II 
June 4, 2003
Ordered to be printed as passed 
In the Senate of the United States, 
June 4, 2003. 
Resolved, That the bill from the House of Representa-
tives (H.R. 1588) entitled ‘‘An Act to authorize appropria-
tions for fiscal year 2004 for military activities of the Depart-
ment of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel 
strengths for such fiscal year for the Armed Forces, and for 
other purposes.’’, do pass with the following 
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 2004’’.
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SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
CONTENTS. 
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows: 
(1) Division A—Department of Defense Author-
izations. 
(2) Division B—Military Construction Author-
izations. 
(3) Division C—Department of Energy National 
Security Authorizations and Other Authorizations. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title. 
Sec. 2. Organization of Act into divisions; table of contents. 
Sec. 3. Congressional defense committees defined. 
DIVISION A—DEPARTMENT OF DEFENSE 
AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—Authorization of Appropriations 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense-wide activities. 
Sec. 105. Defense Inspector General. 
Sec. 106. Chemical agents and munitions destruction, Defense. 
Sec. 107. Defense health programs. 
Sec. 108. Reduction in authorization. 
Subtitle B—Army Programs 
Sec. 111. CH–47 helicopter program. 
Sec. 112. Rapid infusion pumps. 
Subtitle C—Navy Programs 
Sec. 121. Multiyear procurement authority for Navy programs. 
Sec. 122. Pilot program for flexible funding of naval vessel conversions and over-
hauls.
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Subtitle D—Air Force Programs 
Sec. 131. Elimination of quantity limitations on multiyear procurement. author-
ity for C–130J aircraft. 
Sec. 132. B–1B Bomber aircraft. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND 
EVALUATION 
Subtitle A—Authorization of Appropriations 
Sec. 201. Authorization of appropriations. 
Sec. 202. Amount for science and technology. 
Sec. 203. Defense Inspector General. 
Sec. 204. Defense health programs. 
Subtitle B—Program Requirements, Restrictions, and 
Limitations 
Sec. 211. Prohibition on transfer of certain programs outside the Office of the 
Secretary of Defense. 
Sec. 212. Objective force indirect fires program. 
Sec. 213. Amount for Joint Engineering Data Management Information and 
Control System 
Sec. 214. Human tissue engineering. 
Sec. 215. Non-thermal imaging systems. 
Sec. 216. Magnetic levitation. 
Sec. 217. Composite sail test articles. 
Sec. 218. Portable Mobile Emergency Broadband Systems. 
Sec. 219. Boron energy cell technology. 
Sec. 220. Modification of program element of short range air defense radar pro-
gram of the Army. 
Sec. 221. Amount for network centric operations. 
Subtitle C—Ballistic Missile Defense 
Sec. 221. Fielding of ballistic missile defense capabilities. 
Sec. 222. Repeal of requirement for certain program elements for Missile Defense 
Agency activities. 
Sec. 223. Oversight of procurement, performance criteria, and operational test 
plans for ballistic missile defense programs. 
Sec. 224. Renewal of authority to assist local communities impacted by ballistic 
missile defense system test bed. 
Sec. 225. Requirement for specific authorization of Congress for design, develop-
ment, or deployment of hit-to-kill ballistic missile interceptors. 
Sec. 226. Prohibition on use of funds for nuclear armed interceptors in missile 
defense systems. 
Subtitle D—Other Matters 
Sec. 231. Global Research Watch program in the Office of the Director of Defense 
Research and Engineering. 
Sec. 232. Defense Advanced Research Projects Agency biennial strategic plan. 
Sec. 233. Enhancement of authority of Secretary of Defense to support science, 
mathematics, engineering, and technology education. 
Sec. 234. Department of Defense high-speed network-centric and bandwidth ex-
pansion program.
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Sec. 235. Department of Defense strategy for management of electromagnetic spec-
trum. 
Sec. 236. Amount for Collaborative Information Warfare Network. 
Sec. 237. Coproduction of Arrow ballistic missile defense system. 
TITLE III—OPERATION AND MAINTENANCE 
Subtitle A—Authorization of Appropriations 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Armed Forces Retirement Home. 
Subtitle B—Program Requirements, Restrictions, and 
Limitations 
Sec. 311. Emergency and morale communications programs. 
Sec. 312. Commercial imagery industrial base. 
Sec. 313. Information operations sustainment for land forces readiness of Army 
Reserve. 
Sec. 314. Submittal of survey on perchlorate contamination at Department of De-
fense sites. 
Subtitle C—Environmental Provisions 
Sec. 321. General definitions applicable to facilities and operations. 
Sec. 322. Military readiness and conservation of protected species. 
Sec. 323. Arctic and Western Pacific Environmental Technology Cooperation 
Program. 
Sec. 324. Participation in wetland mitigation banks in connection with military 
construction projects. 
Sec. 325. Extension of authority to use environmental restoration account funds 
for relocation of a contaminated facility. 
Sec. 326. Applicability of certain procedural and administrative requirements to 
restoration advisory boards. 
Sec. 327. Expansion of authorities on use of vessels stricken from the Naval Vessel 
Register for experimental purposes. 
Sec. 328. Transfer of vessels stricken from the Naval Vessel Register for use as ar-
tificial reefs. 
Sec. 329. Salvage facilities. 
Sec. 330. Task force on resolution of conflict between military training and en-
dangered species protection at Barry M. Goldwater Range, Ari-
zona. 
Sec. 331. Public health assessment of exposure to perchlorate. 
Subtitle D—Reimbursement Authorities 
Sec. 341. Reimbursement of reserve component military personnel accounts for 
personnel costs of special operations reserve component personnel 
engaged in landmines clearance. 
Sec. 342. Reimbursement of reserve component accounts for costs of intelligence 
activities support provided by reserve component personnel. 
Sec. 343. Reimbursement rate for services provided to the Department of State.
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Subtitle E—Defense Dependents Education 
Sec. 351. Assistance to local educational agencies that benefit dependents of mem-
bers of the Armed Forces and Department of Defense civilian 
employees. 
Sec. 352. Impact aid for children with severe disabilities. 
Subtitle F—Other Matters 
Sec. 361. Sale of Defense Information Systems Agency services to contractors per-
forming the Navy-Marine Corps Intranet contract. 
Sec. 362. Use of the Defense Modernization Account for life cycle cost reduction 
initiatives. 
Sec. 363. Exemption of certain firefighting service contracts from prohibition on 
contracts for performance of firefighting functions. 
Sec. 364. Technical amendment relating to termination of Sacramento Army 
Depot, Sacramento, California. 
Sec. 365. Exception to competition requirement for workloads previously per-
formed by depot-level activities. 
Sec. 366. Support for transfers of decommissioned vessels and shipboard equip-
ment. 
Sec. 367. Aircraft for performance of aerial refueling mission. 
Sec. 368. Contracting with employers of persons with disabilities. 
Sec. 369. Repeal of calendar year limitations on use of commissary stores by cer-
tain Reserves and others. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
Subtitle A—Active Forces 
Sec. 401. End strengths for active forces. 
Sec. 402. Increased maximum percentage of general and flag officers on active 
duty authorized to be serving in grades above Brigadier General 
and Rear Admiral (lower half). 
Sec. 403. Extension of certain authorities relating to management of numbers of 
general and flag officers in certain grades. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for Reserves on active duty in support of the Reserves. 
Sec. 413. End strengths for military technicians (dual status). 
Sec. 414. Fiscal year 2004 limitations on non-dual status technicians. 
Subtitle C—Other Matters Relating to Personnel Strengths 
Sec. 421. Revision of personnel strength authorization and accounting process. 
Sec. 422. Exclusion of recalled retired members from certain strength limitations 
during period of war or national emergency. 
Subtitle D—Authorization of Appropriations 
Sec. 431. Authorization of appropriations for military personnel.
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TITLE V—MILITARY PERSONNEL POLICY 
Subtitle A—Officer Personnel Policy 
Sec. 501. Retention of health professions officers to fulfill active duty service obli-
gations following failure of selection for promotion. 
Sec. 502. Eligibility for appointment as Chief of Army Veterinary Corps. 
Subtitle B—Reserve Component Personnel Policy 
Sec. 511. Expanded authority for use of Ready Reserve in response to terrorism. 
Sec. 512. Streamlined process for continuing officers on the Reserve Active-status 
list. 
Sec. 513. National Guard officers on active duty in command of National Guard 
units. 
Subtitle C—Revision of Retirement Authorities 
Sec. 521. Permanent authority to reduce three-year time-in-grade requirement for 
retirement in grade for officers in grades above Major and Lieu-
tenant Commander. 
Subtitle D—Education and Training 
Sec. 531. Increased flexibility for management of senior level education and post-
education assignments. 
Sec. 532. Expanded educational assistance authority for cadets and midshipmen 
receiving ROTC scholarships. 
Sec. 533. Eligibility and cost reimbursement requirements for personnel to receive 
instruction at the Naval Postgraduate School. 
Sec. 534. Actions to address sexual misconduct at the service academies. 
Sec. 535. Funding of education assistance enlistment incentives to facilitate na-
tional service through Department of Defense Education Benefits 
Fund. 
Subtitle E—Military Justice 
Sec. 551. Extended limitation period for prosecution of child abuse cases in 
courts-martial. 
Sec. 552. Clarification of blood alcohol content limit for the offense under the 
Uniform Code of Military Justice of drunken operation of a ve-
hicle, aircraft, or vessel. 
Subtitle F—Other Matters 
Sec. 561. High-tempo personnel management and allowance. 
Sec. 562. Alternate initial military service obligation for persons accessed under 
direct entry program. 
Sec. 563. Policy on concurrent deployment to combat zones of both military 
spouses of military families with minor children. 
Sec. 564. Enhancement of voting rights of members of the uniformed services. 
Sec. 565. Certain travel and transportation allowances for dependents of members 
of the Amed Frces who have committed dependent abuse.
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TITLE VI—COMPENSATION AND OTHER PERSONNEL 
BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Increase in basic pay for fiscal year 2004. 
Sec. 602. Revised annual pay adjustment process. 
Sec. 603. Computation of basic pay rate for commissioned officers with prior en-
listed or warrant officer service. 
Sec. 604. Pilot program of monthly subsistence allowance for non-scholarship 
Senior ROTC members committing to continue ROTC partici-
pation as sophomores. 
Sec. 605. Basic allowance for housing for each member married to another mem-
ber without dependents when both spouses are on sea duty. 
Sec. 606. Increased rate of family separation allowance. 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. One-year extension of certain bonus and special pay authorities for Re-
serve forces. 
Sec. 612. One-year extension of certain bonus and special pay authorities for cer-
tain health care professionals. 
Sec. 613. One-year extension of special pay and bonus authorities for nuclear offi-
cers. 
Sec. 614. One-year extension of other bonus and special pay authorities. 
Sec. 615. Special pay for reserve officers holding positions of unusual responsi-
bility and of critical nature. 
Sec. 616. Assignment incentive pay for service in Korea. 
Sec. 617. Increased maximum amount of reenlistment bonus for active members. 
Sec. 618. Payment of Selected Reserve reenlistment bonus to members of Selected 
Reserve who are mobilized. 
Sec. 619. Increased rate of hostile fire and imminent danger special pay. 
Sec. 620. Availability of hostile fire and imminent danger special pay for reserve 
component members on inactive duty. 
Sec. 621. Expansion of overseas tour extension incentive program to officers. 
Sec. 622. Eligibility of warrant officers for accession bonus for new officers in 
critical skills. 
Sec. 623. Incentive bonus for conversion to military occupational specialty to ease 
personnel shortage. 
Subtitle C—Travel and Transportation Allowances 
Sec. 631. Shipment of privately owned motor vehicle within continental United 
States. 
Sec. 632. Payment or reimbursement of student baggage storage costs for depend-
ent children of members stationed overseas. 
Sec. 633. Contracts for full replacement value for loss or damage to personal 
property transported at Government expense. 
Sec. 634. Transportation of dependents to presence of members of the Armed 
Forces who are retired for illness or injury incurred in active 
duty. 
Subtitle D—Retired Pay and Survivor Benefits 
Sec. 641. Special rule for computation of retired pay base for commanders of 
combatant commands.
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Sec. 642. Survivor Benefit Plan annuities for surviving spouses of Reserves not 
eligible for retirement who die from a cause incurred or aggra-
vated while on inactive-duty training. 
Sec. 643. Increase in death gratuity payable with respect to deceased members of 
the Armed Forces. 
Sec. 644. Full payment of both retired pay and compensation to disabled mili-
tary retirees. 
Subtitle E—Other Matters 
Sec. 651. Retention of accumulated leave. 
Sec. 652. GAO study. 
Subtitle F—Naturalization and Family Protection for Military 
Members 
Sec. 661. Short title. 
Sec. 662. Requirements for naturalization through service in the Armed Forces of 
the United States. 
Sec. 663. Naturalization benefits for members of the Selected Reserve of the Ready 
Reserve. 
Sec. 664. Extension of posthumous benefits to surviving spouses, children, and 
parents. 
Sec. 665. Effective date. 
TITLE VII—HEALTH CARE 
Sec. 701. Medical and dental screening for members of Selected Reserve units 
alerted for mobilization. 
Sec. 702. TRICARE beneficiary counseling and assistance coordinators for Re-
serve component beneficiaries. 
Sec. 703. Extension of authority to enter into personal services contracts for 
health care services to be performed at locations outside medical 
treatment facilities. 
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care Fund 
valuations and contributions. 
Sec. 705. Surveys on continued viability of TRICARE standard. 
Sec. 706. Elimination of limitation on covered beneficiaries’ eligibility to receive 
health care services from former Public Health Service treatment 
facilities. 
Sec. 707. Modification of structure and duties of Department of Veterans Affairs-
Department of Defense Health Executive Committee. 
Sec. 708. Eligibility of reserve officers for health care pending orders to active 
duty following commissioning. 
Sec. 709. Reimbursement of covered beneficiaries for certain travel expenses relat-
ing to specialized dental care. 
TITLE VIII—ACQUISITION POLICY, ACQUISITION 
MANAGEMENT, AND RELATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Temporary emergency procurement authority to facilitate defense 
against or recovery from terrorism or nuclear, biological, chem-
ical, or radiological attack. 
Sec. 802. Special temporary contract closeout authority.
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Sec. 803. Defense acquisition program management for use of radio frequency 
spectrum. 
Sec. 804. National Security Agency Modernization Program. 
Sec. 805. Quality control in procurement of aviation critical safety items and re-
lated services. 
Subtitle B—Procurement of Services 
Sec. 811. Expansion and extension of incentive for use of performance-based con-
tracts in procurements of services. 
Sec. 812. Public-private competitions for the performance of Department of De-
fense functions. 
Sec. 813. Authority to enter into personal services contracts. 
Subtitle C—Major Defense Acquisition Programs 
Sec. 821. Certain weapons-related prototype projects. 
Sec. 822. Applicability of Clinger-Cohen Act policies and requirements to equip-
ment integral to a weapon or weapon system. 
Sec. 823. Applicability of requirement for reports on maturity of technology at 
initiation of major defense acquisition programs. 
Subtitle D—Domestic Source Requirements 
Sec. 831. Exceptions to Berry amendment for contingency operations and other 
urgent situations. 
Sec. 832. Inapplicability of Berry amendment to procurements of waste and by-
products of cotton and wool fiber for use in the production of 
propellants and explosives. 
Sec. 833. Waiver authority for domestic source or content requirements. 
Sec. 834. Buy American exception for ball bearings and roller bearings used in 
foreign products. 
Subtitle E—Defense Acquisition and Support Workforce 
Sec. 841. Flexibility for management of the defense acquisition and support work-
force. 
Sec. 842. Limitation and reinvestment authority relating to reduction of the de-
fense acquisition and support workforce. 
Sec. 843. Clarification and revision of authority for demonstration project relat-
ing to certain acquisition personnel management policies and 
procedures. 
Subtitle F—Federal Support for Procurement of Anti-Terrorism 
Technologies and Services by State and Local Governments 
Sec. 851. Application of indemnification authority to State and local government 
contractors. 
Sec. 852. Federal support for enhancement of State and local anti-terrorism re-
sponse capabilities. 
Sec. 853. Definitions. 
Subtitle G—General Contracting Authorities, Procedures, and 
Limitations, and Other Matters 
Sec. 861. Limited acquisition authority for Commander of United States Joint 
Forces Command. 
Sec. 862. Operational test and evaluation.
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Sec. 863. Multiyear task and delivery order contracts. 
Sec. 864. Repeal of requirement for contractor assurances regarding the complete-
ness, accuracy, and contractual sufficiency of technical data pro-
vided by the contractor. 
Sec. 865. Reestablishment of authority for short-term leases of real or personal 
property across fiscal years. 
Sec. 866. consolidation of contract requirements. 
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department Officers and Agencies 
Sec. 901. Clarification of responsibility of military departments to support com-
batant commands. 
Sec. 902. Redesignation of National Imagery and Mapping Agency as National 
Geospatial-Intelligence Agency. 
Sec. 903. Standards of conduct for members of the Defense Policy Board and the 
Defense Science Board. 
Subtitle B—Space Activities 
Sec. 911. Coordination of space science and technology activities of the Depart-
ment of Defense. 
Sec. 912. Space personnel cadre. 
Sec. 913. Policy regarding assured access to space for United States national se-
curity payloads. 
Sec. 914. Pilot program to provide space surveillance network services to entities 
outside the United States Government. 
Sec. 915. Content of biennial Global Positioning System report. 
Subtitle C—Other Matters 
Sec. 921. Combatant Commander Initiative Fund. 
Sec. 922. Authority for the Marine Corps University to award the degree of mas-
ter of operational studies. 
Sec. 923. Report on changing roles of United States Special Operations Com-
mand. 
Sec. 924. Integration of Defense intelligence, surveillance, and reconnaissance ca-
pabilities. 
Sec. 925. Establishment of the National Guard of the Northern Mariana Islands. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Transfer authority. 
Sec. 1002. United States contribution to NATO common-funded budgets in fiscal 
year 2004. 
Sec. 1003. Authorization of supplemental appropriations for fiscal year 2003. 
Subtitle B—Improvement of Travel Card Management 
Sec. 1011. Mandatory disbursement of travel allowances directly to travel card 
creditors. 
Sec. 1012. Determinations of creditworthiness for issuance of Defense travel card. 
Sec. 1013. Disciplinary actions and assessing penalties for misuse of Defense 
travel cards.
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Subtitle C—Reports 
Sec. 1021. Elimination and revision of various reporting requirements applicable 
to the Department of Defense. 
Sec. 1022. Global strike plan. 
Sec. 1023. Report on the conduct of Operation Iraqi Freedom. 
Sec. 1024. Report on mobilization of the reserves. 
Sec. 1025. Study of beryllium industrial base. 
Subtitle D—Other Matters 
Sec. 1031. Blue forces tracking initiative. 
Sec. 1032. Loan, donation, or exchange of obsolete or surplus property. 
Sec. 1033. Acceptance of gifts and donations. 
Sec. 1034. Provision of living quarters for certain students working at National 
Security Agency laboratory. 
Sec. 1035. Protection of operational files of the National Security Agency. 
Sec. 1036. Transfer of administration of National Security Education Program 
to Director of Central Intelligence. 
Sec. 1037. Report on use of unmanned aerial vehicles for support of homeland se-
curity missions. 
Sec. 1038. Conveyance of surplus T–37 aircraft to Air Force Aviation Heritage 
Foundation, Incorporated. 
Sec. 1039. Sense of Senate on reward for information leading to resolution of sta-
tus of members of the Armed Forces who remain missing in ac-
tion. 
Sec. 1040. Advanced shipbuilding enterprise. 
Sec. 1041. Air fares for members of Armed Forces. 
Sec. 1042. Sense of Senate on deployment of airborne chemical agent monitoring 
systems at chemical stockpile disposal sites in the united states. 
Sec. 1043. Federal assistance for State programs under the National Guard Chal-
lenge Program. 
Sec. 1044. Sense of Senate on reconsideration of decision to terminate border sea-
port inspection duties of National Guard under National Guard 
drug interdiction and counter-drug mission. 
TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN 
PERSONNEL POLICY 
Sec. 1101. Authority to employ civilian faculty members at the Western Hemi-
sphere Institute for Security Cooperation. 
Sec. 1102. Pay authority for critical positions. 
Sec. 1103. Extension, expansion, and revision of authority for experimental per-
sonnel program for scientific and technical personnel. 
Sec. 1104. Transfer of personnel investigative functions and related personnel of 
the Department of Defense. 
TITLE XII—MATTERS RELATING TO OTHER NATIONS 
Sec. 1201. Authority to use funds for payment of costs of attendance of foreign 
visitors under Regional Defense Counterterrorism Fellowship 
Program. 
Sec. 1202. Availability of funds to recognize superior noncombat achievements or 
performance of members of friendly foreign forces and other for-
eign nationals. 
Sec. 1203. Check cashing and exchange transactions for foreign personnel in alli-
ance or coalition forces.
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Sec. 1204. Clarification and extension of authority to provide assistance for inter-
national nonproliferation activities. 
Sec. 1205. Reimbursable costs relating to national security controls on satellite 
export licensing. 
Sec. 1206. Annual report on the NATO Prague capabilities commitment and the 
NATO Response Force. 
Sec. 1207. Expansion and extension of authority to provide additional support 
for counter-drug activities. 
Sec. 1208. Use of funds for unified counterdrug and counterterrorism campaign 
in Colombia. 
Sec. 1209. Competitive award of contracts for Iraqi reconstruction. 
TITLE XIII—COOPERATIVE THREAT REDUCTION WITH 
STATES OF THE FORMER SOVIET UNION 
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds. 
Sec. 1302. Funding allocations. 
Sec. 1303. Annual certifications on use of facilities being constructed for Coopera-
tive Threat Reduction projects or activities. 
Sec. 1304. Authority to use Cooperative Threat Reduction funds outside the 
former Soviet Union. 
Sec. 1305. One-year extension of inapplicability of certain conditions on use of 
funds for chemical weapons destruction. 
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS 
Sec. 2001. Short title. 
TITLE XXI—ARMY 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Authorization of appropriations, Army. 
Sec. 2105. Termination of authority to carry out certain fiscal year 2003 
projects. 
Sec. 2106. Modification of authority to carry out certain fiscal year 2003 
projects. 
Sec. 2107. Modification of authority to carry out certain fiscal year 2002 project. 
Sec. 2108. Modification of authority to carry out certain fiscal year 2001 project. 
TITLE XXII—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Authorization of appropriations, Navy. 
Sec. 2205. Termination of authority to carry out certain fiscal year 2003 project. 
TITLE XXIII—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects. 
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Authorization of appropriations, Air Force. 
Sec. 2305. Modification of fiscal year 2003 authority relating to improvement of 
military family housing units.
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TITLE XXIV—DEFENSE AGENCIES 
Sec. 2401. Authorized Defense Agencies construction and land acquisition 
projects. 
Sec. 2402. Family housing. 
Sec. 2403. Improvements to military family housing units. 
Sec. 2404. Energy conservation projects. 
Sec. 2405. Authorization of appropriations, Defense Agencies. 
Sec. 2406. Modification of authority to carry out certain fiscal year 2003 project. 
Sec. 2407. Modification of authority to carry out certain fiscal year 2003 
projects. 
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION 
SECURITY INVESTMENT PROGRAM 
Sec. 2501. Authorized NATO construction and land acquisition projects. 
Sec. 2502. Authorization of appropriations, NATO. 
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES 
Sec. 2601. Authorized guard and reserve construction and land acquisition 
projects. 
TITLE XXVII—EXPIRATION AND EXTENSION OF 
AUTHORIZATIONS 
Sec. 2701. Expiration of authorizations and amounts required to be specified by 
law. 
Sec. 2702. Extension of authorizations of certain fiscal year 2001 projects. 
Sec. 2703. Extension of authorizations of certain fiscal year 2000 projects. 
Sec. 2704. Effective date. 
TITLE XXVIII—GENERAL PROVISIONS 
Subtitle A—Military Construction Program and Military 
Family Housing Changes 
Sec. 2801. Modification of general definitions relating to military construction. 
Sec. 2802. Increase in number of family housing units in Italy authorized for 
lease by the Navy. 
Subtitle B—Real Property and Facilities Administration 
Sec. 2811. Increase in threshold for reports to Congress on real property trans-
actions. 
Sec. 2812. Acceptance of in-kind consideration for easements. 
Sec. 2813. Expansion to military unaccompanied housing of authority to transfer 
property at military installations to be closed in exchange for 
military housing. 
Sec. 2814. Exemption from screening and use requirements under McKinney-
Vento Homeless Assistance Act of Department of Defense prop-
erty in emergency support of homeland security. 
Subtitle C—Land Conveyances 
Sec. 2821. Transfer of land at Fort Campbell, Kentucky and Tennessee. 
Sec. 2822. Land conveyance, Fort Knox, Kentucky. 
Sec. 2823. Land conveyance, Marine Corps Logistics Base, Albany, Georgia.
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Sec. 2824. Land conveyance, Air Force and Army Exchange Service property, 
Dallas, Texas. 
Sec. 2825. Land exchange, Naval and Marine Corps Reserve Center, Portland Or-
egon. 
Sec. 2826. Land conveyance, Fort Ritchie, Maryland. 
Sec. 2827. Feasibility study of conveyance of Louisiana Army Ammunition 
Plant, Doyline, Louisiana. 
Subtitle D—Review of Overseas Military Facility Structure 
Sec. 2841. Short title. 
Sec. 2842. Establishment of Commission. 
Sec. 2843. Duties of Commission. 
Sec. 2844. Powers of Commission. 
Sec. 2845. Commission personnel matters. 
Sec. 2846. Security. 
Sec. 2847. Termination of Commission. 
Sec. 2848. Funding. 
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS 
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL 
SECURITY PROGRAMS 
Subtitle A—National Security Programs Authorizations 
Sec. 3101. National Nuclear Security Administration. 
Sec. 3102. Defense environmental management. 
Sec. 3103. Other defense activities. 
Sec. 3104. Defense nuclear waste disposal. 
Sec. 3105. Defense energy supply. 
Subtitle B—Program Authorizations, Restrictions, and 
Limitations 
Sec. 3131. Repeal of prohibition on research and development of low-yield nuclear 
weapons. 
Sec. 3132. Readiness posture for resumption by the United States of underground 
nuclear weapons tests. 
Sec. 3133. Technical base and facilities maintenance and recapitalization activi-
ties. 
Sec. 3134. Continuation of processing, treatment, and disposition of legacy nu-
clear materials. 
Sec. 3135. Requirement for specific authorization of Congress for commencement 
of engineering development phase or subsequent phase of robust 
nuclear earth penetrator. 
Subtitle C—Proliferation Matters 
Sec. 3141. Expansion of International Materials Protection, Control, and Ac-
counting program. 
Sec. 3142. Semi-annual financial reports on Defense Nuclear Nonproliferation 
program. 
Sec. 3143. Report on reduction of excessive uncosted balances for defense nuclear 
nonproliferation activities.
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Subtitle D—Other Matters 
Sec. 3151. Modification of authorities on Department of Energy personnel secu-
rity investigations. 
Sec. 3152. Responsibilities of Environmental Management program and National 
Nuclear Security Administration of Department of Energy for 
environmental cleanup, decontamination and decommissioning, 
and waste management. 
Sec. 3153. Update of report on stockpile stewardship criteria. 
Sec. 3154. Progress reports on Energy Employees Occupational Illness Compensa-
tion Program. 
Sec. 3155. Study on the application of technology from the Robust Nuclear Earth 
Penetrator Program to Conventional Hard and Deeply Buried 
Target Weapons Development Programs. 
Subtitle E—Consolidation of General Provisions on Department 
of Energy National Security Programs 
Sec. 3161. Consolidation and assembly of recurring and general provisions on De-
partment of Energy national security programs. 
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY 
BOARD 
Sec. 3201. Authorization.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED. 
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the 
Committee on Appropriations of the Senate; and 
(2) the Committee on Armed Services and the 
Committee on Appropriations of the House of Rep-
resentatives.
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DIVISION A—DEPARTMENT OF 
DEFENSE AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—Authorization of 
Appropriations 
SEC. 101. ARMY. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for procurement for the Army as follows: 
(1) For aircraft, $2,158,485,000. 
(2) For missiles, $1,553,462,000. 
(3) For weapons and tracked combat vehicles, 
$1,658,504,000. 
(4) For ammunition, $1,363,305,000. 
(5) For other procurement, $4,266,027,000. 
SEC. 102. NAVY AND MARINE CORPS. 
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 2004 for procurement for the Navy 
as follows: 
(1) For aircraft, $8,996,948,000. 
(2) For weapons, including missiles and tor-
pedoes, $2,046,821,000. 
(3) 
For 
shipbuilding 
and 
conversion, 
$11,707,984,000. 
(4) For other procurement, $4,744,443,000.
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(b) MARINE CORPS.—Funds are hereby authorized to 
be appropriated for fiscal year 2004 for procurement for 
the Marine Corps in the amount of $1,089,599,000. 
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds 
are hereby authorized to be appropriated for fiscal year 
2004 for procurement of ammunition for the Navy and the 
Marine Corps in the amount of $924,355,000. 
SEC. 103. AIR FORCE. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for procurement for the Air Force as follows: 
(1) For aircraft, $12,082,760,000. 
(2) For ammunition, $1,284,725,000. 
(3) For missiles, $4,394,439,000. 
(4) For other procurement, $11,630,659,000. 
SEC. 104. DEFENSE-WIDE ACTIVITIES. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for Defense-wide procurement in the amount 
of $3,884,106,000. 
SEC. 105. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for procurement for the Inspector General of 
the Department of Defense in the amount of $2,100,000.
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SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUC-
TION, DEFENSE. 
There is hereby authorized to be appropriated for the 
Office of the Secretary of Defense for fiscal year 2004 the 
amount of $1,530,261,000 for—
(1) the destruction of lethal chemical agents and 
munitions in accordance with section 1412 of the De-
partment of Defense Authorization Act, 1986 (50 
U.S.C. 1521); and 
(2) the destruction of chemical warfare materiel 
of the United States that is not covered by section 
1412 of such Act. 
SEC. 107. DEFENSE HEALTH PROGRAMS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for the Department of Defense for procure-
ment for carrying out health care programs, projects, and 
activities of the Department of Defense in the total amount 
of $327,826,000. 
SEC. 108. REDUCTION IN AUTHORIZATION.1
The total amount authorized to be appropriated under 
section 104 is hereby reduced by $3,300,000, with 
$2,100,000 of the reduction to be allocated to Special Oper-
ations Forces rotary upgrades and $1,200,000 to be allo-
cated to Special Operations Forces operational enhance-
ments.
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Subtitle B—Army Programs 
SEC. 111. CH–47 HELICOPTER PROGRAM. 
(a) REQUIREMENT FOR STUDY.—The Secretary of the 
Army shall study the feasibility and the costs and benefits 
of providing for the participation of a second source in the 
production of gears for the helicopter transmissions incor-
porated into CH–47 helicopters being procured by the Army 
with funds authorized to be appropriated by this Act. 
(b) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary shall submit a 
report on the results of the study to Congress. 
SEC. 112. RAPID INFUSION PUMPS. 
(a) AVAILABILITY OF FUNDS.—(1) Of the amount au-
thorized to be appropriated by section 101(5) for other pro-
curement, Army, $2,000,000 may be available for medical 
equipment for the procurement of rapid infusion (IV) 
pumps. 
(2) The total amount authorized to be appropriated 
under section 101(5) is hereby increased by $2,000,000. 
(b) OFFSET.—Of the amount authorized to be appro-
priated by section 301(1) for operation and maintenance, 
Army, the amount available is hereby reduced by 
$2,000,000.
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Subtitle C—Navy Programs 
SEC. 121. MULTIYEAR 
PROCUREMENT 
AUTHORITY 
FOR 
NAVY PROGRAMS. 
(a) AUTHORITY.—Beginning with the fiscal year 2004 
program year, the Secretary of the Navy may, in accord-
ance with section 2306b of title 10, United States Code, 
enter into a multiyear contract for procurement for the fol-
lowing programs: 
(1) The F/A–18 aircraft program. 
(2) The E–2C aircraft program. 
(3) The Tactical Tomahawk Cruise Missile pro-
gram, subject to subsection (b). 
(4) The Virginia class submarine, subject to sub-
section (c). 
(5) The Phalanx Close In Weapon System pro-
gram, Block 1B. 
(b) TACTICAL TOMAHAWK CRUISE MISSILES.—The 
Secretary may not enter into a multiyear contract for the 
procurement of Tactical Tomahawk Cruise Missiles under 
subsection (a)(3) until the Secretary determines on the basis 
of operational testing that the Tactical Tomahawk Cruise 
Missile is effective for fleet use. 
(c) 
VIRGINIA
CLASS
SUBMARINES.—Paragraphs 
(2)(A), (3), and (4) of section 121(b) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105–
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85; 111 Stat. 1648) shall apply in the exercise of authority 
to enter into a multiyear contract for the procurement of 
Virginia class submarines under subsection (a)(4). 
SEC. 122. PILOT PROGRAM FOR FLEXIBLE FUNDING OF 
NAVAL VESSEL CONVERSIONS AND OVER-
HAULS. 
(a) ESTABLISHMENT.—The Secretary of the Navy may 
carry out a pilot program of flexible funding of conversions 
and overhauls of cruisers of the Navy in accordance with 
this section. 
(b) AUTHORITY.—Under the pilot program the Sec-
retary of the Navy may, subject to subsection (d), transfer 
appropriated funds described in subsection (c) to the appro-
priation for the Navy for procurement for shipbuilding and 
conversion for any fiscal year to continue to fund any con-
version or overhaul of a cruiser of the Navy that was ini-
tially funded with the appropriation to which transferred. 
(c) FUNDS AVAILABLE FOR TRANSFER.—The appro-
priations available for transfer under this section are the 
appropriations to the Navy for any fiscal year after fiscal 
year 2003 and before fiscal year 2013 for the following pur-
poses: 
(1) For procurement, as follows: 
(A) For shipbuilding and conversion. 
(B) For weapons procurement.
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(C) For other procurement. 
(2) For operation and maintenance. 
(d) LIMITATIONS.—(1) A transfer may be made with 
respect to a cruiser under this section only to meet the fol-
lowing requirements: 
(A) Any increase in the size of the workload for 
conversion or overhaul to meet existing requirements 
for the cruiser. 
(B) Any new conversion or overhaul requirement 
resulting from a revision of the original baseline con-
version or overhaul program for the cruiser. 
(2) A transfer may not be made under this section be-
fore the date that is 30 days after the date on which the 
Secretary of the Navy transmits to the congressional defense 
committees a written notification of the intended transfer. 
The notification shall include the following matters: 
(A) The purpose of the transfer. 
(B) The amounts to be transferred. 
(C) Each account from which the funds are to be 
transferred. 
(D) Each program, project, or activity from 
which the funds are to be transferred. 
(E) Each account to which the funds are to be 
transferred.
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(F) A discussion of the implications of the trans-
fer for the total cost of the cruiser conversion or over-
haul program for which the transfer is to be made. 
(e) MERGER OF FUNDS.—Amounts transferred to an 
appropriation with respect to the conversion or overhaul of 
a cruiser under this section shall be credited to and merged 
with other funds in the appropriation to which transferred 
and shall be available for the conversion or overhaul of such 
cruiser for the same period as the appropriation with which 
merged. 
(f) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The authority to transfer funds under this section is 
in addition to any other authority provided by law to 
transfer appropriated funds and is not subject to any re-
striction, limitation, or procedure that is applicable to the 
exercise of any such other authority. 
(g) FINAL REPORT.—Not later than October 1, 2011, 
the Secretary of the Navy shall submit to the congressional 
defense committees a report containing the Secretary’s eval-
uation of the efficacy of the authority provided under this 
section. 
(h) TERMINATION OF PROGRAM.—No transfer may be 
made under this section after September 30, 2012.
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Subtitle D—Air Force Programs 
SEC. 131. ELIMINATION OF QUANTITY LIMITATIONS ON 
MULTIYEAR PROCUREMENT AUTHORITY FOR 
C–130J AIRCRAFT. 
Section 131(a) of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 107–314; 
116 Stat. 2475) is amended by striking ‘‘up to 40 C-130J 
aircraft in the CC–130J configuration and up to 24 C–
130J aircraft in the KC–130J configuration’’ and inserting 
‘‘C–130J aircraft in the CC–130J and KC–130J configura-
tions’’. 
SEC. 132. B–1B BOMBER AIRCRAFT. 
(a) AMOUNT FOR AIRCRAFT.—(1) Of the amount au-
thorized to be appropriated under section 103(1), 
$20,300,000 may be available to reconstitute the fleet of B–
1B bomber aircraft through modifications of 23 B–1B 
bomber aircraft otherwise scheduled to be retired in fiscal 
year 2003 that extend the service life of such aircraft and 
maintain or, as necessary, improve the capabilities of such 
aircraft for mission performance. 
(2) The Secretary of the Air Force shall submit to the 
congressional defense committees a report that specifies the 
amounts necessary to be included in the future-years defense 
program to reconstitute the B–1B bomber aircraft fleet of 
the Air Force.
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(b) ADJUSTMENT.—(1) The total amount authorized to 
be appropriated under section 103(1) is hereby increased 
by $20,300,000. 
(2) The total amount authorized to be appropriated 
under section 104 is hereby reduced by $20,300,000, with 
the amount of the reduction to be allocated to Special Oper-
ations Forces operational enhancements. 
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION 
Subtitle A—Authorization of 
Appropriations 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for the use of the Department of Defense for 
research, development, test, and evaluation as follows: 
(1) For the Army, $9,012,500,000. 
(2) For the Navy, $14,590,284,000. 
(3) For the Air Force, $20,382,407,000. 
(4) For Defense-wide activities, $19,135,679,000, 
of which $286,661,000 is authorized for the Director 
of Operational Test and Evaluation.
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SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY. 
(a) AMOUNT FOR PROJECTS.—Of the total amount au-
thorized to be appropriated by section 201, $10,705,561,000 
shall be available for science and technology projects. 
(b) SCIENCE AND TECHNOLOGY DEFINED.—In this 
section, the term ‘‘science and technology project’’ means 
work funded in program elements for defense research, de-
velopment, test, and evaluation under Department of De-
fense budget activities 1, 2, or 3. 
SEC. 203. DEFENSE INSPECTOR GENERAL. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for research, development, test, and evalua-
tion for the Inspector General of the Department of Defense 
in the amount of $300,000. 
SEC. 204. DEFENSE HEALTH PROGRAMS. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for the Department of Defense for research, 
development, test, and evaluation for carrying out health 
care programs, projects, and activities of the Department 
of Defense in the total amount of $65,796,000.
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Subtitle B—Program Requirements, 
Restrictions, and Limitations 
SEC. 211. PROHIBITION ON TRANSFER OF CERTAIN PRO-
GRAMS OUTSIDE THE OFFICE OF THE SEC-
RETARY OF DEFENSE. 
The Secretary of Defense may not designate any offi-
cial outside the Office of the Secretary of Defense to exercise 
authority for programming or budgeting for any of the fol-
lowing programs: 
(1) Explosive demilitarization technology (pro-
gram element 0603104D8Z). 
(2) High energy laser research initiative (pro-
gram element 0601108D8Z). 
(3) High energy laser research (program element 
0602890D8Z). 
(4) High energy laser advanced development 
(program element 0603924D8Z). 
(5) University research initiative (program ele-
ment 0601103D8Z). 
SEC. 212. OBJECTIVE FORCE INDIRECT FIRES PROGRAM. 
(a) DISTINCT PROGRAM ELEMENT.—The Secretary of 
Defense shall ensure that, not later than October 1, 2003, 
the Objective Force Indirect Fires Program is being 
planned, programmed, and budgeted for as a distinct pro-
gram element and that funds available for such program
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are being administered consistent with the budgetary status 
of the program as a distinct program element. 
(b) PROHIBITION.—Effective on October 1, 2003, the 
Objective Force Indirect Fires Program may not be 
planned, programmed, and budgeted for, and funds avail-
able for such program may not be administered, in one pro-
gram element in combination with the Armored Systems 
Modernization program. 
(c) CERTIFICATION REQUIREMENT.—At the same time 
that the President submits the budget for fiscal year 2005 
to Congress under section 1105(a) of title 31, United States 
Code, the Secretary of Defense shall submit to the Commit-
tees on Armed Services of the Senate and the House of Rep-
resentatives a written certification that the Objective Force 
Indirect Fires Program is being planned, programmed, and 
budgeted for, and funds available for such program are 
being administered, in accordance with the requirement in 
subsection (a) and the prohibition in subsection (b). 
SEC. 213. AMOUNT FOR JOINT ENGINEERING DATA MAN-
AGEMENT INFORMATION AND CONTROL SYS-
TEM. 
(a) NAVY RDT&E.—The amount authorized to be ap-
propriated under section 201(2) is hereby increased by 
$2,500,000. Such amount may be available for the Joint
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Engineering Data Management Information and Control 
System (JEDMICS). 
(b) NAVY PROCUREMENT.—The amount authorized to 
be appropriated under section 102(a)(4) is hereby reduced 
by $2,500,000, to be derived from the amount provided for 
the Joint Engineering Data Management Information and 
Control System (JEDMICS). 
SEC. 214. HUMAN TISSUE ENGINEERING. 
(a) AMOUNT.—Of the amount authorized to be appro-
priated under section 201(1), $1,700,000 may be available 
in PE 0602787 for human tissue engineering. The total 
amount authorized to be appropriated under section 201(1) 
is hereby increased by $1,700,000. 
(b) OFFSETS.—Of the amount authorized to be appro-
priated under section 301(4) for Operations and Mainte-
nance, Air Force is hereby reduced by $1,700,000. 
SEC. 215. NON-THERMAL IMAGING SYSTEMS. 
(a) AVAILABILITY OF FUNDS.—Of the amount author-
ized to be appropriated by section 201(2) for research, devel-
opment, test, and evaluation for the Navy and available for 
Power 
Projection 
Applied 
Research 
(PE 602114N), 
$2,000,000 may be available for research and development 
of non-thermal imaging systems. The total amount author-
ized to be appropriated under section 201(2) is hereby in-
creased by $2,000,000
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(b) OFFSETS.—The amount authorized to be appro-
priated by section 301(4) for Operation and Maintenance, 
Air Force is hereby reduced by $1,000,000 and the amount 
authorized to be appropriated by section 104 for Defense-
wide activities, is hereby reduced by $1,000,000 for Special 
Operations Forces rotary wing upgrades. 
SEC. 216. MAGNETIC LEVITATION. 
(a) INCREASE
IN AUTHORIZATION
OF APPROPRIA-
TIONS.—The amount authorized to be appropriated by sec-
tion 201(3) for research, development, test, and evaluation 
for the Air Force is hereby increased by $2,100,000, with 
the amount of the increase to be allocated to Major Test 
and Evaluation Investment (PE 0604759F). 
(b) AVAILABILITY.—(1) Of the amount authorized to 
be appropriated by section 201(3) for research, development, 
test, and evaluation for the Air Force and available for 
Major Test and Evaluation Investment, as increased by 
subsection (a), $2,100,000 may be available for research and 
development on magnetic levitation technologies at the high 
speed test track at Holloman Air Force Base, New Mexico. 
(2) The amount available under paragraph (1) for the 
purpose specified in that paragraph is in addition to any 
other amounts available under this Act for that purpose.
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(c) OFFSET.—The amount authorized to be appro-
priated by section 301(4) for Operation and Maintenance, 
Air Force, is hereby reduced by $2,100,000. 
SEC. 217. COMPOSITE SAIL TEST ARTICLES. 
(a) AVAILABILITY OF FUNDS.—The total amount au-
thorized to be appropriated under section 201(2) for Vir-
ginia-class submarine development, may be increased by 
$2,000,000 for the development and fabrication of composite 
sail test articles for incorporation into designs for future 
submarines. 
(b) OFFSET.—The amount authorized to be appro-
priated under section 104 may be reduced by $2,000,000, 
to be derived from the amount provided for Special Oper-
ations Forces operational enhancements. 
SEC. 218. PORTABLE MOBILE EMERGENCY BROADBAND SYS-
TEMS. 
(a) AVAILABILITY OF FUNDS.—(1) Of the amount au-
thorized to be appropriated by section 201(1) for research, 
development, test, and evaluation for the Army, $2,000,000 
may be available for the development of Portable Mobile 
Emergency Broadband Systems (MEBS). 
(2) The total amount authorized to be appropriated 
under section 201(1) is hereby increased by $2,000,000. 
(b) OFFSET.—The amount authorized to be appro-
priated by section 104 for procurement, Defense-wide ac-
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Element 602303A (Missile Technology) to Program Element 
603772A (Advanced Tactical Computer Science and Sensor 
Technology). 
SEC. 221. AMOUNT FOR NETWORK CENTRIC OPERATIONS. 
Of the amount authorized to be appropriated under 
section 201(1) for historically Black colleges and univer-
sities, $1,000,000 may be used for funding the initiation 
of a capability in such institutions to support the network 
centric operations of the Department of Defense. 
Subtitle C—Ballistic Missile 
Defense 
SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPA-
BILITIES. 
Funds authorized to be appropriated under section 
201(4) for the Missile Defense Agency may be used for the 
development and fielding of an initial set of ballistic missile 
defense capabilities. 
SEC. 222. REPEAL OF REQUIREMENT FOR CERTAIN PRO-
GRAM ELEMENTS FOR MISSILE DEFENSE 
AGENCY ACTIVITIES. 
Section 223 of title 10, United States Code is amend-
ed—
(1) by striking subsection (a); 
(2) by redesignating subsections (b) and (c) as 
subsections (a) and (b), respectively; and
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(3) in subsection (b), as so redesignated, by strik-
ing ‘‘specified in subsection (a)’’. 
SEC. 223. OVERSIGHT OF PROCUREMENT, PERFORMANCE 
CRITERIA, AND OPERATIONAL TEST PLANS 
FOR 
BALLISTIC 
MISSILE 
DEFENSE 
PRO-
GRAMS. 
(a) PROCUREMENT.—(1) Chapter 9 of title 10, United 
States Code, is amended by inserting after section 223 the 
following new section: 
‘‘§ 223a. Ballistic missile defense programs: procure-
ment 
‘‘(a) BUDGET JUSTIFICATION MATERIALS.—(1) In the 
budget justification materials submitted to Congress in sup-
port of the Department of Defense budget for any fiscal year 
(as submitted with the budget of the President under section 
1105(a) of title 31), the Secretary of Defense shall specify, 
for each ballistic missile defense system element, the fol-
lowing information: 
‘‘(A) For each ballistic missile defense element 
for which the Missile Defense Agency in engaged in 
planning for production and initial fielding, the fol-
lowing information: 
‘‘(i) The production rate capabilities of the 
production facilities planned to be used.
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‘‘(ii) The potential date of availability of 
the element for initial fielding. 
‘‘(iii) The expected costs of the initial pro-
duction and fielding planned for the element. 
‘‘(iv) The estimated date on which the ad-
ministration of the acquisition of the element is 
to be transferred to the Secretary of a military 
department. 
‘‘(B) The performance criteria prescribed under 
subsection (b). 
‘‘(2) The information provided under paragraph (1) 
shall be submitted in an unclassified form, but may include 
a classified annex as necessary. 
‘‘(b) PERFORMANCE CRITERIA.—(1) The Director of 
the Missile Defense Agency shall prescribe measurable per-
formance criteria for all planned development phases 
(known as ‘‘blocks’’) of the ballistic missile defense system 
and each of its elements. The performance criteria may be 
updated as necessary while the program and any follow-
on program remain in development. 
‘‘(2) The performance criteria prescribed for a block 
under paragraph (1) shall include one or more criteria that 
specifically describe, in relation to that block, the intended 
effectiveness against foreign adversary capabilities, includ-
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ing a description of countermeasures, for which the system 
is being designed as a defense. 
‘‘(c) OPERATIONAL TEST PLANS.—The Director of 
Operational Test and Evaluation, in consultation with the 
Director of the Missile Defense Agency, shall establish and 
approve for each ballistic missile defense system element ap-
propriate plans and schedules for operational testing. The 
test plans shall include an estimate of when successful per-
formance of the element in accordance with each perform-
ance criterion is to be verified by operational testing. The 
test plans for a program may be updated as necessary while 
the program and any follow-on program remain in develop-
ment. 
‘‘(d) ANNUAL TESTING PROGRESS.— The annual re-
port of the Director of Operational Test and Evaluation 
required under section 232(h) of the National Defense Au-
thorization Act for Fiscal Year 2002 (Public Law 107–107; 
10 U.S.C. 2431 note) shall include the following: 
‘‘(1) The test plans established under subsection 
(c); and 
‘‘(2) An assessment of the progress being made 
toward verifying through operational testing the per-
formance of the system under a missile defense system 
program as measured by the performance criteria 
prescribed for the program under subsection (b).
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‘‘(e) FUTURE-YEARS DEFENSE PROGRAM.—The fu-
ture-years defense program submitted to Congress each year 
under section 221 of this title shall include an estimate of 
the amount necessary for procurement for each ballistic 
missile defense system element, together with a discussion 
of the underlying factors and reasoning justifying the esti-
mate.’’. 
(2) The table of contents at the beginning of such chap-
ter 9 is amended by inserting after the item relating to sec-
tion 223 the following new item:
‘‘223a. Ballistic missile defense programs: procurement.’’.
(b) EXCEPTION FOR FIRST ASSESSMENT.—The first 
assessment required under subsection (d) of section 223a of 
title 10, United States Code (as added by subsection (a)), 
shall be an interim assessment submitted to the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives not later than July 31, 2004. 
SEC. 224. RENEWAL OF AUTHORITY TO ASSIST LOCAL COM-
MUNITIES IMPACTED BY BALLISTIC MISSILE 
DEFENSE SYSTEM TEST BED. 
Section 235(b) of the National Defense Authorization 
Act for Fiscal Year 2002 (Public Law 107–107; 115 Stat. 
1041) is amended—
(1) in paragraph (1), by inserting ‘‘, 2004, 2005, 
or 2006’’ after ‘‘for fiscal year 2002’’; and
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(2) by adding at the end the following new para-
graph: 
‘‘(3) In the budget justification materials for the De-
partment of Defense that the Secretary of Defense submits 
to Congress in connection with the submission of the budget 
for fiscal year 2004, the budget for fiscal year 2005, and 
the budget for fiscal year 2006 under section 1105(a) of title 
31, United States Code, the Secretary shall include a de-
scription of the community assistance projects that are to 
be supported in such fiscal year under this subsection and 
an estimate of the total cost of each such project.’’. 
SEC. 225. REQUIREMENT FOR SPECIFIC AUTHORIZATION OF 
CONGRESS FOR DESIGN, DEVELOPMENT, OR 
DEPLOYMENT OF HIT-TO-KILL BALLISTIC MIS-
SILE INTERCEPTORS. 
(a) No amount authorized to be appropriated by this 
Act for research, development, test, and evaluation, Defense-
wide, and available for Ballistic Missile Defense System 
Interceptors (PE 060886C), may be obligated or expended 
to design, develop, or deploy hit-to-kill interceptors or other 
weapons for placement in space unless specifically author-
ized by Congress. 
(b) Of the amounts authorized to be appropriated for 
fiscal year 2004 for Ballistic Missile Defense System Inter-
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ceptors, $14,000,000 is available for research and concept 
definition for the space based test bed. 
SEC. 226. PROHIBITION ON USE OF FUNDS FOR NUCLEAR 
ARMED INTERCEPTORS IN MISSILE DEFENSE 
SYSTEMS. 
No funds authorized to be appropriated for the Depart-
ment of Defense by this Act may be obligated or expended 
for research, development, test, and evaluation, procure-
ment, or deployment of nuclear armed interceptors in a 
missile defense system. 
Subtitle D—Other Matters 
SEC. 231. GLOBAL RESEARCH WATCH PROGRAM IN THE OF-
FICE OF THE DIRECTOR OF DEFENSE RE-
SEARCH AND ENGINEERING. 
Section 139a of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(c)(1) The Director shall carry out a Global Research 
Watch program. 
‘‘(2) The goals of the program are as follows: 
‘‘(A) To monitor and analyze the basic and ap-
plied research activities and capabilities of foreign 
nations in areas of military interest, including allies 
and competitors. 
‘‘(B) To provide standards for comparison and 
comparative analysis of research capabilities of for-
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eign nations in relation to the research capabilities of 
the United States. 
‘‘(C) To assist Congress and Department of De-
fense officials in making investment decisions for re-
search in technical areas where the United States 
may not be the global leader. 
‘‘(D) To identify areas where significant oppor-
tunities for cooperative research may exist. 
‘‘(E) To coordinate and promote the inter-
national cooperative research and analysis activities 
of each of the armed forces and Defense Agencies. 
‘‘(F) To establish and maintain an electronic 
database on international research capabilities, com-
parative assessments of capabilities, cooperative re-
search opportunities, and ongoing cooperative pro-
grams. 
‘‘(3) The program shall be focused on research and 
technologies at a technical maturity level equivalent to De-
partment of Defense basic and applied research programs. 
‘‘(4) The Director shall coordinate the program with 
the international cooperation and analysis activities of the 
military departments and Defense Agencies. 
‘‘(5) Information in electronic databases of the Global 
Research Watch program shall be maintained in unclassi-
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fied form and, as determined necessary by the Director, in 
classified form in such databases.’’. 
SEC. 232. DEFENSE ADVANCED RESEARCH PROJECTS AGEN-
CY BIENNIAL STRATEGIC PLAN. 
(a) REQUIREMENT FOR PLAN.—(1) Subchapter II of 
chapter 8 of title 10, United States Code, is amended by 
inserting after section 201 the following new section: 
‘‘§ 202. Defense Advanced Research Projects Agency: 
biennial strategic plan 
‘‘(a) REQUIREMENT
FOR
STRATEGIC
PLAN.—(1) 
Every other year, and in time for submission to Congress 
under subsection (b), the Director of the Defense Advanced 
Research Projects Agency shall prepare a strategic plan for 
the activities of the agency. 
‘‘(2) The strategic plan shall include the following mat-
ters: 
‘‘(A) The long-term strategic goals of the agency. 
‘‘(B) Identification of the research programs that 
support—
‘‘(i) achievement of the strategic goals; and 
‘‘(ii) exploitation of opportunities that hold 
the potential for yielding significant military 
benefits.
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‘‘(C) The connection of agency activities and 
programs to activities and missions of the armed 
forces. 
‘‘(D) A technology transition strategy for agency 
programs. 
‘‘(E) An assessment of agency policies on the 
management, organization, and personnel of the agen-
cy. 
‘‘(b) SUBMISSION OF PLAN TO CONGRESS.—The Sec-
retary of Defense shall submit the latest biennial strategic 
plan of the Defense Advanced Research Projects Agency to 
Congress at the same time that the President submits the 
budget for an even-numbered year to Congress under section 
1105(a) of title 31. 
‘‘(c) REVIEW PANEL.—(1) The Secretary of Defense 
shall establish a panel to advise the Director of the Defense 
Research Projects Agency on the preparation, content, and 
execution of the biennial strategic plan. 
‘‘(2) The panel shall be composed of members ap-
pointed by the Secretary of Defense from among persons 
who are experienced and knowledgeable in research activi-
ties of potential military value, as follows: 
‘‘(A) The principal staff assistant to the Director 
of the Defense Advanced Research Projects Agency, 
who shall serve as chairman of the panel.
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‘‘(B) Three senior officers of the armed forces. 
‘‘(C) Three persons who are representative of—
‘‘(i) private industry; 
‘‘(ii) academia; and 
‘‘(iii) federally funded research and develop-
ment centers or similar nongovernmental organi-
zations. 
‘‘(3) The members appointed under subparagraphs (B) 
and (C) of paragraph (2) shall be appointed for a term 
of two years. The members may be reappointed, except that 
every two years the Secretary of Defense shall appoint a 
replacement for at least one of the members appointed under 
such subparagraph (B) and a replacement for at least one 
of the members appointed under such subparagraph (C). 
Any vacancy in the membership of the panel shall be filled 
in the same manner as the original appointment. 
‘‘(4) The panel shall meet at the call of the Chairman. 
‘‘(5) The panel shall provide the Director of the Defense 
Advanced Research Projects Agency with the following sup-
port: 
‘‘(A) Objective advice on—
‘‘(i) the strategic plan; and 
‘‘(ii) the appropriate mix of agency sup-
ported research activities in technologies, includ-
ing system-level technologies, to address new and
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evolving national security requirements and in-
terests, and to fulfill the technology development 
mission of the agency. 
‘‘(B) An assessment of the extent to which the 
agency is successful in—
‘‘(i) supporting missions of the armed 
forces; and 
‘‘(ii) achieving the transition of technologies 
into acquisition programs of the military de-
partments. 
‘‘(C) An assessment of agency policies on the 
management, organization, and personnel of the agen-
cy, together with recommended modifications of such 
policies that could improve the mission performance 
of the agency. 
‘‘(D) Final approval of the biennial strategic 
plan. 
‘‘(6) Members of the panel who are not officers or em-
ployees of the United States shall serve without pay by rea-
son of their work on the panel, and their services as mem-
bers may be accepted without regard to section 1342 of title 
31. However, such members shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of chapter
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57 of title 5 while away from their homes or regular places 
of business in the performance of services for the panel. 
‘‘(7) The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the panel.’’. 
(2) The table of sections at the beginning of such sub-
chapter is amended by inserting after the item relating to 
section 201 the following new item:
‘‘202. Defense Advanced Research Projects Agency: biennial strategic plan.’’.
(b) INITIAL APPOINTMENTS TO REVIEW PANEL.—The 
Secretary of Defense shall appoint the panel under sub-
section (c) of section 202 of title 10, United States Code 
(as added by subsection (a)), not later than 60 days after 
the date of the enactment of this Act. 
SEC. 233. ENHANCEMENT OF AUTHORITY OF SECRETARY OF 
DEFENSE TO SUPPORT SCIENCE, MATHE-
MATICS, ENGINEERING, AND TECHNOLOGY 
EDUCATION. 
Section 2192 of title 10, United States Code, is amend-
ed—
(1) by redesignating subsection (b) as subsection 
(c); and 
(2) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b)(1) In furtherance of the authority of the Secretary 
of Defense under this chapter or any other provision of law 
to support educational programs in science, mathematics,
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engineering, and technology, the Secretary of Defense 
may—
‘‘(A) enter into contracts and cooperative agree-
ments with eligible persons; 
‘‘(B) make grants of financial assistance to eligi-
ble persons; 
‘‘(C) provide cash awards and other items to eli-
gible persons; and 
‘‘(D) accept voluntary services from eligible per-
sons. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘eligible person’ includes a depart-
ment or agency of the Federal Government, a State, 
a political subdivision of a State, an individual, and 
a not-for-profit or other organization in the private 
sector. 
‘‘(B) The term ‘State’ means any State of the 
United States, the District of Columbia, the Common-
wealth of Puerto Rico, Guam, the United States Vir-
gin Islands, the Commonwealth of the Northern Mar-
iana Islands, American Samoa, and any other terri-
tory or possession of the United States.’’.
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SEC. 234. DEPARTMENT OF DEFENSE HIGH-SPEED NET-
WORK-CENTRIC AND BANDWIDTH EXPANSION 
PROGRAM. 
(a) IN GENERAL.—The Secretary of Defense shall 
carry out a program of research and development to pro-
mote greater bandwidth capability with high-speed net-
work-centric communications. 
(b) PURPOSES OF ACTIVITIES.—The purposes of ac-
tivities required by subsection (a) are as follows: 
(1) To facilitate the acceleration of the network-
centric operational capabilities of the Armed Forces, 
including more extensive utilization of unmanned ve-
hicles, satellite communications, and sensors, through 
the promotion of research and development, and the 
focused coordination of programs, to fully achieve 
high-bandwidth connectivity to military assets. 
(2) To provide for the development of equipment 
and technologies for military high-bandwidth net-
work-centric communications facilities. 
(c) RESEARCH AND DEVELOPMENT PROGRAM.—(1) In 
carrying out the program of research and development re-
quired by subsection (a)(1), the Secretary shall—
(A) identify areas of advanced wireless commu-
nications in which research and development, or the 
leveraging of emerging technologies, has significant 
potential to improve the performance, efficiency, cost,
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and flexibility of advanced network-centric commu-
nications systems; 
(B) develop a coordinated plan for research and 
development on—
(i) improved spectrum access through spec-
trum-efficient network-centric communications 
systems; 
(ii) networks, including complex ad hoc 
adaptive network structures; 
(iii) end user devices, including efficient re-
ceivers and transmitter devices; 
(iv) applications, including robust security 
and encryption; and 
(v) any other matters that the Secretary 
considers appropriate for purposes of this sec-
tion; 
(C) ensure joint research and development, and 
promote joint systems acquisition and deployment, 
among the various services and Defense Agencies, in-
cluding the development of common cross-service tech-
nology requirements and doctrines, so as to enhance 
interoperability among the various services and De-
fense Agencies; 
(D) conduct joint experimentation among the 
various Armed Forces, and coordinate with the Joint
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Forces Command, on experimentation to support net-
work-centric warfare capabilities to small units of the 
Armed Forces; and 
(E) develop, to the extent practicable and in con-
sultation with other Federal entities and private in-
dustry, cooperative research and development efforts. 
(2) The Secretary shall carry out the program of re-
search and development through the Director of Defense Re-
search and Engineering, in full coordination with the Sec-
retaries of the military departments, the heads of appro-
priate Defense Agencies, and the heads of other appropriate 
elements of the Department of Defense. 
(d) REPORT.—(1) The Secretary shall, acting through 
the Director of Defense Research and Engineering, submit 
to the congressional defense committees a report on the ac-
tivities undertaken under this section as of the date of such 
report. The report shall be submitted together with the budg-
et justification materials submitted to Congress in support 
of the Department of Defense budget for fiscal year 2005 
(as submitted with the budget of the President under section 
1105(a) of title 31, United States Code). 
(2) The report under paragraph (1) shall include—
(A) a description of the research and develop-
ment activities carried out under subsection (a), in-
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cluding 
particular 
activities 
under 
subsection 
(c)(1)(B); 
(B) an assessment of current and proposed fund-
ing for the activities set forth in each of clauses (i) 
through (v) of subsection (c)(1)(B), including the ade-
quacy of such funding to support such activities; 
(C) an assessment of the extent and success of 
any joint research and development activities under 
subsection (c)(1)(C); 
(D) a description of any joint experimentation 
activities under subsection (c)(1)(D); 
(E) an assessment of the effects of limited com-
munications bandwidth, and of limited access to elec-
tromagnetic spectrum, on recent military operations; 
and 
(F) such recommendations for additional activi-
ties under this section as the Secretary considers ap-
propriate to meet the purposes of this section. 
SEC. 235. DEPARTMENT OF DEFENSE STRATEGY FOR MAN-
AGEMENT OF ELECTROMAGNETIC SPECTRUM. 
(a) IN GENERAL.—The Secretary of Defense shall—
(1) in accordance with subsection (b), develop a 
strategy for the Department of Defense for the man-
agement of the electromagnetic spectrum to improve
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spectrum access and high-bandwidth connectivity to 
military assets; and 
(2) in accordance with subsection (c), commu-
nicate with civilian departments and agencies of the 
Federal Government in the development of the strat-
egy identified in paragraph (1). 
(b) STRATEGY FOR DEPARTMENT OF DEFENSE SPEC-
TRUM MANAGEMENT.—(1) Not later than September 1, 
2004, the Board shall develop a strategy for the Department 
of Defense for the management of the electromagnetic spec-
trum in order to ensure the development and use of spec-
trum-efficient technologies to facilitate the availability of 
adequate spectrum for network-centric warfare. The strat-
egy shall include specific timelines, metrics, plans for im-
plementation, including the implementation of technologies 
for the efficient use of spectrum, and proposals for program 
funding. 
(2) In developing the strategy, the Board shall consider 
and take into account the research and development pro-
gram carried out under section 234. 
(3) The Board shall assist in updating the strategy de-
veloped under paragraph (1) on a biennial basis to address 
changes in circumstances. 
(4) The Board shall communicate with other depart-
ments and agencies of the Federal Government in the devel-
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opment of the strategy described in subsection (a)(1), in-
cluding representatives of the military departments, the 
Federal Communications Commission, the National Tele-
communications and Information Administration, the De-
partment of Homeland Security, the Federal Aviation Ad-
ministration, and other appropriate departments and agen-
cies of the Federal Government. 
(c) BOARD DEFINED.—In this section, the term 
‘‘Board’’ means the board of senior acquisition officials as 
defined in section 822. 
SEC. 236. AMOUNT FOR COLLABORATIVE INFORMATION 
WARFARE NETWORK. 
(a) AVAILABILITY OF FUNDS.—(1) Of the amount au-
thorized to be appropriated by section 201(2), for research 
and development, Navy, $8,000,000 may be available for 
the Collaborative Information Warfare Network. 
(2) The total amount authorized to be appropriated 
under section 201(2) is hereby increased by $8,000,000. 
(b) OFFSET.—Of the amount authorized to be appro-
priated by section 301(4) for operation and maintenance, 
Air Force, the amount is hereby reduced by $8,000,000. 
SEC. 237. COPRODUCTION OF ARROW BALLISTIC MISSILE 
DEFENSE SYSTEM. 
Of the total amount authorized to be appropriated 
under section 201 for ballistic missile defense, $115,000,000
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may be available for coproduction of the Arrow ballistic 
missile defense system. 
TITLE III—OPERATION AND 
MAINTENANCE 
Subtitle A—Authorization of 
Appropriations 
SEC. 301. OPERATION AND MAINTENANCE FUNDING. 
Funds are hereby authorized to be appropriated for fis-
cal year 2004 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for ex-
penses, not otherwise provided for, for operation and main-
tenance, in amounts as follows: 
(1) For the Army, $24,668,004,000. 
(2) For the Navy, $28,051,390,000. 
(3) For the Marine Corps, $3,416,356,000. 
(4) For the Air Force, $26,975,231,000. 
(5) For Defense-wide activities, $15,739,047,000. 
(6) For the Army Reserve, $1,952,009,000. 
(7) For the Naval Reserve, $1,170,421,000. 
(8) For the Marine Corps Reserve, $173,452,000. 
(9) For the Air Force Reserve, $2,178,688,000. 
(10) 
For 
the 
Army 
National 
Guard, 
$4,227,331,000. 
(11) 
For 
the 
Air 
National 
Guard, 
$4,405,646,000.
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activities and agencies of the Department of Defense for 
providing capital for working capital and revolving funds 
in amounts as follows: 
(1) For the Defense Working Capital Funds, 
$1,661,307,000. 
(2) For the National Defense Sealift Fund, 
$1,062,762,000. 
SEC. 303. ARMED FORCES RETIREMENT HOME. 
There is hereby authorized to be appropriated for fiscal 
year 2004 from the Armed Forces Retirement Home Trust 
Fund the sum of $65,279,000 for the operation of the Armed 
Forces Retirement Home, including the Armed Forces Re-
tirement Home—Washington and the Armed Forces Retire-
ment Home—Gulfport. 
Subtitle B—Program Requirements, 
Restrictions, and Limitations 
SEC. 311. EMERGENCY AND MORALE COMMUNICATIONS 
PROGRAMS. 
(a) ARMED FORCES EMERGENCY SERVICES.—Of the 
amount authorized to be appropriated by section 301(5) for 
operation and maintenance for Defense-wide activities, 
$5,000,000 shall be made available to the American Red 
Cross to fund the Armed Forces Emergency Services. 
(b) DEPARTMENT
OF
DEFENSE
MORALE
TELE-
COMMUNICATIONS PROGRAM.—(1) As soon as possible after
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the date of enactment of this Act, the Secretary of Defense 
shall establish and carry out a program to provide, wher-
ever practicable, prepaid phone cards, or an equivalent tele-
communications benefit which includes access to telephone 
service, to members of the Armed Forces stationed outside 
the United States who are directly supporting military op-
erations in Iraq or Afghanistan (as determined by the Sec-
retary) to enable them to make telephone calls to family 
and friends in the United States without cost to the mem-
ber. 
(2) The value of the benefit provided by paragraph (1) 
shall not exceed $40 per month per person. 
(3) The program established by paragraph (1) shall 
terminate on September 30, 2004. 
(4) In carrying out the program under this subsection, 
the Secretary shall maximize the use of existing Department 
of Defense telecommunications programs and capabilities, 
private entities free or reduced-cost services, and programs 
to enhance morale and welfare. In addition, and notwith-
standing any limitation on the expenditure or obligation 
of appropriated amounts, the Secretary may use available 
funds appropriated to or for the use of the Department of 
Defense that are not otherwise obligated or expended to 
carry out the program.
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(5) The Secretary may accept gifts and donations in 
order to defray the costs of the program. Such gifts and 
donations may be accepted from foreign governments; foun-
dations or other charitable organizations, including those 
organized or operating under the laws of a foreign country; 
and any source in the private sector of the United States 
or a foreign country. 
(6) The Secretary shall work with telecommunications 
providers to facilitate the deployment of additional tele-
phones for use in calling the United States under the pro-
gram as quickly as practicable, consistent with the timely 
provision of telecommunications benefits of the program, the 
Secretary should carry out this subsection in a manner that 
allows for competition in the provision of such benefits. 
(7) The Secretary shall not take any action under this 
subsection that would compromise the military objectives or 
mission of the Department of Defense. 
SEC. 312. COMMERCIAL IMAGERY INDUSTRIAL BASE. 
(a) LIMITATION.—Not less than ninety percent of the 
total amount authorized to be appropriated under this title 
for the acquisition, processing, and licensing of commercial 
imagery, including amounts authorized to be appropriated 
under this title for experimentation related to commercial 
imagery, shall be used for the following purposes:
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(1) To acquire space-based imagery from com-
mercial sources. 
(2) To support the development of next-genera-
tion commercial imagery satellites. 
(b) REPORT.—(1) Not later than March 1, 2004, the 
Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representa-
tives a report on the actions taken and to be taken by the 
Secretary to implement the President’s commercial remote 
sensing policy. The Secretary shall consult with the Director 
of Central Intelligence in preparing the report. 
(2) The report under paragraph (1) shall include an 
assessment of the following matters: 
(A) The sufficiency of the policy, the funding for 
fiscal year 2004 for the procurement of imagery from 
commercial sources, and the funding planned in the 
future-years defense program for the procurement of 
imagery from commercial sources to sustain a viable 
commercial imagery industrial base in the United 
States. 
(B) The extent to which the United States policy 
and programs relating to the procurement of imagery 
from commercial sources are sufficient to ensure that 
imagery is available to the Department of Defense 
from United States commercial firms to timely meet
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the needs of the Department of Defense for the im-
agery. 
SEC. 313. INFORMATION OPERATIONS SUSTAINMENT FOR 
LAND FORCES READINESS OF ARMY RE-
SERVE. 
(a) INCREASE
IN AUTHORIZATION
OF APPROPRIA-
TIONS FOR ARMY RESERVE.—The amount authorized to be 
appropriated by section 301(6) for operation and mainte-
nance for the Army Reserve is hereby increased by 
$3,000,000. 
(b) AVAILABILITY
FOR INFORMATION OPERATIONS 
SUSTAINMENT.—(1) Of the amount authorized to be appro-
priated by section 301(6) for operation and maintenance 
for the Army Reserve, as increased by subsection (a), 
$3,000,000 may be available for Information Operations 
(Account #19640) for Land Forces Readiness–Information 
Operations Sustainment. 
(2) The amount available under paragraph (1) for the 
purpose specified in that paragraph is in addition to any 
other amounts available under this Act for that purpose. 
(c) OFFSET.—The amount authorized to be appro-
priated by section 301(4) for operation and maintenance 
for the Air Force is hereby reduced by $3,000,000.
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SEC. 314. SUBMITTAL OF SURVEY ON PERCHLORATE CON-
TAMINATION AT DEPARTMENT OF DEFENSE 
SITES. 
(a) SUBMITTAL OF PERCHLORATE SURVEY.—Not later 
than 30 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the appropriate 
committees of Congress the 2001 survey to identify the po-
tential for perchlorate contamination at all active and 
closed Department of Defense sites that was prepared by 
the United States Air Force Research Laboratory, Aero-
space Expeditionary Force Technologies Division, Tyndall 
Air Force Base and Applied Research Associates. 
(b) APPROPRIATE COMMITTEES OF CONGRESS DE-
FINED.—In this section, the term ‘‘appropriate committees 
of Congress’’ means—
(1) the Committee on Environment and Public 
Works of the Senate; and 
(2) the Committee on Energy and Commerce of 
the House of Representatives. 
Subtitle C—Environmental 
Provisions 
SEC. 321. GENERAL DEFINITIONS APPLICABLE TO FACILI-
TIES AND OPERATIONS. 
(a) GENERAL DEFINITIONS APPLICABLE TO FACILI-
TIES AND OPERATIONS.—Section 101 of title 10, United 
States Code, is amended—
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(1) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(2) by inserting after subsection (d) the following 
new subsection (e): 
‘‘(e) FACILITIES
AND OPERATIONS.—The following 
definitions relating to facilities and operations shall apply 
in this title: 
‘‘(1)(A) The term ‘military munitions’ means all 
ammunition products and components produced for 
or used by the armed forces for national defense and 
security, including ammunition products or compo-
nents under the control of the Department of Defense, 
the Coast Guard, the Department of Energy, and the 
National Guard. The term includes confined gaseous, 
liquid, and solid propellants, explosives, pyrotechnics, 
chemical and riot control agents, smokes, and incen-
diaries, including bulk explosives and chemical war-
fare agents, chemical munitions, rockets, guided and 
ballistic missiles, bombs, warheads, mortar rounds, 
artillery ammunition, small arms ammunition, gre-
nades, mines, torpedoes, depth charges, cluster muni-
tions and dispensers, demolition charges, and devices 
and components thereof. 
‘‘(B) The term does not include wholly inert 
items, improvised explosive devices, and nuclear
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weapons, nuclear devices, and nuclear components, 
except that the term does include nonnuclear compo-
nents of nuclear devices that are managed under the 
nuclear weapons program of the Department of En-
ergy after all required sanitization operations under 
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.) have been completed. 
‘‘(2) The term ‘operational range’ means a range 
under the jurisdiction, custody, or control of the Sec-
retary concerned that—
‘‘(A) is used for range activities; or 
‘‘(B) is not currently used for range activi-
ties, but is still considered by the Secretary con-
cerned to be a range and has not been put to a 
new use that is incompatible with range activi-
ties. 
‘‘(3) The term ‘range’ means a designated land 
or water area that is set aside, managed, and used for 
range activities. The term includes firing lines and 
positions, maneuver areas, firing lanes, test pads, det-
onation pads, impact areas, electronic scoring sites, 
and buffer zones with restricted access and exclu-
sionary areas. The term also includes airspace areas 
designated for military use according to regulations 
and procedures established by the Federal Aviation
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Administration such as special use airspace areas, 
military training routes, and other associated air-
space. 
‘‘(4) The term ‘range activities’ means—
‘‘(A) research, development, testing, and 
evaluation of military munitions, other ord-
nance, and weapons systems; and 
‘‘(B) the training of military personnel in 
the use and handling of military munitions, 
other ordnance, and weapons systems. 
‘‘(5) The term ‘unexploded ordnance’ means 
military munitions that—
‘‘(A) have been primed, fused, armed, or 
otherwise prepared for action; 
‘‘(B) have been fired, dropped, launched, 
projected, or placed in such a manner as to con-
stitute a hazard to operations, installations, per-
sonnel, or material; and 
‘‘(C) remain unexploded either by malfunc-
tion, design, or any other cause.’’. 
(b) CONFORMING AMENDMENTS.—Section 2710(e) of 
such title is amended by striking paragraphs (3), (5), and 
(9) and redesignating paragraphs (4), (6), (7), (8), and 
(10) as paragraphs (3), (4), (5), (6), and (7), respectively.
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SEC. 322. MILITARY READINESS AND CONSERVATION OF 
PROTECTED SPECIES. 
(a) IN GENERAL.—Part III of subtitle A of title 10, 
United States Code, is amended by inserting after chapter 
101 the following new chapter: 
‘‘CHAPTER 101A—READINESS AND RANGE 
PRESERVATION
‘‘Sec. 
‘‘2020. Military readiness and conservation of protected species.
‘‘§ 2020. Military readiness and conservation of pro-
tected species 
‘‘(a) LIMITATION ON DESIGNATION OF CRITICAL HABI-
TAT.—The Secretary of the Interior may not designate as 
critical habitat any lands or other geographical areas 
owned or controlled by the Department of Defense, or des-
ignated for its use, that are subject to an integrated natural 
resources management plan prepared under section 101 of 
the Sikes Act (16 U.S.C. 670a), if the Secretary of the Inte-
rior determines in writing that—
‘‘(1) the management activities identified in the 
plan will effectively conserve the threatened species 
and endangered species within the lands or areas cov-
ered by the plan; and 
‘‘(2) the plan provides assurances that adequate 
funding will be provided for such management activi-
ties.
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‘‘(b) CONSTRUCTION WITH CONSULTATION REQUIRE-
MENT.—Nothing in subsection (a) may be construed to af-
fect the requirement to consult under section 7(a)(2) of the 
Endangered Species Act (16 U.S.C. 1536(a)(2)) with re-
spect to an agency action (as that term is defined in that 
section).’’. 
(b) CLERICAL AMENDMENTS.—The table of chapters at 
the beginning of subtitle A of title 10, United States Code, 
and at the beginning of part III of such subtitle, are each 
amended by inserting after the item relating to chapter 101 
the following new item:
‘‘101A. Readiness and Range Preservation ................................. 2020’’.
SEC. 323. ARCTIC AND WESTERN PACIFIC ENVIRONMENTAL 
TECHNOLOGY COOPERATION PROGRAM. 
(a) IN GENERAL.—Subchapter II of chapter 138 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2350m. Arctic and Western Pacific Environmental 
Technology Cooperation Program 
‘‘(a) AUTHORITY TO CONDUCT PROGRAM.—The Sec-
retary of Defense may, with the concurrence of the Secretary 
of State, conduct on a cooperative basis with countries lo-
cated in the Arctic and Western Pacific regions a program 
of environmental activities provided for in subsection (b) 
in such regions. The program shall be known as the ‘Arctic
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and Western Pacific Environmental Technology Coopera-
tion Program’. 
‘‘(b) PROGRAM ACTIVITIES.—(1) Except as provided 
in paragraph (3), activities under the program under sub-
section (a) may include cooperation and assistance among 
elements of the Department of Defense and military depart-
ments or relevant agencies of other countries on activities 
that contribute to the demonstration of environmental tech-
nology. 
‘‘(2) Activities under the program shall be consistent 
with the requirements of the Cooperative Threat Reduction 
program. 
‘‘(3) Activities under the program may not include ac-
tivities for purposes prohibited under section 1403 of the 
National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105–85; 111 Stat. 1960). 
‘‘(c) LIMITATION ON FUNDING FOR PROJECTS OTHER 
THAN RADIOLOGICAL PROJECTS.—Not more than 10 per-
cent of the amount made available for the program under 
subsection (a) in any fiscal year may be available for 
projects under the program other than projects on radio-
logical matters. 
‘‘(d) ANNUAL REPORT.—(1) Not later than March 1, 
2004, and each year thereafter, the Secretary of Defense 
shall submit to Congress a report on activities under the
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program under subsection (a) during the preceding fiscal 
year. 
‘‘(2) The report on the program for a fiscal year under 
paragraph (1) shall include the following: 
‘‘(A) A description of the activities carried out 
under the program during that fiscal year, including 
a separate description of each project under the pro-
gram. 
‘‘(B) A statement of the amounts obligated and 
expended for the program during that fiscal year, set 
forth in aggregate and by project. 
‘‘(C) A statement of the life cycle costs of each 
project, including the life cycle costs of such project as 
of the end of that fiscal year and an estimate of the 
total life cycle costs of such project upon completion 
of such project. 
‘‘(D) A statement of the participants in the ac-
tivities carried out under the program during that 
fiscal year, including the elements of the Department 
of Defense and the military departments or agencies 
of other countries. 
‘‘(E) A description of the contributions of the 
military departments and agencies of other countries 
to the activities carried out under the program during
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that fiscal year, including any financial or other con-
tributions to such activities.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of that subchapter is amended by adding at 
the end the following new item:
‘‘2350m. Arctic and Western Pacific Environmental Technology Cooperation Pro-
gram.’’.
SEC. 324. PARTICIPATION IN WETLAND MITIGATION BANKS 
IN CONNECTION WITH MILITARY CONSTRUC-
TION PROJECTS. 
(a) AUTHORITY TO PARTICIPATE.—Chapter 159 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2697. Participation in wetland mitigation banks 
‘‘(a) AUTHORITY TO PARTICIPATE.—In the case of a 
military construction project that results, or may result, in 
the destruction of or impacts to wetlands, the Secretary con-
cerned may make one or more payments to a wetland miti-
gation banking program or consolidated user site (also re-
ferred to as an ‘in-lieu-fee’ program) meeting the require-
ment of subsection (b) in lieu of creating a wetland on Fed-
eral property as mitigation for the project. 
‘‘(b) APPROVAL OF PROGRAM OR SITE REQUIRED.—
The Secretary concerned may make a payment to a pro-
gram or site under subsection (a) only if the program or 
site is approved in accordance with the Federal Guidance
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for the Establishment, Use, and Operation of Mitigation 
Banks or the Federal Guidance on the Use of In-Lieu-Fee 
Arrangements for Compensatory Mitigation under section 
404 of the Federal Water Pollution Control Act (33 U.S.C. 
1344) or section 10 of the Rivers and Harbors Appropria-
tions Act of 1899 (33 U.S.C. 403). 
‘‘(c) AVAILABILITY OF FUNDS.—Amounts authorized 
to be appropriated for a military construction project for 
which a payment is authorized by subsection (a) may be 
utilized for purposes of making the payment.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item:
‘‘2697. Participation in wetland mitigation banks.’’.
SEC. 325. EXTENSION OF AUTHORITY TO USE ENVIRON-
MENTAL RESTORATION ACCOUNT FUNDS FOR 
RELOCATION OF A CONTAMINATED FACILITY. 
Section 2703(c)(2) of title 10, United States Code, is 
amended by striking ‘‘September 30, 2003’’ and inserting 
‘‘September 30, 2006’’. 
SEC. 326. APPLICABILITY OF CERTAIN PROCEDURAL AND 
ADMINISTRATIVE REQUIREMENTS TO RES-
TORATION ADVISORY BOARDS. 
Section 2705(d)(2) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph:
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‘‘(C)(i) Section 10(a)(2) of the Federal Advisory Com-
mittee Act (5 U.S.C. App.), relating to publication in the 
Federal Register of notices of meetings of advisory commit-
tees, shall not apply to any meeting of a restoration advi-
sory board under this subsection, but a restoration advisory 
board shall publish timely notice of each meeting of the res-
toration advisory board in a local newspaper of general cir-
culation. 
‘‘(ii) No limitation under any provision of law or reg-
ulations on the total number of advisory committees (as 
that term is defined in section 3(2) of the Federal Advisory 
Committee Act) in existence at any one time shall operate 
to limit the number of restoration advisory boards in exist-
ence under this subsection at any one time.’’. 
SEC. 327. EXPANSION OF AUTHORITIES ON USE OF VESSELS 
STRICKEN FROM THE NAVAL VESSEL REG-
ISTER FOR EXPERIMENTAL PURPOSES. 
(a) EXPANSION OF AUTHORITIES.—Subsection (b) of 
section 7306a of title 10, United States Code, is amended 
to read as follows: 
‘‘(b) STRIPPING AND ENVIRONMENTAL REMEDIATION 
OF VESSELS.—(1) Before using a vessel for experimental 
purposes pursuant to subsection (a), the Secretary shall 
carry out such stripping of the vessel as is practicable and
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such environmental remediation of the vessel as is required 
for the use of the vessel for experimental purposes. 
‘‘(2) Material and equipment stripped from a vessel 
under paragraph (1) may be sold by the contractor or by 
a sales agent approved by the Secretary. 
‘‘(3) Amounts received as proceeds from the stripping 
of a vessel pursuant to this subsection shall be credited to 
funds available for stripping and environmental remedi-
ation of other vessels for use for experimental purposes.’’. 
(b) INCLUSION OF CERTAIN PURPOSES IN USE FOR 
EXPERIMENTAL
PURPOSES.—That section is further 
amended by adding at the end the following new subsection: 
‘‘(c) USE FOR EXPERIMENTAL PURPOSES.—For pur-
poses of this section, the term ‘use for experimental pur-
poses’, in the case of a vessel, includes use of the vessel by 
the Navy in sink exercises and as a target.’’. 
SEC. 328. TRANSFER OF VESSELS STRICKEN FROM THE 
NAVAL VESSEL REGISTER FOR USE AS ARTIFI-
CIAL REEFS. 
(a) AUTHORITY TO MAKE TRANSFER.—Chapter 633 
of title 10, United States Code, is amended by inserting 
after section 7306a the following new section:
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‘‘§ 7306b. Vessels stricken from Naval Vessel Register; 
transfer by gift or otherwise for use as ar-
tificial reefs 
‘‘(a) AUTHORITY TO MAKE TRANSFER.—Subject to 
subsection (b), the Secretary of the Navy may transfer, by 
gift or otherwise, any vessel stricken from the Naval Vessel 
Register to any State, Commonwealth, or possession of the 
United States or any municipal corporation or political 
subdivision thereof. 
‘‘(b) INAPPLICABILITY
TO CERTAIN VESSELS.—The 
authority in subsection (a) shall not apply to vessels trans-
ferable to the Maritime Administration for disposal under 
section 548 of title 40. 
‘‘(c) VESSEL TO BE USED AS ARTIFICIAL REEF.—An 
agreement for the transfer of a vessel under subsection (a) 
shall require that—
‘‘(1) the recipient use, site, construct, monitor, 
and manage the vessel only as an artificial reef in ac-
cordance with the requirements of the National Fish-
ing Enhancement Act of 1984 (title II of Public Law 
98–623; 33 U.S.C. 2101 et seq.), except that the re-
cipient may use the artificial reef to enhance diving 
opportunities if such use does not have an adverse ef-
fect on fishery resources (as that term is defined in 
section 2(14) of the Magnuson-Stevens Fishery Con-
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servation and Management Act (16 U.S.C. 1802(14)); 
and 
‘‘(2) the recipient obtain, and bear all responsi-
bility for complying with, applicable Federal, State, 
interstate, and local permits for using, siting, con-
structing, monitoring, and managing the vessel as an 
artificial reef. 
‘‘(d) PREPARATION OF VESSEL FOR USE AS ARTIFI-
CIAL REEF.—The Secretary shall ensure that the prepara-
tion of a vessel transferred under subsection (a) for use as 
an artificial reef is conducted in accordance with—
‘‘(1) the environmental best management prac-
tices developed pursuant to section 3504(b) of the Bob 
Stump National Defense Authorization Act for Fiscal 
Year 2003 (Public Law 107–314; 16 U.S.C. 1220 
note); and 
‘‘(2) any applicable environmental laws. 
‘‘(e) COST SHARING.—The Secretary may share with 
the recipient of a vessel transferred under subsection (a) any 
costs associated with transferring the vessel under that sub-
section, including costs of the preparation of the vessel 
under subsection (d). 
‘‘(f) NO LIMITATION ON NUMBER OF VESSELS TRANS-
FERABLE TO PARTICULAR RECIPIENT.—A State, Common-
wealth, or possession of the United States, or any municipal
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corporation or political subdivision thereof, may be the re-
cipient of more than one vessel transferred under subsection 
(a). 
‘‘(g) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with a transfer authorized by subsection (a) 
as the Secretary considers appropriate. 
‘‘(h) CONSTRUCTION.—Nothing in this section shall be 
construed to establish a preference for the use as artificial 
reefs of vessels stricken from the Naval Vessel Register in 
lieu of other authorized uses of such vessels, including the 
domestic scrapping of such vessels, or other disposals of such 
vessels, under this chapter or other applicable authority.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 7306a the following new item:
‘‘7306b. Vessels stricken from Naval Vessel Register; transfer by gift or otherwise 
for use as artificial reefs.’’.
SEC. 329. SALVAGE FACILITIES. 
(a) FACILITIES TO INCLUDE ENVIRONMENTAL PRO-
TECTION EQUIPMENT.—Section 7361(a) of title 10, United 
States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; 
and 
(2) by adding at the end the following new para-
graph:
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‘‘(2) For purposes of this section, salvage facilities 
shall include equipment and gear utilized to prevent, abate, 
or minimize damage to the environment arising from sal-
vage activities.’’. 
(b) CLAIMS TO INCLUDE COMPENSATION FOR ENVI-
RONMENTAL PROTECTION.—Section 7363 of such title is 
amended—
(1) by inserting ‘‘(a) AUTHORITY TO SETTLE 
CLAIMS.—’’ before ‘‘The Secretary’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) ENVIRONMENTAL
PROTECTION
SERVICES.—A 
claim for salvage services covered by subsection (a) may in-
clude, in addition to a claim for such salvage services, a 
claim for compensation for services to prevent, abate, or 
minimize damage to the environment arising from such sal-
vage services.’’. 
SEC. 330. TASK FORCE ON RESOLUTION OF CONFLICT BE-
TWEEN MILITARY TRAINING AND ENDAN-
GERED SPECIES PROTECTION AT BARRY M. 
GOLDWATER RANGE, ARIZONA. 
(a) PURPOSE.—The purpose of this section is to facili-
tate the determination of effective means of resolving the 
current conflict between the dual objectives at Barry M. 
Goldwater Range, Arizona, of the full utilization of live ord-
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nance delivery areas for military training and the protec-
tion of endangered species. 
(b) TASK FORCE.—The Secretary of Defense shall es-
tablish a task force to determine and assess various means 
of enabling full use of the live ordnance delivery areas at 
Barry M. Goldwater Range while also protecting endan-
gered species that are present at Barry M. Goldwater 
Range. 
(c) COMPOSITION.—(1) The task force established 
under subsection (b) shall be composed of the following: 
(A) The Air Force range officer, who shall serve 
as chair of the task force. 
(B) The range officer at Barry M. Goldwater 
Range. 
(C) The commander of Luke Air Force Base, Ar-
izona. 
(D) The commander of Marine Corps Air Sta-
tion, Yuma, Arizona. 
(E) The Director of the United States Fish and 
Wildlife Service. 
(F) The manager of the Cabeza Prieta National 
Wildlife Refuge, Arizona. 
(G) A representative of the Department of Game 
and Fish of the State of Arizona, as selected by the
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Secretary in consultation with the Governor of the 
State of Arizona. 
(H) A representative of a wildlife interest group 
in the State of Arizona, as selected by the Secretary 
in consultation with wildlife interest groups in the 
State of Arizona. 
(I) A representative of an environmental interest 
group (other than a wildlife interest group) in the 
State of Arizona, as selected by the Secretary in con-
sultation with environmental interest groups in the 
State of Arizona. 
(2) The chair of the task force may secure for the task 
force the services of such experts with respect to the duties 
of the task force under subsection (d) as the chair considers 
advisable to carry out such duties. 
(d) DUTIES.—The task force established under sub-
section (b) shall—
(1) assess the effects of the presence of endangered 
species on military training activities in the live ord-
nance delivery areas at Barry M. Goldwater Range 
and in any other areas of the range that are adversely 
effected by the presence of endangered species; 
(2) determine various means of addressing any 
significant adverse effects on military training activi-
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ties on Barry M. Goldwater Range that are identified 
pursuant to paragraph (1); and 
(3) determine the benefits and costs associated 
with the implementation of each means identified 
under paragraph (2). 
(e) REPORT.—Not later than February 28, 2005, the 
task force under subsection (b) shall submit to Congress a 
report on its activities under this section. The report shall 
include—
(1) a description of the assessments and deter-
minations made under subsection (d); 
(2) such recommendations for legislative and ad-
ministrative action as the task force considers appro-
priate; and 
(3) an evaluation of the utility of task force pro-
ceedings as a means of resolving conflicts between 
military training objectives and protection of endan-
gered species at other military training and testing 
ranges. 
SEC. 331. PUBLIC HEALTH ASSESSMENT OF EXPOSURE TO 
PERCHLORATE. 
(a) EPIDEMIOLOGICAL STUDY OF EXPOSURE TO PER-
CHLORATE.—
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(1) IN GENERAL.—The Secretary of Defense shall 
provide for an independent epidemiological study of 
exposure to perchlorate in drinking water. 
(2) PERFORMANCE
OF
STUDY.—The Secretary 
shall provide for the performance of the study under 
this subsection through the Centers for Disease Con-
trol, the National Institutes of Health, or another 
Federal entity with experience in environmental toxi-
cology selected by the Secretary for purposes of the 
study. 
(3) MATTERS TO BE INCLUDED IN STUDY.—In 
providing for the study under this subsection, the Sec-
retary shall require the Federal entity conducting the 
study—
(A) to assess the incidence of thyroid disease 
and measurable effects of thyroid function in re-
lation to exposure to perchlorate; 
(B) to ensure that the study is of sufficient 
scope and scale to permit the making of mean-
ingful conclusions of the measurable public 
health threat associated with exposure to per-
chlorate, especially the threat to sensitive sub-
populations; and 
(C) to study thyroid function, including 
measurements of urinary iodine and thyroid
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hormone levels, in a sufficient number of preg-
nant women, neonates, and infants exposed to 
perchlorate in drinking water and match meas-
urements of perchlorate levels in the drinking 
water of each study participant in order to per-
mit the development of meaningful conclusions 
on the public health threat to individuals ex-
posed to perchlorate. 
(4) REPORT ON STUDY.—The Secretary shall re-
quire the Federal entity conducting the study under 
this subsection to submit to the Secretary a report on 
the study not later than June 1, 2005. 
(b) REVIEW OF EFFECTS OF PERCHLORATE ON ENDO-
CRINE SYSTEM.—
(1) IN GENERAL.—The Secretary shall provide 
for an independent review of the effects of perchlorate 
on the human endocrine system. 
(2) PERFORMANCE OF REVIEW.—The Secretary 
shall provide for the performance of the review under 
this subsection through the Centers for Disease Con-
trol, the National Institutes of Health, or another ap-
propriate Federal research entity with experience in 
human endocrinology selected by the Secretary for 
purposes of the review. The Secretary shall ensure
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that the panel conducting the review is composed of 
individuals with expertise in human endocrinology. 
(3) MATTERS TO BE INCLUDED IN REVIEW.—In 
providing for the review under this subsection, the 
Secretary shall require the Federal entity conducting 
the review to assess—
(A) available data on human exposure to 
perchlorate, including clinical data and data on 
exposure of sensitive subpopulations, and the lev-
els at which health effects were observed; and 
(B) available data on other substances that 
have endocrine effects similar to perchlorate to 
which the public is frequently exposed. 
(4) REPORT ON REVIEW.—The Secretary shall 
require the Federal entity conducting the review 
under this subsection to submit to the Secretary a re-
port on the review not later than June 1, 2005.
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Subtitle D—Reimbursement 
Authorities 
SEC. 341. REIMBURSEMENT OF RESERVE COMPONENT MILI-
TARY 
PERSONNEL 
ACCOUNTS 
FOR 
PER-
SONNEL COSTS OF SPECIAL OPERATIONS RE-
SERVE COMPONENT PERSONNEL ENGAGED 
IN LANDMINES CLEARANCE. 
(a) REIMBURSEMENT.—Funds authorized to be appro-
priated under section 301 for Overseas Humanitarian, Dis-
aster, and Civic Aid programs shall be available for transfer 
to reserve component military personnel accounts in reim-
bursement of such accounts for the pay and allowances paid 
to reserve component personnel under the United States 
Special Operations Command for duty performed by such 
personnel in connection with training and other activities 
relating to the clearing of landmines for humanitarian pur-
poses. 
(b) MAXIMUM AMOUNT.—Not more than $5,000,000 
may be transferred under subsection (a). 
(c) MERGER OF TRANSFERRED FUNDS.—Funds trans-
ferred to an account under this section shall be merged with 
other sums in the account and shall be available for the 
same period and purposes as the sums with which merged.
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(d) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority under this section is in addi-
tion to the transfer authority provided under section 1001. 
SEC. 342. REIMBURSEMENT OF RESERVE COMPONENT AC-
COUNTS FOR COSTS OF INTELLIGENCE AC-
TIVITIES SUPPORT PROVIDED BY RESERVE 
COMPONENT PERSONNEL. 
(a) IN GENERAL.—Chapter 1805 of title 10, United 
States Code, is amended by inserting after section 18502 
the following new section: 
‘‘§ 18503. Reserve components: reimbursement for costs 
of intelligence support provided by reserve 
component personnel 
‘‘(a) REIMBURSEMENT
REQUIREMENT.—The Sec-
retary of Defense or the Secretary concerned shall transfer 
to the appropriate reserve component military personnel ac-
count or operation and maintenance account the amount 
necessary to reimburse such account for the costs charged 
that account for military pay and allowances or operation 
and maintenance associated with the performance of duty 
described in subsection (b) by reserve component personnel. 
‘‘(b) REIMBURSABLE COSTS.—The transfer require-
ment under subsection (a) applies with respect to the per-
formance of duty in providing intelligence support, counter-
intelligence support, or intelligence and counterintelligence
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support to a combatant command, Defense Agency, or joint 
intelligence activity, including any activity or program 
within the National Foreign Intelligence Program, the 
Joint Military Intelligence Program, or the Tactical Intel-
ligence and Related Activities Program. 
‘‘(c) SOURCES OF REIMBURSEMENTS.—Funds avail-
able for operation and maintenance for the Army, Navy, 
Air Force, or Marine Corps, for a combatant command, or 
for a Defense Agency shall be available for transfer under 
this section to military personnel accounts and operation 
and maintenance accounts of the reserve components. 
‘‘(d) DISTRIBUTION TO UNITS.—Amounts reimbursed 
to an account for duty performed by reserve component per-
sonnel shall be distributed to the lowest level unit or other 
organization of such personnel that administers and is ac-
countable for the appropriated funds charged the costs that 
are being reimbursed. 
‘‘(e) MERGER
OF
TRANSFERRED
FUNDS.—Funds 
transferred to an account under this section shall be merged 
with other sums in the account and shall be available for 
the same period and purposes as the sums with which 
merged.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended inserting after 
the item relating to section 18502 the following new item:
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‘‘18503. Reserve components: reimbursement for costs of intelligence support pro-
vided by reserve component personnel.’’.
SEC. 343. REIMBURSEMENT RATE FOR SERVICES PROVIDED 
TO THE DEPARTMENT OF STATE. 
(a) AUTHORITY.—Subsection (a) of section 2642 of 
title 10, United States Code, is amended—
(1) by striking ‘‘(a) AUTHORITY’’ and all that 
follows through ‘‘the Department of Defense’’ and in-
serting the following: 
‘‘(a) AUTHORITY.—The Secretary of Defense may au-
thorize the use of the Department of Defense reimbursement 
rate for military airlift services provided by a component 
of the Department of Defense as follows: 
‘‘(1) Military airlift services provided’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) Military airlift services provided to the De-
partment of State for the transportation of armored 
motor vehicles to a foreign country to meet unfulfilled 
requirements of the Department of State for armored 
motor vehicles in such foreign country.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.—(1) 
The heading for such section is amended to read as follows:
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‘‘§ 2642. Reimbursement rate for airlift services pro-
vided to Central Intelligence Agency or 
Department of State’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 157 of such title is 
amended to read as follows:
‘‘2642. Reimbursement rate for airlift services provided to Central Intelligence 
Agency or Department of State.’’.
(c) COSTS OF GOODS AND SERVICES PROVIDED TO 
DEPARTMENT OF STATE.—For any fee charged to the De-
partment of Defense by the Department of State during any 
year for the maintenance, upgrade, or construction of 
United States diplomatic facilities, the Secretary of Defense 
may remit to the Department of State only that portion, 
if any, of the total amount of the fee charged for such year 
that exceeds the total amount of the costs incurred by the 
Department of Defense for providing goods and services to 
the Department of State during such year. 
Subtitle E—Defense Dependents 
Education 
SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES 
THAT BENEFIT DEPENDENTS OF MEMBERS 
OF THE ARMED FORCES AND DEPARTMENT 
OF DEFENSE CIVILIAN EMPLOYEES. 
(a) CONTINUATION
OF DEPARTMENT
OF DEFENSE 
PROGRAM FOR FISCAL YEAR 2004.—Of the amount author-
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ized to be appropriated pursuant to section 301(5) for oper-
ation and maintenance for Defense-wide activities, 
$30,000,000 shall be available only for the purpose of pro-
viding educational agencies assistance to local educational 
agencies. 
(b) NOTIFICATION.—Not later than June 30, 2004, the 
Secretary of Defense shall notify each local educational 
agency that is eligible for educational agencies assistance 
for fiscal year 2004 of—
(1) that agency’s eligibility for the assistance; 
and 
(2) the amount of the assistance for which that 
agency is eligible. 
(c) DISBURSEMENT OF FUNDS.—The Secretary of De-
fense shall disburse funds made available under subsection 
(a) not later than 30 days after the date on which notifica-
tion to the eligible local educational agencies is provided 
pursuant to subsection (b). 
(d) AVAILABILITY
OF
FUNDS
FOR
LOCAL
EDU-
CATIONAL AGENCIES AFFECTED
BY
THE BROOKS AIR 
FORCE
BASE
DEMONSTRATION
PROJECT.—(1) Up to 
$500,000 of the funds made available under subsection (a) 
may (notwithstanding the limitation in such subsection) 
also be used for making basic support payments for fiscal 
year 2004 to a local educational agency that received a
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basic support payment for fiscal year 2003, but whose pay-
ment for fiscal year 2004 would be reduced because of the 
conversion of Federal property to non-Federal ownership 
under the Department of Defense infrastructure demonstra-
tion project at Brooks Air Force Base, Texas, and the 
amounts of such basic support payments for fiscal year 
2004 shall be computed as if the converted property were 
Federal property for purposes of receiving the basic support 
payments for the period in which the demonstration project 
is ongoing, as documented by the local educational agency 
to the satisfaction of the Secretary. 
(2) If funds are used as authorized under paragraph 
(1), the Secretary shall reduce the amount of any basic sup-
port payment for fiscal year 2004 for a local educational 
agency described in paragraph (1) by the amount of any 
revenue that the agency received during fiscal year 2002 
from the Brooks Development Authority as a result of the 
demonstration project described in paragraph (1). 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘educational agencies assistance’’ 
means assistance authorized under section 386(b) of 
the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102–484; 20 U.S.C. 7703 
note).
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(2) The term ‘‘local educational agency’’ has the 
meaning given that term in section 8013(9) of the El-
ementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)). 
(3) The term ‘‘basic support payment’’ means a 
payment authorized under section 8003(b(1)) of the 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7703(b)(1)). 
SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DIS-
ABILITIES. 
Of the amount authorized to be appropriated pursuant 
to section 301(5) for operation and maintenance for De-
fense-wide activities, $5,000,000 shall be available for pay-
ments under section 363 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted 
into law by Public Law 106–398; 114 Stat. 1654A–77; 20 
U.S.C. 7703a). 
Subtitle F—Other Matters 
SEC. 361. SALE OF DEFENSE INFORMATION SYSTEMS AGEN-
CY 
SERVICES 
TO 
CONTRACTORS 
PER-
FORMING 
THE 
NAVY-MARINE 
CORPS 
INTRANET CONTRACT. 
(a) AUTHORITY.—The Secretary of Defense may sell 
working-capital funded services of the Defense Information 
Systems Agency to a person outside the Department of De-
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fense for use by that person in the performance of the Navy-
Marine Corps Intranet contract. 
(b) REIMBURSEMENT.—The Secretary shall require re-
imbursement of each working-capital fund for the costs of 
services sold under subsection (a) that were paid for out 
of such fund. The sources of the reimbursement shall be the 
appropriation or appropriations funding the Navy-Marine 
Corps Intranet contract or any cash payments received by 
the Secretary for the services. 
(c) NAVY-MARINE CORPS INTRANET CONTRACT DE-
FINED.—In this section, the term ‘‘Navy-Marine Corps 
Intranet contract’’ has the meaning given such term in sec-
tion 814 of the Floyd D. Spence National Defense Author-
ization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106–398 (114 Stat. 1654A–217)). 
SEC. 362. USE OF THE DEFENSE MODERNIZATION ACCOUNT 
FOR LIFE CYCLE COST REDUCTION INITIA-
TIVES. 
(a) FUNDS AVAILABLE FOR DEFENSE MODERNIZATION 
ACCOUNT.—Section 2216 of title 10, United States Code is 
amended—
(1) by striking subsection (c); 
(2) by redesignating subsection (b) as subsection 
(c); and
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(3) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b) FUNDS AVAILABLE FOR ACCOUNT.—The Defense 
Modernization Account shall consist of the following: 
‘‘(1) Amounts appropriated to the Defense Mod-
ernization Account for the costs of commencing 
projects described in subsection (d)(1), and amounts 
reimbursed to the Defense Modernization Account 
under subsections (c)(1)(B)(iii) out of savings derived 
from such projects. 
‘‘(2) Amounts transferred to the Defense Mod-
ernization Account under subsection (c).’’. 
(b) START-UP FUNDING.—Subsection (d) of such sec-
tion is amended—
(1) by striking ‘‘available from the Defense Mod-
ernization Account pursuant to subsection (f) or (g)’’ 
and inserting ‘‘in the Defense Modernization Ac-
count’’; 
(2) by redesignating paragraphs (1) and (2) as 
paragraphs (2) and (3), respectively; and 
(3) by inserting after ‘‘purposes:’’ the following 
new paragraph (1): 
‘‘(1) For paying the costs of commencing any 
project that, in accordance with criteria prescribed by 
the Secretary of Defense, is undertaken by the Sec-
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retary of a military department or the head of a De-
fense Agency or other element of the Department of 
Defense to reduce the life cycle cost of a new or exist-
ing system.’’. 
(c) REIMBURSEMENT OF ACCOUNT OUT OF SAVINGS.—
(1) Paragraph (1)(B) of subsection (c) of such section, as 
redesignated by subsection (a)(2), is amended by adding at 
the end the following new clause: 
‘‘(iii) Unexpired funds in appropriations ac-
counts that are available for procurement or oper-
ation and maintenance of a system, if and to the ex-
tent that savings are achieved for such accounts 
through reductions in life cycle costs of such system 
that result from one or more projects undertaken with 
respect to such systems with funds made available 
from the Defense Modernization Account under sub-
section (b)(1).’’. 
(2) Paragraph (2) of such subsection is amended by 
inserting ‘‘, other than funds referred to in paragraph sub-
paragraph (B)(iii) of such paragraph,’’ after ‘‘Funds re-
ferred to in paragraph (1)’’. 
(d) REGULATIONS.—Subsection (h) of such section is 
amended—
(1) by inserting ‘‘(1)’’ after ‘‘COMPTROLLER.—
’’; and
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(2) by adding at the end the following new para-
graph (2): 
‘‘(2) The regulations prescribed under paragraph (1) 
shall, at a minimum, provide for—
‘‘(A) the submission of proposals by the Secre-
taries concerned or heads of Defense Agencies or other 
elements of the Department of Defense to the Comp-
troller for the use of Defense Modernization Account 
funds for purposes set forth in subsection (d); 
‘‘(B) the use of a competitive process for the eval-
uation of such proposals and the selection of pro-
grams, projects, and activities to be funded out of the 
Defense Modernization Account from among those 
proposed for such funding; and 
‘‘(C) the calculation of—
‘‘(i) the savings to be derived from projects 
described in subsection (d)(1) that are to be 
funded out of the Defense Modernization Ac-
count; and 
‘‘(ii) the amounts to be reimbursed to the 
Defense Modernization Account out of such sav-
ings pursuant to subsection (c)(1)(B)(iii).’’. 
(e) ANNUAL REPORT.—Subsection (i) of such section 
is amended—
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(1) by striking ‘‘(i) QUARTERLY REPORTS.—(1) 
Not later than 15 days after the end of each calendar 
quarter,’’ and inserting ‘‘(i) ANNUAL REPORT.—(1) 
Not later than 15 days after the end of each fiscal 
year,’’; and 
(2) in paragraph (1), by striking ‘‘quarter’’ in 
subparagraphs (A), (B), and (C), and inserting ‘‘fis-
cal year’’. 
(f) EXTENSION OF AUTHORITY.—Section 912(c)(1) of 
the National Defense Authorization Act for Fiscal Year 
1996 is amended—
(1) by striking ‘‘section 2216(b)’’ and inserting 
‘‘section 2216(c)’’; and 
(2) by striking ‘‘September 30, 2003’’ and insert-
ing ‘‘September 30, 2006’’. 
SEC. 363. EXEMPTION OF CERTAIN FIREFIGHTING SERVICE 
CONTRACTS FROM PROHIBITION ON CON-
TRACTS 
FOR 
PERFORMANCE 
OF 
FIRE-
FIGHTING FUNCTIONS. 
Section 2465(b) of title 10, United States Code, is 
amended—
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3), by striking the period and 
inserting ‘‘; or’’; and
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(3) by adding at the end the following new para-
graph: 
‘‘(4) to a contract for the performance for fire-
fighting functions if the contract is—
‘‘(A) for a period of one year or less; and 
‘‘(B) for the performance of firefighting 
functions that would otherwise be performed by 
military firefighters who are otherwise de-
ployed.’’. 
SEC. 364. TECHNICAL AMENDMENT RELATING TO TERMI-
NATION OF SACRAMENTO ARMY DEPOT, SAC-
RAMENTO, CALIFORNIA. 
Section 2466 of title 10, United States Code, is amend-
ed by striking subsection (d). 
SEC. 365. EXCEPTION TO COMPETITION REQUIREMENT FOR 
WORKLOADS PREVIOUSLY PERFORMED BY 
DEPOT-LEVEL ACTIVITIES. 
Section 2469 of title 10, United States Code, is amend-
ed—
(1) in subsection (b), by inserting ‘‘, except as 
provided in subsection (c)’’ before the period at the 
end; 
(2) by redesignating subsection (c) as subsection 
(d); and
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(3) by inserting after subsection (b) the following 
new subsection (c): 
‘‘(c) EXCEPTION.—Subsection (a) does not apply to 
any depot-level maintenance and repair workload that is 
performed by a public-private partnership under section 
2474(b) of this title consisting of a depot-level activity and 
a private entity.’’. 
SEC. 366. SUPPORT FOR TRANSFERS OF DECOMMISSIONED 
VESSELS AND SHIPBOARD EQUIPMENT. 
(a) IN GENERAL.—Chapter 633 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 7316. Support for transfers of decommissioned ves-
sels and shipboard equipment 
‘‘(a) AUTHORITY TO PROVIDE ASSISTANCE.—The Sec-
retary of the Navy may provide an entity described in sub-
section (b) with assistance in support of a transfer of a ves-
sel or shipboard equipment described in such subsection that 
is being executed under section 2572, 7306, 7307, or 7545 
of this title, or under any other authority. 
‘‘(b) COVERED VESSELS AND EQUIPMENT.—The au-
thority under this section applies—
‘‘(1) in the case of a decommissioned vessel 
that—
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‘‘(A) is owned and maintained by the Navy, 
is located at a Navy facility, and is not in active 
use; and 
‘‘(B) is being transferred to an entity des-
ignated by the Secretary of the Navy or by law 
to receive transfer of the vessel; and 
‘‘(2) in the case of any shipboard equipment 
that—
‘‘(A) is on a vessel described in paragraph 
(1)(A); and 
‘‘(B) is being transferred to an entity des-
ignated by the Secretary of the Navy or by law 
to receive transfer of the equipment. 
‘‘(c) REIMBURSEMENT.—The Secretary may require a 
recipient of assistance under subsection (a) to reimburse the 
Navy for amounts expended by the Navy in providing the 
assistance. 
‘‘(d) DEPOSIT OF FUNDS RECEIVED.—Funds received 
in a fiscal year under subsection (c) shall be credited to 
the appropriation available for such fiscal year for oper-
ation and maintenance for the office of the Navy managing 
inactive ships, shall be merged with other sums in the ap-
propriation that are available for such office, and shall be 
available for the same purposes and period as the sums with 
which merged.’’.
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(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item:
‘‘7316. Support for transfers of decommissioned vessels and shipboard equip-
ment.’’.
SEC. 367. AIRCRAFT FOR PERFORMANCE OF AERIAL RE-
FUELING MISSION. 
(a) RESTRICTION ON RETIREMENT OF KC–135E AIR-
CRAFT.—The Secretary of the Air Force shall ensure that 
the number of KC–135E aircraft of the Air Force that are 
retired in fiscal year 2004, if any, does not exceed 12 such 
aircraft. 
(b) REQUIRED ANALYSIS.—Not later than March 1, 
2004, the Secretary of the Air Force shall submit to the con-
gressional defense committees an analysis of alternatives for 
meeting the aerial refueling requirements that the Air Force 
has the mission to meet. The Secretary shall provide for 
the analysis to be performed by a federally funded research 
and development center or another entity independent of 
the Department of Defense. 
SEC. 368. CONTRACTING WITH EMPLOYERS OF PERSONS 
WITH DISABILITIES. 
(a) 
INAPPLICABILITY
OF
RANDOLPH-SHEPPARD 
ACT.—The Randolph-Sheppard Act does not apply to any 
contract described in subsection (b) for so long as the con-
tract is in effect, including for any period for which the
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contract is extended pursuant to an option provided in the 
contract. 
(b) JAVITS-WAGNER-O’DAY CONTRACTS.—Subsection 
(a) applies to any contract for the operation of a Depart-
ment of Defense facility described in subsection (c) that was 
entered into before the date of the enactment of this Act with 
a nonprofit agency for the blind or an agency for other se-
verely handicapped in compliance with section 3 of the Jav-
its-Wagner-O’Day Act (41 U.S.C. 48) and is in effect on 
such date. 
(c) COVERED FACILITIES.—The Department of De-
fense facilities referred to in subsection (b) are as follows: 
(1) A military troop dining facility. 
(2) A military mess hall. 
(3) Any similar dining facility operated for the 
purpose of providing meals to members of the Armed 
Forces. 
(d) ENACTMENT
OF
POPULAR
NAME
AS
SHORT 
TITLE.—The Act entitled ‘‘An Act to authorize the oper-
ation of stands in Federal buildings by blind persons, to 
enlarge the economic opportunities of the blind, and for 
other purposes’’, approved June 20, 1936 (commonly known 
as the ‘‘Randolph-Sheppard Act’’) (20 U.S.C. 107 et seq.), 
is amended by adding at the end the following new section:
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‘‘SEC. 11. This Act may be cited as the ‘Randolph-
Sheppard Act’.’’. 
(e) DEMONSTRATION PROJECTS
FOR CONTRACTORS 
EMPLOYING PERSONS WITH DISABILITIES.—(1) The Sec-
retary of Defense may carry out two demonstration projects 
for the purpose of providing opportunities for participation 
by severely disabled individuals in the industries of manu-
facturing and information technology. 
(2) Under each demonstration project, the Secretary 
may enter into one or more contracts with an eligible con-
tractor for each of fiscal years 2004 and 2005 for the acqui-
sition of—
(A) aerospace end items or components; or 
(B) information technology products or services. 
(3) The items, components, products, or services au-
thorized to be procured under paragraph (2) include—
(A) computer numerically-controlled machining 
and metal fabrication; 
(B) computer application development, testing, 
and support in document management, microfilming, 
and imaging; and 
(C) any other items, components, products, or 
services described in paragraph (2) that are not de-
scribed in subparagraph (A) or (B). 
(4) In this subsection:
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(A) The term ‘‘eligible contractor’’ means a busi-
ness entity operated on a for-profit or nonprofit basis 
that—
(i) employs not more than 500 individuals; 
(ii) employs severely disabled individuals at 
a rate that averages not less than 33 percent of 
its total workforce over a period prescribed by 
the Secretary; 
(iii) employs each severely disabled indi-
vidual in its workforce generally on the basis of 
40 hours per week; 
(iv) pays not less than the minimum wage 
prescribed pursuant to section 6 of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 206) to 
the employees who are severely disabled individ-
uals; 
(v) provides for its employees health insur-
ance and a retirement plan comparable to those 
provided for employees by business entities of 
similar size in its industrial sector or geographic 
region; and 
(vi) has or can acquire a security clearance 
as necessary. 
(B) The term ‘‘severely disabled individual’’ 
means an individual with a disability (as defined in
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section 3 of the Americans with Disabilities Act of 
1990 (42 U.S.C. 12102)) who has a severe physical or 
mental impairment that seriously limits one or more 
functional capacities. 
SEC. 369. REPEAL OF CALENDAR YEAR LIMITATIONS ON 
USE OF COMMISSARY STORES BY CERTAIN 
RESERVES AND OTHERS. 
(a) MEMBERS
OF
THE READY RESERVE.—Section 
1063(a) of title 10, United States Code, is amended by strik-
ing the period at the end of the first sentence and all that 
follows and inserting ‘‘in that calendar year.’’. 
(b) CERTAIN OTHER PERSONS.—Section 1064 of such 
title is amended by striking ‘‘for 24 days each calendar 
year’’. 
TITLE IV—MILITARY PERSONNEL 
AUTHORIZATIONS 
Subtitle A—Active Forces 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 
The Armed Forces are authorized strengths for active 
duty personnel as of September 30, 2004, as follows: 
(1) The Army, 480,000. 
(2) The Navy, 373,800. 
(3) The Marine Corps, 175,000. 
(4) The Air Force, 359,300.
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SEC. 402. INCREASED MAXIMUM PERCENTAGE OF GENERAL 
AND FLAG OFFICERS ON ACTIVE DUTY AU-
THORIZED TO BE SERVING IN GRADES ABOVE 
BRIGADIER GENERAL AND REAR ADMIRAL 
(LOWER HALF). 
Section 525(a) of title 10, United States Code, is 
amended by striking ‘‘50 percent’’ both places it appears 
and inserting ‘‘55 percent’’. 
SEC. 403. EXTENSION OF CERTAIN AUTHORITIES RELAT-
ING TO MANAGEMENT OF NUMBERS OF GEN-
ERAL 
AND 
FLAG 
OFFICERS 
IN 
CERTAIN 
GRADES. 
(a) SENIOR
JOINT
OFFICER
POSITIONS.—Section 
604(c) of title 10, United States Code, is amended by strik-
ing ‘‘December 31, 2004’’ and inserting ‘‘December 31, 
2005’’. 
(b) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN 
GENERAL
AND
FLAG
OFFICER
GRADES.—Section 
525(b)(5)(C) of such title is amended by striking ‘‘December 
31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(c) AUTHORIZED STRENGTH FOR GENERAL AND FLAG 
OFFICERS ON ACTIVE DUTY.—Section 526(b)(3) of such 
title is amended by striking ‘‘December 31, 2004’’ and in-
serting ‘‘December 31, 2005’’.
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Subtitle B—Reserve Forces 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE. 
(a) IN GENERAL.—The Armed Forces are authorized 
strengths for Selected Reserve personnel of the reserve com-
ponents as of September 30, 2004, as follows: 
(1) The Army National Guard of the United 
States, 350,000. 
(2) The Army Reserve, 205,000. 
(3) The Naval Reserve, 85,900. 
(4) The Marine Corps Reserve, 39,600. 
(5) The Air National Guard of the United 
States, 107,030. 
(6) The Air Force Reserve, 75,800. 
(7) The Coast Guard Reserve, 10,000. 
(b) ADJUSTMENTS.—The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve compo-
nent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such 
component which are on active duty (other than for 
training) at the end of the fiscal year; and 
(2) the total number of individual members not 
in units organized to serve as units of the Selected 
Reserve of such component who are on active duty 
(other than for training or for unsatisfactory partici-
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pation in training) without their consent at the end 
of the fiscal year. 
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end 
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be proportionately in-
creased by the total authorized strengths of such units and 
by the total number of such individual members. 
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE 
DUTY IN SUPPORT OF THE RESERVES. 
Within the end strengths prescribed in section 411(a), 
the reserve components of the Armed Forces are authorized, 
as of September 30, 2004, the following number of Reserves 
to be serving on full-time active duty or full-time duty, in 
the case of members of the National Guard, for the purpose 
of organizing, administering, recruiting, instructing, or 
training the reserve components: 
(1) The Army National Guard of the United 
States, 25,599. 
(2) The Army Reserve, 14,374. 
(3) The Naval Reserve, 14,384. 
(4) The Marine Corps Reserve, 2,261. 
(5) The Air National Guard of the United 
States, 12,191. 
(6) The Air Force Reserve, 1,660.
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SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS 
(DUAL STATUS). 
The minimum number of military technicians (dual 
status) as of the last day of fiscal year 2004 for the reserve 
components of the Army and the Air Force (notwith-
standing section 129 of title 10, United States Code) shall 
be the following: 
(1) For the Army Reserve, 6,699. 
(2) For the Army National Guard of the United 
States, 24,589. 
(3) For the Air Force Reserve, 9,991. 
(4) For the Air National Guard of the United 
States, 22,806. 
SEC. 414. FISCAL YEAR 2004 LIMITATIONS ON NON-DUAL 
STATUS TECHNICIANS. 
(a) LIMITATIONS.—(1) Within the limitation provided 
in section 10217(c)(2) of title 10, United States Code, the 
number of non-dual status technicians employed by the Na-
tional Guard as of September 30, 2004, may not exceed the 
following: 
(A) For the Army National Guard of the United 
States, 1,600. 
(B) For the Air National Guard of the United 
States, 350.
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(2) The number of non-dual status technicians em-
ployed by the Army Reserve as of September 30, 2004, may 
not exceed 895. 
(3) The number of non-dual status technicians em-
ployed by the Air Force Reserve as of September 30, 2004, 
may not exceed 90. 
(b) NON-DUAL STATUS TECHNICIANS DEFINED.—In 
this section, the term ‘‘non-dual status technician’’ has the 
meaning given the term in section 10217(a) of title 10, 
United States Code. 
Subtitle C—Other Matters Relating 
to Personnel Strengths 
SEC. 421. REVISION OF PERSONNEL STRENGTH AUTHOR-
IZATION AND ACCOUNTING PROCESS. 
(a) ANNUAL AUTHORIZATION OF STRENGTHS.—Sub-
section (a) of section 115 of title 10, United States Code, 
is amended to read as follows: 
‘‘(a) Congress shall authorize personnel strength levels 
for each fiscal year for each of the following: 
‘‘(1) The average strength for each of the armed 
forces (other than the Coast Guard) for active-duty 
personnel who are to be paid from funds appropriated 
for active-duty personnel. 
‘‘(2) The average strength for each of the armed 
forces (other than the Coast Guard) for active-duty
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personnel and full-time National Guard duty per-
sonnel who are to be paid from funds appropriated 
for reserve personnel. 
‘‘(3) The average strength for the Selected Re-
serve of each reserve component of the armed forces.’’. 
(b) LIMITATION ON USE OF FUNDS.—Subsection (b) 
of such section is amended by striking ‘‘end strength’’ in 
paragraphs (1) and (2) and inserting ‘‘strength’’. 
(c) AUTHORITY OF SECRETARY OF DEFENSE TO VARY 
STRENGTHS.—Subsection (c) of such section is amended—
(1) by striking ‘‘end strength’’ each place it ap-
pears and inserting ‘‘strength’’; 
(2) in paragraph (1), by striking ‘‘subsection 
(a)(1)(A)’’ and inserting ‘‘subsection (a)(1)’’; 
(3) in paragraph (2), by striking ‘‘subsection 
(a)(1)(B)’’ and inserting ‘‘subsection (a)(2)’’; and 
(4) in paragraph (3), by striking ‘‘subsection 
(a)(2)’’ and inserting ‘‘subsection (a)(3)’’. 
(d) COUNTING PERSONNEL.—Subsection (d) of such 
section is amended—
(1) by striking ‘‘end-strengths authorized pursu-
ant to subsection (a)(1)’’ and inserting ‘‘strengths au-
thorized pursuant to paragraphs (1) and (2) of sub-
section (a)’’; and
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(2) in paragraph (9)(B), by striking ‘‘subsection 
(a)(1)(A)’’ and inserting ‘‘subsection (a)(1)’’. 
(e) NAVY STRENGTH WHEN AUGMENTED BY COAST 
GUARD.—Subsection (e) of such section is amended by 
striking ‘‘subsection (a)(1)’’ and inserting ‘‘paragraphs (1) 
and (2) of subsection (a)’’. 
(f) AUTHORITY OF SECRETARIES OF MILITARY DE-
PARTMENTS TO VARY STRENGTHS.—Subsection (f) of such 
section is amended—
(1) by striking ‘‘end strength’’ both places it ap-
pears and inserting ‘‘strength’’; and 
(2) by striking ‘‘subsection (a)(1)(A)’’ in the first 
sentence and inserting ‘‘subsection (a)(1)’’. 
(g) AUTHORIZATION OF STRENGTHS FOR DUAL STA-
TUS MILITARY TECHNICIANS.—Subsection (g) of such sec-
tion is amended by striking ‘‘end strength’’ both places it 
appears and inserting ‘‘strength’’. 
(h) 
CONFORMING
AMENDMENTS.—(1) 
Section 
168(f)(1)(A) of title 10, United States Code, is amended by 
striking ‘‘end strength for active-duty personnel authorized 
pursuant to section 115(a)(1)’’ and inserting ‘‘strengths for 
active-duty personnel authorized pursuant to paragraphs 
(1) and (2) of section 115(a)’’.
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(2) Section 691(f) of such title is amended by striking 
‘‘section 115(a)(1)’’ and inserting ‘‘paragraphs (1) and (2) 
of section 115(a)’’. 
(3) Section 3201(b) of such title is amended by striking 
‘‘section 115(a)(1)’’ and inserting ‘‘paragraphs (1) and (2) 
of section 115(a)’’. 
(4)(A) Section 10216 of such title is amended—
(i) by striking ‘‘end strengths’’ in subsections 
(b)(1) and (c)(1) and inserting ‘‘strengths’’; and 
(ii) by striking ‘‘end strength’’ each place it ap-
pears 
in 
subsection 
(c)(2)(A) 
and 
inserting 
‘‘strength’’. 
(B) The heading for subsection (c) is amended by strik-
ing ‘‘END’’. 
(5) Section 12310(c)(4) of such title is amended by 
striking ‘‘end strength authorizations required by section 
115(a)(1)(B) and 115(a)(2)’’ and inserting ‘‘strength au-
thorizations required by paragraphs (2) and (3) of section 
115(a)’’. 
(6) Section 16132(d) of such title is amended by strik-
ing ‘‘end strength required to be authorized each year by 
section 115(a)(1)(B)’’ in the second sentence and inserting 
‘‘strength required to be authorized each year by section 
115(a)(2)’’.
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(7) Section 112 of title 32, United States Code, is 
amended—
(A) in subsection (e)—
(i) in the heading, by striking ‘‘END-
STRENGTH’’ and inserting ‘‘STRENGTH’’; and 
(ii) by striking ‘‘end strength’’ and insert-
ing ‘‘strength’’; 
(B) in subsection (f)—
(i) in the heading, by striking ‘‘END 
STRENGTH’’ and inserting ‘‘STRENGTH’’; and 
(ii) in paragraph (2), by striking ‘‘end 
strength’’ and inserting ‘‘strength’’; and 
(C) in subsection (g)(1), by striking ‘‘end 
strengths’’ and inserting ‘‘strengths’’. 
SEC. 422. EXCLUSION OF RECALLED RETIRED MEMBERS 
FROM 
CERTAIN 
STRENGTH 
LIMITATIONS 
DURING 
PERIOD 
OF 
WAR 
OR 
NATIONAL 
EMERGENCY. 
(a) ANNUAL AUTHORIZED END STRENGTHS.—Section 
115(d) of title 10, United States Code, is amended by add-
ing at the end the following new paragraph: 
‘‘(12) Members of the armed forces ordered to ac-
tive duty under section 688 of this title during any 
period of war declared by Congress or any period of 
national emergency declared by Congress or the Presi-
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dent in which members of a reserve component are 
serving on active duty pursuant to an order to active 
duty under section 12301 or 12302 of this title, for 
so long as the members ordered to active duty under 
such section 688 continue to serve on active duty dur-
ing the period of the war or national emergency and 
the one-year period beginning on the date of the ter-
mination of the war or national emergency, as the 
case may be.’’
(b) STRENGTH LIMITATIONS FOR OFFICERS IN PAY 
GRADES O–4 THROUGH O–6.—Section 523(b) of such title 
is amended by adding at the end the following new para-
graph: 
‘‘(8) Officers ordered to active duty under section 
688 of this title during any period of war declared by 
Congress or any period of national emergency de-
clared by Congress or the President in which members 
of a reserve component are serving on active duty 
pursuant to an order to active duty under section 
12301 or 12302 of this title, for so long as the mem-
bers ordered to active duty under such section 688 
continue to serve on active duty during the period of 
the war or national emergency and the one-year pe-
riod beginning on the date of the termination of the 
war or national emergency, as the case may be.’’.
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Subtitle D—Authorization of 
Appropriations 
SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL. 
There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal year 
2004 a total of $99,194,206,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 2004. 
TITLE V—MILITARY PERSONNEL 
POLICY 
Subtitle A—Officer Personnel Policy 
SEC. 501. RETENTION OF HEALTH PROFESSIONS OFFICERS 
TO FULFILL ACTIVE DUTY SERVICE OBLIGA-
TIONS FOLLOWING FAILURE OF SELECTION 
FOR PROMOTION. 
(a) IN GENERAL.—Subsection (a) of section 632 of title 
10, United States Code, is amended—
(1) by striking ‘‘or’’ at the end of paragraph (2); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new para-
graph:
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‘‘(4) if the officer is a health professions officer 
described in subsection (c) who, as of the date of dis-
charge determined for the officer under paragraph 
(1), has not completed an active duty service obliga-
tion incurred by the officer under section 2005, 2114, 
2123, or 2603 of this title, be retained on active duty 
until the officer completes the active duty service for 
which obligated, unless the Secretary concerned deter-
mines that the completion of the service obligation by 
the officer is not in the best interest of the Army, 
Navy, Air Force, or Marine Corps, as the case may 
be.’’. 
(b) COVERED HEALTH PROFESSIONS OFFICERS.—Sec-
tion 632 of such title is amended by adding at the end the 
following new subsection: 
‘‘(c) HEALTH PROFESSIONS OFFICERS.—Subsection 
(a)(4) applies to the following officers: 
‘‘(1) A medical officer. 
‘‘(2) A dental officer. 
‘‘(3) Any other officer appointed in a medical 
skill (as defined in regulations prescribed by the Sec-
retary of Defense).’’. 
(c) TECHNICAL AMENDMENT.—Subsection (a)(3) of 
such section is amended by striking ‘‘clause (1)’’ and insert-
ing ‘‘paragraph (1)’’.
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SEC. 502. ELIGIBILITY FOR APPOINTMENT AS CHIEF OF 
ARMY VETERINARY CORPS. 
(a) APPOINTMENT FROM AMONG MEMBERS OF THE 
CORPS.—Section 3084 of title 10, United States Code, is 
amended by inserting after ‘‘The Chief of the Veterinary 
Corps of the Army’’ the following: ‘‘shall be appointed from 
among officers of the Veterinary Corps. The Chief of the Vet-
erinary Corps’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to appointments of the Chief of the 
Veterinary Corps of the Army that are made on or after 
the date of the enactment of this Act. 
Subtitle B—Reserve Component 
Personnel Policy 
SEC. 511. EXPANDED AUTHORITY FOR USE OF READY RE-
SERVE IN RESPONSE TO TERRORISM. 
Section 12304(b)(2) of title 10, United States Code, is 
amended by striking ‘‘catastrophic’’. 
SEC. 512. STREAMLINED PROCESS FOR CONTINUING OFFI-
CERS ON THE RESERVE ACTIVE-STATUS LIST. 
(a) CONTINUATION.—Section 14701 of title 10, United 
States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘by a se-
lection board convened under section 14101(b) of
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this title’’ and inserting ‘‘under regulations pre-
scribed under subsection (b)’’; 
(B) in paragraph (6), by striking ‘‘as a re-
sult of the convening of a selection board under 
section 14101(b) of this title’’; 
(2) by striking subsections (b) and (c); and 
(3) by redesignating subsection (d) as subsection 
(b). 
(b) CONFORMING AMENDMENTS.—Subsection (b) of 
section 14101 of such title is amended—
(1) by striking paragraph (1); and 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively. 
SEC. 513. NATIONAL GUARD OFFICERS ON ACTIVE DUTY IN 
COMMAND OF NATIONAL GUARD UNITS. 
(a) CONTINUATION IN STATE STATUS.—Subsection (a) 
of section 325 of title 32, United States Code, is amended—
(1) by striking ‘‘(a) Each’’ and inserting ‘‘(a) 
RELIEF REQUIRED.—(1) Except as provided in para-
graph (2), each’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) An officer of the Army National Guard of the 
United States or the Air National Guard of the United 
States is not relieved from duty in the National Guard of
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his State or Territory, or of Puerto Rico or the District 
of Columbia, under paragraph (1) while serving on active 
duty in command of a National Guard unit if—
‘‘(A) the President authorizes such service in 
both duty statuses; and 
‘‘(B) the Governor of his State or Territory or 
Puerto Rico, or the Commanding General of the Dis-
trict of Columbia National Guard, as the case may 
be, consents to such service in both duty statuses.’’. 
(b) FORMAT AMENDMENT.—Subsection (b) of such sec-
tion is amended by inserting ‘‘RETURN TO STATE STA-
TUS.—’’ after ‘‘(b)’’. 
Subtitle C—Revision of Retirement 
Authorities 
SEC. 521. PERMANENT AUTHORITY TO REDUCE THREE-
YEAR TIME-IN-GRADE REQUIREMENT FOR RE-
TIREMENT 
IN 
GRADE 
FOR 
OFFICERS 
IN 
GRADES ABOVE MAJOR AND LIEUTENANT 
COMMANDER. 
Section 1370(a)(2)(A) of title 10, United States Code, 
is amended by striking ‘‘during the period beginning on 
October 1, 2002, and ending on December 31, 2003’’ and 
inserting ‘‘after September 30, 2002’’.
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Subtitle D—Education and 
Training 
SEC. 531. INCREASED FLEXIBILITY FOR MANAGEMENT OF 
SENIOR LEVEL EDUCATION AND POST-EDU-
CATION ASSIGNMENTS. 
(a) REPEAL OF POST-EDUCATION JOINT DUTY AS-
SIGNMENTS REQUIREMENT.—Subsection (d) of section 663 
of title 10, United States Code, is repealed. 
(b) REPEAL OF MINIMUM DURATION REQUIREMENT 
FOR PRINCIPAL COURSE OF INSTRUCTION AT THE JOINT 
FORCES STAFF COLLEGE.—Subsection (e) of such section 
is repealed. 
SEC. 532. EXPANDED EDUCATIONAL ASSISTANCE AUTHOR-
ITY FOR CADETS AND MIDSHIPMEN RECEIV-
ING ROTC SCHOLARSHIPS. 
(a) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE 
ON ACTIVE DUTY.—Section 2107(c) of title 10, United 
States Code, is amended—
(1) in paragraph (1), by striking the first sen-
tence and inserting the following: ‘‘The Secretary con-
cerned may provide financial assistance described in 
paragraph (3) for a student appointed as a cadet or 
midshipman by the Secretary under subsection (a).’’;
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(2) in paragraph (2), by striking ‘‘as described 
in paragraph (1)’’ and inserting ‘‘as described in 
paragraph (3)’’; and 
(3) by adding at the end the following new para-
graphs: 
‘‘(3)(A) The financial assistance provided for a student 
under this subsection shall be the payment of one of the 
two sets of expenses selected by the Secretary, as follows: 
‘‘(i) Tuition, fees, books, and laboratory expenses. 
‘‘(ii) Expenses for room and board and any 
other necessary expenses imposed by the student’s edu-
cational institution for the academic program in 
which the student is enrolled, which may include any 
of the expenses described in clause (i). 
‘‘(B) The total amount of the financial assistance pro-
vided for a student for an academic year under clause (ii) 
of subparagraph (A) may not exceed the total amount of 
the financial assistance that would otherwise have been pro-
vided for the student for that academic year under clause 
(i) of such subparagraph. 
‘‘(4) The Secretary of the military department con-
cerned may provide for the payment of all expenses in the 
Secretary’s department of administering the financial as-
sistance program under this section, including the payment 
of expenses described in paragraph (3).’’.
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(b) FINANCIAL ASSISTANCE PROGRAM FOR SERVICE IN 
TROOP PROGRAM UNITS.—Section 2107a(c) of such title is 
amended to read as follows: 
‘‘(c)(1) The Secretary of the Army may provide finan-
cial assistance described in paragraph (2) for a student ap-
pointed as a cadet by the Secretary under subsection (a). 
‘‘(2)(A) The financial assistance provided for a student 
under this subsection shall be the payment of one of the 
two sets of expenses selected by the Secretary concerned, as 
follows: 
‘‘(i) Tuition, fees, books, and laboratory expenses. 
‘‘(ii) Expenses for room and board and any 
other necessary expenses imposed by the student’s edu-
cational institution for the academic program in 
which the student is enrolled, which may include any 
of the expenses described in clause (i). 
‘‘(B) The total amount of the financial assistance pro-
vided for a student for an academic year under clause (ii) 
of subparagraph (A) may not exceed the total amount of 
the financial assistance that would otherwise have been pro-
vided for the student for that academic year under clause 
(i) of such subparagraph. 
‘‘(3) The Secretary may provide for the payment of 
all expenses in the Department of the Army for admin-
istering the financial assistance program under this section,
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including the payment of expenses described in paragraph 
(2).’’. 
SEC. 533. ELIGIBILITY AND COST REIMBURSEMENT RE-
QUIREMENTS FOR PERSONNEL TO RECEIVE 
INSTRUCTION 
AT 
THE 
NAVAL 
POST-
GRADUATE SCHOOL. 
(a) EXPANDED ELIGIBILITY
FOR ENLISTED PER-
SONNEL.—Subsection (a)(2) of section 7045 of title 10, 
United States Code, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 
(2) by striking ‘‘this paragraph’’ in the second 
sentence and inserting ‘‘this subparagraph’’; and 
(3) by adding at the end the following new sub-
paragraphs: 
‘‘(B) The Secretary may permit an enlisted member 
of the armed forces to receive instruction in an executive 
level seminar at the Naval Postgraduate School. 
‘‘(C) The Secretary may permit an eligible enlisted 
member of the armed forces to receive instruction in connec-
tion with pursuit of a program of education in information 
assurance as a participant in the Information Security 
Scholarship program under chapter 112 of this title. To be 
eligible for instruction under this subparagraph, the en-
listed member must have been awarded a baccalaureate de-
gree by an institution of higher education.’’.
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(b) PAYMENT OF COSTS FOR PARTICIPANTS IN INFOR-
MATION SECURITY SCHOLARSHIP PROGRAM.—Subsection 
(b) of such section is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) The requirements for payment of costs and fees 
under paragraph (1) shall be subject to such exceptions as 
the Secretary of Defense may prescribe for members of the 
armed forces who receive instruction at the Postgraduate 
School in connection with pursuit of a degree or certifi-
cation as participants in the Information Security Scholar-
ship program under chapter 112 of this title.’’. 
‘‘(3) The Department of the Army, the Department of 
the Navy, and the Department of Transportation shall bear 
the cost of the instruction at the Air Force Institute of Tech-
nology that is received by officers detailed for that instruc-
tion by the Secretaries of the Army, Navy, and Transpor-
tation, respectively. In the case of an enlisted member per-
mitted to receive instruction at the Institute, the Secretary 
of the Air Force shall charge that member only for such 
costs and fees as the Secretary considers appropriate (tak-
ing into consideration the admission of enlisted members 
on a space-available basis).
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(c) CONFORMING AMENDMENTS.—Paragraph (1) of 
such subsection (b), as redesignated by subsection (b)(1) of 
this section, is amended—
(A) in the first sentence, by striking ‘‘officers’’ 
and inserting ‘‘members of the armed forces who are’’; 
and 
(B) in the second sentence—
(i) 
by 
inserting 
‘‘under 
subsection 
(a)(2)(A)’’ after ‘‘at the Postgraduate School’’; 
and 
(ii) by striking ‘‘(taking into consideration 
the admission of enlisted members on a space-
available basis)’’. 
SEC. 534. ACTIONS TO ADDRESS SEXUAL MISCONDUCT AT 
THE SERVICE ACADEMIES. 
(a) POLICY ON SEXUAL MISCONDUCT.—(1) The Sec-
retary of the Army, the Secretary of the Navy, and the Sec-
retary of the Air Force shall, under guidance prescribed by 
the Secretary of Defense, direct the Superintendent of the 
United States Military Academy, the Superintendent of the 
United States Naval Academy, and the Superintendent of 
the United States Air Force Academy, respectively, to pre-
scribe a policy on sexual misconduct applicable to the per-
sonnel of the United States Military Academy, the United
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States Naval Academy, and the United States Air Force 
Academy, respectively. 
(2) The policy on sexual misconduct prescribed for an 
academy shall specify the following: 
(A) Programs to promote awareness of the inci-
dence of rape, acquaintance rape, and other sexual of-
fenses of a criminal nature that involve academy per-
sonnel. 
(B) Procedures that a cadet or midshipman, as 
the case may be, should follow in the case of an occur-
rence of sexual misconduct, including—
(i) a specification of the person or persons 
to whom the alleged offense should be reported; 
(ii) a specification of any other person 
whom the victim should contact; and 
(iii) procedures on the preservation of evi-
dence potentially necessary for proof of criminal 
sexual assault. 
(C) Procedures for disciplinary action in cases of 
alleged criminal sexual assault involving academy 
personnel. 
(D) Any other sanctions authorized to be im-
posed in a substantiated case of misconduct involving 
academy personnel in rape, acquaintance rape, or
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any other criminal sexual offense, whether forcible or 
nonforcible. 
(E) Required training on the policy for all acad-
emy personnel, including the specific training re-
quired for personnel who process allegations of sexual 
misconduct involving academy personnel. 
(b) ANNUAL ASSESSMENT.—(1) The Secretary of De-
fense, through the Secretaries of the military departments, 
shall direct each Superintendent to conduct at the academy 
under the jurisdiction of the Superintendent an assessment 
in each academy program year to determine the effective-
ness of the academy’s policies, training, and procedures on 
sexual misconduct to prevent criminal sexual misconduct 
involving academy personnel. 
(2) For the assessment for each of the 2004, 2005, 2006, 
2007, and 2008 academy program years, the Super-
intendent of the academy shall conduct a survey of all acad-
emy personnel—
(A) to measure—
(i) the incidence, in such program year, of 
sexual misconduct events, on or off the academy 
reservation, that have been reported to officials of 
the academy; and 
(ii) the incidence, in such program year, of 
sexual misconduct events, on or off the academy
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reservation, that have not been reported to offi-
cials of the academy; and 
(B) to assess the perceptions of academy per-
sonnel on—
(i) the policies, training, and procedures on 
sexual misconduct involving academy personnel; 
(ii) the enforcement of such policies; 
(iii) the incidence of sexual misconduct in-
volving academy personnel in such program 
year; and 
(iv) any other issues relating to sexual mis-
conduct involving academy personnel. 
(c) ANNUAL REPORT.—(1) The Secretary of the Army, 
the Secretary of the Navy, and the Secretary of the Air 
Force shall direct the Superintendent of the United States 
Military Academy, the Superintendent of the United States 
Naval Academy, and the Superintendent of the United 
States Air Force Academy, respectively, to submit to the 
Secretary a report on sexual misconduct involving academy 
personnel for each of the 2004, 2005, 2006, 2007, and 2008 
academy program years. 
(2) The annual report for an academy under para-
graph (1) shall contain, for the academy program year cov-
ered by the report, the following matters:
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(A) The number of sexual assaults, rapes, and 
other sexual offenses involving academy personnel 
that have been reported to academy officials during 
the program year, and the number of the reported 
cases that have been substantiated. 
(B) The policies, procedures, and processes im-
plemented by the Secretary of the military depart-
ment concerned and the leadership of the academy in 
response to sexual misconduct involving academy per-
sonnel during the program year. 
(C) In the report for the 2004 academy program 
year, a discussion of the survey conducted under sub-
section (b), together with an analysis of the results of 
the survey and a discussion of any initiatives under-
taken on the basis of such results and analysis. 
(D) In the report for each of the subsequent acad-
emy program years, the results of the annual survey 
conducted in such program year under subsection (b). 
(E) A plan for the actions that are to be taken 
in the following academy program year regarding 
prevention of and response to sexual misconduct in-
volving academy personnel. 
(3) The Secretary of a military department shall 
transmit the annual report on an academy under this sub-
section, together with the Secretary’s comments on the re-
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port, to the Secretary of Defense and the Board of Visitors 
of the academy. 
(4) The Secretary of Defense shall transmit the annual 
report on each academy under this subsection, together with 
the Secretary’s comments on the report to, the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives. 
(5) The report for the 2004 academy program year for 
an academy shall be submitted to the Secretary of the mili-
tary department concerned not later than one year after 
the date of the enactment of this Act. 
(6) In this subsection, the term ‘‘academy program 
year’’ with respect to a year, means the academy program 
year that ends in that year. 
SEC. 535. FUNDING OF EDUCATION ASSISTANCE ENLIST-
MENT INCENTIVES TO FACILITATE NATIONAL 
SERVICE THROUGH DEPARTMENT OF DE-
FENSE EDUCATION BENEFITS FUND. 
(a) IN GENERAL.—Subsection (j) of section 510 of title 
10, United States Code, is amended to read as follows: 
‘‘(j) FUNDING.—(1) Amounts for the payment of incen-
tives under paragraphs (1) and (2) of subsection (e) shall 
be derived from amounts available to the Secretary of the 
military department concerned for the payment of pay, al-
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lowances and other expenses of the members of the armed 
force concerned. 
‘‘(2) Amounts for the payment of incentives under 
paragraphs (3) and (4) of subsection (e) shall be derived 
from the Department of Defense Education Benefits Fund 
under section 2006 of this title.’’. 
(b) CONFORMING AMENDMENTS.—Section 2006(b) of 
such title is amended— 
(1) in paragraph (1), by inserting ‘‘paragraphs 
(3) and (4) of section 510(e) and’’ after ‘‘Department 
of Defense benefits under’’; and 
(2) in paragraph (2), by adding at the end the 
following new subparagraph: 
‘‘(E) The present value of future benefits 
payable from the Fund for educational assistance 
under paragraphs (3) and (4) of section 510(e) 
of this title to persons who during such period 
become entitled to such assistance.’’. 
Subtitle E—Military Justice 
SEC. 551. EXTENDED LIMITATION PERIOD FOR PROSECU-
TION OF CHILD ABUSE CASES IN COURTS-
MARTIAL. 
Section 843(b) of title 10, United States Code (article 
43 of the Uniform Code of Military Justice) is amended—
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(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2)(A) A person charged with having committed a 
child abuse offense against a child is liable to be tried by 
court-martial if the sworn charges and specifications are 
received before the child reaches the age of 25 years by an 
officer exercising summary court-martial jurisdiction with 
respect to that person. 
‘‘(B) In subparagraph (A), the term ‘child abuse of-
fense’ means an act that involves sexual or physical abuse 
of a person under 16 years of age and constitutes any of 
the following offenses: 
‘‘(i) Rape or carnal knowledge in violation of 
section 920 of this title (article 120). 
‘‘(ii) Maiming in violation of section 924 of this 
title (article 124). 
‘‘(iii) Sodomy in violation of section 925 of this 
title (article 126). 
‘‘(iv) Aggravated assault or assault consummated 
by a battery in violation of section 928 of this title 
(article 128). 
‘‘(v) Indecent assault, assault with intent to 
commit murder, voluntary manslaughter, rape, or
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sodomy, or indecent acts or liberties with a child in 
violation of section 934 of this title (article 134).’’. 
SEC. 552. CLARIFICATION OF BLOOD ALCOHOL CONTENT 
LIMIT FOR THE OFFENSE UNDER THE UNI-
FORM 
CODE 
OF 
MILITARY 
JUSTICE 
OF 
DRUNKEN OPERATION OF A VEHICLE, AIR-
CRAFT, OR VESSEL. 
Section 911 of title 10, United States Code (article 111 
of the Uniform Code of Military Justice), is amended—
(1) in subsection (a)(2), by striking ‘‘is in excess 
of’’ and inserting ‘‘is equal to or exceeds’’; and 
(2) in subsection (b)—
(A) in paragraph (1), by striking subpara-
graph (A) and inserting the following: 
‘‘(A) In the case of the operation or control of a 
vehicle, aircraft, or vessel in the United States, such 
limit is the lesser of—
‘‘(i) the blood alcohol content limit under 
the law of the State in which the conduct oc-
curred, except as may be provided under para-
graph (2) for conduct on a military installation 
that is in more than one State; or 
‘‘(ii) the blood alcohol content limit speci-
fied in paragraph (3).’’; and
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(B) by striking ‘‘maximum’’ in paragraphs 
(1)(B) and (3). 
Subtitle F—Other Matters 
SEC. 561. HIGH-TEMPO PERSONNEL MANAGEMENT AND AL-
LOWANCE. 
(a) DEPLOYMENT MANAGEMENT.—Section 991(a) of 
title 10, United States Code, is amended to read as follows: 
‘‘(a) MANAGEMENT RESPONSIBILITIES.—(1) The de-
ployment (or potential deployment) of a member of the 
armed forces shall be managed to ensure that the member 
is not deployed, or continued in a deployment, on any day 
on which the total number of days on which the member 
has been deployed out of the preceding 365 days would ex-
ceed the maximum number of deployment days prescribed 
for the purposes of this section by the Under Secretary of 
Defense for Personnel and Readiness. The maximum num-
ber of deployment days so prescribed may not exceed 220 
days. 
‘‘(2) A member may be deployed, or continued in a 
deployment, without regard to paragraph (1) if such de-
ployment, or continued deployment, is approved by—
‘‘(A) a member of the Senior Executive Service 
designated by the Secretary of Defense to do so; or 
‘‘(B) the first officer in the member’s chain of 
command who is—
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‘‘(i) a general officer or, in the case of the 
Navy, an officer in a grade above captain; or 
‘‘(ii) a colonel or, in the case of the Navy, 
a captain who is recommended for promotion to 
brigadier general or rear admiral, respectively, 
in a report of a selection board convened under 
section 611(a) or 14101(a) of this title that has 
been approved by the President.’’. 
(b) HIGH-TEMPO ALLOWANCE.—(1) Subsection (a) of 
section 436 of title 37, United States Code, is amended to 
read as follows: 
‘‘(a) MONTHLY ALLOWANCE.—The Secretary of the 
military department concerned shall pay a high-tempo al-
lowance to a member of the armed forces under the Sec-
retary’s jurisdiction for the following months: 
‘‘(1) Each month during which the member is 
deployed and has, as of any day during that month, 
been deployed—
‘‘(A) for at least the number of days out of 
the preceding 730 days that is prescribed for the 
purpose of this subparagraph by the Under Sec-
retary of Defense for Personnel and Readiness, 
except that the number of days so prescribed may 
not be more than 401 days; or
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‘‘(B) at least the number of consecutive days 
that is prescribed for the purpose of this sub-
paragraph by the Under Secretary of Defense for 
Personnel and Readiness, except that the number 
of days so prescribed may not be more than 191 
days. 
‘‘(2) Each month that includes a day on which 
the member serves on active duty pursuant to a call 
or order to active duty for a period of more than 30 
days under a provision of law referred to in section 
101(a)(13)(B) of title 10, if such period begins within 
one year after the date on which the member was re-
leased from previous service on active duty for a pe-
riod of more than 30 days under a call or order 
issued under such a provision of law.’’. 
(2) Subsection (c) of such section is amended to read 
as follows: 
‘‘(c) MONTHLY AMOUNT.—The Secretary of Defense 
shall prescribe the amount of the monthly allowance pay-
able to a member under this section. The amount may not 
exceed $1,000.’’. 
(3) Such section is further amended by adding at the 
end the following new subsection: 
‘‘(g) SERVICE IN EXEMPTED DUTY POSITIONS.—(1) 
Except as provided in paragraph (2), a member is not eligi-
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ble for the high-tempo allowance under this section while 
serving in a duty position designated as exempt for the pur-
pose of this subsection by the Secretary concerned with the 
approval of the Under Secretary of Defense for Personnel 
and Readiness. 
‘‘(2) A designation of a duty position as exempt under 
paragraph (1) does not terminate the eligibility for the 
high-tempo allowance under this section of a member serv-
ing in the duty position at the time the designation is made. 
‘‘(h) PAYMENT FROM OPERATION AND MAINTENANCE 
FUNDS.—The monthly allowance payable to a member 
under this section shall be paid from appropriations avail-
able for operation and maintenance for the armed force in 
which the member serves.’’. 
(4) Such section is further amended—
(A) in subsections (d) and (e), by striking ‘‘high-
deployment per diem’’ and inserting ‘‘high-tempo al-
lowance’’; and 
(B) in subsection (f)—
(i) by striking ‘‘per diem’’ and inserting 
‘‘allowance’’; and 
(ii) by striking ‘‘day on which’’ and insert-
ing ‘‘month during which’’. 
(5)(A) The heading of such section is amended to read 
as follows:
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‘‘§ 436. High-tempo allowance: lengthy or numerous 
deployments; frequent mobilizations’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 7 of such title is amend-
ed to read as follows:
‘‘436. High-tempo allowance: lengthy or numerous deployments; frequent mobili-
zations.’’.
(c) MODIFIED REPORTING REQUIREMENT.—Section 
487(b)(5) of title 10, United States Code, is amended to 
read as follows: 
‘‘(5) For each of the armed forces, the description 
shall indicate the number of members who received the 
high-tempo allowance under section 436 of title 37, 
the total number of months for which the allowance 
was paid to members, and the total amount spent on 
the allowance.’’. 
SEC. 562. ALTERNATE INITIAL MILITARY SERVICE OBLIGA-
TION FOR PERSONS ACCESSED UNDER DI-
RECT ENTRY PROGRAM. 
(a) REQUIREMENT FOR PROGRAM.—The Secretary of 
Defense shall carry out a direct entry program for persons 
with critical military skills who enter the Armed Forces for 
an initial period of service in the Armed Forces. 
(b) ELIGIBLE PERSONS.—The Secretary shall pre-
scribe the eligibility requirements for entering the Armed 
Forces under the direct entry program carried out under
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this section. The Secretary may limit eligibility as the Sec-
retary determines appropriate to meet the needs of the 
Armed Forces. 
(c) CRITICAL MILITARY SKILLS.—The Secretary shall 
designate the military skills that are critical military skills 
for the purposes of this section. 
(d) INITIAL SERVICE OBLIGATION.—(1) The Secretary 
shall prescribe the period of initial service in the Armed 
Forces that is to be required of a person entering the Armed 
Forces under the direct entry program. The period may not 
be less than three years. 
(2) Section 651(a) of title 10, United States Code, shall 
not apply to a person who enters the Armed Forces under 
the direct entry program. 
(e) REPORTS.—(1) Not later than 30 days after the 
direct entry program commences under this section, the Sec-
retary shall submit a report on the establishment of the pro-
gram to the Committees on Armed Services of the Senate 
and the House of Representatives. The report shall include 
the following: 
(A) A list of the military skills designated as 
critical military skills for the purposes of this section. 
(B) The eligibility requirements for entering the 
Armed Forces under the program.
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(C) A detailed discussion of the other features of 
the program. 
(2) Whenever the list of critical military skills is re-
vised, the Secretary shall promptly submit the revised list 
to the committees referred to in paragraph (1). 
(3) The Secretary shall submit a final report on the 
program to Congress not later than 180 days after the date 
on which the direct entry program terminates under sub-
section (f). The report shall include the Secretary’s assess-
ment of the effectiveness of the direct entry program for re-
cruiting personnel with critical military skills for the 
Armed Forces. 
(f) PERIOD OF PROGRAM.—The direct entry program 
under this section shall commence on October 1, 2003, and 
shall terminate on September 30, 2005. 
SEC. 563. POLICY ON CONCURRENT DEPLOYMENT TO COM-
BAT ZONES OF BOTH MILITARY SPOUSES OF 
MILITARY FAMILIES WITH MINOR CHILDREN. 
(a) PUBLICATION OF POLICY.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall—
(1) prescribe the policy of the Department of De-
fense on concurrent deployment to a combat zone of 
both spouses of a dual-military family with one or 
more minor children; and
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(2) transmit the policy to the Committees on 
Armed Services of the Senate and the House of Rep-
resentatives. 
(b) DUAL-MILITARY FAMILY DEFINED.—In this sec-
tion, the term ‘‘dual-military family’’ means a family in 
which both spouses are members of the Armed Forces. 
SEC. 564. ENHANCEMENT OF VOTING RIGHTS OF MEMBERS 
OF THE UNIFORMED SERVICES. 
(a) STANDARD FOR INVALIDATION OF BALLOTS CAST 
BY ABSENT UNIFORMED SERVICES VOTERS IN FEDERAL 
ELECTIONS.—.(1) Section 102 of the Uniformed and Over-
seas Citizens Absentee Voting Act (42 U.S.C. 1973ff–1) is 
amended—
(A) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(B) by inserting after subsection (b) the fol-
lowing new subsection (c): 
‘‘(c) STANDARDS FOR INVALIDATION OF CERTAIN BAL-
LOTS.—
‘‘(1) IN GENERAL.—A State may not refuse to 
count a ballot submitted in an election for Federal of-
fice by an absent uniformed services voter—
‘‘(A) solely on the grounds that the ballot 
lacked—
‘‘(i) a notarized witness signature;
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‘‘(ii) an address (other than on a Fed-
eral write-in absentee ballot, commonly 
known as ‘SF186’); 
‘‘(iii) a postmark if there are any other 
indicia that the vote was cast in a timely 
manner; or 
‘‘(iv) an overseas postmark; or 
‘‘(B) solely on the basis of a comparison of 
signatures on ballots, envelopes, or registration 
forms unless there is a lack of reasonable simi-
larity between the signatures. 
‘‘(2) NO EFFECT ON FILING DEADLINES UNDER 
STATE LAW.—Nothing in this subsection may be con-
strued to affect the application to ballots submitted by 
absent uniformed services voters of any ballot submis-
sion deadline applicable under State law.’’. 
(2) The amendments made by paragraph (1) shall 
apply with respect to ballots described in section 102(c) of 
the Uniformed and Overseas Citizens Absentee Voting Act, 
as added by paragraph (1), that are submitted with respect 
to elections that occur after the date of the enactment of 
this Act. 
(b) MAXIMIZATION OF ACCESS OF RECENTLY SEPA-
RATED UNIFORMED SERVICES VOTERS TO THE POLLS.—
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(1) Section 102(a) of the Uniformed and Overseas Citizens 
Absentee Voting Act (42 U.S.C. 1973ff–1) is amended—
(A) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(B) in paragraph (5), by striking the period at 
the end and inserting a semicolon; and 
(C) by adding at the end the following new para-
graphs: 
‘‘(6) in addition to using the postcard form for 
the purpose described in paragraph (4), accept and 
process any otherwise valid voter registration appli-
cation submitted by a uniformed service voter for the 
purpose of voting in an election for Federal office; 
and 
‘‘(7) permit each recently separated uniformed 
services voter to vote in any election for which a voter 
registration application has been accepted and proc-
essed under this section if that voter—
‘‘(A) has registered to vote under this sec-
tion; and 
‘‘(B) is eligible to vote in that election 
under State law.’’. 
(2) The amendments made by paragraph (1) shall 
apply with respect to elections for Federal office that occur 
after the date of the enactment of this Act.
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(c) DEFINITIONS.—Section 107 of the Uniformed and 
Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–
6) is amended—
(1) by redesignating paragraphs (7) and (8) as 
paragraphs (9) and (11), respectively; 
(2) by inserting after paragraph (6) the fol-
lowing new paragraph: 
‘‘(7) ‘recently separated uniformed services voter’ 
means any individual who was a uniformed services 
voter on the date that is 60 days before the date on 
which the individual seeks to vote and who—
‘‘(A) presents to the election official Depart-
ment of Defense form 214 evidencing the individ-
ual’s former status as such a voter, or any other 
official proof of such status; 
‘‘(B) is no longer such a voter; and 
‘‘(C) is otherwise qualified to vote in that 
election;’’; and 
(3) by inserting after paragraph (9), as so redes-
ignated, the following new paragraph: 
‘‘(10) ‘uniformed services voter’ means—
‘‘(A) a member of a uniformed service in 
active service; 
‘‘(B) a member of the merchant marine; 
and
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‘‘(C) a spouse or dependent of a member re-
ferred to in subparagraph (A) or (B) who is 
qualified to vote; and’’. 
SEC. 565. CERTAIN TRAVEL AND TRANSPORTATION AL-
LOWANCES FOR DEPENDENTS OF MEMBERS 
OF THE ARMED FORCES WHO HAVE COM-
MITTED DEPENDENT ABUSE. 
Section 406(h) of title 37, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(4)(A) If the Secretary concerned makes a determina-
tion described in subparagraph (B) with respect to the 
spouse or a dependent of a member described in that sub-
paragraph and a request described in subparagraph (C) has 
been by the spouse or on behalf of such dependent, the Sec-
retary may provide any benefit authorized for a member 
under paragraph (1) or (3) to the spouse or such dependent 
in lieu of providing such benefit to the member. 
‘‘(B) A determination described in this subparagraph 
is a determination by the commanding officer of a member 
that—
‘‘(i) the member has committed a dependent-
abuse offense against the spouse or a dependent of the 
member; 
‘‘(ii) a safety plan and counseling have been pro-
vided to the spouse or such dependent;
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‘‘(iii) the safety of the spouse or such dependent 
is at risk; and 
‘‘(iv) the relocation of the spouse or such depend-
ent is advisable. 
‘‘(C) A request described in this subparagraph is a re-
quest by the spouse of a member, or by the parent of a de-
pendent child in the case of a dependent child of a member, 
for relocation. 
‘‘(D) Transportation may be provided under this 
paragraph for household effects or a motor vehicle only if 
a written agreement of the member, or an order of a court 
of competent jurisdiction, gives possession of the effects or 
vehicle to the spouse or dependent of the member concerned. 
‘‘(E) In this paragraph, the term ‘dependent-abuse of-
fense’ means an offense described in section 1059(c) of title 
10.’’. 
TITLE VI—COMPENSATION AND 
OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2004. 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The ad-
justment to become effective during fiscal year 2004 re-
quired by section 1009 of title 37, United States Code, in 
the rates of monthly basic pay authorized members of the 
uniformed services shall not be made.
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(b) INCREASE IN BASIC PAY.—Effective on January 
1, 2004, the rates of monthly basic pay for members of the 
uniformed services within each pay grade are as follows: 
COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
O–10 2 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00
O–9 ....
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 ....
7,751.10 
8,004.90 
8,173.20 
8,220.60 
8,430.30
O–7 ....
6,440.70 
6,739.80 
6,878.40 
6,988.50 
7,187.40
O–6 ....
4,773.60 
5,244.30 
5,588.40 
5,588.40 
5,609.70
O–5 ....
3,979.50 
4,482.90 
4,793.40 
4,851.60 
5,044.80
O–4 ....
3,433.50 
3,974.70 
4,239.90 
4,299.00 
4,545.30
O–3 3
3,018.90 
3,422.40 
3,693.90 
4,027.20 
4,220.10
O–2 3
2,608.20 
2,970.60 
3,421.50 
3,537.00 
3,609.90
O–1 3
2,264.40 
2,356.50 
2,848.50 
2,848.50 
2,848.50
Over 8 
Over 10 
Over 12 
Over 14 
Over 16
O–10 2 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 ....
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 ....
8,781.90 
8,863.50 
9,197.10 
9,292.80 
9,579.90
O–7 ....
7,384.20 
7,611.90 
7,839.00 
8,066.70 
8,781.90
O–6 ....
5,850.00 
5,882.10 
5,882.10 
6,216.30 
6,807.30
O–5 ....
5,161.20 
5,415.90 
5,602.80 
5,844.00 
6,213.60
O–4 ....
4,809.30 
5,137.80 
5,394.00 
5,571.60 
5,673.60
O–3 3
4,431.60 
4,568.70 
4,794.30 
4,911.30 
4,911.30
O–2 3
3,609.90 
3,609.90 
3,609.90 
3,609.90 
3,609.90
O–1 3
2,848.50 
2,848.50 
2,848.50 
2,848.50 
2,848.50
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2 
$0.00 
$12,524.70 
$12,586.20 
$12,847.80 
$13,303.80
O–9 ....
0.00 
10,954.50 
11,112.30 
11,340.30 
11,738.40
O–8 ....
9,995.70 
10,379.10 
10,635.30 
10,635.30 
10,635.30
O–7 ....
9,386.10 
9,386.10 
9,386.10 
9,386.10 
9,433.50
O–6 ....
7,154.10 
7,500.90 
7,698.30 
7,897.80 
8,285.40
O–5 ....
6,389.70 
6,563.40 
6,760.80 
6,760.80 
6,760.80
O–4 ....
5,733.00 
5,733.00 
5,733.00 
5,733.00 
5,733.00
O–3 3
4,911.30 
4,911.30 
4,911.30 
4,911.30 
4,911.30
O–2 3
3,609.50 
3,609.50 
3,609.50 
3,609.50 
3,609.50
O–1 3
2,848.50 
2,848.50 
2,848.50 
2,848.50 
2,848.50
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for com-
missioned officers in pay grades O–7 through O–10 may not exceed the rate of pay for level III of the 
Executive Schedule and the actual rate of basic pay for all other officers may not exceed the rate of 
pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an officer in this grade while serving 
as Chairman or Vice Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of 
Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, Commandant of 
the Coast Guard, or commander of a unified or specified combatant command (as defined in section 
161(c) of title 10, United States Code) is $14,634.20, regardless of cumulative years of service com-
puted under section 205 of title 37, United States Code. 
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have been 
credited with over 4 years of active duty service as an enlisted member or warrant officer.
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE 
DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT OF-
FICER 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
O–3E
$0.00 
$0.00 
$0.00 
$4,027.20 
$4,220.10
O–2E
0.00 
0.00 
0.00 
3,537.00 
3,609.90
O–1E
0.00 
0.00 
0.00 
2,848.50 
3,042.30
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E
$4,431.60 
$4,568.70 
$4,794.30 
$4,984.20 
$5,092.80
O–2E
3,724.80 
3,918.60 
4,068.60 
4,180.20 
4,180.20
O–1E
3,154.50 
3,269.40 
3,382.20 
3,537.00 
3,537.00
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E
$5,241.30 
$5,241.30 
$5,241.30 
$5,241.30 
$5,241.30
O–2E
4,180.20 
4,180.20 
4,180.20 
4,180.20 
4,180.20
O–1E
3,537.00 
3,537.00 
3,537.00 
3,537.00 
3,537.00
WARRANT OFFICERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
W–5 ...
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 ...
3,119.40 
3,355.80 
3,452.40 
3,547.20 
3,710.40
W–3 ...
2,848.80 
2,967.90 
3,089.40 
3,129.30 
3,257.10
W–2 ...
2,505.90 
2,649.00 
2,774.10 
2,865.30 
2,943.30
W–1 ...
2,212.80 
2,394.00 
2,515.20 
2,593.50 
2,802.30
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ...
$0.00 
$0.00 
$0.00 
$0.00 
$0.00
W–4 ...
3,871.50 
4,035.00 
4,194.30 
4,359.00 
4,617.30
W–3 ...
3,403.20 
3,595.80 
3,786.30 
3,988.80 
4,140.60
W–2 ...
3,157.80 
3,321.60 
3,443.40 
3,562.20 
3,643.80
W–1 ...
2,928.30 
3,039.90 
3,164.70 
3,247.20 
3,321.90
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ...
$0.00 
$5,360.70 
$5,544.30 
$5,728.80 
$5,914.20
W–4 ...
4,782.60 
4,944.30 
5,112.00 
5,277.00 
5,445.90
W–3 ...
4,291.80 
4,356.90 
4,424.10 
4,570.20 
4,716.30 
W–2 ...
3,712.50 
3,843.00 
3,972.60 
4,103.70 
4,103.70
W–1 ...
3,443.70 
3,535.80 
3,535.80 
3,535.80 
3,535.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for war-
rant officers may not exceed the rate of pay for level V of the Executive Schedule.
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ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2
Over 3
Over 4
Over 6
E–9 2
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
E–8 ....
0.00 
0.00 
0.00 
0.00 
0.00 
E–7 ....
2,145.00 
2,341.20 
2,430.60 
2,549.70 
2,642.10
E–6 ....
1,855.50 
2,041.20 
2,131.20 
2,218.80 
2,310.00
E–5 ....
1,700.10 
1,813.50 
1,901.10 
1,991.10 
2,130.60
E–4 ....
1,558.20 
1,638.30 
1,726.80 
1,814.10 
1,891.50
E–3 ....
1,407.00 
1,495.50 
1,585.50 
1,585.50 
1,585.50
E–2 ....
1,337.70 
1,337.70 
1,337.70 
1,337.70 
1,337.70
E–1 3
1,193.40 
1,193.40 
1,193.40 
1,193.40 
1,193.40
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00 
$3,769.20 
$3,854.70 
$3,962.40 
$4,089.30
E–8 ....
3,085.50 
3,222.00 
3,306.30 
3,407.70 
3,517.50
E–7 ....
2,801.40 
2,891.10 
2,980.20 
3,139.80 
3,219.60
E–6 ....
2,516.10 
2,596.20 
2,685.30 
2,763.30 
2,790.90
E–5 ....
2,250.90 
2,339.70 
2,367.90 
2,367.90 
2,367.90
E–4 ....
1,891.50 
1,891.50 
1,891.50 
1,891.50 
1,891.50
E–3 ....
1,585.50 
1,585.50 
1,585.50 
1,585.50 
1,585.50
E–2 ....
1,337.70 
1,337.70 
1,337.70 
1,337.70 
1,337.70
E–1 3
1,193.40 
1,193.40 
1,193.40 
1,193.40 
1,193.40
Over 18 
Over 20
Over 22
Over 24
Over 26
E–9 2
$4,216.50 
$4,421.10 
$4,594.20 
$4,776.60 
$5,054.70 
E–8 ....
3,715.50 
3,815.70 
3,986.40 
4,081.20 
4,314.30
E–7 ....
3,295.50 
3,341.70 
3,498.00 
3,599.10 
3,855.00
E–6 ....
2,809.80 
2,809.80 
2,809.80 
2,809.80 
2,809.80
E–5 ....
2,367.90 
2,367.90 
2,367.90 
2,367.90 
2,367.90
E–4 ....
1,891.50 
1,891.50 
1,891.50 
1,891.50 
1,891.50
E–3 ....
1,585.50 
1,585.50 
1,585.50 
1,585.50 
1,585.50
E–2 ....
1,337.70 
1,337.70 
1,337.70 
1,337.70 
1,337.70
E–1 3
1,193.40 
1,193.40 
1,193.40 
1,193.40 
1,193.40
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for en-
listed members may not exceed the rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while 
serving as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Ser-
geant of the Air Force, Sergeant Major of the Marine Corps, or Master Chief Petty Officer of the 
Coast Guard, is $6,090.90, regardless of cumulative years of service computed under section 205 of 
title 37, United States Code. 
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, the 
rate of basic pay is $1,104.00. 
SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS. 
(a) REQUIREMENT FOR ANNUAL ADJUSTMENT.—Sub-
section (a) of section 1009 of title 37, United States Code, 
is amended to read as follows: 
‘‘(a) REQUIREMENT FOR ANNUAL ADJUSTMENT.—Ef-
fective on January 1 of each year, the rates of basic pay
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for members of the uniformed services under section 203(a) 
of this title shall be increased under this section.’’. 
(b) EFFECTIVENESS OF ADJUSTMENT.—Subsection (b) 
of such section is amended by striking ‘‘shall—’’ and all 
that follows and inserting ‘‘shall have the force and effect 
of law.’’. 
(c) PERCENTAGE OF ADJUSTMENT.—Subsection (c) of 
such section is amended to read as follow: 
‘‘(c) EQUAL PERCENTAGE INCREASE FOR ALL MEM-
BERS.—(1) An adjustment made under this section in a 
year shall provide all eligible members with an increase in 
the monthly basic pay that is the percentage (rounded to 
the nearest one-tenth of 1 percent) by which the ECI for 
the base quarter of the year before the preceding year exceeds 
the ECI for the base quarter of the second year before the 
preceding calendar year (if at all). 
‘‘(2) Notwithstanding paragraph (1), but subject to 
subsection (d), the percentage of the adjustment taking effect 
under this section during each of fiscal years 2004, 2005, 
and 2006, shall be one-half of 1 percentage point higher 
than the percentage that would otherwise be applicable 
under such paragraph.’’. 
(d) REPEAL OF ALLOCATION AUTHORITY.—Such sec-
tion is further amended—
(1) by striking subsections (d), (e), and (g); and
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(2) redesignating subsection (f) as subsection (d). 
(e) PRESIDENTIAL DETERMINATION OF NEED FOR AL-
TERNATIVE PAY ADJUSTMENT.—Such section, as amended 
by subsection (d), is further amended adding at the end the 
following new subsection: 
‘‘(e) PRESIDENTIAL DETERMINATION OF NEED FOR 
ALTERNATIVE PAY ADJUSTMENT.—(1) If, because of na-
tional emergency or serious economic conditions affecting 
the general welfare, the President considers the pay adjust-
ment which would otherwise be required by this section in 
any year to be inappropriate, the President shall prepare 
and transmit to Congress before September 1 of the pre-
ceding year a plan for such alternative pay adjustments 
as the President considers appropriate, together with the 
reasons therefor. 
‘‘(2) In evaluating an economic condition affecting the 
general welfare under this subsection, the President shall 
consider pertinent economic measures including the Indexes 
of Leading Economic Indicators, the Gross National Prod-
uct, the unemployment rate, the budget deficit, the Con-
sumer Price Index, the Producer Price Index, the Employ-
ment Cost Index, and the Implicit Price Deflator for Per-
sonal Consumption Expenditures. 
‘‘(3) The President shall include in the plan submitted 
to Congress under paragraph (1) an assessment of the im-
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pact that the alternative pay adjustments proposed in the 
plan would have on the Government’s ability to recruit and 
retain well-qualified persons for the uniformed services.’’. 
(f) DEFINITIONS.—Such section, as amended by sub-
section (e), is further amended by adding at the end the 
following: 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘ECI’ means the Employment 
Cost Index (wages and salaries, private industry 
workers) published quarterly by the Bureau of Labor 
Statistics. 
‘‘(2) The term ‘base quarter’ for any year is the 
3-month period ending on September 30 of such 
year.’’. 
SEC. 603. COMPUTATION OF BASIC PAY RATE FOR COMMIS-
SIONED OFFICERS WITH PRIOR ENLISTED OR 
WARRANT OFFICER SERVICE. 
Section 203(d)(2) of title 37, United States Code, is 
amended—
(1) in subparagraph (A), by striking ‘‘enlisted 
member,’’ and all that follows through the period and 
inserting ‘‘enlisted member.’’; and 
(2) by striking subparagraph (B) and inserting 
the following new subparagraph:
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‘‘(B) Service as a warrant officer, as an enlisted 
member, or as a warrant officer and an enlisted 
member, for which at least 1,460 points have been 
credited to the officer for the purposes of section 
12732(a)(2) of title 10.’’. 
SEC. 604. PILOT PROGRAM OF MONTHLY SUBSISTENCE AL-
LOWANCE FOR NON-SCHOLARSHIP SENIOR 
ROTC MEMBERS COMMITTING TO CONTINUE 
ROTC PARTICIPATION AS SOPHOMORES. 
(a) AUTHORITY.—Section 209 of title 37, United 
States Code, is amended by adding at the end the following 
new subsection: 
‘‘(e) NON-SCHOLARSHIP SENIOR ROTC MEMBERS 
NOT IN ADVANCED TRAINING.—(1) A member of the Senior 
Reserve Officers’ Training Corps described in subsection (b) 
is entitled to a monthly subsistence allowance at a rate pre-
scribed under subsection (a). 
‘‘(2) To be entitled to receive a subsistence allowance 
under this subsection, a member must—
‘‘(A) be a citizen of the United States; 
‘‘(B) enlist in an armed force under the jurisdic-
tion of the Secretary of the military department con-
cerned for the period prescribed by the Secretary; 
‘‘(C) contract, with the consent of his parent or 
guardian if he is a minor, with the Secretary of the
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military department concerned, or his designated rep-
resentative, to serve for the period required by the 
program; 
‘‘(D) agree in writing that he will accept an ap-
pointment, if offered, as a commissioned officer in the 
Army, Navy, Air Force, or Marine Corps, as the case 
may be, and that he will serve in the armed forces for 
the period prescribed by the Secretary; 
‘‘(E) successfully complete the first year of a 
four-year Senior Reserve Officers’ Training Corps 
course; 
‘‘(F) not be eligible for advanced training under 
section 2104 of title 10; 
‘‘(G) not be appointed under section 2107 of title 
10; and 
‘‘(H) execute a certificate of loyalty in such form 
as the Secretary of Defense prescribes or take a loy-
alty oath as prescribed by the Secretary. 
‘‘(3) The first month for which a monthly subsistence 
allowance is payable to a member under this subsection 
shall be a month designated by the Secretary of the military 
department concerned that begins after the member satisfies 
the condition in subparagraph (E) of paragraph (2). Pay-
ment of the subsistence allowance shall continue for as long 
as the member continues to meet the conditions in such
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paragraph and the member’s obligations under the enlist-
ment, contract, and agreement entered into as described in 
such paragraph. In no event, however, may a member re-
ceive the monthly subsistence allowance for more than 20 
months. 
‘‘(4) In this subsection, the term ‘program’ means the 
Senior Reserve Officers’ Training Corps of an armed force. 
‘‘(5) No subsistence allowance may be paid under this 
subsection with respect to a contract that is entered into 
as described in paragraph (2)(C) after December 31, 2006.’’. 
(b) EFFECTIVE DATE.—Subsection (e) of section 209 
of title 37, United States Code (as added by subsection (a)), 
shall take effect on January 1, 2004. 
SEC. 605. BASIC ALLOWANCE FOR HOUSING FOR EACH 
MEMBER MARRIED TO ANOTHER MEMBER 
WITHOUT 
DEPENDENTS 
WHEN 
BOTH 
SPOUSES ARE ON SEA DUTY. 
(a) ENTITLEMENT.—Section 403(f)(2)(C) of title 37, 
United States Code, is amended—
(1) in the first sentence, by striking ‘‘are jointly 
entitled to one basic allowance for housing’’ and in-
serting ‘‘are each entitled to a basic allowance for 
housing’’; and 
(2) by striking ‘‘The amount of the allowance’’ 
and all that follows and inserting ‘‘The amount of the
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allowance payable to a member under the preceding 
sentence shall be based on the without dependents rate 
for the pay grade of the member.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2003. 
SEC. 606. INCREASED RATE OF FAMILY SEPARATION AL-
LOWANCE. 
(a) RATE.—Section 427(a)(1) of title 37, United 
States Code, is amended by striking ‘‘$100’’ and inserting 
‘‘$250’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003. 
Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR RESERVE 
FORCES. 
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f ) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’. 
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’.
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(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED 
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of 
such title is amended by striking ‘‘December 31, 2003’’ and 
inserting ‘‘December 31, 2004’’. 
(d) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(e) READY RESERVE ENLISTMENT
AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section 
308i(f ) of such title is amended by striking ‘‘December 31, 
2003’’ and inserting ‘‘December 31, 2004’’. 
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR CERTAIN 
HEALTH CARE PROFESSIONALS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code, 
is amended by striking ‘‘December 31, 2003’’ and inserting 
‘‘December 31, 2004’’. 
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN 
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED 
RESERVE.—Section 16302(d) of such title is amended by
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striking ‘‘January 1, 2004’’ and inserting ‘‘January 1, 
2005’’. 
(c) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2003’’ and inserting 
‘‘December 31, 2004’’. 
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH 
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIAL-
TIES.—Section 302g(f ) of such title is amended by striking 
‘‘December 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Sec-
tion 302h(a)(1) of such title is amended by striking ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND 
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS 
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e) 
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’.
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(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 31, 
2003’’ and inserting ‘‘December 31, 2004’’. 
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND 
SPECIAL PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Section 
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—Sec-
tion 309(e) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(d) RETENTION BONUS FOR MEMBERS WITH CRITICAL 
MILITARY SKILLS.—Section 323(i) of such title is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’. 
(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by
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striking ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
SEC. 615. SPECIAL PAY FOR RESERVE OFFICERS HOLDING 
POSITIONS OF UNUSUAL RESPONSIBILITY 
AND OF CRITICAL NATURE. 
(a) ELIGIBILITY.—Section 306 of title 37, United 
States Code, is amended—
(1) in subsection (a), by inserting ‘‘under section 
201 of this title, or the compensation under section 
206 of this title,’’ after ‘‘is entitled to the basic pay’’; 
(2) by redesignating subsections (b) through (e) 
as subsections (c) through (f), respectively; and 
(3) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b) In the case of an officer who is a member of a 
reserve component, special pay under subsection (a) shall 
be paid at the rate of 1⁄30 of the monthly rate authorized 
by that subsection for each day of the performance of duties 
described in that subsection.’’. 
(b) LIMITATION.—Subsection (d) of such section, as re-
designated by subsection (a)(2) of this section, is amend-
ed—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following new para-
graph:
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‘‘(2) Of the number of officers in the Selected Reserve 
of the Ready Reserve of an armed force who are not on ac-
tive duty (other than for training), not more than 5 percent 
of the number of such officers in each of the pay grades 
O–3 and below, and not more than 10 percent of the number 
of such officers in pay grade O–4, O–5, or O–6, may be 
paid special pay under subsection (b).’’. 
SEC. 616. ASSIGNMENT INCENTIVE PAY FOR SERVICE IN 
KOREA. 
(a) AUTHORITY.—(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 307a the 
following new section: 
‘‘§ 307b. Special pay: Korea service incentive pay 
‘‘(a) AUTHORITY.—The Secretary concerned shall pay 
monthly incentive pay under this section to a member of 
a uniformed service for the period that the member performs 
service in Korea while entitled to basic pay. 
‘‘(b) RATE.—The monthly rate of incentive pay pay-
able to a member under this section is $100. 
‘‘(c) RELATIONSHIP
TO OTHER PAY
AND ALLOW-
ANCES.—Incentive pay paid to a member under this section 
is in addition to any other pay and allowances to which 
the member is entitled. 
‘‘(d) STATUS NOT AFFECTED BY TEMPORARY DUTY OR 
LEAVE.—The service of a member in an assignment referred
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to in subsection (a) shall not be considered discontinued 
during any period that the member is not performing serv-
ice in the assignment by reason of temporary duty per-
formed by the member pursuant to orders or absence of the 
member for authorized leave. 
‘‘(e) TERMINATION OF AUTHORITY.—Special pay may 
not be paid under this section for months beginning after 
December 31, 2005.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
307a the following new item:
‘‘307b. Special pay: Korea service incentive pay.’’.
(b) EFFECTIVE DATE.—Section 307(b) of title 37, 
United States Code (as added by subsection (a)), shall take 
effect on October 1, 2003. 
SEC. 617. INCREASED MAXIMUM AMOUNT OF REENLIST-
MENT BONUS FOR ACTIVE MEMBERS. 
(a) MAXIMUM AMOUNT.—Section 308(a)(2)(B) of title 
37, United States Code, is amended by striking ‘‘$60,000’’ 
and inserting ‘‘$70,000’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003, and shall 
apply with respect to reenlistments and extensions of enlist-
ments that take effect on or after that date.