[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4546 Engrossed in House (EH)]

2d Session

H. R. 4546

_______________________________________________________________________

AN ACT

To authorize appropriations for fiscal year 2003 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
personnel strengths for such fiscal year for the Armed Forces, and for
other purposes.

107th CONGRESS
2d Session
H. R. 4546

_______________________________________________________________________

AN ACT

Be it enacted by the Senate and House of Representatives 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 Fiscal Year 2003''.
(b) Findings.--Congress makes the following findings:
(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 Arizona legislature for 18 years
and serving as President 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, Representative 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 committee. 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 congressional 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 outstanding service from active duty and
reserve military, veterans' service, military retiree, and
industry organizations.
(6) During his tenure as chairman of the Committee on Armed
Services of the House of Representatives, Representative Stump
has--
(A) overseen the largest sustained increase to
defense spending since the Reagan administration;
(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 defending
military access to critical training facilities such
Vieques, Puerto Rico, expanding the National Training
Center at Ft. Irwin, California, and working to restore
balance between environmental concerns and military
readiness requirements;
(E) reinvigorated efforts to defend America against
ballistic missiles by supporting an increase in fiscal
year 2002 of nearly 50 percent above the fiscal year
2001 level for missile defense programs; and
(F) honored America's war heroes by expanding
Arlington National Cemetery, establishing a site for
the Air Force Memorial, and assuring construction of
the World War II Memorial.
(7) In recognition of his long record of accomplishments in
enhancing the national security of the United States and his
legislative victories on behalf of active duty service members,
reservists, guardsmen, 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 divisions as
follows:
(1) Division A--Department of Defense Authorizations.
(2) Division B--Military Construction Authorizations.
(3) Division C--Department of Energy National Security
Authorizations and Other Authorizations.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical 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 munitions.
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
Program.
Sec. 215. Technology Transition Initiative.
Sec. 216. Defense Acquisition Challenge Program.
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 programs
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 activity.
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 munitions
constituents.
Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base
operating support 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 conversion 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 contracting 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 civilian
employees.
Sec. 342. Availability of quarters allowance for unaccompanied defense
department teacher required to reside on
overseas military installation.
Sec. 343. Provision of summer school programs for students who attend
defense 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
information 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
operation 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 acquisition 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

Sec. 501. Increase in number of Deputy Commandants of the Marine Corps.
Sec. 502. Extension of good-of-the-service waiver authority for
officers appointed 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
component 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 retirement 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.
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
Antarctica 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 consecutive overseas tours of
duty.
Subtitle D--Retired Pay and Survivors Benefits

Sec. 641. Phase-in of full concurrent receipt of military retired pay
and veterans disability compensation for
military retirees with disabilities 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 adjustment 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.
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.
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-
Eligible 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
Defense 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
program.
Sec. 802. Evaluation of training, knowledge, and resources regarding
negotiation 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 certain commercial items; report.
Sec. 805. Authority to make inflation adjustments to simplified
acquisition threshold.
Sec. 806. Improvement of personnel management policies and procedures
applicable to the civilian acquisition
workforce.
Sec. 807. Modification of scope of ball and roller bearings covered for
purposes of procurement limitation.
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 existing
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 property.
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
management 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 accompanied by electronic version.
Sec. 1014. Strategic force structure plan for nuclear weapons and
delivery systems.
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
penetrator weapon.
Sec. 1019. Study of short-term and long-term effects of nuclear-tipped
ballistic missile interceptor.
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 proposal.
Sec. 1023. Technical and clerical amendments.
Sec. 1024. War risk insurance for vessels in support of NATO-approved
operations.
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 periods of emergency.
Sec. 1030. Surface combatant industrial base.
Sec. 1031. Enhanced cooperation between United States and Russian
Federation to promote mutual security.
Sec. 1032. Transfer of funds to increase amounts for PAC-3 missile
procurement 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
employees 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
payments as a consequence of exposure to
asbestos.
Sec. 1104. Continuation of Federal Employee Health Benefits program
eligibility.
Sec. 1105. Triennial full-scale Federal wage system wage surveys.
Sec. 1106. Certification for Department of Defense professional
accounting positions.
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.
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
proliferation to Iran.
Sec. 1307. Prohibition against use of Cooperative Threat Reduction
funds outside 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.
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
conservation purposes.
Sec. 2813. National emergency exemption from screening and other
requirements of McKinney-Vento Homeless
Assistance Act for property used in support
of response activities.
Sec. 2814. Demonstration program on reduction in long-term facility
maintenance 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

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,
Minnesota.
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,
Nevada.
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, Marine 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 SECURITY 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
activities.
Sec. 3127. Funds available for all national security programs of the
Department of Energy.
Sec. 3128. Availability of funds.
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 security of the United States
nuclear stockpile.
Sec. 3142. Transfer to National Nuclear Security Administration of
Department of Defense's Cooperative Threat
Reduction program relating to elimination
of weapons grade plutonium in Russia.
Sec. 3143. Repeal of requirement for reports on obligation of funds for
programs 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
accelerate 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 defense
committees'' means--
(1) the Committee on Armed Services and the Committee on
Appropriations of the Senate; and
(2) the Committee on Armed Services and the Committee on
Appropriations of the House of Representatives.

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 appropriated for
fiscal year 2003 for procurement for the Navy as follows:
(1) For aircraft, $8,971,555,000.
(2) For weapons, including missiles and torpedoes,
$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 follows:
(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.

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 fiscal 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 procurement 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 Authorization 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 available
for shipbuilding programs of the Navy either in accordance with
subsection (b) or in accordance with subsection (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 procurement 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 overhaul.
(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 class submarine program has entered into a
binding agreement 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 components for Virginia class
submarines beginning in fiscal year 2003.
(e) Multiyear Procurement Authority.--(1) If the terms of an
agreement described in subsection (d) between 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 contract, 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 paragraph (1), a
certification under subsection (i)(1)(A) of section 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 conditions specified in subsection (a) of that section has been
satisfied with respect to that contract.
(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 damage, may not be acquired for the Military
Sealift Command or for other Navy purposes.
(b) Termination.--The prohibition in subsection (a) shall
not apply if the acquisition of a T-5 tanker is specifically
authorized in a defense authorization 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.

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 subsection (c); and
(2) a period of 30 days has expired after such
certification is submitted.
(c) Required Certification as to Progress Toward Successful
Operational Test and Evaluation.--A certification under subsection
(b)(1) is a certification by the Secretary of Defense that the C-130J
program 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 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 conditions specified 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 entered 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 AUTHORITY.

(a) Use of Procurement and Advance Procurement Funds.--Section
2306b(i) of title 10, United States Code, is amended by adding at the
end the following new paragraph:
``(4)(A) Unless otherwise authorized by law, the Secretary 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 Secretary 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 procurement 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 subsection (a), shall not apply with
respect to any multiyear contract authorized by law before the date of
the enactment of this Act.

SEC. 142. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT 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:
``Sec. 2520. Transfer of technology items and equipment in support of
homeland security
``The Secretary of Defense shall enter into an agreement with an
independent, nonprofit, technology-oriented entity that has
demonstrated the ability to facilitate the transfer of defense
technologies, developed by both the private and public sectors, to aid
Federal, State, and local first responders. Under the agreement the
entity shall develop 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 Interoperability;
``(2) develop technology items and equipment that meet the
standardization requirements established by the Board;
``(3) evaluate technology items and equipment that have
been identified using the standards developed by the Board and
other state-of-the-art technology items and equipment that may
benefit first responders;
``(4) identify and coordinate among the public and private
sectors research efforts applicable to national security and
homeland security;
``(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 responders;
``(7) expedite the advancement of high priority projects
from research through implementation of initial manufacturing;
and
``(8) establish an outreach program, in coordination with
the Board, with first responders to facilitate 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 subsection (a)) not later than January 15, 2003.
(c) Strategic Plan.--The entity described in section 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.
(d) Report Required.--Not later than March 15, 2003, the Secretary
of Defense shall submit to the Committees 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 Equipment 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 security.''.

SEC. 143. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS
AND MUNITIONS.

(a) Program Management.--The Secretary of Defense shall ensure that
the program for destruction of the United States stockpile of lethal
chemical agents and munitions 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.
(b) Requirement for Under Secretary of Defense (Comptroller) Annual
Certification.--Beginning 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 annual basis a certification
that the budget request for the chemical agents and munitions
destruction program has been submitted in accordance with the
requirements of applicable Federal laws.

SEC. 144. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

(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 Unmanned Aerial Vehicle
Systems.--The Secretary shall include in the report under subsection
(a) the following, shown for each system referred to in that
subsection:
(1) A description of the infrastructure that the Department
of Defense has (or is planning) for the system.
(2) A description of the operational requirements document
(ORD) for the system.
(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 Secretary 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 Department acquires unmanned aerial vehicle
systems.

SEC. 145. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION 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 Committees 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 following:
(1) An analysis of the impact of the Army Aviation
Modernization Plan on the ability of the Army National Guard to
conduct its aviation missions.
(2) The plan under that aviation modernization plan for the
transfer of aircraft from the active component of the Army to
the Army reserve components, 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 submitted, 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 report as submitted under
subsection (a).

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

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 authorized for the Director of Operational Test
and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

(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 Program, including basic research, applied
research, and advanced technology development projects.
(b) Basic Research, Applied Research, and Advanced Technology
Development Defined.--For 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 Requirements, Restrictions, and Limitations

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 Secretary of Defense
for Acquisition, Technology, and Logistics, 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 conference on
the bill S. 1438 of the One Hundred Seventh Congress (at page 535 of
House Report 107-333, submitted December 12, 2001).
(b) Limitation on Total Cost of Engineering and Manufacturing
Development.--The total amount obligated or expended for engineering
and manufacturing development under the RAH-66 Comanche aircraft
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 September 30, 2002.
(B) The amounts of increases or decreases in costs
attributable to compliance with changes in Federal, State, or
local laws enacted after September 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 committees 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
report on the results of the review.
(2) The report submitted on the program each year shall include the
following:
(A) The extent to which engineering and manufacturing
development under the program is meeting the goals established
for engineering and manufacturing 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 performance of RAH-66
aircraft.
(C) The plan for engineering and manufacturing 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 production) 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 manufacturing development.
(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
Department 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 section 211 of the Strom Thurmond National Defense
Authorization 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 LABORATORIES AND TEST AND EVALUATION
CENTERS OF THE DEPARTMENT OF DEFENSE.

Section 246 of the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 (Public Law 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 demonstrate improved
efficiency in the performance of the research, development,
test, and evaluation functions of the Department of Defense'';
(2) in subsection (a)(4), by striking ``for a period'' 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 preceding 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 whether, and to what extent, the authority to
carry out the pilot program should be extended.''.

SEC. 214. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING 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 paragraph (1) and all that follows through the end
of subparagraph (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 objectives,
milestones, priorities, and investment strategy 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 ``biennially'';
and
(2) by striking ``for a fiscal year'' and inserting ``for
each even-numbered fiscal year''.

SEC. 215. TECHNOLOGY TRANSITION INITIATIVE.

(a) Establishment and Conduct.--Chapter 139 of title 10, United
States Code, is amended by inserting after section 2359 the following
new section:
``Sec. 2359a. Technology Transition Initiative
``(a) Initiative Required.--The Secretary of Defense, acting
through the Under Secretary of Defense for Acquisition, Technology, and
Logistics, shall carry out an initiative, to be known as the Technology
Transition Initiative (hereinafter in this section referred to as the
`Initiative'), to facilitate the rapid transition of new technologies
from science and technology programs of the Department of Defense into
acquisition programs of the Department for the production of such
technologies.
``(b) Objectives.--The Initiative shall have the following
objectives:
``(1) To accelerate the introduction of new technologies
into appropriate acquisition programs.
``(2) To successfully demonstrate new technologies in
relevant environments.
``(3) To ensure that new technologies are sufficiently
mature for production.
``(c) Management of Initiative.--(1) The Initiative shall be
managed by a senior official in the Office of the Secretary of Defense
designated by the Secretary (hereinafter in this section referred to as
the `Manager'). In managing the Initiative, the Manager shall report
directly to the Under Secretary of Defense for Acquisition, Technology,
and Logistics.
``(2) The Secretary shall establish a board of directors
(hereinafter in this section referred to as the `Board'), composed of
the acquisition executive of each military department, the members of
the Joint Requirements Oversight Council, and the commander of the
Joint Forces Command. The Board shall assist the Manager in managing
the Initiative.
``(3) The Secretary shall establish, under the auspices of the
Under Secretary of Defense for Acquisition, Technology, 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 demonstrated in science
and technology programs of the Department.
``(2) To identify potential sponsors in the Department to
undertake the transition of such technologies into production.
``(3) To work with the science and technology community and
the acquisition community to develop memoranda of agreement,
joint funding agreements, and other cooperative arrangements to
provide for the transition of such technologies into
production.
``(4) Provide funding support for projects selected under
subsection (e).
``(e) Jointly Funded Projects.--(1) The acquisition executive of
each military department shall identify technology projects of that
military department to recommend 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 department
concerned, but not less than 50 percent of the total cost of the
project.
``(3) The acquisition executive of the military department
concerned shall manage each project selected under paragraph (2) that
is undertaken by the military department. Memoranda of agreement, joint
funding agreements, 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 separate program
element within amounts requested for research, 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 department under section 16(3) of the Office of Federal
Procurement 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:
``Sec. 2359b. Defense Acquisition Challenge Program
``(a) Program Required.--The Secretary of Defense shall carry out a
program to provide opportunities for the increased introduction of
innovative and cost-saving technology in acquisition programs of the
Department of Defense. The program, to be known as the Defense
Acquisition Challenge Program (hereinafter in this section referred to
as the `Challenge Program'), shall provide any person or activity
within or outside the Department of Defense with the opportunity to
propose alternatives, to be known as challenge proposals, at the
component, subsystem, or system level of an existing Department of
Defense acquisition program that would result in improvements in
performance, affordability, manufacturability, or operational
capability of that acquisition program.
``(b) Panel.--(1) In carrying out the Challenge Program, the
Secretary shall establish a panel of highly qualified 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 Logistics. The duty of the Panel shall be to carry out
evaluations 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 member has, in any capacity, participated in
or been affiliated with the acquisition program for which the challenge
proposal 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 challenge proposals to the Panel.
``(2) The Panel shall carry out an evaluation of each challenge
proposal submitted under paragraph (1) to determine 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, manufacturability,
or operational capability at the component, subsystem, or
system level of the applicable acquisition program.
``(C) Whether the challenge proposal could be implemented
rapidly in the applicable acquisition program.
``(3) If the Panel determines that a challenge proposal satisfies
each of the criteria specified in paragraph (2), the person or activity
submitting that challenge proposal 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 provided in subsection (c)(3), the office
carrying out the applicable acquisition program, and the prime system
contractor 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 Secretary, each challenge proposal
determined under a full review and evaluation to satisfy each of the
criteria specified in subsection (c)(2) shall be considered by the
prime system contractor for incorporation into the applicable
acquisition 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 contractor carrying out such program.
``(f) Access to Technical Resources.--The Secretary shall ensure
that the Panel (in carrying out evaluations 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
authority to call upon the technical resources of the laboratories,
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.
``(h) Report.--The Secretary shall submit to Congress, 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 submitted, 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 research, development,
test, and evaluation for fiscal year 2003, $25,000,000 shall be
available in program element 0603826D8Z for the Defense Acquisition
Challenge Program 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.

Subtitle C--Ballistic Missile Defense

SEC. 231. LIMITATION ON OBLIGATION OF FUNDS FOR PROCUREMENT OF PATRIOT
(PAC-3) MISSILES PENDING SUBMISSION OF REQUIRED
CERTIFICATION.

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 program until the Secretary of Defense has
submitted to the congressional defense committees the following:
(1) The criteria for the transfer of responsibility for a
missile defense program from the Director 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 Advanced Capability
(PAC-3) missile program from the Director to the Secretary of
the Army required by section 224(c) of such title.

SEC. 232. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR RESEARCH,
DEVELOPMENT, TEST, AND EVALUATION RELATED TO SYSTEM
IMPROVEMENTS 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 Organization'' each place it
appears and inserting ``Missile Defense Agency''.
(2)(A) The heading of section 203 is amended to read as
follows:
``Sec. 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 ``Ballistic 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:

``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 Organization'' each place it
appears and inserting ``Missile Defense Agency'':
(1) Section 233 of the National Defense Authorization Act
for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 223 note).
(2) Section 234 of the National Defense Authorization 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 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.
(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 programs,
$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:
(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 fiscal 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 DURING 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 taking of a
migratory bird by a member of the Armed Forces during a military
readiness activity authorized by the Secretary of Defense or the
Secretary of the military department concerned.
``(2)(A) In this subsection, the term `military readiness activity'
includes--
``(i) all training and operations of the Armed Forces that
relate to combat; and
``(ii) the adequate and realistic testing of military
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 operating
support functions, such as administrative offices, military
exchanges, commissaries, water treatment facilities, storage
facilities, schools, housing, motor pools, laundries, morale,
welfare, and recreation 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 for its use, that are subject to an
integrated natural resources management plan prepared under section 101
of the Sikes Act (16 U.S.C. 670a), if the Secretary determines that
such plan addresses special management considerations or protection (as
those terms are used in section 3(5)(A)(i)).
``(ii) Nothing in this subparagraph affects the requirement to
consult under section 7(a)(2) with respect to an agency action (as that
term is defined in that section).
``(iii) Nothing in this subparagraph affects the obligation 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 endangered species and threatened species.''.
(b) Consideration of Effects of Designation of Critical Habitat.--
Section 4(b)(2) of the Endangered Species Act of 1973 (16 U.S.C.
1533(b)(2)) is amended by inserting ``the impact on national
security,'' after ``the economic impact,''.

SEC. 313. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING ISSUES
REGARDING UNEXPLODED ORDNANCE, DISCARDED MILITARY
MUNITIONS, AND MUNITIONS CONSTITUENTS.

Section 2701 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(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 characterization, remediation, and management of
explosive and related risks with respect to unexploded ordnance,
discarded 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 authority to the
Secretary of a military department, who may delegate the authority to
the Under Secretary of that military department. The authority may not
be further delegated.
``(3) The program manager may establish an independent advisory and
review panel that may include representatives of the National Academy
of Sciences, nongovernmental organizations with expertise regarding
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 report annually to Congress on progress made by the
Department of Defense to address unexploded ordnance, discarded
military munitions, or munitions constituents at defense sites and make
such recommendations as the panel considered appropriate.''.

Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

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.''.

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 `national emergency'
means a national emergency declared by the President or
Congress.''.
(b) Clerical Amendments.--(1) The heading of such section is
amended to read as follows:
``Sec. 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
National Guard serving in federally
declared disaster or national emergency.''.

SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, AND
RECREATION PROGRAMS.

(a) In General.--Chapter 147 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 2494. Uniform funding and management of morale, welfare, and
recreation programs
``(a) Authority for Uniform Funding and Management.--Under
regulations prescribed by the Secretary of Defense, funds appropriated
to the Department of Defense and available for morale, welfare, and
recreation programs may be treated as nonappropriated funds and
expended in accordance with laws applicable to the expenditures of
nonappropriated funds. When made available for morale, welfare, and
recreation programs under such regulations, appropriated funds shall be
considered to be nonappropriated funds for all purposes and shall
remain available until expended.
``(b) Conditions on Availability.--Funds appropriated to the
Department of Defense may be made available 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 authorized to receive.
``(c) Conversion of Employment Positions.--(1) The Secretary of
Defense may identify positions of employees in morale, welfare, and
recreation programs within the Department of Defense who are paid with
appropriated funds whose status may be converted from the status of an
employee paid with appropriated funds to the status of an employee of a
nonappropriated fund instrumentality.
``(2) The status of an employee in a position identified 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 provide 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 employee. The conversion shall not entitle an
employee to severance 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.
``(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 PERFORMANCE.

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
examinations required by subsection (b)(3).
``(2) The report shall also contain the following:
``(A) The date when the analysis of the function was
commenced.
``(B) The Secretary's certification that the Government
calculation of the cost of performance of the function by
Department of Defense civilian employees is based on an
estimate of the most cost effective manner for performance of
the function by Department of Defense civilian employees.
``(C) The number of Department of Defense civilian
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
performance 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 factors
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-time
equivalent positions, or maximum number of employees.
``(E) A statement of the potential economic effect of
implementing the decision regarding changing to performance of
the function by the private sector or retaining performance in
the most efficient organization of the function on each
affected local community, 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 performance 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 entire
analysis is available for examination.
``(3)(A) If a decision is made to change the commercial 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 paragraph (1).
``(B) Notwithstanding subparagraph (A), 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, 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 SECURITY-GUARD FUNCTIONS.

Section 2465 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(c) The Secretary of Defense or the Secretary of a military
department may waive the prohibition under subsection (a) regarding
contracting for the performance of security-guard functions at a
military installation or facility under the jurisdiction of the
Secretary if such functions--
``(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 MAINTENANCE
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 INSTALLATIONS.

(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 necessary to maintain and repair
the weapon systems'' and inserting ``those logistics capabilities
(including acquisition logistics, supply management, system
engineering, maintenance, and modification management) that are
necessary 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 authorized 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 providing
educational agencies assistance to local educational agencies.
(b) Notification.--Not later than June 30, 2003, the Secretary of
Defense shall notify each local educational agency that is eligible for
educational agencies assistance for fiscal year 2003 of--
(1) that agency's eligibility for the assistance; and
(2) the amount of the assistance for which that agency is
eligible.
(c) Disbursement of Funds.--The Secretary of Defense shall disburse
funds made available under subsection (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 OVERSEAS
MILITARY INSTALLATION.

(a) Authority to Provide Allowance.--Subsection (b) of section 7 of
the Defense Department Overseas Teachers Pay and Personnel Practices
Act (20 U.S.C. 905) is amended by adding at the end the following new
sentence: ``If the teacher is unaccompanied by dependents and is
required to reside on a United States military installation in an
overseas area, the teacher may receive a quarters allowance to reside
in excess family housing at the installation notwithstanding the
availability single room housing at the installation.''.
(b) Technical Correction to Reflect Codification.--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 DEPENDENTS' EDUCATION SYSTEM.

Section 1402(d) of the Defense Dependents' Education 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 education 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 tuition to enroll in a school of the defense dependents'
education system shall also be charged a fee, at a rate established 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 following 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 NATIONAL SECURITY AND
INFORMATION TECHNOLOGY CAPITAL ASSETS.

(a) Requirement To Submit Information.--Not later than the date
that the President submits the budget of the United States Government
to Congress each year, the Secretary of Defense shall submit to
Congress a description of, and relevant budget information on, each
information technology and national security capital asset of the
Department of Defense that--
(1) has an estimated life cycle cost (as computed 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 description submitted under
subsection (a) shall include, with respect 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, requested for that
fiscal year;
(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 provisions enacted
in the Government Performance Results 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 technology 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 security system of
the Department of Defense that has a cost for the fiscal year in excess
of $10,000,000, the Secretary 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.
(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 Budget 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 CERTAIN COMMERCIAL OFF-
THE-SHELF INFORMATION TECHNOLOGY PRODUCTS.

The Secretary of Defense shall ensure that--
(1) the Department of Defense implements the policy
established by the Committee on National Security Systems
(formerly the National Security Telecommunications and
Information Systems Security Committee) that limits the
acquisition by the Federal Government of all commercial off-
the-shelf information assurance and information assurance-
enabled information technology products to those products that
have been evaluated and validated in accordance with
appropriate criteria, schemes, or programs; and
(2) implementation of such policy includes uniform
enforcement procedures.

SEC. 354. INSTALLATION AND CONNECTION POLICY AND PROCEDURES REGARDING
DEFENSE SWITCH NETWORK.

(a) Establishment of Policy and Procedures.--Not later than 180
days after the date of the enactment of this Act, the Secretary of
Defense shall establish clear and uniform policy and procedures,
applicable to the military departments and Defense Agencies, regarding
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 following:
(1) Clear interoperability and compatibility requirements
for certifying, installing, and connecting telecom switches to
the Defense Switch Network.
(2) Current, complete, and enforceable testing, validation,
and certification procedures needed to ensure the
interoperability and compatibility requirements are satisfied.
(c) Exceptions.--(1) The Secretary of Defense may specify certain
circumstances in which--
(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 Command, 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 certified 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.

Subtitle G--Other Matters

SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION 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 congressional defense committees''.
(b) Congressional Defense Committees Defined.--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 committees' means the
Committee on Armed Services and the Committee on Appropriations
of the Senate and the Committee on Armed Services and the
Committee on Appropriations of the House of Representatives.''.

SEC. 362. MINIMUM DEDUCTION FROM PAY OF CERTAIN MEMBERS OF THE ARMED
FORCES TO SUPPORT 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 second
sentence and inserting ``The additional amount''.

SEC. 363. CONDITION ON CONVERSION OF DEFENSE SECURITY SERVICE TO A
WORKING CAPITAL FUNDED ENTITY.

The Secretary of Defense may not convert the Defense Security
Service to a working capital funded entity of the Department of Defense
unless the Secretary submits, 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 Defense 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 National 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 inserting ``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 sentence 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 program since its implementation, including the
Secretary's views regarding the benefits of the program for
Army manufacturing arsenals and the Department of the Army and
the success of the program in achieving the purposes specified
in subsection (b).''.

SEC. 365. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL STATUS OF RESOURCES
AND TRAINING SYSTEM, AND TRAINING RANGE INVENTORY.

(a) Plan Required.--(1) The Secretary of Defense shall develop a
comprehensive plan for using existing authorities available to the
Secretary of Defense and the Secretaries 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 implementing planned
actions.
(C) Designation of an office in the Office of the Secretary
of Defense and each of the military departments that will have
lead responsibility for overseeing 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 report to Congress describing the progress
made in implementing the plan and any additional encroachment problems.
(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
Department of Defense to improve the Global Status of Resources 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 encroachment and other
individual factors are making military 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 capabilities
available at each training range;
(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 training range.
(d) GAO Evaluation.--(1) With respect to each report 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 NUTRITION 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 Elementary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2)) is amended by adding at the end the following:
``(H) Eligibility for heavily impacted local
educational agencies affected by privatization of
military housing.--
``(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 requirements under subparagraph (B)
or (C), as the case may be, for the period
during which the housing units are undergoing
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 subparagraph (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.
``(iii) Conversion of military housing
units to private housing described.--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 Allowances for Housing for
Determination of Eligibility for Free and Reduced Price Meals.--Section
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 beginning 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 subchapter IV of chapter 169 of
title 10, United States Code, or any other related provision of law,
shall not be considered to be income for purposes of determining the
eligibility 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 MINIMUM 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''.
(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 SECRETARIES 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 military 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 Secretary or,
in the case of the Secretary of the Navy, for any of the armed forces
under the jurisdiction of that Secretary. 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 (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 Active Duty Officers in Grades Above Major
General and Rear Admiral.--Effective on the date specified in
subsection (e), section 525(b) of title 10, United States Code, is
amended by adding at the end the following 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 lieutenant general or vice admiral,
is in addition to the number 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 Assistant to the
Secretary of Defense for purposes of this paragraph.''.
(b) Increase in Number of Lieutenant Generals 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''.
(c) Grade of Chief of Veterinary Corps of the Army.--(1) Effective
on the date specified in subsection (e), chapter 307 of such title is
amended by adding at the end the following new section:
``Sec. 3084. Chief of Veterinary Corps: grade
``The Chief of the Veterinary Corps of the Army serves in the grade
of brigadier general. An officer appointed 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 General and Flag Officer
Authorizations.--(1) The Secretary of Defense shall submit to Congress
a report containing any recommendations of the Secretary (together with
the rationale of the Secretary for the recommendations) 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, United States Code, and
the reserve component offices 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 subsection (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 ``September 30, 2003'' and inserting ``December 31, 2004''.
(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 component shall be
proportionately reduced by--
(1) the total authorized strength of units organized to
serve as units of the Selected Reserve of such component which
are on active duty (other than for training) at the end of the
fiscal year; and
(2) the total number of individual members not in units
organized to serve as units of the Selected Reserve of such
component who are on active duty (other than for training or
for unsatisfactory participation in training) without their
consent at the end of the fiscal year.
Whenever such units or such individual members are released 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
proportionately 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 number of Reserves to be serving on full-time
active duty or full-time duty, in the case of members of the National
Guard, for the purpose of organizing, administering, recruiting,
instructing, or training the reserve components:
(1) The Army National Guard of the United States, 24,562.
(2) The Army Reserve, 14,070.
(3) The Naval Reserve, 14,572.
(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 reserve components of the Army and
the Air Force (notwithstanding 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 STATUS TECHNICIANS.

(a) Army.--The number of non-dual status technicians 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 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''.

Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY 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 authorization of appropriations (definite or indefinite) for
such purpose 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
POSITION.

(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
striking ``October 1, 2003'' and inserting ``December 31, 2004''.
(b) Report on Future Implementation of Requirement.--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
extension of the waiver authority under the sections amended 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 ACCOUNTING 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 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 Department of Defense
plans for improving management and accounting for personnel
strengths in the National 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
excess of the established norms.
(2) The Comptroller General's assessment of the
effectiveness of the process for Federal recognition of senior
National Guard officers and recommendations 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 Inspector General investigations or other
investigations 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
National Guard who retaliate against such members or employees.
(b) Secretary of Defense Report on Different 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
requiring 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.--Section 326 of title 32,
United States Code, is amended by adding at the end the following new
sentence: ``Punishments 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:
``Sec. 327. Courts-martial of National Guard not in Federal service:
convening authority
``(a) In the National Guard not in Federal service, general,
special, and summary courts-martial may be convened as provided by the
laws of the States and Territories, 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 garrison,
fort, post, camp, air base, auxiliary air base, or
other place where troops are on duty; or
``(B) by the commanding officer of a division,
brigade, regiment, wing, group, detached battalion,
separate squadron, or other detached command; and
``(3) summary courts-martial may be convened--
``(A) by the commanding officer of a garrison,
fort, post, camp, air base, auxiliary air base, or
other place where troops are on duty; or
``(B) by the commanding officer of a division,
brigade, regiment, wing, group, detached battalion,
detached squadron, detached company, 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 authority.''.
(c) Repeal of Superseded and Obsolete Provisions.--
(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.
(d) Preparation of Model State Code of Military 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 report, issued in 1998, by the panel known as the Department 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 Department of Defense, the Secretary of the Army, the
Secretary of the Air Force, and the Chief of the National Guard Bureau.
(3) If the amounts available to the Chief of the National Guard
Bureau are not adequate for the costs required 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 attorneys
and other staff, allowances, and travel expenses), the 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 enactment of this
Act, the Secretary 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 implementation of this subsection. The
report shall include proposals in final form of both the model State
code and the model State manual required by paragraph (1) and shall set
forth the efforts being made to present those proposals to the States
for their consideration 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 NATIONAL GUARD YOUTH
CHALLENGE PROGRAM.

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 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 ASSIGNMENTS 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 subsection:
``(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.''.

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.

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 promotion 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 section 14101(a) of this title if--
``(A) as of the date of the convening of the promotion
board, the officer has been in an inactive status for less than
one year; and
``(B) immediately before the date of the officer'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.
``(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 inactive 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 officer's most
recent transfer to an active status, the officer 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).''.

SEC. 523. RETENTION OF PROMOTION ELIGIBILITY FOR RESERVE COMPONENT
GENERAL AND FLAG OFFICERS TRANSFERRED TO AN INACTIVE
STATUS.

Section 14317 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(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
otherwise qualified, may be promoted to the higher grade after
returning to an active status.''.

SEC. 524. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF
MANDATORY RETIREMENT OR SEPARATION FOR RESERVE OFFICERS.

(a) Deferment of Retirement or Separation for Medical Reasons.--
Chapter 1407 of title 10, United States Code, is amended by adding at
the end the following new section:
``Sec. 14519. Deferment of retirement or separation for medical reasons
``(a) If the Secretary of the military department concerned
determines that the evaluation of the physical condition of a Reserve
officer and determination of the officer's entitlement to retirement or
separation for physical disability require hospitalization or medical
observation and that such hospitalization or medical observation cannot
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, retired, 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 extend for more than 30 days
after completion of the evaluation 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.''.

Subtitle D--Education and Training

SEC. 531. AUTHORITY FOR PHASED INCREASE TO 4,400 IN AUTHORIZED
STRENGTHS FOR THE SERVICE ACADEMIES.

(a) Military Academy.--Section 4342 of title 10, United States
Code, is amended--
(1) in subsection (a), by inserting before the period at
the end of the first sentence the following: ``or such higher
number as may be prescribed by the Secretary of the Army under
subsection (j)''; and
(2) by adding at the end the following new subsection:
``(j)(1) Beginning with the 2003-2004 academic year, the Secretary
of the Army may prescribe annual increases in the cadet strength limit
in effect under subsection (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 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 increase in the cadet strength limit and the new
cadet strength limit, as so increased, and the amount of the increase
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 agreement
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 period at
the end of the first sentence the following: ``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 subsection:
``(h)(1) Beginning with the 2003-2004 academic year, the Secretary
of the Navy may prescribe annual increases 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 midshipmen 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 increase, 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, 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 academic year in the total number
of midshipmen enrolled in the Navy Senior Reserve Officers' Training
Corps program 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 period 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 subsection:
``(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 subsection (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 increase in the cadet strength limit and the new
cadet strength limit, as so increased, and the amount of the increase
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 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 subsection:
``(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 increase, 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 appropriate
technical, scientific, or engineering field of study.''.
(e) Repeal of Limit on Number of ROTC Scholarships.--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 DELAYED 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 enlisted 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 initial period of active duty for training under that section,
the amendment made by subsection (a) may be applied to that person, but
only with the agreement of that person and the Secretary concerned.

SEC. 533. PREPARATION FOR, PARTICIPATION IN, AND CONDUCT OF ATHLETIC
COMPETITIONS BY THE NATIONAL GUARD AND MEMBERS OF THE
NATIONAL 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 participating in the
competition; and
``(C) the conduct of or participation in the competition
will not result in a significant increase in National Guard
costs.
``(2) Facilities and equipment of the National Guard, including
military property and vehicles described in section 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 subsection (a) of this section, the
following new subsections:
``(d) Availability of Funds.--(1) Subject to paragraph (2) and such
limitations as may be enacted in appropriations 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 Defined.--In this section,
the term `qualifying athletic competition' means a competition in
athletic events that require 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 further amended--
(1) in subsection (a), by inserting ``Authorized
Activities.--'' after ``(a)''; and
(2) in subsection (b), by inserting ``Authorized
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 inserting a
period; and
(C) by striking paragraph (3).
(2) The heading of such section is amended to read as follows:
``Sec. 504. National Guard schools; small arms competitions; athletic
competitions''.
(3) The item relating to section 504 in the table of sections at
the beginning of chapter 5 of title 10, United States Code, is amended
to read as follows:

``504. National Guard schools; small arms competitions; athletic
competitions.''.

Subtitle E--Decorations and Awards

SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS
TO CERTAIN PERSONS.

(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 submitted 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
warranted 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 department
concerned) submitted to the Committee on Armed Services of the House of
Representatives and the Committee 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 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 OPERATION FREQUENT WIND TO VIETNAM SERVICE
MEDAL.

(a) In General.--The Secretary of the military department concerned
shall, upon the application of an individual who is an eligible Vietnam
evacuation veteran, award that individual the Vietnam Service Medal,
notwithstanding 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 operations
designated as Operation Frequent Wind arising from the evacuation of
Vietnam on April 29 and 30, 1975.

Subtitle F--Administrative Matters

SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER 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 personnel levels, and
sufficient funding, to enable the office to fully perform its complete
range of missions. The Secretary shall ensure that Department of
Defense programming, 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 number is expressly required by law.
``(C) For any fiscal year, the level of funding allocated to the
office within the Department of Defense may not be below the level
requested for such purposes in the 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 PERSONNEL OF AGENCIES
RESPONSIBLE FOR REVIEW AND CORRECTION OF MILITARY
RECORDS.

(a) In General.--Chapter 79 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 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 civilian 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;
``(B) provides the Secretary's rationale for that
reduction; and
``(C) specifies the number of such personnel 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 respect to a
service review agency under this section, the number of
military and civilian personnel assigned 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;
``(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 PERSONS PARTICIPATING IN
MILITARY FUNERAL HONORS DETAILS.

Section 1491(d) of title 10, United States Code, is amended--
(1) by striking ``To provide a'' after ``Support.--'' and
inserting ``(1) To support a'';
(2) by redesignating paragraph (1) as subparagraph (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 employee of the United States),
either transportation (or reimbursement for transportation) and
expenses or the daily stipend prescribed under paragraph
(2).'';
(3) by redesignating paragraph (2) as subparagraph (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 training'';
(4) by redesignating paragraph (3) as subparagraph (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 annually a flat rate
daily stipend for purposes of paragraph (1)(A). Such stipend shall be
set at a rate so as to encompass typical costs for transportation and
other miscellaneous 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.
``(3) A stipend paid under this subsection to a member 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 compensation to which the member may be entitled.''.

SEC. 554. AUTHORITY FOR USE OF VOLUNTEERS AS PROCTORS 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 paragraph:
``(6) Voluntary services as a proctor for administration to
secondary school students of the test known as the `Armed
Services Vocational Aptitude Battery'.''.

SEC. 555. ANNUAL REPORT ON STATUS OF FEMALE MEMBERS OF THE ARMED
FORCES.

(a) In General.--Chapter 23 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 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 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 following 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.''.

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 following new section:
``Sec. 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 another member of the same armed force who
requires additional 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 Required.--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
recipient.
``(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
``(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.--Regulations prescribed
under this section by the Secretaries of the military department shall
be as uniform as practicable 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 prescribed not later than six months after the
date of the enactment of this Act.

SEC. 562. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT PROGRAM.

(a) Eligible Persons.--Subsection (d) of section 2173 of title 10,
United States Code, is amended by striking ``Participants'' and all
that follows through ``and students'' and inserting ``Students''.
(b) Loan Repayment Amounts.--Subsection (e)(2) of such section is
amended by striking the last sentence.

SEC. 563. EXPANSION OF OVERSEAS TOUR EXTENSION BENEFITS.

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 NONFOREIGN DUTY STATION OUTSIDE CONTINENTAL
UNITED STATES.

(a) Storage Costs Authorized.--Subsection (b) of section 2634 of
title 10, United States Code, is amended 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 Secretary concerned. In the case of a vehicle storage qualifying
order that is to make a change of permanent station, such storage is in
lieu of transportation authorized by subsection (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 described
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, regulations, or other restrictions imposed
by that area or by the United States either--
``(i) preclude entry of a motor vehicle described
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 transferred or
assigned in connection with a contingency operation to duty at
a location other than the permanent 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 section is amended by adding at the
end the following new paragraph:
``(3) The term `nonforeign area outside the continental
United States' means any of the following: the States of Alaska
and Hawaii, the Commonwealths 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 permanent 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 Justice), is amended by inserting
after section 852 (article 52) the following new section:
``Sec. 852a. Art. 52a. Right of accused to request sentencing 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 members, 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
sentencing 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 military judge rather than the members.
``(b) This section shall not apply with respect to an offense for
which the death penalty may be adjudged unless the case has been
previously referred to trial as a noncapital case.''.
(2) The table of sections at the beginning of subchapter 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.''.
(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
ADVOCATES.

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 advocates
into a single course to be conducted at a single location. The report
shall include--
(1) an assessment of the advantages and disadvantages 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.

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 required 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 follows:

COMMISSIONED OFFICERS\1\
Years of service computed under section 205 of title 37, United States
Code
------------------------------------------------------------------------
Pay Grade 2 or less Over 2 Over 3 Over 4 Over 6
------------------------------------------------------------------------
O-10\2\......... $0.00 $0.00 $0.00 $0.00 $0.00
O-9............. 0.00 0.00 0.00 0.00 0.00
O-8............. 7,474.50 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 $12,077.7 $12,137.1 $12,389.4 $12,829.20
0 0 0
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.

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 warrant officers may not exceed the rate
of pay for level V of the Executive Schedule.

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 enlisted 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, regardless of cumulative years of service computed
under section 205 of title 37, United States Code.
\3\In the case of members in pay grade E-1 who have served less than 4
months on active duty, the rate of basic pay is $1,064.70.

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 paragraph:
``(4) In the case of a member who is assigned to duty outside of
the United States, the location or the circumstances 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
assignment, 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 entitlement 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 amended by striking ``December 31, 2002''
and inserting ``December 31, 2003''.
(b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such
title is amended by striking ``December 31, 2002'' and inserting
``December 31, 2003''.
(c) Special Pay for Enlisted Members Assigned to Certain High
Priority Units.--Section 308d(c) of such title is amended by striking
``December 31, 2002'' and inserting ``December 31, 2003''.
(d) Selected Reserve Affiliation Bonus.--Section 308e(e) of such
title is amended by striking ``December 31, 2002'' and inserting
``December 31, 2003''.
(e) Ready Reserve Enlistment and Reenlistment Bonus.--Section
308h(g) of such title is amended by striking ``December 31, 2002'' and
inserting ``December 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 Program.--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 Certain Health Professionals
Who Serve in the Selected Reserve.--Section 16302(d) of such title is
amended by striking ``January 1, 2003'' and inserting ``January 1,
2004''.
(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 Anesthetists.--Section
302e(a)(1) of such title is amended by striking ``December 31, 2002''
and inserting ``December 31, 2003''.
(e) Special Pay for Selected Reserve Health Professionals in
Critically Short Wartime Specialties.--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 OFFICERS.

(a) Special Pay for Nuclear-Qualified Officers Extending Period of
Active Service.--Section 312(e) of title 37, United States Code, is
amended by striking ``December 31, 2002'' and inserting ``December 31,
2003''.
(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.--Section 301b(a) of title 37,
United States Code, is amended by striking ``December 31, 2002'' and
inserting ``December 31, 2003''.
(b) Reenlistment Bonus for Active Members.--Section 308(g) of such
title is amended by striking ``December 31, 2002'' and inserting
``December 31, 2003''.
(c) Enlistment Bonus for Active Members.--Section 309(e) of such
title is amended by striking ``December 31, 2002'' and inserting
``December 31, 2003''.
(d) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31,
2002'' and inserting ``December 31, 2003''.
(e) Accession Bonus for New Officers in Critical 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 subsection (c); and
(2) by inserting after subsection (a), the following 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 prescribed under this
subsection.
``(2) Paragraph (1) applies with respect to duty performed on the
ground in Antarctica or on the Arctic icepack.''.

SEC. 616. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE 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 PROVIDERS 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 Limitation.--Subsection (e) of
such section is amended--
(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 PERIOD FOR MEMBERS
PERFORMING CONSECUTIVE 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; Limitations.--(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 consecutive
tour at the same duty station or the completion of 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 operation, 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 inserting ``(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.

Subtitle D--Retired Pay and Survivors Benefits

SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF MILITARY RETIRED PAY
AND VETERANS DISABILITY COMPENSATION FOR MILITARY
RETIREES 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:
``Sec. 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
``(a) Payment of Both Retired Pay and Compensation.--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).
``(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 creditable 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:
``(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 retired pay in excess of the current
baseline offset plus the following:
``(A) For a month for which the retiree receives
veterans' disability compensation for a qualifying
service-connected disability rated as total, $750.
``(B) For a month for which the retiree receives
veterans' disability compensation for a qualifying
service-connected disability rated as 90 percent, $500.
``(C) For a month for which the retiree receives
veterans' disability compensation for a qualifying
service-connected disability rated as 80 percent, $250.
``(D) For a month for which the retiree receives
veterans' disability compensation for a qualifying
service-connected disability rated as 70 percent, $250.
``(E) For a month for which the retiree receives
veterans' disability compensation for a qualifying
service-connected disability rated as 60 percent, $125.
``(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 paragraph (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 paragraph (3) for
that qualified retiree; and
``(B) 64 percent of the difference between (i) the
current baseline offset, and (ii) the amount determined
under paragraph (3) for that qualified retiree.
``(d) Definitions.--In this section:
``(1) Retired pay.--The term `retired pay' includes
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 section 101(16) of title 38.
``(4) Qualifying service-connected disability.--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 disabilities,
that is rated as total under the standard schedule of
rating disabilities in use by the Department of
Veterans Affairs; or
``(B) a disability, or combination of disabilities,
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-connected 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 qualified
retiree is entitled for that month.
``(B) Applicable retired pay.--In subparagraph (A),
the term `applicable retired pay' for a qualified
retiree means the amount of monthly retired pay to
which the qualified retiree 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 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 chapter 61 of this title.''.
(b) Repeal of Special Compensation Authority.--Section 1413 of
title 10, United States Code, is repealed.
(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 manner 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
paragraph the Secretary, in making the calculations required by
subparagraphs (A) and (B) of that paragraph, shall use the single level
percentages determined under subsection (c)(4), rather than those
determined under subsection (c)(1).''.
(2) Section 1465(c) of such title is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by inserting before the
semicolon at the end the following: ``, to be
determined without regard to section 1414 of this
title'';
(ii) in subparagraph (B), by inserting before 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 paragraph (5); and
(C) by inserting after paragraph (3) the following 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:
``(A) A determination of a single level percentage
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 percentage
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 purposes 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 increased 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--
(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 ELIGIBILITY 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
inserting ``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 RETIRED 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--
(1) in subsections (c)(1), (d), and (e), by inserting ``but
subject to subsection (f)(2)'' after ``Notwithstanding
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 subsection
heading as paragraph (1), indenting that text two ems,
and inserting ``(1) Prevention 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
determined under subsection (b)(2) that is effective on the
same date as the effective date of such first adjustment.''.
(b) Technical Amendments.--Such section is further amended--
(1) in subsection (d), by inserting ``or on or after August
1, 1986, if the member or former member 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 ``FORGOTTEN WIDOWS'' ANNUITY
PROGRAM.

(a) Clarification of Eligibility.--Subsection (a)(1) of section 644
of the National Defense Authorization 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)''.
(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 compensation payable by
the Secretary of Veterans Affairs).
``(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 Benefits.--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'';
(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''.

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 following 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 Columbia'' and inserting
``the continental United States''.
(2) Section 403b(i) is amended by striking paragraph (6).
(3) Section 409 is amended by striking subsection (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 subsection (d).
(6) Section 430 is amended by striking subsection (f) and
inserting the following new subsection (f):
``(f) Definitions.--In this section:
``(1) The term `formal education' means the following:
``(A) A secondary education.
``(B) An undergraduate college education.
``(C) A graduate education pursued on a full-time
basis at an institution of higher education.
``(D) Vocational education pursued on a full-time
basis at a postsecondary vocational institution.
``(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 institution' has
the meaning given that term in section 102(c) of the Higher
Education Act of 1965 (20 U.S.C. 1002(c)).''.

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 emergency''.
(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 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 subparagraph:
``(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 permanent 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 member 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 approximately one hour of driving time, from the
nearest military medical treatment facility that can
adequately provide needed health care.
``(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 ENROLL 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 member 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 members of the participating
uniformed services under the jurisdiction of the respective
administering Secretaries.''.
(b) Mandatory Participation of Other Uniformed 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 Secretary'' 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-INSTITUTIONAL
PROVIDERS UNDER THE TRICARE PROGRAM.

(a) In General.--Section 1079 of title 10, United States Code, is
amended by adding at the end the following new subsection:
``(q) For purposes of designating institutional and non-
institutional health care providers authorized to provide care under
this section, the Secretary of Defense shall prescribe regulations (in
consultation with the other administering Secretaries) that will, to
the extent practicable and subject to the limitations of subsection
(a), so designate any provider authorized to provide care under title
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 TRANSITIONAL 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 General shall submit
to Congress an evaluation of the continuing impediments to a cost
effective and provider- and beneficiary-friendly system for claims
processing under the TRICARE program. The evaluation shall include a
discussion of the following:
(1) The extent of progress implementing improvements in
claims processing, particularly regarding 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 General 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 managed care support contractors to measure and mitigate such
instability. The evaluation shall include a discussion 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 network 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 Department of Defense
and TRICARE managed care support contractors to apply higher
reimbursement rates in specific geographic areas.
(6) Recommendations for specific fiscally prudent measures
that could mitigate negative trends or improve provider and
network stability.

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 Defense-
Department of Veterans Affairs Health Resources Sharing and Performance
Improvement Act of 2002''.

SEC. 722. FINDINGS AND SENSE OF CONGRESS CONCERNING STATUS OF HEALTH
RESOURCES SHARING BETWEEN THE DEPARTMENT OF VETERANS
AFFAIRS AND THE DEPARTMENT OF DEFENSE.

(a) Findings.--Congress makes the following findings:
(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 and Department of Veterans Affairs
health care facilities in order to allow more effective and
efficient use of those health resources.
(3) Health care beneficiaries of the Departments of Defense
and Veterans Affairs, whether active servicemembers, veterans,
retirees, or family members of active or retired
servicemembers, should have full access to the health care and
services that Congress has authorized for them.
(4) The Secretary of Defense and the Secretary of Veterans
Affairs, and the appropriate officials of each of the
Departments of Defense and Veterans Affairs with
responsibilities related to health care, have not taken full
advantage of the opportunities provided by law to make their
respective health resources available to health care
beneficiaries of the other Department in order to provide
improved health care for the whole number of beneficiaries.
(5) After the many years of support and encouragement from
Congress, the Departments have made little progress in health
resource sharing and the intended results of the sharing
authority have not been achieved.
(b) Sense of Congress.--Congress urges the Secretary of Defense and
the Secretary of Veterans Affairs--
(1) to commit their respective Departments to significantly
improve mutually beneficial sharing and coordination of health
care resources and services during peace and war;
(2) to build organizational cultures supportive of improved
sharing and coordination of health care resources and services;
and
(3) to establish and achieve measurable goals to facilitate
increased sharing and coordination of health care resources and
services.
(c) Purpose.--It is the purpose of this Act--
(1) to authorize a program to advance mutually beneficial
sharing and coordination of health care resources between the
two Departments consistent with the longstanding intent of
Congress; and
(2) to establish a basis for improved strategic planning by
the Department of Defense and Department of Veterans Affairs
health systems to ensure that scarce health care resources are
used more effectively and efficiently in order to enhance
access to high quality health care for their respective
beneficiaries.

SEC. 723. REVISED COORDINATION AND SHARING GUIDELINES.

(a) In General.--(1) Section 8111 of title 38, United States Code,
is amended to read as follows:
``Sec. 8111. Sharing of Department of Veterans Affairs and Department
of Defense health care resources
``(a) Required Coordination and Sharing of Health Care Resources.--
The Secretary of Veterans Affairs and the Secretary of Defense shall
enter into agreements and contracts for the mutually beneficial
coordination, use, or exchange of use of the health care resources of
the Department of Veterans Affairs and the Department of Defense with
the goal of improving the access to, and quality and cost effectiveness
of, the health care provided by the Veterans Health Administration and
the Military Health System to the beneficiaries of both Departments.
``(b) Joint Requirements for Secretaries of Veterans Affairs and
Defense.--To facilitate the mutually beneficial coordination, use, or
exchange of use of the health care resources of the two Departments,
the two Secretaries shall carry out the following functions:
``(1) Develop and publish a joint strategic vision
statement and a joint strategic plan to shape, focus, and
prioritize the coordination and sharing efforts among
appropriate elements of the two Departments and incorporate the
goals and requirements of the joint sharing plan into the
strategic and performance plan of each Department under the
Government Performance and Results Act.
``(2) Jointly fund the interagency committee provided for
under subsection (c).
``(3) Continue to facilitate and improve sharing between
individual Department of Veterans Affairs and Department of
Defense health care facilities, but giving priority of effort
to initiatives (A) that improve sharing and coordination of
health resources at the intraregional and nationwide levels,
and (B) that improve the ability of both Departments to provide
coordinated health care.
``(4) Establish a joint incentive program under subsection
(d).
``(c) DOD-VA Health Executive Committee.--(1) There is established
an interagency committee to be known as the Department of Veterans
Affairs-Department of Defense Health Executive Committee (hereinafter
in this section referred to as the `Committee'). The Committee is
composed of--
``(A) the Deputy Secretary of the Department of Veterans
Affairs and such other officers and employees of the Department
of Veterans Affairs as the Secretary of Veterans Affairs may
designate; and
``(B) the Under Secretary of Defense for Personnel and
Readiness and such other officers and employees of the
Department of Defense as the Secretary of Defense may
designate.
``(2)(A) During odd-numbered fiscal years, the Deputy Secretary of
Veterans Affairs shall chair the Committee. During even-numbered fiscal
years, the Under Secretary of Defense shall chair the Committee.
``(B) The Deputy Secretary and the Under Secretary shall determine
the size and structure of the Committee, as well as the administrative
and procedural guidelines for the operation of the Committee. The two
Departments shall share equally the Committee's cost of personnel and
administrative support and services. Support for such purposes shall be
provided at a level sufficient for the efficient operation of the
Committee, including a permanent staff and, as required, other
temporary working groups of appropriate departmental staff and outside
experts.
``(3) The Committee shall recommend to the Secretaries strategic
direction for the joint coordination and sharing efforts between and
within the two Departments under this section and shall oversee
implementation of those efforts.
``(4) The Committee shall submit to the two Secretaries and to
Congress an annual report containing such recommendations as the
Committee considers appropriate. The two Secretaries shall implement
the Committee's recommendations unless, with respect to any such
recommendation, either Secretary formally determines that the
recommendation should not be implemented or should be implemented in a
modified form. Upon making such a determination, the Secretary making
the determination shall submit to Congress notice of the Secretary's
determination and the Secretary's rationale for the determination.
``(5) In order to enable the Committee to make recommendations in
its annual report under paragraph (4), the Committee shall do the
following:
``(A) Review existing policies, procedures, and practices
relating to the coordination and sharing of health care
resources between the two Departments.
``(B) Identify changes in policies, procedures, and
practices that, in the judgment of the Committee, would promote
mutually beneficial coordination, use, or exchange of use of
the health care resources of the two Departments, with the goal
of improving the access to, and quality and cost effectiveness
of, the health care provided by the Veterans Health
Administration and the Military Health System to the
beneficiaries of both Departments.
``(C) Identify and assess further opportunities for the
coordination and sharing of health care resources between the
Departments that, in the judgment of the Committee, would not
adversely affect the range of services, the quality of care, or
the established priorities for care provided by either
Department.
``(D) Review the plans of both Departments for the
acquisition of additional health care resources, especially new
facilities and major equipment and technology, in order to
assess the potential effect of such plans on further
opportunities for the coordination and sharing of health care
resources.
``(E) Review the implementation of activities designed to
promote the coordination and sharing of health care resources
between the Departments. To assist in this effort, the
Committee chairman, under procedures jointly developed by the
Secretaries of both Departments, may task the Inspectors
General of either or both Departments.
``(d) Joint Incentives Program.--(1) Pursuant to subsection (b)(4),
the two Secretaries shall carry out a program to identify, provide
incentives to, implement, fund, and evaluate creative coordination and
sharing initiatives at the facility, intraregional and nationwide
levels. The program shall be administered by the Committee established
in subsection (c), under procedures jointly prescribed by the two
Secretaries.
``(2) To facilitate the incentive program, there is established in
the Treasury, effective on October 1, 2003, a DOD-VA Health Care
Sharing Incentive Fund. Each Secretary shall annually contribute to the
fund a minimum of $15,000,000 from the funds appropriated to that
Secretary's Department. Such funds shall remain available until
expended.
``(3)(A) The implementation and effectiveness of the program under
this subsection shall be reviewed annually by the joint Department of
Defense-Department of Veterans Affairs Inspector General review team
established in section 724(i) of the Department of Defense-Department
of Veterans Affairs Health Resources Sharing and Performance
Improvement Act of 2002. On completion of the annual review, the review
team shall submit a report to the two Secretaries on the results of the
review. Such report shall be submitted through the Committee to the
Secretaries not later than December 31 of each calendar year. The
Secretaries shall forward each report, without change, to the
Committees on Armed Services and Veterans' Affairs of the Senate and
House of Representatives not later than February 28 of the following
year.
``(B) Each such report shall describe activities carried out under
the program under this subsection during the preceding fiscal year.
Each report shall include at least the following:
``(i) An analysis of the initiatives funded by the
Committee, and the funds so expended by such initiatives, from
the Health Care Sharing Incentive Fund, including the purposes
and effects of those initiatives on improving access to care by
beneficiaries, improvements in the quality of care received by
those beneficiaries, and efficiencies gained in delivering
services to those beneficiaries.
``(ii) Other matters of interest, including recommendations
from the review team to make legislative improvements to the
program.
``(4) The program under this subsection shall terminate on
September 30, 2007.
``(e) Guidelines and Policies for Implementation of Coordination
and Sharing Recommendations, Contracts, and Agreements.--(1) To
implement the recommendations made by the Committee under subsection
(c)(2), as well as to carry out other health care contracts and
agreements for coordination and sharing initiatives as they consider
appropriate, the two Secretaries shall jointly issue guidelines and
policy directives. Such guidelines and policies shall provide for
coordination and sharing that--
``(A) is consistent with the health care responsibilities
of the Department of Veterans Affairs under this title and with
the health care responsibilities of the Department of Defense
under chapter 55 of title 10;
``(B) will not adversely affect the range of services, the
quality of care, or the established priorities for care
provided by either Department; and
``(C) will not reduce capacities in certain specialized
programs of the Department of Veterans Affairs that the
Secretary is required to maintain in accordance with section
1706(b) of this title.
``(2) To facilitate the sharing and coordination of health care
services between the two Departments, the two Secretaries shall jointly
develop and implement guidelines for a standardized, uniform payment
and reimbursement schedule for those services. Such schedule shall be
implemented no later than the beginning of fiscal year 2004 and shall
be revised periodically as necessary.
``(3)(A) The guidelines established under paragraph (1) shall
authorize the heads of individual Department of Defense and Department
of Veterans Affairs medical facilities and service regions to enter
into health care resources coordination and sharing agreements.
``(B) Under any such agreement, an individual who is a primary
beneficiary of one Department may be provided health care, as provided
in the agreement, at a facility or in the service region of the other
Department that is a party to the sharing agreement.
``(C) Each such agreement shall identify the health care resources
to be shared.
``(D) Each such agreement shall provide, and shall specify
procedures designed to ensure, that the availability of direct health
care to individuals who are not primary beneficiaries of the providing
Department is (i) on a referral basis from the facility or service
region of the other Department, and (ii) does not (as determined by the
head of the providing facility or region) adversely affect the range of
services, the quality of care, or the established priorities for care
provided to the primary beneficiaries of the providing Department.
``(E) Each such agreement shall provide that a providing Department
or service region shall be reimbursed for the cost of the health care
resources provided under the agreement and that the rate of such
reimbursement shall be as determined in accordance with paragraph (2).
``(F) Each proposal for an agreement under this paragraph shall be
effective (i) on the 46th day after the receipt of such proposal by the
Committee, unless earlier disapproved, or (ii) if earlier approved by
the Committee, on the date of such approval.
``(G) Any funds received through such a uniform payment and
reimbursement schedule shall be credited to funds that have been
allotted to the facility of either Department that provided the care or
services, or is due the funds from, any such agreement.
``(f) Annual Joint Report.--(1) At the time the President's budget
is transmitted to Congress in any year pursuant to section 1105 of
title 31, the two Secretaries shall submit to Congress a joint report
on health care coordination and sharing activities under this section
during the fiscal year that ended during the previous calendar year.
``(2) Each report under this section shall include the following:
``(A) The guidelines prescribed under subsection (e) of
this section (and any revision of such guidelines).
``(B) The assessment of further opportunities identified
under subparagraph (C) of subsection (c)(5) for the sharing of
health-care resources between the two Departments.
``(C) Any recommendation made under subsection (c)(4) of
this section during such fiscal year.
``(D) A review of the sharing agreements entered into under
subsection (e) of this section and a summary of activities
under such agreements during such fiscal year and a description
of the results of such agreements in improving access to, and
the quality and cost effectiveness of, the health care provided
by the Veterans Health Administration and the Military Health
System to the beneficiaries of both Departments.
``(E) A summary of other planning and activities involving
either Department in connection with promoting the coordination
and sharing of Federal health-care resources during the
preceding fiscal year.
``(F) Such recommendations for legislation as the two
Secretaries consider appropriate to facilitate the sharing of
health-care resources between the two Departments.
``(3) In addition to the matters specified in paragraph (2), the
two Secretaries shall include in the annual report under this
subsection an overall status report of the progress of health resources
sharing between the two Departments as a consequence of the Department
of Defense-Department of Veterans Affairs Health Resources Sharing and
Performance Improvement Act of 2002 and of other sharing initiatives
taken during the period covered by the report. Such status report shall
indicate the status of such sharing and shall include appropriate data
as well as analyses of that data. The annual report shall include the
following:
``(A) Enumerations and explanations of major policy
decisions reached by the two Secretaries during the period
covered by the report period with respect to sharing between
the two Departments.
``(B) A description of any purposes of Department of
Defense-Department of Veterans Affairs Health Resources Sharing
and Performance Improvement Act of 2002 that presented barriers
that could not be overcome by the two Secretaries and their
status at the time of the report.
``(C) A description of progress made in new ventures or
particular areas of sharing and coordination that would be of
policy interest to Congress consistent with the intent of such
Act.
``(D) A description of enhancements of access to care of
beneficiaries of both Departments that came about as a result
of new sharing approaches brought about by such Act.
``(E) A description of proposals for which funds are
provided through the joint incentives program under subsection
(d), together with a description of their results or status at
the time of the report, including access improvements, savings,
and quality-of-care enhancements they brought about, and a
description of any additional use of funds made available under
subsection (d).
``(g) Definitions.--For the purposes of this section:
``(1) The term `beneficiary' means a person who is a
primary beneficiary of the Department of Veterans Affairs or of
the Department of Defense.
``(2) The term `direct health care' means health care
provided to a beneficiary in a medical facility operated by the
Department or the Department of Defense.
``(3) The term `head of a medical facility' (A) with
respect to a medical facility of the Department, means the
director of the facility, and (B) with respect to a medical
facility of the Department of Defense, means the medical or
dental officer in charge or the contract surgeon in charge.
``(4) The term `health-care resource' includes hospital
care, medical services, and rehabilitative services, as those
terms are defined in paragraphs (5), (6), and (8),
respectively, of section 1701 of this title, services under
sections 1782 and 1783 of this title, any other health-care
service, and any health-care support or administrative
resource.
``(5) The term `primary beneficiary' (A) with respect to
the Department means a person who is eligible under this title
(other than under section 1782, 1783, or 1784 or subsection (d)
of this section) or any other provision of law for care or
services in Department medical facilities, and (B) with respect
to the Department of Defense, means a member or former member
of the Armed Forces who is eligible for care under section 1074
of title 10.
``(6) The term `providing Department' means the Department
of Veterans Affairs, in the case of care or services furnished
by a facility of the Department of Veterans Affairs, and the
Department of Defense, in the case of care or services
furnished by a facility of the Department of Defense.
``(7) The term `service region' means a geographic service
area of the Veterans Health Administration, in the case of the
Department of Veterans Affairs, and a service region, in the
case of the Department of Defense.''.
(2) The item relating to that section in the table of sections at
the beginning of chapter 81 of title 38, United States Code, is amended
to read as follows:

``8111. Sharing of Department of Veterans Affairs and Department of
Defense health care resources.''.
(b) Conforming Amendment.--Section 1104 of title 10, United States
Code, is amended by striking ``may'' and inserting ``shall''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2003.

SEC. 724. HEALTH CARE RESOURCES SHARING AND COORDINATION PROJECT.

(a) Establishment.--(1) The Secretary of Veterans Affairs and the
Secretary of Defense shall conduct a health care resources sharing
project to serve as a test for evaluating the feasibility, and the
advantages and disadvantages, of measures and programs designed to
improve the sharing and coordination of health care and health care
resources between the Department of Veterans Affairs and the Department
of Defense. The project shall be carried out, as a minimum, at the
sites identified under subsection (b).
(2) Reimbursement between the two Departments with respect to the
project under this section shall be made in accordance with the
provisions of section 8111(e)(2) of title 38, United States Code, as
amended by section 723(a).
(b) Site Identification.--(1) Not later than 90 days after the date
of the enactment of this Act, the Secretaries shall jointly identify no
less than five sites for the conduct of the project under this section.
(2) For purposes of this section, a site at which the resource
sharing project shall be carried out is an area in the United States in
which--
(A) one or more military treatment facilities and one or
more VA health care facilities are situated in relative
proximity to each other, including facilities engaged in joint
ventures as of the date of the enactment of this Act; and
(B) for which an agreement to coordinate care and programs
for patients at those facilities could be implemented not later
than October 1, 2004.
(c) Conduct of Project.--(1) At sites at which the project is
conducted, the Secretaries shall provide a test of a coordinated
management system for the military treatment facilities and VA health
care facilities participating in the project. Such a coordinated
management system for a site shall include at least one of the elements
specified in paragraph (2), and each of the elements specified in that
paragraph must be included in the coordinated management system for at
least two of the participating sites.
(2) Elements of a coordinated management system referred to in
paragraph (1) are the following:
(A) A budget and financial management system for those
facilities that--
(i) provides managers with information about the
costs of providing health care by both Departments at
the site;
(ii) allows managers to assess the advantages and
disadvantages (in terms of relative costs, benefits,
and opportunities) of using resources of either
Department to provide or enhance health care to
beneficiaries of either Department.
(B) A coordinated staffing and assignment system for the
personnel (including contract personnel) employed at or
assigned to those facilities, including clinical practitioners
of either Department.
(C) Medical information and information technology systems
for those facilities that--
(i) are compatible with the purposes of the
project;
(ii) communicate with medical information and
information technology systems of corresponding
elements of those facilities; and
(iii) incorporate minimum standards of information
quality that are at least equivalent to those adopted
for the Departments at large in their separate health
care systems.
(d) Pharmacy Benefit.--(1) One of the elements that shall be tested
in at least two sites in accordance with subsection (c) is a pharmacy
benefit under which beneficiaries of either Department shall have
access, as part of the project, to pharmaceutical services of the other
Department participating in the project.
(2) The two Secretaries shall enter into a memorandum of agreement
to govern the establishment and provision not later than October 1,
2004, of pharmaceutical services authorized by this section. In the
case of beneficiaries of the Department of Defense, the authority under
the preceding sentence for such access to pharmaceutical services at a
VA health care facility includes authority for medications to be
dispensed based upon a prescription written by a licensed health care
practitioner who, as determined by the Secretary of Defense, is a
certified practitioner.
(e) Authority To Waive Certain Administrative Policies.--(1)(A) In
order to carry out subsections (c) and (d), the Secretary of Defense
may, in the Secretary's discretion, waive any administrative policy of
the Department of Defense otherwise applicable to those subsections
(including policies applicable to pharmaceutical benefits) that
specifically conflicts with the purposes of the project, in instances
in which the Secretary determines that the waiver is necessary for the
purposes of the project.
(B) In order to carry out subsections (c) and (d), the Secretary of
Veterans Affairs may, in the Secretary's discretion, waive any
administrative policy of the Department of Veterans Affairs otherwise
applicable to those subsections (including policies applicable to
pharmaceutical benefits) that specifically conflicts with the purposes
of the project, in instances in which the Secretary determines that the
waiver is necessary for the purposes of the project.
(C) The two Secretaries shall establish procedures for resolving
disputes that may arise from the effects of policy changes that are not
covered by other agreement or existing procedures.
(2) No waiver under paragraph (1) may alter any labor-management
agreement in effect as of the date of the enactment of this Act or
adopted by either Department during the period of the project.
(f) Use by DOD of Certain Title 38 Personnel Authorities.--(1) In
order to carry out subsections (c) and (d), the Secretary of Defense
may apply to civilian personnel of the Department of Defense assigned
to or employed at a military treatment facility participating in the
project any of the provisions of subchapters I, III, and IV of chapter
74 of title 38, United States Code, determined appropriate by the
Secretary.
(2) For such purposes, any reference in such chapter--
(A) to the ``Secretary'' or the ``Under Secretary for
Health'' shall be treated as referring to the Secretary of
Defense; and
(B) to the ``Veterans Health Administration'' shall be
treated as referring to the Department of Defense.
(g) Funding.--From amounts available for health care for a fiscal
year, each Secretary shall make available to carry out the project not
less than--
(1) $5,000,000 for fiscal year 2003;
(2) $10,000,000 for fiscal year 2004; and
(3) $15,000,000 for each succeeding year during which the
project is in effect.
(h) Definitions.--For purposes of this section:
(1) The term ``military treatment facility'' means a
medical facility under the jurisdiction of the Secretary of a
military department.
(2) The term ``VA health care facility'' means a facility
under the jurisdiction of the Veterans Health Administration of
the Department of Veterans Affairs.
(i) Performance Requirements.--(1) The two Secretaries shall
provide for a joint review team to conduct an annual on-site review at
each of the project locations selected by the Secretaries under this
section. The review team shall be comprised of employees of the Offices
of the Inspectors General of the two Departments. Leadership of the
joint review team shall rotate each fiscal year between an employee of
the Office of the Inspector General of the Department of Veterans
Affairs, during even-numbered fiscal years, and an employee of the
Office of Inspector General of the Department of Defense, during odd-
numbered fiscal years.
(2) On completion of their annual joint review under paragraph (1),
the review team shall submit a report to the two Secretaries on the
results of the review. The Secretaries shall forward the report,
without change, to the Committees on Armed Services and Veterans'
Affairs of the Senate and House of Representatives.
(3) Each such report shall include the following:
(A) The strategic mission coordination between shared
activities.
(B) The accuracy and validity of performance data used to
evaluate sharing performance and changes in standards of care
or services at the shared facilities.
(C) A statement that all appropriated funds designated for
sharing activities are being used for direct support of sharing
initiatives.
(D) Recommendations concerning continuance of the project
at each site for the succeeding 12-month period.
(4) Whenever there is a recommendation under paragraph (3)(D) to
discontinue a resource sharing project under this section, the two
Secretaries shall act upon that recommendation as soon as practicable.
(5) In the initial report under this subsection, the joint review
team shall validate the baseline information used for comparative
analysis.
(j) Termination.--(1) The project, and the authority provided by
this section, shall terminate on September 30, 2007.
(2) The Secretaries may terminate the performance of the project at
any site when the performance of the project at that site fails to meet
performance expectations of the Secretaries, based on recommendations
from the review team under subsection (i) or on other information
available to the Secretaries to warrant such action.

SEC. 725. REPORT ON IMPROVED COORDINATION AND SHARING OF HEALTH CARE
AND HEALTH CARE RESOURCES FOLLOWING DOMESTIC ACTS OF
TERRORISM OR DOMESTIC USE OF WEAPONS OF MASS DESTRUCTION.

(a) Joint Review.--The Secretary of Defense and the Secretary of
Veterans Affairs shall jointly review the adequacy of current processes
and existing statutory authorities and policy governing the capability
of the Department of Defense and the Department of Veterans Affairs to
provide health care to members of the Armed Forces following domestic
acts of terrorism or domestic use of weapons of mass destruction, both
before and after any declaration of national emergency. Such review
shall include a determination of the adequacy of current authorities in
providing for the coordination and sharing of health care resources
between the two Departments in such cases, particularly before the
declaration of a national emergency.
(b) Report to Congress.--A report on the review under subsection
(a), including any recommended legislative changes, shall be submitted
to Congress as part of the fiscal year 2004 budget submission.

SEC. 726. ADOPTION BY DEPARTMENT OF VETERANS AFFAIRS OF DEPARTMENT OF
DEFENSE PHARMACY DATA TRANSACTION SYSTEM.

(a) Adoption of PDTS System.--The Secretary of Veterans Affairs
shall adopt for use by the Department of Veterans Affairs health care
system the system of the Department of Defense known as the ``Pharmacy
Data Transaction System''. Such system shall be fully operational for
the Department of Veterans Affairs not later than October 1, 2004.
(b) Implementation Funding.--The Secretary of Defense shall
transfer to the Secretary of Veterans Affairs, or shall otherwise bear
the cost of, an amount sufficient to cover three-fourths of the cost to
the Department of Veterans Affairs for initial computer programming
activities and relevant staff training expenses related to
implementation of subsection (a). Such amount shall be determined in
such manner as agreed to by the two Secretaries.
(c) Reimbursement Procedures.--Any reimbursement by the Department
of Veterans Affairs to the Department of Defense for the use by the
Department of Veterans Affairs of the transaction system under
subsection (a) shall be determined in accordance with section
8111(e)(2) of title 38, United States Code, as amended by section 723.

SEC. 727. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL EDUCATION
AND TRAINING FOR PHYSICIANS.

(a) In General.--The Secretary of Defense and the Secretary of
Veterans Affairs shall jointly carry out a pilot program under which
graduate medical education and training is provided to military
physicians and physician employees of the Department of Defense and the
Department of Veterans Affairs through one or more programs carried out
in military medical treatment facilities of the Department of Defense
and medical centers of the Department of Veterans Affairs. The pilot
program shall begin not later than January 1, 2003.
(b) Cost-Sharing Agreement.--The Secretaries shall enter into an
agreement for carrying out the pilot program. The agreement shall
establish means for each Secretary to assist in paying the costs, with
respect to individuals under the jurisdiction of that Secretary,
incurred by the other Secretary in providing medical education and
training under the pilot program.
(c) Use of Existing Authorities.--To carry out the pilot program,
the Secretary of Defense and the Secretary of Veterans Affairs may use
authorities provided to them under this Act, section 8111 of title 38,
United States Code, and other laws relating to the furnishing or
support of medical education and the cooperative use of facilities.
(d) Termination of Program.--The pilot program under this section
shall terminate on July 31, 2008.
(e) Repeal of Superseded Provision.--Section 738 of the National
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10
U.S.C. 1094 note; 115 Stat.1173) is repealed.

SEC. 728. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS AFFAIRS
RESOURCES.

(a) Repeal of VA Bed Limits.--Section 8110(a)(1) of title 38,
United States Code, is amended--
(1) in the first sentence, by striking ``at not more than
125,000 and not less than 100,000'';
(2) in the third sentence, by striking ``shall operate and
maintain a total of not less than 90,000 hospital beds and
nursing home beds and''; and
(3) in the fourth sentence, by striking ``to enable the
Department to operate and maintain a total of not less than
90,000 hospital and nursing home beds in accordance with this
paragraph and''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2003.

SEC. 729. REPORTS.

(a) Interim Report.--Not later than February 1, 2004, the Secretary
of Defense and Secretary of Veterans Affairs shall submit to the
Committees on Veterans' Affairs and the Committees on Armed Services of
the Senate and House of Representatives a joint report on their conduct
of each of the programs under this Act through the end of the preceding
fiscal year. The Secretaries shall include in the report a description
of the measures taken, or planned to be taken, to implement the health
resources sharing project under section 724 and the other provisions of
this Act and any cost savings anticipated, or cost sharing achieved, at
facilities participating in the project. The report shall also include
information on improvements in access to care, quality, and timeliness,
as well as impediments encountered and legislative recommendations to
ameliorate such impediments.
(b) Annual Report on Use of Waiver Authority.--Not later than one
year after the date of the enactment of this Act, and annually
thereafter through completion of the project under section 724, the two
Secretaries shall submit to the committees of Congress specified in
subsection (a) a joint report on the use of the waiver authority
provided by section 724(e)(1). The report shall include a statement of
the numbers and types of requests for waivers under that section of
administrative policies that have been made during the period covered
by the report and, for each such request, an explanation of the content
of each request, the intended purpose or result of the requested
waiver, and the disposition of each request. The report also shall
include descriptions of any new administrative policies that enhance
the success of the project.
(c) Pharmacy Benefits Report.--Not later than one year after
pharmaceutical services are first provided pursuant to section
724(d)(1), the two Secretaries shall submit to the committees of
Congress specified in subsection (a) a joint report on access by
beneficiaries of each department to pharmaceutical services of the
other department. The report shall describe the advantages and
disadvantages to the beneficiaries and the Departments of providing
such access and any other matters related to such pharmaceutical
services that the Secretaries consider pertinent, together with any
legislative recommendations for expanding or canceling such services.
(d) Annual Report on Pilot Program for Graduate Medical
Education.--Not later than January 31, 2004, and January 31 of each
year thereafter through 2009, the two Secretaries shall submit to
Congress a joint report on the pilot program under section 727. The
report for any year shall cover activities under the program during the
preceding year and shall include each Secretary's assessment of the
efficacy of providing education and training under that program.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
MATTERS

SEC. 801. PLAN FOR ACQUISITION MANAGEMENT PROFESSIONAL EXCHANGE PILOT
PROGRAM.

(a) Plan Required.--(1) The Secretary of Defense shall develop a
plan for a pilot program under which--
(A) an individual in the field of acquisition management
employed by the Department of Defense may be temporarily
assigned to work in a private sector organization; and
(B) an individual in such field employed by a private
sector organization may be temporarily assigned to work in the
Department of Defense.
(2) In developing the plan under paragraph (1), the Secretary shall
address the following:
(A) The benefits of undertaking such a program.
(B) The appropriate length of assignments under the
program.
(C) Whether an individual assigned under the program should
be compensated by the organization to which the individual is
assigned, or the organization from which the individual is
assigned.
(D) The ethics guidelines that should be applied to the
program and, if necessary, waivers of ethics laws that would be
needed in order to make the program effective and attractive to
both Government and private sector employees.
(E) An assessment of how compensation of individuals
suffering employment-related injuries under the program should
be addressed.
(b) Submission to Congress.--Not later than February 1, 2003, the
Secretary shall submit to the Committees on Armed Services of the
Senate and the House of Representatives the plan required under
subsection (a).

SEC. 802. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES REGARDING
NEGOTIATION OF INTELLECTUAL PROPERTY ARRANGEMENTS.

(a) Availability of Training, Knowledge, and Resources.--The
Secretary of Defense shall evaluate the training, knowledge, and
resources needed by the Department of Defense in order to effectively
negotiate intellectual property rights using the principles of the
Defense Federal Acquisition Regulation Supplement and determine whether
the Department of Defense currently has in place the training,
knowledge, and resources available to meet those Departmental needs.
(b) Report.--Not later than February 1, 2003, the Secretary of
Defense shall submit to Congress a report describing--
(1) the results of the evaluation performed under
subsection (a);
(2) to the extent the Department does not have adequate
training, knowledge, and resources available, actions to be
taken to improve training and knowledge and to make resources
available to meet the Department's needs; and
(3) the number of Department of Defense legal personnel
trained in negotiating intellectual property arrangements.

SEC. 803. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

Chapter 137 of title 10, United States Code, is amended--
(1) in section 2304a--
(A) in subsection (e)--
(i) by inserting ``(1)'' before ``A task'';
and
(ii) by adding at the end the following new
paragraphs:
``(2) Unless use of procedures other than competitive procedures is
authorized by an exception in subsection (c) of section 2304 of this
title and approved in accordance with subsection (f) of such section,
competitive procedures shall be used for making such a modification.
``(3) Notice regarding the modification shall be provided in
accordance with section 18 of the Office of Federal Procurement Policy
Act (41 U.S.C. 416) and section 8(e) of the Small Business Act (15
U.S.C. 637(e)).''; and
(B) by striking subsection (f) and inserting the
following:
``(f) Limitation on Contract Period.--The base period of a task
order contract or delivery order contract entered into under this
section may not exceed five years unless a longer period is
specifically authorized in a law that is applicable to such contract.
The contract may be extended for an additional 5 years (for a total
contract period of not more than 10 years) through modifications,
options, or otherwise.''; and
(2) in section 2304b--
(A) by striking subsection (a) and inserting the
following:
``(a) In General.--A task order contract (as defined in section
2304d of this title) for procurement of advisory and assistance
services shall be subject to the requirements of this section, sections
2304a and 2304c of this title, and other applicable provisions of
law.'';
(B) by striking subsections (b), (f), and (g) and
redesignating subsections (c), (d), (e), (h), and (i)
as subsections (b) through (f);
(C) by amending subsection (c) (as redesignated by
subparagraph (B)) to read as follows:
``(c) Required Content of Contract.--A task order contract
described in subsection (a) shall contain the same information that is
required by section 2304a(b) to be included in the solicitation of
offers for that contract.''; and
(D) in subsection (d) (as redesignated by
subparagraph (B))--
(i) in paragraph (1), by striking ``under
this section'' and inserting ``described in
subsection (a)''; and
(ii) in paragraph (2), by striking ``under
this section''.

SEC. 804. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED PROCEDURES
TO CERTAIN COMMERCIAL ITEMS; REPORT.

(a) Extension of Pilot Program.--Section 4202 of the Clinger-Cohen
Act of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 652; 10
U.S.C. 2304 note) is amended in subsection (e) by striking ``January 1,
2003'' and inserting ``January 1, 2004''.
(b) Report Required.--Not later than January 15, 2003, the
Secretary of Defense shall submit to Congress a report on whether the
authority to issue solicitations for purchases of commercial items in
excess of the simplified acquisition threshold pursuant to the special
simplified procedures authorized by section 2304(g)(1) of title 10,
United States Code, section 303(g)(1) of the Federal Property and
Administrative Services Act of 1949, and section 31(a) of the Office of
Federal Procurement Policy Act, should be made permanent.

SEC. 805. AUTHORITY TO MAKE INFLATION ADJUSTMENTS TO SIMPLIFIED
ACQUISITION THRESHOLD.

Section 4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11)) is amended by inserting ``, except that such amount may
be adjusted by the Administrator every five years to the amount equal
to $100,000 in constant fiscal year 2002 dollars (rounded to the
nearest $10,000)'' before the period at the end.

SEC. 806. IMPROVEMENT OF PERSONNEL MANAGEMENT POLICIES AND PROCEDURES
APPLICABLE TO THE CIVILIAN ACQUISITION WORKFORCE.

(a) Plan Required.--The Secretary of Defense shall develop a plan
for improving the personnel management policies and procedures
applicable to the Department of Defense civilian acquisition workforce
based on the results of the demonstration project described in section
4308 of the Clinger-Cohen Act of 1996 (division D of Public Law 104-
106; 10 U.S.C. 1701 note).
(b) Submission to Congress.--Not later than February 15, 2003, the
Secretary shall submit to Congress the plan required under subsection
(a) and a report including any recommendations for legislative action
necessary to implement the plan.

SEC. 807. MODIFICATION OF SCOPE OF BALL AND ROLLER BEARINGS COVERED FOR
PURPOSES OF PROCUREMENT LIMITATION.

Section 2534(a)(5) of title 10, United States Code is amended--
(1) by striking ``225.71'' and inserting ``225.70'';
(2) by striking ``October 23, 1992'' and inserting ``April
27, 2002''; and
(3) by adding at the end the following: ``In this section
the term `ball bearings and roller bearings' includes
unconventional or hybrid ball and roller bearings and cam
follower bearings, ball screws, and other derivatives of ball
and roller bearings.''.

SEC. 808. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

(a) Requirement To Establish Procedures.--Chapter 141 of title 10,
United States Code, is amended by inserting after section 2396 the
following new section:
``Sec. 2397. Rapid acquisition and deployment procedures
``(a) Establishment.--The Secretary of Defense shall establish
tailored rapid acquisition and deployment procedures for items urgently
needed to react to an enemy threat or to respond to significant and
urgent safety situations.
``(b) Procedures.--The procedures established under subsection (a)
shall include the following:
``(1) A process for streamlined communications between the
Chairman of the Joint Chiefs of Staff, the acquisition
community, and the testing community.
``(2) A process for expedited technical, programmatic, and
financial decisions.
``(3) An expedited procurement and contracting process.
``(c) Specific Steps To Be Included.--The procedures established
under subsection (a) shall provide for the following:
``(1) The commander of a unified combatant command may
notify the Chairman of the Joint Chiefs of Staff of the need
for an item described in subsection (a) that is currently under
development.
``(2) The Chairman may request the Secretary of Defense to
use rapid acquisition and deployment procedures with respect to
the item.
``(3) The Secretary of Defense shall decide whether to use
such procedures with respect to the item and shall notify the
Secretary of the appropriate military department of the
decision.
``(4) If the Secretary of Defense decides to use such
procedures with respect to the item, the Secretary of the
military department shall prepare a funding strategy for the
rapid acquisition of the item and shall conduct a demonstration
of the performance of the item.
``(5) The Director of Operational Test and Evaluation shall
immediately evaluate the existing capability of the item (but
under such evaluation shall not assess the capability of the
item as regards to the function the item was originally
intended to perform).
``(6) The Chairman of the Joint Chiefs of Staff shall
review the evaluation of the Director of Operational Test and
Evaluation and report to the Secretary of Defense regarding
whether the capabilities of the tested item are able to meet
the urgent need for the item.
``(7) The Secretary of Defense shall evaluate the
information regarding funding and rapid acquisition prepared
pursuant to paragraph (4) and approve or disapprove of the
acquisition of the item using the procedures established
pursuant to subsection (a).
``(d) Limitation.--The quantity of items of a system procured using
the procedures established under this section may not exceed the number
established for low-rate initial production for the system, and any
such items shall be counted for purposes of the number of items of the
system that may be procured through low-rate initial production.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2396 the following new item:

``2397. Rapid acquisition and deployment procedures.''.

SEC. 809. QUICK-REACTION SPECIAL PROJECTS ACQUISITION TEAM.

(a) Establishment.--Chapter 141 of title 10, United States Code, is
amended by inserting after section 2402 the following new section:
``Sec. 2403. Quick-reaction special projects acquisition team
``The Secretary of Defense shall establish a quick-reaction special
projects acquisition team, the purpose of which shall be to advise the
Secretary on actions that can be taken to expedite the procurement of
urgently needed systems. The team shall address problems with the
intention of creating expeditious solutions relating to--
``(1) industrial-base issues such as the limited
availability of suppliers;
``(2) compliance with acquisition regulations and lengthy
procedures;
``(3) compliance with environmental requirements;
``(4) compliance with requirements regarding small-business
concerns; and
``(5) compliance with requirements regarding the purchase
of products made in the United States.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2402 the following new item:

``2403. Quick-reaction special projects acquisition team.''.

SEC. 810. REPORT ON DEVELOPMENT OF ANTI-CYBERTERRORISM TECHNOLOGY.

Not later than February 1, 2003, the Secretary of Defense shall
submit to Congress a report on--
(1) efforts by the Department of Defense to enter into
contracts with private entities to develop anticyberterrorism
technology; and
(2) whether such efforts should be increased.

SEC. 811. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

(a) Assuring Best Value for National Defense and Homeland
Security.--(1) The Department of Defense or one of the military
departments may acquire a product or service from Federal Prison
Industries, Inc. only if such acquisition is made through a procurement
contract awarded and administered in accordance with chapter 137 of
title 10, United States Code, the Federal Acquisition Regulation, and
the Department of Defense supplements to such regulation. If a contract
is to be awarded to Federal Prison Industries, Inc. by the Department
of Defense through other than competitive procedures, authority for
such award shall be based upon statutory authority other than chapter
307 of title 18, United States Code.
(2) The Secretary of Defense shall assure that--
(A) no purchase of a product or a service is made by the
Department of Defense from Federal Prison Industries, Inc.
unless the contracting officer determines that--
(i) the product or service can be timely furnished
and will meet the performance needs of the activity
that requires the product or service; and
(ii) the price to be paid does not exceed a fair
market price determined by competition or a fair and
reasonable price determined by price analysis or cost
analysis; and
(B) Federal Prison Industries, Inc. performs its
contractual obligations to the same extent as any other
contractor for the Department of Defense.
(b) Performance as a Subcontractor.--(1) The use of Federal Prison
Industries, Inc. as a subcontractor or supplier shall be a wholly
voluntary business decision by a Department of Defense prime contractor
or subcontractor, subject to any prior approval of subcontractors or
suppliers by the contracting officer which may be imposed by regulation
or by the contract.
(2) A defense contractor (or subcontractor at any tier) using
Federal Prison Industries, Inc. as a subcontractor or supplier in
furnishing a commercial product pursuant to a contract shall implement
appropriate management procedures to prevent introducing an inmate-
produced product or inmate-furnished services into the commercial
market.
(3) Except as authorized under the Federal Acquisition Regulation,
the use of Federal Prison Industries, Inc. as a subcontractor or
supplier of products or provider of services shall not be imposed upon
prospective or actual defense prime contractors or subcontractors at
any tier by means of--
(A) a contract solicitation provision requiring a
contractor to offer to make use of Federal Prison Industries,
Inc. its products or services;
(B) specifications requiring the contractor to use specific
products or services (or classes of products or services)
offered by Federal Prison Industries, Inc. in the performance
of the contract;
(C) any contract modification directing the use of Federal
Prison Industries, Inc. its products or services; or
(D) any other means.
(c) Protection of Classified and Sensitive Information.--The
Secretary of Defense shall assure that Federal Prison Industries, Inc.
is not permitted to provide services as a contractor or subcontractor
at any tier, if an inmate worker has access to--
(1) data that is classified or will become classified after
being merged with other data;
(2) geographic data regarding the location of surface and
subsurface infrastructure providing communications, water and
electrical power distribution, pipelines for the distribution
of natural gas, bulk petroleum products and other commodities,
and other utilities; or
(3) personal or financial information about individual
private citizens, including information relating to such
person's real property, however described, without giving prior
notice to such persons or class of persons to the greatest
extent practicable.
(d) Regulatory Implementation.--
(1) Proposed regulations.--Proposed revisions to the
Department of Defense Supplement to the Federal Acquisition
Regulation to implement this section shall be published not
later than 90 days after the date of enactment of this Act and
provide not less than 60 days for public comment.
(2) Final regulations.--Final regulations shall be
published not later than 180 days after the date of the
enactment of this Act and shall be effective on the date that
is 30 days after the date of publication.

SEC. 812. RENEWAL OF CERTAIN PROCUREMENT TECHNICAL ASSISTANCE
COOPERATIVE AGREEMENTS AT FUNDING LEVELS AT LEAST
SUFFICIENT TO SUPPORT EXISTING PROGRAMS.

Section 2413 of title 10, United States Code, is amended by adding
at the end the following new subsection:
``(d) With respect to any eligible entity that has successfully
performed under a cooperative agreement entered into under subsection
(a), the Secretary shall strive, to the greatest extent practicable and
subject to appropriations, to renew such agreement with such entity at
a level of funding which is at least equal to the level of funding
under the cooperative agreement being renewed.''.

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.

(a) Change in Title.--The position of the Secretary of the Navy is
hereby redesignated as the Secretary of the Navy and Marine Corps.
(b) References.--Any reference to the Secretary of the Navy in any
law, regulation, document, record, or other paper of the United States
shall be considered to be a reference to the Secretary of the Navy and
Marine Corps.

SEC. 902. REPORT ON IMPLEMENTATION OF UNITED STATES NORTHERN COMMAND.

Not later than September 1, 2002, the Secretary of Defense shall
submit to the Committees on Armed Services of the Senate and the House
of Representatives a report providing an implementation plan for the
United States Northern Command. The report shall address the following:
(1) The required budget for standing-up and maintaining
that command.
(2) The location of the headquarters of that command and
alternatives considered for that location, together with the
criteria used in selection of that location.
(3) The required manning levels for the command, the effect
that command will have on current Department of Defense
personnel resources, and the other commands from which
personnel will be transferred to provide personnel for that
command.
(4) The chain of command within that command to the
component command level and a review of permanently assigned or
tasked organizations and units.
(5) The relationship of that command to the Office of
Homeland Security and the Homeland Security Council, to other
Federal departments and agencies, and to State and local law
enforcement agencies.
(6) The relationship of that command with the National
Guard Bureau, individual State National Guard Headquarters, and
civil first responders to ensure continuity of operational
plans.
(7) The legal implications of military forces in their
Federal capacity operating on United States territory.
(8) The status of Department of Defense consultations--
(A) with Canada regarding Canada's role in, and any
expansion of mission for, the North American Air
Defense Command; and
(B) with Mexico regarding Mexico's role in the
United States Northern Command.
(9) The status of Department of Defense consultations with
NATO member nations on efforts to transfer the Supreme Allied
Command for the Atlantic from dual assignment with the position
of commander of the United States Joint Forces Command.
(10) The revised mission, budget, and personnel resources
required for the United States Joint Forces Command.

SEC. 903. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE INCLUDED IN
FUTURE QUADRENNIAL DEFENSE REVIEWS.

Section 118(d) of title 10, United States Code, is amended--
(1) by redesignating paragraph (14) as paragraph (15); and
(2) by inserting after paragraph (13) the following new
paragraph:
``(14) The national defense mission of the Coast Guard.''.

SEC. 904. CHANGE IN YEAR FOR SUBMISSION OF QUADRENNIAL DEFENSE REVIEW.

Section 118(a) of title 10, United States Code, is amended by
striking ``during a year'' and inserting ``during the second year''.

SEC. 905. REPORT ON EFFECT OF OPERATIONS OTHER THAN WAR ON COMBAT
READINESS OF THE ARMED FORCES.

(a) Report Required.--Not later than February 28, 2004, 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 effect on the combat readiness of the
Armed Forces of operations other than war in which the Armed Forces are
participating as of the date of the enactment of this Act (hereinafter
in this section referred to as ``current operations other than war'').
Such report shall address any such effect on combat readiness for the
Armed Forces as a whole and separately for the active components and
the reserve components.
(b) Operations Other Than War.--For purposes of this section, the
term ``operations other than war'' includes the followng:
(1) Humanitarian operations.
(2) Counter-drug operations.
(3) Peace operations.
(4) Nation assistance.
(c) Matters To Be Addressed.--The report shall, at a minimum,
address the following (shown both for the Armed Forces as a whole and
separately for the active components and the reserve components):
(1) With respect to each current operation other than war,
the number of members of the Armed Forces who are--
(A) directly participating in the operation;
(B) supporting the operation;
(C) preparing to participate or support an upcoming
rotation to the operation; or
(D) recovering and retraining following
participation in the operation.
(2) The cost to the Department of Defense in time, funds,
resources, personnel, and equipment to prepare for, conduct,
and recover and retrain from each such operation.
(3) The effect of participating in such operations on
performance, retention, and readiness of individual members of
the Armed Forces.
(4) The effect of such operations on the readiness of
forces and units participating, preparing to participate, and
returning from participation in such operations.
(5) The effect that such operations have on forces and
units that do not, have not, and will not participate in them.
(6) The contribution to United States national security and
to regional stability of participation by the United States in
such operations, to be assessed after receiving the views of
the commanders of the regional unified combatant commands.
(d) Classification of Report.--The report may be provided in
classified or unclassified form as necessary.

SEC. 906. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF
DEPARTMENT OF DEFENSE CONSEQUENCE MANAGEMENT PROGRAM
INTEGRATION OFFICE.

Section 12310(c)(3) of title 10, United States Code, is amended by
striking ``only--'' and all that follows through ``(B) while assigned''
and inserting ``only while assigned''.

SEC. 907. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE UNIVERSITY.

(a) In General.--Section 2605 of title 10, United States Code, is
amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' after ``administration
of''; and
(B) by inserting before the period at the end of
the first sentence ``, or (2) the National Defense
University'';
(2) in subsection (b)--
(A) by inserting ``(1)'' after ``(b)'';
(B) by striking ``subsection (a)'' and inserting
``subsection (a)(1)'';
(C) by designating the last sentence as paragraph
(3) and in that sentence by inserting ``or for the
benefit or use of the National Defense University, as
the case may be,'' after ``schools,''; and
(D) by inserting before paragraph (3), as
designated by subparagraph (C), the following:
``(2) There is established in the Treasury a fund to be known as
the `National Defense University Gift Fund'. Gifts of money, and the
proceeds of the sale of property, received under subsection (a)(2)
shall be deposited in the Fund.'';
(3) in subsection (d)(1)(A), by inserting ``and the
National Defense University Gift Fund'' before the semicolon;
and
(4) by adding at the end the following new subsection:
``(h) In this section, the term `National Defense University'
includes any school or other component of the National Defense
University.''.
(b) Clerical Amendment.--(1) The heading of such section is amended
to read as follows:
``Sec. 2605. Acceptance of gifts for defense dependents' schools and
National Defense University''.
(2) The item relating to such section in the table of sections at
the beginning of chapter 151 of such title is amended to read as
follows:

``2605. Acceptance of gifts for defense dependents' schools and
National Defense University.''.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

(a) Authority To Transfer Authorizations.--(1) Upon determination
by the Secretary of Defense that such action is necessary in the
national interest, the Secretary may transfer amounts of authorizations
made available to the Department of Defense in this division for fiscal
year 2003 between any such authorizations for that fiscal year (or any
subdivisions thereof). Amounts of authorizations so transferred shall
be merged with and be available for the same purposes as the
authorization to which transferred.
(2) The total amount of authorizations that the Secretary may
transfer under the authority of this section may not exceed
$2,000,000,000.
(b) Limitations.--The authority provided by this section to
transfer authorizations--
(1) may only be used to provide authority for items that
have a higher priority than the items from which authority is
transferred; and
(2) may not be used to provide authority for an item that
has been denied authorization by Congress.
(c) Effect on Authorization Amounts.--A transfer made from one
account to another under the authority of this section shall be deemed
to increase the amount authorized for the account to which the amount
is transferred by an amount equal to the amount transferred.
(d) Notice to Congress.--The Secretary shall promptly notify
Congress of each transfer made under subsection (a).

SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR
2002.

(a) DOD Authorizations.--Amounts authorized to be appropriated to
the Department of Defense for fiscal year 2002 in the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107) are hereby
adjusted, with respect to any such authorized amount, by the amount by
which appropriations pursuant to such authorization are increased (by a
supplemental appropriation) or decreased (by a rescission), or both, or
are increased by a transfer of funds, pursuant to the following:
(1) Chapter 3 of the Emergency Supplemental Act, 2002
(division B of Public Law 107-117; 115 Stat. 2299).
(2) Any Act enacted after May 1, 2002, making supplemental
appropriations for fiscal year 2002 for the military functions
of the Department of Defense.
(b) NNSA Authorizations.--Amounts authorized to be appropriated to
the Department of Energy for fiscal year 2002 in the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107) are hereby
adjusted, with respect to any such authorized amount, by the amount by
which appropriations pursuant to such authorization are increased (by a
supplemental appropriation) or decreased (by a rescission), or both, or
are increased by a transfer of funds, pursuant to the following:
(1) Chapter 5 of the Emergency Supplemental Act, 2002
(division B of Public Law 107-117; 115 Stat. 2307).
(2) Any Act enacted after May 1, 2002, making supplemental
appropriations for fiscal year 2002 for the atomic energy
defense activities of the Department of Energy.
(c) Limitation on Transfers Pending Submission of Report.--Any
amount provided for the Department of Defense for fiscal year 2002
through a so-called `transfer account'', including the Defense
Emergency Response Fund or any other similar account, may be
transferred to another account for obligation only after the Secretary
of Defense submits to the congressional defense committees a report
stating, for each such transfer, the amount of the transfer, the
appropriation account to which the transfer is to be made, and the
specific purpose for which the transferred funds will be used.
(d) Emergency Designation Requirement.--(1) In the case of a
pending contingent emergency supplemental appropriation for the
military functions of the Department of Defense or the atomic energy
defense activities of the Department of Energy, an adjustment may be
made under subsection (a) or (b) in the amount of an authorization of
appropriations by reason of that supplemental appropriation only if,
and to the extent that, the President transmits to Congress an official
budget request for that appropriation that designates the entire amount
requested as an emergency requirement.
(2) For purposes of this subsection, the term ``contingent
emergency supplemental appropriation'' means a supplemental
appropriation that--
(A) is designated by Congress as an emergency requirement
pursuant to section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985; and
(B) by law is available only to the extent that the
President transmits to the Congress an official budget request
for that appropriation that includes designation of the entire
amount of the request as an emergency requirement.

SEC. 1003. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE FOR
EXPOSURE OF PERSONNEL TO PECUNIARY LIABILITY FOR LOSS OF
GOVERNMENT PROPERTY.

(a) Extension of Army and Air Force Report-of-Survey Procedures to
Navy and Marine Corps and all DOD Civilian Employees.--(1) Chapter 165
of title 10, United States Code, is amended by adding at the end the
following new section:
``Sec. 2787. Reports of survey
``(a) Regulations.--Under such regulations as the Secretary of
Defense may prescribe, any officer of the Army, Navy, Air Force, or
Marine Corps or any civilian employee of the Department of Defense
designated by the Secretary may act upon reports of surveys and
vouchers pertaining to the loss, spoilage, unserviceability,
unsuitability, or destruction of, or damage to, property of the United
States under the control of the Department of Defense.
``(b) Finality of Action.--Action taken under subsection (a) is
final, except that action holding a person pecuniarily liable for loss,
spoilage, destruction, or damage is not final until approved by the
Secretary.''.
(2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``2787. Reports of survey.''.
(b) Extension to Members of the Navy and Marine Corps of Pay
Deduction Authority Pertaining to Damage or Repair of Arms and
Equipment .--Section 1007(e) of title 37, United States Code, is
amended by striking ``Army or the Air Force'' and inserting ``Army,
Navy, Air Force, or Marine Corps''.
(c) Repeal of Superceded Provisions.--(1) Sections 4835 and 9835 of
title 10, United States Code, are repealed.
(2)(A) The table of sections at the beginning of chapter 453 of
such title is amended by striking the item relating to section 4835.
(B) The table of sections at the beginning of chapter 953 of such
title is amended by striking the item relating to section 9835.

SEC. 1004. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF DEFENSE.

(a) Accountable Officials Within the Department of Defense.--
Chapter 165 of title 10, United States Code, is amended by inserting
after section 2773 the following new section:
``Sec. 2773a. Departmental accountable officials
``(a) Designation.--(1) The Secretary of Defense may designate as a
`departmental accountable official' any civilian employee of the
Department of Defense or member of the armed forces under the
Secretary's jurisdiction who is described in paragraph (2). Any such
designation shall be in writing.
``(2) An employee or member of the armed forces described in this
paragraph is an employee or member who is responsible in the
performance of the employee's or member's duties for providing to a
certifying official of the Department of Defense information, data, or
services that are directly relied upon by the certifying official in
the certification of vouchers for payment.
``(b) Pecuniary Liability.--(1) The Secretary of Defense may impose
pecuniary liability on a departmental accountable official to the
extent that an illegal, improper, or incorrect payment results from the
information, data, or services that that official provides to a
certifying official and upon which the certifying official directly
relies in certifying the voucher supporting that payment.
``(2) The pecuniary liability of a departmental accountable
official under this subsection for such an illegal, improper, or
incorrect payment is joint and several with that of any other officials
who are pecuniarily liable for such payment.
``(c) Relief from Liability.--The Secretary of Defense shall
relieve a departmental accountable official from liability under
subsection (b) if the Secretary determines that the illegal, improper,
or incorrect payment was not the result of fault or negligence by that
official.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2773 the following new item:

``2773a. Departmental accountable officials.''.

SEC. 1005. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

(a) In General.--Section 2784 of title 10, United States Code, is
amended to read as follows:
``Sec. 2784. Management of purchase cards
``(a) Management of Purchase Cards.--The Secretary of Defense,
acting through the Under Secretary of Defense (Comptroller), shall
prescribe regulations governing the use and control of all purchase
cards and convenience checks that are issued to Department of Defense
personnel for official use. Those regulations shall be consistent with
regulations that apply Government-wide regarding use of purchase cards
by Government personnel for official purposes.
``(b) Required Safeguards and Internal Controls.--Regulations under
subsection (a) shall include safeguards and internal controls to ensure
the following:
``(1) That there is a record in the Department of Defense
of each holder of a purchase card issued by the Department of
Defense for official use, annotated with the limitations on
amounts that are applicable to the use of each such card by
that purchase card holder.
``(2) That the holder of a purchase card and each official
with authority to authorize expenditures charged to the
purchase card are responsible for--
``(A) reconciling the charges appearing on each
statement of account for that purchase card with
receipts and other supporting documentation; and
``(B) forwarding that statement after being so
reconciled to the designated disbursing office in a
timely manner.
``(3) That any disputed purchase card charge, and any
discrepancy between a receipt and other supporting
documentation and the purchase card statement of account, is
resolved in the manner prescribed in the applicable Government-
wide purchase card contract entered into by the Administrator
of General Services.
``(4) That payments on purchase card accounts are made
promptly within prescribed deadlines to avoid interest
penalties.
``(5) That rebates and refunds based on prompt payment on
purchase card accounts are properly recorded.
``(6) That records of each purchase card transaction
(including records on associated contracts, reports, accounts,
and invoices) are retained in accordance with standard
Government policies on the disposition of records.
``(7) That an annual review is performed of the use of
purchase cards issued by the Department of Defense to determine
whether each purchase card holder has a need for the purchase
card.
``(8) That the Inspectors General of the Department of
Defense and the military services perform periodic audits with
respect to the use of purchase cards issued by the Department
of Defense to ensure that such use is in compliance with
regulations.
``(9) That appropriate annual training is provided to each
purchase card holder and each official with responsibility for
overseeing the use of purchase cards issued by the Department
of Defense.
``(c) Penalties for Violations.--The Secretary shall provide in the
regulations prescribed under subsection (a)--
``(1) that procedures are implemented providing for
appropriate punishment of employees of the Department of
Defense for violations of such regulations and for negligence,
misuse, abuse, or fraud with respect to a purchase card,
including dismissal in appropriate cases; and
``(2) that a violation of such regulations by a person
subject to chapter 47 of this title (the Uniform Code of
Military Justice) is punishable as a violation of section 892
of this title (article 92 of the Uniform Code of Military
Justice).''.
(b) Clerical Amendment.--The item relating to section 2784 in the
table of sections at the beginning of chapter 165 of such title is
amended to read as follows:

``2784. Management of purchase cards.''.

SEC. 1006. AUTHORITY TO TRANSFER FUNDS WITHIN A MAJOR ACQUISITION
PROGRAM FROM PROCUREMENT TO RDT&E.

(a) Program Flexibility.--(1) Chapter 131 of title 10, United
States Code, is amended by inserting after section 2214 the following
new section:
``Sec. 2214a. Transfer of funds: transfers from procurement accounts to
research and development accounts for major acquisition
programs
``(a) Transfer Authority Within Major Programs.--Subject to
subsection (b), the Secretary of Defense may transfer amounts provided
in an appropriation Act for procurement for a covered acquisition
program to amounts provided in the same appropriation Act for research,
development, test, and evaluation for that program.
``(b) Congressional Notice-and-Wait.--A transfer may be made under
this section only after--
``(1) the Secretary submits to the congressional defense
committees notice in writing of the Secretary's intent to make
such transfer, together with the Secretary's justification for
the transfer; and
``(2) a period of 30 days has elapsed following the date of
such notification.
``(c) Limitations.--From amounts appropriated for the Department of
Defense for any fiscal year for procurement--
``(1) the total amount transferred under this section may
not exceed $250,000,000; and
``(2) the total amount so transferred for any acquisition
program may not exceed $20,000,000.
``(d) Covered Acquisition Programs.--In this section, the term
`covered acquisition program' means an acquisition program of the
Department of Defense that is--
``(A) a major defense acquisition program for purposes of
chapter 144 of this title; or
``(B) any other acquisition program of the Department of
Defense--
``(i) that is designated by the Secretary of
Defense as a covered acquisition program for purposes
of this section; or
``(ii) that is estimated by the Secretary of
Defense to require an eventual total expenditure for
research, development, test, and evaluation of more
than $140,000,000 (based on fiscal year 2000 constant
dollars) or an eventual total expenditure for
procurement of more than $660,000,000 (based on fiscal
year 2000 constant dollars.)
``(e) Transfer Back of Unused Transferred Funds.--If funds
transferred under this section are not used for the purposes for which
transferred, such funds shall be transferred back to the account from
which transferred and shall be available for their original purpose.
``(f) Additional Authority.--The transfer authority provided in
this section is in addition to any other transfer authority available
to the Secretary of Defense.''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2214 the
following new item:

``2214a. Transfer of funds: transfers from procurement accounts to
research and development accounts for major
acquisition programs.''.
(b) Effective Date.--Section 2214a of title 10, United States Code,
as added by subsection (a), shall not apply with respect to funds
appropriated before the date of the enactment of this Act.

SEC. 1007. DEVELOPMENT AND PROCUREMENT OF FINANCIAL AND NONFINANCIAL
MANAGEMENT SYSTEMS.

(a) Report.--Not later than March 1, 2003, the Secretary of Defense
shall submit to the congressional defense committees a report on the
modernization of the Department of Defense's financial management
systems and operations. The report shall include the following:
(1) The goals and objectives of the Financial Management
Modernization Program.
(2) The acquisition strategy for that Program, including
milestones, performance metrics, and financial and nonfinancial
resource needs.
(3) A listing of all operational and developmental
financial and nonfinancial management systems in use by the
Department, the related costs to operate and maintain those
systems during fiscal year 2002, and the estimated cost to
operate and maintain those systems during fiscal year 2003.
(4) An estimate of the completion date of a transition plan
that will identify which of the Department's operational and
developmental financial management systems will not be part of
the objective financial and nonfinancial management system and
that provides the schedule for phase out of those legacy
systems.
(b) Limitations.--(1) A contract described in subsection (c) may be
entered into using funds made available to the Department of Defense
for fiscal year 2003 only with the approval in advance in writing of
the Under Secretary of Defense (Comptroller).
(2) Not more than 75 percent of the funds authorized to be
appropriated in section 201(4) for research, development, test, and
evaluation for the Department of Defense Financial Modernization
Program (Program Element 65016D8Z) may be obligated until the report
required by subsection (a) is received by the congressional defense
committees.
(c) Covered Contracts.--Subsection (b)(1) applies to a contract for
the procurement of any of the following:
(1) An enterprise architecture system.
(2) A finance or accounting system.
(3) A nonfinancial business and feeder system.
(4) An upgrade to any system specified in paragraphs (1)
through (3).
(d) Definitions.--As used in this section:
(1) Financial management system and operations.--The term
``financial management system and operations'' means financial,
financial related, and non-financial business operations and
systems used for acquisition programs, transportation, travel,
property, inventory, supply, medical, budget formulation,
financial reporting, and accounting. Such term includes the
automated and manual processes, procedures, controls, data,
hardware, software, and support personnel dedicated to the
operations and maintenance of system functions.
(2) Feeder systems.--The term ``feeder systems'' means
financial portions of mixed systems.
(3) Developmental systems and projects.--The term
``developmental systems and projects'' means any system that
has not reached Milestone C, as defined in the Department of
Defense 5000-series regulations.

Subtitle B--Reports

SEC. 1011. AFTER-ACTION REPORTS ON THE CONDUCT OF MILITARY OPERATIONS
CONDUCTED AS PART OF OPERATION ENDURING FREEDOM.

(a) Report Required.--(1) The Secretary of Defense shall submit to
the congressional committees specified in subsection (c) two reports on
the conduct of military operations conducted as part of Operation
Enduring Freedom. The first report (which shall be an interim report)
shall be submitted not later than June 15, 2003. The second report
shall be submitted not later than 180 days after the date (as
determined by the Secretary of Defense) of the cessation of hostilities
undertaken as part of Operation Enduring Freedom.
(2) Each report shall be prepared in consultation with the Chairman
of the Joint Chiefs of Staff, the commander-in-chief of the United
States Central Command, and the Director of Central Intelligence.
(3) Each report shall be submitted in both a classified form and an
unclassified form.
(b) Matters To Be Included.--Each report shall contain a discussion
of accomplishments and shortcomings of the overall military operation.
The report shall specifically include the following:
(1) A discussion of the command, control, coordination, and
support relationship between United States Special Operations
Forces and Central Intelligence Agency elements participating
in Operation Enduring Freedom and any lessons learned from the
joint conduct of operations by those forces and elements.
(2) Recommendations to improve operational readiness and
effectiveness.
(c) Congressional Committees.--The committees referred to in
subsection (a)(1) are the following:
(1) The Committee on Armed Services and the Select
Committee on Intelligence of the Senate.
(2) The Committee on Armed Services and the Permanent
Select Committee on Intelligence of the House of
Representatives.

SEC. 1012. REPORT ON BIOLOGICAL WEAPONS DEFENSE AND COUNTER-
PROLIFERATION.

(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the House of
Representatives a report--
(1) describing programs and initiatives to halt, counter,
and defend against the development, production, and
proliferation of biological weapons agents, technology, and
expertise to terrorist organizations and other States; and
(2) including a detailed list of the limitations and
impediments to the biological weapons defense,
nonproliferation, and counterproliferation efforts of the
Department of Defense, and recommendations to remove such
impediments and to make such efforts more effective.
(b) Classification.--The report may be submitted in unclassified or
classified form as necessary.

SEC. 1013. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS TO CONGRESS
BE ACCOMPANIED BY ELECTRONIC VERSION.

Section 480(a) of title 10, United States Code, is amended by
striking ``shall, upon request'' and all that follows through ``(or
each'' and inserting ``shall provide to Congress (or''.

SEC. 1014. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS AND
DELIVERY SYSTEMS.

(a) Plan Required.--The Secretary of Defense and the Secretary of
Energy shall jointly prepare a plan for the United States strategic
force structure for nuclear weapons and nuclear weapons delivery
systems for the period of fiscal years from 2002 through 2012. The plan
shall--
(1) delineate a baseline strategic force structure for such
weapons and systems over such period consistent with the
Nuclear Posture Review dated January 2002;
(2) define sufficient force structure, force modernization
and life extension plans, infrastructure, and other elements of
the defense program of the United States associated with such
weapons and systems that would be required to execute
successfully the full range of missions called for in the
national defense strategy delineated in the Quadrennial Defense
Review dated September 30, 2001, under section 118 of title 10,
United States Code; and
(3) identify the budget plan that would be required to
provide sufficient resources to execute successfully the full
range of missions using such force structure called for in that
national defense strategy.
(b) Report.--(1) The Secretary of Defense and the Secretary of
Energy shall submit a report on the plan to the congressional defense
committees. Except as provided in paragraph (2), the report shall be
submitted not later than January 1, 2003.
(2) If before January 1, 2003, the President submits to Congress
the President's certification that it is in the national security
interest of the United States that such report be submitted on a later
date (to be specified by the President in the certification), such
report shall be submitted not later than such later date.
(c) Report on Options for Achieving, Prior to Fiscal Year 2012,
President's Objective for Operationally Deployed Nuclear Warheads.--Not
later than 90 days after the date of the enactment of this Act, the
Secretary of Energy shall submit to Congress a report on options for
achieving, prior to fiscal year 2012, a posture under which the United
States maintains a number of operationally deployed nuclear warheads at
a level of from 1,700 to 2,200 such warheads, as outlined in the
Nuclear Posture Review. The report shall include the following:
(1) For each of fiscal years 2006, 2008, and 2010, an
assessment of the options for achieving such posture as of such
fiscal year.
(2) An assessment of the effects of achieving such posture
prior to fiscal year 2012 on cost, the dismantlement workforce,
and any other affected matter.

SEC. 1015. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL TRAINING COMPLEX
AND JOINT OPPOSING FORCES.

(a) Report Required.--Not later than six months 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 that outlines a plan
to develop and implement a joint national training complex. Such a
complex may include multiple joint training sites and mobile training
ranges and appropriate joint opposing forces and shall be capable of
supporting field exercises and experimentation at the operational level
of war across a broad spectrum of adversary capabilities.
(b) Matters To Be Included.--The report under subsection (a) shall
include the following:
(1) An identification and description of the types of joint
training and experimentation that would be conducted at such a
joint national training complex, together with a description of
how such training and experimentation would enhance
accomplishment of the six critical operational goals for the
Department of Defense specified at page 30 of the Quadrennial
Defense Review Report of the Secretary of Defense issued on
September 30, 2001.
(2) A discussion of how establishment of such a complex
(including joint opposing forces) would promote innovation and
transformation throughout the Department of Defense.
(3) A discussion of how results from training and
experiments conducted at such a complex would be taken into
consideration in the Department of Defense plans, programs, and
budgeting process and by appropriate decision making bodies
within the Department of Defense.
(4) A methodology, framework, and options for selecting
sites for such a complex, including consideration of current
training facilities that would accommodate requirements among
all the Armed Forces.
(5) Options for development as part of such a complex of a
joint urban warfare training center that could also be used for
homeland defense and consequence management training for
Federal, State, and local training.
(6) Cost estimates and resource requirements to establish
and maintain such a complex, including estimates of costs and
resource requirements for the use of contract personnel for the
performance of management, operational, and logistics
activities for such a complex .
(7) An explanation of the relationship between and among
such a complex and the Department of Defense Office of
Transformation, the Joint Staff, the United States Joint Forces
Command, the United States Northern Command, and each element
of the major commands within the separate Armed Forces with
responsibility for experimentation and training.
(8) A discussion of how implementation of a joint opposing
force would be established, including the feasibility of using
qualified contractors for the function of establishing and
maintaining joint opposing forces and the role of foreign
forces.
(9) Submission of a time line to establish such a center
and for such a center to achieve initial operational capability
and full operational capability.

SEC. 1016. REPEAL OF VARIOUS REPORTS REQUIRED OF THE DEPARTMENT OF
DEFENSE.

(a) Provisions of Title 10.--Title 10, United States Code, is
amended as follows:
(1)(A) Section 230 is repealed.
(B) The table of sections at the beginning of chapter 9 is
amended by striking the item relating to section 230.
(2) Section 526 is amended by striking subsection (c).
(3) Section 721(d) is amended--
(A) by striking paragraph (2); and
(B) by striking ``(1)'' before ``If an officer''.
(4) Section 986 is amended by striking subsection (e).
(5) Section 1095(g) is amended--
(A) by striking paragraph (2); and
(B) by striking ``(1)'' after ``(g)''.
(6) Section 1798 is amended by striking subsection (d).
(7) Section 1799 is amended by striking subsection (d).
(8) Section 2010 is amended by striking subsection (b).
(9) Section 2327(c)(1) is amended--
(A) in subparagraph (A), by striking ``after the
date on which such head of an agency submits to
Congress a report on the contract'' and inserting ``if
in the best interests of the Government''; and
(B) by striking subparagraph (B).
(10) Section 2350f is amended by striking subsection (c).
(11) Section 2350k is amended by striking subsection (d).
(12) Section 2492 is amended by striking subsection (c).
(13) Section 2493 is amended by striking subsection (g).
(14) Section 2563(c)(2) is amended by striking ``and
notifies Congress regarding the reasons for the waiver''.
(15) Section 2611 is amended by striking subsection (e).
(16) Sections 4357, 6975, and 9356 are each amended--
(A) by striking subsection (c); and
(B) in subsection (a), by striking ``Subject to
subsection (c), the Secretary'' and inserting ``The
Secretary''.
(17) Section 4416 is amended by striking subsection (f).
(18) Section 5721(f) is amended--
(A) by striking paragraph (2); and
(B) by striking ``(1)'' after the subsection
heading.
(19) Section 12302 is amended--
(A) in subsection (b), by striking the last
sentence; and
(B) by striking subsection (d).
(b) National Defense Authorization Act for Fiscal Year 1995.--
Section 553(b) of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103-337; 108 Stat. 2772; 10 U.S.C. 4331 note) is
amended by striking the last sentence.

SEC. 1017. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN
SUPPORTING HOMELAND SECURITY.

(a) Report Required.--Not later than December 31, 2002, the
Secretary of Defense shall submit to the congressional defense
committees a report on Department of Defense responsibilities, mission,
and plans for military support of homeland security.
(b) Content of Report.--The report shall include, but not be
limited to, a discussion of the following:
(1) Changes in organization regarding the roles, mission,
and responsibilities carried out by the Department of Defense
to support its homeland security mission and the reasons for
those changes based upon the findings of the study and report
required by section 1511 of the National Defense Authorization
Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1271).
(2) Changes in the roles, missions, and responsibilities of
the Department of the Army, the Department of the Navy, and the
Department of the Air Force with respect to homeland security
and the reasons for such changes.
(3) Changes in the roles, missions, and responsibilities of
unified commands with homeland security missions and the
reasons for such changes.
(4) Changes in the roles, missions, and responsibilities of
the United States Joint Forces Command and the United States
Northern Command in expanded homeland security training and
experimentation involving the Department of Defense and other
Federal, State, and local entities, and the reasons for such
changes.
(5) Changes in the roles, missions, and responsibilities of
the Army National Guard and the Air National Guard in the
homeland security mission of the Department of Defense, and the
reasons for such changes.
(6) The status of the unconventional nuclear warfare
defense test bed program established in response to title IX of
the Department of Defense Appropriations Act, 2002 (division A
of Public Law 107-117; 115 Stat. 2289), including the plan and
program for establishing such test beds.
(7) The plans and status of the Department of Defense
homeland security biological defense program, including the
plans and status of--
(A) the biological counter terrorism research
program;
(B) the biological defense homeland security
support program;
(C) pilot programs for establishing biological
defense test beds on Department of Defense
installations and in selected urban areas of the United
States;
(D) programs for expanding the capacity of the
Department of Defense to meet increased demand for
vaccines against biological agents; and
(E) any plans to coordinate Department of Defense
work in biological defense programs with other Federal,
State, and local programs.
(8) Recommendations for legislative changes that may be
required to execute the roles and missions set forth in
Department of Defense homeland security plans.

SEC. 1018. REPORT ON EFFECTS OF NUCLEAR EARTH PENETRATOR WEAPONS AND
OTHER WEAPONS.

(a) NAS Study.--The Secretary of Defense shall request the National
Academy of Sciences to conduct a study and prepare a report on the
anticipated short-term and long-term effects of the use of a nuclear
earth penetrator weapon on the target area, including the effects on
civilian populations in proximity to the target area and on United
States military personnel performing operations and battle damage
assessments in the target area, and the anticipated short-term and
long-term effects on the civilian population in proximity to the target
area if--
(1) a non-penetrating nuclear weapon is used to destroy
hard or deeply-buried targets; or
(2) a conventional high-explosive weapon is used to destroy
an adversary's weapons of mass destruction storage or
production facilities, and radioactive, nuclear, biological, or
chemical weapons materials, agents, or other contaminants are
released or spread into populated areas.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to Congress the
report under subsection (a), together with any comments the Secretary
may consider appropriate on the report. The report shall be submitted
in unclassified form to the maximum extent possible, with a classified
annex if needed.

SEC. 1019. REPORT ON EFFECTS OF NUCLEAR-TIPPED BALLISTIC MISSILE
INTERCEPTORS AND NUCLEAR MISSILES NOT INTERCEPTED.

(a) NAS Study.--The Secretary of Defense shall request the National
Academy of Sciences to conduct a study and prepare a report on the
anticipated short-term and long-term effects of the use of a nuclear-
tipped ballistic missile interceptor, including the effects on civilian
populations and on United States military personnel in proximity to the
target area, and the immediate, short-term, and long-term effects on
the civilian population of a major city of the United States, and the
Nation as a whole, if a ballistic missile carrying a nuclear weapon is
not intercepted and detonates directly above a major city of the United
States.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to Congress the
report under subsection (a), together with any comments the Secretary
may consider appropriate on the report. The report shall be submitted
in unclassified form to the maximum extent possible, with a classified
annex if needed.

SEC. 1020. LIMITATION ON DURATION OF FUTURE DEPARTMENT OF DEFENSE
REPORTING REQUIREMENTS.

(a) In General.--Chapter 23 of title 10, United States Code, is
amended by inserting after section 480 the following new section:
``Sec. 480a. Recurring reporting requirements: five-year limitation
``(a) Five-Year Sunset.--Any recurring congressional defense
reporting requirement that is established by a provision of law enacted
on or after the date of the enactment of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (including a provision of law
enacted as part of that Act) shall cease to be effective, with respect
to that requirement, at the end of the five-year period beginning on
the date on which such provision is enacted, except as otherwise
provided by law.
``(b) Rule of Construction.--A provision of law enacted after the
date of the enactment of this section may not be considered to
supersede the provisions of subsection (a) unless that provision
specifically refers to subsection (a) and specifically states that it
supersedes subsection (a).
``(c) Recurring Congressional Defense Reporting Requirements.--In
this section, the term `recurring defense congressional reporting
requirement' means a requirement by law for the submission of an
annual, semiannual, or other regular periodic report to Congress, or
one or more committees of Congress, that applies only to the Department
of Defense or to one or more officers of the Department of Defense.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
480 the following new item:

``480a. Recurring reporting requirements: five-year limitation.''.

Subtitle C--Other Matters

SEC. 1021. SENSE OF CONGRESS ON MAINTENANCE OF A RELIABLE, FLEXIBLE,
AND ROBUST STRATEGIC DETERRENT.

It is the sense of Congress that, consistent with the national
defense strategy delineated in the Quadrennial Defense Review dated
September 30, 2001 (as submitted under section 118 of title 10, United
States Code), the Nuclear Posture Review dated January 2002, and the
global strategic environment, the President should, to defend the
Nation, deter aggressors and potential adversaries, assure friends and
allies, defeat enemies, dissuade competitors, advance the foreign
policy goals and vital interests of the United States, and generally
ensure the national security of the United States, take the following
actions:
(1) Maintain an operationally deployed strategic force of
not less than 1,700 nuclear weapons for immediate and
unexpected contingencies.
(2) Maintain a responsive force of non-deployed nuclear
weapons for potential contingencies at readiness and numerical
levels determined to be--
(A) essential to the execution of the Single
Integrated Operational Plan; or
(B) necessary to maintain strategic flexibility and
capability in accordance with the findings and
conclusions of such Nuclear Posture Review.
(3) Develop advanced conventional weapons, and nuclear
weapons, capable of destroying--
(A) hard and deeply buried targets; and
(B) enemy weapons of mass destruction and the
development and production facilities of such enemy
weapons.
(4) Develop a plan to achieve and maintain the capability
to resume conducting underground tests of nuclear weapons
within one year after a decision is made to resume conducting
such tests, so as to have the means to maintain robust and
adaptive strategic forces through a ready, responsive, and
capable nuclear infrastructure, as prescribed in such Nuclear
Posture Review.
(5) Develop a plan to revitalize the Nation's nuclear
weapons industry and infrastructure so as to facilitate the
development and production of safer, more reliable, and more
effective nuclear weapons.

SEC. 1022. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE AUTHORIZATION
LEGISLATIVE PROPOSAL.

(a) In General.--Chapter 2 of title 10, United States Code, is
amended by inserting after section 113 the following new section:
``Sec. 113a. Transmission of annual defense authorization request
``(a) Time for Transmittal.--The Secretary of Defense shall
transmit to Congress the annual defense authorization request for a
fiscal year during the first 30 days after the date on which the
President transmits to Congress the budget for that fiscal year
pursuant to section 1105 of title 31.
``(b) Defense Authorization Request Defined.--In this section, the
term `defense authorization request', with respect to a fiscal year,
means a legislative proposal submitted to Congress for the enactment of
the following:
``(1) Authorizations of appropriations for that fiscal
year, as required by section 114 of this title.
``(2) Personnel strengths for that fiscal year, as required
by section 115 of this title.
``(3) Any other matter that is proposed by the Secretary of
Defense to be enacted as part of the annual defense
authorization bill for that fiscal year.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
113 the following new item:

``113a. Transmission of annual defense authorization request.''.

SEC. 1023. TECHNICAL AND CLERICAL AMENDMENTS.

(a) Title 10, United States Code.--Title 10, United States Code, is
amended as follows:
(1) Section 153 is amended by inserting ``(a) Planning;
Advice; Policy Formulation.--'' at the beginning of the text.
(2) Section 663(e)(2) is amended by striking ``Armed Forces
Staff College'' and inserting ``Joint Forces Staff College''.
(3) Section 2399(a)(2) is amended--
(A) in the matter preceding subparagraph (A), by
striking ``means--'' and inserting ``means a
conventional weapons system
that--''; and
(B) in subparagraph (A), by striking ``a
conventional weapons system that''.
(4)(A) Section 2410h is transferred to the end of
subchapter IV of chapter 87 and is redesignated as section
1747.
(B) The item relating to that section in the table of
sections at the beginning of chapter 141 is transferred to the
end of the table of sections at the beginning of subchapter IV
of chapter 87 and is amended to reflect the redesignation made
by subparagraph (A).
(5) Section 2677 is amended by striking subsection (c).
(6) Section 2680(e) is amended by striking ``the'' after
``the Committee on'' the first place it appears.
(7) Section 2815(b) is amended by striking ``for fiscal
year 2003 and each fiscal year thereafter'' and inserting ``for
any fiscal year''.
(8) Section 2828(b)(2) is amended by inserting ``time''
after ``from time to''.
(b) Title 37, United States Code.--Title 37, United States Code, is
amended as follows:
(1) Section 302j(a) is amended by striking ``subsection
(c)'' and inserting ``subsection (d)''.
(2) Section 324(b) is amended by striking ``(1)'' before
``The Secretary''.
(c) Public Law 107-107.--Effective as of December 28, 2001, and as
if included therein as enacted, the National Defense Authorization Act
for Fiscal Year 2002 (Public Law 107-107) is amended as follows:
(1) Section 602(a)(2) (115 Stat. 1132) is amended by
striking ``an'' in the first quoted matter.
(2) Section 1410(a)(3)(C) (115 Stat. 1266) by inserting
``both places it appears'' before ``and inserting''.
(3) Section 3007(d)(1)(C) (115 Stat. 1352) is amended by
striking ``2905(b)(7)(B)(iv)'' and inserting
``2905(b)(7)(C)(iv)''.
(d) Public Law 106-398.--Effective as of October 30, 2000, and as
if included therein as enacted, the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (as enacted into law by Public
Law 106-398) is amended as follows:
(1) Section 577(b)(2) (114 Stat. 1654A-140) is amended by
striking ``Federal'' in the quoted matter and inserting
``Department of Defense''.
(2) Section 612(c)(4)(B) (114 Stat. 1654A-150) is amended
by striking the comma at the end of the first quoted matter.
(e) Public Law 106-65.--The National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106-65) is amended as follows:
(1) Section 573(b) (10 U.S.C. 513 note) is amended by
inserting a period at the end of paragraph (2).
(2) Section 1305(6) (22 U.S.C. 5952 note) is amended by
striking the first period after ``facility''.
(f) Title 14, United States Code.--Section 516(c) of title 14,
United States Code, is amended by striking ``his section'' and
inserting ``this section''.

SEC. 1024. WAR RISK INSURANCE FOR VESSELS IN SUPPORT OF NATO-APPROVED
OPERATIONS.

Section 1205 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1285)
is amended by adding at the end the following:
``(c) Insurance of Vessels in Support of NATO-Approved
Operations.--(1) Upon request made under subsection (b), the Secretary
may provide insurance for a vessel, regardless of the country in which
the vessel is registered and the citizenship of its owners, that is
supporting a military operation approved by the North Atlantic Council,
including a vessel that is not operating under contract with a
department or agency of the United States.
``(2) If a vessel is insured under paragraph (1) in response to a
request made pursuant to an international agreement providing for the
sharing among nations of the risks involved in mutual or joint
operations, the Secretary of Transportation, with the concurrence of
the Secretary of State, may seek from another nation that is a party to
such agreement a commitment to indemnify the United States for any
amounts paid by the United States for claims against such insurance.
``(3) Amounts received by the United States as indemnity from a
nation pursuant to paragraph (2) shall be deposited into the insurance
fund created under section 1208.
``(4) Any obligation of a department or agency of the United States
to indemnify the Secretary or the insurance fund for any claim against
insurance provided under this subsection is extinguished to the extent
of any indemnification received from a nation pursuant to paragraph (2)
with respect to the claim.''.

SEC. 1025. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON.

(a) Conveyance Authorized.--The Secretary of the Navy may sell Navy
Drydock No. YFD-69, located in Portland, Oregon, to Portland Shipyard,
LLC, which is the current user of the drydock.
(b) Condition of Conveyance.--The conveyance under subsection (a)
shall be subject to the condition that the purchaser agree to retain
the drydock on Swan Island in Portland, Oregon, until at least
September 30, 2007.
(c) Consideration.--As consideration for the conveyance of the
drydock under subsection (a), the purchaser shall pay to the Secretary
an amount equal to the fair market value of the drydock at the time of
the conveyance, as determined by the Secretary.
(d) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

SEC. 1026. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

(a) Sense of Congress.--It is the sense of Congress that the
Secretary of Defense should--
(1) establish 23 additional teams designated as Weapons of
Mass Destruction Civil Support Teams (for a total of 55 such
teams); and
(2) ensure that of such 55 teams there is at least one team
established for each State and territory.
(b) State and Territory Defined.--In this section, the term ``State
and territory'' means the several States, the District of Columbia,
Puerto Rico, Guam, and the Virgin Islands.

SEC. 1027. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES MAINTAINED
BY DEPARTMENT OF DEFENSE FOR IDENTIFICATION OF HUMAN
REMAINS.

(a) In General.--Chapter 80 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 1566. DNA samples maintained for identification of human
remains: use for law enforcement purposes
``(a) Compliance with Court Order.--(1) Subject to paragraph (2),
if a valid order of a Federal court (or military judge) so requires, an
element of the Department of Defense that maintains a repository of DNA
samples for the purpose of identification of human remains shall make
available, for the purpose specified in subsection (b), such DNA
samples on such terms and conditions as such court (or military judge)
directs.
``(2) A DNA sample with respect to an individual shall be provided
under paragraph (1) in a manner that does not compromise the ability of
the Department of Defense to maintain a sample with respect to that
individual for the purpose of identification of human remains.
``(b) Covered Purpose.--The purpose referred to in subsection (a)
is the purpose of an investigation or prosecution of a felony, or any
sexual offense, for which no other source of DNA information is
available.
``(c) Definition.--In this section, the term `DNA sample' has the
meaning given such term in section 1565(c) of this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:

``1566. DNA samples maintained for identification of human remains: use
for law enforcement purposes.''.

SEC. 1028. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER FORCE
STRUCTURE.

(a) Findings.--Congress makes the following findings:
(1) The aircraft carrier has been an integral component in
Operation Enduring Freedom and in the homeland defense mission
beginning on September 11, 2001. The aircraft carriers that
have participated in Operation Enduring Freedom, as of May 1,
2002, are the USS Enterprise (CVN-65), the USS Carl Vinson
(CVN-70), the USS Kitty Hawk (CV-63), the USS Theodore
Roosevelt (CVN-71), the USS John C. Stennis (CVN-74), and the
USS John F. Kennedy (CV-67). The aircraft carriers that have
participated in the homeland defense mission are the USS George
Washington (CVN-73), the USS John F. Kennedy (CV-67), and the
USS John C. Stennis (CVN-74).
(2) Since 1945, the United States has built 172 bases
overseas, of which only 24 are currently in use.
(3) The aircraft carrier provides an independent base of
operations should no land base be available for aircraft.
(4) The aircraft carrier is an essential component of the
Navy.
(5) Both the F/A-18E/F aircraft program and the Joint
Strike Fighter aircraft program are proceeding on schedule for
deployment on aircraft carriers.
(6) As established by the Navy, the United States requires
the service of 15 aircraft carriers to completely fulfill all
the naval commitments assigned to it without gapping carrier
presence.
(7) The Navy requires, at a minimum, at least 12 carriers
to accomplish its current missions.
(b) Sense of Congress.--It is the sense of Congress that the number
of aircraft carriers of the Navy in active service should not be less
than 12.
(c) Commendation of Crews.--Congress hereby commends the crews of
the aircraft carriers that have participated in Operation Enduring
Freedom and the homeland defense mission.

SEC. 1029. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE SERVICES
DURING PERIODS OF EMERGENCY.

(a) National Foreign Language Skills Registry.--(1) The Secretary
of Defense may establish and maintain a secure data registry to be
known as the ``National Foreign Language Skills Registry''. The data
registry shall consist of the names of, and other pertinent information
on, linguistically qualified United States citizens and permanent
resident aliens who state that they are willing to provide linguistic
services in times of emergency designated by the Secretary of Defense
to assist the Department of Defense and other Departments and agencies
of the United States with translation and interpretation in languages
designated by the Secretary of Defense as critical languages.
(2) The name of a person may be included in the Registry only if
the person expressly agrees for the person's name to be included in the
Registry. Any such agreement shall be made in such form and manner as
may be specified by the Secretary.
(b) Authority To Accept Voluntary Translation and Interpretation
Services.--Section 1588(a) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(6) Language translation and interpretation services.''.

SEC. 1030. SURFACE COMBATANT INDUSTRIAL BASE.

(a) Review.--The Secretary of Defense shall conduct a review of the
effect of the contract award announced on April 29, 2002, for the lead
design agent for the DD(X) ship program on the industrial base for ship
combat system development, including the industrial base for each of
the following: ship systems integration, radar, electronic warfare,
launch systems, and other components.
(b) Report Required.--Not later than March 31, 2003, the Secretary
shall submit to the congressional defense committees a report based on
the review under subsection (a). The report shall provide the
Secretary's assessment of the effect of that contract award on the ship
combat system technology and industrial base and shall describe any
actions that the Secretary proposes to ensure future competition across
the array of technologies that encompass the combat systems of future
surface ships, including the next generation cruiser (CG(X)), the
littoral combat ship (LCS), and the joint command ship (JCC(X)).

SEC. 1031. ENHANCED COOPERATION BETWEEN UNITED STATES AND RUSSIAN
FEDERATION TO PROMOTE MUTUAL SECURITY.

(a) Statement of Policy.--It is the policy of the United States to
pursue greater cooperation, transparency, and confidence with the
Russian Federation regarding nuclear weapons policy, force structure,
safeguards, testing, and proliferation prevention, as well as nuclear
weapons infrastructure, production, and dismantlement, so as to promote
mutual security, stability, and trust.
(b) Sense of Congress Regarding Enhanced Cooperation With Russia.--
It is the sense of Congress that the President of the United States
should continue to engage the President of the Russian Federation to
achieve the following objectives, consistent with United States
national security, in the interest of promoting mutual trust, security,
and stability:
(1) An agreement that would seek to prevent the illicit
use, diversion, theft, or proliferation of tactical nuclear
weapons, and their key components and materials, by--
(A) withdrawing deployed nonstrategic nuclear
weapons;
(B) accounting for, consolidating, and securing the
Russian Federation's nonstrategic nuclear weapons; and
(C) dismantling or destroying United States and
Russian nonstrategic nuclear weapons in excess of each
nation's legitimate defense needs.
(2) A reciprocal program of joint visits by nuclear weapons
scientists and experts of the United States and the Russian
Federation to the United States nuclear test site in Nevada,
and the Russian nuclear test site at Novya Zemlya.
(3) A reciprocal program of joint visits and conferences at
each nation's nuclear weapons laboratories and nuclear weapons
development and production facilities to discuss how to improve
the safety and security of each nation's nuclear stockpile,
nuclear materials, and nuclear infrastructure.
(4) A reciprocal program of joint visits and conferences to
explore greater cooperation between the United States and the
Russian Federation with regard to ballistic missile defenses
against intentional, unauthorized, and accidental launches of
ballistic missiles.
(5) A joint commission on nonproliferation, composed of
senior nonproliferation and intelligence officials from the
United States and the Russian Federation, to meet regularly in
a closed forum to discuss ways to prevent rogue states and
potential adversaries from acquiring--
(A) weapons of mass destruction and ballistic
missiles;
(B) the dual-use goods, technologies, and expertise
necessary to develop weapons of mass destruction and
ballistic missiles; and
(C) advanced conventional weapons.
(6) A joint program to develop advanced methods for
disposal of weapons-grade nuclear materials excess to defense
needs, including safe, proliferation resistant, advanced
nuclear fuel cycles that achieve more complete consumption of
weapons materials, and other methods that minimize waste and
hazards to health and the environment.
(7) A joint program to develop methods for safeguarding,
treating, and disposing of spent reactor fuel and other nuclear
waste so as to minimize the risk to public health, property,
and the environment, as well as the possibility of diversion to
illicit purposes.
(8) A joint program, built upon existing programs, to
cooperatively develop advanced methods and techniques for
establishing a state-of-the-art inventory control and
monitoring system for nuclear weapons and material.
(c) Report.--No later than March 1, 2003, the President shall
submit to Congress a report (in unclassified or classified form as
necessary) on the status of the objectives under subsection (b). The
report shall include the following:
(1) A description of the actions taken by the President to
engage the Russian Federation to achieve those objectives.
(2) A description of the progress made to achieve those
objectives.
(3) A description of the response of the Russian Federation
to the actions referred to in paragraph (1).
(4) The President's assessment of the Russian Federation's
commitment to a better, closer relationship with the United
States based on the principles of increased cooperation and
transparency.

SEC. 1032. TRANSFER OF FUNDS TO INCREASE AMOUNTS FOR PAC-3 MISSILE
PROCUREMENT AND ISRAELI ARROW PROGRAM.

(a) Increase for PAC-3 Procurement.--The amount provided in section
101 for Missile Procurement, Army, is hereby increased by $65,000,000,
to be available for an additional 24 PAC-3 missiles.
(b) Increase for Israeli Arrow Program.--The amount provided in
section 201(4) for the Missile Defense Agency is hereby increased by
$70,000,000, to be available within program element 0603881C, Terminal
Defense Segment, only for the Israeli Arrow Ballistic Missile Defense
System program.
(c) Corresponding Reduction.--The amount provided in section 201(4)
for research, development, test, and evaluation, Defense-wide, is
hereby reduced by $135,000,000, to be derived from amounts available to
the Missile Defense Agency.

SEC. 1033. ASSIGNMENT OF MEMBERS TO ASSIST IMMIGRATION AND
NATURALIZATION SERVICE AND CUSTOMS SERVICE.

(a) Assignment Authority of Secretary of Defense.--Chapter 18 of
title 10, United States Code, is amended by inserting after section 374
the following new section:
``Sec. 374a. Assignment of members to assist border patrol and control
``(a) Assignment Authorized.--Upon submission of a request
consistent with subsection (b), the Secretary of Defense may assign
members of the Army, Navy, Air Force, and Marine Corps to assist--
``(1) the Immigration and Naturalization Service in
preventing the entry of terrorists, drug traffickers, and
illegal aliens into the United States; and
``(2) the United States Customs Service in the inspection
of cargo, vehicles, and aircraft at points of entry into the
United States to prevent the entry of weapons of mass
destruction, components of weapons of mass destruction,
prohibited narcotics or drugs, or other terrorist or drug
trafficking items.
``(b) Request for Assignment.--The assignment of members under
subsection (a) may occur only if--
``(1) the assignment is at the request of the Attorney
General, in the case of an assignment to the Immigration and
Naturalization Service, or the Secretary of the Treasury, in
the case of an assignment to the United States Customs Service;
and
``(2) the request of the Attorney General or the Secretary
of the Treasury (as the case may be) is accompanied by a
certification by the President that the assignment of members
pursuant to the request is necessary to respond to a threat to
national security posed by the entry into the United States of
terrorists or drug traffickers.
``(c) Training Program Required.--The Attorney General or the
Secretary of the Treasury (as the case may be), together with the
Secretary of Defense, shall establish a training program to ensure that
members receive general instruction regarding issues affecting law
enforcement in the border areas in which the members may perform duties
under an assignment under subsection (a). A member may not be deployed
at a border location pursuant to an assignment under subsection (a)
until the member has successfully completed the training program.
``(d) Conditions of Use.--(1) Whenever a member who is assigned
under subsection (a) to assist the Immigration and Naturalization
Service or the United States Customs Service is performing duties at a
border location pursuant to the assignment, a civilian law enforcement
officer from the agency concerned shall accompany the member.
``(2) Nothing in this section shall be construed to--
``(A) authorize a member assigned under subsection (a) to
conduct a search, seizure, or other similar law enforcement
activity or to make an arrest; and
``(B) supersede section 1385 of title 18 (popularly known
as the `Posse Comitatus Act').
``(e) Establishment of Ongoing Joint Task Forces.--(1) The Attorney
General or the Secretary of the Treasury may establish ongoing joint
task forces when accompanied by a certification by the President that
the assignment of members pursuant to the request to establish a joint
task force is necessary to respond to a threat to national security
posed by the entry into the United States of terrorists or drug
traffickers.
``(2) When established, any joint task force shall fully comply
with the standards as set forth in this section.
``(f) Notification Requirements.--The Attorney General or the
Secretary of the Treasury (as the case may be) shall notify the
Governor of the State in which members are to be deployed pursuant to
an assignment under subsection (a), and local governments in the
deployment area, of the deployment of the members to assist the
Immigration and Naturalization Service or the United States Customs
Service (as the case may be) and the types of tasks to be performed by
the members.
``(g) Reimbursement Requirement.--Section 377 of this title shall
apply in the case of members assigned under subsection (a).
``(h) Termination of Authority.--No assignment may be made or
continued under subsection (a) after September 30, 2005.''.
(b) Commencement of Training Program.--The training program
required by subsection (b) of section 374a of title 10, United States
Code, shall be established as soon as practicable after the date of the
enactment of this Act.
(c) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
374 the following new item:

``374a. Assignment of members to assist border patrol and control.''.

SEC. 1034. SENSE OF CONGRESS ON PROHIBITION OF USE OF FUNDS FOR
INTERNATIONAL CRIMINAL COURT.

It is the sense of Congress that none of the funds appropriated
pursuant to authorizations of appropriations in this Act should be used
for any assistance to, or to cooperate with or to provide any support
for, the International Criminal Court.

TITLE XI--CIVILIAN PERSONNEL MATTERS

SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE NONAPPROPRIATED FUND
EMPLOYEES FOR LONG-TERM CARE INSURANCE.

(a) In General.--Section 9001(1) of title 5, United States Code, is
amended--
(1) in subparagraph (B), by striking ``and'';
(2) in subparagraph (C), by striking the comma at the end
and inserting ``; and''; and
(3) by inserting after subparagraph (C) the following new
subparagraph:
``(D) an employee of a nonappropriated fund
instrumentality of the Department of Defense described
in section 2105(c),''.
(b) Discretionary Authority.--Section 9002 of such title is
amended--
(1) by redesignating subsections (b), (c), (d), and (e) as
subsections (c), (d), (e), and (f), respectively; and
(2) by inserting after subsection (a) the following new
subsection (b):
``(b) Discretionary Authority Regarding Nonappropriated Fund
Instrumentalities.--The Secretary of Defense may determine that a
nonappropriated fund instrumentality of the Department of Defense is
covered under this chapter or is covered under an alternative long-term
care insurance program.''.

SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO MAKE LUMP-
SUM SEVERANCE PAYMENTS.

(a) In General.--Section 5595(i)(4) of title 5, United States Code,
is amended by striking ``2003'' and inserting ``2006''.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the President shall submit to Congress a report
including recommendations whether the authority under section 5595(i)
of title 5, United States Code, should be made permanent or expanded to
be made Governmentwide.

SEC. 1103. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR DIFFERENTIAL
PAYMENTS AS A CONSEQUENCE OF EXPOSURE TO ASBESTOS.

(a) Prevailing Rate Systems.--Section 5343(c)(4) of title 5, United
States Code, is amended by inserting before the semicolon at the end
the following: ``, and for any hardship or hazard related to asbestos,
such differentials shall be determined by applying occupational safety
and health standards consistent with the permissible exposure limit
promulgated by the Secretary of Labor under the Occupational Safety and
Health Act of 1970''.
(b) General Schedule Pay Rates.--Section 5545(d) of such title is
amended by inserting before the period at the end of the first sentence
the following: ``, and for any hardship or hazard related to asbestos,
such differentials shall be determined by applying occupational safety
and health standards consistent with the permissible exposure limit
promulgated by the Secretary of Labor under the Occupational Safety and
Health Act of 1970''.
(c) Applicability.--Subject to any vested constitutional property
rights, any administrative or judicial determination after the date of
enactment of this Act concerning backpay for a differential established
under sections 5343(c)(4) or 5545(d) of such title shall be based on
occupational safety and health standards described in the amendments
made by subsections (a) and (b).

SEC. 1104. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM
ELIGIBILITY.

Paragraph (4)(B) of section 8905a(d) of title 5, United States
Code, is amended--
(1) in clause (i), by striking ``2003'' and inserting
``2006''; and
(2) in clause (ii)--
(A) by striking ``2004'' and inserting ``2007'';
and
(B) by striking ``2003'' and inserting ``2006''.

SEC. 1105. TRIENNIAL FULL-SCALE FEDERAL WAGE SYSTEM WAGE SURVEYS.

Section 5343(b) of title 5, United States Code, is amended--
(1) in the first sentence, by striking ``2 years'' and
inserting ``3 years''; and
(2) in the second sentence, by striking the period at the
end and inserting ``, based on criteria developed by the
Office.''.

SEC. 1106. CERTIFICATION FOR DEPARTMENT OF DEFENSE PROFESSIONAL
ACCOUNTING POSITIONS.

(a) In General.--(1) Chapter 81 of title 10, United States Code, is
amended by adding at the end the following new section:
``Sec. 1599d. Professional accounting positions: authority to prescribe
certification and credential standards
``(a) Authority To Prescribe Professional Certification
Standards.--The Secretary of Defense may prescribe professional
certification and credential standards for professional accounting
positions within the Department of Defense. Any such standard shall be
prescribed as a Department of Defense regulation.
``(b) Waiver Authority.--The Secretary may waive any standard
prescribed under subsection (a) whenever the Secretary determines such
a waiver to be appropriate.
``(c) Applicability.--A standard prescribed under subsection (a)
shall not apply to any person employed by the Department of Defense
before the standard is prescribed.
``(d) Report.--The Secretary of Defense shall submit to Congress a
report on the Secretary's plans to provide training to appropriate
Department of Defense personnel to meet any new professional and
credential standards prescribed under subsection (a). Such report shall
be prepared in conjunction with the Director of the Office of Personnel
Management. Such a report shall be submitted not later than one year
after the effective date of any regulations, or any revision to
regulations, prescribed pursuant to subsection (a).
``(e) Definition.--In this section, the term `professional
accounting position' means a position or group of positions in the GS-
510, GS-511, and GS-505 series that involves professional accounting
work.''.
(2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to establish
certification and credential standards.''.
(b) Effective Date.--Standards established pursuant to section
1599d of title 10, United States Code, as added by subsection (a), may
take effect no sooner than 120 days after the date of the enactment of
this Act.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

SEC. 1201. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND
MONITOR IRAQI WEAPONS ACTIVITIES.

(a) Limitation on Amount of Assistance in Fiscal Year 2003.--The
total amount of the assistance for fiscal year 2003 that is provided by
the Secretary of Defense under section 1505 of the Weapons of Mass
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the
Department of Defense in support of activities under that Act may not
exceed $15,000,000.
(b) Extension of Authority To Provide Assistance.--Subsection (f)
of section 1505 of the Weapons of Mass Destruction Control Act of 1992
(22 U.S.C. 5859a) is amended by striking ``2002'' and inserting
``2003''.

SEC. 1202. STRENGTHENING THE DEFENSE OF TAIWAN.

(a) Implementation of Training Plan.--Not later than 180 days after
the date of enactment of this Act, the Secretary of Defense shall
implement a comprehensive plan to conduct joint operational training
for, and exchanges of senior officers between, the Armed Forces of the
United States and the military forces of Taiwan. Such plan shall
include implementation of a wide range of programs, activities,
exercises, and arrangements focused on threat analysis, military
doctrine, force planning, logistical support, intelligence collection
and analysis, operational tactics, techniques, and procedures, civil-
military relations, and other subjects designed to improve the
defensive capabilities of Taiwan and to enhance interoperability
between the military forces of Taiwan and the Armed Forces of the
United States.
(b) Submission to Congress.--At least 30 days before commencing
implementation of the plan described in subsection (a), the Secretary
of Defense shall submit the plan to Congress, in classified and
unclassified form as necessary.

SEC. 1203. ADMINISTRATIVE SERVICES AND SUPPORT FOR FOREIGN LIAISON
OFFICERS.

(a) Authority.--Subchapter II of chapter 138 of title 10, United
States Code, is amended by adding at the end the following new section:
``Sec. 2350m. Administrative services and support for foreign liaison
officers
``(a) Authority To Provide Services and Support.--The Secretary of
Defense may provide administrative services and support for foreign
liaison officers performing duties while such officers temporarily are
assigned to components or commands of the armed forces. Such
administrative services and support may include base or installation
operation support services, office space, utilities, copying services,
fire and police protection, and computer support. The Secretary may
provide such administrative services and support with or without
reimbursement, as the Secretary considers appropriate.
``(b) Expiration of Authority.--The authority under this section
shall expire on September 30, 2005.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such subchapter is amended by adding at the end the following new item:

``2350m. Administrative services and support for foreign liaison
officers.''.
(c) Report.--Not later than March 1, 2005, the Secretary of Defense
shall provide to the Committees on Armed Services of the Senate and the
House of Representatives a report describing, as of the date of
submission of the report--
(1) the number of foreign liaison officers for which
support has been provided under section 2350m of title 10,
United States Code (as added by subsection (a));
(2) the countries from which such foreign liaison officers
are or were assigned;
(3) the type of support provided, the duration for which
the support was provided, and the reasons the support was
provided; and
(4) the costs to the Department of Defense and the United
States of providing such support.

SEC. 1204. ADDITIONAL COUNTRIES COVERED BY LOAN GUARANTEE PROGRAM.

Section 2540 of title 10, United States Code, is amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
``(5) A country that, as determined by the Secretary of
Defense in consultation with the Secretary of State, assists in
combatting drug trafficking organizations or foreign terrorist
organizations.''; and
(2) by adding at the end the following new subsection:
``(d) Report.--The Secretary of Defense and the Secretary of State,
whenever the Secretaries consider such action to be warranted, shall
jointly submit to the Committees on Armed Services and Foreign
Relations of the Senate and the Committees on Armed Services and
International Relations of the House of Representatives a report
enumerating those countries to be added or removed under subsection
(b).''.

SEC. 1205. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN
MOSCOW.

(a) Limitation.--Not more than 50 percent of the funds made
available to the Department of Defense for fiscal year 2003 for
activities associated with the Joint Data Exchange Center in Moscow,
Russia, may be obligated or expended for any such activity until--
(1) the United States and the Russian Federation enter into
a cost-sharing agreement as described in subsection (d) of
section 1231 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-329);
(2) the United States and the Russian Federation enter into
an agreement or agreements exempting the United States and any
United States person from Russian taxes, and from liability
under Russian laws, with respect to activities associated with
the Joint Data Exchange Center;
(3) the Secretary of Defense submits to the Committee on
Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a copy of each
agreement referred to in paragraphs (1) and (2); and
(4) a period of 30 days has expired after the date of the
final submission under paragraph (3).
(b) Joint Data Exchange Center.--For purposes of this section, the
term ``Joint Data Exchange Center'' means the United States-Russian
Federation joint center for the exchange of data to provide early
warning of launches of ballistic missiles and for notification of such
launches that is provided for in a joint United States-Russian
Federation memorandum of agreement signed in Moscow in June 2000.

SEC. 1206. LIMITATION ON NUMBER OF MILITARY PERSONNEL IN COLOMBIA.

(a) Limitation.--None of the funds available to the Department of
Defense may be used to support or maintain more than 500 members of the
Armed Forces on duty in the Republic of Colombia at any time.
(b) Exceptions.--There shall be excluded from counting for the
purposes of the limitation in subsection (a) the following:
(1) A member of the Armed Forces in the Republic of
Colombia for the purpose of rescuing or retrieving United
States military or civilian Government personnel, except that
the period for which such a member may be so excluded may not
exceed 30 days unless expressly authorized by law.
(2) A member of the Armed Forces assigned to the United
States Embassy in Colombia as an attache, as a member of the
security assistance office, or as a member of the Marine Corps
security contingent.
(3) A member of the Armed Forces in Colombia to participate
in relief efforts in responding to a natural disaster.
(4) Nonoperational transient military personnel.
(5) A member of the Armed Forces making a port call from a
military vessel in Colombia.
(c) Waiver.--The Secretary of Defense may waive the limitation in
subsection (a) if he determines that such waiver is in the national
security interest.
(d) Notification.--The Secretary shall notify the congressional
defense committees not later 15 days after the date of the exercise of
the waiver authority under subsection (c).

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER
SOVIET UNION

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND
FUNDS.

(a) Specification of CTR Programs.--For purposes of section 301 and
other provisions of this Act, Cooperative Threat Reduction programs are
the programs specified in section 1501(b) of the National Defense
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat.
2731; 50 U.S.C. 2362 note).
(b) Fiscal Year 2003 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2003 Cooperative Threat
Reduction funds'' means the funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs.
(c) Availability of Funds.--Funds appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative Threat
Reduction programs shall be available for obligation for three fiscal
years.

SEC. 1302. FUNDING ALLOCATIONS.

(a) Funding for Specific Purposes.--Of the $416,700,000 authorized
to be appropriated to the Department of Defense for fiscal year 2003 in
section 301(23) for Cooperative Threat Reduction programs, the
following amounts may be obligated for the purposes specified:
(1) For strategic offensive arms elimination in Russia,
$70,500,000.
(2) For strategic nuclear arms elimination in Ukraine,
$6,500,000.
(3) For nuclear weapons transportation security in Russia,
$19,700,000.
(4) For nuclear weapons storage security in Russia,
$39,900,000.
(5) For activities designated as Other Assessments/
Administrative Support, $14,700,000.
(6) For defense and military contacts, $18,900,000.
(7) For weapons of mass destruction infrastructure
elimination activities in Kazakhstan, $9,000,000.
(8) For weapons of mass destruction infrastructure
elimination activities in Ukraine, $8,800,000.
(9) For chemical weapons destruction in Russia,
$50,000,000.
(10) For biological weapons facility dismantlement in the
States of the former Soviet Union $11,500,000.
(11) For biological weapons facility security and safety in
the States of the former Soviet Union, $34,800,000.
(12) For biological weapons collaborative research in the
States of the former Soviet Union, $8,700,000.
(13) For personnel reliability programs in Russia,
$100,000.
(14) For weapons of mass destruction proliferation
prevention in the States of the former Soviet Union,
$40,000,000.
(b) Additional Funds Authorized for Certain Purposes.--Of the funds
authorized to be appropriated to the Department of Defense for fiscal
year 2003 in section 301(23) for Cooperative Threat Reduction programs,
$83,600,000 may be obligated for any of the purposes specified in
paragraphs (1) through (4) and (9) of subsection (a) in addition to the
amounts specifically authorized in such paragraphs.
(c) Report on Obligation or Expenditure of Funds for Other
Purposes.--No fiscal year 2003 Cooperative Threat Reduction funds may
be obligated or expended for a purpose other than a purpose listed in
paragraphs (1) through (14) of subsection (a) until 30 days after the
date that the Secretary of Defense submits to Congress a report on the
purpose for which the funds will be obligated or expended and the
amount of funds to be obligated or expended. Nothing in the preceding
sentence shall be construed as authorizing the obligation or
expenditure of fiscal year 2003 Cooperative Threat Reduction funds for
a purpose for which the obligation or expenditure of such funds is
specifically prohibited under this title or any other provision of law.
(d) Limited Authority To Vary Individual Amounts.--(1) Subject to
paragraphs (2) and (3), in any case in which the Secretary of Defense
determines that it is necessary to do so in the national interest, the
Secretary may obligate amounts appropriated for fiscal year 2003 for a
purpose listed in any of the paragraphs in subsection (a) in excess of
the amount specifically authorized for such purpose (including amounts
authorized under subsection (b)).
(2) An obligation of funds for a purpose stated in any of the
paragraphs in subsection (a) in excess of the specific amount
authorized for such purpose may be made using the authority provided in
paragraph (1) only after--
(A) the Secretary submits to Congress notification of the
intent to do so together with a complete discussion of the
justification for doing so; and
(B) 15 days have elapsed following the date of the
notification.
(3) The Secretary may not, under the authority provided in
paragraph (1), obligate amounts for the purposes stated any of
paragraphs (5) through (13) of subsection (a) in excess of 115 percent
of the amount specifically authorized for such purposes.

SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION OF
REPORTS.

No fiscal year 2003 Cooperative Threat Reduction funds may be
obligated or expended until 30 days after the date of the submission
of--
(1) the report required to be submitted in fiscal year 2002
under section 1308(a) 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-341); and
(2) the update for the multiyear plan required to be
submitted for fiscal year 2001 under section 1205 of the
National Defense Authorization Act for Fiscal Year 1995 (Public
Law 103-337; 22 U.S.C. 5952 note).

SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES CARRIED OUT
UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

Section 1308(c) 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-341) is amended by inserting at the end
the following new paragraph:
``(6) To the maximum extent practicable, a description of
how revenue generated by activities carried out under
Cooperative Threat Reduction programs in recipient States is
being utilized, monitored, and accounted for.''.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE
MATERIAL STORAGE FACILITY.

No funds authorized to be appropriated for Cooperative Threat
Reduction programs for any fiscal year may be used for the design,
planning, or construction of a second wing for a storage facility for
Russian fissile material.

SEC. 1306. SENSE OF CONGRESS AND REPORT REQUIREMENT REGARDING RUSSIAN
PROLIFERATION TO IRAN.

(a) Sense of Congress.--It is the sense of Congress that--
(1) Russian proliferation to Iran constitutes a clear
threat to the national security and vital interests of the
United States and undermines the purpose and goals of
Cooperative Threat Reduction programs;
(2) such proliferation consists primarily of nuclear and
missile technology, goods, and know-how, and dual-use items
that could contribute to the development of weapons of mass
destruction and ballistic missiles;
(3) because of ongoing Russian assistance, the intelligence
community estimates that Iran could attempt to launch an
intercontinental ballistic missile by 2005, and could possess a
nuclear weapon by 2010;
(4) Russian proliferation is providing Iran with the
capability to strike United States military forces, interests,
allies, and friends in the region with weapons-of-mass-
destruction-tipped ballistic missiles;
(5) the issue of Russian proliferation to Iran has been
raised by United States officials at the highest levels of the
Russian Government;
(6) Iran has long been identified as a State sponsor of
terrorism by the United States because of its support of
foreign terrorist organizations, and the combination of
terrorist organizations and weapons of mass destruction
constitutes a grave threat to the national security of the
United States;
(7) Russian proliferation to Iran raises serious questions
regarding the intentions of the Russian Government, and its
commitment to nonproliferation and improved relations with the
United States;
(8) Russian proliferation to Iran could undermine
Congressional support for Cooperative Threat Reduction
programs; and
(9) the President must safeguard United States national
security and demonstrate United States resolve and commitment
to stopping the proliferation of weapons of mass destruction
and ballistic missiles through clear, firm, and coherent
policies and strategies that employ the full range of
diplomatic and economic tools at his disposal, both positive
and negative, to halt the serious and continuing problem of
Russian proliferation.
(b) Report.--Not later than March 15 of 2003 through 2009, the
President shall submit to Congress a report (in unclassified and
classified form as necessary) describing in detail Russian
proliferation of weapons of mass destruction and ballistic missile
goods, technology, and know-how, and of dual-use items that may
contribute to the development of weapons of mass destruction and
ballistic missiles, to Iran and to other countries during the year
preceding the year in which the report is submitted. The report shall
include--
(1) a net assessment prepared by the Office of Net
Assessment of the Department of Defense; and
(2) a detailed description of the following:
(A) The number, type, and quality of direct and
dual-use weapons of mass destruction and ballistic
missile goods, items, and technology being transferred.
(B) The form, location, and manner in which such
transfers take place.
(C) The contribution that such transfers could make
to the recipient States' weapons of mass destruction
and ballistic missile programs, and how soon such
States will test, possess, and deploy weapons of mass
destruction and ballistic missiles.
(D) The impact that such transfers have, or could
have, on United States national security, on regional
friends, allies, and interests, and on United States
military forces deployed in the region to which such
transfers are being made.
(E) The actions being taken by the United States to
counter and defend against capabilities developed by
the recipient States as a result of such transfers.
(F) The strategy, plan, or policy incorporating the
full range of policy tools available that the President
intends to employ to halt Russian proliferation, the
rationale for employing such tools, and the timeline by
which the President expects to see material progress in
ending Russian proliferation of direct and dual-use
weapons of mass destruction and missile goods,
technologies, and know-how.

SEC. 1307. PROHIBITION AGAINST USE OF COOPERATIVE THREAT REDUCTION
FUNDS OUTSIDE THE STATES OF THE FORMER SOVIET UNION.

No Cooperative Threat Reduction funds authorized or appropriated
for any fiscal year may be used for threat reduction projects,
programs, or activities in countries other than the States of the
former Soviet Union.

SEC. 1308. LIMITED WAIVER OF RESTRICTION ON USE OF FUNDS.

(a) Waiver Authority.--(1) The restriction described in subsection
(d)(5) of section 1203 of the National Defense Authorization Act for
Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1779; 22 U.S.C. 5952)
shall not apply with respect to United States assistance to Russia if
the President submits to Congress a written certification that waiving
the restriction is important to the national security interests of the
United States.
(2) The authority under paragraph (1) shall expire on December 31,
2005.
(b) Report.--Not later than 30 days after the date that the
President applies the waiver authority under subsection (a), the
President shall submit to Congress a report (in classified and
unclassified form as necessary) describing--
(1) the arms control agreements with which Russia is not
committed to complying, the form or forms of noncommittal, and
detailed evidence of such noncommittal;
(2) why use of the waiver of authority was important to
protect national security interests; and
(3) a strategy, plan, or policy incorporating the full
range of policy tools available to the President for promoting
Russian commitment to, and compliance with, all relevant arms
control agreements.

SEC. 1309. LIMITATION ON USE OF FUNDS UNTIL SUBMISSION OF REPORT ON
DEFENSE AND MILITARY CONTACTS ACTIVITIES.

Not more than 50 percent of fiscal year 2003 Cooperative Threat
Reduction Funds may be obligated or expended for defense and military
contacts activities until the Secretary of Defense submits to Congress
a report describing in detail the operation and success of such
activities carried out under Cooperative Threat Reduction programs
during fiscal years 2001 and 2002. Such report shall include a
description of--
(1) the amounts obligated or expended for such activities;
(2) the purposes, goals, and objectives for which such
amounts were obligated and expended;
(3) a description of the activities carried out, including
the forms of assistance provided, and the justification for
each form of assistance provided;
(4) the success of each activity, including the goals and
objectives achieved for each;
(5) a description of participation by private sector
entities in the United States in carrying out such activities,
and the participation of any other Federal department or agency
in such activities; and
(6) any other information that the Secretary considers
relevant to provide a complete description of the operation and
success of activities carried out under Cooperative Threat
Reduction programs.

TITLE XIV--UTAH TEST AND TRAINING RANGE

SEC. 1401. DEFINITION OF UTAH TEST AND TRAINING RANGE.

In this title, the term ``Utah Test and Training Range'' means
those portions of the military operating area of the Utah Test and
Training Area located solely in the State of Utah. The term includes
the Dugway Proving Ground.

SEC. 1402. MILITARY OPERATIONS AND OVERFLIGHTS AT UTAH TEST AND
TRAINING RANGE.

(a) Findings.--The Congress finds the following:
(1) The testing and development of military weapons systems
and the training of military forces are critical to ensuring
the national security of the United States.
(2) The Utah Test and Training Range is a unique and
irreplaceable national asset at the core of the test and
training mission of the Department of Defense.
(3) Areas designated as wilderness study areas are located
near lands withdrawn for military use and are beneath special
use airspace critical to the support of military test and
training missions at the Utah Test and Training Range.
(4) Continued unrestricted access to the special use
airspace and lands that comprise the Utah Test and Training
Range is a national security priority and is not incompatible
with the protection and proper management of the natural,
environmental, cultural, and other resources of such lands.
(b) Overflights.--(1) Nothing in this title, the Wilderness Act (16
U.S.C. 1131 et seq.), or other land management laws generally
applicable to federally designated wilderness areas or wilderness study
areas in the Utah Test and Training Range shall restrict or preclude
low-level overflights, low-level military overflights and operations of
military aircraft, helicopters, unmanned aerial vehicles, military
overflights or military overflights and operations that can be seen or
heard within those areas.
(2) Paragraph (1) precludes any restriction regarding altitude or
airspeed, noise level, supersonic flight, route of flight, time of
flight, seasonal usage, or numbers of flights of any military aircraft,
helicopters, unmanned aerial vehicles, missiles, aerospace vehicles,
and other military weapons systems over federally designated wilderness
areas or wilderness study areas in the Utah Test and Training Range.
(3) In this subsection, the term ``low-level'' includes any flight
down to and including 10 feet above ground level.
(c) Special Use Airspace and Training Routes.--Nothing in this
title, the Wilderness Act, or other land management laws generally
applicable to federally designated wilderness areas or wilderness study
areas in the Utah Test and Training Range shall restrict or preclude
the designation of new units of special use airspace, the expansion of
existing units of special use airspace, or the use or establishment of
military training routes over federally designated wilderness areas or
wilderness study areas in the Utah Test and Training Range.
(d) Communications and Tracking Systems.--Nothing in this title,
the Wilderness Act, or other land management laws generally applicable
to federally designated wilderness areas or wilderness study areas in
the Utah Test and Training Range shall be construed to require the
removal of existing communications, instrumentation, or electronic
tracking systems from these areas, to prevent any required maintenance
of such systems, or to prevent the installation of new communication,
instrumentation, or other equipment necessary for effective testing and
training to meet military requirements so long as the installation and
maintenance of such systems do not require construction of any
permanent roads in any federally designated wilderness area or
wilderness study area.
(e) Emergency Access and Response.--(1) Nothing in this title, the
Wilderness Act, or other land management laws generally applicable to
federally designated wilderness areas or wilderness study areas in the
Utah Test and Training Range shall restrict or preclude timely access
to any area necessary to respond to emergency situations. Immediate
access, including access for emergency and rescue vehicles and
equipment, shall not be restricted if human life or health may be in
jeopardy.
(2) Not later than 120 days after the date of the enactment of this
Act, the Secretary of the Air Force and the Secretary of Interior shall
enter into a memorandum of understanding providing formal procedures
for access to the federally designated wilderness areas or wilderness
study areas that are located beneath airspace of the Utah Test and
Training Range, which may be necessary to respond to emergency
situations, to rescue downed aircrew members, to investigate accident
locations, to recover military aircraft or other weapons systems, and
to restore accident locations. Military operations in the Utah Test and
Training Range shall not be limited or restricted in any way pending
completion of the memorandum of understanding.
(f) Control or Restriction of Public Access.--(1) When required by
national security or public safety, public access to federally
designated wilderness areas or wilderness study areas in the Utah Test
and Training Range that are located beneath airspace designated as
special use airspace may be controlled, restricted, or prohibited
entirely. Such controls, restrictions, or prohibitions shall remain in
force for the minimum duration necessary. The Secretary of the Air
Force shall provide advance notice of such controls, restrictions, or
prohibitions to the Secretary of the Interior.
(2) Not later than 120 days after the date of the enactment of this
Act, the Secretary of the Air Force and the Secretary of Interior shall
enter into a memorandum of understanding prescribing procedures for
implementing access controls, restrictions, or prohibitions. Military
operations in the Utah Test and Training Range shall not be limited or
restricted in any way pending completion of the memorandum of
understanding.

SEC. 1403. DESIGNATION AND MANAGEMENT OF LANDS IN UTAH TEST AND
TRAINING RANGE.

(a) Designation.--The following Federal lands that are in the Utah
Test and Training Range are hereby designated as wilderness:
(1) Those lands that were managed pursuant to the
nonimpairment standard set forth in section 603(c) of Public
Law 94-579 (43 U.S.C. 1782(c)) on or before January 1, 1991.
(2) Those lands that were acquired by the United States
through donation, exchange, or other method of acquisition
and--
(A) are located entirely within the areas
identified in paragraph (1); or
(B) are located within a logical extension of the
boundaries of the areas identified in paragraph (1).
(b) Planning Process for Federal Lands in Utah Test and Training
Range.--(1) The Secretary of the Interior shall not continue the plan
amendment process initiated pursuant to section 202 of Public Law 94-
579 (43 U.S.C. 1712) and published in the Federal Register on March 18,
1999 (64 Fed. Reg. 13439), for Federal lands located in the Utah Test
and Training Range.
(2) The Secretary of the Interior shall not develop, maintain, or
revise land use plans pursuant to section 202 of Public Law 94-579 (43
U.S.C. 1712) for Federal lands located in the Utah Test and Training
Range without the prior concurrence of the Secretary of the Air Force
and the Commander-in-Chief of the military forces of the State of Utah.
(c) Withdrawal.--Subject to valid existing rights, the Federal
lands in the areas designated as wilderness by this title are hereby
withdrawn from all forms of entry, appropriation, or disposal under the
public land laws, from location, entry, and patent under the United
States mining laws, and from disposition under all laws pertaining to
mineral and geothermal leasing, and mineral materials, and all
amendments to such laws.
(d) Water.--Nothing in this title or any action taken pursuant to
this title shall constitute an express or implied reservation of
surface or groundwater by any person, including the United States.
Nothing in this title affects any valid existing water rights in
existence before the date of the enactment of this Act, including any
water rights held by the United States. If the United States determines
that additional water resources are needed for the purposes of this
title, the United States shall acquire such rights in accordance with
the water laws of the State of Utah.
(e) Map and Description.--(1) As soon as practicable after the date
of the enactment of this title, the Secretary of Interior shall
transmit a map and legal description of the areas designated as
wilderness by this title to the Committee on Resources of the House of
Representatives and the Committee on Energy and Natural Resources of
the Senate.
(2) The map and legal description shall have the same force and
effect as if included in this title, except that the Secretary of
Interior may correct clerical and typographical errors in the map and
legal description.
(3) The map and legal description shall be on file and available
for public inspection in the office of the Director of the Bureau of
Land Management and the office of the State Director of the Bureau of
Land Management in the State of Utah.
(f) Administration.--(1) Subject to valid existing rights and this
title, the areas designated as wilderness in this title shall be
administered by the Secretary of Interior in accordance with the
provisions of the Wilderness Act, except that any reference in such
provisions to the effective date of the Wilderness Act (or any similar
reference) shall be deemed to be a reference to the date of the
enactment of this Act.
(2) Any lands or interest in lands within the boundaries of an area
designated as wilderness by this title that is acquired by the United
States after the date of the enactment of this Act shall be added to
and administered as part of the wilderness area within which the
acquired lands or interest in lands are located.
(3) The Secretary of the Interior may offer to acquire lands and
interest in lands located within the areas designated as wilderness by
this title. Such lands may be acquired at fair market value under this
subsection by purchase from willing sellers, by exchange for lands of
approximately equal value, or by donation.
(4) In furtherance of the purposes and principles of the Wilderness
Act, management activities to maintain or restore fish and wildlife
populations and the habitats to support such populations may be carried
out within the areas designated as wilderness by this title where
consistent with relevant wilderness management plans, in accordance
with appropriate policies and guidelines such as those set forth in
appendix B of the Report of the Committee on Interior and Insular
Affairs to accompany H.R. 2570 of the 101st Congress (H. Rept. 101-
405).
(5) Within the areas designated as wilderness by this title, the
grazing of livestock, where established before the date of the
enactment of this Act, shall be permitted to continue subject to such
reasonable regulations, policies, and practices as the Secretary of the
Interior considers necessary, as long as such regulations, policies,
and practices fully conform with and implement the intent of Congress
regarding grazing in such areas, as such intent is expressed in the
Wilderness Act, section 101(f) of Public Law 101-628, and House Report
101-405, Appendix A.
(6) Congress does not intend for the designation of the wilderness
in this title to lead to the creation of protective perimeters or
buffer zones around any area designated as wilderness by this title.
The fact that nonwilderness activities or uses can be seen or heard
within the areas designated as wilderness by this title shall not, of
itself, preclude such activities or uses up to the boundary of that
wilderness.
(7) Until completion of a full revision of the Pony Express Area
Resource Management Plan, dated January 12, 1990, by the Salt Lake
Field Office of the Bureau of Land Management, the Secretary of
Interior shall not grant or issue any authorizations pursuant to
section 501(a)(6) of Public Law 94-579 (43 U.S.C. 1761(a)(6)) upon
Federal lands identified as inventory units UTU-020-088, UTU-020-095,
UTU-020-096, and UTU-020-100, as generally depicted on the map entitled
``Wilderness Inventory, State of Utah'', dated August 1979.

SEC. 1404. DESIGNATION OF PILOT RANGE WILDERNESS.

Certain Federal lands in Box Elder County, Utah, as generally
depicted on the map entitled ``Pilot Range Wilderness'', and dated
October 1, 2001, are hereby designated as wilderness, and shall be
known as the Pilot Range Wilderness Area.

SEC. 1405. DESIGNATION OF CEDAR MOUNTAIN WILDERNESS.

Certain Federal lands in Tooele County, Utah, as generally depicted
on the map entitled ``Cedar Mountain Wilderness'', and dated May 1,
2002, are hereby designated as wilderness, and shall be known as the
Cedar Mountain Wilderness Area.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ``Military Construction
Authorization Act for Fiscal Year 2003''.

TITLE XXI--ARMY

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2104(a)(1), the
Secretary of the Army may acquire real property and carry out military
construction projects for the installations and locations inside the
United States, and in the amounts, set forth in the following table:

Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
State Installation or location Amount
----------------------------------------------------------------------------------------------------------------
Alabama......................................... Anniston Army Depot........................ $1,900,000
Fort Rucker................................ $3,050,000
Redstone Arsenal........................... $1,950,000
Alaska.......................................... Fort Wainwright............................ $111,010,000
Arizona......................................... Fort Huachuca.............................. $10,400,000
Yuma Proving Ground........................ $4,500,000
Arkansas........................................ Pine Bluff Arsenal......................... $18,937,000
California...................................... Monterey Defense Language Institute........ $1,500,000
Colorado........................................ Fort Carson................................ $5,350,000
District of Columbia............................ Walter Reed Army Medical Center............ $9,950,000
Georgia......................................... Fort Benning............................... $74,250,000
Fort Stewart/Hunter Army Air Field......... $26,000,000
Hawaii.......................................... Schofield Barracks......................... $191,000,000
Kansas.......................................... Fort Leavenworth........................... $3,150,000
Fort Riley................................. $51,950,000
Kentucky........................................ Blue Grass Army Depot...................... $5,500,000
Fort Campbell.............................. $106,300,000
Louisiana....................................... Fort Polk.................................. $31,000,000
Maryland........................................ Fort Detrick............................... $22,500,000
Massachusetts................................... Natick Research Development and Engineering $4,100,000
Center....................................
Missouri........................................ Fort Leonard Wood.......................... $15,500,000
New Jersey...................................... Picatinny Arsenal.......................... $7,500,000
New York........................................ Fort Drum.................................. $18,300,000
North Carolina.................................. Fort Bragg................................. $94,900,000
Pennsylvania.................................... Letterkenny Army Depot..................... $1,550,000
Texas........................................... Fort Bliss................................. $10,200,000
Fort Hood.................................. $85,000,000
Virginia........................................ Fort Lee................................... $5,200,000
Washington...................................... Fort Lewis................................. $53,800,000
------------------
Total.................................. $976,247,000
----------------------------------------------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2104(a)(2), the
Secretary of the Army may acquire real property and carry out military
construction projects for the installations and locations outside the
United States, and in the amounts, set forth in the following table:

Army: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Belgium........................ Supreme Headquarters, $13,600,000
Allied Powers Europe..
Germany........................ Area Support Group, $17,200,000
Bamberg.
Campbell Barracks...... $8,300,000
Coleman Barracks....... $1,350,000
Darmstadt.............. $3,500,000
Grafenwoehr............ $69,866,000
Landstuhl.............. $2,400,000
Mannheim............... $42,000,000
Schweinfurt............ $2,000,000
Italy.......................... Vicenza................ $34,700,000
Korea.......................... Camp Carroll........... $20,000,000
Camp Castle............ $6,800,000
Camp Hovey............. $25,000,000
Camp Humphreys......... $36,000,000
Camp Henry............. $10,000,000
K16 Airfield........... $40,000,000
Yongsan................ $12,600,000
---------------
Total.................. $345,316,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using the amounts appropriated pursuant
to the authorization of appropriations in section 2104(a)(3), the
Secretary of the Army may acquire real property and carry out military
construction projects for the installation and location, and in the
amount, set forth in the following table:

Army: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation Amount
------------------------------------------------------------------------
Unspecified Worldwide.......... Unspecified Worldwide.. $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(6)(A), the Secretary of the Army may construct or acquire
family housing units (including land acquisition and supporting
facilities) at the installations, for the purposes, and in the amounts
set forth in the following table:

Army: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Alaska................................ Fort Wainwright.......... 38 Units..................... $17,752,000
Arizona............................... Yuma Proving Ground...... 33 Units..................... $6,100,000
Germany............................... Stuttgart................ 1 Unit....................... $990,000
Korea................................. Yongsan.................. 10 Units..................... $3,100,000
---------------
Total:............... $27,942,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2104(a)(6)(A), the
Secretary of the Army may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of family housing units in an amount not to
exceed $15,653,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2104(a)(6)(A), the Secretary of the Army may improve existing
military family housing units in an amount not to exceed $234,831,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2002, for military
construction, land acquisition, and military family housing functions
of the Department of the Army in the total amount of $2,935,609,000 as
follows:
(1) For military construction projects inside the United
States authorized by section 2101(a), $803,247,000.
(2) For military construction projects outside the United
States authorized by section 2101(b), $345,316,000.
(3) For military construction projects at unspecified
worldwide locations authorized by section 2101(c), $4,000,000.
(4) For unspecified minor construction projects authorized
by section 2805 of title 10, United States Code, $21,550,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $158,796,000.
(6) For military family housing functions:
(A) For construction and acquisition, planning and
design and improvement of military family housing and
facilities, $278,426,000.
(B) For support of military family housing
(including the functions described in section 2833 of
title 10, United States Code), $1,122,274,000.
(7) For the construction of phase 3 of a barracks complex,
Butner Road, at Fort Bragg, North Carolina, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2001 (division B 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-389),
$50,000,000.
(8) For the construction of phase 2 of a barracks complex,
D Street, at Fort Richardson, Alaska, authorized by section
2101(a) of the Military Construction Authorization Act for
Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat.
1280), $21,000,000.
(9) For the construction of phase 2 of a barracks complex,
Nelson Boulevard, at Fort Carson, Colorado, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 115
Stat. 1280), as amended by section 2105 of this Act,
$42,000,000.
(10) For the construction of phase 2 of a basic combat
trainee complex at Fort Jackson, South Carolina, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 115
Stat. 1280), as amended by section 2105 of this Act,
$39,000,000.
(11) For the construction of phase 2 of a barracks complex,
17th and B Streets at Fort Lewis, Washington, authorized by
section 2101(a) of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 115
Stat. 1280), $50,000,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2101 of this
Act may not exceed--
(1) the total amount authorized to be appropriated under
paragraphs (1), (2), and (3) of subsection (a);
(2) $18,000,000 (the balance of the amount authorized under
section 2101(a) for construction of a barracks complex, Main
Post, at Fort Benning, Georgia);
(3) $100,000,000 (the balance of the amount authorized
under section 2101(a) for construction of a barracks complex,
Capron Avenue, at Schofield Barracks, Hawaii);
(4) $50,000,000 (the balance of the amount authorized under
section 2101(a) for construction of a barracks complex, Range
Road, at Fort Campbell, Kentucky); and
(5) $5,000,000 (the balance of the amount authorized under
section 2101(a) for a military construction project at Fort
Bliss, Texas).
(c) Adjustment.--The total amount authorized to be appropriated
pursuant to paragraphs (1) through (11) of subsection (a) is the sum of
the amounts authorized to be appropriated in such paragraphs, reduced
by $13,676,000, which represents the combination of savings resulting
from adjustments to foreign currency exchange rates for military
construction, military family housing construction, and military family
housing support outside the United States and savings resulting from
favorable bids, reduced overhead charges, and cancellations due to
force structure changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2002 PROJECTS.

(a) Modification.--The table in section 2101(a) of the Military
Construction Authorization Act for Fiscal Year 2002 (division B of
Public Law 107-107; 115 Stat. 1281) is amended--
(1) in the item relating to Fort Carson, Colorado, by
striking ``$66,000,000'' in the amount column and inserting
``$67,000,000''; and
(2) in the item relating to Fort Jackson, South Carolina,
by striking ``$65,650,000'' in the amount column and inserting
``$68,650,000''.
(b) Conforming Amendments.--Section 2104(b) of that Act (115 Stat.
1284) is amended--
(1) in paragraph (3), by striking ``$41,000,000'' and
inserting ``$42,000,000''; and
(2) in paragraph (4), by striking ``$36,000,000'' and
inserting ``$39,000,000''.

TITLE XXII--NAVY

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2204(a)(1), the
Secretary of the Navy may acquire real property and carry out military
construction projects for the installations and locations inside the
United States, and in the amounts, set forth in the following table:

Navy: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Arizona........................ Marine Corps Air $3,000,000
Station, Yuma.
California..................... Auxiliary Landing $6,150,000
Field, San Diego (San
Clemente Island).....
Marine Corps Air- $40,870,000
Ground Combat Center,
Twentynine Palms.....
Marine Corps Air $31,930,000
Station, Camp
Pendleton............
Marine Corps Air $12,210,000
Station, Miramar.....
Marine Corps Base, $64,040,000
Camp Pendleton.......
Marine Corps Logistics $4,450,000
Base, Barstow........
Naval Air Station, $35,855,000
Lemoore.
Naval Air Warfare $6,760,000
Center, Point Mugu,
San Nicholas Island..
Naval Air Weapons $10,100,000
Station, China Lake..
Naval Post Graduate $9,020,000
School, Monterey.....
Naval Station, San $12,210,000
Diego................
Connecticut.................... Naval Submarine Base, $7,880,000
New London...........
District of Columbia........... Marine Corps Barracks. $3,700,000
Naval District, $2,690,000
Washington.
Florida........................ Naval Air Base, $13,342,000
Jacksonville.
Naval Air Station, $990,000
Pensacola.
Naval School Explosive $6,350,000
Ordinance Detachment,
Eglin................
Naval Station, Mayport $1,900,000
Whiting Field........ $1,780,000
Georgia........................ Naval Submarine Base, $1,580,000
Kings Bay.
Hawaii......................... Naval Shipyard, Pearl $18,500,000
Harbor.
Naval Station, Pearl $14,690,000
Harbor.
Illinois....................... Naval Training Center, $93,190,000
Great Lakes.
Indiana........................ Crane Naval Surface $11,610,000
Weapons Station......
Maine.......................... Naval Shipyard, $15,200,000
Kittery-Portsmouth.
Maryland....................... Naval Air Facility, $9,680,000
Andrews Air Force
Base.................
United States Naval $1,800,000
Academy.
Mississippi.................... Naval Air Station, $2,850,000
Meridian.
Naval Construction $5,460,000
Battalion Center,
Gulfport.............
Naval Station, $16,160,000
Pascagoula.
Nevada......................... Naval Air Station, $4,010,000
Fallon.
New Jersey..................... Naval Weapons Center, $5,200,000
Lakehurst.
Naval Weapons Station $5,600,000
Earle, Colts Neck....
North Carolina................. Marine Corps Air $10,470,000
Station, Cherry Point.
Marine Corps Air $6,920,000
Station, New River.
Marine Corps Base, $9,570,000
Camp Lejeune.
Rhode Island................... Naval Station, Newport $6,870,000
South Carolina................. Marine Corps Air $13,700,000
Station, Beaufort....
Marine Corps Recruit $10,490,000
Depot, Parris Island.
Naval Weapons Station, $5,740,000
Charlestown..........
Texas.......................... Naval Air Station, $7,150,000
Corpus Christi.
Naval Air Station $8,850,000
Joint Reserve Base,
Fort Worth...........
Naval Air Station, $6,210,000
Kingsville.
Virginia....................... Dam Neck Fleet Combat $3,900,000
Training Center,
Atlantic.............
Little Creek Naval $9,770,000
Amphibious Base.
Marine Corps Combat $24,864,000
Development Command,
Quantico.............
Naval Air Station $16,490,000
Oceana.
Naval Shipyard, $19,660,000
Norfolk, Portsmouth.
Naval Station, Norfolk $171,505,000
Naval Surface Warfare $15,830,000
Center, Dahlgren.....
Naval Weapons Station, $15,020,000
Yorktown.
Washington..................... Naval Air Station, $17,580,000
Whidbey Island.
Keyport Naval Undersea $10,500,000
Warfare Command......
Naval Magazine, Indian $4,030,000
Island.
Naval Station, $45,870,000
Bremerton.
Naval Submarine Base, $22,310,000
Bangor.
Puget Sound Naval $57,132,000
Shipyard, Bremerton..
Strategic Weapons $7,340,000
Facility, Bangor.
Various Locations.............. Host Nation $1,000,000
Infrastructure.
----------------
Total............. $1,009,528,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2204(a)(2), the
Secretary of the Navy may acquire real property and carry out military
construction projects for the locations outside the United States, and
in the amounts, set forth in the following table:

Navy: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Bahrain........................ Naval Support Activity, $25,970,000
Bahrain...............
Diego Garcia................... Diego Garcia, Naval $11,090,000
Support Facility......
Greece......................... Naval Support Activity, $14,800,000
Joint Headquarters
Command, Larissa......
Guam........................... Commander, United $13,400,000
States Naval Forces,
Guam..................
Iceland........................ Naval Air Station, $14,920,000
Keflavik.
Italy.......................... Naval Air Station, $55,660,000
Sigonella.
---------------
Total.............. $135,840,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(5)(A), the Secretary of the Navy may construct or acquire
family housing units (including land acquisition and supporting
facilities) at the installations, for the purposes, and in the amounts
set forth in the following table:

Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
California............................ Naval Air Station, 178 Units.................... $40,981,000
Lemoore.................
Marine Corps Air-Ground 76 Units..................... $19,425,000
Combat Center,
Twentynine Palms........
Connecticut........................... Naval Submarine Base, New 100 Units.................... $24,415,000
London..................
Florida............................... Naval Station, Mayport... 1 Unit....................... $329,000
Hawaii................................ Marine Corps Base, 65 Units..................... $24,797,000
Kaneohe Bay.............
Maine................................. Naval Air Station, 26 Units..................... $5,800,000
Brunswick...............
Mississippi........................... Naval Air Station, 56 Units..................... $9,755,000
Meridian................
North Carolina........................ Marine Corps Base, Camp 317 Units.................... $43,650,000
LeJeune.................
Virginia.............................. Marine Corps Base, 290 Units.................... $41,843,000
Quantico................
United Kingdom....................... Joint Maritime Facility, 62 Units..................... $18,524,000
St. Mawgan..............
---------------
Total.................... $229,519,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriation in section 2204(a)(5)(A), the
Secretary of the Navy may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of military family housing units in an
amount not to exceed $11,281,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2204(a)(5)(A), the Secretary of the Navy may improve existing
military family housing units in an amount not to exceed $136,816,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2002 PROJECT.

(a) Modification.--The table in section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 2002 (division B of
Public Law 107-107; 115 Stat. 1286) is amended--
(1) in the item relating to Naval Station, Norfolk,
Virginia, by striking ``$139,270,000'' in the amount column and
inserting ``$139,550,000''; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$1,059,030,000''.
(b) Conforming Amendment.--Section 2204(b)(2) of that Act (115
Stat. 1289) is amended by striking ``$33,240,000'' and inserting
``$33,520,000''.

TITLE XXIII--AIR FORCE

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION
PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2304(a)(1), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for the installations and locations
inside the United States, and in the amounts, set forth in the
following table:

Air Force: Inside the United States
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama........................ Maxwell Air Force Base. $8,000,000
Alaska......................... Clear Air Station...... $14,400,000
Eielson Air Force Base. $21,600,000
Arizona........................ Davis-Monthan Air Force $19,270,000
Base.
Luke Air Force Base.... $13,000,000
Arkansas....................... Little Rock Air Force $25,600,000
Base.
California..................... Beale Air Force Base... $11,740,000
Travis Air Force Base.. $9,600,000
Vandenberg Air Force $10,500,000
Base.
Colorado....................... Buckley Air National $17,700,000
Guard Base.
Peterson Air Force Base $2,000,000
Schriever Air Force $5,700,000
Base.
United States Air Force $9,400,000
Academy.
District of Columbia........... Bolling Air Force Base. $1,500,000
Florida........................ Elgin Air Force Base... $4,250,000
Hurlburt Field......... $15,000,000
McDill Air Force Base.. $21,000,000
Tyndall Air Force Base. $8,100,000
Georgia........................ Robins Air Force Base.. $5,400,000
Hawaii......................... Hickam Air Force Base.. $1,350,000
Kansas......................... McConnell Air Force $7,500,000
Base.
Louisiana...................... Barksdale Air Force $10,900,000
Base.
Maryland....................... Andrews Air Force Base. $9,600,000
Massachusetts.................. Hanscom Air Force Base. $7,700,000
Mississippi.................... Keesler Air Force Base. $22,000,000
Nevada......................... Nellis Air Force Base.. $37,350,000
New Jersey..................... McGuire Air Force Base. $24,631,000
New Mexico..................... Cannon Air Force Base.. $4,650,000
Holloman Air Force Base $4,650,000
Kirtland Air Force Base $21,900,000
North Carolina................. Pope Air Force Base.... $9,700,000
Ohio........................... Wright-Patterson Air $25,000,000
Force Base.
Oklahoma....................... Tinker Air Force Base.. $7,500,000
South Carolina................. Shaw Air Force Base.... $6,800,000
Texas.......................... Lackland Air Force Base $37,300,000
Laughlin Air Force Base $8,000,000
Sheppard Air Force Base $24,000,000
Utah........................... Hill Air Force Base.... $14,500,000
Virginia....................... Langley Air Force Base. $71,940,000
---------------
Total.................. $580,731,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2304(a)(2), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for the installations and locations
outside the United States, and in the amounts, set forth in the
following table:

Air Force: Outside the United States
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Diego Garcia................... Diego Garcia........... $17,100,000
Germany........................ Ramstein Air Force Base $71,783,000
Guam........................... Andersen Air Force Base $31,000,000
Italy.......................... Aviano Air Force Base.. $6,600,000
Japan.......................... Kadena Air Force Base.. $6,000,000
Korea.......................... Osan Air Base.......... $15,100,000
Spain.......................... Naval Station, Rota.... $31,818,000
Turkey......................... Incirlik Air Force Base $1,550,000
United Kingdom................. Royal Air Force, $19,000,000
Fairford.
Royal Air Force, $13,400,000
Lakenheath.
Wake Island.................... Wake Island............ $24,900,000
---------------
Total.............. $238,251,000
------------------------------------------------------------------------

(c) Unspecified Worldwide.--Using the amounts appropriated pursuant
to the authorization of appropriations in section 2304(a)(3), the
Secretary of the Air Force may acquire real property and carry out
military construction projects for the installation and location, and
in the amount, set forth in the following table:

Air Force: Unspecified Worldwide
------------------------------------------------------------------------
Location Installation Amount
------------------------------------------------------------------------
Unspecified Worldwide.......... Classified Location.... $32,562,000
---------------
Total.............. $32,562,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

(a) Construction and Acquisition.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire
family housing units (including land acquisition and supporting
facilities) at the installations, for the purposes, and in the amounts
set forth in the following table:

Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
State or Country Installation or location Purpose Amount
----------------------------------------------------------------------------------------------------------------
Arizona............................... Luke Air Force Base...... 140 Units.................... $18,954,000
California............................ Travis Air Force Base.... 110 Units.................... $24,320,000
Colorado.............................. Peterson Air Force Base.. 2 Units...................... $959,000
United States Air Force 71 Units..................... $12,424,000
Academy.................
Delaware.............................. Dover Air Force Base..... 112 Units.................... $19,615,000
Florida............................... Eglin Air Force Base..... Housing Office............... $597,000
Eglin Air Force Base..... 134 Units.................... $15,906,000
MacDill Air Force Base... 96 Units..................... $18,086,000
Hawaii................................ Hickam Air Force Base.... 96 Units..................... $29,050,000
Idaho................................. Mountain Home Air Force 95 Units..................... $24,392,000
Base....................
Kansas................................ McConnell Air Force Base. Housing Maintenance Facility. $1,514,000
Maryland.............................. Andrews Air Force Base... 53 Units..................... $9,838,000
Andrews Air Force Base... 52 Units..................... $8,807,000
Mississippi........................... Columbus Air Force Base.. Housing Office............... $412,000
Keesler Air Force Base... 117 Units.................... $16,505,000
Missouri.............................. Whiteman Air Force Base.. 97 Units..................... $17,107,000
Montana............................... Malmstrom Air Force Base. 18 Units..................... $4,717,000
New Mexico............................ Holloman Air Force Base.. 101 Units.................... $20,161,000
North Carolina........................ Pope Air Force Base...... Housing Maintenance Facility. $991,000
Seymour Johnson Air Force 126 Units.................... $18,615,000
Base....................
North Dakota.......................... Grand Forks Air Force 150 Units.................... $30,140,000
Base....................
Minot Air Force Base..... 112 Units.................... $21,428,000
Minot Air Force Base..... 102 Units.................... $20,315,000
Oklahoma.............................. Vance Air Force Base..... 59 Units..................... $11,423,000
South Dakota.......................... Ellsworth Air Force Base. Housing Maintenance Facility. $447,000
Ellsworth Air Force Base. 22 Units..................... $4,794,000
Texas................................. Dyess Air Force Base..... 85 Units..................... $14,824,000
Randolph Air Force Base.. Housing Maintenance Facility. $447,000
Randolph Air Force Base.. 112 Units.................... $14,311,000
Virginia.............................. Langley Air Force Base... Housing Office............... $1,193,000
Germany............................... Ramstein Air Force Base.. 19 Units..................... $8,534,000
Korea................................. Osan Air Base............ 113 Units.................... $35,705,000
Osan Air Base............ Housing Supply Warehouse..... $834,000
United Kingdom........................ Royal Air Force, Housing Office and $2,203,000
Lakenheath.............. Maintenance Facility........
--------------------------------
Total.................... $429,568,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated pursuant to
the authorization of appropriations in section 2304(a)(6)(A), the
Secretary of the Air Force may carry out architectural and engineering
services and construction design activities with respect to the
construction or improvement of military family housing units in an
amount not to exceed $34,188,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, Unites States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2304(a)(6)(A), the Secretary of the Air Force may improve
existing military family housing units in an amount not to exceed
$217,286,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

TITLE XXIV--DEFENSE AGENCIES

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) Inside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2404(a)(1), the
Secretary of Defense may acquire real property and carry out military
construction projects for the installations and locations inside the
United States, and in the amounts, set forth in the following table:

Defense Agencies: Inside the United States
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Missile Defense Agency......... Kauai, Hawaii.......... $23,400,000
Defense Intelligence Agency.... Bolling Air Force Base, $121,958,000
District of Columbia..
Defense Logistics Agency....... Columbus, Ohio......... $5,021,000
Defense Supply Center, $5,500,000
Richmond, Virginia....
Naval Air Station, New $9,500,000
Orleans, Louisiana....
Travis Air Force Base, $16,000,000
California............
Defense Threat Reduction Agency Fort Belvoir, Virginia. $76,388,000
Department of Defense Fort Bragg, North $2,036,000
Dependents Schools............ Carolina..............
Fort Jackson, South $2,506,000
Carolina..............
Marine Corps Base, Camp $12,138,000
Lejeune, North
Carolina..............
Marine Corps Base, $1,418,000
Quantico, Virginia....
United States Military $4,347,000
Academy, West Point,
New York..............
Fort Meade, Maryland... $4,484,000
Joint Chiefs of Staff.......... Peterson Air Force $18,400,000
Base, Colorado.
National Security Agency....... Fort Bragg, North $30,800,000
Carolina.
Special Operations Command..... Hurlburt Field, Florida $11,100,000
Naval Amphibious Base, $14,300,000
Little Creek, Virginia
TRICARE Management Activity.... Elmendorf Air Force $10,400,000
Base, Alaska..........
Hickam Air Force Base, $2,700,000
Hawaii.
---------------
Total.............. $372,396,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated pursuant
to the authorization of appropriations in section 2404(a)(2), the
Secretary of Defense may acquire real property and carry out military
construction projects for the installations and locations outside the
United States, and in the amounts, set forth in the following table:

Defense Agencies: Outside the United States
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Defense Logistics Agency....... Andersen Air Force $17,586,000
Base, Guam.
Naval Forces Marianas $6,000,000
Islands, Guam.........
Naval Station, Rota, $23,400,000
Spain.................
Royal Air Force, $17,000,000
Fairford, United
Kingdom...............
Yokota Air Base, Japan. $23,000,000
Department of Defense Kaiserslautern, Germany $957,000
Dependents Schools............
Lajes Field, Azores, $1,192,000
Portugal..............
Seoul, Korea........... $31,683,000
Supreme Headquarters, $1,573,000
Allied Powers Europe,
Belgium...............
Spangdahlem Air Base, $997,000
Germany...............
Vicenza, Italy......... $2,117,000
TRICARE Management Activity.... Naval Support Activity, $41,449,000
Naples, Italy.........
Spangdahlem Air Base, $39,629,000
Germany...............
---------------
Total.............. $206,583,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code, and using
amounts appropriated pursuant to the authorization of appropriations in
section 2404(a)(8)(A), the Secretary of Defense may improve existing
military family housing units in an amount not to exceed $5,530,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2404(a)(4), the Secretary of Defense may
carry out energy conservation projects under section 2865 of title 10,
United States Code, in the amount of $49,531,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be appropriated for
fiscal years beginning after September 30, 2002, for military
construction, land acquisition, and military family housing functions
of the Department of Defense (other than the military departments) in
the total amount of $1,417,779,000, as follows:
(1) For military construction projects inside the United
States authorized by section 2401(a), $335,796,000.
(2) For military construction projects outside the United
States authorized by section 2401(b), $206,583,000.
(3) For unspecified minor construction projects under
section 2805 of title 10, United States Code, $16,293,000.
(4) For contingency construction projects of the Secretary
of Defense under section 2804 of title 10, United States Code,
$10,000,000.
(5) For architectural and engineering services and
construction design under section 2807 of title 10, United
States Code, $45,432,000.
(6) For energy conservation projects authorized by section
2403 of this Act, $49,531,000.
(7) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C.
2687 note), $545,138,000.
(8) For military family housing functions:
(A) For improvement of military family housing and
facilities, $5,480,000.
(B) For support of military family housing
(including functions described in section 2833 of title
10, United States Code), $42,432,000.
(C) For credit to the Department of Defense Housing
Improvement Fund established by section 2883(a) of
title 10, United States Code, as amended by section
2801 of this Act, $2,000,000.
(9) For payment of a claim against the Hospital Replacement
project at Elmendorf Air Force Base, Alaska, $10,400,000.
(10) For the construction of phase 4 of an ammunition
demilitarization facility at Pueblo Chemical Activity,
Colorado, authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1997 (division B
of Public Law 104-201; 110 Stat. 2775), as amended by section
2406 of the Military Construction Authorization Act for Fiscal
Year 2000 (division B of Public Law 106-65; 113 Stat. 839) and
section 2407 of this Act, $38,000,000.
(11) For the construction of phase 5 of an ammunition
demilitarization facility at Newport Army Depot, Indiana,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 1999 (division B of Public
Law 105-261; 112 Stat. 2193), as amended by section 2406 of
this Act, $61,494,000.
(12) For the construction of phase 5 of an ammunition
demilitarization facility at Aberdeen Proving Ground, Maryland,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 1999 (division B of Public
Law 105-261; 112 Stat. 2193), as amended by section 2406 of the
Military Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1299),
$30,600,000.
(13) For the construction of phase 3 of an ammunition
demilitarization facility at Blue Grass Army Depot, Kentucky,
authorized by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 2000 (division B of Public
Law 106-65; 113 Stat. 835), as amended by section 2405 of the
Military Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1298) and section
2405 of this Act, $10,300,000.
(14) For the construction of phase 3 of an ammunition
demilitarization support facility at Blue Grass Army Depot,
Kentucky, authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 2000 (division B
of Public Law 106-65; 113 Stat. 835), $8,300,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title
10, United States Code, and any other cost variation authorized by law,
the total cost of all projects carried out under section 2401 of this
Act may not exceed--
(1) the total amount authorized to be appropriated under
paragraphs (1) and (2) of subsection (a); and
(2) $26,200,000 (the balance of the amount authorized under
section 2401(a) for the construction of the Defense Threat
Reduction Center, Fort Belvoir, Virginia).
(c) Adjustment.--The total amount authorized to be appropriated
pursuant to paragraphs (1) through (14) of subsection (a) is the sum of
the amounts authorized to be appropriated in such paragraphs, reduced
by $42,833,000, which represents the combination of savings resulting
from adjustments to foreign currency exchange rates for military
construction, military family housing construction, and military family
housing support outside the United States and savings resulting from
favorable bids, reduced overhead charges, and cancellations due to
force structure changes.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
2000 PROJECT.

(a) Modification.--The table in section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 2000 (division B of
Public Law 106-65; 113 Stat. 835), as amended by section 2405 of the
Military Construction Authorization Act for Fiscal Year 2002 (division
B of Public Law 107-107; 115 Stat. 1298), is further amended--
(1) under the agency heading relating to Chemical
Demilitarization, in the item relating to Blue Grass Army
Depot, Kentucky, by striking ``$254,030,000'' in the amount
column and inserting ``$290,325,000''; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$748,245,000''.
(b) Conforming Amendment.--Section 2405(b)(3) of that Act (113
Stat. 839), as so amended, is further amended by striking
``$231,230,000'' and inserting ``$267,525,000''.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
1999 PROJECT.

(a) Modification.--The table in section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1999 (division B of
Public Law 105-261; 112 Stat. 2193), as amended by section 2406 of the
Military Construction Authorization Act for Fiscal Year 2002 (division
B of Public Law 107-107; 115 Stat. 1299), is amended--
(1) under the agency heading relating to Chemical
Demilitarization, in the item relating to Newport Army Depot,
Indiana, by striking ``$191,550,000'' in the amount column and
inserting ``$293,853,000''; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$829,919,000''.
(b) Conforming Amendment.--Section 2404(b)(2) of that Act (112
Stat. 2196) is amended by striking ``$162,050,000'' and inserting
``$264,353,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR
1997 PROJECT.

(a) Modification.--The table in section 2401(a) of the Military
Construction Authorization Act for Fiscal Year 1997 (division B of
Public Law 104-201; 110 Stat. 2775), as amended by section 2406 of the
Military Construction Authorization Act for Fiscal Year 2000 (division
B of Public Law 106-65; 113 Stat. 839), is further amended--
(1) under the agency heading relating to Chemical
Demilitarization Program, in the item relating to Pueblo
Chemical Activity, Colorado, by striking ``$203,500,000'' in
the amount column and inserting ``$261,000,000''; and
(2) by striking the amount identified as the total in the
amount column and inserting ``$607,454,000''.
(b) Conforming Amendment.--Section 2406(b)(2) of that Act (110
Stat. 2779), as so amended, is further amended by striking
``$203,500,000'' and inserting ``$261,000,000''.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the North
Atlantic Treaty Organization Security Investment program as provided in
section 2806 of title 10, United States Code, in an amount not to
exceed the sum of the amount authorized to be appropriated for this
purpose in section 2502 and the amount collected from the North
Atlantic Treaty Organization as a result of construction previously
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

Funds are hereby authorized to be appropriated for fiscal years
beginning after September 30, 2002, for contributions by the Secretary
of Defense under section 2806 of title 10, United States Code, for the
share of the United States of the cost of projects for the North
Atlantic Treaty Organization Security Investment program authorized by
section 2501, in the amount of $168,200,000.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

(a) In General.--There are authorized to be appropriated for fiscal
years beginning after September 30, 2002, for the costs of acquisition,
architectural and engineering services, and construction of facilities
for the Guard and Reserve Forces, and for contributions there for,
under chapter 1803 of title 10, United States Code (including the cost
of acquisition of land for those facilities), the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the United
States, $170,793,000; and
(B) for the Army Reserve, $86,789,000.
(2) For the Department of the Navy, for the Naval and
Marine Corps Reserve, $66,971,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the United
States, $119,266,000; and
(B) for the Air Force Reserve, $68,576,000.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
SPECIFIED BY LAW.

(a) Expiration of Authorizations After Three Years.--Except as
provided in subsection (b), all authorizations contained in titles XXI
through XXVI for military construction projects, land acquisition,
family housing projects and facilities, and contributions to the North
Atlantic Treaty Organization Security Investment program (and
authorizations of appropriations therefor) shall expire on the later
of--
(1) October 1, 2005; or
(2) the date of the enactment of an Act authorizing funds
for military construction for fiscal year 2006.
(b) Exception.--Subsection (a) shall not apply to authorizations
for military construction projects, land acquisition, family housing
projects, and facilities, and contributions to the North Atlantic
Treaty Organization Security Investment program (and authorizations of
appropriations therefor) for which appropriated funds have been
obligated before the later of--
(1) October 1, 2005; or
(2) the date of the enactment of an Act authorized funds
for fiscal year 2005 for military construction projects, land
acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000
PROJECTS.

(a) Extension of Certain Projects.--Notwithstanding section 2701 of
the Military Construction Authorization Act for Fiscal Year 2000
(division B of Public Law 106-65; 113 Stat. 841), authorizations set
forth in the tables in subsection (b), as provided in section 2302 or
2601 of that Act, shall remain in effect until October 1, 2003, or the
date of the enactment of an Act authorizing funds for military
construction for fiscal year 2004, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are as
follows:

Air Force: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma.............................. Tinker Air Force Base.... Replace Family Housing (41 $6,000,000
Units)......................
----------------------------------------------------------------------------------------------------------------

Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Virginia.............................. Fort Pickett............. Multi-Purpose Range Complex- $13,500,000
Heavy.......................
----------------------------------------------------------------------------------------------------------------

(c) Extension of Additional Project.--Notwithstanding any other
provision of law, the authorization set forth in the table in
subsection (d), as provided in section 8160 of the Department of
Defense Appropriations Act, 2000 (Public Law 106-79; 113 Stat. 1274),
shall remain in effect until October 1, 2003, or the date of the
enactment of an Act authorizing funds for military construction for
fiscal year 2004, whichever is later.
(d) Table for Extension of Additional Project.--The table referred
to in subsection (c) is as follows:

Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Pennsylvania.......................... Connellsville............ Readiness Center............. $1,700,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999
PROJECTS.

(a) Extension.--Notwithstanding section 2701 of the Military
Construction Authorization Act for Fiscal Year 1999 (division B of
Public Law 105-261; 112 Stat. 2199), authorizations set forth in the
table in subsection (b), as provided in section 2302 of that Act and
extended by section 2702 of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat.
1301), shall remain in effect until October 1, 2003, or the date of the
enactment of an Act authorizing funds for military construction for
fiscal year 2004, whichever is later.
(b) Table.--The table referred to in subsection (a) is as follows:

Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Delaware.............................. Dover Air Force Base..... Replace Family Housing (55 $8,988,000
Units)......................
Florida............................... Patrick Air Force Base... Replace Family Housing (46 $9,692,000
Units)......................
New Mexico............................ Kirtland Air Force Base.. Replace Family Housing (37 $6,400,000
Units)......................
Ohio.................................. Wright-Patterson Air Replace Family Housing (40 $5,600,000
Force Base.............. Units)......................
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take
effect on the later of--
(1) October 1, 2002; or
(2) the date of the enactment of this Act.

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.

(a) Authorized Utilities and Services.--Section 2872a(b) of title
10, United States Code, is amended by adding at the end the following
new paragraphs:
``(11) Firefighting and fire protection services.
``(12) Police protection services.''.
(b) Leasing of Housing.--Subsection (a) of section 2874 of such
title is amended to read as follows:
``(a) Lease Authorized.--(1) The Secretary concerned may enter into
contracts for the lease of housing units that the Secretary determines
are suitable for use as military family housing or military
unaccompanied housing.
``(2) The Secretary concerned shall utilize housing units leased
under paragraph (1) as military family housing or military
unaccompanied housing, as appropriate.''.
(c) Repeal of Interim Lease Authority.--Section 2879 of such title
is repealed.
(d) Space Limitations by Pay Grade.--Section 2880(b)(2) of such
title is amended by striking ``unless the unit is located on a military
installation''.
(e) Department of Defense Housing Fund.--(1) Section 2883 of such
title is amended by striking subsections (a), (b), and (c) inserting
the following new subsections (a) and (b):
``(a) Establishment.--There is hereby established on the books of
the Treasury an account to be known as the Department of Defense
Housing Improvement Fund (in this section referred to as the `Fund').
``(b) Credits to Fund.--There shall be credited to the Fund the
following:
``(1) Amounts authorized for and appropriated to the Fund.
``(2) Subject to subsection (e), any amounts that the
Secretary of Defense transfers, in such amounts as are provided
for in appropriation Acts, to the Fund from amounts authorized
and appropriated to the Department of Defense for the
acquisition or construction of military family housing or
military unaccompanied housing.
``(3) Proceeds from the conveyance or lease of property or
facilities under section 2878 of this title for the purpose of
carrying out activities under this subchapter with respect to
military family housing or military unaccompanied housing.
``(4) Income derived from any activities under this
subchapter with respect to military family housing or military
unaccompanied housing, income and gains realized from
investments under section 2875 of this title, and any return of
capital invested as part of such investments.
``(5) Any amounts that the Secretary of the Navy transfers
to the Fund pursuant to section 2814(i)(3) of this title,
subject to the restrictions on the use of the transferred
amounts specified in that section.''.
(2) Such section is further amended--
(A) by redesignating subsections (d) through (g) as (c)
through (f), respectively;
(B) in subsection (c), as so redesignated--
(i) in the subsection heading, by striking
``Funds'' and inserting ``Fund'';
(ii) in paragraph (1)--
(I) by striking ``subsection (e)'' and
inserting ``subsection (d)''; and
(II) by striking ``Department of Defense
Family Housing Improvement Fund'' and inserting
``Fund'';
(iii) by striking paragraph (2); and
(iv) by redesignating paragraph (3) as paragraph
(2);
(C) in subsection (d), as so redesignated, by striking
``required to be used to satisfy the obligation'';
(D) in subsection (e), as so redesignated, by striking ``a
Fund under paragraph (1)(B) or (2)(B) of subsection (c)'' and
inserting ``the Fund under subsection (b)(2)''; and
(E) in subsection (f), as so redesignated--
(i) in paragraph (1), by striking ``$850,000,000''
and inserting ``$1,700,000,000''; and
(ii) in paragraph (2), by striking ``$150,000,000''
and inserting ``$300,000,000''.
(f) Transfer of Unobligated Amounts.--(1) The Secretary of Defense
shall transfer to the Department of Defense Housing Improvement Fund
established under section 2883(a) of title 10, United States Code (as
amended by subsection (e)), any amounts in the Department of Defense
Family Housing Improvement Fund and the Department of Defense Military
Unaccompanied Housing Improvement that remain available for obligation
as of the date of the enactment of this Act.
(2) Amounts transferred to the Department of Defense Housing
Improvement Fund under paragraph (1) shall be merged with amounts in
that Fund, and shall be available for the same purposes, and subject to
the same conditions and limitations, as other amounts in that Fund.
(g) Conforming Amendments.--(1) Paragraph (3) of section 2814(i) of
such title is amended--
(A) by striking subparagraph (A) and inserting the
following new subparagraph (A):
``(A) The Secretary may transfer funds from the Ford Island
Improvement Account to the Department of Defense Housing Improvement
Fund established by section 2883(a) of this title.''; and
(B) in subparagraph (B), by striking ``a fund'' and
inserting ``the Fund''.
(2) Section 2871(6) of such title is amended by striking
``Department of Defense Family Housing Improvement Fund or the
Department of Defense Military Unaccompanied Housing Improvement Fund''
and inserting ``Department of Defense Housing Improvement Fund''.
(3) Section 2875(e) of such title is amended by striking
``Department of Defense Family Housing Improvement Fund or the
Department of Defense Military Unaccompanied Housing Improvement Fund''
and inserting ``Department of Defense Housing Improvement Fund''.
(h) Clerical Amendments.--(1) The section heading for section 2874
of such title is amended to read as follows:
``Sec. 2874. Leasing of housing''.
(2) The section heading for section 2883 of such title is amended
to read as follows:
``Sec. 2883. Department of Defense Housing Improvement Fund''.
(3) The table of sections at the beginning subchapter IV of chapter
169 of such title is amended--
(A) by striking the item relating to section 2874 and
inserting the following new item:

``2874. Leasing of housing.'';
(B) by striking the item relating to section 2879; and
(C) by striking the item relating to section 2883 and
inserting the following new item:

``2883. Department of Defense Housing Improvement Fund.''.

SEC. 2802. MODIFICATION OF AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS
AS PART OF ENVIRONMENTAL RESPONSE ACTION.

(a) Authority to Carry Out Unauthorized Projects.--Subsection (a)
of section 2810 of title 10, United States Code, is amended to read as
follows:
``(a) Authority to Carry Out Unauthorized Construction Projects.--
The Secretary concerned may carry out a military construction project
not otherwise authorized by law if the Secretary determines that the
project is necessary to carry out a response under chapter 160 of this
title or the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (42 U.S.C. 9601 et seq.).''.
(b) Congressional Notification.--Subsection (b) of such section is
amended by striking ``(1)'' and the first sentence and inserting
``Congressional Notification.--(1) When a decision is made to carry out
a military construction project under this section that exceeds the
amount specified in section 2805(b)(1) of this title, the Secretary
concerned shall submit a report in writing to the appropriate
committees of Congress on that decision.''.
(c) Definition.--Subsection (c) of such section is amended--
(1) by inserting ``Response Defined.--'' after ``(c)''; and
(2) by striking ``action''.

SEC. 2803. LEASING OF MILITARY FAMILY HOUSING IN KOREA.

Paragraph (3) of section 2828(e) of title 10, United States Code,
is amended to read as follows:
``(3) In addition to the 450 units of family housing referred to in
paragraph (1) for which the maximum lease amount is $25,000 per unit
per year, the Secretary of the Army may lease in Korea--
``(A) not more than 1,175 units of family housing subject
to that maximum lease amount; and
``(B) not more than 2,400 units of family housing subject
to a maximum lease amount of $35,000 per unit per year.''.

SEC. 2804. PILOT HOUSING PRIVATIZATION AUTHORITY FOR ACQUISITION OR
CONSTRUCTION OF MILITARY UNACCOMPANIED HOUSING.

(a) In General.--(1) Subchapter IV of chapter 169 of title 10,
United States Code, is amended by inserting after section 2881 the
following new section:
``Sec. 2881a. Pilot projects for acquisition or construction of
military unaccompanied housing
``(a) Pilot Projects Authorized.--The Secretary of the Navy may
carry out not more than 3 pilot projects under the authority of this
section or another provision of this subchapter to use the private
sector for the acquisition or construction of military unaccompanied
housing in the United States, including any territory or possession of
the United States.
``(b) Assignment of Members and Basic Allowance for Housing.--(1)
The Secretary of the Navy may assign members of the armed forces to
housing units acquired or constructed under the pilot projects, and
such housing units shall be considered as quarters of the United States
or a housing facility under the jurisdiction of a uniformed service for
purposes of section 403 of title 37.
``(2) Notwithstanding section 403(n)(2) of title 37, the Secretary
of Defense may set specific higher rates of partial basic allowance for
housing for a member of the armed forces who is assigned to a housing
unit acquired or constructed under the pilot projects. Any increase in
the rate of partial basic allowance for housing to accommodate the
pilot programs shall be in addition to any partial basic allowance for
housing that the member may otherwise be eligible to receive under
section 403(n) of title 37. A member may not sustain a reduction in
partial basic allowance for housing as a result of assignment to a
housing unit acquired or constructed under the pilot projects.
``(c) Funding.--(1) The Department of Defense Housing Improvement
Fund shall be used to carry out activities under the pilot projects.
``(2) Subject to 90 days prior notification to the appropriate
committees of Congress, such additional amounts as the Secretary of
Defense considers necessary may be transferred to the Department of
Defense Housing Improvement Fund from amounts appropriated for
construction of military unaccompanied housing projects in military
construction accounts. The amounts so transferred shall be merged with
and to be available for the same purposes and for the same period of
time as amounts appropriated directly to the Fund.
``(d) Reports.--(1) The Secretary of the Navy shall transmit to the
appropriate committees of Congress a report describing--
``(A) each contract for the acquisition of military
unaccompanied housing that the Secretary proposes to solicit
under the pilot projects;
``(B) each conveyance or lease proposed under section 2878
of this title in furtherance of the pilot projects; and
``(C) the proposed partial basic allowance for housing
rates for each contract as they vary by grade of the member and
how they compare to basic allowance for housing rates for other
contracts written under the authority of the pilot programs.
``(2) The report shall describe the proposed contract, conveyance,
or lease and the intended method of participation of the United States
in the contract, conveyance, or lease and provide a justification of
such method of participation. The report shall be submitted not later
than 90 days before the date on which the Secretary issues the contract
solicitation or offers the conveyance or lease.
``(e) Expiration.--Notwithstanding section 2885 of this title, the
authority of the Secretary of the Navy to enter into a contract under
the pilot programs shall expire September 30, 2007.''.
(2) The table of sections at the beginning of such subchapter is
amended by inserting after the item relating to section 2881 the
following new item:

``2881a. Pilot projects for acquisition or construction of military
unaccompanied housing.''.
(b) Conforming Amendment.--Section 2871(7) of title 10, United
States Code, is amended by inserting before the period at the end the
following: ``and transient housing intended to be occupied by members
of the armed forces on temporary duty''.

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.

(a) In General.--Chapter 159 of title 10, United States Code, is
amended by inserting after section 2684 the following new section:
``Sec. 2684a. Agreements to limit encroachments and other constraints
on military training, testing, and operations
``(a) Agreements Authorized.--The Secretary of a military
department may enter into an agreement with a private entity described
in subsection (b) to address the use or development of real property in
the vicinity of a military installation for purposes of--
``(1) limiting any development or use of the property that
would otherwise be incompatible with the mission of the
installation; or
``(2) preserving habitat on the property in a manner that
is compatible with both--
``(A) current or anticipated environmental
restrictions that would or might otherwise restrict,
impede, or otherwise interfere, whether directly or
indirectly, with current or anticipated military
training, testing, or operations on the installation;
and
``(B) current or anticipated military training,
testing, or operations on the installation.
``(b) Covered Private Entities.--A private entity referred to in
subsection (a) is any private entity that has as its stated principal
organizational purpose or goal the conservation, restoration, or
preservation of land and natural resources, or a similar purpose or
goal, as determined by the Secretary concerned.
``(c) Inapplicability of Certain Contract Requirements.--Chapter 63
of title 31 shall not apply to any agreement entered into under this
section.
``(d) Acquisition and Acceptance of Property and Interests.--(1) An
agreement with a private entity under this section--
``(A) may provide for the private entity to acquire all
right, title, and interest in and to any real property, or any
lesser interest in the property, as may be appropriate for
purposes of this section; and
``(B) shall provide for the private entity to transfer to
the United States, upon the request of the United States, any
property or interest so acquired.
``(2) Property or interests may not be acquired pursuant to an
agreement under this section unless the owner of the property or
interests, as the case may be, consents to the acquisition.
``(3) An agreement under this section providing for the acquisition
of property or interests under paragraph (1)(A) shall provide for the
sharing by the United States and the private entity concerned of the
costs of the acquisition of the property or interests.
``(4) The Secretary concerned shall identify any property or
interests to be acquired pursuant to an agreement under this section.
The property or interests shall be limited to the minimum property or
interests necessary to ensure that the property concerned is developed
and used in a manner appropriate for purposes of this section.
``(5) Notwithstanding any other provision of law, the Secretary
concerned may accept on behalf of the United States any property or
interest to be transferred to the United States under paragraph (1)(B).
``(6) The Secretary concerned may, for purposes of the acceptance
of property or interests under this subsection, accept an appraisal or
title documents prepared or adopted by a non-Federal entity as
satisfying the applicable requirements of section 301 of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970 (42 U.S.C. 4651) or section 355 of the Revised Statutes (40 U.S.C.
255) if the Secretary finds that the appraisal or title documents
substantially comply with the requirements.
``(e) Acquisition of Water Rights.--The authority of the Secretary
of a military department to enter into an agreement under subsection
(a) for the acquisition of real property (or an interest therein)
includes the authority to support the purchase of water rights from any
available source when necessary to support or protect the mission of a
military installation.
``(f) Additional Terms and Conditions.--The Secretary concerned may
require such additional terms and conditions in an agreement under this
section as the Secretary considers appropriate to protect the interests
of the United States.
``(g) Funding.--(1) Except as provided in paragraph (2), funds
authorized to be appropriated for operation and maintenance of the
Army, Navy, Marine Corps, Air Force, or Defense-wide activities,
including funds authorized to be appropriated for the Legacy Resources
Management Program, may be used to enter into agreements under this
section.
``(2) In the case of a military installation operated primarily
with funds authorized to be appropriated for research, development,
test, and evaluation, funds authorized to be appropriated for the Army,
Navy, Marine Corps, Air Force, or Defense-wide activities for research,
development, test, and evaluation may be used to enter into agreements
under this section with respect to the installation.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
2684 the following new item:

``2684a. Agreements to limit encroachments and other constraints on
military training, testing, and
operations.''.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL RESOURCE
CONSERVATION PURPOSES.

(a) Conveyance Authority.--(1) Chapter 159 of title 10, United
States Code, is amended by inserting after section 2694 the following
new section:
``Sec. 2694a. Conveyance of surplus real property for natural resource
conservation
``(a) Authority to Convey.--The Secretary of a military department
may convey to an eligible recipient described in subsection (b) any
surplus real property that--
``(1) is under the administrative control of the Secretary;
``(2) is suitable and desirable for conservation purposes;
``(3) has been made available for public benefit transfer
for a sufficient period of time to potential claimants; and
``(4) is not subject to a pending request for transfer to
another Federal agency or for conveyance to any other qualified
recipient for public benefit transfer under the real property
disposal processes and authorities established pursuant to the
Federal Property and Administrative Services Act of 1949 (40
U.S.C. 471, et seq.).
``(b) Eligible Recipients.--The conveyance of surplus real property
under subsection (a) may be made to any of the following:
``(A) A State or political subdivision of a State.
``(B) A nonprofit organization that exists for the
primary purpose of conservation of natural resources on
real property.
``(c) Revisionary Interest and Other Deed Requirements.--(1) The
deed of conveyance of any surplus real property conveyed under
subsection (a) disposed of under this subsection shall require the
property to be used and maintained for the conservation of natural
resources in perpetuity. If the Secretary of the military department
that made the conveyance determines at any time that the property is
not being used or maintained for such purpose, then, at the option of
the Secretary, all or any portion of the property shall revert to the
United States.
``(2) The deed of conveyance may permit the recipient of the
property--
``(A) to convey the property to another eligible entity
described in subsection (b), subject to the approval of the
Secretary of the military department that made the conveyance
and subject to the same covenants and terms and conditions as
provided in the deed from the United States; and
``(B) to conduct incidental revenue-producing activities on
the property that are compatible with the use of the property
for conservation purposes.
``(3) The deed of conveyance may contain such additional terms,
reservations, restrictions, and conditions as the Secretary of the
military department considers appropriate to protect the interests of
the United States.
``(d) Release of Covenants.--The Secretary of the military
department that conveys real property under subsection (a), with the
concurrence of the Secretary of Interior, may grant a release from a
covenant included in the deed of conveyance of the property under
subsection (c) on the condition that the recipient of the property pay
the fair market value, as determined by the Secretary of the military
department, of the property at the time of the release of the covenant.
The Secretary of the military department may reduce the amount required
to be paid under this subsection to account for the value of the
natural resource conservation benefit that has accrued to the United
States during the period the covenant was in effect, if the benefit was
not taken into account in determining the original consideration for
the conveyance.
``(e) Limitations.--A conveyance under subsection (a) shall not be
used in settlement of any litigation, dispute, or claim against the
United States, or as a condition of allowing any defense activity under
any Federal, State, or local permitting or review process. The
Secretary of a military department may make a conveyance under
subsection (a), with the restrictions specified in subsection (c), to
establish a mitigation bank, but only if the establishment of the
mitigation bank does not occur in order to satisfy any condition for
permitting military activity under a Federal, State, or local
permitting or review process.
``(f) Consideration.--In fixing the consideration for the
conveyance of real property under subsection (a) or in determining the
amount of any reduction of the amount to be paid for the release of a
covenant under subsection (d), the Secretary of the military department
concerned shall take into consideration any benefit that has accrued or
may accrue to the United States from the use of such property for the
conservation of natural resources.
``(g) Relation to Other Conveyance Authorities.--(1) The Secretary
of a military department may not make a conveyance under this section
of any real property to be disposed of under a base closure law in a
manner that is inconsistent with the requirements and conditions of the
base closure law.
``(2) In the case of real property on Guam, the Secretary of a
military department may not make a conveyance under this section unless
the Government of Guam has been first afforded the opportunity to
acquire the real property as authorized by section 1 of Public Law 106-
504 (114 Stat. 2309).
``(h) Definitions.--In this section:
``(1) The term `State' includes the District of Columbia,
the Commonwealth of Puerto Rico, the Commonwealth of the
Northern Marianas, and the territories and possessions of the
United States.
``(2) The term `base closure law' means the following:
``(A) Section 2687 of this title.
``(B) Title II of the Defense Authorization
Amendments and Base Closure and Realignment Act of 1988
(10 U.S.C. 2687 note).
``(C) The Defense Base Closure and Realignment Act
of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note).
``(D) Any other similar authority for the closure
or realignment of military installations that is
enacted after the date of the enactment of the National
Defense Authorization Act for Fiscal Year 2003.''.
(2) The table of sections at the beginning of such chapter is
amended by inserting after the item relating to section 2694 the
following new item:

``2694a. Conveyance of surplus real property for natural resource
conservation.''.
(b) Acceptance of Funds to Cover Administrative Expenses.--Section
2695(b) of such title is amended by adding at the end the following new
paragraph:
``(5) The conveyance of real property under section 2694a
of this title.''.
(c) Agreements With Nonprofit Natural Resource Conservation
Organizations.--Section 2701(d) of such title is amended--
(1) in paragraph (1), by striking ``with any State or local
government agency, or with any Indian tribe,'' and inserting
``any State or local government agency, any Indian tribe, or
any nonprofit conservation organization''; and
(2) by striking paragraph (3) and inserting the following
new paragraph:
``(3) Definitions.--In this subsection:
``(A) The term `Indian tribe' has the meaning given
such term in section 101(36) of Comprehensive
Environmental Response, Compensation, and Liability Act
of 1980 (42 U.S.C. 9601(36)).
``(B) The term `nonprofit conservation
organization' means any non-governmental nonprofit
organization whose primary purpose is conservation of
open space or natural resources.''.

SEC. 2813. NATIONAL EMERGENCY EXEMPTION FROM SCREENING AND OTHER
REQUIREMENTS OF MCKINNEY-VENTO HOMELESS ASSISTANCE ACT
FOR PROPERTY USED IN SUPPORT OF RESPONSE ACTIVITIES.

Section 501 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11411) is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following new
subsection (i):
``(i) Applicability to Certain Property During Emergencies.--The
screening requirements and other provisions of this section shall not
apply to any property that is excess property or surplus property or
that is described as unutilized or underutilized property if the
property is subject to a request for conveyance or use for the purpose
of directly supporting activities in response to--
``(1) a war or national emergency declared in accordance
with the National Emergencies Act (50 U.S.C. 1601 et seq.); or
``(2) an emergency or major disaster declared in accordance
with the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.).''.

SEC. 2814. DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY
MAINTENANCE COSTS.

(a) Program Authorized.--The Secretary of Defense may conduct a
demonstration program to assess the feasibility and desirability of
including facility maintenance requirements in construction contracts
for military construction projects for the purpose of determining
whether such requirements facilitate reductions in the long-term
facility maintenance costs of the military departments.
(b) Contracts.--Not more than 12 contracts may contain requirements
referred to in subsection (a) for the purpose of the demonstration
program under this section. The demonstration program may only cover
contracts entered into on or after the date of the enactment of this
Act.
(c) Effective Period of Requirements.--The effective period of a
requirement referred to in subsection (a) that is included in a
contract for the purpose of the demonstration program under this
program may not exceed five years.
(d) Reporting Requirements.--Not later than January 31, 2005, the
Secretary of Defense shall submit to Congress a report on the
demonstration program authorized by this section and the related
Department of the Army demonstration program authorized by section 2814
of the Military Construction Authorization Act for Fiscal Year 2002
(division B of Public Law 107-107; 115 Stat. 1310; 10 U.S.C. 2809
note), including the following:
(1) A description of all contracts entered into under the
demonstration programs.
(2) An evaluation of the demonstration programs and a
description of the experience of the Secretary of Defense and
the Secretary of the Army respect to such contracts.
(3) Any recommendations, including recommendations for the
termination, continuation, or expansion of the demonstration
programs, that the Secretary of Defense or the Secretary of the
Army considers appropriate.
(e) Expiration.--The authority under subsection (a) to include
requirements referred to in that subsection in contracts under the
demonstration program under this section shall expire on September 30,
2006.
(f) Funding.--Amounts authorized to be appropriated for a fiscal
year for military construction shall be available for the demonstration
program under this section in such fiscal year.
(g) Conforming Amendment.--Section 2814 of the Military
Construction Authorization Act for Fiscal Year 2002 (division B of
Public Law 107-107; 115 Stat. 1310; 10 U.S.C. 2809 note) is amended--
(1) by striking subsection (d); and
(2) by redesignating subsections (e) and (f) as subsections
(d) and (e), respectively.

SEC. 2815. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY
INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT OR
PROVIDE MILITARY FAMILY HOUSING.

(a) 1988 Law.--Section 204(e)(1) of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note) is amended by striking the last sentence.
(b) 1990 Law.--Section 2905(f)(1) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10
U.S.C. 2687 note) is amended by striking the last sentence.

Subtitle C--Land Conveyances

PART I--ARMY CONVEYANCES

SEC. 2821. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER REQUIRED FOR
NATIONAL GUARD PURPOSES.

(a) Conveyance Authorized.--The Secretary of the Army may convey to
an eligible entity described subsection (b) all right, title, and
interest of the United States in and to any parcel of real property,
including any improvements thereon, in the State of Alaska described in
subsection (c) if the Secretary determines the conveyance would be in
the public interest.
(b) Eligible Recipients.--The following entities shall be eligible
to receive real property under subsection (a):
(1) The State of Alaska.
(2) A governmental entity in the State of Alaska.
(3) A Native Corporation (as defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
(4) The Metlakatla Indian Community.
(c) Covered Property.--Subsection (a) applies to real property
located in the State of Alaska that--
(1) is under the jurisdiction of the Department of the Army
and, before December 2, 1980, was under such jurisdiction for
the use of the Alaska National Guard;
(2) is located in a unit of the National Wildlife Refuge
System designated in the Alaska National Interest Lands
Conservation Act (Public Law 96-487; 16 U.S.C. 668dd note);
(3) is excess to the needs of the Alaska National Guard and
the Department of Defense; and
(4) the Secretary determines that--
(A) the anticipated cost to the United States of
retaining the property exceeds the value of such
property; or
(B) the condition of the property makes it
unsuitable for retention by the United States.
(d) Consideration.--The conveyance of real property under this
section shall, at the election of the Secretary, be for no
consideration or for consideration in an amount determined by the
Secretary to be appropriate under the circumstances.
(e) Use of Consideration.--If consideration is received for the
conveyance of real property under subsection (a), the Secretary may use
the amounts received, in such amounts as are provided in appropriations
Acts, to pay for--
(1) the cost of a survey described in subsection (f) with
respect to the property;
(2) the cost of carrying out any environmental assessment,
study, or analysis, and any remediation, that may be required
under Federal law, or is considered appropriate by the
Secretary, in connection with the property or the conveyance of
the property; and
(3) any other costs incurred by the Secretary in conveying
the property.
(f) Description of Property.--The exact acreage and legal
description of any real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary.
(g) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with a conveyance of
real property under this section as the Secretary considers appropriate
to protect the interests of the United States.

SEC. 2822. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

(a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the City of Hopkinsville, Kentucky, all
right, title, and interest of the United States in and to a parcel of
real property at Fort Campbell, Kentucky, consisting of approximately
50 acres and containing an abandoned railroad spur for the purpose of
permitting the City to use the property for storm water management,
recreation, transportation, and other public purposes.
(b) Description of Property.--The acreage of the real property to
be conveyed under subsection (a) has been determined by the Secretary
through a legal description outlining such acreage. No further survey
of the property before transfer is necessary.
(c) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

SEC. 2823. LAND CONVEYANCE, ARMY RESERVE TRAINING CENTER, BUFFALO,
MINNESOTA.

(a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the Buffalo Independent School District 877
of Buffalo, Minnesota (in this section referred to as the ``School
District''), all right, title, and interest of the United States in and
to a parcel of real property, including improvements thereon, that is
located at 800 8th Street, N.E., in Buffalo, Minnesota, and contains a
former Army Reserve Training Center, which is being used by the School
District as the site of the Phoenix Learning Center.
(b) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary. The cost
of the survey shall be borne by the School District.
(c) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

SEC. 2824. LAND CONVEYANCE, FORT BLISS, TEXAS

(a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the County of El Paso, Texas (in this section
referred to as the ``County''), all right, title, and interest of the
United States in and to a parcel of real property, including
improvements thereon, consisting of approximately 44 acres at Fort
Bliss, Texas, for the purpose of facilitating the construction by the
State of Texas of a nursing home for veterans of the Armed Forces.
(b) Reversionary Interest.--If, at the end of the five-year period
beginning on the date the Secretary makes the conveyance under
subsection (a), the Secretary determines that a nursing home for
veterans is not in operation on the conveyed real property, all right,
title, and interest in and to the property, including any improvements
thereon, shall revert to the United States, and the United States shall
have the right of immediate entry onto the property. Any determination
of the Secretary under this subsection shall be made on the record
after an opportunity for a hearing.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary. The cost
of the survey shall be borne by the County.
(d) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

SEC. 2825. LAND CONVEYANCE, FORT HOOD, TEXAS.

(a) Conveyance Authorized.--The Secretary of the Army may convey,
without consideration, to the Veterans Land Board of the State of Texas
(in this section referred to as the ``Board''), all right, title, and
interest of the United States in and to a parcel of real property,
including any improvements thereon, consisting of approximately 174
acres at Fort Hood, Texas, for the purpose of permitting the Board to
establish a State-run cemetery for veterans.
(b) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under subsection (a)
shall be determined by a survey satisfactory to the Secretary. The cost
of the survey shall be borne by the Board.
(c) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

SEC. 2826. LAND CONVEYANCE, FORT MONMOUTH, NEW JERSEY.

(a) Conveyance Authorized.--The Secretary of the Army may convey by
sale all right, title, and interest of the United States in and to a
parcel of land, consisting of approximately 63.95 acres of military
family housing known as Howard Commons, that comprises a portion of
Fort Monmouth, New Jersey.
(b) Competitive Bid Requirement.--The Secretary shall use
competitive procedures for the sale authorized by subsection (a).
(c) Consideration.--As consideration for the conveyance authorized
under subsection (a), the recipient of the land shall pay an amount
that is no less than fair market value, as determined by the Secretary.
Such recipient may, as in-kind consideration, build replacement
military family housing or rehabilitate existing military family
housing at Fort Monmouth, New Jersey, as agreed upon by the Secretary.
Any proceeds received by the Secretary not used to construct or
rehabilitate such military family housing shall be deposited in the
special account in the Treasury established pursuant to section 204(h)
of the Federal property and Administrative Services Act of 1949 (40
U.S.C. 485(h)).
(d) Description of Parcel.--The exact acreage and legal description
of the parcel to be conveyed under subsection (a) shall be determined
by a survey that is satisfactory to the Secretary. The cost of the
survey shall be borne by the recipient of the parcel.
(e) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyance
under subsection (a) as the Secretary considers appropriate to protect
the interests of the United States.

PART II--NAVY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, MARINE CORPS AIR STATION, MIRAMAR, SAN
DIEGO, CALIFORNIA.

(a) Conveyance Authorized.--The Secretary of the Navy may convey to
the ENPEX Corporation, Incorporated (in this section referred to as the
``Corporation''), all right, title, and interest of the United States
in and to a parcel of real property, including any improvements
thereon, at Marine Corps Air Station Miramar, San Diego, California,
consisting of approximately 60 acres and appurtenant easements and any
other necessary interests in real property for the purpose of
permitting the Corporation to use the property for the production of
electric power and related ancillary activities.
(b) Consideration.--(1) As consideration for the conveyance under
subsection (a), the Corporation shall--
(A) convey to the United States all right, title, and
interest of the Corporation in and to a parcel of real property
in the San Diego area that is suitable for military family
housing, as determined by the Secretary; and
(B) if the parcel conveyed under subparagraph (A) does not
contain housing units suitable for use as military family
housing, design and construct such military family housing
units and supporting facilities as the Secretary considers
appropriate.
(2) The total combined value of the real property and military
family housing conveyed by the Corporation under this subsection shall
be at least equal to the fair market value of the real property
conveyed to the Secretary under subsection (a), including any severance
costs arising from any diminution of the value or utility of other
property at Marine Corps Air Station Miramar attributable to the
prospective future use of the property conveyed under subsection (a).
(3) The Secretary shall determine the fair market value of the real
property to be conveyed under subsection (a) and the fair market value
of the consideration to be provided under this subsection. Such
determinations shall be final.
(c) Reversionary Interest.--(1) Subject to paragraph (2), if the
Secretary determines at any time that the property conveyed under
subsection (a) is not being used in accordance with the purpose of the
conveyance specified in such subsection, all right, title, and interest
in and to the property, including any improvements thereon, shall
revert, at the option of the Secretary, to the United States, and the
United States shall have the right of immediate entry onto the
property. Any determination of the Secretary under this subsection
shall be made on the record after an opportunity for a hearing.
(2) If Marine Corps Air Station Miramar is no longer used as a
Federal aviation facility, paragraph (1) shall no longer apply, and the
Secretary shall release, without consideration, the reversionary
interest retained by the United States under such paragraph.
(d) Administrative Expenses.--(1) The Corporation shall make funds
available to the Secretary to cover costs to be incurred by the
Secretary, or reimburse the Secretary for costs incurred, to carry out
the conveyance under subsection (a), including survey costs, costs
related to environmental documentation, and other administrative costs
related to the conveyance. This paragraph does not apply to costs
associated with the removal of explosive ordnance from the parcel and
environmental remediation of the parcel.
(2) Section 2695(c) of title 10 United States Code, shall apply to
any amount received under paragraph (1). If the amounts received in
advance under such paragraph exceed the costs actually incurred by the
Secretary, the Secretary shall refund the excess amount to the
Corporation.
(e) Descriptions of Property.--The exact acreage and legal
descriptions of the real property to be conveyed by the Secretary under
subsection (a) and the property to be conveyed by the Corporation under
subsection (b) shall be determined by a survey satisfactory to the
Secretary.
(f) Exemptions.--Section 2696 of title 10, United States Code, does
not apply to the conveyance authorized by subsection (a), and the
authority to make the conveyance shall not be considered to render the
property excess or underutilized.
(g) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the conveyances
authorized by this section as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2832. BOUNDARY ADJUSTMENTS, MARINE CORPS BASE, QUANTICO, AND
PRINCE WILLIAM FOREST PARK, VIRGINIA.

(a) Boundary Adjustments and Related Transfers.--(1) The Secretary
of the Navy and the Secretary of the Interior shall adjust the
boundaries of Marine Corps Base, Quantico, Virginia, and Prince William
Forest Park, Virginia, to conform to the boundaries depicted on the map
entitled ``Map Depicting Boundary Adjustments Proposed With March 10,
1998, MOU Between Prince William Forest Park and Marine Corps Base
Quantico''.
(2) As part of the boundary adjustment, the Secretary of the Navy
shall transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of the Interior approximately 352 acres
of land, as depicted on the map, and the Secretary of the Interior
shall retain administrative jurisdiction over approximately 1,034 acres
of land, which is a portion of the Department of Interior land commonly
known as the Quantico Special Use Permit Land.
(3) As part of the boundary adjustment, the Secretary of the
Interior shall transfer, without reimbursement, to the administrative
jurisdiction of the Secretary of the Navy approximately 3398 acres of
land, as depicted on the map.
(b) Effect of Subsequent Determination Property is Excess.--(1) If
land transferred or retained under paragraph (2) or (3) of subsection
(a) is subsequently determined to be excess to the needs of the Federal
agency that received or retained the land, the head of that Federal
agency shall offer to return administrative jurisdiction over the land,
without reimbursement, to the Federal agency from which the land was
received or retained.
(2) If the offer under paragraph (1) is not accepted within 90 days
or is otherwise rejected, the head of the Federal agency holding the
land may proceed to dispose of the land under then current law and
regulations governing the disposal of excess property.

PART III--AIR FORCE CONVEYANCES

SEC. 2841. LAND CONVEYANCES, WENDOVER AIR FORCE BASE AUXILIARY FIELD,
NEVADA.

(a) Conveyances Authorized To West Wendover, Nevada.--(1) The
Secretary of the Interior may convey, without consideration, to the
City of West Wendover, Nevada, all right, title, and interest of the
United States in and to the following:
(A) The lands at Wendover Air Force Base Auxiliary Field,
Nevada, identified in Easement No. AFMC-HL-2-00-334 that are
determined by the Secretary of the Air Force to be no longer
required for Air Force purposes.
(B) The lands at Wendover Air Force Base Auxiliary Field
identified for disposition on the map entitled ``West Wendover,
Nevada-Excess'', dated January 5, 2001, that are determined by
the Secretary of the Air Force to be no longer required for Air
Force purposes.
(2) The purposes of the conveyances under this subsection are--
(A) to permit the establishment and maintenance of runway
protection zones; and
(B) to provide for the development of an industrial park
and related infrastructure.
(3) The map referred to in paragraph (1)(B) shall be on file and
available for public inspection in the offices of the Director of the
Bureau of Land Management and the Elko District Office of the Bureau of
Land Management.
(b) Conveyance Authorized to Tooele County, Utah.--(1) The
Secretary of the Interior may convey, without consideration, to Tooele
County, Utah, all right, title, and interest of the United States in
and to the lands at Wendover Air Force Base Auxiliary Field identified
in Easement No. AFMC-HL-2-00-318 that are determined by the Secretary
of the Air Force to be no longer required for Air Force purposes.
(2) The purpose of the conveyance under this subsection is to
permit the establishment and maintenance of runway protection zones and
an aircraft accident potential protection zone as necessitated by
continued military aircraft operations at the Utah Test and Training
Range.
(c) Phased Conveyances.--The land conveyances authorized by
subsections (a) and (b) may be conducted in phases. To the extent
practicable, the first phase of the conveyances should involve at least
3,000 acres.
(d) Management of Conveyed Lands.--The lands conveyed under
subsections (a) and (b) shall be managed by the City of West Wendover,
Nevada, City of Wendover, Utah, Tooele County, Utah, and Elko County,
Nevada--
(1) in accordance with the provisions of an Interlocal
Memorandum of Agreement entered into between the Cities of West
Wendover, Nevada, and Wendover, Utah, Tooele County, Utah, and
Elko County, Nevada, providing for the coordinated management
and development of the lands for the economic benefit of both
communities; and
(2) in a manner that is consistent with such provisions of
the easements referred to subsections (a) and (b) that, as
jointly determined by the Secretary of the Air Force and
Secretary of the Interior, remain applicable and relevant to
the operation and management of the lands following conveyance
and are consistent with the provisions of this section.
(e) Additional Terms and Conditions.--The Secretary of the Air
Force and the Secretary of the Interior may jointly require such
additional terms and conditions in connection with the conveyances
required by subsections (a) and (b) as the Secretaries consider
appropriate to protect the interests of the United States.

Subtitle D--Other Matters

SEC. 2861. EASEMENT FOR CONSTRUCTION OF ROADS OR HIGHWAYS, MARINE CORPS
BASE, CAMP PENDLETON, CALIFORNIA.

Section 2851(a) of the Military Construction Authorization Act for
Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat. 2219), as
amended by section 2867 of the National Defense Authorization Act for
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1334) is amended in the
first sentence by striking ``easement to construct'' and all that
follows through the period at the end and inserting ``easement to
construct, operate, and maintain a restricted access highway,
notwithstanding any provision of State law that would otherwise prevent
the Secretary from granting the easement or the Agency from
constructing, operating, or maintaining the restricted access
highway.''.

SEC. 2862. SALE OF EXCESS TREATED WATER AND WASTEWATER TREATMENT
CAPACITY, MARINE CORPS BASE, CAMP LEJEUNE, NORTH
CAROLINA.

(a) Sale Authorized.--The Secretary of the Navy may provide to
Onslow County, North Carolina, or any authority or political
subdivision organized under the laws of North Carolina to provide
public water or sewage services in Onslow County (in this section
referred to as the ``County''), treated water and wastewater treatment
services from facilities at Marine Corps Base, Camp Lejeune, North
Carolina, if the Secretary determines that the provision of these
utility services is in the public interest and will not interfere with
current or future operations at Camp Lejeune.
(b) Inapplicability of Certain Requirements.--Section 2686 of title
10, United States Code, shall not apply to the provision of public
water or sewage services authorized by subsection (a).
(c) Consideration.--As consideration for the receipt of public
water or sewage services under subsection (a), the County shall pay to
the Secretary an amount (in cash or in kind) equal to the fair market
value of the services. Amounts received in cash shall be credited to
the base operation and maintenance accounts of Camp Lejeune.
(d) Expansion.--The Secretary may make minor expansions and
extensions and permit connections to the public water or sewage systems
of the County in order to furnish the services authorized under
subsection (a). The Secretary shall restrict the provision of services
to the County to those areas in the County where residential
development would be compatible with current and future operations at
Camp Lejeune.
(e) Administrative Expenses.--The Secretary may require the County
to reimburse the Secretary for the costs incurred by the Secretary to
provide public water or sewage services to the County under subsection
(a).
(2) Section 2695(c) of title 10 United States Code, shall apply to
any amount received under this subsection.
(f) Additional Terms and Conditions.--The Secretary may require
such additional terms and conditions in connection with the provision
of public water or sewage services under this section as the Secretary
considers appropriate to protect the interests of the United States.

SEC. 2863. RATIFICATION OF AGREEMENT REGARDING ADAK NAVAL COMPLEX,
ALASKA, AND RELATED LAND CONVEYANCES.

(a) Ratification of Agreement.--The document entitled the
``Agreement Concerning the Conveyance of Property at the Adak Naval
Complex'', and dated September 20, 2000, executed by the Aleut
Corporation, the Department of the Interior, and the Department of the
Navy, together with any technical amendments or modifications to the
boundaries that may be agreed to by the parties, is hereby ratified,
confirmed, and approved and the terms, conditions, procedures,
covenants, reservations, indemnities and other provisions set forth in
the Agreement are declared to be obligations and commitments of the
United States as a matter of Federal law. Modifications to the maps and
legal descriptions of lands to be removed from the National Wildlife
Refuge System within the military withdrawal on Adak Island set forth
in Public Land Order 1949 may be made only upon agreement of all
Parties to the Agreement and notification given to the Committee on
Resources of the House of Representatives and the Committee on Energy
and Natural Resources of the Senate. The acreage conveyed to the United
States by the Aleut Corporation under the Agreement, as modified, shall
be at least 36,000 acres.
(b) Removal of Lands From Refuge.--Effective on the date of
conveyance to the Aleut Corporation of the Adak Exchange Lands as
described in the Agreement, all such lands shall be removed from the
National Wildlife Refuge System and shall neither be considered as part
of the Alaska Maritime National Wildlife Refuge nor subject to any laws
pertaining to lands within the boundaries of the Alaska Maritime
National Wildlife Refuge. The conveyance restrictions imposed by
section 22(g) of the Alaska Native Claims Settlement Act (43 U.S.C.
1621(g)) for land in the National Wildlife Refuge System shall not
apply. The Secretary shall adjust the boundaries of the Refuge so as to
exclude all interests in lands and land rights, surface and subsurface,
received by the Aleut Corporation in accordance with this section and
the Agreement.
(c) Relation to Alaska Native Claims Settlement Act.--Lands and
interests therein exchanged and conveyed by the United States pursuant
to this section shall be considered and treated as conveyances of lands
or interests therein under the Alaska Native Claims Settlement Act,
except that receipt of such lands and interests therein shall not
constitute a sale or disposition of land or interests received pursuant
to such Act. The public easements for access to public lands and waters
reserved pursuant to the Agreement are deemed to satisfy the
requirements and purposes of section 17(b) of the Alaska Native Claims
Settlement Act.
(d) Reacquisition Authority.--The Secretary of the Interior is
authorized to acquire by purchase or exchange, on a willing seller
basis only, any land conveyed to the Aleut Corporation under the
Agreement and this section. In the event any of the lands are
subsequently acquired by the United States, they shall be automatically
included in the National Wildlife Refuge System. The laws and
regulations applicable to refuge lands shall then apply to these lands
and the Secretary shall then adjust the boundaries accordingly.
(e) Conveyance of Navy Personal Property.--Notwithstanding any
other provision of law, and for the purposes of the transfer of
property authorized by this section, Department of Navy personal
property that remains on Adak Island is deemed related to the real
property and shall be conveyed by the Department of the Navy to the
Aleut Corporation, at no additional cost, when the related real
property is conveyed by the Department of the Interior.
(f) Additional Conveyance.--The Secretary of the Interior shall
convey to the Aleut Corporation those lands identified in the Agreement
as the former landfill sites without charge to the Aleut Corporation's
entitlement under the Alaska Native Claims Settlement Act.
(g) Valuation.--For purposes of section 21(c) of the Alaska Native
Claims Settlement Act, the receipt of all property by the Aleut
Corporation shall be entitled to a tax basis equal to fair value on
date of transfer. Fair value shall be determined by replacement cost
appraisal.
(h) Certain Property Treated as Not Developed.--Any property,
including, but not limited to, appurtenances and improvements, received
pursuant to this section shall, for purposes of section 21(d) of the
Alaska Native Claims Settlement Act and section 907(d) of the Alaska
National Interest Lands Conservation Act be treated as not developed
until such property is actually occupied, leased (other than leases for
nominal consideration to public entities) or sold by the Aleut
Corporation, or, in the case of a lease or other transfer by the Aleut
Corporation to a wholly owned development subsidiary, actually
occupied, leased, or sold by the subsidiary.
(i) Certain Lands Unavailable for Selection.--Upon conveyance to
the Aleut Corporation of the lands described in Appendix A of the
Agreement, the lands described in Appendix C of the Agreement will
become unavailable for selection under the Alaska Native Claims
Settlement Act.
(j) Maps.--The maps included as part of Appendix A to the Agreement
depict the lands to be conveyed to the Aleut Corporation. The maps are
on file at the Region 7 Office of the United States Fish and Wildlife
Service and the offices of the Alaska Maritime National Wildlife Refuge
in Homer, Alaska. The written legal descriptions of the lands to be
conveyed to the Aleut Corporation are also part of Appendix A. In case
of discrepancies, the maps shall control.
(k) Definitions.--In this section:
(1) The term ``Agreement'' means the agreement ratified,
confirmed, and approved under subsection (a).
(2) The term ``Aleut Corporation'' means the Alaskan Native
Regional Corporation known as the Aleut Corporation
incorporated in the State of Alaska pursuant to the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et seq.).

SEC. 2864. SPECIAL REQUIREMENTS FOR ADDING MILITARY INSTALLATION TO
CLOSURE LIST.

Section 2914(d) of the Defense Base Closure and Realignment Act of
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note),
as added by section 3003 of the Military Construction Authorization Act
for Fiscal Year 2002 (division B of Public Law 107-107; 155 Stat,
1346), is amended--
(1) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively; and
(2) by inserting after paragraph (3) the following new
paragraph (4):
``(4) Limitation on authority to recommend additional
installation for closure.--Notwithstanding paragraph (3), the
decision of the Commission to add a military installation to
the Secretary's list of installations recommended for closure
must be unanimous, and at least two members of the Commission
must have visited the installation during the period of the
Commission's review of the list.''.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

(a) Authorization of Appropriations.--Funds are hereby authorized
to be appropriated to the Department of Energy for fiscal year 2003 for
the activities of the National Nuclear Security Administration in
carrying out programs necessary for national security in the amount of
$8,034,349,000, to be allocated as follows:
(1) For weapons activities, $5,937,000,000.
(2) For defense nuclear nonproliferation activities,
$1,074,630,000.
(3) For naval reactors, $706,790,000.
(4) For the Office of the Administrator for Nuclear
Security, $315,929,000.
(b) Authorization of New Plant Projects.--From funds referred to in
subsection (a) that are available for carrying out plant projects, the
Secretary may carry out new plant projects as follows:
(1) For weapons activities, the following new plant
projects:
Project 03-D-101, Sandia underground reactor
facility (SURF), Sandia National Laboratories,
Albuquerque, New Mexico, $2,000,000.
Project 03-D-103, project engineering and design,
various locations, $15,539,000.
Project 03-D-121, gas transfer capacity expansion,
Kansas City Plant, Kansas City, Missouri, $4,000,000.
Project 03-D-122, prototype purification facility,
Y-12 plant, Oak Ridge, Tennessee, $20,800,000.
Project 03-D-123, special nuclear materials
requalification, Pantex plant, Amarillo, Texas,
$3,000,000.
(2) For naval reactors, the following new plant project:
Project 03-D-201, cleanroom technology facility,
Bettis Atomic Power Laboratory, West Mifflin,
Pennsylvania, $7,200,000.

SEC. 3102. ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES.

(a) Authorization of Appropriations.--Funds are hereby authorized
to be appropriated to the Department of Energy for fiscal year 2003 for
environmental restoration and waste management activities and other
defense activities in carrying out programs necessary for national
security in the amount of $7,366,510,000, to be allocated as follows:
(1) For defense environmental restoration and waste
management, $4,544,133,000.
(2) For defense environmental management cleanup reform in
carrying out environmental restoration and waste management
activities necessary for national security programs,
$800,000,000.
(3) For defense facilities closure projects,
$1,091,314,000.
(4) For defense environmental management privatization,
$158,399,000.
(5) For other defense activities in carrying out programs
necessary for national security, $457,664,000.
(6) For defense nuclear waste disposal for payment to the
Nuclear Waste Fund established in section 302(c) of the Nuclear
Waste Policy Act of 1982 (42 U.S.C. 10222(c)), $315,000,000.
(b) Authorization of New Plant Project.--From funds referred to in
subsection (a) that are available for carrying out plant projects, the
Secretary may carry out, for environmental restoration and waste
management activities, the following new plant project:
Project 03-D-403, immobilized high-level waste interim
storage facility, Richland, Washington, $6,363,000.

Subtitle B--Department of Energy National Security Authorizations
General Provisions

SEC. 3120. SHORT TITLE; DEFINITIONS.

(a) Short Title.--This subtitle may be cited as the ``Department of
Energy National Security Authorizations General Provisions Act''.
(b) Definitions.--In this subtitle:
(1) The term ``DOE national security authorization'' means
an authorization of appropriations for activities of the
Department of Energy in carrying out programs necessary for
national security.
(2) The term ``congressional defense committees'' means--
(A) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(B) the Committee on Armed Services and the
Committee on Appropriations of the House of
Representatives.
(3) The term ``minor construction threshold'' means
$5,000,000.

SEC. 3121. REPROGRAMMING.

(a) In General.--Except as provided in sections 3129 and 3130, the
Secretary of Energy may not use amounts appropriated pursuant to a DOE
national security authorization for a program--
(1) in amounts that exceed, in a fiscal year, the amount
authorized for that program by that authorization for that
fiscal year; or
(2) which has not been presented to, or requested of,
Congress,
until the Secretary submits to the congressional defense committees a
report referred to in subsection (b) with respect to that program and a
period of 30 days has elapsed after the date on which such committees
receive the report.
(b) Report.--The report referred to in subsection (a) is a report
containing a full and complete statement of the action proposed to be
taken and the facts and circumstances relied upon in support of the
proposed action.
(c) Computation of Days.--In the computation of the 30-day period
under subsection (a), there shall be excluded any day on which either
House of Congress is not in session because of an adjournment of more
than three days to a day certain.
(d) Limitations.--
(1) Total amount obligated.--In no event may the total
amount of funds obligated pursuant to a DOE national security
authorization for a fiscal year exceed the total amount
authorized to be appropriated by that authorization for that
fiscal year.
(2) Prohibited items.--Funds appropriated pursuant to a DOE
national security authorization may not be used for an item for
which Congress has specifically denied funds.

SEC. 3122. MINOR CONSTRUCTION PROJECTS.

(a) Authority.--Using operation and maintenance funds or facilities
and infrastructure funds authorized by a DOE national security
authorization, the Secretary of Energy may carry out minor construction
projects.
(b) Annual Report.--The Secretary shall submit to the congressional
defense committees on an annual basis a report on each exercise of the
authority in subsection (a) during the preceding fiscal year. Each
report shall provide a brief description of each minor construction
project covered by the report.
(c) Cost Variation Reports to Congressional Committees.--If, at any
time during the construction of any minor construction project
authorized by a DOE national security authorization, the estimated cost
of the project is revised and the revised cost of the project exceeds
the minor construction threshold, the Secretary shall immediately
submit to the congressional defense committees a report explaining the
reasons for the cost variation.
(d) Minor Construction Project Defined.--In this section, the term
``minor construction project'' means any plant project not specifically
authorized by law for which the approved total estimated cost does not
exceed the minor construction threshold.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

(a) In General.--
(1) Construction cost ceiling.--Except as provided in
paragraph (2), construction on a construction project which is
in support of national security programs of the Department of
Energy and was authorized by a DOE national security
authorization may not be started, and additional obligations in
connection with the project above the total estimated cost may
not be incurred, whenever the current estimated cost of the
construction project exceeds by more than 25 percent the higher
of--
(A) the amount authorized for the project; or
(B) the amount of the total estimated cost for the
project as shown in the most recent budget
justification data submitted to Congress.
(2) Exception where notice-and-wait given.--An action
described in paragraph (1) may be taken if--
(A) the Secretary of Energy has submitted to the
congressional defense committees a report on the
actions and the circumstances making such action
necessary; and
(B) a period of 30 days has elapsed after the date
on which the report is received by the committees.
(3) Computation of days.--In the computation of the 30-day
period under paragraph (2), there shall be excluded any day on
which either House of Congress is not in session because of an
adjournment of more than three days to a day certain.
(b) Exception for Minor Projects.--Subsection (a) does not apply to
a construction project with a current estimated cost of less than the
minor construction threshold.

SEC. 3124. FUND TRANSFER AUTHORITY.

(a) Transfer to Other Federal Agencies.--The Secretary of Energy
may transfer funds authorized to be appropriated to the Department of
Energy pursuant to a DOE national security authorization to other
Federal agencies for the performance of work for which the funds were
authorized. Funds so transferred may be merged with and be available
for the same purposes and for the same time period as the
authorizations of the Federal agency to which the amounts are
transferred.
(b) Transfer Within Department of Energy.--
(1) Transfers permitted.--Subject to paragraph (2), the
Secretary of Energy may transfer funds authorized to be
appropriated to the Department of Energy pursuant to a DOE
national security authorization between any such
authorizations. Amounts of authorizations so transferred may be
merged with and be available for the same purposes and for the
same period as the authorization to which the amounts are
transferred.
(2) Maximum amounts.--Not more than 5 percent of any such
authorization may be transferred between authorizations under
paragraph (1). No such authorization may be increased or
decreased by more than 5 percent by a transfer under such
paragraph.
(c) Limitations.--The authority provided by this subsection to
transfer authorizations--
(1) may be used only to provide funds for items relating to
activities necessary for national security programs that have a
higher priority than the items from which the funds are
transferred; and
(2) may not be used to provide funds for an item for which
Congress has specifically denied funds.
(d) Notice to Congress.--The Secretary of Energy shall promptly
notify the Committee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives of any transfer of
funds to or from any DOE national security authorization.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

(a) Requirement of Conceptual Design.--
(1) In general.--Subject to paragraph (2) and except as
provided in paragraph (3), before submitting to Congress a
request for funds for a construction project that is in support
of a national security program of the Department of Energy, the
Secretary of Energy shall complete a conceptual design for that
project.
(2) Requests for conceptual design funds.--If the estimated
cost of completing a conceptual design for a construction
project exceeds $3,000,000, the Secretary shall submit to
Congress a request for funds for the conceptual design before
submitting a request for funds for the construction project.
(3) Exceptions.--The requirement in paragraph (1) does not
apply to a request for funds--
(A) for a construction project the total estimated
cost of which is less than the minor construction
threshold; or
(B) for emergency planning, design, and
construction activities under section 3126.
(b) Authority for Construction Design.--
(1) In general.--Within the amounts authorized by a DOE
national security authorization, the Secretary of Energy may
carry out construction design (including architectural and
engineering services) in connection with any proposed
construction project if the total estimated cost for such
design does not exceed $600,000.
(2) Specific authority required.--If the total estimated
cost for construction design in connection with any
construction project exceeds $600,000, funds for that design
must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION
ACTIVITIES.

(a) Authority.--The Secretary of Energy may use any funds available
to the Department of Energy pursuant to a DOE national security
authorization, including funds authorized to be appropriated for
advance planning, engineering, and construction design, and for plant
projects, to perform planning, design, and construction activities for
any Department of Energy national security program construction project
that, as determined by the Secretary, must proceed expeditiously in
order to protect public health and safety, to meet the needs of
national defense, or to protect property.
(b) Limitation.--The Secretary may not exercise the authority under
subsection (a) in the case of a construction project until the
Secretary has submitted to the congressional defense committees a
report on the activities that the Secretary intends to carry out under
this section and the circumstances making those activities necessary.
(c) Specific Authority.--The requirement of section 3125(b)(2) does
not apply to emergency planning, design, and construction activities
conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE
DEPARTMENT OF ENERGY.

Subject to the provisions of appropriation Acts and section 3121,
amounts appropriated pursuant to a DOE national security authorization
for management and support activities and for general plant projects
are available for use, when necessary, in connection with all national
security programs of the Department of Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

(a) In General.--Except as provided in subsection (b), amounts
appropriated for operation and maintenance or for plant projects may,
when so specified in an appropriations Act, remain available until
expended.
(b) Exception for NNSA Funds.--Amounts appropriated for the
National Nuclear Security Administration pursuant to a DOE national
security authorization for a fiscal year shall remain available to be
expended--
(1) only until the end of that fiscal year, in the case of
amounts appropriated for the Office of the Administrator for
Nuclear Security; and
(2) only in that fiscal year and the two succeeding fiscal
years, in all other cases.

SEC. 3129. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

(a) Transfer Authority for Defense Environmental Management
Funds.--The Secretary of Energy shall provide the manager of each field
office of the Department of Energy with the authority to transfer
defense environmental management funds from a program or project under
the jurisdiction of that office to another such program or project.
(b) Limitations.--
(1) Number of transfers.--Not more than one transfer may be
made to or from any program or project under subsection (a) in
a fiscal year.
(2) Amounts transferred.--The amount transferred to or from
a program or project in any one transfer under subsection (a)
may not exceed $5,000,000.
(3) Determination required.--A transfer may not be carried
out by a manager of a field office under subsection (a) unless
the manager determines that the transfer is necessary--
(A) to address a risk to health, safety, or the
environment; or
(B) to assure the most efficient use of defense
environmental management funds at the field office.
(4) Impermissible uses.--Funds transferred pursuant to
subsection (a) may not be used for an item for which Congress
has specifically denied funds or for a new program or project
that has not been authorized by Congress.
(c) Exemption From Reprogramming Requirements.--The requirements of
section 3121 shall not apply to transfers of funds pursuant to
subsection (a).
(d) Notification.--The Secretary, acting through the Assistant
Secretary of Energy for Environmental Management, shall notify Congress
of any transfer of funds pursuant to subsection (a) not later than 30
days after such transfer occurs.
(e) Definitions.--In this section--
(1) the term ``program or project'' means, with respect to
a field office of the Department of Energy, a program or
project that is for environmental restoration or waste
management activities necessary for national security programs
of the Department, that is being carried out by that office,
and for which defense environmental management funds have been
authorized and appropriated; and
(2) the term ``defense environmental management funds''
means funds appropriated to the Department of Energy pursuant
to an authorization for carrying out environmental restoration
and waste management activities necessary for national security
programs.

SEC. 3130. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

(a) Transfer Authority for Weapons Activities Funds.--The Secretary
of Energy shall provide the manager of each field office of the
Department of Energy with the authority to transfer weapons activities
funds from a program or project under the jurisdiction of that office
to another such program or project.
(b) Limitations.--
(1) Number of transfers.--Not more than one transfer may be
made to or from any program or project under subsection (a) in
a fiscal year.
(2) Amounts transferred.--The amount transferred to or from
a program or project in any one transfer under subsection (a)
may not exceed $5,000,000.
(3) Determination required.--A transfer may not be carried
out by a manager of a field office under subsection (a) unless
the manager determines that the transfer--
(A) is necessary to address a risk to health,
safety, or the environment; or
(B) will result in cost savings and efficiencies.
(4) Limitation.--A transfer may not be carried out by a
manager of a field office under subsection (a) to cover a cost
overrun or scheduling delay for any program or project.
(5) Impermissible uses.--Funds transferred pursuant to
subsection (a) may not be used for an item for which Congress
has specifically denied funds or for a new program or project
that has not been authorized by Congress.
(c) Exemption From Reprogramming Requirements.--The requirements of
section 3121 shall not apply to transfers of funds pursuant to
subsection (a).
(d) Notification.--The Secretary, acting through the Administrator
for Nuclear Security, shall notify Congress of any transfer of funds
pursuant to subsection (a) not later than 30 days after such transfer
occurs.
(e) Definitions.--In this section--
(1) the term ``program or project'' means, with respect to
a field office of the Department of Energy, a program or
project that is for weapons activities necessary for national
security programs of the Department, that is being carried out
by that office, and for which weapons activities funds have
been authorized and appropriated; and
(2) the term ``weapons activities funds'' means funds
appropriated to the Department of Energy pursuant to an
authorization for carrying out weapons activities necessary for
national security programs.

SEC. 3131. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS.

In carrying out programs necessary for national security, the
authority of the Secretary of Energy to carry out plant projects
includes authority for maintenance, restoration, planning,
construction, acquisition, modification of facilities, and the
continuation of projects authorized in prior years, and land
acquisition related thereto.

Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3141. ONE-YEAR EXTENSION OF PANEL TO ASSESS THE RELIABILITY,
SAFETY, AND SECURITY OF THE UNITED STATES NUCLEAR
STOCKPILE.

Section 3159 of the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 (42 U.S.C. 2121 note) is amended--
(1) in subsection (d), by striking ``February 1, 2002,''
and inserting ``February 1 of 2002 and 2003,''; and
(2) in subsection (g), by striking ``three years'' and all
that follows through the period at the end and inserting
``April 1, 2003.''.

SEC. 3142. TRANSFER TO NATIONAL NUCLEAR SECURITY ADMINISTRATION OF
DEPARTMENT OF DEFENSE'S COOPERATIVE THREAT REDUCTION
PROGRAM RELATING TO ELIMINATION OF WEAPONS GRADE
PLUTONIUM IN RUSSIA.

(a) Transfer of Program.--There are hereby transferred to the
Administrator for Nuclear Security the following:
(1) The program, within the Cooperative Threat Reduction
program of the Department of Defense, relating to the
elimination of weapons grade plutonium in Russia.
(2) All functions, powers, duties, and activities of that
program performed before the date of the enactment of this Act
by the Department of Defense.
(b) Transfer of Assets.--(1) So much of the property, records, and
unexpended balances of appropriations, allocations, and other funds
employed, used, held, available, or to be made available in connection
with the program transferred by subsection (a) are transferred to the
Administrator for use in connection with the program transferred.
(2) Funds so transferred--
(A) shall be credited to the appropriation account of the
Department of Energy for the activities of the National Nuclear
Security Administration in carrying out defense nuclear
nonproliferation activities; and
(B) remain subject to such limitations as applied to such
funds before such transfer.
(c) References.--Any reference in any other Federal law to the
Secretary of Defense (or an officer of the Department of Defense) or
the Department of Defense shall, to the extent such reference pertains
to a function transferred by this section, be deemed to refer to the
Administrator for Nuclear Security or the National Nuclear Security
Administration, as applicable.

SEC. 3143. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION OF FUNDS FOR
PROGRAMS ON FISSILE MATERIALS IN RUSSIA.

Section 3131 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104-106; 110 Stat. 617; 22 U.S.C. 5952 note) is
amended--
(1) in subsection (a), by striking ``(a) Authority.--'';
and
(2) by striking subsection (b).

SEC. 3144. ANNUAL CERTIFICATION TO THE PRESIDENT AND CONGRESS ON THE
CONDITION OF THE UNITED STATES NUCLEAR WEAPONS STOCKPILE.

(a) Certification Required.--(1) Not later than January 15 of each
year, each official specified in subsection (b)(1) shall submit to the
Secretary concerned a certification regarding the safety, reliability,
and performance of each nuclear weapon type in the active stockpile of
the United States for which such official is responsible.
(2) Not later than February 1 of each year, the Secretary of
Defense and the Secretary of Energy shall each submit to the President
and the Congress--
(A) each certification, without change, submitted under
paragraph (1) to that Secretary;
(B) each report, without change, submitted under subsection
(d) to that Secretary;
(C) the comments of that Secretary with respect to each
such certification and each such report; and
(D) any other information that the Secretary considers
appropriate.
(b) Covered Officials and Secretaries.--(1) The officials referred
to in subsection (a) are the following:
(A) The head of each national security laboratory, as
defined in section 3281 of the National Nuclear Security
Administration Act (50 U.S.C. 2471).
(B) The commander of the United States Strategic Command.
(2) In this section, the term ``Secretary concerned'' means--
(A) the Secretary of Energy, with respect to matters
concerning the Department of Energy; and
(B) the Secretary of Defense, with respect to matters
concerning the Department of Defense.
(c) Use of ``Red Teams'' For Laboratory Certifications.--The head
of each national security laboratory shall, to assist in the
certification process required by subsection (a), establish one or more
teams of experts known as ``red teams''. Each such team shall--
(1) subject to challenge the matters covered by that
laboratory's certification, and submit the results of such
challenge, together with findings and recommendations, to the
head of that laboratory; and
(2) carry out peer review of the certifications carried out
by the other laboratories, and submit the results of such peer
review to the head of the laboratory concerned.
(d) Report Accompanying Certification.--Each official specified in
subsection (b)(1) shall submit with each such certification a report on
the stockpile stewardship and management program of the Department of
Energy. The report shall include the following:
(1) An assessment of the adequacy of the science-based
tools and methods being used to determine the matters covered
by the certification.
(2) An assessment of the capability of the manufacturing
infrastructure required by section 3137 of the National Defense
Authorization Act for Fiscal Year 1996 (42 U.S.C. 2121 note) to
identify and fix any inadequacy with respect to the matters
covered by the certification.
(3) An assessment of the need of the United States to
resume testing of nuclear weapons and the readiness of the
United States to resume such testing, together with an
identification of the specific tests the conduct of which might
have value and the anticipated value of conducting such tests.
(4) An identification and discussion of any other matter
that adversely affects the ability to accurately determine the
matters covered by the certification.
(5) In the case of a report submitted by the head of a
national security laboratory, the findings and recommendations
submitted by the ``red teams'' under subsection (c) that relate
to such certification, and a discussion of those findings and
recommendations.
(6) In the case of a report submitted by the head of a
national security laboratory, a discussion of the relative
merits of other weapon types that could accomplish the mission
of the weapon type covered by such certification.
(e) Classified Form.--Each submission required by this section
shall be made only in classified form.

SEC. 3145. PLAN FOR ACHIEVING ONE-YEAR READINESS POSTURE FOR RESUMPTION
BY THE UNITED STATES OF UNDERGROUND NUCLEAR WEAPONS
TESTS.

(a) Plan Required.--The Secretary of Energy, in consultation with
the Administrator for Nuclear Security, shall prepare a plan for
achieving, not later than one year after the date on which the plan is
submitted under subsection (c), a one-year readiness posture for
resumption by the United States of underground nuclear weapons tests.
(b) Definition.--For purposes of this section, a one-year readiness
posture for resumption by the United States of underground nuclear
weapons tests is achieved when the Department of Energy has the
capability to resume such tests, if directed by the President to resume
such tests, not later than one year after the date on which the
President so directs.
(c) Report.--The Secretary shall include with the budget
justification materials submitted to Congress in support of the
Department of Energy budget for fiscal year 2004 (as submitted with the
budget of the President under section 1105(a) of title 31, United
States Code) a report on the plan required by subsection (a). The
report shall include the plan and a budget for implementing the plan.

SEC. 3146. PROHIBITION ON DEVELOPMENT OF LOW-YIELD NUCLEAR WEAPONS.

(a) United States Policy.--It shall be the policy of the United
States not to conduct development which could lead to the production by
the United States of a new low-yield nuclear weapon, including a
precision low-yield warhead.
(b) Limitation.--The Secretary of Energy may not conduct, or
provide for the conduct of, development which could lead to the
production by the United States of a low-yield nuclear weapon which, as
of the date of the enactment of this Act, has not entered production.
(c) Effect on Other Development.--Nothing in this section shall
prohibit the Secretary of Energy from conducting, or providing for the
conduct of, development necessary--
(1) to design a testing device that has a yield of less
than five kilotons;
(2) to modify an existing weapon for the purpose of
addressing safety and reliability concerns; or
(3) to address proliferation concerns.
(d) Definition.--In this section--
(1) the term ``low-yield nuclear weapon'' means a nuclear
weapon that has a yield of less than five kilotons; and
(2) the term ``development'' does not include concept
definition studies, feasibility studies, or detailed
engineering design work.
(e) Conforming Repeal.--Section 3136 of the National Defense
Authorization Act for Fiscal Year 1994 (42 U.S.C. 2121 note) is
repealed.

Subtitle D--Matters Relating to Defense Environmental Management

SEC. 3151. DEFENSE ENVIRONMENTAL MANAGEMENT CLEANUP REFORM PROGRAM.

(a) Program Required.--From funds made available pursuant to
section 3102(a)(2) for defense environmental management cleanup reform,
the Secretary of Energy shall carry out a program to reform DOE
environmental management activities. In carrying out the program, the
Secretary shall allocate, to each site for which the Secretary has
submitted to the congressional defense committees a site performance
management plan, the amount of those funds that such plan requires.
(b) Transfer and Merger of Funds.--Funds so allocated shall,
notwithstanding section 3124, be transferred to the account for DOE
environmental management activities and, subject to subsection (c),
shall be merged with and be available for the same purposes and for the
same period as the funds available in such account. The authority
provided by section 3129 shall apply to funds so transferred.
(c) Limitation on Use of All Merged Funds.--Upon a transfer and
merger of funds under subsection (b), all funds in the merged account
that are available with respect to the site may be used only to carry
out the site performance management plan for such site.
(d) Site Performance Management Plan Defined.--For purposes of this
section, a site performance management plan for a site is a plan,
agreed to by the applicable Federal and State agencies with regulatory
jurisdiction with respect to the site, for the performance of
activities to accelerate the reduction of environmental risk in
connection with, and to accelerate the environmental cleanup of, the
site.
(e) DOE Environmental Management Activities Defined.--For purposes
of this section, the term ``DOE environmental management activities''
means environmental restoration and waste management activities of the
Department of Energy in carrying out programs necessary for national
security.

SEC. 3152. REPORT ON STATUS OF ENVIRONMENTAL MANAGEMENT INITIATIVES TO
ACCELERATE THE REDUCTION OF ENVIRONMENTAL RISKS AND
CHALLENGES POSED BY THE LEGACY OF THE COLD WAR.

(a) Report Required.--The Secretary of Energy shall prepare a
report on the status of those environmental management initiatives
specified in subsection (b) that are being undertaken to accelerate the
reduction of the environmental risks and challenges that, as a result
of the legacy of the Cold War, are faced by the Department of Energy,
contractors of the Department, and applicable Federal and State
agencies with regulatory jurisdiction.
(b) Contents.--The report shall include the following matters:
(1) A discussion of the progress made in reducing such
risks and challenges in each of the following areas:
(A) Acquisition strategy and contract management.
(B) Regulatory agreements.
(C) Interim storage and final disposal of high-
level waste, spent nuclear fuel, transuranic waste, and
low-level waste.
(D) Closure and transfer of environmental
remediation sites.
(E) Achievements in innovation by contractors of
the Department with respect to accelerated risk
reduction and cleanup.
(F) Consolidation of special nuclear materials and
improvements in safeguards and security.
(2) An assessment of the progress made in streamlining risk
reduction processes of the environmental management program of
the Department.
(3) An assessment of the progress made in improving the
responsiveness and effectiveness of the environmental
management program of the Department.
(4) Any proposals for legislation that the Secretary
considers necessary to carry out such initiatives, including
the justification for each such proposal.
(c) Initiatives Covered.--The environmental management initiatives
referred to in subsection (a) are the initiatives arising out of the
report titled ``Top-to-Bottom Review of the Environmental Management
Program'' and dated February 4, 2002, with respect to the environmental
restoration and waste management activities of the Department of Energy
in carrying out programs necessary for national security.
(d) Submission of Report.--On the date on which the budget
justification materials in support of the Department of Energy budget
for fiscal year 2004 (as submitted with the budget of the President
under section 1105(a) of title 31, United States Code) are submitted to
Congress, the Secretary shall submit to the congressional defense
committees the report required by subsection (a).

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year 2003,
$19,000,000 for the operation of the Defense Nuclear Facilities Safety
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286
et seq.).

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

(a) Obligation of Stockpile Funds.--During fiscal year 2003, the
National Defense Stockpile Manager may obligate up to $76,400,000 of
the funds in the National Defense Stockpile Transaction Fund
established under subsection (a) of section 9 of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized
uses of such funds under subsection (b)(2) of such section, including
the disposal of hazardous materials that are environmentally sensitive.
(b) Additional Obligations.--The National Defense Stockpile Manager
may obligate amounts in excess of the amount specified in subsection
(a) if the National Defense Stockpile Manager notifies Congress that
extraordinary or emergency conditions necessitate the additional
obligations. The National Defense Stockpile Manager may make the
additional obligations described in the notification after the end of
the 45-day period beginning on the date on which Congress receives the
notification.
(c) Limitations.--The authorities provided by this section shall be
subject to such limitations as may be provided in appropriations Acts.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

(a) Amount.--There are hereby authorized to be appropriated to the
Secretary of Energy $21,069,000 for fiscal year 2003 for the purpose of
carrying out activities under chapter 641 of title 10, United States
Code, relating to the naval petroleum reserves.
(b) Period of Availability.--Funds appropriated pursuant to the
authorization of appropriations in subsection (a) shall remain
available until expended.

TITLE XXXV--MARITIME ADMINISTRATION

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2003.

Funds are hereby authorized to be appropriated for fiscal year
2003, to be available without fiscal year limitation if so provided in
appropriations Acts, for the use of the Department of Transportation
for the Maritime Administration as follows:
(1) For expenses necessary for operations and training
activities, $93,132,000.
(2) For expenses under the loan guarantee program
authorized by title XI of the Merchant Marine Act, 1936 (46
App. U.S.C. 1271 et seq.), $54,126,000, of which--
(A) $50,000,000 is for the cost (as defined in
section 502(5) of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a(5))) of loan guarantees under the
program; and
(B) $4,126,000 is for administrative expenses
related to loan guarantee commitments under the
program.
(3) For expenses to dispose of obsolete vessels in the
National Defense Reserve Fleet, including provision of
assistance under section 7 of Public Law 92-402 (as amended by
this title), $20,000,000.

SEC. 3502. AUTHORITY TO CONVEY VESSEL USS SPHINX (ARL-24).

(a) In General.--Notwithstanding any other law, the Secretary of
Transportation may convey the right, title, and interest of the United
States Government in and to the vessel USS SPHINX (ARL-24), to the
Dunkirk Historical Lighthouse and Veterans Park Museum (a not-for-
profit corporation, in this section referred to as the ``recipient'')
for use as a military museum, if--
(1) the recipient agrees to use the vessel as a nonprofit
military museum;
(2) the vessel is not used for commercial transportation
purposes;
(3) the recipient agrees to make the vessel available to
the Government when the Secretary requires use of the vessel by
the Government;
(4) the recipient agrees that when the recipient no longer
requires the vessel for use as a military museum--
(A) the recipient will, at the discretion of the
Secretary, reconvey the vessel to the Government in
good condition except for ordinary wear and tear; or
(B) if the Board of Trustees of the recipient has
decided to dissolve the recipient according to the laws
of the State of New York, then--
(i) the recipient shall distribute the
vessel, as an asset of the recipient, to a
person that has been determined exempt from
taxation under the provisions of section
501(c)(3) of the Internal Revenue Code, or to
the Federal Government or a State or local
government for a public purpose; and
(ii) the vessel shall be disposed of by a
court of competent jurisdiction of the county
in which the principal office of the recipient
is located, for such purposes as the court
shall determine, or to such organizations as
the court shall determine are organized
exclusively for public purposes;
(5) the recipient agrees to hold the Government harmless
for any claims arising from exposure to asbestos after
conveyance of the vessel, except for claims arising from use by
the Government under paragraph (3) or (4); and
(6) the recipient has available, for use to restore the
vessel, in the form of cash, liquid assets, or a written loan
commitment, financial resources of at least $100,000.
(b) Delivery of Vessel.--If a conveyance is made under this Act,
the Secretary shall deliver the vessel at the place where the vessel is
located on the date of enactment of this Act, in its present condition,
without cost to the Government.
(c) Other Unneeded Equipment.--The Secretary may also convey any
unneeded equipment from other vessels in the National Defense Reserve
Fleet in order to restore the USS SPHINX (ARL-24) to museum quality.
(d) Retention of Vessel in NDRF.--The Secretary shall retain in the
National Defense Reserve Fleet the vessel authorized to be conveyed
under subsection (a), until the earlier of--
(1) 2 years after the date of the enactment of this Act; or
(2) the date of conveyance of the vessel under subsection
(a).

SEC. 3503. FINANCIAL ASSISTANCE TO STATES FOR PREPARATION OF
TRANSFERRED OBSOLETE SHIPS FOR USE AS ARTIFICIAL REEFS.

(a) In General.--Public Law 92-402 (16 U.S.C. 1220 et seq.) is
amended by redesignating section 7 as section 8, and by inserting after
section 6 the following:

``SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE TRANSFERRED SHIP.

``(a) Assistance Authorized.--The Secretary, subject to the
availability of appropriations, may provide, to any State to which an
obsolete ship is transferred under this Act, financial assistance to
prepare the ship for use as an artificial reef, including for--
``(1) environmental remediation;
``(2) towing; and
``(3) sinking.
``(b) Amount of Assistance.--The Secretary shall determine the
amount of assistance under this section with respect to an obsolete
ship based on--
``(1) the total amount available for providing assistance
under this section;
``(2) the benefit achieved by providing assistance for that
ship; and
``(3) the cost effectiveness of disposing of the ship by
transfer under this Act and provision of assistance under this
section, compared to other disposal options for the vessel.
``(c) Terms and Conditions.--The Secretary--
``(1) shall require a State seeking assistance under this
section to provide cost data and other information determined
by the Secretary to be necessary to justify and document the
assistance; and
``(2) may require a State receiving such assistance to
comply with terms and conditions necessary to protect the
environment and the interests of the United States.''.
(b) Conforming Amendment.--Section 4(4) of such Act (16 U.S.C.
1220a(4)) is amended by inserting ``(except for any financial
assistance provided under section 7)'' after ``at no cost to the
Government''.

SEC. 3504. INDEPENDENT ANALYSIS OF TITLE XI INSURANCE GUARANTEE
APPLICATIONS.

Section 1104A of the Merchant Marine Act, 1936 (46 App. U.S.C.
1274) is amended--
(1) by adding at the end of subsection (d) the following:
``(4) The Secretary may obtain independent analysis of an
application for a guarantee or commitment to guarantee under this
title.''; and
(2) in subsection (f) by inserting ``(including for
obtaining independent analysis under subsection (d)(4))'' after
``applications for a guarantee''.

Passed the House of Representatives May 10 (legislative
day, May 9), 2002.

Attest:

Clerk.