[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1588 Received in Senate (RDS)]

  1st Session
                                H. R. 1588


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 2, 2003

                                Received

_______________________________________________________________________

                                 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:

                                                 JEFF TRANDAHL,

                                                                 Clerk.