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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bob Stump National Defense Authorization Act for Fis-
cal Year 2003’’.
(b) FINDINGS.—Congress makes the following find-
ings:
(1) Representative Bob Stump of Arizona was
elected to the House of Representatives in 1976 for
service in the 95th Congress, after serving in the Ar-
izona legislature for 18 years and serving as Presi-
dent of the Arizona State Senate from 1975 to
1976, and he has been reelected to each subsequent
Congress.
(2) A World War II combat veteran, Represent-
ative Stump entered service in the United States
Navy in 1943, just after his 16th birthday, and
served aboard the USS LUNGA POINT and the
USS TULAGI, which participated in the invasions
of Luzon, Iwo Jima, and Okinawa.
(3) Representative Stump was elected to the
Committee on Armed Services in 1978 and has
served on nearly all of its subcommittees and panels
during 25 years of distinguished service on the com-
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mittee. He has served as chairman of the committee
during the 107th Congress and has championed
United States national security as the paramount
function of the Federal Government.
(4) Also serving on the Committee on Veterans’
Affairs of the House of Representatives, chairing
that committee from 1995 to 2000, and serving on
the Permanent Select Committee on Intelligence of
the House of Representatives, including service as
the ranking minority member in 1985 and 1986,
Representative Stump has dedicated his entire con-
gressional career to steadfastly supporting America’s
courageous men and women in uniform both on and
off the battlefield.
(5) Representative Stump’s tireless efforts on
behalf of those in the military and veterans have
been recognized with numerous awards for out-
standing service from active duty and reserve mili-
tary, veterans’ service, military retiree, and industry
organizations.
(6) During his tenure as chairman of the Com-
mittee on Armed Services of the House of Rep-
resentatives, Representative Stump has—
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(A) overseen the largest sustained increase
to defense spending since the Reagan adminis-
tration;
(B) led efforts to improve the quality of
military life, including passage of the largest
military pay raise since 1982;
(C) supported military retirees, including
efforts to reverse concurrent receipt law and to
save the Armed Forces Retirement Homes;
(D) championed military readiness by de-
fending military access to critical training facili-
ties such Vieques, Puerto Rico, expanding the
National Training Center at Ft. Irwin, Cali-
fornia, and working to restore balance between
environmental concerns and military readiness
requirements;
(E) reinvigorated efforts to defend America
against ballistic missiles by supporting an in-
crease in fiscal year 2002 of nearly 50 percent
above the fiscal year 2001 level for missile de-
fense programs; and
(F) honored America’s war heroes by ex-
panding Arlington National Cemetery, estab-
lishing a site for the Air Force Memorial, and
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assuring construction of the World War II Me-
morial.
(7) In recognition of his long record of accom-
plishments in enhancing the national security of the
United States and his legislative victories on behalf
of active duty service members, reservists, guards-
men, and veterans, it is altogether fitting and proper
that this Act be named in honor of Representative
Bob Stump of Arizona, as provided in subsection
(a).
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 Au-
thorizations.
(2) Division B—Military Construction Author-
izations.
(3) Division C—Department of Energy Na-
tional Security Authorizations and Other Authoriza-
tions.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
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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 demilitarization program.
Sec. 107. Defense health programs.
Subtitle B—Navy Programs
Sec. 111. Shipbuilding initiative.
Sec. 112. Prohibition on acquisition of Champion-class, T–5 fuel tankers.
Subtitle C—Air Force Programs
Sec. 121. Multiyear procurement authority for C–130J aircraft program.
Sec. 122. Reallocation of certain funds for Air Force Reserve Command F–16
aircraft procurement.
Subtitle D—Other Programs
Sec. 141. Revisions to multiyear contracting authority.
Sec. 142. Transfer of technology items and equipment in support of homeland
security.
Sec. 143. Destruction of existing stockpile of lethal chemical agents and muni-
tions.
Sec. 144. Report on unmanned aerial vehicle systems.
Sec. 145. Report on impact of Army Aviation Modernization Plan on the Army
National Guard.
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION
Subtitle A—Authorization of Appropriations
Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Subtitle B—Program Requirements, Restrictions, and
Limitations
Sec. 211. RAH–66 Comanche aircraft program.
Sec. 212. Extension of requirement relating to management responsibility for
naval mine countermeasures programs.
Sec. 213. Extension of authority to carry out pilot program for revitalizing the
laboratories and test and evaluation centers of the Department
of Defense.
Sec. 214. Revised requirements for plan for Manufacturing Technology Pro-
gram.
Sec. 215. Technology Transition Initiative.
Sec. 216. Defense Acquisition Challenge Program.
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Subtitle C—Ballistic Missile Defense
Sec. 231. Limitation on obligation of funds for procurement of Patriot (PAC–
3) missiles pending submission of required certification.
Sec. 232. Responsibility of Missile Defense Agency for research, development,
test, and evaluation related to system improvements of pro-
grams transferred to military departments.
Sec. 233. Amendments to reflect change in name of Ballistic Missile Defense
Organization to Missile Defense Agency.
TITLE III—OPERATION AND MAINTENANCE
Subtitle A—Authorization of Appropriations
Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Subtitle B—Environmental Provisions
Sec. 311. Incidental taking of migratory birds during military readiness activ-
ity.
Sec. 312. Military readiness and the conservation of protected species.
Sec. 313. Single point of contact for policy and budgeting issues regarding
unexploded ordnance, discarded military munitions, and muni-
tions constituents.
Subtitle C—Commissaries and Nonappropriated Fund
Instrumentalities
Sec. 321. Authority for each military department to provide base operating sup-
port to fisher houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members of
National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and recreation
programs.
Subtitle D—Workplace and Depot Issues
Sec. 331. Notification requirements in connection with required studies for con-
version of commercial or industrial type functions to contractor
performance.
Sec. 332. Waiver authority regarding prohibition on contracts for performance
of security-guard functions.
Sec. 333. Exclusion of certain expenditures from percentage limitation on con-
tracting for performance of depot-level maintenance and repair
workloads.
Sec. 334. Repeal of obsolete provision regarding depot-level maintenance and
repair workloads that were performed at closed or realigned
military installations.
Sec. 335. Clarification of required core logistics capabilities.
Subtitle E—Defense Dependents Education
Sec. 341. Assistance to local educational agencies that benefit dependents of
members of the Armed Forces and Department of Defense ci-
vilian employees.
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Sec. 342. Availability of quarters allowance for unaccompanied defense depart-
ment teacher required to reside on overseas military installa-
tion.
Sec. 343. Provision of summer school programs for students who attend de-
fense dependents’ education system.
Subtitle F—Information Technology
Sec. 351. Authorized duration of base contract for Navy-Marine Corps
Intranet.
Sec. 352. Annual submission of information on national security and informa-
tion technology capital assets.
Sec. 353. Implementation of policy regarding certain commercial off-the-shelf
information technology products.
Sec. 354. Installation and connection policy and procedures regarding Defense
Switch Network.
Subtitle G—Other Matters
Sec. 361. Distribution of monthly reports on allocation of funds within oper-
ation and maintenance budget subactivities.
Sec. 362. Minimum deduction from pay of certain members of the Armed
Forces to support Armed Forces Retirement Home.
Sec. 363. Condition on conversion of Defense Security Service to a working
capital funded entity.
Sec. 364. Continuation of Arsenal support program initiative.
Sec. 365. Training range sustainment plan, Global Status of Resources and
Training System, and training range inventory.
Sec. 366. Amendments to certain education and nutrition laws relating to ac-
quisition and improvement of military housing.
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Authority for military department Secretaries to increase active-duty
end strengths by up to 1 percent.
Sec. 404. General and flag officer management.
Sec. 405. 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 2003 limitation on non-dual status technicians.
Subtitle C—Authorization of Appropriations
Sec. 421. Authorization of appropriations for military personnel.
TITLE V—MILITARY PERSONNEL POLICY
Subtitle A—General Personnel Management Authorities
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Sec. 501. Increase in number of Deputy Commandants of the Marine Corps.
Sec. 502. Extension of good-of-the-service waiver authority for officers ap-
pointed to a Reserve Chief or Guard Director position.
Subtitle B—Reserve Component Management
Sec. 511. Reviews of National Guard strength accounting and management and
other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal service.
Sec. 513. Matching funds requirements under National Guard Youth Challenge
Program.
Subtitle C—Reserve Component Officer Personnel Policy
Sec. 521. Exemption from active status strength limitation for reserve compo-
nent general and flag officers serving on active duty in certain
joint duty assignments designated by the Chairman of the
Joint Chiefs of Staff.
Sec. 522. Eligibility for consideration for promotion to grade of major general
for certain reserve component brigadier generals who do not
otherwise qualify for consideration for promotion under the
one-year rule.
Sec. 523. Retention of promotion eligibility for reserve component general and
flag officers transferred to an inactive status.
Sec. 524. Authority for limited extension of medical deferment of mandatory re-
tirement or separation for reserve officers.
Subtitle D—Education and Training
Sec. 531. Authority for phased increase to 4,400 in authorized strengths for the
service academies.
Sec. 532. Enhancement of reserve component delayed training program.
Sec. 533. Preparation for, participation in, and conduct of athletic competitions
by the National Guard and members of the National Guard.
Subtitle E—Decorations and Awards
Sec. 541. Waiver of time limitations for award of certain decorations to certain
persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal
awarded for Operation Frequent Wind to Vietnam Service
Medal.
Subtitle F—Administrative Matters
Sec. 551. Staffing and funding for Defense Prisoner of War/Missing Personnel
Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies responsible
for review and correction of military records.
Sec. 553. Department of Defense support for persons participating in military
funeral honors details.
Sec. 554. Authority for use of volunteers as proctors for administration of
Armed Services Vocational Aptitude Battery test.
Sec. 555. Annual report on status of female members of the Armed Forces.
Subtitle G—Benefits
Sec. 561. Voluntary leave sharing program for members of the Armed Forces.
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Sec. 562. Enhanced flexibility in medical loan repayment program.
Sec. 563. Expansion of overseas tour extension benefits.
Sec. 564. Vehicle storage in lieu of transportation when member is ordered to
a nonforeign duty station outside continental United States.
Subtitle H—Military Justice Matters
Sec. 571. Right of convicted accused to request sentencing by military judge.
Sec. 572. Report on desirability and feasibility of consolidating separate courses
of basic instruction for judge advocates.
TITLE VI—COMPENSATION AND OTHER PERSONNEL
BENEFITS
Subtitle A—Pay and Allowances
Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Expansion of basic allowance for housing low-cost or no-cost moves
authority to members assigned to duty outside United States.
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 611. One-year extension of certain bonus and special pay authorities for
reserve forces.
Sec. 612. One-year extension of certain bonus and special pay authorities for
certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for nuclear
officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Minimum levels of hardship duty pay for duty on the ground in Ant-
arctica or on Arctic icepack.
Sec. 616. Increase in maximum rates for prior service enlistment bonus.
Sec. 617. Retention incentives for health care providers qualified in a critical
military skill.
Subtitle C—Travel and Transportation Allowances
Sec. 631. Extension of leave travel deferral period for members performing con-
secutive overseas tours of duty.
Subtitle D—Retired Pay and Survivors Benefits
Sec. 641. Phase-in of full concurrent receipt of military retired pay and vet-
erans disability compensation for military retirees with disabil-
ities rated at 60 percent or higher.
Sec. 642. Change in service requirements for eligibility for retired pay for non-
regular service.
Sec. 643. Elimination of possible inversion in retired pay cost-of-living adjust-
ment for initial COLA computation.
Sec. 644. Technical revisions to so-called ‘‘forgotten widows’’ annuity program.
Subtitle E—Reserve Component Montgomery GI Bill
Sec. 651. Extension of Montgomery GI Bill-Selected Reserve eligibility period.
Subtitle F—Other Matters
Sec. 661. Addition of definition of continental United States in title 37.
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TITLE VII—HEALTH CARE MATTERS
Subtitle A—Health Care Program Improvements
Sec. 701. Elimination of requirement for TRICARE preauthorization of inpa-
tient mental health care for medicare-eligible beneficiaries.
Sec. 702. Expansion of TRICARE Prime Remote for certain dependents.
Sec. 703. Enabling dependents of certain members who died while on active
duty to enroll in the TRICARE dental program.
Sec. 704. Improvements regarding the Department of Defense Medicare-Eligi-
ble Retiree Health Care Fund.
Sec. 705. Certification of institutional and non-institutional providers under the
TRICARE program.
Sec. 706. Technical correction regarding transitional health care.
Subtitle B—Reports
Sec. 711. Comptroller General report on TRICARE claims processing.
Sec. 712. Comptroller General report on provision of care under the TRICARE
program.
Sec. 713. Repeal of report requirement.
Subtitle C—Department of Defense-Department of Veterans
Affairs Health Resources Sharing
Sec. 721. Short title.
Sec. 722. Findings and sense of Congress concerning status of health resources
sharing between the Department of Veterans Affairs and the
Department of Defense.
Sec. 723. Revised coordination and sharing guidelines.
Sec. 724. Health care resources sharing and coordination project.
Sec. 725. Joint review of coordination and sharing of health care and related
services following domestic acts of terrorism or domestic use of
weapons of mass destruction.
Sec. 726. Adoption by Department of Veterans Affairs of Department of De-
fense Pharmacy Data Transaction System.
Sec. 727. Joint pilot program for providing graduate medical education and
training for physicians.
Sec. 728. Repeal of certain limits on Department of Veterans Affairs resources.
Sec. 729. Reports.
TITLE VIII—ACQUISITION POLICY, ACQUISITION
MANAGEMENT, AND RELATED MATTERS
Sec. 801. Plan for acquisition management professional exchange pilot pro-
gram.
Sec. 802. Evaluation of training, knowledge, and resources regarding negotia-
tion of intellectual property arrangements.
Sec. 803. Limitation period for task and delivery order contracts.
Sec. 804. One-year extension of program applying simplified procedures to cer-
tain commercial items; report.
Sec. 805. Authority to make inflation adjustments to simplified acquisition
threshold.
Sec. 806. Improvement of personnel management policies and procedures appli-
cable to the civilian acquisition workforce.
Sec. 807. Modification of scope of ball and roller bearings covered for purposes
of procurement limitation.
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Sec. 808. Rapid acquisition and deployment procedures.
Sec. 809. Quick-reaction special projects acquisition team.
Sec. 810. Report on development of anti-cyberterrorism technology.
Sec. 811. Contracting with Federal Prison Industries.
Sec. 812. Renewal of certain procurement technical assistance cooperative
agreements at funding levels at least sufficient to support ex-
isting programs.
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION
AND MANAGEMENT
Sec. 901. Change in title of Secretary of the Navy to Secretary of the Navy
and Marine Corps.
Sec. 902. Report on implementation of United States Northern Command.
Sec. 903. National defense mission of Coast Guard to be included in future
Quadrennial Defense Reviews.
Sec. 904. Change in year for submission of Quadrennial Defense Review.
Sec. 905. Report on effect of noncombat operations on combat readiness of the
Armed Forces.
Sec. 906. Conforming amendment to reflect disestablishment of Department of
Defense Consequence Management Program Integration Office.
Sec. 907. Authority to accept gifts for National Defense University.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 2002.
Sec. 1003. Uniform standards throughout Department of Defense for exposure
of personnel to pecuniary liability for loss of Government prop-
erty.
Sec. 1004. Accountable officials in the Department of Defense.
Sec. 1005. Improvements in purchase card management.
Sec. 1006. Authority to transfer funds within a major acquisition program from
procurement to RDT&E.
Sec. 1007. Development and procurement of financial and nonfinancial man-
agement systems.
Subtitle B—Reports
Sec. 1011. After-action reports on the conduct of military operations conducted
as part of Operation Enduring Freedom.
Sec. 1012. Report on biological weapons defense and counter-proliferation.
Sec. 1013. Requirement that Department of Defense reports to Congress be ac-
companied by electronic version.
Sec. 1014. Strategic force structure plan for nuclear weapons and delivery sys-
tems.
Sec. 1015. Report on establishment of a joint national training complex and
joint opposing forces.
Sec. 1016. Repeal of various reports required of the Department of Defense.
Sec. 1017. Report on the role of the Department of Defense in supporting
homeland security.
Sec. 1018. Study of short-term and long-term effects of nuclear earth pene-
trator weapon.
Sec. 1019. Study of short-term and long-term effects of nuclear-tipped ballistic
missile interceptor.
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Sec. 1021. Sense of Congress on maintenance of a reliable, flexible, and robust
strategic deterrent.
Subtitle C—Other Matters
Sec. 1021. Sense of Congress on maintenance of a reliable, flexible, and robust
strategic deterrent.
Sec. 1022. Time for transmittal of annual defense authorization legislative pro-
posal.
Sec. 1023. Technical and clerical amendments.
Sec. 1024. War risk insurance for vessels in support of NATO-approved oper-
ations.
Sec. 1025. Conveyance, Navy drydock, Portland, Oregon.
Sec. 1026. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1027. Use for law enforcement purposes of DNA samples maintained by
Department of Defense for identification of human remains.
Sec. 1028. Sense of Congress concerning aircraft carrier force structure.
Sec. 1029. Enhanced authority to obtain foreign language services during peri-
ods of emergency.
Sec. 1030. Surface combatant industrial base.
Sec. 1031. Enhanced cooperation between United States and Russian Federa-
tion to promote mutual security.
Sec. 1032. Transfer of funds to increase amounts for PAC–3 missile procure-
ment and Israeli Arrow Program.
Sec. 1033. Assignment of members to assist Immigration and Naturalization
Service and Customs Service.
Sec. 1034. Sense of Congress on prohibition of use of funds for International
Criminal Court.
TITLE XI—CIVILIAN PERSONNEL MATTERS
Sec. 1101. Eligibility of Department of Defense nonappropriated fund employ-
ees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum
severance payments.
Sec. 1103. Common occupational and health standards for differential pay-
ments as a consequence of exposure to asbestos.
Sec. 1104. Continuation of Federal Employee Health Benefits program eligi-
bility.
Sec. 1105. Triennial full-scale Federal wage system wage surveys.
Sec. 1106. Certification for Department of Defense professional accounting po-
sitions.
TITLE XII—MATTERS RELATING TO OTHER NATIONS
Sec. 1201. Support of United Nations-sponsored efforts to inspect and monitor
Iraqi weapons activities.
Sec. 1202. Strengthening the defense of Taiwan.
Sec. 1203. Administrative services and support for foreign liaison officers.
Sec. 1204. Additional countries covered by loan guarantee program.
Sec. 1205. Limitation on funding for Joint Data Exchange Center in Moscow.
Sec. 1206. Limitation on number of military personnel in Colombia.
TITLE XIII—COOPERATIVE THREAT REDUCTION WITH
STATES OF THE FORMER SOVIET UNION
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.
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Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out under
Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile material
storage facility.
Sec. 1306. Sense of Congress and report requirement regarding Russian pro-
liferation to Iran.
Sec. 1307. Prohibition against use of Cooperative Threat Reduction funds out-
side the States of the former Soviet Union.
Sec. 1308. Limited waiver of restriction on use of funds.
Sec. 1309. Limitation on use of funds until submission of report on defense
and military contacts activities.
TITLE XIV—UTAH TEST AND TRAINING RANGE
Sec. 1401. Definition of Utah Test and Training Range.
Sec. 1402. Military operations and overflights at Utah Test and Training
Range.
Sec. 1403. Designation and management of lands in Utah Test and Training
Range.
Sec. 1404. Designation of Pilot Range Wilderness.
Sec. 1405. Designation of Cedar Mountain Wilderness.
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title; definition.
TITLE XXI—ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 2002
projects.
TITLE XXII—NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 2002
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.
TITLE XXIV—DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Improvements to military family housing units.
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Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 2000
project.
Sec. 2406. Modification of authority to carry out certain fiscal year 1999
project.
Sec. 2407. Modification of authority to carry out certain fiscal year 1997
project.
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 2000 projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 projects.
Sec. 2704. Effective date.
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military
Family Housing Changes
Sec. 2801. Changes to alternative authority for acquisition and improvement of
military housing.
Sec. 2802. Modification of authority to carry out construction projects as part
of environmental response action.
Sec. 2803. Leasing of military family housing in Korea.
Sec. 2804. Pilot housing privatization authority for acquisition or construction
of military unaccompanied housing.
Subtitle B—Real Property and Facilities Administration
Sec. 2811. Agreements with private entities to limit encroachments and other
constraints on military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource conserva-
tion purposes.
Sec. 2813. National emergency exemption from screening and other require-
ments of McKinney-Vento Homeless Assistance Act for prop-
erty used in support of response activities.
Sec. 2814. Demonstration program on reduction in long-term facility mainte-
nance costs.
Sec. 2815. Expanded authority to transfer property at military installations to
be closed to persons who construct or provide military family
housing.
Subtitle C—Land Conveyances
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PART I—ARMY CONVEYANCES
Sec. 2821. Land conveyances, lands in Alaska no longer required for National
Guard purposes.
Sec. 2822. Land conveyance, Fort Campbell, Kentucky.
Sec. 2823. Land conveyance, Army Reserve Training Center, Buffalo, Min-
nesota.
Sec. 2824. Land conveyance, Fort Bliss, Texas
Sec. 2825. Land conveyance, Fort Hood, Texas.
Sec. 2826. Land conveyance, Fort Monmouth, New Jersey.
PART II—NAVY CONVEYANCES
Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San Diego,
California.
Sec. 2832. Boundary adjustments, Marine Corps Base, Quantico, and Prince
William Forest Park, Virginia.
PART III—AIR FORCE CONVEYANCES
Sec. 2841. Land conveyances, Wendover Air Force Base Auxiliary Field, Ne-
vada.
Subtitle D—Other Matters
Sec. 2861. Easement for construction of roads or highways, Marine Corps
Base, Camp Pendleton, California.
Sec. 2862. Sale of excess treated water and wastewater treatment capacity, Ma-
rine Corps Base, Camp Lejeune, North Carolina.
Sec. 2863. Ratification of agreement regarding Adak Naval Complex, Alaska,
and related land conveyances.
Sec. 2864. Special requirements for adding military installation to closure list.
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. Environmental and other defense activities.
Subtitle B—Department of Energy National Security
Authorizations General Provisions
Sec. 3120. Short title; definitions.
Sec. 3121. Reprogramming.
Sec. 3122. Minor construction projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction activi-
ties.
Sec. 3127. Funds available for all national security programs of the Depart-
ment of Energy.
Sec. 3128. Availability of funds.
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Sec. 3129. Transfer of defense environmental management funds.
Sec. 3130. Transfer of weapons activities funds.
Sec. 3131. Scope of authority to carry out plant projects.
Subtitle C—Program Authorizations, Restrictions, and
Limitations
Sec. 3141. One-year extension of panel to assess the reliability, safety, and se-
curity of the United States nuclear stockpile.
Sec. 3142. Transfer to National Nuclear Security Administration of Depart-
ment of Defense’s Cooperative Threat Reduction program re-
lating to elimination of weapons grade plutonium in Russia.
Sec. 3143. Repeal of requirement for reports on obligation of funds for pro-
grams on fissile materials in Russia.
Sec. 3144. Annual certification to the President and Congress on the condition
of the United States nuclear weapons stockpile.
Sec. 3145. Plan for achieving one-year readiness posture for resumption by the
United States of underground nuclear weapons tests.
Sec. 3146. Prohibition on development of low-yield nuclear weapons.
Subtitle D—Matters Relating to Defense Environmental
Management
Sec. 3151. Defense environmental management cleanup reform program.
Sec. 3152. Report on status of environmental management initiatives to accel-
erate the reduction of environmental risks and challenges posed
by the legacy of the Cold War.
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY
BOARD
Sec. 3201. Authorization.
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.
TITLE XXXIV—NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
TITLE XXXV—MARITIME ADMINISTRATION
Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL–24).
Sec. 3503. Financial assistance to States for preparation of transferred obsolete
ships for use as artificial reefs.
Sec. 3504. Independent analysis of title XI insurance guarantee applications.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
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(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.
DIVISION A—DEPARTMENT OF
DEFENSE AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of
Appropriations
SEC. 101. ARMY.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for procurement for the Army as follows:
(1) For aircraft, $2,300,327,000.
(2) For missiles, $1,693,896,000.
(3) For weapons and tracked combat vehicles,
$2,372,958,000.
(4) For ammunition, $1,320,026,000.
(5) For other procurement, $6,119,447,000.
SEC. 102. NAVY AND MARINE CORPS.
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 2003 for procurement for the Navy
as follows:
(1) For aircraft, $8,971,555,000.
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(2) For weapons, including missiles and tor-
pedoes, $1,916,617,000.
(3) 
For 
shipbuilding 
and 
conversion,
$9,279,494,000.
(4) For other procurement, $4,527,763,000.
(b) MARINE CORPS.—Funds are hereby authorized to
be appropriated for fiscal year 2003 for procurement for
the Marine Corps in the amount of $1,351,983,000.
(c) NAVY AND MARINE CORPS AMMUNITION.—Funds
are hereby authorized to be appropriated for fiscal year
2003 for procurement of ammunition for the Navy and
the Marine Corps in the amount of $1,104,453,000.
SEC. 103. AIR FORCE.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for procurement for the Air Force as fol-
lows:
(1) For aircraft, $12,522,755,000.
(2) For missiles, $3,482,639,000.
(3) For ammunition, $1,176,864,000.
(4) For other procurement, $10,907,730,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for Defense-wide procurement in the
amount of $2,621,009,000.
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SEC. 105. DEFENSE INSPECTOR GENERAL.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for procurement for the Inspector General
of the Department of Defense in the amount of
$2,000,000.
SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.
There is hereby authorized to be appropriated for fis-
cal year 2003 the amount of $1,490,199,000 for—
(1) the destruction of lethal chemical agents
and munitions in accordance with section 1412 of
the Department of Defense Authorization Act, 1986
(50 U.S.C. 1521); and
(2) the destruction of chemical warfare 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
fiscal year 2003 for the Department of Defense for pro-
curement for carrying out health care programs, projects,
and activities of the Department of Defense in the total
amount of $278,742,000.
SEC. 111. SHIPBUILDING INITIATIVE.
(a) USE OF SPECIFIED SHIPBUILDING AUTHORIZA-
TION AMOUNT SUBJECT TO CONTRACTOR AGREEMENT.—
Of the amounts authorized to be appropriated by section
102(a)(3) for fiscal year 2003, $810,000,000 shall be
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available for shipbuilding programs of the Navy either in
accordance with subsection (b) or in accordance with sub-
section (c).
(b) DDG–51 AUTHORIZATION
IF
AGREEMENT
REACHED.—If as of the date of the enactment of this Act
the Secretary of the Navy has submitted to Congress a
certification described in subsection (d), then the amount
referred to in subsection (a) shall be available for procure-
ment of one Arleigh Burke class (DDG-51) destroyer.
(c) 
AUTHORIZATION
IF
AGREEMENT
NOT
REACHED.—If as of the date of the enactment of this Act
the Secretary of the Navy has not submitted to Congress
a certification described in subsection (d), then the
amount referred to in subsection (a) shall be available as
follows:
(1) $415,000,000 shall be available for advance
procurement for Virginia class submarines.
(2) $210,000,000 shall be available for advance
procurement for cruiser conversion.
(3) $185,000,000 shall be available for nuclear-
powered submarine (SSN) engineered refueling over-
haul.
(d) CERTIFICATION.—A certification referred to in
subsections (b) and (c) is a certification by the Secretary
of the Navy that the prime contractor for the Virginia
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class submarine program has entered into a binding agree-
ment with the United States to expend from its own funds
an amount not less than $385,000,000 for economic order
quantity procurement of nuclear and nonnuclear compo-
nents for Virginia class submarines beginning in fiscal
year 2003.
(e) MULTIYEAR PROCUREMENT AUTHORITY.—(1) If
the terms of an agreement described in subsection (d) be-
tween the United States and the prime contractor for the
Virginia class submarine program include a requirement
for the Secretary of the Navy to seek to acquire Virginia
class submarines through a multiyear procurement con-
tract, the Secretary of the Navy may, in accordance with
section 2306b of title 10, United States Code, enter into
a multiyear contract for procurement of Virginia class
submarines, beginning with the fiscal year 2003 program
year.
(2)(A) In the case of a contract authorized by para-
graph (1), a certification under subsection (i)(1)(A) of sec-
tion 2306b of title 10, United States Code, with respect
to that contract may only be submitted if the certification
includes an additional certification that each of the condi-
tions specified in subsection (a) of that section has been
satisfied with respect to that contract.
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(B) Upon transmission to Congress of a certification
referred to in subparagraph (A) with respect to a contract
authorized by paragraph (1), the contract may then be
entered into only after a period of 30 days has elapsed
after the date of the transmission of such certification.
SEC. 112. PROHIBITION ON ACQUISITION OF CHAMPION-
CLASS, T-5 FUEL TANKERS.
(a) PROHIBITION.—Except as provided in subsection
(b), a Champion-class fuel tanker, known as a T-5, which
features a double hull and reinforcement against ice dam-
age, may not be acquired for the Military Sealift Com-
mand or for other Navy purposes.
(b) TERMINATION.—The prohibition in sub-
section (a) shall not apply if the acquisition of a T-
5 tanker is specifically authorized in a defense au-
thorization Act that—
(1) is enacted after the date of the enactment
of this Act;
(2) specifically refers to subsection (a); and
(3) specifically states that the prohibition in
such subsection does not apply.
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Subtitle C—Air Force Programs
SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR
C–130J AIRCRAFT PROGRAM.
(a) MULTIYEAR AUTHORITY.—Beginning with the
fiscal year 2003 program year, the Secretary of the Air
Force may, in accordance with section 2306b of title 10,
United States Code, enter into a multiyear contract for
procurement of C-130J aircraft.
(b) LIMITATION.—The Secretary of Defense may not
enter into a contract authorized by subsection (a) until—
(1) the Secretary submits to the congressional
defense committees a certification described in sub-
section (c); and
(2) a period of 30 days has expired after such
certification is submitted.
(c) REQUIRED CERTIFICATION AS TO PROGRESS TO-
WARD SUCCESSFUL OPERATIONAL TEST AND EVALUA-
TION.—A certification under subsection (b)(1) is a certifi-
cation by the Secretary of Defense that the C-130J pro-
gram is making satisfactory progress towards a successful
operational test and evaluation.
(d) REQUIRED CERTIFICATION WITH RESPECT TO
MULTIYEAR CONTRACTING CONDITIONS.—(1) In the case
of a contract authorized by subsection (a) of this section,
a certification under subsection (i)(1)(A) of section 2306b
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of title 10, United States Code, with respect to that con-
tract may only be submitted if the certification includes
an additional certification that each of the conditions spec-
ified in subsection (a) of that section has been satisfied
with respect to that contract.
(2) Upon transmission to Congress of a certification
referred to in paragraph (1) with respect to a contract
authorized by subsection (a), the contract may then be en-
tered into only after a period of 30 days has elapsed after
the date of the transmission of such certification.
SEC. 122. REALLOCATION OF CERTAIN FUNDS FOR AIR
FORCE RESERVE COMMAND F–16 AIRCRAFT
PROCUREMENT.
Of the funds authorized to be appropriated by section
103(1) that are available for procurement of F–16 aircraft
for the Air Force Reserve Command, $14,400,000 shall
be available for 36 Litening II modernization upgrade kits
for the F–16 block 25 and block 30 aircraft (rather than
for Litening AT pods for such aircraft).
Subtitle D—Other Programs
SEC. 141. REVISIONS TO MULTIYEAR CONTRACTING AU-
THORITY.
(a) USE OF PROCUREMENT AND ADVANCE PROCURE-
MENT FUNDS.—Section 2306b(i) of title 10, United
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States Code, is amended by adding at the end the fol-
lowing new paragraph:
‘‘(4)(A) Unless otherwise authorized by law, the Sec-
retary of Defense may obligate funds for procurement of
an end item under a multiyear contract for the purchase
of property only for procurement of a complete and usable
end item.
‘‘(B) Unless otherwise authorized by law, the Sec-
retary of Defense may obligate funds appropriated for any
fiscal year for advance procurement under a multiyear
contract for the purchase of property only for the procure-
ment of those long-lead items necessary in order to meet
a planned delivery schedule for complete major end items
that are programmed under the contract to be acquired
with funds appropriated for a subsequent fiscal year.’’.
(b) EFFECTIVE DATE.—Paragraph (4) of section
2306b(i) of title 10, United States Code, as added by sub-
section (a), shall not apply with respect to any multiyear
contract authorized by law before the date of the enact-
ment of this Act.
SEC. 142. TRANSFER OF TECHNOLOGY ITEMS AND EQUIP-
MENT IN SUPPORT OF HOMELAND SECURITY.
(a) IN GENERAL.—Subchapter III of chapter 148 of
title 10, United States Code, is amended by adding at the
end the following new section:
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‘‘§ 2520. Transfer of technology items and equipment
in support of homeland security
‘‘The Secretary of Defense shall enter into an agree-
ment with an independent, nonprofit, technology-oriented
entity that has demonstrated the ability to facilitate the
transfer of defense technologies, developed by both the pri-
vate and public sectors, to aid Federal, State, and local
first responders. Under the agreement the entity shall de-
velop and deploy technology items and equipment, through
coordination between Government agencies and private
sector, commercial developers and suppliers of technology,
that will enhance public safety and shall—
‘‘(1) work in coordination with the InterAgency
Board for Equipment Standardization and Inter-
operability;
‘‘(2) develop technology items and equipment
that meet the standardization requirements estab-
lished by the Board;
‘‘(3) evaluate technology items and equipment
that have been identified using the standards devel-
oped by the Board and other state-of-the-art tech-
nology items and equipment that may benefit first
responders;
‘‘(4) identify and coordinate among the public
and private sectors research efforts applicable to na-
tional security and homeland security;
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‘‘(5) facilitate the timely transfer of technology
items and equipment between public and private
sources;
‘‘(6) eliminate redundant research efforts with
respect to technologies to be deployed to first re-
sponders;
‘‘(7) expedite the advancement of high priority
projects from research through implementation of
initial manufacturing; and
‘‘(8) establish an outreach program, in coordi-
nation with the Board, with first responders to fa-
cilitate awareness of available technology items and
equipment to support crisis response.’’.
(b) DEADLINE FOR AGREEMENT.—The Secretary of
Defense shall enter into the agreement required by section
2520 of title 10, United States Code (as added by sub-
section (a)) not later than January 15, 2003.
(c) STRATEGIC PLAN.—The entity described in sec-
tion 2520 of such title shall develop a strategic plan to
carry out the goals described in such section, which shall
include identification of—
(1) the initial technology items and equipment
considered for development; and
(2) the program schedule timelines for such
technology items and equipment.
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(d) REPORT REQUIRED.—Not later than March 15,
2003, the Secretary of Defense shall submit to the Com-
mittees on Armed Services of the Senate and the House
of Representatives a report on—
(1) the actions taken to carry out such section
2520;
(2) the relationship of the entity described in
such section to the InterAgency Board for Equip-
ment Standardization and Interoperability; and
(3) the strategic plan of such entity to meet the
goals described in such section.
(e) CLERICAL AMENDMENT.—The table of sections
at the beginning of subchapter III of chapter 148 of title
10, United States Code, is amended by adding at the end
the following new item:
‘‘2520. Transfer of technology items and equipment in support of homeland se-
curity.’’.
SEC. 143. DESTRUCTION OF EXISTING STOCKPILE OF LE-
THAL CHEMICAL AGENTS AND MUNITIONS.
(a) PROGRAM MANAGEMENT.—The Secretary of De-
fense shall ensure that the program for destruction of the
United States stockpile of lethal chemical agents and mu-
nitions is managed as a major defense acquisition program
(as defined in section 2430 of title 10, United States
Code) in accordance with the essential elements of such
programs as may be determined by the Secretary.
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(b) REQUIREMENT FOR UNDER SECRETARY OF DE-
FENSE (COMPTROLLER) ANNUAL CERTIFICATION.—Be-
ginning with respect to the budget request for fiscal year
2004, the Under Secretary of Defense (Comptroller) shall
submit to the congressional defense committees on an an-
nual basis a certification that the budget request for the
chemical agents and munitions destruction program has
been submitted in accordance with the requirements of ap-
plicable Federal laws.
SEC. 144. REPORT ON UNMANNED AERIAL VEHICLE SYS-
TEMS.
(a) REPORT.—Not later than January 1, 2003, the
Secretary of Defense shall submit to Congress a report
on unmanned aerial vehicle systems of the Department of
Defense.
(b) MATTERS TO BE INCLUDED CONCERNING UN-
MANNED AERIAL VEHICLE SYSTEMS.—The Secretary
shall include in the report under subsection (a) the fol-
lowing, shown for each system referred to in that sub-
section:
(1) A description of the infrastructure that the
Department of Defense has (or is planning) for the
system.
(2) A description of the operational require-
ments document (ORD) for the system.
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(3) A description of the physical infrastructure
of the Department for training and basing.
(4) A description of the manner in which the
Department is interfacing with the industrial base.
(5) A description of the acquisition plan for the
system.
(c) SUGGESTIONS FOR CHANGES IN LAW.—The Sec-
retary shall also include in the report under subsection (a)
such suggestions as the Secretary considers appropriate
for changes in law that would facilitate the way the De-
partment acquires unmanned aerial vehicle systems.
SEC. 145. REPORT ON IMPACT OF ARMY AVIATION MOD-
ERNIZATION PLAN ON THE ARMY NATIONAL
GUARD.
(a) REPORT BY CHIEF OF THE NATIONAL GUARD
BUREAU.—Not later than February 1, 2003, the Chief of
the National Guard Bureau shall submit to the Commit-
tees on Armed Services of the Senate and the House of
Representatives a report on the requirements for Army
National Guard aviation. The report shall include the fol-
lowing:
(1) An analysis of the impact of the Army Avia-
tion Modernization Plan on the ability of the Army
National Guard to conduct its aviation missions.
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(2) The plan under that aviation modernization
plan for the transfer of aircraft from the active com-
ponent of the Army to the Army reserve compo-
nents, including a timeline for those transfers.
(3) The progress, as of January 1, 2003, in
carrying out the transfers under the plan referred to
in paragraph (2).
(4) An evaluation of the suitability of existing
Commercial Off The Shelf (COTS) light-twin engine
helicopters for performance of Army National Guard
aviation missions.
(b) VIEWS
OF
THE CHIEF
OF STAFF
OF
THE
ARMY.—If, before the report under subsection (a) is sub-
mitted, the Chief of the National Guard Bureau receives
from the Chief of Staff of the Army the views of the Chief
of Staff on the matters to be covered in the report, the
Chief of the Bureau shall include those views with the re-
port as submitted under subsection (a).
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TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of
Appropriations
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for the use of the Department of Defense
for research, development, test, and evaluation as follows:
(1) For the Army, $6,933,319,000.
(2) For the Navy, $13,274,540,000.
(3) For the Air Force, $18,803,184,000.
(4) 
For 
Defense-wide 
activities,
$17,413,291,000, of which $222,054,000 is author-
ized for the Director of Operational Test and Eval-
uation.
SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECH-
NOLOGY.
(a) FISCAL YEAR 2003.—Of the amounts authorized
to be appropriated by section 201, $10,023,658,000 shall
be available for the Defense Science and Technology Pro-
gram, including basic research, applied research, and ad-
vanced technology development projects.
(b) BASIC RESEARCH, APPLIED RESEARCH, AND AD-
VANCED TECHNOLOGY DEVELOPMENT DEFINED.—For
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purposes of this section, the term ‘‘basic research, applied
research, and advanced technology development’’ means
work funded in program elements for defense research and
development under Department of Defense category 6.1,
6.2, or 6.3.
Subtitle 
B—Program 
Require-
ments, Restrictions, and Limita-
tions
SEC. 211. RAH–66 COMANCHE AIRCRAFT PROGRAM.
(a) LIMITATION.—None of the funds authorized to
be appropriated for fiscal year 2003 for engineering and
manufacturing development for the RAH–66 Comanche
aircraft program may be obligated until the Secretary of
the Army submits to the congressional defense committees
a report, prepared in coordination with the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics, containing an accurate estimate of funds required to
complete engineering and manufacturing development for
that aircraft and the new time line and plan for bringing
that aircraft to initial operational capability, as called for
in the joint explanatory statement of the committee of con-
ference on the bill S. 1438 of the One Hundred Seventh
Congress (at page 535 of House Report 107–333, sub-
mitted December 12, 2001).
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(b) LIMITATION ON TOTAL COST OF ENGINEERING
AND
MANUFACTURING
DEVELOPMENT.—The 
total
amount obligated or expended for engineering and manu-
facturing development under the RAH–66 Comanche air-
craft program may not exceed $6,000,000,000.
(c) ADJUSTMENT
OF LIMITATION AMOUNTS.—(1)
Subject to paragraph (2), the Secretary of the Army shall
adjust the amount of the limitation set forth in subsection
(b) by the following amounts:
(A) The amounts of increases or decreases in
costs attributable to economic inflation after Sep-
tember 30, 2002.
(B) The amounts of increases or decreases in
costs attributable to compliance with changes in
Federal, State, or local laws enacted after Sep-
tember 30, 2002.
(2) Before making any adjustment under paragraph
(1) in an amount greater than $20,000,000, the Secretary
of the Army shall submit to the congressional defense com-
mittees notice in writing of the proposed increase.
(d) ANNUAL DOD INSPECTOR GENERAL REVIEW.—
(1) Not later than March 1 of each year, the Department
of Defense Inspector General shall review the RAH–66
Comanche aircraft program and submit to Congress a re-
port on the results of the review.
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(2) The report submitted on the program each year
shall include the following:
(A) The extent to which engineering and manu-
facturing development under the program is meeting
the goals established for engineering and manufac-
turing development under the program, including the
performance, cost, and schedule goals.
(B) The status of modifications expected to
have a significant effect on cost, schedule, or per-
formance of RAH–66 aircraft.
(C) The plan for engineering and manufac-
turing development (leading to production) under
the program for the fiscal year that begins in the
following year.
(D) A conclusion regarding whether the plan
referred to in subparagraph (C) is consistent with
the limitation in subsection (a).
(E) A conclusion regarding whether engineering
and manufacturing development (leading to produc-
tion) under the program is likely to be completed at
a total cost not in excess of the amount specified in
subsection (a).
(3) No report is required under this subsection after
the RAH–66 aircraft has completed engineering and man-
ufacturing development.
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(e) LIMITATION ON OBLIGATION OF FUNDS.—Of the
total amount authorized to be appropriated for the RAH–
66 Comanche aircraft program for research, development,
test, and evaluation for a fiscal year, not more than 90
percent of that amount may be obligated until the Depart-
ment of Defense Inspector General submits to Congress
the report required to be submitted in that fiscal year
under subsection (d).
SEC. 212. EXTENSION OF REQUIREMENT RELATING TO
MANAGEMENT RESPONSIBILITY FOR NAVAL
MINE COUNTERMEASURES PROGRAMS.
Section 216(a) of the National Defense Authorization
Act for Fiscal Years 1992 and 1993 (Public Law 102–
190; 105 Stat. 1317), as most recently amended by sec-
tion 211 of the Strom Thurmond National Defense Au-
thorization Act for Fiscal Year 1999 (Public Law 105–
261; 112 Stat. 1946), is amended by striking ‘‘through
2003’’ and inserting ‘‘through 2008’’.
SEC. 213. EXTENSION OF AUTHORITY TO CARRY OUT PILOT
PROGRAM FOR REVITALIZING THE LABORA-
TORIES AND TEST AND EVALUATION CEN-
TERS OF THE DEPARTMENT OF DEFENSE.
Section 246 of the Strom Thurmond National De-
fense Authorization Act for Fiscal Year 1999 (Public Law
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105–261; 112 Stat. 1955; 10 U.S.C. 2358 note) is
amended—
(1) in subsection (a)(1), by inserting before the
period at the end the following: ‘‘, and to dem-
onstrate improved efficiency in the performance of
the research, development, test, and evaluation func-
tions of the Department of Defense’’;
(2) in subsection (a)(4), by striking ‘‘for a pe-
riod’’ and all that follows through the period at the
end and inserting ‘‘until March 1, 2008.’’;
(3) in subsection (b)(2), by striking ‘‘Promptly
after’’ and all that follows through ‘‘The report shall
contain’’ and inserting ‘‘Not later than December 31
of each year, the Secretary of Defense shall submit
to the congressional defense committees a report on
the activities of the pilot program during the pre-
ceding fiscal year. Each such report shall contain,
for each laboratory or center in the pilot program,’’;
and
(4) by adding at the end of subsection (b) the
following new paragraph:
‘‘(3) Not later than March 1, 2007, the Secretary of
Defense shall submit to the committees referred to in
paragraph (2) the Secretary’s recommendation as to
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whether, and to what extent, the authority to carry out
the pilot program should be extended.’’.
SEC. 214. REVISED REQUIREMENTS FOR PLAN FOR MANU-
FACTURING TECHNOLOGY PROGRAM.
(a) STREAMLINED CONTENTS OF PLAN.—Subsection
(e) of section 2521 of title 10, United States Code, is
amended by striking ‘‘prepare a five-year plan’’ in para-
graph (1) and all that follows through the end of subpara-
graph (B) of paragraph (2) and inserting the following:
‘‘prepare and maintain a five-year plan for the program.
‘‘(2) The plan shall establish the following:
‘‘(A) The overall manufacturing technology ob-
jectives, milestones, priorities, and investment strat-
egy for the program.
‘‘(B) The specific objectives of, and funding for
the program by, each military department and each
Defense Agency participating in the program.’’.
(b) BIENNIAL REPORT.—Such subsection is further
amended in paragraph (3)—
(1) by striking ‘‘annually’’ and inserting ‘‘bien-
nially’’; and
(2) by striking ‘‘for a fiscal year’’ and inserting
‘‘for each even-numbered fiscal year’’.
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In managing the Initiative, the Manager shall report di-
rectly to the Under Secretary of Defense for Acquisition,
Technology, and Logistics.
‘‘(2) The Secretary shall establish a board of direc-
tors (hereinafter in this section referred to as the ‘Board’),
composed of the acquisition executive of each military de-
partment, the members of the Joint Requirements Over-
sight Council, and the commander of the Joint Forces
Command. The Board shall assist the Manager in man-
aging the Initiative.
‘‘(3) The Secretary shall establish, under the auspices
of the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, a panel of highly qualified scientists
and engineers. The panel shall advise the Under Secretary
on matters relating to the Initiative.
‘‘(d) DUTIES
OF MANAGER.—The Manager shall
have following duties:
‘‘(1) To identify, in consultation with the
Board, promising technologies that have been dem-
onstrated in science and technology programs of the
Department.
‘‘(2) To identify potential sponsors in the De-
partment to undertake the transition of such tech-
nologies into production.
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‘‘(3) To work with the science and technology
community and the acquisition community to de-
velop memoranda of agreement, joint funding agree-
ments, and other cooperative arrangements to pro-
vide for the transition of such technologies into pro-
duction.
‘‘(4) Provide funding support for projects se-
lected under subsection (e).
‘‘(e) JOINTLY FUNDED PROJECTS.—(1) The acquisi-
tion executive of each military department shall identify
technology projects of that military department to rec-
ommend for funding support under the Initiative and shall
submit to the Manager a list of such recommended
projects, ranked in order of priority. Such executive shall
identify such projects, and establish priorities among such
projects, using a competitive process, on the basis of the
greatest potential benefits in areas of interest identified
by the Secretary of that military department.
‘‘(2) The Manager, in consultation with the Board,
shall select projects for funding support from among the
projects on the lists submitted under paragraph (1). From
the funds made available to the Manager for the Initiative,
the Manager shall provide funds for each selected project
in an amount determined by mutual agreement between
the Manager and the acquisition executive of the military
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department concerned, but not less than 50 percent of the
total cost of the project.
‘‘(3) The acquisition executive of the military depart-
ment concerned shall manage each project selected under
paragraph (2) that is undertaken by the military depart-
ment. Memoranda of agreement, joint funding agree-
ments, and other cooperative arrangements between the
science and technology community and the acquisition
community shall be used in carrying out the project if the
acquisition executive determines that it is appropriate to
do so to achieve the objectives of the project.
‘‘(f) REQUIREMENT FOR PROGRAM ELEMENT.—In
the budget justification materials submitted to Congress
in support 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 amount requested
for activities of the Initiative shall be set forth in a sepa-
rate program element within amounts requested for re-
search, development, test, and evaluation for Defense-wide
activities.
‘‘(g) DEFINITION OF ACQUISITION EXECUTIVE.—In
this section, the term ‘acquisition executive’, with respect
to a military department, means the official designated as
the senior procurement executive for that military depart-
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ment under section 16(3) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 414(3)).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2359 the following new
item:
‘‘2359a. Technology Transition Initiative.’’.
SEC. 216. DEFENSE ACQUISITION CHALLENGE PROGRAM.
(a) IN GENERAL.—(1) Chapter 139 of title 10,
United States Code, is amended by inserting after section
2359a (as added by section 215) the following new section:
‘‘§ 2359b. Defense Acquisition Challenge Program
‘‘(a) PROGRAM REQUIRED.—The Secretary of De-
fense shall carry out a program to provide opportunities
for the increased introduction of innovative and cost-sav-
ing technology in acquisition programs of the Department
of Defense. The program, to be known as the Defense Ac-
quisition Challenge Program (hereinafter in this section
referred to as the ‘Challenge Program’), shall provide any
person or activity within or outside the Department of De-
fense with the opportunity to propose alternatives, to be
known as challenge proposals, at the component, sub-
system, or system level of an existing Department of De-
fense acquisition program that would result in improve-
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ments in performance, affordability, manufacturability, or
operational capability of that acquisition program.
‘‘(b) PANEL.—(1) In carrying out the Challenge Pro-
gram, the Secretary shall establish a panel of highly quali-
fied scientists and engineers (hereinafter in this section
referred to as the ‘Panel’) under the auspices of the Under
Secretary of Defense for Acquisition, Technology, and Lo-
gistics. The duty of the Panel shall be to carry out evalua-
tions of challenge proposals under subsection (c).
‘‘(2) A member of the Panel may not participate in
any evaluation of a challenge proposal under subsection
(c) if at any time within the previous five years that mem-
ber has, in any capacity, participated in or been affiliated
with the acquisition program for which the challenge pro-
posal is submitted.
‘‘(c) EVALUATION BY PANEL.—(1) Under procedures
prescribed by the Secretary, a person or activity within
or outside the Department of Defense may submit chal-
lenge proposals to the Panel.
‘‘(2) The Panel shall carry out an evaluation of each
challenge proposal submitted under paragraph (1) to de-
termine each of the following criteria:
‘‘(A) Whether the challenge proposal has merit.
‘‘(B) Whether the challenge proposal is likely to
result in improvements in performance, affordability,
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manufacturability, or operational capability at the
component, subsystem, or system level of the appli-
cable acquisition program.
‘‘(C) Whether the challenge proposal could be
implemented rapidly in the applicable acquisition
program.
‘‘(3) If the Panel determines that a challenge pro-
posal satisfies each of the criteria specified in paragraph
(2), the person or activity submitting that challenge pro-
posal shall be provided an opportunity to submit such
challenge proposal for a full review and evaluation under
subsection (d).
‘‘(d) FULL REVIEW AND EVALUATION.—(1) Under
procedures prescribed by the Secretary, for each challenge
proposal submitted for a full review and evaluation as pro-
vided in subsection (c)(3), the office carrying out the ap-
plicable acquisition program, and the prime system con-
tractor carrying out such program, shall jointly conduct
a full review and evaluation of the challenge proposal.
‘‘(2) The full review and evaluation shall, independent
of the determination of the Panel under subsection (c)(2),
determine each of the matters specified in subparagraphs
(A), (B), and (C) of such subsection.
‘‘(e) ACTION UPON FAVORABLE FULL REVIEW AND
EVALUATION.—(1) Under procedures prescribed by the
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Secretary, each challenge proposal determined under a full
review and evaluation to satisfy each of the criteria speci-
fied in subsection (c)(2) shall be considered by the prime
system contractor for incorporation into the applicable ac-
quisition program as a new technology insertion at the
component, subsystem, or system level.
‘‘(2) The Secretary shall encourage the adoption of
each challenge proposal referred to in paragraph (1) by
providing suitable incentives to the office carrying out the
applicable acquisition program and the prime system con-
tractor carrying out such program.
‘‘(f) ACCESS TO TECHNICAL RESOURCES.—The Sec-
retary shall ensure that the Panel (in carrying out evalua-
tions of challenge proposals under subsection (c)) and each
office and prime system contractor (in conducting a full
review and evaluation under subsection (d)) have the au-
thority to call upon the technical resources of the labora-
tories, research, development, and engineering centers,
test and evaluation activities, and other elements of the
Department.
‘‘(g) ELIMINATION OF CONFLICTS OF INTEREST.—
In carrying out each evaluation under subsection (c) and
full review under subsection (d), the Secretary shall ensure
the elimination of conflicts of interest.
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‘‘(h) REPORT.—The Secretary shall submit to Con-
gress, with the submission of the budget request for the
Department of Defense for each fiscal year during which
the Challenge Program is carried out, a report on the
Challenge Program for that fiscal year. The report shall
include the number and scope of challenge proposals sub-
mitted, evaluated, subjected to full review, and adopted.
‘‘(i) SUNSET.—The authority to carry out this section
shall terminate on September 30, 2007.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2359a (as added by section 215) the following
new item:
‘‘2359b. Defense Acquisition Challenge Program.’’.
(b) INITIAL FUNDING.—(1) Of the funds authorized
to be appropriated by section 201(4) for Defense-wide re-
search, development, test, and evaluation for fiscal year
2003, $25,000,000 shall be available in program element
0603826D8Z for the Defense Acquisition Challenge Pro-
gram required by section 2359b of title 10, United States
Code, as added by subsection (a).
(2) The funds provided under paragraph (1) may be
used only for review and evaluation of challenge proposals,
and not for implementation of challenge proposals.
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Subtitle C—Ballistic Missile
Defense
SEC. 231. LIMITATION ON OBLIGATION OF FUNDS FOR PRO-
CUREMENT OF PATRIOT (PAC–3) MISSILES
PENDING SUBMISSION OF REQUIRED CER-
TIFICATION.
None of the funds appropriated for fiscal year 2003
for procurement of missiles for the Army may be obligated
for the Patriot Advanced Capability (PAC–3) missile pro-
gram until the Secretary of Defense has submitted to the
congressional defense committees the following:
(1) The criteria for the transfer of responsi-
bility for a missile defense program from the Direc-
tor of the Missile Defense Agency to the Secretary
of a military department, as required by section
224(b)(2) of title 10, United States Code.
(2) The notice and certification with respect to
the transfer of responsibility for the Patriot Ad-
vanced Capability (PAC–3) missile program from
the Director to the Secretary of the Army required
by section 224(c) of such title.
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SEC. 232. RESPONSIBILITY OF MISSILE DEFENSE AGENCY
FOR RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION RELATED TO SYSTEM IMPROVE-
MENTS OF PROGRAMS TRANSFERRED TO
MILITARY DEPARTMENTS.
Section 224(e) of title 10, United States Code, is
amended—
(1) by striking ‘‘before a’’ and inserting ‘‘for
each’’;
(2) by striking ‘‘is’’; and
(3) by striking ‘‘roles and responsibilities’’ and
all that follows through the period at the end and
inserting ‘‘responsibility for research, development,
test, and evaluation related to system improvements
for that program remains with the Director.’’.
SEC. 233. AMENDMENTS TO REFLECT CHANGE IN NAME OF
BALLISTIC MISSILE DEFENSE ORGANIZATION
TO MISSILE DEFENSE AGENCY.
(a) TITLE 10, UNITED STATES CODE.—Title 10,
United States Code, is amended as follows:
(1) Sections 203, 223, and 224 are each
amended by striking ‘‘Ballistic Missile Defense Or-
ganization’’ each place it appears and inserting
‘‘Missile Defense Agency’’.
(2)(A) The heading of section 203 is amended
to read as follows:
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‘‘§ 203. Director of Missile Defense Agency’’.
(B) The item relating to such section in the
table of sections at the beginning of subchapter II
of chapter 8 is amended to read as follows:
‘‘203. Director of Missile Defense Agency.’’.
(b) PUBLIC LAW 107–107.—(1) Section 232 of the
National Defense Authorization Act for Fiscal Year 2002
(Public Law 107–107; 10 U.S.C. 2431 note) is amended
by striking ‘‘Ballistic Missile Defense Organization’’ each
place it appears and inserting ‘‘Missile Defense Agency’’.
(2) The heading for such section is amended to read
as follows:
‘‘SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE
AGENCY.’’.
(c) PUBLIC LAW 106–398.—(1) Section 3132 of the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106–
398; 10 U.S.C. 2431 note) is amended by striking ‘‘Bal-
listic Missile Defense Organization’’ each place it appears
and inserting ‘‘Missile Defense Agency’’.
(2) Such section is further amended in subsection (c)
by striking ‘‘BMDO’’ and inserting ‘‘MDA’’.
(3) The section heading for such section is amended
to read as follows:
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‘‘SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL
NUCLEAR SECURITY ADMINISTRATION AND
MISSILE DEFENSE AGENCY.’’.
(d) OTHER LAWS.—The following provisions are each
amended by striking ‘‘Ballistic Missile Defense Organiza-
tion’’ each place it appears and inserting ‘‘Missile Defense
Agency’’:
(1) Section 233 of the National Defense Au-
thorization Act for Fiscal Year 1998 (Public Law
105–85; 10 U.S.C. 223 note).
(2) Section 234 of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law
104–106; 10 U.S.C. 2431 note).
(3) Sections 235 (10 U.S.C. 2431 note) and
243 (10 U.S.C. 2431 note) of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law
103–160).
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
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expenses, not otherwise provided for, for operation and
maintenance, in amounts as follows:
(1) For the Army, $24,159,733,000.
(2) For the Navy, $29,428,876,000.
(3) For the Marine Corps, $3,588,512,000.
(4) For the Air Force, $27,299,404,000.
(5) 
For 
Defense-wide 
activities,
$14,370,037,000.
(6) For the Army Reserve, $1,918,110,000.
(7) For the Naval Reserve, $1,233,759,000.
(8) 
For 
the 
Marine 
Corps 
Reserve,
$185,532,000.
(9) For the Air Force Reserve, $2,194,719,000.
(10) 
For 
the 
Army 
National 
Guard,
$4,300,767,000.
(11) 
For 
the 
Air 
National 
Guard,
$4,077,845,000.
(12) For the Defense Inspector General,
$155,165,000.
(13) For the United States Court of Appeals
for the Armed Forces, $9,614,000.
(14) For Environmental Restoration, Army,
$395,900,000.
(15) For Environmental Restoration, Navy,
$256,948,000.
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(16) For Environmental Restoration, Air Force,
$389,773,000.
(17) For Environmental Restoration, Defense-
wide, $23,498,000.
(18) For Environmental Restoration, Formerly
Used Defense Sites, $212,102,000.
(19) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $58,400,000.
(20) For Drug Interdiction and Counter-drug
Activities, Defense-wide, $848,907,000.
(21) For the Kaho’olawe Island Conveyance,
Remediation, and Environmental Restoration Trust
Fund, $25,000,000.
(22) 
For 
Defense 
Health 
Program,
$14,242,541,000.
(23) For Cooperative Threat Reduction pro-
grams, $416,700,000.
(24) For Support for International Sporting
Competitions, Defense, $19,000,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for
fiscal year 2003 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
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(1) For the Defense Working Capital Funds,
$1,504,956,000.
(2) For the National Defense Sealift Fund,
$934,129,000.
SEC. 303. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fis-
cal year 2003 from the Armed Forces Retirement Home
Trust Fund the sum of $69,921,000 for the operation of
the Armed Forces Retirement Home.
Subtitle B—Environmental
Provisions
SEC. 311. INCIDENTAL TAKING OF MIGRATORY BIRDS DUR-
ING MILITARY READINESS ACTIVITY.
Section 3 of the Migratory Bird Treaty Act (16
U.S.C. 704) is amended by adding at the end the following
new subsection:
‘‘(c)(1) Section 2 shall not apply to the incidental tak-
ing of a migratory bird by a member of the Armed Forces
during a military readiness activity authorized by the Sec-
retary of Defense or the Secretary of the military depart-
ment concerned.
‘‘(2)(A) In this subsection, the term ‘military readi-
ness activity’ includes—
‘‘(i) all training and operations of the Armed
Forces that relate to combat; and
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‘‘(ii) the adequate and realistic testing of mili-
tary equipment, vehicles, weapons, and sensors for
proper operation and suitability for combat use.
‘‘(B) The term does not include—
‘‘(i) the routine operation of installation oper-
ating support functions, such as administrative of-
fices, military exchanges, commissaries, water treat-
ment facilities, storage facilities, schools, housing,
motor pools, laundries, morale, welfare, and recre-
ation activities, shops, and mess halls;
‘‘(ii) the operation of industrial activities; or
‘‘(iii) the construction or demolition of facilities
used for a purpose described in clause (i) or (ii).’’.
SEC. 312. MILITARY READINESS AND THE CONSERVATION
OF PROTECTED SPECIES.
(a) LIMITATION
ON DESIGNATION
OF CRITICAL
HABITAT.—Section 4(a)(3) of the Endangered Species
Act of 1973 (16 U.S.C. 1533(a)(3)) is amended—
(1) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(3) by adding at the end the following:
‘‘(B)(i) The Secretary may not designate as critical
habitat any lands or other geographical areas owned or
controlled by the Department of Defense, or designated
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for its use, that are subject to an integrated natural re-
sources management plan prepared under section 101 of
the Sikes Act (16 U.S.C. 670a), if the Secretary deter-
mines that such plan addresses special management con-
siderations or protection (as those terms are used in sec-
tion 3(5)(A)(i)).
‘‘(ii) Nothing in this subparagraph affects the re-
quirement to consult under section 7(a)(2) with respect
to an agency action (as that term is defined in that sec-
tion).
‘‘(iii) Nothing in this subparagraph affects the obliga-
tion of the Department of Defense to comply with section
9 of the Endangered Species Act of 1973, including the
prohibition preventing extinction and taking of endan-
gered species and threatened species.’’.
(b) CONSIDERATION OF EFFECTS OF DESIGNATION
OF CRITICAL HABITAT.—Section 4(b)(2) of the Endan-
gered Species Act of 1973 (16 U.S.C. 1533(b)(2)) is
amended by inserting ‘‘the impact on national security,’’
after ‘‘the economic impact,’’.
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SEC. 313. SINGLE POINT OF CONTACT FOR POLICY AND
BUDGETING 
ISSUES 
REGARDING
UNEXPLODED ORDNANCE, DISCARDED MILI-
TARY MUNITIONS, AND MUNITIONS CON-
STITUENTS.
Section 2701 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(k) UXO PROGRAM MANAGER.—(1) The Secretary
of Defense shall establish a program manager who shall
serve as the single point of contact in the Department of
Defense for policy and budgeting issues involving the char-
acterization, remediation, and management of explosive
and related risks with respect to unexploded ordnance, dis-
carded military munitions, and munitions constituents at
defense sites (as such terms are defined in section 2710
of this title) that pose a threat to human health or safety.
‘‘(2) The Secretary of Defense may delegate this au-
thority to the Secretary of a military department, who may
delegate the authority to the Under Secretary of that mili-
tary department. The authority may not be further dele-
gated.
‘‘(3) The program manager may establish an inde-
pendent advisory and review panel that may include rep-
resentatives of the National Academy of Sciences, non-
governmental organizations with expertise regarding
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unexploded ordnance, discarded military munitions, or
munitions constituents, the Environmental Protection
Agency, States (as defined in section 2710 of this title),
and tribal governments. If established, the panel would re-
port annually to Congress on progress made by the De-
partment of Defense to address unexploded ordnance, dis-
carded military munitions, or munitions constituents at
defense sites and make such recommendations as the
panel considered appropriate.’’.
Subtitle C—Commissaries and Non-
appropriated Fund Instrumen-
talities
SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT
TO PROVIDE BASE OPERATING SUPPORT TO
FISHER HOUSES.
Section 2493(f) of title 10, United States Code, is
amended to read as follows:
‘‘(f) BASE OPERATING SUPPORT.—The Secretary of
a military department may provide base operating support
for Fisher Houses associated with health care facilities of
that military department.’’.
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SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL
FACILITIES 
BY 
MEMBERS 
OF 
NATIONAL
GUARD SERVING IN NATIONAL EMERGENCY.
(a) ADDITIONAL BASIS FOR AUTHORIZED USE.—
Section 1063a of title 10, United States Code, is
amended—
(1) in subsection (a), by inserting ‘‘or national
emergency’’ after ‘‘federally declared disaster’’; and
(2) in subsection (c), by adding at the end the
following new paragraph:
‘‘(3) NATIONAL
EMERGENCY.—The term ‘na-
tional emergency’ means a national emergency de-
clared by the President or Congress.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 1063a. Use of commissary stores and MWR retail
facilities: members of National Guard
serving in federally declared disaster or
national emergency’’.
(2) The table of sections at the beginning of chapter
54 of such title is amended by striking the item relating
to section 1063a and inserting the following new item:
‘‘1063a. Use of commissary stores and MWR retail facilities: members of Na-
tional Guard serving in federally declared disaster or national
emergency.’’.
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SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MO-
RALE, WELFARE, AND RECREATION PRO-
GRAMS.
(a) IN GENERAL.—Chapter 147 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 2494. Uniform funding and management of morale,
welfare, and recreation programs
‘‘(a) AUTHORITY FOR UNIFORM FUNDING AND MAN-
AGEMENT.—Under regulations prescribed by the Sec-
retary of Defense, funds appropriated to the Department
of Defense and available for morale, welfare, and recre-
ation programs may be treated as nonappropriated funds
and expended in accordance with laws applicable to the
expenditures of nonappropriated funds. When made avail-
able for morale, welfare, and recreation programs under
such regulations, appropriated funds shall be considered
to be nonappropriated funds for all purposes and shall re-
main available until expended.
‘‘(b) CONDITIONS ON AVAILABILITY.—Funds appro-
priated to the Department of Defense may be made avail-
able to support a morale, welfare, or recreation program
only if the program is authorized to receive appropriated
fund support and only in the amounts the program is au-
thorized to receive.
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‘‘(c) CONVERSION OF EMPLOYMENT POSITIONS.—(1)
The Secretary of Defense may identify positions of em-
ployees in morale, welfare, and recreation programs within
the Department of Defense who are paid with appro-
priated funds whose status may be converted from the sta-
tus of an employee paid with appropriated funds to the
status of an employee of a nonappropriated fund instru-
mentality.
‘‘(2) The status of an employee in a position identi-
fied by the Secretary under paragraph (1) may, with the
consent of the employee, be converted to the status of an
employee of a nonappropriated fund instrumentality. An
employee who does not consent to the conversion may not
be removed from the position because of the failure to pro-
vide such consent.
‘‘(3) The conversion of an employee from the status
of an employee paid by appropriated funds to the status
of an employee of a nonappropriated fund instrumentality
shall be without a break in service for the concerned em-
ployee. The conversion shall not entitle an employee to sev-
erance pay, back pay or separation pay under subchapter
IX of chapter 55 of title 5, or be considered an involuntary
separation or other adverse personnel action entitling an
employee to any right or benefit under such title or any
other provision of law or regulation.
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‘‘(4) In this subsection, the term ‘an employee of a
nonappropriated fund instrumentality’ means an employee
described in section 2105(c) of title 5.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2494. Uniform funding and management of morale, welfare, and recreation
programs.’’.
Subtitle D—Workplace and Depot
Issues
SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION
WITH REQUIRED STUDIES FOR CONVERSION
OF 
COMMERCIAL 
OR 
INDUSTRIAL 
TYPE
FUNCTIONS 
TO 
CONTRACTOR 
PERFORM-
ANCE.
Subsection (c) of section 2461 of title 10, United
States Code, is amended to read as follows:
‘‘(c) SUBMISSION OF ANALYSIS RESULTS.—(1) Upon
the completion of an analysis of a commercial or industrial
type function described in subsection (a) for possible
change to performance by the private sector, the Secretary
of Defense shall submit to Congress a report containing
the results of the analysis, including the results of the ex-
aminations required by subsection (b)(3).
‘‘(2) The report shall also contain the following:
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‘‘(A) The date when the analysis of the function
was commenced.
‘‘(B) The Secretary’s certification that the Gov-
ernment calculation of the cost of performance of
the function by Department of Defense civilian em-
ployees is based on an estimate of the most cost ef-
fective manner for performance of the function by
Department of Defense civilian employees.
‘‘(C) The number of Department of Defense ci-
vilian employees who were performing the function
when the analysis was commenced and the number
of such employees whose employment was or will be
terminated or otherwise affected by changing to per-
formance of the function by the private sector or by
implementation of the most efficient organization of
the function.
‘‘(D) The Secretary’s certification that the fac-
tors considered in the examinations performed under
subsection (b)(3), and in the making of the decision
regarding changing to performance of the function
by the private sector or retaining performance in the
most efficient organization of the function, did not
include any predetermined personnel constraint or
limitation in terms of man years, end strength, full-
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time equivalent positions, or maximum number of
employees.
‘‘(E) A statement of the potential economic ef-
fect of implementing the decision regarding changing
to performance of the function by the private sector
or retaining performance in the most efficient orga-
nization of the function on each affected local com-
munity, as determined in the examination under
subsection (b)(3)(B)(ii).
‘‘(F) A schedule for completing the change to
performance of the function by the private sector or
implementing the most efficient organization of the
function.
‘‘(G) In the case of a commercial or industrial
type function performed at a Center of Industrial
and Technical Excellence designated under section
2474(a) of this title or an Army ammunition plant,
a description of the effect that the manner of per-
formance of the function, and administration of the
resulting contract if any, will have on the overhead
costs of the center or ammunition plant, as the case
may be.
‘‘(H) The Secretary’s certification that the en-
tire analysis is available for examination.
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‘‘(3)(A) If a decision is made to change the commer-
cial or industrial type function that was the subject of the
analysis to performance by the private sector, the change
of the function to contractor performance may not begin
until after the submission of the report required by para-
graph (1).
‘‘(B) Notwithstanding subparagraph (A), in the case
of a commercial or industrial type function performed at
a Center of Industrial and Technical Excellence des-
ignated under section 2474(a) of this title or an Army am-
munition plant, the change of the function to contractor
performance may not begin until at least 60 days after
the submission of the report.’’.
SEC. 332. WAIVER AUTHORITY REGARDING PROHIBITION
ON CONTRACTS FOR PERFORMANCE OF SE-
CURITY-GUARD FUNCTIONS.
Section 2465 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(c) The Secretary of Defense or the Secretary of a
military department may waive the prohibition under sub-
section (a) regarding contracting for the performance of
security-guard functions at a military installation or facil-
ity under the jurisdiction of the Secretary if such
functions—
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‘‘(1) are or will be performed by members of
the armed forces in the absence of a waiver; or
‘‘(2) were not performed at the installation or
facility before September 11, 2001.’’.
SEC. 333. EXCLUSION OF CERTAIN EXPENDITURES FROM
PERCENTAGE LIMITATION ON CONTRACTING
FOR PERFORMANCE OF DEPOT-LEVEL MAIN-
TENANCE AND REPAIR WORKLOADS.
Section 2474(f)(2) of title 10, United States Code,
is amended by striking ‘‘for fiscal years 2002 through
2005’’.
SEC. 334. REPEAL OF OBSOLETE PROVISION REGARDING
DEPOT-LEVEL MAINTENANCE AND REPAIR
WORKLOADS THAT WERE PERFORMED AT
CLOSED OR REALIGNED MILITARY INSTALLA-
TIONS.
(a) REPEAL.—Section 2469a of title 10, United
States Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 146 of such title is amended
by striking the item relating to section 2469a.
SEC. 335. CLARIFICATION OF REQUIRED CORE LOGISTICS
CAPABILITIES.
Section 2464(a)(3) of title 10, United States Code,
is amended by striking ‘‘those capabilities that are nec-
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essary to maintain and repair the weapon systems’’ and
inserting ‘‘those logistics capabilities (including acquisi-
tion logistics, supply management, system engineering,
maintenance, and modification management) that are nec-
essary to sustain the weapon systems’’.
Subtitle E—Defense Dependents
Education
SEC. 341. 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 2003.—Of the amount au-
thorized to be appropriated pursuant to section 301(5) for
operation and maintenance for Defense-wide activities,
$35,000,000 shall be available only for the purpose of pro-
viding educational agencies assistance to local educational
agencies.
(b) NOTIFICATION.—Not later than June 30, 2003,
the Secretary of Defense shall notify each local edu-
cational agency that is eligible for educational agencies as-
sistance for fiscal year 2003 of—
(1) that agency’s eligibility for the assistance;
and
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(2) the amount of the assistance for which that
agency is eligible.
(c) DISBURSEMENT OF FUNDS.—The Secretary of
Defense shall disburse funds made available under sub-
section (a) not later than 30 days after the date on which
notification to the eligible local educational agencies is
provided pursuant to subsection (b).
(d) 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).
(2) The term ‘‘local educational agency’’ has
the meaning given that term in section 8013(9) of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7713(9)).
SEC. 342. AVAILABILITY OF QUARTERS ALLOWANCE FOR
UNACCOMPANIED 
DEFENSE 
DEPARTMENT
TEACHER REQUIRED TO RESIDE ON OVER-
SEAS MILITARY INSTALLATION.
(a) AUTHORITY
TO PROVIDE ALLOWANCE.—Sub-
section (b) of section 7 of the Defense Department Over-
seas Teachers Pay and Personnel Practices Act (20
U.S.C. 905) is amended by adding at the end the following
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new sentence: ‘‘If the teacher is unaccompanied by de-
pendents and is required to reside on a United States mili-
tary installation in an overseas area, the teacher may re-
ceive a quarters allowance to reside in excess family hous-
ing at the installation notwithstanding the availability sin-
gle room housing at the installation.’’.
(b) TECHNICAL CORRECTION
TO REFLECT CODI-
FICATION.—Such section is further amended by striking
‘‘the Act of June 26, 1930 (5 U.S.C. 118a)’’ both places
it appears and inserting ‘‘section 5912 of title 5, United
States Code’’.
SEC. 343. PROVISION OF SUMMER SCHOOL PROGRAMS FOR
STUDENTS WHO ATTEND DEFENSE DEPEND-
ENTS’ EDUCATION SYSTEM.
Section 1402(d) of the Defense Dependents’ Edu-
cation Act of 1978 (20 U.S.C. 921(d)) is amended by
striking paragraph (2) and inserting the following new
paragraph (2):
‘‘(2) Individuals eligible to receive a free public edu-
cation under subsection (a) may enroll without charge in
a summer school program offered under this subsection.
Students who are required under section 1404 to pay tui-
tion to enroll in a school of the defense dependents’ edu-
cation system shall also be charged a fee, at a rate estab-
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lished by the Secretary, to attend a course offered as part
of the summer school program.’’.
Subtitle F—Information
Technology
SEC. 351. AUTHORIZED DURATION OF BASE CONTRACT FOR
NAVY-MARINE CORPS INTRANET.
Section 814 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–215) and
amended by section 362 of Public Law 107–107 (115
Stat. 1065), is amended—
(1) by redesignating subsection (i) as subsection
(j); and
(2) by inserting after subsection (h) the fol-
lowing new subsection (i):
‘‘(i) DURATION
OF
BASE
NAVY-MARINE
CORPS
INTRANET CONTRACT.—Notwithstanding section 2306c of
title 10, United States Code, the base contract of the
Navy-Marine Corps Intranet contract may have a term in
excess of five years, but not more than seven years.’’.
SEC. 352. ANNUAL SUBMISSION OF INFORMATION ON NA-
TIONAL SECURITY AND INFORMATION TECH-
NOLOGY CAPITAL ASSETS.
(a) REQUIREMENT TO SUBMIT INFORMATION.—Not
later than the date that the President submits the budget
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of the United States Government to Congress each year,
the Secretary of Defense shall submit to Congress a de-
scription of, and relevant budget information on, each in-
formation technology and national security capital asset
of the Department of Defense that—
(1) has an estimated life cycle cost (as com-
puted in fiscal year 2003 constant dollars), in excess
of $120,000,000; and
(2) has a cost for the fiscal year in which the
description is submitted (as computed in fiscal year
2003 constant dollars) in excess of $30,000,000.
(b) INFORMATION TO BE INCLUDED.—The descrip-
tion submitted under subsection (a) shall include, with re-
spect to each such capital asset and national security
system—
(1) the name and identifying acronym;
(2) the date of initiation;
(3) a summary of performance measurements
and metrics;
(4) the total amount of funds, by appropriation
account, appropriated and obligated for prior fiscal
years, with a specific breakout of such information
for the two preceding fiscal years;
(5) the funds, by appropriation account, re-
quested for that fiscal year;
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(6) each prime contractor and the work to be
performed;
(7) a description of program management and
management oversight;
(8) the original baseline cost and most current
baseline information; and
(9) a description of compliance with the provi-
sions enacted in the Government Performance Re-
sults Act of 1993 (Public Law 103–62; 107 Stat.
285) and the Clinger–Cohen Act of 1996 (division D
of Public Law 104–106; 110 Stat. 642).
(c) ADDITIONAL INFORMATION TO BE INCLUDED
FOR CERTAIN SYSTEMS.—(1) For each information tech-
nology and national security system of the Department of
Defense that has a cost for the fiscal year in excess of
$2,000,000, the Secretary shall identify that system by
name, function, and total funds requested for the system.
(2) For each information technology and national se-
curity system of the Department of Defense that has a
cost for the fiscal year in excess of $10,000,000, the Sec-
retary shall identify that system by name, function, and
total funds requested (by appropriation account) for that
fiscal year, the funds appropriated for the preceding fiscal
year, and the funds estimated to be requested for the next
fiscal year.
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(d) DEFINITIONS.—In this section:
(1) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger–Cohen Act of 1996 (40 U.S.C. 1401(3)).
(2) The term ‘‘capital asset’’ has the meaning
given that term in Office of Management and Budg-
et Circular A–11.
(3) The term ‘‘national security system’’ has
the meaning given that term in section 5142 of the
Clinger–Cohen Act of 1996 (40 U.S.C. 1452).
SEC. 353. IMPLEMENTATION OF POLICY REGARDING CER-
TAIN COMMERCIAL OFF-THE-SHELF INFOR-
MATION TECHNOLOGY PRODUCTS.
The Secretary of Defense shall ensure that—
(1) the Department of Defense implements the
policy established by the Committee on National Se-
curity Systems (formerly the National Security Tele-
communications and Information Systems Security
Committee) that limits the acquisition by the Fed-
eral Government of all commercial off-the-shelf in-
formation assurance and information assurance-en-
abled information technology products to those prod-
ucts that have been evaluated and validated in ac-
cordance with appropriate criteria, schemes, or pro-
grams; and
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(2) implementation of such policy includes uni-
form enforcement procedures.
SEC. 354. INSTALLATION AND CONNECTION POLICY AND
PROCEDURES REGARDING DEFENSE SWITCH
NETWORK.
(a) ESTABLISHMENT
OF
POLICY
AND
PROCE-
DURES.—Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall es-
tablish clear and uniform policy and procedures, applicable
to the military departments and Defense Agencies, regard-
ing the installation and connection of telecom switches to
the Defense Switch Network.
(b) ELEMENTS OF POLICY AND PROCEDURES.—The
policy and procedures shall address at a minimum the fol-
lowing:
(1) Clear interoperability and compatibility re-
quirements for certifying, installing, and connecting
telecom switches to the Defense Switch Network.
(2) Current, complete, and enforceable testing,
validation, and certification procedures needed to en-
sure the interoperability and compatibility require-
ments are satisfied.
(c) EXCEPTIONS.—(1) The Secretary of Defense may
specify certain circumstances in which—
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(A) the requirements for testing, validation, and
certification of telecom switches may be waived; or
(B) interim authority for the installation and
connection of telecom switches to the Defense Switch
Network may be granted.
(2) Only the Assistant Secretary of Defense for Com-
mand, Control, Communications, and Intelligence, after
consultation with the Chairman of the Joint Chiefs of
Staff, may approve a waiver or grant of interim authority
under paragraph (1).
(d) INVENTORY OF DEFENSE SWITCH NETWORK.—
The Secretary of Defense shall prepare and maintain an
inventory of all telecom switches that, as of the date on
which the Secretary issues the policy and procedures—
(1) are installed or connected to the Defense
Switch Network; but
(2) have not been tested, validated, and cer-
tified by the Defense Information Systems Agency
(Joint Interoperability Test Center).
(e) TELECOM SWITCH DEFINED.—In this section,
the term ‘‘telecom switch’’ means hardware or software
designed to send and receive voice, data, and video signals
across a network.
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Subtitle G—Other Matters
SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLO-
CATION OF FUNDS WITHIN OPERATION AND
MAINTENANCE BUDGET SUBACTIVITIES.
(a) DESIGNATION OF RECIPIENTS.—Subsection (a)
of section 228 of title 10, United States Code, is amended
by striking ‘‘to Congress’’ and inserting ‘‘to the congres-
sional defense committees’’.
(b) CONGRESSIONAL DEFENSE COMMITTEES DE-
FINED.—Subsection (e) of such section is amended—
(1) by striking ‘‘(e) O&M BUDGET ACTIVITY
DEFINED.—For purposes of this section, the’’ and
inserting the following:
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The’’; and
(2) by adding at the end the following:
‘‘(2) The term ‘congressional defense commit-
tees’ means the Committee on Armed Services and
the Committee on Appropriations of the Senate and
the Committee on Armed Services and the Com-
mittee on Appropriations of the House of Represent-
atives.’’.
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SEC. 362. MINIMUM DEDUCTION FROM PAY OF CERTAIN
MEMBERS OF THE ARMED FORCES TO SUP-
PORT ARMED FORCES RETIREMENT HOME.
Section 1007(i) of title 37, United States Code, is
amended—
(1) in paragraph (1), by striking ‘‘an amount
(determined under paragraph (3)) not to exceed
$1.00.’’ and inserting ‘‘an amount equal to $1.00
and such additional amount as may be determined
under paragraph (3).’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the amount’’ in the first
sentence and inserting ‘‘the additional amount’’;
and
(B) by striking ‘‘The amount’’ in the sec-
ond sentence and inserting ‘‘The additional
amount’’.
SEC. 363. CONDITION ON CONVERSION OF DEFENSE SECU-
RITY 
SERVICE 
TO 
A 
WORKING 
CAPITAL
FUNDED ENTITY.
The Secretary of Defense may not convert the De-
fense Security Service to a working capital funded entity
of the Department of Defense unless the Secretary sub-
mits, in advance, to the Committee on Armed Services of
the House of Representatives and the Committee on
Armed Services of the Senate a certification that the De-
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fense Security Service has the financial systems in place
to fully support operation of the Defense Security Service
as a working capital funded entity under section 2208 of
title 10, United States Code.
SEC. 364. CONTINUATION OF ARSENAL SUPPORT PROGRAM
INITIATIVE.
(a) EXTENSION THROUGH FISCAL YEAR 2004.—
Subsection (a) of section 343 of the Floyd D. Spence Na-
tional Defense Authorization Act for Fiscal Year 2001 (as
enacted into law by Public Law 106–398; 114 Stat.
1654A–65) is amended by striking ‘‘and 2002’’ and in-
serting ‘‘through 2004’’.
(b) REPORTING REQUIREMENTS.—Subsection (g) of
such section is amended—
(1) in paragraph (1), by striking ‘‘2002’’ and
inserting ‘‘2004’’; and
(2) in paragraph (2), by striking the first sen-
tence and inserting the following new sentence: ‘‘Not
later than July 1, 2003, the Secretary of the Army
shall submit to the congressional defense committees
a report on the results of the demonstration pro-
gram since its implementation, including the Sec-
retary’s views regarding the benefits of the program
for Army manufacturing arsenals and the Depart-
ment of the Army and the success of the program
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in achieving the purposes specified in subsection
(b).’’.
SEC. 365. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL
STATUS OF RESOURCES AND TRAINING SYS-
TEM, AND TRAINING RANGE INVENTORY.
(a) PLAN REQUIRED.—(1) The Secretary of Defense
shall develop a comprehensive plan for using existing au-
thorities available to the Secretary of Defense and the Sec-
retaries of the military departments to address problems
created by limitations on the use of military lands, marine
areas, and airspace reserved, withdrawn, or designated for
training and testing activities by, for, or on behalf of the
Armed Forces.
(2) The plan shall include the following:
(A) Goals and milestones for tracking planned
actions and measuring progress.
(B) Projected funding requirements for imple-
menting planned actions.
(C) Designation of an office in the Office of the
Secretary of Defense and each of the military de-
partments that will have lead responsibility for over-
seeing implementation of the plan.
(3) The Secretary of Defense shall submit the plan
to Congress at the same time as the President submits
the budget for fiscal year 2004 and shall submit an annual
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report to Congress describing the progress made in imple-
menting the plan and any additional encroachment prob-
lems.
(b) READINESS REPORTING IMPROVEMENT.—Not
later than June 30, 2003, the Secretary of Defense, using
existing measures within the authority of the Secretary,
shall submit to Congress a report on the plans of the De-
partment of Defense to improve the Global Status of Re-
sources and Training System—
(1) to better reflect the increasing challenges
units of the Armed Forces must overcome to achieve
training requirements; and
(2) to quantify the extent to which encroach-
ment and other individual factors are making mili-
tary lands, marine areas, and airspace less available
to support unit accomplishment of training plans
and readiness goals.
(c) TRAINING RANGE INVENTORY.—The Secretary of
Defense shall develop and maintain a training range data
bank for each of the Armed Forces—
(1) to identify all available operational training
ranges;
(2) to identify all training capacities and capa-
bilities available at each training range;
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(3) to identify all current encroachment threats
or other potential limitations on training that are, or
are likely to, adversely affect training and readiness;
and
(4) to provide a point of contact for each train-
ing range.
(d) GAO EVALUATION.—(1) With respect to each re-
port submitted under this section, the Comptroller General
shall submit to Congress, within 60 days after receiving
the report, an evaluation of the report.
(e) ARMED FORCES DEFINED.—In this section, the
term ‘‘Armed Forces’’ means the Army, Navy, Air Force,
and Marine Corps.
SEC. 366. AMENDMENTS TO CERTAIN EDUCATION AND NU-
TRITION LAWS RELATING TO ACQUISITION
AND IMPROVEMENT OF MILITARY HOUSING.
(a) ELIGIBILITY
FOR HEAVILY IMPACTED LOCAL
EDUCATIONAL AGENCIES AFFECTED BY PRIVATIZATION
OF MILITARY HOUSING.—Section 8003(b)(2) of the Ele-
mentary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2)) is amended by adding at the end the fol-
lowing:
‘‘(H) ELIGIBILITY FOR HEAVILY IMPACTED
LOCAL EDUCATIONAL AGENCIES AFFECTED BY
PRIVATIZATION OF MILITARY HOUSING.—
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‘‘(i) ELIGIBILITY.—For any fiscal
year beginning with fiscal year 2003, a
heavily impacted local educational agency
that received a basic support payment
under subparagraph (A) for the prior fiscal
year, but is ineligible for such payment for
the current fiscal year under subparagraph
(B) or (C), as the case may be, by reason
of the conversion of military housing units
to private housing described in clause (iii),
shall be deemed to meet the eligibility re-
quirements under subparagraph (B) or
(C), as the case may be, for the period
during which the housing units are under-
going such conversion.
‘‘(ii) AMOUNT
OF
PAYMENT.—The
amount of a payment to a heavily impacted
local educational agency for a fiscal year
by reason of the application of clause (i),
and calculated in accordance with subpara-
graph (D) or (E) (as the case may be),
shall be based on the number of children
in average daily attendance in the schools
of such agency for the fiscal year.
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‘‘(iii) 
CONVERSION
OF
MILITARY
HOUSING UNITS TO PRIVATE HOUSING DE-
SCRIBED.—For purposes of clause (i),
‘conversion of military housing units to
private housing’ means the conversion of
military housing units to private housing
units pursuant to subchapter IV of chapter
169 of title 10, United States Code, or
pursuant to any other related provision of
law.’’.
(b) EXCLUSION OF CERTAIN MILITARY BASIC AL-
LOWANCES FOR HOUSING FOR DETERMINATION OF ELI-
GIBILITY FOR FREE AND REDUCED PRICE MEALS.—Sec-
tion 9(b)(3) of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1758(b)(3)) is amended by adding
at the end the following: ‘‘For the one-year period begin-
ning on the date of the enactment of this sentence, the
amount of a basic allowance provided under section 403
of title 37, United States Code, on behalf of an individual
who is a member of the uniformed services for housing
that is acquired or constructed under the authority of sub-
chapter IV of chapter 169 of title 10, United States Code,
or any other related provision of law, shall not be consid-
ered to be income for purposes of determining the eligi-
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bility of a child of the individual for free or reduced price
lunches under this Act.’’.
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, 2003, as follows:
(1) The Army, 484,800.
(2) The Navy, 379,457.
(3) The Marine Corps, 175,000.
(4) The Air Force, 360,795.
SEC. 402. REVISION IN PERMANENT END STRENGTH MIN-
IMUM LEVELS.
(a) REVISED END STRENGTH FLOORS.—Section
691(b) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘480,000’’
and inserting ‘‘484,800’’;
(2) in paragraph (2), by striking ‘‘376,000’’
and inserting ‘‘379,457’;
(3) in paragraph (3), by striking ‘‘172,600’’
and inserting ‘‘175,000’’; and
(4) in paragraph (4), by striking ‘‘358,800’’
and inserting ‘‘360,795’’.
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(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 2002, or the
date of the enactment of this Act, whichever is later.
SEC. 403. AUTHORITY FOR MILITARY DEPARTMENT SECRE-
TARIES 
TO 
INCREASE 
ACTIVE-DUTY 
END
STRENGTHS BY UP TO 1 PERCENT.
(a) SERVICE SECRETARY AUTHORITY.—Section 115
of title 10, United States Code, is amended by inserting
after subsection (e) the following new subsection:
‘‘(f) Upon determination by the Secretary of a mili-
tary department that such action would enhance manning
and readiness in essential units or in critical specialties
or ratings, the Secretary may increase the end strength
authorized pursuant to subsection (a)(1)(A) for a fiscal
year for the armed force under the jurisdiction of that Sec-
retary or, in the case of the Secretary of the Navy, for
any of the armed forces under the jurisdiction of that Sec-
retary. Any such increase for a fiscal year—
‘‘(1) shall be by a number equal to not more
than 1 percent of such authorized end strength; and
‘‘(2) shall be counted as part of the increase for
that armed force for that fiscal year authorized
under subsection (c)(1).’’.
(b) EFFECTIVE DATE.—Subsection (f) of section 115
of title 10, United States Code, as added by subsection
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(a), shall take effect on October 1, 2002, or the date of
the enactment of this Act, whichever is later.
SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.
(a) EXCLUSION OF SENIOR MILITARY ASSISTANT TO
THE SECRETARY OF DEFENSE FROM LIMITATION ON AC-
TIVE DUTY OFFICERS IN GRADES ABOVE MAJOR GEN-
ERAL AND REAR ADMIRAL.—Effective on the date speci-
fied in subsection (e), section 525(b) of title 10, United
States Code, is amended by adding at the end the fol-
lowing new paragraph:
‘‘(8) An officer while serving in a position designated
by the Secretary of Defense as Senior Military Assistant
to the Secretary of Defense, if serving in the grade of lieu-
tenant general or vice admiral, is in addition to the num-
ber that otherwise would be permitted for that officer’s
armed force for that grade under paragraph (1) or (2).
Only one officer may be designated as Senior Military As-
sistant to the Secretary of Defense for purposes of this
paragraph.’’.
(b) INCREASE IN NUMBER OF LIEUTENANT GEN-
ERALS AUTHORIZED FOR THE MARINE CORPS.—Effective
on the date specified in subsection (e), paragraph (2)(B)
of such section is amended by striking ‘‘16.2 percent’’ and
inserting ‘‘17.5 percent’’.
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(c) GRADE OF CHIEF OF VETERINARY CORPS OF
THE ARMY.—(1) Effective on the date specified in sub-
section (e), chapter 307 of such title is amended by adding
at the end the following new section:
‘‘§ 3084. Chief of Veterinary Corps: grade
‘‘The Chief of the Veterinary Corps of the Army
serves in the grade of brigadier general. An officer ap-
pointed to that position who holds a lower grade shall be
appointed in the grade of brigadier general.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘3084. Chief of Veterinary Corps: grade.’’.
(d) REVIEW OF ACTIVE DUTY AND RESERVE GEN-
ERAL AND FLAG OFFICER AUTHORIZATIONS.—(1) The
Secretary of Defense shall submit to Congress a report
containing any recommendations of the Secretary (to-
gether with the rationale of the Secretary for the rec-
ommendations) concerning the following:
(A) Revision of the limitations on general and
flag officer grade authorizations and distribution in
grade prescribed by sections 525, 526, and 12004 of
title 10, United States Code.
(B) Statutory designation of the positions and
grades of any additional general and flag officers in
the commands specified in chapter 1006 of title 10,
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United States Code, and the reserve component of-
fices specified in sections 3038, 5143, 5144, and
8038 of such title.
(2) The provisions of subsection (b) through (e) of
section 1213 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104–201; 110 Stat.
2694) shall apply to the report under paragraph (1) in
the same manner as they applied to the report required
by subsection (a) of that section.
(e) EFFECTIVE DATE.—The amendments made by
subsections (a), (b), and (c) shall take effect on the date
of the receipt by Congress of the report required by sub-
section (d).
SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING
TO MANAGEMENT OF NUMBERS OF GENERAL
AND FLAG OFFICERS IN CERTAIN GRADES.
(a) SENIOR JOINT OFFICER POSITIONS.—Section
604(c) of title 10, United States Code, is amended by
striking ‘‘September 30, 2003’’ and inserting ‘‘December
31, 2004’’.
(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 ‘‘Sep-
tember 30, 2003’’ and inserting ‘‘December 31, 2004’’.
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(c) AUTHORIZED STRENGTH
FOR GENERAL
AND
FLAG OFFICERS ON ACTIVE DUTY.—Section 526(b)(3) of
such title is amended by striking ‘‘October 1, 2002’’ and
inserting ‘‘December 31, 2004’’.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve
components as of September 30, 2003, as follows:
(1) The Army National Guard of the United
States, 350,000.
(2) The Army Reserve, 205,000.
(3) The Naval Reserve, 87,800.
(4) The Marine Corps Reserve, 39,558.
(5) The Air National Guard of the United
States, 106,600.
(6) The Air Force Reserve, 75,600.
(7) The Coast Guard Reserve, 9,000.
(b) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve com-
ponent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of
such component which are on active duty (other
than for training) at the end of the fiscal year; and
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(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected
Reserve of such reserve component shall be proportion-
ately increased 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, 2003, the following num-
ber 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, re-
cruiting, instructing, or training the reserve components:
(1) The Army National Guard of the United
States, 24,562.
(2) The Army Reserve, 14,070.
(3) The Naval Reserve, 14,572.
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(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United
States, 11,697.
(6) The Air Force Reserve, 1,498.
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 2003 for the re-
serve 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 National Guard of the
United States, 24,102.
(2) For the Army Reserve, 6,599.
(3) For the Air National Guard of the
United States, 22,495.
(4) For the Air Force Reserve, 9,911.
SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STA-
TUS TECHNICIANS.
(a) ARMY.—The number of non-dual status techni-
cians employed by the reserve components of the Army
as of September 30, 2003, may not exceed the following:
(1) For the Army Reserve, 995.
(2) For the Army National Guard of the United
States, 1,600, to be counted within the limitation
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specified in section 10217(c)(2) of title 10, United
States Code.
(b) AIR FORCE.—The number of non-dual status
technicians employed by the reserve components of the
Army and the Air Force as of September 30, 2003, may
not exceed the following:
(1) For the Air Force Reserve, 90.
(2) For the Air National Guard of the United
States, 350, to be counted within the limitation
specified in section 10217(c)(2) of title 10, United
States Code.
(c) NON-DUAL STATUS TECHNICIANS DEFINED.—In
this section, the term ‘‘non-dual status technician’’ has the
meaning given that term in section 10217(a) of title 10,
United States Code.
(d) TECHNICAL AMENDMENTS.—Effective October 1,
2002, section 10217(c)(2) of title 10, United States Code,
is amended—
(1) in the first sentence, by striking ‘‘Effective
October 1, 2002, the’’ and inserting ‘‘The’’; and
(2) in the second sentence, by striking ‘‘after
the preceding sentence takes effect’’.
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Subtitle C—Authorization of
Appropriations
SEC. 421. 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 2003 a total of $93,725,028,000. The authorization
in the preceding sentence supersedes any other authoriza-
tion of appropriations (definite or indefinite) for such pur-
pose for fiscal year 2003.
TITLE V—MILITARY PERSONNEL
POLICY
SEC. 
501. 
INCREASE 
IN 
NUMBER 
OF 
DEPUTY
COMMANDANTS OF THE MARINE CORPS.
Section 5045 of title 10, United States Code, is
amended by striking ‘‘five’’ and inserting ‘‘six’’.
SEC. 502. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER
AUTHORITY FOR OFFICERS APPOINTED TO A
RESERVE CHIEF OR GUARD DIRECTOR POSI-
TION.
(a) WAIVER
OF REQUIREMENT
FOR SIGNIFICANT
JOINT
DUTY
EXPERIENCE.—Sections 
3038(b)(4),
5143(b)(4), 5144(b)(4), 8038(b)(4), and 10506(a)(3)(D)
of title 10, United States Code, are each amended by strik-
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ing ‘‘October 1, 2003’’ and inserting ‘‘December 31,
2004’’.
(b) REPORT ON FUTURE IMPLEMENTATION OF RE-
QUIREMENT.—Not later than one year after the date of
the enactment of this Act, the Secretary of Defense shall
submit to the Committee on Armed Services of the Senate
and the Committee on Armed Services of the House of
Representatives a report setting forth the steps being
taken (and proposed to be taken) by the Secretary, the
Secretaries of the military departments, and the Chairman
of the Joint Chiefs of Staff to ensure that no further ex-
tension of the waiver authority under the sections amend-
ed by subsection (a) is required and that after December
31, 2004, appointment of officers to serve in the positions
covered by those sections shall be made from officers with
the requisite joint duty experience.
Subtitle B—Reserve Component
Management
SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH AC-
COUNTING AND MANAGEMENT AND OTHER
ISSUES.
(a) COMPTROLLER GENERAL ASSESSMENTS.—Not
later than one year after the date of the enactment of this
Act, the Comptroller General shall submit to Congress a
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report on management of the National Guard. The report
shall include the following:
(1) The Comptroller General’s assessment of
the effectiveness of the implementation of Depart-
ment of Defense plans for improving management
and accounting for personnel strengths in the Na-
tional Guard, including an assessment of the process
that the Department of Defense, the National Guard
Bureau, the Army National Guard and State-level
National Guard leadership, and leadership in the
other reserve components have for identifying and
addressing in a timely manner specific units in
which nonparticipation rates are significantly in ex-
cess of the established norms.
(2) The Comptroller General’s assessment of
the effectiveness of the process for Federal recogni-
tion of senior National Guard officers and rec-
ommendations for improvement to that process.
(3) The Comptroller General’s assessment of
the process for, and the nature and extent of, the
administrative or judicial corrective action taken by
the Secretary of Defense, the Secretary of the Army,
and the Secretary of the Air Force as a result of In-
spector General investigations or other investigations
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in which allegations against senior National Guard
officers are substantiated in whole or in part.
(4) The Comptroller General’s determination of
the effectiveness of the Federal protections provided
for members or employees of the National Guard
who report allegations of waste, fraud, abuse, or
mismanagement and the nature and extent to which
corrective action is taken against those in the Na-
tional Guard who retaliate against such members or
employees.
(b) SECRETARY
OF DEFENSE REPORT
ON DIF-
FERENT ARMY AND AIR FORCE PROCEDURES.—Not later
than six months after the date of the enactment of this
Act, the Secretary of Defense shall submit to Congress
a report on the differing Army and Air Force policies for
taking adverse administrative actions against National
Guard officers in a State status. The report shall include
the Secretary’s determination as to whether changes
should be made in those policies, especially through requir-
ing the Air Force to adopt the same policy as the Army
for such administrative actions.
SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD
WHEN NOT IN FEDERAL SERVICE.
(a) MANNER OF PRESCRIBING PUNISHMENTS.—Sec-
tion 326 of title 32, United States Code, is amended by
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adding at the end the following new sentence: ‘‘Punish-
ments shall be as provided by the laws of the respective
States and Territories, Puerto Rico, and the District of
Columbia.’’.
(b) CONVENING AUTHORITY.—Section 327 of such
title is amended to read as follows:
‘‘§ 327. Courts-martial of National Guard not in Fed-
eral service: convening authority
‘‘(a) In the National Guard not in Federal service,
general, special, and summary courts-martial may be con-
vened as provided by the laws of the States and Terri-
tories, Puerto Rico, and the District of Columbia.
‘‘(b) In addition to convening authorities as provided
under subsection (a), in the National Guard not in Federal
service—
‘‘(1) general courts-martial may be convened by
the President;
‘‘(2) special courts-martial may be convened—
‘‘(A) by the commanding officer of a garri-
son, fort, post, camp, air base, auxiliary air
base, or other place where troops are on duty;
or
‘‘(B) by the commanding officer of a divi-
sion, brigade, regiment, wing, group, detached
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battalion, separate squadron, or other detached
command; and
‘‘(3) 
summary 
courts-martial 
may 
be
convened—
‘‘(A) by the commanding officer of a garri-
son, fort, post, camp, air base, auxiliary air
base, or other place where troops are on duty;
or
‘‘(B) by the commanding officer of a divi-
sion, brigade, regiment, wing, group, detached
battalion, detached squadron, detached com-
pany, or other detachment.’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 3 of such title is
amended to read as follows:
‘‘327. Courts-martial of National Guard not in Federal service: convening au-
thority.’’.
(c) REPEAL OF SUPERSEDED AND OBSOLETE PROVI-
SIONS.—
(1) Sections 328, 329, 330, 331, 332, and 333
of title 32, United States Code, are repealed.
(2) The table of sections at the beginning of
chapter 3 of such title is amended by striking the
items relating to sections 328, 329, 330, 331, 332,
and 333.
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(d) PREPARATION OF MODEL STATE CODE OF MILI-
TARY JUSTICE AND MODEL STATE MANUAL FOR COURTS-
MARTIAL.—(1) The Secretary of Defense shall prepare,
for consideration for enactment by the States, a model
State code of military justice and a model State manual
of courts-martial for use with respect to the National
Guard not in Federal service. Both such models shall be
consistent with the recommendations contained in the re-
port, issued in 1998, by the panel known as the Depart-
ment of Defense Panel to Study Military Justice in the
National Guard not in Federal Service.
(2) The Secretary shall ensure that adequate support
for the preparation of such model State code and model
State manual (including the detailing of attorneys and
other staff) is provided by the General Counsel of the De-
partment of Defense, the Secretary of the Army, the Sec-
retary of the Air Force, and the Chief of the National
Guard Bureau.
(3) If the amounts available to the Chief of the Na-
tional Guard Bureau are not adequate for the costs re-
quired to provide support under paragraph (2) (including
costs for increased pay when members of the National
Guard are ordered to active duty, cost of detailed attor-
neys and other staff, allowances, and travel expenses), the
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Secretary shall, upon request of the Chief of the Bureau,
provide such additional amounts as are necessary.
(4) Not later than one year after the date of the en-
actment of this Act, the Secretary shall submit to the
Committee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives
a report on the implementation of this subsection. The re-
port shall include proposals in final form of both the model
State code and the model State manual required by para-
graph (1) and shall set forth the efforts being made to
present those proposals to the States for their consider-
ation for enactment.
(5) In this subsection, the term ‘‘State’’ includes the
District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, and Guam.
SEC. 513. MATCHING FUNDS REQUIREMENTS UNDER NA-
TIONAL GUARD YOUTH CHALLENGE PRO-
GRAM.
Effective October 1, 2002, subsection (d) of section
509 of title 32, United States Code, is amended to read
as follows:
‘‘(d) MATCHING FUNDS REQUIRED.—The amount of
assistance provided under this section to a State program
of the National Guard Challenge Program for a fiscal year
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may not exceed 75 percent of the costs of operating the
State program during that fiscal year.’’.
Subtitle C—Reserve Component
Officer Personnel Policy
SEC. 521. EXEMPTION FROM ACTIVE STATUS STRENGTH
LIMITATION 
FOR 
RESERVE 
COMPONENT
GENERAL AND FLAG OFFICERS SERVING ON
ACTIVE DUTY IN CERTAIN JOINT DUTY AS-
SIGNMENTS DESIGNATED BY THE CHAIRMAN
OF THE JOINT CHIEFS OF STAFF.
Section 12004 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(f)(1) A general or flag officer who is on active duty
but who is not counted under section 526(a) of this title
by reason of section 526(b)(2)(B) of this title shall also
be excluded from being counted under subsection (a).
‘‘(2) This subsection shall cease to be effective on the
date specified in section 526(b)(3) of this title.’’.
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SEC. 522. ELIGIBILITY FOR CONSIDERATION FOR PRO-
MOTION TO GRADE OF MAJOR GENERAL FOR
CERTAIN RESERVE COMPONENT BRIGADIER
GENERALS WHO DO NOT OTHERWISE QUAL-
IFY FOR CONSIDERATION FOR PROMOTION
UNDER THE ONE-YEAR RULE.
Section 14301(g) of title 10, United States Code, is
amended to read as follows:
‘‘(g) BRIGADIER GENERALS.—(1) An officer who is
a reserve component brigadier general of the Army or the
Air Force who is not eligible for consideration for pro-
motion under subsection (a) because the officer is not on
the reserve active status list (as required by paragraph
(1) of that subsection for such eligibility) is nevertheless
eligible for consideration for promotion to the grade of
major general by a promotion board convened under sec-
tion 14101(a) of this title if—
‘‘(A) as of the date of the convening of the pro-
motion board, the officer has been in an inactive sta-
tus for less than one year; and
‘‘(B) immediately before the date of the offi-
cer’s most recent transfer to an inactive status, the
officer had continuously served on the reserve active
status list or the active-duty list (or a combination
of the reserve active status list and the active-duty
list) for at least one year.
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‘‘(2) An officer who is a reserve component brigadier
general of the Army or the Air Force who is on the reserve
active status list but who is not eligible for consideration
for promotion under subsection (a) because the officer’s
service does not meet the one-year-of-continuous-service
requirement under paragraph (2) of that subsection is
nevertheless eligible for consideration for promotion to the
grade of major general by a promotion board convened
under section 14101(a) of this title if—
‘‘(A) the officer was transferred from an inac-
tive status to the reserve active status list during the
one-year period preceding the date of the convening
of the promotion board;
‘‘(B) immediately before the date of the offi-
cer’s most recent transfer to an active status, the of-
ficer had been in an inactive status for less than one
year; and
‘‘(C) immediately before the date of the officer’s
most recent transfer to an inactive status, the officer
had continuously served for at least one year on the
reserve active status list or the active-duty list (or
a combination of the reserve active status list and
the active-duty list).’’.
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SEC. 523. RETENTION OF PROMOTION ELIGIBILITY FOR RE-
SERVE COMPONENT GENERAL AND FLAG OF-
FICERS TRANSFERRED TO AN INACTIVE STA-
TUS.
Section 14317 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(f) EFFECT OF TRANSFER OF OFFICERS IN PAY
GRADE O–7 TO INACTIVE STATUS.—Notwithstanding
subsection (a), if a reserve officer on the active-status list
in the grade of brigadier general or rear admiral (lower
half) is transferred to an inactive status after having been
recommended for promotion to the grade of major general
or rear admiral under this chapter, or after having been
found qualified for Federal recognition in the grade of
major general under title 32, but before being promoted,
the officer shall retain promotion eligibility and, if other-
wise qualified, may be promoted to the higher grade after
returning to an active status.’’.
SEC. 524. AUTHORITY FOR LIMITED EXTENSION OF MED-
ICAL DEFERMENT OF MANDATORY RETIRE-
MENT OR SEPARATION FOR RESERVE OFFI-
CERS.
(a) DEFERMENT OF RETIREMENT OR SEPARATION
FOR MEDICAL REASONS.—Chapter 1407 of title 10,
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United States Code, is amended by adding at the end the
following new section:
‘‘§ 14519. Deferment of retirement or separation for
medical reasons
‘‘(a) If the Secretary of the military department con-
cerned determines that the evaluation of the physical con-
dition of a Reserve officer and determination of the offi-
cer’s entitlement to retirement or separation for physical
disability require hospitalization or medical observation
and that such hospitalization or medical observation can-
not be completed with confidence in a manner consistent
with the officer’s well-being before the date on which the
officer would otherwise be required to be separated, re-
tired, or transferred to the Retired Reserve under this
title, the Secretary may defer the separation, retirement,
or transfer of the officer under this title.
‘‘(b) A deferral under subsection (a) of separation,
retirement, or transfer to the Retired Reserve may not ex-
tend for more than 30 days after completion of the evalua-
tion requiring hospitalization or medical observation.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘14519. Deferment of retirement or separation for medical reasons.’’.
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of the President is submitted to Congress under section
1105 of title 31 for the fiscal year beginning in the same
year as the year in which that academic year begins.
Whenever the Secretary prescribes such an increase, the
Secretary shall submit to Congress a notice in writing of
the increase. The notice shall state the amount of the in-
crease in the cadet strength limit and the new cadet
strength limit, as so increased, and the amount of the in-
crease in Senior Army Reserve Officers’ Training Corps
enrollment under each of sections 2104 and 2107 of this
title.
‘‘(3) The amount of an increase under paragraph (1)
in the cadet strength limit for an academic year may not
exceed the increase (if any) for the preceding academic
year in the total number of cadets enrolled in the Army
Senior Reserve Officers’ Training Corps program under
chapter 103 of this title who have entered into an agree-
ment under section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘cadet strength
limit’ means the authorized maximum strength of the
Corps of Cadets of the Academy.’’.
(b) NAVAL ACADEMY.—Section 6954 of title 10,
United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following:
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‘‘or such higher number as may be prescribed by the
Secretary of the Navy under subsection (h)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(h)(1) Beginning with the 2003–2004 academic
year, the Secretary of the Navy may prescribe annual in-
creases in the midshipmen strength limit in effect under
subsection (a). For any academic year, any such increase
shall be by no more than 100 midshipmen or such lesser
number as applies under paragraph (3) for that year.
Such annual increases may be prescribed until the mid-
shipmen strength limit is 4,400. However, no increase may
be prescribed for any academic year after the 2007–2008
academic year.
‘‘(2) Any increase in the midshipmen strength limit
under paragraph (1) with respect to an academic year
shall be prescribed not later than the date on which the
budget of the President is submitted to Congress under
section 1105 of title 31 for the fiscal year beginning in
the same year as the year in which that academic year
begins. Whenever the Secretary prescribes such an in-
crease, the Secretary shall submit to Congress a notice
in writing of the increase. The notice shall state the
amount of the increase in the midshipmen strength limit
and the new midshipmen strength limit, as so increased,
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and the amount of the increase in Senior Navy Reserve
Officers’ Training Corps enrollment under each of sections
2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the midshipmen strength limit for an academic year
may not exceed the increase (if any) for the preceding aca-
demic year in the total number of midshipmen enrolled
in the Navy Senior Reserve Officers’ Training Corps pro-
gram under chapter 103 of this title who have entered into
an agreement under section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘midshipmen
strength limit’ means the authorized maximum strength
of the Brigade of Midshipmen.’’.
(c) AIR FORCE ACADEMY.—Section 9342 of title 10,
United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following:
‘‘or such higher number as may be prescribed by the
Secretary of the Air Force under subsection (j)’’;
and
(2) by adding at the end the following new sub-
section:
‘‘(j)(1) Beginning with the 2003–2004 academic
year, the Secretary of the Air Force may prescribe annual
increases in the cadet strength limit in effect under sub-
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section (a). For any academic year, any such increase shall
be by no more than 100 cadets or such lesser number as
applies under paragraph (3) for that year. Such annual
increases may be prescribed until the cadet strength limit
is 4,400. However, no increase may be prescribed for any
academic year after the 2007–2008 academic year.
‘‘(2) Any increase in the cadet strength limit under
paragraph (1) with respect to an academic year shall be
prescribed not later than the date on which the budget
of the President is submitted to Congress under sections
1105 of title 31 for the fiscal year beginning in the same
year as the year in which that academic year begins.
Whenever the Secretary prescribes such an increase, the
Secretary shall submit to Congress a notice in writing of
the increase. The notice shall state the amount of the in-
crease in the cadet strength limit and the new cadet
strength limit, as so increased, and the amount of the in-
crease in Senior Air Force Reserve Officers’ Training
Corps enrollment under each of sections 2104 and 2107
of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the cadet strength limit for an academic year may not
exceed the increase (if any) for the preceding academic
year in the total number of cadets enrolled in the Air
Force Senior Reserve Officers’ Training Corps program
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under chapter 103 of this title who have entered into an
agreement under section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘cadet strength
limit’ means the authorized maximum strength of Air
Force Cadets of the Academy.’’.
(d) TARGET FOR INCREASES IN NUMBER OF ROTC
SCHOLARSHIP PARTICIPANTS.—Section 2107 of such title
is amended by adding at the end the following new sub-
section:
‘‘(i) The Secretary of each military department shall
seek to achieve an increase in the number of agreements
entered into under this section so as to achieve an in-
crease, by the 2006–2007 academic year, of not less than
400 in the number of cadets or midshipmen, as the case
may be, enrolled under this section, compared to such
number enrolled for the 2002–2003 academic year. In the
case of the Secretary of the Navy, the Secretary shall seek
to ensure that not less than one-third of such increase in
agreements under this section are with students enrolled
(or seeking to enroll) in programs of study leading to a
baccalaureate degree in nuclear engineering or another ap-
propriate technical, scientific, or engineering field of
study.’’.
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(e) REPEAL OF LIMIT ON NUMBER OF ROTC SCHOL-
ARSHIPS.—Section 2107 of such title is further amended
by striking the first sentence of subsection (h)(1).
(f) REPEAL
OF
OBSOLETE
LANGUAGE.—Section
4342(i) of such title is amended by striking ‘‘(beginning
with the 2001–2002 academic year)’’.
SEC. 532. ENHANCEMENT OF RESERVE COMPONENT DE-
LAYED TRAINING PROGRAM.
(a) INCREASE IN TIME FOLLOWING ENLISTMENT
FOR COMMENCEMENT OF INITIAL PERIOD OF ACTIVE
DUTY
FOR TRAINING.—Section 12103(d) of title 10,
United States Code, is amended by striking ‘‘270 days’’
in the last sentence and inserting ‘‘one year’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to enlistments
under section 12103(d) of title 10, United States Code,
after the end of the 90–day period beginning on the date
of the enactment of this Act.
(c) TRANSITION.—In the case of a person who en-
listed under section 12103(d) of title 10, United States
Code, before the date of the enactment of this Act and
who as of such date has not commenced the required ini-
tial period of active duty for training under that section,
the amendment made by subsection (a) may be applied
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to that person, but only with the agreement of that person
and the Secretary concerned.
SEC. 533. PREPARATION FOR, PARTICIPATION IN, AND CON-
DUCT OF ATHLETIC COMPETITIONS BY THE
NATIONAL GUARD AND MEMBERS OF THE NA-
TIONAL GUARD.
(a) ATHLETIC AND SMALL ARMS COMPETITIONS.—
Section 504 of title 32, United States Code, is amended
by adding at the end the following new subsection:
‘‘(c) CONDUCT OF AND PARTICIPATION IN CERTAIN
COMPETITIONS.—(1) Under regulations prescribed by the
Secretary of Defense, members and units of the National
Guard may conduct and compete in a qualifying athletic
competition or a small arms competition so long as—
‘‘(A) the conduct of, or participation in, the
competition does not adversely affect the quality of
training or otherwise interfere with the ability of a
member or unit of the National Guard to perform
the military functions of the member or unit;
‘‘(B) National Guard personnel will enhance
their military skills as a result of conducting or par-
ticipating in the competition; and
‘‘(C) the conduct of or participation in the com-
petition will not result in a significant increase in
National Guard costs.
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‘‘(2) Facilities and equipment of the National Guard,
including military property and vehicles described in sec-
tion 508(c) of this title, may be used in connection with
the conduct of or participation in a qualifying athletic
competition or a small arms competition under paragraph
(1).’’.
(b) OTHER
MATTERS.—Such section is further
amended by adding after subsection (c), as added by sub-
section (a) of this section, the following new subsections:
‘‘(d) AVAILABILITY OF FUNDS.—(1) Subject to para-
graph (2) and such limitations as may be enacted in ap-
propriations Acts and such regulations as the Secretary
of Defense may prescribe, amounts appropriated for the
National Guard may be used to cover—
‘‘(A) the costs of conducting or participating in
a qualifying athletic competition or a small arms
competition under subsection (c); and
‘‘(B) the expenses of members of the National
Guard under subsection (a)(3), including expenses of
attendance and participation fees, travel, per diem,
clothing, equipment, and related expenses.
‘‘(2) Not more than $2,500,000 may be obligated or
expended in any fiscal year under subsection (c).
‘‘(e) QUALIFYING
ATHLETIC
COMPETITION
DE-
FINED.—In this section, the term ‘qualifying athletic com-
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petition’ means a competition in athletic events that re-
quire skills relevant to military duties or involve aspects
of physical fitness that are evaluated by the armed forces
in determining whether a member of the National Guard
is fit for military duty.’’.
(c) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by inserting ‘‘AUTHOR-
IZED ACTIVITIES.—’’ after ‘‘(a)’’; and
(2) in subsection (b), by inserting ‘‘AUTHOR-
IZED LOCATIONS.—’’ after ‘‘(b)’’.
(d) CONFORMING AND CLERICAL AMENDMENTS.—
(1) Subsection (a) of such section is amended—
(A) in paragraph (1), by inserting ‘‘and’’ after
the semicolon;
(B) in paragraph (2), by striking ‘‘; or’’ and in-
serting a period; and
(C) by striking paragraph (3).
(2) The heading of such section is amended to read
as follows:
‘‘§ 504. National Guard schools; small arms competi-
tions; athletic competitions’’.
(3) The item relating to section 504 in the table of
sections at the beginning of chapter 5 of title 32, United
States Code, is amended to read as follows:
‘‘504. National Guard schools; small arms competitions; athletic competitions.’’.
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Subtitle E—Decorations and
Awards
SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF
CERTAIN DECORATIONS TO CERTAIN PER-
SONS.
(a) WAIVER.—Any limitation established by law or
policy for the time within which a recommendation for the
award of a military decoration or award must be sub-
mitted shall not apply to awards of decorations described
in this section, the award of each such decoration having
been determined by the Secretary concerned to be war-
ranted in accordance with section 1130 of title 10, United
States Code.
(b) DISTINGUISHED FLYING CROSS.—Subsection (a)
applies to the award of the Distinguished Flying Cross
(including multiple awards to the same individual) in the
case of each individual concerning whom the Secretary of
the military department concerned (or a designated official
acting on behalf of the Secretary of the military depart-
ment concerned) submitted to the Committee on Armed
Services of the House of Representatives and the Com-
mittee on Armed Services of the Senate, during the period
beginning on December 28, 2001, and ending on the day
before the date of the enactment of this Act, a notice as
provided in section 1130(b) of title 10, United States
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Code, that the award of the Distinguished Flying Cross
to that individual is warranted and that a waiver of time
restrictions prescribed by law for recommendation for such
award is recommended.
SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES
EXPEDITIONARY MEDAL AWARDED FOR OP-
ERATION 
FREQUENT 
WIND 
TO 
VIETNAM
SERVICE MEDAL.
(a) IN GENERAL.—The Secretary of the military de-
partment concerned shall, upon the application of an indi-
vidual who is an eligible Vietnam evacuation veteran,
award that individual the Vietnam Service Medal, notwith-
standing any otherwise applicable requirements for the
award of that medal. Any such award shall be made in
lieu of the Armed Forces Expeditionary Medal awarded
the individual for participation in Operation Frequent
Wind.
(b) ELIGIBLE VIETNAM EVACUATION VETERAN.—
For purposes of this section, the term ‘‘eligible Vietnam
evacuation veteran’’ means a member or former member
of the Armed Forces who was awarded the Armed Forces
Expeditionary Medal for participation in military oper-
ations designated as Operation Frequent Wind arising
from the evacuation of Vietnam on April 29 and 30, 1975.
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Subtitle F—Administrative Matters
SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRIS-
ONER OF WAR/MISSING PERSONNEL OFFICE.
(a) REQUIREMENT FOR STAFFING AND FUNDING AT
LEVELS REQUIRED FOR PERFORMANCE OF FULL RANGE
OF MISSIONS.—Subsection (a) of section 1501 of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(5)(A) The Secretary of Defense shall ensure that
the office is provided sufficient military and civilian per-
sonnel levels, and sufficient funding, to enable the office
to fully perform its complete range of missions. The Sec-
retary shall ensure that Department of Defense program-
ming, planning, and budgeting procedures are structured
so as to ensure compliance with the preceding sentence
for each fiscal year.
‘‘(B) For any fiscal year, the number of military and
civilian personnel assigned or detailed to the office may
not be less than the number requested in the President’s
budget for fiscal year 2003, unless a level below such num-
ber is expressly required by law.
‘‘(C) For any fiscal year, the level of funding allo-
cated to the office within the Department of Defense may
not be below the level requested for such purposes in the
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President’s budget for fiscal year 2003, unless such a level
of funding is expressly required by law.’’.
(b) NAME OF OFFICE.—Such subsection is further
amended by inserting after the first sentence of paragraph
(1) the following new sentence: ‘‘Such office shall be
known as the Defense Prisoner of War/Missing Personnel
Office.’’.
SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PER-
SONNEL OF AGENCIES RESPONSIBLE FOR RE-
VIEW 
AND 
CORRECTION 
OF 
MILITARY
RECORDS.
(a) IN GENERAL.—Chapter 79 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 1559. Personnel limitation
‘‘(a) LIMITATION.—During fiscal years 2003, 2004,
and 2005, the Secretary of a military department may not
carry out any reduction in the number of military and ci-
vilian personnel assigned to duty with the service review
agency for that military department below the baseline
number for that agency until—
‘‘(1) the Secretary submits to Congress a report
that—
‘‘(A) describes the reduction proposed to
be made;
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‘‘(B) provides the Secretary’s rationale for
that reduction; and
‘‘(C) specifies the number of such per-
sonnel that would be assigned to duty with that
agency after the reduction; and
‘‘(2) a period of 90 days has elapsed after the
date on which the report is submitted.
‘‘(b) BASELINE NUMBER.—The baseline number for
a service review agency under this section is—
‘‘(1) for purposes of the first report with re-
spect to a service review agency under this section,
the number of military and civilian personnel as-
signed to duty with that agency as of January 1,
2002; and
‘‘(2) for purposes of any subsequent report with
respect to a service review agency under this section,
the number of such personnel specified in the most
recent report with respect to that agency under this
section.
‘‘(c) SERVICE REVIEW AGENCY DEFINED.—In this
section, the term ‘service review agency’ means—
‘‘(1) with respect to the Department of the
Army, the Army Review Boards Agency;
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‘‘(2) with respect to the Department of the
Navy, the Board for Correction of Naval Records;
and
‘‘(3) with respect to the Department of the Air
Force, the Air Force Review Boards Agency.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1559. Personnel limitation.’’.
SEC. 553. DEPARTMENT OF DEFENSE SUPPORT FOR PER-
SONS PARTICIPATING IN MILITARY FUNERAL
HONORS DETAILS.
Section 1491(d) of title 10, United States Code, is
amended—
(1) by striking ‘‘To provide a’’ after ‘‘SUP-
PORT.—’’ and inserting ‘‘(1) To support a’’;
(2) by redesignating paragraph (1) as subpara-
graph (A) and amending such subparagraph, as so
redesignated, to read as follows:
‘‘(A) For a person who participates in a funeral
honors detail (other than a person who is a member
of the armed forces not in a retired status or an em-
ployee of the United States), either transportation
(or reimbursement for transportation) and expenses
or the daily stipend prescribed under paragraph
(2).’’;
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(3) by redesignating paragraph (2) as subpara-
graph (B) and in that subparagraph—
(A) by striking ‘‘Materiel, equipment, and
training for’’ and inserting ‘‘For’’; and
(B) by inserting before the period at the
end ‘‘and for members of the armed forces in
a retired status, materiel, equipment, and train-
ing’’;
(4) by redesignating paragraph (3) as subpara-
graph (C) and in that subparagraph—
(A) by striking ‘‘Articles of clothing for’’
and inserting ‘‘For’’; and
(B) by inserting ‘‘, articles of clothing’’
after ‘‘subsection (b)(2)’’; and
(5) by adding at the end the following new
paragraphs:
‘‘(2) The Secretary of Defense shall prescribe annu-
ally a flat rate daily stipend for purposes of paragraph
(1)(A). Such stipend shall be set at a rate so as to encom-
pass typical costs for transportation and other miscella-
neous expenses for persons participating in funeral honors
details who are members of the armed forces in a retired
status and other persons are not members of the armed
forces or employees of the United States.
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‘‘(3) A stipend paid under this subsection to a mem-
ber of the armed forces in a retired status is in addition
to any compensation to which the member is entitled
under section 435(a)(2) of title 37 and any other com-
pensation to which the member may be entitled.’’.
SEC. 554. AUTHORITY FOR USE OF VOLUNTEERS AS PROC-
TORS 
FOR 
ADMINISTRATION 
OF 
ARMED
SERVICES VOCATIONAL APTITUDE BATTERY
TEST.
Section 1588(a) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(6) Voluntary services as a proctor for admin-
istration to secondary school students of the test
known as the ‘Armed Services Vocational Aptitude
Battery’.’’.
SEC. 555. ANNUAL REPORT ON STATUS OF FEMALE MEM-
BERS OF THE ARMED FORCES.
(a) IN GENERAL.—Chapter 23 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 488. Status of female members of the armed forces:
annual report
‘‘(a) ANNUAL REPORT.—The Secretary of Defense
shall submit to Congress an annual report on the status
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of female members of the armed forces. Information in
the report shall be shown for the Department of Defense
as a whole and separately for each of the Army, Navy,
Air Force, and Marine Corps.
‘‘(b) MATTERS TO BE INCLUDED.—Each report
under subsection (a) shall include, at a minimum, the fol-
lowing information with respect to female members:
‘‘(1) Access to health care.
‘‘(2) Positions open.
‘‘(3) Assignment policies.
‘‘(4) Joint spouse assignments.
‘‘(5) Deployment availability rates.
‘‘(6) Promotion and retention rates.
‘‘(7) Assignments in nontraditional fields.
‘‘(8) Assignments to command positions.
‘‘(9) Selection for service schools.
‘‘(10) Sexual harassment.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘488. Status of female members of the armed forces: annual report.’’.
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Subtitle G—Benefits
SEC. 561. VOLUNTARY LEAVE SHARING PROGRAM FOR
MEMBERS OF THE ARMED FORCES.
(a) IN GENERAL.—(1) Chapter 40 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 709. Voluntary transfers of leave
‘‘(a) PROGRAM.—The Secretary concerned shall, by
regulation, establish a program under which leave accrued
by a member of an armed force may be transferred to an-
other member of the same armed force who requires addi-
tional leave because of a qualifying emergency. Any such
transfer of leave may be made only upon the voluntary
written application of the member whose leave is to be
transferred.
‘‘(b) APPROVAL
OF COMMANDING OFFICER RE-
QUIRED.—Any transfer of leave under a program under
this section may only be made with the approval of the
commanding officer of the leave donor and the leave re-
cipient.
‘‘(c) QUALIFYING EMERGENCY.—In this section, the
term ‘qualifying emergency’, with respect to a member of
the armed forces, means a circumstance that—
‘‘(1) is likely to require the prolonged absence
of the member from duty; and
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‘‘(2) is due to—
‘‘(A) a medical condition of a member of
the immediate family of the member; or
‘‘(B) any other hardship that the Secretary
concerned determines appropriate for purposes
of this section.
‘‘(d) MILITARY DEPARTMENT REGULATIONS.—Reg-
ulations prescribed under this section by the Secretaries
of the military department shall be as uniform as prac-
ticable and shall be subject to approval by the Secretary
of Defense.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘709. Voluntary transfers of leave.’’.
(b) DEADLINE FOR IMPLEMENTING REGULATIONS.—
Regulations to implement section 709 of title 10, United
States Code, as added by subsection (a), shall be pre-
scribed not later than six months after the date of the
enactment of this Act.
SEC. 562. ENHANCED FLEXIBILITY IN MEDICAL LOAN RE-
PAYMENT PROGRAM.
(a) ELIGIBLE PERSONS.—Subsection (d) of section
2173 of title 10, United States Code, is amended by strik-
ing ‘‘Participants’’ and all that follows through ‘‘and stu-
dents’’ and inserting ‘‘Students’’.
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(b) LOAN REPAYMENT AMOUNTS.—Subsection (e)(2)
of such section is amended by striking the last sentence.
SEC. 563. EXPANSION OF OVERSEAS TOUR EXTENSION BEN-
EFITS.
Section 705(b)(2) of title 10, United States Code, is
amended—
(1) by striking ‘‘recuperative’’ and inserting
‘‘recuperation’’; and
(2) by inserting before the period at the end the
following: ‘‘, or to an alternate location at a cost not
to exceed the cost of transportation to the nearest
port in the 48 contiguous States, and return’’.
SEC. 564. VEHICLE STORAGE IN LIEU OF TRANSPORTATION
WHEN MEMBER IS ORDERED TO A NONFOR-
EIGN DUTY STATION OUTSIDE CONTINENTAL
UNITED STATES.
(a) STORAGE COSTS AUTHORIZED.—Subsection (b)
of section 2634 of title 10, United States Code, is amend-
ed by striking paragraphs (1) and (2) and inserting the
following:
‘‘(b)(1) When a member receives a vehicle storage
qualifying order, the member may elect to have a motor
vehicle described in subsection (a) stored at the expense
of the United States at a location approved by the Sec-
retary concerned. In the case of a vehicle storage quali-
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fying order that is to make a change of permanent station,
such storage is in lieu of transportation authorized by sub-
section (a).
‘‘(2) In this subsection, the term ‘vehicle storage
qualifying order’ means any of the following:
‘‘(A) An order to make a change of permanent
station to a foreign country in a case in which the
laws, regulations, or other restrictions imposed by
the foreign country or by the United States either—
‘‘(i) preclude entry of a motor vehicle de-
scribed in subsection (a) into that country; or
‘‘(ii) would require extensive modification
of the vehicle as a condition to entry.
‘‘(B) An order to make a change of permanent
station to a nonforeign area outside the continental
United States in a case in which the laws, regula-
tions, or other restrictions imposed by that area or
by the United States either—
‘‘(i) preclude entry of a motor vehicle de-
scribed in subsection (a) into that area; or
‘‘(ii) would require extensive modification
of the vehicle as a condition to entry.
‘‘(C) An order under which a member is trans-
ferred or assigned in connection with a contingency
operation to duty at a location other than the per-
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manent station of the member for a period of more
than 30 consecutive days but which is not considered
a change of permanent station.’’.
(b) NONFOREIGN AREA OUTSIDE THE CONTINENTAL
UNITED STATES DEFINED.—Subsection (h) of such sec-
tion is amended by adding at the end the following new
paragraph:
‘‘(3) The term ‘nonforeign area outside the con-
tinental United States’ means any of the following:
the States of Alaska and Hawaii, the Common-
wealths of Puerto Rico and the Northern Mariana
Islands, and any possession of the United States.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section apply to orders to make a change of perma-
nent station to a nonforeign area outside the continental
United States (as such term is defined in subsection (h)(3)
of section 2634 of title 10, United States Code, as added
by subsection (b)) that are issued on or after the date of
the enactment of this Act.
Subtitle H—Military Justice
Matters
SEC. 571. RIGHT OF CONVICTED ACCUSED TO REQUEST
SENTENCING BY MILITARY JUDGE.
(a) SENTENCING BY JUDGE.—(1) Chapter 47 of title
10, United States Code (the Uniform Code of Military
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Justice), is amended by inserting after section 852 (article
52) the following new section:
‘‘§ 852a. Art. 52a. Right of accused to request sen-
tencing by military judge rather than by
members
‘‘(a) In the case of an accused convicted of an offense
by a court-martial composed of a military judge and mem-
bers, the sentence shall be tried before and adjudged by
the military judge rather than the members if, after the
findings are announced and before evidence in the sen-
tencing proceeding is introduced, the accused, knowing the
identity of the military judge and after consultation with
defense counsel, requests orally on the record or in writing
that the sentence be tried before and adjudged by the mili-
tary judge rather than the members.
‘‘(b) This section shall not apply with respect to an
offense for which the death penalty may be adjudged un-
less the case has been previously referred to trial as a non-
capital case.’’.
(2) The table of sections at the beginning of sub-
chapter VII of such chapter is amended by inserting after
the item relating to section 852 (article 52) the following
new item:
‘‘852a. 52a. Right of accused to request sentencing by military judge rather
than by members.’’.
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(b) EFFECTIVE DATE.—Section 852a of title 10,
United States Code (article 52a of the Uniform Code of
Military Justice), as added by subsection (a), shall apply
with respect to offenses committed on or after January
1, 2003.
SEC. 572. REPORT ON DESIRABILITY AND FEASIBILITY OF
CONSOLIDATING 
SEPARATE 
COURSES 
OF
BASIC 
INSTRUCTION 
FOR 
JUDGE 
ADVO-
CATES.
Not later than February 1, 2003, the Secretary of
Defense shall submit to the Committee on Armed Services
of the Senate and the Committee on Armed Services of
the House of Representatives a report on the desirability
and feasibility of consolidating the separate Army, Navy,
and Air Force courses of basic instruction for judge advo-
cates into a single course to be conducted at a single loca-
tion. The report shall include—
(1) an assessment of the advantages and dis-
advantages of such a consolidation;
(2) a recommendation as to whether such a
consolidation is desirable and feasible; and
(3) any proposal for legislative action that the
Secretary considers appropriate for carrying out
such a consolidation.
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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 2003.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The
adjustment to become effective during fiscal year 2003 re-
quired by section 1009 of title 37, United States Code,
in the rates of monthly basic pay authorized members of
the uniformed services shall not be made.
(b) INCREASE IN BASIC PAY.—Effective on January
1, 2003, the rates of monthly basic pay for members of
the uniformed services within each pay grade are as fol-
lows:
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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 ...
7,474.50
7,719.30
7,881.60
7,927.20
8,129.40
O–7 ...
6,210.90
6,499.20
6,633.00
6,739.20
6,930.90
O–6 ...
4,603.20
5,057.10
5,388.90
5,388.90
5,409.60
O–5 ...
3,837.60
4,323.00
4,622.40
4,678.50
4,864.80
O–4 ...
3,311.10
3,832.80
4,088.70
4,145.70
4,383.00
O–3 3
2,911.20
3,300.30
3,562.20
3,883.50
4,069.50
O–2 3
2,515.20
2,864.70
3,299.40
3,410.70
3,481.20
O–1 3
2,183.70
2,272.50
2,746.80
2,746.80
2,746.80
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 ...
8,468.70
8,547.30
8,868.90
8,961.30
9,238.20
O–7 ...
7,120.80
7,340.40
7,559.40
7,779.00
8,468.70
O–6 ...
5,641.20
5,672.10
5,672.10
5,994.60
6,564.30
O–5 ...
4,977.00
5,222.70
5,403.00
5,635.50
5,991.90
O–4 ...
4,637.70
4,954.50
5,201.40
5,372.70
5,471.10
O–3 3
4,273.50
4,405.80
4,623.30
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2
$0.00
$12,077.70
$12,137.10
$12,389.40
$12,829.20
O–9 ...
0.00
10,563.60
10,715.70
10,935.60
11,319.60
O–8 ...
9,639.00
10,008.90
10,255.80
10,255.80
10,255.80
O–7 ...
9,051.30
9,051.30
9,051.30
9,051.30
9,096.90
O–6 ...
6,898.80
7,233.30
7,423.50
7,616.10
7,989.90
O–5 ...
6,161.70
6,329.10
6,519.60
6,519.60
6,519.60
O–4 ...
5,528.40
5,528.40
5,528.40
5,528.40
5,528.40
O–3 3
4,736.10
4,736.10
4,736.10
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for
commissioned officers in pay grades 0–7 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, 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, or Commandant of the Coast Guard, the rate of basic
pay for this grade is $14,155.50, regardless of cumulative years of service computed under section
205 of title 37, United States Code.
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have
been credited with over 4 years of active duty service as an enlisted member or warrant officer.
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COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE
AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–3E
$0.00
$0.00
$0.00
$3,883.50
$4,069.50
O–2E
0.00
0.00
0.00
3,410.70
3,481.20
O–1E
0.00
0.00
0.00
2,746.80
2,933.70
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E
$4,273.50
$4,405.80
$4,623.30
$4,806.30
$4,911.00
O–2E
3,591.90
3,778.80
3,923.40
4,031.10
4,031.10
O–1E
3,042.00
3,152.70
3,261.60
3,410.70
3,410.70
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E
$5,054.40
$5,054.40
$5,054.40
$5,054.40
$5,054.40
O–2E
4,031.10
4,031.10
4,031.10
4,031.10
4,031.10
O–1E
3,410.70
3,410.70
3,410.70
3,410.70
3,410.70
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 ..
3,008.10
3,236.10
3,329.10
3,420.60
3,578.10
W–3 ..
2,747.10
2,862.00
2,979.30
3,017.70
3,141.00
W–2 ..
2,416.50
2,554.50
2,675.10
2,763.00
2,838.30
W–1 ..
2,133.90
2,308.50
2,425.50
2,501.10
2,662.50
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ..
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ..
3,733.50
3,891.00
4,044.60
4,203.60
4,356.00
W–3 ..
3,281.70
3,467.40
3,580.50
3,771.90
3,915.60
W–2 ..
2,993.10
3,148.50
3,264.00
3,376.50
3,453.90
W–1 ..
2,782.20
2,888.40
3,006.90
3,085.20
3,203.40
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ..
$0.00
$5,169.30
$5,346.60
$5,524.50
$5,703.30
W–4 ..
4,512.00
4,664.40
4,822.50
4,978.20
5,137.50
W–3 ..
4,058.40
4,201.50
4,266.30
4,407.00
4,548.00
W–2 ..
3,579.90
3,705.90
3,831.00
3,957.30
3,957.30
W–1 ..
3,320.70
3,409.50
3,409.50
3,409.50
3,409.50
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 ...
2,068.50
2,257.80
2,343.90
2,428.20
2,516.40
E–6 ...
1,770.60
1,947.60
2,033.70
2,117.10
2,204.10
E–5 ...
1,625.40
1,733.70
1,817.40
1,903.50
2,037.00
E–4 ...
1,502.70
1,579.80
1,665.30
1,749.30
1,824.00
E–3 ...
1,356.90
1,442.10
1,528.80
1,528.80
1,528.80
E–2 ...
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ...
3 1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00
$3,564.30
$3,645.00
$3,747.00
$3,867.00
E–8 ...
2,975.40
3,061.20
3,141.30
3,237.60
3,342.00
E–7 ...
2,667.90
2,753.40
2,838.30
2,990.40
3,066.30
E–6 ...
2,400.90
2,477.40
2,562.30
2,636.70
2,663.10
E–5 ...
2,151.90
2,236.80
2,283.30
2,283.30
2,283.30
E–4 ...
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ...
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ...
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ...
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 18
Over 20
Over 22
Over 24
Over 26
E–9 2
$3,987.30
$4,180.80
$4,344.30
$4,506.30
$4,757.40
E–8 ...
3,530.10
3,625.50
3,787.50
3,877.50
4,099.20
E–7 ...
3,138.60
3,182.70
3,331.50
3,427.80
3,671.40
E–6 ...
2,709.60
2,709.60
2,709.60
2,709.60
2,709.60
E–5 ...
2,283.30
2,283.30
2,283.30
2,283.30
2,283.30
E–4 ...
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ...
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ...
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ...
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
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, while serving as Sergeant Major of the Army, Master Chief
Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine
Corps, or Master Chief Petty Officer of the Coast Guard, basic pay for this grade is $5,732.70, re-
gardless 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 $1,064.70.
SEC. 602. EXPANSION OF BASIC ALLOWANCE FOR HOUSING
LOW-COST OR NO-COST MOVES AUTHORITY
TO MEMBERS ASSIGNED TO DUTY OUTSIDE
UNITED STATES.
Section 403(c) of title 37, United States Code, is
amended by adding at the end the following new para-
graph:
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‘‘(4) In the case of a member who is assigned to duty
outside of the United States, the location or the cir-
cumstances of which make it necessary that the member
be reassigned under the conditions of low-cost or no-cost
permanent change of station or permanent change of as-
signment, the member may be treated as if the member
were not reassigned if the Secretary concerned determines
that it would be inequitable to base the member’s entitle-
ment to, and amount of, a basic allowance for housing on
the cost of housing in the area to which the member is
reassigned.’’.
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 amend-
ed by striking ‘‘December 31, 2002’’ and inserting ‘‘De-
cember 31, 2003’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘Decem-
ber 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(c) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section
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308d(c) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(d) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(e) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘Decem-
ber 31, 2003’’.
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f ) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
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, 2002’’ and
inserting ‘‘December 31, 2003’’.
(b) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of such title is
amended by striking ‘‘January 1, 2003’’ and inserting
‘‘January 1, 2004’’.
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(c) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘Decem-
ber 31, 2003’’.
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPE-
CIALTIES.—Section 302g(f ) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—
Section 302h(a)(1) of such title is amended by striking
‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS.
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section
312(e) of title 37, United States Code, is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
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(b) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(c) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE
BONUS.—Section 312c(d) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND
SPECIAL PAY AUTHORITIES.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘Decem-
ber 31, 2003’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
ing ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 309(e) of such title is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(d) RETENTION BONUS FOR MEMBERS WITH CRIT-
ICAL MILITARY SKILLS.—Section 323(i) of such title is
amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
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(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
SEC. 615. MINIMUM LEVELS OF HARDSHIP DUTY PAY FOR
DUTY ON THE GROUND IN ANTARCTICA OR
ON ARCTIC ICEPACK.
Section 305 of title 37, United States Code, is
amended—
(1) by redesignating subsection (b) as sub-
section (c); and
(2) by inserting after subsection (a), the fol-
lowing new subsection:
‘‘(b) DUTY IN CERTAIN LOCATIONS.—(1) In the case
of duty at a location described in paragraph (2) at any
time during a month, the member of a uniformed service
performing that duty is entitled to special pay under this
section at a monthly rate of not less than $240, but not
to exceed the monthly rate specified in subsection (a). For
each day of that duty during the month, the member shall
receive an amount equal to 1⁄30 of the monthly rate pre-
scribed under this subsection.
‘‘(2) Paragraph (1) applies with respect to duty per-
formed on the ground in Antarctica or on the Arctic ice-
pack.’’.
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SEC. 616. INCREASE IN MAXIMUM RATES FOR PRIOR SERV-
ICE ENLISTMENT BONUS.
Section 308i(b)(1) of title 37, United States Code,
is amended—
(1) in subparagraph (A), by striking ‘‘$5,000’’
and inserting ‘‘$8,000’’;
(2) in subparagraph (B), by striking ‘‘$2,500’’
and inserting ‘‘$4,000’’; and
(3) in subparagraph (C), by striking ‘‘$2,000’’
and inserting ‘‘$3,500’’.
SEC. 617. RETENTION INCENTIVES FOR HEALTH CARE PRO-
VIDERS QUALIFIED IN A CRITICAL MILITARY
SKILL.
(a) EXCEPTION TO LIMITATION ON MAXIMUM BONUS
AMOUNT.—Subsection (d) of section 323 of title 37,
United States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘A member’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) The limitation in paragraph (1) on the total
bonus payments that a member may receive under this
section does not apply with respect to an officer who is
assigned duties as a health care provider.’’.
(b) EXCEPTION
TO YEARS
OF SERVICE LIMITA-
TION.—Subsection (e) of such section is amended—
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(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ before ‘‘A retention’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(2) The limitations in paragraph (1) do not apply
with respect to an officer who is assigned duties as a
health care provider during the period of active duty for
which the bonus is being offered.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. EXTENSION OF LEAVE TRAVEL DEFERRAL PE-
RIOD FOR MEMBERS PERFORMING CONSECU-
TIVE OVERSEAS TOURS OF DUTY.
(a) AUTHORIZED DEFERRAL PERIOD.—Section 411b
of title 37, United States Code is amended by inserting
after subsection (a) the following new subsection:
‘‘(b) AUTHORITY
TO
DEFER
TRAVEL; LIMITA-
TIONS.—(1) Under the regulations referred to subsection
(a), a member may defer the travel for which the member
is paid travel and transportation allowances under this
section until anytime before the completion of the consecu-
tive tour at the same duty station or the completion of
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the tour of duty at the new duty station under the order
involved, as the case may be.
‘‘(2) If a member is unable to undertake the travel
before expiration of the deferral period under paragraph
(1) because of duty in connection with a contingency oper-
ation, the member may defer the travel until not more
than one year after the date on which the member’s duty
in connection with the contingency operation ends.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—
Such section is further amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)(1)’’ and inserting ‘‘(a)
ALLOWANCES AUTHORIZED.—’’; and
(B) by striking paragraph (2); and
(2) by striking ‘‘(b) The allowances’’ and insert-
ing ‘‘(c) LIMITATION ON ALLOWANCE RATE.—’’.
(c) APPLICATION OF AMENDMENT.—Subsection (b)
of section 411b of title 37, United States Code, as added
by subsection (a), shall apply with respect to members of
the uniformed services in a deferred leave travel status
under such section as of the date of the enactment of this
Act or after that date.
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Subtitle D—Retired Pay and
Survivors Benefits
SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF
MILITARY RETIRED PAY AND VETERANS DIS-
ABILITY COMPENSATION FOR MILITARY RE-
TIREES WITH DISABILITIES RATED AT 60
PERCENT OR HIGHER.
(a) CONCURRENT RECEIPT.—Section 1414 of title
10, United States Code, is amended to read as follows:
‘‘§ 1414. Members eligible for retired pay who have
service-connected disabilities rated at 60
percent or higher: concurrent payment of
retired pay and veterans’ disability com-
pensation
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Subject to subsection (b), a member or
former member of the uniformed services who is entitled
for any month to retired pay and who is also entitled for
that month to veterans’ disability compensation for a
qualifying service-connected disability (hereinafter in this
section referred to as a ‘qualified retiree’) is entitled to
be paid both for that month without regard to sections
5304 and 5305 of title 38. For fiscal years 2003 through
2006, payment of retired pay to such a member or former
member is subject to subsection (c).
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‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY
RETIREES.—
‘‘(1) CAREER RETIREES.—The retired pay of a
member retired under chapter 61 of this title with
20 years or more of service otherwise creditable
under section 1405 of this title at the time of the
member’s retirement is subject to reduction under
sections 5304 and 5305 of title 38, but only to the
extent that the amount of the member’s retired pay
under chapter 61 of this title exceeds the amount of
retired pay to which the member would have been
entitled under any other provision of law based upon
the member’s service in the uniformed services if the
member had not been retired under chapter 61 of
this title.
‘‘(2) DISABILITY RETIREES WITH LESS THAN 20
YEARS OF SERVICE.—Subsection (a) does not apply
to a member retired under chapter 61 of this title
with less than 20 years of service otherwise cred-
itable under section 1405 of this title at the time of
the member’s retirement.
‘‘(c) PHASE-IN OF FULL CONCURRENT RECEIPT.—
For fiscal years 2003 through 2006, retired pay payable
to a qualified retiree shall be determined as follows:
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‘‘(1) FISCAL YEAR 2003.—For a month during
fiscal year 2003, the amount of retired pay payable
to a qualified retiree is the amount (if any) of re-
tired pay in excess of the current baseline offset plus
the following:
‘‘(A) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
total, $750.
‘‘(B) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
90 percent, $500.
‘‘(C) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
80 percent, $250.
‘‘(D) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
70 percent, $250.
‘‘(E) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
60 percent, $125.
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‘‘(2) FISCAL YEAR 2004.—For a month during
fiscal year 2004, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount specified in paragraph
(1) for that qualified retiree; and
‘‘(B) 23 percent of the difference between
(i) the current baseline offset, and (ii) the
amount specified in paragraph (1) for that
member’s disability.
‘‘(3) FISCAL YEAR 2005.—For a month during
fiscal year 2005, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount determined under para-
graph (2) for that qualified retiree; and
‘‘(B) 30 percent of the difference between
(i) the current baseline offset, and (ii) the
amount determined under paragraph (2) for
that qualified retiree.
‘‘(4) FISCAL YEAR 2006.—For a month during
fiscal year 2006, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount determined under para-
graph (3) for that qualified retiree; and
‘‘(B) 64 percent of the difference between
(i) the current baseline offset, and (ii) the
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amount determined under paragraph (3) for
that qualified retiree.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) RETIRED PAY.—The term ‘retired pay’ in-
cludes retainer pay, emergency officers’ retirement
pay, and naval pension.
‘‘(2) VETERANS’ DISABILITY COMPENSATION.—
The term ‘veterans’ disability compensation’ has the
meaning given the term ‘compensation’ in section
101(13) of title 38.
‘‘(3) SERVICE-CONNECTED.—The term ‘service-
connected’ has the meaning given that term in sec-
tion 101(16) of title 38.
‘‘(4) QUALIFYING
SERVICE-CONNECTED
DIS-
ABILITY.—The term ‘qualifying service-connected
disability’ means a service-connected disability or
combination of service-connected disabilities that is
rated as not less than 60 percent disabling by the
Secretary of Veterans Affairs.
‘‘(5) DISABILITY RATED AS TOTAL.—The term
‘disability rated as total’ means—
‘‘(A) a disability, or combination of disabil-
ities, that is rated as total under the standard
schedule of rating disabilities in use by the De-
partment of Veterans Affairs; or
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‘‘(B) a disability, or combination of disabil-
ities, for which the scheduled rating is less than
total but for which a rating of total is assigned
by reason of inability of the disabled person
concerned to secure or follow a substantially
gainful occupation as a result of service-con-
nected disabilities.
‘‘(6) CURRENT BASELINE OFFSET.—
‘‘(A) IN
GENERAL.—The term ‘current
baseline offset’ for any qualified retiree means
the amount for any month that is the lesser
of—
‘‘(i) the amount of the applicable
monthly retired pay of the qualified retiree
for that month; and
‘‘(ii) the amount of monthly veterans’
disability compensation to which the quali-
fied retiree is entitled for that month.
‘‘(B) APPLICABLE RETIRED PAY.—In sub-
paragraph (A), the term ‘applicable retired pay’
for a qualified retiree means the amount of
monthly retired pay to which the qualified re-
tiree is entitled, determined without regard to
this section or sections 5304 and 5305 of title
38), except that in the case of such a retiree
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who was retired under chapter 61 of this title,
such amount is the amount of retired pay to
which the member would have been entitled
under any other provision of law based upon
the member’s service in the uniformed services
if the member had not been retired under chap-
ter 61 of this title.’’.
(b) REPEAL OF SPECIAL COMPENSATION AUTHOR-
ITY.—Section 1413 of title 10, United States Code, is re-
pealed.
(c) PAYMENT OF INCREASED RETIRED PAY COSTS
DUE TO CONCURRENT RECEIPT.—(1) Section 1465(b) of
such title is amended by adding at the end the following
new paragraph:
‘‘(3) At the same time that the Secretary of Defense
makes the determination required by paragraph (1) for
any fiscal year, the Secretary shall determine the amount
of the Treasury contribution to be made to the Fund for
the next fiscal year under section 1466(b)(2)(D) of this
title. That amount shall be determined in the same man-
ner as the determination under paragraph (1) of the total
amount of Department of Defense contributions to be
made to the Fund during that fiscal year under section
1466(a) of this title, except that for purposes of this para-
graph the Secretary, in making the calculations required
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by subparagraphs (A) and (B) of that paragraph, shall
use the single level percentages determined under sub-
section (c)(4), rather than those determined under sub-
section (c)(1).’’.
(2) Section 1465(c) of such title is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting be-
fore the semicolon at the end the following: ‘‘,
to be determined without regard to section
1414 of this title’’;
(ii) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘, to
be determined without regard to section 1414
of this title’’; and
(iii) in the sentence following subparagraph
(B), by striking ‘‘subsection (b)’’ and inserting
‘‘subsection (b)(1)’’;
(B) by redesignating paragraph (4) as para-
graph (5); and
(C) by inserting after paragraph (3) the fol-
lowing new paragraph (4):
‘‘(4) Whenever the Secretary carries out an actuarial
valuation under paragraph (1), the Secretary shall include
as part of such valuation the following:
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‘‘(A) A determination of a single level percent-
age determined in the same manner as applies under
subparagraph (A) of paragraph (1), but based only
upon the provisions of section 1414 of this title.
‘‘(B) A determination of a single level percent-
age determined in the same manner as applies under
subparagraph (B) of paragraph (1), but based only
upon the provisions of section 1414 of this title.
Such single level percentages shall be used for the pur-
poses of subsection (b)(3).’’.
(3) Section 1466(b) of such title is amended—
(A) in paragraph (1), by striking ‘‘sections
1465(a) and 1465(c)’’ and inserting ‘‘sections
1465(a), 1465(b)(3), 1465(c)(2), and 1465(c)(3)’’;
and
(B) by adding at the end of paragraph (2) the
following new subparagraph:
‘‘(D) The amount for that year determined by
the Secretary of Defense under section 1465(b)(3)
of this title for the cost to the Fund arising from in-
creased amounts payable from the Fund by reason
of section 1414 of this title.’’.
(d) CLERICAL AMENDMENTS.—The table of sections
at the beginning of chapter 71 of such title is amended—
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(1) by striking the item relating to section
1413; and
(2) by striking the item relating to section 1414
and inserting the following:
‘‘1414. Members eligible for retired pay who have service-connected disabilities
rated at 60 percent or higher: concurrent payment of retired
pay and veterans’ disability compensation.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to retired pay payable
for months after September 2002.
SEC. 642. CHANGE IN SERVICE REQUIREMENTS FOR ELIGI-
BILITY FOR RETIRED PAY FOR NON-REGULAR
SERVICE.
(a) REDUCTION IN REQUIREMENT FOR YEARS OF
RESERVE COMPONENT SERVICE BEFORE RETIRED PAY
ELIGIBILITY.—Section 12731(a)(3) of title 10, United
States Code, is amended by striking ‘‘eight years’’ and in-
serting ‘‘six years’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2002.
SEC. 643. ELIMINATION OF POSSIBLE INVERSION IN RE-
TIRED PAY COST-OF-LIVING ADJUSTMENT
FOR INITIAL COLA COMPUTATION.
(a) ELIMINATION OF POSSIBLE COLA INVERSION.—
Section 1401a of title 10, United States Code, is
amended—
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(1) in subsections (c)(1), (d), and (e), by insert-
ing ‘‘but subject to subsection (f)(2)’’ after ‘‘Not-
withstanding subsection (b)’’;
(2) in subsection (c)(2), by inserting ‘‘(subject
to subsection (f)(2) as applied to other members
whose retired pay is computed on the current rates
of basic pay in the most recent adjustment under
this section)’’ after ‘‘shall be increased’’; and
(3) in subsection (f)—
(A) by designating the text after the sub-
section heading as paragraph (1), indenting
that text two ems, and inserting ‘‘(1) PREVEN-
TION OF RETIRED PAY INVERSIONS.—’’ before
‘‘Notwithstanding’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) PREVENTION OF COLA INVERSIONS.—The
percentage of the first adjustment under this section
in the retired pay of any person, as determined
under subsection (c)(1), (c)(2), (d), or (e), may not
exceed the percentage increase in retired pay deter-
mined under subsection (b)(2) that is effective on
the same date as the effective date of such first ad-
justment.’’.
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(b) TECHNICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (d), by inserting ‘‘or on or
after August 1, 1986, if the member or former mem-
ber did not elect to receive a bonus under section
322 of title 37’’ after ‘‘August 1, 1986,’’; and
(2) in subsection (e), by inserting ‘‘and elected
to receive a bonus under section 322 of title 37’’
after ‘‘August 1, 1986,’’.
SEC. 644. TECHNICAL REVISIONS TO SO-CALLED ‘‘FORGOT-
TEN WIDOWS’’ ANNUITY PROGRAM.
(a) CLARIFICATION
OF
ELIGIBILITY.—Subsection
(a)(1) of section 644 of the National Defense Authoriza-
tion Act for Fiscal Year 1998 (Public Law 105–85; 10
U.S.C. 1448 note) is amended—
(1) in subparagraph (A), by inserting after
‘‘(A)’’ the following: ‘‘became entitled to retired or
retainer pay before September 21, 1972,’’; and
(2) in subparagraph (B), by striking ‘‘was a
member of a reserve component of the Armed
Forces’’ and inserting ‘‘died’’.
(b) CLARIFICATION OF INTERACTION WITH OTHER
BENEFITS.—(1) Subsection (a)(2) of such section is
amended by striking ‘‘and who’’ and all that follows
through ‘‘note)’’.
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(2) Subsection (b)(2) of such section is amended to
read as follows:
‘‘(2) The amount of an annuity to which a surviving
spouse is entitled under this section for any period shall
be reduced (but not below zero) by any amount paid to
that surviving spouse for the same period under any of
the following provisions of law:
‘‘(A) Section 1311(a) of title 38, United States
Code (relating to dependency and indemnity com-
pensation payable by the Secretary of Veterans Af-
fairs).
‘‘(B) Chapter 73 of title 10, United States
Code.
‘‘(C) Section 4 of Public Law 92–425 (10
U.S.C. 1448 note).’’.
(c) CLARIFICATION OF DEFINITION OF SURVIVING
SPOUSE.—Subsection (d)(2) of such section is amended
by striking ‘‘the terms’’ and all that follows through ‘‘and
(8)’’ and inserting ‘‘such term in paragraph (9)’’.
(d) CLARIFICATION OF EFFECTIVE DATE OF BENE-
FITS.—Subsection (e) of such section is amended—
(1) in paragraph (1), by striking ‘‘the month in
which this Act is enacted’’ and inserting ‘‘November
1997’’;
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(2) in paragraph (2), by striking ‘‘the first
month that begins after the month in which this Act
is enacted’’ and inserting ‘‘December 1997’’; and
(3) by adding at the end the following new
paragraph:
‘‘(3) In the case of a person entitled to an annuity
under this section who applies for the annuity after the
date of the enactment of this paragraph, such annuity
shall be paid only for months beginning after the date on
which such application is submitted.’’.
(e) SPECIFICATION IN LAW OF CURRENT BENEFIT
AMOUNT.—Subsection (b) of such section is amended—
(1) in paragraph (1), by striking ‘‘$165’’ and
inserting ‘‘$185.58’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the date of the enactment
of this Act’’ and inserting ‘‘May 1, 2002,’’; and
(B) by striking the last sentence.
Subtitle E—Reserve Component
Montgomery GI Bill
SEC. 651. EXTENSION OF MONTGOMERY GI BILL-SELECTED
RESERVE ELIGIBILITY PERIOD.
Section 16133(a) of title 10, United States Code, is
amended by striking ‘‘10-year’’ and inserting ‘‘14-year’’.
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Subtitle F—Other Matters
SEC. 661. ADDITION OF DEFINITION OF CONTINENTAL
UNITED STATES IN TITLE 37.
(a) DEFINITION.—Section 101(1) of title 37, United
States Code, is amended by adding at the end the fol-
lowing new sentence: ‘‘The term ‘continental United
States’ means the 48 contiguous States and the District
of Columbia.’’.
(b) CONFORMING AMENDMENTS.—Title 37, United
States Code, is amended as follows:
(1) Section 314(a)(3) is amended by striking
‘‘the 48 contiguous States and the District of Co-
lumbia’’ and inserting ‘‘the continental United
States’’.
(2) Section 403b(i) is amended by striking
paragraph (6).
(3) Section 409 is amended by striking sub-
section (e).
(4) Section 411b(a) is amended by striking ‘‘the
48 contiguous States and the District of Columbia’’
both places it appears and inserting ‘‘the continental
United States’’.
(5) Section 411d is amended by striking sub-
section (d).
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(6) Section 430 is amended by striking sub-
section (f) and inserting the following new sub-
section (f):
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘formal education’ means the fol-
lowing:
‘‘(A) A secondary education.
‘‘(B) An undergraduate college education.
‘‘(C) A graduate education pursued on a
full-time basis at an institution of higher edu-
cation.
‘‘(D) Vocational education pursued on a
full-time basis at a postsecondary vocational in-
stitution.
‘‘(2) The term ‘institution of higher education’
has the meaning given that term in section 101 of
the Higher Education Act of 1965 (20 U.S.C.
1001).
‘‘(3) The term ‘postsecondary vocational insti-
tution’ has the meaning given that term in section
102(c) of the Higher Education Act of 1965 (20
U.S.C. 1002(c)).’’.
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TITLE VII—HEALTH CARE
MATTERS
Subtitle A—Health Care Program
Improvements
SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE
PREAUTHORIZATION OF INPATIENT MENTAL
HEALTH 
CARE 
FOR 
MEDICARE-ELIGIBLE
BENEFICIARIES.
(a) 
ELIMINATION
OF
REQUIREMENT.—Section
1079(i) of title 10, United States Code, is amended in
paragraph (3) by inserting ‘‘or in the case of a person
eligible for health care benefits under section 1086(d)(2)
of this title for whom payment for such services is made
under subsection 1086(d)(3) of this title’’ after ‘‘an emer-
gency’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect October 1, 2004.
SEC. 702. EXPANSION OF TRICARE PRIME REMOTE FOR
CERTAIN DEPENDENTS.
(a) EXPANSION OF ELIGIBILITY.—Section 1079(p) of
title 10, United States Code, is amended in paragraph
(1)—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by striking ‘‘referred to in subsection (a) of
a member of the uniformed services referred to in
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1074(c)(3) of this title who are residing with the
member’’ and inserting ‘‘described in subparagraph
(B)’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) A dependent referred to in subparagraph (A)
is—
‘‘(i) a dependent referred to in subsection (a) of
a member of the uniformed services referred to in
section 1074(c)(3) of this title, who is residing with
the member; or
‘‘(ii) a dependent referred to in subsection (a)
of a member of the uniformed services with a perma-
nent duty assignment for which the dependent is not
authorized to accompany the member and one of the
following circumstances exists:
‘‘(I) The dependent continues to reside at
the location of the former duty assignment of
the member (or residence in the case of a mem-
ber of a reserve component ordered to active
duty for a period of more than 30 days), and
that location is more than 50 miles, or approxi-
mately one hour of driving time, from the near-
est military medical treatment facility that can
adequately provide needed health care.
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‘‘(II) There is no reasonable expectation
the member will return to the location of the
former duty assignment, and the dependent
moves to a location that is more than 50 miles,
or approximately one hour of driving time, from
the nearest military medical treatment facility
that can adequately provide needed health
care.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect October 1, 2002.
SEC. 703. ENABLING DEPENDENTS OF CERTAIN MEMBERS
WHO DIED WHILE ON ACTIVE DUTY TO EN-
ROLL IN THE TRICARE DENTAL PROGRAM.
Section 1076a(k)(2) of title 10, United States Code,
is amended by inserting ‘‘(or, if not enrolled, if the mem-
ber discontinued participation under subsection (f))’’ after
‘‘subsection (a)’’.
SEC. 704. IMPROVEMENTS REGARDING THE DEPARTMENT
OF DEFENSE MEDICARE-ELIGIBLE RETIREE
HEALTH CARE FUND.
(a) SOURCE OF FUNDS FOR MONTHLY ACCRUAL
PAYMENTS INTO THE FUND.—Section 1116(c) of title 10,
United States Code, is amended to read as follows:
‘‘(c) Amounts paid into the Fund under subsection
(a) shall be paid from funds available for the pay of mem-
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bers of the participating uniformed services under the ju-
risdiction of the respective administering Secretaries.’’.
(b) MANDATORY PARTICIPATION
OF OTHER UNI-
FORMED SERVICES.—Section 1111(c) of such title is
amended—
(1) in the first sentence, by striking ‘‘may enter
into an agreement with any other administering Sec-
retary’’ and inserting ‘‘shall enter into an agreement
with each other administering Secretary’’; and
(2) in the second sentence, by striking ‘‘Any’’
and inserting ‘‘Each’’.
SEC. 705. CERTIFICATION OF INSTITUTIONAL AND NON-IN-
STITUTIONAL 
PROVIDERS 
UNDER 
THE
TRICARE PROGRAM.
(a) IN GENERAL.—Section 1079 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new subsection:
‘‘(q) For purposes of designating institutional and
non-institutional health care providers authorized to pro-
vide care under this section, the Secretary of Defense shall
prescribe regulations (in consultation with the other ad-
ministering Secretaries) that will, to the extent practicable
and subject to the limitations of subsection (a), so des-
ignate any provider authorized to provide care under title
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XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect October 1, 2003.
SEC. 706. TECHNICAL CORRECTION REGARDING TRANSI-
TIONAL HEALTH CARE.
Effective as of December 28, 2001, section
1145(a)(1) of title 10, United States Code, is amended
by inserting ‘‘(and the dependents of the member)’’ after
‘‘separated from active duty as described in paragraph
(2)’’. The amendment made by the preceding sentence
shall be deemed to have been enacted as part of section
736 of the National Defense Authorization Act for Fiscal
Year 2002 (Public Law 107–107).
Subtitle B—Reports
SEC. 711. COMPTROLLER GENERAL REPORT ON TRICARE
CLAIMS PROCESSING.
Not later than March 31, 2003, the Comptroller Gen-
eral shall submit to Congress an evaluation of the con-
tinuing impediments to a cost effective and provider- and
beneficiary-friendly system for claims processing under the
TRICARE program. The evaluation shall include a discus-
sion of the following:
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(1) The extent of progress implementing im-
provements in claims processing, particularly regard-
ing the application of best industry practices.
(2) The extent of progress in simplifying claims
processing procedures, including the elimination of,
or reduction in, the complexity of the Health Care
Service Record requirements.
(3) The suitability of a medicare-compatible
claims processing system with the data requirements
necessary to administer the TRICARE program and
related information systems.
(4) The extent to which the claims processing
system for the TRICARE program impedes provider
participation and beneficiary access.
(5) Recommendations for improving the claims
processing system that will reduce processing and
administration costs, create greater competition, and
improve fraud-prevention activities.
SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION
OF CARE UNDER THE TRICARE PROGRAM.
Not later than March 31, 2003, the Comptroller Gen-
eral shall submit to Congress an evaluation of the nature
of, reasons for, extent of, and trends regarding network
provider instability under the TRICARE program, and the
effectiveness of efforts by the Department of Defense and
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managed care support contractors to measure and miti-
gate such instability. The evaluation shall include a discus-
sion of the following:
(1) The adequacy of measurement tools of
TRICARE network instability and their use by the
Department of Defense and managed care support
contractors to assess network adequacy and stability.
(2) Recommendations for improvements needed
in measurement tools or their application.
(3) The relationship of reimbursement rates
and 
administration 
requirements 
(including
preauthorization requirements) to TRICARE net-
work instability.
(4) 
The 
extent 
of 
problems 
under 
the
TRICARE program and likely future trends with
and without intervention using existing authority.
(5) Use of existing authority by the Depart-
ment of Defense and TRICARE managed care sup-
port contractors to apply higher reimbursement
rates in specific geographic areas.
(6) Recommendations for specific fiscally pru-
dent measures that could mitigate negative trends or
improve provider and network stability.
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SEC. 713. REPEAL OF REPORT REQUIREMENT.
Notwithstanding subsection (f)(2) of section 712 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–179), the amendment made by
subsection (e) of such section shall not take effect and the
paragraph amended by such subsection is repealed.
Subtitle C—Department of Defense-
Department of Veterans Affairs
Health Resources Sharing
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ‘‘Department of De-
fense-Department of Veterans Affairs Health Resources
Sharing and Performance Improvement Act of 2002’’.
SEC. 722. FINDINGS AND SENSE OF CONGRESS CON-
CERNING STATUS OF HEALTH RESOURCES
SHARING BETWEEN THE DEPARTMENT OF
VETERANS AFFAIRS AND THE DEPARTMENT
OF DEFENSE.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Federal health care resources are scarce
and thus should be effectively and efficiently used.
(2) In 1982, Congress, in Public Law 97–174,
authorized the sharing of health resources between
Department of Defense medical treatment facilities