389
(d) ADDITIONAL TERMS
AND CONDITIONS.—The 
Secretary may require such additional terms and condi-
tions in connection with the conveyance under subsection 
(a) as the Secretary considers appropriate to protect the 
interests of the United States. 
SEC. 1013. CONVEYANCE, NAVY DRYDOCK, PORT ARTHUR, 
TEXAS. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of 
the Navy is authorized to convey, without consideration, 
to the port authority of the city of Port Arthur, Texas, 
the inactive medium auxiliary floating drydock designated 
as AFDM–2, currently administered through the National 
Defense Reserve Fleet. 
(b) CONDITION
OF CONVEYANCE.—The Secretary 
shall require as a condition of the conveyance under sub-
section (a) that the drydock remain at the facilities of the 
port authority named in subsection (a). 
(d) TRANSFERS AT NO COST TO UNITED STATES.—
The provisions of section 7306(c) of title 10, United 
States Code, shall apply to the conveyance under this sec-
tion. 
(c) ADDITIONAL TERMS
AND CONDITIONS.—The 
Secretary may require such additional terms and condi-
tions in connection with the conveyance under subsection
390
(a) as the Secretary considers appropriate to protect the 
interests of the United States. 
SEC. 1014. TRANSFER OF U.S.S. IOWA. 
(a) WAIVER
OF REQUIREMENT
FOR CONTINUED 
LISTING ON NAVAL VESSEL REGISTER.—The provisions 
of the following laws do not apply with respect to the 
U.S.S. IOWA (BB–61): 
(1) Section 1011 of the National Defense Au-
thorization Act for Fiscal Year 1996 (Public Law 
104–106; 110 Stat. 421). 
(2) Section 1011 of the Strom Thurmond Na-
tional Defense Authorization Act for Fiscal Year 
1999 (Public Law 105–261; 112 Stat. 2118). 
(b) TRANSFER.—The Secretary of the Navy shall—
(1) strike the U.S.S. IOWA (BB–61) from the 
Naval Vessel Register; and 
(2) subject to the submission of a donation ap-
plication for that vessel that is satisfactory to the 
Secretary, transfer that vessel to the Port of Stock-
ton, California, subject to subsections (b) and (c) of 
section 7306 of title 10, United States Code. 
SEC. 1015. TRANSFER OF EX-U.S.S. FORREST SHERMAN. 
(a) TRANSFER.—The Secretary of the Navy shall 
transfer the decommissioned destroyer ex-U.S.S. Forrest 
Sherman (DD–931) to the USS Forrest Sherman DD–
391
931 Foundation, Inc., a nonprofit organization under the 
laws of the State of Maryland, subject to the submission 
of a donation application for that vessel that is satisfac-
tory to the Secretary. 
(b) APPLICABLE LAW.—The transfer under this sec-
tion is subject to subsections (b) and (c) of section 7306 
of title 10, United States Code. Subsection (d) of that sec-
tion is hereby waived with respect to such transfer. 
(c) ADDITIONAL TERMS
AND CONDITIONS.—The 
Secretary may require such additional terms and condi-
tions in connection with the transfer under subsection (a) 
as the Secretary considers appropriate. 
(d) EXPIRATION
OF AUTHORITY.—The authority 
granted by subsection (a) shall expire at the end of the 
five-year period beginning on the date of the enactment 
of this Act. 
SEC. 1016. LIMITATION ON LEASING OF FOREIGN-BUILT 
VESSELS. 
(a) IN GENERAL.—
(1) CONTRACTS FOR LEASES FOR MORE THAN 
24 MONTHS.—Chapter 141 of title 10, United States 
Code, is amended by inserting after section 2401a 
the following new section:
392
‘‘§ 2401b. Limitation on lease of foreign-built vessels 
‘‘(a) LIMITATION.—The Secretary of a military de-
partment may not make a contract for a lease or charter 
of a vessel for a term of more than 24 months (including 
all options to renew or extend the contract) if the hull, 
or a component of the hull and superstructure of the ves-
sel, is constructed in a foreign shipyard. 
‘‘(b) PRESIDENTIAL WAIVER FOR NATIONAL SECU-
RITY INTEREST.—(1) The President may authorize excep-
tions to the limitation in subsection (a) when the President 
determines that it is in the national security interest of 
the United States to do so. 
‘‘(2) The President shall transmit notice to Congress 
of any such determination, and no contract may be made 
pursuant to the exception authorized until the end of the 
30-day period beginning on the date on which the notice 
of the determination is received by Congress.’’.(2) CLER-
ICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the 
item relating to section 2401a the following new item:
‘‘2401b. Limitation on lease of foreign-built vessels.’’.
(b) EFFECTIVE DATE.—Section 2401b of title 10, 
United States Code, as added by subsection (a), shall 
apply with respect to contracts entered into after the date 
of the enactment of this Act.
393
SEC. 1017. ESTABLISHMENT OF MEMORIAL TO U.S.S. OKLA-
HOMA. 
(a) IDENTIFICATION OF SITE FOR MEMORIAL.—The 
Secretary of the Navy, in consultation with the Secretary 
of the Interior, shall identify an appropriate site on Ford 
Island, Hawaii, for the location of a memorial to the 
U.S.S. Oklahoma, which was sunk during the attack on 
Pearl Harbor on December 7, 1941. 
(b) ESTABLISHMENT AND ADMINISTRATION.—After 
the site for the memorial is identified under subsection 
(a), the Secretary of the Interior shall establish and ad-
minister a memorial to the U.S.S. Oklahoma as part of 
the USS Arizona National Memorial, a unit of the Na-
tional Park System, in accordance with the laws and regu-
lations applicable to lands administered by the National 
Park Service. 
(c) MEMORIALIZATION PLAN.—Not later than one 
year after the date of the enactment of this Act, the Sec-
retary of the Navy shall submit to Congress a memori-
alization plan for the portion of Pearl Harbor where 
United States naval vessels were attacked on December 
7, 1941. The Secretary of the Navy shall prepare the plan 
in consultation with the Secretary of the Interior.
394
Subtitle C—Counter-Drug 
Activities 
SEC. 1021. EXTENSION OF DEPARTMENT OF DEFENSE AU-
THORITY TO SUPPORT COUNTER-DRUG AC-
TIVITIES. 
Section 1004(a) of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 10 
U.S.C. 374 note), as amended by section 1021 of the Na-
tional Defense Authorization Act for Fiscal Year 2002 
(Public Law 107–107; 115 Stat. 1212), is amended by 
striking ‘‘2006’’ and inserting ‘‘2011’’. 
SEC. 1022. RESUMPTION OF REPORTING REQUIREMENT RE-
GARDING DEPARTMENT OF DEFENSE EX-
PENDITURES 
TO 
SUPPORT 
FOREIGN 
COUNTER-DRUG ACTIVITIES. 
(a) ADDITIONAL REPORT REQUIRED.—Section 1022 
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–255), as amended by sec-
tion 1022 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1215), 
is further amended by striking ‘‘January 1, 2001, and 
April 15, 2002,’’ and inserting ‘‘April 15, 2006,’’. 
(b) ADDITIONAL INFORMATION REQUIRED.—Such 
section is further amended—