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

                                                 Union Calendar No. 258
107th CONGRESS
  2d Session
                                H. R. 4546

                          [Report No. 107-436]

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 23, 2002

 Mr. Stump (for himself and Mr. Skelton) (both by request) introduced 
   the following bill; which was referred to the Committee on Armed 
                                Services

                              May 3, 2002

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                               23, 2002]

_______________________________________________________________________

                                 A BILL


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

    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.

                     Subtitle C--Air Force Programs

Sec. 121. Multiyear procurement authority for C-130J aircraft program.

                       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. Navy-Marine Corps Intranet contract.
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.

                   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.

  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.

      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.

                      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.

                       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.

                  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.

              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.

        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.

                       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.

    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.

                     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.

                       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, 
$30,000,000 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. NAVY-MARINE CORPS INTRANET CONTRACT.

    (a) Authorized Duration of Contract.--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 Navy-Marine Corps Intranet Contract.--
Notwithstanding section 2306c of title 10, United States Code, the 
Navy-Marine Corps Intranet contract may have a term in excess of five 
years, but not more than seven years.''.
    (b) Clarification of Phased Implementation Requirements.--
Subsection (b) of such section is amended in paragraphs (2) and (3) by 
striking ``provided'' each place it appears and inserting ``ordered''.

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.

                   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.

  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.

                        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''.

                      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.

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.

                       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.

                  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.''.

              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.

    (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 Navy in the total amount of $2,308,007,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $776,806,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $133,270,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $23,262,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $95,745,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $377,616,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $867,788,000.
            (6) For replacement of a pier at Naval Station, Norfolk, 
        Virginia, authorized in section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2002 (division B 
        of Public Law 107-107; 115 Stat. 1287), as amended by section 
        2205 of this Act, $33,520,000.
    (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 2201 of this 
Act may not exceed--
            (1) the total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a);
            (2) $48,120,000 (the balance of the amount authorized under 
        section 2201(a) for a bachelors enlisted quarters shipboard 
        ashore, Naval Station, Norfolk, Virginia); and
            (3) $2,570,000 (the balance of the amount authorized under 
        section 2201(b) for a quality of life support facility, Naval 
        Air Station Sigonella, Italy).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $1,340,000, 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. 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.

    (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 Air Force in the total amount of 
$2,495,094,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $580,731,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $238,251,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $32,562,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $11,500,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $76,958,000.
            (6) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $681,042,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $874,050,000.
    (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 2301 of this 
Act may not exceed the total amount authorized to be appropriated under 
paragraphs (1), (2) and (3) of subsection (a).
    (c) Adjustment.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by $10,281,000, 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.

                      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.''.

        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) 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.
    ``(f) 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.
    (f) 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.

                       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.

    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''.
            Amend the title so as to read: ``A bill 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.''.




                                                 Union Calendar No. 258

107th CONGRESS

  2d Session

                               H. R. 4546

                          [Report No. 107-436]

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                                 A BILL

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

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                              May 3, 2002

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed