H. R. 2863—32
part in a State (as defined in section 381(d) of title 10, United 
States Code) which is not contiguous with another State and has 
an unemployment rate in excess of the national average rate of 
unemployment as determined by the Secretary of Labor, shall 
include a provision requiring the contractor to employ, for the 
purpose of performing that portion of the contract in such State 
that is not contiguous with another State, individuals who are 
residents of such State and who, in the case of any craft or trade, 
possess or would be able to acquire promptly the necessary skills: 
Provided, That the Secretary of Defense may waive the require-
ments of this section, on a case-by-case basis, in the interest of 
national security. 
SEC. 8058. None of the funds made available in this or any 
other Act may be used to pay the salary of any officer or employee 
of the Department of Defense who approves or implements the 
transfer of administrative responsibilities or budgetary resources 
of any program, project, or activity financed by this Act to the 
jurisdiction of another Federal agency not financed by this Act 
without the express authorization of Congress: Provided, That this 
limitation shall not apply to transfers of funds expressly provided 
for in Defense Appropriations Acts, or provisions of Acts providing 
supplemental appropriations for the Department of Defense. 
SEC. 8059. (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES 
AND SERVICES.—Notwithstanding any other provision of law, none 
of the funds available to the Department of Defense for the current 
fiscal year may be obligated or expended to transfer to another 
nation or an international organization any defense articles or 
services (other than intelligence services) for use in the activities 
described in subsection (b) unless the congressional defense commit-
tees, the Committee on International Relations of the House of 
Representatives, and the Committee on Foreign Relations of the 
Senate are notified 15 days in advance of such transfer. 
(b) COVERED ACTIVITIES.—This section applies to—
(1) any international peacekeeping or peace-enforcement 
operation under the authority of chapter VI or chapter VII 
of the United Nations Charter under the authority of a United 
Nations Security Council resolution; and 
(2) any other international peacekeeping, peace-enforce-
ment, or humanitarian assistance operation. 
(c) REQUIRED NOTICE.—A notice under subsection (a) shall 
include the following: 
(1) A description of the equipment, supplies, or services 
to be transferred. 
(2) A statement of the value of the equipment, supplies, 
or services to be transferred. 
(3) In the case of a proposed transfer of equipment or 
supplies—
(A) a statement of whether the inventory requirements 
of all elements of the Armed Forces (including the reserve 
components) for the type of equipment or supplies to be 
transferred have been met; and 
(B) a statement of whether the items proposed to be 
transferred will have to be replaced and, if so, how the 
President proposes to provide funds for such replacement. 
SEC. 8060. None of the funds available to the Department 
of Defense under this Act shall be obligated or expended to pay 
a contractor under a contract with the Department of Defense
H. R. 2863—33
for costs of any amount paid by the contractor to an employee 
when—
(1) such costs are for a bonus or otherwise in excess of 
the normal salary paid by the contractor to the employee; 
and 
(2) such bonus is part of restructuring costs associated 
with a business combination. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8061. During the current fiscal year, no more than 
$30,000,000 of appropriations made in this Act under the heading 
‘‘Operation and Maintenance, Defense-Wide’’ may be transferred 
to appropriations available for the pay of military personnel, to 
be merged with, and to be available for the same time period 
as the appropriations to which transferred, to be used in support 
of such personnel in connection with support and services for eligible 
organizations and activities outside the Department of Defense 
pursuant to section 2012 of title 10, United States Code. 
SEC. 8062. During the current fiscal year, in the case of an 
appropriation account of the Department of Defense for which the 
period of availability for obligation has expired or which has closed 
under the provisions of section 1552 of title 31, United States 
Code, and which has a negative unliquidated or unexpended bal-
ance, an obligation or an adjustment of an obligation may be 
charged to any current appropriation account for the same purpose 
as the expired or closed account if—
(1) the obligation would have been properly chargeable 
(except as to amount) to the expired or closed account before 
the end of the period of availability or closing of that account; 
(2) the obligation is not otherwise properly chargeable to 
any current appropriation account of the Department of 
Defense; and 
(3) in the case of an expired account, the obligation is 
not chargeable to a current appropriation of the Department 
of Defense under the provisions of section 1405(b)(8) of the 
National Defense Authorization Act for Fiscal Year 1991, Public 
Law 101–510, as amended (31 U.S.C. 1551 note): Provided, 
That in the case of an expired account, if subsequent review 
or investigation discloses that there was not in fact a negative 
unliquidated or unexpended balance in the account, any charge 
to a current account under the authority of this section shall 
be reversed and recorded against the expired account: Provided 
further, That the total amount charged to a current appropria-
tion under this section may not exceed an amount equal to 
1 percent of the total appropriation for that account. 
SEC. 8063. (a) Notwithstanding any other provision of law, 
the Chief of the National Guard Bureau may permit the use of 
equipment of the National Guard Distance Learning Project by 
any person or entity on a space-available, reimbursable basis. The 
Chief of the National Guard Bureau shall establish the amount 
of reimbursement for such use on a case-by-case basis. 
(b) Amounts collected under subsection (a) shall be credited 
to funds available for the National Guard Distance Learning Project 
and be available to defray the costs associated with the use of 
equipment of the project under that subsection. Such funds shall 
be available for such purposes without fiscal year limitation.
H. R. 2863—34
SEC. 8064. Using funds available by this Act or any other 
Act, the Secretary of the Air Force, pursuant to a determination 
under section 2690 of title 10, United States Code, may implement 
cost-effective agreements for required heating facility modernization 
in the Kaiserslautern Military Community in the Federal Republic 
of Germany: Provided, That in the City of Kaiserslautern such 
agreements will include the use of United States anthracite as 
the base load energy for municipal district heat to the United 
States Defense installations: Provided further, That at Landstuhl 
Army Regional Medical Center and Ramstein Air Base, furnished 
heat may be obtained from private, regional or municipal services, 
if provisions are included for the consideration of United States 
coal as an energy source. 
SEC. 8065. None of the funds appropriated in title IV of this 
Act may be used to procure end-items for delivery to military 
forces for operational training, operational use or inventory require-
ments: Provided, That this restriction does not apply to end-items 
used in development, prototyping, and test activities preceding and 
leading to acceptance for operational use: Provided further, That 
this restriction does not apply to programs funded within the 
National Intelligence Program: Provided further, That the Secretary 
of Defense may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of the 
House of Representatives and the Senate that it is in the national 
security interest to do so. 
SEC. 8066. Notwithstanding any other provision of law, funds 
available to the Department of Defense shall be made available 
to provide transportation of medical supplies and equipment, on 
a nonreimbursable basis, to American Samoa, and funds available 
to the Department of Defense shall be made available to provide 
transportation of medical supplies and equipment, on a non-
reimbursable basis, to the Indian Health Service when it is in 
conjunction with a civil-military project. 
SEC. 8067. None of the funds made available in this Act may 
be used to approve or license the sale of the F/A–22 advanced 
tactical fighter to any foreign government. 
SEC. 8068. (a) The Secretary of Defense may, on a case-by-
case basis, waive with respect to a foreign country each limitation 
on the procurement of defense items from foreign sources provided 
in law if the Secretary determines that the application of the 
limitation with respect to that country would invalidate cooperative 
programs entered into between the Department of Defense and 
the foreign country, or would invalidate reciprocal trade agreements 
for the procurement of defense items entered into under section 
2531 of title 10, United States Code, and the country does not 
discriminate against the same or similar defense items produced 
in the United States for that country. 
(b) Subsection (a) applies with respect to—
(1) contracts and subcontracts entered into on or after 
the date of the enactment of this Act; and 
(2) options for the procurement of items that are exercised 
after such date under contracts that are entered into before 
such date if the option prices are adjusted for any reason 
other than the application of a waiver granted under subsection 
(a). 
(c) Subsection (a) does not apply to a limitation regarding 
construction of public vessels, ball and roller bearings, food, and
H. R. 2863—35
clothing or textile materials as defined by section 11 (chapters 
50–65) of the Harmonized Tariff Schedule and products classified 
under headings 4010, 4202, 4203, 6401 through 6406, 6505, 7019, 
7218 through 7229, 7304.41 through 7304.49, 7306.40, 7502 through 
7508, 8105, 8108, 8109, 8211, 8215, and 9404. 
SEC. 8069. (a) PROHIBITION.—None of the funds made available 
by this Act may be used to support any training program involving 
a unit of the security forces of a foreign country if the Secretary 
of Defense has received credible information from the Department 
of State that the unit has committed a gross violation of human 
rights, unless all necessary corrective steps have been taken. 
(b) MONITORING.—The Secretary of Defense, in consultation 
with the Secretary of State, shall ensure that prior to a decision 
to conduct any training program referred to in subsection (a), full 
consideration is given to all credible information available to the 
Department of State relating to human rights violations by foreign 
security forces. 
(c) WAIVER.—The Secretary of Defense, after consultation with 
the Secretary of State, may waive the prohibition in subsection 
(a) if he determines that such waiver is required by extraordinary 
circumstances. 
(d) REPORT.—Not more than 15 days after the exercise of any 
waiver under subsection (c), the Secretary of Defense shall submit 
a report to the congressional defense committees describing the 
extraordinary circumstances, the purpose and duration of the 
training program, the United States forces and the foreign security 
forces involved in the training program, and the information 
relating to human rights violations that necessitates the waiver. 
SEC. 8070. None of the funds appropriated or made available 
in this Act to the Department of the Navy shall be used to develop, 
lease or procure the T-AKE class of ships unless the main propulsion 
diesel engines and propulsors are manufactured in the United 
States by a domestically operated entity: Provided, That the Sec-
retary of Defense may waive this restriction on a case-by-case 
basis by certifying in writing to the Committees on Appropriations 
of the House of Representatives and the Senate that adequate 
domestic supplies are not available to meet Department of Defense 
requirements on a timely basis and that such an acquisition must 
be made in order to acquire capability for national security purposes 
or there exists a significant cost or quality difference. 
SEC. 8071. None of the funds appropriated or otherwise made 
available by this or other Department of Defense Appropriations 
Acts may be obligated or expended for the purpose of performing 
repairs or maintenance to military family housing units of the 
Department of Defense, including areas in such military family 
housing units that may be used for the purpose of conducting 
official Department of Defense business. 
SEC. 8072. Notwithstanding any other provision of law, funds 
appropriated in this Act under the heading ‘‘Research, Development, 
Test and Evaluation, Defense-Wide’’ for any new start advanced 
concept technology demonstration project may only be obligated 
30 days after a report, including a description of the project, the 
planned acquisition and transition strategy and its estimated 
annual and total cost, has been provided in writing to the congres-
sional defense committees: Provided, That the Secretary of Defense 
may waive this restriction on a case-by-case basis by certifying