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(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section may
not exceed $3,000,000,000.
(b) LIMITATIONS.—The authority provided by this sec-
tion to transfer authorizations—
(1) may only be used to provide authority for
items that have a higher priority than the items from
which authority is transferred; and
(2) may not be used to provide authority for an
item that has been denied authorization by Congress.
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred
by an amount equal to the amount transferred.
(d) NOTICE
TO
CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under sub-
section (a).
SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COM-
MON-FUNDED BUDGETS IN FISCAL YEAR 2004.
(a) FISCAL
YEAR
2004 LIMITATION.—The total
amount contributed by the Secretary of Defense in fiscal
year 2004 for the common-funded budgets of NATO may
be any amount up to, but not in excess of, the amount speci-
fied in subsection (b) (rather than the maximum amount
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that would otherwise be applicable to those contributions
under the fiscal year 1998 baseline limitation).
(b) TOTAL AMOUNT.—The amount of the limitation
applicable under subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of
the end of fiscal year 2003, of funds appropriated for
fiscal years before fiscal year 2004 for payments for
those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions author-
ized to be made under section 2501.
(c) AUTHORIZED AMOUNTS.—Amounts authorized to
be appropriated by titles II and III of this Act are available
for contributions for the common-funded budgets of NATO
as follows:
(1) Of the amount provided in section 201(1),
$853,000 for the Civil Budget.
(2) Of the amount provided in section 301(1),
$207,125,000 for the Military Budget.
(d) DEFINITIONS.—For purposes of this section:
(1) COMMON-FUNDED BUDGETS OF NATO.—The
term ‘‘common-funded budgets of NATO’’ means the
Military Budget, the Security Investment Program,
and the Civil Budget of the North Atlantic Treaty Or-
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ganization (and any successor or additional account
or program of NATO).
(2) FISCAL YEAR 1998 BASELINE LIMITATION.—
The term ‘‘fiscal year 1998 baseline limitation’’
means the maximum annual amount of Department
of Defense contributions for common-funded budgets of
NATO that is set forth as the annual limitation in
section 3(2)(C)(ii) of the resolution of the Senate giv-
ing the advice and consent of the Senate to the ratifi-
cation of the Protocols to the North Atlantic Treaty
of 1949 on the Accession of Poland, Hungary, and the
Czech Republic (as defined in section 4(7) of that res-
olution), approved by the Senate on April 30, 1998.
SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 2003.
(a) DOD AND DOE AUTHORIZATIONS.—Amounts au-
thorized to be appropriated to the Department of Defense
and the Department of Energy for fiscal year 2003 in the
Bob Stump National Defense Authorization Act for Fiscal
Year 2003 (Public Law 107–314) are hereby adjusted, with
respect to any such authorized amount, by the amount by
which appropriations pursuant to such authorization are
increased (by a supplemental appropriation) or decreased
(by a rescission), or both, or are increased by a transfer
of funds, pursuant to title I of Public Law 108–11.
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(b) REPORT ON FISCAL YEAR 2003 TRANSFERS.—Not
later than 30 days after the end of each fiscal quarter for
which unexpended balances of funds appropriated under
title I of Public Law 108–11 are available for the Depart-
ment of Defense, the Secretary of Defense shall submit to
the congressional defense committees a report stating, for
each transfer of such funds during such fiscal quarter of
an amount provided for the Department of Defense through
a so-called ‘‘transfer account’’, including the Iraqi Freedom
Fund or any other similar account—
(1) the amount of the transfer;
(2) the appropriation account to which the
transfer was made; and
(3) the specific purpose for which the transferred
funds were used or are to be used.
Subtitle B—Improvement of Travel
Card Management
SEC. 1011. MANDATORY DISBURSEMENT OF TRAVEL AL-
LOWANCES 
DIRECTLY 
TO 
TRAVEL 
CARD
CREDITORS.
Section 2784a(a) of title 10, United States Code, is
amended—
(1) in paragraph (1), by striking ‘‘The Secretary
of Defense may require’’ and inserting ‘‘The Secretary
of Defense shall require’’;
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(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
‘‘(2) The Secretary of Defense may waive the require-
ment for a direct payment to a travel care issuer under
paragraph (1) in any case in which it is determined under
regulations prescribed by the Secretary that the direct pay-
ment would be against equity and good conscience or would
be contrary to the best interests of the United States.’’.
SEC. 1012. DETERMINATIONS OF CREDITWORTHINESS FOR
ISSUANCE OF DEFENSE TRAVEL CARD.
Section 2784a of title 10, United States Code, is
amended—
(1) by redesignating subsections (d) and (e) as
subsections (e) and (f), respectively; and
(2) by inserting after subsection (c) the following
new subsection (d):
‘‘(d) DETERMINATIONS OF CREDITWORTHINESS FOR
ISSUANCE OF DEFENSE TRAVEL CARD.—(1) The Secretary
of Defense shall require that the creditworthiness of an indi-
vidual be evaluated before a Defense travel card is issued
to the individual. The evaluation may include an examina-
tion of the individual’s credit history in available credit
records.
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‘‘(2) An individual may not be issued a Defense travel
card if the individual is found not creditworthy as a result
of the evaluation required under paragraph (1).’’.
SEC. 1013. DISCIPLINARY ACTIONS AND ASSESSING PEN-
ALTIES FOR MISUSE OF DEFENSE TRAVEL
CARDS.
(a) REQUIREMENT FOR GUIDANCE.—The Secretary of
Defense shall prescribe guidelines and procedures for mak-
ing determinations regarding the taking of disciplinary ac-
tion, including assessment of penalties, against Department
of Defense personnel for improper, fraudulent, or abusive
use of Defense travel cards by such personnel.
(b) ACTIONS COVERED.—The disciplinary actions and
penalties covered by the guidance and procedures prescribed
under subsection (a) may include the following:
(1) Civil actions for false claims under sections
3729 through 3731 of title 31, United States Code.
(2) Administrative remedies for false claims and
statements provided under chapter 38 of title 31,
United States Code.
(3) In the case of civilian personnel, adverse per-
sonnel actions under chapter 75 of title 5, United
States Code, and any other disciplinary actions
available under law for employees of the United
States.
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(4) In the case of members of the Armed Forces,
disciplinary actions and penalties under chapter 47
of title 10, United States Code (the Uniform Code of
Military Justice).
(c) REPORT.—Not later than February 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 guidelines and penalties prescribed
under subsection (a). The report shall include the following:
(1) The guidelines and penalties.
(2) A discussion of the implementation of the
guidelines and penalties.
(3) A discussion of any additional administra-
tive action, or any recommended legislation, that the
Secretary considers necessary to effectively take dis-
ciplinary action against and penalize Department of
Defense personnel for improper, fraudulent, or abu-
sive use of Defense travel cards by such personnel.
(d) DEFENSE TRAVEL CARD DEFINED.—In this sec-
tion, the term ‘‘Defense travel card’’ has the meaning given
such term in section 2784a(d)(1) of title 10, United States
Code.
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Subtitle C—Reports
SEC. 1021. ELIMINATION AND REVISION OF VARIOUS RE-
PORTING REQUIREMENTS APPLICABLE TO
THE DEPARTMENT OF DEFENSE.
(a) PROVISIONS OF TITLE 10.—Title 10, United States
Code, is amended as follows:
(1) Section 128 is amended by striking sub-
section (d).
(2) Section 437 is amended—
(A) by striking subsection (b); and
(B) in subsection (c)—
(i) by striking ‘‘and’’ at the end of
paragraph (2);
(ii) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(iii) by adding at the end the following
new paragraph:
‘‘(4) a description of each corporation, partner-
ship, and other legal entity that was established dur-
ing such fiscal year.’’.
(3)(A) Section 520c is amended—
(i) by striking subsection (b);
(ii) by striking ‘‘(a) PROVISION OF MEALS
AND REFRESHMENTS.—’’; and
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(iii) by striking the heading for such section
and inserting the following:
‘‘§ 520c. Provision of meals and refreshments for re-
cruiting purposes’’.
(B) The item relating to such section in the table
of sections at the beginning of chapter 31 of such title
is amended to read as follow:
‘‘520c. Provision of meals and refreshments for recruiting purposes.’’.
(4) Section 986 is amended by striking sub-
section (e).
(5) Section 1060 is amended by striking sub-
section (d).
(6) Section 2212 is amended by striking sub-
sections (d) and (e).
(7) Section 2224 is amended by striking sub-
section (e).
(8) Section 2255(b) is amended—
(A) by striking paragraph (2);
(B) by striking ‘‘(b) EXCEPTION.—(1)’’ and
inserting ‘‘(b) EXCEPTION.—’’;
(C) by redesignating subparagraphs (A)
and (B) as paragraphs (1) and (2), respectively;
and
(D) by redesignating clauses (i), (ii), and
(iii) as subparagraphs (A), (B), and (C), respec-
tively.
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(9) Section 2323(i) is amended by striking para-
graph (3).
(10) Section 2350a is amended by striking sub-
section (f).
(11) Section 2350b(d) is amended—
(A) by striking paragraphs (1) and (2) and
inserting the following new paragraph:
‘‘(1) Not later than 90 days after the end of each fiscal
year in which the Secretary of Defense has authority dele-
gated as described in subsection (a), the Secretary shall sub-
mit to Congress a report on the administration of such au-
thority under this section. The report for a fiscal year shall
include the following information:
‘‘(A) Each prime contract that the Secretary re-
quired to be awarded to a particular prime contractor
during such fiscal year, and each subcontract that the
Secretary required be awarded to a particular subcon-
tractor during such fiscal year, to comply with a co-
operative agreement, together with the reasons that
the Secretary exercised authority to designate a par-
ticular contractor or subcontractor, as the case may
be.
‘‘(B) Each exercise of the waiver authority under
subsection (c) during such fiscal year, including the
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particular provision or provisions of law that were
waived.’’; and
(B) by redesignating paragraph (3) as
paragraph (2).
(12) Section 2371(h) is amended by adding at
the end the following new paragraph:
‘‘(3) No report is required under this section for fiscal
years after fiscal year 2006.’’.
(13) Section 2515(d) is amended—
(A) by striking ‘‘ANNUAL REPORT.—’’ and
inserting ‘‘BIENNIAL REPORT.—’’; and
(B) in paragraph (1)—
(i) in the second sentence, by striking
‘‘each year’’ and inserting ‘‘each even-num-
bered year’’; and
(ii) in the third sentence, by striking
‘‘during the fiscal year’’ and inserting
‘‘during the two fiscal years’’.
(14) Section 2541d is amended—
(A) by striking subsection (b); and
(B) by striking ‘‘(a) REPORT BY COMMER-
CIAL FIRMS TO SECRETARY OF DEFENSE.—’’.
(15) Section 2645(d) is amended—
(A) by striking ‘‘to Congress’’ and all that
follows through ‘‘notification of the loss’’ in
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paragraph (1) and inserting ‘‘to Congress notifi-
cation of the loss’’;
(B) by striking ‘‘loss; and’’ and inserting
‘‘loss.’’; and
(C) by striking paragraph (2).
(16) Section 2680 is amended by striking sub-
section (e).
(17) Section 2688(e) is amended to read as fol-
lows:
‘‘(e) QUARTERLY REPORT.—(1) Not later than 30 days
after the end of each quarter of a fiscal year, the Secretary
shall submit to the congressional defense committees a re-
port on the conveyances made under subsection (a) during
such fiscal quarter. The report shall include, for each such
conveyance, an economic analysis (based upon accepted life-
cycle costing procedures approved by the Secretary of De-
fense) demonstrating that—
‘‘(A) the long-term economic benefit of the con-
veyance to the United States exceeds the long-term
economic cost of the conveyance to the United States;
and
‘‘(B) the conveyance will reduce the long-term
costs of the United States for utility services provided
by the utility system concerned.
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‘‘(2) In this section, the term ‘congressional defense
committees’ means the following:
‘‘(A) The Committee on Armed Services and the
Committee on Appropriations of the Senate.
‘‘(B) The Committee on Armed Services and the
Committee on Appropriations of the House of Rep-
resentatives.’’.
(18) Section 2807(b) is amended by striking
‘‘$500,000’’ and inserting ‘‘$1,000,000’’.
(19) Section 2827 is amended—
(A) by striking subsection (b); and
(B) by striking ‘‘(a) Subject to subsection
(b), the Secretary’’ and inserting ‘‘The Sec-
retary’’.
(20) Section 2902(g) is amended—
(A) by striking paragraph (2); and
(B) by striking ‘‘(g)(1)’’ and inserting
‘‘(g)’’.
(21) Section 9514 is amended—
(A) in subsection (c)—
(i) by striking ‘‘to Congress’’ and all
that follows through ‘‘notification of the
loss’’ in paragraph (1) and inserting ‘‘to
Congress notification of the loss’’;
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(ii) by striking ‘‘loss; and’’ and insert-
ing ‘‘loss.’’; and
(iii) by striking paragraph (2); and
(B) by striking subsection (f).
(b) NATIONAL DEFENSE AUTHORIZATION ACT FOR
FISCAL YEARS 1992 AND 1993.—Section 734 of the Na-
tional Defense Authorization Act for Fiscal Years 1992 and
1993 (Public Law 102–190; 105 Stat. 1411; 10 U.S.C. 1074
note) is amended by striking subsection (c).
(c) NATIONAL DEFENSE AUTHORIZATION ACT
FOR
FISCAL YEAR 1993.—Section 324 of the National Defense
Authorization Act for Fiscal Year 1993 (Public Law 102–
484; 106 Stat. 2367; 10 U.S.C. 2701 note) is amended—
(1) by striking subsection (b); and
(2) in subsection (a), by striking ‘‘(a) SENSE OF
CONGRESS.—’’.
(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR
FISCAL YEAR 1995.—Section 721 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 108 Stat. 2804; 10 U.S.C. 1074 note) is amended by
striking subsection (h).
(e) NATIONAL DEFENSE AUTHORIZATION ACT
FOR
FISCAL YEAR 1997.—Section 324(c) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104–
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201; 110 Stat. 2480; 10 U.S.C. 2706 note) is amended by
inserting ‘‘before 2006’’ after ‘‘submitted to Congress’’.
(f) STROM THURMOND NATIONAL DEFENSE AUTHOR-
IZATION ACT FOR FISCAL YEAR 1999.—The Strom Thur-
mond National Defense Authorization Act for Fiscal Year
1999 (Public Law 105–261) is amended—
(1) in section 745(e) (112 Stat. 2078; 10 U.S.C.
1071 note)—
(A) by striking paragraph (2); and
(B) by striking ‘‘TRICARE.—(1) The’’ and
inserting ‘‘TRICARE.—The’’ ; and
(2) effective on January 1, 2004, by striking sec-
tion 1223 (112 Stat. 2154; 22 U.S.C. 1928 note).
(g) NATIONAL DEFENSE AUTHORIZATION ACT FOR
FISCAL YEAR 2000.—The National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106–65) is
amended—
(1) by striking section 1025 (113 Stat. 748; 10
U.S.C. 113 note);
(2) in section 1039 (113 Stat. 756; 10 U.S.C.
113 note), by striking subsection (b); and
(3) in section 1201 (113 Stat. 779; 10 U.S.C.
168 note) by striking subsection (d).
(h) DEPARTMENT OF DEFENSE AND EMERGENCY SUP-
PLEMENTAL APPROPRIATIONS FOR RECOVERY FROM AND
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RESPONSE
TO TERRORIST ATTACKS
ON
THE UNITED
STATES ACT, 2002.—Section 8009 of the Department of De-
fense and Emergency Supplemental Appropriations for Re-
covery from and Response to Terrorist Attacks on the
United States Act, 2002 (Public Law 107–117; 115 Stat.
2249) is amended by striking ‘‘, and these obligations shall
be reported to the Congress as of September 30 of each
year’’.
SEC. 1022. GLOBAL STRIKE PLAN.
(a) 
INTEGRATED
PLAN
FOR
PROMPT
GLOBAL
STRIKE.—The Secretary of Defense shall prescribe an inte-
grated plan for developing, deploying, and sustaining a
prompt global strike capability in the Armed Forces. The
Secretary shall update the plan annually.
(b) REPORTS REQUIRED.—(1) Not later than April 1
of each of 2004, 2005, and 2006, the Secretary shall submit
to the congressional defense committees a report on the plan
prescribed under subsection (a).
(2) Each report required under paragraph (1) shall
include the following:
(A) A description and assessment of the targets
against which long-range strike assets might be di-
rected and the conditions under which the assets
might be used.
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(B) The role of, and plans for ensuring,
sustainment and modernization of current long-range
strike assets, including bombers, intercontinental bal-
listic missiles, and submarine launched ballistic mis-
siles.
(C) A description of the capabilities desired for
advanced long-range strike assets and plans to achieve
those capabilities.
(D) A description of the capabilities desired for
advanced conventional munitions and the plans to
achieve those capabilities.
(E) An assessment of advanced nuclear concepts
that could contribute to the prompt global strike mis-
sion.
(F) An assessment of the command, control, and
communications capabilities necessary to support
prompt global strike capabilities.
(G) An assessment of intelligence, surveillance,
and reconnaissance capabilities necessary to support
prompt global strike capabilities.
(H) A description of how prompt global strike
capabilities are to be integrated with theater strike
capabilities.
(I) An estimated schedule for achieving the de-
sired prompt global strike capabilities.
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(J) The estimated cost of achieving the desired
prompt global strike capabilities.
(K) A description of ongoing and future studies
necessary for updating the plan appropriately.
SEC. 1023. REPORT ON THE CONDUCT OF OPERATION
IRAQI FREEDOM.
(a) REPORT REQUIRED.—(1) The Secretary of Defense
shall summit to the congressional defense committees, not
later than March 31, 2004, a report on the conduct of mili-
tary operations under Operation Iraqi Freedom.
(2) The report shall be prepared in consultation with
the Chairman of the Joint Chiefs of Staff, the Commander
of the United States Central Command, and such other offi-
cials as the Secretary considers appropriate.
(b) CONTENT.—(1) The report shall include a discus-
sion of the matters described in paragraph (2), with a par-
ticular emphasis on accomplishments and shortcomings and
on near-term and long-term corrective actions to address
the shortcomings.
(2) The matters to be discussed in the report are as
follows:
(A) The military objectives of the international
coalition conducting Operation Iraqi Freedom, the
military strategy selected to achieve the objectives,
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and an assessment of the execution of the military
strategy.
(B) The deployment process, including the
adaptability of the process to unforeseen contingencies
and changing requirements.
(C) The reserve component mobilization process,
including the timeliness of notification, training, and
subsequent demobilization.
(D) The use and performance of major items of
United States military equipment, weapon systems,
and munitions (including items classified under spe-
cial access procedures and items drawn from
prepositioned stocks) and any expected effects of the
experience with the use and performance of those
items on the doctrinal and tactical employment of
such items and on plans for continuing the acquisi-
tion of such items.
(E) Any additional identified requirements for
military equipment, weapon systems, and munitions,
including mix and quantity for future contingencies.
(F) The effectiveness of joint air operations, in-
cluding the doctrine for the employment of close air
support in the varied environments of Operation
Iraqi Freedom, and the effectiveness of attack heli-
copter operations.
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(G) The use of special operations forces, includ-
ing operational and intelligence uses.
(H) The scope of logistics support, including
support from other nations.
(I) The incidents of accidental fratricide, to-
gether with a discussion of the effectiveness of the
tracking of friendly forces and of the combat identi-
fication systems in mitigating friendly fire incidents.
(J) The adequacy of spectrum and bandwidth to
transmit all necessary information to operational
forces and assets, including unmanned aerial vehicles,
ground vehicles, and individual soldiers.
(K) The effectiveness of information operations,
including the effectiveness of Commando Solo and
other psychological operations assets, in achieving es-
tablished objectives, together with a description of
technological and other restrictions on the use of psy-
chological operations capabilities.
(L) The effectiveness of the reserve component
forces used in Operation Iraqi Freedom.
(M) The adequacy of intelligence support to the
warfighter before, during, and after combat oper-
ations, including the adequacy of such support to fa-
cilitate searches for weapons of mass destruction.
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(N) The rapid insertion and integration, if any,
of developmental but mission-essential equipment dur-
ing all phases of the operation.
(O) The most critical lessons learned that could
lead to long-term doctrinal, organizational, and tech-
nological changes, and the probable effects that an im-
plementation of those changes would have on current
visions, goals, and plans for transformation of the
Armed Forces.
(P) The results of a study, carried out by the
Secretary of Defense, regarding the availability of
family support services provided to the dependents of
members of the National Guard and other reserve
components of the Armed Forces who are called or or-
dered to active duty (hereinafter in this subparagraph
referred to as ‘‘mobilized members’’), including, at a
minimum, the following matters:
(i) A discussion of the extent to which coop-
erative agreements are in place or need to be en-
tered into to ensure that dependents of mobilized
members receive adequate family support services
from within existing family readiness groups at
military installations without regard to the
members’ armed force or component of an armed
force.
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(ii) A discussion of what additional family
support services, and what additional family
support agreements between and among the
Armed Forces (including the Coast Guard), are
necessary to ensure that adequate family support
services are provided to the families of mobilized
members.
(iii) A discussion of what additional re-
sources are necessary to ensure that adequate
family support services are available to the de-
pendents of each mobilized member at the mili-
tary installation nearest the residence of the de-
pendents.
(iv) The additional outreach programs that
should be established between families of mobi-
lized members and the sources of family support
services at the military installations in their re-
spective regions.
(v) A discussion of the procedures in place
for providing information on availability of
family support services to families of mobilized
members at the time the members are called or
ordered to active duty.
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(c) FORMS OF REPORT.—The report shall be submitted
in unclassified form, but may also be submitted in classified
form if necessary.
(d) REPORTING REQUIREMENT RELATING TO NON-
COMPETITIVE CONTRACTING FOR THE RECONSTRUCTION OF
INFRASTRUCTURE OF IRAQ.—(1) If a contract for the main-
tenance, rehabilitation, construction, or repair of infra-
structure in Iraq is entered into under the oversight and
direction of the Secretary of Defense or the Office of Recon-
struction and Humanitarian Assistance in the Office of the
Secretary of Defense without full and open competition, the
Secretary shall publish in the Federal Register or Commerce
Business Daily and otherwise make available to the public,
not later than 30 days after the date on which the contract
is entered into, the following information:
(i) The amount of the contract.
(ii) A brief description of the scope of the con-
tract.
(iii) A discussion of how the executive agency
identified, and solicited offers from, potential contrac-
tors to perform the contract, together with a list of the
potential contractors that were issued solicitations for
the offers.
(iv) The justification and approval documents on
which was based the determination to use procedures
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other than procedures that provide for full and open
competition.
(B) Subparagraph (A) does not apply to a contract
entered into more than one year after date of enactment.
(2)(A) The head of an executive agency may—
(i) withhold from publication and disclosure
under paragraph (1) any document that is classified
for restricted access in accordance with an Executive
order in the interest of national defense or foreign
policy; and
(ii) redact any part so classified that is in a
document not so classified before publication and dis-
closure of the document under paragraph (1).
(B) In any case in which the head of an executive
agency withholds information under subparagraph (A), the
head of such executive agency shall make available an
unredacted version of the document containing that infor-
mation to the chairman and ranking member of each of
the following committees of Congress:
(i) The Committee on Governmental Affairs of
the Senate and the Committee on Government Reform
of the House of Representatives.
(ii) The Committees on Appropriations of the
Senate and the House of Representatives.
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(iii) Each committee that the head of the execu-
tive agency determines has legislative jurisdiction for
the operations of such department or agency to which
the information relates.
(3) This subsection shall apply to contracts entered
into on or after October 1, 2002, except that, in the case
of a contract entered into before the date of the enactment
of this Act, paragraph (1) shall be applied as if the contract
had been entered into on the date of the enactment of this
Act.
(4) Nothing in this subsection shall be construed as af-
fecting obligations to disclose United States Government in-
formation under any other provision of law.
(5) In this subsection, the terms ‘‘executive agency’’
and ‘‘full and open competition’’ have the meanings given
such terms in section 4 of the Office of Federal Procurement
Policy Act (41 U.S.C. 403).
SEC. 1024. REPORT ON MOBILIZATION OF THE RESERVES.
(a) REQUIREMENT FOR REPORT.—Not later than 90
days after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the Committees on Armed
Services of the Senate and the House of Representatives a
report on the mobilization of reserve component forces dur-
ing fiscal years 2002 and 2003.
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(b) CONTENT.—The report under subsection (a) shall
include, for the period covered by the report, the following
information:
(1) The number of Reserves who were called or
ordered to active duty under a provision of law re-
ferred to in section 101(a)(13)(B) of title 10, United
States Code.
(2) The number of such Reserves who were called
or ordered to active duty for one year or more, in-
cluding any extensions on active duty.
(3) The military specialties of the Reserves
counted under paragraph (2).
(4) The number of Reserves who were called or
ordered to active duty more than once under a provi-
sion of law referred to in section 101(a)(13)(B) of
title 10, United States Code.
(5) The military specialties of the Reserves
counted under paragraph (4).
(6) The known effects on the reserve components,
including the effects on recruitment and retention of
personnel for the reserve components, that have re-
sulted from—
(A) the calls and orders of Reserves to active
duty; and
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(B) the tempo of the service of the Reserves
on the active duty to which called or ordered.
(7) The changes in the Armed Forces, including
any changes in the allocation of roles and missions
between the active components and the reserve compo-
nents of the Armed Forces, that are envisioned by the
Secretary of Defense on the basis of—
(A) the effects discussed under paragraph
(6); or
(B) the experienced need for calling and or-
dering Reserves to active duty during the period.
(8) An assessment of how necessary it would be
to call or order Reserves to active duty in the event
of a war or contingency operation (as defined in sec-
tion 101(a)(13) of title 10, United States Code) if
such changes were implemented.
(9) On the basis of the experience of calling and
ordering Reserves to active duty during the period, an
assessment of the process for calling and ordering Re-
serves to active duty, preparing such Reserves for the
active duty, processing the Reserves into the force
upon entry onto active duty, and deploying the Re-
serves, including an assessment of the adequacy of the
alert and notification process from the perspectives of
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the individual Reserves, reserve component units, and
employers of Reserves.
SEC. 1025. STUDY OF BERYLLIUM INDUSTRIAL BASE.
(a) REQUIREMENT FOR STUDY.—The Secretary of De-
fense shall conduct a study of the adequacy of the industrial
base of the United States to meet defense requirements of
the United States for beryllium.
(b) REPORT.—Not later than January 30, 2004, the
Secretary shall submit a report on the results of the study
to Congress. The report shall contain, at a minimum, the
following information:
(1) A discussion of the issues identified with re-
spect to the long-term supply of beryllium.
(2) An assessment of the need, if any, for mod-
ernization of the primary sources of production of be-
ryllium.
(3) A discussion of the advisability of, and con-
cepts for, meeting the future defense requirements of
the United States for beryllium and maintaining a
stable domestic industrial base of sources of beryllium
through—
(A) cooperative arrangements commonly re-
ferred to as public-private partnerships;
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(B) the administration of the National De-
fense Stockpile under the Strategic and Critical
Materials Stock Piling Act; and
(C) any other means that the Secretary
identifies as feasible.
Subtitle D—Other Matters
SEC. 1031. BLUE FORCES TRACKING INITIATIVE.
(a) FINDINGS.—Congress makes the following findings:
(1) For military commanders, a principal pur-
pose of technology is to enable the commanders to as-
certain the location of the units in their commands
in near real time.
(2) Each of the Armed Forces is developing and
testing a variety of technologies for tracking friendly
forces (known as ‘‘blue forces’’).
(3) Situational awareness of blue forces has been
much improved since the 1991 Persian Gulf War, but
blue forces tracking remains a complex problem char-
acterized by information that is incomplete, not fully
accurate, or untimely.
(4) Casualties in recent warfare have declined,
but casualties associated with friendly fire incidents
have remained relatively constant.
(5) Despite significant investment, a coordi-
nated, interoperable plan for tracking blue forces
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throughout a United States or coalition forces theater
of operations has not been developed.
(b) GOAL.—It shall be a goal of the Department of De-
fense to fully coordinate the various efforts of the Joint
Staff, the commanders of the combatant commands, and the
military departments to develop an effective blue forces
tracking system.
(c) JOINT BLUE FORCES TRACKING EXPERIMENT.—
(1) The Secretary of Defense, through the Commander of
the United States Joint Forces Command, shall carry out
a joint experiment in fiscal year 2004 to demonstrate and
evaluate available joint blue forces tracking technologies.
(2) The objectives of the experiment are as follows:
(A) To explore various options for tracking
United States and other friendly forces during combat
operations.
(B) To determine an optimal, achievable, and
ungradable solution for the development, acquisition,
and fielding of a system for tracking all United
States military forces that is coordinated and inter-
operable and also accommodates the participation of
military forces of allied nations with United States
forces in combat operations.
(d) REPORT.—Not later than 60 days after the conclu-
sion of the experiment under subsection (c), but not later
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than December 1, 2004, the Secretary shall submit to the
congressional defense committees a report on the results of
the experiment, together with a comprehensive plan for the
development, acquisition, and fielding of a functional, near
real time blue forces tracking system.
SEC. 1032. LOAN, DONATION, OR EXCHANGE OF OBSOLETE
OR SURPLUS PROPERTY.
During fiscal years 2004 and 2005, the Secretary of
the military department concerned may exchange for an
historical artifact any obsolete or surplus property held by
such military department in accordance with section 2572
of title 10, United States Code, without regard to whether
the property is described in subsection (c) of such section.
SEC. 1033. ACCEPTANCE OF GIFTS AND DONATIONS.
(a) AUTHORIZED SOURCES
OF GIFTS
AND DONA-
TIONS.—Subsection (a) of section 2611 of title 10, United
States Code, is amended—
(1) in paragraph (1), by striking ‘‘foreign gifts
and donations’’ and inserting ‘‘gifts and donations
from sources described in paragraph (2)’’;
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
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‘‘(2) The sources from which gifts and donations may
be accepted under paragraph (1) are as follows:
‘‘(A) A department or agency of the Federal Gov-
ernment.
‘‘(B) The government of a State or of a political
subdivision of a State.
‘‘(C) The government of a foreign country.
‘‘(D) A foundation or other charitable organiza-
tion, including a foundation or charitable organiza-
tion that is organized or operates under the laws of
a foreign country.
‘‘(E) Any source in the private sector of the
United States or a foreign country.’’.
(b) CONFORMING AMENDMENTS.—(1) The headings for
subsections (a) and (f) of such section are amended by strik-
ing ‘‘FOREIGN’’.
(2) Subsection (c) is amended by striking ‘‘foreign’’.
(3) Subsection (f) is amended—
(A) by striking ‘‘foreign’’; and
(B) by striking ‘‘faculty services)’’ and all that
follows and inserting ‘‘faculty services).’’.
(4)(A) The heading of such section is amended to read
as follows:
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‘‘§ 2611. Asia-Pacific Center for Security Studies: ac-
ceptance of gifts and donations’’.
(B) The item relating to such section in the table of
sections at the beginning of chapter 155 is amended to read
as follows:
‘‘2611. Asia-Pacific Center for Security Studies: acceptance of gifts and dona-
tions.’’.
(c) ACCEPTANCE OF GUARANTEES WITH GIFTS IN DE-
VELOPMENT OF MARINE CORPS HERITAGE CENTER, MA-
RINE CORPS BASE, QUANTICO, VIRGINIA.—(1) The Sec-
retary of the Navy may utilize the authority in section 6975
of title 10, United States Code, for purposes of the project
to develop the Marine Corps Heritage Center at Marine
Corps Base, Quantico, Virginia, authorized by section 2884
of the Military Construction Authorization Act for Fiscal
Year 2001 (division B of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001; as enacted
into law by Public Law 106–398; 114 Stat. 1654A–440).
(2) The authority in paragraph (1) shall expire on De-
cember 31, 2006.
(3) The expiration under paragraph (2) of the author-
ity in paragraph (1) shall not effect any qualified guar-
antee accepted pursuant to such authority for purposes of
the project referred to in paragraph (1) before the date of
the expiration of such authority under paragraph (2).
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SEC. 1034. PROVISION OF LIVING QUARTERS FOR CERTAIN
STUDENTS WORKING AT NATIONAL SECURITY
AGENCY LABORATORY.
Section 2195 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection:
‘‘(d)(1) The Director of the National Security Agency
may provide living quarters to a student in the Student
Educational Employment Program or similar program (as
prescribed by the Office of Personnel Management) while
the student is employed at the laboratory of the Agency.
‘‘(2) Notwithstanding section 5911(c) of title 5, living
quarters may be provided under paragraph (1) without
charge, or at rates or charges specified in regulations pre-
scribed by the Director.’’.
SEC. 1035. PROTECTION OF OPERATIONAL FILES OF THE
NATIONAL SECURITY AGENCY.
(a) CONSOLIDATION
OF CURRENT PROVISIONS
ON
PROTECTION OF OPERATIONAL FILES.—The National Se-
curity Act of 1947 (50 U.S.C. 401 et seq.) is amended by
transferring sections 105C and 105D to the end of title VII
and redesignating such sections, as so transferred, as sec-
tions 703 and 704, respectively.
(b) PROTECTION OF OPERATIONAL FILES OF NSA.—
Title VII of such Act, as amended by subsection (a), is fur-
ther amended by adding at the end the following new sec-
tion:
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‘‘OPERATIONAL FILES OF THE NATIONAL SECURITY AGENCY
‘‘SEC. 705. (a) EXEMPTION OF CERTAIN OPERATIONAL
FILES FROM SEARCH, REVIEW, PUBLICATION, OR DISCLO-
SURE.—(1) Operational files of the National Security Agen-
cy (hereafter in this section referred to as ‘NSA’) may be
exempted by the Director of NSA, in coordination with the
Director of Central Intelligence, from the provisions of sec-
tion 552 of title 5, United States Code, which require publi-
cation, disclosure, search, or review in connection therewith.
‘‘(2)(A) In this section, the term ‘operational files’
means—
‘‘(i) files of the Signals Intelligence Directorate,
and its successor organizations, which document the
means by which foreign intelligence or counterintel-
ligence is collected through technical systems; and
‘‘(ii) files of the Research Associate Directorate,
and its successor organizations, which document the
means by which foreign intelligence or counterintel-
ligence is collected through scientific and technical
systems.
‘‘(B) Files which are the sole repository of dissemi-
nated intelligence, and files that have been accessioned into
NSA Archives, or its successor organizations, are not oper-
ational files.
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‘‘(3) Notwithstanding paragraph (1), exempted oper-
ational files shall continue to be subject to search and review
for information concerning—
‘‘(A) United States citizens or aliens lawfully
admitted for permanent residence who have requested
information on themselves pursuant to the provisions
of section 552 or 552a of title 5, United States Code;
‘‘(B) any special activity the existence of which
is not exempt from disclosure under the provisions of
section 552 of title 5, United States Code; or
‘‘(C) the specific subject matter of an investiga-
tion by any of the following for any impropriety, or
violation of law, Executive order, or Presidential di-
rective, in the conduct of an intelligence activity:
‘‘(i) The Committee on Armed Services and
the Permanent Select Committee on Intelligence
of the House of Representatives.
‘‘(ii) The Committee on Armed Services and
the Select Committee on Intelligence of the Sen-
ate.
‘‘(iii) The Intelligence Oversight Board.
‘‘(iv) The Department of Justice.
‘‘(v) The Office of General Counsel of NSA.
‘‘(vi) The Office of the Inspector General of
the Department of Defense.
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‘‘(vii) The Office of the Director of NSA.
‘‘(4)(A) Files that are not exempted under paragraph
(1) which contain information derived or disseminated
from exempted operational files shall be subject to search
and review.
‘‘(B) The inclusion of information from exempted oper-
ational files in files that are not exempted under paragraph
(1) shall not affect the exemption under paragraph (1) of
the originating operational files from search, review, publi-
cation, or disclosure.
‘‘(C) The declassification of some of the information
contained in exempted operational files shall not affect the
status of the operational file as being exempt from search,
review, publication, or disclosure.
‘‘(D) Records from exempted operational files which
have been disseminated to and referenced in files that are
not exempted under paragraph (1), and which have been
returned to exempted operational files for sole retention
shall be subject to search and review.
‘‘(5) The provisions of paragraph (1) may not be su-
perseded except by a provision of law which is enacted after
the date of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 2004, and which specifically cites
and repeals or modifies such provisions.
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‘‘(6)(A) Except as provided in subparagraph (B),
whenever any person who has requested agency records
under section 552 of title 5, United States Code, alleges that
NSA has withheld records improperly because of failure to
comply with any provision of this section, judicial review
shall be available under the terms set forth in section
552(a)(4)(B) of title 5, United States Code.
‘‘(B) Judicial review shall not be available in the man-
ner provided for under subparagraph (A) as follows:
‘‘(i) In any case in which information specifi-
cally authorized under criteria established by an Ex-
ecutive order to be kept secret in the interests of na-
tional defense or foreign relations is filed with, or
produced for, the court by NSA, such information
shall be examined ex parte, in camera by the court.
‘‘(ii) The court shall determine, to the fullest ex-
tent practicable, the issues of fact based on sworn
written submissions of the parties.
‘‘(iii) When a complainant alleges that requested
records are improperly withheld because of improper
placement solely in exempted operational files, the
complainant shall support such allegation with a
sworn written submission based upon personal knowl-
edge or otherwise admissible evidence.
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‘‘(iv)(I) When a complainant alleges that re-
quested records were improperly withheld because of
improper exemption of operational files, NSA shall
meet its burden under section 552(a)(4)(B) of title 5,
United States Code, by demonstrating to the court by
sworn written submission that exempted operational
files likely to contain responsible records currently
perform the functions set forth in paragraph (2).
‘‘(II) The court may not order NSA to review the
content of any exempted operational file or files in
order to make the demonstration required under sub-
clause (I), unless the complainant disputes NSA’s
showing with a sworn written submission based on
personal knowledge or otherwise admissible evidence.
‘‘(v) In proceedings under clauses (iii) and (iv),
the parties may not obtain discovery pursuant to
rules 26 through 36 of the Federal Rules of Civil Pro-
cedure, except that requests for admissions may be
made pursuant to rules 26 and 36.
‘‘(vi) If the court finds under this paragraph
that NSA has improperly withheld requested records
because of failure to comply with any provision of
this subsection, the court shall order NSA to search
and review the appropriate exempted operational file
or files for the requested records and make such
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records, or portions thereof, available in accordance
with the provisions of section 552 of title 5, United
States Code, and such order shall be the exclusive
remedy for failure to comply with this subsection.
‘‘(vii) If at any time following the filing of a
complaint pursuant to this paragraph NSA agrees to
search the appropriate exempted operational file or
files for the requested records, the court shall dismiss
the claim based upon such complaint.
‘‘(viii) Any information filed with, or produced
for the court pursuant to clauses (i) and (iv) shall be
coordinated with the Director of Central Intelligence
before submission to the court.
‘‘(b) DECENNIAL
REVIEW
OF
EXEMPTED
OPER-
ATIONAL FILES.—(1) Not less than once every 10 years, the
Director of the National Security Agency and the Director
of Central Intelligence shall review the exemptions in force
under subsection (a)(1) to determine whether such exemp-
tions may be removed from a category of exempted files or
any portion thereof. The Director of Central Intelligence
must approve any determination to remove such exemp-
tions.
‘‘(2) The review required by paragraph (1) shall in-
clude consideration of the historical value or other public
interest in the subject matter of a particular category of
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files or portions thereof and the potential for declassifying
a significant part of the information contained therein.
‘‘(3) A complainant that alleges that NSA has improp-
erly withheld records because of failure to comply with this
subsection may seek judicial review in the district court of
the United States of the district in which any of the parties
reside, or in the District of Columbia. In such a proceeding,
the court’s review shall be limited to determining the fol-
lowing:
‘‘(A) Whether NSA has conducted the review re-
quired by paragraph (1) before the expiration of the
10-year period beginning on the date of the enactment
of the National Defense Authorization Act for Fiscal
Year 2004 or before the expiration of the 10-year pe-
riod beginning on the date of the most recent review.
‘‘(B) Whether NSA, in fact, considered the cri-
teria set forth in paragraph (2) in conducting the re-
quired review.’’.
(c) CONFORMING AMENDMENTS.—(1) Section 701(b) of
the National Security Act of 1947 (50 U.S.C. 431(b)) is
amended by striking ‘‘For purposes of this title’’ and insert-
ing ‘‘In this section and section 702,’’.
(2) Section 702(c) of such Act (50 U.S.C. 432(c)) is
amended by striking ‘‘enactment of this title’’ and inserting
‘‘October 15, 1984,’’.
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(3)(A) The title heading for title VII of such Act is
amended to read as follows:
‘‘TITLE VII—PROTECTION OF OPERATIONAL
FILES’’.
(B) The section heading for section 701 of such Act
is amended to read as follows:
‘‘PROTECTION OF OPERATIONAL FILES OF THE CENTRAL
INTELLIGENCE AGENCY’’.
(C) The section heading for section 702 of such Act
is amended to read as follows:
‘‘DECENNIAL REVIEW OF EXEMPTED CENTRAL
INTELLIGENCE AGENCY OPERATIONAL FILES’’.
(d) CLERICAL AMENDMENTS.—The table of contents
for the National Security Act of 1947 is amended—
(1) by striking the items relating to sections
105C and 105D; and
(2) by striking the items relating to title VII and
inserting the following new items:
‘‘TITLE VII—PROTECTION OF OPERATIONAL FILES
‘‘Sec. 701. Protection of operational files of the Central Intelligence Agency.
‘‘Sec. 702. Decennial review of exempted Central Intelligence Agency operational
files.
‘‘Sec. 703. Protection of operational files of the National Imagery and Mapping
Agency.
‘‘Sec. 704. Protection of operational files of the National Reconnaissance Office.
‘‘Sec. 705. Protection of operational files of the National Security Agency.’’.
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SEC. 1036. TRANSFER OF ADMINISTRATION OF NATIONAL
SECURITY EDUCATION PROGRAM TO DIREC-
TOR OF CENTRAL INTELLIGENCE.
(a) IN GENERAL.—Section 802 of the David L. Boren
National Security Education Act of 1991 (title VIII of Pub-
lic Law 102–183; 50 U.S.C. 1902) is amended—
(1) in subsection (a), by striking ‘‘Secretary of
Defense’’ and inserting ‘‘Director of Central Intel-
ligence’’; and
(2) by striking ‘‘Secretary’’ each place it appears
(other than in subsection (h)) and inserting ‘‘Direc-
tor’’.
(b) AWARDS TO ATTEND FOREIGN LANGUAGE CEN-
TER.—Section 802(h) of such Act (50 U.S.C. 1902(h)) is
amended by inserting ‘‘of Defense’’ after ‘‘Secretary’’ each
place it appears.
(c) NATIONAL SECURITY EDUCATION BOARD.—(1)
Section 803 of such Act (50 U.S.C. 1903) is amended—
(A) in subsection (a), by striking ‘‘Secretary of
Defense’’ and inserting ‘‘Director’’;
(B) in subsection (b)—
(i) in paragraph (1), by striking ‘‘Secretary
of Defense’’ and inserting ‘‘Director’’;
(ii) 
by 
redesignating 
paragraphs 
(2)
through (7) as paragraphs (3) through (8), re-
spectively; and
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(iii) by inserting after paragraph (1), as so
amended, the following new paragraph (2):
‘‘(2) The Secretary of Defense.’’;
(C) in subsection (c), by striking ‘‘subsection
(b)(6)’’ and inserting ‘‘subsection (b)(8)’’; and
(D) in subsection (d), by striking ‘‘Secretary’’
each place it appears and inserting ‘‘Director’’.
(2) Section 806(d) of such Act (50 U.S.C. 1906(d)) is
amended by striking ‘‘paragraphs (1) through (7)’’ and in-
serting ‘‘paragraphs (2) through (8)’’.
(d) ADMINISTRATIVE PROVISIONS.—Section 805 of
such Act (50 U.S.C. 1905) is amended by striking ‘‘Sec-
retary’’ each place it appears and inserting ‘‘Director’’.
(e) ANNUAL REPORT.—Section 806 of such Act (50
U.S.C. 1906) is amended by striking ‘‘Secretary’’ each place
it appears and inserting ‘‘Director’’.
(f) AUDITS.—Section 807 of such Act (50 U.S.C. 1907)
is amended by striking ‘‘Department of Defense’’ and in-
serting ‘‘Central Intelligence Agency’’.
(g) DEFINITION.—Section 808 of such Act (50 U.S.C.
1908) is amended—
(1) by redesignating paragraphs (1) through (4)
as paragraphs (2) through (5), respectively; and
(2) by inserting before paragraph (2) the fol-
lowing new paragraph (1):
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‘‘(1) The term ‘Director’ means the Director of
Central Intelligence.’’.
(h) MATTERS RELATING TO NATIONAL FLAGSHIP LAN-
GUAGE INITIATIVE.—(1) Effective as if included therein as
enacted by section 333(a) of the Intelligence Authorization
Act for Fiscal Year 2003 (Public Law 107–306; 116 Stat.
2396), section 802(i)(1) of the David L. Boren National Se-
curity Education Act of 1991 is amended by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’.
(2) Effective as if included therein as enacted by sec-
tion 333(b) of the Intelligence Authorization Act for Fiscal
Year 2003 (116 Stat. 2397), section 811(a) of the David
L. Boren National Security Education Act of 1991 is
amended by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘Director’’.
(i) EFFECT OF TRANSFER OF ADMINISTRATION ON
SERVICE AGREEMENTS.—(1) The transfer to the Director
of Central Intelligence of the administration of the National
Security Education Program as a result of the amendments
made by this section shall not affect the force, validity, or
terms of any service agreement entered into under section
802(b) of the David L. Boren National Security Education
Act of 1991 (title VIII of Public Law 102–183; 50 U.S.C.
1902(b)) before the date of the enactment of this Act that
is in force as of that date, except that the Director shall
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administer such service agreement in lieu of the Secretary
of Defense.
(2) Notwithstanding any other provision of law, the
Director of Central Intelligence may, for purposes of the im-
plementation of any service agreement referred to in para-
graph (1), adopt regulations for the implementation of such
service agreement that were prescribed by the Secretary of
Defense under the David L. Boren National Security Edu-
cation Act of 1991 before the date of the enactment of this
Act.
(j) REPEAL OF SATISFIED REQUIREMENTS.—Section
802(g) of the David L. Boren National Security Education
Act of 1991 (title VIII of Public Law 102–183; 50 U.S.C.
1902(g)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1)’’; and
(B) by striking the second sentence; and
(2) by striking paragraph (2).
(k) TECHNICAL AMENDMENT.—Paragraph (5)(A) of
section 808 of such Act, as redesignated by subsection (g)(1)
of this section, is further amended by striking ‘‘a agency’’
and inserting ‘‘an agency’’.
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SEC. 1037. REPORT ON USE OF UNMANNED AERIAL VEHI-
CLES FOR SUPPORT OF HOMELAND SECURITY
MISSIONS.
(a) REQUIREMENT
FOR REPORT.—Not later than
April 1, 2004, the President shall submit to Congress a re-
port on the potential uses of unmanned aerial vehicles for
support of the performance of homeland security missions.
(b) CONTENT.—The report shall, at a minimum, in-
clude the following matters:
(1) An assessment of the potential for using un-
manned aerial vehicles for monitoring activities in
remote areas along the northern and southern borders
of the United States.
(2) An assessment of the potential for using long-
endurance, land-based unmanned aerial vehicles for
supporting the Coast Guard in the performance of its
homeland security missions, drug interdiction mis-
sions, and other maritime missions along the ap-
proximately 95,000 miles of inland waterways in the
United States.
(3) An assessment of the potential for using un-
manned aerial vehicles for monitoring the safety and
integrity of critical infrastructure within the territory
of the United States, including the following:
(A) Oil and gas pipelines.
(B) Dams.
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(C) Hydroelectric power plants.
(D) Nuclear power plants.
(E) Drinking water utilities.
(F) Long-distance power transmission lines.
(4) An assessment of the potential for using un-
manned aerial vehicles for monitoring the transpor-
tation of hazardous cargo.
(5) A discussion of the safety issues involved
in—
(A) the use of unmanned aerial vehicles by
agencies other than the Department of Defense;
and
(B) the operation of unmanned aerial vehi-
cles over populated areas of the United States.
(6) A discussion of—
(A) the effects on privacy and civil liberties
that could result from the monitoring uses of un-
manned aerial vehicles operated over the terri-
tory of the United States; and
(B) any restrictions on the domestic use of
unmanned aerial vehicles that should be im-
posed, or any other actions that should be taken,
to prevent any adverse effect of such a use of un-
manned aerial vehicles on privacy or civil lib-
erties.
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(7) A discussion of what, if any, legislation and
organizational changes may be necessary to accommo-
date the use of unmanned aerial vehicles of the De-
partment of Defense in support of the performance of
homeland security missions, including any amend-
ment of section 1385 of title 18, United States Code
(popularly referred to as the ‘‘Posse Comitatus Act’’).
(8) An evaluation of the capabilities of manufac-
turers of unmanned aerial vehicles to produce such
vehicles at higher rates if necessary to meet any in-
creased requirements for homeland security and home-
land defense missions.
(c) REFERRAL TO COMMITTEES.—The report under
subsection (a) shall be referred—
(1) upon receipt in the Senate, to the Committee
on Armed Services of the Senate; and
(2) upon receipt in the House of Representatives,
to the Committee on Armed Services of the House of
Representatives.
SEC. 1038. CONVEYANCE OF SURPLUS T–37 AIRCRAFT TO
AIR FORCE AVIATION HERITAGE FOUNDA-
TION, INCORPORATED.
(a) AUTHORITY.—The Secretary of the Air Force may
convey, without consideration, to the Air Force Aviation
Heritage Foundation, Incorporated, of Georgia (in this sec-
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tion referred to as the ‘‘Foundation’’), all right, title, and
interest of the United States in and to one surplus T–37
‘‘Tweet’’ aircraft. The conveyance shall be made by means
of a conditional deed of gift.
(b) CONDITION OF AIRCRAFT.—The Secretary may not
convey ownership of the aircraft under subsection (a) until
the Secretary determines that the Foundation has altered
the aircraft in such manner as the Secretary determines
necessary to ensure that the aircraft does not have any ca-
pability for use as a platform for launching or releasing
munitions or any other combat capability that it was de-
signed to have. The Secretary is not required to repair or
alter the condition of the aircraft before conveying owner-
ship of the aircraft.
(c) CONDITIONS FOR CONVEYANCE.—(1) The convey-
ance of a T–37 aircraft under this section shall be subject
to the following conditions:
(A) That the Foundation not convey any owner-
ship interest in, or transfer possession of, the aircraft
to any other party without the prior approval of the
Secretary of the Air Force.
(B) That the operation and maintenance of the
aircraft comply with all applicable limitations and
maintenance requirements imposed by the Adminis-
trator of the Federal Aviation Administration.
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(C) That if the Secretary of the Air Force deter-
mines at any time that the Foundation has conveyed
an ownership interest in, or transferred possession of,
the aircraft to any other party without the prior ap-
proval of the Secretary, or has failed to comply with
the condition set forth in subparagraph (B), all right,
title, and interest in and to the aircraft, including
any repair or alteration of the aircraft, shall revert
to the United States, and the United States shall have
the right of immediate possession of the aircraft.
(2) The Secretary shall include the conditions under
paragraph (1) in the instrument of conveyance of the T–
37 aircraft.
(d) CONVEYANCE
AT NO COST
TO
THE UNITED
STATES.—Any conveyance of a T–37 aircraft under this
section shall be made at no cost to the United States. Any
costs associated with such conveyance, costs of determining
compliance by the Foundation with the conditions in sub-
section (b), and costs of operation and maintenance of the
aircraft conveyed shall be borne by the Foundation.
(e) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary of the Air Force may require such additional terms
and conditions in connection with the conveyance under
this section as the Secretary considers appropriate to pro-
tect the interests of the United States.
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(f) CLARIFICATION OF LIABILITY.—Notwithstanding
any other provision of law, upon the conveyance of owner-
ship of a T–37 aircraft to the Foundation under subsection
(a), the United States shall not be liable for any death, in-
jury, loss, or damage that results from any use of that air-
craft by any person other than the United States.
SEC. 1039. SENSE OF SENATE ON REWARD FOR INFORMA-
TION LEADING TO RESOLUTION OF STATUS
OF MEMBERS OF THE ARMED FORCES WHO
REMAIN MISSING IN ACTION.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) The Department of Defense estimates that
there are more than 10,000 members of the Armed
Forces and others who as a result of activities during
the Korean War or the Vietnam War were placed in
a missing status or a prisoner of war status, or who
were determined to have been killed in action al-
though the body was not recovered, and who remain
unaccounted for.
(2) One member of the Armed Forces, Navy Cap-
tain Michael Scott Speicher, remains missing in ac-
tion from the first Persian Gulf War, and there have
been credible reports of him being seen alive in Iraq
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in the years since his plane was shot down on Janu-
ary 16, 1991.
(3) The United States should always pursue
every lead and leave no stone unturned to completely
account for the fate of its missing members of the
Armed Forces.
(4) The Secretary of Defense has the authority to
disburse funds as a reward to individuals who pro-
vide information leading to the conclusive resolution
of cases of missing members of the Armed Forces.
(b) SENSE OF SENATE.—It is the sense of the Senate—
(1) that the Secretary of Defense should use the
authority available to the Secretary to disburse funds
rewarding individuals who provide information lead-
ing to the conclusive resolution of the status of any
missing member of the Armed Forces; and
(2) to encourage the Secretary to authorize and
publicize a reward of $1,000,000 for information re-
solving the fate of those members of the Armed Forces,
such as Michael Scott Speicher, who the Secretary has
reason to believe may yet be alive in captivity.
SEC. 1040. ADVANCED SHIPBUILDING ENTERPRISE.
(a) FINDINGS.—Congress makes the following findings:
(1) The President’s budget for fiscal year 2004,
as submitted to Congress, includes $10,300,000 for the
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Advanced Shipbuilding Enterprise of the National
Shipbuilding Research Program.
(2) The Advanced Shipbuilding Enterprise is an
innovative program to encourage greater efficiency
among shipyards in the defense industrial base.
(3) The leaders of the Nation’s shipbuilding in-
dustry have embraced the Advanced Shipbuilding En-
terprise as a method of exploring and collaborating
on innovation in shipbuilding and ship repair that
collectively benefits all manufacturers in the industry.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that—
(1) the Senate strongly supports the innovative
Advanced Shipbuilding Enterprise of the National
Shipbuilding Research Program that has yielded new
processes and techniques to reduce the cost of building
and repairing ships in the United States;
(2) the Senate is concerned that the future-years
defense program submitted to Congress for fiscal year
2004 does not reflect any funding for the Advanced
Shipbuilding Enterprise after fiscal year 2004; and
(3) the Secretary of Defense and the Secretary of
the Navy should continue funding the Advanced Ship-
building Enterprise at a sustaining level through the
future-years defense program to support subsequent
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rounds of research that reduce the cost of designing,
building, and repairing ships.
SEC. 1041. AIR FARES FOR MEMBERS OF ARMED FORCES.
It is the sense of the Senate that each United States
air carrier should—
(1) make every effort to allow active duty mem-
bers of the armed forces to purchase tickets, on a
space-available basis, for the lowest fares offered for
the flights desired, without regard to advance pur-
chase requirements and other restrictions; and
(2) offer flexible terms that allow members of the
armed forces on active duty to purchase, modify, or
cancel tickets without time restrictions, fees, or pen-
alties.
SEC. 1042. SENSE OF SENATE ON DEPLOYMENT OF AIR-
BORNE CHEMICAL AGENT MONITORING SYS-
TEMS AT CHEMICAL STOCKPILE DISPOSAL
SITES IN THE UNITED STATES.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) Millions of assembled chemical weapons are
stockpiled at chemical agent disposal facilities and
depot sites across the United States.
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(2) Some of these weapons are filled with nerve
agents, such as GB and VX and blister agents such
as HD (mustard agent).
(3) Hundreds of thousands of United States citi-
zens live in the vicinity of these chemical weapons
stockpile sites and depots.
(4) The airborne chemical agent monitoring sys-
tems at these sites are inefficient or outdated com-
pared to newer and advanced technologies on the
market.
(b) SENSE OF SENATE.—It is the sense of the Senate
that the Secretary of the Army should develop and deploy
a program to upgrade the airborne chemical agent moni-
toring systems at all chemical stockpile disposal sites across
the United States in order to achieve the broadest possible
protection of the general public, personnel involved in the
chemical demilitarization program, and the environment.
SEC. 1043. FEDERAL ASSISTANCE FOR STATE PROGRAMS
UNDER THE NATIONAL GUARD CHALLENGE
PROGRAM.
(a) MAXIMUM FEDERAL SHARE.—Section 509(d) of
title 32, United States Code, is amended—
(1) by striking paragraphs (1), (2), and (3);
(2) by redesignating paragraph (4) as para-
graph (1);
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(3) in paragraph (1), as so redesignated, by
striking the period at the end and inserting ‘‘; and’’;
and
(4) by adding at the end the following new para-
graph (2);
‘‘(2) for fiscal year 2004 (notwithstanding para-
graph (1)), 65 percent of the costs of operating the
State program during that year.’’.
(b) STUDY.—(1) The Secretary of Defense shall carry
out a study to evaluate (A) the adequacy of the requirement
under section 509(d) of title 32, United States Code, for
the United States to fund 60 percent of the costs of oper-
ating a State program of the National Guard Challenge
Program and the State to fund 40 percent of such costs,
and (B) the value of the Challenge program to the Depart-
ment of Defense.
(2) In carrying out the study under paragraph (1),
the Secretary should identify potential alternatives to the
matching funds structure provided for the National Guard
Challenge Program under section 509(d) of title 32, United
States Code, such as a range of Federal-State matching ra-
tios, that would provide flexibility in the management of
the program to better respond to temporary fiscal condi-
tions.
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(3) The Secretary shall include the results of the study,
including findings, conclusions, and recommendations, in
the next annual report to Congress under section 509(k) of
title 32, United States Code, that is submitted to Congress
after the date of the enactment of this Act.
(c) AMOUNT
FOR FEDERAL ASSISTANCE.—(1) The
amount authorized to be appropriated under section
301(10) is hereby increased by $3,000,000.
(2) Of the total amount authorized to be appropriated
under section 301(10), $68,216,000 shall be available for
the National Guard Challenge Program under section 509
of title 32, United States Code.
(3) The total amount authorized to be appropriated
under section 301(4) is hereby reduced by $3,000,000.
SEC. 1044. SENSE OF SENATE ON RECONSIDERATION OF
DECISION TO TERMINATE BORDER SEAPORT
INSPECTION DUTIES OF NATIONAL GUARD
UNDER NATIONAL GUARD DRUG INTERDIC-
TION AND COUNTER-DRUG MISSION.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) The counter-drug inspection mission of the
National Guard is highly important to preventing the
infiltration of illegal narcotics across United States
borders.
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(2) The expertise of members of the National
Guard in vehicle inspections at United States borders
have made invaluable contributions to the identifica-
tion and seizure of illegal narcotics being smuggled
across United States borders.
(3) The support provided by the National Guard
to the Customs Service and the Border Patrol has
greatly enhanced the capability of the Customs Serv-
ice and the Border Patrol to perform counter-ter-
rorism surveillance and other border protection du-
ties.
(b) SENSE OF SENATE.—It is the sense of the Senate
that the Secretary of Defense should reconsider the decision
of the Department of Defense to terminate the border inspec-
tion and seaport inspection duties of the National Guard
as part of the drug interdiction and counter-drug mission
of the National Guard.
TITLE XI—DEPARTMENT OF DE-
FENSE CIVILIAN PERSONNEL
POLICY
SEC. 1101. AUTHORITY TO EMPLOY CIVILIAN FACULTY
MEMBERS AT THE WESTERN HEMISPHERE IN-
STITUTE FOR SECURITY COOPERATION.
Section 1595(c) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
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‘‘(6) The Western Hemisphere Institute for Secu-
rity Cooperation.’’.
SEC. 1102. PAY AUTHORITY FOR CRITICAL POSITIONS.
(a) AUTHORITY.—Chapter 81 of title 10, United States
Code, is amended by adding at the end the following new
section:
‘‘§ 1599e. Pay authority for critical positions
‘‘(a) AUTHORITY GENERALLY.—(1) When the Sec-
retary of Defense seeks a grant of authority under section
5377 of title 5 for critical pay for one or more positions
within the Department of Defense, the Director of the Office
of Management and Budget may fix the rate of basic pay,
notwithstanding sections 5377(d)(2) and 5307 of such title,
at any rate up to the salary set in accordance with section
104 of title 3.
‘‘(2) Notwithstanding section 5307 of title 5, no allow-
ance, differential, bonus, award, or similar cash payment
may be paid to any employee receiving critical pay at a
rate fixed under paragraph (1), in any calendar year if,
or to the extent that, the employee’s total annual compensa-
tion will exceed the maximum amount of total annual com-
pensation payable at the salary set in accordance with sec-
tion 104 of title 3.
‘‘(b) TEMPORARY STREAMLINED CRITICAL PAY AU-
THORITY.—(1) The Secretary of Defense may establish, fix
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the compensation of, and appoint persons to positions des-
ignated as critical administrative, technical, or professional
positions needed to carry out the functions of the Depart-
ment of Defense, subject to paragraph (2).
‘‘(2) The authority under paragraph (1) may be exer-
cised with respect to a position only if—
‘‘(A) the position—
‘‘(i) requires expertise of an extremely high
level in an administrative, technical, or profes-
sional field; and
‘‘(ii) is critical to the successful accomplish-
ment of an important mission by the Depart-
ment of Defense;
‘‘(B) the exercise of the authority is necessary to
recruit or retain a person exceptionally well qualified
for the position;
‘‘(C) the number of all positions covered by the
exercise of the authority does not exceed 40 at any one
time;
‘‘(D) in the case of a position designated as a
critical administrative, technical, or professional po-
sition by an official other than the Secretary of De-
fense, the designation is approved by the Secretary;
‘‘(E) the term of appointment to the position is
limited to not more than four years;
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section does not terminate the position, terminate the per-
son’s appointment in the position before the end of the term
for which appointed under this subsection, or affect the com-
pensation fixed for the person’s service in the position under
this subsection during such term of appointment.
‘‘(6) Subchapter II of chapter 75 of title 5 does not
apply to an employee during a term of service in a critical
administrative, technical, or professional position to which
the employee is appointed under this subsection.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘1599e. Pay authority for critical positions.’’.
SEC. 1103. EXTENSION, EXPANSION, AND REVISION OF AU-
THORITY FOR EXPERIMENTAL PERSONNEL
PROGRAM FOR SCIENTIFIC AND TECHNICAL
PERSONNEL.
(a) EXTENSION OF PROGRAM.—Subsection (e)(1) of
section 1101 of the Strom Thurmond National Defense Au-
thorization Act for Fiscal Year 1999 (Public Law 105–261;
112 Stat. 2139; 5 U.S.C. 3104 note) is amended by striking
‘‘October 16, 2005’’ and inserting ‘‘September 30, 2008’’.
(b) INCREASED LIMITATION ON NUMBER OF APPOINT-
MENTS.—Subsection (b)(1)(A) of such section is amended
by striking ‘‘40’’ and inserting ‘‘50’’.
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(c) COMMENSURATE EXTENSION
OF REQUIREMENT
FOR ANNUAL REPORT.—Subsection (g) of such section is
amended by striking ‘‘2006’’ and inserting ‘‘2009’’.
SEC. 1104. TRANSFER 
OF 
PERSONNEL 
INVESTIGATIVE
FUNCTIONS AND RELATED PERSONNEL OF
THE DEPARTMENT OF DEFENSE.
(a) TRANSFER OF FUNCTIONS.—(1) With the consent
of the Director of the Office of Personnel Management, the
Secretary of Defense may transfer to the Office of Personnel
Management the personnel security investigations functions
that, as of the date of the enactment of this Act, are per-
formed by the Defense Security Service of the Department
of Defense.
(2) The Director of the Office of Personnel Manage-
ment may accept a transfer of functions under paragraph
(1).
(3) Any transfer of a function under this subsection
is a transfer of function within the meaning of section 3503
of title 5, United States Code.
(b) TRANSFER OF PERSONNEL.—(1) If the Director of
the Office of Personnel Management accepts a transfer of
functions under subsection (a), the Secretary of Defense
shall also transfer to the Office of Personnel Management,
and the Director shall accept—
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(A) the Defense Security Service employees who
perform those functions immediately before the trans-
fer of functions; and
(B) the Defense Security Service employees who,
as of such time, are first level supervisors of employ-
ees transferred under subparagraph (A).
(2) The Secretary may also transfer to the Office of
Personnel Management any Defense Security Service em-
ployees (including higher level supervisors) who provide
support services for the performance of the functions trans-
ferred under subsection (a) or for the personnel (including
supervisors) transferred under paragraph (1) if the
Director—
(A) determines that the transfer of such addi-
tional employees and the positions of such employees
to the Office of Personnel Management is necessary in
the interest of effective performance of the transferred
functions; and
(B) accepts the transfer of the additional em-
ployees.
(3) In the case of an employee transferred to the Office
of Personnel Management under paragraph (1) or (2),
whether a full-time or part-time employee—
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(A) subsections (b) and (c) of section 5362 of
title 5, United States Code, relating to grade reten-
tion, shall apply to the employee, except that—
(i) the grade retention period shall be the
one-year period beginning on the date of the
transfer; and
(ii) paragraphs (1), (2), and (3) of such
subsection (c) shall not apply to the employee;
and
(B) the employee may not be separated, other
than pursuant to chapter 75 of title 5, United States
Code, during such one-year period.
(c) ACTIONS AFTER TRANSFER.—(1) Not later than
one year after a transfer of functions to the Office of Per-
sonnel Management under subsection (a), the Secretary of
Defense shall review all functions performed by personnel
of the Defense Security Service at the time of the transfer
and make a written determination regarding whether each
such function is inherently governmental or is otherwise in-
appropriate for performance by contractor personnel.
(2) A function performed by Defense Security Service
employees as of the date of the enactment of this Act may
not be converted to contractor performance by the Director
of the Office of Personnel Management until—
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(A) the Secretary of Defense reviews the function
in accordance with the requirements of paragraph (1)
and makes a written determination that the function
is not inherently governmental and is not otherwise
inappropriate for contractor performance; and
(B) the Director conducts a public-private com-
petition regarding the performance of that function in
accordance with the requirements of the Office of
Management and Budget Circular A–76.
TITLE XII—MATTERS RELATING
TO OTHER NATIONS
SEC. 1201. AUTHORITY TO USE FUNDS FOR PAYMENT OF
COSTS OF ATTENDANCE OF FOREIGN VISI-
TORS UNDER REGIONAL DEFENSE COUNTER-
TERRORISM FELLOWSHIP PROGRAM.
(a) AUTHORITY TO USE FUNDS.—(1) Subchapter I of
chapter 134 of title 10, United States Code, is amended by
adding at the end the following new section:
‘‘§ 2249c. Authority to use appropriated funds for
costs of attendance of foreign visitors
under Regional Defense Counterterrorism
Fellowship Program
‘‘(a) AUTHORITY TO USE FUNDS.—Under regulations
prescribed by the Secretary of Defense, funds appropriated
to the Department of Defense may be used to pay any costs