
performance appraisal system which, as designed and ap-
plied, is certified by the Secretary of Defense as making 
meaningful distinctions based on relative performance and 
may be the same performance appraisal system estab-
lished and implemented within the Department for mem-
bers of the Senior Executive Service.’’.
SEC. 1104. PAY PARITY FOR SENIOR EXECUTIVES IN NON-
APPROPRIATED FUND INSTRUMENTALITIES. 
(a) IN GENERAL.—Chapter 81 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section:
465
‘‘§ 1599e. Senior executive compensation for non-
appropriated fund instrumentalities 
‘‘Notwithstanding any provisions of title 5, the Sec-
retary of Defense may regulate the amount of total com-
pensation, including the rate of basic pay, of senior execu-
tives employed by Department of Defense nonappropriated 
fund instrumentalities, to provide for parity with the total 
compensation, including basic pay, of Department of De-
fense employees in the Senior Executive Service and other 
similar senior executive positions.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1599d the following new 
item:
‘‘1599e. Senior executive compensation for nonappropriated fund instrumental-
ities.’’.
SEC. 1105. PROHIBITION OF UNAUTHORIZED WEARING OR 
USE OF CIVILIAN MEDALS OR DECORATIONS. 
Chapter 57 of title 10, United States Code, is amend-
ed by adding at the end the following new section: 
‘‘§ 1134. Civilian medals or decorations of the Depart-
ment of Defense 
‘‘(a) PROHIBITION.—Except with the written permis-
sion of the Secretary of Defense or when authorized by 
regulations, no person may knowingly—
‘‘(1) wear; or
466
‘‘(2) use, in connection with any merchandise, 
retail product, impersonation, solicitation, or com-
mercial activity; 
medals, decorations, or other insignia awarded by the Sec-
retary of Defense to recognize Department of Defense ci-
vilian employees and other individuals who render service 
to the Department of Defense. 
‘‘(b) AUTHORITY TO ENJOIN VIOLATIONS.—When-
ever it appears to the Attorney General that any person 
is engaged or is about to engage in an act or practice 
which constitutes or will constitute conduct prohibited by 
subsection (a), the Attorney General may initiate a civil 
proceeding in a district court of the United States to en-
join such act or practice. Such court shall proceed as soon 
as practicable to the hearing and determination of such 
action and may, at any time before final determination, 
enter such restraining orders or prohibitions, or take such 
other actions as is warranted, including imposing a civil 
penalty not to exceed $25,000 for each violation, to pre-
vent injury to the United States or to any person or class 
of persons for whose protection the action is brought.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘1134. Civilian medals or decorations of the Department of Defense.’’
467
TITLE XII—MATTERS RELATING 
TO OTHER NATIONS
Subtitle A—Matters Relating to 
Iraq, Afghanistan, and Global 
War on Terrorism
SEC. 1201. DOCUMENTATION OF CONDITIONS IN IRAQ 
UNDER FORMER DICTATORIAL GOVERNMENT 
AS PART OF TRANSITION TO POST-DICTATO-
RIAL GOVERNMENT. 
(a) FINDINGS.—The Congress makes the following 
findings: 
(1) The regime of Saddam Hussein in Iraq was 
a dictatorial regime prone to secrecy in the mainte-
nance of its hold on power. 
(2) The people of Iraq all suffered as a result 
of Saddam Hussein’s dictatorial control. 
(3) Efforts in other post-dictatorial states to 
document the crimes and abuses of their predecessor 
dictatorial governments have contributed to the 
process of national reconciliation and have served as 
a reminder about the importance of protecting indi-
vidual rights. 
(b) TRANSFER
OF
CERTAIN
DOCUMENTS
AND 
RECORDS.—The Secretary of Defense shall, to the extent 
practicable, establish a process for expeditiously transfer-
468
ring to indigenous Iraqi entities committed to docu-
menting publicly the nature of the Saddam Hussein re-
gime any documents and records described in subsection 
(c) that are obtained by United States military forces in 
Iraq. 
(c) COVERED DOCUMENTS AND RECORDS.—The doc-
uments and records referred to in subsection (b) are docu-
ments and records—
(1) that were created by—
(A) the Government of Iraq between 1968 
and May 1, 2003; or 
(B) the Ba’ath Socialist Party in Iraq 
after 1968; and 
(2) that provide insight into—
(A) the functioning of the Government of 
Iraq or the Ba’ath Socialist Party in Iraq; or 
(B) the crimes, atrocities, and brutal prac-
tices of the Iraqi government towards the peo-
ple of Iraq during the period between 1968 and 
May 1, 2003. 
SEC. 1202. SUPPORT OF MILITARY OPERATIONS TO COM-
BAT TERRORISM. 
(a) AUTHORITY.—The Secretary of Defense may ex-
pend up to $25,000,000 during any fiscal year during 
which this subsection is in effect to provide support to for-
469
eign forces, irregular forces, groups, or individuals en-
gaged in supporting or facilitating ongoing military oper-
ations by United States special operations forces to com-
bat terrorism. 
(b) INTELLIGENCE ACTIVITIES.—This section does 
not constitute authority to conduct a covert action, as such 
term is defined in section 503(e) of the National Security 
Act of 1947 (50 U.S.C. 413b(e)). 
(c) ANNUAL REPORT.—Not later than 30 days after 
the close of each fiscal year during which subsection (a) 
is in effect, the Secretary of Defense shall submit to the 
congressional defense committees a report on support pro-
vided under this section during that fiscal year. Each such 
report shall describe the support provided, including a 
statement of the recipient of the support and the amount 
obligated to provide the support. 
(d) FISCAL YEAR 2005 LIMITATION.—Support may 
be provided under subsection (a) during fiscal year 2005 
only from funds made available for operations and mainte-
nance pursuant to title XV of this Act. 
(e) PERIOD OF AUTHORITY.—The authority under 
subsection (a) is in effect during each of fiscal years 2005 
through 2007.
470
SEC. 1203. COMMANDERS’ EMERGENCY RESPONSE PRO-
GRAM. 
(a) FISCAL YEAR 2005 AUTHORITY.—During fiscal 
year 2005, from funds made available to the Department 
of Defense for operation and maintenance pursuant to 
title XV of this Act, not to exceed $300,000,000 may be 
used, notwithstanding any other provision of law, to pro-
vide funds for the Commanders’ Emergency Response 
Program, established by the Administrator of the Coali-
tion Provisional Authority for the purpose of enabling 
military commanders in Iraq to respond to urgent humani-
tarian relief and reconstruction requirements within their 
areas of responsibility by carrying out programs that will 
immediately assist the Iraqi people, and to provide funds 
for a similar program to assist the people of Afghanistan. 
(b) QUARTERLY REPORTS.—The Secretary of De-
fense shall submit to the congressional defense committees 
a quarterly report, beginning on January 15, 2005, re-
garding the source of funds and the allocation and use 
of funds made available pursuant to the authorityprovided 
in this section. 
SEC. 1204. STATUS OF IRAQI SECURITY FORCES. 
(a) STRATEGIC PLAN.—No later than 120 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall submit to the Committees on Armed Serv-
ices of the Senate and House of Representatives a stra-
471
tegic plan setting forth the manner in which the United 
States will achieve the goal of establishing viable and pro-
fessional Iraqi security forces able to provide for the long-
term security of the Iraqi people. 
(b) COMPONENTS.—The strategic plan established 
under subsection (a) shall include at least the following: 
(1) Recruiting and retention goals, shown for 
each service of the Iraqi security forces. 
(2) Training plans for each service of the Iraqi 
security forces. 
(3) A description of metrics by which progress 
toward the goal of Iraqi provision for its own secu-
rity can be measured. 
(4) A description of equipment needs, shown for 
each service of the Iraqi security forces. 
(5) A resourcing plan for achieving the goals of 
the strategic plan. 
(6) Personnel plans in terms of United States 
military and contractor personnel to be used in 
training each such service. 
(7) A description of challenges faced and oppor-
tunities presented in particular regions of Iraq and 
a plan for addressing those challenges. 
(8) A discussion of training and deployment 
successes and failures to the date of the report and
472
how lessons from those successes and failures will be 
incorporated into the strategic plan. 
(c) SUBSEQUENT REPORTS.—Ninety days following 
the submission of the strategic plan to Congress under 
subsection (a) and every 90 days thereafter, the Secretary 
shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on progress 
toward meeting the goals established in the strategic plan. 
Each such report shall address the following: 
(1) The number of forces recruited, currently 
serving, and that have left (along with a break-down 
of the reasons for leaving) by service over the period 
in question. 
(2) Progress in meeting training goals. 
(3) Progress in achieving other metrics as iden-
tified in the strategic plan. 
(4) A description and analysis of any training 
incidents and deployment successes and failures, 
with a discussion of how those incidents and suc-
cesses will affect future efforts to achieve the goals 
of the strategic plan. 
(d) IRAQI SECURITY FORCES DEFINED.—In this sec-
tion, the term ‘‘Iraqi security forces’’ means the Iraqi 
Armed Forces (IAF), the Iraqi Civil Defense Corps 
(ICDC), the Iraqi Police Service (IPS), the Department
473
of Border Enforcement (DBE), and the Facilities Protec-
tion Services (FCS). 
SEC. 1205. GUIDANCE AND REPORT REQUIRED ON CON-
TRACTORS SUPPORTING DEPLOYED FORCES 
IN IRAQ. 
(a) GUIDANCE.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall issue guidance on how to manage contractors that 
support deployed forces and shall direct the Secretaries 
of the military departments to develop procedures to en-
sure implementation of the guidance. The guidance 
shall—
(1) establish policies for the use of contractors 
to support deployed forces; 
(2) delineate the roles and responsibilities of 
commanders regarding the management and over-
sight of contractors that support deployed forces; 
and 
(3) integrate into a single document other guid-
ance and doctrine that may affect Department of 
Defense responsibilities to contractors in locations 
where members of the Armed Forces are deployed. 
(b) REPORT.—Not later than 30 days after issuing 
the guidance required under subsection (a), the Secretary 
of Defense shall submit to the Committees on Armed Serv-
474
ices of the House of Representatives and the Senate a re-
port containing a discussion of the following: 
(1) A description of the process used by the De-
partment of Defense for deciding which security 
functions in Iraq will be performed by military per-
sonnel and which by private security companies. 
(2) A discussion of the overall chain of com-
mand and oversight mechanisms that are in place to 
ensure adequate command and supervision of con-
tractor personnel in critical security roles. 
(3) An explanation of the rules of engagement 
for private security personnel throughout Iraq, along 
with how training in these rules of engagement is 
being carried out. 
(4) A description of mechanisms that exist or 
that are under consideration to share intelligence 
and standardize communications procedures among 
private security companies. 
(5) Casualty and fatality figures for each con-
tractor in Iraq supporting deployed forces over the 
period beginning on May 1, 2003, and ending on the 
date of the issuance of the guidance. 
(6) Disciplinary or criminal actions brought 
against such contractors during the period covered 
by the report.
475
(7) Any incidents of note in Iraq regarding 
such contractors during the period covered by the 
report. 
(8) A plan for establishing and implementing a 
process for collecting data on individual contractors, 
the value of the contracts, and the number of per-
sonnel in Iraq performing the following services: 
(A) Personal security details. 
(B) Non-military site security. 
(C) Non-military convoy security. 
(D) Interrogation services at interrogation 
centers operated by the Department of Defense.
SEC. 1206. FINDINGS AND SENSE OF CONGRESS CON-
CERNING ARMY SPECIALIST JOSEPH DARBY. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The need to act in accord with one’s con-
science, risking one’s career and even the esteem of 
one’s colleagues by pursuing what is right is espe-
cially important today. 
(2) While the Department of Defense inves-
tigate the horrific abuses in American detention fa-
cilities in Iraq, the Nation should bear in mind that 
the abuses were only brought to light because of the 
courage of an American soldier.
476
(3) By alerting his superiors to abuses at Abu 
Ghraib prison in Iraq, Army Specialist Joseph 
Darby demonstrated the courage to speak out and 
do what is right for his country. 
(4) Such an action is especially important in 
light of the many challenges facing the country. 
(5) Specialist Darby deserves the Nation’s 
thanks for speaking up and for standing up for what 
is right. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
(1) the Secretary of Defense should make every 
protection available to Army Specialist Joseph 
Darby and others who demonstrate such courage; 
and 
(2) Specialist Darby should be commended ap-
propriately by the Secretary of the Army.
SEC. 1207. SENSE OF CONGRESS CONCERNING THE ABUSE 
OF PERSONS IN CUSTODY IN IRAQ. 
It is the sense of Congress that—
(1) the abuses inflicted upon detainees at the 
Abu Ghraib prison in Baghdad, Iraq, are offensive 
to the principles and values of the American people 
and the United States military, are incompatible 
with the professionalism, dedication, standards and
477
training required of individuals who serve in the 
United States military, and contradict the policies, 
orders, and laws of the United States and the 
United States military and undermine the ability of 
the United States military to achieve its mission in 
Iraq. 
(2) the vast majority of members of the Armed 
Forces have upheld the highest possible standards of 
professionalism and morality in the face of illegal 
tactics and terrorist attacks and attempts on their 
lives. 
(3) the abuse of persons in United States cus-
tody in Iraq is appropriately condemned and de-
plored by the American people; 
(4) the Armed Forces are moving swiftly and 
decisively to identify, try, and punish persons who 
were responsible or culpable for such abuse; 
(5) the Secretary of the Army must continue to 
conduct a full and thorough investigation into any 
and all allegations of mistreatment or abuse of de-
tainees in Iraq; 
(6) the Secretary of the Army and appropriate 
military authorities must continue to undertake cor-
rective action to address chain of command defi-
478
ciencies and the systemic deficiencies identified in 
the incidents in question; 
(7) the American principle and tradition of af-
fording proper and humane treatment to persons 
under the custody of the United States Armed 
Forces must be reaffirmed; 
(8) the alleged crimes of a handful of individ-
uals should not detract from the commendable sac-
rifices of over 300,000 members of the United 
States Armed Forces who have served, or who are 
serving, in Operation Iraqi Freedom; and 
(9) the United States expresses its continuing 
solidarity and support for its partnership with the 
Iraqi people in building a viable Iraqi government 
and a secure nation. 
SEC. 1208. SENSE OF CONGRESS REGARDING LIMITATION 
ON USE OF FUNDS FOR THE RECONSTRUC-
TION OF IRAQ. 
It is the sense of Congress that no funds available 
to any department or agency of the United States Govern-
ment may be used to provide assistance for the reconstruc-
tion of Iraq unless the President certifies to Congress that 
the United States Government has entered into an agree-
ment with the Iraqi Governing Council or a transitional 
government in Iraq under which Iraq agrees that it will
479
expend a significant portion of its revenues generated from 
oil production for reconstruction activities in Iraq. 
SEC. 1209. SENSE OF CONGRESS ON DESTRUCTION OF ABU 
GHRAIB PRISON IN IRAQ. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) Under the regime of Saddam Hussein, the 
Abu Ghraib prison in Iraq was one of the world’s 
most notorious prisons. 
(2) Under that regime, as many as 50,000 men 
and women were jammed into the prison at one time 
in 12 feet by 12 feet cells. 
(3) Under that regime, many people were tor-
tured and executed in the Abu Ghraib prison. 
(4) Recent activities have further highlighted 
the horrible memories that Abu Ghraib stands for. 
(b) SENSE OF CONGRESS.—It is the sense of the 
Congress that the Secretary of Defense should assist the 
Iraqi Government, with the approval of that government, 
in destroying the Abu Ghraib prison and replacing it with 
a modern detention facility.
480
Subtitle B—Other Matters 
SEC. 1211. ASSIGNMENT OF ALLIED NAVAL PERSONNEL TO 
SUBMARINE SAFETY PROGRAMS. 
(a) IN GENERAL.—Chapter 631 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 7234. Submarine safety programs: participation of 
allied naval personnel 
‘‘(a) ACCEPTANCE
OF ASSIGNMENT
OF FOREIGN 
NAVAL PERSONNEL.—In order to facilitate the develop-
ment, standardization, and interoperability of submarine 
vessel safety and rescue systems and procedures, the Sec-
retary of the Navy may conduct a program under which 
members of the naval service of any of the member nations 
of the North Atlantic Treaty Organization and Australia, 
Japan, the Republic of Korea, and Sweden may be as-
signed to United States commands to work on such sys-
tems and procedures. 
‘‘(b) COSTS FOR FOREIGN PERSONNEL.—(1) The 
United States may not pay the following costs for a mem-
ber of a foreign naval service sent to the United States 
under the program authorized by this section: 
‘‘(A) Salary. 
‘‘(B) Per diem. 
‘‘(C) Cost of living.
481
‘‘(D) Travel costs. 
‘‘(E) Cost of language or other training. 
‘‘(F) Other costs. 
‘‘(2) Paragraph (1) does not apply to the following 
costs, which may be paid by the United States: 
‘‘(A) The cost of temporary duty directed by 
the United States Navy. 
‘‘(B) The cost of training programs conducted 
to familiarize, orient, or certify members of foreign 
naval services regarding unique aspects of their as-
signments. 
‘‘(C) Costs incident to the use of the facilities 
of the United States Navy in the performance of as-
signed duties. 
‘‘(d) APPLICABILITY TO AUTHORITY TO ENTER INTO 
AGREEMENTS.—The requirements of this section shall 
apply in the exercise of any authority of the Secretary of 
the Navy to enter into an agreement with the government 
of a foreign country, subject to the concurrence of the Sec-
retary of State, to provide for the assignment of members 
of the naval service of the foreign country to a United 
States Navy submarine safety program. 
‘‘(e) REGULATIONS.—The Secretary of the Navy may 
prescribe regulations for the application of this section in 
the exercise of authority referred to in subsection (d).’’.
482
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘7234. Submarine safety programs: participation of allied naval personnel.’’.
SEC. 1212. EXPANSION OF ENTITIES OF THE PEOPLE’S RE-
PUBLIC OF CHINA SUBJECT TO CERTAIN 
PRESIDENTIAL AUTHORITIES WHEN OPER-
ATING IN THE UNITED STATES. 
Section 1237(b)(4)(B)(i) of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 
(50 U.S.C. 1701 note) is amended by inserting after ‘‘the 
People’s Liberation Army’’ the following: ‘‘, by a ministry 
of the government of the People’s Republic of China, or 
by an entity affiliated with the defense industrial base of 
the People’s Republic of China’’.
SEC. 1213. REPORT BY PRESIDENT ON GLOBAL PEACE OP-
ERATIONS INITIATIVE. 
Not later than one year after the date of the enact-
ment of this Act, the President shall submit to the Con-
gress a report on the Global Peace Operations Initiative. 
The report shall include the following elements: 
(1) A summary of the goals of the Global Peace 
Operations Initiative and the timetable for achieving 
those goals. 
(2) An examination of the mechanisms by 
which the United States will ensure that foreign
483
countries acquiring new capabilities as a result of 
that Initiative will use those capabilities to the na-
tional security benefit of the United States. 
(3) An examination of the mechanisms by 
which the United States will ensure that training 
and equipment provided under that Initiative are 
used solely for the purposes of peacekeeping and 
peace enforcement operations. 
(4) An examination of the human rights prac-
tices of potential recipients under that Initiative, to 
include a discussion of each potential recipient’s 
commitment to representative government. 
(5) As assessment of the financial resources re-
quired to carry out that Initiative during fiscal years 
2005 through 2009. 
(6) An assessment of the effectiveness of the 
program of the Department of State referred to as 
the African Contingency Operations and Training 
Assistance program and the capacity of that pro-
gram to be expanded. 
(7) A review that compares and contrasts the 
basic military skills required of warfighters and the 
skills needed for peacekeeping and peace enforce-
ment operations.
484
(8) An assessment of the ability of military 
forces in the developing world to absorb, retain, and 
use the advanced skills and capabilities needed for 
effective peacekeeping and peace enforcement oper-
ations. 
(9) A proposal for providing sufficient resources 
to the Department of State to conduct the Global 
Peace Operations Initiative without significant fi-
nancial contributions from the Department of De-
fense. 
(10) An explanation of the reasons of the Ad-
ministration for proposing to exempt the Global 
Peace Operations Initiative from existing law related 
to the type of military and police training the United 
States may provide to foreign countries. 
(11) An examination of the costs and benefits 
of transferring responsibility for the training and 
equipping of foreign military and security forces 
from the Department of State to the Department of 
Defense, including an identification of any increased 
resources that will be provided to the Department of 
Defense should the Department of Defense become 
responsible for that activity.