    [Congressional Bills 108th Congress]
    [From the U.S. Government Publishing Office]
    [H.R. 1588 Engrossed in House (EH)]

      1st Session

                                   H. R. 1588

    _______________________________________________________________________

                                     AN ACT

         To authorize appropriations for fiscal year 2004 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.

    108th CONGRESS
      1st Session
                                    H. R. 1588

    _______________________________________________________________________

                                     AN ACT

         To authorize appropriations for fiscal year 2004 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.

        Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled,

    SECTION 1. SHORT TITLE.

        This Act may be cited as the ``National Defense Authorization Act
    for Fiscal Year 2004''.

    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.
                           Subtitle B--Army Programs

    Sec. 111. Stryker vehicle program.
    Sec. 112. Configuration of Fourth Stryker Brigade Combat Team.
                           Subtitle C--Navy Programs

    Sec. 121. Multiyear procurement authority for F/A-18 aircraft program.
    Sec. 122. Multiyear procurement authority for Tactical Tomahawk cruise
                                missile program.
    Sec. 123. Multiyear procurement authority for Virginia class submarine
                                program.
    Sec. 124. Multiyear procurement authority for E-2C aircraft program.
    Sec. 125. LPD-17 class vessel.
                         Subtitle D--Air Force Programs

    Sec. 131. Air Force air refueling transfer account.
    Sec. 132. Increase in number of aircraft authorized to be procured
                                under multiyear procurement authority for
                                Air Force C-130J aircraft program.
    Sec. 133. Limitation on retiring C-5 aircraft.
    Sec. 134. Limitation on obligation of funds for procurement of F/A-22
                                aircraft.
             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.
    Sec. 203. Program increases.
        Subtitle B--Program Requirements, Restrictions, and Limitations

    Sec. 211. Collaborative program for development of electromagnetic gun
                                technology.
    Sec. 212. Authority to select civilian employee of Department of
                                Defense as director of Department of
                                Defense Test Resource Management Center.
    Sec. 213. Development of the Joint Tactical Radio System.
    Sec. 214. Future Combat Systems.
    Sec. 215. Army program to pursue technologies leading to the enhanced
                                production of titanium by the United
                                States.
    Sec. 216. Extension of reporting requirement for RAH-66 Comanche
                                aircraft program.
    Sec. 217. Studies of fleet platform architectures for the Navy.
                     Subtitle C--Ballistic Missile Defense

    Sec. 221. Enhanced flexibility for ballistic missile defense systems.
                      TITLE III--OPERATION AND MAINTENANCE

                  Subtitle A--Authorization of Appropriations

    Sec. 301. Operation and maintenance funding.
    Sec. 302. Working capital funds.
    Sec. 303. Other Department of Defense programs.
    Sec. 304. Counterexploitation initiative.
    Sec. 305. Reduction in authorization for Air Force operation and
                                maintenance account.
                      Subtitle B--Environmental Provisions

    Sec. 311. Reauthorization and modification of title I of Sikes Act.
    Sec. 312. Authorization for defense participation in wetland mitigation
                                banks.
    Sec. 313. Inclusion of environmental response equipment and services in
                                Navy definitions of salvage facilities and
                                salvage services.
    Sec. 314. Clarification of Department of Defense response to
                                environmental emergencies.
    Sec. 315. Requirements for restoration advisory boards and exemption
                                from Federal Advisory Committee Act.
    Sec. 316. Report regarding impact of civilian community encroachment
                                and certain legal requirements on military
                                installations and ranges.
    Sec. 317. Military readiness and conservation of protected species.
    Sec. 318. Military readiness and marine mammal protection.
    Sec. 319. Limitation on Department of Defense responsibility for
                                civilian water consumption impacts related
                                to Fort Huachuca, Arizona.
    Sec. 320. Construction of wetland crossings, Camp Shelby Combined Arms
                                Maneuver Area, Camp Shelby, Mississippi.
                     Subtitle C--Workplace and Depot Issues

    Sec. 321. Exclusion of certain expenditures from percentage limitation
                                on contracting for performance of depot-
                                level maintenance and repair workloads.
    Sec. 322. High-performing organization business process reengineering
                                pilot program.
    Sec. 323. Delayed implementation of revised Office of Management and
                                Budget Circular A-76 by Department of
                                Defense pending report.
    Sec. 324. Naval Aviation Depots multi-trades demonstration project.
                       Subtitle D--Information Technology

    Sec. 331. Performance-based and results-based management requirements
                                for Chief Information Officers of
                                Department of Defense.
                           Subtitle E--Other Matters

    Sec. 341. Cataloging and standardization for defense supply management.
    Sec. 342. Space-available transportation for dependents of members
                                assigned to overseas duty locations for
                                continuous period in excess of one year.
    Sec. 343. Preservation of Air Force Reserve weather reconnaissance
                                mission.
    Sec. 344. Expansion of Department of Defense excess personal property
                                disposal program to include health agencies
                                in addition to law enforcement and
                                firefighting agencies.
    Sec. 345. Department of Defense public health assessment of exposure to
                                perchlorate.
    Sec. 346. Permanent authority for purchase of certain municipal
                                services at installations in Monterey
                                County, California.
                  TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                           Subtitle A--Active Forces

    Sec. 401. End strengths for active forces.
    Sec. 402. Revision in permanent active duty end strength minimum
                                levels.
                           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 2004 limitation on non-dual status technicians.
    Sec. 415. Permanent limitations on number of non-dual status
                                technicians.
                  Subtitle C--Authorizations of Appropriations

    Sec. 421. Military personnel.
    Sec. 422. Armed Forces Retirement Home.
                       TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--General and Flag Officer Matters

    Sec. 501. Standardization of qualifications for appointment as service
                                chief.
               Subtitle B--Other Officer Personnel Policy Matters

    Sec. 511. Repeal of prohibition on transfer between line of the Navy
                                and Navy staff corps applicable to regular
                                Navy officers in grades above lieutenant
                                commander.
    Sec. 512. Retention of health professions officers to fulfill active-
                                duty service commitments following
                                promotion nonselection.
    Sec. 513. Increased flexibility for voluntary retirement for military
                                officers.
    Sec. 514. Repeal of required grade of defense attache in France.
                     Subtitle C--Reserve Component Matters

    Sec. 521. Streamlined process for continuation of officers on the
                                reserve active-status list.
    Sec. 522. Consideration of reserve officers for position vacancy
                                promotions in time of war or national
                                emergency.
    Sec. 523. Simplification of determination of annual participation for
                                purposes of Ready Reserve training
                                requirements.
    Sec. 524. Authority for delegation of required secretarial special
                                finding for placement of certain retired
                                members in Ready Reserve.
    Sec. 525. Authority to provide expenses of Army and Air Staff personnel
                                and National Guard Bureau personnel
                                attending national conventions of certain
                                military associations.
                  Subtitle D--Military Education and Training

    Sec. 531. Authority for the Marine Corps University to award the degree
                                of master of operational studies.
    Sec. 532. Expanded educational assistance authority for cadets and
                                midshipmen receiving ROTC scholarships.
    Sec. 533. Increase in allocation of scholarships under Army Reserve
                                ROTC scholarship program to students at
                                military junior colleges.
    Sec. 534. Inclusion of accrued interest in amounts that may be repaid
                                under Selected Reserve critical specialties
                                education loan repayment program.
    Sec. 535. Authority for nonscholarship senior ROTC sophomores to
                                voluntarily contract for and receive
                                subsistence allowance.
    Sec. 536. Appointments to military service academies from nominations
                                made by delegates from Guam, Virgin
                                Islands, and American Samoa.
    Sec. 537. Readmission to service academies of certain former cadets and
                                midshipmen.
    Sec. 538. Authorization for Naval Postgraduate School to provide
                                instruction to enlisted members
                                participating in certain programs.
    Sec. 539. Defense task force on sexual harassment and violence at the
                                military service academies.
                       Subtitle E--Administrative Matters

    Sec. 541. Enhancements to high-tempo personnel program.
    Sec. 542. Enhanced retention of accumulated leave for high-deployment
                                members.
    Sec. 543. Standardization of time-in-service requirements for voluntary
                                retirement of members of the Navy and
                                Marine Corps with Army and Air Force
                                requirements.
    Sec. 544. Standardization of statutory authorities for exemptions from
                                requirement for access to secondary schools
                                by military recruiters.
    Sec. 545. Procedures for consideration of applications for award of the
                                Purple Heart medal to veterans held as
                                prisoners of war before April 25, 1962.
    Sec. 546. Authority for reserve and retired regular officers to hold
                                State and local elective office
                                notwithstanding call to active duty.
    Sec. 547. Clarification of offense under the Uniform Code of Military
                                Justice relating to drunken or reckless
                                operation of a vehicle, aircraft, or
                                vessel.
    Sec. 548. Public identification of casualties no sooner than 24 hours
                                after notification of next-of-kin.
                              Subtitle F--Benefits

    Sec. 551. Additional classes of individuals eligible to participate in
                                the Federal long-term care insurance
                                program.
    Sec. 552. Authority to transport remains of retirees and retiree
                                dependents who die in military treatment
                                facilities outside the United States.
    Sec. 553. Eligibility for dependents of certain mobilized reservists
                                stationed overseas to attend defense
                                dependents schools overseas.
                           Subtitle G--Other Matters

    Sec. 561. Extension of requirement for exemplary conduct by commanding
                                officers and others in authority to include
                                civilians in authority in the Department of
                                Defense.
    Sec. 562. Recognition of military families.
    Sec. 563. Assistance to local educational agencies that benefit
                                dependents of members of the Armed Forces
                                and Department of Defense civilian
                                employees.
    Sec. 564. Permanent authority for support for certain chaplain-led
                                military family support programs.
    Sec. 565. Department of Defense-Department of Veterans Affairs Joint
                                Executive Committee.
    Sec. 566. Limitation on aviation force structure changes in the
                                Department of the Navy.
    Sec. 567. Impact-aid eligibility for heavily impacted local educational
                                agencies affected by privitization of
                                military housing.
    Sec. 568. Investigation into the 1991 death of Marine Corps Colonel
                                James E. Sabow.
                         Subtitle H--Domestic Violence

    Sec. 571. Travel and transportation for dependents relocating for
                                reasons of personal safety.
    Sec. 572. Commencement and duration of payment of transitional
                                compensation.
    Sec. 573. Flexibility in eligibility for transitional compensation.
    Sec. 574. Types of administrative separations triggering coverage.
    Sec. 575. On-going review group.
    Sec. 576. Resources for Department of Defense implementation
                                organization.
    Sec. 577. Fatality reviews.
    Sec. 578. Sense of Congress.
              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    Sec. 601. Increase in basic pay for fiscal year 2004.
    Sec. 602. Computation of basic pay rate for commissioned officers with
                                prior enlisted or warrant officer service.
    Sec. 603. Special subsistence allowance authorities for members
                                assigned to high-cost duty location or
                                under other unique and unusual
                                circumstances.
               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. Computation of hazardous duty incentive pay for demolition
                                duty and parachute jumping by members of
                                reserve components entitled to compensation
                                under section 206 of title 37.
    Sec. 616. Availability of hostile fire and imminent danger pay for
                                reserve component members on inactive duty.
    Sec. 617. Expansion of overseas tour extension incentive program to
                                officers.
    Sec. 618. Eligibility of appointed warrant officers for accession bonus
                                for new officers in critical skills.
    Sec. 619. Incentive pay for duty on ground in Antarctica or on Arctic
                                icepack.
    Sec. 620. Special pay for service as member of Weapons of Mass
                                Destruction Civil Support Team.
    Sec. 621. Incentive bonus for agreement to serve in critically short
                                military occupational specialty.
    Sec. 622. Increase in rate for imminent danger pay and family
                                separation allowance related to service in
                                Operation Iraqi Freedom or Operation
                                Enduring Freedom.
    Sec. 623. Availability of hostile fire and imminent danger pay for
                                reserve component members serving in
                                response to certain domestic terrorist
                                attacks.
                Subtitle C--Travel and Transportation Allowances

    Sec. 631. Shipment of privately owned motor vehicle within continental
                                United States.
    Sec. 632. Payment or reimbursement of student baggage storage costs for
                                dependent children of members stationed
                                overseas.
    Sec. 633. Reimbursement for lodging expenses of certain reserve
                                component and retired members during
                                authorized leave from temporary duty
                                location.
                 Subtitle D--Retired Pay and Survivors Benefits

    Sec. 641. Funding for special compensation authorities for Department
                                of Defense retirees.
        Subtitle E--Commissary and Nonappropriated Fund Instrumentality
                                    Benefits

    Sec. 651. Expanded commissary access for Selected Reserve members,
                                reserve retirees under age 60, and their
                                dependents.
    Sec. 652. Defense commissary system and exchange stores system.
    Sec. 653. Limitations on private operation of defense commissary store
                                functions.
    Sec. 654. Use of appropriated funds to operate defense commissary
                                system.
    Sec. 655. Recovery of nonappropriated fund instrumentality and
                                commissary store investments in real
                                property at military installations closed
                                or realigned.
    Sec. 656. Commissary shelf-stocking pilot program.
                           Subtitle F--Other Matters

    Sec. 661. Repeal of congressional notification requirement for
                                designation of critical military skills for
                                retention bonus.
                       TITLE VII--HEALTH CARE PROVISIONS

    Sec. 701. Revision of Department of Defense medicare-eligible retiree
                                health care fund to permit more accurate
                                actuarial valuations.
    Sec. 702. Transfer of certain members from pharmacy and therapeutics
                                committee to Uniform Formulary Beneficiary
                                Advisory Panel under the pharmacy benefits
                                program.
    Sec. 703. Permanent extension of authority to enter into personal
                                services contracts for the performance of
                                health care responsibilities at locations
                                other than military medical treatment
                                facilities.
    Sec. 704. Plan for providing health coverage information to members,
                                former members, and dependents eligible for
                                certain health benefits.
    Sec. 705. Working group on military health care for persons reliant on
                                health care facilities at military
                                installations to be closed or realigned.
    Sec. 706. Acceleration of implementation of chiropractic health care
                                for members on active duty.
    Sec. 707. Medical and dental screening for members of selected reserve
                                units alerted for mobilization.
      TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED
                                    MATTERS

    Subtitle A--Amendments to General Contracting Authorities, Procedures,
                                and Limitations

    Sec. 801. Extension of authority to carry out certain prototype
                                projects.
    Sec. 802. Elimination of certain subcontract notification requirements.
    Sec. 803. Elimination of requirement to furnish written assurances of
                                technical data conformity.
    Sec. 804. Limitation period for task and delivery order contracts.
    Sec. 805. Additional authorities relating to obtaining personal
                                services.
    Sec. 806. Evaluation of prompt payment provisions.
          Subtitle B--United States Defense Industrial Base Provisions

         Part I--Critical Items Identification and Domestic Production
                        Capabilities Improvement Program

    Sec. 811. Assessment of United States defense industrial base
                                capabilities.
    Sec. 812. Identification of critical items: military system breakout
                                list.
    Sec. 813. Procurement of certain critical items from American sources.
    Sec. 814. Production capabilities improvement for certain critical
                                items using Defense Industrial Base
                                Capabilities Fund.
                Part II--Requirements Relating to Specific Items

    Sec. 821. Domestic source limitation for certain additional items.
    Sec. 822. Requirements relating to buying commercial items containing
                                specialty metals from American sources.
    Sec. 823. Elimination of unreliable sources of defense items and
                                components.
    Sec. 824. Congressional notification required before exercising
                                exception to requirement to buy specialty
                                metals from American sources.
    Sec. 825. Repeal of authority for foreign procurement of para-aramid
                                fibers and yarns.
    Sec. 826. Requirement for major defense acquisition programs to use
                                machine tools entirely produced within the
                                United States.
    Sec. 827. Data collection and technical assistance center relating to
                                machine tools.
    Sec. 828. Buy American enhancement.
    Sec. 829. Requirement relating to purchases by Department of Defense
                                subject to Buy American Act.
                          Part III--General Provisions

    Sec. 831. Definitions.
          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. Redesignation of National Imagery and Mapping Agency as
                                National Geospatial-intelligence Agency.
    Sec. 903. Pilot program for provision of space surveillance network
                                services to non-United States governmental
                                entities.
    Sec. 904. Clarification of responsibility of military departments to
                                support combatant commands.
    Sec. 905. Biennial review of national military strategy by Chairman of
                                the Joint Chiefs of Staff.
    Sec. 906. Authority for acceptance by Asia-Pacific Center for Security
                                Studies of gifts and donations from
                                nonforeign sources.
    Sec. 907. Repeal of rotating chairmanship of Economic Adjustment
                                Committee.
    Sec. 908. Pilot program for improved civilian personnel management.
    Sec. 909. Extension of certain authorities applicable to the Pentagon
                                Reservation to include designated Pentagon
                                continuity-of-government locations.
    Sec. 910. Defense acquisition workforce reductions.
    Sec. 911. Required force structure.
                          TITLE X--GENERAL PROVISIONS

                         Subtitle A--Financial Matters

    Sec. 1001. Transfer authority.
    Sec. 1002. Authorization of supplemental appropriations for fiscal year
                                2003.
    Sec. 1003. Authority to transfer procurement funds for a major defense
                                acquisition program for continued
                                development work on that program.
    Sec. 1004. Restoration of authority to enter into 12-month leases at
                                any time during the fiscal year.
    Sec. 1005. Authority for retention of additional amounts realized from
                                energy cost savings.
    Sec. 1006. Repeal of requirement for two-year budget cycle for the
                                Department of Defense.
    Sec. 1007. Authority to provide reimbursement for use of personal
                                cellular telephones when used for official
                                government business.
                    Subtitle B--Naval Vessels and Shipyards

    Sec. 1011. Repeal of requirement regarding preservation of surge
                                capability for naval surface combatants.
    Sec. 1012. Enhancement of authority relating to use for experimental
                                purposes of vessels stricken from Naval
                                Vessel Register.
    Sec. 1013. Authorization for transfer of vessels stricken from Naval
                                Vessel Register for use as artificial
                                reefs.
    Sec. 1014. Pilot program for sealift ship construction.
                              Subtitle C--Reports

    Sec. 1021. Repeal and modification of various reporting requirements
                                applicable to the Department of Defense.
    Sec. 1022. Report on Operation Iraqi Freedom.
    Sec. 1023. Report on Department of Defense post-conflict activities in
                                Iraq.
    Sec. 1024. Report on development of mechanisms to better connect
                                Department of Defense space capabilities to
                                the war fighter.
         Subtitle D--Procurement of Defense Biomedical Countermeasures

    Sec. 1031. Research and development of defense biomedical
                                countermeasures.
    Sec. 1032. Procurement of defense biomedical countermeasures.
    Sec. 1033. Authorization for use of medical products in emergencies.
                           Subtitle E--Other Matters

    Sec. 1041. Codification and revision of defense counterintelligence
                                polygraph program authority.
    Sec. 1042. Codification and revision of limitation on modification of
                                major items of equipment scheduled for
                                retirement or disposal.
    Sec. 1043. Additional definitions for purposes of title 10, United
                                States Code.
    Sec. 1044. Inclusion of annual military construction authorization
                                request in annual defense authorization
                                request.
    Sec. 1045. Technical and clerical amendments.
    Sec. 1046. Authority to provide living quarters for certain students in
                                cooperative and summer education programs
                                of the National Security Agency.
    Sec. 1047. Use of drug interdiction and counter-drug funds to support
                                activities of the Government of Colombia.
    Sec. 1048. Authority for joint task forces to provide support to law
                                enforcement agencies conducting counter-
                                terrorism activities.
    Sec. 1049. Use of National Driver Register for personnel security
                                investigations and determinations.
    Sec. 1050. Protection of operational files of the National Security
                                Agency.
    Sec. 1051. Assistance for study of feasibility of biennial
                                international air trade show in the United
                                States and for initial implementation.
    Sec. 1052. Continuation of reasonable access to military installations
                                for personal commercial solicitation.
    Sec. 1053. Commission on Nuclear Strategy of the United States.
    Sec. 1054. Extension of Counterproliferation Program Review Committee.
    Sec. 1055. Assignment of members to assist Bureau of Border Security
                                and Bureau of Citizenship and Immigration
                                Services of the Department of Homeland
                                Security.
    Sec. 1056. Report concerning strategic nuclear warheads dismantled
                                pursuant to the Treaty Between the United
                                States of America and the Russian
                                Federation on Strategic Offensive
                                Reductions.
    Sec. 1057. Pilot program to improve use of Air Force and Air National
                                Guard Modular Airborne Fire-Fighting
                                Systems to fight wildfires.
    Sec. 1058. Study on feasibility of use of small businesses, minority-
                                owned businesses, and women-owned
                                businesses in efforts to rebuild Iraq.
    Sec. 1059. Sense of Congress regarding continuation of mission and
                                functions of Army Peacekeeping Institute.
    Sec. 1060. Assessment of effects of specified statutory limitations on
                                the granting of security clearances.
               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

         Subtitle A--Department of Defense Civilian Personnel Generally

    Sec. 1101. Modification of the overtime pay cap.
    Sec. 1102. Military leave for mobilized Federal civilian employees.
    Sec. 1103. Common occupational and health standards for differential
                                payments as a consequence of exposure to
                                asbestos.
    Sec. 1104. Increase in annual student loan repayment authority.
    Sec. 1105. Authorization for cabinet secretaries, secretaries of
                                military departments, and heads of
                                executive agencies to be paid on a biweekly
                                basis.
    Sec. 1106. Senior executive service and performance.
    Sec. 1107. Design elements of pay-for-performance systems in
                                demonstration projects.
    Sec. 1108. Federal flexible benefits plan administrative costs.
    Sec. 1109. Clarification to Hatch Act; limitation on disclosure of
                                certain records.
    Sec. 1110. Employee surveys.
    Sec. 1111. Human Capital Performance Fund.
      Subtitle B--Department of Defense National Security Personnel System

    Sec. 1121. Department of Defense national security personnel system.
                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

    Sec. 1201. Expansion of authority to provide administrative support and
                                services and travel and subsistence
                                expenses for certain foreign liaison
                                officers.
    Sec. 1202. Recognition of superior noncombat achievements or
                                performance by members of friendly foreign
                                forces and other foreign nationals.
    Sec. 1203. Expansion of authority to waive charges for costs of
                                attendance at George C. Marshall European
                                Center for Security Studies.
    Sec. 1204. Identification of goods and technologies critical for
                                military superiority.
    Sec. 1205. Report on acquisition by Iraq of advanced weapons.
    Sec. 1206. Authority for check cashing and currency exchange services
                                to be provided to foreign military members
                                participating in certain activities with
                                United States forces.
    Sec. 1207. Requirements for transfer to foreign countries of certain
                                specified types of excess aircraft.
    Sec. 1208. Limitation on number of United States military personnel in
                                Colombia.
    Sec. 1209. Assessment and report concerning the location of NATO
                                headquarters.
    Sec. 1210. Sense of Congress on redeployment of United States forces in
                                Europe.
    Sec. 1211. Report on actions that could be taken regarding countries
                                that initiate certain legal actions against
                                United States officials.
    Sec. 1212. Sense of Congress concerning Navy port calls in Israel.
    Sec. 1213. Assistance to Iraqi children injured during Operation Iraqi
                                Freedom.
                    TITLE XIII--COOPERATIVE THREAT REDUCTION

    Sec. 1301. Specification of Cooperative Threat Reduction programs and
                                funds.
    Sec. 1302. Funding allocations.
    Sec. 1303. Limitation on use of funds until certain permits obtained.
    Sec. 1304. Limitation on use of funds for biological research in the
                                former Soviet Union.
    Sec. 1305. Authority and funds for nonproliferation and disarmament.
    Sec. 1306. Requirement for on-site managers.
    Sec. 1307. Provisions relating to funding for chemical weapons
                                destruction facility in Russia.
    Sec. 1308. Study relating to ex-Soviet uranium and plutonium.
                     TITLE XIV--SERVICES ACQUISITION REFORM

    Sec. 1401. Short title.
    Sec. 1402. Executive agency defined.
                 Subtitle A--Acquisition Workforce and Training

    Sec. 1411. Definition of acquisition.
    Sec. 1412. Acquisition workforce training fund.
    Sec. 1413. Acquisition workforce recruitment program.
    Sec. 1414. Architectural and engineering acquisition workforce.
            Subtitle B--Adaptation of Business Acquisition Practices

              Part I--Adaptation of Business Management Practices

    Sec. 1421. Chief Acquisition Officers.
    Sec. 1422. Chief Acquisition Officers Council.
    Sec. 1423. Statutory and regulatory review.
                    Part II--Other Acquisition Improvements

    Sec. 1426. Extension of authority to carry out franchise fund programs.
    Sec. 1427. Agency acquisition protests.
    Sec. 1428. Improvements in contracting for architectural and
                                engineering services.
    Sec. 1429. Authorization of telecommuting for Federal contractors.
                        Subtitle C--Contract Incentives

    Sec. 1431. Incentives for contract efficiency.
                  Subtitle D--Acquisitions of Commercial Items

    Sec. 1441. Preference for performance-based contracting.
    Sec. 1442. Authorization of additional commercial contract types.
    Sec. 1443. Clarification of commercial services definition.
    Sec. 1444. Designation of commercial business entities.
                           Subtitle E--Other Matters

    Sec. 1451. Authority to enter into certain procurement-related
                                transactions and to carry out certain
                                prototype projects.
    Sec. 1452. Authority to make inflation adjustments to simplified
                                acquisition threshold.
    Sec. 1453. Technical corrections related to duplicative amendments.
    Sec. 1454. Prohibition on use of quotas.
    Sec. 1455. Applicability of certain provisions to sole source contracts
                                for goods and services treated as
                                commercial items.
    Sec. 1456. Public disclosure of noncompetitive contracting for the
                                reconstruction of infrastructure in Iraq.
          TITLE XV--HIGHER EDUCATION RELIEF OPPORTUNITIES FOR STUDENTS

    Sec. 1501. Short title; reference.
    Sec. 1502. Waiver authority for response to military contingencies and
                                national emergencies.
    Sec. 1503. Tuition refunds or credits for members of Armed Forces.
    Sec. 1504. Use of professional judgment.
    Sec. 1505. Definitions.
    Sec. 1506. Termination of authority.
                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    Sec. 2001. Short title.
                                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.
                             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. Family housing.
    Sec. 2403. Improvements to military family housing units.
    Sec. 2404. Energy conservation projects.
    Sec. 2405. Authorization of appropriations, Defense Agencies.
       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 authorization of certain fiscal year 2001
                                project.
    Sec. 2703. Extension of authorizations of certain fiscal year 2000
                                projects.
    Sec. 2704. Effective date.
                        TITLE XXVIII--GENERAL PROVISIONS

     Subtitle A--Military Construction Program and Military Family Housing
                                    Changes

    Sec. 2801. Increase in maximum amount of authorized annual emergency
                                construction.
    Sec. 2802. Authority to lease military family housing units in Italy.
    Sec. 2803. Changes to alternative authority for acquisition and
                                improvement of military housing.
    Sec. 2804. Additional material for annual report on housing
                                privatization program.
    Sec. 2805. Authority to convey property at military installations
                                closed or to be closed in exchange for
                                military construction activities.
    Sec. 2806. Congressional notification and reporting requirements and
                                limitations regarding use of operation and
                                maintenance funds for construction.
    Sec. 2807. Increase in authorized maximum lease term for family housing
                                and other facilities in certain foreign
                                countries.
    Sec. 2808. Annual report on military construction requirements to
                                support homeland defense missions of the
                                Armed Forces.
            Subtitle B--Real Property and Facilities Administration

    Sec. 2811. Real property transactions.
    Sec. 2812. Sense of Congress on demolition of Army Tacony Warehouse
                                Depot site, Philadelphia, Pennsylvania.
                          Subtitle C--Land Conveyances

    Sec. 2821. Termination of lease and conveyance of Army Reserve
                                facility, Conway, Arkansas.
    Sec. 2822. Actions to quiet title, Fallin Waters Subdivision, Eglin Air
                                Force Base, Florida.
    Sec. 2823. Modification of land conveyance, Eglin Air Force Base,
                                Florida.
    Sec. 2824. Land conveyance, Fort Campbell, Kentucky and Tennessee.
    Sec. 2825. Land conveyance, Army and Air Force Exchange Service
                                Property, Dallas, Texas.
    Sec. 2826. Land conveyance, Naval Reserve Center, Orange, Texas.
    Sec. 2827. Land conveyance, Fort Belvoir, Virginia.
    Sec. 2828. Land conveyance, Puget Sound Naval Shipyard, Bremerton,
                                Washington.
                           Subtitle D--Other Matters

    Sec. 2841. Redesignation of Yuma Training Range Complex as Bob Stump
                                Training Range Complex.
    Sec. 2842. Modification of authority to conduct a round of realignments
                                and closures of military installations in
                                2005.
    Sec. 2843. Use of force-structure plan for the Armed Forces in
                                preparation of selection criteria for base
                                closure round.
    Sec. 2844. Requirement for unanimous vote of Defense Base Closure and
                                Realignment Commission to recommend closure
                                of military installations not recommended
                                for closure by Secretary of Defense.
    Sec. 2845. Consideration of public-access-road issues related to
                                disposal of property at military
                                installations under base closure process.
     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. Defense environmental management.
    Sec. 3103. Other defense activities.
    Sec. 3104. Defense nuclear waste disposal.
    Sec. 3105. Energy supply.
       Subtitle B--Program Authorizations, Restrictions, and Limitations

    Sec. 3111. Modification of prohibition relating to low-yield nuclear
                                weapons.
    Sec. 3112. Termination of requirement for annual updates of long-term
                                plan for nuclear weapons stockpile life
                                extension program.
    Sec. 3113. Extension to all DOE facilities of authority to prohibit
                                dissemination of certain unclassified
                                information.
    Sec. 3114. Department of Energy project review groups not subject to
                                Federal Advisory Committee Act by reason of
                                inclusion of employees of Department of
                                Energy management and operating
                                contractors.
    Sec. 3115. Availability of funds.
    Sec. 3116. Limitation on obligation of funds for Nuclear Test Readiness
                                program.
    Sec. 3117. Requirement for on-site managers.
           Subtitle C--Consolidation of National Security Provisions

    Sec. 3121. Transfer and consolidation of recurring and general
                                provisions on Department of Energy national
                                security programs.
              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Sec. 3201. Authorization.
                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

    Sec. 3301. Authorized uses of National Defense Stockpile funds.
    Sec. 3302. Revisions to objectives for receipts for fiscal year 2000
                                disposals.
                     TITLE XXXIV--NAVAL PETROLEUM RESERVES

    Sec. 3401. Authorization of appropriations.
                      TITLE XXXV--MARITIME ADMINISTRATION

                         Subtitle A--General Provisions

    Sec. 3501. Short title.
    Sec. 3502. Definitions.
                      Subtitle B--Maritime Security Fleet

    Sec. 3511. Establishment of Maritime Security Fleet.
    Sec. 3512. Award of operating agreements.
    Sec. 3513. Effectiveness of operating agreements.
    Sec. 3514. Obligations and rights under operating agreements.
    Sec. 3515. Payments.
    Sec. 3516. National security requirements.
    Sec. 3517. Regulatory relief.
    Sec. 3518. Special rule regarding age of former participating fleet
                                vessel.
    Sec. 3519. Authorization of appropriations.
    Sec. 3520. Amendment to Shipping Act, 1916.
    Sec. 3521. Regulations.
    Sec. 3522. Repeals and conforming amendments.
    Sec. 3523. Effective dates.
        Subtitle C--National Defense Tank Vessel Construction Assistance

    Sec. 3531. National defense tank vessel construction program.
    Sec. 3532. Application procedure.
    Sec. 3533. Award of assistance.
    Sec. 3534. Priority for title XI assistance.
    Sec. 3535. Authorization of appropriations.
               Subtitle D--Maritime Administration Authorization

    Sec. 3541. Authorization of appropriations for Maritime Administration
                                for fiscal year 2004.
    Sec. 3542. Authority to convey vessel USS HOIST (ARS-40).
    Sec. 3543. Authority to convey NDRF vessels and vessel contents.
                    TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

    Sec. 3601. Short title.
               Subtitle A--Nonproliferation Program Enhancements

    Sec. 3611. Establishment of International Nuclear Materials Protection
                                and Cooperation Program in Department of
                                State.
       Subtitle B--Administration and Oversight of Threat Reduction and
                           Nonproliferation Programs

    Sec. 3621. Analysis of effect on threat reduction and nonproliferation
                                programs of congressional oversight
                                measures with respect to such programs.
    Sec. 3622. Annual report on the use of funds appropriated for threat
                                reduction and nonproliferation in states of
                                the former Soviet Union.
    Sec. 3623. Plan for and coordination of chemical and biological weapons
                                nonproliferation programs with states of
                                the former Soviet Union.
                  Subtitle C--United States--Russia Relations

    Sec. 3631. Comprehensive inventories and data exchanges on nuclear
                                weapons-grade material and nuclear weapons.
    Sec. 3632. Establishment of Duma-Congress nuclear threat reduction
                                working group.
    Sec. 3633. Joint United States/North Atlantic Treaty Organization
                                cooperation with Russia on theater-level
                                ballistic missile defenses.
    Sec. 3634. Encouragement of enhanced collaboration to achieve more
                                reliable Russian early warning systems.
    Sec. 3635. Teller-Kurchatov Alliance for Peace.
    Sec. 3636. Nonproliferation fellowships.
                           Subtitle D--Other Matters

    Sec. 3641. Promotion of discussions on nuclear and radiological
                                security and safety between the
                                International Atomic Energy Agency and the
                                Organization for Economic Cooperation and
                                Development.

    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 2004
    for procurement for the Army as follows:
                (1) For aircraft, $2,194,585,000.
                (2) For missiles, $1,594,662,000.
                (3) For weapons and tracked combat vehicles,
            $2,197,404,000.
                (4) For ammunition, $1,428,966,000.
                (5) For other procurement, $4,321,496,000.

    SEC. 102. NAVY AND MARINE CORPS.

        (a) Navy.--Funds are hereby authorized to be appropriated for
    fiscal year 2004 for procurement for the Navy as follows:
                (1) For aircraft, $9,050,048,000.
                (2) For weapons, including missiles and torpedoes,
            $2,529,821,000.
                (3) For ammunition, $963,355,000.
                (4) For shipbuilding and conversion, $11,472,384,000.
                (5) For other procurement, $4,614,892,000.
        (b) Marine Corps.--Funds are hereby authorized to be appropriated
    for fiscal year 2004 for procurement for the Marine Corps in the amount
    of $1,154,299,000.

    SEC. 103. AIR FORCE.

        Funds are hereby authorized to be appropriated for fiscal year 2004
    for procurement for the Air Force as follows:
                (1) For aircraft, $12,604,451,000.
                (2) For ammunition, $1,324,725,000.
                (3) For missiles, $4,348,039,000.
                (4) For other procurement, $11,376,059,000.

    SEC. 104. DEFENSE-WIDE ACTIVITIES.

        Funds are hereby authorized to be appropriated for fiscal year 2004
    for Defense-wide procurement in the amount of $3,734,821,000.

                           Subtitle B--Army Programs

    SEC. 111. STRYKER VEHICLE PROGRAM.

        (a) Limitation.--Of the funds authorized to be appropriated under
    section 101 for procurement for the Army for fiscal year 2004 that are
    available for the Stryker vehicle program, not more than $655,000,000
    may be obligated until--
                (1) the Secretary of the Army has submitted to the Deputy
            Secretary of Defense the report specified in subsection (b);
                (2) the Secretary of Defense has submitted to the
            congressional defense committees the report and certification
            referred to in subsection (c); and
                (3) a period of 30 days has elapsed after the date of the
            receipt by those committees of the report and certification
            under paragraph (2).
        (b) Secretary of the Army Report.--The report referred to in
    subsection (a)(1) is the report required to be submitted by the
    Secretary of the Army to the Deputy Secretary of Defense not later than
    July 8, 2003, that identifies options for modifications to the
    equipment and configuration of the Army brigade designated as ``Stryker
    brigades'' to assure that those brigades, after incorporating such
    modifications, provide--
                (1) a higher level of combat capability and sustainability;
                (2) a capability across a broader spectrum of combat
            operations; and
                (3) a capability to be employed independently of higher-
            level command formations and support.
        (c) Secretary of Defense Report and Certification.--The Secretary
    of Defense shall transmit to the congressional defense committees not
    later than 30 days after the date of the receipt by the Deputy
    Secretary of Defense of the report of the Secretary of the Army
    referred to in subsection (b), the modification options identified by
    the Secretary of the Army for purposes of that report. The Secretary of
    Defense shall include any comments that may be applicable to the
    analysis of the Secretary of the Army's report and shall certify to the
    committees whether in the Secretary's judgment fielding the fourth
    Stryker brigade as planned by the Army in a different configuration
    from the first three such brigades will fulfill the three objectives
    set forth in subsection (b).
        (d) Authorized Use of Remainder of Funds.--The funds authorized to
    be appropriated for procurement for the Army for fiscal year 2004 that
    are available for the Stryker vehicle program and that become available
    for obligation upon the conditions of subsection (a) being met shall be
    obligated either--
                (1) to develop, procure, and field equipment and
            capabilities for the fourth Stryker brigade combat team that
            would accelerate the options for modifications to enhance
            Stryker brigades identified in subsection (b); or
                (2) for the equipment identified in the fiscal year 2004
            budget request to be procured for the fourth Stryker brigade,
            if the Secretary of Defense, after reviewing the Secretary of
            Army's report under subsection (b), determines that the current
            configuration of the fourth Stryker brigade meets the criteria
            in paragraphs (1) through (3) of subsection (b) and certifies
            to the congressional defense committees that the equipment
            identified in the fiscal year 2004 budget request to be
            procured for the fourth Stryker brigade provides those
            capabilities.
        (e) Limitations.--(1) In obligating funds in accordance with either
    paragraph (1) or paragraph (2) of subsection (d), no action may be
    taken that would delay, hinder, or otherwise disrupt the current
    production and fielding schedule for the fourth Stryker brigade.
        (2) Notwithstanding any other provision of this section, all funds
    authorized to be appropriated under section 101 for procurement for the
    Army for fiscal year 2004 that are available for the Stryker vehicle
    program shall be used exclusively to develop, procure, and field
    Stryker combat vehicles.

    SEC. 112. CONFIGURATION OF FOURTH STRYKER BRIGADE COMBAT TEAM.

        (a) Configuration, Lethality Enhancements, and Sustainability.--The
    Secretary of the Army shall configure the fourth Stryker brigade combat
    team so that that brigade combat team provides the commanders of
    combatant commands with enhanced combat capability and sustainability
    well beyond the combat and sustainment capabilities provided by any one
    of the first three fielded Stryker brigade combat teams.
        (b) Funds.--The amount provided in section 101(3) is hereby
    increased by $100,000,000, to be available for procurement of
    additional lethality and sustainability enhancements for the fourth
    Stryker brigade combat team.
        (c) Options for Consideration.--In the execution of the funds
    provided pursuant to subsection (b)(1), the Secretary of the Army shall
    include among the enhancements considered for the configuration of the
    fourth Stryker brigade combat team enhancement with heavy armored
    vehicles, with additional heavy attack helicopters, with additional
    reconnaissance and attack helicopters, and with indirect fire artillery
    capabilities, or with any combination thereof.
        (d) Report Required.--Not later than 30 days after the date of the
    enactment of this Act, the Secretary of the Army shall submit to the
    congressional defense committees a report that details the additional
    types of lethality and sustainability enhancements that will be fielded
    as part of the new configuration of the fourth Stryker brigade combat
    team.

                           Subtitle C--Navy Programs

    SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A-18 AIRCRAFT PROGRAM.

        The Secretary of the Navy may, in accordance with section 2306b of
    title 10, United States Code, enter into a multiyear contract,
    beginning with the fiscal year 2005 program year, for procurement of
    aircraft in the F/A-18E, F/A-18F, and EA-18G configurations. The total
    number of aircraft procured through a multiyear contract under this
    section may not exceed 234.

    SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR TACTICAL TOMAHAWK CRUISE
                  MISSILE PROGRAM.

        The Secretary of the Navy may, in accordance with section 2306b of
    title 10, United States Code, enter into a multiyear contract,
    beginning with the fiscal year 2004 program year, for procurement of
    Tactical Tomahawk cruise missiles. The total number of missiles
    procured through a multiyear contract under this section shall be
    determined by the Secretary of the Navy, based upon the funds
    available, but not to exceed 900 in any year.

    SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA CLASS SUBMARINE
                  PROGRAM.

        (a) Authority.--The Secretary of the Navy may, in accordance with
    section 2306b of title 10, United States Code, enter into a multiyear
    contract, beginning with the fiscal year 2004 program year, for
    procurement of seven Virginia-class submarines.
        (b) Limitation.--The Secretary of the Navy may not enter into a
    contract authorized by subsection (a) until--
                (1) the Secretary submits to the congressional defense
            committees a certification that the Secretary has made each of
            the findings with respect to such contract specified in
            subsection (a) of section 2306b of title 10, United States
            Code; and
                (2) a period of 30 days has elapsed after the date of the
            transmission of such certification.

    SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR E-2C AIRCRAFT PROGRAM.

        (a) Aircraft.--The Secretary of the Navy may, in accordance with
    section 2306b of title 10, United States Code, enter into a multiyear
    contract, beginning with the fiscal year 2004 program year, for
    procurement of four E-2C and four TE-2C aircraft.
        (b) Engines.--The Secretary of the Navy may, in accordance with
    section 2306b of title 10, United States Code, enter into a multiyear
    contract, beginning with the fiscal year 2004 program year, for
    procurement of 16 engines for aircraft in the E-2C or TE-2C
    configuration.
        (c) Limitation on Term of Contracts.--Notwithstanding subsection
    (k) of section 2306b of title 10, United States Code, a contract under
    this section may not be for a period in excess of four program years.

    SEC. 125. LPD-17 CLASS VESSEL.

        If after May 7, 2003, there is enacted an Act making supplemental
    appropriations for the Department of Defense for fiscal year 2003 that
    includes appropriation of an amount for procurement of Tomahawk cruise
    missiles for the Navy, then--
                (1) the amount provided in section 102 for procurement of
            weapons for the Navy is reduced by the amount so appropriated
            or by $200,000,000, whichever is less, with such reduction to
            be derived from amounts authorized for procurement of Tomahawk
            cruise missiles; and
                (2) the amount provided in section 102 for shipbuilding and
            conversion is increased by the amount of the reduction under
            paragraph (1), with the amount of such increase to be available
            for advance procurement of long-lead items, including the
            advance fabrication of components, for one LPD-17 class vessel.

                         Subtitle D--Air Force Programs

    SEC. 131. AIR FORCE AIR REFUELING TRANSFER ACCOUNT.

        (a) Transfer Account.--There is hereby established an account for
    the Department of the Air Force to be known as the Air Force Air
    Refueling Transfer Account. Amounts in such account may be used in
    accordance with subsection (c).
        (b) Authorization of Appropriations.--Within the amount provided in
    section 103(1), there is authorized to be appropriated to the Air Force
    Air Refueling Transfer Account for fiscal year 2004 the amount of
    $229,200,000.
        (c) Authorized Use of Funds.--Amounts in the Air Force Air
    Refueling Transfer Account may be used for any of the following
    purposes, as determined by the Secretary of the Air Force:
                (1) Necessary expenses for fiscal year 2004 to prepare for
            leasing of tanker aircraft under section 8159 of the Department
            of Defense Appropriations Act, 2002 (division A of Public Law
            107-117; 115 Stat. 2284; 10 U.S.C. 2401a note).
                (2) Necessary expenses for fiscal year 2004 to prepare for
            purchase of tanker aircraft for the Air Force.
                (3) Retaining in active service (rather than retiring) KC-
            135E aircraft.
                (4) Maintenance of equipment for KC-135 aircraft that was
            purchased through a depot.
        (d) Authorized Transfers.--Subject to subsections (e) and (f), the
    Secretary of the Air Force may transfer funds in the Air Force Air
    Refueling Transfer Account to appropriations of the Air Force available
    for purposes set forth in subsection (c), including appropriations
    available for procurement, for research, development, test, and
    evaluation, for operation and maintenance, and for military personnel
    (in the case of retaining KC-135E aircraft in active service), in such
    amounts as the Secretary determines necessary for such purpose.
        (e) Limitation.--Amounts appropriated to the Air Force Air
    Refueling Transfer Account pursuant to the authorization of
    appropriations in subsection (b) may not be used to enter into a lease
    for tanker aircraft or to enter into a contract for procurement of
    tanker aircraft.
        (f) Notice to Congress.--A transfer of funds under subsection (d)
    may not be made until--
                (1) the Secretary of the Air Force notifies the
            congressional defense committees in writing of the amount and
            purpose of the proposed transfer, including each account to
            which the transfer is to be made; and
                (2) a period of 30 days has elapsed after the date on which
            the notice is received by those committees.

    SEC. 132. INCREASE IN NUMBER OF AIRCRAFT AUTHORIZED TO BE PROCURED
                  UNDER MULTIYEAR PROCUREMENT AUTHORITY FOR AIR FORCE C-
                  130J AIRCRAFT PROGRAM.

        Section 131(a) of the Bob Stump National Defense Authorization Act
    for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2475) is amended by
    striking ``40 C-130J aircraft'' and inserting ``42 C-130J aircraft''.

    SEC. 133. LIMITATION ON RETIRING C-5 AIRCRAFT.

        (a) Limitation.--The Secretary of the Air Force may not proceed
    with a decision to retire C-5A aircraft from the active inventory of
    the Air Force in any number that which would reduce the total number of
    such aircraft in the active inventory below 112 until--
                (1) the Air Force has modified a C-5A aircraft to the
            configuration referred to as the Reliability Enhancement and
            Reengining Program (RERP) configuration, as planned under the
            C-5 System Development and Demonstration program as of May 1,
            2003; and
                (2) the Director of Operational Test and Evaluation of the
            Department of Defense--
                        (A) conducts an operational evaluation of that
                    aircraft, as so modified; and
                        (B) provides to the Secretary of Defense and the
                    congressional defense committees an operational
                    assessment.
        (b) Operational Evaluation.--An operational evaluation for purposes
    of paragraph (2)(A) of subsection (a) is an evaluation, conducted
    during operational testing and evaluation of the aircraft, as so
    modified, of the performance of the aircraft with respect to
    reliability, maintainability, and availability and with respect to
    critical operational issues.
        (c) Operational Assessment.--An operational assessment for purposes
    of paragraph (2)(B) of subsection (a) is an operational assessment of
    the program to modify C-5A aircraft to the configuration referred to in
    subsection (a)(1) regarding both overall suitability and deficiencies
    of the program to improve performance of the C-5A aircraft relative to
    requirements and specifications for reliability, maintainability, and
    availability of that aircraft as in effect on May 1, 2003.

    SEC. 134. LIMITATION ON OBLIGATION OF FUNDS FOR PROCUREMENT OF F/A-22
                  AIRCRAFT.

        (a) Limitation.--Of the amount appropriated for fiscal year 2004
    for procurement of F/A-22 aircraft, $136,000,000 may not be obligated
    until the Under Secretary of Defense for Acquisition, Technology, and
    Logistics submits to the congressional defense committees the Under
    Secretary's certification that--
                (1) the four primary aircraft designated to participate in
            the dedicated initial operational test and evaluation program
            for the F/A-22 aircraft have each been equipped with the
            version of the avionics software operational flight program
            that is designated as version 3.1.2 or a later version; and
                (2) before the commencement of that dedicated initial
            operational test and evaluation program, those four aircraft
            (as so equipped) demonstrate, on average, an avionics software
            mean time between instability events of at least 20 hours.
        (b) Contingency Waiver Authority.--If the Under Secretary notifies
    the Secretary of Defense that the Under Secretary is unable to make the
    certification described in subsection (a), the Secretary may waive the
    limitation under that subsection. Upon making such a waiver--
                (1) the Secretary of Defense shall notify the congressional
            defense committees of the waiver and of the reasons therefor;
            and
                (2) the funds described in subsection (a) may then be
            obligated, by reason of such waiver, after the end of the 30-
            day period beginning on the date on which the Secretary's
            notification is received by those committees.

             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 2004
    for the use of the Department of Defense for research, development,
    test, and evaluation as follows:
                (1) For the Army, $9,332,382,000.
                (2) For the Navy, $14,343,360,000.
                (3) For the Air Force, $20,548,867,000.
                (4) For Defense-wide activities, $18,461,046,000, of which
            $286,661,000 is authorized for the Director of Operational Test
            and Evaluation.

    SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

        (a) Fiscal Year 2004.--Of the amounts authorized to be appropriated
    by section 201, $10,893,077,000 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.

    SEC. 203. PROGRAM INCREASES.

        (a) Computer-Assisted Medical Diagnostic Technology.--The amount
    provided in section 201(1) for research, development, test, and
    evaluation, Army, is hereby increased by $3,000,000, to be available
    for Medical Advanced Technology in Program Element 0603002A for
    evaluation for potential use by Department of Defense medical treatment
    facilities of commercially available medical diagnostic technology
    that, using a digital chemical library and decision support software,
    can be used for diagnosis of dermatological diseases.
        (b) Lightweight Cartridge Cases for Ammunition.--The amount
    provided in section 201(1) for research, development, test, and
    evaluation, Army, is hereby increased by $3,000,000, to be available
    for Weapons and Munitions Advanced Technology in Program Element
    0603004A for advanced technology development for lightweight cartridge
    cases for ammunition.
        (c) Aviation-Shipboard Information Technology.--The amount provided
    in section 201(2) for research, development, test, and evaluation,
    Navy, is hereby increased by $6,500,000, to be available for Shipboard
    Aviation Systems in Program Element 0604512N to complete research and
    development for the Aviation-Shipboard Information Technology
    Initiative.
        (d) AutoREAD.--The amount provided in section 201(2) for research,
    development, test, and evaluation, Navy, is hereby increased by
    $1,400,000, to be available for Shipboard Aviation Systems in Program
    Element 0604512N to complete research and development for the AutoREAD
    system for improving the accuracy and reducing the workload of
    collecting preventive maintenance data on aircraft launch and recovery
    systems.
        (e) SPIKE Urban Warfare System.--The amount provided in section
    201(2) for research, development, test, and evaluation, Navy, is hereby
    increased by $5,000,000, to be available for the Marine Corps Advanced
    Technology Demonstrations in Program Element 0603640M for development
    and demonstration of the SPIKE urban warfare system.
        (f) Research in Hydrographic Sciences.--The amount provided in
    section 201(2) for research, development, test, and evaluation, Navy,
    is hereby increased by $3,250,000, to be available for Air/Ocean
    Tactical Applications advanced component development and prototyping in
    Program Element 0603207N for hydrographic sciences research.
        (g) Shipboard Electronic Warfare Improvements.--The amount provided
    in section 201(2) for research, development, test, and evaluation,
    Navy, is hereby increased by $5,000,000, to be available for system
    development and demonstration for Tactical Command Systems in Program
    Element 0604231N for an at-sea demonstration for shipboard use of a
    variant of the F/A-22 digital electronic warfare product improvement
    program.
        (h) Aerospace Sensors.--The amount provided in section 201(3) for
    research, development, test, and evaluation, Air Force, is hereby
    increased by $4,000,000, to be available for Aerospace Sensors in
    Program Element 0602204F for development of general purpose
    reconfigurable signal processors suitable for time critical sensor
    processing for broad military intelligence, surveillance, and
    reconnaissance applications.
        (i) Elemental Detector Technology Appraisal.--The amount provided
    in section 201(4) for research, development, test, and evaluation,
    Defense-Wide, is hereby increased by $2,000,000, to be available for
    Program Element 0603750D8Z, Advanced Concept Technology Demonstrations,
    to evaluate the capability of an elemental detector to provide
    directional cueing to concentrations of specific elements and
    compounds.
        (j) Mustard Gas Antidote.--The amount provided in section 201(4)
    for research, development, test, and evaluation, Defense-wide, is
    hereby increased by $5,000,000, to be available for Chemical-Biological
    Defense Applied Research in Program Element 0603284BP for continuing
    applied research on an antidote for mustard gas.

        Subtitle B--Program Requirements, Restrictions, and Limitations

    SEC. 211. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF ELECTROMAGNETIC GUN
                  TECHNOLOGY.

        (a) Program Required.--The Secretary of Defense shall establish and
    carry out a collaborative program for evaluation and demonstration of
    advanced technologies and concepts for advanced gun systems that use
    electromagnetic propulsion for direct and indirect fire applications.
        (b) Description of Program.--The program under subsection (a) shall
    be carried out collaboratively pursuant to a memorandum of agreement to
    be entered into among the Secretary of the Army, the Secretary of the
    Navy, and the Director of the Defense Advanced Research Projects
    Agency. The program shall include the following activities:
                (1) Identification of technical objectives, quantified
            technical barriers, and enabling technologies associated with
            development of the objective electromagnetic gun systems
            envisioned to meet the needs of each of the Armed Forces and,
            in so doing, identification of opportunities for development of
            components or subsystems common to those envisioned gun
            systems.
                (2) Preparation of a time-based plan for development of
            electromagnetic gun systems for direct fire applications,
            indirect fire applications, or both direct and indirect fire
            applications (in the case of the Army and Marine Corps) and for
            indirect fire applications (in the case of the Navy), which--
                        (A) includes the programs currently planned by the
                    Army and by the Navy and demonstrates how the enabling
                    technologies common to such Army and Navy programs are
                    used; and
                        (B) provides estimated dates for decision points,
                    prototype demonstrations, and transitions of successful
                    cases from the collaborative program under this section
                    to an acquisition program.
                (3) For each of the enabling technologies common to the
            Army and Navy programs, identification of whether lead
            responsibility for developing that technology should be
            assigned to the Secretary of the Army, the Secretary of the
            Navy, or the Director, with the Director favored in cases in
            which the technology is highly challenging or high risk, high
            reward, and with each such Secretary favored in cases in which
            that Secretary's military department possesses superior
            expertise or experience with the technology.
                (4) Identification of a strategy for the participation of
            industry in the program.
        (c) Matters Included.--The advanced technologies and concepts
    included under the program may include, but are not limited to, the
    following:
                (1) Advanced electrical power, energy storage, and
            switching systems.
                (2) Electromagnetic launcher materials and construction
            techniques for long barrel life.
                (3) Guidance and control systems for electromagnetically
            launched projectiles.
                (4) Advanced projectiles and other munitions for
            electromagnetic gun systems.
                (5) Hypervelocity terminal effects.
        (d) Relationship to Separate Programs of Military Departments.--The
    Secretary of the Army and the Secretary of the Navy shall carry out
    separate programs for the evaluation and demonstration of advanced
    technologies and concepts for, and for the further development and
    acquisition of, advanced gun systems referred to in subsection (a).
    Each such Secretary shall incorporate in that Secretary's program the
    most promising of the technology products matured under the program
    under subsection (a).
        (e) Report.--Not later than March 31, 2004, the Secretary of the
    Army, the Secretary of the Navy, and the Director of the Defense
    Advanced Research Projects Agency shall jointly submit a report to the
    congressional defense committees on the implementation of the program
    under subsection (a). The report shall include the following:
                (1) A description of the memorandum of agreement entered
            into under subsection (b).
                (2) The time-based plan required by subsection (b)(2).
                (3) A description of the goals and objectives of the
            program.
                (4) Identification of funding required for fiscal year 2004
            and for the future years defense program to carry out the
            program.
                (5) A description of a plan for industry participation in
            the program.

    SEC. 212. AUTHORITY TO SELECT CIVILIAN EMPLOYEE OF DEPARTMENT OF
                  DEFENSE AS DIRECTOR OF DEPARTMENT OF DEFENSE TEST
                  RESOURCE MANAGEMENT CENTER.

        Section 196(b)(1) of title 10, United States Code, is amended--
                (1) in the first sentence, by inserting before the period
            at the end the following: ``or from among senior civilian
            officials or employees of the Department of Defense who have
            substantial experience in the field of test and evaluation'';
            and
                (2) in the second sentence, by striking ``vice admiral''
            and inserting ``the grade of vice admiral, or, in the case of a
            civilian official or employee, an equivalent level''.

    SEC. 213. DEVELOPMENT OF THE JOINT TACTICAL RADIO SYSTEM.

        (a) Joint Program Office.--The Secretary of Defense shall designate
    a single joint program office within the Department of Defense for
    management of the Joint Tactical Radio System development program. The
    Secretary shall provide for the head of that office to be selected on a
    rotating basis from among officers of different Armed Forces.
        (b) Consolidated Program Elements.--The Secretary shall provide
    that all funds for development and procurement of the Joint Tactical
    Radio System program shall be consolidated under and managed by the
    head of the joint program office designated under subsection (a).
        (c) Program Development.--The Secretary shall provide that, subject
    to the authority, direction, and control of the Secretary, the head of
    the joint program office designated under subsection (a) shall--
                (1) establish and control the performance specifications
            for the Joint Tactical Radio System;
                (2) establish and control the standards for development of
            the software and equipment for that system;
                (3) establish and control the standards for operation of
            that system; and
                (4) develop a single, unified concept of operations for all
            users of that system.

    SEC. 214. FUTURE COMBAT SYSTEMS.

        (a) Limitation.--None of the funds authorized to be appropriated
    under section 201(1) for development and demonstration of systems for
    the Future Combat Systems program may be obligated or expended until 30
    days after the Secretary of the Army submits to the congressional
    defense committees a report on such program. The report shall include
    the following:
                (1) The findings and conclusions of--
                        (A) the review of the Future Combat Systems program
                    carried out by the independent panel at the direction
                    of the Secretary of Defense; and
                        (B) the milestone B review of the Future Combat
                    Systems program carried out by the defense acquisition
                    board.
                (2) For each of the key performance parameters relating to
            the Future Combat Systems program, the threshold value at which
            the utility of the individual systems comprising the Future
            Combat Systems program become questionable.
                (3) For each of the three projects requested under program
            element 64645A, Armored Systems Modernization, a completed
            analysis of alternatives.
        (b) Separate Program Elements.--For fiscal years beginning with
    2004, the Secretary of Defense shall ensure that--
                (1) each project under the Army's Future Combat Systems
            program (whether in existence before, on, or after the date of
            the enactment of this Act) is assigned a separate, dedicated
            program element; and
                (2) before such a program element is assigned to such a
            project, an analysis of alternatives for such project is
            completed.

    SEC. 215. ARMY PROGRAM TO PURSUE TECHNOLOGIES LEADING TO THE ENHANCED
                  PRODUCTION OF TITANIUM BY THE UNITED STATES.

        (a) Efforts Required.--The Secretary of Defense shall--
                (1) assess promising technologies leading to the enhanced
            production of titanium by the United States; and
                (2) select, on a competitive basis, the most viable such
            technologies for research, development, and production.
        (b) Executive Agent.--The Secretary of the Army shall serve as
    executive agent in carrying out subsection (a).
        (c) Funding.--Of the funds authorized to be appropriated by section
    201(1) for research, development, test, and evaluation, Army, for
    fiscal year 2004, $8,000,000 shall be available in program element
    62624A to carry out this section.

    SEC. 216. EXTENSION OF REPORTING REQUIREMENT FOR RAH-66 COMANCHE
                  AIRCRAFT PROGRAM.

        Section 211 of the Bob Stump National Defense Authorization Act for
    Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2479) is amended in
    subsection (a) by inserting ``and fiscal year 2004'' after ``fiscal
    year 2003''.

    SEC. 217. STUDIES OF FLEET PLATFORM ARCHITECTURES FOR THE NAVY.

        (a) Independent Studies.--(1) The Secretary of Defense shall
    provide for the performance of eight independent studies on alternative
    future fleet platform architectures for the Navy.
        (2) The Secretary shall forward the results of each study to the
    congressional defense committees not later than March 1, 2004.
        (3) Each such study shall be submitted both in unclassified, and to
    the extent necessary, in classified versions.
        (b) Entities to Perform Studies.--The Secretary of Defense shall
    provide for the studies under subsection (a) to be performed as
    follows:
                (1) One shall be performed by the Secretary of the Navy,
            using Department of the Navy personnel.
                (2) Four shall be performed by qualified analytical
            organizations external to Department of Defense.
                (3) Three shall be performed by defense firms, or teams of
            defense firms, in the private sector.
        (c) Performance of Studies.--(1) The Secretary of Defense shall
    require each entity undertaking one of the studies under this section
    to commit to performing the study independently from the other studies
    and, in the case of the entities selected under paragraphs (2) and (3)
    of subsection (b), independently from the Navy, so as to ensure
    independent analysis.
        (2) In performing a study under this section, the entity performing
    the study shall consider the following:
                (A) The National Security Strategy of the United States.
                (B) Potential future threats to the United States and to
            United States naval forces.
                (C) The traditional roles and missions of United States
            naval forces.
                (D) Alternative roles and missions.
                (E) The role of evolving technology on future naval forces.
                (F) Opportunities for reduced manning and unmanned ships
            and vehicles in future naval forces.
        (3) Each entity performing a study under this section, while
    cognizant of current overall fleet platform architecture, shall not
    allow the current features of fleet platform architecture to constrain
    the analysis for purposes of that study.
        (d) Naval Studies.--Each study under this section shall present one
    or two possible overall fleet platform architectures. For each such
    architecture presented, the study shall include the following:
                (1) The numbers, kinds, and sizes of vessels, the numbers
            and types of associated manned and unmanned vehicles, and the
            basic capabilities of each of those platforms.
                (2) Other information needed to understand that
            architecture in basic form and the supporting analysis.
        (e) Costs.--Within the amount provided in section 201(2), the
    amount of $1,600,000 is authorized, within Program Element 65154N, for
    the purposes of this section.

                     Subtitle C--Ballistic Missile Defense

    SEC. 221. ENHANCED FLEXIBILITY FOR BALLISTIC MISSILE DEFENSE SYSTEMS.

        (a) Flexibility for Specification of Program Elements.--Subsection
    (a) of section 223 of title 10, United States Code, is amended--
                (1) by inserting ``by President'' in the subsection heading
            after ``Specified'';
                (2) by striking ``program elements governing functional
            areas as follows:'' and inserting ``such program elements as
            the President may specify.''; and
                (3) by striking paragraphs (1) through (6).
        (b) Conforming Amendments.--(1) Subsection (c) of such section is
    amended by striking ``for each program element specified in subsection
    (a)'' and inserting ``for a fiscal year for any program element
    specified for that fiscal year pursuant to subsection (a)''.
        (2) Subsection (c)(3) of section 232 of the National Defense
    Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat.
    1037; 10 U.S.C. 2431 note) is amended by striking ``each functional
    area'' and all that follows through ``subsection (b),'' and inserting
    ``each then-current program element for ballistic missile defense
    systems in effect pursuant to subsection (a) or (b)''.
        (c) Amendments Relating to Changes in Acquisition Terminology.--(1)
    Section 223(b)(2) of title 10, United States Code, is amended by
    striking ``means the development phase whose'' and inserting ``means
    the period in the course of an acquisition program during which the''.
        (2) Subsection (d)(1) of section 232 of the National Defense
    Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat.
    1037; 10 U.S.C. 2431 note) is amended by striking ``, as added by
    subsection (b)''.

                      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 2004
    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, $25,050,587,000.
                (2) For the Navy, $27,901,790,000.
                (3) For the Marine Corps, $3,517,756,000.
                (4) For the Air Force, $25,434,460,000.
                (5) For Defense-wide activities, $16,134,047,000.
                (6) For the Army Reserve, $1,954,009,000.
                (7) For the Naval Reserve, $1,171,921,000.
                (8) For the Marine Corps Reserve, $199,452,000.
                (9) For the Air Force Reserve, $2,170,188,000.
                (10) For the Army National Guard, $4,194,331,000.
                (11) For the Air National Guard, $4,404,646,000.
                (12) For the United States Court of Appeals for the Armed
            Forces, $10,333,000.
                (13) For Environmental Restoration, Army, $396,018,000.
                (14) For Environmental Restoration, Navy, $256,153,000.
                (15) For Environmental Restoration, Air Force,
            $384,307,000.
                (16) For Environmental Restoration, Defense-wide,
            $24,081,000.
                (17) For Environmental Restoration, Formerly Used Defense
            Sites, $212,619,000.
                (18) For Overseas Humanitarian, Disaster, and Civic Aid
            programs, $59,000,000.
                (19) For Cooperative Threat Reduction programs,
            $450,800,000.
                (20) United States Industrial Base Capabilities Fund,
            $100,000,000.

    SEC. 302. WORKING CAPITAL FUNDS.

        Funds are hereby authorized to be appropriated for fiscal year 2004
    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, $632,261,000.
                (2) For the National Defense Sealift Fund, $1,102,762,000.
                (3) For the Defense Commissary Agency Working Capital Fund,
            $1,089,246,000.

    SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

        (a) Defense Health Program.--Funds are hereby authorized to be
    appropriated for the Department of Defense for fiscal year 2004 for
    expenses, not otherwise provided for, for the Defense Health Program,
    $15,317,063,000, of which--
                (1) $14,923,441,000 is for Operation and Maintenance;
                (2) $65,796,000 is for Research, Development, Test, and
            Evaluation; and
                (3) $327,826,000 is for Procurement.
        (b)  Chemical Agents and Munitions Destruction, Defense.--(1) Funds
    are hereby authorized to be appropriated for the Department of Defense
    for fiscal year 2004 for expenses, not otherwise provided for, for
    Chemical Agents and Munitions Destruction, Defense, $1,580,261,000, of
    which--
                (A) $1,249,168,000 is for Operation and Maintenance;
                (B) $251,881,000 is for Research, Development, Test, and
            Evaluation; and
                (C) $79,212,000 is for Procurement.
        (2) Amounts authorized to be appropriated under paragraph (1) are
    authorized for--
                (A) 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
                (B) the destruction of chemical warfare materiel of the
            United States that is not covered by section 1412 of such Act.
        (c) Drug Interdiction and Counter-Drug Activities, Defense-wide.--
    Funds are hereby authorized to be appropriated for the Department of
    Defense for fiscal year 2004 for expenses, not otherwise provided for,
    for Drug Interdiction and Counter-Drug Activities, Defense-wide,
    $817,371,000.
        (d) Defense Inspector General.--Funds are hereby authorized to be
    appropriated for the Department of Defense for fiscal year 2004 for
    expenses, not otherwise provided for, for the Office of the Inspector
    General of the Department of Defense, $162,449,000.

    SEC. 304. COUNTEREXPLOITATION INITIATIVE.

        Within the amount authorized to be appropriated by section 301(5)
    for operations and maintenance, Defense-wide, the amount for the United
    States Special Operations Command is hereby increased by $1,100,000, to
    be made available for the initiative for accurately tracing portable,
    sensitive items exported beyond the borders of the United States.

    SEC. 305. REDUCTION IN AUTHORIZATION FOR AIR FORCE OPERATION AND
                  MAINTENANCE ACCOUNT.

        The amount authorized to be appropriated in section 301(4) is
    hereby reduced by $135,500,000.

                      Subtitle B--Environmental Provisions

    SEC. 311. REAUTHORIZATION AND MODIFICATION OF TITLE I OF SIKES ACT.

        (a) Reauthorization.--Section 108 of the Sikes Act (16 U.S.C. 670f)
    is amended by striking ``fiscal years 1998 through 2003'' each place it
    appears and inserting ``fiscal years 2004 through 2008''.
        (b) Sense of Congress Regarding Section 107.--(1) Congress finds
    the following:
                (A) The Department of Defense maintains over 25,000,000
            acres of valuable fish and wildlife habitat on approximately
            400 military installations nationwide.
                (B) These lands contain a wealth of plant and animal life,
            vital wetlands for migratory birds, and nearly 300 federally
            listed threatened species and endangered species.
                (C) Increasingly, land surrounding military bases are being
            developed with residential and commercial infrastructure that
            fragments fish and wildlife habitat and decreases its ability
            to support a diversity of species.
                (D) Comprehensive conservation plans, such as integrated
            natural resource management plans under the Sikes Act (16
            U.S.C. 670 et seq.), can ensure that these ecosystem values can
            be protected and enhanced while allowing these lands to meet
            the needs of military operations.
                (E) Section 107 of the Sikes Act (16 U.S.C. 670e-2)
            requires sufficient numbers of professionally trained natural
            resources management personnel and natural resources law
            enforcement personnel to be available and assigned
            responsibility to perform tasks necessary to carry out title I
            of the Sikes Act, including the preparation and implementation
            of integrated natural resource management plans.
                (F) Managerial and policymaking functions performed by
            Department of Defense on-site professionally trained natural
            resource management personnel on military installations are
            appropriate governmental functions.
                (G) Professionally trained civilian biologists in permanent
            Federal Government career managerial positions are essential to
            oversee fish and wildlife and natural resource conservation
            programs are essential to the conservation of wildlife species
            on military land.
        (2) It is the sense of Congress that the Secretary of Defense
    should take whatever steps are necessary to ensure that section 107 of
    the Sikes Act (16 U.S.C. 670e-2) is fully implemented consistent with
    the findings made in paragraph (1).
        (c) Pilot Program for Invasive Species Management for Military
    Installations.--(1) Section 101(b)(1) of the Sikes Act (16 U.S.C.
    670a(b)(1)) is amended by redesignating subparagraphs (D) through (J)
    in order as subparagraphs (E) through (K), and by inserting after
    subparagraph (C) the following:
                        ``(D) during fiscal years 2004 through 2008, in the
                    case of a plan for a military installation in Guam,
                    management, control, and eradication of invasive
                    species that are not native to the ecosystem of the
                    military installation and the introduction of which
                    cause or may cause harm to military readiness, the
                    environment, the economy, or human health and
                    safety;''.
        (2) The amendment made by paragraph (1) shall apply--
                (A) to any integrated natural resources management plan
            prepared for a military installation in Guam under section
            101(a)(1) of the Sikes Act (16 U.S.C. 670a(a)(1)) on or after
            the date of the enactment of this Act; and
                (B) to any integrated natural resources management plan
            prepared for a military installation in Guam under section
            101(a)(1) of the Sikes Act (16 U.S.C. 670a(a)(1)) before the
            date of the enactment of this Act, effective March 1, 2004.

    SEC. 312. AUTHORIZATION FOR DEFENSE PARTICIPATION IN WETLAND MITIGATION
                  BANKS.

        (a) In General.--Chapter 159 of title 10, United States Code, is
    amended by inserting after section 2694a the following new section:
    ``Sec. 2694b. Participation in wetland mitigation banks
        ``(a) Authority to Participate.--The Secretary of a military
    department, and the Secretary of Defense with respect to matters
    concerning a Defense Agency, when engaged in an authorized activity
    that may or will result in the destruction of, or an adverse impact to,
    a wetland, may make payments to a wetland mitigation banking program or
    `in-lieu-fee' mitigation sponsor approved in accordance with the
    Federal Guidance for the Establishment, Use and Operation of Mitigation
    Banks (60 Fed. Reg. 58605; November 28, 1995) or the Federal Guidance
    on the Use of In-Lieu-Fee Arrangements for Compensatory Mitigation
    Under Section 404 of the Clean Water Act and Section 10 of the Rivers
    and Harbors Act (65 Fed. Reg. 66913; November 7, 2000), or any
    successor administrative guidance.
        ``(b) Alternative to Creation of Wetland.--Participation in a
    wetland mitigation banking program or consolidated user site under
    subsection (a) shall be in lieu of mitigating wetland impacts through
    the creation of a wetland on Federal property.
        ``(c) Treatment of Payments.--Payments made under subsection (a) to
    a wetland mitigation banking program or consolidated user site may be
    treated as eligible project costs for military construction.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    2694a the following new item:

    ``2694b. Participation in wetland mitigation banks.''.

    SEC. 313. INCLUSION OF ENVIRONMENTAL RESPONSE EQUIPMENT AND SERVICES IN
                  NAVY DEFINITIONS OF SALVAGE FACILITIES AND SALVAGE
                  SERVICES.

        (a) Salvage Facilities.--Section 7361 of title 10, United States
    Code, is amended by adding at the end the following new subsection:
        ``(e) Salvage Facilities Defined.--In this section, the term
    `salvage facilities' includes equipment and gear utilized to prevent,
    abate, or minimize damage to the environment in connection with a
    marine salvage operation.''.
        (b) Settlement of Claims for Salvage Services.--Section 7363 of
    such title is amended--
                (1) by inserting ``(a) Authority to Settle Claim.--''
            before ``The Secretary''; and
                (2) by adding at the end the following new subsection:
        ``(b) Salvage Services Defined.--In this section, the term `salvage
    services' includes services performed in connection with a marine
    salvage operation that are intended to prevent, abate, or minimize
    damage to the environment.''.

    SEC. 314. CLARIFICATION OF DEPARTMENT OF DEFENSE RESPONSE TO
                  ENVIRONMENTAL EMERGENCIES.

        (a) Transportation of Humanitarian Relief Supplies to Respond to
    Environmental Emergencies.--Section 402 of title 10, United States
    Code, is amended--
                (1) by redesignating subsection (d) as subsection (e); and
                (2) by inserting after subsection (c) the following new
            subsection (d):
        ``(d) Response to Environmental Emergencies.--The authority of the
    Secretary of Defense to transport humanitarian relief supplies under
    this section includes the authority to transport supplies intended for
    use to respond to, or mitigate the effects of, an event or condition,
    such as an oil spill, that threatens serious harm to the
    environment.''.
        (b) Conditions on Provision of Transportation.--Subsection (b) of
    such section is amended--
                (1) in paragraph (1)(C), by inserting ``or entity'' after
            ``people'';
                (2) in paragraph (1)(E), by inserting ``or use'' after
            ``distribution''; and
                (3) in paragraph (3), by striking ``donor to ensure that
            supplies to be transported under this section'' and inserting
            ``entity requesting the transport of supplies under this
            section to ensure that the supplies''.
        (c) Provision of Disaster Assistance.--Section 404 of such title is
    amended--
                (1) in subsection (a), by inserting ``or serious harm to
            the environment'' after ``loss of lives''; and
                (2) in subsection (c)(2), by inserting ``or the
            environment'' after ``human lives''.
        (d) Provision of Humanitarian Assistance.--Section 2561(a) of such
    title is amended--
                (1) by inserting ``(1)'' before ``To the extent''; and
                (2) by adding at the end the following new paragraph:
        ``(2) The authority of the Department of Defense to provide
    humanitarian assistance under this section includes the authority to
    transport supplies or provide assistance intended for use to respond
    to, or mitigate the effects of, an event or condition, such as an oil
    spill, that threatens serious harm to the environment.''.

    SEC. 315. REQUIREMENTS FOR RESTORATION ADVISORY BOARDS AND EXEMPTION
                  FROM FEDERAL ADVISORY COMMITTEE ACT.

        (a) Membership and Meeting Requirements for Restoration Advisory
    Boards.--The Secretary of Defense shall amend the regulations required
    by section 2705(d)(2) of title 10, United States Code, relating to the
    establishment, characteristics, composition, and funding of restoration
    advisory boards to ensure that each restoration advisory board complies
    with the following requirements:
                (1) Each restoration advisory board shall be fairly
            balanced in its membership in terms of the points of view
            represented and the functions to be performed.
                (2) Unless a closed or partially closed meeting is
            determined to be proper in accordance with one or more of the
            exceptions listed in the section 552b(c) of title 5, United
            States Code, each meeting of a restoration advisory board shall
            be--
                        (A) held at a reasonable time and in a manner or
                    place reasonably accessible to the public, including
                    individuals with disabilities; and
                        (B) open to the public.
                (3) Timely notice of each meeting of a restoration advisory
            board shall be published in a local newspaper of general
            circulation.
                (4) Interested persons may appear before or file statements
            with a restoration advisory board, subject to such reasonable
            restrictions as the Secretary may prescribe.
                (5) Subject to section 552 of title 5, United States Code,
            the records, reports, minutes, appendixes, working papers,
            drafts, studies, agenda, or other documents that were made
            available to, prepared for, or prepared by each restoration
            advisory board shall be available for public inspection and
            copying at a single, publicly accessible location, such as a
            public library or an appropriate office of the military
            installation for which the restoration advisory board is
            established, at least until the restoration advisory board is
            terminated.
                (6) Detailed minutes of each meeting of each restoration
            advisory board shall be kept and shall contain a record of the
            persons present, a complete and accurate description of matters
            discussed and conclusions reached, and copies of all reports
            received, issued, or approved by the restoration advisory
            board. The accuracy of the minutes of a restoration advisory
            board shall be certified by the chairperson of the board.
        (b) FACA Exemption.--Section 2705(d)(2) of title 10, United States
    Code, is amended by adding at the end the following new subparagraph:
        ``(C) The Federal Advisory Committee Act (5 U.S.C. App.) shall not
    apply to a restoration advisory board established under this
    subsection.''.

    SEC. 316. REPORT REGARDING IMPACT OF CIVILIAN COMMUNITY ENCROACHMENT
                  AND CERTAIN LEGAL REQUIREMENTS ON MILITARY INSTALLATIONS
                  AND RANGES.

        (a) Study Required.--The Secretary of Defense shall conduct a study
    on the impact, if any, of the following types of activities at military
    installations and operational ranges:
                (1) Civilian community encroachment on those military
            installations and ranges whose operational training activities,
            research, development, test, and evaluation activities, or
            other operational, test and evaluation, maintenance, storage,
            disposal, or other support functions require, or in the future
            reasonably may require, safety or operational buffer areas. The
            requirement for such a buffer area may be due to a variety of
            factors, including air operations, ordnance operations and
            storage, or other activities that generate or might generate
            noise, electro-magnetic interference, ordnance arcs, or
            environmental impacts that require or may require safety or
            operational buffer areas.
                (2) Compliance by the Department of Defense with State
            Implementation Plans for Air Quality under section 110 of the
            Clean Air Act (42 U.S.C. 7410).
                (3) Compliance by the Department of Defense with the Solid
            Waste Disposal Act (42 U.S.C. 6901 et seq.) and the
            Comprehensive Environmental Response, Compensation, and
            Liability Act of 1980 (42 U.S.C. 9601 et seq.).
        (b) Matters To Be Included With Respect to Civilian
    Encroachments.--With respect to paragraph (1) of subsection (a), the
    study shall include the following:
                (1) A list of all military installations described in
            subsection (a)(1) at which civilian community encroachment is
            occurring.
                (2) A description and analysis of the types and degree of
            such civilian community encroachment at each military
            installation included on the list.
                (3) An analysis, including views and estimates of the
            Secretary of Defense, of the current and potential future
            impact of such civilian community encroachment on operational
            training activities, research, development, test, and
            evaluation activities, and other significant operational, test
            and evaluation, maintenance, storage, disposal, or other
            support functions performed by military installations included
            on the list. The analysis shall include the following:
                        (A) A review of training and test ranges at
                    military installations, including laboratories and
                    technical centers of the military departments, included
                    on the list.
                        (B) A description and explanation of the trends of
                    such encroachment, as well as consideration of
                    potential future readiness problems resulting from
                    unabated encroachment.
                (4) An estimate of the costs associated with current and
            anticipated partnerships between the Department of Defense and
            non-Federal entities to create buffer zones to preclude further
            development around military installations included on the list,
            and the costs associated with the conveyance of surplus
            property around such military installations for purposes of
            creating buffer zones.
                (5) Options and recommendations for possible legislative or
            budgetary changes necessary to mitigate current and anticipated
            future civilian community encroachment problems.
        (c) Matters To Be Included With Respect to Specified Laws.--With
    respect to paragraphs (2) and (3) of subsection (a), the study shall
    include the following:
                (1) A list of all military installations and other
            locations at which the Armed Forces are encountering problems
            related to compliance with the laws specified in such
            paragraphs.
                (2) A description and analysis of the types and degree of
            compliance problems encountered.
                (3) An analysis, including views and estimates of the
            Secretary of Defense, of the current and potential future
            impact of such compliance problems on the following functions
            performed at military installations:
                        (A) Operational training activities.
                        (B) Research, development, test, and evaluation
                    activities.
                        (C) Other significant operational, test and
                    evaluation, maintenance, storage, disposal, or other
                    support functions.
                (4) A description and explanation of the trends of such
            compliance problems, as well as consideration of potential
            future readiness problems resulting from such compliance
            problems.
        (d) Report.--Not later than January 31, 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 containing the results of the study conducted under subsection
    (a), including the specific matters required to be addressed by
    paragraphs (1) through (5) of subsection (b) and paragraphs (1) through
    (4) of subsection (c).

    SEC. 317. MILITARY READINESS AND 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 shall 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 paragraph 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 paragraph affects the obligation of the
    Department of Defense to comply with section 9, 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. 318. MILITARY READINESS AND MARINE MAMMAL PROTECTION.

        (a) Definition of Harassment for Military Readiness Activities.--
    Section 3(18) of the Marine Mammal Protection Act of 1972 (16 U.S.C.
    1362(18)) is amended by striking subparagraphs (B) and (C) and
    inserting the following new subparagraphs:
                ``(B) In the case of a military readiness activity (as
            defined in section 315(f) of Public Law 107-314; 16 U.S.C. 703
            note), the term `harassment' means--
                        ``(i) any act that injures or has the significant
                    potential to injure a marine mammal or marine mammal
                    stock in the wild; or
                        ``(ii) any act that disturbs or is likely to
                    disturb a marine mammal or marine mammal stock in the
                    wild by causing disruption of natural behavioral
                    patterns, including, but not limited to, migration,
                    surfacing, nursing, breeding, feeding, or sheltering,
                    to a point where such behavioral patterns are abandoned
                    or significantly altered.
                ``(C) The term `Level A harassment' means harassment
            described in subparagraph (A)(i) or, in the case of a military
            readiness activity, harassment described in subparagraph
            (B)(i).
                ``(D) The term `Level B harassment' means harassment
            described in subparagraph (A)(ii) or, in the case of a military
            readiness activity, harassment described in subparagraph
            (B)(ii).''.
        (b) Exemption of Actions Necessary for National Defense.--Section
    101 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1371) is
    amended by inserting after subsection (e) the following:
        ``(f) Exemption of Actions Necessary for National Defense.--(1) The
    Secretary of Defense, after conferring with the Secretary of Commerce,
    the Secretary of the Interior, or both, as appropriate, may exempt any
    action or category of actions undertaken by the Department of Defense
    or its components from compliance with any requirement of this Act, if
    the Secretary determines that it is necessary for national defense.
        ``(2) An exemption granted under this subsection--
                ``(A) subject to subparagraph (B), shall be effective for a
            period specified by the Secretary of Defense; and
                ``(B) shall not be effective for more than 2 years.
        ``(3)(A) The Secretary of Defense may issue additional exemptions
    under this subsection for the same action or category of actions,
    after--
                ``(i) conferring with the Secretary of Commerce, the
            Secretary of the Interior, or both as appropriate; and
                ``(ii) making a new determination that the additional
            exemption is necessary for national defense.
        ``(B) Each additional exemption under this paragraph shall be
    effective for a period specified by the Secretary of Defense, of not
    more than 2 years.''.
        (c) Incidental Takings of Marine Mammals in Military Readiness
    Activities.--Section 101(a)(5) of the Marine Mammal Protection Act of
    1972 (16 U.S.C. 1371(a)(5)) is amended--
                (1) in subparagraph (A), by adding at the end the
            following:
            ``Notwithstanding the preceding sentence, the Secretary is not
            required to publish notice under this subparagraph with respect
            to incidental takings while engaged in a military readiness
            activity (as defined in section 315(f) of Public Law 107-314;
            16 U.S.C. 703 note) authorized by the Secretary of Defense,
            except in the Federal Register.'';
                (2) in subparagraph (D), by adding at the end the following
            new clause:
                ``(vi) Notwithstanding clause (iii), the Secretary is not
            required to publish notice under this subparagraph with respect
            to an authorization under clause (i) of incidental takings
            while engaged in a military readiness activity (as defined in
            section 315(f) of Public Law 107-314; 16 U.S.C. 703 note)
            authorized by the Secretary of Defense, except in the Federal
            Register.''; and
                (3) by adding at the end the following new subparagraph:
                ``(F) In determining whether a military readiness activity
            (as defined in section 315(f) of Public Law 107-314; 16 U.S.C.
            703 note) authorized by the Secretary of Defense is in
            compliance with the requirements of subparagraphs (A), (B), and
            (D), the following references shall not apply:
                        ``(i) In subparagraph (A), `within a specified
                    geographical region' and `within that region of small
                    numbers'.
                        ``(ii) In subparagraph (B), `within a specified
                    geographical region' and `within one or more regions'.
                        ``(iii) In subparagraph (D), `within a specific
                    geographic region', `of small numbers', and `within
                    that region'.''.

    SEC. 319. LIMITATION ON DEPARTMENT OF DEFENSE RESPONSIBILITY FOR
                  CIVILIAN WATER CONSUMPTION IMPACTS RELATED TO FORT
                  HUACHUCA, ARIZONA.

        (a) Rule of Construction.--For purposes of section 7 of the
    Endangered Species Act of 1973 (16 U.S.C. 1536), in the case of Fort
    Huachuca, Arizona, the Secretary of the Army may be held responsible
    for water consumption that occurs on that military installation (or
    outside of that installation but under the direct authority and control
    of the Secretary). The Secretary of the Army is not responsible for
    water consumption that occurs outside of Fort Huachuca and is beyond
    the direct authority and control of the Secretary even though the water
    is derived from a watershed basin shared by that military installation
    and the water consumption outside of that installation may impact a
    critical habitat or endangered species outside the installation.
        (b) Voluntary Efforts.--Nothing in this section shall prohibit the
    Secretary of the Army from voluntarily undertaking efforts to mitigate
    water consumption related to Fort Huachuca.
        (c) Definition of Water Consumption.--In this section, the term
    ``water consumption'' means the consumption of water, from any source,
    for human purposes of any kind, including household or industrial use,
    irrigation, or landscaping.
        (d) Effective Date.--This section applies only to Department of
    Defense actions regarding which consultation or reconsultation under
    section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) is
    first required with regard to Fort Huachuca on or after the date of the
    enactment of this Act.

    SEC. 320. CONSTRUCTION OF WETLAND CROSSINGS, CAMP SHELBY COMBINED ARMS
                  MANEUVER AREA, CAMP SHELBY, MISSISSIPPI.

        Amounts authorized to be appropriated by section 301(1) for
    operation and maintenance for the Army shall be available to the
    Secretary of the Army to construct wetlands crossings at the Camp
    Shelby Combined Arms Maneuver Area at Camp Shelby, Mississippi, for the
    purpose of ensuring that combat arms training performed at that area is
    conducted in conformance with the spirit and intent of applicable
    environmental laws.

                     Subtitle C--Workplace and Depot Issues

    SEC. 321. EXCLUSION OF CERTAIN EXPENDITURES FROM PERCENTAGE LIMITATION
                  ON CONTRACTING FOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE
                  AND REPAIR WORKLOADS.

        Section 2474(f)(1) of title 10, United States Code, is amended by
    striking ``entered into during fiscal years 2003 through 2006''.

    SEC. 322. HIGH-PERFORMING ORGANIZATION BUSINESS PROCESS REENGINEERING
                  PILOT PROGRAM.

        (a) Pilot Program.--(1) The Secretary of Defense shall establish a
    pilot program under which the Secretary of each military department
    shall administer, or continue the implementation of, high-performing
    organizations at military installations through the conduct of a
    Business Process Reengineering initiative.
        (2) The implementation and management of a Business Process
    Reengineering initiative under the pilot program shall be the
    responsibility of the commander of the military installation at which
    the Business Process Reengineering initiative is carried out.
        (b) Eligible Organizations.--Two types of organizations are
    eligible for selection to participate in the pilot program:
                (1) Organizations that underwent a Business Process
            Reengineering initiative within the preceding five years,
            achieved major performance enhancements under the initiative,
            and will be able to sustain previous or achieve new performance
            goals through the continuation of its existing or completed
            Business Process Reengineering plan.
                (2) Organizations that have not undergone or have not
            successfully completed a Business Process Reengineering
            initiative, but which propose to achieve, and reasonably could
            reach, enhanced performance goals through implementation of a
            Business Process Reengineering initiative.
        (c) Additional Eligibility Requirements.--(1) To be eligible for
    selection to participate in the pilot program under subsection (b)(1),
    an organization described in such subsection must be able to
    demonstrate the completion of a total organizational assessment that
    resulted in enhanced performance measures at least comparable to those
    that might be achieved through competitive sourcing.
        (2) To be eligible for selection to participate in the pilot
    program under subsection (b)(2), an organization described in such
    subsection must be able to identify--
                (A) functions, processes, and measures to be studied under
            the Business Process Reengineering initiative;
                (B) adequate resources for assignment to carry out the
            Business Process Reengineering initiative; and
                (C) labor/management agreements in place to ensure
            effective implementation of the Business Process Reengineering
            initiative.
        (d) Pilot Program Limitations.--The pilot program shall be subject
    to the following limitations:
                (1) Total participants is limited to 15 military
            installations, with some participants to be drawn from
            organizations described in subsection (b)(1) and some
            participants drawn from organizations described in subsection
            (b)(2).
                (2) During the implementation period for the Business
            Process Reengineering initiative, but not to exceed one year, a
            participating organization shall not be subject to any Office
            of Management and Budget Circular A-76 competition or other
            public-private competition involving any function covered by
            the Business Process Reengineering initiative.
        (e) Effect of Successful Implementation.--An organization
    designated as a high-performing organization as a result of successful
    implementation of a Business Process Reengineering initiative under the
    pilot program shall be exempt, during the five-year period following
    such designation, from any Office of Management and Budget Circular A-
    76 competition or other public-private competition involving any
    function that was studied under the Business Process Reengineering
    initiative.
        (f) Reviews and Reports.--The Secretaries of the military
    departments shall conduct annual performance reviews of the
    participating organizations or functions within their respective
    departments. Reviews and reports shall evaluate organizational
    performance measures or functional performance measures and determine
    whether organizations are performing satisfactorily for purposes of
    continuing participation in the pilot program.
        (g) Performance Measures.--Performance measures should include the
    following, which shall be measured against organizational baselines
    determined before participation in the pilot program:
                (1) Costs, savings, and overall financial performance of
            the organization.
                (2) Organic knowledge, skills or expertise.
                (3) Efficiency and effectiveness of key functions or
            processes.
                (4) Efficiency and effectiveness of the overall
            organization.
                (5) General customer satisfaction.
        (h) Definitions.--In this section
                (1) The term ``high-performing organization'' means an
            organization whose performance exceeds that of comparable
            providers, whether public or private.
                (2) The term ``Business Process Reengineering'' refers to
            an organization's complete and thorough analysis and
            reengineering of mission and support functions and processes to
            achieve improvements in performance, including a fundamental
            reshaping of the way work is done to better support an
            organization's mission and reduce costs.

    SEC. 323. DELAYED IMPLEMENTATION OF REVISED OFFICE OF MANAGEMENT AND
                  BUDGET CIRCULAR A-76 BY DEPARTMENT OF DEFENSE PENDING
                  REPORT.

        (a) Limitation Pending Report.--No studies or competitions may be
    conducted under the policies and procedures contained in any revisions
    to Office of Management and Budget Circular A-76, as the circular
    exists as of May 1, 2003, for possible contracting out of work being
    performed, as of such date, by employees of the Department of Defense,
    until the end of the 45-day period beginning on the date on which the
    Secretary of Defense submits to Congress a report on the impacts and
    effects of the revisions.
        (b) Content of Report.--The report required by subsection (a) shall
    contain, at a minimum, specific information regarding the following:
                (1) The extent to which the revisions will ensure that
            employees of the Department of Defense have the opportunity to
            compete to retain their jobs.
                (2) The extent to which the revisions will provide appeal
            and protest rights to employees of the Department of Defense
            that are equivalent to those available to contractors.
                (3) Identify safeguards in the revisions to ensure that all
            public-private competitions are fair, appropriate, and comply
            with requirements of full and open competition.
                (4) The plans and strategies of the Department to ensure an
            appropriate phase-in period for the revisions, as recommended
            by the Commercial Activities Panel of the Government Accounting
            Office in its April 2002 report to Congress, including
            recommendations for any legislative changes that may be
            required to ensure a smooth and efficient phase-in period.
                (5) The plans and strategies of the Department to collect
            and analyze data on the costs and quality of work contracted
            out or retained in-house as a result of a sourcing process
            conducted under the revised Office of Management and Budget
            circular A-76.

    SEC. 324. NAVAL AVIATION DEPOTS MULTI-TRADES DEMONSTRATION PROJECT.

        (a) Demonstration Project Required.--In accordance with section
    4703 of title 5, United States Code, the Secretary of the Navy shall
    establish a demonstration project under which three Naval Aviation
    Depots are given the flexibility to promote by one grade level workers
    who are certified at the journey level as able to perform multiple
    trades.
        (b) Selection Requirements.--As a condition on eligibility for
    selection to participate in the demonstration project, a Naval Aviation
    Depot shall submit to the Secretary a business case analysis and
    concept plan--
                (1) that, on the basis of the results of analysis of work
            processes, demonstrate that process improvements would result
            from the trade combinations proposed to be implemented under
            the demonstration project; and
                (2) that describes the resulting improvements in cost,
            quality, or schedule.
        (c) Participating Workers.--(1) Actual worker participation in the
    demonstration project shall be determined through competitive
    selection. Not more than 15 percent of the wage grade journeyman at a
    demonstration project location may be selected to participate.
        (2) Job descriptions and competency-based training plans must be
    developed for each worker while in training under the demonstration
    project and once certified as a multi-trade worker. A certified multi-
    trade worker who receives a pay grade promotion under the demonstration
    project must use each new skill during at least 25 percent of the
    worker's work week.
        (d) Funding Source.--Amounts appropriated for operation and
    maintenance of the Naval Aviation Depots selected to participate in the
    demonstration project shall be used as the source of funds to carry out
    the demonstration project, including the source of funds for pay
    increases made under the project.
        (e) Duration.--The demonstration project shall be conducted during
    fiscal years 2004 through 2006.
        (f) Report.--Not later than January 15, 2007, the Secretary shall
    submit a report to Congress describing the results of the demonstration
    project.
        (g) GAO Evaluation.--The Secretary shall transmit a copy the report
    to the Comptroller General. Within 90 days after receiving a report,
    the Comptroller General shall submit to Congress an evaluation of the
    report.

                       Subtitle D--Information Technology

    SEC. 331. PERFORMANCE-BASED AND RESULTS-BASED MANAGEMENT REQUIREMENTS
                  FOR CHIEF INFORMATION OFFICERS OF DEPARTMENT OF DEFENSE.

        (a) Accountability.--Section 2223 of title 10, United States Code,
    is amended--
                (1) by redesignating subsection (c) as subsection (e); and
                (2) by inserting after subsection (b) the following new
            subsection:
        ``(c) Performance-based and Results-based Management.--In addition
    to the responsibilities provided for in subsections (a) and (b), the
    Chief Information Officer of the Department of Defense and the Chief
    Information Officer of a military department shall--
                ``(1) encourage the use of performance-based and results-
            based management in fulfilling the responsibilities provided
            for in subsections (a) and (b), as applicable;
                ``(2) evaluate the information resources management
            practices of the department concerned with respect to the
            performance and results of the investments made by the
            department in information technology;
                ``(3) establish effective and efficient capital planning
            processes for selecting, managing, and evaluating the results
            of all of the department's major investments in information
            systems;
                ``(4) ensure that any analysis of the missions of the
            department is adequate and make recommendations, as
            appropriate, on the department's mission-related processes,
            administrative processes, and any significant investments in
            information technology to be used in support of those missions;
            and
                ``(5) ensure that information security policies,
            procedures, and practices are adequate.''.
        (b) Defense Agency Responsibilities.--Section 2223 of title 10,
    United States Code, is further amended by inserting after subsection
    (c), as added by subsection (a), the following new subsection:
        ``(d) Defense Agencies and Field Activities.--The Secretary of
    Defense shall require the Director of each Defense Agency and
    Department of Defense Field Activity to ensure that the
    responsibilities set forth in subsections (b) and (c) for Chief
    Information Officers of military departments are carried out within the
    Agency or Field Activity by any officer or employee acting as a chief
    information officer or carrying out duties similar to a chief
    information officer.''.

                           Subtitle E--Other Matters

    SEC. 341. CATALOGING AND STANDARDIZATION FOR DEFENSE SUPPLY MANAGEMENT.

        (a) Standardization Methods.--Section 2451 of title 10, United
    States Code, is amended to read as follows:
    ``Sec. 2451. Defense supply management
        ``(a) Single Catalog System.--The Secretary of Defense shall adopt,
    implement and maintain a single catalog system for standardizing
    supplies for the Department of Defense. The single catalog system shall
    be used for each supply the Department uses, buys, stocks, or
    distributes.
        ``(b) Standardization Requirements.--To the highest degree
    practicable, the Secretary of Defense shall--
                ``(1) adopt and use single commercial standards or
            voluntary standards, in consultation with industry advisory
            groups, in order to eliminate overlapping and duplicate
            specifications for supplies for the Department of Defense and
            to reduce the number of sizes and kind of supplies that are
            generally similar;
                ``(2) standardize the methods of packing, packaging, and
            preserving supplies; and
                ``(3) make efficient use of the services and facilities for
            inspecting, testing, and accepting supplies.
        ``(c) Consultation and Cooperation.--The Secretary of Defense shall
    maintain liaison with industry advisory groups to coordinate the
    development of the supply catalog and the standardization program with
    the best practices of industry and to obtain the fullest practicable
    cooperation and participation of industry in developing the supply
    catalog and the standardization program.''.
        (b) Equipment Standardization with NATO Members.--Section 2457 of
    such title is amended by striking subsection (d).
        (c) Conforming Repeals.--(1) Chapter 145 of such title is amended
    by striking sections 2452, 2453, and 2454.
        (2) The table of sections at the beginning of such chapter is
    amended by striking the items related to sections 2452, 2453, and 2454.

    SEC. 342. SPACE-AVAILABLE TRANSPORTATION FOR DEPENDENTS OF MEMBERS
                  ASSIGNED TO OVERSEAS DUTY LOCATIONS FOR CONTINUOUS PERIOD
                  IN EXCESS OF ONE YEAR.

        (a) In General.--Chapter 157 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 2648. Dependents of members assigned to overseas duty locations
                  for continuous period in excess of one year: space-
                  available transportation
        ``(a) Authority.--The Secretary of Defense shall authorize travel
    on Government aircraft on a space-available basis for dependents of
    members on active duty assigned to duty at an overseas location as
    described in subsection (b) to the same extent as such travel is
    authorized for a dependent of a member assigned to that duty location
    in a permanent change of station status.
        ``(b) Duty Status Covered.--Duty at an overseas location described
    in this subsection is duty for a continuous period in excess of one
    year that is in a temporary duty status or that is in a permanent duty
    status without change of station.
        ``(c) Types of Transportation Authorized.--If authorized for other
    members at that duty location, travel provided under this section may
    include (1) travel between the overseas duty location and the United
    States and return, and (2) travel between the overseas duty location
    and another overseas location and return.
        ``(d) Alaska and Hawaii.--For purposes of this section, duty in
    Alaska or Hawaii shall be considered to be duty at an overseas
    location.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2648. Dependents of members assigned to overseas duty locations for
                                continuous period in excess of one year:
                                space-available transportation.''.

    SEC. 343. PRESERVATION OF AIR FORCE RESERVE WEATHER RECONNAISSANCE
                  MISSION.

        The Secretary of Defense shall not disestablish, discontinue, or
    transfer the weather reconnaissance mission of the Air Force Reserve
    unless the Secretary determines that another organization or entity can
    demonstrate that it has the capability to perform the same mission with
    the same capability as the Air Force Reserve.

    SEC. 344. EXPANSION OF DEPARTMENT OF DEFENSE EXCESS PERSONAL PROPERTY
                  DISPOSAL PROGRAM TO INCLUDE HEALTH AGENCIES IN ADDITION
                  TO LAW ENFORCEMENT AND FIREFIGHTING AGENCIES.

        (a) Inclusion of Health Agencies.--Section 2576b of title 10,
    United States Code, is amended--
                (1) by striking subsection (a) and inserting the following
            new subsection (a):
        ``(a) Transfer Authorized.--Subject to subsection (b), the
    Secretary of Defense may transfer to a firefighting agency or health
    agency in a State any personal property of the Department of Defense
    that the Secretary determines is--
                ``(1) excess to the needs of the Department of Defense; and
                ``(2) suitable for use in providing fire and emergency
            medical services or responding to health or environmental
            emergencies, including personal protective equipment and
            equipment for communication and monitoring.''; and
                (2) in subsection (b)(2) and (c), by striking
            ``firefighting'' both places it appears.
        (b) Clerical Amendments.--(1) The heading of such section is
    amended to read as follows:
    ``Sec. 2576b. Excess personal property: sale or donation to assist
                  firefighting agencies and health agencies
        (2) The table of sections at the beginning of chapter 153 of such
    title is amended by striking the item relating to section 2576b and
    inserting the following new item:

    ``2576b. Excess personal property: sale or donation to assist
                                firefighting agencies and health
                                agencies.''.

    SEC. 345. DEPARTMENT OF DEFENSE PUBLIC HEALTH ASSESSMENT OF EXPOSURE TO
                  PERCHLORATE.

        (a) Epidemiological Study of Exposure to Perchlorate.--
                (1) In general.--The Secretary of Defense shall provide for
            an independent epidemiological study of exposure to perchlorate
            in drinking water.
                (2) Performance of study.--The Secretary shall provide for
            the performance of the study under this subsection through the
            Centers for Disease Control, the National Institutes of Health,
            or another Federal entity with experience in environmental
            toxicology selected by the Secretary for purposes of the study.
                (3) Matters to be included in study.--In providing for the
            study under this subsection, the Secretary shall require the
            Federal entity conducting the study--
                        (A) to assess the incidence of thyroid disease and
                    measurable effects of thyroid function in relation to
                    exposure to perchlorate;
                        (B) to ensure that the study is of sufficient scope
                    and scale to permit the making of meaningful
                    conclusions of the measurable public health threat
                    associated with exposure to perchlorate, especially the
                    threat to sensitive subpopulations; and
                        (C) to study thyroid function, including
                    measurements of urinary iodine and thyroid hormone
                    levels, in a sufficient number of pregnant women,
                    neonates, and infants exposed to perchlorate in
                    drinking water and match measurements of perchlorate
                    levels in the drinking water of each study participant
                    in order to permit the development of meaningful
                    conclusions on the public health threat to individuals
                    exposed to perchlorate.
                (4) Report on study.--The Secretary shall require the
            Federal entity conducting the study under this subsection to
            submit to the Secretary a report on the study not later than
            June 1, 2005.
        (b) Review of Effects of Perchlorate on Endocrine System.--
                (1) In general.--The Secretary shall provide for an
            independent review of the effects of perchlorate on the human
            endocrine system.
                (2) Performance of review.--The Secretary shall provide for
            the performance of the review under this subsection through the
            Centers for Disease Control, the National Institutes of Health,
            or another appropriate Federal research entity with experience
            in human endocrinology selected by the Secretary for purposes
            of the review. The Secretary shall ensure that the panel
            conducting the review is composed of individuals with expertise
            in human endocrinology.
                (3) Matters to be included in review.--In providing for the
            review under this subsection, the Secretary shall require the
            Federal entity conducting the review to assess--
                        (A) available data on human exposure to
                    perchlorate, including clinical data and data on
                    exposure of sensitive subpopulations, and the levels at
                    which health effects were observed; and
                        (B) available data on other substances that have
                    endocrine effects similar to perchlorate to which the
                    public is frequently exposed.
                (4) Report on review.--The Secretary shall require the
            Federal entity conducting the review under this subsection to
            submit to the Secretary a report on the review not later than
            June 1, 2005.

    SEC. 346. PERMANENT AUTHORITY FOR PURCHASE OF CERTAIN MUNICIPAL
                  SERVICES AT INSTALLATIONS IN MONTEREY COUNTY, CALIFORNIA.

        (a) Authority.--Subject to subsection (b), public works, utility,
    and other municipal services needed for the operation of any Department
    of Defense asset in Monterey County, California, may be purchased from
    government agencies located in that county.
        (b) Prohibition on Purchase of Certain Services.--Section 2465 of
    title 10, United States Code, relating to the purchase of firefighting
    or security-guard services at a military installation, applies with
    respect to the authority provided by subsection (a).
        (c) Conforming amendment.--Section 816 of the National Defense
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat.
    2820) is repealed.

                  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, 2004, as follows:
                (1) The Army, 482,375.
                (2) The Navy, 375,700.
                (3) The Marine Corps, 175,000.
                (4) The Air Force, 361,268.

    SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM
                  LEVELS.

        Effective October 1, 2003, section 691(b) of title 10, United
    States Code, is amended as follows:
                (1) Army.--Paragraph (1) is amended by striking ``480,000''
            and inserting ``482,375''.
                (2) Air force.--Paragraph (4) is amended by striking
            ``359,000'' and inserting ``361,268''.

                           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, 2004, as follows:
                (1) The Army National Guard of the United States, 350,000.
                (2) The Army Reserve, 205,000.
                (3) The Naval Reserve, 85,900.
                (4) The Marine Corps Reserve, 39,600.
                (5) The Air National Guard of the United States, 107,000.
                (6) The Air Force Reserve, 75,800.
                (7) The Coast Guard Reserve, 10,000.
        (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,
    2004, 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, 25,386.
                (2) The Army Reserve, 14,374.
                (3) The Naval Reserve, 14,384.
                (4) The Marine Corps Reserve, 2,261.
                (5) The Air National Guard of the United States, 12,140.
                (6) The Air Force Reserve, 1,660.

    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 2004 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,
            24,589.
                (2) For the Army Reserve, 7,844.
                (3) For the Air National Guard of the United States,
            22,806.
                (4) For the Air Force Reserve, 9,991.

    SEC. 414. FISCAL YEAR 2004 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

        The number of non-dual status technicians of a reserve component of
    the Army or the Air Force as of September 30, 2004, may not exceed the
    following:
                (1) For the Army Reserve, 910.
                (2) For the Army National Guard of the United States,
            1,600.
                (3) For the Air Force Reserve, 90.
                (4) For the Air National Guard of the United States, 350.

    SEC. 415. PERMANENT LIMITATIONS ON NUMBER OF NON-DUAL STATUS
                  TECHNICIANS.

        Section 10217(c) of title 10, United States Code, is amended by
    striking ``and Air Force Reserve may not exceed 175'' and inserting
    ``may not exceed 595 and by the Air Force Reserve may not exceed 90''.

                  Subtitle C--Authorizations of Appropriations

    SEC. 421. MILITARY PERSONNEL.

        There is hereby authorized to be appropriated to the Department of
    Defense for military personnel for fiscal year 2004 a total of
    $98,634,511,000. The authorization in the preceding sentence supersedes
    any other authorization of appropriations (definite or indefinite) for
    such purpose for fiscal year 2004.

    SEC. 422. ARMED FORCES RETIREMENT HOME.

        There is hereby authorized to be appropriated for fiscal year 2004
    from the Armed Forces Retirement Home Trust Fund the sum of $65,279,000
    for the operation of the Armed Forces Retirement Home.

                       TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--General and Flag Officer Matters

    SEC. 501. STANDARDIZATION OF QUALIFICATIONS FOR APPOINTMENT AS SERVICE
                  CHIEF.

        (a) Chief of Naval Operations.--Section 5033(a)(1) of title 10,
    United States Code, is amended by striking ``from officers on the
    active-duty list in the line of the Navy who are eligible to command at
    sea and who hold the grade of rear admiral or above'' and inserting
    ``flag officers of the Navy''.
        (b) Commandant of the Marine Corps.--Section 5043(a)(1) of title
    10, United States Code, is amended by striking ``from officers on the
    active-duty list of the Marine Corps not below the grade of colonel''
    and inserting ``general officers of the Marine Corps''.

               Subtitle B--Other Officer Personnel Policy Matters

    SEC. 511. REPEAL OF PROHIBITION ON TRANSFER BETWEEN LINE OF THE NAVY
                  AND NAVY STAFF CORPS APPLICABLE TO REGULAR NAVY OFFICERS
                  IN GRADES ABOVE LIEUTENANT COMMANDER.

        (a) Repeal.--Section 5582 of title 10, United States Code, is
    repealed.
        (b) Clerical Amendment.--The table of sections at the beginning of
    chapter 539 of such title is amended by striking the item relating to
    section 5582.

    SEC. 512. RETENTION OF HEALTH PROFESSIONS OFFICERS TO FULFILL ACTIVE-
                  DUTY SERVICE COMMITMENTS FOLLOWING PROMOTION
                  NONSELECTION.

        (a) In General.--Section 632 of title 10, United States Code, is
    amended--
                (1) in subsection (a)(1), by inserting ``except as provided
            in paragraph (3) and in subsection (c),'' before ``be
            discharged''; and
                (2) by adding at the end the following new subsection:
        ``(c)(1) If a health professions officer described in paragraph (2)
    is subject to discharge under subsection (a)(1) and, as of the date on
    which the officer is to be discharged under that paragraph, the officer
    has not completed a period of active duty service obligation that the
    officer incurred under section 2005, 2114, 2123, or 2603 of this title,
    the officer shall be retained on active duty until completion of such
    active duty service obligation, and then be discharged under that
    subsection, unless sooner retired or discharged under another provision
    of law.
        ``(2) The Secretary concerned may waive the applicability of
    paragraph (1) to any officer if the Secretary determines that
    completion of the active duty service obligation of that officer is not
    in the best interest of the service.
        ``(3) This subsection applies to a medical officer or dental
    officer or an officer appointed in a medical skill other than as a
    medical officer or dental officer (as defined in regulations prescribed
    by the Secretary of Defense).''.
        (b) Technical Amendments.--Sections 630(2), 631(a)(3), and
    632(a)(3) of such title are amended by striking ``clause'' and
    inserting ``paragraph''.
        (c) Effective Date.--The amendments made by subsection (a) shall
    not apply in the case of an officer who as of the date of the enactment
    of this Act is required to be discharged under section 632(a)(1) of
    title 10, United States Code, by reason of having failed of selection
    for promotion to the next higher regular grade a second time.

    SEC. 513. INCREASED FLEXIBILITY FOR VOLUNTARY RETIREMENT FOR MILITARY
                  OFFICERS.

        (a) In General.--Section 1370 of title 10, United States Code, is
    amended--
                (1) in subsection (a)--
                        (A) in paragraph (1)--
                                (i) by striking ``except as provided in
                            paragraph (2)'' and inserting ``subject to
                            paragraphs (2) and (3)''; and
                                (ii) by striking ``, for not less than six
                            months'';
                        (B) by redesignating paragraph (3) as paragraph
                    (4); and
                        (C) by striking paragraph (2) and inserting the
                    following:
        ``(2) In order to be eligible for voluntary retirement under this
    title in a grade below the grade of lieutenant colonel or commander, a
    commissioned officer of the Army, Navy, Air Force, or Marine Corps
    covered by paragraph (1) must have served on active duty in that grade
    for not less than six months.
        ``(3)(A) In order to be eligible for voluntary retirement in a
    grade above major or lieutenant commander and below brigadier general
    or rear admiral (lower half), a commissioned officer of the Army, Navy,
    Air Force, or Marine Corps covered by paragraph (1) must have served on
    active duty in that grade for not less than three years, except that
    the Secretary of Defense may authorize the Secretary of the military
    department concerned to reduce such period to a period not less than
    two years.
        ``(B) In order to be eligible for voluntary retirement in a grade
    above colonel or captain, in the case of the Navy, a commissioned
    officer of the Army, Navy, Air Force, or Marine Corps covered by
    paragraph (1) must have served on active duty in that grade for not
    less than one year.
        ``(C) An officer in a grade above major general or rear admiral may
    be retired in the highest grade in which the officer served on active
    duty satisfactorily for not less than one year, upon approval by the
    Secretary of the military department concerned and concurrence by the
    Secretary of Defense. The function of the Secretary of Defense under
    the preceding sentence may only be delegated to a civilian official in
    the Office of the Secretary of Defense appointed by the President, by
    and with the advice and consent of the Senate.
        ``(D) The President may waive subparagraph (A), (B) or (C) in
    individual cases involving extreme hardship or exceptional or unusual
    circumstances. The authority of the President under the preceding
    sentence may not be delegated.'';
                (2) in subsection (b), by inserting ``or whose service on
            active duty in that grade was not determined to be satisfactory
            by the Secretary of the military department concerned'' after
            ``specified in subsection (a)'';
                (3) by striking subsection (c); and
                (4) by redesignating subsection (d) as subsection (c) and
            in that subsection--
                        (A) in paragraph (3)--
                                (i) in subparagraph (A)--
                                        (I) by inserting ``(i)'' after
                                    ``(3)(A)'';
                                        (II) by inserting ``and below
                                    brigadier general or rear admiral
                                    (lower half)'' after ``lieutenant
                                    commander'';
                                        (III) by inserting ``, except that
                                    the Secretary of Defense may authorize
                                    the Secretary of the military
                                    department concerned to reduce such
                                    period to a period not less than two
                                    years'' after ``three years''; and
                                        (IV) by adding at the end the
                                    following new clauses:
        ``(ii) In order to be credited with satisfactory service in a grade
    above colonel or captain, in the case of the Navy, a person covered by
    paragraph (1) must have served satisfactorily in that grade (as
    determined by the Secretary of the military department concerned) as a
    reserve commissioned officer in active status, or in a retired status
    on active duty, for not less than one year.
        ``(iii) An officer covered by paragraph (1) who is in a grade above
    the grade of major general or rear admiral may be retired in the
    highest grade in which the officer served satisfactorily for not less
    than one year, upon approval by the Secretary of the military
    department concerned and concurrence by the Secretary of Defense. The
    function of the Secretary of Defense under the preceding sentence may
    only be delegated to a civilian official in the Office of the Secretary
    of Defense appointed by the president, by and with the advice and
    consent of the Senate.'';
                                (ii) in subparagraphs (D) and (E), by
                            striking ``subparagraph (A)'' and inserting
                            ``subparagraph (A)(i)''; and
                                (iii) by striking subparagraph (F); and
                        (B) by striking paragraphs (5) and (6); and
                (5) by striking subsection (e).
        (b) Conforming Amendments.--Section 1406(i)(2) of such title is
    amended--
                (1) in the paragraph heading, by striking ``members'' and
            all that follows through ``satisfactorily'' and inserting
            ``enlisted members reduced in grade'';
                (2) by striking ``a member'' and inserting ``an enlisted
            member'';
                (3) by striking ``1998--'' and all that follows through
            ``is reduced in'' and inserting ``1998, is reduced in'';
                (4) by striking ``; or'' and inserting a period; and
                (5) by striking subparagraph (B).
        (c) Effective Date.--The amendments made by this section shall
    apply with respect to the determination of the retired grade of members
    of the Armed Forces retiring on or after the date of the enactment of
    this Act.

    SEC. 514. REPEAL OF REQUIRED GRADE OF DEFENSE ATTACHE IN FRANCE.

        (a) In General.--Section 714 of title 10, United States Code, is
    repealed.
        (b) Conforming Amendment.--The table of sections at the beginning
    of chapter 41 of such title is amended by striking the item relating to
    section 714.

                     Subtitle C--Reserve Component Matters

    SEC. 521. STREAMLINED PROCESS FOR CONTINUATION OF OFFICERS ON THE
                  RESERVE ACTIVE-STATUS LIST.

        (a) Repeal of Requirement for Use of Selection Boards.--Section
    14701 of title 10, United States Code, is amended--
                (1) in subsection (a)--
                        (A) in paragraph (1), by striking ``by a selection
                    board convened under section 14101(b) of this title''
                    and inserting ``under regulations prescribed by the
                    Secretary of Defense; and
                        (B) in paragraph (6), by striking ``as a result of
                    the convening of a selection board under section
                    14101(b) of this title'' and inserting ``under
                    regulations prescribed under paragraph (1)'';
                (2) by striking subsections (b) and (c); and
                (3) by redesignating subsection (d) as subsection (b).
        (b) Conforming Amendments.--(1) Section 14101(b) of such title is
    amended--
                (A) by striking ``Continuation Boards'' and inserting
            ``Selective Early Separation Boards'';
                (B) by striking paragraph (1);
                (C) by redesignating paragraphs (2) and (3) as paragraphs
            (1) and (2), respectively; and
                (D) by striking the last sentence.
        (2) Section 14102(a) of such title is amended by striking
    ``Continuation boards'' and inserting ``Selection boards convened under
    section 14101(b) of this title''.
        (3) Section 14705(b)(1) of such title is amended by striking
    ``continuation board'' and inserting ``selection board''.

    SEC. 522. CONSIDERATION OF RESERVE OFFICERS FOR POSITION VACANCY
                  PROMOTIONS IN TIME OF WAR OR NATIONAL EMERGENCY.

        (a) Promotion Consideration While on Active-Duty List.--(1)
    Subsection (d) of section 14317 of title 10, United States Code, is
    amended by striking ``If a reserve officer'' and inserting ``Except as
    provided in subsection (e), if a reserve officer''.
        (2) Subsection (e) of such section is amended to read as follows:
        ``(e) Officers Ordered to Active Duty in Time of War or National
    Emergency.--(1) A reserve officer who is not on the active-duty list
    and who is ordered to active duty in time of war or national emergency
    may, if eligible, be considered for promotion--
                ``(A) by a mandatory promotion board convened under section
            14101(a) of this title or a special selection board convened
            under section 14502 of this title; or
                ``(B) in the case of an officer who has been ordered to or
            is serving on active duty in support of a contingency
            operation, by a vacancy promotion board convened under section
            14101(a) of this title.
        ``(2) An officer may not be considered for promotion under this
    subsection after the end of the two-year period beginning on the date
    on which the officer is ordered to active duty.
        ``(3) An officer may not be considered for promotion under this
    subsection during a period when the operation of this section has been
    suspended by the President under the provisions of section 123 or 10213
    of this title.
        ``(4) Consideration of an officer for promotion under this
    subsection shall be under regulations prescribed by the Secretary of
    the military department concerned.''.
        (b) Conforming Amendment.--Section 14315(a)(1) of such title is
    amended by striking ``as determined by the Secretary concerned, is
    available'' and inserting ``under regulations prescribed by the
    Secretary concerned, has been recommended''.

    SEC. 523. SIMPLIFICATION OF DETERMINATION OF ANNUAL PARTICIPATION FOR
                  PURPOSES OF READY RESERVE TRAINING REQUIREMENTS.

        Subsection (a) of section 10147 of title 10, United States Code, is
    amended to read as follows:
        ``(a)(1) Except as provided pursuant to paragraph (2), each person
    who is enlisted, inducted, or appointed in an armed force and who
    becomes a member of the Ready Reserve under any provision of law other
    than section 513 or 10145(b) of this title shall be required, while in
    the Ready Reserve, to participate in a combination of drills, training
    periods, and active duty equivalent to 38 days (exclusive of travel)
    during each year.
        ``(2) The Secretary of Defense, and the Secretary of Homeland
    Security with respect to the Coast Guard when it is not operating as a
    service in the Navy, may prescribe regulations providing specific
    exceptions for the requirements of paragraph (1).''.

    SEC. 524. AUTHORITY FOR DELEGATION OF REQUIRED SECRETARIAL SPECIAL
                  FINDING FOR PLACEMENT OF CERTAIN RETIRED MEMBERS IN READY
                  RESERVE.

        The last sentence of section 10145(d) of title 10, United States
    Code, is amended to read as follows: ``The authority of the Secretary
    concerned under the preceding sentence may not be delegated--
                ``(1) to a civilian officer or employee of the military
            department concerned below the level of the Assistant Secretary
            of the military department concerned; or
                ``(2) to a member of the armed forces below the level of
            the lieutenant general or vice admiral in an armed force with
            responsibility for military personnel policy in that armed
            force.''.

    SEC. 525. AUTHORITY TO PROVIDE EXPENSES OF ARMY AND AIR STAFF PERSONNEL
                  AND NATIONAL GUARD BUREAU PERSONNEL ATTENDING NATIONAL
                  CONVENTIONS OF CERTAIN MILITARY ASSOCIATIONS.

        (a) Authority.--Section 107(a)(2) of title 32, United States Code,
    is amended--
                (1) by striking ``officers'' and inserting ``members'';
                (2) by striking ``Army General Staff'' and inserting ``Army
            Staff''; and
                (3) by striking ``National Guard Association of the United
            States'' and inserting ``, Enlisted Association of the National
            Guard of the United States, National Guard Association of the
            United States,''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    not apply with respect to funds appropriated for a fiscal year before
    fiscal year 2004.

                  Subtitle D--Military Education and Training

    SEC. 531. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD THE DEGREE
                  OF MASTER OF OPERATIONAL STUDIES.

        (a) Authority.--Section 7102 of title 10, United States Code, is
    amended--
                (1) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively; and
                (2) by inserting after subsection (b) the following new
            subsection (c):
        ``(c) Command and Staff College of the Marine Corp University.--
    Upon the recommendation of the Director and faculty of the Command and
    Staff College of the Marine Corps University, the President of the
    Marine Corps University may confer the degree of master of operational
    studies upon graduates of the Command and Staff College's School of
    Advanced Warfighting who fulfill the requirements for that degree.''.
        (b) Effective Date.--The authority to confer the degree of master
    of operational studies under section 7102(c) of title 10, United States
    Code (as added by subsection (a)) may not be exercised until the
    Secretary of Education determines, and certifies to the President of
    the Marine Corps University, that the requirements established by the
    Command and General Staff College of the Marine Corps University for
    that degree are in accordance with generally applicable requirements
    for a degree of master of arts. Upon receipt of such a certification,
    the President of the University shall promptly transmit a copy of the
    certification to the Committee on Armed Services of the Senate and
    Committee on Armed Services of the House of Representatives.

    SEC. 532. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR CADETS AND
                  MIDSHIPMEN RECEIVING ROTC SCHOLARSHIPS.

        (a) Financial Assistance Program for Service on Active Duty.--
    Section 2107(c) of title 10, United States Code, is amended by adding
    at the end the following new paragraphs:
        ``(3) In the case of a cadet or midshipman eligible to receive
    financial assistance under paragraph (1) or (2), the Secretary of the
    military department concerned may, in lieu of all or part of the
    financial assistance described in paragraph (1), provide financial
    assistance in the form of room and board expenses for the cadet or
    midshipman and other expenses required by the educational institution.
        ``(4) The total amount of financial assistance, including the
    payment of room and board and other educational expenses, provided to a
    cadet or midshipman in an academic year under this subsection may not
    exceed an amount equal to the amount that could be provided as
    financial assistance for such cadet or midshipman under paragraph (1)
    or (2), or other amount determined by the Secretary concerned, without
    regard to whether room and board and other educational expenses for
    such cadet or midshipman are paid under paragraph (3).''.
        (b) Financial Assistance Program for Service in Troop Program
    Units.--Section 2107a(c) of such title is amended--
                (1) by inserting ``(1)'' after ``(c)''; and
                (2) by adding at the end the following new paragraphs:
        ``(2) In the case of a cadet eligible to receive financial
    assistance under paragraph (1), the Secretary of the military
    department concerned may, in lieu of all or part of the financial
    assistance described in paragraph (1), provide financial assistance in
    the form of room and board expenses for such cadet and other expenses
    required by the educational institution.
        ``(3) The total amount of financial assistance, including the
    payment of room and board and any other educational expenses, provided
    to a cadet in an academic year under this subsection may not exceed an
    amount equal to the amount that could be provided as financial
    assistance for such cadet under paragraph (1), or other amount
    determined by the Secretary of the Army, without regard to whether the
    room and board and other educational expenses for such cadet are paid
    under paragraph (2).''.
        (c) Effective Date.--The amendments made by this section shall
    apply to payment of expenses of cadets and midshipmen of the Senior
    Reserve Officers' Training Corps program that are due after the date of
    the enactment of this Act.

    SEC. 533. INCREASE IN ALLOCATION OF SCHOLARSHIPS UNDER ARMY RESERVE
                  ROTC SCHOLARSHIP PROGRAM TO STUDENTS AT MILITARY JUNIOR
                  COLLEGES.

        Section 2107a(h) of title 10, United States Code, is amended by
    striking ``10'' each place it appears and inserting ``17''.

    SEC. 534. INCLUSION OF ACCRUED INTEREST IN AMOUNTS THAT MAY BE REPAID
                  UNDER SELECTED RESERVE CRITICAL SPECIALTIES EDUCATION
                  LOAN REPAYMENT PROGRAM.

        Section 16301 of title 10, United States Code, is amended--
                (1) in subsection (b), by inserting before the period at
            the end the following: ``, plus the amount of any interest that
            may accrue during the current year''; and
                (2) in subsection (c), by adding at the end the following
            new sentence: ``For the purposes of this section, any interest
            that has accrued on the loan for periods before the current
            year shall be considered as within the total loan amount that
            shall be repaid.''.

    SEC. 535. AUTHORITY FOR NONSCHOLARSHIP SENIOR ROTC SOPHOMORES TO
                  VOLUNTARILY CONTRACT FOR AND RECEIVE SUBSISTENCE
                  ALLOWANCE.

        (a) Authority for Allowance.--Section 209 of title 37, United
    States Code, is amended--
                (1) by redesignating subsections (c) and (d) as subsections
            (d) and (e), respectively; and
                (2) by inserting after subsection (b) the following new
            subsection (c):
        ``(c) Nonscholarship Senior ROTC Members Not in Advanced
    Training.--A member of the Selected Reserve Officers' Training Corps
    who has entered into an agreement under section 2103a of title 10 is
    entitled to a monthly subsistence allowance at a rate prescribed under
    subsection (a). The allowance may be paid to the member for a maximum
    of 20 months.''.
        (b) Authority to Accept Enrollment.--(1) Chapter 103 of title 10,
    United States Code, is amended by inserting after section 2103 the
    following new section:
    ``Sec. 2103a. Students not eligible for advanced training: commitment
                  to military service
        ``(a) A member of the program who has completed successfully the
    first year of a four-year Senior Reserve Officers' Training Corps
    course and who is not eligible for advanced training under section 2104
    of this title and is not a cadet or midshipman appointed under section
    2107 of this title may--
                ``(1) contract with the Secretary of the military
            department concerned, or the Secretary's designated
            representative, to serve for the period required by the
            program; and
                ``(2) agree in writing to accept an appointment, if
            offered, as a commissioned officer in the Army, Navy, Air
            Force, or Marine Corps, as the case may be, and to serve in the
            armed forces for the period prescribed by the Secretary.
        ``(b) A member of the program may enter into a contract and
    agreement under this section (and receive a subsistence allowance under
    section 209(c) of title 37) only if the person--
                ``(1) is a citizen of the United States;
                ``(2) enlists in an armed force under the jurisdiction of
            the Secretary of the military department concerned for the
            period prescribed by the Secretary; and
                ``(3) executes a certificate of loyalty in such form as the
            Secretary of Defense prescribes or take a loyalty oath as
            prescribed by the Secretary.
        ``(c) A member of the program who is a minor may enter into a
    contract under subsection (a)(1) only with the consent of the member's
    parent or guardian.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``2103a. Students not eligible for advanced training: commitment to
                                military service.''.

    SEC. 536. APPOINTMENTS TO MILITARY SERVICE ACADEMIES FROM NOMINATIONS
                  MADE BY DELEGATES FROM GUAM, VIRGIN ISLANDS, AND AMERICAN
                  SAMOA.

        (a) United States Military Academy.--Section 4342(a) of title 10,
    United States Code, is amended--
                (1) in paragraphs (6) and (8), by striking ``Two'' and
            inserting ``Three''; and
                (2) in paragraph (9), by striking ``One'' and inserting
            ``Two''.
        (b) United States Naval Academy.--Section 6954(a) of such title is
    amended--
                (1) in paragraphs (6) and (8), by striking ``Two'' and
            inserting ``Three''; and
                (2) in paragraph (9), by striking ``One'' and inserting
            ``Two''.
        (c) United States Air Force Academy.--Section 9342(a) of such title
    is amended--
                (1) in paragraphs (6) and (8), by striking ``Two'' and
            inserting ``Three''; and
                (2) in paragraph (9), by striking ``One'' and inserting
            ``Two''.
        (d) Effective Date.--The amendments made by this section shall
    apply with respect to the nomination of candidates for appointment to
    the United States Military Academy, the United States Naval Academy,
    and the United States Air Force Academy for classes entering those
    academies after the date of the enactment of this Act.

    SEC. 537. READMISSION TO SERVICE ACADEMIES OF CERTAIN FORMER CADETS AND
                  MIDSHIPMEN.

        (a) Inspector General Report as Basis for Readmission.--(1) When a
    formal report by an Inspector General within the Department of Defense
    concerning the circumstances of the separation of a cadet or midshipman
    from one of the service academies contains a specific finding specified
    in paragraph (2), the Secretary of the military department concerned
    may use that report as the sole basis for readmission of the former
    cadet or midshipman to the respective service or service academy.
        (2) A finding specified in this paragraph is a finding that
    substantiates that a former service academy cadet or midshipman, while
    attending the service academy--
                (A) received administrative or punitive action or
            nonjudicial punishment as a result of reprisal;
                (B) resigned in lieu of disciplinary, administrative, or
            other action that the formal report concludes constituted a
            threat of reprisal; or
                (C) otherwise suffered an injustice that contributed to the
            resignation of the cadet or midshipman.
        (b) Readmission.--In the case of a formal report by an Inspector
    General described in subsection (a), the Secretary concerned shall
    offer the former cadet or midshipman an opportunity for readmission to
    the service academy from which the former cadet or midshipman resigned,
    if the former cadet or midshipman is otherwise eligible for such
    readmission.
        (c) Applications for Readmission.--A former cadet or midshipman
    described in a report referred to in subsection (a) may apply for
    readmission to the service academy on the basis of that report and
    shall not be required to submit the request for readmission through a
    board for the correction of military records.
        (d) Regulations to Minimize Adverse Impact Upon Readmission.--The
    Secretary of each military department shall prescribe regulations for
    the readmission of a former cadet or midshipman described in
    subsections (a), with the goal, to the maximum extent practicable, of
    readmitting the former cadet or midshipman at no loss of the academic
    or military status held by the former cadet at the time of resignation.
        (e) Construction With Other Remedies.--This section does not
    preempt or supercede any other remedy that may be available to a former
    cadet or midshipman.
        (f) Service Academies.--In this section, the term ``service
    academy'' means the following:
                (1) The United States Military Academy.
                (2) The United States Naval Academy.
                (3) The United States Air Force Academy.

    SEC. 538. AUTHORIZATION FOR NAVAL POSTGRADUATE SCHOOL TO PROVIDE
                  INSTRUCTION TO ENLISTED MEMBERS PARTICIPATING IN CERTAIN
                  PROGRAMS.

        (a) Instruction of Enlisted Members.--Subsection (a) of section
    7045 of title 10, United States Code, is amended by striking paragraph
    (2) and inserting the following:
        ``(2) The Secretary may permit enlisted members of the armed forces
    to receive instruction at the Naval Postgraduate School for the purpose
    of attending--
                ``(A) executive level seminars; or
                ``(B) the information security scholarship program under
            chapter 112 of this title.
        ``(3) In addition to instruction authorized under paragraph (2),
    the Secretary may, on a space-available basis, permit an enlisted
    member of any of the armed forces to receive instruction at the Naval
    Postgraduate School if the member is assigned permanently to the staff
    of the Naval Postgraduate School or to a nearby command.''.
        (b) Reimbursement.--Subsection (b) of such section is amended--
                (1) by striking ``The Department'' and inserting ``(1)
            Except as provided under paragraph (3), the Department'';
                (2) by striking ``officers'' in the first sentence and
            inserting ``members'';
                (3) by designating the second sentence as paragraph (2) and
            in that sentence--
                        (A) by inserting ``under subsection (a)(3)'' after
                    ``permitted'';
                        (B) by inserting ``on a space-available basis''
                    after ``instruction at the Postgraduate School''; and
                        (C) by striking ``(taking into consideration the
                    admission of enlisted members on a space-available
                    basis)''; and
                (4) by adding at the end the following new paragraph:
        ``(3) The Secretary of Defense may prescribe exceptions to the
    requirements of paragraph (1) with regard to attendance at the
    Postgraduate School pursuant to chapter 112 of this title.''.

    SEC. 539. DEFENSE TASK FORCE ON SEXUAL HARASSMENT AND VIOLENCE AT THE
                  MILITARY SERVICE ACADEMIES.

        (a) Establishment.--The Secretary of Defense shall establish a
    Department of Defense task force to examine matters relating to sexual
    harassment and violence at the United States Military Academy and the
    United States Naval Academy.
        (b) Recommendations.--Not later than 12 months after the date on
    which all members of the task force have been appointed, the task force
    shall submit to the Secretary of Defense a report recommending ways by
    which the Department of Defense and the military services may more
    effectively address matters relating to sexual harassment and violence
    at the United States Military Academy and the United States Naval
    Academy. The report shall include an assessment of, and recommendations
    (including changes in law) for measures to improve, the following with
    respect to sexual harassment and violence at those academies:
                (1) Victims' safety programs.
                (2) Offender accountability.
                (3) Effective prevention of sexual harassment and violence.
                (4) Collaboration among military organizations with
            responsibility or jurisdiction with respect to sexual
            harassment and violence.
                (5) Coordination between military and civilian communities,
            including local support organizations, with respect to sexual
            harassment and violence.
                (6) Coordination between military and civilian communities,
            including civilian law enforcement relating to acts of sexual
            harassment and violence.
                (7) Data collection and case management and tracking.
                (8) Curricula and training, including standard training
            programs for cadets at the United States Military Academy and
            midshipmen at the United States Naval Academy and for permanent
            personnel assigned to those academies.
                (9) Responses to sexual harassment and violence at those
            academies, including standard guidelines.
                (10) Other issues identified by the task force relating to
            sexual harassment and violence at those academies.
        (c) Methodology.--The task force shall consider the findings and
    recommendations of previous reviews and investigations of sexual
    harassment and violence conducted for those academies as one of the
    bases for its assessment.
        (d) Report.--(1) The task force shall submit to the Secretary of
    Defense and the Secretaries of the Army and the Navy a report on the
    activities of the task force and on the activities of the United States
    Military Academy and the United States Naval Academy to respond to
    sexual harassment and violence at those academies.
        (2) The report shall include the following:
                (A) Any barriers to implementation of improvements as a
            result of those efforts.
                (B) Other areas of concern not previously addressed in
            prior reports.
                (C) The findings and conclusions of the task force.
                (D) Any recommendations for changes to policy and law as
            the task force considers appropriate, including whether cases
            of sexual assault at those academies should be included in the
            Department of Defense database known as the Defense Incident-
            Based Reporting System.
        (3) Within 90 days of receipt of the report under paragraph (1) the
    Secretary of Defense shall submit the report, together with the
    Secretary's evaluation of the report, to the Committees on Armed
    Services of the Senate and House of Representatives.
        (e) Report on Air Force Academy.--Simultaneously with the
    submission of the report under subsection (d)(3), the Secretary of
    Defense, in coordination with the Secretary of the Air Force, shall
    submit to the committees specified in that subsection the Secretary's
    assessment of the effectiveness of corrective actions being taken at
    the United States Air Force Academy as a result of various
    investigations conducted at that Academy into matters involving sexual
    assault and harassment.
        (f) Composition.--(1) The task force shall consist of not more than
    14 members, to be appointed by the Secretary of Defense. Members shall
    be appointed from each of the Army, Navy, Air Force, and Marine Corps,
    and shall include an equal number of personnel of the Department of
    Defense (military and civilian) and persons from outside the Department
    of Defense. Members appointed from outside the Department of Defense
    may be appointed from other Federal departments and agencies, from
    State and local agencies, or from the private sector.
        (2) The Secretary shall ensure that the membership of the task
    force appointed from the Department of Defense includes at least one
    judge advocate.
        (3) In appointing members to the task force, the Secretary may--
                (A) consult with the Attorney General regarding a
            representative from the Office of Violence Against Women of the
            Department of Justice; and
                (B) consult with the Secretary of Health and Human Services
            regarding a representative from the Women's Health office of
            the Department of Health and Human Services.
        (4) Each member of the task force appointed from outside the
    Department of Defense shall be an individual who has demonstrated
    expertise in the area of sexual harassment and violence or shall be
    appointed from one of the following:
                (A) A representative from the Office of Civil Right in the
            Department of Education.
                (B) A representative from the Center for Disease Control.
                (C) A sexual assault policy and advocacy organization.
                (D) A civilian law enforcement agency.
                (E) A judicial policy organization.
                (F) A national crime victim policy organization.
        (5) The members of the task force shall be appointed not later than
    120 days after the date of the enactment of this Act.
        (g) Co-Chairs of the Task Force.--There shall be two co-chairs of
    the task force. One of the co-chairs shall be designated by the
    Secretary of the Defense at the time of appointment from among the
    Department of Defense personnel on the task force. The other co-chair
    shall be selected from among the members appointed from outside the
    Department of Defense by those members.
        (h) Administrative Support.--(1) Each member of the task force who
    is a member of the Armed Forces or a civilian officer or employee of
    the United States shall serve without compensation (other than
    compensation to which entitled as a member of the Armed Forces or an
    officer or employee of the United States, as the case may be). Other
    members of the task force shall be appointed in accordance with, and
    subject to, section 3161 of title 5, United States Code.
        (2) The Deputy Under Secretary of Defense for Personnel and
    Readiness, under the direction of the Under Secretary of Defense for
    Personnel and Readiness, shall provide oversight of the task force. The
    Washington Headquarters Service of the Department of Defense shall
    provide the task force with personnel, facilities, and other
    administrative support as necessary for the performance of the task
    force's duties.
        (3) The Deputy Under Secretary shall coordinate with the Secretary
    of the Army to provide visits of the task force to the United States
    Military Academy and with the Secretary of the Navy to provide visits
    of the task force to the United States Naval Academy.
        (i) Termination.--The task force shall terminate 90 days after the
    date on which the report of the task force is submitted to the
    Committees on Armed Services of the Senate and House of Representatives
    pursuant to subsection (d)(3).

                       Subtitle E--Administrative Matters

    SEC. 541. ENHANCEMENTS TO HIGH-TEMPO PERSONNEL PROGRAM.

        (a) Revisions to Deployment Limits and Authority To Authorize
    Exemptions.--Subsection (a) of section 991 of title 10, United States
    Code, is amended to read as follows:
        ``(a) Service and General or Flag Officer Responsibilities.--(1)
    Subject to paragraph (3), the deployment (or potential deployment) of
    members of the armed forces shall be managed to ensure that a member is
    not deployed, or continued in a deployment, on any day on which the
    total number of days on which the member has been deployed out of the
    preceding 730 days would exceed the high-deployment threshold.
        ``(2) In this subsection, the term `high-deployment threshold'
    means--
                ``(A) 400 days; or
                ``(B) a lower number of days prescribed by the Secretary of
            Defense.
        ``(3) A member may be deployed, or continued in a deployment,
    without regard to paragraph (1) if the deployment, or continued
    deployment, is approved by the Secretary of Defense. The authority of
    the Secretary under the preceding sentence may only be delegated to--
                ``(A) a civilian officer of the Department of Defense
            appointed by the President, by and with the advise and consent
            of the Senate, or a member of the Senior Executive Service; or
                ``(B) a general or flag officer in that member's chain of
            command (including an officer in the grade of colonel, or in
            the case of the Navy, captain, serving an in a general or flag
            officer position who has been selected for promotion to the
            grade of brigadier general or rear admiral (lower half)).''.
        (b) Changes From Per Diem to High-Deployment Allowance.--(1)
    Subsection (a) of section 436 of title 37, United States Code, is
    amended to read as follows:
        ``(a) Monthly Allowance.--The Secretary of the military department
    concerned shall pay a high-deployment allowance to a member of the
    armed forces under the Secretary's jurisdiction for each month during
    which the member--
                ``(1) is deployed; and
                ``(2) at any time during that month--
                        ``(A) has been deployed for 191 or more consecutive
                    days (or a lower number of consecutive days prescribed
                    by the Secretary of Defense);
                        ``(B) has been deployed, out of the preceding 730
                    days, for a total of 401 or more days (or a lower
                    number of days prescribed by the Secretary of Defense);
                    or
                        ``(C) in the case of a member of a reserve
                    component, is on active duty under a call or order to
                    active duty for a period of more than 30 days that is
                    the second (or later) such call or order to active duty
                    (whether voluntary or involuntary) for that member in
                    support of the same contingency operation.''.
        (2) Subsection (c) of such section is amended to read as follows:
        ``(c) Rate.--The monthly rate of the allowance payable to a member
    under this section shall be determined by the Secretary concerned, not
    to exceed $1,000 per month.''.
        (3) Such section is further amended--
                (A) in subsection (d), by striking ``per diem'';
                (B) in subsection (e), by striking ``per diem'' and
            inserting ``allowance'';
                (C) in subsection (f)--
                        (i) by striking ``per diem'' and inserting
                    ``allowance''; and
                        (ii) by striking ``day on'' and inserting ``month
                    during''; and
                (D) by adding at the end the following new subsection:
        ``(g) Authority to Exclude Certain Duty Assignments.--The Secretary
    concerned may exclude members serving in specified duty assignments
    from eligibility for the high-deployment allowance while serving in
    those assignments. Any such specification of duty assignments may only
    be made with the approval of the Secretary of Defense. Specification of
    a particular duty assignment for purposes of this subsection may not be
    implemented so as to apply to the member serving in that position at
    the time of such specification.''.
        (4)(A) The heading of such section is amended to read as follows:
    ``Sec. 436. Monthly high-deployment allowance for lengthy or numerous
                  deployments''.
        (B) The item relating to that section in the table of sections at
    the beginning of chapter 7 of such title is amended to read as follows:

    ``436. Monthly high-deployment allowance for lengthy or numerous
                                deployments.''.
        (c) Changes to Reporting Requirement.--Section 487(b)(5) of title
    10, United States Code, is amended to read as follows:
        ``(5) For each of the armed forces, the description shall indicate,
    for the period covered by the report--
                ``(A) the number of members who received the high-
            deployment allowance under section 436 of title 37;
                ``(B) the number of members who received each rate of
            allowance paid;
                ``(C) the number of members who received the allowance for
            one month, for two months, for three months, for four months,
            for five months, for six months, and for more than six months;
            and
                ``(D) the total amount spent on the allowance.''.

    SEC. 542. ENHANCED RETENTION OF ACCUMULATED LEAVE FOR HIGH-DEPLOYMENT
                  MEMBERS.

        (a) Enhanced Authority to Retain Accumulated Leave.--Paragraph (1)
    of section 701(f) of title 10, United States Code, is amended to read
    as follows:
        ``(f)(1)(A) The Secretary concerned, under uniform regulations to
    be prescribed by the Secretary of Defense, may authorize a member
    described in subparagraph (B) who, except for this paragraph, would
    lose any accumulated leave in excess of 60 days at the end of the
    fiscal year, to retain an accumulated total of 120 days leave.
        ``(B) This subsection applies to a member who serves on active duty
    for a continuous period of at least 120 days--
                ``(i) in an area in which the member is entitled to special
            pay under section 310(a) of title 37; or
                ``(ii) while assigned to a deployable ship or mobile unit
            or to other duty comparable to that specified in clause (i)
            that is designated for the purpose of this subsection.
        ``(C) Except as provided in paragraph (2), Leave in excess of 60
    days accumulated under this paragraph is lost unless it is used by the
    member before the end of the third fiscal year after the fiscal year in
    which the continuous period of service referred to in subparagraph (B)
    terminated.''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    take effect on October 1, 2003, or the date of the enactment of this
    Act, whichever is later.

    SEC. 543. STANDARDIZATION OF TIME-IN-SERVICE REQUIREMENTS FOR VOLUNTARY
                  RETIREMENT OF MEMBERS OF THE NAVY AND MARINE CORPS WITH
                  ARMY AND AIR FORCE REQUIREMENTS.

        (a) Officers in Regular Navy or Marine Corps Who Completed 40 Years
    of Active Service.--Section 6321(a) of title 10, United States Code, is
    amended by striking ``after completing 40 or more years'' and inserting
    ``and has at least 40 years''.
        (b) Officers in Regular Navy or Marine Corps Who Completed 30 Years
    of Active Service.--Section 6322(a) of such title is amended by
    striking ``after completing 30 or more years'' and inserting ``and has
    at least 30 years''.
        (c) Officers in Navy or Marine Corps Who Completed 20 Years of
    Active Service.--Section 6323(a)(1) of such title is amended by
    striking ``after completing more than 20 years'' and inserting ``and
    has at least 20 years''.
        (d) Enlisted Members in Regular Navy or Marine Corps Who Completed
    30 Years of Active Service.--Section 6326(a) of such title is amended
    by striking ``after completing 30 or more years'' and inserting ``and
    has at least 30 years''.
        (e) Transfer of Enlisted Members to the Fleet Reserve and Fleet
    Marine Corps Reserve.--Section 6330(b) of such title is amended by
    striking ``who has completed 20 or more years'' both places it appears
    and inserting ``who has at least 20 years''.
        (f) Transfer of Members of the Fleet Reserve and Fleet Marine Corps
    Reserve to the Retired List.--Section 6331(a) of such title is amended
    by striking ``completed 30 years'' and inserting ``has at least 30
    years''.
        (g) Effective Date.--The Secretary of the Navy shall prescribe the
    date on which the amendments made by this section shall take effect.
    The Secretary shall publish such date, when prescribed, in the Federal
    Register.

    SEC. 544. STANDARDIZATION OF STATUTORY AUTHORITIES FOR EXEMPTIONS FROM
                  REQUIREMENT FOR ACCESS TO SECONDARY SCHOOLS BY MILITARY
                  RECRUITERS.

        (a) Consistency With Elementary and Secondary Education Act of
    1965.--Paragraph (5) of section 503(c) of title 10, United States Code,
    is amended by striking ``apply to--'' and all that follows through
    ``school which'' and inserting ``apply to a private secondary school
    that''.
        (b) Correction of Cross Reference.--Paragraph (6)(A)(i) of such
    section is amended by striking ``14101'' and ``8801'' and inserting
    ``9101'' and ``7801'', respectively.

    SEC. 545. PROCEDURES FOR CONSIDERATION OF APPLICATIONS FOR AWARD OF THE
                  PURPLE HEART MEDAL TO VETERANS HELD AS PRISONERS OF WAR
                  BEFORE APRIL 25, 1962.

        Subsection (b) of section 521 of the National Defense Authorization
    Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 309; 10 U.S.C.
    1129 note) is amended to read as follows:
        ``(b) Standards and Procedures for Award.--In determining whether a
    former prisoner of war is eligible for the award of the Purple Heart
    under subsection (a), the Secretary concerned shall apply the following
    procedures:
                ``(1) The standard to be used by the Secretary concerned
            for awarding the Purple Heart under this section shall be to
            award the Purple Heart in any case in which a prisoner of war
            (A) was wounded while in captivity, or (B) while in captivity
            was subjected to systematic and prolonged deprivation of food,
            medical treatment, and other forms of deprivation or
            mistreatment likely to have prolonged aftereffects on the
            individual concerned.
                ``(2) When a former prisoner of war applies for the Purple
            Heart under subsection (a), the Secretary concerned may request
            the former prisoner of war to provide any documentation that
            the Secretary would otherwise require, but failure of the
            former prisoner of war to provide such documentation shall not
            by itself be a disqualification for award of the Purple Heart.
                ``(3) The Secretary concerned shall inform the former
            prisoner of war that historical information as to the prison
            camp or other circumstances in which the former prisoner of war
            was held captive and other information as to the circumstances
            of the former prisoner of war's captivity may be considered by
            the Secretary in evaluating the application for the award of
            the Purple Heart and that the former prisoner of war may submit
            such information.
                ``(4) The Secretary concerned shall provide assistance to
            the applicant for the Purple Heart in obtaining information
            referred to in paragraph (3).
                ``(5) The Secretary shall review a completed application
            under this section based upon the totality of the evidence
            presented and shall take into account the length of time
            between the period during which the applicant was held as a
            prisoner of war and the date of the application.
                ``(6) In considering an application under this section, the
            Secretary shall take into account the length of time that the
            applicant was held in captivity, which while not in itself
            establishing entitlement of the applicant to award of the
            Purple Heart, can and should be a factor in determining whether
            a former prisoner of war was likely to have been wounded,
            starved, or denied medical treatment to the extent likely to
            have prolonged aftereffects on the individual concerned.''.

    SEC. 546. AUTHORITY FOR RESERVE AND RETIRED REGULAR OFFICERS TO HOLD
                  STATE AND LOCAL ELECTIVE OFFICE NOTWITHSTANDING CALL TO
                  ACTIVE DUTY.

        Section 973(b)(3) of title 10, United States Code, is amended--
                (1) by inserting ``(A)'' after ``(3)''; and
                (2) by adding at the end the following:
        ``(B) The prohibition in subparagraph (A) does not apply to the
    functions of a civil office held by election, in the case of an officer
    to whom this subsection applies by reason of subparagraph (B) or (C) of
    paragraph (1).''.

    SEC. 547. CLARIFICATION OF OFFENSE UNDER THE UNIFORM CODE OF MILITARY
                  JUSTICE RELATING TO DRUNKEN OR RECKLESS OPERATION OF A
                  VEHICLE, AIRCRAFT, OR VESSEL.

        Section 991 of title 10, United States Code (article 111 of the
    Uniform Code of Military Justice), is amended--
                (1) in subsection (a)(2) by striking ``in excess of'' and
            inserting ``at, or in excess of,''; and
                (2) in subsection (b)(4), by striking ``maximum
            permissible'' and all that follows through the period at the
            end and inserting ``amount of alcohol concentration in a
            person's blood or breath at which operation or control of a
            vehicle, aircraft, or vessel is prohibited.''.

    SEC. 548. PUBLIC IDENTIFICATION OF CASUALTIES NO SOONER THAN 24 HOURS
                  AFTER NOTIFICATION OF NEXT-OF-KIN.

        The Secretary of Defense may not publicly release the name or other
    personally identifying information of any member of the Army, Navy, Air
    Force, or Marine Corps who while on active duty or performing inactive
    duty training is killed or injured, whose duty status becomes unknown,
    or who is otherwise considered to be a casualty until a period of 24
    hours has elapsed after the notification of the next-of-kin of such
    member.

                              Subtitle F--Benefits

    SEC. 551. ADDITIONAL CLASSES OF INDIVIDUALS ELIGIBLE TO PARTICIPATE IN
                  THE FEDERAL LONG-TERM CARE INSURANCE PROGRAM.

        (a) Certain Employees of the District of Columbia Government.--
    Section 9001(1) of title 5, United States Code, is amended by striking
    ``2105(c),'' and all that follows and inserting ``2105(c).''.
        (b) Former Federal Employees Who Would Be Eligible To Begin
    Receiving an Annuity Upon Attaining the Requisite Minimum Age.--Section
    9001(2) of title 5, United States Code, is amended--
                (1) in subparagraph (A), by striking ``and'' at the end;
                (2) in subparagraph (B), by striking the period and
            inserting ``; and''; and
                (3) by adding at the end the following:
                        ``(C) any former employee who, on the basis of his
                    or her service, would meet all requirements for being
                    considered an `annuitant' within the meaning of
                    subchapter III of chapter 83, chapter 84, or any other
                    retirement system for employees of the Government, but
                    for the fact that such former employee has not attained
                    the minimum age for title to annuity.''.
        (c) Reservists Transferred to the Retired Reserve Who Are Under Age
    60.--Section 9001(4) of title 5, United States Code, is amended by
    striking ``including'' and all that follows through ``who has'' and
    inserting ``and a member who has been transferred to the Retired
    Reserve and who would be entitled to retired pay under chapter 1223 of
    title 10 but for not having''.

    SEC. 552. AUTHORITY TO TRANSPORT REMAINS OF RETIREES AND RETIREE
                  DEPENDENTS WHO DIE IN MILITARY TREATMENT FACILITIES
                  OUTSIDE THE UNITED STATES.

        (a) Authorized Transportation.--Section 1490 of title 10, United
    States Code, is amended--
                (1) in subsection (a), by striking ``located in the United
            States''; and
                (2) in subsection (b)(1), by striking ``outside the United
            States or to a place''.
        (b) Conforming Amendment.--Subsection (c) of such section is
    amended to read as follows:
        ``(c) Definition of Dependent.--In this section, the term
    `dependent' has the meaning given such term in section 1072(2) of this
    title.''.
        (c) Effective Date.--The amendments made by this section shall
    apply only with respect to persons dying on or after the date of the
    enactment of this Act.

    SEC. 553. ELIGIBILITY FOR DEPENDENTS OF CERTAIN MOBILIZED RESERVISTS
                  STATIONED OVERSEAS TO ATTEND DEFENSE DEPENDENTS SCHOOLS
                  OVERSEAS.

        (a) Tuition-Free Status Parity With Dependents of Other
    Reservists.--Section 1404(c) of the Defense Dependents' Education Act
    of 1978 (20 U.S.C. 923(c)) is amended--
                (1) by inserting ``(1)'' after ``(c)''; and
                (2) by adding at the end the following new paragraph:
        ``(2)(A) The Secretary shall include in the regulations prescribed
    under this subsection a requirement that children in the class of
    children described in subparagraph (B) shall be subject to the same
    tuition requirements, or waiver of tuition requirements, as children in
    the class of children described in subparagraph (C).
        ``(B) The class of children described in this subparagraph are
    children of members of reserve components of the Armed Forces who--
                ``(i) are on active duty under an order to active duty
            under section 12301 or 12302 of title 10, United States Code;
                ``(ii) were ordered to active duty from a location in the
            United States (other than in Alaska or Hawaii); and
                ``(iii) are serving on active duty outside the United
            States or in Alaska or Hawaii in a tour of duty that
            (voluntarily or involuntarily) has been extended to a period in
            excess of one year.
        ``(C) The class of children described in this subparagraph are
    children of members of reserve components of the Armed Forces who--
                ``(i) are on active duty under an order to active duty
            under section 12301 or 12302 of title 10, United States Code;
                ``(ii) were ordered to active duty from a location outside
            the United States (or in Alaska or Hawaii); and
                ``(iii) are serving on active duty outside the United
            States or in Alaska or Hawaii.''.
        (b) Clerical Amendment.--The heading of such section is amended to
    read as follows:

              ``space-available enrollment of students; tuition''.

        (c) Implementation of Required New Regulations.--Regulations
    required by paragraph (2) of section 1404(c) of the Defense Dependents'
    Education Act of 1978 (20 U.S.C. 923(c)), as added by subsection (a),
    shall be prescribed as soon as practicable after the date of the
    enactment of this Act in order to provide the earliest opportunity for
    dependents covered by that paragraph to enroll in Department of Defense
    dependents' schools, and in no event later than the beginning of the
    first school term beginning after the date of the enactment of this
    Act.

                           Subtitle G--Other Matters

    SEC. 561. EXTENSION OF REQUIREMENT FOR EXEMPLARY CONDUCT BY COMMANDING
                  OFFICERS AND OTHERS IN AUTHORITY TO INCLUDE CIVILIANS IN
                  AUTHORITY IN THE DEPARTMENT OF DEFENSE.

        (a) In General.--(1) Chapter 50 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 992. Requirement of exemplary conduct: commanding officers and
                  others in authority
        ``All commanding officers and others in authority in the Department
    of Defense are required--
                ``(1) to show in themselves a good example of virtue,
            honor, patriotism, and subordination;
                ``(2) to be vigilant in inspecting the conduct of all
            persons who are placed under their command or charge;
                ``(3) to guard against and to suppress all dissolute and
            immoral practices and to correct, according to applicable laws
            and regulations, all persons who are guilty of them; and
                ``(4) to take all necessary and proper measures, under the
            laws, regulations, and customs applicable to the armed forces,
            to promote and safeguard the morale, the physical well-being,
            and the general welfare of all under their command or
            charge.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``992. Requirement of exemplary conduct: commanding officers and others
                                in authority.''.
        (b) Conforming Repeals.--Title 10, United States Code, is further
    amended as follows:
                (1) Section 3583, 5947, and 8583 are repealed.
                (2)(A) The table of sections at the beginning of chapter
            345 is amended by striking the item relating to section 3583.
                (B) The table of sections at the beginning of chapter 551
            is amended by striking the item relating to section 5947.
                (C) The table of sections at the beginning of chapter 845
            is amended by striking the item relating to section 8583.

    SEC. 562. RECOGNITION OF MILITARY FAMILIES.

        (a) Findings.--Congress makes the following findings:
                (1) The families of both active and reserve component
            military personnel, through their sacrifices and their
            dedication to the Nation and its values, contribute
            immeasurably to the readiness of the Nation's Armed Forces.
                (2) Without the continued support of military families, the
            Nation's ability to sustain a high quality all-volunteer
            military force would be undermined.
                (3) In these perilous and challenging times, with hundreds
            of thousands of active and reserve military personnel deployed
            overseas in places of combat and imminent danger, military
            families are making extraordinary sacrifices and will be
            required to do so for the foreseeable future.
                (4) Beginning in 1997, military family service and support
            centers have received materials from private, non-profit
            organizational sources which are designed to encourage and
            assist those centers in conducting activities to celebrate the
            American military family during the Thanksgiving period each
            November.
        (b) Military Family Recognition.-- In view of the findings in
    subsection (a), Congress determines that it is appropriate that special
    measures be taken annually to recognize and honor the American military
    family.
        (c) Department of Defense Programs and Activities.--The Secretary
    of Defense shall--
                (1) implement and sustain programs, including appropriate
            ceremonies and activities, to celebrate the contributions and
            sacrifices of the American military family, including both
            families of both active and reserve component military
            personnel;
                (2) focus the celebration of the American military family
            during a specific period of each year to give full and proper
            highlight to those families; and
                (3) seek the assistance and support of appropriate civilian
            organizations, associations, and other entities in carrying out
            not only the annual celebration of the American military
            family, but also in sustaining longer-term efforts.

    SEC. 563. 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
    2004.--Of the amount authorized to be appropriated pursuant to section
    301(5) for operation and maintenance for Defense-wide activities,
    $35,000,000 shall be available only for the purpose of providing
    educational agencies assistance to local educational agencies.
        (b) Notification.--Not later than June 30, 2004, the Secretary of
    Defense shall notify each local educational agency that is eligible for
    educational agencies assistance for fiscal year 2004 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. 564. PERMANENT AUTHORITY FOR SUPPORT FOR CERTAIN CHAPLAIN-LED
                  MILITARY FAMILY SUPPORT PROGRAMS.

        (a) In General.--(1) Chapter 88 of title 10, United States Code, is
    amended by inserting at the end of subchapter I the following new
    section:
    ``Sec. 1789. Chaplain-led programs: authorized support
        ``(a) Authority.--The Secretary of a military department may
    provide support services described in subsection (b) to support
    chaplain-led programs to assist members of the armed forces on active
    duty and their immediate family members, and members of reserve
    components in an active status and their immediate family members, in
    building and maintaining a strong family structure.
        ``(b) Authorized Support Services.--The support services referred
    to in subsection (a) are costs of transportation, food, lodging, child
    care, supplies, fees, and training materials for members of the armed
    forces and their family members while participating in programs
    referred to in that subsection, including participation at retreats and
    conferences.
        ``(c) Immediate Family Members.--In this section, the term
    `immediate family members', with respect to a member of the armed
    forces, means--
                ``(1) the member's spouse; and
                ``(2) any child (as defined in section 1072(6) of this
            title) of the member who is described in subparagraph (D) of
            section 1072(2) of this title.''.
        (2) The table of sections at the beginning of such subchapter is
    amended by inserting after the item relating to section 1788 the
    following new item:

    ``1789. Chaplain-led programs: authorized support.''.
        (b) Effective Date.--Section 1789 of title 10, United States Code,
    as added by subsection (a), shall take effect on October 1, 2003.

    SEC. 565. DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS AFFAIRS JOINT
                  EXECUTIVE COMMITTEE.

        (a) Establishment of Joint Committee.--(1) Chapter 3 of title 38,
    United States Code, is amended by adding at the end the following new
    section:
    ``Sec. 320. Department of Veterans Affairs-Department of Defense Joint
                  Executive Committee
        ``(a) Joint Executive Committee.--(1) There is established an
    interagency committee to be known as the Department of Veterans
    Affairs-Department of Defense Joint Executive Committee (hereinafter in
    this section referred to as the `Committee').
        ``(2) The Committee is composed of--
                ``(A) the Deputy Secretary of Veterans Affairs and such
            other officers and employees of the Department of Veterans
            Affairs as the Secretary of Veterans Affairs may designate; and
                ``(B) the Under Secretary of Defense for Personnel and
            Readiness and such other officers and employees of the
            Department of Defense as the Secretary of Defense may
            designate.
        ``(b) Administrative Matters.--(1) The Deputy Secretary of Veterans
    Affairs and the Under Secretary of Defense shall determine the size and
    structure of the Committee, as well as the administrative and
    procedural guidelines for the operation of the Committee.
        ``(2) The two Departments shall supply appropriate staff and
    resources to provide administrative support and services. Support for
    such purposes shall be provided at a level sufficient for the efficient
    operation of the Committee, including a subordinate Health Executive
    Committee, a subordinate Benefits Executive Committee, and such other
    committees or working groups as considered necessary by the Deputy
    Secretary and Under Secretary.
        ``(c) Recommendations.--(1) The Committee shall recommend to the
    Secretaries strategic direction for the joint coordination and sharing
    efforts between and within the two Departments under section 8111 of
    this title and shall oversee implementation of those efforts.
        ``(2) The Committee shall submit to the two Secretaries and to
    Congress an annual report containing such recommendations as the
    Committee considers appropriate.
        ``(d) Functions.--In order to enable the Committee to make
    recommendations in its annual report under subsection (c)(2), the
    Committee shall do the following:
                ``(1) Review existing policies, procedures, and practices
            relating to the coordination and sharing of resources between
            the two Departments.
                ``(2) Identify changes in policies, procedures, and
            practices that, in the judgment of the Committee, would promote
            mutually beneficial coordination, use, or exchange of use of
            services and resources of the two Departments, with the goal of
            improving the quality, efficiency and effectiveness of the
            delivery of benefits and services to veterans, service members,
            military retirees and their families through an enhanced
            Department of Veterans Affairs and Department of Defense
            partnership.
                ``(3) Identify and assess further opportunities for the
            coordination and collaboration between the Departments that, in
            the judgment of the Committee, would not adversely affect the
            range of services, the quality of care, or the established
            priorities for benefits provided by either Department.
                ``(4) Review the plans of both Departments for the
            acquisition of additional resources, especially new facilities
            and major equipment and technology, in order to assess the
            potential effect of such plans on further opportunities for the
            coordination and sharing of resources.
                ``(5) Review the implementation of activities designed to
            promote the coordination and sharing of resources between the
            Departments.''.
        (2) The table of sections at the beginning of such chapter is
    amended by adding at the end the following new item:

    ``320. Department of Veterans Affairs-Department of Defense Joint
                                Executive Committee.''.
        (b) Conforming Amendments.--(1) Subsection (c) of section 8111 of
    such title is repealed.
        (2) Such section is further amended--
                (A) in subsection (b)(2), by striking ``subsection (c)''
            and inserting ``section 320 of this title'';
                (B) in subsection (d)(1), by striking ``Committee
            established in subsection (c)'' and inserting ``Department of
            Veterans Affairs-Department of Defense Joint Executive
            Committee'';
                (C) in subsection (e)(1), by striking ``Committee under
            subsection (c)(2)'' and inserting ``Department of Veterans
            Affairs-Department of Defense Joint Executive Committee with
            respect to health care resources''; and
                (D) in subsection (f)(2), by striking subparagraphs (B) and
            (C) and inserting the following:
                ``(B) The assessment of further opportunities identified by
            the Department of Veterans Affairs-Department of Defense Joint
            Executive Committee under subsection (d)(3) of section 320 of
            this title for the sharing of health-care resources between the
            two Departments.
                ``(C) Any recommendation made by that committee under
            subsection (c)(2) of that section during that fiscal year.''.
        (c) Technical Amendments.--Subsection (f) of such section is
    further amended by inserting ``(Public Law 107-314)'' in paragraphs
    (3), (4)(A), (4)(B), and (5) after ``for Fiscal Year 2003''.
        (d) Effective Date.--(1) If this Act is enacted before October 1,
    2003--
                (A) section 320 of title 38, United States Code, as added
            by subsection (a), shall take effect on October 1, 2003; and
                (B) the amendments made by subsections (b) and (c) shall
            take effect on October 1, 2003, immediately after the amendment
            made by section 721(a)(1) of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116
            2589).
        (2) If this Act is enacted on or after October 1, 2003, the
    amendments made by this section shall take effect on the date of the
    enactment of this Act.

    SEC. 566. LIMITATION ON AVIATION FORCE STRUCTURE CHANGES IN THE
                  DEPARTMENT OF THE NAVY.

        (a) Limitation.--The Secretary of the Navy shall ensure that no
    reductions are made in the active and reserve force structure of the
    Navy and Marine Corps for fixed- and rotary-wing aircraft until 90 days
    have elapsed after the date as of which both of the reports required by
    subsections (b) and (c) have been received by the committees named in
    those subsections.
        (b) Naval Aviation Force Structure Plan.--The Secretary of the Navy
    shall submit to the Committee on Armed Services of the Senate and the
    Committee on Armed Services of the House of Representatives a detailed
    report on the changes to the active and reserve aviation force
    structure in the Department of the Navy that are proposed for fiscal
    years 2004 through 2009. The report shall include the following:
                (1) The numbers of aircraft and helicopter force structure
            planned for retirement.
                (2) The amounts of planned budget authority to be saved,
            shown by year and by appropriation, compared to the May 1,
            2003, force structure.
                (3) An assessment by the Chief of Naval Operations
            comparing the future force structure plan with capabilities of
            the Department of the Navy's aviation force structure on May 1,
            2003.
                (4) A risk assessment of the planned force structure to
            carry out the National Security Strategy of the United States,
            dated September 2002.
                (5) A risk assessment of the planned force based on the
            assumptions applied in the September 30, 2001, Quadrennial
            Defense Review Report.
        (c) Active and Reserve Component Integration Plan.--The Secretary
    of the Navy shall submit to the Committee on Armed Services of the
    Senate and the Committee on Armed Services of the House of
    Representatives a concept of operations for increasing the integration
    and use of Naval Reserve surface, aviation, and other units and
    personnel with active component forces in carrying out operational
    missions across the peacetime and wartime spectrum of naval operations
    during the period of 2004 through 2009.

    SEC. 567. IMPACT AID ELIGIBILITY FOR HEAVILY IMPACTED LOCAL EDUCATIONAL
                  AGENCIES AFFECTED BY PRIVITIZATION OF MILITARY HOUSING.

        Section 8003(b)(2)(H) of the Elementary and Secondary Education Act
    of 1965 (20 U.S.C. 7703(b)(2)(H)) is amended by striking clauses (i)
    and (ii) and inserting the following:
                                ``(i) Eligibility.--For any fiscal year
                            beginning with fiscal 2003, a heavily impacted
                            local educational agency that received a basic
                            support payment under paragraph (b)(2) for the
                            prior fiscal year, but is ineligible for such
                            payment for the current fiscal year under
                            subparagraph (B), (C), (D), or (E), 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 and
                            under the same provisions of subparagraph (D)
                            or (E) under which the agency was paid during
                            the prior fiscal year.''.

    SEC. 568. INVESTIGATION INTO THE 1991 DEATH OF MARINE CORPS COLONEL
                  JAMES E. SABOW.

        (a) Investigation Required.--Not later than 60 days after the date
    of the enactment of this Act, the Secretary of Defense shall commence a
    new investigation into the death of Colonel James S. Sabow, United
    States Marine Corps, who died on January 22, 1991, at the Marine Corps
    Air Station, El Toro, California.
        (b) Focus of Investigation.--The principal focus of the
    investigation under subsection (a) shall be to determine the cause of
    Colonel Sabow's death, given the medical and forensic factors
    associated with that death.
        (c) Review by Outside Experts.--The Secretary of Defense shall
    provide that the evidence concerning the cause of Colonel Sabow's death
    and the medical and forensic factors associated with his death shall be
    reviewed by medical and forensic experts outside the Department of
    Defense.
        (d) Report.--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 written report on the
    findings of the investigation under subsection (a). The Secretary shall
    include in the report (1) the Secretary's conclusions as a result of
    the investigation, including the Secretary's conclusions regarding the
    cause of death of Colonel Sabow, and (2) the conclusions of the experts
    reviewing the matter under subsection (c).

                         Subtitle H--Domestic Violence

    SEC. 571. TRAVEL AND TRANSPORTATION FOR DEPENDENTS RELOCATING FOR
                  REASONS OF PERSONAL SAFETY.

        Section 406(h) of title 37, United States Code, is amended by
    adding at the end the following new paragraph:
        ``(4)(A) The Secretary concerned shall provide to the dependents of
    a member the travel and transportation allowances described in
    paragraphs (1) and (3) in a case in which--
                ``(i) a commander has substantiated that the member has
            committed dependent abuse, as defined in section 1059(c) of
            title 10;
                ``(ii) a safety plan and counseling have been provided;
                ``(iii) there has been a determination that the victim's
            safety is at stake and that relocation is the best course of
            action; and
                ``(iv) the abused dependent, or parent of the abused
            dependent if the abused dependent is a child, requests
            relocation.
        ``(B) In the case of allowances paid under subparagraph (A), any
    monetary allowances shall accrue to the dependents in lieu of the
    member and may be paid to the dependents.
        ``(C) Shipment of the dependent's baggage and household effects,
    and of any motor vehicle, may not be provided until there is a property
    division established by written agreement with the member or by order
    of a court of competent jurisdiction.''.

    SEC. 572. COMMENCEMENT AND DURATION OF PAYMENT OF TRANSITIONAL
                  COMPENSATION.

        (a) Commencement.--Paragraph (1)(A) of section 1059(e) of title 10,
    United States Code, is amended by striking ``shall commence'' and all
    that follows and inserting ``shall commence--
                        ``(i) as of the date the court martial sentence is
                    adjudged if the sentence, as adjudged, includes a
                    dismissal, dishonorable discharge, bad conduct
                    discharge, or forfeiture of all pay and allowances; or
                        ``(ii) if there is a pretrial agreement that
                    includes disapproval or suspension of the dismissal,
                    dishonorable discharge, bad conduct discharge, or
                    forfeiture of all pay and allowances, as of the date of
                    the approval of the court-martial sentence by the
                    person acting under section 860(c) of this title
                    (article 60(c) of the Uniform Code of Military Justice)
                    if the sentence, as approved, includes an unsuspended
                    dismissal, dishonorable discharge, bad conduct
                    discharge, or forfeiture of all pay and allowances;''.
        (b) Duration.--Paragraph (2) of such section is amended by striking
    ``, except that'' and all that follows through ``12 months''.
        (c) Termination.--Paragraph (3)(A) of such section is amended by
    striking ``punishment applicable to the member under the sentence is
    remitted, set aside, or mitigated'' and inserting ``conviction is
    disapproved by the person acting under section 860(c) of this title
    (article 60(c) of the Uniform Code of Military Justice) or set aside,
    or each such punishment applicable to the member under the sentence is
    disapproved by the person acting under section 860(c) of this title,
    remitted, set aside, suspended, or mitigated''.

    SEC. 573. FLEXIBILITY IN ELIGIBILITY FOR TRANSITIONAL COMPENSATION.

        (a) Authority.--Section 1059 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(m) Additional Eligibility.--The Secretary concerned, under
    regulations prescribed under subsection (k), may authorize eligibility
    for benefits under this section to dependents of a member or former
    member of the armed forces not covered by subsection (b) if the
    Secretary concerned determines that there are extenuating circumstances
    such that granting benefits under this section is consistent with the
    intent of this section.''.
        (b) Effective Date.--The authority under subsection (m) of section
    1059 of title 10, United States Code, as added by subsection (a), may
    only be exercised with respect to eligibility for benefits under such
    section by reason of conduct on or after the date of the enactment of
    this Act.

    SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIGGERING COVERAGE.

        Section 1059(b)(2) of title 10, United States Code, is amended by
    inserting ``, voluntarily or involuntarily,'' after ``administratively
    separated''.

    SEC. 575. ON-GOING REVIEW GROUP.

        Not later than two years after the date of the enactment of this
    Act, the Secretary of Defense shall convene a working group of not less
    than 12 members, composed in the same manner as the Defense Task Force
    on Domestic Violence established pursuant to section 591 of the
    National Defense Authorization Act for Fiscal Year 2000 (Public Law
    106-65). The purpose of the working group shall be to review and assess
    the progress of the Department of Defense in implementation of the
    recommendations of the Defense Task Force on Domestic Violence. In
    reviewing the status of the Department's efforts, the group should
    specifically focus on the Department's efforts to ensure
    confidentiality for victims and accountability and education of
    commanding officers and chaplains.

    SEC. 576. RESOURCES FOR DEPARTMENT OF DEFENSE IMPLEMENTATION
                  ORGANIZATION.

        The Secretary of Defense shall ensure that necessary resources,
    including personnel, facilities, and other administrative support, are
    provided to the organization within the Office of the Secretary of
    Defense with direct responsibility for oversight of implementation by
    the military departments of recommendations of the Task Force in order
    for that organization to carry out its duties and responsibilities.

    SEC. 577. FATALITY REVIEWS.

        (a) Review of Fatalities.--The Secretary of Defense shall conduct a
    multidisciplinary, impartial review (referred to as a ``fatality
    review'') in the case of each fatality known or suspected to have
    resulted from domestic violence or child abuse against--
                (1) a member of the Armed Forces;
                (2) a current or former dependent of a member of the Armed
            Forces; or
                (3) a current or former intimate partner who has a child in
            common or has shared a common domicile with a member of the
            Armed Forces.
        (b) Matters to be Included.--The report of a fatality review under
    subsection (a) shall, at a minimum, include the following:
                (1) An executive summary.
                (2) Data setting forth victim demographics, injuries,
            autopsy findings, homicide or suicide methods, weapons, police
            information, assailant demographics, and household and family
            information.
                (3) Legal disposition.
                (4) System intervention and failures within the Department
            of Defense.
                (5) A discussion of significant findings.
                (6) Recommendations for systemic changes within the
            Department of Defense.

    SEC. 578. SENSE OF CONGRESS.

        It is the sense of Congress that--
                (1) the Secretary of Defense should adopt the strategic
            plan proposed by the Defense Task Force on Domestic Violence in
            its Third Year Report, as required by section 591(a) of the
            Department of Defense Authorization Act for Fiscal Year 2000
            (Public Law 106-65); and
                (2) the Secretary of each military department should
            establish and support a Victim Advocate Protocol and provide
            for nondisclosure to ensure confidentiality for victims who
            come forward to receive advocacy, support, information, and
            resources, as recommended by the Defense Task Force on Domestic
            Violence.

              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         Subtitle A--Pay and Allowances

    SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2004.

        (a) Waiver of Section 1009 Adjustment.--The adjustment to become
    effective during fiscal year 2004 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 for Members of Armed Forces.--Effective
    on January 1, 2004, the rates of monthly basic pay for members of the
    Armed Forces 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.............   7,751.10   8,004.90   8,173.20   8,220.60    8,430.30
    O-7.............   6,440.70   6,739.80   6,878.40   6,988.50    7,187.40
    O-6.............   4,773.60   5,244.30   5,588.40   5,588.40    5,609.70
    O-5.............   3,979.50   4,482.90   4,793.40   4,851.60    5,044.80
    O-4.............   3,433.50   3,974.70   4,239.90   4,299.00    4,545.30
    O-3\3\..........   3,018.90   3,422.40   3,693.90   4,027.20    4,220.10
    O-2\3\..........   2,595.60   2,956.50   3,405.00   3,519.90    3,592.50
    O-1\3\..........   2,253.60   2,345.10   2,834.70   2,834.70    2,834.70
                     -------------------------------------------------------
                        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.............   8,781.90   8,863.50   9,197.10   9,292.80    9,579.90
    O-7.............   7,384.20   7,611.90   7,839.00   8,066.70    8,781.90
    O-6.............   5,850.00   5,882.10   5,882.10   6,216.30    6,807.30
    O-5.............   5,161.20   5,415.90   5,602.80   5,844.00    6,213.60
    O-4.............   4,809.30   5,137.80   5,394.00   5,571.60    5,673.60
    O-3\3\..........   4,431.60   4,568.70   4,794.30   4,911.30    4,911.30
    O-2\3\..........   3,592.50   3,592.50   3,592.50   3,592.50    3,592.50
    O-1\3\..........   2,834.70   2,834.70   2,834.70   2,834.70    2,834.70
                     -------------------------------------------------------
                       Over 18    Over 20    Over 22    Over 24     Over 26
                     -------------------------------------------------------
    O-10\2\.........      $0.00  $12,524.7  $12,586.2  $12,847.8  $13,303.80
                                         0          0          0
    O-9.............       0.00  10,954.50  11,112.30  11,340.30   11,738.40
    O-8.............   9,995.70  10,379.10  10,635.30  10,635.30   10,635.30
    O-7.............   9,386.10   9,386.10   9,386.10   9,386.10    9,433.50
    O-6.............   7,154.10   7,500.90   7,698.30   7,897.80    8,285.40
    O-5.............   6,389.70   6,563.40   6,760.80   6,760.80    6,760.80
    O-4.............   5,733.00   5,733.00   5,733.00   5,733.00    5,733.00
    O-3\3\..........   4,911.30   4,911.30   4,911.30   4,911.30    4,911.30
    O-2\3\..........   3,592.50   3,592.50   3,592.50   3,592.50    3,592.50
    O-1\3\..........   2,834.70   2,834.70   2,834.70   2,834.70    2,834.70
    ------------------------------------------------------------------------
    \1\Notwithstanding the basic pay rates specified in this table, the
      actual rate of basic pay for commissioned officers in pay grades O-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, the rate of basic pay for an
      officer in this grade 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, is $14,679.30, 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  $4,027.20   $4,220.10
    O-2E............       0.00       0.00       0.00   3,537.00    3,609.90
    O-1E............       0.00       0.00       0.00   2,848.50    3,042.30
                     -------------------------------------------------------
                        Over 8    Over 10    Over 12    Over 14     Over 16
                     -------------------------------------------------------
    O-3E............  $4,431.60  $4,568.70  $4,794.30  $4,984.20   $5,092.80
    O-2E............   3,724.80   3,918.60   4,068.60   4,180.20    4,180.20
    O-1E............   3,154.50   3,269.40   3,382.20   3,537.00    3,537.00
                     -------------------------------------------------------
                       Over 18    Over 20    Over 22    Over 24     Over 26
                     -------------------------------------------------------
    O-3E............  $5,241.30  $5,241.30  $5,241.30  $5,241.30   $5,241.30
    O-2E............   4,180.20   4,180.20   4,180.20   4,180.20    4,180.20
    O-1E............   3,537.00   3,537.00   3,537.00   3,537.00    3,537.00
    ------------------------------------------------------------------------

                               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..............   3,119.40   3,355.80   3,452.40   3,547.20   3,710.40
    W-3..............   2,848.80   2,967.90   3,089.40   3,129.30   3,257.10
    W-2..............   2,505.90   2,649.00   2,774.10   2,865.30   2,943.30
    W-1..............   2,212.80   2,394.00   2,515.20   2,593.50   2,802.30
                      ------------------------------------------------------
                         Over 8    Over 10    Over 12    Over 14    Over 16
                      ------------------------------------------------------
    W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
    W-4..............   3,871.50   4,035.00   4,194.30   4,359.00   4,617.30
    W-3..............   3,403.20   3,595.80   3,786.30   3,988.80   4,140.60
    W-2..............   3,157.80   3,321.60   3,443.40   3,562.20   3,643.80
    W-1..............   2,928.30   3,039.90   3,164.70   3,247.20   3,321.90
                      ------------------------------------------------------
                        Over 18    Over 20    Over 22    Over 24    Over 26
                      ------------------------------------------------------
    W-5..............      $0.00  $5,360.70  $5,544.30  $5,728.80  $5,914.20
    W-4..............   4,782.60   4,944.30   5,112.00   5,277.00   5,445.90
    W-3..............   4,291.80   4,356.90   4,424.10   4,570.20   4,716.30
    W-2..............   3,712.50   3,843.00   3,972.60   4,103.70   4,103.70
    W-1..............   3,443.70   3,535.80   3,535.80   3,535.80   3,535.80
    ------------------------------------------------------------------------
    \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..............   2,145.00   2,341.20   2,430.60   2,549.70   2,642.10
    E-6..............   1,855.50   2,041.20   2,131.20   2,218.80   2,310.00
    E-5..............   1,700.10   1,813.50   1,901.10   1,991.10   2,130.60
    E-4..............   1,558.20   1,638.30   1,726.80   1,814.10   1,891.50
    E-3..............   1,407.00   1,495.50   1,585.50   1,585.50   1,585.50
    E-2..............   1,331.40   1,331.40   1,331.40   1,331.40   1,331.40
    E-1\3\...........   1,173.90   1,173.90   1,173.90   1,173.90   1,173.90
                      ------------------------------------------------------
                         Over 8    Over 10    Over 12    Over 14    Over 16
                      ------------------------------------------------------
    E-9\2\...........      $0.00  $3,769.20  $3,854.70  $3,962.40  $4,089.30
    E-8..............   3,085.50   3,222.00   3,306.30   3,407.70   3,517.50
    E-7..............   2,801.40   2,891.10   2,980.20   3,139.80   3,219.60
    E-6..............   2,516.10   2,596.20   2,685.30   2,763.30   2,790.90
    E-5..............   2,250.90   2,339.70   2,367.90   2,367.90   2,367.90
    E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
    E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
    E-2..............   1,331.40   1,331.40   1,331.40   1,331.40   1,331.40
    E-1\3\...........   1,173.90   1,173.90   1,173.90   1,173.90   1,173.90
                      ------------------------------------------------------
                        Over 18    Over 20    Over 22    Over 24    Over 26
                      ------------------------------------------------------
    E-9\2\...........  $4,216.50  $4,421.10  $4,594.20  $4,776.60  $5,054.70
    E-8..............   3,715.50   3,815.70   3,986.40   4,081.20   4,314.30
    E-7..............   3,295.50   3,341.70   3,498.00   3,599.10   3,855.00
    E-6..............   2,809.80   2,809.80   2,809.80   2,809.80   2,809.80
    E-5..............   2,367.90   2,367.90   2,367.90   2,367.90   2,367.90
    E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
    E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
    E-2..............   1,331.40   1,331.40   1,331.40   1,331.40   1,331.40
    E-1\3\...........   1,173.90   1,173.90   1,173.90   1,173.90   1,173.90
    ------------------------------------------------------------------------
    \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, the rate of basic pay for an
      enlisted member in this grade 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, is $6,090.90, 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 $1,086.00.

        (c) Increase in Basic Pay for Other Members of Uniformed
    Services.--Effective on January 1, 2004, the rates of monthly basic pay
    for members of the National Oceanic and Atmospheric Administration and
    the Public Health Service are increased by 2 percent.
        (d) Definitions.--In this section, the terms ``armed forces'' and
    ``uniformed services'' have the meanings given such terms in section
    101 of title 37, United States Code.

    SEC. 602. COMPUTATION OF BASIC PAY RATE FOR COMMISSIONED OFFICERS WITH
                  PRIOR ENLISTED OR WARRANT OFFICER SERVICE.

        Section 203(d)(2) of title 37, United States Code, is amended--
                (1) in subparagraph (A), by striking ``enlisted member,''
            and all that follows through the period and inserting
            ``enlisted member.''; and
                (2) by striking subparagraph (B) and inserting the
            following new subparagraph:
                ``(B) Service as a warrant officer, as an enlisted member,
            or as a warrant officer and an enlisted member, for which at
            least 1,460 points have been credited to the officer for the
            purposes of section 12732(a)(2) of title 10.''.

    SEC. 603. SPECIAL SUBSISTENCE ALLOWANCE AUTHORITIES FOR MEMBERS
                  ASSIGNED TO HIGH-COST DUTY LOCATION OR UNDER OTHER UNIQUE
                  AND UNUSUAL CIRCUMSTANCES.

        (a) In General.--Section 402 of title 37, United States Code, is
    amended--
                (1) by redesignating subsections (f) and (g) as subsections
            (g) and (h), respectively; and
                (2) by inserting after subsection (e) the following new
            subsection:
        ``(f) Special Rule for High-Cost Duty Locations and Other Unique
    and Unusual Circumstances.--The Secretary of Defense may authorize a
    member of the armed forces who is assigned to duty in a high-cost duty
    location or under other unique and unusual circumstances, but is not
    entitled to the meals portion of the per diem in connection with that
    duty, to receive any or all of the following:
                ``(1) Meals at no cost to the member, regardless of the
            entitlement of the member to a basic allowance for subsistence
            under subsection (a).
                ``(2) A basic allowance for subsistence at the standard
            rate, regardless of the entitlement of the member for all meals
            or select meals during the duty day.
                ``(3) A supplemental subsistence allowance at a rate higher
            than the basic allowance for subsistence rates in effect under
            this section, regardless of the entitlement of the member for
            all meals or select meals during the duty day.''.
        (b) Retroactive and Prospective Application.--Subsection (f) of
    section 402 of title 37, United States Code, as added by subsection
    (a), shall apply with respect to members of the Armed Forces assigned
    to duty in a high-cost duty location or under other unique and unusual
    circumstances, as determined pursuant to regulations prescribed
    pursuant to subsection (c), after September 11, 2001.
        (c) Regulations; Time Limits.--Final regulations to carry out
    subsection (f) of section 402 of title 37, United States Code, as added
    by subsection (a), shall be prescribed not later than 180 days after
    the date of the enactment of this Act. The regulations shall provide a
    method by which a member of the Armed Forces covered by such subsection
    (f) may obtain reimbursement for subsistence expenses incurred by the
    member during the period beginning on September 11, 2001, and ending on
    the date the regulations take effect.

               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, 2003''
    and inserting ``December 31, 2004''.
        (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such
    title is amended by striking ``December 31, 2003'' and inserting
    ``December 31, 2004''.
        (c) Special Pay for Enlisted Members Assigned to Certain High
    Priority Units.--Section 308d(c) of such title is amended by striking
    ``December 31, 2003'' and inserting ``December 31, 2004''.
        (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of such
    title is amended by striking ``December 31, 2003'' and inserting
    ``December 31, 2004''.
        (e) Ready Reserve Enlistment and Reenlistment Bonus.--Section
    308h(g) of such title is amended by striking ``December 31, 2003'' and
    inserting ``December 31, 2004''.
        (f) Prior Service Enlistment Bonus.--Section 308i(f) of such title
    is amended by striking ``December 31, 2003'' and inserting ``December
    31, 2004''.

    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,
    2003'' and inserting ``December 31, 2004''.
        (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, 2004'' and inserting ``January 1,
    2005''.
        (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of
    title 37, United States Code, is amended by striking ``December 31,
    2003'' and inserting ``December 31, 2004''.
        (d) Incentive Special Pay for Nurse Anesthetists.--Section
    302e(a)(1) of such title is amended by striking ``December 31, 2003''
    and inserting ``December 31, 2004''.
        (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, 2003'' and inserting ``December 31,
    2004''.
        (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of
    such title is amended by striking ``December 31, 2003'' and inserting
    ``December 31, 2004''.

    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, 2003'' and inserting ``December 31,
    2004''.
        (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title
    is amended by striking ``December 31, 2003'' and inserting ``December
    31, 2004''.
        (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such
    title is amended by striking ``December 31, 2003'' and inserting
    ``December 31, 2004''.

    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, 2003'' and
    inserting ``December 31, 2004''.
        (b) Reenlistment Bonus for Active Members.--Section 308(g) of such
    title is amended by striking ``December 31, 2003'' and inserting
    ``December 31, 2004''.
        (c) Enlistment Bonus for Active Members.--Section 309(e) of such
    title is amended by striking ``December 31, 2003'' and inserting
    ``December 31, 2004''.
        (d) Retention Bonus for Members With Critical Military Skills.--
    Section 323(i) of such title is amended by striking ``December 31,
    2003'' and inserting ``December 31, 2004''.
        (e) Accession Bonus for New Officers in Critical Skills.--Section
    324(g) of such title is amended by striking ``December 31, 2003'' and
    inserting ``December 31, 2004''.

    SEC. 615. COMPUTATION OF HAZARDOUS DUTY INCENTIVE PAY FOR DEMOLITION
                  DUTY AND PARACHUTE JUMPING BY MEMBERS OF RESERVE
                  COMPONENTS ENTITLED TO COMPENSATION UNDER SECTION 206 OF
                  TITLE 37.

        (a) In General.--Section 301(f) of title 37, United States Code, is
    amended by adding at the end the following new paragraph:
        ``(3) Notwithstanding paragraphs (1) or (2), if a member described
    in paragraph (1) performs the duty described in clauses (3) or (4) of
    subsection (a) in any month, the member shall be entitled for that
    month to the full amount specified in the first sentence of subsection
    (c)(1), in the case of the duty described in clause (4) of subsection
    (a) or parachute jumping involving the use of a static line, or the
    full amount specified in the second sentence of subsection (c)(1), in
    the case of parachute jumping in military free fall operations.''.
        (b) Effective Date.--The amendment made by subsection (a) shall
    take effect October 1, 2003.

    SEC. 616. AVAILABILITY OF HOSTILE FIRE AND IMMINENT DANGER PAY FOR
                  RESERVE COMPONENT MEMBERS ON INACTIVE DUTY.

        (a) Expansion and Clarification of Current Law.--Section 310 of
    title 37, United States Code, is amended--
                (1) by redesignating subsections (b) and (c) as subsections
            (c) and (d), respectively; and
                (2) by striking subsection (a) and inserting the following
            new subsections:
        ``(a) Eligibility and Special Pay Amount.--Under regulations
    prescribed by the Secretary of Defense, a member of a uniformed service
    may be paid special pay at the rate of $150 for any month in which--
                ``(1) the member was entitled to basic pay or compensation
            under section 204 or 206 of this title; and
                ``(2) the member--
                        ``(A) was subject to hostile fire or explosion of
                    hostile mines;
                        ``(B) was on duty in an area in which the member
                    was in imminent danger of being exposed to hostile fire
                    or explosion of hostile mines and in which, during the
                    period the member was on duty in the area, other
                    members of the uniformed services were subject to
                    hostile fire or explosion of hostile mines;
                        ``(C) was killed, injured, or wounded by hostile
                    fire, explosion of a hostile mine, or any other hostile
                    action; or
                        ``(D) was on duty in a foreign area in which the
                    member was subject to the threat of physical harm or
                    imminent danger on the basis of civil insurrection,
                    civil war, terrorism, or wartime conditions.
        ``(b) Continuation During Hospitalization.--A member covered by
    subsection (a)(2)(C) who is hospitalized for the treatment of the
    injury or wound may be paid special pay under this section for not more
    than three additional months during which the member is so
    hospitalized.''.
        (b) Clerical Amendments.--Such section is further amended--
                (1) in subsection (c), as redesignated by subsection
            (a)(1), by inserting ``Limitations and Administration.--''
            before ``(1)''; and
                (2) in subsection (d), as redesignated by subsection
            (a)(1), by inserting ``Determinations of Fact.--'' before
            ``Any''.

    SEC. 617. EXPANSION OF OVERSEAS TOUR EXTENSION INCENTIVE PROGRAM TO
                  OFFICERS.

        (a) Special Pay or Bonus for Extending Overseas Tour of Duty.--(1)
    Subsections (a) and (b) of section 314 of title 37, United States Code,
    are amended by striking ``an enlisted member'' and inserting ``a
    member''.
        (2)(A) The heading of such section is amended to read as follows:
    ``Sec. 314. Special pay or bonus: qualified members extending duty at
                  designated locations overseas''.
        (B) The item relating to such section in the table of sections at
    the beginning of chapter 5 of such title is amended to read as follows:

    ``314. Special pay or bonus: qualified members extending duty at
                                designated locations overseas.''.
        (b) Rest and Recuperative Absence in Lieu of Pay or Bonus.--(1)
    Subsection (a) of section 705 of title 10, United States Code, is
    amended by striking ``an enlisted member'' and inserting ``a member''.
        (2) The heading of such section, and the item relating to such
    section in the table of sections at the beginning of chapter 40 of such
    title, are each amended by striking the sixth word.

    SEC. 618. ELIGIBILITY OF APPOINTED WARRANT OFFICERS FOR ACCESSION BONUS
                  FOR NEW OFFICERS IN CRITICAL SKILLS.

        Section 324 of title 37, United States Code, is amended in
    subsections (a) and (f)(1) by inserting ``or an appointment'' after
    ``commission''.

    SEC. 619. INCENTIVE PAY FOR DUTY ON GROUND IN ANTARCTICA OR ON ARCTIC
                  ICEPACK.

        (a) In General.--(1) Chapter 5 of title 37, United States Code, is
    amended by inserting after section 301e the following new section:
    ``Sec. 301f. Incentive pay: duty on ground in Antarctica or on Arctic
                  icepack
        ``(a) Availability of Incentive Pay.--A member of the uniformed
    services who performs duty at a location described in subsection (b) is
    entitled to special pay under this section at a rate of $5 for each day
    of that duty.
        ``(b) Covered Locations.--Subsection (a) applies with respect to
    duty performed on the ground in Antarctica or on the Arctic icepack.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 301e the
    following new item:

    ``301f. Incentive pay: duty on ground in Antarctica or on Arctic
                                icepack.''.
        (b) Effective Date.--Section 301f of title 37, United States Code,
    as added by subsection (a), shall take effect on October 1, 2003.

    SEC. 620. SPECIAL PAY FOR SERVICE AS MEMBER OF WEAPONS OF MASS
                  DESTRUCTION CIVIL SUPPORT TEAM.

        (a) In General.--(1) Chapter 5 of title 37, United States Code, is
    amended by inserting after section 305a the following new section:
    ``Sec. 305b. Special pay: service as member of Weapons of Mass
                  Destruction Civil Support Team
        ``(a) Availability of Special Pay.--The Secretary of a military
    department may pay special pay under this section to a member of the
    armed forces under the jurisdiction of that Secretary who is entitled
    to basic pay under section 204 and is assigned by orders to duty as a
    member of a Weapons of Mass Destruction Civil Support Team.
        ``(b) Monthly Rate.--Special pay payable under subsection (a) shall
    be paid at a rate equal to $150 a month.
        ``(c) Eligibility of Reserve Component Members When Performing
    Inactive Duty Training.--Under regulations prescribed by the Secretary
    concerned and to the extent provided for in appropriation Acts, when a
    member of a reserve component of the armed forces who is entitled to
    compensation under section 206 of this title performs duty under orders
    as a member of a Weapons of Mass Destruction Civil Support Team, the
    member may be paid an increase in compensation equal to \1/30\ of the
    monthly special pay specified in subsection (b) for each day on which
    the member performs such duty.
        ``(d) Definition.--In this section, the term `Weapons of Mass
    Destruction Civil Support Team' means a team of members of the reserve
    components of the armed forces that is established under section
    12310(c) of title 10 in support of emergency preparedness programs to
    prepare for or to respond to any emergency involving the use of a
    weapon of mass destruction.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 305a the
    following new item:

    ``305b. Special pay: service as member of Weapons of Mass Destruction
                                Civil Support Team.''.
        (b) Effective Date.--Section 305b of title 37, United States Code,
    as added by subsection (a), shall take effect on October 1, 2003.

    SEC. 621. INCENTIVE BONUS FOR AGREEMENT TO SERVE IN CRITICALLY SHORT
                  MILITARY OCCUPATIONAL SPECIALTY.

        (a) In General.--Chapter 5 of title 37, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 326. Incentive bonus: lateral conversion bonus for service in
                  critically short military occupational speciality
        ``(a) Incentive Bonus Authorized.--The Secretary concerned may pay
    a bonus under this section to a member of the armed forces who executes
    a written agreement to convert to, and serve for a period of not less
    than two years in, a critically short military occupational specialty.
        ``(b) Eligible Members.--A bonus may only be paid under this
    section only to a member who--
                ``(1) is entitled to basic pay; and
                ``(2) is serving in pay grade E-6 (with less than 10 years
            of service computed under section 205 of this title) or pay
            grade E-5 or below (regardless of years of service) at the time
            the agreement under subsection (a) is executed.
        ``(c) Amount and Payment of Bonus.--(1) A bonus under this section
    may not exceed $4,000.
        ``(2) A bonus payable under this section shall be disbursed in one
    lump sum payment when the member's conversion to the critically short
    military occupational specialty is approved by the personnel chief of
    the member's armed force.
        ``(d) Relationship to Other Pay and Allowances.--A bonus paid to a
    member under this section is in addition to any other pay and
    allowances to which the member is entitled.
        ``(e) Repayment of Bonus.--(1) A member who receives a bonus under
    this section and who, voluntarily or because of misconduct, fails to
    serve in the critically short military occupational specialty for the
    period specified in the agreement shall refund to the United States an
    amount that bears the same ratio to the bonus amount paid to the member
    as the unserved part of such period bears to the total period agreed to
    be served.
        ``(2) An obligation to reimburse the United States imposed under
    paragraph (1) is, for all purposes, a debt owed to the United States.
        ``(3) A discharge in bankruptcy under title 11 that is entered less
    than five years after the termination of the agreement for which a
    bonus was paid under this section shall not discharge the person
    signing such agreement from the debt arising under paragraph (1).
        ``(4) Under regulations prescribed pursuant to subsection (f), the
    Secretary concerned may waive, in whole in part, a refund required
    under paragraph (1) if the Secretary determines that recovery would be
    against equity and good conscience or would be contrary to the best
    interests of the United States.
        ``(f) Regulations.--The Secretaries concerned shall prescribe
    regulations to carry out this section. Regulations prescribed by the
    Secretary of a military department shall be subject to the approval of
    the Secretary of Defense.
        ``(g) Definition.--In this section, the term `critically short
    military occupational specialty' means a military occupational
    specialty, military rating, or other military speciality designated by
    the Secretary concerned as undermanned for purposes of this section.
        ``(h) Termination of Authority.--No agreement under this section
    may be entered into after December 31, 2004.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``326. Incentive bonus: lateral conversion bonus for service in
                                critically short military occupational
                                speciality.''.

    SEC. 622. INCREASE IN RATE FOR IMMINENT DANGER PAY AND FAMILY
                  SEPARATION ALLOWANCE RELATED TO SERVICE IN OPERATION
                  IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

        (a) Special Payment Rates.--Effective October 1, 2003, in the case
    of a member of the uniformed services who serves, for any period of
    time during a month, in a combat zone designated for Operation Iraqi
    Freedom or Operation Enduring Freedom, the monthly rate for imminent
    danger pay under section 310 of title 37, United States Code, shall be
    deemed to be $225 and the monthly rate for the family separation
    allowance under section 427 of such title shall be deemed to be $250.
        (b) Duration.--The special rates for imminent danger pay and the
    family separation allowance in effect under subsection (a) for an
    operation referred to in such subsection expire on the date the
    President terminates the operation.

    SEC. 623. AVAILABILITY OF HOSTILE FIRE AND IMMINENT DANGER PAY FOR
                  RESERVE COMPONENT MEMBERS SERVING IN RESPONSE TO CERTAIN
                  DOMESTIC TERRORIST ATTACKS.

        (a) Availability of Special Pay.--Subsection (a)(2) of section 310
    of title 37, United States Code, as amended by section 616 of this Act,
    is amended--
                (1) by striking ``or'' at the end of subparagraph (C);
                (2) by redesignating subparagraph (D) as subparagraph (E);
            and
                (3) by inserting after subparagraph (C) the following new
            subparagraph (D):
                ``(D) was on duty as a first responder, or as a member
            assigned to accompany or protect first responders, to a
            terrorist attack on the United States regarding which there is
            an immediate threat of physical harm or imminent danger as a
            result of direct or residual effects of the attack or potential
            secondary attacks; or''.
        (b) First Responder Defined.--Such section is further amended by
    adding at the end the following new subsection:
        ``(e) First Responder Defined.--In this section, the term `first
    responder' means a member of the uniformed services who, as part of the
    member's assigned duties, is expected to arrive at the site of a
    terrorist attack within 12 hours after the attack.''.

                Subtitle C--Travel and Transportation Allowances

    SEC. 631. SHIPMENT OF PRIVATELY OWNED MOTOR VEHICLE WITHIN CONTINENTAL
                  UNITED STATES.

        (a) Authority to Procure Contract for Transportation of Motor
    Vehicle.--Section 2634 of title 10, United States Code, is amended--
                (1) by redesignating subsection (h) as subsection (i); and
                (2) by inserting after subsection (g) the following new
            subsection (h):
        ``(h) In the case of a change of permanent station described in
    subparagraph (A) or (B) of subsection (i)(1), the Secretary concerned
    may authorize the member to arrange for the shipment of the motor
    vehicle in lieu of transportation at the expense of the United States
    under this section. The Secretary concerned may pay the member a
    monetary allowance in lieu of transportation, as established under
    section 404(d)(1) of title 37, and the member shall be responsible for
    any transportation costs in excess of such allowance.''.
        (b) Allowance for Self-Procurement of Transportation of Motor
    Vehicle.--Section 406(b)(1)(B) of title 37, United States Code, is
    amended by adding at the end the following new sentence: ``In the case
    of the transportation of a motor vehicle arranged by the member under
    section 2634(h) of title 10, the Secretary concerned may pay the
    member, upon proof of shipment, a monetary allowance in lieu of
    transportation, as established under section 404(d)(1) of this
    title.''.

    SEC. 632. PAYMENT OR REIMBURSEMENT OF STUDENT BAGGAGE STORAGE COSTS FOR
                  DEPENDENT CHILDREN OF MEMBERS STATIONED OVERSEAS.

        Section 430(b)(2) of title 37, United States Code, is amended in
    the first sentence by inserting before the period at the end the
    following: ``or during a different period in the same fiscal year
    selected by the member''.

    SEC. 633. REIMBURSEMENT FOR LODGING EXPENSES OF CERTAIN RESERVE
                  COMPONENT AND RETIRED MEMBERS DURING AUTHORIZED LEAVE
                  FROM TEMPORARY DUTY LOCATION.

        (a) Reimbursement Authorized.--The Secretary concerned (as defined
    in section 101 of title 37, United States Code) may reimburse a member
    of the Armed Forces described in subsection (b) for lodging expenses
    incurred by the member at the member's duty location while the member
    is in an authorized leave status.
        (b) Covered Members.--Subsection (a) applies with respect to a
    member of a reserve component who is called or ordered to active duty
    for a period of more than 30 days, or a retired member who is ordered
    to active duty under section 688(a) of title 10, United States Code, if
    the member--
                (1) immediately before taking authorized leave was
            performing duty at a location away from the member's home;
                (2) was receiving a per diem allowance under section
            404(a)(4) of title 37, United States Code, to cover lodging and
            subsistence expenses incurred at the duty location because
            quarters of the United States were not available for assignment
            to the member at that location; and
                (3) immediately after completing the authorized leave,
            returned to the duty location.
        (c) Amount of Reimbursement.--The amount of the reimbursement
    provided to a member under subsection (a) may not exceed the lesser
    of--
                (1) the actual daily cost of lodging incurred by the member
            at the duty location while the member was in an authorized
            leave status; and
                (2) the lodging portion of the applicable daily per diem
            rate for that duty location.
        (d) Retroactive Application.--This section applies with respect to
    members of the reserve components described in subsection (b) who,
    since September 11, 2001, were or are called or ordered to active duty
    for a period of more than 30 days and retired members described in such
    subsection who, since that date, were or are ordered to active duty
    under section 688(a) of title 10, United States Code.

                 Subtitle D--Retired Pay and Survivors Benefits

    SEC. 641. FUNDING FOR SPECIAL COMPENSATION AUTHORITIES FOR DEPARTMENT
                  OF DEFENSE RETIREES.

        (a) Source of Payments.--
                (1) Section 1413(g) of title 10, United States Code, is
            amended--
                        (A) by inserting before ``Payments under'' the
                    following new sentence: ``Payments under this section
                    for a member of the Army, Navy, Air Force, or Marine
                    Corps shall be paid from the Department of Defense
                    Military Retirement Fund.''; and
                        (B) by inserting ``for any other member'' before
                    ``for any fiscal year''.
                (2) Section 1413a(h) of such title is amended--
                        (A) by inserting before ``Payments under'' the
                    following new sentence: ``Payments under this section
                    for a member of the Army, Navy, Air Force, or Marine
                    Corps shall be paid from the Department of Defense
                    Military Retirement Fund.''; and
                        (B) by inserting ``for any other member'' before
                    ``for any fiscal year''.
        (b) Payment of Increased Retirement Trust Fund Costs Due to
    Concurrent Receipt or Enhanced Special Disability Compensation
    Payments.--
                (1) Section 1463(a)(1) of this title is amended by
            inserting before the semicolon the following: ``and payments
            under section 1413, 1413a, or 1414 of this title paid to such
            members''.
                (2) 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).''.
        (3) 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 1413, 1413a, or
                    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 1413, 1413a, or 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
            1413, 1413a, or 1414 of this title (whichever is in effect).
                ``(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
            1413, 1413a, or 1414 of this title (whichever is in effect).
    Such single level percentages shall be used for the purposes of
    subsection (b)(3).''.
        (4) 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 1413, 1413a, or 1414 of this
            title.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2003.

        Subtitle E--Commissary and Nonappropriated Fund Instrumentality
                                    Benefits

    SEC. 651. EXPANDED COMMISSARY ACCESS FOR SELECTED RESERVE MEMBERS,
                  RESERVE RETIREES UNDER AGE 60, AND THEIR DEPENDENTS.

        (a) Access to Military Commissaries.--Section 1065 of title 10,
    United States Code, is amended--
                (1) in subsections (a), (b), and (c), by inserting
            ``commissary stores and'' after ``use'' each place it appears;
            and
                (2) in subsection (d)--
                        (A) by inserting ``commissary stores and'' after
                    ``use'' the first and third places it appears; and
                        (B) by inserting ``stores and'' after ``use'' the
                    second and fourth places it appears.
        (b) Conforming Amendments; Transfer of Section.--Chapter 54 of such
    title is amended--
                (1) by striking sections 1063 and 1064;
                (2) in section 1063a(c)(2), by striking ``section 1065(e)''
            and inserting ``section 1063(e)'';
                (3) by redesignating section 1063a, as amended by paragraph
            (2), as section 1064;
                (4) by transferring section 1065, as amended by subsection
            (a), so as to appear after section 1062; and
                (5) by striking the heading of such section, as amended by
            subsection (a) and transferred by paragraph (4), and inserting
            the following new heading:
    ``Sec. 1063. Use of commissary stores and MWR retail facilities:
                  members of reserve components and reserve retirees under
                  age 60''.
        (c) Clerical Amendments.--The table of sections at the beginning of
    such chapter is amended by striking the items relating to sections
    1063, 1063a, 1064, and 1065 and inserting the following new items:

    ``1063. Use of commissary stores and MWR retail facilities: members of
                                reserve components and reserve retirees
                                under age 60.
    ``1064. Use of commissary stores and MWR retail facilities: members of
                                National Guard serving in federally
                                declared disaster or national emergency.''.

    SEC. 652. DEFENSE COMMISSARY SYSTEM AND EXCHANGE STORES SYSTEM.

        (a) Existence of Systems.--Chapter 147 of title 10, United States
    Code, is amended by inserting before section 2482 the following new
    section:
    ``Sec. 2481. Existence of defense commissary system and exchange stores
                  system
        ``(a) In General.--The Secretary of Defense shall operate a defense
    commissary system and an exchange stores system in the manner provided
    by this chapter and other provisions of law.
        ``(b) Separate Systems.--Except as authorized by section 2490a of
    this title, the defense commissary system and the exchange stores
    system shall be operated as separate systems of the Department of
    Defense.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting before the item relating to
    section 2482 the following new item:

    ``2481. Existence of defense commissary system and exchange stores
                                system.''.

    SEC. 653. LIMITATIONS ON PRIVATE OPERATION OF DEFENSE COMMISSARY STORE
                  FUNCTIONS.

        Section 2482(a) of title 10, United States Code, is amended--
                (1) by striking the first and second sentences and
            inserting the following: ``(1) Under such regulations as the
            Secretary of Defense may approve, private persons may operate
            selected commissary store functions, except that such functions
            may not include functions relating to the procurement of
            products to be sold in a commissary store or functions relating
            to the overall management of a commissary system or the
            management of a commissary store.''; and
                (2) by adding at the end the following new paragraph:
        ``(2) Any change to private operation of a commissary store
    function shall not take effect until the Secretary of Defense submits
    written notice of the proposed change to Congress and a period of 90
    days of continuous session of Congress expires following the date on
    which notice was received, determined as provided in section 2486(d)(2)
    of this title.''.

    SEC. 654. USE OF APPROPRIATED FUNDS TO OPERATE DEFENSE COMMISSARY
                  SYSTEM.

        (a) Requirement That Commissary Operating Expenses Be Paid From
    Appropriated Funds.--Section 2484 of title 10, United States Code, is
    amended--
                (1) in subsection (a), by striking ``may'' and inserting
            ``shall''; and
                (2) in subsection (b), by striking ``may'' in the first
            sentence and inserting ``shall''.
        (b) Supplemental Funds for Commissary Operations.--Such section is
    further amended by adding at the end the following new subsection:
        ``(c) Supplemental Funds for Commissary Operations.--Amounts
    appropriated to cover the expenses of operating the Defense Commissary
    Agency and the defense commissary system may be supplemented with
    additional funds from manufacturers' coupon redemption fees, handling
    fees for tobacco products, and other amounts received as reimbursement
    for other support activities provided by commissary activities.''.
        (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2003.

    SEC. 655. RECOVERY OF NONAPPROPRIATED FUND INSTRUMENTALITY AND
                  COMMISSARY STORE INVESTMENTS IN REAL PROPERTY AT MILITARY
                  INSTALLATIONS CLOSED OR REALIGNED.

        (a) 1988 Law.--Section 204(b)(7)(C)(i) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
    U.S.C. 2687 note) is amended in the second sentence by striking ``The
    Secretary may use amounts in the account (in such an aggregate amount
    as is provided in advance in appropriation Acts)'' and inserting
    ``Amounts in the account shall be available to the Secretary, without
    appropriation and until expended,''.
        (b) 1990 Law.--Section 2906(d)(3) 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 Secretary may use
    amounts in the account (in such an aggregate amount as is provided in
    advance in appropriation Acts)'' and inserting ``Amounts in the account
    shall be available to the Secretary, without appropriation and until
    expended,''.

    SEC. 656. COMMISSARY SHELF-STOCKING PILOT PROGRAM.

        (a) Pilot Program Authority.--Subject to subsection (c), the
    Secretary of Defense may conduct a pilot program under which the
    stocking of shelves at three defense commissary stores operated by the
    Defense Commissary Agency shall be the sole responsibility of Federal
    employees of the Agency or employees contracted by the agency.
        (b) Implementation Plan.--(1) 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 plan for the conduct
    of the pilot program. The plan shall be submitted not later than six
    months after the date of the enactment of this Act.
        (2) The plan shall include the following:
                (A) The financial structure of the pilot program and
            expected costs.
                (B) The Secretary's request to the Office of Personnel
            Management to conduct the pilot program as a Federal civilian
            personnel demonstration project under chapter 47 of title 5,
            United States Code, or a plan to provide otherwise a
            sufficiently flexible Federal civilian workforce for the pilot
            program through another authority.
                (C) Specification of the three sites for the conduct of the
            pilot program and the criteria used to select those sites.
                (D) Proposed duration of the pilot program and the expected
            timing for providing to Congress the results of the pilot
            program and recommendations of the Secretary.
                (E) Other observations and recommendations of the
            Secretary.
        (c) Implementation.--The Secretary of Defense may not begin to
    conduct the pilot program until a period of 30 days has elapsed after
    the date of the submission of the plan for the pilot program under
    subsection (b).

                           Subtitle F--Other Matters

    SEC. 661. REPEAL OF CONGRESSIONAL NOTIFICATION REQUIREMENT FOR
                  DESIGNATION OF CRITICAL MILITARY SKILLS FOR RETENTION
                  BONUS.

        Section 323(b) of title 37, United States Code, is amended--
                (1) by striking ``(1)''; and
                (2) by striking paragraph (2).

                       TITLE VII--HEALTH CARE PROVISIONS

    SEC. 701. REVISION OF DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE
                  HEALTH CARE FUND TO PERMIT MORE ACCURATE ACTUARIAL
                  VALUATIONS.

        Section 1115(c) of title 10, United States Code, is amended by
    adding at the end of paragraph (1) the following: ``In determining
    single level dollar amounts under subparagraphs (A) and (B) of this
    paragraph, the Secretary of Defense may determine a separate single
    level dollar amount under either or both subparagraphs for any
    participating uniformed service, if, in the judgment of the Secretary,
    such a determination would produce a more accurate and appropriate
    actuarial valuation for that uniformed service.''.

    SEC. 702. TRANSFER OF CERTAIN MEMBERS FROM PHARMACY AND THERAPEUTICS
                  COMMITTEE TO UNIFORM FORMULARY BENEFICIARY ADVISORY PANEL
                  UNDER THE PHARMACY BENEFITS PROGRAM.

        Section 1074g of title 10, United States Code, is amended--
                (1) in subsection (b)(1) in the second sentence, by
            striking ``facilities,'' and all that follows through the end
            of the sentence and inserting ``facilities and representatives
            of providers in facilities of the uniformed services.''; and
                (2) in subsection (c)(2)--
                        (A) by striking ``represent nongovernmental'' and
                    inserting the following: ``represent--
                ``(A) nongovernmental'';
                        (B) by striking the period at the end and inserting
                    a semicolon; and
                        (C) by adding at the end the following new
                    subparagraphs:
                ``(B) contractors responsible for the TRICARE retail
            pharmacy program;
                ``(C) contractors responsible for the national mail-order
            pharmacy program; and
                ``(D) TRICARE network providers.''.

    SEC. 703. PERMANENT EXTENSION OF AUTHORITY TO ENTER INTO PERSONAL
                  SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE
                  RESPONSIBILITIES AT LOCATIONS OTHER THAN MILITARY MEDICAL
                  TREATMENT FACILITIES.

        Section 1091(a)(2) of title 10, United States Code, is amended by
    striking ``The Secretary may not enter into a contract under this
    paragraph after December 31, 2003.''.

    SEC. 704. PLAN FOR PROVIDING HEALTH COVERAGE INFORMATION TO MEMBERS,
                  FORMER MEMBERS, AND DEPENDENTS ELIGIBLE FOR CERTAIN
                  HEALTH BENEFITS.

        (a) Health Information Plan Required.--The Secretary of Defense
    shall develop a plan to--
                (1) ensure that each household that includes one or more
            eligible persons is provided information concerning--
                        (A) the extent of health coverage provided by
                    sections 1079 or 1086 of title 10, United States Code,
                    for each such person;
                        (B) the costs, including the limits on such costs,
                    that each such person is required to pay for such
                    health coverage;
                        (C) sources of information for locating TRICARE-
                    authorized providers in the household's locality; and
                        (D) methods to obtain assistance in resolving
                    difficulties encountered with billing, payments,
                    eligibility, locating TRICARE-authorized providers,
                    collection actions, and such other issues as the
                    Secretary considers appropriate;
                (2) provide mechanisms to ensure that each eligible person
            has access to information identifying TRICARE-authorized
            providers in the person's locality who have agreed to accept
            new patients under section 1079 or 1086 of title 10, United
            States Code, and to ensure that such information is
            periodically updated;
                (3) provide mechanisms to ensure that each eligible person
            who requests assistance in locating a TRICARE-authorized
            provider is provided such assistance;
                (4) provide information and recruitment materials and
            programs aimed at attracting participation of health care
            providers as necessary to meet health care access requirements
            for all eligible persons; and
                (5) provide mechanisms to allow for the periodic
            identification by the Department of Defense of the number and
            locality of eligible persons who may intend to rely on TRICARE-
            authorized providers for health care services.
        (b) Implementation of Plan.--The Secretary of Defense shall
    implement the plan required by subsection (a) with respect to any
    contract entered into by the Department of Defense after May 31, 2003,
    for managed health care.
        (c) Definitions.--In this section:
                (1) The term ``eligible person'' means a person eligible
            for health benefits under section 1079 or 1086 of title 10,
            United States Code.
                (2) The term ``TRICARE-authorized provider'' means a
            facility, doctor, or other provider of health care services--
                        (A) that meets the licensing and credentialing
                    certification requirements in the State where the
                    services are rendered;
                        (B) that meets requirements under regulations
                    relating to TRICARE for the type of health care
                    services rendered; and
                        (C) that has accepted reimbursement by the
                    Secretary of Defense as payment for services rendered
                    during the 12-month period preceding the date of the
                    most recently updated provider information provided to
                    households under the plan required by subsection (a).
        (d) Submission of Plan.--Not later than March 31, 2004, the
    Secretary shall submit to the Committees on Armed Services of the
    Senate and House of Representatives the plan required by subsection
    (a), together with a schedule for implementation of the plan.

    SEC. 705. WORKING GROUP ON MILITARY HEALTH CARE FOR PERSONS RELIANT ON
                  HEALTH CARE FACILITIES AT MILITARY INSTALLATIONS TO BE
                  CLOSED OR REALIGNED.

        Section 722 of the National Defense Authorization Act for Fiscal
    Year 1993 (Public Law 102-484; 10 U.S.C. 1073 note) is amended by
    striking subsections (a), (b), (c), and (d) and inserting the following
    new subsections:
        ``(a) Establishment.--Not later than December 31, 2003, the
    Secretary of Defense shall establish a working group on the provision
    of military health care to persons who rely for health care on health
    care facilities located at military installations--
                ``(1) inside the United States that are selected for
            closure or realignment in the 2005 round of realignments and
            closures authorized by sections 2912, 2913, and 2914 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 title XXX of the National Defense Authorization Act
            for Fiscal Year 2002 (Public Law 107-107; 155 Stat. 1342); or
                ``(2) outside the United States that are selected for
            closure or realignment as a result of force posture changes.
        ``(b) Membership.--The members of the working group shall include,
    at a minimum, the following:
                ``(1) The Assistant Secretary of Defense of Health Affairs,
            or the designee of the Assistant Secretary.
                ``(2) The Surgeon General of the Army, or the designee of
            that Surgeon General.
                ``(3) The Surgeon General of the Navy, or the designee of
            that Surgeon General.
                ``(4) The Surgeon General of the Air Force, or the designee
            of that Surgeon General.
                ``(5) At least one independent member from each TRICARE
            region, but not to exceed a total of 12 members appointed under
            this paragraph, whose experience in matters within the
            responsibility of the working group qualify that person to
            represent persons authorized health care under chapter 55 of
            title 10, United States Code.
        ``(c) Duties.--(1) In developing the selection criteria and
    recommendations for the 2005 round of realignments and closures
    required by sections 2913 and 2914 of the Defense Base Closure and
    Realignment Act of 1990, the Secretary of Defense shall consult with
    the working group.
        ``(2) The working group shall be available to provide assistance to
    the Defense Base Closure and Realignment Commission.
        ``(3) In the case of each military installation referred to in
    paragraph (1) or (2) of subsection (a) whose closure or realignment
    will affect the accessibility to health care services for persons
    entitled to such services under chapter 55 of title 10, United States
    Code, the working group shall provide to the Secretary of Defense a
    plan for the provision of the health care services to such persons.
        ``(d) Special Considerations.--In carrying out its duties under
    subsection (c), the working group--
                ``(1) shall conduct meetings with persons entitled to
            health care services under chapter 55 of title 10, United
            States Code, or representatives of such persons;
                ``(2) may use reliable sampling techniques;
                ``(3) may visit the areas where closures or realignments of
            military installations will adversely affect the accessibility
            of health care for such persons and may conduct public
            meetings; and
                ``(4) shall ensure that members of the uniformed services
            on active duty, members and former members of the uniformed
            services entitled to retired or retainer pay, and dependents
            and survivors of such members and retired personnel are
            afforded the opportunity to express their views.''.

    SEC. 706. ACCELERATION OF IMPLEMENTATION OF CHIROPRACTIC HEALTH CARE
                  FOR MEMBERS ON ACTIVE DUTY.

        The Secretary of Defense shall accelerate the implementation of the
    plan required by section 702 of the Floyd D. Spence National Defense
    Authorization Act for Fiscal Year 2001 (Public Law 106-398) (relating
    to chiropractic health care services and benefits), with a goal of
    completing implementation of the plan by October 1, 2005.

    SEC. 707. MEDICAL AND DENTAL SCREENING FOR MEMBERS OF SELECTED RESERVE
                  UNITS ALERTED FOR MOBILIZATION.

        Section 1074a of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(f)(1) The Department of Defense may provide medical and dental
    screening and care to members of the Selected Reserve who are assigned
    to a unit that has been alerted that the unit will be mobilized for
    active duty in support of an operational mission or contingency
    operation, during a national emergency, or in a time of war.
        ``(2) The medical and dental screening and care that may be
    provided under this subsection is screening and care necessary to
    ensure that a member meets the medical and dental standards for
    required deployment.
        ``(3) The services provided under this subsection shall be provided
    to a member at no cost to the member and at any time after the unit to
    which the member is assigned is alerted or otherwise notified that the
    unit will be mobilized.''.

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

    Subtitle A--Amendments to General Contracting Authorities, Procedures,
                                and Limitations

    SEC. 801. EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE
                  PROJECTS.

        Section 845 of the National Defense Authorization Act for Fiscal
    Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note) is amended in
    subsection (g) by striking ``September 30, 2004'' and inserting
    ``September 30, 2008''.

    SEC. 802. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION REQUIREMENTS.

        Subsection (e) of section 2306 of title 10, United States Code, is
    amended--
                (1) by striking ``(A)'' and ``(B)'' and inserting ``(i)''
            and ``(ii)'', respectively;
                (2) by redesignating paragraphs (1) and (2) as
            subparagraphs (A) and (B), respectively;
                (3) by striking ``Each'' and inserting ``(1) Except as
            provided in paragraph (2), each''; and
                (4) by adding at the end the following new paragraph:
        ``(2) Paragraph (1) shall not apply to a prime contract with a
    contractor that maintains a purchasing system approved by the
    contracting officer for the contract.''.

     SEC. 803. ELIMINATION OF REQUIREMENT TO FURNISH WRITTEN ASSURANCES OF
                  TECHNICAL DATA CONFORMITY.

        Section 2320(b) of title 10, United States Code, is amended--
                (1) by striking paragraph (7); and
                (2) by redesignating paragraphs (8) and (9) as paragraphs
            (7) and (8), respectively.

    SEC. 804. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

        (a) In General.--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''.
        (b) Repeals.--(1) Subsection (g) of section 2306c of title 10,
    United States Code, is repealed.
        (2) Subsection (c) of section 811 of the Bob Stump National Defense
    Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat.
    2608) is repealed.

    SEC. 805. ADDITIONAL AUTHORITIES RELATING TO OBTAINING PERSONAL
                  SERVICES.

        (a) In General.--Section 129b of title 10, United States Code, is
    amended--
                (1) in subsection (a)(1), by striking ``in accordance with
            section 3109 of title 5''; and
                (2) by adding at the end the following new subsection:
        ``(d) Additional Authority.--(1) In addition to the authority
    provided under subsection (a), the Secretary of Defense may enter into
    personal services contracts with individuals, regardless of their
    nationality, outside of the United States.
        ``(2) The contracting officer for a personal services contract
    shall be responsible for ensuring that a personal services contract is
    the appropriate vehicle for carrying out the purpose of the
    contract.''.
        (b) Intelligence Components.--(1) Subchapter I of chapter 21 of
    title 10, United States Code, is amended by adding at the end the
    following new section:
    ``Sec. 426. Personal services contracts: authority and limitations
        ``(a) Personal Services.--(1) The Secretary of Defense may,
    notwithstanding section 3109 of title 5, enter into personal services
    contracts in the United States if the personal services directly
    support the mission of a defense intelligence component or counter-
    intelligence organization.
        ``(2) The contracting officer for a personal services contract
    shall be responsible for ensuring that a personal services contract is
    the appropriate vehicle for carrying out the purpose of the contract.
        ``(b) Definition.--In this section, the term `defense intelligence
    component' means a component of the Department of Defense that is an
    element of the intelligence community, as defined in section 3(4) of
    the National Security Act of 1947 (50 U.S.C. 401a(4)).''.
        (2) The table of sections at the beginning of such subchapter is
    amended by adding at the end the following new item:

    ``426. Personal services contracts: authority and limitations.''.
        (c) Special Operations Command.--Section 167 of title 10, United
    States Code, is amended by adding at the end the following new
    subsection:
        ``(l) Personal Services Contracts.--(1) The Secretary of Defense
    may, notwithstanding section 3109 of title 5, enter into personal
    services contracts in the United States if the personal services
    directly support the mission of the special operations command.
        ``(2) The contracting officer for a personal services contract
    shall be responsible for ensuring that a personal services contract is
    the appropriate vehicle for carrying out the purpose of the
    contract.''.

    SEC. 806. EVALUATION OF PROMPT PAYMENT PROVISIONS.

        (a) Evaluation Requirement.--The Secretary of Defense shall
    evaluate provisions of law and regulation relating to the prompt
    payment of amounts due contractors under contracts with the Department
    of Defense.
        (b) Matters Covered.--In carrying out such evaluation, the
    Secretary shall focus in particular on the implementation of prompt
    payment provisions with respect to small businesses, including--
                (1) an analysis of compliance by the Department of Defense
            with chapter 39 of title 31, United States Code, and
            regulations applicable to the Department of Defense under that
            chapter, with respect to small business contractors;
                (2) a determination of the number of Department of Defense
            contracts with small businesses that are not in compliance with
            prompt payment requirements; and
                (3) a determination of the average length of time that
            elapses between performance of work by small business
            contractors under Department of Defense contracts and payment
            for such work.

          Subtitle B--United States Defense Industrial Base Provisions

         Part I--Critical Items Identification and Domestic Production
                        Capabilities Improvement Program

    SEC. 811. ASSESSMENT OF UNITED STATES DEFENSE INDUSTRIAL BASE
                  CAPABILITIES.

        (a) Assessment Program.--The Secretary of Defense, in coordination
    with the Secretary of each military department, shall establish a
    program to assess the capabilities of the United States defense
    industrial base to produce military systems necessary to support
    national security requirements.
        (b) Designee.--The Secretary of each military department shall
    designate a position to be responsible for assisting in carrying out
    the program under subsection (a) with respect to the military
    department concerned. The person designated to serve in such position
    shall do the following:
                (1) Report to the Service Acquisition Executive of the
            military department concerned on defense industrial base
            matters affecting the acquisition and production of military
            systems.
                (2) Provide information to assist the Secretary of Defense
            in carrying out the Secretary's duties as a member of the
            National Defense Technology and Industrial Base Council (as
            established under section 2502 of title 10, United States
            Code).
                (3) Oversee the collection of data to assist the Secretary
            of Defense in carrying out subsection (c).
                (4) Oversee the process for identifying and determining
            critical items to assist the Secretary of Defense in carrying
            out section 812.
        (c) Collection of Data.--The Secretary of Defense shall collect
    data in support of the program. At a minimum, with respect to each
    procurement for a covered military system, the following information
    shall be collected:
                (1) With respect to the contractor awarded the contract:
                        (A) An identification of the critical item or items
                    included in the covered military system and whether the
                    item is of a domestic or foreign source.
                        (B) Whether the contractor is a foreign contractor,
                    and, if so--
                                (i) whether the contract was awarded on a
                            sole source basis because of the unavailability
                            of responsible offerors with United States
                            production capabilities; or
                                (ii) whether the contract was awarded after
                            receipt of offers from responsible offerors
                            with United States production capabilities.
                        (C) Whether the contractor is a United States
                    contractor, and, if the contractor plans to perform
                    work under the contract outside the United States, an
                    identification of the locations where the work
                    (including research, development, and manufacturing)
                    will be performed, an explanation of the business
                    rationale for why the decision was made to transfer the
                    work outside the United States, and a certification of
                    the specific percentage of the total contract to be
                    performed outside the United States.
                (2) With respect to the offerors submitting bids or
            proposals (other than the offeror awarded the contract):
                        (A) An identification of the critical item or items
                    included in the covered military system and whether the
                    item is of a domestic or foreign source.
                        (B) An identification of the domestic and foreign
                    offerors and the locations where the work (including
                    research, development, and manufacturing) was proposed
                    to be performed under the contract.
                        (C) A statement of whether there were no offerors
                    or whether there was only one offeror.
        (d) Confidentiality.--The Secretary of Defense shall make every
    effort to ensure that the information collected under this section from
    private sector entities remains confidential.
        (e) Assessment.--The Secretary of Defense shall prepare an
    assessment of the data compiled under this section during every two-
    year period and shall submit the results of the assessment to the
    Committees on Armed Services of the Senate and the House of
    Representatives, including the recommendations of the Secretary
    regarding how procurement from the United States defense industrial
    base can be maximized. The first such assessment shall cover the period
    of fiscal Year 2002 and fiscal Year 2003 and shall be submitted to the
    Committees no later than November 1, 2004.

    SEC. 812. IDENTIFICATION OF CRITICAL ITEMS: MILITARY SYSTEM BREAKOUT
                  LIST.

        (a) Identification Process.--The Secretary of Defense shall
    establish a process to identify, with respect to each military system--
                (1) the items and components within the military system;
                (2) the items and components within the military system
            that are essential, in accordance with subsection (c); and
                (3) the items and components within the military system
            that are critical, in accordance with subsection (d).
        (b) Military System Breakout List.--The Secretary of Defense shall
    produce a list, to be known as the ``military system breakout list'',
    consisting of the items and components identified under the process
    established under subsection (a).
        (c) Essential Items and Components.--For purposes of determining
    whether an item or component is essential, the Secretary shall include
    only an item or component that--
                (1) is essential for the proper functioning and performance
            of the military system of which the item or component is a
            part; or
                (2) involves a critical technology (as defined in section
            2500 of title 10, United States Code).
        (d) Critical Items or Components.--(1) For purposes of determining
    whether an item or component is critical, the Secretary shall include
    only an item or component that--
                (A) is essential, as determined under subsection (c); and
                (B) with respect to which there is a high barrier to entry
            for the production of the item or component.
        (2) For purposes of paragraph (1)(B), a high barrier to entry for
    the production of an item or component means that--
                (A) there would be a significant period of time required to
            reestablish United States production capabilities; and
                (B) the level of investment necessary to reestablish United
            States production capabilities that are able to meet surge and
            sustained production rates for wartime requirements is
            significant.
        (e) Report.--Not later than November 1 of each year, beginning with
    November 1, 2004, the Secretary of Defense shall submit to the
    Committees on Armed Services of the Senate and the House of
    Representatives a report on the implementation of this section. The
    report shall include the following:
                (1) A list of each military system covered by the process
            established under subsection (a).
                (2) A list of items and components determined to be
            essential.
                (3) A list of items and components determined to be
            critical.
                (4) A list of the items and components contained in the
            lists provided under paragraphs (2) and (3) that are
            manufactured or produced outside the United States.

    SEC. 813. PROCUREMENT OF CERTAIN CRITICAL ITEMS FROM AMERICAN SOURCES.

        (a) Requirement for Procurement of Certain Critical Items Produced
    in United States.--With respect to items that meet the criteria set
    forth in subsection (b), the Secretary of Defense may procure such
    items only if the items are entirely produced in the United States.
        (b) Criteria.--For purposes of subsection (a), an item meets the
    criteria of this subsection if--
                (1) it is a critical item; and
                (2) there are limited sources of production capability of
            the item in the United States.
        (c) Exception.--Subsection (a) does not apply to a procurement of
    an item when the Secretary of Defense determines in writing that the
    Department of Defense's need for the item is of such an unusual and
    compelling urgency that the United States would be seriously injured
    unless the Department is permitted to procure the item from sources
    outside the United States.
        (d) Applicability.--Subsection (a) shall apply to contracts for the
    procurement of covered military systems and subcontracts under such
    contracts.

    SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN CRITICAL
                  ITEMS USING DEFENSE INDUSTRIAL BASE CAPABILITIES FUND.

        (a) Establishment of Fund.--There is established in the Treasury of
    the United States a separate fund to be known as the Defense Industrial
    Base Capabilities Fund (hereafter in this section referred to as the
    ``Fund'').
        (b) Moneys in Fund.--There shall be credited to the Fund amounts
    appropriated to it.
        (c) Authorization of Appropriations.--There is authorized to be
    appropriated to the Fund $100,000,000 for fiscal year 2004.
        (d) Use of Fund.--The Secretary of Defense is authorized to use all
    amounts in the Fund, subject to appropriation, for the purposes of
    establishing capabilities within the United States to produce critical
    items that meet any of the following criteria:
                (1) The item is available only from foreign contractors.
                (2) The item is available only from a limited number of
            United States contractors.
        (e) Limitation on Use of Fund.--Before the obligation of any
    amounts in the Fund, the Secretary of Defense shall submit to Congress
    a report describing the Secretary's plans for implementing the Fund
    established in subsection (a), including the priorities for the
    obligation of amounts in the Fund, the criteria for determining the
    recipients of such amounts, and the mechanisms through which such
    amounts may be provided to the recipients.
        (f) Availability of Funds.--Amounts in the Fund shall remain
    available until expended.
        (g) Fund Manager.--The Secretary of Defense shall designate a Fund
    manager. The duties of the Fund manager shall include--
                (1) ensuring the visibility and accountability of
            transactions engaged in through the Fund; and
                (2) reporting to Congress each year regarding activities of
            the Fund during the previous fiscal year.

                Part II--Requirements Relating to Specific Items

    SEC. 821. DOMESTIC SOURCE LIMITATION AMENDMENTS.

        (a) Additional Items.--Section 2534(a) of title 10, United States
    Code, is amended by adding at the end of the following new paragraphs:
                ``(6) Fuzes used for ordnance.
                ``(7) Microwave power tubes or traveling wave tubes.
                ``(8) PAN carbon fiber.
                ``(9) Aircraft tires.
                ``(10) Ground vehicle tires.
                ``(11) Tank track assemblies.
                ``(12) Tank track components.
                ``(13) Pre-formed retort packaging in direct contact with
            main entree meals within meals ready-to-eat listed in Federal
            Supply Class 8970.''.
        (b) Amendment of National Technology and Industrial Base.--
    Paragraph (1) of section 2500 of title 10, United States Code, is
    amended--
                (1) by striking all that follows after ``States'' to the
            end of the paragraph and inserting a period; and
                (2) by striking ``production, or maintenance'' and
            inserting ``production, and maintenance''.
        (c) Amendment of Waiver Authority.--Section 2534(d) of title 10,
    United States Code, is amended--
                (1) in the text before paragraph (1), by inserting ``in
            writing'' after ``determines'';
                (2) by striking paragraphs (1), (2), (3), (6), (7), and
            (8);
                (3) by redesignating paragraphs (4) and (5) as paragraphs
            (2) and (3), respectively, and in such paragraph (3), as so
            redesignated, by adding at the end the following: ``This
            exception shall not apply to items determined to be critical by
            the Secretary of Defense under section 812 of the National
            Defense Authorization Act for Fiscal Year 2004.''; and
                (4) by inserting before paragraph (2), as so redesignated,
            the following new paragraph (1):
                ``(1) The Department of Defense's need for the item is of
            such an unusual and compelling urgency that the United States
            would be seriously injured unless the Department is permitted
            to procure the item from sources outside the United States.''.

    SEC. 822. REQUIREMENTS RELATING TO BUYING COMMERCIAL ITEMS CONTAINING
                  SPECIALTY METALS FROM AMERICAN SOURCES.

        (a) Specialty Metals and Other Industrial Base Protection
    Measures.--(1) Subsection (b) of section 2533a of title 10, United
    States Code, is amended--
                (A) in paragraph (1)(B), by inserting before the semicolon
            the following: ``and the materials and components thereof'';
            and
                (B) in paragraph (2), by inserting before the period the
            following: `` and any specialty metal that may be part of
            another item''.
        (2) Subsection (c) of such section is amended--
                (A) by striking ``or the Secretary of the military
            department concerned''; and
                (B) by adding at the end the following: ``For each such
            determination, the Secretary of Defense shall notify Congress
            in writing of the factors supporting the determination.''.
        (3) Section 2533a of such title is amended by adding at the end the
    following new subsection:
        ``(l) Authority Not Delegable.--The Secretary may not delegate any
    authority under this section to anyone other than the Under Secretary
    of Defense for Acquisition, Technology, and Logistics.''.
        (b) Exception to Berry Amendment for Commercial Items Containing
    Specialty Metals.--Section 2533a of title 10, United States Code, is
    amended--
                (1) by redesignating subsections (i) and (j) as subsections
            (j) and (k), respectively; and
                (2) by inserting after subsection (h) the following new
            subsection:
        ``(i) Exception for Commercial Items Containing Specialty Metals.--
                ``(1) In General.--Subsection (a) does not apply to the
            procurement of a commercial item containing specialty metals
            if--
                        ``(A) the contractor agrees to comply with the
                    requirement set forth in paragraph (2); or
                        ``(B) the Secretary of Defense determines in
                    writing that the Department of Defense's need for the
                    commercial item containing specialty metal is of such
                    an unusual and compelling urgency that the United
                    States would be seriously injured unless the Department
                    is permitted to procure the item containing specialty
                    metal from outside the United States.
                ``(2) Requirement to purchase equivalent amount of domestic
            metal.--For purposes of paragraph (1)(A), the requirement set
            forth in this paragraph is that the contractor for each
            contract entered into by the Secretary for the procurement of a
            commercial item containing specialty metal agrees to purchase,
            over the 18-month period beginning on the date of award of the
            contract, an amount of specialty metal that is--
                        ``(A) produced, including such functions as melting
                    and smelting, in the United States; and
                        ``(B) equivalent to--
                                ``(i) the amount of specialty metal
                            (measured by factors including volume, type,
                            and grade) purchased to carry out the work
                            under the contract (including the work under
                            each subcontract at any tier under the
                            contract); plus
                                ``(ii) 10 percent of the amount referred to
                            in clause (i).
                ``(3) Relationship to other exceptions.--The exceptions
            under subsections (c), (d), and (h) of this section shall not
            apply to the procurement of a commercial item containing
            specialty metals.
                ``(4) Notice to congress.--The Secretary of Defense shall
            not enter into a contract to procure a commercial item
            containing specialty metal pursuant to the exception in
            subsection (a) until Congress is notified that the Secretary
            has applied the exception and a period of 15 days has expired
            after such notification is made.
                ``(5) Notice to industry.--The Secretary of Defense shall
            publish a notice in the Federal Register on the method that the
            Department of Defense will use to measure an equivalent amount
            of specialty metal for purposes of this subsection. Such a
            method shall consider factors such as volume, type, and grade
            of specialty metal that otherwise would be produced from United
            States sources.''.
        (c) Removal of Specialty Metal From Subsection (e) Exception.--
    Subsection (e) of such section is amended--
                (1) in the heading, by striking ``Specialty Metals and'';
            and
                (2) by striking ``specialty metals or''.
        (d) Conforming Amendment.--Subsection (a) of section 2533a of such
    title is amended by striking ``through (h)'' and inserting ``through
    (i)''.
        (e) Effective Date.--Section 2533a(i) of title 10, United States
    Code, as added by subsection (a), shall apply to each contract for the
    procurement of a commercial item containing specialty metal entered
    into before, on, or after the date of the enactment of this Act.

    SEC. 823. ELIMINATION OF UNRELIABLE SOURCES OF DEFENSE ITEMS AND
                  COMPONENTS.

        (a) Identification of Certain Countries.--The Secretary of Defense
    shall identify foreign countries that, by law, policy, or regulation,
    restricted the provision or sale of military goods or services to the
    United States because of United States policy toward, or military
    operations in, Iraq since September 12, 2002.
        (b) Prohibition on Procurement of Certain Items From Identified
    Countries.--The Secretary of Defense may not procure any items or
    components contained in military systems if the items or components, or
    the systems, are manufactured in any foreign country identified under
    subsection (a).
        (c) Waiver Authority.--The Secretary of Defense may waive the
    limitation in subsection (b) if the Secretary determines in writing and
    notifies Congress that the Department of Defense's need for the item is
    of such an unusual and compelling urgency that the United States would
    be seriously injured unless the Department is permitted to procure the
    item from the sources identified in subsection (a).
        (d) Effective Date.--(1) Subject to paragraph (2), subsection (b)
    applies to contracts in existence on the date of the enactment of this
    Act or entered into after such date.
        (2) With respect to contracts in existence on the date of the
    enactment of this Act, the Secretary of Defense shall take such action
    as is necessary to ensure that such contracts are in compliance with
    subsection (b) not later than 24 months after such date.

    SEC. 824. CONGRESSIONAL NOTIFICATION REQUIRED BEFORE EXERCISING
                  EXCEPTION TO REQUIREMENT TO BUY SPECIALTY METALS FROM
                  AMERICAN SOURCES.

        Section 2533a(c) of title 10, United States Code, is amended by
    adding at the end the following new sentence: ``The Secretary of
    Defense or the Secretary of the military department concerned may not
    procure specialty metals pursuant to the exception authorized by this
    subsection until the Secretary submits to Congress and publishes in the
    Federal Register notice of the determination made under this subsection
    and a period of 15 days expires after the date such notification is
    submitted.''.

    SEC. 825. REPEAL OF AUTHORITY FOR FOREIGN PROCUREMENT OF PARA-ARAMID
                  FIBERS AND YARNS.

        Section 807 of the Strom Thurmond National Defense Authorization
    Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2084) is
    repealed.

    SEC. 826. REQUIREMENT FOR MAJOR DEFENSE ACQUISITION PROGRAMS TO USE
                  MACHINE TOOLS ENTIRELY PRODUCED WITHIN THE UNITED STATES.

        (a) In General.--(1) Chapter 144 of title 10, United States Code,
    is amended by inserting after section 2435 the following new section:
    ``Sec. 2436. Major defense acquisition programs: requirement for
                  certain items to be entirely produced in United States
        ``The Secretary of Defense shall require that, for any procurement
    of a major defense acquisition program--
                ``(1) the contractor for the procurement shall use only
            machine tools entirely produced within the United States to
            carry out the contract; and
                ``(2) any subcontractor under the contract shall comply
            with paragraph (1) in the case of any contract in an amount
            that is $5,000,000 or greater.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2435 the
    following new item:

    ``2436. Major defense acquisition programs: requirement for certain
                                items to be entirely produced in United
                                States.''.
        (b) Effective Date.--Section 2436 of title 10, United States Code,
    as added by subsection (a), shall apply with respect to contracts
    entered into after the date occurring four years after the date of the
    enactment of this Act.

    SEC. 827. DATA COLLECTION AND TECHNICAL ASSISTANCE CENTER RELATING TO
                  MACHINE TOOLS.

        (a) Collection of Data on Contracts Using Machine Tools.--The
    Secretary of Defense shall collect data in order to identify all
    contractors and subcontractors that use machine tools in carrying out
    any defense contract in an amount that is $5,000,000 or greater.
        (b) Technical Assistance Center.--The Secretary of Defense shall
    establish a center to provide technical assistance to machine tool
    companies in the United States, and entities that use machine tools, to
    seek guidance with respect to government contracting regulations,
    including compliance procedures, and opportunities for contracting with
    the Department of Defense. As part of the assistance provided through
    the center, the Secretary may provide information about defense
    contracts that are expected to be carried out through the use of
    machine tools.
        (c) Definition.--In this section the term ``machine tools''
    includes machine tools in the North American Industry Classification
    System (NAICS) codes 333511, 333512, 333513, 333514, and 333515.

    SEC. 828. BUY AMERICAN ENHANCEMENT.

        Section 2533 of title 10, 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):
        ``(b) In determining under section 2 of the Buy American Act (41
    U.S.C. 10a et seq.) whether application of such Act is inconsistent
    with the public interest, the Secretary of Defense shall not consider
    the provisions of any trade agreement between the United States and a
    foreign country that is in effect at the time of the determination.''.

    SEC. 829. REQUIREMENT RELATING TO PURCHASES BY DEPARTMENT OF DEFENSE
                  SUBJECT TO BUY AMERICAN ACT.

        In applying section 2 of the Buy American Act (41 U.S.C. 10a) to
    acquisitions by the Department of Defense, the term ``substantially
    all'' shall mean at least 65 percent.

                          Part III--General Provisions

    SEC. 831. DEFINITIONS.

        In this subtitle:
                (1) Covered military system.--The term ``covered military
            system'' means a military system that includes one or more
            critical items.
                (2) Military system.--The term ``military system'' means a
            military system necessary to support national security
            requirements, as determined by the Secretary of Defense, and
            which costs more than $25,000. At a minimum, the term includes
            the following:
                        (A) Weapons listed in Federal Supply Group 10.
                        (B) Nuclear ordnance listed in Federal Supply Group
                    11.
                        (C) Fire control equipment listed in Federal Supply
                    Group 12.
                        (D) Ammunition and explosives listed in Federal
                    Supply Group 13.
                        (E) Guided missiles listed in Federal Supply Group
                    14.
                        (F) Aircraft and related components, accessories,
                    and equipment listed in Federal Supply Groups 15, 16,
                    and 17.
                        (G) Space vehicles listed in Federal Supply Group
                    18.
                        (H) Ships, small craft, pontoons, and floating
                    docks listed in Federal Supply Group 19.
                        (I) Ship and marine equipment listed in Federal
                    Supply Group 20.
                        (J) Tracked combat vehicles listed in Federal
                    Supply Class 2350.
                        (K) Engines, turbines, and components listed in
                    Federal Supply Group 28.
                (3) Critical item.--The term ``critical item'' means an
            item or component determined to be critical by the Secretary of
            Defense under section 812.
                (4) Item.--The term ``item'' means an end item.
                (5) Component.--The term ``component'' means an article,
            material, or supply incorporated into an end item. The term
            includes software and subassemblies.
                (6) Foreign contractor.--The term ``foreign contractor''
            means a contractor or subcontractor organized or existing under
            the laws of a country other than the United States.
                (7) United states contractor.--The term ``United States
            contractor'' means a contractor or subcontractor organized or
            existing under the laws of the United States.
                (8) United states production capabilities.--The term
            ``United States production capabilities'' means, with respect
            to an item or component, facilities located in the United
            States to design, develop, or manufacture the item or
            component.

                            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. REDESIGNATION OF NATIONAL IMAGERY AND MAPPING AGENCY AS
                  NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY.

        (a) Redesignation.--The National Imagery and Mapping Agency of the
    Department of Defense is hereby redesignated as the National
    Geospatial-Intelligence Agency.
        (b) Definition of Geospatial Intelligence.--Section 467 of title
    10, United States Code, is amended by adding at the end the following
    new paragraph:
                ``(5) The term `geospatial intelligence' means the
            exploitation and analysis of imagery and geospatial information
            to describe, assess, and visually depict physical features and
            geographically referenced activities on the earth. Geospatial
            intelligence consists of imagery, imagery intelligence, and
            geospatial information.''.
        (c) Agency Missions.--(1) Section 442(a) of title 10, United States
    Code, is amended--
                (A) in paragraph (1), by inserting ``geospatial
            intelligence consisting of'' after ``provide''; and
                (B) in paragraph (2), by striking ``Imagery, intelligency,
            and information'' and inserting ``Geospatial intelligence''.
        (2) Section 110(a) of the National Security Act of 1947 (50 U.S.C.
    404e(a)) is amended by striking ``imagery'' and inserting ``geospatial
    intelligence''.
        (d) Conforming Amendments to Title 10, United States Code.--Title
    10, United States Code, is amended as follows:
                (1) The heading of chapter 22 is amended to read as
            follows:

            ``CHAPTER 22--NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY''.

                (2) Chapter 22 is amended--
                        (A) by striking ``National Imagery and Mapping
                    Agency'' each place it appears and inserting ``National
                    Geospatial-Intelligence Agency''; and
                        (B) in section 453(b), by striking ``NIMA'' in
                    paragraphs (1) and (2) and inserting ``NGA''.
                (3) Section 193 is amended--
                        (A) by striking ``National Imagery and Mapping
                    Agency'' in subsections (d)(1), (d)(2), (e), and (f)(4)
                    and inserting ``National Geospatial-Intelligence
                    Agency'';
                        (B) in the heading for subsection (d), by striking
                    ``National Imagery and Mapping Agency'' and inserting
                    ``National Geospatial-Intelligence Agency''; and
                        (C) in the heading for subsection (e), by striking
                    ``NIMA'' and inserting ``NGA''.
                (4) Section 201 is amended by striking ``National Imagery
            and Mapping Agency'' in subsections (b)(2)(C) and (c)(2)(C) and
            inserting ``National Geospatial-Intelligence Agency''.
                (5)(A) Section 424 is amended by striking ``National
            Imagery and Mapping Agency'' in subsection (b)(3) and inserting
            ``National Geospatial-Intelligence Agency''.
                (B)(i) The heading of such section is amended to read as
            follows:
    ``Sec. 424. Disclosure of organizational and personnel information:
                  exemption for specified intelligence agencies''.
                (ii) The item relating to that section in the table of
            sections at the beginning of subchapter I of chapter 21 is
            amended to read as follows:

    ``424. Disclosure of organizational and personnel information:
                                exemption for specified intelligence
                                agencies.''.
                (6) Section 425(a) is amended by adding at the end the
            following new paragraph:
                ``(5) The words `National Geospatial-Intelligence Agency',
            the initials 'NGA,' or the seal of the National Geospatial-
            Intelligence Agency.''.
                (7) Section 1614(2)(C) is amended by striking ``National
            Imagery and Mapping Agency'' and inserting ``National
            Geospatial-Intelligence Agency''.
                (8) The tables of chapters at the beginning of subtitle A,
            and at the beginning of part I of subtitle A, are each amended
            by striking ``Imagery and Mapping'' in the item relating to
            chapter 22 and inserting ``Geospatial-Intelligence''.
        (e) Conforming Amendments to National Security Act of 1947.--The
    National Security Act of 1947 is amended as follows:
                (1) Section 3 (50 U.S.C. 401a) is amended by striking
            ``National Imagery and Mapping Agency'' in paragraph (4)(E) and
            inserting ``National Geospatial- Intelligence Agency''.
                (2) Section 105 (50 U.S.C. 403-5) is amended by striking
            ``National Imagery and Mapping Agency'' in subsections (b)(2)
            and (d)(3) and inserting ``National Geospatial-Intelligence
            Agency''.
                (3) Section 105A (50 U.S.C. 403-5a) is amended by striking
            ``National Imagery and Mapping Agency'' in subsection (b)(1)(C)
            and inserting ``National Geospatial-Intelligence Agency''.
                (4) Section 105C (50 U.S.C. 403-5c) is amended--
                        (A) by striking ``National Imagery and Mapping
                    Agency'' each place it appears and inserting ``National
                    Geospatial-Intelligence Agency'';
                        (B) by striking ``NIMA'' each place it appears and
                    inserting ``NGA''; and
                        (C) by striking ``national imagery and mapping
                    agency'' in the section heading and inserting
                    ``national geospatial-intelligence agency''.
                (5) Section 106 (50 U.S.C. 403-6) is amended by striking
            ``National Imagery and Mapping Agency'' in subsection (a)(2)(C)
            and inserting ``National Geospatial-Intelligence Agency''.
                (6) Section 110 (50 U.S.C. 404e) is amended--
                        (A) by striking ``National Imagery and Mapping
                    Agency'' in subsections (a), (b), and (c) and inserting
                    ``National Geospatial-Intelligence Agency''; and
                        (B) by striking ``national imagery and mapping
                    agency'' in the section heading and inserting
                    ``national geospatial-intelligence agency''.
                (7) The table of contents in the first section is amended--
                        (A) by striking the item relating to section 105C
                    and inserting the following:

    ``Sec. 105C. Protection of operational files of National Geospatial-
                                Intelligence Agency.'';
                    and
                        (B) by striking the item relating to section 110
                    and inserting the following:

    ``Sec. 110. National mission of National Geospatial-Intelligence
                                Agency.''.
        (f) Cross Reference Correction.--Section 442(d) of title 10, United
    States Code, is by striking ``section 120(a) of the National Security
    Act of 1947'' and inserting ``section 110(a) of the National Security
    Act of 1947 (50 U.S.C. 404e(a))''.
        (g) References.--Any reference to the National Imagery and Mapping
    Agency in any law, regulation, map, document, record, or other paper of
    the United States shall be considered to be a reference to the National
    Geospatial-Intelligence Agency.

    SEC. 903. PILOT PROGRAM FOR PROVISION OF SPACE SURVEILLANCE NETWORK
                  SERVICES TO NON-UNITED STATES GOVERNMENTAL ENTITIES.

        (a) In General.--Chapter 135 of title 10, United States Code, is
    amended by adding at the end the following new section:
    ``Sec. 2272. Space surveillance network: pilot program for provision of
                  satellite tracking support to entities outside United
                  States Government
        ``(a) Pilot Program.--The Secretary of Defense may carry out a
    pilot program to determine the feasibility and desirability of
    providing to non-United States Governmental entities space surveillance
    data support described in subsection (b).
        ``(b) Space Surveillance Data Support.--Under such a pilot program,
    the Secretary may provide to a non-United States Governmental entity,
    subject to an agreement described in subsection (c), the following:
                ``(1) Satellite tracking services from assets owned or
            controlled by the Department of Defense, but only if the
            Secretary determines, in the case of any such agreement, that
            providing such services to that entity is in the national
            security interests of the United States.
                ``(2) Space surveillance data and the analysis of space
            surveillance data, but only if the Secretary determines, in the
            case of any such agreement, that providing such data and
            analysis to that entity is in the national security interests
            of the United States.
        ``(c) Required Agreement.--The Secretary may not provide space
    surveillance data support to a non-United States Governmental entity
    under the pilot program unless that entity enters into an agreement
    with the Secretary under which the entity--
                ``(1) agrees to pay an amount that may be charged by the
            Secretary under subsection (f); and
                ``(2) agrees not to transfer any data or technical
            information received under the agreement, including the
            analysis of tracking data, to any other entity without the
            Secretary's express approval.
        ``(d) Requirements With Respect to Foreign Transactions.--(1) The
    Secretary may enter into an agreement under subsection (c) to provide
    space surveillance data support to a foreign government or other
    foreign entity only with the concurrence of the Secretary of State.
        ``(2) In the case of such an agreement that is entered into with a
    foreign government or other foreign entity, the Secretary of Defense
    may provide approval under subsection (c)(2) for a transfer of data or
    technical information only with the concurrence of the Secretary of
    State.
        ``(e) Prohibition Concerning Provision of Intelligence Assets or
    Data.--Nothing in this section shall be considered to authorize the
    provision of services or information concerning, or derived from,
    United States intelligence assets or data.
        ``(f) Charges.--As a condition of an agreement under subsection
    (c), the Secretary of Defense may require the non-United States
    Governmental entity entering into the agreement to pay to the
    Department of Defense such amounts as the Secretary determines to be
    necessary to reimburse the Department of Defense for the costs to the
    Department of providing space surveillance data support under the
    agreement.
        ``(g) Crediting of Funds Received.--Funds received pursuant to an
    agreement under this section shall be credited to accounts of the
    Department of Defense that are current when the proceeds are received
    and that are available for the same purposes as the accounts originally
    charged to perform the services. Funds so credited shall merge with and
    become available for obligation for the same period as the accounts to
    which they are credited.
        ``(h) Procedures.--The Secretary shall establish procedures for the
    conduct of the pilot program. As part of those procedures, the
    Secretary may allow space surveillance data and analytical support to
    be provided through a contractor of the Department of Defense.
        ``(i) Duration of Pilot Program.--The pilot program under this
    section shall be conducted during the three-year period beginning on a
    date specified by the Secretary of Defense, which date shall be not
    later than 180 days after the date of the enactment of this section.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by adding at the end the following new item:

    ``2272. Space surveillance network: pilot program for provision of
                                satellite tracking services and data to
                                entities outside United States
                                Government.''.

    SEC. 904. CLARIFICATION OF RESPONSIBILITY OF MILITARY DEPARTMENTS TO
                  SUPPORT COMBATANT COMMANDS.

        Sections 3013(c)(4), 5013(c)(4), and 8013(c)(4) of title 10, United
    States Code, are each amended by striking ``(to the maximum extent
    practicable)''.

    SEC. 905. BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY BY CHAIRMAN OF
                  THE JOINT CHIEFS OF STAFF.

        (a) Biennial Review.--Section 153 of title 10, United States Code,
    by adding at the end the following new subsection:
        ``(d) Biennial Review of National Military Strategy.--(1) Not later
    then February 15 of each even-numbered year, the Chairman shall submit
    to the Committee on Armed Services of the Senate and the Committee on
    Armed Services of the House of Representatives a report containing the
    results of a comprehensive examination of the national military
    strategy. Each such examination shall be conducted by the Chairman in
    conjunction with the other members of the Joint Chiefs of Staff and the
    commanders of the unified and specified commands.
        ``(2) Each report on the examination of the national military
    strategy under paragraph (1) shall include the following:
                ``(A) Delineation of a national military strategy
            consistent with the most recent National Security Strategy
            prescribed by the President pursuant to section 108 of the
            National Security Act of 1947 (50 U.S.C. 404a) and the most
            recent Quadrennial Defense Review prescribed by the Secretary
            of Defense pursuant to section 118 of this title.
                ``(B) A description of the strategic environment and the
            opportunities and challenges that affect United States national
            interests and United States national security.
                ``(C) A description of the regional threats to United
            States national interests and United States national security.
                ``(D) A description of the international threats posed by
            terrorism, weapons of mass destruction, and asymmetric
            challenges to United States national security.
                ``(E) Identification of United States national military
            objectives and the relationship of those objectives to the
            strategic environment, regional, and international threats.
                ``(F) Identification of the strategy, underlying concepts,
            and component elements that contribute to the achievement of
            United States national military objectives.
                ``(G) Assessment of the capabilities and adequacy of United
            States forces (including both active and reserve components) to
            successfully execute the national military strategy.
                ``(H) Assessment of the capabilities, adequacy, and
            interoperability of regional allies of the United States and or
            other friendly nations to support United States forces in
            combat operations and other operations for extended periods of
            time.
                ``(I) Assessment of the resources, basing requirements, and
            support structure needed to provide the capabilities necessary
            to be assured United States forces can successfully achieve
            national military objectives and to assess what resources and
            support might be required to sustain allies or friendly nation
            forces during combat operations.
        ``(3)(A) As part of the assessment under this subsection, the
    Chairman, in conjunction with the other members of the Joint Chiefs of
    Staff and the commanders of the unified and specified commands, shall
    undertake an assessment of the nature and magnitude of the strategic
    and military risks associated with successfully executing the missions
    called for under the current National Military Strategy.
        ``(B) In preparing the assessment of risk, the Chairman should
    assume the existence of those threats described in subparagraphs (C)
    and (D) of paragraph (2) and should assess the risk associated with two
    regional threats occurring nearly simultaneously.
        ``(C) In addition to the assumptions to be made under subparagraph
    (B), the Chairman should make other assumptions pertaining to the
    readiness of United States forces (in both the active and reserve
    components), the length of conflict and the level of intensity of
    combat operations, and the levels of support from allies and other
    friendly nations.
        ``(4) Before submitting a report under this subsection to the
    Committees on Armed Services of the Senate and House of
    Representatives, the Chairman shall provide the report to the Secretary
    of Defense. The Secretary's assessment and comments thereon (if any)
    shall be included with the report. If the Chairman's assessment in such
    report in any year is that the risk associated with executing the
    missions called for under the National Military Strategy is
    significant, the Secretary shall include with the report as submitted
    to those committees the Secretary's plan for mitigating the risk.''.
        (b) Conforming Amendment.--Subsection (b)(1) of such section is
    amended by striking ``each year'' and inserting ``of each odd-numbered
    year''.

    SEC. 906. AUTHORITY FOR ACCEPTANCE BY ASIA-PACIFIC CENTER FOR SECURITY
                  STUDIES OF GIFTS AND DONATIONS FROM NONFOREIGN SOURCES.

        (a) Authority.--Subsection (a) of section 2611 of title 10, United
    States Code, is amended--
                (1) by striking ``Foreign'' in the subsection caption;
                (2) by striking ``foreign'' in paragraph (1) after
            ``Center,''; and
                (3) by adding at the end of paragraph (1) the following
            sentence: ``Such gifts and donations may be accepted from any
            agency of the United States, any State or local government, any
            foreign government, any foundation or other charitable
            organization (including any that is organized or operates under
            the laws of a foreign country), or any other private source in
            the United States or a foreign country.''.
        (b) Conforming Amendments.--Such section is further amended--
                (1) by striking ``foreign'' in subsection (c); and
                (2) in subsection (f)--
                        (A) by striking ``Foreign'' in the subsection
                    caption;
                        (B) by striking ``foreign'' after ``section, a'';
                    and
                        (C) by striking ``from a foreign'' and all that
                    follows through ``country.'' and inserting a period.
        (c) Clerical Amendments.-- The heading of such section, and the
    item relating to such section in the table of sections at the beginning
    of chapter 155 of such title, are each amended by striking the third
    word after the colon.

    SEC. 907. REPEAL OF ROTATING CHAIRMANSHIP OF ECONOMIC ADJUSTMENT
                  COMMITTEE.

        Section 4004(b) of the Defense Economic Adjustment,
    Diversification, Conversion, and Stabilization Act of 1990 (division D
    of Public Law 101-510; 10 U.S.C. 2391 note) is amended--
                (1) by striking ``Until October 1, 1997, the'' and
            inserting ``The''; and
                (2) by striking the second sentence.

    SEC. 908. PILOT PROGRAM FOR IMPROVED CIVILIAN PERSONNEL MANAGEMENT.

        (a) Pilot Program.--(1) The Secretary of Defense may carry out a
    pilot program using an automated workforce management system to
    demonstrate improved efficiency in the performance of civilian
    personnel management.
        (2) Under the pilot program, the Secretary of Defense shall provide
    the Secretary of each military department with the authority for the
    following:
                (A) To use an automated workforce management system for its
            civilian workforce to assess its potential to substantially
            reduce hiring cycle times, lower labor costs, increase
            efficiency, improve performance management, provide better
            management reporting, and enable it to make operational new
            personnel management flexibilities granted under the civilian
            personnel transformation program.
                (B) Identify one regional civilian personnel center (or
            equivalent) in each military department for participation in
            the pilot program.
        (3) The Secretary may carry out the pilot program under this
    subsection at each selected regional civilian personnel center for a
    period of two years beginning not later than March 1, 2004.
        (b) Pilot Program Characteristics.--The pilot program civilian
    personnel management system shall have at a minimum the following
    characteristics:
                (1) Currently in use by Federal Government agencies outside
            the Department of Defense.
                (2) Able to be purchased on an annual subscription basis.
                (3) Requires no capital investment, software license fees,
            transaction charges, or ``per seat'' or ``concurrent user''
            restrictions.
                (4) Capable of automating the workforce management
            functions of job definition, position management, recruitment,
            staffing, and performance management using integrated vendor-
            supplied and supported data, expert system rules engines, and
            software functionality across those functions.
                (5) Has a ``native web'' technical architecture and an
            Oracle database.
                (6) Fully hosted by the vendor so that the customer
            requires only Internet access and an Internet browser to use
            the system.
                (7) Capable of operating completely ``server side'' so that
            no software is required on the client system and no invasive
            elements are used.
        (c) Implementation Plan.--(1) 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 plan for the implementation
    of the pilot program. The plan shall be submitted no later than six
    months after the date of the enactment of this Act.
        (2) The plan shall include the following:
                (A) The Secretary's request to the Office of Personnel
            Management to conduct the pilot program as a Federal civilian
            personnel demonstration project under chapter 47 of title 5,
            United States Code, or a plan to provide for the pilot program
            through another plan.
                (B) The expected cost of the pilot program.
                (C) Identification of the regional civilian personnel
            centers for participation in the pilot program and the criteria
            used to select them.
                (D) Expected timing for providing to Congress the results
            of the pilot program and recommendations of the Secretary.
        (d) Implementation.--The Secretary may not begin to implement the
    pilot program until a period of 30 days has elapsed after the date of
    the submission of the plan for the pilot program under subsection (c).

    SEC. 909. EXTENSION OF CERTAIN AUTHORITIES APPLICABLE TO THE PENTAGON
                  RESERVATION TO INCLUDE DESIGNATED PENTAGON CONTINUITY-OF-
                  GOVERNMENT LOCATIONS.

        Section 2674 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(g) For purposes of subsections (b), (c), (d), and (e), the terms
    `Pentagon Reservation' and `National Capital Region' shall be treated
    as including the land and physical facilities at the Raven Rock
    Mountain Complex and such other areas of land, locations, and physical
    facilities of the Department of Defense within 100 miles of the
    District of Columbia as the Secretary of Defense determines are
    necessary to meet the needs of the Department of Defense directly
    relating to continuity of operations and continuity of government.''.

    SEC. 910. DEFENSE ACQUISITION WORKFORCE REDUCTIONS.

        (a) Revised Limitation.--Subchapter V of chapter 87 of title 10,
    United States Code, is amended by adding at the end the following new
    section:
    ``Sec. 1765. Defense acquisition workforce: limitation
        ``(a) Limitation.--Effective October 1, 2008, the number of defense
    acquisition and support personnel in the Department of Defense may not
    exceed 75 percent of the baseline number.
        ``(b) Phased Reduction.--The number of defense acquisition and
    support personnel in the Department of Defense--
                ``(1) as of October 1, 2004, may not exceed 95 percent of
            the baseline number;
                ``(2) as of October 1, 2005, may not exceed 90 percent of
            the baseline number;
                ``(3) as of October 1, 2006, may not exceed 85 percent of
            the baseline number; and
                ``(4) as of October 1, 2007, may not exceed 80 percent of
            the baseline number.
        ``(c) Baseline Number.--In this section, the term `baseline number'
    means the number of defense acquisition and support personnel in the
    Department of Defense as of October 1, 2003.
        ``(d) Defense Acquisition and Support Personnel Defined.--In this
    section, the term `defense acquisition and support personnel' means
    military and civilian personnel (other than civilian personnel who are
    employed at a maintenance depot) who are assigned to, or employed in,
    acquisition organizations of the Department of Defense (as specified in
    Department of Defense Instruction numbered 5000.58 dated January 14,
    1992), and any other organizations which the Secretary may determine to
    have a predominantly acquisition mission.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by adding at the end the following new item:

    ``1765. Defense acquisition workforce: limitation.''.

    SEC. 911. REQUIRED FORCE STRUCTURE.

        (a) Army.--Section 3062 of title 10, United States Code, is amended
    by adding at the end the following new subsection:
        ``(e) The Army shall be so organized as to include not less than--
                ``(1) 10 active and eight National Guard combat divisions
            or their equivalents;
                ``(2) one active armored cavalry regiment and one light
            cavalry regiment or their equivalents;
                ``(3) 15 National Guard enhanced brigades or their
            equivalents; and
                ``(4) such other active and reserve component land combat,
            rotary-wing aviation, and other services as may be required to
            support forces specified in paragraphs (1) through (3).''.
        (b) Navy.--Section 5062 of such title is amended by adding at the
    end the following new subsection:
        ``(d) The Navy, within the Department of the Navy, shall be so
    organized as to include--
                ``(1) not less than 305 vessels in active service;
                ``(2) not less than 12 aircraft carrier battle groups or
            their equivalents, not less than 12 amphibious ready groups or
            their equivalents, not less than 55 attack submarines, not less
            than 108 active surface combatant vessels, and not less than 8
            reserve combatant vessels; and
                ``(3) such other active and reserve naval combat, naval
            aviation, and service forces as may be required to support
            forces specified in paragraphs (1) and (2).''.
        (c) Air Force.--Section 8062 of title 10, United States Code, is
    amended by adding at the end the following new subsection:
        ``(g) Notwithstanding subsection (e), the Air Force shall be so
    organized as to include not less than--
                ``(1) 46 active fighter squadrons or their equivalents;
                ``(2) 38 National Guard and Reserve squadrons or their
            equivalents;
                ``(3) 96 combat-coded bomber aircraft in active service;
            and
                ``(4) such other squadrons, reserve groups, and supporting
            auxiliary and reserve units as may be required to support
            forces specified in paragraphs (1) through (3).''.

                          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 2004 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
    $2,500,000,000.
        (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
                  2003.

        (a) DOD Authorizations.--Amounts authorized to be appropriated to
    the Department of Defense for fiscal year 2003 in the Bob Stump
    National Defense Authorization Act for Fiscal Year 2003 (Public Law
    107-314) 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) Chapters 3 and 8 of title I of the Emergency Wartime
            Supplemental Appropriations Act, 2003 (Public Law 108-11).
                (2) Any Act enacted after May 23, 2003, making supplemental
            appropriations for fiscal year 2003 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 2003 in the Bob Stump National
    Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) 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 4 of the Emergency Wartime Supplemental
            Appropriations Act, 2003 (Public Law 108-11).
                (2) Any Act enacted after May 23, 2003, making supplemental
            appropriations for fiscal year 2003 for the atomic energy
            defense activities of the Department of Energy.

    SEC. 1003. AUTHORITY TO TRANSFER PROCUREMENT FUNDS FOR A MAJOR DEFENSE
                  ACQUISITION PROGRAM FOR CONTINUED DEVELOPMENT WORK ON
                  THAT PROGRAM.

        (a) Authority.--Section 2214 of title 10, United States Code, is
    amended--
                (1) by redesignating subsections (b), (c), and (d) as
            subsections (c), (d), and (e), respectively; and
                (2) by inserting after subsection (a) the following new
            subsection (b):
        ``(b) Transfer of Procurement Funds For Development Activities for
    Major Defense Acquisition Systems.--(1) In the case of a major defense
    acquisition program (as defined in section 2430 of this title) for
    which funds are currently available both for procurement and for
    research, development, test, and evaluation, if the Secretary concerned
    determines that funds are required for further research, development,
    test, and evaluation activities for that program in excess of the funds
    currently available for that purpose, the Secretary may (subject to
    paragraph (2)) transfer funds available for that program for
    procurement to funds available for that program for research,
    development, test, and evaluation for the purpose of continuing
    research, development, test, and evaluation activities for that
    program.
        ``(2)(A) The total amount transferred under the authority of
    paragraph (1) for any acquisition program may not exceed $20,000,000.
        ``(B) The total amount transferred under the authority of paragraph
    (1) from amounts made available for any fiscal year may not exceed
    $250,000,000.
        ``(3) The authority provided by paragraph (1) is in addition to any
    other transfer authority that may be provided by law.
        ``(4) Upon a determination that all or part of the funds
    transferred under paragraph (1) are not necessary for the purpose for
    which the transfer was made, such amounts may be transferred back to a
    Procurement appropriation for the purpose of procurement of the
    acquisition program for which funds were transferred.''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    not apply with respect to funds appropriated for a fiscal year before
    fiscal year 2004.

    SEC. 1004. RESTORATION OF AUTHORITY TO ENTER INTO 12-MONTH LEASES AT
                  ANY TIME DURING THE FISCAL YEAR.

        Section 2410a(a) of title 10, United States Code, is amended by
    inserting after ``severable services'' the following: ``and the lease
    of real or personal property, including the maintenance of such
    property when contracted for as part of the lease agreement,''.

    SEC. 1005. AUTHORITY FOR RETENTION OF ADDITIONAL AMOUNTS REALIZED FROM
                  ENERGY COST SAVINGS.

        (a) Increase in Amount of Energy Cost Savings Retained.--Section
    2865(b)(1) of title 10, United States Code, is amended by striking
    ``Two-thirds of the portion of the funds appropriated to Department of
    Defense for a fiscal year that is'' and inserting ``Funds appropriated
    to the Department of Defense for a fiscal year that are''.
        (b) Effective Date.--The amendment made by subsection (a) shall not
    apply to funds appropriated for a fiscal year before fiscal year 2004.

    SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE FOR THE
                  DEPARTMENT OF DEFENSE.

        Section 1405 of the Department of Defense Authorization Act, 1986
    (Public Law 99-145; 31 U.S.C. 1105 note), is repealed.

    SEC. 1007. AUTHORITY TO PROVIDE REIMBURSEMENT FOR USE OF PERSONAL
                  CELLULAR TELEPHONES WHEN USED FOR OFFICIAL GOVERNMENT
                  BUSINESS.

        (a) In General.--(1) Chapter 134 of title 10, United States Code,
    is amended by inserting after section 2257 the following new section:
    ``Sec. 2258. Personal cellular telephones: reimbursement when used for
                  Government business
        ``(a) General Authority.--The Secretary of Defense may reimburse
    members of the Army, Navy, Air Force, and Marine Corp, and civilian
    officers and employees of the Department of Defense, for cellular
    telephone use on a privately owned cellular telephone when used on
    official Government business. Such reimbursement shall be on a flat-
    rate basis.
        ``(b) Reimbursement Rate.--The Secretary of Defense may prescribe
    the reimbursement rate for purposes of subsection (a). That
    reimbursement rate may not exceed the equivalent Government costs of
    providing a cellular telephone to employees on official Government
    business.''.
        (2) The table of sections at the beginning of subchapter II of such
    chapter is amended by inserting after the item relating to section 2257
    the following new item:

    ``2258. Personal cellular telephones: reimbursement when used for
                                Government business.''.
        (b) Effective Date.--Section 2258 of title 10, United States Code,
    as added by subsection (a), shall take effect on October 1, 2003, and
    shall apply with respect to the use of cellular phones on or after that
    date.

                    Subtitle B--Naval Vessels and Shipyards

    SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESERVATION OF SURGE
                  CAPABILITY FOR NAVAL SURFACE COMBATANTS.

        (a) Repeal.--Section 7296 of title 10, United States Code, is
    amended by striking subsection (b).
        (b) Clerical Amendments.--Such section is further amended--
                (1) by striking ``(3) Any notification under paragraph
            (1)(A)'' and inserting ``(b) Content of Notification.--Any
            notification under subsection (a)(1)(A)'';
                (2) by redesignating subparagraphs (A), (B), and (C) of
            subsection (b) (as redesignated by paragraph (1)) as paragraphs
            (1), (2), and (3), respectively; and
                (3) by striking ``subparagraph (B)'' in subsection (b)(3)
            (as redesignated by paragraphs (1) and (2)) and inserting
            ``paragraph (2)''.

    SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO USE FOR EXPERIMENTAL
                  PURPOSES OF VESSELS STRICKEN FROM NAVAL VESSEL REGISTER.

        (a) Sale of Material and Equipment Stripped From Vessel.--
    Subsection (b)(1) of section 7306a of title 10, United States Code, is
    amended by adding at the end the following new sentence: ``Material and
    equipment stripped from the vessel may be sold by a contractor or a
    designated sales agent on behalf of the Navy.''.
        (b) Use of Proceeds.--(1) Subsection (b)(2) of such section is
    amended by striking ``scrapping services'' and all that follows through
    the end of such subsection and inserting ``services needed for such
    stripping and for environmental remediation required for the use of the
    vessel for experimental purposes. Amounts received in excess of amounts
    needed for reimbursement of those costs shall be deposited into the
    account from which the stripping and environmental remediation expenses
    were incurred and shall be available for stripping and environmental
    remediation of other vessels to be used for experimental purposes.''.
        (2) The amendment made by paragraph (1) shall not apply with
    respect to proceeds from the stripping of a vessel under any vessel
    stripping contract entered into before the date of the enactment of
    this Act.
        (c) Clarification of Covered Experimental Purposes.--Such section
    is further amended by adding at the end the following new subsection:
        ``(c) Use for Experimental Purposes Defined.--In this section, the
    term `use for experimental purposes' includes use of a vessel in a Navy
    sink exercise or for target purposes.''.

    SEC. 1013. AUTHORIZATION FOR TRANSFER OF VESSELS STRICKEN FROM NAVAL
                  VESSEL REGISTER FOR USE AS ARTIFICIAL REEFS.

        (a) Authority.--Chapter 633 of title 10, United States Code, is
    amended by inserting after section 7306a the following new section:
    ``Sec. 7306b. Vessels stricken from Naval Vessel Register: transfer by
                  gift or otherwise for use as artificial reefs
        ``(a) Authority To Make Transfer.--The Secretary of the Navy may
    transfer, by gift or otherwise, any vessel stricken from the Naval
    Vessel Register to any State, Commonwealth, or possession of the United
    States or any municipal corporation or political subdivision thereof
    for use as an artificial reef as provided in subsection (b).
        ``(b) Vessel To Be Used as Artificial Reef.--An agreement for the
    transfer of a vessel under subsection (a) shall require that--
                ``(1) the transferee use, site, construct, monitor, and
            manage the vessel only as an artificial reef in accordance with
            the requirements of the National Fishing Enhancement Act of
            1984 (33 U.S.C. 2101 et seq.), except that the transferee also
            may use the artificial reef to enhance diving opportunities if
            that use does not have an adverse effect on fishery resources;
            and
                ``(2) the transferee shall obtain, and bear all of the
            responsibility for complying with, all applicable Federal,
            State, interstate, and local permits for siting, constructing,
            monitoring, and managing a vessel as an artificial reef.
        ``(c) Additional Terms.--The Secretary may require such additional
    terms in connection with a conveyance authorized by this section as the
    Secretary considers appropriate.
        ``(d) Cost Sharing on Transfers.--The Secretary of the Navy may
    share with the recipient any of the costs associated with transferring
    a vessel under this section.
        ``(e) Application for More Than One Vessel.--A State, Commonwealth,
    or possession of the United States, or any municipal corporation or
    political subdivision thereof, may apply for more than one vessel under
    this section.
        ``(f) Definition.--In this section, the term `fishery resources'
    has the meaning given such term in section 3(14) of the Magnuson-
    Stevens Fishery Conservation and Management Act of 1976 (16 U.S.C.
    1802(14)).''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    7306a the following new item:

    ``7306b. Vessels stricken from Naval Vessel Register: transfer by gift
                                or otherwise for use as artificial
                                reefs.''.

    SEC. 1014. PILOT PROGRAM FOR SEALIFT SHIP CONSTRUCTION.

        (a) Establishment of Pilot Program.--The Secretary of the Navy may
    establish a pilot program, under which the Secretary of the Navy,
    subject to the availability of appropriations, may guarantee loans
    for--
                (1) the construction in a United States shipyard of two
            qualified sealift ships that are to be documented under the
            laws of the United States for use in United States-flag
            commercial service; and
                (2) the acquisition of facilities or equipment pertaining
            to the marine operations of those ships, which may include
            specialized loading equipment.
        (b) Conditions of Guarantee.--A guarantee under this section is
    subject to the following conditions:
                (1) MSP.--The owner of the ships for which guarantees are
            issued shall apply for an operating agreement with the
            Secretary of Transportation under subtitle B of title XXXV.
                (2) NDF; charter.--If the Secretary of the Navy requests,
            the owner of the ships shall engage in negotiations on
            reasonable terms and conditions for--
                        (A) installation and maintenance of defense
                    features for national defense purposes on one or both
                    ships under section 2218 of title 10, United States
                    Code; and
                        (B) a short-term charter to the United States
                    Government of at least one ship for which a guarantee
                    is issued, for a period of at least 60 days prior to
                    entry into commercial service, for the purpose of
                    demonstrating the military capabilities of the ships.
        (c) Payment of Cost.--The cost of a guarantee under this section
    shall be paid for with amounts made available in appropriations Acts.
        (d) Percentage Limitation; Term.--A guarantee under this section
    may apply--
                (1) to up to 87.5 percent of the loan principal; and
                (2) for a term ending up to 25 years after delivery of the
            second ship.
        (e) Authorities, Procedures, Requirements, and Restrictions.--The
    Secretary of the Navy, subject to the other provisions of this
    section--
                (1) in implementing this section, may exercise authorities
            that are substantially the same as the authorities available to
            the Secretary of Transportation under title XI of the Merchant
            Marine Act, 1936 (46 App. U.S.C. 1271 et seq.) with respect to
            loan guarantees under that title;
                (2) shall implement this section under procedures,
            requirements, and restrictions that are substantially the same
            as those under which loan guarantees are made under that title,
            including the regulations implementing that title; and
                (3) may establish such additional requirements for loan
            guarantees under this section as the Secretary determines to be
            necessary to minimize the cost of such guarantees.
        (f) Interagency Agreement.--The Secretary of Transportation shall
    enter into an interagency agreement or other appropriate arrangement
    with the Secretary of the Navy to make available to the Department of
    the Navy such Maritime Administration personnel with expertise in
    vessel construction financing as are necessary to carry out the program
    under this section.
        (g) Definitions.--In this section:
                (1) Cost.--The term ``cost'', with respect to a loan
            guarantee under this section, has the meaning given that term
            in section 502 of the Congressional Budget and Impoundment
            Control Act of 1974 (2 U.S.C. 661a).
                (2) Qualified sealift ship.--The term ``qualified sealift
            ship'' means a roll-on, roll-off vessel that is--
                        (A) militarily useful for additional medium- to
                    long-haul strategic sealift capacity;
                        (B) designed to carry at least 10,000 tons of
                    cargo; and
                        (C) capable of operating commercially in the
                    foreign commerce of the United States.
        (h) Authorization of Appropriations.--There are authorized to be
    appropriated to the Secretary of the Navy to carry out this section
    $40,000,000.

                              Subtitle C--Reports

    SEC. 1021. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS
                  APPLICABLE TO THE DEPARTMENT OF DEFENSE.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) Section 113 is amended by striking subsection (m).
                (2) Section 117(e) is amended by striking ``each month''
            and all that follows through ``subsection (d)'' and inserting
            ``each quarter submit to the congressional defense committees a
            report in writing containing the results of the most recent
            joint readiness review under subsection (d)(1)(A)''.
                (3) Section 127(d) is amended to read as follows:
        ``(d) Annual Report.--Not later than December 1 each year, the
    Secretary of Defense shall submit to the congressional defense
    committees a report on expenditures during the preceding fiscal year
    under subsections (a) and (b).''.
                (4) Section 127a is amended--
                        (A) in subsection (a)--
                                (i) by striking paragraph (3); and
                                (ii) by redesignating paragraph (4) as
                            paragraph (3); and
                        (B) by striking subsection (d).
                (5) Section 128 is amended by striking subsection (d).
                (6) Section 184 is amended by striking subsection (b).
                (7) Section 226(a) is amended--
                        (A) by striking ``December 15'' and inserting
                    ``January 15''; and
                        (B) by striking ``in the following year'' in
                    paragraph (1) and inserting ``in that year''.
                (8)(A) Section 228 is amended--
                        (i) in subsection (a)--
                                (I) by striking ``Monthly'' in the
                            subsection heading and inserting ``Quarterly'';
                                (II) by striking ``monthly'' and inserting
                            ``quarterly''; and
                                (III) by striking ``month'' and inserting
                            ``fiscal-year quarter''; and
                        (ii) in subsection (c), by striking ``month'' each
                    place it appears and inserting ``quarter''.
                (B)(i) The heading of such section is amended to read as
            follows:
    ``Sec. 228. Quarterly reports on allocation of funds within operation
                  and maintenance budget subactivities''.
                (ii) The item relating to section 228 in the table of
            sections at the beginning of chapter 9 is amended to read as
            follows:

    ``228. Quarterly reports on allocation of funds within operation and
                                maintenance budget subactivities.''.
                (9)(A) Section 484 is repealed.
                (B) The table of sections at the beginning of such chapter
            is amended by striking the item relating to section 484.
                (10)(A) Section 520c is amended--
                        (i) by striking subsection (b);
                        (ii) by striking ``(a) Provision of Meals and
                    Refreshments.--''; and
                        (iii) by striking the heading for such section and
                    inserting the following:
    ``Sec. 520c. Recruiting functions: provision of meals and
                  refreshments''.
                (B) The item relating to such section in the table of
            sections at the beginning of chapter 31 is amended to read as
            follows:

    ``520c. Recruiting functions: provision of meals and refreshments.''.
                (11) Section 983(e)(1) is amended by striking ``and to
            Congress''.
                (12) Section 1060 is amended by striking subsection (d).
                (13) Section 1130 is amended--
                        (A) in subsection (a), by striking ``the other
                    determinations necessary to comply with subsection
                    (b)'' and inserting ``respond with a detailed
                    description of the rationale supporting the
                    determination''; and
                        (B) by striking subsection (b).
                (14) Section 1557 is amended by striking subsection (e).
                (15) Section 1563 is amended--
                        (A) in subsection (a), by striking ``the other
                    determinations necessary to comply with subsection
                    (b)'' and inserting ``respond with a detailed
                    description of the rationale supporting the
                    determination''; and
                        (B) by striking subsection (b).
                (16) Section 2010 is amended by striking subsection (b).
                (17) Section 2166 is amended--
                        (A) in subsection (e)(5), by inserting ``and to
                    Congress'' after ``to the Secretary of Defense''; and
                        (B) by striking subsection (i).
                (18) Section 2208(j)(2) is amended by striking ``and
            notifies Congress regarding the reasons for the waiver''.
                (19) Section 2216(i) is amended--
                        (A) by striking ``Quarterly Reports.--(1) Not later
                    than 15 days after the end of each calendar quarter''
                    and inserting ``Annual Report.--(1) Not later than 60
                    days after the end of each fiscal year''; and
                        (B) by striking ``quarter'' in subparagraphs (A),
                    (B), and (C) of paragraph (1) and inserting ``fiscal
                    year''.
                (20) Section 2224(e) is amended by inserting ``through
            2007'' after ``Each year''.
                (21) Section 2255(b)--
                        (A) by striking paragraph (2); and
                        (B) by striking ``(1)'' after ``(b) Exception.--''.
                (22) Section 2281 is amended by striking subsection (d).
                (23)(A) Section 2282 is repealed.
                (B) The table of sections at the beginning of chapter 136
            is amended by striking the item relating to section 2282.
                (24) Section 2323 is amended--
                        (A) in subsection (d)--
                                (i) by striking ``Defense--'' and all that
                            follows through ``the extent'' and inserting
                            ``Defense to the extent'';
                                (ii) by striking ``; and'' and inserting a
                            period; and
                                (iii) by striking paragraph (2); and
                        (B) by striking subsection (i).
                (25) 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'';
                        (B) in subparagraph (B), by striking ``A report
                    under subparagraph (A)'' and inserting ``The Secretary
                    shall maintain records of each contract entered into by
                    reason of subparagraph (A). Such records''; and
                        (C) by striking subparagraph (C).
                (26) Section 2350j is amended by striking subsections (e)
            and (g).
                (27) Section 2367 is amended by striking subsection (d).
                (28) Section 2371 is amended by striking subsection (h).
                (29) Section 2374a is amended by striking subsection (e).
                (30) Section 2410m(c) is amended--
                        (A) by striking ``Reporting Requirement.--Each
                    year'' and inserting ``Annual Report.--Not later than
                    60 days after the end of each fiscal year'';
                        (B) by inserting ``at the end of such fiscal year''
                    in paragraph (1) before the period;
                        (C) by striking ``during the year preceding the
                    year in which the report is submitted'' in paragraph
                    (2) and inserting ``under this section during that
                    fiscal year'';
                        (D) by striking ``in such preceding year'' in
                    paragraph (3) and inserting ``under this section during
                    that fiscal year''; and
                        (E) by striking ``in such preceding year'' in
                    paragraph (4) and inserting ``under this section during
                    that fiscal year''.
                (31) Section 2433 is amended--
                        (A) in subsection (d)--
                                (i) in paragraphs (1) and (2), by striking
                            ``, or by at least 25 percent,''; and
                                (ii) in paragraph (3)--
                                        (I) by striking ``or by at least 25
                                    percent,'' both places it appears; and
                                        (II) by inserting a comma after
                                    ``paragraph (1)''; and
                        (B) in subsection (e)--
                                (i) by striking paragraph (2);
                                (ii) by redesignating paragraph (3) as
                            paragraph (2);
                                (iii) in paragraph (2), as so redesignated,
                            by striking ``or if a'' in the first sentence
                            and all that follows through ``paragraph
                            (2),''; and
                                (iv) by designating the second sentence of
                            such paragraph as paragraph (3) and in that
                            paragraph--
                                        (I) by inserting ``under paragraph
                                    (2)'' after ``The prohibition''; and
                                        (II) by striking ``the date--'' and
                                    all that follows through ``subsection
                                    (d).'' and inserting ``the date on
                                    which Congress receives the Selected
                                    Acquisition Report under paragraph (1)
                                    with respect to that program.''.
                (32) Section 2457 is amended by striking subsection (d).
                (33) Section 2493 is amended by striking subsection (g).
                (34) Section 2515 is amended by striking subsection (d).
                (35) Section 2521 is amended by striking subsection (e).
                (36) Section 2536 is amended--
                        (A) in subsection (b)(2)--
                                (i) by striking ``notify Congress'' in the
                            first sentence and inserting ``maintain a
                            record''; and
                                (ii) by striking the second sentence and
                            inserting the following: ``The records
                            maintained under the preceding sentence with
                            respect to a waiver shall include a
                            justification in suport of the decision to
                            grant the waiver and shall be retrievable for
                            any particular waiver or for waivers during any
                            period of time.''; and
                        (B) by adding at the end the following new
                    subsection:
        ``(d) The Secretary of Defense shall maintain an account of actions
    relating to the award of contracts to a prime contractor. The Secretary
    of Defense shall include in such accounts the reasons for exercising
    the awards and the work expected to be performed.''.
                (37) Section 2541d is amended--
                        (A) by striking subsection (b); and
                        (B) in subsection (a), by striking ``(a)'' and all
                    that follows through ``The Secretary of Defense'' and
                    inserting ``The Secretary of Defense''.
                (38) Section 2561 is amended by striking subsections (c),
            (d) and (f).
                (39) Section 2563(c)(2) is amended by striking ``and
            notifies Congress regarding the reasons for the waiver''.
                (40) Section 2645 is amended by striking subsections (d)
            and (g).
                (41) Section 2667a(c)(2) is amended by striking ``45 days''
            and inserting ``14 days''.
                (42) Section 2676(d) is amended by striking ``21 days'' and
            inserting ``14 days''.
                (43) Section 2680 is amended by striking subsection (e).
                (44) Section 2696 is amended by striking subsections (c)
            and (d).
                (45) Section 2703(c)(2) is amended--
                        (A) by striking subparagraph (B);
                        (B) by striking ``unless the Secretary--'' and all
                    that follows through ``determines that'' and inserting
                    ``unless the Secretary determines that''; and
                        (C) by redesignating clauses (i), (ii), and (iii)
                    as subparagraphs (A), (B), and (C), respectively, and
                    realigning such subparagraphs (as so redesignated) two
                    ems from the left margin.
                (46)(A) Section 2723 is repealed.
                (B) The table of sections at the beginning of chapter 161
            is amended by striking the item relating to section 2723.
                (47) Section 2803(b) is amended by striking ``21-day
            period'' and inserting ``seven-day period''.
                (48) Section 2804(b) is amended by striking ``21-day
            period'' and inserting ``14-day period''.
                (49) Section 2805(b) is amended--
                        (A) in paragraph (1), by striking ``$750,000'' and
                    inserting ``$1,000,000''; and
                        (B) in paragraph (2), by striking ``21-day period''
                    and inserting ``seven-day period'''.
                (50) Section 2807 is amended--
                        (A) in subsection (b)--
                                (i) by striking ``$500,000'' and inserting
                            ``$1,000,000''; and
                                (ii) by striking ``not less than 21 days'';
                            and
                        (B) in subsection (c)(2), by striking ``21 days''
                    and inserting ``14 days''.
                (51) Section 2809(f)(2) is amended by striking ``21
            calendar days'' and inserting ``14 days''.
                (52) Section 2812(c)(1)(B) is amended by striking ``21
            days'' and inserting ``14 days''.
                (53) Section 2813(c) is amended by striking ``30-day
            period'' and inserting ``21-day period''.
                (54) Section 2825 is amended--
                        (A) by striking ``21 days'' in the last sentence of
                    subsection (b)(1)(B) and inserting ``14 days''; and
                        (B) by striking ``21 days'' in subsection (c)(1)(D)
                    and inserting ``14 days''.
                (55) Section 2826 is amended--
                        (A) by striking ``(a) Local Comparability.--''; and
                        (B) by striking subsection (b).
                (56) Section 2827(b)(2) is amended by striking ``21 days''
            and inserting ``14 days''.
                (57) Section 2836(f)(2) is amended by striking ``21
            calendar days'' and inserting ``14 days''.
                (58) Section 2837(c)(2) is amended by striking ``21-day
            period'' and inserting ``14-day period''.
                (59) Section 2854(b) is amended by striking ``21-day
            period'' and inserting ``seven-day period''.
                (60) Section 2854a(c)(2) is amended by striking ``21
            calendar days'' and inserting ``14 days''.
                (61) Section 2865 is amended--
                        (A) in subsection (e)--
                                (i) by striking ``(1)'' before ``The
                            Secretary''; and
                                (ii) by striking paragraph (2); and
                        (B) by striking subsection (f).
                (62) Section 2866(c) is amended--
                        (A) by striking ``(1)'' before ``The Secretary'';
                    and
                        (B) by striking paragraph (2).
                (63) Section 2867(c) is amended by striking ``21-day
            period'' and inserting ``14-day period''.
                (64) Section 2875(e) is amended by striking ``30-day
            period'' and inserting ``14-day period''.
                (65) Section 2883(f) is amended by striking ``30-day
            period'' and inserting ``14-day period''.
                (66) Section 2902(g) is amended--
                        (A) by striking paragraph (2); and
                        (B) by striking ``(1)'' after ``(g)''.
                (67) Section 4342(h) is amended by striking ``Secretary of
            the Army'' and inserting ``Superintendent''.
                (68) Section 4357(c) is amended is amended by striking
            ``the expiration of 30 days following''.
                (69) Section 6954(f) is amended by striking ``Secretary of
            the Navy'' and inserting ``Superintendent of the Naval
            Academy''.
                (70) Section 6975(c) is amended is amended by striking
            ``the expiration of 30 days following''.
                (71) Section 7049(c) is amended--
                        (A) by striking ``Certification'' in the subsection
                    heading and inserting ``Determination''; and
                        (B) by striking ``, and certifies to'' and all that
                    follows through ``House of Representatives,''.
                (72) Section 9342(h) is amended by striking ``Secretary of
            the Air Force'' and inserting ``Superintendent''.
                (73) Section 9356(c) is amended is amended by striking
            ``the expiration of 30 days following''.
                (74) Section 12302--
                        (A) in subsection (b), by striking the last
                    sentence; and
                        (B) by striking subsection (d).
                (75)(A) Section 16137 is repealed.
                (B) The table of sections at the beginning of chapter 1606
            is amended by striking the item relating to section 16137.
        (b) National Defense Authorization Act for Fiscal Year 1991.--Part
    B of title XXIX of the National Defense Authorization Act for Fiscal
    Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note) is amended as
    follows:
                (1) Section 2921 is amended--
                        (A) in subsection (f)(1), by striking ``30 days''
                    and inserting ``14 days''; and
                        (B) in subsection (g), by striking ``30 days'' in
                    paragraphs (1) and (2) and inserting ``14 days''.
                (2) Section 2926 is amended by striking subsection (g).
        (c) National Defense Authorization Act for Fiscal Years 1992 and
    1993.--The National Defense Authorization Act for Fiscal Years 1992 and
    1993 (Public Law 102-190) is amended as follows:
                (1) Section 734 (10 U.S.C. 1074 note) is amended by
            striking subsection (c).
                (2) Section 2868(a) (10 U.S.C. 2802 note) is amended by
            striking ``The Secretary of Defense'' and all that follows
            through ``is to be authorized'' and inserting ``Not later than
            30 days after the date on which a decision is made selecting
            the site or sites for the permanent basing of a new weapon
            system, the Secretary of Defense shall submit to Congress''.
        (d) National Defense Authorization Act for Fiscal Year 1993.--The
    National Defense Authorization Act for Fiscal Year 1993 (Public Law
    102-484) is amended as follows:
                (1) Section 324 (10 U.S.C. 2701 note) is amended--
                        (A) by striking ``(a) Sense of Congress.--''; and
                        (B) by striking subsection (b).
                (2) Section 1082(b)(1) (10 U.S.C. 113 note) is amended by
            striking ``the Secretary of Defense--'' and all that follows
            and inserting ``the Secretary of Defense determines that it is
            in the national security interests of the United States for the
            military departments to do so.''.
        (e) National Defense Authorization Act for Fiscal Year 1995.--
    Section 721 of the National Defense Authorization Act for Fiscal Year
    1995 (Public Law 103-337; 10 U.S.C. 1074 note) is amended by striking
    subsection (h).
        (f) National Defense Authorization Act for Fiscal Year 1997.--The
    National Defense Authorization Act for Fiscal Year 1997 (Public Law
    104-201) is amended as follows:
                (1) Section 324 (10 U.S.C. 2706 note) is amended by
            striking subsection (c).
                (2) Section 1065(b) (10 U.S.C. 113 note) is amended--
                        (A) by striking ``(1)'' before ``Notwithstanding'';
                    and
                        (B) by striking paragraph (2).
        (g) Department of Defense Appropriations Act, 1997.--Section 8009
    of the Department of Defense Appropriations Act, 1997 (as contained in
    section 101(b) of Public Law 104-208; 110 Stat. 3009-89), is amended by
    striking ``, unless the congressional defense committees have been
    notified at least thirty days in advance of the proposed contract
    award''.
        (h) National Defense Authorization Act for Fiscal Year 1998.--
    Section 349 of the National Defense Authorization Act for Fiscal Year
    1998 (Public Law 105-85; 10 U.S.C. 2702 note) is amended by striking
    subsection (e).
        (i) Strom Thurmond National Defense Authorization Act for Fiscal
    Year 1999.--The Strom Thurmond National Defense Authorization Act for
    Fiscal Year 1999 (Public Law 105-261) is amended as follows:
                (1) Section 745(e) (10 U.S.C. 1071 note) is amended--
                        (A) by striking ``(1)'' before ``The Secretary of
                    Defense''; and
                        (B) by striking paragraph (2).
                (2) Section 1223 (22 U.S.C. 1928 note) is repealed.
        (j) National Defense Authorization Act for Fiscal Year 2000.--The
    National Defense Authorization Act for Fiscal Year 2000 (Public Law
    106-65) is amended as follows:
                (1) Section 212 (10 U.S.C. 2501 note) is amended by
            striking subsection (c).
                (2) Section 724 (10 U.S.C. 1092 note) is amended by
            striking subsection (e).
                (4) Section 1039 (10 U.S.C. 113 note) is amended by
            striking subsection (b).
        (k) Military Construction Appropriations Act, 2001.--Section 125 of
    the Military Construction Appropriations Act, 2001 (division A of
    Public Law 106-246; 114 Stat. 517), is repealed.
        (l) Department of Defense Appropriations Act, 2001.--Section 8019
    of the Department of Defense Appropriations Act, 2001 (Public Law 106-
    259; 114 Stat. 678; 10 U.S.C. 2687 note), is amended by striking ``of
    Congress:'' and all that follows through ``this provision'' and
    inserting ``of Congress''.
        (m) Floyd D. Spence National Defense Authorization Act for Fiscal
    Year 2001.--Section 1006 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-247; 10 U.S.C. 2226 note), is amended by
    striking subsection (c).
        (n) Department of Defense Appropriations Act, 2002.--Section 8009
    of the Department of Defense Appropriations Act, 2002 (division A of
    Public Law 107-117; 115 Stat. 2249; 10 U.S.C. 401 note), is amended by
    striking ``, and these obligations shall be reported to the Congress''.

    SEC. 1022. REPORT ON OPERATION IRAQI FREEDOM.

        (a) Report Required.--Not later than June 15, 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 Operation Iraqi Freedom. The Secretary
    shall submit to those committees a preliminary report on the conduct of
    those hostilities not later than January 15, 2004.
        (b) Discussion of Accomplishments and Shortcomings.--The report
    (and the preliminary report, to the extent feasible) shall contain a
    discussion, with a particular emphasis on accomplishments and
    shortcomings, of the following matters:
                (1) The military objectives of the multinational coalition.
                (2) The military strategy of the multinational coalition to
            achieve those military objectives and how the military strategy
            contributed to the achievement of those objectives.
                (3) The deployment of United States forces and the
            transportation of supplies to the theater of operations,
            including an assessment of airlift, sealift, afloat
            prepositioning ships, and Maritime Prepositioning Squadron
            ships.
                (4) The conduct of military operations.
                (5) The use of special operations forces, including
            operational and intelligence uses classified under special
            access procedures.
                (6) The use and performance of United States military
            equipment, weapon systems, and munitions (including items
            classified under special access procedures) and an analysis
            of--
                        (A) any equipment or capabilities that were in
                    research and development and if available could have
                    been used in the theater of operations; and
                        (B) any equipment or capabilities that were
                    available and could have been used but were not
                    introduced into the theater of operations.
                (7) The scope of logistics support, including support from
            other nations.
                (8) The acquisition policies and processes used to support
            the forces in the theater of operations.
                (9) The personnel management actions taken to support the
            forces in the theater of operations.
                (10) The effectiveness of reserve component forces,
            including a discussion of each of the following matters:
                        (A) The readiness and activation of such forces.
                        (B) The decisionmaking process regarding both
                    activation of reserve component forces and deployment
                    of those forces to the theater of operations.
                        (C) The post-activation training received by such
                    forces.
                        (D) The integration of forces and equipment of
                    reserve component forces into the active component
                    forces.
                        (E) The use and performance of the reserve
                    component forces in operations in the theater of
                    operations.
                        (F) The use and performance of such forces at duty
                    stations outside the theater of operations.
                (11) The role of the law of armed conflict in the planning
            and execution of military operations by United States forces
            and the other coalition forces and the effects on operations of
            Iraqi compliance or noncompliance with the law of armed
            conflict, including a discussion regarding each of the
            following matters:
                        (A) Use of Iraqi civilians as human shields.
                        (B) Collateral damage and civilian casualties.
                        (C) Treatment of prisoners of war.
                        (D) Repatriation of prisoners of war.
                        (E) Use of ruses and acts of perfidy.
                        (F) War crimes.
                        (G) Environmental terrorism.
                        (H) Conduct of neutral nations.
                (12) The actions taken by the coalition forces in
            anticipation of, and in response to, Iraqi acts of
            environmental terrorism.
                (13) The actions taken by the coalition forces in
            anticipation of possible Iraqi use of weapons of mass
            destruction.
                (14) Evidence of Iraqi weapons of mass destruction programs
            and Iraqi preparations for the use of such weapons.
                (15) The contributions of United States and coalition
            intelligence and counterintelligence systems and personnel,
            including contributions regarding bomb damage assessments and
            particularly including United States tactical intelligence and
            related activities (TIARA) programs and the Joint Military
            Intelligence Program (JMIP).
                (16) Command, control, communications, and operational
            security of the coalition forces as a whole, and command,
            control, communications, and operational security of the United
            States forces.
                (17) The rules of engagement for the coalition forces.
                (18) The actions taken to reduce the casualties among
            coalition forces caused by the fire of such forces.
                (19) The role of supporting combatant commands and Defense
            Agencies of the Department of Defense.
                (20) The policies and procedures relating to the media,
            including the use of embedded media.
                (21) The assignment of roles and missions to the United
            States forces and other coalition forces and the performance of
            those forces in carrying out their assigned roles and missions.
                (22) The preparedness, including doctrine and training, of
            the United States forces.
                (23) The acquisition of foreign military technology from
            Iraq, and any compromise of military technology of the United
            States or other countries in the multinational coalition.
                (24) The problems posed by Iraqi possession and use of
            equipment produced in the United States and other coalition
            nations.
                (25) The use of deception by Iraqi forces and by coalition
            forces.
                (26) The military criteria used to determine when to
            progress from one phase of military operations to another phase
            of military operations.
                (27) The role, if any, of the Status of Resources and
            Training System (SORTS) in determining which units would be
            employed during the operation.
                (28) The role of the Coast Guard.
                (29) The direct and indirect cost of military operations,
            including an assessment of the total incremental expenditures
            made by the Department of Defense as a result of Operation
            Iraqi Freedom.
        (c) Casualty Statistics.--The report (and the preliminary report,
    to the extent feasible) shall also contain--
                (1) the number of military and civilian casualties
            sustained by coalition nations; and
                (2) estimates of such casualties sustained by Iraq and by
            nations not directly participating in hostilities during
            Operation Iraqi Freedom.
        (d) Classification of Reports.--The Secretary of Defense shall
    submit both the report and the preliminary report in a classified form
    and an unclassified form.

    SEC. 1023. REPORT ON DEPARTMENT OF DEFENSE POST-CONFLICT ACTIVITIES IN
                  IRAQ.

        (a) Report Required.--Not later than 90 days after the date of the
    enactment of this Act, the Secretary of Defense shall submit to
    Congress a report on the activities of the Department of Defense in
    post-conflict Iraq.
        (b) Report Elements.--The report shall discuss the range of
    infrastructure reconstruction, civil administration, humanitarian
    assistance, interim governance, and political development activities
    undertaken in Iraq by officials of the Department and by those
    civilians reporting to the Secretary of Defense and the missions
    undertaken in Iraq by United States military forces during the post-
    conflict period. In particular, the report shall include a discussion
    of the following:
                (1) The evolution of the organizational structure of the
            civilian groups reporting to the Secretary, including the
            Office of Reconstruction and Humanitarian Assistance, on issues
            of Iraqi post-conflict administration and reconstruction and
            the factors influencing that evolution.
                (2) The relationship of the Department of Defense with
            other United States departments and agencies involved in post-
            conflict administration and reconstruction planning and
            execution in Iraq.
                (3) The relationship of Department of Defense entities,
            including the Office of Reconstruction and Humanitarian
            Assistance, with intergovernmental and nongovernmental
            organizations contributing to the reconstruction and governance
            efforts.
                (4) Progress made to the date of the report in--
                        (A) rebuilding Iraqi infrastructure;
                        (B) providing for the humanitarian needs of the
                    Iraqi people;
                        (C) reconstituting the Iraqi governmental
                    bureaucracy and its provision of services; and
                        (D) developing mechanisms of fully transitioning
                    Iraq to representative self-government.
                (5) Progress made to the date of the report by Department
            of Defense civilians and military personnel in accounting for
            any Iraqi weapons of mass destruction and associated weapons
            capabilities.
                (6) Progress made to the date of the report by United
            States military personnel in providing security in Iraq and in
            transferring security functions to a reconstituted Iraqi police
            force and military.
                (7) The Secretary's assessment of the scope of the ongoing
            needed commitment of United States military forces and of the
            remaining tasks to be completed by Department of Defense
            civilian personnel in the governance and reconstruction areas,
            including an estimate of the total expenditures the Department
            of Defense expects to make for activities in post-conflict
            Iraq.

    SEC. 1024. REPORT ON DEVELOPMENT OF MECHANISMS TO BETTER CONNECT
                  DEPARTMENT OF DEFENSE SPACE CAPABILITIES TO THE WAR
                  FIGHTER.

        Not later than March 15, 2004, the Secretary of Defense shall
    submit to the congressional defense committees a report on development
    and implementation of systematic mechanisms to provide for integrating
    into activities of the United States Strategic Command planning and
    requirements for connecting space capabilities of that command with the
    war fighter.

         Subtitle D--Procurement of Defense Biomedical Countermeasures

    SEC. 1031. RESEARCH AND DEVELOPMENT OF DEFENSE BIOMEDICAL
                  COUNTERMEASURES.

        (a) In General.--The Secretary of Defense (in this section referred
    to as the ``Secretary'') shall carry out a program to accelerate the
    research, development and procurement of biomedical countermeasures,
    including but not limited to therapeutics and vaccines, for the
    protection of the Armed Forces from attack by one or more biological,
    chemical, radiological, or nuclear agents.
        (b) Interagency Cooperation.--(1) In carrying out the program under
    subsection (a), the Secretary may enter into interagency agreements and
    other collaborative undertakings with other Federal agencies. Under
    such agreements and undertakings, the participating agencies are
    authorized to provide funds and receive funds from other participating
    agencies.
        (2) The Secretary, in consultation with the Secretary of Health and
    Human Services and the Secretary of Homeland Security, shall ensure
    that the activities of the Department of Defense in carrying out the
    program are coordinated with, complement, and do not unnecessarily
    duplicate activities of the Department of Health and Human Services or
    the Department of Homeland Security.
        (c) Expedited Procurement Authority.--(1)(A) For any procurement by
    the Secretary, of property or services for use (as determined by the
    Secretary) in performing, administering, or supporting biomedical
    countermeasures research or development, the amount specified in
    section 4(11) of the Office of Federal Procurement Policy Act (41
    U.S.C. 403(11)), as applicable pursuant to section 302A(a) of the
    Federal Property and Administrative Services Act of 1949 (41 U.S.C.
    252a(a)), shall be deemed to be $25,000,000 in the administration, with
    respect to such procurement, of sections 302A(b) (41 U.S.C. 252a(b))
    and 303(g)(1)(A) (42 U.S.C. 253(g)(1)(A)) of the Federal Property and
    Administrative Services Act of 1949 and the regulations implementing
    those sections.
        (B) The Secretary shall institute appropriate internal controls for
    use of the authority under subparagraph (A), including requirements for
    documenting the justification for each use of such authority.
        (2)(A) For a procurement described in paragraph (1), the amount
    specified in subsections (c), (d), and (f) of section 32 of the Office
    of Federal Procurement Policy Act (41 U.S.C. 428) shall be deemed to be
    $15,000 in the administration of that section with respect to such
    procurement.
        (B) The Secretary shall institute appropriate internal controls for
    each use of the authority under subparagraph (A) for a procurement
    greater than $2,500.
        (d) Facilities Authority.--(1) The Secretary may acquire, lease,
    construct, improve, renovate, remodel, repair, operate, and maintain
    laboratories, other research facilities and equipment, and other real
    or personal property that the Secretary determines necessary for
    carrying out the program under this section. The authority under this
    paragraph is in addition to any other authority under law.
        (2) Nothing in this section shall be construed to authorize the
    Secretary to acquire, lease, construct, improve, renovate, remodel,
    repair, operate, or maintain facilities having general utility.
        (e) Authority for Personal Services Contracts.--The authority
    provided by section 1091 of title 10, United States Code, for personal
    services contracts to carry out health care responsibilities in medical
    treatment facilities of the Department of Defense shall also be
    available, subject to the same terms and conditions, for personal
    services contracts to carry out research and development activities
    under this section. The number of individuals whose personal services
    are obtained under this subsection may not exceed 30 at any time.
        (f) Streamlined Personnel Authority.--(1) Without regard to any
    provision of title 5, United States Code, governing appointments in the
    competitive service, and without regard to any provision of chapter 51,
    or subchapter III of chapter 43, of such title relating to
    classification and General Schedule pay rates, the Secretary may
    appoint professional and technical employees, not to exceed 30 such
    employees at any time, to positions in the Department of Defense to
    carry out research and development under the program under this
    section. The authority under this paragraph is in addition to any other
    authority under law.
        (2) The Secretary may use the authority under paragraph (1) only
    upon a determination by the Secretary that use of such authority is
    necessary to accelerate the research and development under the program.
        (3) The Secretary shall institute appropriate internal controls for
    each use of the authority under paragraph (1).

    SEC. 1032. PROCUREMENT OF DEFENSE BIOMEDICAL COUNTERMEASURES.

        (a) Determination of Material Threats.--(1) The Secretary of
    Defense (in this section referred to as the ``Secretary''), in
    consultation with the Secretary of Health and Human Services and the
    Secretary of Homeland Security shall on an ongoing basis--
                (A) assess current and emerging threats of use of
            biological, chemical, radiological, and nuclear agents; and
                (B) identify, on the basis of such assessment, those agents
            that present a material risk of use against the Armed Forces.
        (2) The Secretary, in consultation with the Secretary of Health and
    Human Services and the Secretary of Homeland Security, shall on an
    ongoing basis--
                (A) assess the potential consequences to the health of
            members of the Armed Forces of use against the Armed Forces of
            the agents identified under paragraph (1)(B); and
                (B) identify, on the basis of such assessment, those agents
            for which countermeasures are necessary to protect the health
            of members of the Armed Forces.
        (b) Assessment of Availability and Appropriateness of
    Countermeasures.--The Secretary, in consultation with the Secretary of
    Health and Human Services and the Secretary of Homeland Security, shall
    on an ongoing basis assess the availability and appropriateness of
    specific countermeasures to address specific threats identified under
    subsection (a).
        (c) Secretary's Determination of Countermeasures Appropriate for
    Procurement.--(1) The Secretary, in accordance with paragraph (2),
    shall on an ongoing basis identify specific countermeasures that the
    Secretary determines to be appropriate for procurement for the
    Department of Defense stockpile of biomedical countermeasures.
        (2) The Secretary may not identify a specific countermeasure under
    paragraph (1) unless the Secretary determines that--
                (A) the countermeasure is a qualified countermeasure; and
                (B) it is reasonable to expect that producing and
            delivering, within 5 years, the quantity of that countermeasure
            required to meet the needs of the Department (as determined by
            the Secretary) is feasible.
        (d) Definitions.--In this section:
                (1) The term ``qualified countermeasure'' means a
            biomedical countermeasure--
                        (A) that is approved under section 505(a) of the
                    Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) or
                    licensed under section 351 of the Public Health Service
                    Act (42 U.S.C. 262), or that is approved under section
                    515 or cleared under section 510(k) of the Federal
                    Food, Drug, and Cosmetic Act (21 U.S.C. 360e and 360)
                    for use as such a countermeasure to a biological,
                    chemical, radiological, or nuclear agent identified as
                    a material threat under subsection (a); or
                        (B) with respect to which the Secretary, in
                    consultation with the Secretary of Health and Human
                    Services, makes a determination that sufficient and
                    satisfactory clinical experience or research data
                    (including data, if available, from preclinical and
                    clinical trials) exists to support a reasonable
                    conclusion that the product will, not later than 5
                    years after the date on which the Secretary identifies
                    the product under subsection (c)(1), qualify for such
                    approval or licensing for use as such a countermeasure.
                (2) The term ``biomedical countermeasure'' means a drug (as
            defined in section 201(g)(1) of the Federal Food, Drug, and
            Cosmetic Act (21 U.S.C. 321(g)(1))), device (as defined in
            section 201(h) of the Federal Food, Drug, and Cosmetic Act (21
            U.S.C. 321(h))), or biological product (as defined in section
            351(i) of the Public Health Service Act (42 U.S.C. 262(i)) that
            is--
                        (A) used to treat, identify, or prevent harm from
                    any biological, chemical, radiological, or nuclear
                    agent that may cause a military health emergency
                    affecting the Armed Forces; or
                        (B) used to treat, identify, or prevent harm from a
                    condition that may result in adverse health
                    consequences or death and may be caused by
                    administering a drug or biological product that is used
                    as described in subparagraph (A).
        (e) Funding.--(1) Of the amount authorized to be appropriated for
    the Department of Defense and available within the transfer authority
    established under section 1001 of this Act for fiscal year 2004 and for
    each fiscal year thereafter, such sums are authorized as may be
    necessary for the costs incurred by the Secretary in the procurement of
    countermeasures under this section, subject to paragraph (2).
        (2) Amounts authorized to be appropriated under paragraph (1) shall
    not be available to pay--
                (A) costs for the purchase of vaccines under procurement
            contracts entered into before January 1, 2003;
                (B) costs under new contracts, or costs of new obligations
            under contracts previously entered into, for procurement of a
            countermeasure after the date of a determination under
            subsection (c)(2)(D) that the countermeasure does have a
            significant commercial market other than as a biomedical
            countermeasure; or
                (C) administrative costs.

    SEC. 1033. AUTHORIZATION FOR USE OF MEDICAL PRODUCTS IN EMERGENCIES.

        (a) Use of Medical Products Authorized.--During the period in which
    a declaration of emergency under subsection (b) is in effect, the
    Secretary of Defense, in accordance with this section, may authorize
    the use on members of the Armed Forces of a drug or device intended
    solely for use in an actual or potential emergency.
        (b) Declaration of Emergency.--(1) A declaration of emergency
    referred to in subsection (a) is a declaration by the Secretary of
    Defense that there exists a military emergency, or a significant
    potential for a military emergency, involving a heightened risk to the
    Armed Forces of attack by one or more biological, chemical,
    radiological, or nuclear agents.
        (2) Subject to paragraph (3), the period during which a declaration
    of emergency under this subsection is in effect begins upon the making
    of the declaration and ends upon the first to occur of the following
    events:
                (A) The making of a determination by the Secretary that the
            military emergency, or the significant potential for a military
            emergency, has ceased to exist.
                (B) The expiration of the one-year period beginning on the
            date on which the declaration of emergency is made.
        (3) Before the expiration of the period during which a declaration
    of emergency is in effect, the Secretary may declare one or more
    extensions of that declaration of emergency. In such a case, the date
    on which the most recent extension was declared shall be treated for
    purposes of subsection (2)(B) as the date on which the declaration of
    emergency is made.
        (c) Criteria for Issuance of Authorization.--The Secretary, in
    consultation with the Secretary of Health and Human Services, may use
    the authority under subsection (a) with respect to a biomedical
    countermeasure only if the Secretary make a determination that--
                (1) an agent to which a declaration of emergency under
            subsection (b) relates can cause a serious or life-threatening
            disease or condition;
                (2) based on the totality of scientific evidence available
            to the Secretary, including data from adequate and well-
            controlled clinical trials, if available, it is reasonable to
            believe that--
                        (A) such countermeasure may be effective in
                    detecting, diagnosing, treating, or preventing such
                    disease or condition; or
                        (B) the known and potential benefits of such
                    countermeasure, when used to detect, diagnose, treat,
                    or prevent such disease or condition, outweigh the
                    known and potential risks of such countermeasure;
                (3) no adequate, approved, and available alternative exists
            to such countermeasure for detecting, diagnosing, treating, or
            preventing such disease or condition; and
                (4) such other criteria as the Secretary may by regulation
            prescribe are satisfied.
        (d) Scope of Authorization.--For each use of the authority under
    subsection (a), the Secretary, in consultation with the Secretary of
    Health and Human Services, shall--
                (1) specify each disease or condition that the biological
            countermeasure may be used to detect, diagnose, treat, or
            prevent; and
                (2) set forth each determination under subsection (c) with
            respect to that countermeasure and the basis for each such
            determination.
        (e) Condition.--In carrying out this section, the Secretary shall
    ensure compliance with section 1107 of title 10, United States Code,
    and section 731(a)(3) of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat.
    2071; 10 U.S.C. 1107 note).

                           Subtitle E--Other Matters

    SEC. 1041. CODIFICATION AND REVISION OF DEFENSE COUNTERINTELLIGENCE
                  POLYGRAPH PROGRAM AUTHORITY.

        (a) Codification.--(1) Chapter 21 of title 10, United States Code,
    is amended by inserting at the end of subchapter I (after the section
    added by section 805(b)(1) of this Act) the following new section:
    ``Sec. 427. Counterintelligence polygraph program
        ``(a) Authority for Program.--The Secretary of Defense may carry
    out a program for the administration of counterintelligence polygraph
    examinations to persons described in subsection (b). The program shall
    be based on Department of Defense Directive 5210.48, dated December 24,
    1984.
        ``(b) Persons Covered.--Except as provided in subsection (c), the
    following persons whose duties involve access to information that has
    been classified at the level of top secret or designated as being
    within a special access program under section 4.4(a) of Executive Order
    12958 (or a successor Executive order) are subject to this section:
                ``(1) Military and civilian personnel of the Department of
            Defense.
                ``(2) Personnel of defense contractors.
                ``(3) A person assigned or detailed to the Department of
            Defense.
                ``(4) An applicant for a position in the Department of
            Defense.
        ``(c) Exceptions From Coverage for Certain Intelligence Agencies
    and Functions.--This section does not apply to the following persons:
                ``(1) A person assigned or detailed to the Central
            Intelligence Agency or to an expert or consultant under a
            contract with the Central Intelligence Agency.
                ``(2) A person who is--
                        ``(A) employed by or assigned or detailed to the
                    National Security Agency;
                        ``(B) an expert or consultant under contract to the
                    National Security Agency;
                        ``(C) an employee of a contractor of the National
                    Security Agency; or
                        ``(D) a person applying for a position in the
                    National Security Agency.
                ``(3) A person assigned to a space where sensitive
            cryptographic information is produced, processed, or stored.
                ``(4) A person employed by, or assigned or detailed to, an
            office within the Department of Defense for the collection of
            specialized national foreign intelligence through
            reconnaissance programs or a contractor of such an office.
        ``(d) Oversight.--(1) The Secretary shall establish a process to
    monitor responsible and effective application of polygraphs within the
    Department of Defense.
        ``(2) The Secretary shall make information on the use of polygraphs
    within the Department of Defense available to the congressional defense
    committees.
        ``(e) Polygraph Research Program.--The Secretary of Defense shall
    carry out a continuing research program to support the polygraph
    activities of the Department of Defense. The program shall include--
                ``(1) an on-going evaluation of the validity of polygraph
            techniques used by the Department;
                ``(2) research on polygraph countermeasures and anti-
            countermeasures; and
                ``(3) developmental research on polygraph techniques,
            instrumentation, and analytic methods.''.
        (2) The table of sections at the beginning of subchapter I of such
    chapter is amended by adding at the end (after the item added by
    section 805(b)(2) of this Act) the following new item:

    ``427. Counterintelligence polygraph program.''.
        (b) Conforming Repeal.--Section 1121 of the National Defense
    Authorization Act for Fiscal Years 1988 and 1989 (10 U.S.C. 113 note),
    is repealed.
        (c) Effective Date.--The amendments made by this section shall take
    effect on October 1, 2003.

    SEC. 1042. CODIFICATION AND REVISION OF LIMITATION ON MODIFICATION OF
                  MAJOR ITEMS OF EQUIPMENT SCHEDULED FOR RETIREMENT OR
                  DISPOSAL.

        (a) In General.--(1) Chapter 134 of title 10, United States Code,
    is amended by inserting after section 2244 the following new section:
    ``Sec. 2244a. Equipment scheduled for retirement or disposal:
                  limitation on expenditures for modifications
        ``(a) Prohibition.--Except as otherwise provided in this section,
    the Secretary of a military department may not carry out a significant
    modification of an aircraft, weapon, vessel, or other item of equipment
    that the Secretary plans to retire or otherwise dispose of within five
    years after the date on which the modification, if carried out, would
    be completed.
        ``(b) Significant Modifications Defined.--For purposes of this
    section, a significant modification is any modification for which the
    cost is in an amount equal to or greater than $1,000,000.
        ``(c) Exception for Safety Modifications.--The prohibition in
    subsection (a) does not apply to a safety modification.
        ``(d) Waiver Authority.--The Secretary concerned may waive the
    prohibition in subsection (a) in the case of any modification otherwise
    subject to that subsection if the Secretary determines that carrying
    out the modification is in the national security interest of the United
    States. Whenever the Secretary issues such a waiver, the Secretary
    shall notify the congressional defense committees in writing.''.
        (2) The table of sections at the beginning of subchapter I of such
    chapter is amended by inserting after the item relating to section 2244
    the following new item:

    ``2244a. Equipment scheduled for retirement or disposal: limitation on
                                expenditures for modifications.''.
        (b) Conforming Repeal.--Section 8053 of the Department of Defense
    Appropriations Act, 1998 (10 U.S.C. 2241 note), is repealed.

    SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF TITLE 10, UNITED
                  STATES CODE.

        (a) General Definitions.--Section 101(a) of title 10, United States
    Code, is amended by adding at the end the following new paragraphs:
                ``(16) 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.
                ``(17) The term `base closure law' means the following:
                        ``(A) Section 2687 of this title.
                        ``(B) 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).
                        ``(C) Title II of the Defense Authorization
                    Amendments and Base Closure and Realignment Act (Public
                    Law 100-526; 10 U.S.C. 2687 note).''.
        (b) References to Congressional Defense Committees.--Title 10,
    United States Code, is further amended as follows:
                (1) Section 135(e) is amended--
                        (A) by striking ``(1)'';
                        (B) by striking ``each congressional committee
                    specified in paragraph (2)'' and inserting ``each of
                    the congressional defense committees''; and
                        (C) by striking paragraph (2).
                (2) Section 153(c) is amended--
                        (A) by striking ``committees of Congress named in
                    paragraph (2)'' and inserting ``congressional defense
                    committees'';
                        (B) by striking paragraph (2); and
                        (C) by designating the second sentence of paragraph
                    (1) as paragraph (2) and in that paragraph (as so
                    designated) by striking ``The report'' and inserting
                    ``Each report under paragraph (1)''.
                (3) Section 181(d)(2) is amended--
                        (A) by striking ``subsection:'' and all that
                    follows through ``oversight'' and inserting
                    ``subsection, the term `oversight''; and
                        (B) by striking subparagraph (B).
                (4) Section 224 is amended by striking subsection (f).
                (5) Section 228(e) is amended--
                        (A) by striking ``Definitions'' and all that
                    follows through ``(1) The term'' and inserting ``O&M
                    Budget Activity Defined.--In this section, the term'';
                    and
                        (B) by striking paragraph (2).
                (6) Section 229 is amended by striking subsection (f).
                (7) Section 1107(f)(4) is amended by striking subparagraph
            (C).
                (8) Section 2216(j) is amended by striking paragraph (3).
                (9) Section 2218(l) is amended--
                        (A) by striking paragraph (4); and
                        (B) by redesignating paragraph (5) as paragraph
                    (4).
                (10) Section 2306b(l) is amended--
                        (A) by striking paragraph (9); and
                        (B) by redesignating paragraph (10) as paragraph
                    (9).
                (11) Section 2308(e)(2) is amended--
                        (A) by striking subparagraph (A); and
                        (B) by redesignating subparagraphs (B) and (C) as
                    subparagraphs (A) and (B), respectively.
                (12) Section 2366(e) is amended--
                        (A) by striking paragraph (7); and
                        (B) by redesignating paragraphs (8) and (9) as
                    paragraphs (7) and (8), respectively.
                (13) Section 2399(h) is amended--
                        (A) by striking ``Definitions.--'' and all that
                    follows through ``(1) The term'' and inserting
                    ``Operational Test and Evaluation Defined.--In this
                    section, the term'';
                        (B) by striking paragraph (2);
                        (C) by redesignating subparagraphs (A), (B), and
                    (C) as paragraphs (1), (2), and (3), respectively; and
                        (D) by realigning those paragraphs (as so
                    redesignated) so as to be indented two ems from the
                    left margin.
                (14) Section 2667(h) is amended by striking paragraph (1).
                (15) Section 2688(e)(1) is amended by striking ``the
            Committee on'' the first place it appears and all that follows
            through ``House of Representatives'' and inserting ``the
            congressional defense committees''.
                (16) Section 2801(c)(4) is amended by striking ``the
            Committee on'' the first place it appears and all that follows
            through ``House of Representatives'' and inserting ``the
            congressional defense committees''.
        (c) References to Base Closure Laws.--Title 10, United States Code,
    is further amended as follows:
                (1) Section 2306c(h) is amended by striking ``Additional''
            and all that follows through ``(2) The term'' and inserting
            ``Military Installation Defined.--In this section, the term''.
                (2) Section 2490a(f) is amended--
                        (A) by striking ``Definitions.--'' and all that
                    follows through ``(1) The term'' and inserting
                    ``Nonappropriated Fund Instrumentality Defined.--In
                    this section, the term''; and
                        (B) by striking paragraph (2).
                (3) Section 2667(h), as amended by subsection (b)(13), is
            further amended by striking ``section:'' and all that follows
            through ``(3) The term'' and inserting ``section, the term''.
                (4) Section 2696(e) is amended--
                        (A) by striking paragraphs (1), (2), (3), and (4)
                    and inserting the following:
                ``(1) A base closure law.''; and
                        (B) by redesignating paragraph (6) as paragraph
                    (2).
                (5) Section 2705 is amended by striking subsection (h).
                (6) Section 2871 is amended by striking paragraph (2).

    SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUCTION AUTHORIZATION
                  REQUEST IN ANNUAL DEFENSE AUTHORIZATION REQUEST.

        (a) Inclusion of Military Construction Request.--Section 113a(b) of
    title 10, United States Code, is amended--
                (1) by redesignating paragraph (3) as paragraph (4); and
                (2) by inserting after paragraph (2) the following new
            paragraph (3):
                ``(3) Authority to carry out military construction
            projects, as required by section 2802 of this title.''.
        (b) Repeal of Separate Transmission of Request.--(1) Section 2859
    of such title is repealed.
        (2) The table of sections at the beginning of subchapter III of
    chapter 169 of such title is amended by striking the item relating to
    section 2859.

    SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS.

        (a) Title 10, United States Code.--Title 10, United States Code, is
    amended as follows:
                (1) The tables of chapters at the beginning of subtitle A,
            and at the beginning of part IV of subtitle A, are amended by
            striking ``2701'' in the item relating to chapter 160 and
            inserting ``2700''.
                (2) Section 101(a)(9)(D) is amended by striking
            ``Transportation'' and inserting ``Homeland Security''.
                (3) Section 2002(a)(2) is amended by striking ``Foreign
            Service Institute'' and inserting ``George P. Schultz National
            Foreign Affairs Training Center''.
                (4)(A) Section 2248 is repealed.
                (B) The table of sections at the beginning of chapter 134
            is amended by striking the item relating to section 2248.
                (5) Section 2305a(c) is amended by striking ``the Brooks
            Architect-Engineers Act (40 U.S.C. 541 et seq.)'' and inserting
            ``chapter 11 of title 40''.
                (6) Section 2432(h)(1) is amended by inserting ``program''
            in the first sentence after ``for such''.
                (7) Section 7305(d) is amended by inserting ``such'' before
            ``title III''.
        (b) Title 37, United States Code.--Title 37, United States Code, is
    amended as follows:
                (1) Section 323(a) is amended by striking ``1 year'' in
            paragraphs (1) and (2) and inserting ``one year''.
                (2) Section 402(b) is amended--
                        (A) by striking paragraph (1); and
                        (B) in paragraph (2), by striking ``On and after
                    January 1, 2002, the'' and inserting ``The''.
        (c) Floyd D. Spence National Defense Authorizaton Act for Fiscal
    Year 2001.--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 1308(c) (22 U.S.C. 5959) is amended--
                        (A) by redesignating paragraph (7) as paragraph
                    (8); and
                        (B) by redesignating the second paragraph (6) as
                    paragraph (7).
                (2) Section 814 (10 U.S.C. 1412 note) is amended in
            subsection (d)(1) by striking ``the Clinger-Cohen Act of 1996
            (divisions D and E of Public Law 104-106)'' and inserting
            ``subtitle III of title 40, United States Code''.
        (d) National Defense Authorization Act for Fiscal Year 2000.--
    Section 1305 of the National Defense Authorization Act for Fiscal Year
    2000 (Public Law 106-65; 22 U.S.C. 5952 note) is amended by striking
    the second period at the end.
        (e) Strom Thurmond National Defense Authorization Act for Fiscal
    Year 1999.--Section 819(a) of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat.
    2089) is amended by striking ``section 201(c) of the Federal Property
    and Administrative Services Act of 1949 (40 U.S.C. 481(c)),'' and
    inserting ``section 503 of title 40, United States Code,''.
        (f) National Defense Authorization Act for Fiscal Year 1997.--
    Section 1084(e) of the National Defense Authorization Act for Fiscal
    Year 1997 (Public Law 104-201; 110 Stat. 2675) is amended by striking
    ``98-515'' and inserting ``98-525''. The amendment made by the
    preceding sentence shall take effect as if included in Public Law 104-
    201.
        (g) Federal Acquisition Streamlining Act of 1994.--Subsection (d)
    of section 1004 of the Federal Acquisition Streamlining Act of 1994
    (Public Law 103-355; 108 Stat, 3253) is amended by striking ``under--''
    and all that follows through the end of paragraph (2) and inserting
    ``under chapter 11 of title 40, United States Code.''.
        (h) Armed Forces Retirement Home Act of 1991.--Section
    1520(b)(1)(C) of the Armed Forces Retirement Home Act of 1991 (24
    U.S.C. 420(b)(1)(C)) is amended by inserting ``Armed Forces'' before
    ``Retirement Home Trust Fund''.

    SEC. 1046. AUTHORITY TO PROVIDE LIVING QUARTERS FOR CERTAIN STUDENTS IN
                  COOPERATIVE AND SUMMER EDUCATION PROGRAMS OF THE NATIONAL
                  SECURITY AGENCY.

        Section 2195 of title 10, United States Code, is amended by adding
    at the end the following new subsection:
        ``(d)(1) The Director of the National Security Agency may provide a
    qualifying employee of a defense laboratory of that Agency with living
    quarters at no charge, or at a rate or charge prescribed by the
    Director by regulation, without regard to section 5911(c) of title 5.
        ``(2) In this subsection, the term `qualifying employee' means a
    student who is employed at the National Security Agency under--
                ``(A) a Student Educational Employment Program of the
            Agency conducted under this section or any other provision of
            law; or
                ``(B) a similar cooperative or summer education program of
            the Agency that meets the criteria for Federal cooperative or
            summer education programs prescribed by the Office of Personnel
            Management.''.

    SEC. 1047. USE OF DRUG INTERDICTION AND COUNTER-DRUG FUNDS TO SUPPORT
                  ACTIVITIES OF THE GOVERNMENT OF COLOMBIA.

        (a) Authority to Provide Assistance.--During fiscal years 2004 and
    2005, the Secretary of Defense may use funds made available to the
    Department of Defense for drug interdiction and counter-drug activities
    to provide assistance to the Government of Colombia--
                (1) to support a unified campaign against narcotics
            trafficking in Colombia;
                (2) to support a unified campaign against activities by
            designated terrorist organizations, such as the Revolutionary
            Armed Forces of Colombia (FARC), the National Liberation Army
            (ELN), and the United Self-Defense Forces of Colombia (AUC);
            and
                (3) to take actions to protect human health and welfare in
            emergency circumstances, including undertaking rescue
            operations.
        (b) Relation to Other Assistance Authority.--The authority provided
    by subsection (a) is in addition to other provisions of law authorizing
    the provision of assistance to the Government of Colombia.

    SEC. 1048. AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUPPORT TO LAW
                  ENFORCEMENT AGENCIES CONDUCTING COUNTER-TERRORISM
                  ACTIVITIES.

        (a) Authority.--A joint task force of the Department of Defense
    that provides support to law enforcement agencies conducting counter-
    drug activities may also provide, consistent with all applicable laws
    and regulations, support to law enforcement agencies conducting
    counter-terrorism activities.
        (b) Conditions.--Any support provided under subsection (a) may only
    be provided in the geographic area of responsibility of the joint task
    force.

    SEC. 1049. USE OF NATIONAL DRIVER REGISTER FOR PERSONNEL SECURITY
                  INVESTIGATIONS AND DETERMINATIONS.

        Section 30305(b) of title 49, United States Code, is amended--
                (1) by redesignating paragraphs (9) through (11) as
            paragraphs (10) through (12), respectively; and
                (2) by inserting after paragraph (8) the following new
            paragraph:
        ``(9) An individual who is being investigated for--
                ``(A) eligibility for access to a particular level of
            classified information for purposes of Executive Order No.
            12968, or any successor Executive order; or
                ``(B) Federal employment under authority of Executive Order
            No. 10450, or any successor Executive order,
    may request the chief driver licensing official of a State to provide
    information about the individual pursuant to subsection (a) of this
    section to a Federal department or agency that is authorized to
    investigate the individual for the purpose of assisting in the
    determination of the eligibility of the individual for access to
    classified information or for Federal employment. A Federal department
    or agency that receives such information about an individual may use it
    in accordance with applicable law. Information may not be obtained from
    the Register under this paragraph if the information was entered in the
    Register more than 3 years before the request, unless the information
    is about a revocation or suspension still in effect on the date of the
    request.''.

    SEC. 1050. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL SECURITY
                  AGENCY.

        The National Security Agency Act of 1959 (50 U.S.C. 402 note) is
    amended by adding at the end the following new section:
        ``Sec. 19. (a) Exemption of Certain Operational Files From Search,
    Review, Publication, or Disclosure.--(1) The Director of the National
    Security Agency, with the coordination of the Director of Central
    Intelligence, may exempt operational files of the National Security
    Agency from the provisions of section 552 of title 5, United States
    Code, which require publication, disclosure, search, or review in
    connection therewith.
        ``(2)(A) Subject to subparagraph (B), for the purposes of this
    section, the term `operational files' means files of the National
    Security Agency that document the means by which foreign intelligence
    or counterintelligence is collected through technical systems.
        ``(B) Files that contain disseminated intelligence are not
    operational files.
        ``(3) Notwithstanding paragraph (1), exempted operational files
    shall continue to be subject to search and review for information
    concerning--
                ``(A) United States citizens or aliens lawfully admitted
            for permanent residence who have requested information on
            themselves pursuant to the provisions of section 552 of title 5
            or section 552a of title 5, United States Code;
                ``(B) any special activity the existence of which is not
            exempt from disclosure under the provisions of section 552 of
            title 5, United States Code; or
                ``(C) the specific subject matter of an investigation by
            any of the following for any impropriety, or violation of law,
            Executive order, or Presidential directive, in the conduct of
            an intelligence activity:
                        ``(i) The Permanent Select Committee on
                    Intelligence of the House of Representatives.
                        ``(ii) The Select Committee on Intelligence of the
                    Senate.
                        ``(iii) The Intelligence Oversight Board.
                        ``(iv) The Department of Justice.
                        ``(v) The Office of General Counsel of the National
                    Security Agency.
                        ``(vi) The Office of the Director of the National
                    Security Agency.
        ``(4)(A) Files that are not exempted under paragraph (1) which
    contain information derived or disseminated from exempted operational
    files shall be subject to search and review.
        ``(B) The inclusion of information from exempted operational files
    in files that are not exempted under paragraph (1) shall not affect the
    exemption under paragraph (1) of the originating operational files from
    search, review, publication, or disclosure.
        ``(C) The declassification of some of the information contained in
    exempted operational files shall not affect the status of the
    operational file as being exempt from search, review, publication, or
    disclosure.
        ``(D) Records from exempted operational files which have been
    disseminated to and referenced in files that are not exempted under
    paragraph (1) and which have been returned to exempted operational
    files for sole retention shall be subject to search and review.
        ``(5) The provisions of paragraph (1) may not be superseded except
    by a provision of law which is enacted after the date of the enactment
    of this section, and which specifically cites and repeals or modifies
    its provisions.
        ``(6)(A) Except as provided in subparagraph (B), whenever any
    person who has requested agency records under section 552 of title 5,
    United States Code, alleges that the National Security Agency has
    withheld records improperly because of failure to comply with any
    provision of this section, judicial review shall be available under the
    terms set forth in section 552(a)(4)(B) of title 5, United States Code.
        ``(B) Judicial review shall not be available in the manner provided
    for under subparagraph (A) as follows:
                ``(i) In any case in which information specifically
            authorized under criteria established by an Executive order to
            be kept secret in the interests of national defense or foreign
            relations which is filed with, or produced for, the court by
            the National Security Agency, such information shall be
            examined ex parte, in camera by the court.
                ``(ii) The court shall, to the fullest extent practicable,
            determine the issues of fact based on sworn written submissions
            of the parties.
                ``(iii) When a complainant alleges that requested records
            are improperly withheld because of improper placement solely in
            exempted operational files, the complainant shall support such
            allegation with a sworn written submission based upon personal
            knowledge or otherwise admissible evidence.
                ``(iv)(I) When a complainant alleges that requested records
            were improperly withheld because of improper exemption of
            operational files, the National Security Agency shall meet its
            burden under section 552(a)(4)(B) of title 5, United States
            Code, by demonstrating to the court by sworn written submission
            that exempted operational files likely to contain responsive
            records currently perform the functions set forth in paragraph
            (2).
                ``(II) The court may not order the National Security Agency
            to review the content of any exempted operational file or files
            in order to make the demonstration required under subclause
            (I), unless the complainant disputes the National Security
            Agency's showing with a sworn written submission based on
            personal knowledge or otherwise admissible evidence.
                ``(v) In proceedings under clauses (iii) and (iv), the
            parties may not obtain discovery pursuant to rules 26 through
            36 of the Federal Rules of Civil Procedure, except that
            requests for admission may be made pursuant to rules 26 and 36.
                ``(vi) If the court finds under this paragraph that the
            National Security Agency has improperly withheld requested
            records because of failure to comply with any provision of this
            subsection, the court shall order the Agency to search and
            review the appropriate exempted operational file or files for
            the requested records and make such records, or portions
            thereof, available in accordance with the provisions of section
            552 of title 5, United States Code, and such order shall be the
            exclusive remedy for failure to comply with this subsection.
                ``(vii) If at any time following the filing of a complaint
            pursuant to this paragraph the National Security Agency agrees
            to search the appropriate exempted operational file or files
            for the requested records, the court shall dismiss the claim
            based upon such complaint.
                ``(viii) Any information filed with, or produced for the
            court pursuant to clauses (i) and (iv) shall be coordinated
            with the Director of Central Intelligence prior to submission
            to the court.
        ``(b) Decennial Review of Exempted Operational Files.--(1) Not less
    than once every 10 years, the Director of the National Security Agency
    and the Director of Central Intelligence shall review the exemptions in
    force under subsection (a)(1) to determine whether such exemptions may
    be removed from the category of exempted files or any portion thereof.
    The Director of Central Intelligence must approve any determination to
    remove such exemptions.
        ``(2) The review required by paragraph (1) shall include
    consideration of the historical value or other public interest in the
    subject matter of the particular category of files or portions thereof
    and the potential for declassifying a significant part of the
    information contained therein.
        ``(3) A complainant that alleges that the National Security Agency
    has improperly withheld records because of failure to comply with this
    subsection may seek judicial review in the district court of the United
    States of the district in which any of the parties reside, or in the
    District of Columbia. In such a proceeding, the court's review shall be
    limited to determining the following:
                ``(A) Whether the National Security Agency has conducted
            the review required by paragraph (1) before the expiration of
            the 10-year period beginning on the date of the enactment of
            this section or before the expiration of the 10-year period
            beginning on the date of the most recent review.
                ``(B) Whether the National Security Agency, in fact,
            considered the criteria set forth in paragraph (2) in
            conducting the required review.''.

    SEC. 1051. ASSISTANCE FOR STUDY OF FEASIBILITY OF BIENNIAL UNITED
                  STATES INTERNATIONAL AIR TRADE SHOW AND FOR INITIAL
                  IMPLEMENTATION.

        (a) Assistance for Feasibility Study.--(1) The Secretary of Defense
    shall provide assistance to the nonprofit organization named United
    States Air and Trade Show Inc. for expenses of a study by that
    organization of the feasibility of the establishment and operation of a
    biennial United States international air trade show.
        (2) The Secretary shall provide for the organization specified in
    paragraph (1) to submit to the Secretary a report containing the
    results of the study not later than September 30, 2004. The Secretary
    shall promptly submit the report to Congress, together with such
    comments on the report as the Secretary considers appropriate.
        (b) Assistance for Implementation.--If the organization conducting
    the study under subsection (a) determines that the establishment and
    operation of such an air show is feasible and should be implemented,
    the Secretary shall provide assistance to that organization for the
    initial expenses of implementing such an air show.
        (c) Amount of Assistance.--The amount of assistance provided by the
    Secretary under subsections (a) and (b)--
                (1) may not exceed a total of $1,000,000, to be derived
            from amounts available for operation and maintenance for the
            Air Force for fiscal year 2004; and
                (2) may not exceed one-half of the cost of the study and
            may not exceed one-half the cost of such initial
            implementation.

    SEC. 1052. CONTINUATION OF REASONABLE ACCESS TO MILITARY INSTALLATIONS
                  FOR PERSONAL COMMERCIAL SOLICITATION.

        (a) Continued Access to Members.--Section 2679 of title 10, United
    States Code, is amended--
                (1) in subsection (a), by inserting ``Access by
            Representatives of Veterans' Organizations.--(1)'' before
            ``Upon certification'';
                (2) by redesignating subsections (b) and (c) as paragraphs
            (2) and (3), respectively;
                (3) in paragraph (2), as so redesignated, by striking
            ``subsection (a)'' and inserting ``paragraph (1)'';
                (4) in paragraph (3), as so redesignated, by striking
            ``section'' and inserting ``subsection'';
                (5) by redesignating subsection (d) as subsection (c); and
                (6) by inserting before such subsection the following new
            subsection (b):
        ``(b) Access for Personal Commercial Solicitation.--An amendment or
    other revision to a Department of Defense directive relating to access
    to military installations for the purpose of conducting limited
    personal commercial solicitation shall not take effect until the end of
    the 90-day period beginning on the date the Secretary of Defense
    submits to Congress notice of the amendment or revision and the reasons
    therefor.''.
        (b) Clerical Amendments.--(1) The heading of such section is
    amended to read as follows:
    ``Sec. 2679. Access to and use of space and equipment at military
                  installations: representatives of veterans' organizations
                  and other persons''.
        (2) The item relating to such section in the table of sections at
    the beginning of chapter 159 of such title is amended to read as
    follows:

    ``2679. Access to and use of space and equipment at military
                                installations: representatives of veterans'
                                organizations and other persons.''.

    SEC. 1053. COMMISSION ON NUCLEAR STRATEGY OF THE UNITED STATES.

        (a) Establishment of Commission.--
                (1) Establishment.--There is hereby established a
            commission to be known as the ``Commission on Nuclear Strategy
            of the United States'' (hereinafter this this section referred
            to as the ``Commission''). The Secretary of Defense, in
            consultation with the Secretary of Energy, shall enter into a
            contract with a federally funded research and development
            center to provide for the organization, management, and suport
            of the Commission.
                (2) Composition.--(A) The Commission shall be composed of
            12 members appointed by the Secretary of Defense. In selecting
            individuals for appointment to the Commission, the Secretary of
            Defense shall consult with the chairman and ranking minority
            member of the Committee on Armed Services of the Senate and the
            chairman and ranking minority member of the Committee on Armed
            Services of the House of Representatives.
                (B) Members of the Commission shall be appointed from among
            private United States citizens with knowledge and expertise in
            the political, military, operational, and technical aspects of
            nuclear strategy.
                (3) Chairman of the commission.--The Secretary of Defense
            shall designate one of the members of the Commission to serve
            as chairman of the Commission.
                (4) Period of appointment; vacancies.--Members shall be
            appointed for the life of the Commission. Any vacancy in the
            Commission shall be filled in the same manner as the original
            appointment.
                (5) Security clearances.--All members of the Commission
            shall hold appropriate security clearances.
        (b) Duties of Commission.--
                (1) Review of nuclear strategy.--The Commission shall
            consider all matters of policy, force structure, nuclear
            stockpile stewardship, estimates of threats and force
            requirements, and any other issue the Commission may consider
            necessary in order to assess and make recommendations about
            current United States nuclear strategy as envisioned in the
            National Security Strategy of the United States and the Nuclear
            Posture Review, as well as possible alternative future
            strategies.
                (2) Assessment of range of nuclear strategies.--The
            Commission shall assess possible future nuclear strategies for
            the United States that could be pursued over the next 20 years.
                (3) Relations with russia.--The Commission shall give
            special attention to assessing how the United States goal of
            strengthening partnership with Russia may be advanced or
            adversely affected by each of the possible nuclear strategies
            considered. The Commission shall also assess how relations with
            China, and the overall global security environment, may be
            affected by each of those possible nuclear strategies.
                (4) Other matters to be included.--For each of the possible
            nuclear strategies considered, the Commission shall include in
            its report under subsection (c)(1), at a minimum, the
            following:
                        (A) A discussion of the policy defining the
                    deterrence and military-political objectives of the
                    United States against potential adversaries.
                        (B) A discussion of the military requirements for
                    United States forces, the force structure and
                    capabilities necessary to meet those requirements, and
                    how they relate to the achievement of the objectives
                    identified under subparagraph (A).
                        (C) Appropriate quantitative and qualitative
                    analysis, including force-on-force exchange modeling,
                    to calculate the effectiveness of the strategy under
                    various scenario conditions, including scenarios of
                    strategic and tactical surprise.
                        (D) An assessment of the role of missile defenses
                    in the strategy, the dependence of the strategy on
                    missile defense effectiveness, and the effect of
                    missile defenses on the threat environment.
                        (E) An assessment of the implications of the
                    proliferation of missiles and weapons of mass
                    destruction, the proliferation of underground
                    facilities and mobile launch platforms, and China's
                    modernization of strategic forces.
                        (F) An assessment of the implications of
                    asymmetries between the United States and Russia,
                    including doctrine, nonstrategic nuclear weapons, and
                    active and passive defenses.
                        (G) An assessment of strategies or options for
                    dealing with nuclear capable nations that may provide
                    nuclear weapons to terrorist or transnational groups.
                        (H) An assessment of the contribution of non-
                    proliferation strategies and programs to the overall
                    security of the United States and how those strategies
                    and programs may affect the overall requirements of
                    future nuclear strategy.
                        (I) An assessment of the effect of the strategy on
                    the nuclear programs of emerging nuclear weapons
                    states, including North Korea, Iran, Pakistan, and
                    India.
                (5) Recommendations.--The Commission shall include in its
            report recommendations for any continuities or changes in
            nuclear strategy it believes should be taken to enhance the
            national security of the United States.
                (6) Cooperation from government officials.--(A) In carrying
            out its duties, the Commission shall receive the full and
            timely cooperation of the Secretary of Defense, the Secretary
            of Energy, and any other United States Government official in
            providing the Commission with analyses, briefings, and other
            information necessary for the fulfillment of its
            responsibilities.
                (B) The Secretary of Energy and the Secretary of Defense
            shall each designate at least one officer or employee of the
            Department of Energy and the Department of Defense,
            respectively, to serve as a liaison officer between the
            department and the Commission. The Director of Central
            Intelligence may designate at least one officer or employee of
            the Central Intelligence Agency to serve as a liaison officer
            between that agency and the Commission.
        (c) Reports.--
                (1) Commission report.--The Commission shall submit to the
            Secretary of Defense and to the Committees on Armed Services of
            the Senate and House of Representatives a report on the
            Commission's findings and conclusions not later than 18 months
            after the date of its first meeting.
                (2) Secretary of defense response.--Not later than one year
            after the date on which the Commission submits its report under
            paragraph (1), the Secretary of Defense shall submit to
            Congress a report--
                        (A) commenting on the Commission's findings and
                    conclusions; and
                        (B) explaining what actions, if any, the Secretary
                    intends to take to implement the recommendations of the
                    Commission and, with respect to each such
                    recommendation, the Secretary's reasons for
                    implementing, or not implementing, the recommendation.
        (d) Hearings and Procedures.--
                (1) Hearings.--The Commission may, for the purpose of
            carrying out the purposes of this section, hold hearings and
            take testimony.
                (2) Procedures.--The federally funded research and
            development center referred to in subsection (a)(1) shall be
            responsible for establishing appropriate procedures for the
            Commission.
                (3) Detail of government employees.--Upon request of the
            chairman of the Commission, the head of any Federal department
            or agency may detail, on a nonreimbursable basis, any personnel
            of that department or agency to the Commission to assist it in
            carrying out its duties.
        (e) Funding.--Funds for activities of the Commission shall be
    provided from amounts appropriated for the Department of Defense.
        (f) Termination of Commission.--The Commission shall terminate 60
    days after the date of the submission of its report under subsection
    (c)(1).
        (g) Implementation.--
                (1) FFRDC contract.--The Secretary of Defense shall enter
            into the contract required under subsection (a)(1) not later
            than 60 days after the date of the enactment of this Act.
                (2) First meeting.--The Commission shall convene its first
            meeting not later than 60 days after the date as of which all
            members of the Commission have been appointed.

    SEC. 1054. EXTENSION OF COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

        Section 1605(f) of the National Defense Authorization Act for
    Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by striking
    ``September 30, 2004'' and inserting ``September 30, 2008''.

    SEC. 1055. ASSIGNMENT OF MEMBERS TO ASSIST BUREAU OF BORDER SECURITY
                  AND BUREAU OF CITIZENSHIP AND IMMIGRATION SERVICES OF THE
                  DEPARTMENT OF HOMELAND SECURITY.

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

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

    SEC. 1056. REPORT CONCERNING STRATEGIC NUCLEAR WARHEADS DISMANTLED
                  PURSUANT TO THE TREATY BETWEEN THE UNITED STATES OF
                  AMERICA AND THE RUSSIAN FEDERATION ON STRATEGIC OFFENSIVE
                  REDUCTIONS.

        Not later than 60 days after the exchange of instruments of
    ratification of the Treaty Between the United States of America and the
    Russian Federation on Strategic Offensive Reductions or 60 days after
    the date of the enactment of this Act, whichever occurs last, and on
    February 15 of each subsequent year, the President shall submit to
    Congress a report concerning any strategic nuclear warheads dismantled
    within the boundaries of the treaty during the preceding calendar year
    and any such warheads to be dismantled in that calendar year, pursuant
    to such treaty. During the one-year period beginning on the date of the
    exchange of instruments of ratification of such treaty, any such report
    shall not include information concerning any dismantling of warheads
    during the preceding calendar year.

    SEC. 1057. PILOT PROGRAM TO IMPROVE USE OF AIR FORCE AND AIR NATIONAL
                  GUARD MODULAR AIRBORNE FIRE-FIGHTING SYSTEMS TO FIGHT
                  WILDFIRES.

        (a) Temporary Exception to Economy Act Requirement.--
    Notwithstanding section 1535(a)(4) of title 31, United States Code, the
    Secretary of the Interior and the Secretary of Agriculture may procure
    the services of military aircraft (and personnel of the Armed Forces to
    operate and maintain such aircraft) of Air Force and Air National Guard
    Modular Airborne Fire-Fighting Systems units in California, Colorado,
    North Carolina, and Wyoming to fight a wildfire without first comparing
    the cost and convenience of procuring such services from such source to
    the cost of procuring the same services from a commercial enterprise.
        (b) Duration of Pilot Program.--The authority provided by
    subsection (a) expires December 31, 2005.
        (c) Reporting Requirement.--Not later than February 1, 2005, the
    Secretary of the Interior and the Secretary of Agriculture shall submit
    to Congress a report describing--
                (1) the use of the exception provided in subsection (a) to
            expedite the procurement of the services of Air Force and Air
            National Guard Modular Airborne Fire-Fighting Systems units to
            fight wildfires; and
                (2) the ability of these units in responding to wildfires
            in a timely and effective manner.

    SEC. 1058. STUDY ON FEASIBILITY OF USE OF SMALL BUSINESSES, MINORITY-
                  OWNED BUSINESSES, AND WOMEN-OWNED BUSINESSES IN EFFORTS
                  TO REBUILD IRAQ.

        The Secretary of Defense shall commission a study of the
    feasibility of using small businesses, minority-owned businesses, and
    women-owned businesses in the United States' efforts to rebuild Iraq.
    The study shall include the development of outreach procedures to
    provide, to small businesses, minority-owned businesses, and women-
    owned businesses, information on participating in rebuilding Iraq.

    SEC. 1059. SENSE OF CONGRESS REGARDING CONTINUATION OF MISSION AND
                  FUNCTIONS OF ARMY PEACEKEEPING INSTITUTE.

        It is the sense of Congress that the Secretary of Defense should
    maintain the functions and missions of the Army Peacekeeping Institute
    at the Army War College in Carlisle, Pennsylvania, or within a joint
    entity of the Department of Defense, such as the National Defense
    University or the Joint Forces Command, to ensure that members of the
    Armed Forces continue to study the strategic challenges and uses of
    peacekeeping missions and to prepare the Armed Forces for conducting
    such missions.

    SEC. 1060. ASSESSMENT OF EFFECTS OF SPECIFIED STATUTORY LIMITATIONS ON
                  THE GRANTING OF SECURITY CLEARANCES.

        Not later than 60 days 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 an assessment of the effects of the provisions of
    section 986 of title 10, United States Code (relating to limitations on
    security clearances), on the granting (or renewal) of security
    clearances for Department of Defense personnel and defense contractor
    personnel. The assessment shall review the affects of the
    disqualification factors specified in subsection (c) of that section
    and shall include such recommendations for legislation or
    administrative steps as the Secretary considers necessary.

               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

         Subtitle A--Department of Defense Civilian Personnel Generally

    SEC. 1101. MODIFICATION OF THE OVERTIME PAY CAP.

        Section 5542(a)(2) of title 5, United States Code, is amended--
                (1) by inserting ``the greater of'' before ``one and one-
            half''; and
                (2) by inserting ``or the hourly rate of basic pay of the
            employee'' after ``law)'' the second place it appears.

    SEC. 1102. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN EMPLOYEES.

        (a) In General.--Subsection (b) of section 6323 of title 5, United
    States Code, is amended--
                (1) in paragraph (2)--
                        (A) by redesignating subparagraphs (A) and (B) as
                    clauses (i) and (ii), respectively, and at the end of
                    clause (ii), as so redesignated, by inserting ``or'';
                    and
                        (B) by inserting ``(A)'' after ``(2)''; and
                (2) by inserting the following before the text beginning
            with ``is entitled'':
                ``(B) performs full-time military service as a result of a
            call or order to active duty in support of a contingency
            operation as defined in section 101(a)(13) of title 10;''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    apply to military service performed on or after the date of the
    enactment of this Act.

    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. INCREASE IN ANNUAL STUDENT LOAN REPAYMENT AUTHORITY.

        Section 5379(b)(2)(A) of title 5, United States Code, is amended by
    striking ``$6,000'' and inserting ``$10,000''.

    SEC. 1105. AUTHORIZATION FOR CABINET SECRETARIES, SECRETARIES OF
                  MILITARY DEPARTMENTS, AND HEADS OF EXECUTIVE AGENCIES TO
                  BE PAID ON A BIWEEKLY BASIS.

        (a) Authorization.--Section 5504 of title 5, United States Code, is
    amended--
                (1) by redesignating subsection (c) as subsection (d);
                (2) by striking the last sentence of both subsection (a)
            and subsection (b); and
                (3) by inserting after subsection (b) the following:
        ``(c) For the purposes of this section:
                ``(1) The term `employee' means--
                        ``(A) an employee in or under an Executive agency;
                        ``(B) an employee in or under the Office of the
                    Architect of the Capitol, the Botanic Garden, and the
                    Library of Congress, for whom a basic administrative
                    workweek is established under section 6101(a)(5) of
                    this title; and
                        ``(C) an individual employed by the government of
                    the District of Columbia.
                ``(2) The term `employee' does not include--
                        ``(A) an employee on the Isthmus of Panama in the
                    service of the Panama Canal Commission; or
                        ``(B) an employee or individual excluded from the
                    definition of employee in section 5541(2) of this title
                    other than an employee or individual excluded by
                    clauses (ii), (iii), and (xiv) through (xvii) of such
                    section.
                ``(3) Notwithstanding paragraph (2), an individual who
            otherwise would be excluded from the definition of employee
            shall be deemed to be an employee for purposes of this section
            if the individual's employing agency so elects, under
            guidelines in regulations promulgated by the Office of
            Personnel Management under subsection (d)(2).''.
        (b) Guidelines.--Subsection (d) of section 5504 of such title, as
    redesignated by subsection (a), is amended--
                (1) by inserting ``(1)'' after ``(d)''; and
                (2) by adding at the end the following new paragraph:
        ``(2) The Office of Personnel Management shall provide guidelines
    by regulation for exemptions to be made by the heads of agencies under
    subsection (c)(3). Such guidelines shall provide for such exemptions
    only under exceptional circumstances.''.

    SEC. 1106. SENIOR EXECUTIVE SERVICE AND PERFORMANCE.

        (a) Senior Executive Pay.--Chapter 53 of title 5, United States
    Code, is amended--
                (1) in section 5304--
                        (A) in subsection (g)(2)--
                                (i) in subparagraph (A) by striking
                            ``subparagraphs (A)-(E)'' and inserting
                            ``subparagraphs (A)-(D)''; and
                                (ii) in subparagraph (B) by striking
                            ``subsection (h)(1)(F)'' and inserting
                            ``subsection (h)(1)(D)'';
                        (B) in subsection (h)(1)--
                                (i) by striking subparagraphs (B) and (C);
                                (ii) by redesignating subparagraphs (D),
                            (E), and (F) as subparagraphs (B), (C), and
                            (D), respectively;
                                (iii) in clause (ii) by striking ``or'' at
                            the end;
                                (iv) in clause (iii) by striking the period
                            and inserting a semicolon; and
                                (v) by adding at the end the following new
                            clauses:
                ``(iv) a Senior Executive Service position under section
            3132;
                ``(v) a position in the Federal Bureau of Investigation and
            Drug Enforcement Administration Senior Executive Service under
            section 3151; or
                ``(vi) a position in a system equivalent to the system in
            clause (iv), as determined by the President's Pay Agent
            designated under subsection (d).''; and
                        (C) in subsection (h)(2)(B)--
                                (i) in clause (i)--
                                        (I) by striking ``subparagraphs (A)
                                    through (E)'' and inserting
                                    ``subparagraphs (A) through (C)''; and
                                        (II) by striking ``clause (i) or
                                    (ii)'' and inserting ``clause (i),
                                    (ii), (iii), (iv), (v), or (vii)''; and
                                (ii) in clause (ii)--
                                        (I) by striking ``paragraph
                                    (1)(F)'' and inserting ``paragraph
                                    (1)(D)''; and
                                        (II) by striking ``clause (i) or
                                    (ii)'' and inserting ``clause (i),
                                    (ii), (iii), (iv), (v), or (vi)'';
                (2) by amending section 5382 to read as follows:
    ``Sec. 5382. Establishment of rates of pay for the Senior Executive
                  Service
        ``(a) Subject to regulations prescribed by the Office of Personnel
    Management, there shall be established a range of rates of basic pay
    for the Senior Executive Service, and each senior executive shall be
    paid at one of the rates within the range, based on individual
    performance, contribution to the agency's performance, or both, as
    determined under a rigorous performance management system. The lowest
    rate of the range shall not be less than the minimum rate of basic pay
    payable under section 5376, and the highest rate, for any position
    under this system or an equivalent system as determined by the
    President's Pay Agent designated under section 5304(d), shall not
    exceed the rate for level III of the Executive Schedule. The payment of
    the rates shall not be subject to the pay limitation of section 5306(e)
    or 5373.
        ``(b) Notwithstanding the provisions of subsection (a), the
    applicable maximum shall be level II of the Executive Schedule for any
    agency that is certified under section 5307 as having a performance
    appraisal system which, as designed and applied, makes meaningful
    distinctions based on relative performance.
        ``(c) No employee may suffer a reduction in pay by reason of
    transfer from an agency with an applicable maximum rate of pay
    prescribed under subsection (b) to an agency with an applicable maximum
    rate of pay prescribed under subsection (a).''; and
                (3) in section 5383--
                        (A) in subsection (a) by striking ``which of the
                    rates established under section 5382 of this title''
                    and inserting ``which of the rates within a range
                    established under section 5382''; and
                        (B) in subsection (c) by striking ``for any pay
                    adjustment under section 5382 of this title'' and
                    inserting ``as provided in regulations prescribed by
                    the Office under section 5385''.
        (b) Post-Employment Restrictions.--(1) Clause (ii) of section
    207(c)(2)(A) of title 18, United States Code is amended to read as
    follows:
                        ``(ii) employed in a position which is not referred
                    to in clause (i) and for which that person is paid at a
                    rate of basic pay which is equal to or greater than 96
                    percent of the rate of basic pay for level II of the
                    Executive Schedule, or, for a period of 2 years
                    following the enactment of the National Defense
                    Authorization Act for Fiscal Year 2004, a person who,
                    on the day prior to the enactment of that Act, was
                    employed in a position which is not referred to in
                    clause (i) and for which the rate of basic pay,
                    exclusive of any locality-based pay adjustment under
                    section 5304 or section 5304a of title 5, was equal to
                    or greater than the rate of basic pay payable for level
                    5 of the Senior Executive Service on the day prior to
                    the enactment of that Act,''.
        (2) Subchapter I of chapter 73 of title 5, United States Code, is
    amended by inserting at the end the following new section:
    ``Sec. 7302. Post-employment notification
        ``(a) Not later than the effective date of the amendments made by
    section 1106 of the National Defense Authorization Act for Fiscal Year
    2004, or 180 days after the date of enactment of that Act, whichever is
    later, the Office of Personnel Management shall, in consultation with
    the Attorney General and the Office of Government Ethics, promulgate
    regulations requiring that each Executive branch agency notify any
    employee of that agency who is subject to the provisions of section
    207(c)(1) of title 18, as a result of the amendment to section
    207(c)(2)(A)(ii) of that title by that Act.
        ``(b) The regulations shall require that notice be given before, or
    as part of, the action that affects the employee's coverage under
    section 207(c)(1) of title 18, by virtue of the provisions of section
    207(c)(2)(A)(ii) of that title, and again when employment or service in
    the covered position is terminated.''.
        (3) The table of sections for chapter 73 of title 5, United States
    Code, is amended by adding after the item relating to section 7301 the
    following:

    ``7302. Post-employment notification.''.
        (c) Effective Date and Applicability.--(1) The amendments made by
    this section shall take effect on the first day of the first pay period
    beginning on or after the first January 1 following the date of
    enactment of this section.
        (2) The amendments made by subsection (a) may not result in a
    reduction in the rate of basic pay for any senior executive during the
    first year after the effective date of those amendments.
        (3) For the purposes of paragraph (2), the rate of basic pay for a
    senior executive shall be deemed to be the rate of basic pay set for
    the senior executive under section 5383 of title 5, United States Code,
    plus applicable locality pay paid to that senior executive, as of the
    date of enactment of this Act.

    SEC. 1107. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS IN
                  DEMONSTRATION PROJECTS.

        A pay-for-performance system may not be initiated under chapter 47
    of title 5, United States Code, after the date of enactment of this
    Act, unless it incorporates the following elements:
                (1) adherence to merit principles set forth in section 2301
            of such title;
                (2) a fair, credible, and transparent employee performance
            appraisal system;
                (3) a link between elements of the pay-for-performance
            system, the employee performance appraisal system, and the
            agency's strategic plan;
                (4) a means for ensuring employee involvement in the design
            and implementation of the system;
                (5) adequate training and retraining for supervisors,
            managers, and employees in the implementation and operation of
            the pay-for-performance system;
                (6) a process for ensuring ongoing performance feedback and
            dialogue between supervisors, managers, and employees
            throughout the appraisal period, and setting timetables for
            review;
                (7) effective safeguards to ensure that the management of
            the system is fair and equitable and based on employee
            performance; and
                (8) a means for ensuring that adequate agency resources are
            allocated for the design, implementation, and administration of
            the pay-for-performance system.

    SEC. 1108. FEDERAL FLEXIBLE BENEFITS PLAN ADMINISTRATIVE COSTS.

        (a) In General.--Notwithstanding any other provision of law, an
    agency or other employing entity of the Government which provides or
    plans to provide a flexible spending account option for its employees
    shall not impose any fee with respect to any of its employees in order
    to defray the administrative costs associated therewith.
        (b) Offset of Administrative Costs.--Each such agency or employing
    entity that offers a flexible spending account option under a program
    established or administered by the Office of Personnel Management shall
    periodically forward to such Office, or entity designated by such
    Office, the amount necessary to offset the administrative costs of such
    program which are attributable to such agency.
        (c) Reports.--(1) The Office shall submit a report to the Committee
    on Government Reform of the House of Representatives and the Committee
    on Governmental Affairs of the Senate no later than March 31, 2004,
    specifying the administrative costs associated with the Governmentwide
    program (referred to in subsection (b)) for fiscal year 2003, as well
    as the projected administrative costs of such program for each of the 5
    fiscal years thereafter.
        (2) At the end of each of the first 3 calendar years in which an
    agency or other employing entity offers a flexible spending account
    option under this section, such agency or entity shall submit a report
    to the Office of Management and Budget showing the amount of its
    employment tax savings in such year which are attributable to such
    option, net of administrative fees paid under section (b).

    SEC. 1109. CLARIFICATION OF HATCH ACT.

        No Federal employee or individual who, before the date of the
    enactment of this Act, was employed in the Office of the Department of
    Defense Inspector General and transferred to a Special Court sponsored
    by the United Nations pursuant to the authority described in section
    3582(a) of title 5, United States Code, shall be subject to enforcement
    of the provisions of section 7326 of such title, except that this
    section shall not apply in the event that such employee or individual
    subsequently becomes reemployed in the civil service.

    SEC. 1110. EMPLOYEE SURVEYS.

        (a) In General.--Each agency shall conduct an annual survey of its
    employees (including survey questions unique to the agency and
    questions prescribed under subsection (b)) to assess--
                (1) leadership and management practices that contribute to
            agency performance; and
                (2) employee satisfaction with--
                        (A) leadership policies and practices;
                        (B) work environment;
                        (C) rewards and recognition for professional
                    accomplishment and personal contributions to achieving
                    organizational mission;
                        (D) opportunity for professional development and
                    growth; and
                        (E) opportunity to contribute to achieving
                    organizational mission.
        (b) Regulations.--The Office of Personnel Management shall issue
    regulations prescribing survey questions that should appear on all
    agency surveys under subsection (a) in order to allow a comparison
    across agencies.
        (c) Availability of Results.--The results of the agency surveys
    under subsection (a) shall be made available to the public and posted
    on the website of the agency involved, unless the head of such agency
    determines that doing so would jeopardize or negatively impact national
    security.
        (d) Agency defined.--For purposes of this section, the term
    ``agency'' means an Executive agency (as defined by section 105 of
    title 5, United States Code).

    SEC. 1111. HUMAN CAPITAL PERFORMANCE FUND.

        (a) In General.--Subpart D of part III of title 5, United States
    Code, is amended by inserting after chapter 53 the following:

                  ``CHAPTER 54--HUMAN CAPITAL PERFORMANCE FUND

        ``Sec.
        ``5401. Purpose.
        ``5402. Definitions.
        ``5403. Human Capital Performance Fund.
        ``5404. Human capital performance payments.
        ``5405. Regulations.
        ``5406. Agency plan.
        ``5407. Nature of payment.
        ``5408. Appropriations.
    ``Sec. 5401. Purpose
        ``The purpose of this chapter is to promote, through the creation
    of a Human Capital Performance Fund, greater performance in the Federal
    Government. Monies from the Fund will be used to reward agencies'
    highest performing and most valuable employees. This Fund will offer
    Federal managers a new tool to recognize employee performance that is
    critical to the achievement of agency missions.
    ``Sec. 5402. Definitions
        ``For the purpose of this chapter--
                ``(1) `agency' means an Executive agency under section 105,
            but does not include the General Accounting Office;
                ``(2) `employee' includes--
                        ``(A) an individual paid under a statutory pay
                    system defined in section 5302(1);
                        ``(B) a prevailing rate employee, as defined in
                    section 5342(a)(2); and
                        ``(C) a category of employees included by the
                    Office of Personnel Management following the review of
                    an agency plan under section 5403(b)(1);
            but does not include--
                        ``(i) an individual paid at an annual rate of basic
                    pay for a level of the Executive Schedule, under
                    subchapter II of chapter 53, or at a rate provided for
                    one of those levels under another provision of law;
                        ``(ii) a member of the Senior Executive Service
                    paid under subchapter VIII of chapter 53, or an
                    equivalent system;
                        ``(iii) an administrative law judge paid under
                    section 5372;
                        ``(iv) a contract appeals board member paid under
                    section 5372a;
                        ``(v) an administrative appeals judge paid under
                    section 5372b; and
                        ``(vi) an individual in a position which is
                    excepted from the competitive service because of its
                    confidential, policy-determining, policy-making, or
                    policy-advocating character; and
                ``(3) `Office' means the Office of Personnel Management.
    ``Sec. 5403. Human Capital Performance Fund
        ``(a) There is hereby established the Human Capital Performance
    Fund, to be administered by the Office for the purpose of this chapter.
        ``(b)(1)(A) An agency shall submit a plan as described in section
    5406 to be eligible for consideration by the Office for an allocation
    under this section. An allocation shall be made only upon approval by
    the Office of an agency's plan.
        ``(B)(i) After the reduction for training required under section
    5408, ninety percent of the remaining amount appropriated to the Fund
    may be allocated by the Office to the agencies. Of the amount to be
    allocated, an agency's pro rata distribution may not exceed its pro
    rata share of Executive branch payroll.
        ``(ii) If the Office does not allocate an agency's full pro rata
    share, the undistributed amount remaining from that share will become
    available for distribution to other agencies, as provided in
    subparagraph (C).
        ``(C)(i) After the reduction for training under section 5408, ten
    percent of the remaining amount appropriated to the Fund, as well as
    the amount of the pro rata share not distributed because of an agency's
    failure to submit a satisfactory plan, shall be allocated among
    agencies with exceptionally high-quality plans.
        ``(ii) An agency with an exceptionally high-quality plan is
    eligible to receive an additional distribution in addition to its full
    pro rata distribution.
        ``(2) Each agency is required to provide to the Office such payroll
    information as the Office specifies necessary to determine the
    Executive branch payroll.
    ``Sec. 5404. Human capital performance payments
        ``(a)(1) Notwithstanding any other provision of law, the Office may
    authorize an agency to provide human capital performance payments to
    individual employees based on exceptional performance contributing to
    the achievement of the agency mission.
        ``(2) The number of employees in an agency receiving payments from
    the Fund, in any year, shall not be more than the number equal to 15
    percent of the agency's average total civilian full- and part-time
    permanent employment for the previous fiscal year.
        ``(b)(1) A human capital performance payment provided to an
    individual employee from the Fund, in any year, shall not exceed 10
    percent of the employee's rate of basic pay.
        ``(2) The aggregate of an employee's rate of basic pay, adjusted by
    any locality-based comparability payments, and human capital
    performance pay, as defined by regulation, may not exceed the rate of
    basic pay for Executive Level IV in any year.
        ``(3) Any human capital performance payment provided to an employee
    from the Fund is in addition to any annual pay adjustment (under
    section 5303 or any similar provision of law) and any locality-based
    comparability payment that may apply.
        ``(c) No monies from the Human Capital Performance Fund may be used
    to pay for a new position, for other performance-related payments, or
    for recruitment or retention incentives paid under sections 5753 and
    5754.
        ``(d)(1) An agency may finance initial human capital performance
    payments using monies from the Human Capital Performance Fund, as
    available.
        ``(2) In subsequent years, continuation of previously awarded human
    capital performance payments shall be financed from other agency funds
    available for salaries and expenses.
    ``Sec. 5405. Regulations
        ``The Office shall issue such regulations as it determines to be
    necessary for the administration of this chapter, including the
    administration of the Fund. The Office's regulations shall include
    criteria governing--
                ``(1) an agency plan under section 5406;
                ``(2) the allocation of monies from the Fund to agencies;
                ``(3) the nature, extent, duration, and adjustment of, and
            approval processes for, payments to individual employees under
            this chapter;
                ``(4) the relationship to this chapter of agency
            performance management systems;
                ``(5) training of supervisors, managers, and other
            individuals involved in the process of making performance
            distinctions; and
                ``(6) the circumstances under which funds may be allocated
            by the Office to an agency in amounts below or in excess of the
            agency's pro rata share.
    ``Sec. 5406. Agency plan
        ``(a) To be eligible for consideration by the Office for an
    allocation under this section, an agency shall--
                ``(1) develop a plan that incorporates the following
            elements:
                        ``(A) adherence to merit principles set forth in
                    section 2301;
                        ``(B) a fair, credible, and transparent employee
                    performance appraisal system;
                        ``(C) a link between the pay-for-performance
                    system, the employee performance appraisal system, and
                    the agency's strategic plan;
                        ``(D) a means for ensuring employee involvement in
                    the design and implementation of the system;
                        ``(E) adequate training and retraining for
                    supervisors, managers, and employees in the
                    implementation and operation of the pay-for-performance
                    system;
                        ``(F) a process for ensuring ongoing performance
                    feedback and dialogue between supervisors, managers,
                    and employees throughout the appraisal period, and
                    setting timetables for review;
                        ``(G) effective safeguards to ensure that the
                    management of the system is fair and equitable and
                    based on employee performance; and
                        ``(H) a means for ensuring that adequate agency
                    resources are allocated for the design, implementation,
                    and administration of the pay-for-performance system;
                ``(2) upon approval, receive an allocation of funding from
            the Office;
                ``(3) make payments to individual employees in accordance
            with the agency's approved plan; and
                ``(4) provide such information to the Office regarding
            payments made and use of funds received under this section as
            the Office may specify.
        ``(b) The Office, in consultation with the Chief Human Capital
    Officers Council, shall review and approve an agency's plan before the
    agency is eligible to receive an allocation of funding from the Office.
        ``(c) The Chief Human Capital Officers Council shall include in its
    annual report to Congress under section 1303(d) of the Homeland
    Security Act of 2002 an evaluation of the formulation and
    implementation of agency performance management systems.
    ``Sec. 5407. Nature of payment
        ``Any payment to an employee under this section shall be part of
    the employee's basic pay for the purposes of subchapter III of chapter
    83, and chapters 84 and 87, and for such other purposes (other than
    chapter 75) as the Office shall determine by regulation.
    ``Sec. 5408. Appropriations
        ``There is authorized to be appropriated $500,000,000 for fiscal
    year 2004, and, for each subsequent fiscal year, such sums as may be
    necessary to carry out the provisions of this chapter. In the first
    year of implementation, up to 10 percent of the amount appropriated to
    the Fund shall be available to participating agencies to train
    supervisors, managers, and other individuals involved in the appraisal
    process on using performance management systems to make meaningful
    distinctions in employee performance and on the use of the Fund.''.
        (b) Clerical Amendment.--The table of chapters for part III of
    title 5, United States Code, is amended by inserting after the item
    relating to chapter 53 the following:

     ``54.  Human Capital Performance Fund                          5401''.

      Subtitle B--Department of Defense National Security Personnel System

    SEC. 1121. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

        (a) In General.--(1) Subpart I of part III of title 5, United
    States Code, is amended by adding at the end the following new chapter:

     ``CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

    ``Sec.
    ``9901. Definitions.
    ``9902. Establishment of human resources management system.
    ``9903. Attracting highly qualified experts.
    ``9904. Employment of older Americans.
    ``9905. Special pay and benefits for certain employees outside the
                                United States.
    ``Sec. 9901. Definitions
        ``For purposes of this chapter--
                ``(1) the term `Director' means the Director of the Office
            of Personnel Management; and
                ``(2) the term `Secretary' means the Secretary of Defense.
    ``Sec. 9902. Establishment of human resources management system
        ``(a) In General.--Notwithstanding any other provision of this
    part, the Secretary may, in regulations prescribed jointly with the
    Director, establish, and from time to time adjust, a human resources
    management system for some or all of the organizational or functional
    units of the Department of Defense. If the Secretary certifies that
    issuance or adjustment of a regulation, or the inclusion, exclusion, or
    modification of a particular provision therein, is essential to the
    national security, the Secretary may, subject to the decision of the
    President, waive the requirement in the preceding sentence that the
    regulation or adjustment be issued jointly with the Director.
        ``(b) System Requirements.--Any system established under subsection
    (a) shall--
                ``(1) be flexible;
                ``(2) be contemporary;
                ``(3) not waive, modify, or otherwise affect--
                        ``(A) the public employment principles of merit and
                    fitness set forth in section 2301, including the
                    principles of hiring based on merit, fair treatment
                    without regard to political affiliation or other
                    nonmerit considerations, equal pay for equal work, and
                    protection of employees against reprisal for
                    whistleblowing;
                        ``(B) any provision of section 2302, relating to
                    prohibited personnel practices;
                        ``(C)(i) any provision of law referred to in
                    section 2302(b)(1), (8), and (9); or
                        ``(ii) any provision of law implementing any
                    provision of law referred to in section 2302(b)(1),
                    (8), and (9) by--
                                ``(I) providing for equal employment
                            opportunity through affirmative action; or
                                ``(II) providing any right or remedy
                            available to any employee or applicant for
                            employment in the public service;
                        ``(D) any other provision of this part (as
                    described in subsection (c)); or
                        ``(E) any rule or regulation prescribed under any
                    provision of law referred to in this paragraph;
                ``(4) ensure that employees may organize, bargain
            collectively as provided for in this chapter, and participate
            through labor organizations of their own choosing in decisions
            which affect them, subject to the provisions of this chapter
            and any exclusion from coverage or limitation on negotiability
            established pursuant to law;
                ``(5) not be limited by any specific law or authority under
            this title that is waivable under this chapter or by any
            provision of this chapter or any rule or regulation prescribed
            under this title that is waivable under this chapter, except as
            specifically provided for in this section; and
                ``(6) include a performance management system that
            incorporates the following elements:
                        ``(A) adherence to merit principles set forth in
                    section 2301;
                        ``(B) a fair, credible, and transparent employee
                    performance appraisal system;
                        ``(C) a link between the performance management
                    system and the agency's strategic plan;
                        ``(D) a means for ensuring employee involvement in
                    the design and implementation of the system;
                        ``(E) adequate training and retraining for
                    supervisors, managers, and employees in the
                    implementation and operation of the performance
                    management system;
                        ``(F) a process for ensuring ongoing performance
                    feedback and dialogue between supervisors, managers,
                    and employees throughout the appraisal period, and
                    setting timetables for review;
                        ``(G) effective safeguards to ensure that the
                    management of the system is fair and equitable and
                    based on employee performance; and
                        ``(H) a means for ensuring that adequate agency
                    resources are allocated for the design, implementation,
                    and administration of the performance management
                    system.
        ``(c) Other Nonwaivable Provisions.--The other provisions of this
    part referred to in subsection (b)(3)(D) are (to the extent not
    otherwise specified in this title)--
                ``(1) subparts A, B, E, G, and H of this part; and
                ``(2) chapters 41, 45, 47, 55 (except subchapter V
            thereof), 57, 59, 72, 73, and 79, and this chapter.
        ``(d) Limitations Relating to Pay.--(1) Nothing in this section
    shall constitute authority to modify the pay of any employee who serves
    in an Executive Schedule position under subchapter II of chapter 53 of
    this title.
        ``(2) Except as provided for in paragraph (1), the total amount in
    a calendar year of allowances, differentials, bonuses, awards, or other
    similar cash payments paid under this title to any employee who is paid
    under section 5376 or 5383 of this title or under title 10 or under
    other comparable pay authority established for payment of Department of
    Defense senior executive or equivalent employees may not exceed the
    total annual compensation payable to the Vice President under section
    104 of title 3.
        ``(3) To the maximum extent practicable, the rates of compensation
    for civilian employees at the Department of Defense shall be adjusted
    at the same rate, and in the same proportion, as are rates of
    compensation for members of the uniformed services.
        ``(e) Provisions To Ensure Collaboration With Employee
    Representatives.--(1) In order to ensure that the authority of this
    section is exercised in collaboration with, and in a manner that
    ensures the participation of, employee representatives in the planning,
    development, and implementation of any human resources management
    system or adjustments to such system under this section, the Secretary
    and the Director shall provide for the following:
                ``(A) The Secretary and the Director shall, with respect to
            any proposed system or adjustment--
                        ``(i) provide to the employee representatives
                    representing any employees who might be affected a
                    written description of the proposed system or
                    adjustment (including the reasons why it is considered
                    necessary);
                        ``(ii) give such representatives at least 30
                    calendar days (unless extraordinary circumstances
                    require earlier action) to review and make
                    recommendations with respect to the proposal; and
                        ``(iii) give any recommendations received from such
                    representatives under clause (ii) full and fair
                    consideration in deciding whether or how to proceed
                    with the proposal.
                ``(B) Following receipt of recommendations, if any, from
            such employee representatives with respect to a proposal
            described in subparagraph (A), the Secretary and the Director
            shall accept such modifications to the proposal in response to
            the recommendations as they determine advisable and shall, with
            respect to any parts of the proposal as to which they have not
            accepted the recommendations--
                        ``(i) notify Congress of those parts of the
                    proposal, together with the recommendations of the
                    employee representatives;
                        ``(ii) meet and confer for not less than 30
                    calendar days with the employee representatives, in
                    order to attempt to reach agreement on whether or how
                    to proceed with those parts of the proposal; and
                        ``(iii) at the Secretary's option, or if requested
                    by a majority of the employee representatives
                    participating, use the services of the Federal
                    Mediation and Conciliation Service during such meet and
                    confer period to facilitate the process of attempting
                    to reach agreement.
                ``(C)(i) Any part of the proposal as to which the
            representatives do not make a recommendation, or as to which
            the recommendations are accepted by the Secretary and the
            Director, may be implemented immediately.
                ``(ii) With respect to any parts of the proposal as to
            which recommendations have been made but not accepted by the
            Secretary and the Director, at any time after 30 calendar days
            have elapsed since the initiation of the congressional
            notification, consultation, and mediation procedures set forth
            in subparagraph (B), if the Secretary, in his discretion,
            determines that further consultation and mediation is unlikely
            to produce agreement, the Secretary may implement any or all of
            such parts (including any modifications made in response to the
            recommendations as the Secretary determines advisable), but
            only after 30 days have elapsed after notifying Congress of the
            decision to implement the part or parts involved (as so
            modified, if applicable).
                ``(iii) The Secretary shall notify Congress promptly of the
            implementation of any part of the proposal and shall furnish
            with such notice an explanation of the proposal, any changes
            made to the proposal as a result of recommendations from the
            employee representatives, and of the reasons why implementation
            is appropriate under this subparagraph.
                ``(D) If a proposal described in subparagraph (A) is
            implemented, the Secretary and the Director shall--
                        ``(i) develop a method for the employee
                    representatives to participate in any further planning
                    or development which might become necessary; and
                        ``(ii) give the employee representatives adequate
                    access to information to make that participation
                    productive.
        ``(2) The Secretary may, at the Secretary's discretion, engage in
    any and all collaboration activities described in this subsection at an
    organizational level above the level of exclusive recognition.
        ``(3) In the case of any employees who are not within a unit with
    respect to which a labor organization is accorded exclusive
    recognition, the Secretary and the Director may develop procedures for
    representation by any appropriate organization which represents a
    substantial percentage of those employees or, if none, in such other
    manner as may be appropriate, consistent with the purposes of this
    subsection.
        ``(f) Provisions Regarding National Level Bargaining.--(1) Any
    human resources management system implemented or modified under this
    chapter may include employees of the Department of Defense from any
    bargaining unit with respect to which a labor organization has been
    accorded exclusive recognition under chapter 71 of this title.
        ``(2) For any bargaining unit so included under paragraph (1), the
    Secretary may bargain at an organizational level above the level of
    exclusive recognition. Any such bargaining shall--
                ``(A) be binding on all subordinate bargaining units at the
            level of recognition and their exclusive representatives, and
            the Department of Defense and its subcomponents, without regard
            to levels of recognition;
                ``(B) supersede all other collective bargaining agreements,
            including collective bargaining agreements negotiated with an
            exclusive representative at the level of recognition, except as
            otherwise determined by the Secretary;
                ``(C) not be subject to further negotiations for any
            purpose, including bargaining at the level of recognition,
            except as provided for by the Secretary; and
                ``(D) except as otherwise specified in this chapter, not be
            subject to review or to statutory third-party dispute
            resolution procedures outside the Department of Defense.
        ``(3) The National Guard Bureau and the Army and Air Force National
    Guard are excluded from coverage under this subsection.
        ``(4) Any bargaining completed pursuant to this subsection with a
    labor organization not otherwise having national consultation rights
    with the Department of Defense or its subcomponents shall not create
    any obligation on the Department of Defense or its subcomponents to
    confer national consultation rights on such a labor organization.
        ``(g) Provisions Relating to Appellate Procedures.--(1) The
    Secretary shall--
                ``(A) establish an appeals process that provides that
            employees of the Department of Defense are entitled to fair
            treatment in any appeals that they bring in decisions relating
            to their employment; and
                ``(B) in prescribing regulations for any such appeals
            process--
                        ``(i) ensure that employees of the Department of
                    Defense are afforded the protections of due process;
                    and
                        ``(ii) toward that end, be required to consult with
                    the Merit Systems Protection Board before issuing any
                    such regulations.
        ``(2) Any regulations establishing the appeals process required by
    paragraph (1) that relate to any matters within the purview of chapter
    77 shall--
                ``(A) provide for an independent review panel, appointed by
            the President, which shall not include the Secretary or the
            Deputy Secretary of Defense or any of their subordinates;
                ``(B) be issued only after--
                        ``(i) notification to the appropriate committees of
                    Congress; and
                        ``(ii) consultation with the Merit Systems
                    Protection Board and the Equal Employment Opportunity
                    Commission;
                ``(C) ensure the availability of procedures that--
                        ``(i) are consistent with requirements of due
                    process; and
                        ``(ii) provide, to the maximum extent practicable,
                    for the expeditious handling of any matters involving
                    the Department of Defense; and
                ``(D) modify procedures under chapter 77 only insofar as
            such modifications are designed to further the fair, efficient,
            and expeditious resolution of matters involving the employees
            of the Department of Defense.
        ``(h) Provisions Related to Separation and Retirement Incentives.--
    (1) The Secretary may establish a program within the Department of
    Defense under which employees may be eligible for early retirement,
    offered separation incentive pay to separate from service voluntarily,
    or both. This authority may be used to reduce the number of personnel
    employed by the Department of Defense or to restructure the workforce
    to meet mission objectives without reducing the overall number of
    personnel. This authority is in addition to, and notwithstanding, any
    other authorities established by law or regulation for such programs.
        ``(2) For purposes of this section, the term `employee' means an
    employee of the Department of Defense, serving under an appointment
    without time limitation, except that such term does not include--
                ``(A) a reemployed annuitant under subchapter III of
            chapter 83 or chapter 84 of this title, or another retirement
            system for employees of the Federal Government;
                ``(B) an employee having a disability on the basis of which
            such employee is or would be eligible for disability retirement
            under any of the retirement systems referred to in paragraph
            (1); or
                ``(C) for purposes of eligibility for separation incentives
            under this section, an employee who is in receipt of a decision
            notice of involuntary separation for misconduct or unacceptable
            performance.
        ``(3) An employee who is at least 50 years of age and has completed
    20 years of service, or has at least 25 years of service, may, pursuant
    to regulations promulgated under this section, apply and be retired
    from the Department of Defense and receive benefits in accordance with
    chapter 83 or 84 if the employee has been employed continuously within
    the Department of Defense for more than 30 days before the date on
    which the determination to conduct a reduction or restructuring within
    1 or more Department of Defense components is approved pursuant to the
    program established under subsection (a).
        ``(4)(A) Separation pay shall be paid in a lump sum or in
    installments and shall be equal to the lesser of--
                ``(i) an amount equal to the amount the employee would be
            entitled to receive under section 5595(c) of this title, if the
            employee were entitled to payment under such section; or
                ``(ii) $25,000.
        ``(B) Separation pay shall not be a basis for payment, and shall
    not be included in the computation, of any other type of Government
    benefit. Separation pay shall not be taken into account for the purpose
    of determining the amount of any severance pay to which an individual
    may be entitled under section 5595 of this title, based on any other
    separation.
        ``(C) Separation pay, if paid in installments, shall cease to be
    paid upon the recipient's acceptance of employment by the Federal
    Government, or commencement of work under a personal services contract
    as described in paragraph (5).
        ``(5)(A) An employee who receives separation pay under such program
    may not be reemployed by the Department of Defense for a 12-month
    period beginning on the effective date of the employee's separation,
    unless this prohibition is waived by the Secretary on a case-by-case
    basis.
        ``(B) An employee who receives separation pay under this section on
    the basis of a separation occurring on or after the date of the
    enactment of the Federal Workforce Restructuring Act of 1994 (Public
    Law 103-236; 108 Stat. 111) and accepts employment with the Government
    of the United States, or who commences work through a personal services
    contract with the United States within 5 years after the date of the
    separation on which payment of the separation pay is based, shall be
    required to repay the entire amount of the separation pay to the
    Department of Defense. If the employment is with an Executive agency
    (as defined by section 105 of this title) other than the Department of
    Defense, the Director may, at the request of the head of that agency,
    waive the repayment if the individual involved possesses unique
    abilities and is the only qualified applicant available for the
    position. If the employment is within the Department of Defense, the
    Secretary may waive the repayment if the individual involved is the
    only qualified applicant available for the position. If the employment
    is with an entity in the legislative branch, the head of the entity or
    the appointing official may waive the repayment if the individual
    involved possesses unique abilities and is the only qualified applicant
    available for the position. If the employment is with the judicial
    branch, the Director of the Administrative Office of the United States
    Courts may waive the repayment if the individual involved possesses
    unique abilities and is the only qualified applicant available for the
    position.
        ``(6) Under this program, early retirement and separation pay may
    be offered only pursuant to regulations established by the Secretary,
    subject to such limitations or conditions as the Secretary may require.
        ``(i) Provisions Relating to Reemployment.--If annuitant receiving
    an annuity from the Civil Service Retirement and Disability Fund
    becomes employed in a position within the Department of Defense, his
    annuity shall continue. An annuitant so reemployed shall not be
    considered an employee for purposes of chapter 83 or 84.
        ``(j) Additional Provisions Relating to Personnel Management.--
    Notwithstanding subsection (c), the Secretary may exercise authorities
    that would otherwise be available to the Secretary under paragraphs
    (1), (3), and (8) of section 4703(a) of this title.
    ``Sec. 9903. Attracting highly qualified experts
        ``(a) In General.--The Secretary may carry out a program using the
    authority provided in subsection (b) in order to attract highly
    qualified experts in needed occupations, as determined by the
    Secretary.
        ``(b) Authority.--Under the program, the Secretary may--
                ``(1) appoint personnel from outside the civil service and
            uniformed services (as such terms are defined in section 2101
            of this title) to positions in the Department of Defense
            without regard to any provision of this title governing the
            appointment of employees to positions in the Department of
            Defense;
                ``(2) prescribe the rates of basic pay for positions to
            which employees are appointed under paragraph (1) at rates not
            in excess of the maximum rate of basic pay authorized for
            senior-level positions under section 5376 of this title, as
            increased by locality-based comparability payments under
            section 5304 of this title, notwithstanding any provision of
            this title governing the rates of pay or classification of
            employees in the executive branch; and
                ``(3) pay any employee appointed under paragraph (1)
            payments in addition to basic pay within the limits applicable
            to the employee under subsection (d).
        ``(c) Limitation on Term of Appointment.--(1) Except as provided in
    paragraph (2), the service of an employee under an appointment made
    pursuant to this section may not exceed 5 years.
        ``(2) The Secretary may, in the case of a particular employee,
    extend the period to which service is limited under paragraph (1) by up
    to 1 additional year if the Secretary determines that such action is
    necessary to promote the Department of Defense's national security
    missions.
        ``(d) Limitations on Additional Payments.--(1) The total amount of
    the additional payments paid to an employee under this section for any
    12-month period may not exceed the lesser of the following amounts:
                ``(A) $50,000 in fiscal year 2004, which may be adjusted
            annually thereafter by the Secretary, with a percentage
            increase equal to one-half of 1 percentage point less than the
            percentage by which the Employment Cost Index, published
            quarterly by the Bureau of Labor Statistics, for the base
            quarter of the year before the preceding calendar year exceeds
            the Employment Cost Index for the base quarter of the second
            year before the preceding calendar year.
                ``(B) The amount equal to 50 percent of the employee's
            annual rate of basic pay.
    For purposes of this paragraph, the term `base quarter' has the meaning
    given such term by section 5302(3).
        ``(2) An employee appointed under this section is not eligible for
    any bonus, monetary award, or other monetary incentive for service
    except for payments authorized under this section.
        ``(3) Notwithstanding any other provision of this subsection or of
    section 5307, no additional payments may be paid to an employee under
    this section in any calendar year if, or to the extent that, the
    employee's total annual compensation will exceed the maximum amount of
    total annual compensation payable at the salary set in accordance with
    section 104 of title 3.
        ``(e) Savings Provisions.--In the event that the Secretary
    terminates this program, in the case of an employee who, on the day
    before the termination of the program, is serving in a position
    pursuant to an appointment under this section--
                ``(1) the termination of the program does not terminate the
            employee's employment in that position before the expiration of
            the lesser of--
                        ``(A) the period for which the employee was
                    appointed; or
                        ``(B) the period to which the employee's service is
                    limited under subsection (c), including any extension
                    made under this section before the termination of the
                    program; and
                ``(2) the rate of basic pay prescribed for the position
            under this section may not be reduced as long as the employee
            continues to serve in the position without a break in service.
    ``Sec. 9904. Employment of older Americans
        ``(a) In General.--Notwithstanding any other provision of law, the
    Secretary may appoint older Americans into positions in the excepted
    service for a period not to exceed 2 years, provided that--
                ``(1) any such appointment shall not result in--
                        ``(A) the displacement of individuals currently
                    employed by the Department of Defense (including
                    partial displacement through reduction of nonovertime
                    hours, wages, or employment benefits); or
                        ``(B) the employment of any individual when any
                    other person is in a reduction-in-force status from the
                    same or substantially equivalent job within the
                    Department of Defense; and
                ``(2) the individual to be appointed is otherwise qualified
            for the position, as determined by the Secretary.
        ``(b) Effect on Existing Retirement Benefits.--Notwithstanding any
    other provision of law, an individual appointed pursuant to subsection
    (a) who otherwise is receiving an annuity, pension, retired pay, or
    other similar payment shall not have the amount of said annuity,
    pension, or other similar payment reduced as a result of such
    employment.
        ``(c) Extension of Appointment.--Notwithstanding subsection (a),
    the Secretary may extend an appointment made pursuant to this section
    for up to an additional 2 years if the individual employee possesses
    unique knowledge or abilities that are not otherwise available to the
    Department of Defense.
        ``(d) Definition.--For purposes of this section, the term `older
    American' means any citizen of the United States who is at least 55
    years of age.
    ``Sec. 9905. Special pay and benefits for certain employees outside the
                  United States
        ``The Secretary may provide to certain civilian employees of the
    Department of Defense assigned to activities outside the United States
    as determined by the Secretary to be in support of Department of
    Defense activities abroad hazardous to life or health or so specialized
    because of security requirements as to be clearly distinguishable from
    normal Government employment--
                ``(1) allowances and benefits--
                        ``(A) comparable to those provided by the Secretary
                    of State to members of the Foreign Service under
                    chapter 9 of title I of the Foreign Service Act of 1980
                    (Public Law 96-465, 22 U.S.C. 4081 et seq.) or any
                    other provision of law; or
                        ``(B) comparable to those provided by the Director
                    of Central Intelligence to personnel of the Central
                    Intelligence Agency; and
                ``(2) special retirement accrual benefits and disability in
            the same manner provided for by the Central Intelligence Agency
            Retirement Act (50 U.S.C. 2001 et seq.) and in section 18 of
            the Central Intelligence Agency Act of 1949 (50 U.S.C.
            403r).''.
        (2) The table of chapters for part III of such title is amended by
    adding at the end of subpart I the following new item:

    ``99. Department of Defense National Security Personnel System. 9901''.
        (b) Impact on Department of Defense Civilian Personnel.--(1) Any
    exercise of authority under chapter 99 of such title (as added by
    subsection (a)), including under any system established under such
    chapter, shall be in conformance with the requirements of this
    subsection.
        (2) No other provision of this Act or of any amendment made by this
    Act may be construed or applied in a manner so as to limit, supersede,
    or otherwise affect the provisions of this section, except to the
    extent that it does so by specific reference to this section.

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

    SEC. 1201. EXPANSION OF AUTHORITY TO PROVIDE ADMINISTRATIVE SUPPORT AND
                  SERVICES AND TRAVEL AND SUBSISTENCE EXPENSES FOR CERTAIN
                  FOREIGN LIAISON OFFICERS.

        (a) Administrative Support and Services.--Subsection (a) of section
    1051a of title 10, United States Code, is amended--
                (1) by striking ``involved in a coalition with the United
            States'';
                (2) by striking ``temporarily''; and
                (3) by striking `` in connection with the planning for, or
            conduct of, a coalition operation''.
        (b) Travel, Subsistence, and Other Expenses.--Subsection (b) of
    such section is amended--
                (1) by striking ``(1)'';
                (2) by striking ``expenses specified in paragraph (2)'' and
            inserting ``travel, subsistence, and similar personal
            expenses'';
                (3) by striking ``developing country'' and inserting
            ``developing nation'';
                (4) by striking ``in connection with the assignment of that
            officer to the headquarters of a combatant command as described
            in subsection (a)'' and inserting ``involved in a coalition
            while the liaison officer is assigned temporarily to a
            headquarters described in subsection (a) in connection with the
            planning for, or conduct of, a coalition operation''; and
                (5) by striking paragraph (2).
        (c) Reimbursement.--Subsection (c) of such section is amended by
    striking ``by'' before ``subsection (a)'' and inserting ``under''.
        (d) Clerical Amendments.--(1) The heading for section 1051a of such
    title is amended to read as follows:
    ``Sec. 1051a. Foreign officers: administrative services and support;
                  travel, subsistence, and other personal expenses''.
        (2) The subsection heading for subsection (a) of such section is
    amended by striking ``Authority'' and inserting ``Administrative
    Services and Support''.
        (3) The item relating to such section in the table of sections at
    the beginning of chapter 53 of such title is amended to read as
    follows:

    ``1051a. Foreign officers: administrative services and support; travel,
                                subsistence, and other personal
                                expenses.''.

    SEC. 1202. RECOGNITION OF SUPERIOR NONCOMBAT ACHIEVEMENTS OR
                  PERFORMANCE BY MEMBERS OF FRIENDLY FOREIGN FORCES AND
                  OTHER FOREIGN NATIONALS.

        (a) Authority.--Chapter 53 of title 10, United States Code, is
    amended by inserting after section 1051a the following new section:
    ``Sec. 1051b. Bilateral or regional cooperation programs: awards and
                  mementos to recognize superior noncombat achievements or
                  performance
        ``(a) General Authority.--The Secretary of Defense may present
    awards and mementos purchased with funds appropriated for operation and
    maintenance of the armed forces to recognize superior noncombat
    achievements or performance by members of friendly foreign forces and
    other foreign nationals that significantly enhance or support the
    National Security Strategy of the United States.
        ``(b) Activities That May Be Recognized.--Activities that may be
    recognized under subsection (a) include superior achievement or
    performance that--
                ``(1) plays a crucial role in shaping the international
            security environment in ways that protect and promote United
            States interests;
                ``(2) supports or enhances United States overseas presence
            and peacetime engagement activities, including defense
            cooperation initiatives, security assistance training and
            programs, and training and exercises with the armed forces;
                ``(3) helps to deter aggression and coercion, build
            coalitions, and promote regional stability; or
                ``(4) serves as a role model for appropriate conduct by
            military forces in emerging democracies.
        ``(c) Limitation.--Expenditures for the purchase or production of
    mementos for award under this section may not exceed the `minimal
    value' established in accordance with section 7342(a)(5) of title 5.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such chapter is amended by inserting after the item relating to section
    1051a the following new item:

    ``1051b. Bilateral or regional cooperation programs: awards and
                                mementos to recognize superior noncombat
                                achievements or performance.''.

    SEC. 1203. EXPANSION OF AUTHORITY TO WAIVE CHARGES FOR COSTS OF
                  ATTENDANCE AT GEORGE C. MARSHALL EUROPEAN CENTER FOR
                  SECURITY STUDIES.

        Section 1306(b)(1) of the National Defense Authorization Act for
    Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2892) is amended by
    striking ``of cooperation partner states of the North Atlantic Council
    or the Partnership for Peace'' and inserting ``from states located in
    Europe or the territory of the former Soviet Union''.

    SEC. 1204. IDENTIFICATION OF GOODS AND TECHNOLOGIES CRITICAL FOR
                  MILITARY SUPERIORITY.

        (a) In General.--(1) Subchapter II of chapter 148 of title 10,
    United States Code, is amended by adding at the end the following new
    section:
    ``Sec. 2508. Goods and technologies critical for military superiority:
                  list
        ``(a) Requirement to Maintain List.--(1) The Secretary of Defense
    shall maintain a list of any goods or technology that, if obtained by a
    potential adversary, could undermine the military superiority or
    qualitative military advantage of the United States over potential
    adversaries.
        ``(2) In this section, the term `goods or technology' means--
                ``(A) any article, natural or manmade substance, material,
            supply, or manufactured product, including inspection and test
            equipment; and
                ``(B) any information and know-how (whether in tangible
            form, such as models, prototypes, drawings, sketches, diagrams,
            blueprints, or manuals, or in intangible form, such as training
            or technical services) that can be used to design, produce,
            manufacture, utilize, or reconstruct goods, including computer
            software and technical data.
        ``(b) Matters to be Included on List.--The Secretary shall include
    on the list the following:
                ``(1) Any technology or developing critical technology
            (including conventional weapons, weapons of mass destruction,
            and delivery systems) that could enhance a potential
            adversary's military capabilities or that is critical to the
            United States maintaining its military superiority and
            qualitative military advantage.
                ``(2) Any dual-use good, material, or know-how that could
            enhance a potential adversary's military capabilities or that
            is critical to the United States maintaining its military
            superiority and qualitative military advantage, including those
            used to manufacture weapons of mass destruction and their
            associated delivery systems.
        ``(c) Requirements.--The Secretary shall ensure that--
                ``(1) the list is subject to a systematic, ongoing
            assessment and analysis of dual-use technologies; and
                ``(2) the list is updated not less often than every two
            months.
        ``(d) Availability.--The list shall be made available--
                ``(1) in unclassified form on the Department of Defense
            public website, in a usable form; and
                ``(2) in classified form to the Committee on Armed Services
            of the Senate and the Committee on Armed Services of the House
            of Representatives.''.
        (2) The table of sections at the beginning of such subchapter is
    amended by adding at the end the following new item:

    ``2508. Goods and technologies critical for military superiority:
                                list.''.
        (b) Deadline for Establishment.--The list required by section 2508
    of title 10, United States Code, as added by subsection (a), shall be
    established not later than 180 days after the enactment of this Act.

    SEC. 1205. REPORT ON ACQUISITION BY IRAQ OF ADVANCED WEAPONS.

        (a) Report.--Not later than one year after the date of the
    enactment of this Act, the Secretary of Defense shall 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 on the acquisition by Iraq of weapons
    of mass destruction and associated delivery systems and the acquisition
    by Iraq of advanced conventional weapons.
        (b) Matters To Be Included.--The report shall include the
    following:
                (1) A description of how Iraq was able to obtain any
            materials, technology, and know-how for its nuclear, chemical,
            biological, ballistic missile, and unmanned aerial vehicle
            programs, and advanced conventional weapons programs, from 1979
            through April 2003 from entities (including Iraqi citizens)
            outside of Iraq.
                (2) An assessment of the degree to which United States,
            foreign, and multilateral export control regimes prevented
            acquisition by Iraq of weapons of mass destruction-related
            technology and materials and advanced conventional weapons and
            delivery systems since the commencement of international
            inspections in Iraq.
                (3) An assessment of the effectiveness of United Nations
            sanctions at halting the flow of militarily-useful contraband
            to Iraq from 1991 until the end of Operation Iraqi Freedom.
                (4) An assessment of how Iraq was able to evade
            International Atomic Energy Agency and United Nations
            inspections regarding chemical, nuclear, biological, and
            missile weapons and related capabilities.
                (5) Identification and a catalogue of the entities and
            countries that transferred militarily useful contraband to Iraq
            between 1991 and the end of Operation Iraqi Freedom, and the
            nature of that contraband.
        (c) Form of Report.--The report shall be submitted in unclassified
    form with a classified annex, if necessary.

    SEC. 1206. AUTHORITY FOR CHECK CASHING AND CURRENCY EXCHANGE SERVICES
                  TO BE PROVIDED TO FOREIGN MILITARY MEMBERS PARTICIPATING
                  IN CERTAIN ACTIVITIES WITH UNITED STATES FORCES.

        (a) Authority.--Subsection (b) of section 3342 of title 31, United
    States Code, is amended by adding at the end the following new
    paragraph:
                ``(8) A member of the military forces of an allied or
            coalition nation who is participating in a joint operation,
            joint exercise, humanitarian mission, or peacekeeping mission
            with the Armed Forces of the United States, but--
                        ``(A) only if--
                                ``(i) such disbursing official action for
                            members of the military forces of that nation
                            is approved by the senior United States
                            military commander assigned to that operation
                            or mission; and
                                ``(ii) that nation has guaranteed payment
                            for any deficiency resulting from such
                            disbursing official action; and
                        ``(B) in the case of negotiable instruments, only
                    for a negotiable instrument drawn on a financial
                    institution located in the United States or on a
                    foreign branch of such an institution.''.
        (b) Technical Amendments.--That subsection is further amended--
                (1) by striking ``only for--'' in the matter preceding
            paragraph (1) and inserting ``only for the following:'';
                (2) by striking ``an'' at the beginning of paragraph (1)
            and inserting ``An'';
                (3) by striking ``personnel'' in paragraphs (2) and (6) and
            inserting ``Personnel'';
                (4) by striking ``a'' at the beginning of paragraphs (3),
            (4), (5), and (7) and inserting ``A'';
                (5) by striking the semicolon at the end of paragraphs (1)
            through (5) and inserting a period;
                (6) by striking ``; or'' at the end of paragraph (6) and
            inserting a period; and
                (7) by striking ``1752(1))'' in paragraph (7) and inserting
            ``1752(1)))''.

    SEC. 1207. REQUIREMENTS FOR TRANSFER TO FOREIGN COUNTRIES OF CERTAIN
                  SPECIFIED TYPES OF EXCESS AIRCRAFT.

        (a) Expansion of Transfer Requirement.--Section 2581 of title 10,
    United States Code, is amended--
                (1) in subsection (a)(1), by striking ``UH-1 Huey
            helicopter or AH-1 Cobra helicopter'' and inserting ``UH-1 Huey
            aircraft, AH-1 Cobra aircraft, T-2 Buckeye aircraft, or T-37
            Tweet aircraft''; and
                (2) by striking ``helicopter'' each subsequent place it
            appears in such section and inserting ``aircraft''.
        (b) Clerical Amendments.--(1) The heading of such section is
    amended to read as follows:
    ``Sec. 2581. Specified excess aircraft: requirements for transfer to
                  foreign countries''.
        (2) The item relating to such section in the table of sections at
    the beginning of chapter 153 of such title is amended to read as
    follows:

    ``2581. Specified excess aircraft: requirements for transfer to foreign
                                countries.''.

    SEC. 1208. LIMITATION ON NUMBER OF UNITED STATES MILITARY PERSONNEL IN
                  COLOMBIA.

        (a) Limitation.--None of the funds available to the Department of
    Defense for any fiscal year 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) Exclusion of Certain Members.--For purposes of determining
    compliance with the limitation in subsection (a), the Secretary of
    Defense may exclude the following military personnel:
                (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) National Security Waiver.--(1) The Secretary of Defense may
    waive the limitation in subsection (a) if the Secretary determines that
    such waiver is in the national security interest of the United States.
        (2) The Secretary shall notify the congressional defense committees
    not later 15 days after the date of the exercise of the waiver
    authority under paragraph (1).

    SEC. 1209. ASSESSMENT AND REPORT CONCERNING THE LOCATION OF NATO
                  HEADQUARTERS.

        (a) Assessment.--The Secretary of Defense shall conduct a full and
    complete assessment of costs to the United States associated with the
    location of the headquarters of the North Atlantic Treaty Organization
    (NATO) in Brussels, Belgium, and the costs and benefits of relocating
    that headquarters to a suitable location in another NATO member
    country, including those nations invited to join NATO at the Prague
    summit in 2002. The Secretary shall conduct such assessment in
    consultation with the Secretary of State.
        (b) Report to Congress.--Not later than 180 days after the date of
    the enactment of this Act, the Secretary of Defense shall submit to
    Congress a report of the findings of the assessment under subsection
    (a).

    SEC. 1210. SENSE OF CONGRESS ON REDEPLOYMENT OF UNITED STATES FORCES IN
                  EUROPE.

        (a) Findings.--Congress makes the following findings:
                (1) In March 1999, in its initial round of expansion, the
            North Atlantic Treaty Organization (NATO) admitted Poland, the
            Czech Republic, and Hungary to the Alliance.
                (2) At the Prague Summit on November 21-22, 2002, the NATO
            heads of state and government invited the countries of
            Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and
            Slovenia to join       the Alliance.
                (3) The countries admitted in the initial round of
            expansion referred to in paragraph (1) and the seven new
            invitee nations referred to in paragraph (2) will in
            combination significantly alter the nature of the Alliance.
                (4) During the first 50 years of the Alliance, NATO
            materially contributed to the security and stability of Western
            Europe, brining peace and prosperity to the member nations.
                (5) The expansion of NATO is an opportunity to assist the
            invitee nations in gaining the capabilities to ensure peace,
            prosperity, and democracy for themselves during the next 50
            years of the Alliance.
                (6) The military structure and mission of NATO has changed,
            no longer being focused on the threat of a Soviet invasion, but
            evolving to handle new missions in the area of crisis
            management, peacekeeping, and peace-support in the Euro-
            Atlantic area of operations.
        (b) Sense of Congress.--In light of the findings in subsection (a),
    it is the sense of Congress that--
                (1) the expansion of the North Atlantic Treaty Organization
            Alliance and the evolution of the military mission of that
            Alliance requires a fundamental reevaluation of the current
            posture of United States forces stationed in Europe; and
                (2) the President should--
                        (A) initiate a reevaluation referred to in
                    paragraph (1); and
                        (B) in carrying out such a reevaluation, consider a
                    military posture that takes maximum advantage of basing
                    and training opportunities in the newly admitted and
                    invitee states referred to in paragraphs (1) and (2),
                    respectively, of subsection (a).

    SEC. 1211. REPORT ON ACTIONS THAT COULD BE TAKEN REGARDING COUNTRIES
                  THAT INITIATE CERTAIN LEGAL ACTIONS AGAINST UNITED STATES
                  OFFICIALS.

        (a) Finding.--Congress finds that actions for or on behalf of a
    foreign government that constitute attempts to commence legal
    proceedings against, or attempts to compel the appearance of or
    production of documents from, any current or former official or
    employee of the United States or member of the Armed Forces of the
    United States relating to the performance of official duties
    constitutes a threat to the ability of the United States to take
    necessary and timely military action.
        (b) Report.--Not later than 60 days after the date of the enactment
    of this Act, the Secretary of Defense shall submit to Congress a report
    on appropriate steps that could be taken by the Department of Defense
    (including restrictions on military travel and limitations on military
    support and exchange programs) to respond to any action by a foreign
    government described in subsection (a).

    SEC. 1212. SENSE OF CONGRESS CONCERNING NAVY PORT CALLS IN ISRAEL.

        (a) Findings.--Congress finds the following:
                (1) The United States Sixth Fleet has not conducted regular
            visits to the port of Haifa, Israel, since the attack on the
            U.S.S. Cole in Aden, Yemen, on October 12, 2000, but previously
            visited that port on a regular basis, with an average of 90
            United States warships visiting Haifa each year.
                (2) The United States Navy has invested millions of dollars
            in expanding the capacity and capability of the port of Haifa
            to accommodate United States Navy requirements and the port of
            Haifa is among the most secure harbors in the world and offers
            reliable and efficient repair facilities with close proximity
            to capable air transport and communications.
                (3) The forward presence of United States Navy ships is a
            powerful deterrent to aggression and a tangible expression of
            American national interests.
                (4) The visits of the United States Sixth Fleet to Haifa
            demonstrate the historic friendship of the American and Israeli
            people and the commitment of the United States to the security
            and survival of the State of Israel.
        (b) Sense of Congress.--It is the sense of Congress that--
                (1) the Secretary of Defense and the United States Navy
            should engage with the Government of Israel and the Israel
            Defense Forces to establish appropriate and effective
            arrangements to ensure the safety of United States Navy vessels
            and personnel; and
                (2) upon such arrangements being made, the Sixth Fleet
            should resume regular port visits to Haifa, Israel.

    SEC. 1213. ASSISTANCE TO IRAQI CHILDREN INJURED DURING OPERATION IRAQI
                  FREEDOM.

        (a) Assistance.--The Secretary of Defense shall, to the maximum
    extent practicable, provide all necessary support in an expeditious
    manner to assist Iraqi children who were injured during Operation Iraqi
    Freedom.
        (b) Additional Requirements.--Assistance described in subsection
    (a) may be provided to a child only if adequate treatment from other
    sources in Iraq or neighboring countries is not available and only
    after completion of an evaluation by a physician or other appropriate
    medical personnel of the United States Armed Forces. In addition,
    assistance described in subsection (a) may be provided only if it would
    not adversely affect military operations of the United States.
        (c) Definition.--In this section, the term ``Operation Iraqi
    Freedom'' means operations of the United States Armed Forces, the armed
    forces of the United Kingdom, and the armed forces of other coalition
    member countries initiated on or about March 19, 2003--
                (1) to disarm Iraq of its weapons of mass destruction;
                (2) to enforce United Nations Security Council Resolution
            1441 (November 8, 2002) and other relevant Security Council
            resolutions with respect to Iraq; and
                (3) to liberate the people of Iraq from the regime of
            Saddam Hussein.

      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 2004 Cooperative Threat Reduction Funds Defined.--
    As used in this title, the term ``fiscal year 2004 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 $450,800,000 authorized
    to be appropriated to the Department of Defense for fiscal year 2004 in
    section 301(19) for Cooperative Threat Reduction programs, the
    following amounts may be obligated for the purposes specified:
                (1) For strategic offensive arms elimination in Russia,
            $86,400,000.
                (2) For strategic nuclear arms elimination in Ukraine,
            $3,900,000.
                (3) For nuclear weapons transportation security in Russia,
            $23,200,000.
                (4) For nuclear weapons storage security in Russia,
            $48,000,000.
                (5) For activities designated as Other Program Support,
            $13,100,000.
                (6) For defense and military contacts, $11,100,000.
                (7) For chemical weapons destruction in Russia,
            $171,500,000.
                (8) For biological weapons proliferation prevention in the
            former Soviet Union, $54,200,000.
                (9) For weapons of mass destruction proliferation
            prevention in the states of the former Soviet Union,
            $39,400,000.
        (b) Report on Obligation or Expenditure of Funds for Other
    Purposes.--No fiscal year 2004 Cooperative Threat Reduction funds may
    be obligated or expended for a purpose other than a purpose listed in
    paragraphs (1) through (9) 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 2004 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.
        (c) 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 2004 for a
    purpose listed in any of the paragraphs in subsection (a) in excess of
    the specific amount authorized for that purpose.
        (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 a purpose stated in any of
    paragraphs (5) through (8) of subsection (a) in excess of 125 percent
    of the specific amount authorized for such purpose.

    SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL CERTAIN PERMITS OBTAINED.

        (a) Limitation on Use of Funds.--With respect to a new project or
    an incomplete project carried out by the Department of Defense under
    Cooperative Threat Reduction programs, not more than 35 percent of the
    total costs of the project may be obligated or expended from
    Cooperative Threat Reduction funds for any fiscal year until--
                (1) the Secretary of Defense determines--
                        (A) in the case of a new project, the number and
                    type of permits that may be required for the lifetime
                    of the project in the proposed location or locations of
                    the project; and
                        (B) in the case of an incomplete project, the
                    number and type of permits that may be required for the
                    remaining lifetime of the project; and
                (2) the government of the state of the former Soviet Union
            in which the project is being or is proposed to be carried out
            obtains and transmits copies of all such permits to the
            Department of Defense.
        (b) Definitions.--In this section, with respect to a project under
    Cooperative Threat Reduction programs:
                (1) New project.--The term ``new project'' means a project
            for which no funds have been obligated or expended as of the
            date of the enactment of this Act.
                (2) Incomplete project.--The term ``incomplete project''
            means a project for which funds have been obligated or expended
            before the date of the enactment of this Act and which is not
            completed as of such date.
                (3) Permit.--The term ``permit'' means any local or
            national permit for development, general construction,
            environmental, land use, or other purposes that is required in
            the state of the former Soviet Union in which the project is
            being or is proposed to be carried out.

    SEC. 1304. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL RESEARCH IN THE
                  FORMER SOVIET UNION.

        Of the funds authorized to be appropriated for biological weapons
    proliferation prevention pursuant to section 1302, no funds may be
    obligated for cooperative biodefense research or bioattack early
    warning and preparedness under a Cooperative Threat Reduction program
    at a site in a state of the former Soviet Union until the Secretary of
    Defense notifies Congress that--
                (1) the Secretary has determined, through access to the
            site, that no biological weapons research prohibited by
            international law is being conducted at the site;
                (2) the Secretary has assessed the vulnerability of the
            site to external or internal attempts to exploit or obtain
            dangerous pathogens illicitly; and
                (3) the Secretary has begun to implement appropriate
            security measures at the site to reduce that vulnerability and
            to prevent the diversion of dangerous pathogens from legitimate
            research.

    SEC. 1305. AUTHORITY AND FUNDS FOR NONPROLIFERATION AND DISARMAMENT.

        The Secretary of Defense is authorized to transfer $78,000,000 in
    prior year Cooperative Threat Reduction funds from the Department of
    Defense to the Department of State Nonproliferation and Disarmament
    Fund for disarmament and nonproliferation purposes outside the
    territory of the former Soviet Union.

    SEC. 1306. REQUIREMENT FOR ON-SITE MANAGERS.

        (a) On-Site Manager Requirement.--Before obligating any Cooperative
    Threat Reduction funds for a project described in subsection (b), the
    Secretary of Defense shall appoint a United States Federal Government
    employee as an on-site manager.
        (b) Projects Covered.--Subsection (a) applies to a project--
                (1) to be located in a state of the former Soviet Union;
                (2) which involves dismantlement, destruction, or storage
            facilities, or construction of a facility; and
                (3) with respect to which the total contribution by the
            Department of Defense is expected to exceed $25,000,000.
        (c) Duties of On-Site Manager.--The on-site manager appointed under
    subsection (a) shall--
                (1) develop, in cooperation with representatives from
            governments of countries participating in the project, a list
            of those steps or activities critical to achieving the
            project's disarmament or nonproliferation goals;
                (2) establish a schedule for completing those steps or
            activities;
                (3) meet with all participants to seek assurances that
            those steps or activities are being completed on schedule; and
                (4) suspend United States participation in a project when a
            non-United States participant fails to complete a scheduled
            step or activity on time, unless directed by the Secretary of
            Defense to resume United States participation.
        (d) Steps or Activities.--Steps or activities referred to in
    subsection (c)(1) are those activities that, if not completed, will
    prevent a project from achieving its disarmament or nonproliferation
    goals, including, at a minimum, the following:
                (1) Identification and acquisition of permits (as defined
            in section 1303(b)).
                (2) Verification that the items, substances, or
            capabilities to be dismantled, secured, or otherwise modified
            are available for dismantlement, securing, or modification.
                (3) Timely provision of financial, personnel, management,
            transportation, and other resources.
        (e) Notification to Congress.--In any case in which the Secretary
    of Defense directs an on-site manager to resume United States
    participation in a project under subsection (c)(4), the Secretary shall
    concurrently notify Congress of such direction.
        (f) Effective Date.--This section shall take effect six months
    after the date of the enactment of this Act.

    SEC. 1307. PROVISIONS RELATING TO FUNDING FOR CHEMICAL WEAPONS
                  DESTRUCTION FACILITY IN RUSSIA.

        (a) Inapplicability of Limitation on Use of Funds.--(1) The
    conditions described in section 1305 of the National Defense
    Authorization Act for Fiscal Year 2000 (Public Law 106-65; 22 U.S.C.
    5952 note) shall not apply to the obligation and expenditure of funds
    available for obligation during fiscal year 2004 for the planning,
    design, or construction of a chemical weapons destruction facility in
    Russia if the President submits to Congress a written certification
    that includes--
                (A) a statement as to why waiving the conditions is
            important to the national security interests of the United
            States;
                (B) a full and complete justification for exercising this
            waiver; and
                (C) a plan to promote a full and accurate disclosure by
            Russia regarding the size, content, status, and location of its
            chemical weapons stockpile.
        (2) The authority under paragraph (1) shall expire on September 30,
    2004.
        (b) Availability of Funds.--(1) Except as provided in paragraph
    (2), of the funds that may be obligated for a chemical weapons
    destruction facility in Russia as specified in section 1302(a)(7), the
    Secretary of Defense may not obligate an amount greater than two times
    the amount obligated by Russia and any other state for the planning,
    design, construction, or operation of a chemical weapons destruction
    facility in Russia.
        (2) Of the funds that may be obligated for a chemical weapons
    destruction facility in Russia as specified in section 1302(a)(7),
    $71,500,000 shall be available for obligation on and after October 1,
    2003.

    SEC. 1308. STUDY RELATING TO EX-SOVIET URANIUM AND PLUTONIUM.

        The Secretary of Defense shall submit a study to Congress not later
    than one year after the date of the enactment of this Act, examining
    the costs and benefits of purchasing all the ex-Soviet weapons-grade
    uranium and plutonium in fiscal year 2005, and safeguarding it from
    smuggling or theft until it can be rendered unusable for weapons.

                     TITLE XIV--SERVICES ACQUISITION REFORM

    SEC. 1401. SHORT TITLE.

        This title may be cited as the ``Services Acquisition Reform Act of
    2003''.

    SEC. 1402. EXECUTIVE AGENCY DEFINED.

        In this title, the term ``executive agency'' has the meaning given
    that term in section 4(1) of the Office of Federal Procurement Policy
    Act (41 U.S.C. 403(1)), unless specifically stated otherwise.

                 Subtitle A--Acquisition Workforce and Training

    SEC. 1411. DEFINITION OF ACQUISITION.

        Section 4 of the Office of Federal Procurement Policy Act (41
    U.S.C. 403) is amended by adding at the end the following:
                ``(16) The term `acquisition'--
                        ``(A) means the process of acquiring, with
                    appropriated funds, by contract for purchase or lease,
                    property or services (including construction) that
                    support the missions and goals of an executive agency,
                    from the point at which the requirements of the
                    executive agency are established in consultation with
                    the chief acquisition officer of the executive agency;
                    and
                        ``(B) includes--
                                ``(i) the process of acquiring property or
                            services that are already in existence, or that
                            must be created, developed, demonstrated, and
                            evaluated;
                                ``(ii) the description of requirements to
                            satisfy agency needs;
                                ``(iii) solicitation and selection of
                            sources;
                                ``(iv) award of contracts;
                                ``(v) contract performance;
                                ``(vi) contract financing:
                                ``(vii) management and measurement of
                            contract performance through final delivery and
                            payment; and
                                ``(viii) technical and management functions
                            directly related to the process of fulfilling
                            agency requirements by contract.''.

    SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND.

        (a) Purposes.--The purposes of this section are to ensure that the
    Federal acquisition workforce--
                (1) adapts to fundamental changes in the nature of Federal
            Government acquisition of property and services associated with
            the changing roles of the Federal Government; and
                (2) acquires new skills and a new perspective to enable it
            to contribute effectively in the changing environment of the
            21st century.
        (b) Establishment of Fund.--Section 37 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 433) is amended by adding at the end
    of subsection (h) the following new paragraph:
                ``(3) Acquisition workforce training fund.--(A) The
            Administrator of General Services shall establish an
            acquisition workforce training fund. The Administrator shall
            manage the fund through the Federal Acquisition Institute to
            support the training of the acquisition workforce of the
            executive agencies other than the Department of Defense. The
            Administrator shall consult with the Administrator for Federal
            Procurement Policy in managing the fund.
                ``(B) There shall be credited to the acquisition workforce
            training fund 5 percent of the fees collected by executive
            agencies (other than the Department of Defense) under the
            following contracts:
                        ``(i) Governmentwide task and delivery-order
                    contracts entered into under sections 303H and 303I of
                    the Federal Property and Administrative Services Act of
                    1949 (41 U.S.C. 253h and 253i).
                        ``(ii) Governmentwide contracts for the acquisition
                    of information technology as defined in section 11101
                    of title 40, United States Code, and multiagency
                    acquisition contracts for such technology authorized by
                    section 11314 of such title.
                        ``(iii) Multiple-award schedule contracts entered
                    into by the Administrator of General Services.
                ``(C) The head of an executive agency that administers a
            contract described in subparagraph (B) shall remit to the
            General Services Administration the amount required to be
            credited to the fund with respect to such contract at the end
            of each quarter of the fiscal year.
                ``(D) The Administrator of General Services, through the
            Office of Federal Acquisition Policy, shall ensure that funds
            collected for training under this section are not used for any
            purpose other than the purpose specified in subparagraph (A).
                ``(E) Amounts credited to the fund shall be in addition to
            funds requested and appropriated for education and training
            referred to in paragraph (1).
                ``(F) Amounts credited to the fund shall remain available
            until expended.''.
        (c) Exception.--This section and the amendments made by this
    section shall not apply to the acquisition workforce of the Department
    of Defense.

    SEC. 1413. ACQUISITION WORKFORCE RECRUITMENT PROGRAM.

        (a) Authority To Carry Out Program.--For purposes of sections 3304,
    5333, and 5753 of title 5, United States Code, the head of a department
    or agency of the United States (including the Secretary of Defense) may
    determine that certain Federal acquisition positions are ``shortage
    category'' positions in order to recruit and appoint directly to
    positions of employment in the department or agency highly qualified
    persons, such as any person who--
                (1) holds a bachelor's degree from an accredited
            institution of higher education;
                (2) holds, from an accredited law school or an accredited
            institution of higher education--
                        (A) a law degree; or
                        (B) a masters or equivalent degree in business
                    administration, public administration, or systems
                    engineering; or
                (3) has significant experience with commercial acquisition
            practices, terms, and conditions.
        (b) Requirements.--The exercise of authority to take a personnel
    action under this section shall be subject to policies prescribed by
    the Office of Personnel Management that govern direct recruitment,
    including policies requiring appointment of a preference eligible who
    satisfies the qualification requirements.
        (c) Termination of Authority.--The head of a department or agency
    may not appoint a person to a position of employment under this section
    after September 30, 2007.
        (d) Report.--Not later than March 31, 2007, the Administrator for
    Federal Procurement Policy shall submit to Congress a report on the
    implementation of this section. The report shall include--
                (1) the Administrator's assessment of the efficacy of the
            exercise of the authority provided in this section in
            attracting employees with unusually high qualifications to the
            acquisition workforce; and
                (2) any recommendations considered appropriate by the
            Administrator on whether the authority to carry out the program
            should be extended.

    SEC. 1414. ARCHITECTURAL AND ENGINEERING ACQUISITION WORKFORCE.

        The Administrator for Federal Procurement Policy, in consultation
    with the Secretary of Defense, the Administrator of General Services,
    and the Director of the Office of Personnel Management, shall develop
    and implement a plan to ensure that the Federal Government maintains
    the necessary capability with respect to the acquisition of
    architectural and engineering services to--
                (1) ensure that Federal Government employees have the
            expertise to determine agency requirements for such services;
                (2) establish priorities and programs (including
            acquisition plans);
                (3) establish professional standards;
                (4) develop scopes of work; and
                (5) award and administer contracts for such services.

            Subtitle B--Adaptation of Business Acquisition Practices

              PART I--ADAPTATION OF BUSINESS MANAGEMENT PRACTICES

    SEC. 1421. CHIEF ACQUISITION OFFICERS.

        (a) Appointment of Chief Acquisition Officers.--(1) Section 16 of
    the Office of Federal Procurement Policy Act (41 U.S.C. 414) is amended
    to read as follows:

    ``SEC. 16. CHIEF ACQUISITION OFFICERS.

        ``(a) Establishment of Agency Chief Acquisition Officers.--The head
    of each executive agency (other than the Department of Defense) shall
    appoint or designate a non-career employee as Chief Acquisition Officer
    for the agency, who shall--
                ``(1) have acquisition management as that official's
            primary duty; and
                ``(2) advise and assist the head of the executive agency
            and other agency officials to ensure that the mission of the
            executive agency is achieved through the management of the
            agency's acquisition activities.
        ``(b) Authority and Functions of Agency Chief Acquisition
    Officers.--The functions of each Chief Acquisition Officer shall
    include--
                ``(1) monitoring the performance of acquisition activities
            and acquisition programs of the executive agency, evaluating
            the performance of those programs on the basis of applicable
            performance measurements, and advising the head of the
            executive agency regarding the appropriate business strategy to
            achieve the mission of the executive agency;
                ``(2) increasing the use of full and open competition in
            the acquisition of property and services by the executive
            agency by establishing policies, procedures, and practices that
            ensure that the executive agency receives a sufficient number
            of sealed bids or competitive proposals from responsible
            sources to fulfill the Government's requirements (including
            performance and delivery schedules) at the best value
            considering the nature of the property or service procured;
                ``(3) making acquisition decisions consistent with all
            applicable laws and establishing clear lines of authority,
            accountability, and responsibility for acquisition
            decisionmaking within the executive agency;
                ``(4) managing the direction of acquisition policy for the
            executive agency, including implementation of the unique
            acquisition policies, regulations, and standards of the
            executive agency;
                ``(5) developing and maintaining an acquisition career
            management program in the executive agency to ensure that there
            is an adequate professional workforce; and
                ``(6) as part of the strategic planning and performance
            evaluation process required under section 306 of title 5,
            United States Code, and sections 1105(a)(28), 1115, 1116, and
            9703 of title 31, United States Code--
                        ``(A) assessing the requirements established for
                    agency personnel regarding knowledge and skill in
                    acquisition resources management and the adequacy of
                    such requirements for facilitating the achievement of
                    the performance goals established for acquisition
                    management;
                        ``(B) in order to rectify any deficiency in meeting
                    such requirements, developing strategies and specific
                    plans for hiring, training, and professional
                    development; and
                        ``(C) reporting to the head of the executive agency
                    on the progress made in improving acquisition
                    management capability.''.
        (2) The item relating to section 16 in the table of contents in
    section 1(b) of such Act is amended to read as follows:

    ``Sec. 16. Chief Acquisition Officers.''.
        (b) References to Senior Procurement Executive.--
                (1) Amendment to the office of federal policy act.--
                        (A) Subsections (a)(2)(A) and (b) of section 20 of
                    the Office of Federal Procurement Policy Act (41 U.S.C.
                    418(a)(2)(A), (b)) are amended by striking ``senior
                    procurement executive'' each place it appears and
                    inserting ``Chief Acquisition Officer''.
                        (B) Subsection (c)(2)(A)(ii) of section 29 of the
                    Office of Federal Procurement Policy Act (41 U.S.C.
                    425(c)(2)(A)(ii)) is amended by striking ``senior
                    procurement executive'' and inserting ``Chief
                    Acquisition Officer''.
                        (C) Subsection (c) of section 37 of the Office of
                    Federal Procurement Policy Act (41 U.S.C. 433(c)) is
                    amended--
                                (i) by striking ``Senior Procurement
                            Executive'' in the heading and inserting
                            ``Chief Acquisition Officer''; and
                                (ii) by striking ``senior procurement
                            executive'' each place it appears and inserting
                            ``Chief Acquisition Officer''.
                (2) Amendment to title iii of the federal property and
            administrative services act of 1949.--Sections 302C(b) and
            303(f)(1)(B)(iii) of the Federal Property and Administrative
            Services Act of 1949 (41 U.S.C. 252c, 253) are amended by
            striking ``senior procurement executive'' each place it appears
            and inserting ``Chief Acquisition Officer''.
                (3) Amendment to title 10, united states code.--The
            following sections of title 10, United States Code are amended
            by striking ``senior procurement executive'' each place it
            appears and inserting ``Chief Acquisition Officer'':
                        (A) Section 133(c)(1).
                        (B) Subsections (d)(2)(B) and (f)(1) of section
                    2225.
                        (C) Section 2302c(b).
                        (D) Section 2304(f)(1)(B)(iii).
                        (E) Section 2359a(i).
                (4) References.--Any reference to a senior procurement
            executive of a department or agency of the United States in any
            other provision of law or regulation, document, or record of
            the United States shall be deemed to be a reference to the
            Chief Acquisition Officer of the department or agency.
        (c) Technical Correction.--Section 1115(a) of title 31, United
    States Code, is amended by striking ``section 1105(a)(29)'' and
    inserting ``section 1105(a)(28)''.

    SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL.

        (a) Establishment of Council.--The Office of Federal Procurement
    Policy Act (41 U.S.C. 403 et seq.) is amended by inserting after
    section 16 the following new section:

    ``SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL.

        ``(a) Establishment.--There is established in the executive branch
    a Chief Acquisition Officers Council.
        ``(b) Membership.--The members of the Council shall be as follows:
                ``(1) The Deputy Director for Management of the Office of
            Management and Budget, who shall act as Chairman of the
            Council.
                ``(2) The Administrator for Federal Procurement Policy.
                ``(3) The chief acquisition officer of each executive
            agency.
                ``(4) The Under Secretary of Defense for Acquisition,
            Technology, and Logistics.
                ``(5) Any other officer or employee of the United States
            designated by the Chairman.
        ``(c) Leadership; Support.--(1) The Administrator for Federal
    Procurement Policy shall lead the activities of the Council on behalf
    of the Deputy Director for Management.
        ``(2)(A) The Vice Chairman of the Council shall be selected by the
    Council from among its members.
        ``(B) The Vice Chairman shall serve a 1-year term, and may serve
    multiple terms.
        ``(3) The Administrator of General Services shall provide
    administrative and other support for the Council.
        ``(d) Principal Forum.--The Council is designated the principal
    interagency forum for monitoring and improving the Federal acquisition
    system.
        ``(e) Functions.--The Council shall perform functions that include
    the following:
                ``(1) Develop recommendations for the Director of the
            Office of Management and Budget on Federal acquisition policies
            and requirements.
                ``(2) Share experiences, ideas, best practices, and
            innovative approaches related to Federal acquisition.
                ``(3) Assist the Administrator in the identification,
            development, and coordination of multiagency projects and other
            innovative initiatives to improve Federal acquisition.
                ``(4) Promote effective business practices that ensure the
            timely delivery of best value products to the Federal
            Government and achieve appropriate public policy objectives.
                ``(5) Further integrity, fairness, competition, openness,
            and efficiency in the Federal acquisition system.
                ``(6) Work with the Office of Personnel Management to
            assess and address the hiring, training, and professional
            development needs of the Federal Government related to
            acquisition.
                ``(7) Work with the Administrator and the Federal
            Acquisition Regulatory Council to promote the business
            practices referred to in paragraph (4) and other results of the
            functions carried out under this subsection.''.
        (b) Clerical Amendment.--The table of contents in section 1(b) of
    such Act is amended by inserting after the item relating to section 16
    the following new item:

    ``Sec. 16A. Chief Acquisition Officers Council.''.

    SEC. 1423. STATUTORY AND REGULATORY REVIEW.

        (a) Establishment.--Not later than 90 days after the date of the
    enactment of this Act, the Administrator for Federal Procurement Policy
    shall establish an advisory panel to review laws and regulations
    regarding the use of commercial practices, performance-based
    contracting, the performance of acquisition functions across agency
    lines of responsibility, and the use of Governmentwide contracts.
        (b) Membership.--The panel shall be composed of at least nine
    individuals who are recognized experts in acquisition law and
    Government acquisition policy. In making appointments to the panel, the
    Administrator shall--
                (1) consult with the Secretary of Defense, the
            Administrator of General Services, the Committees on Armed
            Services and Government Reform of the House of Representatives,
            and the Committees on Armed Services and Governmental Affairs
            of the Senate, and
                (2) ensure that the members of the panel reflect the
            diverse experiences in the public and private sectors.
        (c) Duties.--The panel shall--
                (1) review all Federal acquisition laws and regulations
            with a view toward ensuring effective and appropriate use of
            commercial practices and performance-based contracting; and
                (2) make any recommendations for the repeal or amendment of
            such laws or regulations that are considered necessary as a
            result of such review--
                        (A) to eliminate any provisions in such laws or
                    regulations that are unnecessary for the effective,
                    efficient, and fair award and administration of
                    contracts for the acquisition by the Federal Government
                    of goods and services;
                        (B) to ensure the continuing financial and ethical
                    integrity of acquisitions by the Federal Government;
                    and
                        (C) to protect the best interests of the Federal
                    Government.
        (d) Report.--Not later than one year after the establishment of the
    panel, the panel shall submit to the Administrator and to the
    Committees on Armed Services and Government Reform of the House of
    Representatives and the Committees on Armed Services and Governmental
    Affairs of the Senate a report containing a detailed statement of the
    findings, conclusions, and recommendations of the panel.

                    PART II--OTHER ACQUISITION IMPROVEMENTS

    SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT FRANCHISE FUND PROGRAMS.

        Section 403(f) of the Federal Financial Management Act of 1994
    (Public Law 103-356; 31 U.S.C. 501 note) is amended by striking
    ``October 1, 2003'' and inserting ``October 1, 2006''.

    SEC. 1427. AGENCY ACQUISITION PROTESTS.

        (a) Defense Contracts.--(1) Chapter 137 of title 10, United States
    Code, is amended by inserting after section 2305a the following new
    section:
    ``Sec. 2305b. Protests
        ``(a) In General.--An interested party may protest an acquisition
    of supplies or services by an agency based on an alleged violation of
    an acquisition law or regulation, and a decision regarding such alleged
    violation shall be made by the agency in accordance with this section.
        ``(b) Restriction on Contract Award Pending Decision.--(1) Except
    as provided in paragraph (2), a contract may not be awarded by an
    agency after a protest concerning the acquisition has been submitted
    under this section and while the protest is pending.
        ``(2) The head of the acquisition activity responsible for the
    award of the contract may authorize the award of a contract,
    notwithstanding pending protest under this section, upon making a
    written finding that urgent and compelling circumstances do not allow
    for waiting for a decision on the protest.
        ``(c) Restriction on Contract Performance Pending Decision.--(1)
    Except as provided in paragraph (2), performance of a contract may not
    be authorized (and performance of the contract shall cease if
    performance has already begun) in any case in which a protest of the
    contract award is submitted under this section before the later of--
                ``(A) the date that is 10 days after the date of contract
            award; or
                ``(B) the date that is five days after an agency debriefing
            date offered to an unsuccessful offeror for any debriefing that
            is requested and, when requested, is required, under section
            2305(b)(5) of this title.
        ``(2) The head of the acquisition activity responsible for the
    award of a contract may authorize performance of the contract
    notwithstanding a pending protest under this section upon making a
    written finding that urgent and compelling circumstances do not allow
    for waiting for a decision on the protest.
        ``(d) Deadline for Decision.--The head of an agency shall issue a
    decision on a protest under this section not later than the date that
    is 20 working days after the date on which the protest is submitted to
    such head of an agency.
        ``(e) Construction.--Nothing in this section shall affect the right
    of an interested party to file a protest with the Comptroller General
    under subchapter V of chapter 35 of title 31 or in the United States
    Court of Federal Claims.
        ``(f) Definitions.--In this section, the terms `protest' and
    `interested party' have the meanings given such terms in section 3551
    of title 31.''.
        (2) The table of sections at the beginning of such chapter is
    amended by inserting after the item relating to section 2305a the
    following new item:

    ``2305b. Protests.''.
        (b) Other Agencies.--Title III of the Federal Property and
    Administrative Services Act of 1949 is amended by inserting after
    section 303M (41 U.S.C. 253m) the following new section:

    ``SEC. 303N. PROTESTS.

        ``(a) In General.--An interested party may protest an acquisition
    of supplies or services by an executive agency based on an alleged
    violation of an acquisition law or regulation, and a decision regarding
    such alleged violation shall be made by the agency in accordance with
    this section.
        ``(b) Restriction on Contract Award Pending Decision.--(1) Except
    as provided in paragraph (2), a contract may not be awarded by an
    agency after a protest concerning the acquisition has been submitted
    under this section and while the protest is pending.
        ``(2) The head of the acquisition activity responsible for the
    award of a contract may authorize the award of the contract,
    notwithstanding a pending protest under this section, upon making a
    written finding that urgent and compelling circumstances do not allow
    for waiting for a decision on the protest.
        ``(c) Restriction on Contract Performance Pending Decision.--(1)
    Except as provided in paragraph (2), performance of a contract may not
    be authorized (and performance of the contract shall cease if
    performance has already begun) in any case in which a protest of the
    contract award is submitted under this section before the later of--
                ``(A) the date that is 10 days after the date of contract
            award; or
                ``(B) the date that is five days after an agency debriefing
            date offered to an unsuccessful offeror for any debriefing that
            is requested and, when requested, is required, under section
            303B(e) of this title.
        ``(2) The head of the acquisition activity responsible for the
    award of a contract may authorize performance of the contract
    notwithstanding a pending protest under this section upon making a
    written finding that urgent and compelling circumstances do not allow
    for waiting for a decision on the protest.
        ``(d) Deadline for Decision.--The head of an executive agency shall
    issue a decision on a protest under this section not later than the
    date that is 20 working days after the date on which the protest is
    submitted to the executive agency.
        ``(e) Construction.--Nothing in this section shall affect the right
    of an interested party to file a protest with the Comptroller General
    under subchapter V of chapter 35 of title 31, United States Code, or in
    the United States Court of Federal Claims.
        ``(f) Definitions.--In this section, the terms `protest' and
    `interested party' have the meanings given such terms in section 3551
    of title 31, United States Code.''.
        (c) Conforming Amendment.--Section 3553(d)(4) of title 31, United
    States Code, is amended--
                (1) in subparagraph (A), by striking ``or'' at the end;
                (2) by striking the period at the end of subparagraph (B)
            and inserting ``; or''; and
                (3) by adding at the end the following new subparagraph:
                ``(C) in the case of a protest of the same matter regarding
            such contract that is submitted under section 2305b of title 10
            or section 303N of the Federal Property and Administrative
            Services Act of 1949, the date that is 5 days after the date on
            which a decision on that protest is issued.''.

    SEC. 1428. IMPROVEMENTS IN CONTRACTING FOR ARCHITECTURAL AND
                  ENGINEERING SERVICES.

        (a) Title 10.--Section 2855(b) of title 10, United States Code, is
    amended--
                (1) in paragraph (2), by striking ``$85,000'' and inserting
            ``$300,000''; and
                (2) by adding at the end the following new paragraph:
        ``(4) The selection and competition requirements described in
    subsection (a) shall apply to any contract for architectural and
    engineering services (including surveying and mapping services) that is
    entered into by the head of an agency (as such term is defined in
    section 2302 of this title).''.
        (b) Architectural and Engineering Services.--Architectural and
    engineering services (as defined in section 1102 of title 40, United
    States Code) shall not be offered under multiple-award schedule
    contracts entered into by the Administrator of General Services or
    under Governmentwide task and delivery-order contracts entered into
    under sections 2304a and 2304b of title 10, United States Code, or
    sections 303H and 303I of the Federal Property and Administrative
    Services Act of 1949 (41 U.S.C. 253h and 253i) unless such services--
                (1) are performed under the direct supervision of a
            professional engineer licensed in a State; and
                (2) are awarded in accordance with the selection procedures
            set forth in chapter 11 of title 40, United States Code.

    SEC. 1429. AUTHORIZATION OF TELECOMMUTING FOR FEDERAL CONTRACTORS.

        (a) Amendment to the Federal Acquisition Regulation.--Not later
    than 180 days after the date of the enactment of this Act, the Federal
    Acquisition Regulatory Council shall amend the Federal Acquisition
    Regulation issued in accordance with sections 6 and 25 of the Office of
    Federal Procurement Policy Act (41 U.S.C. 405 and 421) to permit
    telecommuting by employees of Federal Government contractors in the
    performance of contracts entered into with executive agencies.
        (b) Content of Amendment.--The regulation issued pursuant to
    subsection (a) shall, at a minimum, provide that solicitations for the
    acquisition of property or services may not set forth any requirement
    or evaluation criteria that would--
                (1) render an offeror ineligible to enter into a contract
            on the basis of the inclusion of a plan of the offeror to
            permit the offeror's employees to telecommute; or
                (2) reduce the scoring of an offer on the basis of the
            inclusion in the offer of a plan of the offeror to permit the
            offeror's employees to telecommute, unless the contracting
            officer concerned first--
                        (A) determines that the requirements of the agency,
                    including the security requirements of the agency,
                    cannot be met if the telecommuting is permitted; and
                        (B) documents in writing the basis for that
                    determination.
        (c) GAO Report.--Not later than one year after the date on which
    the regulation required by subsection (a) is published in the Federal
    Register, the Comptroller General shall submit to Congress--
                (1) an evaluation of--
                        (A) the conformance of the regulations with law;
                    and
                        (B) the compliance by executive agencies with the
                    regulations; and
                (2) any recommendations that the Comptroller General
            considers appropriate.
        (d) Definition.--In this section, the term ``executive agency'' has
    the meaning given that term in section 4 of the Office of Federal
    Procurement Policy Act (41 U.S.C. 403).

                        Subtitle C--Contract Incentives

    SEC. 1431. INCENTIVES FOR CONTRACT EFFICIENCY.

        (a) Incentives for Contract Efficiency.--The Office of Federal
    Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by adding at
    the end the following new section:

    ``SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF SERVICES CONTRACTS.

        ``(a) Options for Services Contracts.--An option included in a
    contract for services to extend the contract by one or more periods may
    provide that it be exercised on the basis of exceptional performance by
    the contractor. A contract that contains such an option provision shall
    include performance standards for measuring performance under the
    contract, and to the maximum extent practicable be performance-based.
    Such option provision shall only be exercised in accordance with
    applicable provisions of law or regulation that set forth restrictions
    on the duration of the contract containing the option.
        ``(b) Definition of Performance-Based.--In this section, the term
    `performance-based', with respect to a contract, task order, or
    contracting, means that the contract, task order, or contracting,
    respectively, includes the use of performance work statements that set
    forth contract requirements in clear, specific, and objective terms
    with measurable outcomes.''.
        (b) Clerical and Technical Amendments.--(1) The table of contents
    in section 1(b) of such Act is amended by striking the last item and
    inserting the following:

    ``Sec. 40. Protection of constitutional rights of contractors.
    ``Sec. 41. Incentives for efficient performance of services
                                contracts.''.
        (2) The section before section 41 of such Act (as added by
    subsection (a)) is redesignated as section 40.

                  Subtitle D--Acquisitions of Commercial Items

    SEC. 1441. ADDITIONAL INCENTIVE FOR USE OF PERFORMANCE-BASED
                  CONTRACTING FOR SERVICES.

        (a) Other Contracts.--Section 41 of the Office of Federal
    Procurement Policy Act, as added by section 1431, is amended--
                (1) by redesignating subsection (b) as subsection (c); and
                (2) by inserting after subsection (a) the following new
            subsection:
        ``(b) Incentive for Use of Performance-Based Services Contracts.--
    (1) A performance-based contract for the procurement of services
    entered into by an executive agency or a performance-based task order
    for services issued by an executive agency may be treated as a contract
    for the procurement of commercial items if--
                ``(A) the contract or task order sets forth specifically
            each task to be performed and, for each task--
                        ``(i) defines the task in measurable, mission-
                    related terms; and
                        ``(ii) identifies the specific end products or
                    output to be achieved; and
                ``(B) the source of the services provides similar services
            to the general public under terms and conditions similar to
            those offered to the Federal Government.
        ``(2) The regulations implementing this subsection shall require
    agencies to collect and maintain reliable data sufficient to identify
    the contracts or task orders treated as contracts for commercial items
    using the authority of this subsection. The data may be collected using
    the Federal Procurement Data System or other reporting mechanism.
        ``(3) Not later than two years after the date of the enactment of
    this subsection, the Director of the Office of Management and Budget
    shall prepare and submit to the Committees on Governmental Affairs and
    on Armed Services of the Senate and the Committees on Government Reform
    and on Armed Services of the House of Representatives a report on the
    contracts or task orders treated as contracts for commercial items
    using the authority of this subsection. The report shall include data
    on the use of such authority both government-wide and for each
    department and agency.
        ``(4) The authority under this subsection shall expire 10 years
    after the date of the enactment of this subsection.''.
        (b) Center of Excellence in Service Contracting.--Not later than
    180 days after the date of the enactment of this Act, the Administrator
    for Federal Procurement Policy shall establish a center of excellence
    in contracting for services. The center of excellence shall assist the
    acquisition community by identifying, and serving as a clearinghouse
    for, best practices in contracting for services in the public and
    private sectors.
        (c) Repeal of Superseded Provision.--Subsection (b) of section 821
    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-
    218) is repealed.

    SEC. 1442. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT TYPES.

        Section 8002(d) of the Federal Acquisition Streamlining Act of 1994
    (Public Law 103-355; 108 Stat. 3387; 41 U.S.C. 264 note) is amended--
                (1) in paragraph (1), by striking ``and'';
                (2) by striking the period at the end of paragraph (2) and
            inserting ``; and''; and
                (3) by adding at the end the following new paragraph:
                ``(3) authority for use of a time and materials contract or
            a labor-hour contract for the procurement of commercial
            services that are commonly sold to the general public through
            such contracts.''.

    SEC. 1443. CLARIFICATION OF COMMERCIAL SERVICES DEFINITION.

        Subparagraph (F) of section 4(12) of the Office of Federal
    Procurement Policy Act (41 U.S.C. 403(12)(F)) is amended--
                (1) by striking ``catalog or''; and
                (2) by inserting ``or specific outcomes to be achieved''
            after ``performed''.

    SEC. 1444. DESIGNATION OF COMMERCIAL BUSINESS ENTITIES.

        (a) In General.--Section 4 of the Office of Federal Procurement
    Policy Act (41 U.S.C. 403), as amended by section 1411, is further
    amended--
                (1) by adding at the end of paragraph (12) the following
            new subparagraph:
                        ``(I) Items or services produced or provided by a
                    commercial entity.''; and
                (2) by adding at the end the following new paragraph:
                ``(17) The term `commercial entity' means any enterprise
            whose primary customers are other than the Federal Government.
            In order to qualify as a commercial entity, at least 90 percent
            (in dollars) of the sales of the enterprise over the past three
            business years must have been made to private sector
            entities.''.
        (b) Collection of Data.--Regulations implementing the amendments
    made by subsection (a) shall require agencies to collect and maintain
    reliable data sufficient to identify the contracts entered into or task
    orders awarded for items or services produced or provided by a
    commercial entity. The data may be collected using the Federal
    Procurement Data System or other reporting mechanism.
        (c) OMB Report.--Not later than two years after the date of the
    enactment of this subsection, the Director of the Office of Management
    and Budget shall prepare and submit to the Committees on Governmental
    Affairs and on Armed Services of the Senate and the Committees on
    Government Reform and on Armed Services of the House of Representatives
    a report on the contracts entered into or task orders awarded for items
    or services produced or provided by a commercial entity. The report
    shall include data on the use of such authority both government-wide
    and for each department and agency.
        (d) Comptroller General Review.--The Comptroller General shall
    review the implementation of the amendments made by subsection (a) to
    evaluate the effectiveness of such implementation in increasing the
    availability of items and services to the Federal Government at fair
    and reasonable prices.

                           Subtitle E--Other Matters

    SEC. 1451. AUTHORITY TO ENTER INTO CERTAIN PROCUREMENT-RELATED
                  TRANSACTIONS AND TO CARRY OUT CERTAIN PROTOTYPE PROJECTS.

        Title III of the Federal Property and Administrative Services Act
    of 1949 (41 U.S.C. 251 et seq.) is amended by adding at the end the
    following new section:

    ``SEC. 318. AUTHORITY TO ENTER INTO CERTAIN TRANSACTIONS FOR DEFENSE
                  AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR,
                  BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

        ``(a) Authority.--
                ``(1) In general.--The head of an executive agency who
            engages in basic research, applied research, advanced research,
            and development projects that--
                        ``(A) are necessary to the responsibilities of such
                    official's executive agency in the field of research
                    and development, and
                        ``(B) have the potential to facilitate defense
                    against or recovery from terrorism or nuclear,
                    biological, chemical, or radiological attack,
            may exercise the same authority (subject to the same
            restrictions and conditions) with respect to such research and
            projects as the Secretary of Defense may exercise under section
            2371 of title 10, United States Code, except for subsections
            (b) and (f) of such section 2371.
                ``(2) Prototype projects.--The head of an executive agency
            may, under the authority of paragraph (1), carry out prototype
            projects that meet the requirements of subparagraphs (A) and
            (B) of paragraph (1) in accordance with the requirements and
            conditions provided for carrying out prototype projects under
            section 845 of the National Defense Authorization Act for
            Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note). In
            applying the requirements and conditions of that section 845--
                        ``(A) subsection (c) of that section shall apply
                    with respect to prototype projects carried out under
                    this paragraph; and
                        ``(B) the Director of the Office of Management and
                    Budget shall perform the functions of the Secretary of
                    Defense under subsection (d) of that section.
                ``(3) Applicability to selected executive agencies.--
                        ``(A) OMB authorization required.--The head of an
                    executive agency may exercise authority under this
                    subsection only if authorized by the Director of the
                    Office of Management and Budget to do so.
                        ``(B) Relationship to authority of department of
                    homeland security.--The authority under this subsection
                    shall not apply to the Secretary of Homeland Security
                    while section 831 of the Homeland Security Act of 2002
                    (Public Law 107-296; 116 Stat. 2224) is in effect.
        ``(b) Annual Report.--The annual report of the head of an executive
    agency that is required under subsection (h) of section 2371 of title
    10, United States Code, as applied to the head of the executive agency
    by subsection (a), shall be submitted to the Committee on Governmental
    Affairs of the Senate and the Committee on Government Reform of the
    House of Representatives.
        ``(c) Regulations.--The Director of the Office of Management and
    Budget shall prescribe regulations to carry out this section.''.

    SEC. 1452. 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 before the period at the end
    the following: ``, except that such amount may be adjusted by the
    Administrator every five years to the amount equal to $100,000 in
    constant fiscal year 2003 dollars (rounded to the nearest $10,000)''.

    SEC. 1453. PROHIBITION ON USE OF QUOTAS.

        (a) In General.--After the date of enactment of this Act, the
    Office of Management and Budget may not establish, apply, or enforce
    any numerical goal, target, or quota for subjecting the employees of a
    department or agency of the Government to public-private competitions
    or converting such employees or the work performed by such employees to
    contractor performance under Office of Management and Budget Circular
    A-76 or any other administrative regulation, directive, or policy
    unless the goal, target, or quota is based on considered research and
    sound analysis of past activities and is consistent with the stated
    mission of the department or agency.
        (b) Limitations.--Subsection (a) shall not--
                (1) otherwise affect the implementation or enforcement of
            the Government Performance and Results Act of 1993 (107 Stat.
            285); or
                (2) prevent any agency of the Executive branch from
            subjecting work performed by Federal employees or private
            contractors to public-private competition or conversions.

    SEC. 1454. APPLICABILITY OF CERTAIN PROVISIONS TO SOLE SOURCE CONTRACTS
                  FOR GOODS AND SERVICES TREATED AS COMMERCIAL ITEMS.

        (a) In General.--No contract awarded on a sole source basis for the
    procurement of items or services that are treated as or deemed to be
    commercial items pursuant to the amendments made by section 1441, 1444,
    or 1457 of this Act shall be exempt from--
                (1) cost accounting standards promulgated pursuant to
            section 26 of the Office of Federal Procurement Policy Act (41
            U.S.C. 422); and
                (2) cost or pricing data requirements (commonly referred to
            as truth in negotiating) under section 2306a of title 10,
            United States Code, and section 304A of title III of the
            Federal Property and Administrative Services Act of 1949 (41
            U.S.C. 254b).
        (b) Limitation.--This section shall not apply to any contract in an
    amount not greater than $15,000,000.

    SEC. 1455. PUBLIC DISCLOSURE OF NONCOMPETITIVE CONTRACTING FOR THE
                  RECONSTRUCTION OF INFRASTRUCTURE IN IRAQ.

        (a) Disclosure Required.--
                (1) Publication and public availability.--The head of an
            executive agency of the United States that enters into a
            contract for the repair, maintenance, or construction of
            infrastructure in Iraq without full and open competition shall
            publish in the Federal Register or Commerce Business Daily and
            otherwise make available to the public, not later than 30 days
            after the date on which the contract is entered into, the
            following information:
                        (A) The amount of the contract.
                        (B) A brief description of the scope of the
                    contract.
                        (C) A discussion of how the executive agency
                    identified, and solicited offers from, potential
                    contractors to perform the contract, together with a
                    list of the potential contractors that were issued
                    solicitations for the offers.
                        (D) The justification and approval documents on
                    which was based the determination to use procedures
                    other than procedures that provide for full and open
                    competition.
                (2) Inapplicability to contracts after fiscal year 2013.--
            Paragraph (1) does not apply to a contract entered into after
            September 30, 2013.
        (b) Classified Information.--
                (1) Authority to withhold.--The head of an executive agency
            may--
                        (A) withhold from publication and disclosure under
                    subsection (a) any document that is classified for
                    restricted access in accordance with an Executive order
                    in the interest of national defense or foreign policy;
                    and
                        (B) redact any part so classified that is in a
                    document not so classified before publication and
                    disclosure of the document under subsection (a).
                (2) Availability to congress.--In any case in which the
            head of an executive agency withholds information under
            paragraph (1), the head of such executive agency shall make
            available an unredacted version of the document containing that
            information to the chairman and ranking member of each of the
            following committees of Congress:
                        (A) The Committee on Governmental Affairs of the
                    Senate and the Committee on Government Reform of the
                    House of Representatives.
                        (B) The Committees on Appropriations of the Senate
                    and House of Representatives.
                        (C) Each committee that the head of the executive
                    agency determines has legislative jurisdiction for the
                    operations of such department or agency to which the
                    information relates.
        (c) Fiscal Year 2003 Contracts.--This section shall apply to
    contracts entered into on or after October 1, 2002, except that, in the
    case of a contract entered into before the date of the enactment of
    this Act, subsection (a) shall be applied as if the contract had been
    entered into on the date of the enactment of this Act.
        (d) Relationship to Other Disclosure Laws.--Nothing in this section
    shall be construed as affecting obligations to disclose United States
    Government information under any other provision of law.
        (e) Definitions.--In this section, the terms ``executive agency''
    and ``full and open competition'' have the meanings given such terms in
    section 4 of the Office of Federal Procurement Policy Act (41 U.S.C.
    403).

    SEC. 1456. AMENDMENTS RELATING TO FEDERAL EMERGENCY PROCUREMENT
                  FLEXIBILITY.

        (a) Repeal of Sunset for Authorities Applicable to Procurements for
    Defense Against or Recovery From Terrorism or Nuclear, Biological,
    Chemical, or Radiological Attack.--Section 852 of the Homeland Security
    Act of 2002 (Public Law 107-296; 116 Stat. 2235) is amended by striking
    ``, but only if a solicitation of offers for the procurement is issued
    during the 1-year period beginning on the date of the enactment of this
    Act''.
        (b) Applicability of Increased Simplified Acquisition Threshold.--
    (1) The matter preceding paragraph (1) of section 853(a) of the
    Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2235) is
    amended to read as follows:
        ``(a) Threshold Amounts.--For a procurement referred to in section
    852, the simplified acquisition threshold referred to in section 4(11)
    of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11)) is
    deemed to be--''.
        (2) Subsections (b) and (c) of section 853 of such Act are
    repealed.
        (3) The heading of section 853 of such Act is amended to read as
    follows:

    ``SEC. 853. INCREASED SIMPLIFIED ACQUISITION THRESHOLD FOR CERTAIN
                  PROCUREMENTS.''.

        (4) The table of contents in section 1(b) of such Act is amended by
    striking the item relating to section 853 and inserting the following:

    ``Sec. 853. Increased simplified acquisition threshold for certain
                                procurements.''.
        (5) Section 18(c)(1) of the Office of Federal Procurement Policy
    Act (41 U.S.C. 416(c)(1)) is amended--
                (A) by striking ``or'' at the end of subparagraph (G);
                (B) by striking the period at the end of subparagraph (H)
            and inserting ``; or''; and
                (C) by adding at the end the following:
                ``(I) the procurement is by the head of an executive agency
            pursuant to the special procedures provided in section 853 of
            the Homeland Security Act of 2002 (Public Law 107-296).''.
        (c) Applicability of Certain Commercial Items Authorities.--(1)
    Subsection (a) of section 855 of the Homeland Security Act of 2002
    (Public Law 107-296; 116 Stat. 2236) is amended to read as follows:
        ``(a) Authority.--With respect to a procurement referred to in
    section 852, the head of an executive agency may deem any item or
    service to be a commercial item for the purpose of Federal procurement
    laws.''.
        (2) Subsection (b)(1) of section 855 of such Act is amended by
    striking ``to which any of the provisions of law referred to in
    subsection (a) are applied''.
        (d) Extension of Deadline for Review and Report.--Section 857(a) of
    the Homeland Security Act of 2002 (Public Law 107-296; 116 Stat. 2237)
    is amended by striking ``2004'' and inserting ``2006''.

          TITLE XV--HIGHER EDUCATION RELIEF OPPORTUNITIES FOR STUDENTS

    SEC. 1501. SHORT TITLE; REFERENCE.

        (a) Short Title.--This title may be cited as the ``Higher Education
    Relief Opportunities for Students Act of 2003''.
        (b) Reference.--References in this title to ``the Act'' are
    references to the Higher Education Act of 1965 (20 U.S.C. 1001 et
    seq.).

    SEC. 1502. WAIVER AUTHORITY FOR RESPONSE TO MILITARY CONTINGENCIES AND
                  NATIONAL EMERGENCIES.

        (a) Waivers and Modifications.--
                (1) In general.--Notwithstanding any other provision of
            law, unless enacted with specific reference to this section,
            the Secretary of Education (referred to in this title as the
            ``Secretary'') may waive or modify any statutory or regulatory
            provision applicable to the student financial assistance
            programs under title IV of the Act as the Secretary deems
            necessary in connection with a war or other military operation
            or national emergency to provide the waivers or modifications
            authorized by paragraph (2).
                (2) Actions authorized.--The Secretary is authorized to
            waive or modify any provision described in paragraph (1) as may
            be necessary to ensure that--
                        (A) recipients of student financial assistance
                    under title IV of the Act who are affected individuals
                    are not placed in a worse position financially in
                    relation to that financial assistance because of their
                    status as affected individuals;
                        (B) administrative requirements placed on affected
                    individuals who are recipients of student financial
                    assistance are minimized, to the extent possible
                    without impairing the integrity of the student
                    financial assistance programs, to ease the burden on
                    such students and avoid inadvertent, technical
                    violations or defaults;
                        (C) the calculation of ``annual adjusted family
                    income'' and ``available income'', as used in the
                    determination of need for student financial assistance
                    under title IV of the Act for any such affected
                    individual (and the determination of such need for his
                    or her spouse and dependents, if applicable), may be
                    modified to mean the sums received in the first
                    calendar year of the award year for which such
                    determination is made, in order to reflect more
                    accurately the financial condition of such affected
                    individual and his or her family;
                        (D) the calculation under section 484B(b)(2) of the
                    Act (20 U.S.C. 1091b(b)(2)) of the amount a student is
                    required to return in the case of an affected
                    individual may be modified so that no overpayment will
                    be required to be returned or repaid if the institution
                    has documented (i) the student's status as an affected
                    individual in the student's file, and (ii) the amount
                    of any overpayment discharged; and
                        (E) institutions of higher education, eligible
                    lenders, guaranty agencies, and other entities
                    participating in the student assistance programs under
                    title IV of the Act that are located in areas that are
                    declared disaster areas by any Federal, State or local
                    official in connection with a national emergency, or
                    whose operations are significantly affected by such a
                    disaster, may be granted temporary relief from
                    requirements that are rendered infeasible or
                    unreasonable by a national emergency, including due
                    diligence requirements and reporting deadlines.
        (b) Notice of Waivers or Modifications.--
                (1) In general.--Notwithstanding section 437 of the General
            Education Provisions Act (20 U.S.C. 1232) and section 553 of
            title 5, United States Code, the Secretary shall, by notice in
            the Federal Register, publish the waivers or modifications of
            statutory and regulatory provisions the Secretary deems
            necessary to achieve the purposes of this section.
                (2) Terms and conditions.--The notice under paragraph (1)
            shall include the terms and conditions to be applied in lieu of
    such statutory and regulatory provisions.
                (3) Case-by-case basis.--The Secretary is not required to
            exercise the waiver or modification authority under this
            section on a case-by-case basis.
        (c) Impact Report.--The Secretary shall, not later than 15 months
    after first exercising any authority to issue a waiver or modification
    under subsection (a), report to the Committee on Education and the
    Workforce of the House of Representatives and the Committee on Health,
    Education, Labor and Pensions of the Senate on the impact of any
    waivers or modifications issued pursuant to subsection (a) on affected
    individuals and the programs under title IV of the Act, and the basis
    for such determination, and include in such report the Secretary's
    recommendations for changes to the statutory or regulatory provisions
    that were the subject of such waiver or modification.
        (d) No Delay in Waivers and Modifications.--Sections 482(c) and 492
    of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall
    not apply to the waivers and modifications authorized or required by
    this title.

    SEC. 1503. TUITION REFUNDS OR CREDITS FOR MEMBERS OF ARMED FORCES.

        (a) Sense of Congress.--It is the sense of Congress that--
                (1) all institutions offering postsecondary education
            should provide a full refund to students who are affected
            individuals for that portion of a period of instruction such
            student was unable to complete, or for which such individual
            did not receive academic credit, because he or she was called
            up for active duty or active service; and
                (2) if affected individuals withdraw from a course of study
            as a result of such active duty or active service, such
            institutions should make every effort to minimize deferral of
            enrollment or reapplication requirements and should provide the
            greatest flexibility possible with administrative deadlines
            related to those applications.
        (b) Definition of Full Refund.--For purposes of this section, a
    full refund includes a refund of required tuition and fees, or a credit
    in a comparable amount against future tuition and fees.

    SEC. 1504. USE OF PROFESSIONAL JUDGMENT.

        A financial aid administrator shall be considered to be making a
    necessary adjustment in accordance with section 479A(a) of the Act if
    the administrator makes adjustments with respect to the calculation of
    the expected student or parent contribution (or both) of an affected
    individual, and adequately documents the need for the adjustment.

    SEC. 1505. DEFINITIONS.

        In this title:
                (1) Active duty.--The term ``active duty'' has the meaning
            given such term in section 101(d)(1) of title 10, United States
            Code, except that such term does not include active duty for
            training or attendance at a service school.
                (2) Affected individual.--The term ``affected individual''
            means an individual who--
                        (A) is serving on active duty during a war or other
                    military operation or national emergency;
                        (B) is performing qualifying National Guard duty
                    during a war or other military operation or national
                    emergency;
                        (C) resides or is employed in an area that is
                    declared a disaster area by any Federal, State, or
                    local official in connection with a national emergency;
                    or
                        (D) suffered direct economic hardship as a direct
                    result of a war or other military operation or national
                    emergency, as determined by the Secretary.
                (3) Military operation.--The term ``military operation''
            means a contingency operation as such term is defined in
            section 101(a)(13) of title 10, United States Code.
                (4) National emergency.--The term ``national emergency''
            means a national emergency declared by the President of the
            United States.
                (5) Serving on active duty.--The term ``serving on active
            duty during a war or other military operation or national
            emergency'' shall include service by an individual who is--
                        (A) a Reserve of an Armed Force ordered to active
                    duty under section 12301(a), 12301(g), 12302, 12304, or
                    12306 of title 10, United States Code, or any retired
                    member of an Armed Force ordered to active duty under
                    section 688 of such title, for service in connection
                    with a war or other military operation or national
                    emergency, regardless of the location at which such
                    active duty service is performed; and
                        (B) any other member of an Armed Force on active
                    duty in connection with such war, operation, or
                    emergency or subsequent actions or conditions who has
                    been assigned to a duty station at a location other
                    than the location at which such member is normally
                    assigned.
                (6) Qualifying national guard duty.--The term ``qualifying
            National Guard duty during a war or other military operation or
            national emergency'' means service as a member of the National
            Guard on full-time National Guard duty (as defined in section
            101(d)(5) of title 10, United States Code) under a call to
            active service authorized by the President or the Secretary of
            Defense for a period of more than 30 consecutive days under
            section 502(f) of title 32, United States Code, in connection
            with a war, another military operation, or a national emergency
            declared by the President and supported by Federal funds.

    SEC. 1506. TERMINATION OF AUTHORITY.

        The provisions of this title shall cease to be effective at the
    close of September 30, 2005.

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    SEC. 2001. SHORT TITLE.

        This division may be cited as the ``Military Construction
    Authorization Act for Fiscal Year 2004''.

                                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
    ------------------------------------------------------------------------
                                        Installation or
                 State                      location             Amount
    ------------------------------------------------------------------------
    Alabama........................  Redstone Arsenal.....        $5,500,000
    Alaska.........................  Fort Wainwright......      $138,800,000
    California.....................  Fort Irwin...........        $3,350,000
    Colorado.......................  Fort Carson..........        $2,150,000
    Georgia........................  Fort Benning.........       $34,500,000
                                     Fort Stewart/Hunter        $138,550,000
                                      Army Air Field......
    Hawaii.........................  Helemano Military            $1,400,000
                                      Reservation.
                                     Schofield Barracks...      $128,100,000
    Kansas.........................  Fort Leavenworth.....      $115,000,000
                                     Fort Riley...........       $40,000,000
    Kentucky.......................  Fort Knox............        $5,500,000
    Louisiana......................  Fort Polk............       $72,000,000
    Maryland.......................  Fort Meade...........        $9,600,000
    Massachusetts..................  Soldier Systems              $5,500,000
                                      Center, Natick......
    Missouri.......................  Fort Leonard Wood....        $5,900,000
    New Jersey.....................  Naval Air Engineering        $2,250,000
                                      Center, Lakehurst...
                                     Picatinny Arsenal....       $11,800,000
    New York.......................  Fort Drum............      $139,300,000
    North Carolina.................  Fort Bragg...........      $163,400,000
    Oklahoma.......................  Fort Sill............        $5,500,000
    Texas..........................  Fort Bliss...........        $5,400,000
                                     Fort Hood............       $56,700,000
    Virginia.......................  Fort Belvoir.........        $7,000,000
                                     Fort Lee.............        $3,850,000
                                     Fort Myer............        $9,000,000
    Washington.....................  Fort Lewis...........        $3,900,000
                                                           -----------------
                                         Total............    $1,108,500,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Subject to subsection (c), 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
    ------------------------------------------------------------------------
    Germany........................  Grafenwoehr............     $76,000,000
                                     Heidelberg.............     $17,000,000
                                     Hohenfels..............     $13,200,000
                                     Vilseck................     $31,000,000
    Italy..........................  Aviano Air Base........     $28,500,000
                                     Livorno................     $22,000,000
    Korea..........................  Camp Humphreys.........    $191,150,000
    Kwajalein......................  Kwajalein..............      $9,400,000
                                                             ---------------
                                     Total..................    $388,250,000
    ------------------------------------------------------------------------

        (c) Condition on Projects Authorization.--The authority of the
    Secretary of the Army to proceed with the projects at Camp Humphreys,
    Korea, referred to in the table in subsection (b), and to obligate
    amounts appropriated pursuant to the authorization of appropriations in
    section 2104(a)(2) in connection with such project, is subject to the
    condition that the Secretary submit to the congressional defense
    committees written notice in advance that the United States and the
    Republic of Korea have entered into an agreement to ensure the
    availability and use of land sufficient for such projects.

    SEC. 2102. FAMILY HOUSING.

        (a) Construction and Acquisition.--Using amounts appropriated
    pursuant to the authorization of appropriations in section
    2104(a)(5)(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............  140 Units..................   $64,000,000
    Arizona.................................  Fort Huachuca..............  220 Units..................   $41,000,000
    Kansas..................................  Fort Riley.................  62 Units...................   $16,700,000
    Kentucky................................  Fort Knox..................  178 Units..................   $41,000,000
    New Mexico..............................  White Sands Missile Range..  58 Units...................   $14,600,000
    Oklahoma................................  Fort Sill..................  120 Units..................   $25,373,000
    Virginia................................  Fort Lee...................  90 Units...................   $18,000,000
                                                                                                       -------------
                                                                               Total:.................  $220,673,000
    ----------------------------------------------------------------------------------------------------------------

        (b) Planning and Design.--Using amounts appropriated pursuant to
    the authorization of appropriations in section 2104(a)(5)(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 $34,488,000.

    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)(5)(A), the Secretary of the Army may improve existing
    military family housing units in an amount not to exceed $156,030,000.

    SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2003, for military
    construction, land acquisition, and military family housing functions
    of the Department of the Army in the total amount of $3,056,697,000, as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2101(a), $902,000,000.
                (2) For military construction projects outside the United
            States authorized by section 2101(b), $359,350,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $22,550,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $128,580,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $409,191,000.
                        (B) For support of military family housing
                    (including the functions described in section 2833 of
                    title 10, United States Code), $1,043,026,000.
                (6) For the construction of phase 3 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), as amended by section 2105 of this Act, $33,000,000.
                (7) For the construction of phase 3 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), $48,000,000.
                (8) For the construction of phase 2 of a barracks complex,
            Capron Road, at Schofield Barracks, Hawaii, authorized by
            section 2101(a) of the Military Construction Authorization Act
            for Fiscal Year 2003 (division B of Public Law 107-314; 116
            Stat. 2681), $49,000,000.
                (9) For the construction of phase 2 of a barracks complex,
            Range Road, at Fort Campbell, Kentucky, authorized by section
            2101(a) of the Military Construction Authorization Act for
            Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat.
            2681), $49,000,000.
                (10) For the construction of phase 2 of a consolidated
            maintenance complex at Fort Sill, Oklahoma, authorized by
            section 2101(a) of the Military Construction Authorization Act
            for Fiscal Year 2003 (division B of Public Law 107-314; 116
            Stat. 2681), $13,000,000.
        (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 the sum of the following:
                (1) The total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a).
                (2) $32,000,000 (the balance of the amount authorized under
            section 2101(a) for construction of a barracks, Fort Stewart/
            Hunter Army Airfield, Georgia).
                (3) $87,000,000 (the balance of the amount authorized under
            section 2101(a) for construction of the Lewis and Clark
            Instructional Facility, Fort Leavenworth, Kansas).
                (4) $43,000,000 (the balance of the amount authorized under
            section 2101(a) for construction of a barracks complex, Wheeler
            Army Airfield, Fort Drum, New York).
                (5) $50,000,000 (the balance of the amount authorized under
            section 2101(a) for construction of a barracks complex,
            Bastogne Drive, Fort Bragg, North Carolina).
                (6) $18,900,000 (the balance of the amount authorized under
            section 2101(b) for construction of a barracks complex,
            Vilseck, Germany).

    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), as amended by section 2105 of the
    Military Construction Authorization Act for Fiscal Year 2003 (division
    B of Public Law 107-314; 116 Stat. 2689), is further amended--
                (1) in the item relating to Fort Richardson, Alaska, by
            striking ``$115,000,000'' in the amount column and inserting
            ``$117,000,000''; and
                (2) by striking the amount identified as the total in the
            amount column and inserting ``$1,364,750,000''.
        (b) Conforming Amendment.--Section 2104(b)(2) of that Act (115
    Stat. 1284) is amended by striking ``$52,000,000'' and inserting
    ``$54,000,000''.

                                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            $22,230,000
                                      Station, Yuma.
    California.....................  Marine Corps Air-           $42,090,000
                                      Ground Task Force
                                      Training Center,
                                      Twentynine Palms.....
                                     Marine Corps Air             $7,640,000
                                      Station, Miramar.....
                                     Marine Corps Base,          $73,580,000
                                      Camp Pendleton.......
                                     Naval Air Facility,         $18,940,000
                                      San Clemente Island..
                                     Naval Air Station,          $34,510,000
                                      Lemoore..............
                                     Naval Air Station,          $49,240,000
                                      North Island.........
                                     Naval Air Warfare           $12,230,000
                                      Center, China Lake...
                                     Naval Air Warfare            $6,150,000
                                      Center, Point Mugu,
                                      San Nicholas Island..
                                     Naval Postgraduate          $42,560,000
                                      School, Monterey.
                                     Naval Station, San          $49,710,000
                                      Diego.
    Connecticut....................  Naval Submarine Base,        $3,120,000
                                      New London.
    District of Columbia...........  Marine Corps Barracks.       $1,550,000
    Florida........................  Blount Island              $115,711,000
                                      (Jacksonville).
                                     Naval Air Station,           $9,190,000
                                      Jacksonville.........
                                     Naval Air Station,           $4,830,000
                                      Whiting Field, Milton
                                     Naval Surface Warfare        $9,550,000
                                      Center, Coastal
                                      Systems Station,
                                      Panama City..........
    Georgia........................  Strategic Weapons           $11,510,000
                                      Facility Atlantic,
                                      Kings Bay............
    Hawaii.........................  Fleet and Industrial        $32,180,000
                                      Supply Center, Pearl
                                      Harbor...............
                                     Naval Magazine,              $6,320,000
                                      Lualualei.
                                     Naval Shipyard, Pearl        $7,010,000
                                      Harbor.
    Illinois.......................  Naval Training Center,     $137,120,000
                                      Great Lakes.
    Indiana........................  Naval Surface Warfare       $11,400,000
                                      Center, Crane........
    Maryland.......................  Naval Air Warfare           $28,270,000
                                      Center, Patuxent
                                      River................
                                     Naval Surface Warfare       $14,850,000
                                      Center, Indian Head..
    Mississippi....................  Naval Air Station,           $4,570,000
                                      Meridian.
                                     Naval Station,               $6,100,000
                                      Pascagoula.
    Nevada.........................  Naval Air Station,           $4,700,000
                                      Fallon.
    New Jersey.....................  Naval Air Warfare           $20,681,000
                                      Center, Lakehurst.
                                     Naval Weapons Station,     $123,720,000
                                      Earle.
    North Carolina.................  Marine Corps Air             $6,240,000
                                      Station, New River...
                                     Marine Corps Base,          $29,450,000
                                      Camp Lejeune.
    Rhode Island...................  Naval Station, Newport      $16,140,000
                                     Naval Undersea Warfare      $10,890,000
                                      Center, Newport......
    South Carolina.................  Naval Weapons Station,       $2,350,000
                                      Charleston.
    Texas..........................  Naval Air Station,           $5,400,000
                                      Corpus Christi.
    Virginia.......................  Henderson Hall,              $1,970,000
                                      Arlington.
                                     Marine Corps Combat          $3,700,000
                                      Development Command,
                                      Quantico.............
                                     Naval Air Station,          $10,000,000
                                      Oceana.
                                     Naval Amphibious Base,       $3,810,000
                                      Little Creek.
                                     Naval Space Command         $24,020,000
                                      Center, Dahlgren.....
                                     Naval Station, Norfolk     $182,240,000
                                     Norfolk Naval               $17,770,000
                                      Shipyard, Portsmouth.
    Washington.....................  Naval Air Station,           $4,350,000
                                      Whidbey Island.
                                     Naval Magazine, Indian       $2,240,000
                                      Island.
                                     Naval Shipyard, Puget       $12,120,000
                                      Sound.
                                     Naval Submarine Base,       $33,820,000
                                      Bangor.
                                     Strategic Weapons            $6,530,000
                                      Facility Pacific,
                                      Bangor...............
    Various Locations..............  Various Locations,          $56,360,000
                                      CONUS.
                                                            ----------------
                                         Total.............   $1,340,662,000
    ------------------------------------------------------------------------

        (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,     $18,030,000
                                      Bahrain...............
    Guam...........................  Commander, United            $1,700,000
                                      States Naval Forces,
                                      Marianas..............
    Italy..........................  Naval Air Station,          $48,749,000
                                      Sigonella.............
                                     Naval Support Activity,     $39,020,000
                                      La Maddalena..........
    United Kingdom.................  Joint Maritime               $7,070,000
                                      Facility, St. Mawgan..
                                                             ---------------
                                         Total..............    $114,569,000
    ------------------------------------------------------------------------

    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, Lemoore.  187 Units..................   $41,585,000
    Florida.................................  Naval Air Station,           25 Units...................    $4,447,000
                                               Pensacola.................
    North Carolina..........................  Marine Corps Air Station,    339 Units..................    42,803,000
                                               Cherry Point..............
                                              Marine Corps Base, Camp      519 Units..................   $68,531,000
                                               Lejeune...................
                                                                                                       -------------
                                                                               Total..................  $157,366,000
    ----------------------------------------------------------------------------------------------------------------

        (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 $8,381,000.

    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 $20,446,000.

    SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2003, for military
    construction, land acquisition, and military family housing functions
    of the Department of the Navy in the total amount of $2,288,917,000, as
    follows:
                (1) For military construction projects inside the United
            States authorized by section 2201(a), $1,005,882,000.
                (2) For military construction projects outside the United
            States authorized by section 2201(b), $114,569,000.
                (3) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $13,624,000.
                (4) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $71,141,000.
                (5) For military family housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $184,193,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $852,778,000.
                (6) For construction of a bachelors enlisted quarters
            shipboard ashore at Naval Shipyard Norfolk, Virginia,
            authorized by section 2201(a) of the Military Construction
            Authorization Act for Fiscal Year 2003 (division B of Public
            Law 107-314; 116 Stat. 2687), $46,730,000.
        (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 the sum of the following:
                (1) The total amount authorized to be appropriated under
            paragraphs (1) and (2) of subsection (a).
                (2) $25,690,000 (the balance of the amount authorized under
            section 2101(a) for construction of a tertiary sewage treatment
            facility, Marine Corp Base, Camp Pendleton, California).
                (3) $58,190,000 (the balance of the amount authorized under
            section 2101(a) for construction of a battle station training
            facility, Naval Training Center, Great Lakes, Illinois).
                (4) $96,980,000 (the balance of the amount authorized under
            section 2101(a) for construction of a general purpose berthing
            pier, Naval Weapons Station Earle, New Jersey).
                (5) $118,170,000 (the balance of the amount authorized
            under section 2101(a) for construction of the Pier 11
            replacement, Naval Station, Norfolk, Virginia).
                (6) $28,750,000 (the balance of the amount authorized under
            section 2101(a) for construction of outlying landing field
            facilities, various locations in the continental United
            States).

                             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.     $26,000,000
    Alaska.........................  Eielson Air Force Base.     $33,261,000
                                     Elmendorf Air Force          $2,000,000
                                      Base.
    Arizona........................  Davis-Monthan Air Force     $10,062,000
                                      Base.
    Arkansas.......................  Little Rock Air Force        $7,445,000
                                      Base.
    California.....................  Beale Air Force Base...     $22,750,000
                                     Edwards Air Force Base.     $26,744,000
                                     Vandenberg Air Force        $16,500,000
                                      Base.
    Colorado.......................  Buckley Air Force Base.      $7,019,000
    District of Columbia...........  Bolling Air Force Base.      $9,300,000
    Florida........................  Hurlburt Field.........     $27,200,000
                                     Tyndall Air Force Base.     $20,720,000
    Georgia........................  Robins Air Force Base..     $37,164,000
    Hawaii.........................  Hickam Air Force Base..     $73,296,000
    Idaho..........................  Mountain Home Air Force      $5,445,000
                                      Base.
    Illinois.......................  Scott Air Force Base...      $1,900,000
    Mississippi....................  Columbus Air Force Base      $2,200,000
                                     Keesler Air Force Base.      $2,900,000
    Missouri.......................  Whiteman Air Force Base     $11,600,000
    New Jersey.....................  McGuire Air Force Base.     $11,861,000
    New Mexico.....................  Kirtland Air Force Base     $11,247,000
                                     Tularosa Radar Test          $3,600,000
                                      Site.
    North Carolina.................  Pope Air Force Base....     $24,499,000
                                     Seymour Johnson Air         $23,022,000
                                      Force Base.
    North Dakota...................  Minot Air Force Base...      $3,190,000
    Ohio...........................  Wright-Patterson Air        $21,100,000
                                      Force Base.
    Oklahoma.......................  Altus Air Force Base...      $1,167,000
                                     Tinker Air Force Base..     $19,444,000
    South Carolina.................  Charleston Air Force         $9,042,000
                                      Base.
                                     Shaw Air Force Base....      $8,500,000
    Texas..........................  Goodfellow Air Force        $20,335,000
                                      Base.
                                     Lackland Air Force Base     $57,360,000
                                     Laughlin Air Force Base     $12,400,000
                                     Sheppard Air Force Base     $38,167,000
    Utah...........................  Hill Air Force Base....     $15,848,000
    Virginia.......................  Langley Air Force Base.     $25,474,000
    Washington.....................  McChord Air Force Base.     $19,000,000
                                                             ---------------
                                     Total..................    $668,762,000
    ------------------------------------------------------------------------

        (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
    ------------------------------------------------------------------------
    Germany........................  Ramstein Air Base......     $41,866,000
                                     Spangdahlem Air Base...      $5,411,000
    Italy..........................  Aviano Air Base........     $14,025,000
    Korea..........................  Kunsan Air Base........      $7,059,000
                                     Osan Air Base..........     $16,638,000
    Portugal.......................  Lajes Field, Azores....      $4,086,000
    Turkey.........................  Incirlik Air Base......      $3,262,000
    United Kingdom.................  Royal Air Force,            $42,487,000
                                      Lakenheath.
                                     Royal Air Force,            $10,558,000
                                      Mildenhall.
    Wake Island....................  Wake Island............     $24,000,000
                                                             ---------------
                                         Total..............    $169,392,000
    ------------------------------------------------------------------------

        (c) Unspecified Worldwide.--Using 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
    ------------------------------------------------------------------------
                                         Installation or
                Location                     location             Amount
    ------------------------------------------------------------------------
    Unspecified Worldwide..........  Classified Location....     $29,501,000
                                                             ---------------
                                         Total..............     $29,501,000
    ------------------------------------------------------------------------

    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.................................  Davis-Monthan Air Force      93 Units...................   $19,357,000
                                               Base......................
    California..............................  Travis Air Force Base......  56 Units...................   $12,723,000
    Delaware................................  Dover Air Force Base.......  112 Units..................   $19,601,000
    Florida.................................  Eglin Air Force Base.......  279 Units..................   $32,166,000
    Idaho...................................  Mountain Home Air Force      186 Units..................   $37,126,000
                                               Base......................
    Maryland................................  Andrews Air Force Base.....  50 Units...................   $20,233,000
    Missouri................................  Whiteman Air Force Base....  100 Units..................   $18,221,000
    Montana.................................  Malmstrom Air Force Base...  94 Units...................   $19,368,000
    North Carolina..........................  Seymour Johnson Air Force    138 Units..................   $18,336,000
                                               Base......................
    North Dakota............................  Grand Forks Air Force Base.  144 Units..................   $29,550,000
                                              Minot Air Force Base.......  200 Units..................   $41,117,000
    South Dakota............................  Ellsworth Air Force Base...  75 Units...................   $16,240,000
    Texas...................................  Dyess Air Force Base.......  116 Units..................   $19,973,000
                                              Randolph Air Force Base....  96 Units...................   $13,754,000
    Korea...................................  Osan Air Base..............  111 Units..................   $44,765,000
    Portugal................................  Lajes Field, Azores........  42 Units...................   $13,428,000
    United Kingdom..........................  Royal Air Force, Lakenheath  89 Units...................   $23,640,000
                                                                                                       -------------
                                                                               Total..................  $399,598,000
    ----------------------------------------------------------------------------------------------------------------

        (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 $33,488,000.

    SEC. 2303. 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 2304(a)(6)(A), the Secretary of the Air Force may improve
    existing military family housing units in an amount not to exceed
    $227,979,000.

    SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2003, for military
    construction, land acquisition, and military family housing functions
    of the Department of the Air Force in the total amount of
    $2,477,609,000, as follows:
                (1) For military construction projects inside the United
            States authorized by section 2301(a), $660,282,000.
                (2) For military construction projects outside the United
            States authorized by section 2301(b), $169,392,000.
                (3) For military construction projects at unspecified
            worldwide locations authorized by section 2301(c), $28,981,000.
                (4) For unspecified minor construction projects authorized
            by section 2805 of title 10, United States Code, $12,000,000.
                (5) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $115,421,000.
                (6) For military housing functions:
                        (A) For construction and acquisition, planning and
                    design, and improvement of military family housing and
                    facilities, $657,065,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $834,468,000.
        (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).

                          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 2405(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
    ------------------------------------------------------------------------
    Defense Education Activity.....  Marine Corps Base, Camp     $15,259,000
                                      Lejeune, North
                                      Carolina..............
    Defense Logistics Agency.......  Defense Distribution        $27,700,000
                                      Depot, New Cumberland,
                                      Pennsylvania..........
                                     Eglin Air Force Base,        $4,800,000
                                      Florida...............
                                     Eielson Air Force Base,     $17,000,000
                                      Alaska................
                                     Hickam Air Force Base,      $14,100,000
                                      Hawaii................
                                     Hurlburt Field, Florida      $4,100,000
                                     Offutt Air Force Base,      $13,400,000
                                      Nebraska..............
                                     Langley Air Force Base,     $13,000,000
                                      Virginia..............
                                     Laughlin Air Force           $4,688,000
                                      Base, Texas...........
                                     McChord Air Force Base,      $8,100,000
                                      Washington............
                                     Naval Air Station,           $9,200,000
                                      Kingsville, Texas.....
                                     Nellis Air Force Base,      $12,800,000
                                      Nevada................
    National Security Agency.......  Fort Meade, Maryland...      $1,842,000
    Special Operations Command.....  Dam Neck, Virginia.....     $15,281,000
                                     Fort Benning, Georgia..      $2,100,000
                                     Fort Bragg, North           $36,300,000
                                      Carolina.
                                     Fort Campbell, Kentucky      $7,800,000
                                     Harrisburg                   $3,000,000
                                      International Airport,
                                      Pennsylvania..........
                                     Hurlburt Field, Florida      $6,000,000
                                     MacDill, Air Force          $25,500,000
                                      Base, Florida.
                                     Naval Amphibious Base,       $2,800,000
                                      Coronado, California..
    TRICARE Management Activity....  Fort Hood, Texas.......      $9,400,000
                                     Naval Station,              $15,714,000
                                      Anacostia, District of
                                      Columbia..............
                                     Naval Submarine Base,        $6,700,000
                                      New London,
                                      Connecticut...........
                                     United States Air Force     $22,100,000
                                      Academy, Colorado.....
                                     Walter Reed Medical          $9,000,000
                                      Center, District of
                                      Columbia..............
    Washington Headquarters          Arlington, Virginia....     $38,086,000
     Services......................
                                                             ---------------
                                         Total..............    $345,770,000
    ------------------------------------------------------------------------

        (b) Outside the United States.--Using amounts appropriated pursuant
    to the authorization of appropriations in section 2405(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 Education Activity.....  Grafenwoehr, Germany...     $36,247,000
                                     Heidelberg, Germany....      $3,086,000
                                     Vilseck, Germany.......      $1,773,000
                                     Sigonella, Italy.......     $30,234,000
                                     Vicenza, Italy.........     $16,374,000
                                     Camp Humphreys, Korea..     $31,683,000
    Special Operations Command.....  Stuttgart, Germany.....     $11,400,000
    TRICARE Management Activity....  Anderson Air Force          $26,000,000
                                      Base, Guam............
                                     Grafenwoehr, Germany...     $12,585,000
                                                             ---------------
                                         Total..............    $169,382,000
    ------------------------------------------------------------------------

    SEC. 2402. FAMILY HOUSING.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2405(a)(8)(A), the Secretary of Defense 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 $300,000.

    SEC. 2403. 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 2405(a)(8)(A), the Secretary of Defense may improve existing
    military family housing units in an amount not to exceed $50,000.

    SEC. 2404. ENERGY CONSERVATION PROJECTS.

        Using amounts appropriated pursuant to the authorization of
    appropriations in section 2405(a)(6), the Secretary of Defense may
    carry out energy conservation projects under section 2865 of title 10,
    United States Code, in the amount of $69,500,000.

    SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

        (a) In General.--Funds are hereby authorized to be appropriated for
    fiscal years beginning after September 30, 2003, 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 $1,223,066,000, as follows:
                (1) For military construction projects inside the United
            States authorized by section 2401(a), $343,570,000.
                (2) For military construction projects outside the United
            States authorized by section 2401(b), $152,017,000.
                (3) For unspecified minor construction projects under
            section 2805 of title 10, United States Code, $16,153,000.
                (4) For contingency construction projects of the Secretary
            of Defense under section 2804 of title 10, United States Code,
            $8,960,000.
                (5) For architectural and engineering services and
            construction design under section 2807 of title 10, United
            States Code, $66,834,000.
                (6) For energy conservation projects authorized by section
            2404, $69,500,000.
                (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), $370,427,000.
                (8) For military family housing functions:
                        (A) For planning, design, and improvement of
                    military family housing and facilities, $350,000.
                        (B) For support of military family housing
                    (including functions described in section 2833 of title
                    10, United States Code), $49,440,000.
                        (C) For credit to the Department of Defense Family
                    Housing Improvement Fund established by section
                    2883(a)(1) of title 10, United States Code, $300,000.
                (9) For construction of the Defense Threat Reduction Center
            at Fort Belvoir, Virginia, authorized by section 2401(a) of the
            Military Construction Authorization Act for Fiscal Year 2003
            (division B of Public Law 107-314; 116 Stat. 2695),
            $25,700,000.
                (10) For the construction of phase 5 of an ammunition
            demilitarization facility at Pueblo Depot 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 the Military Construction Authorization Act for Fiscal
            Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
            $88,388,000.
                (11) For the construction of phase 6 of an ammunition
            demilitarization facility at Newport Army Ammunition Plant,
            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 the Military Construction Authorization Act for Fiscal
            Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
            $15,207,000.
                (12) For the construction of phase 4 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 the Military Construction Authorization Act for Fiscal
            Year 2003 (division B of Public Law 107-314; 116 Stat. 2698),
            $16,220,000.
        (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 the total amount authorized to be appropriated under
    paragraphs (1) and (2) of subsection (a).

       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, 2003, 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 $169,300,000.

                TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

        There are authorized to be appropriated for fiscal years beginning
    after September 30, 2003, for the costs of acquisition, architectural
    and engineering services, and construction of facilities for the Guard
    and Reserve Forces, and for contributions therefor, 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, $253,788,000; and
                        (B) for the Army Reserve, $89,840,000.
                (2) For the Department of the Navy, for the Naval and
            Marine Corps Reserve, $45,762,000.
                (3) For the Department of the Air Force--
                        (A) for the Air National Guard of the United
                    States, $123,408,000; and
                        (B) for the Air Force Reserve, $61,143,000.

            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, 2006; or
                (2) the date of the enactment of an Act authorizing funds
            for military construction for fiscal year 2007.
        (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, 2006; or
                (2) the date of the enactment of an Act authorizing funds
            for fiscal year 2007 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 AUTHORIZATION OF CERTAIN FISCAL YEAR 2001
                  PROJECT.

        (a) Extension of Certain Project.--Notwithstanding section 2701 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-407),
    the authorization set forth in the table in subsection (b), as provided
    in section 2102 of that Act, shall remain in effect until October 1,
    2004, or the date of the enactment of an Act authorizing funds for
    military construction for fiscal year 2005, whichever is later.
        (b) Table.--The table referred to in subsection (a) is as follows:

                                      Army: Extension of 2001 Project Authorization
    ----------------------------------------------------------------------------------------------------------------
                     State                   Installation or location             Project                 Amount
    ----------------------------------------------------------------------------------------------------------------
    South Carolina........................  Fort Jackson.............  New Construction--GFOQ.......        $250,000
    ----------------------------------------------------------------------------------------------------------------

    SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000
                  PROJECTS.

        (a) Extension.--Notwithstanding section 2701 of the Military
    Construction Authorization Act for Fiscal Year 2000 (division B of
    Public Law 106-65; 113 Stat. 841), the authorizations set forth in the
    tables in subsection (b), as provided in section 2302 or 2601 of that
    Act and extended by section 2702 of the Military Construction
    Authorization Act for Fiscal Year 2003 (division B of Public Law 107-
    314; 116 Stat. 2700), shall remain in effect until October 1, 2004, or
    the date of the enactment of an Act authorizing funds for military
    construction for fiscal year 2005, whichever is later.
        (b) Tables.--The tables referred to in subsection (a) is 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-Heavy....     $13,500,000
    ----------------------------------------------------------------------------------------------------------------

    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, 2003; 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. INCREASE IN MAXIMUM AMOUNT OF AUTHORIZED ANNUAL EMERGENCY
                  CONSTRUCTION.

        Section 2803(c)(1) of title 10, United States Code, is amended by
    striking ``$30,000,000'' and inserting ``$45,000,000''.

    SEC. 2802. AUTHORITY TO LEASE MILITARY FAMILY HOUSING UNITS IN ITALY.

        Section 2828(e)(2) of title 10, United States Code, is amended by
    striking ``2,000 units`` and inserting ``2,800 units''.

    SEC. 2803. CHANGES TO ALTERNATIVE AUTHORITY FOR ACQUISITION AND
                  IMPROVEMENT OF MILITARY HOUSING.

        (a) Space Limitations by Pay Grade.--Section 2880(b)(2) of title
    10, United States Code, is amended by striking ``unless the unit is
    located on a military installation''.
        (b) Department of Defense Housing Fund.--(1) Section 2883 of such
    title is amended by striking subsections (a), (b), and (c) and
    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
            subsections (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 (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
                (D) in subsection (f), as so redesignated, by striking
            ``$850,000,000'' in paragraph (1) and inserting
            ``$900,000,000''.
        (c) 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 (b)), 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.
        (d) 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''.
        (e) Clerical Amendments.--(1) The section heading for section 2883
    of such title is amended to read as follows:
    ``Sec. 2883. Department of Defense Housing Improvement Fund''.
        (2) The table of sections at the beginning subchapter IV of chapter
    169 of such title is amended by striking the item relating to section
    2883 and inserting the following new item:

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

    SEC. 2804. ADDITIONAL MATERIAL FOR ANNUAL REPORT ON HOUSING
                  PRIVATIZATION PROGRAM.

        Section 2884(b) of title 10, United States Code, is amended--
                (1) in paragraph (2), by inserting before the period at the
            end the following: ``, and such recommendations as the
            Secretary considers necessary for improving the extent and
            effectiveness of the use of such authorities in the future'';
            and
                (2) by striking paragraph (3) and inserting the following
            new paragraphs:
                ``(3) A review of activities of the Secretary under this
            subchapter during such preceding fiscal year, shown for
            military family housing, military unaccompanied housing, dual
            military family housing and military unaccompanied housing, and
            ancillary supporting facilities.
                ``(4) If a contract for the acquisition or construction of
            military family housing, military unaccompanied housing, or
            dual military family housing and military unaccompanied housing
            entered into during the preceding fiscal year did not include
            the acquisition or construction of the types of ancillary
            supporting facilities specifically referred to in section
            2871(1) of this title, a explanation of the reasons why such
            ancillary supporting facilities were not included.
                ``(5) A description of the Secretary's plans for housing
            privatization activities under this subchapter (A) during the
            fiscal year for which the budget is submitted, and (B) during
            the period covered by the then-current future-years defense
            plan under section 221 of this title.''.

    SEC. 2805. AUTHORITY TO CONVEY PROPERTY AT MILITARY INSTALLATIONS
                  CLOSED OR TO BE CLOSED IN EXCHANGE FOR MILITARY
                  CONSTRUCTION ACTIVITIES.

        (a) In General.--(1) Subchapter III of chapter 169 of title 10,
    United States Code, is amended by adding at the end the following new
    section:
    ``Sec. 2869. Conveyance of property at military installations closed or
                  to be closed in exchange for military construction
                  activities
        ``(a) Conveyance Authorized; Consideration.--The Secretary of
    Defense may enter into an agreement to convey real property, including
    any improvements thereon, located on a military installation that is
    closed or realigned under a base closure law to any person who agrees,
    in exchange for the real property--
                ``(1) to carry out, or provide services in connection with,
            an authorized military construction project; or
                ``(2) to transfer to the Secretary of Defense housing that
            is constructed or provided by the person and located at or near
            a military installation at which there is a shortage of
            suitable military family housing or military unaccompanied
            housing (or both).
        ``(b) Conditions on Conveyance Authority.--A conveyance of real
    property may be made under subsection (a) only if--
                ``(1) the fair market value of the consideration to be
            received in exchange for the real property conveyed under
            subsection (a) is equal to or greater than the fair market
            value of the property, including any improvements thereon, as
            determined by the Secretary concerned; and
                ``(2) in the event the fair market value of the
            consideration to be received is equal to at least 90 percent,
            but less than 100 percent, of the fair market value of the real
            property to be conveyed, including any improvements thereon,
            the recipient of the property agrees to pay to the Secretary of
            Defense an amount equal to the difference in the fair market
            values.
        ``(c) Use of Authority.--(1) To the maximum extent practicable, the
    Secretary of Defense shall use the authority provided by subsection (a)
    to convey at least 20 percent of the total acreage conveyed each fiscal
    year at military installations closed or realigned under the base
    closure laws. Notice of the proposed use of this authority shall be
    provided in such manner as the Secretary may prescribe, including
    publication in the Federal Register and otherwise. In determining such
    total acreage for a fiscal year, the Secretary shall exclude real
    property identified in a redevelopment plan as property essential to
    the reuse or redevlopment of a military installation closed or to be
    closed under a base closure law.
        ``(2) To the maximum extent practicable, the Secretary of Defense
    shall endeavor to use the authority provided by subsection (a) to
    obtain military construction and military housing services having a
    total value of at least $200,000,000 each fiscal year for each of the
    military departments.
        ``(3) The Secretary concerned shall utilize the authority provided
    in subsection (a) in lieu of obligating and expending funds
    appropriated for military construction and military housing projects
    that are authorized by law.
        ``(d) Deposit of Funds.--The Secretary of Defense may deposit funds
    received under subsection (b)(2) in the Department of Defense Housing
    Improvement Fund established under section 2883(a) of this title.
        ``(e) Annual Report.--The Secretary of Defense shall include each
    year in the materials that the Secretary submits to Congress in support
    of the budget submitted by the President pursuant to section 1105 of
    title 31 a report detailing the extent to which the Secretary used the
    authority provided by subsection (a) to convey real property in
    exchange for military construction and military housing and plans for
    the use of such authority for the future. The report shall include the
    following:
                ``(1) The total value of the real property that was
            actually conveyed during the preceding fiscal year using the
            authority provided by subsection (a).
                ``(2) The total value of the military construction and
            military housing services obtained in exchange, and, if the
            dollar goal specified in subsection (c)(2) was not achieved for
            a military department, an explanation regarding the reasons why
            the goal was not achieved.
                ``(3) The current inventory of unconveyed lands at military
            installations closed or realigned under a base closure law.
                ``(4) A description of the results of conveyances under
            subsection (a) during the preceding fiscal year and plans for
            such conveyances for the current fiscal year, the fiscal year
            covered by the budget, and the period covered by the current
            future-years defense program under section 221 of this title.
        ``(f) Description of Property.--The exact acreage and legal
    description of real property conveyed under subsection (a) shall be
    determined by surveys satisfactory to the Secretary of Defense.
        ``(g) Additional Terms and Conditions.--The Secretary of Defense
    may require such additional terms and conditions in connection with a
    conveyance under subsection (a) as the Secretary considers appropriate
    to protect the interests of the United States.''.
        (2) The table of sections at the beginning of such subchapter is
    amended by adding at the end the following new item:

    ``2869. Conveyance of property at military installations closed or to
                                be closed in exchange for military
                                construction activities.''.
        (b) Exception to Requirement for Authorization of Number of Housing
    Units.--Section 2822(b) of such title is amended by adding at the end
    the following new paragraph:
                ``(6) Housing units constructed or provided under section
            2869 of this title.''.
        (c) Conforming Amendment to Department of Defense Housing
    Improvement Fund.--Section 2883(b) of such title, as amended by section
    2803, is further amended by adding at the end the following new
    paragraph:
                ``(6) Any amounts that the Secretary concerned transfers to
            the Fund pursuant to section 2869 of this title.''.
        (d) Conforming Repeals to Base Closure Laws.--(1) Section 204(e) of
    the Defense Authorization Amendments and Base Closure and Realignment
    Act (Public Law 100-526; 10 U.S.C. 2687 note) is repealed.
        (2) Section 2905(f) 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 repealed.

    SEC. 2806. CONGRESSIONAL NOTIFICATION AND REPORTING REQUIREMENTS AND
                  LIMITATIONS REGARDING USE OF OPERATION AND MAINTENANCE
                  FUNDS FOR CONSTRUCTION.

        (a) In General.--Subchapter I of chapter 169 of title 10, United
    States Code, is amended by inserting after section 2809 the following
    new section:
    ``Sec. 2810. Use of operation and maintenance funds for construction:
                  notification and reporting requirements and limitations
        ``(a) Advance Notification of Obligation of Funds.--(1) The
    Secretary concerned shall submit to the appropriate committees of
    Congress advance written notice before appropriations available for
    operation and maintenance are obligated for construction described in
    paragraph (2). The notice shall be submitted not later than 14 days
    before the date on which appropriations available for operation and
    maintenance are first obligated for that construction and shall contain
    the information required by subsection (c).
        ``(2) Paragraph (1) applies with respect to any construction having
    an estimated total cost of more than $1,500,000, but not more than
    $5,000,000, which is paid for in whole or in part using appropriations
    available for operation and maintenance, if--
                ``(A) the construction is necessary to meet urgent military
            operational requirements of a temporary nature;
                ``(B) the construction was not carried out at a military
            installation where the United States is reasonably expected to
            have a long-term interest or presence;
                ``(C) the United States has no intention of using the
            construction after the operational requirement has been
            satisfied; and
                ``(D) the level of construction is the minimum necessary to
            meet the temporary operational need.
        ``(b) Waiver Authority; Congressional Notification.--(1) The
    Secretary concerned may waive the advance notice requirement under
    subsection (a) on a case-by-case basis if the Secretary determines
    that--
                ``(A) the project is vital to the national security or to
            the protection of health, safety, or the quality of the
            environment; and
                ``(B) the requirement for the construction is so urgent
            that deferral of the construction during the period specified
            in subsection (a)(1) would be inconsistent with national
            security or the protection of health, safety, or environmental
            quality, as the case may be.
        ``(2) Not later than five days after the date on which a waiver is
    granted under paragraph (1), the Secretary concerned shall provide to
    the appropriate committees of Congress written notice containing the
    reasons for the waiver and the information required by subsection (c)
    with regard to the construction for which the waiver was granted.
        ``(c) Content of Notice.--The notice provided under subsection (a)
    or (b) with regard to construction funded using appropriations
    available for operation and maintenance shall include the following:
                ``(1) A description of the purpose for which the funds are
            being obligated.
                ``(2) An estimate of the total amount to be obligated for
            the construction.
                ``(3) The reasons appropriations available for operation
            and maintenance are being used.
        ``(d) Limitations on Use of Operation and Maintenance Funds.--(1)
    The Secretary concerned shall not use appropriations available for
    operation and maintenance to carry out any construction having an
    estimated total cost of more than $5,000,000.
        ``(2) The total cost of construction carried out by the Secretaries
    concerned in whole or in part using appropriations available for
    operation and maintenance shall not exceed $200,000,000 in any fiscal
    year.
        ``(e) Quarterly Report.--The Secretary concerned shall submit to
    the appropriate committees of Congress a quarterly report on the
    worldwide obligation and expenditure of appropriations available for
    operation and maintenance by the Secretary concerned for construction
    during the preceding quarter.''.
        (b) Clerical Amendment.--The table of sections at the beginning of
    such subchapter is amended by inserting after the item relating to
    section 2809 the following new item:

    ``2810. Use of operation and maintenance funds for construction:
                                notification and reporting requirements and
                                limitations.''.

    SEC. 2807. INCREASE IN AUTHORIZED MAXIMUM LEASE TERM FOR FAMILY HOUSING
                  AND OTHER FACILITIES IN CERTAIN FOREIGN COUNTRIES.

        (a) Lease of Military Family Housing.--Section 2828(d)(1) of title
    10, United States Code, is amended by striking ``ten years,'' and
    inserting ``10 years, or 15 years in the case of leases in Korea,''.
        (b) Leases of Other Facilities.--Section 2675 of such title is
    amended by inserting after ``five years,'' the following: ``or 15 years
    in the case of a lease in Korea,''.

    SEC. 2808. ANNUAL REPORT ON MILITARY CONSTRUCTION REQUIREMENTS TO
                  SUPPORT HOMELAND DEFENSE MISSIONS OF THE ARMED FORCES.

        As part of the annual defense authorization request required by
    section 113a(b) of title 10, United States Code, the Secretary of
    Defense shall include an assessment of the military construction
    requirements anticipated to be necessary to support the homeland
    defense missions of the Armed Forces for the fiscal year for which the
    defense authorization request is submitted, for the fiscal years
    covered by the then-current future-years defense plan under section 221
    of such title, and for subsequent fiscal years.

            Subtitle B--Real Property and Facilities Administration

    SEC. 2811. REAL PROPERTY TRANSACTIONS.

        (a) Increase in Land Acquisition Authority Cost Threshold.--Section
    2672 of title 10, United States Code, is amended by striking
    ``$500,000'' both places it appears and inserting ``$1,500,000''.
        (b) Prompt Notification of Certain Land Acquisitions.--Section
    2672a of such title is amended--
                (1) in subsection (a)(1), by striking ``he or his
            designee'' and inserting ``the Secretary'';
                (2) in subsection (b), by striking the last sentence; and
                (3) by adding at the end the following new subsection:
        ``(c) Not later than 10 days after the determination is made under
    subsection (a)(1) that acquisition of an interest in land is needed in
    the interest of the national defense, the Secretary of the military
    department making that determination shall provide to the Committee on
    Armed Services of the Senate and the Committee on Armed Services of the
    House of Representatives written notice containing a description of the
    property and interest to be acquired and the reasons for the
    acquisition.''.
        (c) Modification of Related Notification Requirements.--Section
    2662 of such title is amended--
                (1) in subsection (a)--
                        (A) by striking ``30 days'' and all that follows
                    through ``is submitted'' and inserting ``14 days after
                    the beginning of the month with respect to which a
                    single report containing the facts concerning such
                    transaction and all other such proposed transactions
                    for that month is submitted, not later than the first
                    day of that month,''; and
                        (B) by striking ``$500,000'' each place it appears
                    and inserting ``$1,500,000'';
                (2) in subsection (b), by striking ``more than'' and all
            that follows through ``$500,000'' and inserting ``more than
            $250,000 but not more than $1,500,000'';
                (3) in subsection (e)--
                        (A) by striking ``$500,000'' and inserting
                    ``$1,000,000''; and
                        (B) by striking ``thirty days'' and inserting ``14
                    days''; and
                (4) in subsection (g)(3), by striking ``30 days'' and
            inserting ``14 days''.
        (d) Clerical Amendments.--(1) The heading of section 2672 of such
    title is amended to read as follows:
    ``Sec. 2672. Authority to acquire low-cost interests in land''.
        (2) The item relating to section 2672 in the table of sections at
    the beginning of chapter 159 of such title is amended to read as
    follows:

    ``2672. Authority to acquire low-cost interests in land.''.

    SEC. 2812. SENSE OF CONGRESS ON DEMOLITION OF ARMY TACONY WAREHOUSE
                  DEPOT SITE, PHILADELPHIA, PENNSYLVANIA.

        (a) Findings.--Congress finds the following:
                (1) The Department of Defense Appropriations Act, 2001
            (Public Law 106-259; 114 Stat. 656), appropriated $5,000,000
            for the demolition of the Army Tacony Warehouse depot site in
            Philadelphia, Pennsylvania, operated by Fort Dix.
                (2) The Secretary of the Army has yet to implement plans to
            demolish the Tacony warehouse.
        (b) Sense of Congress.--It is the sense of Congress that the
    Secretary of the Army should take swift action to finally demolish the
    Tacony warehouse, as previously required by Act of Congress.

                          Subtitle C--Land Conveyances

    SEC. 2821. TERMINATION OF LEASE AND CONVEYANCE OF ARMY RESERVE
                  FACILITY, CONWAY, ARKANSAS.

        (a) Termination of Lease.--Upon the completion of the replacement
    facility authorized for the Army Reserve facility located in Conway,
    Arkansas, the Secretary of the Army may terminate the 99-year lease
    between the Secretary and the University of Central Arkansas for the
    property on which the old facility is located.
        (b) Conveyance of Facility.--As part of the termination of the
    lease under subsection (a), the Secretary may convey, without
    consideration, to the University of Central Arkansas all right, title,
    and interest of the United States in and to the Army Reserve facility
    located on the leased property.
        (c) Assumption of Liability.--The University of Central Arkansas
    shall expressly accept any and all liability pertaining to the physical
    condition of the Army Reserve facility conveyed under subsection (b)
    and shall hold the United States harmless from any and all liability
    arising from the facility's physical condition.

    SEC. 2822. ACTIONS TO QUIET TITLE, FALLIN WATERS SUBDIVISION, EGLIN AIR
                  FORCE BASE, FLORIDA.

        (a) Authority to Quiet Title.--(1) Notwithstanding the restoration
    provisions under the heading ``quartermaster corps'' in the Second
    Deficiency Appropriation Act, 1940 (Act of June 27, 1940; chapter 437;
    54 Stat. 655), the Secretary of the Air Force may take appropriate
    action to quiet title to tracts of land referred to in paragraph (2)
    on, at, adjacent, adjoining, or near Eglin Air Force Base, Florida. The
    Secretary may take such action in order to resolve encroachments upon
    private property by the United States and upon property of the United
    States by private parties, which resulted from reliance on inaccurate
    surveys.
        (2) The tracts of land referred to in paragraph (1) are generally
    described as south of United States Highway 98 and bisecting the north/
    south section line of sections 13 and 14, township 2 south, range 25
    west, located in the platted subdivision of Fallin Waters, Okaloosa
    County, Florida. The exact acreage and legal description of such tracts
    of land shall be determined by a survey satisfactory to the Secretary.
        (b) Authorized Actions.--In carrying out subsection (a),
    appropriate action by the Secretary may include any of the following:
                (1) Disclaiming, on behalf of the United States, any intent
            by the United States to acquire by prescription any property at
            or in the vicinity of Eglin Air Force Base.
                (2) Disposing of tracts of land owned by the United States.
                (3) Acquiring tracts of land by purchase, by donation, or
            by exchange for tracts of land owned by the United States at or
            adjacent to Eglin Air Force Base.
        (c) Acreage Limitations.--Individual tracts of land acquired or
    conveyed by the Secretary under paragraph (2) or (3) of subsection (a)
    may not exceed .10 acres. The total acreage so acquired may not exceed
    two acres.
        (d) Consideration.--Any conveyance by the Secretary under this
    section may be made, at the discretion of the Secretary, without
    consideration, or by exchange for tracts of land adjoining Eglin Air
    Force Base in possession of private parties who mistakenly believed
    that they had acquired title to such tracts.

    SEC. 2823. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE,
                  FLORIDA.

        (a) Modification.--Public Law 91-347 (84 Stat. 447) is amended--
                (1) in the first section, by inserting ``or for other
            public purposes'' before the period at the end; and
                (2) in section 3(1)--
                        (A) by inserting ``or for other public purposes''
                    after ``schools''; and
                        (B) by striking ``such purpose'' and inserting
                    ``such a purpose''.
        (b) Alteration of Legal Instrument.--The Secretary of the Air Force
    shall execute and file in the appropriate office an amended deed or
    other appropriate instrument effectuating the modification of the
    reversionary interest retained by the United States in connection with
    the conveyance made pursuant to Public Law 91-347.

    SEC. 2824. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY AND TENNESSEE.

        (a) Conveyance Authorized.--The Secretary of the Army may convey to
    the department of transportation of the State of Tennessee (in this
    section referred to as the ``department'') all right, title, and
    interest of the United States in and to a parcel of real property
    (right-of-way), including any improvements thereon, located at Fort
    Campbell, Kentucky and Tennessee, for the purpose of realigning and
    upgrading United States Highway 79 from a two-lane highway to a four-
    lane highway.
        (b) Consideration.--(1) As consideration for the conveyance under
    subsection (a), the department shall pay from any source (including
    Federal funds made available to the State from the Highway Trust Fund)
    all of the costs of the Secretary incurred--
                (A) to convey the property, including costs related to the
            preparation of documents under the National Environmental
            Policy Act of 1969 (42 U.S.C. 4321 et seq.), surveys (including
            all surveys required under subsection (c)), cultural reviews,
            and administrative oversight;
                (B) to relocate a cemetery to permit the highway
            realignment and upgrading;
                (C) to acquire approximately 200 acres of mission-essential
            replacement property required to support the training mission
            at Fort Campbell; and
                (D) to dispose of residual Federal property located south
            of the realigned highway.
        (2) The Secretary may accept funds under this subsection from the
    Federal Highway Administration or the State of Tennessee to pay costs
    described in paragraph (1) and credit them to the appropriate
    Department of the Army accounts for the purpose of paying such costs.
        (3) All funds accepted by the Secretary under this subsection shall
    remain available until expended.
        (c) Description of Property.--The exact acreage and legal
    description of the property to be conveyed under subsection (a) or
    acquired and disposed of under section (b) shall be determined by
    surveys satisfactory to 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. 2825. LAND CONVEYANCE, ARMY AND AIR FORCE EXCHANGE SERVICE
                  PROPERTY, DALLAS, TEXAS.

        (a) Conveyance Authorized.--The Secretary of Defense may authorize
    the Army and Air Force Exchange Service, a nonappropriated fund
    instrumentality of the United States, to convey, by sale, all right,
    title, and interest of the United States in and to a parcel of real
    property, including any improvements thereon, located at 1515
    Roundtable Drive in Dallas, Texas.
        (b) Consideration.--As consideration for conveyance under
    subsection (a), the purchaser shall pay to the Secretary, in a single
    lump sum payment, an amount equal to the fair market value of the real
    property conveyed, as determined by the Secretary. Section 574(a) of
    title 40, United States Code, shall apply with respect to the amounts
    received by the Secretary under this subsection.
        (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 purchaser.
        (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. 2826. LAND CONVEYANCE, NAVAL RESERVE CENTER, ORANGE, TEXAS.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey to
    the City of Orange, Texas (in this section referred to as the
    ``City''), all right, title, and interest of the United States in and
    to a parcel of unimproved real property consisting of approximately 2.5
    acres at Naval Reserve Center, Orange, Texas for the purpose of
    permitting the City to use the property for road construction, economic
    development, and other public purposes.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the City shall provide the United States, whether by
    cash payment, in-kind contribution, or a combination thereof, an amount
    that is not less than the fair market value, as determined by the
    Secretary, of the property conveyed under such subsection.
        (c) Payment of Costs of Conveyance.--(1) The Secretary may require
    the City to cover costs to be incurred by the Secretary, or to
    reimburse the Secretary for costs incurred by the Secretary, to carry
    out the conveyance under subsection (a), including survey costs, costs
    related to environmental documentation, and other administrative costs
    related to the conveyance. If amounts are collected from the City in
    advance of the Secretary incurring the actual costs, and the amount
    collected exceeds the costs actually incurred by the Secretary to carry
    out the conveyance, the Secretary shall refund the excess amount to the
    City.
        (2) Amounts received as reimbursement under paragraph (1) shall be
    credited to the fund or account that was used to cover the costs
    incurred by the Secretary in carrying out the conveyance. Amounts so
    credited shall be merged with amounts in such fund or account, and
    shall be available for the same purposes, and subject to the same
    conditions and limitations, as amounts in such fund or account.
        (d) Exemption From Federal Screening.--The conveyance authorized by
    subsection (a) is exempt from the requirement to screen the property
    for other Federal use pursuant to sections 2693 and 2696 of title 10,
    United States Code.
        (e) 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.
        (f) 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. 2827. LAND CONVEYANCE, FORT BELVOIR, VIRGINIA.

        (a) Conveyance Required.--The Secretary of the Army shall convey,
    without consideration, to Fairfax County, Virginia (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 any
    improvements thereon, consisting of approximately 10 acres at Fort
    Belvoir and known as the John McNaughton Memorial baseball fields for
    the purpose of permitting the County to use the property for
    recreational purposes.
        (b) Payment of Costs of Conveyance.--(1) The Secretary may require
    the County to cover costs to be incurred by the Secretary, or to
    reimburse the Secretary for costs incurred by the Secretary, to carry
    out the conveyance under subsection (a), including survey costs, costs
    related to environmental documentation, and other administrative costs
    related to the conveyance. If amounts are collected from the County in
    advance of the Secretary incurring the actual costs, and the amount
    collected exceeds the costs actually incurred by the Secretary to carry
    out the conveyance, the Secretary shall refund the excess amount to the
    County.
        (2) Amounts received as reimbursement under paragraph (1) shall be
    credited to the fund or account that was used to cover the costs
    incurred by the Secretary in carrying out the conveyance. Amounts so
    credited shall be merged with amounts in such fund or account, and
    shall be available for the same purposes, and subject to the same
    conditions and limitations, as amounts in such fund or account.
        (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.
        (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. 2828. LAND CONVEYANCE, PUGET SOUND NAVAL SHIPYARD, BREMERTON,
                  WASHINGTON.

        (a) Conveyance Authorized.--The Secretary of the Navy may convey to
    the City of Bremerton, Washington (in this section referred to as the
    ``City''), all right, title, and interest of the United States in and
    to a parcel of real property, including any improvements thereon,
    consisting of approximately 2.8 acres at the eastern end of the Puget
    Sound Naval Shipyard, Bremerton, Washington, immediately adjacent to
    the Bremerton Transportation Center.
        (b) Consideration.--As consideration for the conveyance under
    subsection (a), the City, directly or through an agreement with another
    entity, shall replace administrative space on the parcel to be conveyed
    by renovating for new occupancy approximately 7,500 square feet of
    existing space in Building 433 at Naval Station, Bremerton, Washington,
    at no cost to the United States, in accordance with plans and
    specifications acceptable to the Secretary. In lieu of any portion of
    such renovation, the Secretary may accept other facility alteration or
    repair of not less than equal value.
        (c) Payment of Costs of Conveyance.--(1) The Secretary shall
    require the City to cover costs to be incurred by the Secretary, or to
    reimburse the Secretary for costs incurred by the Secretary, to carry
    out the conveyance under subsection (a), including survey costs, costs
    related to environmental documentation, and other administrative costs
    related to the conveyance. If amounts are collected from the City in
    advance of the Secretary incurring the actual costs, and the amount
    collected exceeds the costs actually incurred by the Secretary to carry
    out the conveyance, the Secretary shall refund the excess amount to the
    City.
        (2) Amounts received as reimbursement under paragraph (1) shall be
    credited to the fund or account that was used to cover the costs
    incurred by the Secretary in carrying out the conveyance. Amounts so
    credited shall be merged with amounts in such fund or account, and
    shall be available for the same purposes, and subject to the same
    conditions and limitations, as amounts in such fund or account.
        (d) Environmental Conditions.--The Secretary may use funds
    available in the Environmental Restoration Account, Navy to carry out
    the environmental remediation of the real property to be conveyed under
    subsection (a). Such environmental remediation shall be conducted in a
    manner consistent with section 120 of the Comprehensive Environmental
    Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620),
    including the requirement to consider the anticipated future land use
    of the parcel.
        (e) Exemption From Federal Screening.--The conveyance authorized by
    subsection (a) is exempt from the requirement to screen the property
    for other Federal use pursuant to sections 2693 and 2696 of title 10,
    United States Code.
        (f) 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.
        (g) 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.

                           Subtitle D--Other Matters

    SEC. 2841. REDESIGNATION OF YUMA TRAINING RANGE COMPLEX AS BOB STUMP
                  TRAINING RANGE COMPLEX.

        The military aviation training facility located in southwestern
    Arizona and southeastern California and known as the Yuma Training
    Range Complex shall be known and designated as the ``Bob Stump Training
    Range Complex''. Any reference to such training range complex in any
    law, regulation, map, document, record, or other paper of the United
    States shall be considered to be a reference to the Bob Stump Training
    Range Complex.

    SEC. 2842. MODIFICATION OF AUTHORITY TO CONDUCT A ROUND OF REALIGNMENTS
                  AND CLOSURES OF MILITARY INSTALLATIONS IN 2005.

        (a) Revision to Force Structure Plan for 2005 Round.--Section
    2912(a) 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 3001 of the National Defense Authorization Act for Fiscal Year
    2002 (Public Law 107-107; 115 Stat. 1342), is amended--
                (1) by striking subparagraph (A) of paragraph (1) and
            inserting the following:
                        ``(A) A force-structure plan for the Armed Forces
                    that--
                                ``(i) at a minimum, assumes the force
                            structure under the 1991 Base Force force
                            structure (as defined in paragraph (5)) that is
                            also known as the `Cheney-Powell force
                            structure'; and
                                ``(ii) includes such consideration as the
                            Secretary considers appropriate of an
                            assessment by the Secretary of--
                                        ``(I) the probable threats to the
                                    national security during the 20-year
                                    period beginning with fiscal year 2005;
                                        ``(II) the probable end-strength
                                    levels and major military force units
                                    (including land force divisions,
                                    carrier and other major combatant
                                    vessels, air wings, and other
                                    comparable units) needed to meet those
                                    threats; and
                                        ``(III) the anticipated levels of
                                    funding that will be available for
                                    national defense purposes during such
                                    period.'';
                (2) in paragraph (2)(A), by inserting before the period at
            the end the following: ``, based upon an assumption that there
            are no installations available outside the United States for
            the permanent basing of elements of the Armed Forces'';
                (3) in paragraph (4), by inserting after the first sentence
            the following new sentence: ``Any such revision shall be
            consistent with this subsection.''; and
                (4) by adding at the end the following new paragraph:
                ``(5) Base force.--In this subsection, the term `1991 Base
            Force force structure' means the force structure plan for the
            Armed Forces, known as the `Base Force', that was adopted by
            the Secretary of Defense in November 1990 based upon
            recommendations of the Chairman of the Joint Chiefs of Staff
            and as incorporated in the President's budget for fiscal year
            1992, as submitted to Congress in February 1991 and that
            assumed the following force structure:
                        ``(A) For the Department of Defense, 1,600,000
                    members of the Armed Forces on active duty and 900,000
                    members in an active status in the reserve components.
                        ``(B) For the Army, 12 active divisions, six
                    National Guard divisions, and two cadre divisions or
                    their equivalents.
                        ``(C) For the Navy, 12 aircraft carrier battle
                    groups or their equivalents and 451 naval vessels,
                    including 85 attack submarines.
                        ``(D) For the Marine Corps, three active and one
                    Reserve divisions and three active and one Reserve air
                    wings.
                        ``(E) For the Air Force, 15 active fighter wings
                    and 11 National Guard fighter wings or their
                    equivalents.''.
        (b) Preparation of List of Military Installations Excluded from
    Consideration in 2005 Round.--Section 2913 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 3002 of the National
    Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115
    Stat. 1344), is amended by adding at the end the following new
    subsections:
        ``(g) Base Exclusion Criteria.--In preparing the selection criteria
    required by this section that will be used in making recommendations
    for the closure or realignment of military installations inside the
    United States, the Secretary shall ensure that the final criteria
    reflect the requirement to develop a list of those military
    installations to be excluded from the base closure and realignment
    process, as provided in subsection (h).
        ``(h) List of Installations Excluded From Consideration for Closure
    or Realignment.--(1) Before preparing the list required by section
    2914(a) of the military installations inside the United States that the
    Secretary recommends for closure or realignment, the Secretary shall
    prepare a list of core military installations that the Secretary
    considers absolutely essential to the national defense and that should
    not be considered for closure.
        ``(2) Not later than April 1, 2005, the Secretary shall submit to
    the congressional defense committees, publish in the Federal Register,
    and send to the Commission the list required by paragraph (1). The list
    shall contain at least 50 percent of the total number of military
    installations located inside the United States as of the date of the
    enactment of the National Defense Authorization Act for Fiscal Year
    2004.
        ``(3) The Commission shall consider the list based on the final
    criteria developed under subsection (e). The Commission may modify this
    list, in the manner provided in section 2903(d) and section 2914(d), if
    the Commission finds that the inclusion of a military installation on
    the list substantially violates the criteria. The Commission shall
    forward to the President, not later than April 30, 2005, a report
    containing its recommendations regarding the list, which must comply
    with the percentages specified in paragraph (2). The Comptroller
    General shall also comply with section 2903(d)(5) by that date.
        ``(4) If the Commission submits a report to the President under
    paragraph (3), the President shall notify Congress, not later than May
    10, 2005, regarding whether the President approves or disapproves the
    report. If the President disapproves the report, the Commission shall
    be dissolved, and the process by which military installations may be
    selected for closure or realignment under this part in 2005 shall be
    terminated.
        ``(5) A military installation included on the exclusion list
    approved under this subsection may not be included on the closure and
    realignment list prepared under section 2914(a) or otherwise considered
    for closure or realignment as part of the base closure process in
    2005.''.

    SEC. 2843. USE OF FORCE-STRUCTURE PLAN FOR THE ARMED FORCES IN
                  PREPARATION OF SELECTION CRITERIA FOR BASE CLOSURE ROUND.

        Section 2913(a) 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 3002 of the National Defense Authorization Act for
    Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1344), is amended by
    adding at the end the following new paragraph:
                ``(3) Use of force-structure plan.--In preparing the
            proposed and final criteria to be used by the Secretary in
            making recommendations under section 2914 for the closure or
            realignment of military installations inside the United States,
            the Secretary shall use the force-structure plan for the Armed
            Forces prepared under section 2912(a).''.

    SEC. 2844. REQUIREMENT FOR UNANIMOUS VOTE OF DEFENSE BASE CLOSURE AND
                  REALIGNMENT COMMISSION TO RECOMMEND CLOSURE OF MILITARY
                  INSTALLATION NOT RECOMMENDED FOR CLOSURE BY SECRETARY OF
                  DEFENSE.

        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)
    and amended by section 2854 of the Bob Stump National Defense
    Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat.
    2728), is amended--
                (1) in paragraph (3), by striking ``to add'' and inserting
            ``to consider additions''; and
                (2) in paragraph (5)--
                        (A) by inserting ``and unanimous vote'' after
                    ``Site visit''; and
                        (B) by inserting before the period at the end the
                    following: ``and the decision of the Commission to
                    recommend the closure of the installation is
                    unanimous''.

    SEC. 2845. CONSIDERATION OF PUBLIC-ACCESS-ROAD ISSUES RELATED TO
                  DISPOSAL OF PROPERTY AT MILITARY INSTALLATIONS UNDER BASE
                  CLOSURE PROCESS.

        (a) 1988 Law.--Section 204(b)(2)(E) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (Public Law 100-526; 10
    U.S.C. 2687 note) is amended by adding at the end the following new
    sentence: ``If a military installation to be closed or placed in an
    inactive status under this title includes a road used for public access
    through, into, or around the installation, the consultation required by
    this subparagraph shall include a discussion of measures to ensure the
    continued availability of the road for public use after the
    installation is closed or placed in an inactive status.''.
        (b) 1990 Law.--Section 2905(b)(2)(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) is amended by adding at the end the following
    new sentence: ``If a military installation to be closed or placed in an
    inactive status under this part includes a road used for public access
    through, into, or around the installation, the consultation required by
    this subparagraph shall include a discussion of measures to ensure the
    continued availability of the road for public use after the
    installation is closed or placed in an inactive status.''.

     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 2004 for
    the activities of the National Nuclear Security Administration in
    carrying out programs necessary for national security in the amount of
    $8,822,075,000, to be allocated as follows:
                (1) For weapons activities, $6,393,000,000.
                (2) For defense nuclear nonproliferation activities,
            $1,312,695,000.
                (3) For naval reactors, $768,400,000.
                (4) For the Office of the Administrator for Nuclear
            Security, $347,980,000.
        (b) Authorization of New Plant Projects.--From funds referred to in
    subsection (a) that are available for carrying out plant projects, the
    Secretary of Energy may carry out, for weapons activities, the
    following new plant projects:
                Project 04-D-101, test capabilities revitalization, Sandia
            National Laboratories, Albuquerque, New Mexico, $36,450,000.
                Project 04-D-102, exterior communications infrastructure
            modernization, Sandia National Laboratories, Albuquerque, New
            Mexico, $20,000,000.
                Project 04-D-103, project engineering and design, various
            locations, $2,000,000.
                Project 04-D-104, national security sciences building, Los
            Alamos National Laboratory, Los Alamos, New Mexico,
            $38,000,000.
                Project 04-D-125, chemistry and metallurgy facility
            replacement project, Los Alamos National Laboratory, Los
            Alamos, New Mexico, $20,500,000.
                Project 04-D-126, Building 12-44 production cells upgrade,
            Pantex plant, Amarillo, Texas, $8,780,000.
                Project 04-D-127, cleaning and loading modifications,
            Savannah River Site, Aiken, South Carolina, $2,750,000.
                Project 04-D-128, TA-18 Mission relocation project, Los
            Alamos National Laboratory, Los Alamos, New Mexico, $8,820,000.
                Project 04-D-203, facilities and infrastructure
            recapitalization program, project engineering and design,
            various locations, $3,719,000.

    SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

        (a) Authorization of Appropriations.--Funds are hereby authorized
    to be appropriated to the Department of Energy for fiscal year 2004 for
    environmental management activities in carrying out programs necessary
    for national security in the amount of $6,819,314,000, to be allocated
    as follows:
                (1) For defense site acceleration completion,
            $5,824,135,000.
                (2) For defense environmental services, $995,179,000.
        (b) Authorization of New Plant Projects.--From funds referred to in
    subsection (a) that are available for carrying out plant projects, the
    Secretary of Energy may carry out, for defense site acceleration
    completion, the following new plant projects:
                Project 04-D-408, glass waste storage building #2, Savannah
            River Site, Aiken, South Carolina, $20,259,000.
                Project 04-D-414, project engineering and design, various
            locations, $23,500,000.
                Project 04-D-423, 3013 container surveillance capability in
            235-F, Savannah River Site, Aiken, South Carolina, $1,134,000.

    SEC. 3103. OTHER DEFENSE ACTIVITIES.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2004 for other defense activities in carrying
    out programs necessary for national security in the amount of
    $497,331,000.

    SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2004 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)) in the amount of
    $430,000,000.

    SEC. 3105. ENERGY SUPPLY.

        Funds are hereby authorized to be appropriated to the Department of
    Energy for fiscal year 2004 for energy supply activities in carrying
    out programs necessary for national security in the amount of
    $110,473,000.

       Subtitle B--Program Authorizations, Restrictions, and Limitations

    SEC. 3111. MODIFICATION OF PROHIBITION RELATING TO LOW-YIELD NUCLEAR
                  WEAPONS.

        Section 3136 of the National Defense Authorization Act for Fiscal
    Year 1994 (42 U.S.C. 2121 note) is amended--
                (1) in the section heading, by striking ``research and
            development'' and inserting ``development and production'';
                (2) in subsection (a), by striking ``conduct research and
            development which could lead to the production by the United
            States of'' and insert ``develop or produce'';
                (3) in subsection (b)--
                        (A) by striking ``conduct, or provide for the
                    conduct of, research and development which could lead
                    to the production by the United States of'' and insert
                    ``develop, produce, or provide for the development or
                    production of,''; and
                        (B) by striking ``the date of the enactment of this
                    Act,'' and inserting ``November 30, 1993,'';
                (4) in subsection (c)--
                        (A) by striking ``Research and'' in the subsection
                    heading;
                        (B) by striking ``research and'' in the matter
                    preceding paragraph (1); and
                        (C) by inserting ``, including assessment of low-
                    yield nuclear weapons development by other nations that
                    may pose a national security risk to the United
                    States'' before the period at the end of paragraph (3);
                (5) by redesignating subsection (d) as subsection (e); and
                (6) by inserting after subsection (c) the following new
            subsection (d):
        ``(d) Effect on Studies and Design Work.--Nothing in this section
    shall prohibit the Secretary of Energy from conducting, or providing
    for the conduct of, concept definition studies, feasibility studies, or
    detailed engineering design work.''.

    SEC. 3112. TERMINATION OF REQUIREMENT FOR ANNUAL UPDATES OF LONG-TERM
                  PLAN FOR NUCLEAR WEAPONS STOCKPILE LIFE EXTENSION
                  PROGRAM.

        Section 3133 of the National Defense Authorization Act for Fiscal
    Year 2000 (42 U.S.C. 2121 note) is amended by adding at the end the
    following new subsection:
        ``(g) Termination of Annual Updates.--Effective December 31, 2004,
    the requirements of subsections (c), (d), (e), and (f) shall
    terminate.''.

    SEC. 3113. EXTENSION TO ALL DOE FACILITIES OF AUTHORITY TO PROHIBIT
                  DISSEMINATION OF CERTAIN UNCLASSIFIED INFORMATION.

        Subsection a. of section 148 of the Atomic Energy Act of 1954 (42
    U.S.C. 2168) is amended in paragraph (1)--
                (1) in the matter preceding subparagraph (A), by striking
            ``, with respect to atomic energy defense programs,'';
                (2) in subparagraph (A), by striking ``production
            facilities or utilization facilities'' and inserting
            ``production facilities, utilization facilities, nuclear waste
            storage facilities, or uranium enrichment facilities, or any
            other facilities at which activities relating to nuclear
            weapons or nuclear materials are carried out, that are under
            the control or jurisdiction of the Secretary of Energy''; and
                (3) in subparagraph (B), by striking ``production or
            utilization facilities'' and inserting ``such facilities''.

    SEC. 3114. DEPARTMENT OF ENERGY PROJECT REVIEW GROUPS NOT SUBJECT TO
                  FEDERAL ADVISORY COMMITTEE ACT BY REASON OF INCLUSION OF
                  EMPLOYEES OF DEPARTMENT OF ENERGY MANAGEMENT AND
                  OPERATING CONTRACTORS.

        An officer or employee of a management and operating contractor of
    the Department of Energy, when serving as a member of a group reviewing
    or advising on matters related to any one or more management and
    operating contracts of the Department, shall be treated as an officer
    or employee of the Department for purposes of determining whether the
    group is an advisory committee within the meaning of section 3 of the
    Federal Advisory Committee Act (5 U.S.C. App.).

    SEC. 3115. AVAILABILITY OF FUNDS.

        Section 3628 of the Bob Stump National Defense Authorization Act
    for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2760; 42 U.S.C.
    7386h) is amended to read as follows:

    ``SEC. 3628. AVAILABILITY OF FUNDS.

        ``(a) In General.--Except as provided in subsection (b), amounts
    appropriated pursuant to a DOE national security authorization for a
    fiscal year--
                ``(1) shall remain available to be expended only in that
            fiscal year and the two succeeding fiscal years, in the case of
            amounts for the National Nuclear Security Administration; and
                ``(2) may, when so specified in an appropriations Act,
            remain available until expended, in all other cases.
        ``(b) Program Direction.--Amounts appropriated pursuant to a DOE
    national security authorization for a fiscal year for program direction
    shall remain available to be obligated only until the end of that
    fiscal year.''.

    SEC. 3116. LIMITATION ON OBLIGATION OF FUNDS FOR NUCLEAR TEST READINESS
                  PROGRAM.

        Not more than 40 percent of the funds made available to the
    Secretary of Energy for fiscal year 2004 for the Nuclear Test Readiness
    program of the Department of Energy may be obligated until--
                (1) the Secretary of Energy submits to the Committees on
            Armed Services of the Senate and the House of Representatives
            the report required by section 3142(c) of the Bob Stump
            National Defense Authorization Act for Fiscal Year 2003 (Public
            Law 107-314; 116 Stat. 2733), relating to plans for achieving
            enhanced readiness postures for resumption by the United States
            of underground nuclear weapons tests; and
                (2) a period of 30 days has passed after the date on which
            such report is received by those committees.

    SEC. 3117. REQUIREMENT FOR ON-SITE MANAGERS.

        (a) On-Site Manager Requirement.--Before obligating any defense
    nuclear nonproliferation funds for a project described in subsection
    (b), the Secretary of Energy shall appoint a United States Federal
    Government employee as an on-site manager.
        (b) Projects Covered.--Subsection (a) applies to a project--
                (1) to be located in a state of the former Soviet Union;
                (2) which involves dismantlement, destruction, or storage
            facilities, or construction of a facility; and
                (3) with respect to which the total contribution by the
            Department of Energy is expected to exceed $25,000,000.
        (c) Duties of On-Site Manager.--The on-site manager appointed under
    subsection (a) shall--
                (1) develop, in cooperation with representatives from
            governments of countries participating in the project, a list
            of those steps or activities critical to achieving the
            project's disarmament or nonproliferation goals;
                (2) establish a schedule for completing those steps or
            activities;
                (3) meet with all participants to seek assurances that
            those steps or activities are being completed on schedule; and
                (4) suspend United States participation in a project when a
            non-United States participant fails to complete a scheduled
            step or activity on time, unless directed by the Secretary of
            Energy to resume United States participation.
        (d) Steps or Activities.--Steps or activities referred to in
    subsection (c)(1) are those activities that, if not completed, will
    prevent a project from achieving its disarmament or nonproliferation
    goals, including, at a minimum, the following:
                (1) Identification and acquisition of permits (as defined
            in subsection (f)).
                (2) Verification that the items, substances, or
            capabilities to be dismantled, secured, or otherwise modified
            are available for dismantlement, securing, or modification.
                (3) Timely provision of financial, personnel, management,
            transportation, and other resources.
        (e) Notification to Congress.--In any case in which the Secretary
    of Energy directs an on-site manager to resume United States
    participation in a project under subsection (c)(4), the Secretary shall
    concurrently notify Congress of such direction.
        (f) Permit Defined.--In this section, the term ``permit'' means any
    local or national permit for development, general construction,
    environmental, land use, or other purposes that is required in the
    state of the former Soviet Union in which the project is being or is
    proposed to be carried out.
        (g) Effective Date.--This section shall take effect six months
    after the date of the enactment of this Act.

           Subtitle C--Consolidation of National Security Provisions

    SEC. 3121. TRANSFER AND CONSOLIDATION OF RECURRING AND GENERAL
                  PROVISIONS ON DEPARTMENT OF ENERGY NATIONAL SECURITY
                  PROGRAMS.

        (a) Purpose.--
                (1) In general.--The purpose of this section is to assemble
            together, without substantive amendment but with technical and
            conforming amendments of a non-substantive nature, recurring
            and general provisions of law on Department of Energy national
            security programs that remain in force in order to consolidate
            and organize such provisions of law into a single Act intended
            to comprise general provisions of law on such programs.
                (2) Construction of transfers.--The transfer of a provision
            of law by this section shall not be construed as amending,
            altering, or otherwise modifying the substantive effect of such
            provision.
                (3) Coordination with other amendments.--For purposes of
            applying amendments made by provisions of this Act other than
            provisions of this section, this section shall be treated as
            having been enacted immediately after the other provisions of
            this Act.
                (4) Treatment of satisfied requirements.--Any requirement
            in a provision of law transferred under this section (including
            a requirement that an amendment to law be executed) that has
            been fully satisfied in accordance with the terms of such
            provision of law as of the date of transfer under this section
            shall be treated as so fully satisfied, and shall not be
            treated as being revived solely by reason of transfer under
            this section.
                (5) Classification.--The provisions of the Atomic Energy
            Defense Act, as amended by this section, shall be classified to
            the United States Code as a new chapter of title 50, United
            States Code.
        (b) Division Heading.--The Bob Stump National Defense Authorization
    Act for Fiscal Year 2003 (Public Law 107-314) is amended by adding at
    the end the following new division heading:

               ``DIVISION D--ATOMIC ENERGY DEFENSE PROVISIONS''.

        (c) Short Title; Definition.--
                (1) Short title.--Section 3601 of the Atomic Energy Defense
            Act (title XXXVI of Public Law 107-314; 116 Stat. 2756) is--
                        (A) transferred to the end of the Bob Stump
                    National Defense Authorization Act for Fiscal Year
                    2003;
                        (B) redesignated as section 4001;
                        (C) inserted after the heading for division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as added by subsection (b); and
                        (D) amended by striking ``title'' and inserting
                    ``division''.
                (2) Definition.--Division D of the Bob Stump National
            Defense Authorization Act for Fiscal Year 2003, as amended by
            this section, is further amended by adding at the end the
            following new section:

    ``SEC. 4002. DEFINITION.

        ``In this division, 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.''.
        (d) Organizational Matters.--
                (1) Title heading.--Division D of the Bob Stump National
            Defense Authorization Act for Fiscal Year 2003, as amended by
            this section, is further amended by adding at the end the
            following:

                     ``TITLE XLI--ORGANIZATIONAL MATTERS''.

                (2) Naval nuclear propulsion program.--Section 1634 of the
            Department of Defense Authorization Act, 1985 (Public Law 98-
            525; 98 Stat. 2649) is--
                        (A) transferred to title XLI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) inserted after the title heading for such
                    title, as so added; and
                        (C) amended--
                                (i) by striking the section heading and
                            inserting the following new section heading:

    ``SEC. 4101. NAVAL NUCLEAR PROPULSION PROGRAM.'';

                            and
                                (ii) by striking ``Sec. 1634.''.
                (3) Management structure for facilities and laboratories.--
            Section 3140 of the National Defense Authorization Act for
            Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2833) is--
                        (A) transferred to title XLI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4102;
                        (C) inserted after section 4101, as added by
                    paragraph (2); and
                        (D) amended in subsection (d)(2), by striking ``120
                    days after the date of the enactment of this Act,'' and
                    inserting ``January 21, 1997,''.
                (4) Restriction on licensing requirements for certain
            activities and facilities.--Section 210 of the Department of
            Energy National Security and Military Applications of Nuclear
            Energy Authorization Act of 1981 (Public Law 96-540; 94 Stat.
            3202) is--
                        (A) transferred to title XLI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4102, as added by
                    paragraph (3); and
                        (C) amended--
                                (i) by striking the section heading and
                            inserting the following new section heading:

    ``SEC. 4103. RESTRICTION ON LICENSING REQUIREMENT FOR CERTAIN DEFENSE
                  ACTIVITIES AND FACILITIES.'';

                                (ii) by striking ``Sec. 210.''; and
                                (iii) by striking ``this or any other Act''
                            and inserting ``the Department of Energy
                            National Security and Military Applications of
                            Nuclear Energy Authorization Act of 1981
                            (Public Law 96-540) or any other Act''.
        (e) Nuclear Weapons Stockpile Matters.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

                ``TITLE XLII--NUCLEAR WEAPONS STOCKPILE MATTERS

         ``Subtitle A--Stockpile Stewardship and Weapons Production''.

                (2) Stockpile stewardship program.--Section 3138 of the
            National Defense Authorization Act for Fiscal Year 1994 (Public
            Law 103-160; 107 Stat. 1946), as amended by section 3152(e) of
            the National Defense Authorization Act for Fiscal Year 1998
            (Public Law 105-85; 111 Stat. 2042), is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4201; and
                        (C) inserted after the heading for subtitle A of
                    such title, as so added.
                (3) Stockpile stewardship criteria.--Section 3158 of the
            Strom Thurmond National Defense Authorization Act for Fiscal
            Year 1999 (Public Law 105-261; 112 Stat. 2257), as amended,
            is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4202; and
                        (C) inserted after section 4201, as added by
                    paragraph (2).
                (4) Plan for stewardship, management, and certification of
            warheads in stockpile.--Section 3151 of the National Defense
            Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111
            Stat. 2041) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4203; and
                        (C) inserted after section 4202, as added by
                    paragraph (3).
                (5) Stockpile life extension program.--Section 3133 of the
            National Defense Authorization Act for Fiscal Year 2000 (Public
            Law 106-65; 113 Stat. 926), as amended by section 3112, is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4204;
                        (C) inserted after section 4203, as added by
                    paragraph (4); and
                        (D) amended in subsection (c)(1) by striking ``the
                    date of the enactment of this Act'' and inserting
                    ``October 5, 1999''.
                (6) Annual assessments and reports on condition of
            stockpile.--Section 3141 of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116
            Stat. 2730) is--
                        (A) transferred to title XLII of division D of such
                    Act, as amended by this subsection;
                        (B) redesignated as section 4205;
                        (C) inserted after section 4204, as added by
                    paragraph (5); and
                        (D) amended in subsection (d)(3)(B) by striking
                    ``section 3137 of the National Defense Authorization
                    Act for Fiscal Year 1996 (42 U.S.C. 2121 note)'' and
                    inserting ``section 4212''.
                (7) Form of certain certifications regarding stockpile.--
            Section 3194 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-481) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4206; and
                        (C) inserted after section 4205, as added by
                    paragraph (6).
                (8) Nuclear test ban readiness program.--Section 1436 of
            the National Defense Authorization Act, Fiscal Year 1989
            (Public Law 100-456; 102 Stat. 2075) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4207;
                        (C) inserted after section 4206, as added by
                    paragraph (7); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (9) Study on nuclear test readiness postures.--Section 3152
            of the National Defense Authorization Act for Fiscal Year 1996
            (Public Law 104-106; 110 Stat. 623), as amended by section 3192
            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-480), is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4208; and
                        (C) inserted after section 4207, as added by
                    paragraph (8).
                (10) Requirements for requests for new or modified nuclear
            weapons.--Section 3143 of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116
            Stat. 2733) is--
                        (A) transferred to title XLII of division D of such
                    Act, as amended by this subsection;
                        (B) redesignated as section 4209; and
                        (C) inserted after section 4208, as added by
                    paragraph (9).
                (11) Limitation on underground nuclear weapons tests.--
            Subsection (f) of section 507 of the Energy and Water
            Development Appropriations Act, 1993 (Public Law 102-337; 106
            Stat. 1345) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4209, as added by
                    paragraph (10); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4210. LIMITATION ON UNDERGROUND NUCLEAR WEAPONS TESTS.'';

                            and
                                (ii) by striking ``(f)''.
                (12) Testing of nuclear weapons.--Section 3137 of the
            National Defense Authorization Act for Fiscal Year 1994 (Public
            Law 103-160; 107 Stat. 1946) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4211;
                        (C) inserted after section 4210, as added by
                    paragraph (11); and
                        (D) amended--
                                (i) in subsection (a), by inserting ``of
                            the National Defense Authorization Act for
                            Fiscal Year 1994 (Public Law 103-160)'' after
                            ``section 3101(a)(2)''; and
                                (ii) in subsection (b), by striking ``this
                            Act'' and inserting ``the National Defense
                            Authorization Act for Fiscal Year 1994''.
                (13) Manufacturing infrastructure for stockpile.--Section
            3137 of the National Defense Authorization Act for Fiscal Year
            1996 (Public Law 104-106; 110 Stat. 620), as amended by section
            3132 of the National Defense Authorization Act for Fiscal Year
            1997 (Public Law 104-201; 110 Stat. 2829), is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4212;
                        (C) inserted after section 4211, as added by
                    paragraph (12); and
                        (D) amended in subsection (d) by inserting ``of the
                    National Defense Authorization Act for Fiscal Year 1996
                    (Public Law 104-106)'' after ``section 3101(b)''.
                (14) Reports on critical difficulties at laboratories and
            plants.--Section 3159 of the National Defense Authorization Act
            for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2842), as
            amended by section 1305 of the National Defense Authorization
            Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1954)
            and section 3163 of the National Defense Authorization Act for
            Fiscal Year 2000 (Public Law 106-65; 113 Stat. 944), is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4213; and
                        (C) inserted after section 4212, as added by
                    paragraph (13).
                (15) Subtitle heading on tritium.--Title XLII of division D
            of the Bob Stump National Defense Authorization Act for Fiscal
            Year 2003, as amended by this subsection, is further amended by
            adding at the end the following new subtitle heading:

                            ``Subtitle B--Tritium''.

                (16) Tritium production program.--Section 3133 of the
            National Defense Authorization Act for Fiscal Year 1996 (Public
            Law 104-106; 110 Stat. 618) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4231;
                        (C) inserted after the heading for subtitle B of
                    such title XLII, as added by paragraph (15); and
                        (D) amended--
                                (i) by striking ``the date of the enactment
                            of this Act'' each place it appears and
                            inserting ``February 10, 1996''; and
                                (ii) in subsection (b), by inserting ``of
                            the National Defense Authorization Act for
                            Fiscal Year 1996 (Public Law 104-106)'' after
                            ``section 3101''.
                (17) Tritium recycling.--Section 3136 of the National
            Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
            106; 110 Stat. 620) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4232; and
                        (C) inserted after section 4231, as added by
                    paragraph (16).
                (18) Tritium Production.--Subsections (c) and (d) of
            section 3133 of the National Defense Authorization Act for
            Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2830) are--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4232, as added by
                    paragraph (17); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4233. TRITIUM PRODUCTION.'';

                                (ii) by redesignating such subsections as
                            subsections (a) and (b), respectively; and
                                (iii) in subsection (a), as so
                            redesignated, by inserting ``of Energy'' after
                            ``The Secretary''.
                (19) Modernization and consolidation of tritium recycling
            facilities.--Section 3134 of the National Defense Authorization
            Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2830)
            is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4234;
                        (C) inserted after section 4233, as added by
                    paragraph (18); and
                        (D) amended in subsection (b) by inserting ``of the
                    National Defense Authorization Act for Fiscal Year 1997
                    (Public Law 104-201)'' after ``section 3101''.
                (20) Procedures for meeting tritium production
            requirements.--Section 3134 of the National Defense
            Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
            Stat. 927) is--
                        (A) transferred to title XLII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4235; and
                        (C) inserted after section 4234, as added by
                    paragraph (19).
        (f) Proliferation Matters.--
                (1) Title heading.--Division D of the Bob Stump National
            Defense Authorization Act for Fiscal Year 2003, as amended by
            this section, is further amended by adding at the end the
            following new title heading:

                    ``TITLE XLIII--PROLIFERATION MATTERS''.

                (2) International cooperative stockpile stewardship.--
            Section 3133 of the National Defense Authorization Act for
            Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2036), as
            amended by sections 1069 and 3131 of the Strom Thurmond
            National Defense Authorization Act for Fiscal Year 1999 (Public
            Law 105-261; 112 Stat. 2136, 2246), is--
                        (A) transferred to title XLIII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4301;
                        (C) inserted after the heading for such title, as
                    so added; and
                        (D) amended in subsection (b)(3) by striking ``of
                    this Act'' and inserting ``of the National Defense
                    Authorization Act for Fiscal Year 1998 (Public Law 105-
                    85)''.
                (3) Nonproliferation initiatives and activities.--Section
            3136 of the National Defense Authorization Act for Fiscal Year
            2000 (Public Law 106-65; 113 Stat. 927) is--
                        (A) transferred to title XLIII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4302;
                        (C) inserted after section 4301, as added by
                    paragraph (2); and
                        (D) amended in subsection (b)(1) by striking ``this
                    title'' and inserting ``title XXXI of the National
                    Defense Authorization Act for Fiscal Year 2000 (Public
                    Law 106-65)''.
                (4) Annual report on materials protection, control, and
            accounting program.--Section 3171 of the Floyd D. Spence
            National Defense Authorization Act for Fiscal Year 2001 (as
            enacted into law by Public Law 106-398; 114 Stat. 1645A-475)
            is--
                        (A) transferred to title XLIII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4303;
                        (C) inserted after section 4302, as added by
                    paragraph (3); and
                        (D) amended in subsection (c)(1) by striking ``this
                    Act'' and inserting ``the Floyd D. Spence National
                    Defense Authorization Act for Fiscal Year 2001 (as
                    enacted into law by Public Law 106-398)''.
                (5) Nuclear cities initiative.--Section 3172 of the Floyd
            D. Spence National Defense Authorization Act for Fiscal Year
            2001 (as enacted into law by Public Law 106-398; 114 Stat.
            1645A-476) is--
                        (A) transferred to title XLIII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4304; and
                        (C) inserted after section 4303, as added by
                    paragraph (4).
                (6) Programs on fissile materials.--Section 3131 of the
            National Defense Authorization Act for Fiscal Year 1996 (Public
            Law 104-106; 110 Stat. 617), as amended by section 3152 of the
            Bob Stump National Defense Authorization Act for Fiscal Year
            2003 (Public Law 107-314; 116 Stat. 2738), is--
                        (A) transferred to title XLIII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4305; and
                        (C) inserted after section 4304, as added by
                    paragraph (5).
        (g) Environmental Restoration and Waste Management Matters.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

      ``TITLE XLIV--ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MATTERS

        ``Subtitle A--Environmental Restoration and Waste Management''.

                (2) Defense environmental restoration and waste management
            account.--Section 3134 of the National Defense Authorization
            Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105
            Stat. 1575) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4401; and
                        (C) inserted after the heading for subtitle A of
                    such title, as so added.
                (3) Future use plans for environmental management
            program.--Section 3153 of the National Defense Authorization
            Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2839)
            is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4402;
                        (C) inserted after section 4401, as added by
                    paragraph (2); and
                        (D) amended--
                                (i) in subsection (d), by striking ``the
                            date of the enactment of this Act'' and
                            inserting ``September 23, 1996,''; and
                                (ii) in subsection (h)(1), by striking
                            ``the date of the enactment of this Act'' and
                            inserting ``September 23, 1996''.
                (4) Integrated fissile materials management plan.--Section
            3172 of the National Defense Authorization Act for Fiscal Year
            2000 (Public Law 106-65; 113 Stat. 948) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4403; and
                        (C) inserted after section 4402, as added by
                    paragraph (3).
                (5) Baseline environmental management reports.--Section
            3153 of the National Defense Authorization Act for Fiscal Year
            1994 (Public Law 103-160; 107 Stat. 1950), as amended by
            section 3160 of the National Defense Authorization Act for
            Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3094), section
            3152 of the National Defense Authorization Act for Fiscal Year
            1997 (Public Law 104-201; 110 Stat. 2839), and section 3160 of
            the National Defense Authorization Act for Fiscal Year 1998
            (Public Law 105-85; 111 Stat. 2048), is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4404; and
                        (C) inserted after section 4403, as added by
                    paragraph (4).
                (6) Accelerated schedule of environmental restoration and
            waste management.--Section 3156 of the National Defense
            Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
            Stat. 625) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4405;
                        (C) inserted after section 4404, as added by
                    paragraph (5); and
                        (D) amended in subsection (b)(2) by inserting
                    before the period the following: ``, the predecessor
                    provision to section 4404 of this Act''.
                (7) Defense waste cleanup technology program.--Section 3141
            of the National Defense Authorization Act for Fiscal Years 1990
            and 1991 (Public Law 101-189; 103 Stat. 1679) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4406;
                        (C) inserted after section 4405, as added by
                    paragraph (6); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (8) Report on environmental restoration expenditures.--
            Section 3134 of the National Defense Authorization Act for
            Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1833) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4407;
                        (C) inserted after section 4406, as added by
                    paragraph (7); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (9) Public participation in planning for environmental
            restoration and waste management.--Subsection (e) of section
            3160 of the National Defense Authorization Act for Fiscal Year
            1995 (Public Law 103-337; 108 Stat. 3095) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4407, as added by
                    paragraph (8); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR ENVIRONMENTAL
                  RESTORATION AND WASTE MANAGEMENT AT DEFENSE NUCLEAR
                  FACILITIES.'';

                            and
                                (ii) by striking ``(e) Public Participation
                            in Planning.--''.
                (10) Subtitle heading on closure of facilities.--Title XLIV
            of division D of the Bob Stump National Defense Authorization
            Act for Fiscal Year 2003, as amended by this subsection, is
            further amended by adding at the end the following new subtitle
            heading:

                     ``Subtitle B--Closure of Facilities''.

                (11) Projects to accelerate closure activities at defense
            nuclear facilities.--Section 3143 of the National Defense
            Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110
            Stat. 2836) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4421;
                        (C) inserted after the heading for subtitle B of
                    such title, as added by paragraph (10); and
                        (D) amended in subsection (i), by striking ``the
                    expiration of the 15-year period beginning on the date
                    of the enactment of this Act'' and inserting
                    ``September 23, 2011''.
                (12) Reports in connection with permanent closure of
            defense nuclear facilities.--Section 3156 of the National
            Defense Authorization Act for Fiscal Years 1990 and 1991
            (Public Law 101-189; 103 Stat. 1683) is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4422;
                        (C) inserted after section 4421, as added by
                    paragraph (11); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (13) Subtitle heading on Privatization.--Title XLIV of
            division D of the Bob Stump National Defense Authorization Act
            for Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                         ``Subtitle C--Privatization''.

                (14) Defense environmental management privatization
            projects.--Section 3132 of the National Defense Authorization
            Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2034)
            is--
                        (A) transferred to title XLIV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4431;
                        (C) inserted after the heading for subtitle C of
                    such title, as added by paragraph (13); and
                        (D) amended--
                                (i) in subsections (a), (c)(1)(B)(i), and
                            (d), by inserting ``of the National Defense
                            Authorization Act for Fiscal Year 1998 (Public
                            Law 105-85)'' after ``section 3102(i)''; and
                                (ii) in subsections (c)(1)(B)(ii) and (f),
                            by striking ``the date of enactment of this
                            Act'' and inserting ``November 18, 1997''.
        (h) Safeguards and Security Matters.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

                  ``TITLE XLV--SAFEGUARDS AND SECURITY MATTERS

                    ``Subtitle A--Safeguards and Security''.

                (2) Prohibition on international inspections of facilities
            without protection of restricted data.--Section 3154 of the
            National Defense Authorization Act for Fiscal Year 1996 (Public
            Law 104-106; 110 Stat. 624) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4501;
                        (C) inserted after the heading for subtitle A of
                    such title, as so added; and
                        (D) amended--
                                (i) by striking ``(1) The'' and inserting
                            ``The''; and
                                (ii) by striking ``(2) For purposes of
                            paragraph (1),'' and inserting ``(c) Restricted
                            Data Defined.--In this section,''.
                (3) Restrictions on access to laboratories by foreign
            visitors from sensitive countries.--Section 3146 of the
            National Defense Authorization Act for Fiscal Year 2000 (Public
            Law 106-65; 113 Stat. 935) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4502;
                        (C) inserted after section 4501, as added by
                    paragraph (2); and
                        (D) amended--
                                (i) in subsection (b)(2)--
                                        (I) in the matter preceding
                                    subparagraph (A), by striking ``30 days
                                    after the date of the enactment of this
                                    Act'' and inserting ``on November 4,
                                    1999,''; and
                                        (II) in subparagraph (A), by
                                    striking ``The date that is 90 days
                                    after the date of the enactment of this
                                    Act'' and inserting ``January 3,
                                    2000'';
                                (ii) in subsection (d)(1), by striking
                            ``the date of the enactment of this Act,'' and
                            inserting ``October 5, 1999,''; and
                                (iii) in subsection (g), by adding at the
                            end the following new paragraphs:
                ``(3) The term `national laboratory' means any of the
            following:
                        ``(A) Lawrence Livermore National Laboratory,
                    Livermore, California.
                        ``(B) Los Alamos National Laboratory, Los Alamos,
                    New Mexico.
                        ``(C) Sandia National Laboratories, Albuquerque,
                    New Mexico and Livermore, California.
                ``(4) The term `Restricted Data' has the meaning given that
            term in section 11 y. of the Atomic Energy Act of 1954 (42
            U.S.C. 2014(y)).''.
                (4) Background investigations on certain personnel.--
            Section 3143 of the National Defense Authorization Act for
            Fiscal Year 2000 (Public Law 106-65; 113 Stat. 934) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4503;
                        (C) inserted after section 4502, as added by
                    paragraph (3); and
                        (D) amended--
                                (i) in subsection (b), by striking ``the
                            date of the enactment of this Act'' and
                            inserting ``October 5, 1999,''; and
                                (ii) by adding at the end the following new
                            subsection:
        ``(c) Definitions.--In this section, the terms `national
    laboratory' and `Restricted Data' have the meanings given such terms in
    section 4502(g).''.
                (5) Counterintelligence polygraph program.--
                        (A) Department of energy counterintelligence
                    polygraph program.--Section 3152 of the National
                    Defense Authorization Act for Fiscal Year 2002 (Public
                    Law 107-107; 115 Stat. 1376) is--
                                (i) transferred to title XLV of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) redesignated as section 4504;
                                (iii) inserted after section 4503, as added
                            by paragraph (4); and
                                (iv) amended in subsection (c) by striking
                            ``section 3154 of the Department of Energy
                            Facilities Safeguards, Security, and
                            Counterintelligence Enhancement Act of 1999
                            (subtitle D of title XXXI of Public Law 106-65;
                            42 U.S.C. 7383h)'' and inserting ``section
                            4504A''.
                        (B) Counterintelligence polygraph program.--Section
                    3154 of the National Defense Authorization Act for
                    Fiscal Year 2000 (Public Law 106-65; 113 Stat. 941), as
                    amended by section 3135 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-456), is--
                                (i) transferred to title XLV of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) redesignated as section 4504A;
                                (iii) inserted after section 4504, as added
                            by subparagraph (A); and
                                (iv) amended in subsection (h) by striking
                            ``180 days after the date of the enactment of
                            this Act,'' and inserting ``April 5, 2000,''.
                (6) Notice of security and counterintelligence failures.--
            Section 3150 of the National Defense Authorization Act for
            Fiscal Year 2000 (Public Law 106-65; 113 Stat. 939) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4505; and
                        (C) inserted after section 4504A, as added by
                    paragraph (5)(B).
                (7) Annual report on security functions at nuclear weapons
            facilities.--Section 3162 of the National Defense Authorization
            Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2049)
            is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4506;
                        (C) inserted after section 4505, as added by
                    paragraph (6); and
                        (D) amended in subsection (b) by inserting ``of the
                    National Defense Authorization Act for Fiscal Year 1998
                    (Public Law 105-85; 111 Stat. 2048; 42 U.S.C. 7251
                    note)'' after ``section 3161''.
                (8) Report on counterintelligence and security practices at
            laboratories.--Section 3152 of the National Defense
            Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
            Stat. 940) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4507;
                        (C) inserted after section 4506, as added by
                    paragraph (7); and
                        (D) amended by adding at the end the following new
                    subsection:
        ``(c) National Laboratory Defined.--In this section, the term
    `national laboratory' has the meaning given that term in section
    4502(g)(3).''.
                (9) Report on security vulnerabilities of national
            laboratory computers.--Section 3153 of the National Defense
            Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113
            Stat. 940) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4508;
                        (C) inserted after section 4507, as added by
                    paragraph (8); and
                        (D) amended by adding at the end the following new
                    subsection:
        ``(f) National Laboratory Defined.--In this section, the term
    `national laboratory' has the meaning given that term in section
    4502(g)(3).''.
                (10) Subtitle heading on classified information.--Title XLV
            of division D of the Bob Stump National Defense Authorization
            Act for Fiscal Year 2003, as amended by this subsection, is
            further amended by adding at the end the following new subtitle
            heading:

                    ``Subtitle B--Classified Information''.

                (11) Review of certain documents before declassification
            and release.--Section 3155 of the National Defense
            Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
            Stat. 625) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4521; and
                        (C) inserted after the heading for subtitle B of
                    such title, as added by paragraph (10).
                (12) Protection against inadvertent release of restricted
            data and formerly restricted data.--Section 3161 of the Strom
            Thurmond National Defense Authorization Act for Fiscal Year
            1999 (Public Law 105-261; 112 Stat. 2259), as amended by
            section 1067(3) of the National Defense Authorization Act for
            Fiscal Year 2000 (Public Law 106-65; 113 Stat. 774) and section
            3193 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-480), is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4522;
                        (C) inserted after section 4521, as added by
                    paragraph (11); and
                        (D) amended--
                                (i) in subsection (c)(1), by striking ``the
                            date of the enactment of this Act'' and
                            inserting ``October 17, 1998,'';
                                (ii) in subsection (f)(1), by striking
                            ``the date of the enactment of this Act'' and
                            inserting ``October 17, 1998''; and
                                (iii) in subsection (f)(2), by striking
                            ``The Secretary'' and inserting ``Commencing
                            with inadvertent releases discovered on or
                            after October 30, 2000, the Secretary''.
                (13) Supplement to plan for declassification of restricted
            data and formerly restricted data.--Section 3149 of the
            National Defense Authorization Act for Fiscal Year 2000 (Public
            Law 106-65; 113 Stat. 938) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4523;
                        (C) inserted after section 4522, as added by
                    paragraph (12); and
                        (D) amended--
                                (i) in subsection (a), by striking
                            ``subsection (a) of section 3161 of the Strom
                            Thurmond National Defense Authorization Act for
                            Fiscal Year 1999 (Public Law 105-261; 112 Stat.
                            2260; 50 U.S.C. 435 note)'' and inserting
                            ``subsection (a) of section 4522'';
                                (ii) in subsection (b)--
                                        (I) by striking ``section
                                    3161(b)(1) of that Act'' and inserting
                                    ``subsection (b)(1) of section 4522'';
                                    and
                                        (II) by striking ``the date of the
                                    enactment of that Act'' and inserting
                                    ``October 17, 1998,'';
                                (iii) in subsection (c)--
                                        (I) by striking ``section 3161(c)
                                    of that Act'' and inserting
                                    ``subsection (c) of section 4522''; and
                                        (II) by striking ``section 3161(a)
                                    of that Act'' and inserting
                                    ``subsection (a) of such section''; and
                                (iv) in subsection (d), by striking
                            ``section 3161(d) of that Act'' and inserting
                            ``subsection (d) of section 4522''.
                (14) Protection of classified information during
            laboratory-to-laboratory exchanges.--Section 3145 of the
            National Defense Authorization Act for Fiscal Year 2000 (Public
            Law 106-65; 113 Stat. 935) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4524; and
                        (C) inserted after section 4523, as added by
                    paragraph (13).
                (15) Identification in budgets of amount for
            declassification activities.--Section 3173 of the National
            Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
            65; 113 Stat. 949) is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4525;
                        (C) inserted after section 4524, as added by
                    paragraph (14); and
                        (D) amended in subsection (b) by striking ``the
                    date of the enactment of this Act'' and inserting
                    ``October 5, 1999,''.
                (16) Subtitle heading on emergency response.--Title XLV of
            division D of the Bob Stump National Defense Authorization Act
            for Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                      ``Subtitle C--Emergency Response''.

                (17) Responsibility for defense programs emergency response
            program.--Section 3158 of the National Defense Authorization
            Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 626)
            is--
                        (A) transferred to title XLV of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4541; and
                        (C) inserted after the heading for subtitle C of
                    such title, as added by paragraph (16).
        (i) Personnel Matters.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

                        ``TITLE XLVI--PERSONNEL MATTERS

                     ``Subtitle A--Personnel Management''.

                (2) Authority for appointment of certain scientific,
            engineering, and technical personnel.--Section 3161 of the
            National Defense Authorization Act for Fiscal Year 1995 (Public
            Law 103-337; 108 Stat. 3095), as amended by section 3139 of the
            National Defense Authorization Act for Fiscal Year 1998 (Public
            Law 105-85; 111 Stat. 2040), sections 3152 and 3155 of the
            Strom Thurmond National Defense Authorization Act for Fiscal
            Year 1999 (Public Law 105-261; 112 Stat. 2253, 2257), and
            section 3191 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-480), is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4601; and
                        (C) inserted after the heading for subtitle A of
                    such title, as so added.
                (3) Whistleblower protection program.--Section 3164 of the
            National Defense Authorization Act for Fiscal Year 2000 (Public
            Law 106-65; 113 Stat. 946) is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4602;
                        (C) inserted after section 4601, as added by
                    paragraph (2); and
                        (D) amended in subsection (n) by striking ``60 days
                    after the date of the enactment of this Act,'' and
                    inserting ``December 5, 1999,''.
                (4) Employee incentives for workers at closure project
            facilities.--Section 3136 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-458) is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4603;
                        (C) inserted after section 4602, as added by
                    paragraph (3); and
                        (D) amended--
                                (i) in subsections (c) and (i)(1)(A), by
                            striking ``section 3143 of the National Defense
                            Authorization Act for Fiscal Year 1997 (42
                            U.S.C. 7274n)'' and inserting ``section 4421'';
                            and
                                (ii) in subsection (g), by striking
                            ``section 3143(h) of the National Defense
                            Authorization Act for Fiscal Year 1997'' and
                            inserting ``section 4421(h)''.
                (5) Defense nuclear facility workforce restructuring
            plan.--Section 3161 of the National Defense Authorization Act
            for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2644), as
            amended by section 1070(c)(2) of the National Defense
            Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108
            Stat. 2857), Public Law 105-277 (112 Stat. 2681-419, 2681-430),
            and section 1048(h)(1) of the National Defense Authorization
            Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1229),
            is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4604;
                        (C) inserted after section 4603, as added by
                    paragraph (4); and
                        (D) amended--
                                (i) in subsection (a), by striking
                            ``(hereinafter in this subtitle referred to as
                            the `Secretary')''; and
                                (ii) by adding at the end the following new
                            subsection:
        ``(g) Department of Energy Defense Nuclear Facility Defined.--In
    this section, the term `Department of Energy defense nuclear facility'
    means--
                ``(1) a production facility or utilization facility (as
            those terms are defined in section 11 of the Atomic Energy Act
            of 1954 (42 U.S.C. 2014)) that is under the control or
            jurisdiction of the Secretary and that is operated for national
            security purposes (including the tritium loading facility at
            Savannah River, South Carolina, the 236 H facility at Savannah
            River, South Carolina; and the Mound Laboratory, Ohio), but the
            term does not include any facility that does not conduct atomic
            energy defense activities and does not include any facility or
            activity covered by Executive Order Number 12344, dated
            February 1, 1982, pertaining to the naval nuclear propulsion
            program;
                ``(2) a nuclear waste storage or disposal facility that is
            under the control or jurisdiction of the Secretary;
                ``(3) a testing and assembly facility that is under the
            control or jurisdiction of the Secretary and that is operated
            for national security purposes (including the Nevada Test Site,
            Nevada; the Pinnellas Plant, Florida; and the Pantex facility,
            Texas);
                ``(4) an atomic weapons research facility that is under the
            control or jurisdiction of the Secretary (including Lawrence
            Livermore, Los Alamos, and Sandia National Laboratories); or
                ``(5) any facility described in paragraphs (1) through (4)
            that--
                        ``(A) is no longer in operation;
                        ``(B) was under the control or jurisdiction of the
                    Department of Defense, the Atomic Energy Commission, or
                    the Energy Research and Development Administration; and
                        ``(C) was operated for national security
                    purposes.''.
                (6) Authority to provide certificate of commendation to
            employees.--Section 3195 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-481) is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4605; and
                        (C) inserted after section 4604, as added by
                    paragraph (5).
                (7) Subtitle heading on training and education.--Title XLVI
            of division D of the Bob Stump National Defense Authorization
            Act for Fiscal Year 2003, as amended by this subsection, is
            further amended by adding at the end the following new subtitle
            heading:

                    ``Subtitle B--Education and Training''.

                (8) Executive management training.--Section 3142 of the
            National Defense Authorization Act for Fiscal Years 1990 and
            1991 (Public Law 101-189; 103 Stat. 1680) is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4621;
                        (C) inserted after the heading for subtitle B of
                    such title, as added by paragraph (7); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (9) Stockpile stewardship recruitment and training
            program.--Section 3131 of the National Defense Authorization
            Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3085)
            is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4622;
                        (C) inserted after section 4621, as added by
                    paragraph (8); and
                        (D) amended--
                                (i) in subsection (a)(1), by striking
                            ``section 3138 of the National Defense
                            Authorization Act for Fiscal Year 1994 (Public
                            Law 103-160; 107 Stat. 1946; 42 U.S.C. 2121
                            note)'' and inserting ``section 4201''; and
                                (ii) in subsection (b)(2), by inserting
                            ``of the National Defense Authorization Act for
                            Fiscal Year 1995 (Public Law 103-337)'' after
                            ``section 3101(a)(1)''.
                (10) Fellowship program for development of skills critical
            to nuclear weapons complex.--Section 3140 of the National
            Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
            106; 110 Stat 621), as amended by section 3162 of the National
            Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
            65; 113 Stat. 943), is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4623; and
                        (C) inserted after section 4622, as added by
                    paragraph (9).
                (11) Subtitle heading on worker safety.--Title XLVI of
            division D of the Bob Stump National Defense Authorization Act
            for Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                         ``Subtitle C--Worker Safety''.

                (12) Worker protection at nuclear weapons facilities.--
            Section 3131 of the National Defense Authorization Act for
            Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1571)
            is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4641;
                        (C) inserted after the heading for subtitle C of
                    such title, as added by paragraph (11); and
                        (D) amended in subsection (e) by inserting ``of the
                    National Defense Authorization Act for Fiscal Years
                    1992 and 1993 (Public Law 102-190)'' after ``section
                    3101(9)(A)''.
                (13) Safety oversight and enforcement at defense nuclear
            facilities.--Section 3163 of the National Defense Authorization
            Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3097)
            is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4642;
                        (C) inserted after section 4641, as added by
                    paragraph (12); and
                        (D) amended in subsection (b) by striking ``90 days
                    after the date of the enactment of this Act,'' and
                    inserting ``January 5, 1995,''.
                (14) Program to monitor workers at defense nuclear
            facilities exposed to hazardous or radioactive substances.--
            Section 3162 of the National Defense Authorization Act for
            Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2646) is--
                        (A) transferred to title XLVI of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4643;
                        (C) inserted after section 4642, as added by
                    paragraph (13); and
                        (D) amended--
                                (i) in subsection (b)(6), by striking ``1
                            year after the date of the enactment of this
                            Act'' and inserting ``October 23, 1993'';
                                (ii) in subsection (c), by striking ``180
                            days after the date of the enactment of this
                            Act,'' and inserting ``April 23, 1993,''; and
                                (iii) by adding at the end the following
                            new subsection:
        ``(d) Definitions.--In this section:
                ``(1) The term `Department of Energy defense nuclear
            facility' has the meaning given that term in section 4604(g).
                ``(2) The term `Department of Energy employee' means any
            employee of the Department of Energy employed at a Department
            of Energy defense nuclear facility, including any employee of a
            contractor of subcontractor of the Department of Energy
            employed at such a facility.''.
        (j) Budget and Financial Management Matters.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

             ``TITLE XLVII--BUDGET AND FINANCIAL MANAGEMENT MATTERS

     ``Subtitle A--Recurring National Security Authorization Provisions''.

                (2) Recurring national security authorization provisions.--
            Sections 3620 through 3631 of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116
            Stat. 2756) are--
                        (A) transferred to title XLVII of division D of
                    such Act, as added by paragraph (1);
                        (B) redesignated as sections 4701 through 4712,
                    respectively;
                        (C) inserted after the heading for subtitle A of
                    such title, as so added; and
                        (D) amended--
                                (i) in section 4702, as so redesignated, by
                            striking ``sections 3629 and 3630'' and
                            inserting ``sections 4710 and 4711'';
                                (ii) in section 4706(a)(3)(B), as so
                            redesignated, by striking ``section 3626'' and
                            inserting ``section 4707'';
                                (iii) in section 4707(c), as so
                            redesignated, by striking ``section
                            3625(b)(2)'' and inserting ``section
                            4706(b)(2)'';
                                (iv) in section 4710(c), as so
                            redesignated, by striking ``section 3621'' and
                            inserting ``section 4702'';
                                (v) in section 4711(c), as so redesignated,
                            by striking ``section 3621'' and inserting
                            ``section 4702''; and
                                (vi) in section 4712, as so redesignated,
                            by striking ``section 3621'' and inserting
                            ``section 4702''.
                (3) Subtitle heading on penalties.--Title XLVII of division
            D of the Bob Stump National Defense Authorization Act for
            Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                           ``Subtitle B--Penalties''.

                (4) Restriction on use of funds to pay penalties under
            environmental laws.--Section 3132 of the National Defense
            Authorization Act for Fiscal Year 1987 (Public Law 99-661; 100
            Stat. 4063) is--
                        (A) transferred to title XLVII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4721;
                        (C) inserted after the heading for subtitle B of
                    such title, as added by paragraph (3); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (5) Restriction on use of funds to pay penalties under
            clean air act.--Section 211 of the Department of Energy
            National Security and Military Applications of Nuclear Energy
            Authorization Act of 1981 (Public Law 96-540; 94 Stat. 3203)
            is--
                        (A) transferred to title XLVII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4721, as added by
                    paragraph (4); and
                        (C) amended--
                                (i) by striking the section heading and
                            inserting the following new section heading:

    ``SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER CLEAN
                  AIR ACT.'';

                                (ii) by striking ``Sec. 211.''; and
                                (iii) by striking ``this or any other Act''
                            and inserting ``the Department of Energy
                            National Security and Military Applications of
                            Nuclear Energy Authorization Act of 1981
                            (Public Law 96-540) or any other Act''.
                (6) Subtitle heading on other matters.--Title XLVII of
            division D of the Bob Stump National Defense Authorization Act
            for Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                         ``Subtitle C--Other Matters''.

                (7) Single request for authorization of appropriations for
            common defense and security programs.--Section 208 of the
            Department of Energy National Security and Military
            Applications of Nuclear Energy Authorization Act of 1979
            (Public Law 95-509; 92 Stat. 1779) is--
                        (A) transferred to title XLVII of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after the heading for subtitle C of
                    such title, as added by paragraph (6); and
                        (C) amended--
                                (i) by striking the section heading and
                            inserting the following new section heading:

    ``SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF APPROPRIATIONS FOR
                  COMMON DEFENSE AND SECURITY PROGRAMS.'';

                            and
                                (ii) by striking ``Sec. 208.''.
        (k) Administrative Matters.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

                     ``TITLE XLVIII--ADMINISTRATIVE MATTERS

                           ``Subtitle A--Contracts''.

                (2) Costs not allowed under certain contracts.--Section
            1534 of the Department of Defense Authorization Act, 1986
            (Public Law 99-145; 99 Stat. 774), as amended by section 3131
            of the National Defense Authorization Act for Fiscal Years 1988
            and 1989 (Public Law 100-180; 101 Stat. 1238), is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4801;
                        (C) inserted after the heading for subtitle A of
                    such title, as so added; and
                        (D) amended--
                                (i) in the section heading, by adding a
                            period at the end; and
                                (ii) in subsection (b)(1), by striking
                            ``the date of the enactment of this Act,'' and
                            inserting ``November 8, 1985,''.
                (3) Prohibition on bonuses to contractors operating defense
            nuclear facilities.--Section 3151 of the National Defense
            Authorization Act for Fiscal Years 1990 and 1991 (Public Law
            101-189; 103 Stat. 1682) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4802;
                        (C) inserted after section 4801, as added by
                    paragraph (2); and
                        (D) amended--
                                (i) in the section heading, by adding a
                            period at the end;
                                (ii) in subsection (a), by striking ``the
                            date of the enactment of this Act'' and
                            inserting ``November 29, 1989'';
                                (iii) in subsection (b), by striking ``6
                            months after the date of the enactment of this
                            Act,'' and inserting ``May 29, 1990,''; and
                                (iv) in subsection (d), by striking ``90
                            days after the date of the enactment of this
                            Act'' and inserting ``March 1, 1990''.
                (4) Contractor liability for injury or loss of property
            arising from atomic weapons testing programs.--Section 3141 of
            the National Defense Authorization Act for Fiscal Year 1991
            (Public Law 101-510; 104 Stat. 1837) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4803;
                        (C) inserted after section 4802, as added by
                    paragraph (3); and
                        (D) amended--
                                (i) in the section heading, by adding a
                            period at the end; and
                                (ii) in subsection (d), by striking ``the
                            date of the enactment of this Act'' each place
                            it appears and inserting ``November 5, 1990,''.
                (5) Subtitle heading on research and development.--Title
            XLVIII of division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            subsection, is further amended by adding at the end the
            following new subtitle heading:

                   ``Subtitle B--Research and Development''.

                (6) Laboratory-directed research and development.--Section
            3132 of the National Defense Authorization Act for Fiscal Year
            1991 (Public Law 101-510; 104 Stat. 1832) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4811;
                        (C) inserted after the heading for subtitle B of
                    such title, as added by paragraph (5); and
                        (D) amended in the section heading by adding a
                    period at the end.
                (7) Limitations on use of funds for laboratory directed
            research and development.--
                        (A) Limitations on use of funds for laboratory
                    directed research and development.--Section 3137 of the
                    National Defense Authorization Act for Fiscal Year 1998
                    (Public Law 105-85; 111 Stat. 2038) is--
                                (i) transferred to title XLVIII of division
                            D of the Bob Stump National Defense
                            Authorization Act for Fiscal Year 2003, as
                            amended by this subsection;
                                (ii) redesignated as section 4812;
                                (iii) inserted after section 4811, as added
                            by paragraph (6); and
                                (iv) amended--
                                        (I) in subsection (b), by striking
                                    ``section 3136(b) of the National
                                    Defense Authorization Act for Fiscal
                                    Year 1997 (Public Law 104-201; 110
                                    Stat. 2831; 42 U.S.C. 7257b)'' and
                                    inserting ``section 4812A(b)'';
                                        (II) in subsection (d)--
                                                (aa) by striking ``section
                                            3136(b)(1)'' and inserting
                                            ``section 4812A(b)(1)''; and
                                                (bb) by striking ``section
                                            3132(c) of the National Defense
                                            Authorization Act for Fiscal
                                            Year 1991 (42 U.S.C.
                                            7257a(c))'' and inserting
                                            ``section 4811(c)''; and
                                        (III) in subsection (e), by
                                    striking ``section 3132(d) of the
                                    National Defense Authorization Act for
                                    Fiscal Year 1991 (42 U.S.C. 7257a(d))''
                                    and inserting ``section 4811(d)''.
                        (B) Limitation on use of funds for certain research
                    and development purposes.--Section 3136 of the National
                    Defense Authorization Act for Fiscal Year 1997 (Public
                    Law 104-201; 110 Stat. 2830), as amended by section
                    3137 of the National Defense Authorization Act for
                    Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2038),
                    is--
                                (i) transferred to title XLVIII of division
                            D of the Bob Stump National Defense
                            Authorization Act for Fiscal Year 2003, as
                            amended by this subsection;
                                (ii) redesignated as section 4812A;
                                (iii) inserted after section 4812, as added
                            by paragraph (7); and
                                (iv) amended in subsection (a) by inserting
                            ``of the National Defense Authorization Act for
                            Fiscal Year 1997 (Public Law 104-201)'' after
                            ``section 3101''.
                (8) Critical technology partnerships.--Section 3136 of the
            National Defense Authorization Act for Fiscal Years 1992 and
            1993 (Public Law 102-190; 105 Stat. 1577), as amended by
            section 203(b)(3) of Public Law 103-35 (107 Stat. 102), is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4813; and
                        (C) inserted after section 4812A, as added by
                    paragraph (7)(B).
                (9) University-based research collaboration program.--
            Section 3155 of the National Defense Authorization Act for
            Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2044) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4814;
                        (C) inserted after section 4813, as added by
                    paragraph (8); and
                        (D) amended in subsection (c) by striking ``this
                    title'' and inserting ``title XXXI of the National
                    Defense Authorization Act for Fiscal Year 1998 (Public
                    Law 105-85)''.
                (10) Subtitle heading on facilities management.--Title
            XLVIII of division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            subsection, is further amended by adding at the end the
            following new subtitle heading:

                     ``Subtitle C--Facilities Management''.

                (11) Transfers of real property at certain facilities.--
            Section 3158 of the National Defense Authorization Act for
            Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2046) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4831; and
                        (C) inserted after the heading for subtitle C of
                    such title, as added by paragraph (10).
                (12) Engineering and manufacturing research, development,
            and demonstration at certain nuclear weapons production
            plants.--Section 3156 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-467) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4832; and
                        (C) inserted after section 4831, as added by
                    paragraph (11).
                (13) Pilot program on use of proceeds of disposal or
            utilization of certain assets.--Section 3138 of the National
            Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
            85; 111 Stat. 2039) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) redesignated as section 4833;
                        (C) inserted after section 4832, as added by
                    paragraph (12); and
                        (D) amended in subsection (d) by striking
                    ``sections 202 and 203(j) of the Federal Property and
                    Administrative Services Act of 1949 (40 U.S.C. 483 and
                    484(j))'' and inserting ``subchapter II of chapter 5
                    and section 549 of title 40, United States Code,''.
                (14) Subtitle heading on other matters.--Title XLVIII of
            division D of the Bob Stump National Defense Authorization Act
            for Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                         ``Subtitle D--Other Matters''.

                (15) Semiannual reports on local impact assistance.--
            Subsection (f) of section 3153 of the National Defense
            Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111
            Stat. 2044) is--
                        (A) transferred to title XLVIII of division D of
                    the Bob Stump National Defense Authorization Act for
                    Fiscal Year 2003, as amended by this subsection;
                        (B) inserted after the heading for subtitle D of
                    such title, as added by paragraph (14); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT ASSISTANCE.'';

                                (ii) by striking ``(f) Semiannual Reports
                            to Congress of Local Impact Assistance.--'';
                            and
                                (iii) by striking ``section 3161(c)(6) of
                            the National Defense Authorization Act of 1993
                            (42 U.S.C. 7274h(c)(6))'' and inserting
                            ``section 4604(c)(6)''.
        (l) Matters Relating to Particular Facilities.--
                (1) Headings.--Division D of the Bob Stump National Defense
            Authorization Act for Fiscal Year 2003, as amended by this
            section, is further amended by adding at the end the following
            new headings:

            ``TITLE XLIX--MATTERS RELATING TO PARTICULAR FACILITIES

                ``Subtitle A--Hanford Reservation, Washington''.

                (2) Safety measures for waste tanks.--Section 3137 of the
            National Defense Authorization Act for Fiscal Year 1991 (Public
            Law 101-510; 104 Stat. 1833) is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as added by paragraph (1);
                        (B) redesignated as section 4901;
                        (C) inserted after the heading for subtitle A of
                    such title, as so added; and
                        (D) amended--
                                (i) in the section heading, by adding a
                            period at the end;
                                (ii) in subsection (a), by striking
                            ``Within 90 days after the date of the
                            enactment of this Act,'' and inserting ``Not
                            later than February 3, 1991,'';
                                (iii) in subsection (b), by striking
                            ``Within 120 days after the date of the
                            enactment of this Act,'' and inserting ``Not
                            later than March 5, 1991,'';
                                (iv) in subsection (c), by striking
                            ``Beginning 120 days after the date of the
                            enactment of this Act,'' and inserting
                            ``Beginning March 5, 1991,''; and
                                (v) in subsection (d), by striking ``Within
                            six months after the date of the enactment of
                            this Act,'' and inserting ``Not later than May
                            5, 1991,''.
                (3) Programs for persons who may have been exposed to
            radiation released from hanford reservation.--Section 3138 of
            the National Defense Authorization Act for Fiscal Year 1991
            (Public Law 101-510; 104 Stat. 1834), as amended by section
            3138 of the National Defense Authorization Act for Fiscal Year
            1995 (Public Law 103-337; 108 Stat. 3087), is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4902;
                        (C) inserted after section 4901, as added by
                    paragraph (2); and
                        (D) amended--
                                (i) in the section heading, by adding a
                            period at the end;
                                (ii) in subsection (a), by striking ``this
                            title'' and inserting ``title XXXI of the
                            National Defense Authorization Act for Fiscal
                            Year 1991 (Public Law 101-510)''; and
                                (iii) in subsection (c)--
                                        (I) in paragraph (2), by striking
                                    ``six months after the date of the
                                    enactment of this Act,'' and inserting
                                    ``May 5, 1991,''; and
                                        (II) in paragraph (3), by striking
                                    ``18 months after the date of the
                                    enactment of this Act,'' and inserting
                                    ``May 5, 1992,''.
                (4) Waste tank cleanup program.--Section 3139 of the Strom
            Thurmond National Defense Authorization Act for Fiscal Year
            1999 (Public Law 105-261; 112 Stat. 2250), as amended by
            section 3141 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-463) and section 3135 of
            the National Defense Authorization Act for Fiscal Year 2002
            (Public Law 107-107; 115 Stat. 1368), is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4903;
                        (C) inserted after section 4902, as added by
                    paragraph (3); and
                        (D) amended in subsection (d) by striking ``30 days
                    after the date of the enactment of the Floyd D. Spence
                    National Defense Authorization Act for Fiscal Year
                    2001,'' and inserting ``November 29, 2000,''.
                (5) River protection project.--Subsection (a) of section
            3141 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-462) is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4903, as added by
                    paragraph (4); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4904. RIVER PROTECTION PROJECT.'';

                            and
                                (ii) by striking ``(a) Redesignation of
                            Project.--''.
                (6) Funding for termination costs of river protection
            project.--Section 3131 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-454) is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as section 4905;
                        (C) inserted after section 4904, as added by
                    paragraph (5); and
                        (D) amended--
                                (i) by striking ``section 3141'' and
                            inserting ``section 4904''; and
                                (ii) by striking ``the date of the
                            enactment of this Act'' and inserting ``October
                            30, 2000''.
                (7) Subtitle heading on savannah river site, south
            carolina.--Title XLIX of division D of the Bob Stump National
            Defense Authorization Act for Fiscal Year 2003, as amended by
            this subsection, is further amended by adding at the end the
            following new subtitle heading:

              ``Subtitle B--Savannah River Site, South Carolina''.

                (8) Accelerated schedule for isolating high-level nuclear
            waste at defense waste processing facility.--Section 3141 of
            the National Defense Authorization Act for Fiscal Year 1997
            (Public Law 104-201; 110 Stat. 2834) is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) redesignated as 4911; and
                        (C) inserted after the heading for subtitle B of
                    such title, as added by paragraph (7).
                (9) Multi-year plan for clean-up.--Subsection (e) of
            section 3142 of the National Defense Authorization Act for
            Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2834) is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4911, as added by
                    paragraph (8); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4912. MULTI-YEAR PLAN FOR CLEAN-UP.'';

                            and
                                (ii) by striking ``(e) Multi-Year Plan for
                            Clean-Up at Savannah River Site.--The
                            Secretary'' and inserting ``The Secretary of
                            Energy''.
                (10) Continuation of processing, treatment, and disposal of
            legacy nuclear materials.--
                        (A) Fiscal year 2001.--Subsection (a) of section
                    3137 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-460) is--
                                (i) transferred to title XLIX of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) inserted after section 4912, as added
                            by paragraph (9); and
                                (iii) amended--
                                        (I) by inserting before the text
                                    the following new section heading:

    ``SEC. 4913. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF
                  LEGACY NUCLEAR MATERIALS.'';

                                    and
                                        (II) by striking ``(a)
                                    Continuation.--''.
                        (B) Fiscal year 2000.--Section 3132 of the National
                    Defense Authorization Act for Fiscal Year 2000 (Public
                    Law 106-65; 113 Stat. 924) is--
                                (i) transferred to title XLIX of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) redesignated as section 4913A; and
                                (iii) inserted after section 4913, as added
                            by subparagraph (A).
                        (C) Fiscal year 1999.--Section 3135 of the Strom
                    Thurmond National Defense Authorization Act for Fiscal
                    Year 1999 (Public Law 105-261; 112 Stat. 2248) is--
                                (i) transferred to title XLIX of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) redesignated as section 4913B; and
                                (iii) inserted after section 4913A, as
                            added by subparagraph (B).
                        (D) Fiscal year 1998.--Subsection (b) of section
                    3136 of the National Defense Authorization Act for
                    Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2038)
                    is--
                                (i) transferred to title XLIX of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) inserted after section 4913B, as added
                            by subparagraph (C); and
                                (iii) amended--
                                        (I) by inserting before the text
                                    the following new section heading:

    ``SEC. 4913C. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF
                  LEGACY NUCLEAR MATERIALS.'';

                                    and
                                        (II) by striking ``(b) Requirement
                                    for Continuing Operations at Savannah
                                    River Site.--''.
                        (E) Fiscal year 1997.--Subsection (f) of section
                    3142 of the National Defense Authorization Act for
                    Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2836)
                    is--
                                (i) transferred to title XLIX of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) inserted after section 4913C, as added
                            by subparagraph (D); and
                                (iii) amended--
                                        (I) by inserting before the text
                                    the following new section heading:

    ``SEC. 4913D. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSAL OF
                  LEGACY NUCLEAR MATERIALS.'';

                                        (II) by striking ``(f) Requirement
                                    for Continuing Operations at Savannah
                                    River Site.--The Secretary'' and
                                    inserting ``The Secretary of Energy'';
                                    and
                                        (III) by striking ``subsection
                                    (e)'' and inserting ``section 4912''.
                (11) Limitation on use of funds for decommissioning f-
            canyon facility.--Subsection (b) of section 3137 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-460) is--
                        (A) transferred to title XLIX of division D of the
                    Bob Stump National Defense Authorization Act for Fiscal
                    Year 2003, as amended by this subsection;
                        (B) inserted after section 4913D, as added by
                    paragraph (10)(E); and
                        (C) amended--
                                (i) by inserting before the text the
                            following new section heading:

    ``SEC. 4914. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING F-CANYON
                  FACILITY.'';

                                (ii) by striking ``(b) Limitation on Use of
                            Funds for Decommissioning F-Canyon Facility.--
                            '';
                                (iii) by striking ``this or any other Act''
                            and inserting ``the Floyd D. Spence National
                            Defense Authorization Act for Fiscal Year 2001
                            (as enacted into law by Public Law 106-398) or
                            any other Act''; and
                                (iv) by striking ``the Secretary'' in the
                            matter preceding paragraph (1) and inserting
                            ``the Secretary of Energy''.
                (12) Disposition of plutonium.--
                        (A) Disposition of weapons usable plutonium.--
                    Section 3182 of the Bob Stump National Defense
                    Authorization Act for Fiscal Year 2003 (Public Law 107-
                    314; 116 Stat. 2747) is--
                                (i) transferred to title XLIX of division D
                            of such Act, as amended by this subsection;
                                (ii) redesignated as section 4915; and
                                (iii) inserted after section 4914, as added
                            by paragraph (11).
                        (B) Disposition of surplus defense plutonium.--
                    Section 3155 of the National Defense Authorization Act
                    for Fiscal Year 2002 (Public Law 107-107; 115 Stat.
                    1378) is--
                                (i) transferred to title XLIX of division D
                            of the Bob Stump National Defense Authorization
                            Act for Fiscal Year 2003, as amended by this
                            subsection;
                                (ii) redesignated as section 4915A; and
                                (iii) inserted after section 4915, as added
                            by subparagraph (A).
                (13) Subtitle heading on other facilities.--Title XLIX of
            division D of the Bob Stump National Defense Authorization Act
            for Fiscal Year 2003, as amended by this subsection, is further
            amended by adding at the end the following new subtitle
            heading:

                       ``Subtitle C--Other Facilities''.

                (14) Payment of costs of operation and maintenance of
            infrastructure at nevada test site.--Section 3144 of the
            National Defense Authorization Act for Fiscal Year 1997 (Public
            Law 104-201; 110 Stat. 2838) is--
                        (A) transferred to title XLIX of division D of such
                    Act, as amended by this subsection;
                        (B) redesignated as section 4921; and
                        (C) inserted after the heading for subtitle C of
                    such title, as added by paragraph (13).
        (m) Conforming Amendments.--(1) Title XXXVI of the Bob Stump
    National Defense Authorization Act for Fiscal Year 2003 (Public Law
    107-314; 116 Stat. 1756) is repealed.
        (2) Subtitle E of title XXXI of the National Defense Authorization
    Act for Fiscal Year 1993 (Public Law 102-484; 42 U.S.C. 7274h et seq.)
    is repealed.
        (3) Section 8905a(d)(5)(A) of title 5, United States Code, is
    amended by striking ``section 3143 of the National Defense
    Authorization Act for Fiscal Year 1997 (42 U.S.C. 7274n)'' and
    inserting ``section 4421 of the Atomic Energy Defense Act''.

              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    SEC. 3201. AUTHORIZATION.

        There are authorized to be appropriated for fiscal year 2004,
    $19,559,000 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 2004, the
    National Defense Stockpile Manager may obligate up to $69,701,000 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.

    SEC. 3302. REVISIONS TO OBJECTIVES FOR RECEIPTS FOR FISCAL YEAR 2000
                  DISPOSALS.

        (a) In General.--Section 3402(b) of the National Defense
    Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat.
    972; 50 U.S.C. 98d note) is amended--
                (1) by striking ``and'' at the end of paragraph (2); and
                (2) by striking paragraph (3) and inserting the following
            new paragraphs:
                ``(3) $310,000,000 before the end of fiscal year 2008; and
                ``(4) $320,000,000 before the end of fiscal year 2009.''.
        (b) Effective Date.--The amendments made by subsection (a) shall
    take effect on October 1, 2003, or the date of the enactment of this
    Act, whichever is later.

                     TITLE XXXIV--NAVAL PETROLEUM RESERVES

    SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

        (a) Amount.--There are hereby authorized to be appropriated to the
    Secretary of Energy $16,500,000 for fiscal year 2004 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

                         Subtitle A--General Provisions

    SEC. 3501. SHORT TITLE.

        This title may be cited as the ``Maritime Security Act of 2003''.

    SEC. 3502. DEFINITIONS.

        In this subtitle:
                (1) Bulk cargo.--The term ``bulk cargo'' means cargo that
            is loaded and carried in bulk without mark or count.
                (2) Contractor.--The term ``contractor'' means an owner or
            operator of a vessel that enters into an operating agreement
            for the vessel with the Secretary under section 3512.
                (3) Fleet.--The term ``Fleet'' means the Maritime Security
            Fleet established under section 3511(a).
                (4) Foreign commerce.--The term ``foreign commerce''--
                        (A) subject to subparagraph (B), means commerce or
                    trade between the United States, its territories or
                    possessions, or the District of Columbia, and a foreign
                    country; and
                        (B) includes, in the case of liquid and dry bulk
                    cargo carrying services, trading between foreign ports
                    in accordance with normal commercial bulk shipping
                    practices in such manner as will permit United States-
                    documented vessels freely to compete with foreign-flag
                    bulk carrying vessels in their operation or in
                    competing for charters, subject to rules and
                    regulations promulgated by the Secretary of
                    Transportation pursuant to subtitle B or C.
                (5) Former participating fleet vessel.--The term ``former
            participating fleet vessel'' means--
                        (A) any vessel that--
                                (i) on October 1, 2005--
                                        (I) will meet the requirements of
                                    paragraph (1), (2), (3), or (4) of
                                    section 3511(c); and
                                        (II) will be less than 25 years of
                                    age, or less than 30 years of age in
                                    the case of a LASH vessel; and
                                (ii) on December 31, 2003, is covered by an
                            operating agreement under subtitle B of title
                            VI of the Merchant Marine Act, 1936 (46 App.
                            U.S.C. 1187 et seq.); and
                        (B) any vessel that--
                                (i) is a replacement for a vessel described
                            in subparagraph (A);
                                (ii) is controlled by the person that
                            controls such replaced vessel;
                                (iii) is eligible to be included in the
                            Fleet under section 3511(b);
                                (iv) is approved by the Secretary and the
                            Secretary of Defense; and
                                (v) begins operation under an operating
                            agreement under subtitle B by not later than
                            the end of the 30-month period beginning on the
                            date the operating agreement is entered into by
                            the Secretary.
                (6) LASH vessel.--The term ``LASH vessel'' means a lighter
            aboard ship vessel.
                (7) Person.--The term ``person'' includes corporations,
            partnerships, and associations existing under or authorized by
            the laws of the United States, or any State, Territory,
            District, or possession thereof, or of any foreign country.
                (8) Product tank vessel.--The term ``product tank vessel''
            means a double hulled tank vessel capable of carrying
            simultaneously more than 2 separated grades of refined
            petroleum products.
                (9) Secretary.--The term ``Secretary'' means the Secretary
            of Transportation.
                (10) United states.--The term ``United States'' includes
            the District of Columbia, the Commonwealth of Puerto Rico, the
            Northern Mariana Islands, Guam, American Samoa, the Virgin
            Islands.
                (11) United states-documented vessel.--The term ``United
            States-documented vessel'' means a vessel documented under
            chapter 121 of title 46, United States Code.

                      Subtitle B--Maritime Security Fleet

    SEC. 3511. ESTABLISHMENT OF MARITIME SECURITY FLEET.

        (a) In General.--The Secretary of Transportation shall establish a
    fleet of active, militarily useful, privately owned vessels to meet
    national defense and other security requirements and maintain a United
    States presence in international commercial shipping. The Fleet shall
    consist of privately owned, United States-documented vessels for which
    there are in effect operating agreements under this subtitle, and shall
    be known as the Maritime Security Fleet.
        (b) Vessel Eligibility.--A vessel is eligible to be included in the
    Fleet if--
                (1) the vessel meets the requirements of paragraph (1),
            (2), (3), or (4) of subsection (c);
                (2) the vessel is operated (or in the case of a vessel to
            be constructed, will be operated) in providing transportation
            in foreign commerce;
                (3) the vessel is self-propelled and is--
                        (A) a roll-on/roll-off vessel with a carrying
                    capacity of at least 80,000 square feet or 500 twenty-
                    foot equivalent units and that is 15 years of age or
                    less on the date the vessel is included in the Fleet;
                        (B) a tank vessel that is constructed in the United
                    States after the date of the enactment of this
                    subtitle;
                        (C) a tank vessel that is 10 years of age or less
                    on the date the vessel is included in the Fleet;
                        (D) a LASH vessel that is 25 years of age or less
                    on the date the vessel is included in the Fleet; or
                        (E) any other type of vessel that is 15 years of
                    age or less on the date the vessel is included in the
                    Fleet;
            except that the Secretary of Transportation shall waive the
            application of an age restriction under this paragraph if the
            waiver is requested by the Secretary of Defense;
                (4) the vessel is determined by the Secretary of Defense to
            be suitable for use by the United States for national defense
            or military purposes in time of war or national emergency; and
                (5) the vessel--
                        (A) is a United States-documented vessel; or
                        (B) is not a United States-documented vessel, but--
                                (i) the owner of the vessel has
                            demonstrated an intent to have the vessel
                            documented under chapter 121 of title 46,
                            United States Code, if it is included in the
                            Fleet; and
                                (ii) at the time an operating agreement for
                            the vessel is entered into under this subtitle,
                            the vessel is eligible for documentation under
                            chapter 121 of title 46, United States Code.
        (c) Requirements Regarding Citizenship of Owners and Charterers.--
                (1) Vessel owned and operated by section 2 citizens.--A
            vessel meets the requirements of this paragraph if, during the
            period of an operating agreement under this subtitle that
            applies to the vessel, the vessel will be owned and operated by
            persons one or more persons that are citizens of the United
            States under section 2 of the Shipping Act, 1916 (46 App.
            U.S.C. 802).
                (2) Vessel owned by section 2 citizen and chartered to
            documentation citizen.--A vessel meets the requirements of this
            paragraph if--
                        (A) during the period of an operating agreement
                    under this subtitle that applies to the vessel, the
                    vessel will be--
                                (i) owned by a person that is a citizen of
                            the United States under section 2 of the
                            Shipping Act, 1916 (46 App. U.S.C. 802); and
                                (ii) demise chartered to a person--
                                        (I) that is eligible to document
                                    the vessel under chapter 121 of title
                                    46, United States Code;
                                        (II) the chairman of the board of
                                    directors, chief executive officer, and
                                    a majority of the members of the board
                                    of directors of which are citizens of
                                    the United States under section 2 of
                                    the Shipping Act, 1916 (46 App. U.S.C.
                                    802), and are appointed and subjected
                                    to removal only upon approval by the
                                    Secretary; and
                                        (III) that certifies that there are
                                    no treaties, statutes, regulations, or
                                    other laws that would prohibit the
                                    contractor for the vessel from
                                    performing its obligations under an
                                    operating agreement under this
                                    subtitle; and
                        (B) in the case of a vessel that will be chartered
                    to a person that is owned or controlled by another
                    person that is not a citizen of the United States under
                    section 2 of the Shipping Act, 1916 (46 App. U.S.C.
                    802), the other person enters into an agreement with
                    the Secretary not to influence the operation of the
                    vessel in a manner that will adversely affect the
                    interests of the United States.
                (3) Vessel owned and operated by defense contractor.--A
            vessel meets the requirements of this paragraph if, during the
            period of an operating agreement under this subtitle that
            applies to the vessel, the vessel will be owned and operated by
            one or more persons that--
                        (A) are eligible to document a vessel under chapter
                    121 of title 46, United States Code;
                        (B) operates or manages other United States-
                    documented vessels for the Secretary of Defense, or
                    charters other vessels to the Secretary of Defense;
                        (C) has entered into a Special Security Agreement
                    for purposes of this paragraph with the Secretary of
                    Defense;
                        (D) makes the certification described in paragraph
                    (2)(A)(ii)(III); and
                        (E) in the case of a vessel described in paragraph
                    (2)(B), enters into an agreement referred to in that
                    paragraph.
                (4) Vessel owned by documentation citizen and chartered to
            section 2 citizen.--A vessel meets the requirements of this
            paragraph if, during the period of an operating agreement under
            this subtitle that applies to the vessel, the vessel will be--
                        (A) owned by a person that is eligible to document
                    a vessel under chapter 121 of title 46, United States
                    Code; and
                        (B) demise chartered to a person that is a citizen
                    of the United States under section 2 of the Shipping
                    Act, 1916 (46 App. U.S.C. 802).
        (d) Request by Secretary of Defense.--The Secretary of Defense
    shall request the Secretary of Homeland Security to issue any waiver
    under the first section of Public Law 81-891 (64 Stat. 1120; 46 App.
    U.S.C. note prec. 3) that is necessary for purposes of this subtitle.

    SEC. 3512. AWARD OF OPERATING AGREEMENTS.

        (a) In General.--The Secretary shall require, as a condition of
    including any vessel in the Fleet, that the person that is the owner or
    charterer of the vessel for purposes of section 3511(c) enter into an
    operating agreement with the Secretary under this section.
        (b) Procedure for Applications.--
                (1) Acceptance of applications.--Beginning no later than 30
            days after the effective date of this subtitle, the Secretary
            shall accept applications for enrollment of vessels in the
            Fleet.
                (2) Action on applications.--Within 90 days after receipt
            of an application for enrollment of a vessel in the Fleet, the
            Secretary shall enter into an operating agreement with the
            applicant or provide in writing the reason for denial of that
            application.
        (c) Priority for Awarding Agreements.--
                (1) In general.--Subject to the availability of
            appropriations, the Secretary shall enter into operating
            agreements according to the following priority:
                        (A) New tank vessels.--First, for any tank vessel
                    that--
                                (i) is constructed in the United States
                            after the effective date of this subtitle;
                                (ii) is eligible to be included in the
                            Fleet under section 3511(b); and
                                (iii) during the period of an operating
                            agreement under this subtitle that applies to
                            the vessel, will be owned and operated by one
                            or more persons that are citizens of the United
                            States under section 2 of the Shipping Act,
                            1916 (46 App. U.S.C. 802),
                    except that the Secretary shall not enter into
                    operating agreements under this subparagraph for more
                    than 5 such vessels.
                        (B) Former participating vessels.--Second, to the
                    extent amounts are available after applying
                    subparagraphs (A), for any former participating fleet
                    vessel, except that the Secretary shall not enter into
                    operating agreements under this subparagraph for more
                    than 47 vessels.
                        (C) Certain vessels operated by section 2
                    citizens.--Third, to the extent amounts are available
                    after applying subparagraphs (A) and (B), for any other
                    vessel that is eligible to be included in the Fleet
                    under section 3511(b), and that, during the period of
                    an operating agreement under this subtitle that applies
                    to the vessel, will be--
                                (i) owned and operated by one or more
                            persons that are citizens of the United States
                            under section 2 of the Shipping Act, 1916 (46
                            App. U.S.C. 802); or
                                (ii) owned by a person that is eligible to
                            document the vessel under chapter 121 of title
                            46, United States Code, and operated by a
                            person that is a citizen of the United States
                            under section 2 of the Shipping Act, 1916 (46
                            App. U.S.C. 802).
                        (D) Other eligible vessels.--Fourth, to the extent
                    amounts are available after applying subparagraphs (A),
                    (B), and (C), for any other vessel that is eligible to
                    be included in the Fleet under section 3511(b).
                (2) Reduction in number of slots for former participating
            fleet vessels.--The number in paragraph (1)(B) shall be reduced
            by 1--
                        (A) for each former participating fleet vessel for
                    which an application for enrollment in the Fleet is not
                    received by the Secretary within the 90-day period
                    beginning on the effective date of this subtitle; and
                        (B) for each former participating fleet vessel for
                    which an application for enrollment in the Fleet
                    received by the Secretary is not approved by the
                    Secretary of Defense within the 90-day period beginning
                    on the date of such receipt.
                (3) Discretion within priority.--The Secretary--
                        (A) subject to subparagraph (B), may award
                    operating agreements within each priority under
                    paragraph (1) as the Secretary considers appropriate;
                    and
                        (B) shall award operating agreement within a
                    priority--
                                (i) in accordance with operational
                            requirements specified by the Secretary of
                            Defense; and
                                (ii) subject to the approval of the
                            Secretary of Defense.
                (4) Treatment of tank vessel to be replaced.--(A) For
            purposes of the application of paragraph (1)(A) with respect to
            the award of an operating agreement, the Secretary may treat an
            existing tank vessel that is eligible to be included in the
            Fleet under section 3511(b) as a vessel that is constructed in
            the United States after the effective date of this subtitle,
            if--
                        (i) a binding contract for construction in the
                    United States of a replacement vessel to be operated
                    under the operating agreement is executed by not later
                    than 9 months after the first date amounts are
                    available to carry out this subtitle; and
                        (ii) the replacement vessel is eligible to be
                    included in the Fleet under section 3511(b).
                (B) No payment under this subtitle may be made for an
            existing tank vessel for which an operating agreement is
            awarded under this paragraph after the earlier of--
                        (i) 4 years after the first date amounts are
                    available to carry out this subtitle; or
                        (ii) the date of delivery of the replacement tank
                    vessel.
        (d) Limitation.--The Secretary may not award operating agreements
    under this subtitle that require payments under section 3515 for a
    fiscal year for more than 60 vessels.

    SEC. 3513. EFFECTIVENESS OF OPERATING AGREEMENTS.

        (a) Effectiveness, Generally.--The Secretary may enter into an
    operating agreement under this subtitle for fiscal year 2006. Except as
    provided in subsection (b), the agreement shall be effective only for 1
    fiscal year, but shall be renewable, subject to the availability of
    appropriations, for each subsequent fiscal year through the end of
    fiscal year 2015.
        (b) Vessels Under Charter to U.S.--Unless an earlier date is
    requested by the applicant, the effective date for an operating
    agreement with respect to a vessel that is, on the date of entry into
    an operating agreement, on charter to the United States Government,
    other than a charter pursuant to an Emergency Preparedness Agreement
    under section 3516, shall be the expiration or termination date of the
    Government charter covering the vessel, or any earlier date the vessel
    is withdrawn from that charter.
        (c) Termination.--
                (1) In general.--If the contractor with respect to an
            operating agreement fails to comply with the terms of the
            agreement--
                        (A) the Secretary shall terminate the operating
                    agreement; and
                        (B) any budget authority obligated by the agreement
                    shall be available to the Secretary to carry out this
                    subtitle.
                (2) Early termination.--An operating agreement under this
            subtitle shall terminate on a date specified by the contractor
            if the contractor notifies the Secretary, by not later than 60
            days before the effective date of the termination, that the
            contractor intends to terminate the agreement.
        (d) Nonrenewal for Lack of Funds.--
                (1) Notification of congress.--If, by the first day of a
            fiscal year, sufficient funds have not been appropriated under
            the authority provided by this subtitle for that fiscal year,
            then the Secretary shall notify the Congress that operating
            agreements authorized under this subtitle for which sufficient
            funds are not available will not be renewed for that fiscal
            year if sufficient funds are not appropriated by the 60th day
            of that fiscal year.
                (2) Release of vessels from obligations.--If funds are not
            appropriated under the authority provided by this subtitle for
            any fiscal year by the 60th day of that fiscal year, then each
            vessel covered by an operating agreement under this subtitle
            for which funds are not available--
                        (A) is thereby released from any further obligation
                    under the operating agreement;
                        (B) the owner or operator of the vessel may
                    transfer and register such vessel under a foreign
                    registry that is acceptable to the Secretary of
                    Transportation and the Secretary of Defense,
                    notwithstanding section 9 of the Shipping Act, 1916 (46
                    App. U.S.C. 808); and
                        (C) if section 902 of the Merchant Marine Act, 1936
                    (46 App. U.S.C. 1242) is applicable to such vessel
                    after registration of the vessel under such a registry,
                    then the vessel is available to be requisitioned by the
                    Secretary of Transportation pursuant to section 902 of
                    such Act.

    SEC. 3514. OBLIGATIONS AND RIGHTS UNDER OPERATING AGREEMENTS.

        (a) Operation of Vessel.--An operating agreement under this
    subtitle shall require that, during the period a vessel is operating
    under the agreement--
                (1) the vessel--
                        (A) shall be operated exclusively in the foreign
                    commerce or in mixed foreign commerce and domestic
                    trade allowed under a registry endorsement issued under
                    section 12105 of title 46, United States Code; and
                        (B) shall not otherwise be operated in the
                    coastwise trade; and
                (2) the vessel shall be documented under chapter 121 of
            title 46, United States Code.
        (b) Annual Payments by Secretary.--
                (1) In general.--An operating agreement under this subtitle
            shall require, subject to the availability of appropriations,
            that the Secretary make a payment each fiscal year to the
            contractor in accordance with section 3515.
                (2) Operating agreement is obligation of united states
            government.--An operating agreement under this subtitle
            constitutes a contractual obligation of the United States
            Government to pay the amounts provided for in the agreement to
            the extent of actual appropriations.
        (c) Documentation Requirement.--Each vessel covered by an operating
    agreement (including an agreement terminated under section 3513(c)(2))
    shall remain documented under chapter 121 of title 46, United States
    Code, until the date the operating agreement would terminate according
    to its terms.
        (d) National Security Requirements.--
                (1) In general.--A contractor with respect to an operating
            agreement (including an agreement terminated under section
            3513(c)(2)) shall continue to be bound by the provisions of
            section 3516 until the date the operating agreement would
            terminate according to its terms.
                (2) Emergency preparedness agreement.--All terms and
            conditions of an Emergency Preparedness Agreement entered into
            under section 3516 shall remain in effect until the date the
            operating agreement would terminate according to its terms,
            except that the terms of such Emergency Preparedness Agreement
            may be modified by the mutual consent of the contractor and the
            Secretary of Transportation and the Secretary of Defense.
        (e) Transfer of Operating Agreements.--A contractor under an
    operating agreement may transfer the agreement (including all rights
    and obligations under the agreement) to any person that is eligible to
    enter into that operating agreement under this subtitle, if the
    transfer is approved by the Secretary and the Secretary of Defense.

    SEC. 3515. PAYMENTS.

        (a) Annual payment.--
                (1) In general.--The Secretary, subject to the availability
            of appropriations and the other provisions of this section,
            shall pay to the contractor for an operating agreement, for
            each vessel that is covered by the operating agreement, an
            amount equal to--
                        (A) $2,600,000 for each of fiscal years 2006 and
                    2007, and
                        (B) such amount, not less than $2,600,000, for each
                    fiscal year thereafter for which the agreement is in
                    effect as the Secretary, with the concurrence of the
                    Secretary of Defense, considers to be necessary to meet
                    the operational requirements of the Secretary of
                    Defense.
                (2) Timing.--The amount shall be paid in equal monthly
            installments at the end of each month. The amount shall not be
            reduced except as provided by this section.
        (b) Certification Required for Payment.--As a condition of
    receiving payment under this section for a fiscal year for a vessel,
    the contractor for the vessel shall certify, in accordance with
    regulations issued by the Secretary, that the vessel has been and will
    be operated in accordance with section 3514(a)(1) for at least 320 days
    in the fiscal year. Days during which the vessel is drydocked,
    surveyed, inspected, or repaired shall be considered days of operation
    for purposes of this subsection.
        (c) Limitations.--The Secretary of Transportation shall not make
    any payment under this subtitle for a vessel with respect to any days
    for which the vessel is--
                (1) under a charter to the United States Government, other
            than a charter pursuant to an Emergency Preparedness Agreement
            under section 3516;
                (2) not operated or maintained in accordance with an
            operating agreement under this subtitle; or
                (3) more than--
                        (A) 25 years of age, except as provided in
                    subparagraph (B) or (C);
                        (B) 20 years of age, in the case of a tank vessel;
                    or
                        (C) 30 years of age, in the case of a LASH vessel.
        (d) Reductions in Payments.--With respect to payments under this
    subtitle for a vessel covered by an operating agreement, the
    Secretary--
                (1) except as provided in paragraph (2), shall not reduce
            any payment for the operation of the vessel to carry military
            or other preference cargoes under section 2631 of title 10,
            United States Code, the Act of March 26, 1934 (46 App. U.S.C.
            1241-1), section 901(a), 901(b), or 901b of the Merchant Marine
            Act, 1936 (46 App. U.S.C. 1241(a), 1241(b), or 1241f), or any
            other cargo preference law of the United States;
                (2) shall not make any payment for any day that the vessel
            is engaged in transporting more than 7,500 tons of civilian
            bulk preference cargoes pursuant to section 901(a), 901(b), or
            901b of the Merchant Marine Act, 1936 (46 App. U.S.C. 1241(a),
            1241(b), or 1241f), that is cargo; and
                (3) shall make a pro rata reduction in payment for each day
            less than 320 in a fiscal year that the vessel is not operated
            in accordance with section 3514(a)(1), with days during which
            the vessel is drydocked or undergoing survey, inspection, or
            repair considered to be days on which the vessel is operated.

    SEC. 3516. NATIONAL SECURITY REQUIREMENTS.

        (a) Emergency Preparedness Agreement Required.--The Secretary shall
    establish an Emergency Preparedness Program under this section that is
    approved by the Secretary of Defense. Under the program, the Secretary
    shall include in each operating agreement under this subtitle a
    requirement that the contractor enter into an Emergency Preparedness
    Agreement under this section with the Secretary. The Secretary shall
    negotiate and enter into an Emergency Preparedness Agreement with each
    contractor as promptly as practicable after the contractor has entered
    into an operating agreement under this subtitle.
        (b) Terms of Agreement.--
                (1) In general.--An Emergency Preparedness Agreement under
            this section shall require that upon a request by the Secretary
            of Defense during time of war or national emergency, or
            whenever determined by the Secretary of Defense to be necessary
            for national security or contingency operation (as that term is
            defined in section 101 of title 10, United States Code), a
            contractor for a vessel covered by an operating agreement under
            this subtitle shall make available commercial transportation
            resources (including services).
                (2) Basic terms.--(A) The basic terms of the Emergency
            Preparedness Agreement shall be established (subject to
            subparagraph (B)) pursuant to consultations among the Secretary
            and the Secretary of Defense.
                (B) In any Emergency Preparedness Agreement, the Secretary
            and a contractor may agree to additional or modifying terms
            appropriate to the contractor's circumstances if those terms
            have been approved by the Secretary of Defense.
        (c) Participation After Expiration of Operating Agreement.--Except
    as provided by section 3514(c), the Secretary may not require, through
    an Emergency Preparedness Agreement or operating agreement, that a
    contractor continue to participate in an Emergency Preparedness
    Agreement after the operating agreement with the contractor has expired
    according to its terms or is otherwise no longer in effect. After
    expiration of an Emergency Preparedness Agreement, a contractor may
    volunteer to continue to participate in such an agreement.
        (d) Resources Made Available.--The commercial transportation
    resources to be made available under an Emergency Preparedness
    Agreement shall include vessels or capacity in vessels, intermodal
    systems and equipment, terminal facilities, intermodal and management
    services, and other related services, or any agreed portion of such
    nonvessel resources for activation as the Secretary of Defense may
    determine to be necessary, seeking to minimize disruption of the
    contractor's service to commercial shippers.
        (e) Compensation.--
                (1) In general.--The Secretary shall include in each
            Emergency Preparedness Agreement provisions approved by the
            Secretary of Defense under which the Secretary of Defense shall
            pay fair and reasonable compensation for all commercial
            transportation resources provided pursuant to this section.
                (2) Specific requirements.--Compensation under this
            subsection--
                        (A) shall not be less than the contractor's
                    commercial market charges for like transportation
                    resources;
                        (B) shall be fair and reasonable considering all
                    circumstances;
                        (C) shall be provided from the time that a vessel
                    or resource is required by the Secretary of Defense
                    until the time that it is redelivered to the contractor
                    and is available to reenter commercial service; and
                        (D) shall be in addition to and shall not in any
                    way reflect amounts payable under section 3515.
        (f) Temporary Replacement Vessels.--Notwithstanding section 2631 of
    title 10, United States Code, the Act of March 26, 1934 (46 App. U.S.C.
    1241-1), section 901(a), 901(b), or 901b of the Merchant Marine Act,
    1936 (46 App. U.S.C. 1241(a), 1241(b), or 1241f), or any other cargo
    preference law of the United States--
                (1) a contractor may operate or employ in foreign commerce
            a foreign-flag vessel or foreign-flag vessel capacity as a
            temporary replacement for a United States-documented vessel or
            United States-documented vessel capacity that is activated by
            the Secretary of Defense under an Emergency Preparedness
            Agreement or under a primary Department of Defense-approved
            sealift readiness program; and
                (2) such replacement vessel or vessel capacity shall be
            eligible during the replacement period to transport preference
            cargoes subject to section 2631 of title 10, United States
            Code, the Act of March 26, 1934 (46 App. U.S.C. 1241-1), and
            sections 901(a), 901(b), and 901b of the Merchant Marine Act,
            1936 (46 App. U.S.C. 1241(a), 1241(b), and 1241b) to the same
            extent as the eligibility of the vessel or vessel capacity
            replaced.
        (g) Redelivery and Liability of United States for Damages.--
                (1) In general.--All commercial transportation resources
            activated under an Emergency Preparedness Agreement shall, upon
            termination of the period of activation, be redelivered to the
            contractor in the same good order and condition as when
            received, less ordinary wear and tear, or the Secretary of
            Defense shall fully compensate the contractor for any necessary
            repair or replacement.
                (2) Limitation on liability of u.s.--Except as may be
            expressly agreed to in an Emergency Preparedness Agreement, or
            as otherwise provided by law, the Government shall not be
            liable for disruption of a contractor's commercial business or
            other consequential damages to a contractor arising from
            activation of commercial transportation resources under an
            Emergency Preparedness Agreement.

    SEC. 3517. REGULATORY RELIEF.

        (a) Operation in Foreign Commerce.--A contractor for a vessel
    included in an operating agreement under this subtitle may operate the
    vessel in the foreign commerce of the United States without
    restriction.
        (b) Other Restrictions.--The restrictions of section 901(b)(1) of
    the Merchant Marine Act, 1936 (46 App. U.S.C. 1241(b)(1)) concerning
    the building, rebuilding, or documentation of a vessel in a foreign
    country shall not apply to a vessel for any day the operator of that
    vessel is receiving payments for operation of that vessel under an
    operating agreement under this subtitle.
        (c) Telecommunications Equipment.--The telecommunications and other
    electronic equipment on an existing vessel that is redocumented under
    the laws of the United States for operation under an operating
    agreement under this subtitle shall be deemed to satisfy all Federal
    Communications Commission equipment certification requirements, if--
                (1) such equipment complies with all applicable
            international agreements and associated guidelines as
            determined by the country in which the vessel was documented
            immediately before becoming documented under the laws of the
            United States;
                (2) that country has not been identified by the Secretary
            as inadequately enforcing international regulations as to that
            vessel; and
                (3) at the end of its useful life, such equipment will be
            replaced with equipment that meets Federal Communications
            Commission equipment certification standards.

    SEC. 3518. SPECIAL RULE REGARDING AGE OF FORMER PARTICIPATING FLEET
                  VESSEL.

        Sections 3511(b)(3) and 3515(c)(3) shall not apply to a former
    participating fleet vessel described in section 3502(5)(A), during the
    30-month period referred to in section 3502(5)(B)(v) with respect to
    the vessel, if the Secretary determines that the contractor for the
    vessel has entered into an arrangement to obtain and operate under the
    operating agreement for the former participating fleet vessel a
    replacement vessel that, upon commencement of such operation, will be
    eligible to be included in the Fleet under section 3511(b).

    SEC. 3519. AUTHORIZATION OF APPROPRIATIONS.

        There are authorized to be appropriated for payments under section
    3515, to remain available until expended, $156,000,000 for each of
    fiscal years 2006 and 2007, and such sums as may be necessary for each
    fiscal year thereafter through fiscal year 2015.

    SEC. 3520. AMENDMENT TO SHIPPING ACT, 1916.

        Section 9 of the Shipping Act, 1916 (46 App. U.S.C. 808) is amended
    by redesignating the second subsection (e) as subsection (f), and by
    adding at the end the following:
        ``(g) Notwithstanding subsection (c)(2), the Merchant Marine Act,
    1936, or any contract entered into with the Secretary of Transportation
    under that Act, a vessel may be placed under a foreign registry,
    without approval of the Secretary, if--
                ``(1)(A) the Secretary, with the concurrence of the
            Secretary of Defense, determines that at least one replacement
            vessel of like capability and of a capacity that is equivalent
            or greater, as measured by deadweight tons, gross tons, or
            container equivalent units, as appropriate, is documented under
            chapter 121 of title 46, United States Code, by the owner of
            the vessel placed under the foreign registry; and
                ``(B) the replacement vessel is not more than 10 years of
            age on the date of that documentation; and
                ``(2) an operating agreement covering the vessel under the
            Maritime Security Act of 2003 has expired.''.

    SEC. 3521. REGULATIONS.

        (a) In General.--The Secretary of Transportation and the Secretary
    of Defense may each prescribe rules as necessary to carry out this
    subtitle and the amendments made by this subtitle.
        (b) Interim Rules.--The Secretary of Transportation and the
    Secretary of Defense may each prescribe interim rules necessary to
    carry out this subtitle and the amendments made by this subtitle. For
    this purpose, the Secretaries are excepted from compliance with the
    notice and comment requirements of section 553 of title 5, United
    States Code. All interim rules prescribed under the authority of this
    subsection that are not earlier superseded by final rules shall expire
    no later than 270 days after the effective date of this subtitle.

    SEC. 3522. REPEALS AND CONFORMING AMENDMENTS.

        (a) Repeals.--The following provisions are repealed:
                (1) Subtitle B of title VI of the Merchant Marine Act, 1936
            (46 App. U.S.C. 1187 et seq.).
                (2) Section 804 of the Merchant Marine Act, 1936 (46 App.
            U.S.C. 1222).
        (b) Conforming Amendment.--Section 12102(d)(4) of title 46, United
    States Code, is amended by inserting ``or section 3511(b) of the
    Maritime Security Act of 2003'' after ``Merchant Marine Act, 1936''.

    SEC. 3523. EFFECTIVE DATES.

        (a) In General.--Except as provided in subsections (b) and (c),
    this subtitle shall take effect October 1, 2004.
        (b) Repeals and Conforming Amendments.--Section 3522 shall take
    effect October 1, 2005.
        (c) Regulations.--Section 3521 and this section shall take effect
    on the date of the enactment of this Act.

        Subtitle C--National Defense Tank Vessel Construction Assistance

    SEC. 3531. NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PROGRAM.

        The Secretary of Transportation shall establish a program for the
    provision of financial assistance for the construction in the United
    States of a fleet of up to 5 privately owned product tank vessels--
                (1) to be operated in commercial service in foreign
            commerce; and
                (2) to be available for national defense purposes in time
            of war or national emergency pursuant to an Emergency
            Preparedness Plan approved by the Secretary of Defense pursuant
            to section 3533(e) of this subtitle.

    SEC. 3532. APPLICATION PROCEDURE. -

        (a) Request for Proposals.--Within 90 days after the date of the
    enactment of this subtitle, and on an as-needed basis thereafter, the
    Secretary, in consultation with the Secretary of Defense, shall publish
    in the Federal Register a request for competitive proposals for the
    construction of new product tank vessels necessary to meet the
    commercial and national security needs of the United States and to be
    built with assistance under this subtitle.
        (b) Qualification.--Any citizen of the United States or any
    shipyard in the United States may submit a proposal to the Secretary of
    Transportation for purposes of constructing a product tank vessel with
    assistance under this subtitle.
        (c) Requirement.--The Secretary, with the concurrence of the
    Secretary of Defense, may enter into an agreement with the submitter of
    a proposal for assistance under this subtitle if the Secretary
    determines that--
                (1) the plans and specifications call for construction of a
            new product tank vessel of not less than 35,000 deadweight tons
            and not greater than 60,000 deadweight tons, that--
                        (A) will meet the requirements of foreign commerce;
                        (B) is capable of carrying militarily useful
                    petroleum products, and will be suitable for national
                    defense or military purposes in time of war, national
                    emergency, or other military contingency; and
                        (C) will meet the construction standards necessary
                    to be documented under the laws of the United States;
                (2) the shipyard in which the vessel will be constructed
            has the necessary capacity and expertise to successfully
            construct the proposed number and type of product tank vessels
            in a reasonable period of time as determined by the Secretary
            of Transportation, taking into consideration the recent prior
            commercial shipbuilding history of the proposed shipyard in
            delivering a vessel or series of vessels on time and in
            accordance with the contract price and specifications; and
                (3) the person proposed to be the operator of the proposed
            vessel possesses the ability, experience, financial resources,
            and any other qualifications determined to be necessary by the
            Secretary for the operation and maintenance of the vessel.
        (d) Priority.--The Secretary--
                (1) subject to paragraph (2), shall give priority
            consideration to a proposal submitted by a person that is a
            citizen of the United States under section 2 of the Shipping
            Act, 1916 (46 App. U.S.C. 802); and
                (2) may give priority to consideration of proposals that
            provide the best value to the Government, taking into
            consideration--
                        (A) the costs of vessel construction; and
                        (B) the commercial and national security needs of
                    the United States.

    SEC. 3533. AWARD OF ASSISTANCE.

        (a) In General.--If after review of a proposal, the Secretary
    determines that the proposal fulfills the requirements under this
    subtitle, the Secretary may enter into a contract with the proposed
    purchaser and the proposed shipyard for the construction of a product
    tank vessel with assistance under this subtitle.
        (b) Amount of Assistance.--The contract shall provide that the
    Secretary shall pay, subject to the availability of appropriations, up
    to 75 percent of the actual construction cost of the vessel, but in no
    case more than $50,000,000 per vessel.
        (c) Construction in United States.--A contract under this section
    shall require that construction of a vessel with assistance under this
    subtitle shall be performed in a shipyard in the United States.
        (d) Documentation of Vessel.--
                (1) Contract requirement.--A contract under this section
            shall require that, upon delivery of a vessel constructed with
            assistance under the contract, the vessel shall be documented
            under chapter 121 of title 46, United States Code with a
            registry endorsement only.
                (2) Restriction on coastwise endorsement.--A vessel
            constructed with assistance under this subtitle shall not be
            eligible for a certificate of documentation with a coastwise
            endorsement.
                (3) Authority to reflag not applicable.--Section 9(g) of
            the Shipping Act, 1916, (46 App. U.S.C. 808(g)) shall not apply
            to a vessel constructed with assistance under this subtitle.
        (e) Emergency Preparedness Agreement.--
                (1) In general.--A contract under this section shall
            require that the person who will be the operator of a vessel
            constructed with assistance under the contract shall enter into
            an Emergency Preparedness Agreement for the vessel under
            section 3516.
                (2) Treatment as contractor.--For purposes of the
            application, under paragraph (1), of section 3516 to a vessel
            constructed with assistance under this subtitle, the term
            ``contractor'' as used in section 3516 means the person who
            will be the operator of a vessel constructed with assistance
            under this subtitle.
        (f) Additional Terms.--The Secretary shall incorporate in the
    contract the requirements set forth in this subtitle, and may
    incorporate in the contract any additional terms the Secretary
    considers necessary.

    SEC. 3534. PRIORITY FOR TITLE XI ASSISTANCE.

        Section 1103 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1273)
    is amended by adding at the end the following:
        ``(i) Priority.--In guaranteeing and entering commitments to
    guarantee under this section, the Secretary shall give priority to
    guarantees and commitments for vessels that are otherwise eligible for
    a guarantee under this section and that are constructed with assistance
    under subtitle C of the Maritime Security Act of 2003.''.

    SEC. 3535. AUTHORIZATION OF APPROPRIATIONS.

        There are authorized to be appropriated to the Secretary to carry
    out this subtitle a total of $250,000,000 for fiscal years after fiscal
    year 2004.

               Subtitle D--Maritime Administration Authorization

    SEC. 3541. AUTHORIZATION OF APPROPRIATIONS FOR MARITIME ADMINISTRATION
                  FOR FISCAL YEAR 2004.

        Funds are hereby authorized to be appropriated for fiscal year
    2004, 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, $104,400,000, of which $13,000,000 is for capital
            improvements at the United States Merchant Marine Academy.
                (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.), $39,498,000, of which--
                        (A) $35,000,000 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) $4,498,000 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, $20,000,000.

    SEC. 3542. AUTHORITY TO CONVEY VESSEL USS HOIST (ARS-40).

        (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 HOIST (ARS-40), to the Last
    Patrol Museum, located in Toledo, Ohio (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,
            polychlorinated biphenyls, or lead paint 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
    section, 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, and 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 HOIST (ARS-40) to museum quality.
        (d) Retention of Vessel in NDRF.--
                (1) In general.--The Secretary shall retain in the National
            Defense Reserve Fleet the vessel authorized to be conveyed
            under subsection (a), until the earlier of--
                        (A) 2 years after the date of the enactment of this
                    Act; or
                        (B) the date of conveyance of the vessel under
                    subsection (a).
                (2) Limitation.--Paragraph (1) does not require the
            Secretary to retain the vessel in the National Defense Reserve
            Fleet if the Secretary determines that retention of the vessel
            in the fleet will pose an unacceptable risk to the marine
            environment.

    SEC. 3543. AUTHORITY TO CONVEY NDRF VESSELS AND VESSEL CONTENTS.

        (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 any or all of the vessels USS ORION (AS-
    18), USS HOWARD W. GILMORE (AS-16), USS SPERRY (AS-12), USS NEREUS (AS-
    17), USS PROTEUS (XAS-19), and S.S. HATTIESBURG VICTORY (number
    248651), a barge and its inventoried contents (YFNB 4, also known as
    SSE-512), and the contents (Victory class spares) that have been
    removed from the S.S. CATAWBA VICTORY, to Beauchamp Tower Corporation
    (a not-for-profit corporation, in this section referred to as the
    ``recipient'') for use as moored support ships for the corporation and
    as memorials to the Fulton class ships and the Victory class ships,
    if--
                (1) the vessel is not used for commercial transportation
            purposes;
                (2) the recipient agrees to make the vessel available to
            the Government when the Secretary requires use of the vessel by
            the Government;
                (3) the recipient agrees that when the recipient no longer
            requires the vessel for use as a moored support ship for the
            corporation and as a memorial to the Fulton class ships and the
            Victory class ships--
                        (A) the recipient shall, 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 Florida, 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 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;
                (4) 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 (2) or (3); and
                (5) the recipient has available, for use to restore the
            vessel, in the form of cash, liquid assets, a written loan
            commitment, or financial resources--
                        (A) except as provided in subparagraph (B), of at
                    least $1,500,000 for each vessel conveyed; and
                        (B) at least $50,000 for each barge with contents
                    conveyed.
        (b) Delivery of Vessel.--If a conveyance of a vessel is made under
    this section, the Secretary shall deliver the vessel at the place where
    the vessel is located on the date of the enactment of this Act, in its
    present condition, without cost to the Government.
        (c) Management of Vessels Pending Conveyance.--
                (1) 2-year holding period.--The Secretary shall remove all
            vessels authorized to be conveyed under this section from the
            scrapping disposal list for a period of 2 years.
                (2) Disposal at end of holding period.--If a vessel has not
            been received and transported from its conveyance location by
            the recipient before the end of such 2-year period, the
            Secretary may dispose of the vessel as the Secretary determines
            to be appropriate.
                (3) Disposal during holding period.--Notwithstanding
            paragraph (1), the Secretary may dispose of a vessel authorized
            to be conveyed under this section during the 2-year period
            provided for in paragraph (1), if it is determined that the
            vessel is in danger of sinking or presents an immediate
            critical hazard to the National Defense Reserve Fleet or
            environmental safety.
        (d) Other Unneeded Equipment.--The Secretary may convey to the
    recipient any unneeded equipment, materials, and spares from other
    vessels or in storage with the Maritime Administration and the National
    Defense Reserve Fleet, for the recipient's use, including the
    restoration and refit of the vessels conveyed under this section and to
    assist other vessel museums.
        (e) Retention of Vessel in NDRF.--The Secretary shall retain in the
    National Defense Reserve Fleet each 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).

                    TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

    SEC. 3601. SHORT TITLE.

        This title may be cited as the ``Nuclear Security Initiative Act of
    2003''.

               Subtitle A--Nonproliferation Program Enhancements

    SEC. 3611. ESTABLISHMENT OF INTERNATIONAL NUCLEAR MATERIALS PROTECTION
                  AND COOPERATION PROGRAM IN DEPARTMENT OF STATE.

        (a) Policy With Respect to Former Soviet Union.--It is the policy
    of the United States to seek to cooperate with the Russian Federation
    and each other independent state of the former Soviet Union to effect
    as quickly as is reasonably practical basic security measures (such as
    the replacement of doors, the bricking of or placement of bars in
    windows, the clearing of underbrush from facility perimeters, and the
    erection of fences) at each facility in the Russian Federation and each
    such state that is used for storing nuclear weapons or nuclear
    materials and is not yet protected by such measures.
        (b) Policy Worldwide.--It is the policy of the United States to
    seek to cooperate with all appropriate nations--
                (1) to attempt to ensure that all nuclear weapons and
            nuclear materials worldwide are secure and accounted for
            according to stringent standards; and
                (2) to minimize the number of facilities worldwide at which
            separated plutonium and highly enriched uranium are present, so
            as to achieve the highest and most sustainable levels of
            security for such facilities in the most cost-effective manner.
        (c) Expansion of Program to Additional Countries Authorized.--(1)
    The Secretary of State may establish an international nuclear materials
    protection and cooperation program with respect to countries other than
    the Russian Federation and the other independent states of the former
    Soviet Union.
        (2) In carrying out such program, the Secretary of State may
    provide such funds as are needed to remove nuclear materials from
    potentially vulnerable facilities, including funds to cover the costs
    of--
                (A) transporting such materials from those facilities to
            secure facilities;
                (B) purchasing such materials;
                (C) converting those facilities to a use that no longer
            requires nuclear materials; and
                (D) providing incentives to facilitate the removal of such
            materials from such facilities.
        (3)(A) The Secretary of Energy may provide technical assistance to
    the Secretary of State in the efforts of the Secretary of State, in
    carrying out the program, to assist such countries to review and
    improve their security programs with respect to nuclear weapons and
    nuclear materials.
        (B) The technical assistance provided under subparagraph (A) may,
    where consistent with the treaty obligations of the United States,
    include the sharing of technology or methodologies to the countries
    referred to in that subparagraph. Any such sharing shall take into
    account the sovereignty of the country concerned and the nuclear
    weapons programs of such country, as well as the sensitivity of any
    information involved regarding United States nuclear weapons or nuclear
    weapons systems.
        (C) The Secretary of State may include the Russian Federation in
    activities under this paragraph if the Secretary determines that the
    experience of the Russian Federation under the International Nuclear
    Materials Protection and Cooperation program of the Department of
    Energy would make the participation of the Russian Federation in those
    activities useful in providing technical assistance under subparagraph
    (A).

       Subtitle B--Administration and Oversight of Threat Reduction and
                           Nonproliferation Programs

    SEC. 3621. ANALYSIS OF EFFECT ON THREAT REDUCTION AND NONPROLIFERATION
                  PROGRAMS OF CONGRESSIONAL OVERSIGHT MEASURES WITH RESPECT
                  TO SUCH PROGRAMS.

        (a) Analysis of and Report on Congressional Oversight Measures.--
    (1) The National Academy of Sciences shall carry out an analysis of the
    effect on threat reduction and nonproliferation programs of applicable
    congressional oversight measures. The analysis shall take into
    account--
                (A) the national security interests of the United States;
                (B) the need for accountability in the expenditure of funds
            by the United States;
                (C) the effect of such congressional oversight measures on
            the continuity and effectiveness of such programs; and
                (D) the oversight responsibilities of Congress with respect
            to such programs.
        (2) In carrying out the analysis, the National Academy of Sciences
    shall consult with the chairs and ranking minority members of the
    Committees on Armed Services of the Senate and the House of
    Representatives.
        (b) Report.--Not later than November 1, 2004, the National Academy
    of Sciences shall submit to Congress a report on the analysis required
    by subsection (a). The report shall--
                (1) identify, and describe the purpose of, each
            congressional oversight measure; and
                (2) set forth such recommendations as the National Academy
            of Sciences considers appropriate as to whether the measure
            should be retained, amended, or repealed, together with the
            reasoning underlying that determination.
        (c) Definitions.--In this section:
                (1) the term ``congressional oversight measure'' means--
                        (A) the restrictions in subsection (d) of section
                    1203 of the Cooperative Threat Reduction Act of 1993
                    (22 U.S.C. 5952);
                        (B) the eligibility requirements in paragraphs (1)
                    through (4) of section 502 of the FREEDOM Support Act
                    (22 U.S.C. 5852);
                        (C) the prohibition in section 1305 of the National
                    Defense Authorization Act for Fiscal Year 2000 (Public
                    Law 106-65; 113 Stat. 512; 22 U.S.C. 5952 note); and
                        (D) any restriction or prohibition on the use of
                    funds otherwise available for threat reduction and
                    nonproliferation programs that applies absent the
                    submission to Congress (or any one or more officers or
                    committees of Congress) of a report, certification, or
                    other matter.
                (2) The term ``threat reduction and nonproliferation
            programs'' means--
                        (A) 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); and
                        (B) any programs for which funds are made available
                    under the defense nuclear nonproliferation account of
                    the Department of Energy.

    SEC. 3622. ANNUAL REPORT ON THE USE OF FUNDS APPROPRIATED FOR THREAT
                  REDUCTION AND NONPROLIFERATION IN STATES OF THE FORMER
                  SOVIET UNION.

        (a) Report.--Not later than December 31 of each year, the Secretary
    of Energy shall submit to Congress a report on the use, during the
    fiscal year ending September 30 of that year, of funds appropriated for
    threat reduction and nonproliferation programs in the Russian
    Federation and the other independent states of the former Soviet Union.
    The report shall be prepared in consultation with the Secretary of
    Defense and shall include the following:
                (1) A description of the use of such funds and the manner
            in which such funds are being monitored and accounted for,
            including--
                        (A) the amounts obligated, and the amounts
                    expended, for such activities;
                        (B) the purposes for which such amounts were
                    obligated and expended;
                        (C) the forms of assistance provided, and the
                    justification for each form of assistance provided;
                        (D) the success of each such activity, including
                    the purposes achieved for each such activity;
                        (E) a description of the participation in such
                    activities by private sector entities in the United
                    States and by Federal agencies; and
                        (F) any other information that the Secretary of
                    Energy considers appropriate to provide a complete
                    description of the operation and success of such
                    activities.
                (2) An accounting of the financial commitment made by the
            Russian Federation, as of the date of the end of the fiscal
            year covered by the report, to the destruction of its weapons
            of mass destruction and to threat reduction and
            nonproliferation programs.
                (3) A description of the efforts made by the United States
            to encourage the Russian Federation to continue to maintain its
            current level of financial commitment at a level not less than
            the level of its commitment for fiscal year 2003, and the
            response of the Russian Federation to such efforts.
                (4) A description of the access provided by the Russian
            Federation to the United States during the fiscal year covered
            by the report to the facilities with respect to which the
            United States is providing assistance under threat reduction
            and nonproliferation programs.
        (b) Consultation Required.--In preparing the report, the Secretary
    of Energy shall consult with the chairs and ranking minority members of
    the following congressional committees:
                (1) The Committee on Armed Services, Committee on
            Appropriations, and Committee on International Relations of the
            House of Representatives.
                (2) The Committee on Armed Services, Committee on
            Appropriations, and Committee on Foreign Relations of the
            Senate.
        (c) Information from Russian Federation.--In the case of activities
    covered by the report that are carried out in the Russian Federation,
    the Secretary of Energy shall, in preparing the report, include
    information provided by the Russian Federation with respect to those
    activities.
        (d) Definition.--In this section, the term ``threat reduction and
    nonproliferation programs'' has the meaning given such term in section
    3621.

    SEC. 3623. PLAN FOR AND COORDINATION OF CHEMICAL AND BIOLOGICAL WEAPONS
                  NONPROLIFERATION PROGRAMS WITH STATES OF THE FORMER
                  SOVIET UNION.

        (a) Chemical and Biological Weapons Plan.--Section 1205 of the
    National Defense Authorization Act for Fiscal Year 2002 (Public Law
    107-107; 115 Stat. 1247), as amended by section 1205 of the Bob Stump
    National Defense Authorization Act for Fiscal Year 2003 (Public Law
    107-314; 116 Stat. 2664) is amended--
                (1) by redesignating subsection (d) as subsection (e); and
                (2) by inserting after subsection (c) the following new
            subsection (d):
        ``(d) Chemical and Biological Weapons.--(1) Not later than June 1,
    2004, the President shall develop with the President of the Russian
    Federation and submit to Congress a comprehensive, detailed plan--
                ``(A) to account for, secure, and destroy all chemical and
            biological weapons, and the chemical and biological materials
            designed for use in such weapons, that are located in Russia
            and the independent states of the former Soviet Union; and
                ``(B) to prevent the outflow from those states of the
            technology and scientific expertise that could be used for
            developing those weapons, including delivery systems.
        ``(2) The plan required by paragraph (1) shall include the
    following:
                ``(A) Specific goals and measurable objectives for the
            programs that are designed to carry out the objectives
            specified in subparagraphs (A) and (B) of paragraph (1).
                ``(B) Identification of all significant obstacles to
            achieving those objectives and the means for overcoming those
            obstacles.
                ``(C) Criteria for success for those programs and a
            strategy for eventual termination of United States
            contributions to those programs and assumption of the ongoing
            support of those programs by the Russian Federation.
                ``(D) Specification of the fiscal and other resources
            necessary in each of the eight fiscal years after fiscal year
            2003 to achieve those objectives, including contributions from
            the international community.
                ``(E) Arrangements for United States oversight and access
            to sites.
                ``(F) Recommendations for any changes--
                        ``(i) in the structure or organization of the
                    programs for carrying out those objectives; and
                        ``(ii) in regulations or legislation that would
                    increase the efficiency and coordination of those
                    programs or would otherwise contribute to the
                    achievement of those objectives.
        ``(3) In developing the plan required by paragraph (1), the
    President shall consult with--
                ``(A) the majority and minority leadership of the
            appropriate committees of Congress; and
                ``(B) appropriate officials of the states of the former
            Soviet Union.
        ``(4)(A) The President, after consultation with the majority and
    minority leadership of the appropriate committees of Congress, shall
    designate a senior official of the Executive Branch, and provide that
    official with sufficient authority and staffing and other resources, to
    coordinate the programs referred to in paragraph (2)(A).
        ``(B) The President shall designate that official not later than 12
    months after the date of the enactment of this subsection.''.
        (b) Report Required To Cover Both Plans.--Subsection (e) of section
    1205 of the National Defense Authorization Act for Fiscal Year 2002
    (Public Law 107-107; 115 Stat. 1247), as redesignated by subsection
    (a), is amended--
                (1) in the subsection heading, by striking ``Plan.--'' and
            inserting ``Plans.--'';
                (2) in paragraph (1)--
                        (A) by striking ``January 31, 2003,'' and inserting
                    ``January 31, 2005,''; and
                        (B) by striking ``plan required by subsection (a)''
                    and inserting ``plans required by subsections (a) and
                    (d)(1)''; and
                (3) in paragraph (2)--
                        (A) in subparagraph (A), by striking ``plan
                    required by subsection (a)'' and inserting ``plans
                    required by subsections (a) and (d)(1)''; and
                        (B) in subparagraphs (B), (C), and (D) by striking
                    ``plan'' each place it appears and inserting ``plans''.
        (c) Conforming Amendment.--The heading of section 1205 of the
    National Defense Authorization Act for Fiscal Year 2002 (Public Law
    107-107; 115 Stat. 1247) is amended to read as follows:

    ``SEC. 1205. PLANS FOR SECURING NUCLEAR WEAPONS, MATERIAL, AND
                  EXPERTISE OF, AND FOR COORDINATING CHEMICAL AND
                  BIOLOGICAL WEAPONS NONPROLIFERATION PROGRAMS WITH, STATES
                  OF THE FORMER SOVIET UNION.''.

        (d) Effective Date for First Report Covering Both Plans.--The
    amendments made by subsection (b) shall apply with respect to the first
    report due after January 31, 2004.

                  Subtitle C--United States--Russia Relations

    SEC. 3631. COMPREHENSIVE INVENTORIES AND DATA EXCHANGES ON NUCLEAR
                  WEAPONS-GRADE MATERIAL AND NUCLEAR WEAPONS.

        (a) Findings.--Congress finds that inventories of nuclear weapons-
    grade material and nuclear weapons should be tracked in order, among
    other things--
                (1) to make it more likely that the Russian Federation can
            fully account for its entire inventory of nuclear weapons-grade
            material and nuclear weapons; and
                (2) to make it more likely that the sources of any such
            material or weapons possessed or used by any foreign state or
            terrorist organization can be identified.
        (b) Statement of Policy.--To the extent that the President
    considers prudent, it is the policy of the United States to seek to
    establish jointly with the Russian Federation comprehensive inventories
    and data exchanges of Russian Federation and United States nuclear
    weapons-grade material and nuclear weapons, with particular attention
    to tactical warheads and warheads that are no longer operationally
    deployed.
        (c) Assistance in Developing Comprehensive Inventories.--
    Notwithstanding any other provision of law, the United States should
    seek to work with the Russian Federation to develop comprehensive
    inventories of Russian highly enriched uranium, weapons-grade
    plutonium, and assembled warheads, with special attention to be focused
    on tactical warheads and warheads that are no longer operationally
    deployed.
        (d) Data Exchanges.--As part of the development of inventories
    under subsection (c), to the maximum extent practicable and without
    jeopardizing United States national security interests, the United
    States may exchange data with the Russian Federation on categories of
    material and weapons described in subsection (c).
        (e) Report.--Not later than 12 months after the date of the
    enactment of this Act, and annually thereafter until a comprehensive
    inventory is created and the information collected from the inventory
    is exchanged between the United States and the Russian Federation, the
    President shall submit to Congress a report, in both classified and
    unclassified form as necessary, describing the progress that has been
    made toward creating an inventory and exchanging the information.

    SEC. 3632. ESTABLISHMENT OF DUMA-CONGRESS NUCLEAR THREAT REDUCTION
                  WORKING GROUP.

        (a) Establishment of Working Group.--There is hereby established a
    working group to be known as the ``Nuclear Threat Reduction Working
    Group'' as an interparliamentary group of the United States and the
    Russian Federation.
        (b) Purpose of Working Group.--The purpose of the Working Group
    established by subsection (a) shall be to explore means to enhance
    cooperation between the United States and the Russian Federation with
    respect to nuclear nonproliferation and security, and such other issues
    related to reducing nuclear weapons dangers as the delegations from the
    two legislative bodies may consider appropriate.
        (c) Membership.--(1) The majority leader of the Senate, after
    consultation with the minority leader of the Senate, shall appoint 10
    Senators to the Working Group established by subsection (a).
        (2) The Speaker of the House of Representatives, after consultation
    with the minority leader of the House of Representatives, shall appoint
    30 Representatives to the Working Group.

    SEC. 3633. JOINT UNITED STATES/NORTH ATLANTIC TREATY ORGANIZATION
                  COOPERATION WITH RUSSIA ON THEATER-LEVEL BALLISTIC
                  MISSILE DEFENSES.

        (a) Policy.--It is the policy of the United States that the
    President should seek to ensure that the United States takes the lead
    in arranging for the United States, in conjunction with the North
    Atlantic Treaty Organization, to enter into appropriate cooperative
    relationships with the Russian Federation with respect to the
    development and deployment of theater-level ballistic missile defenses.
        (b) Purpose of Cooperative Relationships.--It is the policy of the
    United States--
                (1) that the purpose of the cooperative relationships
            described in subsection (a) is to increase transparency and
            confidence with the Russian Federation;
                (2) that United States defense and security cooperation
            with the Russian Federation should contribute to defining a new
            bilateral strategic framework that is not rooted in the concept
            of ``mutual assured destruction''; and
                (3) that that new bilateral strategic framework should be
            based upon improving the security of the United States and the
            Russian Federation by promoting transparency and confidence
            between the two countries.
        (c) Report to Congress.--Not later than one year after the date of
    the enactment of this Act, the President shall transmit to Congress a
    report (in unclassified or classified form as necessary) on the
    feasibility of increasing cooperation with the Russian Federation on
    the subject of theater-level ballistic missile defenses and on the
    purposes and objectives set forth in subsection (b). The report shall
    include--
                (1) recommendations from the Department of Defense and
            Missile Defense Agency;
                (2) a threat assessment; and
                (3) an assessment of possible benefits to missile defense
            programs of the United States.

    SEC. 3634. ENCOURAGEMENT OF ENHANCED COLLABORATION TO ACHIEVE MORE
                  RELIABLE RUSSIAN EARLY WARNING SYSTEMS.

        (a) Findings.--Congress finds that--
                (1) the innovative United States-Russian space-based remote
            sensor research and development program known as the Russian-
            American Observation Satellite (RAMOS) program addresses a
            variety of defense concerns while promoting enhanced
            transparency and confidence between the United States and the
            Russian Federation; and
                (2) an initial concept of co-orbiting United States and
            Russian satellites for simultaneous stereo observations is
            complete and should be continued.
        (b) Policy.--To the exent that the President considers prudent, it
    is the policy of the United States--
                (1) to encourage joint efforts by the United States and the
            Russian Federation to reduce the chances of a Russian nuclear
            attack anywhere in the world as the result of misinformation or
            miscalculation by developing the capabilities and increasing
            the reliability of Russian ballistic missile early-warning
            systems, including the Russian-American Observation Satellite
            (RAMOS) program; and
                (2) to encourage other United States-Russian programs to
            ensure that the Russia Federation has reliable information,
            including real-time data, regarding launches of ballistic
            missiles anywhere in the world.
        (c) Interim RAMOS Funding.--To the extent that the Secretary of
    Defense considers prudent, the Secretary of Defense shall ensure that,
    pending the execution of a new agreement between the United States and
    the Russian Federation providing for the conduct of the RAMOS program,
    sufficient amounts of funds appropriated for that program are used in
    order to ensure the satisfactory continuation of that program during
    fiscal years 2004 and 2005.

    SEC. 3635. TELLER-KURCHATOV ALLIANCE FOR PEACE.

        (a) Findings.--Congress finds that--
                (1) Edward Teller of the United States and Igor Kurchatov
            of the former Soviet Union were architects of the nuclear
            weapons programs in their respective countries;
                (2) these outstanding individuals both expressed a longing
            for peace and opposition to war; and
                (3) as the United States and the Russian Federation work
            together to redirect the nations of the world towards the
            peaceful use of nuclear energy, seeking to improve the quality
            of life for all human beings, it is appropriate to establish an
            alliance for peace in the names of Edward Teller and Igor
            Kurchatov.
        (b) Teller-Kurchatov Alliance for Peace.--(1) To the extent that
    the Secretary of Energy considers prudent, the Secretary shall seek to
    enter into an agreement with the Minister of Atomic Energy of the
    Russian Federation to carry out a cooperative venture, to be known as
    the Teller-Kurchatov Alliance for Peace, to develop and promote
    peaceful, safe, and environmentally sensitive uses of nuclear energy.
        (2) The cooperative venture referred to in paragraph (1) shall
    involve the national security laboratories of the National Nuclear
    Security Administration and the laboratories of the Ministry of Atomic
    Energy and the Kurchatov Institute of the Russian Federation.
        (3) The cooperative venture shall be directed by two co-chairs, one
    each from the United States and the Russian Federation. The co-chair
    from the United States shall serve for a term of two years and shall be
    designated by the Administrator for Nuclear Security from among
    officials of the three national security laboratories, with each
    laboratory represented on a rotating basis.

    SEC. 3636. NONPROLIFERATION FELLOWSHIPS.

        (a) In General.--(1) From amounts made available to carry out this
    section, the Administrator for Nuclear Security may carry out a program
    under which the Administrator awards, to scientists employed at the
    Kurchatov Institute of the Russian Federation and Lawrence Livermore
    National Laboratory, international exchange fellowships, to be known as
    Teller-Kurchatov Fellowships, in the nuclear nonproliferation sciences.
        (2) The purpose of the program shall be to provide opportunities
    for advancement in the field of nuclear nonproliferation to scientists
    who, as demonstrated by their academic or professional achievements,
    show particular promise of making significant contributions in that
    field.
        (3) A fellowship awarded to a scientist under the program shall be
    for study and training at (and, where appropriate, at an institution of
    higher education in the vicinity of)--
                (A) the Kurchatov Institute, in the case of a scientist
            employed at Lawrence Livermore National Laboratory; and
                (B) Lawrence Livermore National Laboratory, in the case of
            a scientist employed at the Kurchatov Institute.
        (4) The duration of a fellowship under the program may not exceed
    two years. The Administrator may provide for a longer duration in an
    individual case to the extent warranted by extraordinary circumstances,
    as determined by the Administrator.
        (5) In a calendar year, the Administrator may not award more than--
                (A) one fellowship to a scientist employed at the Kurchatov
            Institute; and
                (B) one fellowship to a scientist employed at Lawrence
            Livermore National Laboratory.
        (6) A fellowship under the program shall include--
                (A) travel expenses;
                (B) any tuition and fees at an institution of higher
            education for study or training under the fellowship; and
                (C) any other expenses that the Administrator considers
            appropriate, such as room and board.
        (b) Funding.--Amounts available to the Department of Energy for
    defense nuclear nonproliferation activities shall be available for the
    fellowships authorized by subsection (a).
        (c) Definitions.--In this section--
                (1) the term ``institution of higher education'' means a
            college, university, or other educational institution that is
            empowered by an appropriate authority, as determined by the
            Administrator, to award degrees higher than the baccalaureate
            level;
                (2) the term ``nuclear nonproliferation sciences'' means
            bodies of scientific knowledge relevant to developing or
            advancing the means to prevent or impede the proliferation of
            nuclear weaponry; and
                (3) the term ``scientist'' means an individual who has a
            degree from an institution of higher education in a science
            that has practical application in the field of nuclear
            nonproliferation.

                           Subtitle D--Other Matters

    SEC. 3641. PROMOTION OF DISCUSSIONS ON NUCLEAR AND RADIOLOGICAL
                  SECURITY AND SAFETY BETWEEN THE INTERNATIONAL ATOMIC
                  ENERGY AGENCY AND THE ORGANIZATION FOR ECONOMIC
                  COOPERATION AND DEVELOPMENT.

        (a) Findings.--Congress finds that--
                (1) cooperative programs to control potential threats from
            any fissile and radiological materials, whatever and wherever
            their sources, should be expanded to include additional states
            and international organizations; and
                (2) addressing issues of nuclear weapons and materials, as
            well as the issue of radiological dispersal bombs, in new
            forums around the world is crucial to the generation of
            innovative mechanisms directed at addressing the threats.
        (b) Sense of Congress Regarding Initiation of Dialogue Between the
    IAEA and the OECD.--It is the sense of Congress that--
                (1) the United States should seek to initiate discussions
            between the International Atomic Energy Agency and the
            Organization for Economic Cooperation and Development for the
            purpose of exploring issues of nuclear and radiological
            security and safety, including the creation of new sources of
            revenue (including debt reduction) for states to provide
            nuclear security; and
                (2) the discussions referred to in paragraph (1) should
            also provide a forum to explore possible sources of funds in
            support of the G-8 Global Partnership Against the Spread of
            Weapons and Materials of Mass Destruction.
        (c) Report.--Not later than 12 months after the date of the
    enactment of this Act, the President shall submit to Congress a report
    on--
                (1) the efforts made by the United States to initiate the
            discussions described in subsection (b);
                (2) the results of those efforts; and
                (3) any plans for further discussions and the purposes of
            such discussions.

                Passed the House of Representatives May 22, 2003.

                Attest:

                                                                     Clerk.