[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4200 Reported in House (RH)]

                                                 Union Calendar No. 278
108th CONGRESS
  2d Session
                                H. R. 4200

                          [Report No. 108-491]

     To authorize appropriations for fiscal year 2005 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2005, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 2004

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

                              May 14, 2004

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on April 
                               22, 2004]

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2005 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2005, 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 2005''.

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.

            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--Program Matters

Sec. 111. Multiyear procurement authority for the light-weight 155-
                            millimeter howitzer program.
Sec. 112. DDG-51 modernization program.
Sec. 113. Repeal of authority for pilot program for flexible funding of 
                            cruiser conversions and overhauls.
Sec. 114. Force protection for asymmetric threat environment.
Sec. 115. Allocation of equipment authorized by this title to be made 
                            on basis of units deployed or preparing to 
                            deploy.
Sec. 116. Multiyear procurement authority for KC-767 tanker aircraft 
                            acquisition program.
Sec. 117. Other matters relating to KC-767 tanker aircraft acquisition 
                            program.

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Future Combat Systems program strategy.
Sec. 212. Collaborative program for research and development of vacuum 
                            electronics technologies.
Sec. 213. Annual Comptroller General report on Joint Strike Fighter 
                            program.
Sec. 214. Amounts for United States Joint Forces Command to be derived 
                            only from Defense-wide amounts.
Sec. 215. Authority of Director of Defense Research and Engineering to 
                            award prizes for advanced technology 
                            achievements.
Sec. 216. Space Based Radar.
Sec. 217. Mark-54 Torpedo Product Improvement Program.

                      Subtitle C--Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.

                  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. Reimbursement of members of the Armed Forces who purchased 
                            protective body armor during shortage of 
                            defense stocks of body armor.

                  Subtitle B--Environmental Provisions

Sec. 311. Report regarding encroachment issues affecting Utah Test and 
                            Training Range, Utah.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Simplification of annual reporting requirements concerning 
                            funds expended for depot maintenance and 
                            repair workloads.
Sec. 322. Repeal of annual reporting requirement concerning management 
                            of depot employees.
Sec. 323. Public-private competition for work performed by civilian 
                            employees of Department of Defense.
Sec. 324. Public-private competition pilot program.
Sec. 325. Sense of Congress on equitable legal standing for civilian 
                            employees.
Sec. 326. Competitive sourcing reporting requirement.

                   Subtitle D--Information Technology

Sec. 331. Preparation of Department of Defense plan for transition to 
                            Internet Protocol version 6.
Sec. 332. Defense business enterprise architecture, system 
                            accountability, and conditions for 
                            obligation of funds for defense business 
                            system modernization.
Sec. 333. Establishment of joint program office to improve 
                            interoperability of battlefield management 
                            command and control systems.

              Subtitle E--Readiness Reporting Requirements

Sec. 341. Annual report on Department of Defense operation and 
                            financial support for military museums.
Sec. 342. Report on Department of Defense programs for prepositioning 
                            of material and equipment.

                       Subtitle F--Other Matters

Sec. 351. Extension of Arsenal Support Program Initiative.
Sec. 352. Limitation on preparation or implementation of Mid-Range 
                            Financial Improvement Plan.
Sec. 353. Procurement of follow-on contracts for the operation of five 
                            Champion-class T-5 tank vessels. 
Sec. 354. Sense of Congress on America's National World War I Museum.

              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.
Sec. 403. Maximum number of reserve personnel authorized to be on 
                            active duty for operational support.
Sec. 404. Accounting and management of reserve component personnel 
                            performing active duty or full-time 
                            National Guard duty for operational 
                            support.

                       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 2005 limitation 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. Length of service for service chiefs.
Sec. 502. Repeal of requirement that Deputy Chiefs and Assistant Chiefs 
                            of Naval Operations be selected from 
                            officers in the line of the Navy.
Sec. 503. Increase in age limit for deferral of mandatory retirement 
                            for up to 10 senior general and flag 
                            officers.
Sec. 504. Increased flexibility for voluntary retirement for military 
                            officers.
Sec. 505. Repeal of requirement that no more than 50 percent of active 
                            duty general and flag officers be in grades 
                            above brigadier general and rear admiral 
                            (lower half).
Sec. 506. Revision to terms for assistants to the Chairman of the Joint 
                            Chiefs of Staff for National Guard and 
                            Reserve matters.
Sec. 507. Succession for position of Chief, National Guard Bureau.
Sec. 508. Title of Vice Chief of the National Guard Bureau changed to 
                            Director of the Joint Staff of the National 
                            Guard Bureau. 
Sec. 509. Two-year extension of authority to waive requirement that 
                            Reserve chiefs and National Guard Directors 
                            have significant joint duty experience.
Sec. 510. Repeal of distribution requirements for Naval Reserve flag 
                            officers.

           Subtitle B--Other Officer Personnel Policy Matters

Sec. 511. Transition of active-duty list officer force to all regular 
                            status.
Sec. 512. Mandatory retention on active duty to qualify for retirement 
                            pay.
Sec. 513. Distribution in grade of Marine Corps Reserve officers in an 
                            active status in grades below brigadier 
                            general
Sec. 514. Tuition assistance for officers.

                 Subtitle C--Reserve Component Matters

Sec. 521. Revision to statutory purpose of the reserve components.
Sec. 522. Improved access to reserve component members for enhanced 
                            training.
Sec. 523. Status under disability retirement system for reserve members 
                            released from active duty due to inability 
                            to perform within 30 days of call to active 
                            duty.
Sec. 524. Federal civil service military leave for Reserve and National 
                            Guard civilian technicians.
Sec. 525. Expanded educational assistance authority for officers 
                            commissioned through ROTC program at 
                            military junior colleges.
Sec. 526. Effect of appointment or commission as officer on eligibility 
                            for Selected Reserve education loan 
                            repayment program for enlisted members.
Sec. 527. Number of Starbase academies in a State.
Sec. 528. Comptroller General assessment of integration of active and 
                            reserve components of the Navy.
Sec. 529. Operational activities conducted by the National Guard under 
                            authority of title 32.
Sec. 530. Army program for assignment of active component advisers to 
                            units of the Selected Reserve.

                  Subtitle D--Joint Officer Management

Sec. 531. Strategic plan to link joint officer development to overall 
                            missions and goals of Department of 
                            Defense.
Sec. 532. Joint requirements for promotion to flag or general officer 
                            grade.
Sec. 533. Clarification of tours of duty qualifying as a joint duty 
                            assignment.
Sec. 534. Reserve joint special officer qualification requirements.

              Subtitle E--Professional Military Education

Sec. 541. Improvement to professional military education in the 
                            Department of Defense.
Sec. 542. Ribbons to recognize completion of joint professional 
                            military education.
Sec. 543. Increase in number of private-sector civilians who may be 
                            enrolled for instruction at National 
                            Defense University.
Sec. 544. Requirement for completion of Phase I joint professional 
                            military education before promotion to 
                            colonel or Navy captain.

            Subtitle F--Other Education and Training Matters

Sec. 551. College First delayed enlistment program.
Sec. 552. Standardization of authority to confer degrees on graduates 
                            of Community College of the Air Force with 
                            authority for other schools of Air 
                            University.
Sec. 553. Change in titles of heads of the Naval Postgraduate School.
Sec. 554. Increase from two years to three years in period for which 
                            educational leave of absence may be 
                            authorized.
Sec. 555. Correction to disparate treatment of disabilities sustained 
                            during accession training.
Sec. 556. Prayer at military service academy activities.
Sec. 557. Revision to conditions on service of officers as service 
                            academy superintendents.
Sec. 558. Codification of prohibition on imposition of certain charges 
                            and fees at the service academies.
Sec. 559. Qualifications of the dean of the faculty of United States 
                            Air Force Academy.

     Subtitle G--Medals and Decorations and Special Promotions and 
                              Appointments

Sec. 561. Separate military campaign medals to recognize service in 
                            Operation Enduring Freedom and service in 
                            Operation Iraqi Freedom.
Sec. 562. Eligibility of all uniformed services personnel for National 
                            Defense Service Medal.
Sec. 563. Authority to appoint Brigadier General Charles E. Yeager, 
                            United States Air Force (retired), to the 
                            grade of major general on the retired list.
Sec. 564. Posthumous commission of William Mitchell in the grade of 
                            major general in the Army.

                  Subtitle H--Military Justice Matters

Sec. 571. Review on how sexual offenses are covered by Uniform Code of 
                            Military Justice.
Sec. 572. Service time not lost when confined in connection with trial 
                            if confinement excused as unavoidable.
Sec. 573. Clarification of authority of military legal assistance 
                            counsel to provide military legal 
                            assistance without regard to licensing 
                            requirements.

           Subtitle I--Administrative and Management Matters

Sec. 581. Three-year extension of limitation on reductions of personnel 
                            of agencies responsible for review and 
                            correction of military records.
Sec. 582. Staffing and funding for Defense Prisoner of War/Missing 
                            Personnel office (DPMO).
Sec. 583. Permanent ID cards for retiree dependents age 70 and older.
Sec. 584. Authority to provide civilian clothing to members traveling 
                            in connection with medical evacuation.
Sec. 585. Authority to accept donation of frequent traveler miles, 
                            credits, and tickets to facilitate rest and 
                            recuperation travel of deployed members of 
                            the Armed Forces and their families.
Sec. 586. Limitation on amendment or cancellation of Department of 
                            Defense directive relating to reasonable 
                            access to military installations for 
                            certain personal commercial solicitation.
Sec. 587. Annual identification of reasons for discharges from the 
                            Armed Forces during preceding fiscal year.
Sec. 588. Authority for Federal recognition of National Guard 
                            commissioned officers appointed from former 
                            Coast Guard personnel.
Sec. 589. Study of blended wing concept for the Air Force.
Sec. 590. Continuation of impact aid assistance on behalf of dependents 
                            of certain members despite change in status 
                            of member.

                       Subtitle J--Other Matters

Sec. 591. Employment preferences for spouses of certain Department of 
                            Defense civilian employees subject to 
                            relocation agreements.
Sec. 592. Repeal of requirement to conduct electronic voting 
                            demonstration project for the Federal 
                            election to be held in November 2004.
Sec. 593. Examination of sexual assault in the Armed Forces by the 
                            defense task force established to examine 
                            sexual harassment and violence at the 
                            military service academies.
Sec. 594. Renewal of pilot program for treating GED and home school 
                            diploma recipients as high school graduates 
                            for determinations of eligibility for 
                            enlistment.
Sec. 595. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 596. Senior Reserve Officer Training Corps and recruiter access at 
                            institutions of higher education.
Sec. 597. Reports on transformation milestones.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2005.
Sec. 602. Authority to provide family separation basic allowance for 
                            housing.
Sec. 603. Geographic basis for basic allowance for housing during short 
                            changes of station for professional 
                            military education or training.
Sec. 604. Immediate lump-sum reimbursement for unusual nonrecurring 
                            expenses incurred by members serving 
                            outside continental United States.
Sec. 605. Income replacement payments for Reserves experiencing 
                            extended and frequent mobilization for 
                            active duty service.
Sec. 606. Authority for certain members deployed in combat zones to 
                            receive limited advances on their future 
                            basic pay.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of bonus and special pay authorities.
Sec. 612. Reduction in required service commitment to receive accession 
                            bonus for registered nurses.
Sec. 613. Increase in maximum monthly rate authorized for hardship duty 
                            pay.
Sec. 614. Termination of assignment incentive pay for members placed on 
                            terminal leave.
Sec. 615. Consolidation of reenlistment and enlistment bonus 
                            authorities for regular and reserve 
                            components.
Sec. 616. Revision of authority to provide foreign language proficiency 
                            pay.
Sec. 617. Eligibility of reserve component members for critical skills 
                            retention bonus and expansion of authority 
                            to provide bonus.
Sec. 618. Eligibility of new reserve component officers for accession 
                            or affiliation bonus for officers in 
                            critical skills.
Sec. 619. Eligibility of reserve component members for incentive bonus 
                            for conversion to military occupational 
                            specialty to ease personnel shortage.
Sec. 620. Availability of hazardous duty incentive pay for military 
                            firefighters.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Expansion of travel and transportation allowances to assist 
                            survivors of a deceased member to attend 
                            burial ceremony of the member.
Sec. 632. Transportation of family members incident to the serious 
                            illness or injury of members of the 
                            uniformed services.
Sec. 633. Reimbursement of members for certain lodging costs incurred 
                            in connection with student dependent 
                            travel.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Computation of benefits under Survivor Benefit Plan for 
                            surviving spouses over age 62.
Sec. 642. Open enrollment period for Survivor Benefit Plan commencing 
                            October 1, 2005.
Sec. 643. Source of funds for Survivor Benefit Plan annuities for 
                            Department of Defense beneficiaries over 
                            age 62.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Consolidation and reorganization of legislative provisions 
                            regarding defense commissary system and 
                            exchanges and other morale, welfare, and 
                            recreation activities.
Sec. 652. Consistent State treatment of Department of Defense 
                            Nonappropriated Fund Health Benefits 
                            Program.
Sec. 653. Cooperation and assistance for qualified scouting 
                            organizations serving dependents of members 
                            of the Armed Forces and civilian employees 
                            overseas.

                       Subtitle F--Other Matters

Sec. 661. Repeal of requirement that members entitled to basic 
                            allowance for subsistence pay subsistence 
                            charges while hospitalized.
Sec. 662. Clarification of education loans qualifying for education 
                            loan repayment program for reserve 
                            component health professions officers.
Sec. 663. Survey and analysis of effect of extended and frequent 
                            mobilization of Reservists for active duty 
                            service on Reservist income.

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. Demonstration project for TRICARE coverage for Ready Reserve 
                            members.
Sec. 702. Comptroller General report on the cost and feasibility of 
                            providing private health insurance stipends 
                            for members of the Ready Reserves.
Sec. 703. Improvement of medical services for activated members of the 
                            Ready Reserve and their families.
Sec. 704. Modification of waiver of certain deductibles under TRICARE 
                            program.
Sec. 705. Authority for payment by United States of additional amounts 
                            billed by health care providers to 
                            activated Reserve members.
Sec. 706. Extension of transitional health care benefits after 
                            separation from active duty.

                Subtitle B--Other Benefits Improvements

Sec. 711. Coverage of certain young children under TRICARE dental 
                            program.
Sec. 712. Comptroller General report on provision of health and support 
                            services for exceptional family member 
                            program enrollees.
Sec. 713. Exceptional eligibility for TRICARE prime remote.
Sec. 714. Transition to home health care benefit under sub-acute care 
                            program.
Sec. 715. Requirement relating to prescription drug benefits for 
                            medicare-eligible enrollees under defense 
                            health care plans.
Sec. 716. Professional accreditation of military dentists.
Sec. 717. Addition of certain unremarried former spouses to persons 
                            eligible for dental insurance plan of 
                            retirees of the uniformed services.
Sec. 718. Waiver of collection of payments due from certain persons 
                            unaware of loss of CHAMPUS eligibility.

           Subtitle C--Planning, Programming, and Management

Sec. 721. Pilot program for transformation of health care delivery.
Sec. 722. Study of provision of travel reimbursement to hospitals for 
                            certain military disability retirees.

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

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

Sec. 801. Rapid acquisition authority to respond to combat emergencies.
Sec. 802. Defense acquisition workforce changes.
Sec. 803. Limitation on task and delivery order contracts.
Sec. 804. Funding for contract cancellation ceilings for certain 
                            multiyear procurement contracts.
Sec. 805. Increased threshold for requiring contractors to provide 
                            specified employee information to 
                            cooperative agreement holders.
Sec. 806. Extension of authority for use of simplified acquisition 
                            procedures.
Sec. 807. Authority to adjust acquisition-related dollar thresholds for 
                            inflation.

      Subtitle B--United States Defense Industrial Base Provisions

Sec. 811. Defense trade reciprocity.
Sec. 812. Amendments to domestic source requirements.
Sec. 813. Three-year extension of restriction on acquisition of 
                            polyacrylonitrile (PAN) carbon fiber from 
                            foreign sources.
Sec. 814. Grant program for defense contractors to implement strategies 
                            to avoid outsourcing of jobs.
Sec. 815. Preference for domestic freight forwarding services.

                 Subtitle C--Other Acquisition Matters

Sec. 821. Sustainment and modernization plans for existing systems 
                            while replacement systems are under 
                            development.
Sec. 822. Review and demonstration project relating to contractor 
                            employees. 
Sec. 823. Defense acquisition workforce limitation and reports.
Sec. 824. Provision of information to Congress to enhance transparency 
                            in contracting.

      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. Transfer of Center for the Study of Chinese Military Affairs 
                            from National Defense University to United 
                            States-China Economic and Security Review 
                            Commission.
Sec. 903. Transfer to Secretary of the Army of responsibility for 
                            Assembled Chemical Weapons Alternatives 
                            Program.
Sec. 904. Modification of obligated service requirements under National 
                            Security Education Program.
Sec. 905. Change of membership of certain councils.
Sec. 906. Actions to prevent the abuse of detainees.
Sec. 907. Responses to congressional inquiries.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Budget justification documents for operation and 
                            maintenance.
Sec. 1003. Retention of fees from intellectual property licenses.
Sec. 1004. Authority to waive claims of the United States when amounts 
                            recoverable are less than costs of 
                            collection.
Sec. 1005. Repeal of funding restrictions concerning development of 
                            medical countermeasures against biological 
                            warfare threats.
Sec. 1006. Report on budgeting for exchange rates for foreign currency 
                            fluctuations.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority for award of contracts for ship dismantling on 
                            net-cost basis.
Sec. 1012. Independent study to assess cost effectiveness of the Navy 
                            ship construction program.
Sec. 1013. Authority to transfer specified former naval vessels to 
                            certain foreign countries.
Sec. 1014. Limitation on leasing of foreign-built vessels.

                   Subtitle C--Sunken Military Craft

Sec. 1021. Preservation of title to sunken military craft and 
                            associated contents.
Sec. 1022. Prohibitions.
Sec. 1023. Permits.
Sec. 1024. Penalties.
Sec. 1025. Liability for damages.
Sec. 1026. Relationship to other laws.
Sec. 1027. Encouragement of agreements with foreign countries.
Sec. 1028. Definitions.

                  Subtitle D--Counter-Drug Activities

Sec. 1031. Continuation of authority to use Department of Defense funds 
                            for unified counterdrug and 
                            counterterrorism campaign in Colombia.
Sec. 1032. Limitation on number of United States military personnel in 
                            Colombia.

                          Subtitle E--Reports

Sec. 1041. Study of continued requirement for two-crew manning for 
                            ballistic missile submarines.
Sec. 1042. Study of effect on defense industrial base of elimination of 
                            United States domestic firearms 
                            manufacturing base.
Sec. 1043. Study of extent and quality of training provided to members 
                            of the Armed Services to prepare for post-
                            conflict operations.

                      Subtitle F--Security Matters

Sec. 1051. Use of National Driver Register for personnel security 
                            investigations and determinations.
Sec. 1052. Standards for disqualification from eligibility for 
                            Department of Defense security clearance .

               Subtitle G--Transportation-Related Matters

Sec. 1061. Use of military aircraft to transport mail to and from 
                            overseas locations.
Sec. 1062. Reorganization and clarification of certain provisions 
                            relating to control and supervision of 
                            transportation within the Department of 
                            Defense.
Sec. 1063. Determination of whether private air carriers are controlled 
                            by United States citizens for purposes of 
                            eligibility for Government contracts for 
                            transportation of passengers or supplies.
Sec. 1064. Evaluation of whether to prohibit certain offers for 
                            transportation of security-sensitive cargo.

                       Subtitle H--Other Matters

Sec. 1071. Two-year extension of authority of the Secretary of Defense 
                            to engage in commercial activities as 
                            security for intelligence collection 
                            activities abroad.
Sec. 1072. Assistance for study of feasibility of biennial 
                            international air trade show in the United 
                            States and for initial implementation.
Sec. 1073. Technical and clerical amendments.
Sec. 1074. Commission on the long-term implementation of the new 
                            strategic posture of the United States.
Sec. 1075. Liability protection for certain Department of Defense 
                            volunteers working in the maritime 
                            environment.
Sec. 1076. Transfer of historic F3A-1 Brewster Corsair aircraft.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Payment of Federal employee health benefit premiums for 
                            mobilized Federal employees.
Sec. 1102. Foreign language proficiency pay.
Sec. 1103. Pay parity for civilian intelligence personnel.
Sec. 1104. Pay parity for senior executives in nonappropriated fund 
                            instrumentalities.
Sec. 1105. Prohibition of unauthorized wearing or use of civilian 
                            medals or decorations.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

 Subtitle A--Matters Relating to Iraq, Afghanistan, and Global War on 
                               Terrorism

Sec. 1201. Documentation of conditions in Iraq under former dictatorial 
                            government as part of transition to post-
                            dictatorial government.
Sec. 1202. Support of military operations to combat terrorism.
Sec. 1203. Commanders' Emergency Response Program.
Sec. 1204. Status of Iraqi security forces.
Sec. 1205. Guidance and report required on contractors supporting 
                            deployed forces in Iraq.
Sec. 1206. Findings and sense of Congress concerning Army Specialist 
                            Joseph Darby.

                       Subtitle B--Other Matters

Sec. 1211. Assignment of allied naval personnel to submarine safety 
                            programs.
Sec. 1212. Expansion of entities of the People's Republic of China 
                            subject to certain presidential authorities 
                            when operating in the United States.
Sec. 1213. Report by President on Global Peace Operations Initiative.
Sec. 1214. Procurement sanctions against foreign persons that transfer 
                            certain defense articles and services to 
                            the People's Republic of China.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1302. Funding allocations.
Sec. 1303. Temporary authority to waive limitation on funding for 
                            chemical weapons destruction facility in 
                            Russia.

       TITLE XIV--EXPORT CONTROL AND COUNTERPROLIFERATION MATTERS

                      Subtitle A--Export Controls

Sec. 1401. Definitions under Arms Export Control Act.
Sec. 1402. Exemption from licensing requirements for export of 
                            significant military equipment.
Sec. 1403. Cooperative projects with friendly foreign countries.
Sec. 1404. Licensing requirement for export of militarily critical 
                            technologies.
Sec. 1405. Control of exports of United States weapons technology to 
                            the People's Republic of China.
Sec. 1406. Strengthening international export controls.

                Subtitle B--Counterproliferation Matters

Sec. 1411. Defense international counterproliferation programs.
Sec. 1412. Defense counterproliferation fellowship program.

  Subtitle C--Initiatives Relating to Countries of Former Soviet Union

Sec. 1421. Silk Road initiative.
Sec. 1422. Teller-Kurchatov nonproliferation fellowships.
Sec. 1423. Collaboration to reduce the risks of a launch of Russian 
                            nuclear weapons.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose.

              Subtitle A--Authorization of Appropriations

Sec. 1511. Army procurement.
Sec. 1512. Navy and Marine Corps procurement.
Sec. 1513. Air Force procurement.
Sec. 1514. Defense-wide activities procurement.
Sec. 1515. Operation and maintenance.
Sec. 1516. Defense health program.
Sec. 1517. Military personnel.
Sec. 1518. Treatment as additional authorizations.
Sec. 1519. Transfer authority.
Sec. 1520. Designation of emergency authorizations.

                    Subtitle B--Personnel Provisions

Sec. 1531. Three-year increase in active Army strength levels.
Sec. 1532. Three-year increase in active Marine Corps strength levels.
Sec. 1533. Extension of increased rates for imminent danger pay and 
                            family separation allowance.

                Subtitle C--Financial Management Matters

Sec. 1541. Revised funding methodology for military retiree health care 
                            benefits.

            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 
                            2004 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
                            2003 project.

                            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. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. 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 authorizations of certain fiscal year 2002 
                            projects.
Sec. 2703. Extension and renewal of authorizations of certain fiscal 
                            year 2001 projects.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Increase in certain thresholds for carrying out unspecified 
                            minor military construction projects.
Sec. 2802. Assessment of vulnerability of military installations to 
                            terrorist attack and annual report on 
                            military construction requirements related 
                            to antiterrorism and force protection.
Sec. 2803. Change in threshold for congressional notification regarding 
                            use of operation and maintenance funds for 
                            facility repair.
Sec. 2804. Reporting requirements regarding military family housing 
                            requirements for general officers and flag 
                            officers.
Sec. 2805. Congressional notification of deviations from authorized 
                            cost variations for military construction 
                            projects and military family housing 
                            projects.
Sec. 2806. Repeal of limitation on use of alternative authority for 
                            acquisition and improvement of military 
                            family housing.
Sec. 2807. Temporary authority to accelerate design efforts for 
                            military construction projects carried out 
                            using design-build selection procedures.
Sec. 2808. Exchange or sale of reserve component facilities to acquire 
                            replacement facilities.
Sec. 2809. One-year extension of temporary, limited authority to use 
                            operation and maintenance funds for 
                            construction projects outside the United 
                            States.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in certain thresholds for reporting real property 
                            transactions.
Sec. 2812. Reorganization of existing administrative provisions 
                            relating to real property transactions.
Sec. 2813. Treatment of money rentals from golf course at Rock Island 
                            Arsenal, Illinois.
Sec. 2814. Number of contracts authorized department-wide under 
                            demonstration program on reduction in long-
                            term facility maintenance costs.
Sec. 2815. Repeal of Commission on Review of Overseas Military Facility 
                            Structure of the United States.
Sec. 2816. Designation of Airmen Leadership School at Luke Air Force 
                            Base, Arizona, in honor of John J. Rhodes, 
                            a former minority leader of the House of 
                            Representatives.
Sec. 2817. Elimination of reversionary interests clouding United States 
                            title to property used as Navy homeports.
Sec. 2818. Report on real property disposal at Marine Corps Air 
                            Station, El Toro, California.

                Subtitle C--Base Closure and Realignment

Sec. 2821. Two-year postponement of 2005 base closure and realignment 
                            round and submission of reports regarding 
                            future infrastructure requirements for the 
                            armed forces.
Sec. 2822. Establishment of specific deadline for submission of 
                            revisions to force-structure plan and 
                            infrastructure inventory for next base 
                            closure round.
Sec. 2823. Specification of final selection criteria for next base 
                            closure round.
Sec. 2824. Requirement for unanimous vote of Defense Base Closure and 
                            Realignment Commission to add to or 
                            otherwise expand closure and realignment 
                            recommendations made by Secretary of 
                            Defense.
Sec. 2825. Adherence to certain authorities on preservation of military 
                            depot capabilities during any subsequent 
                            round of base closures and realignments.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Transfer of administrative jurisdiction, Defense Supply 
                            Center, Columbus, Ohio.
Sec. 2832. Land conveyance, Fort Hood, Texas.
Sec. 2833. Land conveyance, Army National Guard Facility, Seattle, 
                            Washington.

                       Part II--Navy Conveyances

Sec. 2841. Transfer of jurisdiction, Nebraska Avenue Naval Complex, 
                            District of Columbia.
Sec. 2842. Land conveyance, Navy property, former Fort Sheridan, 
                            Illinois.
Sec. 2843. Land exchange, Naval Air Station, Patuxent River, Maryland.

                    Part III--Air Force Conveyances

Sec. 2851. Land exchange, Maxwell Air Force Base, Alabama.

 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.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Extension of authority for appointment of certain 
                            scientific, engineering, and technical 
                            personnel.
Sec. 3112. Requirements for baseline of projects under Facilities and 
                            Infrastructure Recapitalization Program.

                       Subtitle C--Other Matters

Sec. 3131. Transfers and reprogrammings of National Nuclear Security 
                            Administration funds.
Sec. 3132. National Academy of Sciences study on management by 
                            Department of Energy of high-level 
                            radioactive waste.
Sec. 3133. Contract to review Waste Isolation Pilot Plant, New Mexico.

          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. Relaxation of quantity restrictions on disposal of manganese 
                            ferro in National Defense Stockpile.
Sec. 3303. Revision of earlier authority to dispose of certain 
                            materials in National Defense Stockpile.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for Maritime Administration.
Sec. 3502. Extension of authority to provide war risk insurance for 
                            merchant marine vessels.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

    For purposes of this Act, the term ``congressional defense 
committees'' has the meaning given that term in section 101(a)(16) of 
title 10, United States Code.

            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 2005 
for procurement for the Army as follows:
            (1) For aircraft, $2,805,941,000.
            (2) For missiles, $1,414,321,000.
            (3) For weapons and tracked combat vehicles, 
        $1,739,695,000.
            (4) For ammunition, $1,729,402,000.
            (5) For other procurement, $4,313,640,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2005 for procurement for the Navy as follows:
            (1) For aircraft, $8,912,667,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,253,454,000.
            (3) For ammunition, $870,840,000.
            (4) For shipbuilding and conversion, $10,120,027,000.
            (5) For other procurement, $4,876,725,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2005 for procurement for the Marine Corps in the amount 
of $1,315,103,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for procurement for the Air Force as follows:
            (1) For aircraft, $13,649,174,000.
            (2) For ammunition, $1,396,457,000.
            (3) For missiles, $4,638,313,000.
            (4) For other procurement, $13,229,257,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for Defense-wide procurement in the amount of $2,950,702,000.

                      Subtitle B--Program Matters

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR THE LIGHT-WEIGHT 155-
              MILLIMETER HOWITZER PROGRAM.

    The Secretary of the Army and the Secretary of the Navy may, in 
accordance with section 2306b of title 10, United States Code, jointly 
enter into a multiyear contract, beginning with the fiscal year 2005 
program year, for procurement of the light-weight 155-millimeter 
howitzer.

SEC. 112. DDG-51 MODERNIZATION PROGRAM.

    (a) Acceleration of Modernization Program.--The Secretary of the 
Navy shall accelerate the program for in-service modernization of the 
DDG-51 class of destroyers. As part of that modernization program, the 
Secretary shall include additional emphasis on determining a means to 
reduce crew size from approximately 300 to about 200.
    (b) Report.--Not later than March 31, 2005, the Secretary of the 
Navy shall submit to the congressional defense committees a report on 
the steps taken as of that date to carry out subsection (a).

SEC. 113. REPEAL OF AUTHORITY FOR PILOT PROGRAM FOR FLEXIBLE FUNDING OF 
              CRUISER CONVERSIONS AND OVERHAULS.

    Section 126 of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1410; 10 U.S.C. 7291 note) is 
repealed.

SEC. 114. FORCE PROTECTION FOR ASYMMETRIC THREAT ENVIRONMENT.

    (a) Requirement for Asymmetric Threat Assessment.--(1) The 
Secretary of Defense shall require the Secretary of each military 
department to perform an assessment of the survivability and 
suitability against asymmetrical threats of each of the following 
military systems under the jurisdiction of that Secretary:
            (A) Each manned ground system or war-fighter survivability 
        system that may be required to deploy in an asymmetrical threat 
        environment.
            (B) Each manned airborne system that may be required to 
        deploy in an asymmetrical threat environment.
    (2) For each system covered by paragraph (1), the Secretary 
concerned shall establish the key performance parameters for 
survivability and suitability against asymmetric threats.
    (3) The assessments under paragraph (1) shall be completed not 
later than July 1, 2005.
    (4) The Secretary of each military department shall review annually 
the assessments under paragraph (1) conducted by that Secretary to 
ensure that the assessments remains relevant to the asymmetric threat 
environment.
    (b) Requirement for Force Protection.--(1) The Secretary of Defense 
shall require the Secretary of each military department, for each 
system covered by subsection (a)(1) under that Secretary's 
jurisdiction, either to--
            (A) take each of the force protection or survivability 
        steps specified in paragraph (2); or
            (B) restrict the system from deployment to an asymmetrical 
        threat environment.
    (2) The force protection or survivability steps for a system 
covered by subsection (a)(1) are the following:
            (A) Development of force protection or survivability 
        enhancements for the system that meet the key performance 
        parameters established for that system under subsection (a)(2).
            (B) Budgeting for in-service modification programs for the 
        system to provide force protection and survivability 
        enhancements developed under subparagraph (A).
            (C) Development of tactics, techniques, and procedures for 
        the system to maximize force protection and survivability.
    (c) Waiver.--The Secretary of Defense may waive the applicability 
of subsection (b) to a system covered by subsection (a)(1) if the 
Secretary determines that, but for such a waiver, the Department would 
be unable to meet national security objectives. Whenever the Secretary 
makes such a determination and authorizes such a waiver, the Secretary 
shall submit notice of such waiver and of the Secretary's determination 
and the reasons therefor in writing to the congressional defense 
committees.
    (d) Requirement for New Development Military Acquisition 
Programs.--The Secretary of Defense shall require the Secretary of each 
military department, for each military acquisition program that has not 
entered low-rate initial production as of the date of the enactment of 
this Act, to include in the development of that program--
            (1) as part of the system requirements development, 
        assessments of war-fighter survivability and of system 
        suitability against asymmetrical threats; and
            (2) as part of the documentation of system requirements, 
        requirements for key performance parameters for force 
        protection and survivability.
    (e) Asymmetrical Threat Environment.--For purposes of this section, 
the term ``asymmetrical threat environment'', with respect to a manned 
system, means a security, stability, or peacekeeping operation in which 
the system is deployed or any other such environment in which an 
asymmetrical threat may exist (or, in the case of a manned airborne 
system, another such environment in which airborne operations would 
subject the system to a ground-based asymmetrical threat).

SEC. 115. ALLOCATION OF EQUIPMENT AUTHORIZED BY THIS TITLE TO BE MADE 
              ON BASIS OF UNITS DEPLOYED OR PREPARING TO DEPLOY.

    The Secretary of Defense shall provide that, in the allocation to 
operational units of equipment acquired using funds authorized to be 
appropriated by this title, priority shall be given to units that are 
deployed to, or preparing to deploy to, Operation Iraqi Freedom or 
Operation Enduring Freedom, regardless of the status of those units as 
active, Guard, or reserve component units.

SEC. 116. MULTIYEAR PROCUREMENT AUTHORITY FOR KC-767 TANKER AIRCRAFT 
              ACQUISITION PROGRAM.

    (a) Multiyear Procurement Authority.--(1) The Secretary of the Air 
Force 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 80 KC-767 tanker aircraft.
    (2) Notwithstanding subsection (k) of section 2306b of title 10, 
United States Code, a contract under this subsection may be for any 
period not in excess of eight program years.
    (b) Limitation.--Subsection (b) of section 135 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 
Stat. 1413; 10 U.S.C. 2401a note) is repealed.
    (c) Relationship to Previous Law.--The multiyear procurement 
authority in subsection (a) may not be executed under section 135 of 
the National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136; 117 Stat. 1413; 10 U.S.C. 2401a note) or under section 8159 of 
the Department of Defense Appropriations Act, 2002 (division A of 
Public Law 107-117).

SEC. 117. OTHER MATTERS RELATING TO KC-767 TANKER AIRCRAFT ACQUISITION 
              PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) aerial refueling capability for the Armed Forces is a 
        critical combat force multiplier;
            (2) the Nation must expeditiously proceed with a program to 
        replace the Air Force's aging fleet of aerial refueling 
        tankers;
            (3) in pursuing an aerial refueling tanker program, the 
        Department of Defense should take full advantage of the United 
        States commercial aircraft production base; and
            (4) anyone suspected of involvement in improper or illegal 
        activities associated with such a program should be 
        investigated and, if warranted, prosecuted to the fullest 
        extent of the law.
    (b) Requirement for Renegotiation of Contract.--The Secretary of 
the Air Force shall enter into one or more contracts for the Air Force 
multiyear tanker aircraft program, provided that any such contract is 
negotiated after June 1, 2004.
    (c) Review by Outside Panel.--(1) The Secretary of Defense shall 
establish a panel of experts from outside the Department of Defense to 
review any proposed contract for the multiyear tanker aircraft program. 
The panel shall be comprised of individuals who, by reason of 
education, training, or experience, have expertise relevant to the 
evaluation of a proposed contract for the lease or procurement of 
aircraft under that program.
    (2) The panel shall review any proposed contract for the multiyear 
tanker aircraft program to assess, and assist the Secretary of the Air 
Force in determining, whether the Air Force would under that contract 
obtain the best value for funds expended. The panel shall serve in 
whatever manner the Secretary of Defense determines is appropriate to 
provide an independent review of any such proposed contract. The 
Secretary shall provide for the panel to make a determination of, and 
to advise the Secretary of the Air Force on, what would constitute a 
fair and reasonable contract for that program.
    (d) Report.--The Secretary of Defense shall provide for the panel 
established under subsection (c) to submit a report providing the 
results of its review to the Secretary of the Air Force and the 
congressional defense committees.
    (e) Multiyear Tanker Aircraft Program Defined.--In this section, 
the term ``multiyear tanker aircraft program'' means the program for--
            (1) lease of no more than 20 aerial refueling aircraft for 
        the Air Force authorized under section 8159 of the Department 
        of Defense Appropriations Act, 2002 (division A of Public Law 
        107-117; 115 Stat. 2284), subject to section 135(a) of the 
        National Defense Authorization Act for Fiscal Year 2004 (Public 
        Law 108-136; 117 Stat. 1413); and
            (2) procurement of no more than 80 KC-767 tanker aircraft 
        for which a multiyear procurement contract is authorized by 
        section 116(a) of this Act.
    (f) Interpretation.--Section 134 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1412) is amended by adding at the end the following new subsection:
    ``(c) Interpretation.--Nothing in subsection (b) or section 1111 of 
the Emergency Supplemental Appropriations Act for Defense and for the 
Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106; 117 
Stat. 1215) is intended to prohibit the Secretary of the Air Force from 
executing the program described in section 135(a) of this Act and 
section 116 of the National Defense Authorization Act for Fiscal Year 
2005.''.

         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 
2005 for the use of the Department of Defense for research, 
development, test, and evaluation as follows:
            (1) For the Army, $9,478,164,000.
            (2) For the Navy, $16,047,841,000.
            (3) For the Air Force, $21,527,967,000.
            (4) For Defense-wide activities, $21,074,389,000, of which 
        $305,135,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2005.--Of the amounts authorized to be appropriated 
by section 201, $11,067,698,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1, 6.2, or 6.3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY.

    (a) Program Strategy Required.--The Secretary of the Army shall 
establish and implement a program strategy for the Future Combat 
Systems acquisition program of the Army. The purpose of the program 
strategy shall be to provide an effective, affordable, producible, and 
supportable military capability with a realistic schedule and a robust 
cost estimate.
    (b) Elements of Program Strategy.--The program strategy shall--
            (1) require the release, at the design readiness review, of 
        not less than 90 percent of engineering drawings for the 
        building of prototypes;
            (2) require, before facilitating production or contracting 
        for items with long lead times, that an acceptable 
        demonstration be carried out of the performance of the 
        information network, including the performance of the Joint 
        Tactical Radio System and the Warfighter Information Network-
        Tactical; and
            (3) require, before the initial production decision, that 
        an acceptable demonstration be carried out of the collective 
        capability of each system to meet system-of-systems 
        requirements when integrated with the information network.
    (c) Required Submissions to Congress.--Before convening the 
Milestone B update for the Future Combat Systems acquisition program 
required by the Future Combat Systems acquisition decision memorandum, 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics shall submit to Congress each of the following documents:
            (1) The independent cost estimate with respect to the 
        program prepared by the cost analysis improvement group of the 
        Office of the Secretary of Defense.
            (2) A report, prepared by an independent panel, on the 
        maturity levels of the critical technologies with respect to 
        the program, including an assessment of those technologies that 
        are likely to require a decision to use an alternative 
        approach.
            (3) A report, prepared by the chief information officer of 
        the Army, describing--
                    (A) the status of the development and integration 
                of the network and the command, control, computers, 
                communications, intelligence, surveillance, and 
                reconnaissance components; and
                    (B) the progress made toward meeting the 
                requirements for network-centric capabilities as set 
                forth by such officer.
            (4) A report identifying the key performance parameters 
        with respect to the program, with all objectives and thresholds 
        quantified, together with the supporting analytical rationale.
    (d) Limitation on Funding.--(1) Except as provided in paragraph 
(2), the Secretary of the Army may not obligate, from amounts made 
available for fiscal year 2005, more than $2,200,000,000 for the Future 
Combat Systems acquisition program.
    (2) The limitation in paragraph (1) shall not apply after the 
Secretary of the Army submits to Congress the Secretary's certification 
that the Secretary has established and implemented the program strategy 
required by subsection (a).

SEC. 212. COLLABORATIVE PROGRAM FOR RESEARCH AND DEVELOPMENT OF VACUUM 
              ELECTRONICS TECHNOLOGIES.

    (a) Program Required.--The Secretary of Defense shall establish a 
program for research and development in advanced vacuum electronics to 
meet the requirements of the Department of Defense electromagnetic 
systems.
    (b) Description of Program.--The program under subsection (a) shall 
be carried out collaboratively by the Director of Defense Research and 
Engineering, the Secretary of the Navy, the Secretary of the Air Force, 
the Secretary of the Army, and other appropriate elements of the 
Department of Defense. The program shall include the following 
activities:
            (1) Activities needed for development and maturation of 
        advanced vacuum electronics technologies needed to meet the 
        requirements of the Department of Defense.
            (2) Identification of legacy and developmental 
        electromagnetic systems for use of advanced vacuum electronics 
        under the program.
    (c) Report.--Not later than January 31, 2005, the Director of 
Defense Research and Engineering shall submit to the congressional 
defense committees a report on the implementation of the program under 
subsection (a). The report shall include the following:
            (1) Identification of the officer to have lead 
        responsibility for carrying out the program.
            (2) A description of the management plan for the program 
        and any agreements relating to that plan.
            (3) A schedule for the program.
            (4) Identification of the funding required for fiscal year 
        2006 and for the future-years defense program to carry out the 
        program.
            (5) A list of program capability goals and objectives.
    (d) Funding.--Of the funds authorized to be appropriated in section 
201--
            (1) $13,500,000 shall be available in program element 
        62771N for applied research in vacuum electronics; and
            (2) $5,000,000 shall be available in program element 63771N 
        for advanced technology development in vacuum electronics.

SEC. 213. ANNUAL COMPTROLLER GENERAL REPORT ON JOINT STRIKE FIGHTER 
              PROGRAM.

    (a) Annual GAO Review.--The Comptroller General shall conduct an 
annual review of the Joint Strike Fighter aircraft program and shall, 
not later than March 15 of each year, submit to Congress a report on 
the results of the most recent review. With each such report, the 
Comptroller General shall submit a certification as to whether the 
Comptroller General has had access to sufficient information to enable 
the Comptroller General to make informed judgments on the matters 
covered by the report.
    (b) Matters to Be Included.--Each report on the Joint Strike 
Fighter aircraft program under subsection (a) shall include the 
following with respect to system development and demonstration under 
the program:
            (1) The extent to which such system development and 
        demonstration is meeting established goals, including the goals 
        established for performance, cost, and schedule.
            (2) The plan for such system development and demonstration 
        (leading to production) for the fiscal year that begins in the 
        year in which the report is submitted.
            (3) The Comptroller General's conclusion regarding whether 
        such system development and demonstration (leading to 
        production) is likely to be completed at a total cost not in 
        excess of the amount specified (or to be specified) for such 
        purpose in the Selected Acquisition report for the Joint Strike 
        Fighter aircraft program under section 2432 of title 10, United 
        States Code, for the first quarter of the fiscal year during 
        which the report of the Comptroller General is submitted.
    (c) Requirement to Support Annual GAO Review.--The Secretary of 
Defense and the prime contractor for the Joint Strike Fighter aircraft 
program shall provide to the Comptroller General such information on 
that program as the Comptroller General considers necessary to carry 
out the responsibilities of the Comptroller General under this section, 
including such information as is necessary for the purposes of 
subsection (b)(3).
    (d) Termination.--No report is required under this section after 
the report that, under subsection (a), is required to be submitted not 
later than March 15, 2009.

SEC. 214. AMOUNTS FOR UNITED STATES JOINT FORCES COMMAND TO BE DERIVED 
              ONLY FROM DEFENSE-WIDE AMOUNTS.

    (a) In General.--Chapter 9 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 232. United States Joint Forces Command: amounts for research, 
              development, test, and evaluation to be derived only from 
              Defense-wide amounts
    ``(a) Requirement.--Amounts for research, development, test, and 
evaluation for the United States Joint Forces Command shall be derived 
only from amounts made available to the Department of Defense for 
Defense-wide research, development, test, and evaluation.
    ``(b) Separate Display in Budget.--Any amount in the budget 
submitted to Congress under section 1105 of title 31 for any fiscal 
year for research, development, test, and evaluation for the United 
States Joint Forces Command shall be set forth under the account of the 
Department of Defense for Defense-wide research, development, test, and 
evaluation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``232. United States Joint Forces Command: amounts for research, 
                            development, test, and evaluation to be 
                            derived only from Defense-wide amounts.''.

SEC. 215. AUTHORITY OF DIRECTOR OF DEFENSE RESEARCH AND ENGINEERING TO 
              AWARD PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS.

    Section 2374a(a) of title 10, United States Code, is amended by 
striking ``acting through the Director of the Defense Advanced Research 
Projects Agency'' and inserting ``acting through the Director of 
Defense Research and Engineering''.

SEC. 216. SPACE BASED RADAR.

    (a) Limitation.--In carrying out the Space Based Radar program, the 
Secretary of Defense may not authorize that program to proceed into the 
system development and procurement phase referred to as Milestone B 
until the Secretary--
            (1) submits to the congressional defense committees, the 
        Permanent Select Committee on Intelligence of the House of 
        Representatives, and the Select Committee on Intelligence of 
        the Senate a report described in subsection (b); and
            (2) a period of 30 days has elapsed after the date on which 
        such report is submitted.
    (b) Report.--A report under this subsection is a report on the 
Space Based Radar program in which the Secretary of Defense sets forth 
the following with respect to that program:
            (1) A description of the technical system concept selected.
            (2) A description of the concept of operations associated 
        with the technical system concept selected.
            (3) An independent cost estimate for development and 
        procurement under the program.
            (4) The acquisition strategy for the program.

SEC. 217. MARK-54 TORPEDO PRODUCT IMPROVEMENT PROGRAM.

    Of the amount provided in section 201 for research, development, 
test, and evaluation for the Navy, $2,000,000 within the budget line 
designated as line 120 shall be available for the Mark-54 Torpedo 
Product Improvement Program.

                 Subtitle C--Ballistic Missile Defense

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    (a) Authority.--Funds described in subsection (b) may, upon 
approval by the Secretary of Defense, be used for the development and 
fielding of ballistic missile defense capabilities.
    (b) Covered Funds.--Subsection (a) applies to funds appropriated 
for fiscal year 2005 or fiscal year 2006 for research, development, 
test, and evaluation for the Missile Defense Agency.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SECTION 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
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, $25,838,611,000.
            (2) For the Navy, $29,523,490,000.
            (3) For the Marine Corps, $3,637,615,000.
            (4) For the Air Force, $27,143,566,000.
            (5) For Defense-wide activities, $17,317,406,000.
            (6) For the Army Reserve, $2,003,728,000.
            (7) For the Naval Reserve, $1,240,038,000.
            (8) For the Marine Corps Reserve, $188,696,000
            (9) For the Air Force Reserve, $2,226,790,000
            (10) For the Army National Guard, $4,425,686,000.
            (11) For the Air National Guard, $4,448,938,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $10,825,000.
            (13) For Environmental Restoration, Army, $400,948,000.
            (14) For Environmental Restoration, Navy, $266,820,000.
            (15) For Environmental Restoration, Air Force, 
        $397,368,000.
            (16) For Environmental Restoration, Defense-wide, 
        $23,684,000
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $216,516,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $59,000,000.
            (19) For Cooperative Threat Reduction programs, 
        $409,200,000.
            (20) For the Overseas Contingency Operations Transfer Fund, 
        $5,000,000.
            (21) For the Defense Industrial Base Capabilities Fund, 
        $50,000,000

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
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, $372,886,000.
            (2) For the National Defense Sealift Fund, $1,219,252,000.
            (3) For the Defense Working Capital Fund, Defense 
        Commissary, $1,175,000,000

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 2005 for 
expenses, not otherwise provided for, for the Defense Health Program, 
$17,811,586,000, of which--
            (1) $17,374,544,000 is for Operation and Maintenance;
            (2) $72,407,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $364,635,000 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 2005 for expenses, not otherwise provided for, for 
Chemical Agents and Munitions Destruction, Defense, $1,371,990,000, of 
which--
            (A) $1,138,801,000 is for Operation and Maintenance;
            (B) $154,209,000 is for Research, Development, Test, and 
        Evaluation; and
            (C) $78,980,000 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 2005 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
$852,697,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2005 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, $193,562,000, of which--
            (1) $191,362,000 is for Operation and Maintenance;
            (2) $2,100,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $100,000 is for Procurement.

SEC. 304. REIMBURSEMENT OF MEMBERS OF THE ARMED FORCES WHO PURCHASED 
              PROTECTIVE BODY ARMOR DURING SHORTAGE OF DEFENSE STOCKS 
              OF BODY ARMOR.

    (a) Reimbursement Authorized.--The Secretary of Defense may 
reimburse a member of the Armed Forces for the cost of protective body 
armor purchased by the member, or by another person on behalf of the 
member, for use by the member while deployed in connection with 
Operation Noble Eagle, Operation Enduring Freedom, or Operation Iraqi 
Freedom if the member was not issued protective body armor before the 
member became engaged in operations in areas or situations described in 
section 310(a)(2) of title 37, United States Code.
    (b) Duration of Authority.--Reimbursement may be provided under 
subsection (a) for protective body armor purchased during the period 
beginning on September 11, 2001, and ending on December 31, 2003. Not 
later than 60 days after the date of the enactment of this Act, the 
Secretary shall implement regulations to expedite the provision of such 
reimbursement.

                  Subtitle B--Environmental Provisions

SEC. 311. REPORT REGARDING ENCROACHMENT ISSUES AFFECTING UTAH TEST AND 
              TRAINING RANGE, UTAH.

    (a) Report Required.--The Secretary of the Air Force shall prepare 
a report that outlines current and anticipated encroachments on the use 
and utility of the special use airspace of the Utah Test and Training 
Range in the State of Utah, including encroachments brought about 
through actions of other Federal agencies. The Secretary shall include 
such recommendations as the Secretary considers appropriate regarding 
any legislative initiatives necessary to address encroachment problems 
identified by the Secretary in the report.
    (b) Submission of Report.--Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit the report to 
the Committee on Armed Services of the House of Representatives and the 
Committee on Armed Services of the Senate.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. SIMPLIFICATION OF ANNUAL REPORTING REQUIREMENTS CONCERNING 
              FUNDS EXPENDED FOR DEPOT MAINTENANCE AND REPAIR 
              WORKLOADS.

    Subsection (d) of section 2466 of title 10, United States Code, is 
amended to read as follows:
    ``(d) Annual Report and Review.--(1) Not later than April 1 of each 
year, the Secretary of Defense shall submit to Congress a report 
identifying, for each of the armed forces (other than the Coast Guard) 
and each Defense Agency, the percentage of the funds referred to in 
subsection (a) that was expended during the preceding fiscal year, and 
are projected to be expended in the current fiscal year and next fiscal 
year, for performance of depot-level maintenance and repair workloads 
by the public and private sectors.
    ``(2) Not later than 60 days after the date on which the Secretary 
submits a report under paragraph (1), the Comptroller General shall 
submit to Congress the Comptroller General's views on whether--
            ``(A) the Department of Defense has complied with the 
        requirements of subsection (a) during the preceding fiscal year 
        covered by the report; and
            ``(B) the expenditure projections for the current fiscal 
        year and next fiscal year are reasonable.''.

SEC. 322. REPEAL OF ANNUAL REPORTING REQUIREMENT CONCERNING MANAGEMENT 
              OF DEPOT EMPLOYEES.

    (a) Repeal.--Section 2472 of title 10, United States Code, is 
amended--
            (1) by striking ``(a) Prohibition on Management by End 
        Strength.--''; and
            (2) by striking subsection (b).
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2472. Prohibition on management of depot employees by end 
              strength''.
    (2) The table of sections at the beginning of chapter 146 of such 
title is amended by striking the item relating to section 2472 and 
inserting the following new item:

``2472. Prohibition on management of depot employees by end 
                            strength.''.

SEC. 323. PUBLIC-PRIVATE COMPETITION FOR WORK PERFORMED BY CIVILIAN 
              EMPLOYEES OF DEPARTMENT OF DEFENSE.

    (a) In General.--Section 2461(b) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(5)(A) A function of the Department of Defense performed by 10 or 
more civilian employees may not be converted, in whole or in part, to 
performance by a contractor unless, the conversion is based on the 
results of a public-private competition process that--
            ``(i) formally compares the cost of civilian employee 
        performance of the function with the costs of performance by a 
        contractor;
            ``(ii) creates an agency tender, including a most efficient 
        organization plan, in accordance with Office of Management and 
        Budget Circular A-76, as implemented on May 29, 2003;
            ``(iii) determines whether the submitted offers meet the 
        needs of the Department of Defense with respect to factors 
        other than cost, including quality and reliability;
            ``(iv) requires continued performance of the function by 
        civilian employees if the cost of performance of the function 
        by a contractor would, over all performance periods required by 
        the solicitation, cost less than--
                    ``(I) 10 percent of the personnel-related costs for 
                performance of that activity or function in the agency 
                tender; or
                    ``(II) $10,000,000; and
            ``(v) provides no advantage to an offeror for a proposal to 
        reduce costs for the Department of Defense by--
                    ``(I) not making an employer-sponsored health 
                insurance plan available to the workers who are to be 
                employed in the performance of such function under a 
                contract; or
                    ``(II) offering to such workers an employer-
                sponsored health benefits plan that requires the 
                employer to contribute less towards the premium or 
                subscription share than that which is paid by the 
                Department of Defense for health benefits for civilian 
                employees under chapter 89 of title 5.
    ``(B) Any modification, reorganization, division, or other change 
in the organization of a function of the Department of Defense so that 
is performed by less than 10 civilian employees of the Department of 
Defense and, therefore, excluded from subparagraph (A), is prohibited.
    ``(C) Any function that is performed by civilian employees of the 
Department of Defense and is proposed to be reengineered, reorganized, 
modernized, upgraded, expanded, or changed in order to become more 
efficient, but the civilian employees would still provide essentially 
the same service, is subject to the competition requirement in 
subparagraph (A).
    ``(D) The cost savings requirement specified in subparagraph (A) 
does not apply to any contracts for special studies and analyses, 
construction services, architectural services, medical services, 
scientific and technical services related to (but not in support of) 
research and development, and depot-level maintenance and repair 
services.
    ``(E) The Secretary of Defense may waive the competition 
requirement in specific instances if--
            ``(i) the written waiver is prepared by the Secretary of 
        Defense, or the relevant Assistant Secretary or agency head;
            ``(ii) the written waiver is accompanied by a detailed 
        determination that national security interests are so 
        compelling as to preclude compliance with the requirement for a 
        public-private competition; and
            ``(iii) a copy of the waiver is published in the Federal 
        Register within 10 working days after the date on which the 
        waiver is invoked, although use of the waiver need not be 
        delayed until its publication.''.
    (b) Relation to Pilot Program.--Paragraph (5) of section 2461(b) of 
title 10, United States Code, as added by subsection (a) shall not 
apply with respect to the pilot program for best-value source selection 
for performance of information technology services authorized by 
section 336 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136; 117 Stat. 1444; 10 U.S.C. 2461 note).

SEC. 324. PUBLIC-PRIVATE COMPETITION PILOT PROGRAM.

    (a) Purpose.--The Secretary of Defense shall establish a pilot 
program to examine the use of the public-private competition process of 
Office of Management and Budget Circular A-76 on new requirements, as 
defined by such Circular, and functions currently being performed by 
contractors that could be performed by civilian employees.
    (b) Duration.--The Secretary of Defense shall carry out the pilot 
program during fiscal years 2005 and 2006.
    (c) Requirement for Public-Private Competition for New Work.--(1) 
By the end of the pilot project, the Secretary of Defense shall have 
allowed civilian employees to compete through the standard competition 
process of Office of Management and Budget Circular A-76 for new 
requirements, as defined by such Circular, that are approximately one-
tenth in value of the funds spent by the Department of Defense during 
the two fiscal years of the pilot project on all functions that are 
considered new requirements, as defined by such Circular.
    (2) The Department of Defense shall not receive credit towards 
compliance with the pilot program for subjecting to public-private 
competition--
            (A) any contract to be awarded to small business concerns 
        that meet the requirements under section 3(a) of the Small 
        Business Act (15 U.S.C. 632(a)) and regulations under that 
        section;
            (B) any contract to be performed by contractor employees 
        who are represented by a private sector labor union; or
            (C) any contract related to special studies and analyses, 
        construction services, architectural services, medical 
        services, scientific and technical services related to (but not 
        in support of) research and development, and depot-level 
        maintenance and repair services.
    (d) Functions Performed by Contractors.--(1) By the end of the 
pilot project, the Secretary of Defense shall have subjected a number 
of contractor employees to public-private competition through the 
standard competition process of Office of Management and Budget 
Circular A-76 that is approximately one-tenth of the number of civilian 
employees subject to public-private competition during the two fiscal 
years of the pilot project.
    (2) The Department of Defense shall, to the extent possible, 
subject to public-private competition those positions held by 
contractor employees that are associated with functions that are or 
have been performed at least in part by Federal employees at any time 
on or after October 1, 1980; and
    (3) Subsection (c)(2) shall also apply to this subsection.
    (e) Waiver.--The implementation of the pilot project may be waived 
if--
            (1) the written waiver is prepared by the Secretary of 
        Defense;
            (2) the written waiver is accompanied by a detailed 
        determination that national security interests are so 
        compelling as to preclude compliance with the competition 
        requirement; and
            (3) a copy of the waiver is published in the Federal 
        Register within 10 working days after the date on which the 
        waiver is invoked, although use of the waiver need not be 
        delayed until its publication.
    (f) Report.--At the end of each fiscal year of the pilot program, 
the Inspector General of the Department of Defense shall submit to 
Congress a report on the results of the pilot program, including the 
extent to which the Department of Defense complied with the 
requirements of this section.

SEC. 325. SENSE OF CONGRESS ON EQUITABLE LEGAL STANDING FOR CIVILIAN 
              EMPLOYEES.

    It is the sense of Congress that, in order to ensure that, when 
public-private competitions are held, they are conducted as fairly, 
effectively, and efficiently as possible, competing parties, both 
Department of Defense civilian employees (or their representatives) and 
contractors (or their representatives) should receive comparable 
treatment throughout the competition regarding access to relevant 
information and legal standing to challenge the way a competition has 
been conducted at all appropriate forums, including the General 
Accounting Office and the United States Court of Federal Claims.

SEC. 326. COMPETITIVE SOURCING REPORTING REQUIREMENT.

    (a) Report Required.--Not later than February 1, 2005, the 
Inspector General of the Department of Defense shall submit to Congress 
a report addressing whether the Department of Defense--
            (1) employs a sufficient number of adequately trained 
        civilian employees to conduct satisfactorily, taking into 
        account equity, efficiency and expeditiousness, all of the 
        public-private competitions that are scheduled to be undertaken 
        by the Department of Defense during the next fiscal year 
        (including a sufficient number of employees to formulate 
        satisfactorily the performance work statements and most 
        efficient organization plans for the purposes of such 
        competitions) and to administer any resulting contracts; and
            (2) has implemented a comprehensive and reliable system to 
        track and assess the cost and quality of the performance of 
        functions of the Department of Defense by service contractors, 
        to update the records of such costs and the assessments each 
        fiscal quarter, and to make such information available in 
        reports to Congress and the public, including through the use 
        of electronic means, except that proprietary information and 
        information to which section 552(b)(1) of title 5, United 
        States Code, applies shall be excised from information 
        published or reports made available.
    (b) Elements of Tracking System.--The system of the Department of 
Defense for tracking cost and quality of performance of a function 
under a service contract shall include at least the following data 
elements:
            (1) The contract number and the applicable Federal supply 
        class or service code.
            (2) The name, business address, and business telephone of 
        the agency official who supervises the service contract.
            (3) The statutory, regulatory, or other authority for 
        entering into the service contract and, if a public-private 
        competition was not used in the determination of whether to 
        provide for performance of the activity or function by a 
        contractor, an explanation of the reasons for not doing so.
            (4) The cost to the Department of Defense of conducting the 
        public-private competition under Office of Management and 
        Budget Circular A-76, if one was undertaken, including the cost 
        of consultants as well as civilian employees.
            (5) In the case of a function formerly performed by 
        civilian employees, the actual cost of the performance by such 
        employees.
            (6) The cost to the Department of Defense of civilian 
        employee performance of the function under the most efficient 
        organization plan.
            (7) The anticipated cost of contractor performance, based 
        on the award.
            (8) The cost to the Department of Defense for performance 
        of the function by the contractor.
            (9) A description of the quality control process used by 
        the agency in connection with monitoring the contract 
        performance (including the applicable quality control standards 
        and the frequency of the quality control reports), together 
        with an assessment of whether the contractor achieved, 
        exceeded, or failed to achieve the quality control standards.
    (c) Assessment of Tracking System.--The Inspector General of the 
Department of Defense shall include in the report required by 
subsection (a) an assessment of the comprehensiveness and reliability 
of the Department of Defense system for tracking cost and quality of 
performance of a function under a service contract, including 
compliance with each of the requirements specified in subsection (b). 
The Inspector General shall base the assessment on an audit of a 
representative sample of service contracts. The report shall also 
include recommendations by the Inspector General regarding how 
weaknesses identified in the Department of Defense infrastructure for 
competitive sourcing can be rectified, whether through the use of 
different processes or the availability of additional employees, 
additional training, or additional resources.

                   Subtitle D--Information Technology

SEC. 331. PREPARATION OF DEPARTMENT OF DEFENSE PLAN FOR TRANSITION TO 
              INTERNET PROTOCOL VERSION 6.

    (a) Transition Plan.--The Secretary of Defense shall prepare a plan 
to provide for the transition of Department of Defense information 
technology systems to Internet Protocol version 6 from the present use 
of Internet Protocol version 4 and other network protocols. The plan 
shall outline the networking and security system equipment that will 
need to be replaced, including the timing and costs of such 
replacement, address how the current and new networks and security 
systems will be managed, and assess the potential impact of the 
transition, include any proposed measures to alleviate any adverse 
affects. In preparing the transition plan, the Secretary shall compare 
private industry plans for the transition to Internet Protocol version 
6.
    (b) Testing and Evaluation for Internet Protocol.--To determine 
whether a change to the use of Internet Protocol version 6 will support 
Department of Defense requirements, the Secretary of Defense shall 
provide for a rigorous, real-world end-to-end testing of Internet 
Protocol version 6, as proposed for use by the Department, to evaluate 
the following:
            (1) The ability of Internet Protocol version 6, with its 
        ``best effort'' quality of service, to satisfactory support the 
        Department's multiple applications and other information 
        technology systems, including the use of Internet Protocol 
        version 6 over bandwidth-constrained tactical circuits.
            (2) The ability of the Department's networks using Internet 
        Protocol version 6 to respond to, and perform under, heavy 
        loading of the core networks.
    (c) Submission of Plan and Results.--Not later than March 31, 2005, 
the Secretary of Defense shall submit to the congressional defense 
committees a report containing the transition plan prepared under 
subsection (a) and the results of the tests conducted under subsection 
(b).

SEC. 332. DEFENSE BUSINESS ENTERPRISE ARCHITECTURE, SYSTEM 
              ACCOUNTABILITY, AND CONDITIONS FOR OBLIGATION OF FUNDS 
              FOR DEFENSE BUSINESS SYSTEM MODERNIZATION.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by inserting before section 2223 the following new section:
``Sec. 2222. Defense business systems: architecture, accountability, 
              and modernization
    ``(a) Conditions for Obligation of Funds for Defense Business 
System Modernization.--Effective January 1, 2005, funds appropriated to 
the Department of Defense may not be obligated for a defense business 
system modernization that will have a total cost in excess of 
$1,000,000 unless--
            ``(1) the approval authority designated for the defense 
        business system certifies to the Defense Business Systems 
        Management Committee established by section 186 of this title 
        that the defense business system modernization--
                    ``(A) is in compliance with the enterprise 
                architecture developed under subsection (b), or such 
                compliance is waived in writing by the approval 
                authority as a result of the investment review process 
                conducted under subsection (d) for the defense business 
                system modernization; and
                    ``(B) will be acquired or developed in a manner 
                consistent with the system acquisition regulations and 
                instructions of the Department of Defense; and
            ``(2) the Defense Business Systems Management Committee 
        approves the certification by the approval authority.
    ``(b) Enterprise Architecture for Defense Business Systems.--Not 
later than September 30, 2005, the Secretary of Defense, acting through 
the Defense Business Systems Management Committee, shall develop--
            ``(1) an enterprise architecture to cover all defense 
        business systems, and the functions and activities supported by 
        defense business systems, which shall be sufficiently defined 
        to effectively guide, constrain, and permit implementation of 
        interoperable defense business system solutions and consistent 
        with the policies and procedures established by the Director of 
        the Office of Management and Budget, and
            ``(2) a transition plan for implementing the enterprise 
        architecture for defense business systems.
    ``(c) Approval Authorities and Accountability for Defense Business 
Systems.--The Secretary of Defense shall delegate responsibility for 
the planning, design, acquisition, deployment, operation, maintenance, 
modernization, and oversight of defense business systems as follows:
            ``(1) The Under Secretary of Defense for Acquisition, 
        Technology and Logistics shall be responsible and accountable 
        for any defense business system the primary purpose of which is 
        to support acquisition activities, logistics activities, or 
        installations and environment activities of the Department of 
        Defense.
            ``(2) The Under Secretary of Defense (Comptroller) shall be 
        responsible and accountable for any defense business system the 
        primary purpose of which is to support financial management 
        activities or strategic planning and budgeting activities of 
        the Department of Defense.
            ``(3) The Under Secretary of Defense for Personnel and 
        Readiness shall be responsible and accountable for any defense 
        business system the primary purpose of which is to support 
        human resource management activities of the Department of 
        Defense.
            ``(4) The Assistant Secretary of Defense for Networks and 
        Information Integration and the Chief Information Officer of 
        the Department of Defense shall be responsible and accountable 
        for any defense business system the primary purpose of which is 
        to support information technology infrastructure or information 
        assurance activities of the Department of Defense.
            ``(5) The Deputy Secretary of Defense or an Under Secretary 
        of Defense, as designated by the Secretary of Defense, shall be 
        responsible for any defense business system the primary purpose 
        of which is to support any activity of the Department of 
        Defense not covered by paragraphs (1) through (4).
    ``(d) Defense Business System Investment Review.--(1) The Secretary 
of Defense shall require each approval authority designated under 
subsection (c) to establish, not later than March 15, 2005, an 
investment review process, consistent with section 11312 of title 40, 
to review the planning, design, acquisition, development, deployment, 
operation, maintenance, modernization, and project cost benefits and 
risks of all defense business systems for which the approval authority 
is responsible. The investment review process so established shall 
specifically address the responsibilities of approval authorities under 
subsection (a).
    ``(2) The review of defense business systems under the investment 
review process shall include the following:
            ``(A) Review and approval by an investment review board of 
        each defense business system as an investment before the 
        obligation of funds on the system.
            ``(B) Periodic review, but not less than annually, of every 
        defense business system investment.
            ``(C) Representation on each investment review board by 
        appropriate officials from among the armed forces, combatant 
        commands, the Joint Chiefs of Staff, and Defense Agencies.
            ``(D) Use of threshold criteria to ensure an appropriate 
        level of review within the Department of Defense of, and 
        accountability for, defense business system investments 
        depending on scope, complexity, and cost.
    ``(e) Budget Information.--In the materials that the Secretary 
submits to Congress in support of the budget submitted by the President 
to Congress under section 1105 of title 31 for fiscal year 2006 and 
fiscal years thereafter, the Secretary of Defense shall--
            ``(1) identify the approval authority for each defense 
        business system; and
            ``(2) for each defense business system for which funding is 
        proposed in the budget--
                    ``(A) certify that the defense business system 
                complies with the defense business enterprise 
                architecture; or
                    ``(B) explain why funds for such system are 
                necessary to maintain a mission critical or mission 
                essential system of the Department of Defense, 
                notwithstanding its noncompliance with the defense 
                business enterprise architecture.
    ``(f) Congressional Reports.--Not later than March 15 of each year 
from 2005 through 2009, the Secretary of Defense shall submit to the 
congressional defense committees a report on Department of Defense 
compliance with the requirements of this section. The first report 
shall define plans and commitments for meeting the requirements of 
subsection (a), including specific milestones and performance measures. 
Subsequent reports shall--
            ``(1) describe actions taken and planned for meeting the 
        requirements of subsection (a), including--
                    ``(A) specific milestones and actual performance 
                against specified performance measures, and any 
                revision of such milestones and performance measures; 
                and
                    ``(B) specific actions on the defense business 
                system modernizations submitted for certification under 
                such subsection;
            ``(2) identify the number of defense business system 
        modernizations so certified;
            ``(3) identify any defense business system modernization 
        with an obligation in excess of $1,000,000 during the preceding 
        fiscal year that was not certified under subsection (a), and 
        the reasons for the waiver; and
            ``(4) discuss specific improvements in business operations 
        and cost savings resulting from successful defense business 
        systems modernization efforts.
    ``(g) Definitions.--In this section:
            ``(1) The term `approval authority', with respect to a 
        defense business system, means the Department of Defense 
        official responsible for the defense business system, as 
        designated by subsection (c).
            ``(2) The term `defense business system' means an 
        information system, other than a national security system, 
        operated by, for, or on behalf of the Department of Defense, 
        including financial systems, mixed systems, financial data 
        feeder systems, and information technology and information 
        assurance infrastructure, used to support business activities, 
        such as acquisition, financial management, logistics, strategic 
        planning and budgeting, installations and environment, and 
        human resource management.
            ``(3) The term `defense business system modernization' 
        means--
                    ``(A) the acquisition or development of a new 
                defense business system; or
                    ``(B) any significant modification or enhancement 
                of an existing defense business system (other than 
                necessary to maintain current services).
            ``(4) The term `enterprise architecture' has the meaning 
        given that term in section 3601(4) of title 44.
            ``(5) The terms `information system' and `information 
        technology' have the meanings given those terms in section 
        11101 of title 40.
            ``(6) The term `national security system' has the meaning 
        given that term in section 2315 of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting before the item relating to section 2223 the 
following new item:

``2222. Defense business systems: architecture, accountability, and 
                            modernization.''.
    (b) Defense Business System Management Committee.--Chapter 7 of 
such title is amended by adding at the end the following new section:
``Sec. 186. Defense business system management Committee
    ``(a) Establishment.--The Secretary of Defense shall establish a 
Defense Business Systems Management Committee, to be composed of the 
following persons:
            ``(1) The Deputy Secretary of Defense, who shall serve as 
        the chairman of the Committee.
            ``(2) The Under Secretary of Defense for Acquisition, 
        Logistics, and Technology.
            ``(3) The Under Secretary of Defense for Personnel and 
        Readiness.
            ``(4) The Under Secretary of Defense (Comptroller).
            ``(5) The Assistant Secretary of Defense for Networks and 
        Information Integration.
            ``(6) The Secretaries of the military departments and the 
        heads of the Defense Agencies.
            ``(7) Such additional personnel of the Department of 
        Defense (including personnel assigned to the Joint Chiefs of 
        Staff and combatant commands) as are designated by the 
        Secretary of Defense.
    ``(b) Duties.--(1) In addition to any other matters assigned to the 
Committee by the Secretary of Defense, the Committee shall--
            ``(A) recommend to the Secretary of Defense policies and 
        procedures necessary to effectively integrate the requirements 
        of section 2222 of this title into all business activities and 
        any transformation, reform, reorganization, or process 
        improvement initiatives undertaken within the Department of 
        Defense; and
            ``(B) review and approve any major update of the defense 
        business enterprise architecture developed under subsection (b) 
        of section 2222 of this title, including evolving the 
        architecture, and of defense business systems modernization 
        plans.
    ``(2) The Committee shall be responsible for coordinating defense 
business system modernization initiatives to maximize benefits and 
minimize costs for the Department of Defense and periodically report to 
the Secretary on the status of defense business system modernization 
efforts.
    ``(3) The Committee shall ensure that funds are obligated for 
defense business system modernization in a manner consistent with 
section 2222 of this title.
    ``(c) Definitions.--In this section, the terms `defense business 
system' and `defense business system modernization' have the meanings 
given such terms in section 2222 of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``186. Defense Business System Management Committee.''.
    (c) Delegation of Administrative Responsibility.--The delegation of 
responsibility for the planning, design, acquisition, deployment, 
operation, maintenance, modernization, and oversight of defense 
business systems required by subsection (c) of section 2222 of title 
10, United States Code, as added by subsection (a)(1), shall be 
completed not later than 60 days after the date of the enactment of 
this Act.
    (d) Relation to Annual Registration Requirements.--Nothing in 
sections 186 and 2222 of title 10, United States Code, as added by this 
section, shall be construed to alter the requirements of section 8084 
of the Department of Defense Appropriations Act, 2004 (Public Law 108-
87; 117 Stat. 1091), with regard to information technology systems (as 
defined in subsection (d) of such section).
    (e) Repeal of Obsolete Financial Management Enterprise Architecture 
Requirements.--Section 1004 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-314; 10 U.S.C. 
113 note) is repealed.

SEC. 333. ESTABLISHMENT OF JOINT PROGRAM OFFICE TO IMPROVE 
              INTEROPERABILITY OF BATTLEFIELD MANAGEMENT COMMAND AND 
              CONTROL SYSTEMS.

    (a) Office for Family of Interoperable Pictures.--The Secretary of 
Defense shall designate a single joint program office in the Department 
of Defense for the management of battlefield management command and 
control systems of the Armed Forces, known as the ``Family of 
Interoperable Pictures'', to improve the interoperability of such 
systems so that members of the Armed Forces may access a common 
operational picture of the battlefield. The office shall include at a 
minimum the Single Integrated Air Picture, the Single Integrated Ground 
Picture, the Single Integrated Maritime Picture, the Special Operations 
Forces Picture, and the Single Integrated Space Picture. The Secretary 
shall provide for the head of the office to be selected on a rotating 
basis among related offices of the Army, Navy, Air Force, and Marine 
Corps.
    (b) Common Systems Architecture.--The Secretary of Defense shall 
develop, implement, and maintain a common systems architecture for all 
battlefield management command and control systems included in the 
Family of Interoperable Pictures.
    (c) Consolidated Program Elements.--All funds for development and 
procurement related to the Family of Interoperable Pictures shall be 
consolidated under the office designated under subsection (a).
    (d) Program Development.--The head of the office designated under 
subsection (a), subject to the authority, direction, and control of the 
Secretary of Defense, shall--
            (1) establish and control the performance specifications 
        for the battlefield management command and control systems 
        included in the Family of Interoperable Pictures;
            (2) establish and control the standards for development of 
        the software and equipment for the Family of Interoperable 
        Pictures;
            (3) establish and control the standards for operation of 
        the Family of Interoperable Pictures; and
            (4) develop a single, unified concept of operations for all 
        users of the Family of Interoperable Pictures.

              Subtitle E--Readiness Reporting Requirements

SEC. 341. ANNUAL REPORT ON DEPARTMENT OF DEFENSE OPERATION AND 
              FINANCIAL SUPPORT FOR MILITARY MUSEUMS.

    (a) Report Required.--Chapter 23 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 489. Annual report on Department of Defense operation and 
              financial support for military museums
    ``(a) Report Required.--As part of the budget materials submitted 
to Congress in connection with the submission of the budget for a 
fiscal year pursuant to section 1105 of title 31, but in no case later 
than March 15 of each year, the Secretary of Defense shall submit a 
report identifying all museums that, during the preceding fiscal year--
            ``(1) were operated by the Department of Defense or a 
        military department; or
            ``(2) were otherwise supported using funds appropriated to 
        the Department of Defense.
    ``(b) Content of Report.--For each museum identified in a report 
under this section, the Secretary of Defense shall include in the 
report the following:
            ``(1) The purpose and functions of the museum and the 
        justification for the museum
            ``(2) A description of the facilities dedicated to the 
        museum.
            ``(3) An itemized listing of the funds appropriated to the 
        Department of Defense that were obligated to support the museum 
        during the fiscal year covered by the report, as well as any 
        other Federal funds, funds from a nonappropriated fund 
        instrumentality account of the Department of Defense, and non-
        Federal funds obligated to support the museum.
            ``(4) The number of civilian employees of the Department of 
        Defense who serve full-time or part-time at the museum.
            ``(5) The number of members of the armed forces who serve 
        full-time or part-time at the museum.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``489. Annual report on Department of Defense operation and financial 
                            support for military museums.''.

SEC. 342. REPORT ON DEPARTMENT OF DEFENSE PROGRAMS FOR PREPOSITIONING 
              OF MATERIAL AND EQUIPMENT.

    (a) Secretary of Defense Assessment and Report.--(1) The Secretary 
of Defense shall conduct an assessment of the programs of the 
Department of Defense for the prepositioning of material and equipment. 
Such assessment shall particularly focus on how those programs will be 
incorporated into achievement of the goals of the Secretary of Defense 
(referred to as the ``10-30-30'' goals) for the Armed Forces to have 
the capability, from the onset of a contingency situation, of deploying 
forces to a distant theater within 10 days, defeating an enemy within 
30 days, and being ready for an additional conflict within another 30 
days.
    (2) The Secretary shall submit to Congress a report on such 
assessment not later than October 1, 2005.
    (b) Matters to Be Included.--The assessment under subsection (a) 
shall include the prepositioning programs of each of the Armed Forces 
and of the United States Special Operations Command as well as 
assessment of each of the following:
            (1) Use of prepositioned equipment as part of Operation 
        Iraqi Freedom and Operation Enduring Freedom and potential 
        solutions to identified challenges.
            (2) Changes to doctrine, strategy, and transportation plans 
        to support the goals of the Secretary described in subsection 
        (a) and referred to as the 10-30-30 goals in light of the 
        current lift constraints facing both land and sea components of 
        lift as well as the emerging mobility requirements.
            (3) Modifications of the prepositioning programs of the 
        Armed Forces in order to adapt to pending modularity concepts, 
        future force structure changes, and new sea basing concepts in 
        relation to current and potential areas of instability.
            (4) Joint operations and training that include theater 
        opening requirements at potential aerial and sea ports of 
        debarkation, joint force reception capabilities, joint theater 
        distribution operations, and use of joint prepositioned stocks 
        and systems.

                       Subtitle F--Other Matters

SEC. 351. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Duration of Program.--Subsection (a) of section 343 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 10 U.S.C. 4551 note) is 
amended by striking ``2004'' and inserting ``2008''.
    (b) Additional Report Required.--Subsection (g) of such section is 
amended--
            (1) in paragraph (1), by striking ``2004'' and inserting 
        ``2008''; and
            (2) in paragraph (2), by striking ``2003'' and inserting 
        ``2007''.

SEC. 352. LIMITATION ON PREPARATION OR IMPLEMENTATION OF MID-RANGE 
              FINANCIAL IMPROVEMENT PLAN.

    Amounts appropriated to the Department of Defense for fiscal year 
2005 for operation and maintenance may not be obligated for the purpose 
of preparing or implementing the Mid-Range Financial Improvement Plan 
until the Secretary of Defense submits a report to the congressional 
defense committees containing, for each of the military departments and 
the Defense Agencies--
            (1) an explanation of the manner in which funds will be 
        used for such purpose during that fiscal year; and
            (2) an estimate of the costs for future fiscal years to 
        prepare and implement the plan.

SEC. 353. PROCUREMENT OF FOLLOW-ON CONTRACTS FOR THE OPERATION OF FIVE 
              CHAMPION-CLASS T-5 TANK VESSELS.

    The Secretary of the Navy may consider bids or proposals for the 
follow-on contracts for the Department of the Navy contracts for the 
operation of five Champion-class T-5 tank vessels only from an entity 
that is a citizen under section 2 of the Shipping Act, 1916 (46 App. 
U.S.C. 802).

SEC. 354. SENSE OF CONGRESS ON AMERICA'S NATIONAL WORLD WAR I MUSEUM.

    (a) Findings.--The Congress finds as follows:
            (1) The Liberty Memorial Museum in Kansas City, Missouri, 
        was built in 1926 in honor of those individuals who served in 
        World War I in defense of liberty and the Nation.
            (2) The Liberty Memorial Association, a nonprofit 
        organization which originally built the Liberty Memorial 
        Museum, is responsible for the finances, operations, and 
        collections management of the Liberty Memorial Museum.
            (3) The Liberty Memorial Museum is the only public museum 
        in the Nation that exists for the exclusive purpose of 
        interpreting the experiences of the United States and its 
        allies in the World War I years (1914-1918), both on the 
        battlefield and on the home front.
            (4) The Liberty Memorial Museum project began after the 
        1918 Armistice through the efforts of a large-scale, grass-
        roots civic and fundraising effort by the citizens and veterans 
        of the Kansas City metropolitan area. After the conclusion of a 
        national architectural design competition, ground was broken in 
        1921, construction began in 1923, and the Liberty Memorial 
        Museum was opened to the public in 1926.
            (5) In 1994, the Liberty Memorial Museum closed for a 
        massive restoration and expansion project. The restored museum 
        reopened to the public on Memorial Day, 2002, during a gala 
        rededication ceremony.
            (6) Exhibits prepared for the original museum buildings 
        presaged the dramatic, underground expansion of core exhibition 
        gallery space, with over 30,000 square feet of new interpretive 
        and educational exhibits currently in development. The new 
        exhibits, along with an expanded research library and archives, 
        will more fully utilize the many thousands of historical 
        objects, books, maps, posters, photographs, diaries, letters, 
        and reminiscences of World War I participants that are 
        preserved for posterity in the Liberty Memorial Museum's 
        collections. The new core exhibition is scheduled to open on 
        Veterans Day, 2006.
            (7) The City of Kansas City, the State of Missouri, and 
        thousands of private donors and philanthropic foundations have 
        contributed millions of dollars to build and later to restore 
        this national treasure. The Liberty Memorial Museum continues 
        to receive the strong support of residents from the States of 
        Missouri and Kansas and across the Nation.
            (8) Since the restoration and rededication of 2002, the 
        Liberty Memorial Museum has attracted thousands of visitors 
        from across the United States and many foreign countries.
            (9) There remains a need to preserve in a museum setting 
        evidence of the honor, courage, patriotism, and sacrifice of 
        those Americans who offered their services and who gave their 
        lives in defense of liberty during World War I, evidence of the 
        roles of women and African Americans during World War I, and 
        evidence of other relevant subjects.
            (10) The Liberty Memorial Museum seeks to educate a diverse 
        group of audiences through its comprehensive collection of 
        historical materials, emphasizing eyewitness accounts of the 
        participants on the battlefield and the home front and the 
        impact of World War I on individuals, then and now. The Liberty 
        Memorial Museum continues to actively acquire and preserve such 
        materials.
            (11) A great opportunity exists to use the invaluable 
        resources of the Liberty Memorial Museum to teach the ``Lessons 
        of Liberty'' to the Nation's schoolchildren through on-site 
        visits, classroom curriculum development, distance learning, 
        and other educational initiatives.
            (12) The Liberty Memorial Museum should always be the 
        Nation's museum of the national experience in the World War I 
        years (1914-1918), where people go to learn about this critical 
        period and where the Nation's history of this monumental 
        struggle will be preserved so that generations of the 21st 
        century may understand the role played by the United States in 
        the preservation and advancement of democracy, freedom, and 
        liberty in the early 20th century.
            (13) This initiative to recognize and preserve the history 
        of the Nation's sacrifices in World War I will take on added 
        significance as the Nation approaches the centennial observance 
        of this event.
            (14) It is fitting and proper to refer to the Liberty 
        Memorial Museum as ``America's National World War I Museum''.
    (b) Sense of Congress.--The Congress--
            (1) recognizes the Liberty Memorial Museum in Kansas City, 
        Missouri, including the museum's future and expanded exhibits, 
        collections, library, archives, and educational programs, as 
        ``America's National World War I Museum'';
            (2) recognizes that the continuing collection, 
        preservation, and interpretation of the historical objects and 
        other historical materials held by the Liberty Memorial Museum 
        enhance the knowledge and understanding of the Nation's people 
        of the American and allied experience during the World War I 
        years (1914-1918), both on the battlefield and on the home 
        front;
            (3) commends the ongoing development and visibility of 
        ``Lessons of Liberty'' educational outreach programs for 
        teachers and students throughout the Nation; and
            (4) encourages the need for present generations to 
        understand the magnitude of World War I, how it shaped the 
        Nation, other countries, and later world events, and how the 
        sacrifices made then helped preserve liberty, democracy, and 
        other founding principles for generations to come.

              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, 2005, as follows:
            (1) The Army, 482,400.
            (2) The Navy, 365,900.
            (3) The Marine Corps, 175,000.
            (4) The Air Force, 359,700.

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

    Effective October 1, 2004, section 691(b) of title 10, United 
States Code, is amended as follows:
            (1) Navy.--Paragraph (2) is amended by striking ``373,800'' 
        and inserting ``365,900''.
            (2) Air force.--Paragraph (4) is amended by striking 
        ``359,300'' and inserting ``359,700''.

SEC. 403. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON 
              ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2005, the maximum number of members of the 
reserve components of the Armed Forces who may be serving at any time 
on full-time operational support duty under section 115(b) of title 10, 
United States Code, is the following:
            (1) The Army National Guard of the United States, 10,300.
            (2) The Army Reserve, 5,000.
            (3) The Naval Reserve, 6,200.
            (4) The Marine Corps Reserve, 2,500.
            (5) The Air National Guard of the United States, 10,100.
            (6) The Air Force Reserve, 3,600.

SEC. 404. ACCOUNTING AND MANAGEMENT OF RESERVE COMPONENT PERSONNEL 
              PERFORMING ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY 
              FOR OPERATIONAL SUPPORT.

    (a) Strength Authorizations.--Section 115 of title 10, United 
States Code, is amended--
            (1) in subsection (a)(1)(A), by inserting ``unless on 
        active duty pursuant to subsection (b)'' after ``active-duty 
        personnel'';
            (2) in subsection (a)(1)(B), by inserting ``unless on 
        active duty or full-time National Guard duty pursuant to 
        subsection (b)'' after ``reserve personnel'';
            (3) by redesignating subsections (b), (c), (d), (e), (f), 
        (g) and (h) as subsections (c), (d), (e), (f), (g), (h) and 
        (i), respectively; and
            (4) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Certain Reserves on Active Duty To Be Authorized by Law.--(1) 
Congress shall annually authorize the maximum number of members of a 
reserve component permitted to be on active duty or full-time National 
Guard duty at any given time who are called or ordered to--
            ``(A) active duty under section 12301(d) of this title for 
        the purpose of providing operational support, as prescribed in 
        regulation issued by the Secretary of Defense;
            ``(B) full-time National Guard duty under section 502(f)(2) 
        of title 32 for the purpose of providing operational support 
        when authorized by the Secretary of Defense;
            ``(C) active duty under section 12301(d) of this title or 
        full-time National Guard duty under section 502(f) of title 32 
        for the purpose of preparing for and performing funeral honors 
        functions for funerals of veterans under section 1491 of this 
        title;
            ``(D) active duty or retained on active duty under sections 
        12301(g) of this title while in a captive status; or
            ``(E) active duty or retained on active duty under 12301(h) 
        or 12322 of this title for the purpose of medical evaluation or 
        treatment.
    ``(2) A member of a reserve component who exceeds either of the 
following limits shall be included in the strength authorized under 
subparagraph (A) or subparagraph (B), as appropriate, of subsection 
(a)(1):
            ``(A) A call or order to active duty or full-time National 
        Guard duty that specifies a period greater than three years.
            ``(B) The cumulative periods of active duty and full-time 
        National Guard duty performed by the member exceed 1095 days in 
        the previous 1460 days.
    ``(3) In determining the period of active service under paragraph 
(2), the following periods of active service performed by a member 
shall not be included:
            ``(A) All periods of active duty performed by a member who 
        has not previously served in the Selected Reserve of the Ready 
        Reserve.
            ``(B) All periods of active duty or full-time National 
        Guard duty for which the member is exempt from strength 
        accounting under paragraphs (1) through (7) of subsection 
        (i).''.
    (b) Limitation on Appropriations.--Subsection (c) of such section 
(as redesignated by subsection (a)(3)) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the use of reserve component personnel to perform 
        active duty or full-time National Guard duty under subsection 
        (b) unless the strength for such personnel for that reserve 
        component for that fiscal year has been authorized by law.''.
    (c) Authority for Secretary of Defense Variances in Maximum 
Strengths.--Subsection (f) of such section (as redesignated by 
subsection (a)(2)) is amended--
            (1) by striking ``End'' in the heading;
            (2) by striking ``and'' at the end of paragraph (2);
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
    ``(4) increase the maximum strength authorized pursuant to 
subsection (b)(1) for a fiscal year for certain reserves on active duty 
for any of the reserve components by a number equal to not more than 10 
percent of that strength.''.
    (d) Conforming Amendments to Section 115.-- Such section is further 
amended as follows:
            (1) Subsection (e) (as redesignated by subsection (a)(3)) 
        is amended--
                    (A) in paragraph (1), by striking ``subsection (a) 
                or (c)'' and inserting ``subsection (a) or (d)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``subsections (a) and 
                        (c)''; and inserting ``subsections (a) and 
                        (d)'';
                            (ii) by striking ``pursuant to subsection 
                        (e)) and subsection (c)'' and inserting 
                        ``pursuant to subsection (f)) and subsection 
                        (d)'' each place it appears.
            (2) Subsection (g) (as redesignated by subsection (a)(3)) 
        is amended by striking ``subsection (e)(1)'' in paragraph (2) 
        and inserting ``subsection (f)(1)''.
            (3) Subsection (i) (as redesignated by subsection (a)(3)) 
        is amended to read as follows:
    ``(i) Certain Personnel Excluded From Counting for Active-Duty End 
Strengths.--In counting personnel for the purpose of the end strengths 
authorized pursuant to subsection (a)(1), persons in the following 
categories shall be excluded:
            ``(1) Members of a reserve component ordered to active duty 
        under section 12301(a) of this title.
            ``(2) Members of a reserve component in an active status 
        ordered to active duty under section 12301(b) of this title.
            ``(3) Members of the Ready Reserve ordered to active duty 
        under section 12302 of this title.
            ``(4) Members of the Selected Reserve of the Ready Reserve 
        or members of the Individual Ready Reserve mobilization 
        category described in section 10144(b) of this title ordered to 
        active duty under section 12304 of this title.
            ``(5) Members of the National Guard called into Federal 
        service under section 12406 of this title.
            ``(6) Members of the militia called into Federal service 
        under chapter 15 of this title.
            ``(7) Members of reserve components on active duty for 
        training.
            ``(8) Members of the Selected Reserve of the Ready Reserve 
        on active duty to support programs described in section 1203(b) 
        of the Cooperative Threat Reduction Act of 1993 (22 U.S.C. 
        5952(b)).
            ``(9) Members of the National Guard on active duty or full-
        time National Guard duty for the purpose of carrying out drug 
        interdiction and counter-drug activities under section 112 of 
        title 32.
            ``(10) Members of a reserve component on active duty under 
        section 10(b)(2) of the Military Selective Service Act (50 
        U.S.C. App. 460(b)(2)) for the administration of the Selective 
        Service System.
            ``(11) Members of the National Guard on full-time National 
        Guard duty for the purpose of providing command, 
        administrative, training, or support services for the National 
        Guard Challenge Program authorized by section 509 of title 
        32.''.
    (e) Military to Military Contact Strength Accounting.--Subsection 
(f) of section 168 of such title is amended to read as follows:
    ``(f) Active Duty End Strengths.--A member of a reserve component 
who is engaged in activities authorized under this section shall not be 
counted for purposes of the following personnel strength limitations:
            ``(1) The end strength for active-duty personnel authorized 
        pursuant to section 115(a)(1) of this title for the fiscal year 
        in which the member carries out the activities referred to 
        under this section.
            ``(2) The authorized daily average for members in pay 
        grades E-8 and E-9 under section 517 of this title for the 
        calendar year in which the member carries out such activities.
            (3) The authorized strengths for commissioned officers 
        under section 523 of this title for the fiscal year in which 
        the member carries out such activities.
    (f) E-8 and E-9 Strength Accounting.--Subsection (a) of section 517 
of such title is amended by striking ``(other than for training) in 
connection with organizing, administering, recruiting, instructing, or 
training the reserve component of an armed force.'' and inserting ``as 
authorized under section 115(a)(1)(B) or 115(b) of this title, or 
excluded from counting for active duty end strengths under section 
115(i) of this title.''.
    (g) Field Grade Officer Strength Accounting.--(1) Paragraph (1) of 
section 523(b) of such title is amended to read as follows:
                    ``(A) on active duty as authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or excluded 
                from counting for active duty end strengths under 
                section 115(i) of this title;
                    ``(B) on active duty under section 10211, 10302 
                through 10305, or 12402 of this title or under section 
                708 of title 32; or
                    ``(C) on full-time National Guard duty.''; and
    (2) Paragraph (7) of section 523(b) is amended by striking 
``Reserve or retired officers'' and inserting ``Retired officers''.
    (h) Active Guard and Reserve Field Grade Officer Strength 
Accounting.--Paragraph (2) of section 12011(e) of such title is amended 
to read as follows:
            ``(2) Full-time National Guard duty (other than for 
        training) under section 502(f) of title 32, except for duty 
        under section 115(b)(1)(B) and (C) of this title and section 
        115(i)(9) of this title.''.
    (i) Warrant Officer Active-Duty List Exclusion.--Paragraph (1) of 
section 582 of such title is amended to read as follows:
            ``(1) Reserve warrant officers--
                    ``(A) on active duty as authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or excluded 
                from counting for active duty end strengths under 
                section 115(i) of this title; or
                    ``(B) on full-time National Guard duty.''.
    (j) Officer Active-Duty List, Applicability of Chapter.--Paragraph 
(1) of section 641 of such is amended to read as follows:
            ``(1) Reserve officers--
                    ``(A) on active duty authorized under section 
                115(a)(1)(B) or 115(b)(1) of this title, or excluded 
                from counting for active duty end strengths under 
                section 115(i) of this title;
                    ``(B) on active duty under section 3038, 5143, 
                5144, 8038, 10211, 10301 through 10305, 10502, 10505, 
                10506(a), 10506(b), 10507, or 12402 of this title or 
                section 708 of title 32; or
                    ``(C) on full-time National Guard duty.''.
    (k) Strength Accounting for Members Performing Drug Interdiction 
and Counter-Drug Activities.--Section 112 of title 32, United States 
Code, is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsections (f), (g), (h) and (i) as 
        subsections (e), (f), (g) and (h) respectively; and
            (3) in paragraph (1) of subsection (e), as redesignated by 
        paragraph (2), by striking ``for a period of more than 180 
        days'' each place it appears.
    (l) Report.--Not later than June 1, 2005, the Secretary of Defense 
shall report to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives the 
Secretary's recommendations regarding the exemptions provided in 
paragraphs (8) through (11) by section 115(i) of title 10, United 
States Code, as amended by this section. The recommendations shall 
address the manner in personnel covered by those exemptions shall be 
accounted for in authorizations provided by section 115 of such title. 
The objective of the analysis should be to terminate the need for such 
exemptions after September 30, 2006.
    (m) Regulations.--The Secretary of Defense shall prescribe by 
regulation the meaning of the term ``operational support'' for purposes 
of paragraph (1) of subsection (b) of section 115 of title 10, United 
States Code, as added by subsection (a).

                       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, 2005, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 83,400.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 106,800.
            (6) The Air Force Reserve, 76,100.
            (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 
increased proportionately 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, 
2005, 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, 26,476.
            (2) The Army Reserve, 14,970.
            (3) The Naval Reserve, 14,152.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 12,225.
            (6) The Air Force Reserve, 1,900.

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 2005 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 Reserve, 7,299.
            (2) For the Army National Guard of the United States, 
        25,076.
            (3) For the Air Force Reserve, 9,954.
            (4) For the Air National Guard of the United States, 
        22,956.

SEC. 414. FISCAL YEAR 2005 LIMITATION ON NUMBER OF NON-DUAL STATUS 
              TECHNICIANS.

    (a) Limitations.--(1) Within the limitation provided in section 
10217(c)(2) of title 10, United States Code, the number of non-dual 
status technicians employed by the National Guard as of September 30, 
2005, may not exceed the following:
            (A) For the Army National Guard of the United States, 
        1,600.
            (B) For the Air National Guard of the United States, 350.
    (2) The number of non-dual status technicians employed by the Army 
Reserve as of September 30, 2005, may not exceed 795.
    (3) The number of non-dual status technicians employed by the Air 
Force Reserve as of September 30, 2005, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.

              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 2005 a total of 
$104,647,558,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2005.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2005 
from the Armed Forces Retirement Home Trust Fund the sum of $61,195,000 
for the operation of the Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

              Subtitle A--General and Flag Officer Matters

SEC. 501. LENGTH OF SERVICE FOR SERVICE CHIEFS.

    (a) Chief of Staff of the Army.--Paragraph (1) of section 3033(a) 
of title 10, United States Code, is amended--
            (1) by striking ``for a period of four years'' in the first 
        sentence; and
            (2) by striking the second and third sentences and 
        inserting the following: ``The Chief of Staff serves at the 
        pleasure of the President for a term of four years. The 
        President may extend the service of an officer as Chief of 
        Staff for an additional period of not to exceed two years. In 
        time of war or during a national emergency declared by 
        Congress, the President may extend the service of an officer as 
        Chief of Staff for such additional periods as the President 
        determines necessary, except that the total period of an 
        officer's service as Chief of Staff may not exceed eight 
        years.''.
    (b) Chief of Naval Operations.--Paragraph (1) of section 5033(a) of 
such title is amended by striking the third and fourth sentences and 
inserting the following: ``The Chief of Naval Operations serves at the 
pleasure of the President. The President may extend the service of an 
officer as Chief of Naval Operations for an additional period of not to 
exceed two years. In time of war or during a national emergency 
declared by Congress, the President may extend the service of an 
officer as Chief of Naval Operations for such additional periods as the 
President determines necessary, except that the total period of an 
officer's service as Chief of Naval Operations may not exceed eight 
years.''.
    (c) Commandant of the Marine Corps.--Paragraph (1) of section 
5043(a) of such title is amended by striking the third and fourth 
sentences and inserting the following: ``The Commandant serves at the 
pleasure of the President. The President may extend the service of an 
officer as Commandant for an additional period of not to exceed two 
years. In time of war or during a national emergency declared by 
Congress, the President may extend the service of an officer as 
Commandant for such additional periods as the President determines 
necessary, except that the total period of an officer's service as 
Commandant may not exceed eight years.''.
    (d) Chief of Staff of the Air Force.--Paragraph (1) of section 
8033(a) of such title is amended to read as follows:
            (1) by striking ``for a period of four years'' in the first 
        sentence; and
            (2) by striking the second and third sentences and 
        inserting the following: ``The Chief of Staff serves at the 
        pleasure of the President for a period of four years. The 
        President may extend the service of an officer as Chief of 
        Staff for an additional period of not to exceed two years. In 
        time of war or during a national emergency declared by 
        Congress, the President may extend the service of an officer as 
        Chief of Staff for such additional periods as the President 
        determines necessary, except that the total period of an 
        officer's service as Chief of Staff may not exceed eight 
        years.''.

SEC. 502. REPEAL OF REQUIREMENT THAT DEPUTY CHIEFS AND ASSISTANT CHIEFS 
              OF NAVAL OPERATIONS BE SELECTED FROM OFFICERS IN THE LINE 
              OF THE NAVY.

    (a) Deputy Chiefs of Naval Operations.--Section 5036(a) of title 
10, United States Code, is amended by striking ``in the line''.
    (b) Assistant Chiefs of Naval Operations.--Section 5037(a) of such 
title is amended by striking ``in the line''.

SEC. 503. INCREASE IN AGE LIMIT FOR DEFERRAL OF MANDATORY RETIREMENT 
              FOR UP TO 10 SENIOR GENERAL AND FLAG OFFICERS.

    Section 1251(b) of title 10, United States Code, is amended by 
striking ``64 years of age'' and inserting ``66 years of age''.

SEC. 504. 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. 505. REPEAL OF REQUIREMENT THAT NO MORE THAN 50 PERCENT OF ACTIVE 
              DUTY GENERAL AND FLAG OFFICERS BE IN GRADES ABOVE 
              BRIGADIER GENERAL AND REAR ADMIRAL (LOWER HALF).

    (a) Repeal of Distribution Requirement.--Subsection (a) of section 
525 of title 10, United States Code, is repealed.
    (b) Reorganization of Section.--Such section is further amended--
            (1) by striking ``(b)(1) No appointment'' and inserting 
        ``(a) Limitation on Number of General and Flag Officers in 
        Senior Grades.--(1) No appointment''; and
            (2) by striking ``(3) An officer'' and inserting ``(b) 
        Special Rules and Exceptions.--(1) An officer''; and
            (3) by redesignating paragraphs (4), (5), (6), (7), and (8) 
        as paragraphs (2), (3), (4), (5), and (6), respectively.
    (c) Conforming Amendments.--(1) Subsection (b) of such section (as 
designated by subsection (a)(2)) is amended as follows:
            (A) Paragraph (1) (as redesignated by subsection (a)(2)), 
        paragraph (2)(A) (as redesignated by subsection (a)(3)), and 
        paragraph (6) (as redesignated by subsection (a)(3)) are 
        amended by striking ``paragraph (1) or (2)'' and inserting 
        ``subsection (a)''.
            (B) Paragraph (3)(A) (as so redesignated) is amended by 
        striking ``under the first sentence of paragraph (1) or (2), as 
        applicable'' and inserting ``under subsection (a)''.
            (C) Paragraph (4) (as so redesignated) and the first and 
        third sentences of paragraph (5) (as so redesignated) are 
        amended by striking ``paragraph (1)'' and inserting 
        ``subsection (a)(1)''.
            (D) The second sentence of paragraph (5) (as so 
        redesignated) is amended by striking ``paragraph (1) or (2)'' 
        and inserting ``subsection (a)(2)''.
    (2) Subsection (c) of such section is amended--
            (A) by striking ``(c)(1)'' and inserting `(c) `Reallocation 
        Authority.--(1)'';
            (B) in paragraph (1)(A), by striking ``subsection (b)(1)'' 
        and inserting ``subsection (a)(1)'';
            (C) in paragraph (1)(B), by striking ``subsection (b)(2)'' 
        and inserting ``subsection (a)(2)''; and
            (D) in paragraph (3)(A), by striking ``subsection (b)'' and 
        inserting ``subsections (a) and (b)''.
            (3) Subsection (d) of such section is amended by inserting 
        ``Special Rule for Officers Formerly on Joint Chiefs of 
        Staff.--'' after ``(d)''.
    (d) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 525. Distribution in grade: general and flag officers on active 
              duty''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 32 of such title is amended to read as 
follows:

``525. Distribution in grade: general and flag officers on active 
                            duty.''.

SEC. 506. REVISION TO TERMS FOR ASSISTANTS TO THE CHAIRMAN OF THE JOINT 
              CHIEFS OF STAFF FOR NATIONAL GUARD AND RESERVE MATTERS.

    (a) Codification and Revision.--Chapter 5 of title 10, United 
States Code, is amended by adding at the end a new section 156 
consisting of--
            (1) the following section heading:
``Sec. 156. Assistants to the Chairman for National Guard matters and 
              for Reserve matters'';
        and
            (2) a text consisting of the text of subsections (a) 
        through (f)(1) of section 901 of the National Defense 
        Authorization Act for Fiscal Year 1998 (10 U.S.C. 155 note), 
        revised--
                    (A) in subsection (c), by deleting ``two years'' 
                and inserting ``four years''; and
                    (B) in subsection (f), by deleting ``(1)''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``156. Assistants to the Chairman for National Guard members and for 
                            Reserve matters.''.
    (c) Conforming Repeal.--Section 901 of the National Defense 
Authorization Act for Fiscal Year 1998 (10 U.S.C. 155 note) is 
repealed.

SEC. 507. SUCCESSION FOR POSITION OF CHIEF, NATIONAL GUARD BUREAU.

    (a) Designation of Senior Officer in National Guard Bureau.--
Section 10502 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(e) Succession.--(1) Unless otherwise directed by the President 
or Secretary of Defense, when there is a vacancy in the office of the 
Chief of the National Guard Bureau or in the event the Chief of the 
National Guard Bureau is unable to perform the duties of that office, 
the senior of the officers specified in paragraph (2) shall serve as 
the acting Chief until a successor is appointed or the Chief once again 
is able to perform the duties of that office.
    ``(2) The officers specified in this paragraph are the following:
            ``(A) The senior officer of the Army National Guard of the 
        United States on duty with the National Guard Bureau.
            ``(B) The senior officer of the Air National Guard of the 
        United States on duty with the National Guard Bureau.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 10502. Chief of the National Guard Bureau: appointment; adviser 
              on National Guard matters; grade; succession''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 1011 of such title is amended to read as 
follows:

``10502. Chief of the National Guard Bureau: appointment; adviser on 
                            National Guard matters; grade; 
                            succession.''.
    (c) Repealer.--Subsections (d) and (e) of section 10505 of such 
title are repealed.

SEC. 508. TITLE OF VICE CHIEF OF THE NATIONAL GUARD BUREAU CHANGED TO 
              DIRECTOR OF THE JOINT STAFF OF THE NATIONAL GUARD BUREAU.

    (a) In General.--Section 10505 of title 10, United States Code, as 
amended by section 507(c), is amended by striking ``Vice Chief of the 
National Guard Bureau'' each place it appears in subsections (a), (b), 
and (c) and inserting ``Director of the Joint Staff of the National 
Guard Bureau''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 10505. Director of the Joint Staff of the National Guard 
              Bureau''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 1011 of such title is amended to read as 
follows:

``10505. Director of the Joint Staff of the National Guard Bureau.''.

SEC. 509. TWO-YEAR EXTENSION OF AUTHORITY TO WAIVE REQUIREMENT THAT 
              RESERVE CHIEFS AND NATIONAL GUARD DIRECTORS HAVE 
              SIGNIFICANT JOINT DUTY EXPERIENCE.

    (a) Extension.--Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 
8038(b)(4), and 10506(a)(3)(D) of title 10, United States Code, are 
amended by striking ``December 31, 2004,'' and inserting ``December 31, 
2006,''.
    (b) Future Compliance.--Not later than one year after the date of 
the enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the House of Representatives and the 
Committee on Armed Services of the Senate a plan for ensuring that all 
officers selected after December 31, 2006, for recommendation for 
appointment as a Reserve chief or National Guard director have 
significant joint duty experience, as required by law, and may be so 
recommended without requirement for a wavier of such requirement. Such 
plan shall be developed in coordination with the Chairman of the Joint 
Chiefs of Staff.

SEC. 510. REPEAL OF DISTRIBUTION REQUIREMENTS FOR NAVAL RESERVE FLAG 
              OFFICERS.

    Subsection (c) of 12004 of title 10, United States Code, is 
amended--
            (1) by striking ``(1)'' after ``(c)''; and
            (2) by striking the second sentence and all that follows 
        through the end of the subsection.

           Subtitle B--Other Officer Personnel Policy Matters

SEC. 511. TRANSITION OF ACTIVE-DUTY LIST OFFICER FORCE TO ALL REGULAR 
              STATUS.

    (a) Repeal of Requirement That Active-Duty Officers Serve in a 
Reserve Component for at Least One Year Before Receiving a Regular 
Commission.--Section 532 of title 10, United States Code, is amended by 
striking subsection (e).
    (b) Revision to Qualifications for Original Appointment as a 
Commissioned Officer.--(1) Section 532 of such title is further amended 
by adding at the end the following new subsection:
    ``(f) The Secretary of Defense may waive the requirement of 
paragraph (1) of subsection (a) with respect to a person who has been 
lawfully admitted to the United States for permanent residence when the 
Secretary determines that the national security so requires, but only 
for an original appointment in a grade below the grade of major or 
lieutenant commander.''.
    (2) Section 619(d) of such title is amended by adding at the end 
the following new paragraph:
            ``(5) An officer of the Army, Air Force, or Marine Corps in 
        the grade of captain, or of the Navy in the grade of 
        lieutenant, who is not a citizen of the United States.''.
    (c) Repeal of Limitations on Total Strength of Regular Commissioned 
Officers on Active-Duty.--Section 522 of such title is repealed. The 
table of sections at the beginning of chapter 31 of such title is 
amended by striking the item relating to that section.
    (d) Authority for Original Appointment of Regular Officers in 
Junior Grades to be Made by President Alone.--Section 531(a) of such 
title is amended to read as follows:
    ``(a)(1) Original appointments in the grades of second lieutenant, 
first lieutenant, and captain in the Regular Army, Regular Air Force, 
and Regular Marine Corps and in the grades of ensign, lieutenant 
(junior grade), and lieutenant in the Regular Navy shall be made by the 
President alone.
    ``(2) Original appointments in the grades of major, lieutenant 
colonel, and colonel in the Regular Army, Regular Air Force, and 
Regular Marine Corps and in the grades of lieutenant commander, 
commander, and captain in the Regular Navy shall be made by the 
President, by and with the advice and consent of the Senate.''.
    (e) Termination of Requirement of 6 Years Service in a Reserve 
Component for Nonregular Service Retirement Eligibility.--(1) Section 
12731(a)(3) of such title is amended by inserting after ``(3)'' the 
following: ``in the case of a person who completed the service 
requirements of paragraph (2) before the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2005,''.
    (f) All Regular Officer Appointments for Students Attending 
University of Health Sciences.--Section 2114(b) of such title is 
amended by striking the first two sentences and inserting the 
following: ``They shall be appointed in a regular component of the 
uniformed services and shall serve on active duty as a second 
lieutenant or ensign (or the equivalent).''.

SEC. 512. MANDATORY RETENTION ON ACTIVE DUTY TO QUALIFY FOR RETIREMENT 
              PAY.

    Section 12686(a) of title 10, United States Code, is amended by 
inserting ``(other than the retirement system under chapter 1223 of 
this title)'' after ``retirement system''.

SEC. 513. DISTRIBUTION IN GRADE OF MARINE CORPS RESERVE OFFICERS IN AN 
              ACTIVE STATUS IN GRADES BELOW BRIGADIER GENERAL

    The table in section 12005(c)(1) of title 10, United States Code, 
is amended to read as follows:

``Colonel............................................        2 percent 
Lieutenant colonel...................................        8 percent 
Major................................................       16 percent 
Captain..............................................       39 percent 
First lieutenant and second lieutenant (when combined    35 percent.''.
with the number authorized for general officer grades 
under section 12004 of this title).

SEC. 514. TUITION ASSISTANCE FOR OFFICERS.

    (a) Authority To Reduce or Waive Active Duty Service Obligation.--
Subsection (b) of section 2007 of title 10, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by inserting ``or full-time National Guard duty'' after 
        ``active duty'' each place it appears; and
            (2) by adding at the end the following new paragraph:
    ``(2) Notwithstanding paragraph (1), the Secretary of the military 
department may reduce or waive the active duty service obligation--
            ``(A) in the case of a commissioned officer who is subject 
        to mandatory separation;
            ``(B) in the case of a commissioned officer who has 
        completed the period of active duty service in support of a 
        contingency operation; or
            ``(C) in other exigent circumstances as determined by the 
        Secretary.'.
    (b). Increase in Tuition Assistance Authorized for Army Officers in 
the Selected Reserve.--Paragraph (1) of section 2007(c) of title 10, 
United States Code, is amended to read as follows:
    ``(1) Subject to paragraphs (2) and (3), the Secretary of the Army 
may pay the charges of an educational institution for the tuition or 
expenses of an officer in the Selected Reserve of the Army National 
Guard or the Army Reserve for education or training of such officer.''.
    (c) Effective Date.--The amendment made by subsection (a) may, at 
the discretion of the Secretary concerned, be applied to a service 
obligation incurred by an officer serving on active duty as of the date 
of the enactment of this Act.

                 Subtitle C--Reserve Component Matters

SEC. 521. REVISION TO STATUTORY PURPOSE OF THE RESERVE COMPONENTS.

    Subsection 10102 of title 10, United States Code, is amended by 
striking ``, during'' and all that follows through ``planned 
mobilization,''.

SEC. 522. IMPROVED ACCESS TO RESERVE COMPONENT MEMBERS FOR ENHANCED 
              TRAINING.

    (a) Reserve Components Generally.-- Section 12301 of title 10, 
United States Code, is amended--
            (1) in subsection (a), by striking ``(other than for 
        training)'';
            (2) in subsection (c)--
                    (A) in the first sentence, by striking ``(other 
                than for training)'' and inserting ``as provided in 
                subsection (a)''; and
                    (B) in the second sentence, by striking ``ordered 
                to active duty (other than for training)'' and 
                inserting ``so ordered to active duty''; and
            (3) in subsection (e), by striking ``(other than for 
        training)'' and inserting ``as provided in subsection (a)''.
    (b) Ready Reserve.--Section 12302 of such title is amended by 
striking ``(other than for training)'' in subsections (a) and (c).
    (c) Order to Active Duty Other Than During War or National 
Emergency.--Section 12304(a) of such title is amended by striking 
``(other than for training)''.
    (d) Standby Reserve.--Section 12306 of such title is amended--
            (1) in subsection (a), by striking ``(other than for 
        training) only''; and
            (2) in subsection (b), by striking ``(other than for 
        training)'' in paragraphs (1) and (2) and inserting ``as 
        provided in section 12301(a) of this title''.
    (d) Standby Reserve.--Section 12306 of such title is amended by 
striking ``(other than for training)'' each place it appears and 
inserting ``as provided in section 12301(a)''.

SEC. 523. STATUS UNDER DISABILITY RETIREMENT SYSTEM FOR RESERVE MEMBERS 
              RELEASED FROM ACTIVE DUTY DUE TO INABILITY TO PERFORM 
              WITHIN 30 DAYS OF CALL TO ACTIVE DUTY.

    (a) In General.--Chapter 61 of title 10, United States Code, is 
amended by inserting after section 1206 the following new section:
``Sec. 1206a. Reserve component members unable to perform duties when 
              ordered to active duty: disability system processing
    ``(a) Members Released From Active Duty Within 30 Days.--A member 
of a reserve component who is ordered to active duty for a period of 
more than 30 days and is released from active duty within 30 days of 
commencing such period of active duty for a reason stated in subsection 
(b) shall be considered for all purposes under this chapter to have 
been serving under an order to active duty for a period of 30 days or 
less.
    ``(b) Applicable Reasons for Release.--Subsection (a) applies in 
the case of a member released from active duty because of a failure to 
meet--
            ``(1) physical standards for retention; or
            ``(2) medical or dental standards for deployment due to a 
        preexisting condition not aggravated during the period of 
        active duty.
    ``(c) Savings Provision for Medical Care Provided While on Active 
Duty.--Notwithstanding subsection (a), any benefit under chapter 55 of 
this title received by a member described in subsection (a) or a 
dependent of such member before or during the period of active duty 
shall not be subject to recoupment or otherwise affected.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1206 the following new item:

``1206a. Reserve component members unable to perform duties when 
                            ordered to active duty: disability system 
                            processing.''.

SEC. 524. FEDERAL CIVIL SERVICE MILITARY LEAVE FOR RESERVE AND NATIONAL 
              GUARD CIVILIAN TECHNICIANS.

    Section 6323(d)(1) of title 5, United States Code is amended by 
striking ``(other than active duty during a war or national emergency 
declared by the President or Congress)''.

SEC. 525. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR OFFICERS 
              COMMISSIONED THROUGH ROTC PROGRAM AT MILITARY JUNIOR 
              COLLEGES.

    (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:
    ``(5)(A) The Secretary of the Army may provide an individual who 
received a commission as a Reserve officer in the Army from a military 
junior college through a program under this chapter and who does not 
have a baccalaureate degree with financial assistance for pursuit of a 
baccalaureate degree.
    ``(B) Such assistance is in addition to any financial assistance 
provided under paragraph (1), (3), or (4).
    ``(C) The agreement and reimbursement requirements established in 
section 2005 of this title are applicable to financial assistance under 
this paragraph.
    ``(D) An officer receiving financial assistance under this 
paragraph shall be attached to the unit of the Army at the educational 
institution at which the officer is pursuing a baccalaureate degree and 
shall be considered to be a member of the Senior Reserve Officers' 
Training Corps on inactive duty for training, as defined in section 
101(23) of title 38.
    ``(E) A qualified officer who did not previously receive financial 
assistance under this section is eligible to receive educational 
assistance under this paragraph.
    ``(F) A Reserve officer may not be called or ordered to active duty 
for a deployment while participating in the program under this 
paragraph.
    ``(G) Any service obligation incurred by an officer under an 
agreement entered into under this paragraph shall be in addition to any 
service obligation incurred by that officer under any other provision 
of law or agreement.
    ``(H) The amount obligated during any fiscal year under this 
paragraph and paragraph (4) of section 2107a(c) of this title may not 
exceed a total of $1,500,000.''.
    (b) Financial Assistance Program for Service in Troop Program 
Units.--Section 2107a(c) of such title is amended by adding at the end 
the following new paragraphs:
    ``(4)(A) The Secretary of the Army may provide an individual who 
received a commission as a Reserve officer in the Army from a military 
junior college through a program under this chapter and who does not 
have a baccalaureate degree with financial assistance for pursuit of a 
baccalaureate degree.
    ``(B) Such assistance is in addition to any provided under 
paragraph (1) or (2).
    ``(C) The agreement and reimbursement requirements established in 
section 2005 of this title are applicable to financial assistance under 
this paragraph.
    ``(D) An officer receiving financial assistance under this 
paragraph shall be attached to the unit of the Army at the educational 
institution at which the officer is pursuing a baccalaureate degree and 
shall be considered to be a member of the Senior Reserve Officers' 
Training Corps on inactive duty for training, as defined in section 
101(23) of title 38.
    ``(E) A qualified officer who did not previously receive financial 
assistance under this section is eligible to receive educational 
assistance under this paragraph.
    ``(F) A Reserve officer may not be called or ordered to active duty 
for a deployment while participating in the program under this 
paragraph.
    ``(G) Any service obligation incurred by an officer under an 
agreement entered into under this paragraph shall be in addition to any 
service obligation incurred by that officer under any other provision 
of law or agreement.''.
    ``(H) As provided in subparagraph (H) of section 2107(c)(5) of this 
title, the amount obligated during any fiscal year under this paragraph 
and paragraph (5) of section 2107(c) of this title may not exceed a 
total of $1,500,000.''.
    (c) Repeal of Sunset Provision for Financial Assistance Program for 
Students not Eligible for Advanced Training.--Section 2103a of such 
title is amended by striking subsection (d).
    (d) Annual Implementation Report.--The Secretary of the Army shall 
submit to the Committees on Armed Services of the Senate and House of 
Representatives an annual report, for each of the next six years after 
the enactment of this Act, providing information on the experience of 
the Department of Defense during the preceding year under paragraph (5) 
of section 2107(c) of title 10, United States Code, as added by 
subsection (a), and under paragraph (4) of section 2107a(c) of title 
10, United States Code, as added by subsection (b). The report for with 
respect to any year shall be submitted not later March 31 of the 
following year.

SEC. 526. EFFECT OF APPOINTMENT OR COMMISSION AS OFFICER ON ELIGIBILITY 
              FOR SELECTED RESERVE EDUCATION LOAN REPAYMENT PROGRAM FOR 
              ENLISTED MEMBERS.

    (a) Continuation of Loan Repayment.--Section 16301(a) of title 10, 
United States Code, is amended--
            (1) in paragraph (2), by striking ``The Secretary'' in the 
        first sentence and inserting ``Except as provided in paragraph 
        (3), the Secretary of Defense''; and
            (2) by adding at the end the following new paragraph:
    ``(3) In the case of a commitment made by the Secretary of Defense 
after the date of the enactment of this paragraph to repay a loan under 
paragraph (1) conditioned upon the performance by the borrower of 
service as an enlisted member under paragraph (2), the Secretary shall 
repay the loan for service performed by the borrower as an officer 
(rather than as an enlisted member) in the case of a borrower who, 
after such commitment is entered into and while performing service as 
an enlisted member, accepts an appointment or commission as a warrant 
officer or commissioned officer of the Selected Reserve.''.
    (b) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 16301 of title 10, United 
States Code, as amended by subsection (a), to make loan repayments on 
behalf of members of the reserve components who accept an appointment 
or commission as a warrant officer or commissioned officer of the 
Selected Reserve may not exceed $1,000,000.

SEC. 527. NUMBER OF STARBASE ACADEMIES IN A STATE.

    Paragraph (3) of section 2193b(c) of title 10, United States Code, 
is amended to read as follows:
    ``(3)(A) Subject to subparagraph (B), the Secretary may not support 
the establishment in any State of more than two academies.
    ``(B) The Secretary may waive the limitation in subparagraph (A). 
Any such waiver shall be made under criteria to be prescribed by the 
Secretary.''.

SEC. 528. COMPTROLLER GENERAL ASSESSMENT OF INTEGRATION OF ACTIVE AND 
              RESERVE COMPONENTS OF THE NAVY.

    (a) Assessment.--The Comptroller General shall review the plan of 
the Secretary of the Navy for, and implementation by the Secretary of, 
initiatives undertaken within the Navy to improve the integration of 
the active and reserve components of the Navy in peacetime and wartime 
operations resulting from--
            (1) the Naval Reserve Redesign Study carried out by the 
        Navy: and
            (2) the zero-based review of reserve component force 
        structure undertaken by the commander of the Fleet Forces 
        Command of the Navy during fiscal year 2004.
    (b) Report.--No later than March 31, 2005, the Comptroller General 
shall submit to the Committees on Armed Services of the Senate and 
House of Representatives a report on the results of the review under 
subsection (a). The Comptroller General shall include in the report 
recommendations for improved active and reserve component integration 
in the Navy.
    (c) Limitation.--No funds appropriated or otherwise made available 
by this Act may be obligated or expended to decommission a Naval 
Reserve or Marine Corps Reserve aviation squadron until 90 days after 
the date on which the report required by subsection (b) is submitted to 
the Committees on Armed Services of the Senate and House of 
Representatives.
    (d) Matters to be Examined.--In conducting the review, the 
Comptroller General shall examine the following:
            (1) The criteria the Navy used to determine the following 
        with respect to integration of the active and reserve 
        components of the Navy:
                    (A) The future mix of active and reserve component 
                force structure.
                    (B) Organization of command and control elements.
                    (C) Manpower levels.
                    (D) Basing changes.
            (2) The extent to which the plans of the Navy for improving 
        the integration of the active and reserve components of the 
        Navy considered each of the following:
                    (A) The new Fleet Response Plan of the Navy.
                    (B) The flexible deployment concept.
                    (C) Global operations.
                    (D) Emerging mission requirements.
                    (E) Other evolving initiatives.
            (3) The manner in which the timing of the execution of 
        planned active and reserve integration initiatives will 
        correlate with the funding of those initiatives, including 
        consideration of an evaluation of the adequacy of the funding 
        allocated to those integration initiatives.
            (4) For naval aviation forces, the extent to which the 
        active and reserve component integration plans of the Navy will 
        affect factors such as--
                    (A) common training and readiness standards for 
                active and reserve forces;
                    (B) reserve component access to the same equipment 
                as the active component;
                    (C) relationships between command and headquarters 
                elements of active and reserve forces; and
                    (D) trends in the use by the Navy of units referred 
                to as ``associate'' units or ``blended'' units.
                    (E) Basing of future aviation forces.
                    (F) Employment of Naval Reserve aviation forces and 
                personnel in peacetime and wartime operations.

SEC. 529. OPERATIONAL ACTIVITIES CONDUCTED BY THE NATIONAL GUARD UNDER 
              AUTHORITY OF TITLE 32.

    (a) In General.--Title 32, United States Code, is amended by adding 
at the end the following new chapter:

       ``CHAPTER 9--OPERATIONS OF A NATIONAL OR FEDERAL INTEREST

``Sec.
``901. Operational activities.
``902. Operational duty.
``903. Funding assistance.
``904. Operations requests.
``Sec. 901. Operational activities
    ``The Secretary of Defense may provide funds in advance or on a 
reimbursable basis to a Governor to employ National Guard units and 
individuals to conduct operational activities that the Secretary 
determines to be in the national interest. The Secretary of Defense 
shall prescribe regulations to implement this chapter.
``Sec. 902. Operational duty
    ``All duty performed under this chapter shall be considered to be 
full-time National Guard duty under section 502(f) of this title. 
Members of the National Guard performing full-time National Guard duty 
in the Active Guard and Reserve Program may support or execute 
operational activities performed by the National Guard under this 
chapter.
``Sec. 903. Funding assistance
    ``When the Secretary of Defense determines that certain operational 
activities of the National Guard are in the national interest under 
section 901 of this title, the Secretary shall provide funds to a State 
in an amount that the Secretary determines is appropriate for the 
following costs of the operational activities from funds available to 
the Department for related purposes:
            ``(1) The pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses of personnel of the 
        National Guard of that State.
            ``(2) The operation and maintenance of the equipment and 
        facilities of the National Guard of that State.
            ``(3) The procurement of services and equipment, and the 
        leasing of equipment, for the National Guard of that State.
``Sec. 904. Operations requests
    ``(a) Requests.--A Governor of a State may request funding 
assistance for the operational activities of the National Guard of that 
State from the Secretary of Defense. Any such request shall include the 
following:
            ``(1) The specific intended operational activities of the 
        National Guard of that State.
            ``(2) An explanation of why the operational activities are 
        in the national interest.
            ``(3) A certification that operational activities are to be 
        conducted at a time when the personnel involved are not in 
        Federal service.
            ``(4) A certification that participation by National Guard 
        personnel in the operational activities is service in addition 
        to training required under section 502 of this title.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
such title is amended by adding at the end the following new item:

``9. Operations of a National or Federal Interest...........     901''.
    (c) Conforming Amendment.--Section 115(h) of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(i) Certain Full-Time National Guard Duty Personnel Excluded From 
Counting for Full-Time National Guard Duty End Strengths.--In counting 
full-time National Guard duty personnel for the purpose of end-
strengths authorized pursuant to subsection (a)(1), persons 
involuntarily performing operational activities under chapter 9 of 
title 32 shall be excluded.''.

SEC. 530. ARMY PROGRAM FOR ASSIGNMENT OF ACTIVE COMPONENT ADVISERS TO 
              UNITS OF THE SELECTED RESERVE.

    (a) Change in Minimum Number Required to be Assigned.--Section 
414(c)(1) of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 10 U.S.C. 12001 note) is amended by striking 
``5,000'' and inserting ``3,500''.
    (b) Limitation on Reductions.--Notwithstanding the amendment made 
by subsection (a), the Secretary of the Army may not reduce the number 
of active component Reserve support personnel below the number of such 
personnel as of the date of the enactment of this Act until the report 
required by subsection (c) has been submitted.
    (c) Report.--Not later than March 31, 2005, the Secretary of the 
Army shall submit to the Committees on Armed Services of the Senate and 
House of Representatives a report on the support by active components 
of the Army for training and readiness of the Army National Guard and 
Army Reserve. The report shall include an evaluation and determination 
of each of the following:
            (1) The effect on the ability of the Army to improve such 
        training and readiness resulting from the reduction under the 
        amendment made by subsection (a) in the minimum number of 
        active component Reserve support personnel.
            (2) The adequacy of having 3,500 members of the Army (the 
        minimum number required under the law as so amended) assigned 
        as active component Reserve support personnel in order to meet 
        emerging training requirements in the Army reserve components 
        in connection with unit and force structure conversions and 
        preparations for wartime deployment
            (3) The nature and effectiveness of efforts by the Army to 
        reallocate the 3,500 personnel assigned as active component 
        Reserve support personnel to higher priority requirements and 
        to expand the use of reservists on active duty to meet reserve 
        component training needs.
            (4) Whether the Army is planning further reductions in the 
        number of active component Reserve support personnel and, if 
        so, the scope and rationale for those reductions.
            (5) Whether an increase in Army reserve component full-time 
        support personnel will be required to replace the loss of 
        active component Reserve support personnel.
    (d) Definition.--In this section, the term ``active component 
Reserve support personnel'' means the active component Army personnel 
assigned as advisers to units of the Selected Reserve of the Ready 
Reserve of the Army pursuant to section 414 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 
12001 note).

                  Subtitle D--Joint Officer Management

SEC. 531. STRATEGIC PLAN TO LINK JOINT OFFICER DEVELOPMENT TO OVERALL 
              MISSIONS AND GOALS OF DEPARTMENT OF DEFENSE.

    (a) Plan Required.--(1) The Secretary of Defense shall develop a 
strategic plan for joint officer management and joint professional 
military education that links joint officer development to the 
accomplishment of the overall missions and goals of the Department of 
Defense, as set forth in the most recent national military strategy 
under section 153(d) of title 10, United States Code. Such plan shall 
be developed for the purpose of ensuring that sufficient numbers of 
qualified officers are available as necessary to meet the needs of the 
Department for qualified officers who are operationally effective in 
the joint environment.
    (2) The Secretary shall develop the strategic plan with the advice 
of the Chairman of the Joint Chiefs of Staff.
    (b) Matters to be Included.--As part of the strategic plan under 
subsection (a), the Secretary shall include the following:
            (1) A statement of the levels of joint officer resources 
        needed to be available to properly support the overall missions 
        of the Department of Defense, with such resources to be 
        specified by the number of officers with the joint specialty, 
        the number of officers required for service in joint duty 
        assignment positions, and the training and education resources 
        required.
            (2) An assessment of the available and projected joint 
        officer development resources (including officers, educational 
        and training resources, and availability of joint duty 
        assignment positions and tours of duty) necessary to achieve 
        the levels specified under paragraph (1).
            (3) Identification of any problems or issues arising from 
        linking resources for joint officer development to 
        accomplishment of the objective of meeting the levels specified 
        under paragraph (1) to resolve those problems and issues and 
        plans.
            (4) A description of the process for identification of the 
        requirement for joint specialty officers.
            (5) A description of the career development and management 
        of joint specialty officers and of any changes to be made to 
        facilitate achievement of the levels of resources specified in 
        paragraph (1), including additional education requirements, 
        promotion opportunities, and assignments to fill joint 
        assignments.
    (c) Inclusion of Reserve Component Officers.--In developing the 
strategic plan required by subsection (a), the Secretary shall include 
joint officer development for officers on the reserve active-status 
list in the plan.
    (d) Report.--The Secretary shall submit the plan developed under 
this section to the Committees on Armed Services of the Senate and 
House of Representatives not later than January 15, 2006.
    (e) Additional Assessment.--Not later than January 15, 2007, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and House of Representatives, as a follow-on to the 
report under subsection (d), a report providing an assessment of, and 
initiatives to improve, the performance in joint matters of the 
following:
            (1) Senior civilian officers and employees in the Office of 
        the Secretary of Defense, the Defense Agencies, and the 
        military departments.
            (2) Senior noncommissioned officers.
            (3) Senior leadership in the reserve components.

SEC. 532. JOINT REQUIREMENTS FOR PROMOTION TO FLAG OR GENERAL OFFICER 
              GRADE.

    (a) Effective Date for Joint Specialty Officer Requirement.--
Subsection (a)(2) of section 619a of title 10, United States Code, is 
amended by striking ``September 30, 2007'' and inserting ``September 
30, 2008''.
    (b) Exception to Joint Duty Requirement for Officers Serving in 
Joint Duty Assignment When Considered for Promotion.--Subsection (b)(4) 
of such section is amended by striking ``if--'' and all that follows 
through ``(B) the officer's'' and inserting ``if the officer's''.

SEC. 533. CLARIFICATION OF TOURS OF DUTY QUALIFYING AS A JOINT DUTY 
              ASSIGNMENT.

    (a) Consecutive Tours of Duty in Joint Duty Assignments.--Section 
668(c) of title 10, United States Code, is amended by striking ``within 
the same organization''.
    (b) Effective Date.--The amendment made by subsection (a) shall not 
apply in the case of a joint duty assignment completed by an officer 
before the date of the enactment of this Act, except in the case of an 
officer has continued in joint duty assignments, without a break in 
service in such assignments, between the end of such assignment and the 
date of the enactment of this Act.

SEC. 534. AUTHORITY FOR RESERVE OFFICERS TO QUALIFY AS JOINT SPECIAL 
              OFFICERS.

    (a) Authority.--Subsection (a) of section 661 of title 10, United 
States Code, is amended by striking ``on the active-duty list''.
    (b) Nominations for Selection.--Subsection (b) of such section is 
amended in the second sentence--
            (1) by striking ``and'' after ``military department,''; and
            (2) by inserting after ``such date,'' the following: ``, 
        and each reserve component officer in an active status who is 
        not on the active-duty list,''.
    (c) Conforming Amendments.--(1) Section 662 of such title is 
amended--
            (A) in subsection (a), by inserting ``on the active-duty 
        list'' after ``qualifications of officers'' in the matter 
        preceding paragraph (1); and
            (B) in subsection (b), by inserting ``on the active-duty 
        list'' after ``preceding fiscal year of officers'' in the first 
        sentence.
    (2)(A) The heading of such section is amended to read as follows:
``Sec. 662. Promotion policy objectives for joint officers on the 
              active-duty list''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 38 of such title is amended to read as 
follows:

``662. Promotion policy objectives for joint officers on the active-
                            duty list.''.
    (d) Annual Report to Congress.--(1) Section 667 of such title is 
amended--
            (A) by redesignating paragraph (18) as paragraph (19); and
            (B) by inserting after paragraph (17) the following new 
        paragraph (18):
            ``(18) The implementation of authority under section 661 of 
        this title to certify reserve component officers as joint 
        specialty officers, together with the number of reserve 
        component officers who were so certified during the reporting 
        period.''.
    (2) The Secretary of Defense shall include in the annual report of 
the Secretary to Congress for fiscal year 2005, as part of the material 
included in that report pursuant to paragraph (18) of section 667 of 
title 10, United States Code, a summary of the joint officer management 
policies adopted for reserve component officers pursuant to the 
amendments made by subsections (a) and (b).

              Subtitle E--Professional Military Education

SEC. 541. IMPROVEMENT TO PROFESSIONAL MILITARY EDUCATION IN THE 
              DEPARTMENT OF DEFENSE.

    (a) In General.--Part III of subtitle A of title 10, United States 
Code, is amended--
            (1) by redesignating chapter 107 as chapter 106A; and
            (2) by inserting before chapter 108 the following new 
        chapter:

             ``CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

``Sec.
``2151. Definitions
``2152. Professional military education: general requirements.
``2153. Capstone course: newly selected general and flag officers.
``2154. Joint professional military education: three-phase approach.
``2155. Intermediate level service colleges: written examination for 
                            selection for attendance.
``2156. Joint professional military education phase II program of 
                            instruction.
``2157. Intermediate and senior level service colleges; Joint Forces 
                            Staff College: duration of principle course 
                            of instruction.
``2158. Annual report to Congress.
``Sec. 2151. Definitions
    (a) Joint Professional Military Education.--Joint professional 
military education consists of the rigorous and thorough instruction 
and examination of officers of the armed forces in an environment 
designed to promote a theoretical and practical in-depth understanding 
of joint matters and, specifically, of the subject matter covered. The 
subject matter to be covered by joint professional military education 
shall include at least the following:
                    ``(1) Integrated employment of land, sea, and air 
                forces.
                    ``(2) National military strategy.
                    ``(3) Strategic planning.
                    ``(4) Contingency planning.
                    ``(5) Command and control of combat operations 
                under unified command.
                    ``(6) Joint and combined operations.
                    ``(7) Joint doctrine.
                    ``(8) Joint logistics.
                    ``(9) Joint communications.
                    ``(10) Joint intelligence.
                    ``(11) Campaign planning.
                    ``(12) Joint military command and control systems 
                and the interface of those systems with national 
                command systems.
                    ``(13) Joint force development, including 
                mobilization.
                    ``(14) Joint requirements development.
                    ``(15) Military history.
                    ``(16) Awareness of cultures in areas outside of 
                the United States where United States forces may 
                operate or of forces of foreign countries with whom 
                United States forces may operate.
    ``(b) Other Definitions.--In this chapter:
            ``(1) The term `senior level service school' means any of 
        the following:
                    ``(A) The Army War College.
                    ``(B) The College of Naval Warfare.
                    ``(C) The Air War College.
                    ``(D) The Marine Corps University.
            ``(2) The term `intermediate level service school' means 
        any of the following:
                    ``(A) The United States Army Command and General 
                Staff College.
                    ``(B) The College of Naval Command and Staff.
                    ``(C) The Air Command and Staff College.
                    ``(D) The Marine Corps Command and Staff College.
``Sec. 2152. Joint professional military education: general 
              requirements
    ``(a) In General.--The Secretary of Defense shall implement a 
coherent and comprehensive framework for the joint professional 
military education of officers, including officers nominated under 
section 661 of this title for the joint specialty.
``Sec. 2153. Capstone course: newly selected general and flag officers
    ``(a) Requirement.--Each officer selected for promotion to the 
grade of brigadier general or, in the case of the Navy, rear admiral 
(lower half) shall be required, after such selection, to attend a 
military education course designed specifically to prepare new general 
and flag officers to work with the other armed forces.
    ``(b) Waiver Authority.--(1) Subject to paragraph (2), the 
Secretary of Defense may waive subsection (a)--
            ``(A) in the case of an officer whose immediately previous 
        assignment was in a joint duty assignment and who is thoroughly 
        familiar with joint matters;
            ``(B) when necessary for the good of the service;
            ``(C) in the case of an officer whose proposed selection 
        for promotion is based primarily upon scientific and technical 
        qualifications for which joint requirements do not exist (as 
        determined under regulations prescribed under section 619(e)(4) 
        of this title); and
            ``(D) in the case of a medical officer, dental officer, 
        veterinary officer, medical service officer, nurse, biomedical 
        science officer, or chaplain.
    ``(2) The authority of the Secretary of Defense to grant a waiver 
under paragraph (1) may only be delegated to the Deputy Secretary of 
Defense, an Under Secretary of Defense, or an Assistant Secretary of 
Defense. Such a waiver may be granted only on a case-by-case basis in 
the case of an individual officer.
``Sec. 2154. Joint professional military education: three-phase 
              approach
    ``(a) Three-Phase Approach.--The Secretary of Defense shall 
implement a three-phase approach to joint professional military 
education, as follows:
            ``(1) There shall be a course of instruction, designated 
        and certified by the Secretary of Defense as Phase I 
        instruction, consisting all the elements of a joint 
        professional military education (as specified in section 
        2151(a) of this title), in addition to the principal curriculum 
        taught to all officers at an intermediate level service school.
            ``(2) There shall be a course of instruction, designated 
        and certified by the Secretary of Defense as Phase II 
        instruction, consisting of a joint professional military 
        education curriculum taught in residence at--
                    ``(A) the Joint Forces Staff College; or
                    ``(B) a senior level service school that has been 
                designated and certified by the Secretary of Defense as 
                a joint professional military education institution.
            ``(3) There shall be a course of instruction, designated 
        and certified by the Secretary of Defense as the Capstone 
        course, for officers selected for promotion to the grade of 
        brigadier general or, in the case of the Navy, rear admiral 
        (lower half) and offered in accordance with section 2153 of 
        this title.
    ``(b) Sequenced Approach.--The Secretary shall require the 
sequencing of joint professional military education so that the 
standard sequence of assignments for such education requires an officer 
to complete Phase I instruction before proceeding to Phase II 
instruction, as provided in section 2156(a) of this title.
``Sec. 2155. Intermediate level service school: written examination for 
              selection for attendance
    ``(a) Requirement.--The Secretary of each military department shall 
require that performance on a comprehensive written examination shall 
constitute not less than 20 percent of the evaluation criteria for 
selection of any officer for full-time attendance at an intermediate 
level service school under the jurisdiction of the Secretary. Such an 
examination shall be designed so as to require substantive knowledge of 
military history, national military strategy, service and joint 
doctrine, and such other subjects as the Secretary may require. Such an 
examination shall be required for each class entering an intermediate 
level service school after September 30, 2007.
    ``(b) Selection From Different Service.--The Secretary of a 
military department, in considering candidates for full-time attendance 
at an intermediate level service school under the jurisdiction of the 
Secretary who are officers of an armed force other than the armed force 
that administers that service school, shall consider such an officer to 
be qualified for selection for such attendance if the officer has met 
all the requirements for attendance at the equivalent intermediate 
level service school of that officer's own armed force.
``Sec. 2156. Joint professional military education phase II program of 
              instruction
    ``(a) Prerequisite of Completion of Joint Professional Military 
Education I Program of Instruction.--(1) After September 30, 2009, an 
officer of the armed forces may not be accepted for, or assigned to, a 
program of instruction designated by the Secretary of Defense as joint 
professional military education Phase II unless the officer has 
successfully completed a program of instruction designated by the 
Secretary of Defense as joint professional military education Phase I.
    ``(2) The Chairman of the Joint Chiefs of Staff may grant 
exceptions to the requirement under paragraph (1). Such an exception 
may be granted only on a case-by-case basis for compelling cause, as 
determined by the Chairman. An officer selected to receive such an 
exception shall be required to demonstrate a knowledge of joint matters 
and other aspects of the Phase I curriculum that, to the satisfaction 
of the Chairman, qualifies the officer to meet the minimum requirements 
established for entry into Phase II instruction without first 
completing Phase I instruction. The number of officers selected to 
attend an offering of the principal course of instruction at the Joint 
Forces Staff College or a senior level service school designated by the 
Secretary of Defense as a joint professional military education 
institution who have not completed Phase I instruction should comprise 
no more than 10 percent of the total number of officers selected.
    ``(b) Phase II Requirements.--The Secretary shall require that the 
curriculum for Phase II joint professional military education at any 
school--
            ``(1) focus on developing joint attitudes and perspectives 
        and honing joint warfighting skills; and
            ``(2) be structured --
                    ``(A) so as to adequately prepare students to 
                perform effectively in an assignment to a joint, 
                multiservice organization; and
                    ``(B) so that students progress from a basic 
                knowledge of joint matters learned in Phase I 
                instruction to the level of expertise necessary for 
                successful performance in the joint arena.
    ``(c) Curriculum Content.--In addition to the subjects specified in 
section 2151(a) of this title, the curriculum for Phase II joint 
professional military education shall include the following:
            ``(1) National security strategy.
            ``(2) Theater strategy and campaigning.
            ``(3) Joint planning processes and systems.
            ``(4) Joint, interagency, and multinational capabilities 
        and the integration of those capabilities.
    ``(d) Student Ratio; Faculty Ratio.--(1) For courses of instruction 
in a Phase II program of instruction that is offered at senior level 
service school that has been designated by the Secretary of Defense as 
a joint professional military education institution--
            ``(1) the percentage of students enrolled in any such 
        course who are officers of the armed force that administers the 
        school may not exceed 60 percent, with the remaining services 
        proportionally represented; and
            ``(2) of the faculty at the school who are active-duty 
        officers who provide instruction in such courses, the 
        percentage who are officers of the armed force that administers 
        the school may not exceed 60 percent, with the remaining 
        services proportionally represented.
``Sec. 2157. Intermediate and senior level service schools; Joint 
              Forces Staff College: duration of principle course of 
              instruction
    ``(a) Service Schools.--The duration of the principal course of 
instruction offered at each intermediate level service school and each 
senior level service school may not be less than 10 months of resident 
instruction. The Secretary of Defense may waive the requirement in the 
preceding sentence during a period of war or during a national 
emergency declared by the President or the Congress.
    ``(b) Joint Forces Staff College.--(1) The duration of the 
principal course of instruction offered at the Joint Forces Staff 
College may not be less than 10 weeks of resident instruction.
    ``(2) In this subsection, the term `principal course of 
instruction' means any course of instruction offered at the Joint 
Forces Staff College as Phase II joint professional military education.
``Sec. 2158. Annual report to Congress
    ``The Secretary of Defense shall include in the annual report of 
the Secretary to Congress under section 113(c) of this title, for the 
period covered by the report, the following information (which shall be 
shown for the Department of Defense as a whole and separately for the 
Army, Navy, Air Force, and Marine Corps and each reserve component):
            ``(1) The number of officers who successfully completed a 
        joint professional military education phase II course and were 
        not selected for promotion.
            ``(2) The number of officer students and faculty members 
        assigned by each service to the professional military schools 
        of the other services and to the joint schools.''.
    (b) Transfer of Other Provisions.--Subsections (b) and (c) of 
section 663 of title 10, United States Code, are transferred to section 
2151 of such title, as added by subsection (a), and added at the end 
thereof.
    (c) Conforming Amendments.--(1) Section 663 of such title, as 
amended by subsection (b), is further amended--
            (A) by striking subsections (a) and (e); and
            (B) by striking ``(d) Post-Education Joint Duty 
        Assignments.--(1) The'' and inserting ``(a) Joint Specialty 
        Officers.--The'';
            (C) by striking ``(2)(A) The Secretary'' and inserting 
        ``(b) Other Officers.--(1) The Secretary'';
            (D) by striking ``in subparagraph (B)' and inserting ``in 
        paragraph (2)'';
            (E) by striking ``(B) The Secretary'' and inserting ``(2) 
        The Secretary''; and
            (F) by striking ``in subparagraph (B)' and inserting ``in 
        paragraph (1)''.
    (2)(A) The heading of such section is amended to read as follows:
``Sec. 633. Joint duty assignments after completion of joint 
              professional military education''.
    (B) The item relating to that section in the table of sections at 
the beginning of chapter 38 of such title is amended to read as 
follows:

``633. Joint duty assignments after completion of joint professional 
                            military education.''.
    (d) Conforming Repeal.--Section 1123(b) of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 
103 Stat. 1556) is repealed.
    (e) Clerical Amendment.--The tables of chapters at the beginning of 
subtitle A, and at the beginning of part III of subtitle A, of title 
10, United States Code, are amended by striking the item relating to 
chapter 107 and inserting the following:

``106A. Educational Assistance for Persons Enlisting for          2141 
                            Active Duty.
``107. Professional Military Education  ....................    2151''.

SEC. 542. RIBBONS TO RECOGNIZE COMPLETION OF JOINT PROFESSIONAL 
              MILITARY EDUCATION.

    (a) In General.--(1) Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1134. Joint professional military education ribbon: award
    ``(a) JPME I.--The Secretary of Defense may award a ribbon, of 
appropriate design, as approved by the Secretary, to any person who 
successfully completes a program of instruction approved by the 
Secretary as qualifying for credit as the Joint Professional Military 
Education Phase I program of instruction.
    ``(b) JPME II.--The Secretary of Defense may award a device, of 
appropriate design, as approved by the Secretary, for wear with the 
ribbon awarded under subsection (a), to any person who successfully 
completes a program of instruction approved by the Secretary as 
qualifying for credit as the Joint Professional Military Education 
Phase II course of instruction.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1134. Joint professional military education ribbon: award.''.
    (b) Effective Date.--Section 1134 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to the successful 
completion of a joint professional military education program of 
instruction after November 29, 1989.

SEC. 543. INCREASE IN NUMBER OF PRIVATE-SECTOR CIVILIANS WHO MAY BE 
              ENROLLED FOR INSTRUCTION AT NATIONAL DEFENSE UNIVERSITY.

    Section 2167(a) of title 10, United States Code, is amended by 
striking ``10'' and inserting ``20''.

SEC. 544. REQUIREMENT FOR COMPLETION OF PHASE I JOINT PROFESSIONAL 
              MILITARY EDUCATION BEFORE PROMOTION TO COLONEL OR NAVY 
              CAPTAIN.

    (a) In General.--Chapter 36 of title 10, United States Code, is 
amended by inserting after section 619a the following new section:
``Sec. 619b. Eligibility for consideration for promotion: joint 
              professional military education required before promotion 
              to colonel or Navy captain; exceptions
    ``(a) General Rule.--After September 30, 2007, an officer on the 
active-duty list of the Army, Air Force, or Marine Corps may not be 
appointed to the grade of colonel, and an officer on the active-duty 
list of the Navy may not be appointed to the grade of captain, unless 
the officer has successfully completed a program of instruction 
approved by the Secretary as qualifying for credit as the Joint 
Professional Military Education Phase I or Phase II program of 
instruction.
    ``(b) Exceptions.--Subject to subsection (c), the Secretary of 
Defense may waive subsection (a) in the following circumstances:
            ``(1) When necessary for the good of the service.
            ``(2) In the case of an officer whose proposed selection 
        for promotion is based primarily upon scientific and technical 
        qualifications for which joint requirements do not exist.
            ``(3) In the case of--
                    ``(A) a medical officer, dental officer, veterinary 
                officer, medical service officer, nurse, or biomedical 
                science officer;
                    ``(B) a chaplain; or
                    ``(C) a judge advocate.
    ``(c) Waiver To Be Individual.--A waiver may be granted under 
subsection (b) only on a case-by-case basis in the case of an 
individual officer.
    ``(d) Special Rule for Good-of-the-Service Waiver.--In the case of 
a waiver under subsection (b)(1), the Secretary shall provide that the 
first duty assignment as a colonel or Navy captain of the officer for 
whom the waiver is granted shall be to a program of joint professional 
military education.
    ``(e) Limitation on Delegation of Waiver Authority.--The authority 
of the Secretary of Defense to grant a waiver under subsection (b) 
(other than under paragraph (1) of that subsection) may be delegated 
only to the Deputy Secretary of Defense, an Under Secretary of Defense, 
or an Assistant Secretary of Defense.
    ``(f) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section. The regulations shall 
specifically identify for purposes of subsection (b)(2) those 
categories of officers for which selection for promotion to colonel or, 
in the case of the Navy, captain is based primarily upon scientific and 
technical qualifications for which joint requirements do not exist.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``619b. Eligibility for consideration for promotion: joint professional 
                            military education required before 
                            promotion to colonel or Navy captain; 
                            exceptions.''.

            Subtitle F--Other Education and Training Matters

SEC. 551. COLLEGE FIRST DELAYED ENLISTMENT PROGRAM.

    (a) Codification and Extension of Army Program.--(1) Chapter 31 of 
title 10, United States Code, is amended by inserting after section 510 
the following new section:
``Sec. 511. College First Program
    ``(a) Program Authority.--The Secretary of each military department 
may establish a program to increase the number of, and the level of the 
qualifications of, persons entering the armed forces as enlisted 
members by encouraging recruits to pursue higher education or 
vocational or technical training before entry into active service.
    ``(b) Delayed Entry With Allowance for Higher Education.--The 
Secretary concerned may--
            ``(1) exercise the authority under section 513 of this 
        title--
                    ``(A) to accept the enlistment of a person as a 
                Reserve for service in the Selected Reserve or 
                Individual Ready Reserve of a reserve component, 
                notwithstanding the scope of the authority under 
                subsection (a) of that section, in the case of the Army 
                National Guard of the United States or Air National 
                Guard of the United States; and
                    ``(B) to authorize, notwithstanding the period 
                limitation in subsection (b) of that section, a delay 
                of the enlistment of any such person in a regular 
                component under that subsection for the period during 
                which the person is enrolled in, and pursuing a program 
                of education at, an institution of higher education, or 
                a program of vocational or technical training, on a 
                full-time basis that is to be completed within the 
                maximum period of delay determined for that person 
                under subsection (c); and
            ``(2) subject to paragraph (2) of subsection (d) and except 
        as provided in paragraph (3) of that subsection, pay an 
        allowance to a person accepted for enlistment under paragraph 
        (1)(A) for each month of the period during which that person is 
        enrolled in and pursuing a program described in paragraph 
        (1)(B).
    ``(c) Maximum Period of Delay.--The period of delay authorized a 
person under paragraph (1)(B) of subsection (b) may not exceed the 30-
month period beginning on the date of the person's enlistment accepted 
under paragraph (1)(A) of such subsection.
    ``(d) Allowance.--(1) The monthly allowance paid under subsection 
(b)(2) shall be equal to the amount of the subsistence allowance 
provided for certain members of the Senior Reserve Officers' Training 
Corps with the corresponding number of years of participation under 
section 209(a) of title 37. The Secretary concerned may supplement that 
stipend by an amount not to exceed $225 per month.
    ``(2) An allowance may not be paid to a person under this section 
for more than 24 months.
    ``(3) A member of the Selected Reserve of a reserve component may 
be paid an allowance under this section only for months during which 
the member performs satisfactorily as a member of a unit of the reserve 
component that trains as prescribed in section 10147(a)(1) of this 
title or section 502(a) of title 32. Satisfactory performance shall be 
determined under regulations prescribed by the Secretary concerned.
    ``(4) An allowance under this section is in addition to any other 
pay or allowance to which a member of a reserve component is entitled 
by reason of participation in the Ready Reserve of that component.
    ``(e) Recoupment of Allowance.--(1) A person who, after receiving 
an allowance under this section, fails to complete the total period of 
service required of that person in connection with delayed entry 
authorized for the person under section 513 shall repay the United 
States the amount which bears the same ratio to the total amount of 
that allowance paid to the person as the unserved part of the total 
required period of service bears to the total period.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge of a person in bankruptcy under title 11 that is 
entered less than five years after the date on which the person was, or 
was to be, enlisted in the regular Army pursuant to the delayed entry 
authority under section 513 does not discharge that person from a debt 
arising under paragraph (1).
    ``(4) The Secretary concerned may waive, in whole or in part, a 
debt arising under paragraph (1) in any case for which 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) Special Pay and Bonuses.--Upon enlisting in the regular 
component of the member's armed force, a person who initially enlisted 
as a Reserve under this section may, at the discretion of the Secretary 
concerned, be eligible for all regular special pays, bonuses, education 
benefits, and loan repayment programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 510 the 
following new item:

``511. College First Program''.
    (b) Repeal of Army College First Program.--Section 573 of the 
National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 513 
note) is repealed. The Secretary of the Army shall treat the program 
under section 511 of title 10, United States Code, as added by 
subsection (a), as a continuation of the program under the section 
repealed by the preceding sentence.
    (c) Effective Date.--Section 511 of title 10, United States Code, 
as added by subsection (a), and the repeal made by subsection (b) shall 
take effect on October 1, 2004.
    (d) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 511 of title 10, United States 
Code, as added by subsection (a), to pay allowances to persons accepted 
for enlistment as a Reserve for service in the Selected Reserve or 
Individual Ready Reserve of a reserve component using the expanded 
authority provided by the amendment made by subsection (a) may not 
exceed $5,000,000. The authority to pay allowances under such section 
shall not be considered to be an expanded authority to the extent that 
the authority to pay such allowances was available under section 573 of 
the National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 
513 note), before the repeal of such section by subsection (b).

SEC. 552. STANDARDIZATION OF AUTHORITY TO CONFER DEGREES ON GRADUATES 
              OF COMMUNITY COLLEGE OF THE AIR FORCE WITH AUTHORITY FOR 
              OTHER SCHOOLS OF AIR UNIVERSITY.

    (a) Change in Degree Conferring Authority.--Section 9315(c) of 
title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``Air Education and 
        Training Command of the Air Force'' and inserting ``Air 
        University''; and
            (2) in paragraph (2), by striking ``Air Education and 
        Training Command of the Air Force'' and inserting ``Air 
        University''.
    (b) Conforming and Stylistic Amendments.--(1) Subsection (a) of 
section 9317 of such title is amended--
            (1) by striking ``may confer--'' and inserting ``may confer 
        degrees as follows:'';
            (2) by striking ``the'' in paragraphs (1), (2), and (3) 
        after the paragraph designation and inserting ``The'';
            (3) by striking the semicolon at the end of paragraph (1) 
        and inserting a period;
            (4) by striking ``; and'' at the end of paragraph (2) and 
        inserting a period; and
            (5) by adding at the end the following new paragraph:
            ``(4) An associate level degree upon graduates of the 
        Community College of the Air Force.''.
    (c) Clerical Amendments.--The heading for such section, and the 
item relating to such section in the table of sections at the beginning 
of chapter 901 of such title, are amended by striking the matter 
between the colon and the last word.

SEC. 553. CHANGE IN TITLES OF HEADS OF THE NAVAL POSTGRADUATE SCHOOL.

    (a) President of the School.--(1)(A) Section 7042 of title 10, 
United States Code, is amended by striking ``Superintendent'' each 
place it appears in the text and inserting ``President''.
    (B) The heading of such section is amended to read as follows:
``Sec. 7042. President; assistants''.
    (2)(A) Section 7044 of such title is amended by striking 
``Superintendent'' and inserting ``President of the school'';
    (B) Sections 7048(a) and 7049(e) of such title are amended by 
striking ``Superintendent'' and inserting ``President'';
    (b) Provost and Academic Dean.--(1)(A) Subsection (a) of section 
7043 of title 10, United States Code, is amended to read as follows:
    ``(a) There is at the Naval Postgraduate School the civilian 
position of Provost and Academic Dean. The Provost and Academic Dean 
shall be appointed, to serve for periods of not more than five years, 
by the Secretary of the Navy after consultation with the Naval 
Postgraduate School Board of Advisors and consideration of the 
recommendation of the leadership and faculty of the Naval Postgraduate 
School.''.
    (B) Subsection (b) of such section is amended by striking 
``Academic Dean'' and inserting ``Provost and Academic Dean''.
    (C) The heading of such section is amended to read as follows:
``Sec. 7043. Provost and Academic Dean''.
    (2) Section 5102(c)(10) of title 5, United States Code, is amended 
by striking ``Academic Dean'' and inserting ``Provost and Academic 
Dean''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 605 of such title is amended by striking the items related to 
sections 7042 and 7043 and inserting the following new items:

``7042. President; assistants.
``7043. Provost and Academic Dean.''.

SEC. 554. INCREASE FROM TWO YEARS TO THREE YEARS IN PERIOD FOR WHICH 
              EDUCATIONAL LEAVE OF ABSENCE MAY BE AUTHORIZED.

    Section 708(a) of title 10, United States Code, is amended by 
striking ``two years'' and inserting ``three years''.

SEC. 555. CORRECTION TO DISPARATE TREATMENT OF DISABILITIES SUSTAINED 
              DURING ACCESSION TRAINING.

    (a) Eligibility of Academy Cadets and Midshipmen for Disability 
Retired Pay.--(1) Section 1217 of title 10, United States Code, is 
amended to read as follows:
``Sec. 1217. Cadets, midshipmen, and aviation cadets: applicability of 
              chapter
    ``(a) This chapter applies to cadets at the United States Military 
Academy, the United States Air Force Academy, and the United States 
Coast Guard Academy and midshipmen of the Navy, but only with respect 
to physical disabilities incurred after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 2005.
    ``(b) Monthly cadet pay and monthly midshipman pay under section 
203(c) of title 37 shall be considered to be basic pay for purposes of 
this chapter and the computation of retired pay and severance and 
separation pay to which entitlement is established under this 
chapter.''.
    (2) The item related to section 1217 in the table of sections at 
the beginning of chapter 61 of such title is amended to read as 
follows:

``1217. Cadets, midshipmen, and aviation cadets: applicability of 
                            chapter.''.
    (b) Medical and Dental Care for Senior ROTC Members and 
Applicants.--(1) Chapter 55 of title 10, United States Code, is amended 
by inserting after section 1074a the following new section:
``Sec. 1074b. Medical and dental care: members of, and designated 
              applicants for membership in, Senior ROTC
    ``(a) Under joint regulations prescribed by the administering 
Secretaries, the following persons are entitled to the benefits 
described in subsection (b):
            ``(1) A member of, and a designated applicant for 
        membership in, Senior ROTC who incurs or aggravates an injury, 
        illness, or disease in the line of duty while performing duties 
        pursuant to section 2109 of this title.
            ``(2) A member of, and a designated applicant for 
        membership in, Senior ROTC who incurs or aggravates an injury, 
        illness, or disease while traveling directly to or from the 
        place at which that member or applicant is to perform or has 
        performed duties pursuant to section 2109 of this title.
            ``(3) Each member of, and each designated applicant for 
        membership in, Senior ROTC who incurs or aggravates an injury, 
        illness, or disease in the line of duty while remaining 
        overnight immediately before the commencement of duties 
        performed pursuant to section 2109 of this title or, while 
        remaining overnight, between successive periods of performing 
        duties pursuant to section 2109 of this title, at or in the 
        vicinity of the site of the duties performed pursuant to 
        section 2109 of this title, if the site is outside reasonable 
        commuting distance from the residence of the member or 
        designated applicant.
    ``(b) A person described in subsection (a) is entitled to--
            ``(1) the medical and dental care appropriate for the 
        treatment of the injury, illness, or disease of that person 
        until the resulting disability cannot be materially improved by 
        further hospitalization or treatment; and
            ``(2) subsistence during hospitalization.
    ``(c) A member of, and each designated applicant for membership in, 
Senior ROTC is not entitled to benefits under subsection (b) if the 
injury, illness, or disease or aggravation of an injury, illness, or 
disease of that person described in subsection (a)(2) is the result of 
the gross negligence or the misconduct of the member or applicant for 
membership in Senior ROTC.
    ``(d) In this section, the term `Senior ROTC' means a program under 
chapter 103 of this title.''.
    (2) Section 1074b of title 10, United States Code, as added by 
paragraph (1), shall apply with respect to injuries, illnesses, and 
diseases incurred or aggravated on or after the date of the enactment 
of this Act.
    (3) The table of sections at the beginning of chapter 55 of such 
title is amended by inserting after the item relating to section 1074a 
the following new item:

``1074b. Medical and dental care: members of, and designated applicants 
                            for membership in, Senior ROTC.''.

SEC. 556. PRAYER AT MILITARY SERVICE ACADEMY ACTIVITIES.

    (a) Authority of Superintendent.--The Superintendent of a service 
academy may have in effect such policy as the Superintendent considers 
appropriate with respect to the offering of a voluntary, 
nondenominational prayer at an otherwise authorized activity of the 
academy, subject to such limitations as the President may prescribe.
    (b) Service Academies.--For purposes of this section, the term 
``service academy'' means any of the following:
            (1) The United States Military Academy.
            (2) The United States Naval Academy.
            (3) The United States Air Force Academy.

SEC. 557. REVISION TO CONDITIONS ON SERVICE OF OFFICERS AS SERVICE 
              ACADEMY SUPERINTENDENTS.

    (a) Repeal of Requirement That Officers Retire After Service as 
Superintendent.--Sections 3921, 6371, and 8921 of title 10, United 
States Code, are repealed.
    (b) Minimum Three-Year Tour of Duty as Superintendent.--
            (1) Military Academy.--Section 4333a of such title is 
        amended to read as follows:
``Sec. 4333a. Superintendent: length of assignment
    ``An officer who is detailed to the position of Superintendent of 
the Academy shall be so detailed for a period of not less than three 
years. In any case in which an officer serving as Superintendent is 
reassigned or retires before having completed three years service as 
Superintendent, or otherwise leaves that position (other than due to 
death) without having completed three years service in that position, 
the Secretary of the Army shall submit to Congress notice that such 
officer left the position of Superintendent without having completed 
three years service in that position, together with a statement of the 
reasons why that officer did not complete three years service in that 
position.''.
            (2) Naval Academy.--Section 6951a of such title is 
        amended--
                    (A) by striking the second sentence of subsection 
                (b); and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) An officer who is detailed to the position of Superintendent 
shall be so detailed for a period of not less than three years. In any 
case in which an officer serving as Superintendent is reassigned or 
retires before having completed three years service as Superintendent, 
or otherwise leaves that position (other than due to death) without 
having completed three years service in that position, the Secretary of 
the Navy shall submit to Congress notice that such officer left the 
position of Superintendent without having completed three years service 
in that position, together with a statement of the reasons why that 
officer did not complete three years service in that position.''.
            (3) Air Force Academy.--Section 9333a of such title is 
        amended to read as follows:
``Sec. 9333a. Superintendent: length of assignment
    ``An officer who is detailed to the position of Superintendent of 
the Academy shall be so detailed for a period of not less than three 
years. In any case in which an officer serving as Superintendent is 
reassigned or retires before having completed three years service as 
Superintendent, or otherwise leaves that position (other than due to 
death) without having completed three years service in that position, 
the Secretary of the Air Force shall submit to Congress notice that 
such officer left the position of Superintendent without having 
completed three years service in that position, together with a 
statement of the reasons why that officer did not complete three years 
service in that position.''.
    (b) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 367 
        of such title is amended by striking the item relating to 
        section 3921.
            (2) The table of sections at the beginning of chapter 403 
        of such title is amended to read as follows:

``4333a. Superintendent: length of assignment.''
            (3) The table of sections at the beginning of chapter 573 
        of such title is amended by striking the item relating to 
        section 6371.
            (4) The table of sections at the beginning of chapter 867 
        of such title is amended by striking the item relating to 
        section 8921.
            (5) The table of sections at the beginning of chapter 903 
        of such title is amended to read as follows:

``9333a. Superintendent: length of assignment.''

SEC. 558. CODIFICATION OF PROHIBITION ON IMPOSITION OF CERTAIN CHARGES 
              AND FEES AT THE SERVICE ACADEMIES.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 4359. Cadets: charges and fees for attendance; limitation
    ``(a) Prohibition.--Except as provided in subsection (b), no charge 
or fee for tuition, room, or board for attendance at the Academy may be 
imposed unless the charge or fee is specifically authorized by a law 
enacted after October 5, 1994.
    ``(b) Exception.--The prohibition specified in subsection (a) does 
not apply with respect to any item or service provided to cadets for 
which a charge or fee is imposed as of October 5, 1994. The Secretary 
of Defense shall notify Congress of any change made by the Academy in 
the amount of a charge or fee authorized under this subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4359. Cadets: charges and fees for attendance; limitation.''.
    (b) United States Naval Academy.--(1) Chapter 603 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 6978. Midshipmen: charges and fees for attendance; limitation
    ``(a) Prohibition.--Except as provided in subsection (b), no charge 
or fee for tuition, room, or board for attendance at the Naval Academy 
may be imposed unless the charge or fee is specifically authorized by a 
law enacted after October 5, 1994.
    ``(b) Exception.--The prohibition specified in subsection (a) does 
not apply with respect to any item or service provided to midshipmen 
for which a charge or fee is imposed as of October 5, 1994. The 
Secretary of Defense shall notify Congress of any change made by the 
Naval Academy in the amount of a charge or fee authorized under this 
subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``4359. Midshipmen: charges and fees for attendance; limitation.''.
    (c) United States Air Force Academy.--(1) Chapter 903 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 9359. Cadets: charges and fees for attendance; limitation
    ``(a) Prohibition.--Except as provided in subsection (b), no charge 
or fee for tuition, room, or board for attendance at the Academy may be 
imposed unless the charge or fee is specifically authorized by a law 
enacted after October 5, 1994.
    ``(b) Exception.--The prohibition specified in subsection (a) does 
not apply with respect to any item or service provided to cadets for 
which a charge or fee is imposed as of October 5, 1994. The Secretary 
of Defense shall notify Congress of any change made by the Academy in 
the amount of a charge or fee authorized under this subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``9359. Cadets: charges and fees for attendance; limitation.''.
    (d) United States Coast Guard Academy.--(1) Chapter 9 of title 14, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 197. Cadets: charges and fees for attendance; limitation
    ``(a) Prohibition.--Except as provided in subsection (b), no charge 
or fee for tuition, room, or board for attendance at the Academy may be 
imposed unless the charge or fee is specifically authorized by a law 
enacted after October 5, 1994.
    ``(b) Exception.--The prohibition specified in subsection (a) does 
not apply with respect to any item or service provided to cadets for 
which a charge or fee is imposed as of October 5, 1994. The Secretary 
of Homeland Security shall notify Congress of any change made by the 
Academy in the amount of a charge or fee authorized under this 
subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``197. Cadets: charges and fees for attendance; limitation.''.
    (e) United States Merchant Marine Academy.--Section 1303 of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1295b), is amended by adding 
at the end the following new subsection:
    ``(j) Limitation on Charges and Fees for Attendance.--
            ``(1) Except as provided in paragraph (2), no charge or fee 
        for tuition, room, or board for attendance at the Academy may 
        be imposed unless the charge or fee is specifically authorized 
        by a law enacted after October 5, 1994.
            ``(2)The prohibition specified in paragraph (1) does not 
        apply with respect to any item or service provided to cadets 
        for which a charge or fee is imposed as of October 5, 1994. The 
        Secretary of Transportation shall notify Congress of any change 
        made by the Academy in the amount of a charge or fee authorized 
        under this paragraph.''.
    (f) Repeal of Codified Provision.--Section 553 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 10 
U.S.C. 4331 note) is repealed.

SEC. 559. QUALIFICATIONS OF THE DEAN OF THE FACULTY OF UNITED STATES 
              AIR FORCE ACADEMY.

    Section 9335(a) of title 10, United States Code, is amended by 
inserting before the period at the end of the second sentence the 
following: ``, except that, if the Dean is not an officer on active 
duty, the Dean shall be a retired officer or former officer, and a 
person may not be appointed or assigned as Dean unless that person 
holds the highest academic degree in that person's academic field''.

     Subtitle G--Medals and Decorations and Special Promotions and 
                              Appointments

SEC. 561. SEPARATE MILITARY CAMPAIGN MEDALS TO RECOGNIZE SERVICE IN 
              OPERATION ENDURING FREEDOM AND SERVICE IN OPERATION IRAQI 
              FREEDOM.

    (a) Requirement.--The President shall establish a campaign medal 
specifically to recognize service by members of the uniformed services 
in Operation Enduring Freedom and a separate campaign medal 
specifically to recognize service by members of the uniformed services 
in Operation Iraqi Freedom.
    (b) Eligibility.--Subject to such limitations as may be prescribed 
by the President, eligibility for a campaign medal established pursuant 
to subsection (a) shall be set forth in regulations to be prescribed by 
the Secretary concerned (as defined in section 101 of title 10, United 
States Code). In the case of regulations prescribed by the Secretaries 
of the military departments, the regulations shall be subject to 
approval by the Secretary of Defense and shall be uniform throughout 
the Department of Defense.

SEC. 562. ELIGIBILITY OF ALL UNIFORMED SERVICES PERSONNEL FOR NATIONAL 
              DEFENSE SERVICE MEDAL.

    The President shall revise the criteria for eligibility for the 
decoration known as the National Defense Service Medal so as to extend 
such eligibility, with respect to service on or after September 11, 
2001, to members of all of the uniformed services.

SEC. 563. AUTHORITY TO APPOINT BRIGADIER GENERAL CHARLES E. YEAGER, 
              UNITED STATES AIR FORCE (RETIRED), TO THE GRADE OF MAJOR 
              GENERAL ON THE RETIRED LIST.

    The President is authorized to appoint, by and with the advice and 
consent of the Senate, Brigadier General Charles E. Yeager, United 
States Air Force (retired), to the grade of major general on the 
retired list of the Air Force. Any such appointment shall not affect 
the retired pay or other benefits of Charles E. Yeager or any benefits 
to which any other person is or may become entitled based upon his 
service.

SEC. 564. POSTHUMOUS COMMISSION OF WILLIAM MITCHELL IN THE GRADE OF 
              MAJOR GENERAL IN THE ARMY.

    (a) Authority.--The President, by and with the advice and consent 
of the Senate, may issue posthumously a commission as major general, 
United States Army, in the name of the late William Mitchell, formerly 
a colonel, United States Army, who resigned his commission on February 
1, 1926.
    (b) Date of Commission.--A commission issued under subsection (a) 
shall issue as of the date of the death of William Mitchell on February 
19, 1936.
    (c) Prohibition of Benefits.--No person is entitled to receive any 
bonus, gratuity, pay, allowance, or other financial benefit by reason 
of the enactment of this section.

                  Subtitle H--Military Justice Matters

SEC. 571. REVIEW ON HOW SEXUAL OFFENSES ARE COVERED BY UNIFORM CODE OF 
              MILITARY JUSTICE.

    (a) Review Required.--The Secretary of Defense shall review the 
Uniform Code of Military Justice and the Manual for Courts-Martial with 
the objective of determining what changes are required to improve the 
ability of the military justice system to address issues relating to 
sexual assault and to conform the Uniform Code of Military Justice and 
the Manual for Courts-Martial more closely to other Federal laws and 
regulations that address such issues.
    (b) Report.--Not later than March 1, 2005, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the review carried out under subsection (a). The report shall include 
the recommendations of the Secretary for revisions to the Uniform Code 
of Military Justice and, for each such revision, the rationale behind 
that revision.

SEC. 572. SERVICE TIME NOT LOST WHEN CONFINED IN CONNECTION WITH TRIAL 
              IF CONFINEMENT EXCUSED AS UNAVOIDABLE.

    Section 972 of title 10, United States Code, is amended in each of 
subsections (a)(3) and (b)(3) by inserting after ``the trial'' the 
following: ``, unless such confinement is excused as unavoidable''.

SEC. 573. CLARIFICATION OF AUTHORITY OF MILITARY LEGAL ASSISTANCE 
              COUNSEL TO PROVIDE MILITARY LEGAL ASSISTANCE WITHOUT 
              REGARD TO LICENSING REQUIREMENTS.

    Section 1044 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e)(1) Notwithstanding any law regarding the licensure of 
attorneys, a judge advocate or civilian attorney who is authorized to 
provide military legal assistance is authorized to provide that 
assistance in any jurisdiction, subject to such regulations as may be 
prescribed by the Secretary concerned.
    ``(2) In this subsection, the term `military legal assistance' 
includes--
            ``(A) legal assistance provided under this section; and
            ``(B) legal assistance contemplated by sections 1044a, 
        1044b, 1044c, and 1044d of this title.''.

           Subtitle I--Management and Administrative Matters

SEC. 581. THREE-YEAR EXTENSION OF LIMITATION ON REDUCTIONS OF PERSONNEL 
              OF AGENCIES RESPONSIBLE FOR REVIEW AND CORRECTION OF 
              MILITARY RECORDS.

    Section 1559(a) of title 10, United States Code, is amended by 
striking ``During fiscal years 2003, 2004, and 2005,'' and inserting 
``Before October 1, 2008,''.

SEC. 582. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/MISSING 
              PERSONNEL OFFICE (DPMO).

    (a) Minimum Level of Staffing.--Subparagraph (B) of section 
1501(a)(5) of title 10, United States Code, is amended to read as 
follows:
    ``(B)(i) For any fiscal year--
            ``(I) the number of full-time Department of Defense 
        personnel permanently assigned or detailed to the office shall 
        be not less than 46 members of the armed forces and not less 
        than 69 civilian employees of the Department of Defense; and
            ``(II) the number of permanent positions authorized for the 
        office shall be not less than 46 positions for members of the 
        armed forces and not less than 69 positions for civilian 
        employees.
    ``(ii) No reductions below the numbers assigned or authorized under 
clause (i) may be made unless expressly authorized by law.
    ``(iii) If for any reason the number of military or civilian 
personnel assigned to the office should fall below the required level 
under clause (i)(I), the Secretary of Defense shall promptly notify the 
Committees on Armed Services of the Senate and House of Representatives 
of the number of personnel so assigned and of the Secretary's plan to 
restore the staffing levels of the office to at least the required 
minimums under clause (i). The Secretary shall publish such notice and 
plan in the Federal Register.''.
    (b) Minimum Level of Funding.--Subparagraph (C) of such section is 
amended to read as follows:
    ``(C) For any fiscal year, the level of funding allocated to the 
office shall be not less than $16,000,000 unless a lower level of 
funding is expressly required by law.''.

SEC. 583. PERMANENT ID CARDS FOR RETIREE DEPENDENTS AGE 70 AND OLDER.

    (a) In General.--(1) Chapter 53 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1060b. Military ID cards: dependents and survivors of retirees; 
              issuance of permanent ID card after attaining 70 years of 
              age
    ``(a) Permanent ID Card After Age 70.--In issuing military ID cards 
to retiree dependents, the Secretary concerned shall issue a permanent 
ID card (not subject to renewal) to any such retiree dependent who has 
attained 70 years of age. Such a permanent ID card shall be issued upon 
the expiration, after the retiree dependent attains 70 years of age, of 
any earlier, renewable military ID card or, if earlier, upon the 
request of such a retiree dependent after attaining age 70.
    ``(b) Definitions.--In this section:
            ``(1) The term `military ID card' means a card or other 
        form of identification used for purposes of demonstrating 
        eligibility for any benefit from the Department of Defense.
            ``(2) The term ``retiree dependent'' means a person who is 
        a dependent of a retired member of the uniformed services, or a 
        survivor of a deceased retired member of the uniformed 
        services, who is eligible for any benefit from the Department 
        of Defense.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1060b. Military ID cards: dependents and survivors of retirees; 
                            issuance of permanent ID card after 
                            attaining 70 years of age.''.
    (b) Effective Date.--Section 1060b of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 2004.

SEC. 584. AUTHORITY TO PROVIDE CIVILIAN CLOTHING TO MEMBERS TRAVELING 
              IN CONNECTION WITH MEDICAL EVACUATION.

    (a) Authority.--Section 1047 of title 10, United States Code, is 
amended--
            (1) by inserting ``(b) Certain Enlisted Members.--'' before 
        ``The Secretary''; and
            (2) by inserting after the section heading the following:
    ``(a) Members Traveling In Connection With Medical Evacuation.--The 
Secretary of the military department concerned may furnish civilian 
clothing to a member at a cost not to exceed $250, or reimburse a 
member for the purchase of civilian clothing in an amount not to exceed 
$250, in the case of a member who--
            ``(1) is medically evacuated for treatment in a medical 
        facility by reason of an illness or injury incurred or 
        aggravated while on active duty; or
            ``(2) after being medically evacuated as described in 
        paragraph (1), is in an authorized travel status from a medical 
        facility to another location approved by the Secretary.''.
    (b) Effective Date.--Subsection (a) of section 1047 of title 10, 
United States Code, as added by subsection (a) shall take effect on 
October 1, 2004.

SEC. 585. AUTHORITY TO ACCEPT DONATION OF FREQUENT TRAVELER MILES, 
              CREDITS, AND TICKETS TO FACILITATE REST AND RECUPERATION 
              TRAVEL OF DEPLOYED MEMBERS OF THE ARMED FORCES AND THEIR 
              FAMILIES.

    (a) Operation Hero Miles.--Chapter 155 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2613. Acceptance of frequent traveler miles, credits, and 
              tickets; use to facilitate rest and recuperation travel 
              of deployed members and their families
    ``(a) Authority to Accept Donation of Travel Benefits.--Subject to 
subsection (c), the Secretary of Defense may accept from any person or 
government agency the donation of travel benefits for the purposes of 
use under subsection (d).
    ``(b) Travel Benefit Defined.--In the section, the term ``travel 
benefit'' means frequent traveler miles, credits for tickets, or 
tickets for air or surface transportation issued by an air carrier or a 
surface carrier, respectively, that serves the public.
    ``(c) Condition on Authority to Accept Donation.--The Secretary may 
accept a donation of a travel benefit under this section only if the 
air or surface carrier that is the source of the benefit consents to 
such donation. Any such donation shall be under such terms and 
conditions as the surface carrier may specify, and the travel benefit 
so donated may be used only in accordance with the rules established by 
the carrier.
    ``(d) Use of Donated Travel Benefits.--A travel benefit accepted 
under this section may be used only for the purpose of--
            ``(1) facilitating the travel of a member of the armed 
        forces who--
                    ``(A) is deployed on active duty away from the 
                permanent duty station of the member; and
                    ``(B) is granted, during such deployment, rest and 
                recuperative leave, emergency leave, convalescent 
                leave, or another form of leave authorized for the 
                member; or
            ``(2) facilitating the travel of family members of a member 
        described in paragraph (1) in order to be reunited with the 
        member.
    ``(e) Administration.--The Secretary shall designate a single 
office in the Department of Defense to carry out this section. That 
office shall be responsible for developing rules and procedures to 
facilitate the acceptance and distribution of travel benefit under this 
section.
    ``(f) Status of Benefits Received.--A member of the armed forces, 
or a family member of a member of the armed forces, who receives a 
travel benefit under this section is deemed to recognize no income from 
the receipt or use of such benefit. A donors of a travel benefit under 
this section is deemed to obtain no tax benefit from such donation.
    ``(g) Family Member Defined.--In this section, the term `family 
member' has the meaning given that term in section 411h(b)(1) of title 
37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2613. Acceptance of frequent traveler miles, credits, and tickets; 
                            use to facilitate rest and recuperation 
                            travel of deployed members and their 
                            families.''.

SEC. 586. LIMITATION ON AMENDMENT OR CANCELLATION OF DEPARTMENT OF 
              DEFENSE DIRECTIVE RELATING TO REASONABLE ACCESS TO 
              MILITARY INSTALLATIONS FOR CERTAIN PERSONAL COMMERCIAL 
              SOLICITATION.

    An amendment to Department of Defense Directive 1344.7, ``Personal 
Commercial Solicitation on DoD Installations'', or cancellation of that 
directive, shall not take effect until after the end of the one-year 
period beginning on the date on which a report containing the results 
of the investigation regarding insurance premium allotment processing, 
which is underway as of the date of the enactment of this Act, is 
submitted to the Committee on Armed Services and the Committee on 
Government Reform of the House of Representatives and the Committee on 
Armed Services and the Committee on Governmental Affairs of the Senate.

SEC. 587. ANNUAL IDENTIFICATION OF REASONS FOR DISCHARGES FROM THE 
              ARMED FORCES DURING PRECEDING FISCAL YEAR.

    Not later than January 1 each year, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and House of 
Representatives a report on discharges from the Army, Navy, Air Force, 
and Marine Corps during the preceding fiscal year. Each such report 
shall show, in the aggregate and for each of those Armed Forces, the 
following:
            (1) The total number of persons discharged during the 
        preceding fiscal year.
            (2) For each separation code, and for each reenlistment 
        eligibility code, used by the Armed Forces, the number of those 
        discharged persons assigned that code.
            (3) For the persons assigned each such separation code, 
        classification of discharges by age, by sex, by race, by 
        military rank or grade, by time in service, by unit (shown at 
        the small unit level), by military occupational specialty (or 
        the equivalent), and by reenlistment eligibility code.

SEC. 588. AUTHORITY FOR FEDERAL RECOGNITION OF NATIONAL GUARD 
              COMMISSIONED OFFICERS APPOINTED FROM FORMER COAST GUARD 
              PERSONNEL.

    Section 305(a) of title 32, United States Code, is amended--
            (1) by striking ``Army, Navy, Air Force, or Marine Corps'' 
        in paragraphs (2), (3), and (4) and inserting ``armed forces''; 
        and
            (2) by striking ``or the United States Air Force Academy'' 
        in paragraph (5) and inserting ``the United States Air Force 
        Academy, or the United States Coast Guard Academy''.

SEC. 589. STUDY OF BLENDED WING CONCEPT FOR THE AIR FORCE.

    (a) Study Required.--Not later than March 1, 2005, the Secretary of 
the Air Force shall submit to Congress a report on the blended wing 
concept for the Air Force. The report shall include the Secretary's 
findings as to the characteristics and locations that are considered 
favorable for a blended wing, a description of the manner in which 
current blended wings are functioning, and a statement of the current 
and future plans of the Air Force to implement the blended wing 
concept.
    (b) Selection Criteria.--The report shall include a description of 
the criteria and attributes that the Secretary requires when choosing 
units to become blended wings.

SEC. 590. CONTINUATION OF IMPACT AID ASSISTANCE ON BEHALF OF DEPENDENTS 
              OF CERTAIN MEMBERS DESPITE CHANGE IN STATUS OF MEMBER.

    (a) Special Rule.--For purposes of computing the amount of a 
payment for an eligible local educational agency under subsection (a) 
of section 8003 of the Elementary and Secondary Education Act (20 
U.S.C. 7703) for school year 2004-2005, the Secretary of Education 
shall continue to count as a child enrolled in a school of such agency 
under such subsection any child who--
            (1) would be counted under paragraph (1)(B) of such 
        subsection to determine the number of children who were in 
        average daily attendance in the school; but
            (2) due to the deployment of both parents or legal 
        guardians of the child, the deployment of a parent or legal 
        guardian having sole custody of the child, or the death of a 
        military parent or legal guardian while on active duty (so long 
        as the child resides on Federal property (as defined in section 
        8013(5) of such Act (7 U.S.C. 7713(5))), is not eligible to be 
        so counted.
    (b) Termination.--The special rule provided under subsection (a) 
applies only so long as the children covered by such subsection remain 
in average daily attendance at a school in the same local educational 
agency they attended before their change in eligibility status.

                       Subtitle J--Other Matters

SEC. 591. EMPLOYMENT PREFERENCES FOR SPOUSES OF CERTAIN DEPARTMENT OF 
              DEFENSE CIVILIAN EMPLOYEES SUBJECT TO RELOCATION 
              AGREEMENTS.

    (a) Spouses of Certain Civilian Employees.--(1) Section 1784 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(h) Inclusion of Spouses of Certain DOD Civilian Employees 
Subject to Relocation Agreements.--(1) For the purposes of this 
section, the spouse of a civilian employee described in paragraph (2) 
shall be considered to be the spouse of a member of the armed forces.
    ``(2) An employee described in this paragraph is a Department of 
Defense employee who, pursuant to a mandatory mobility agreement 
executed as a condition of employment or pursuant to another civilian 
mobility program of the Department of Defense, has had a change of 
permanent duty assignment (A) that was based on the needs of the 
Government, and (B) that required a relocation of the employee's 
residence.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 1784. Employment opportunities: military spouses; certain 
              Department of Defense civilian spouses subject to 
              relocation agreements''.
    (2) The item relating to such section in the table of sections at 
the beginning of subchapter I of chapter 88 of such title is amended to 
read as follows:

``1784. Employment opportunities: military spouses; certain Department 
                            of Defense civilian spouses subject to 
                            relocation agreements.''.
    (c) Effective Date.--Subsection (h) of section 1784 of title 10, 
United States Code, as added by subsection (a), shall apply only with 
respect to spouses of employees described in paragraph (2) of that 
subsection who relocate their residence as a result of a permanent duty 
assignment specified in that paragraph that is effective on or after 
the date of the enactment of this Act.

SEC. 592. REPEAL OF REQUIREMENT TO CONDUCT ELECTRONIC VOTING 
              DEMONSTRATION PROJECT FOR THE FEDERAL ELECTION TO BE HELD 
              IN NOVEMBER 2004.

    Section 1604 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1277; 42 U.S.C. 1977ff note) 
is repealed.

SEC. 593. EXAMINATION OF SEXUAL ASSAULT IN THE ARMED FORCES BY THE 
              DEFENSE TASK FORCE ESTABLISHED TO EXAMINE SEXUAL 
              HARASSMENT AND VIOLENCE AT THE MILITARY SERVICE 
              ACADEMIES.

    (a) Extension of Task Force.--(1) The task force in the Department 
of Defense established by the Secretary of Defense pursuant to section 
526 of the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136; 117 Stat. 1466) to examine matters relating to 
sexual harassment and violence at the United States Military Academy 
and United States Naval Academy shall continue in existence for a 
period of at least 18 months after the date as of which the task force 
would otherwise be terminated pursuant to subsection (i) of that 
section.
    (2) Upon the completion of the functions of the task force referred 
to in paragraph (1) pursuant to section 526 of the National Defense 
Authorization Act for Fiscal Year 2004, the name of the task force 
shall be changed to the Defense Task Force on Sexual Assault in the 
Military Services, and the task force shall then carry out the 
functions specified in this section. The task force shall not begin to 
carry out the functions specified in this section until it has 
completed its functions under such section 526.
    (b) Examination of Matters Relating to Sexual Assault in the Armed 
Forces.--The task force shall conduct an examination of matters 
relating to sexual assault in cases in which members of the Armed 
Forces are either victims or commit acts of sexual assault.
    (c) Recommendations.--The Task Force shall include in its report 
under subsection (e) recommendations of ways by which civilian 
officials within the Department of Defense and leadership within the 
Armed Forces may more effectively address matters relating to sexual 
assault. That report shall include an assessment of, and 
recommendations (including any recommendations for changes in law) for 
measures to improve, with respect to sexual assault, the following:
            (1) Victim care and advocacy programs.
            (2) Effective prevention.
            (3) Collaboration among military investigative 
        organizations with responsibility or jurisdiction.
            (4) Coordination between military and civilian communities, 
        including local support organizations.
            (5) Reporting procedures, data collection, and tracking.
            (6) Oversight of sexual assault programs.
            (7) Military justice issues.
            (8) Other issues identified by the task force relating to 
        sexual assault.
    (d) Methodology.--In carrying out its examination under subsection 
(b) and in formulating its recommendations under subsection (c), the 
task force shall consider the findings and recommendations of previous 
reviews and investigations of sexual assault conducted by the 
Department of Defense and the Armed Forces.
    (e) Report.--(1) Not later than one year after the initiation of 
its examination under subsection (b), the task force shall submit to 
the Secretary of Defense and the Secretaries of the Army, Navy, and Air 
Force a report on the activities of the task force and on the 
activities of the Department of Defense and the Armed Forces to respond 
to sexual assault.
    (2) The report shall include the following:
            (A) A description of any barrier to implementation of 
        improvements as a result of previous efforts to address sexual 
        assault.
            (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 that 
        the task force considers appropriate.
    (3) Within 90 days after 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.
    (f) 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 (e)(3).

SEC. 594. RENEWAL OF PILOT PROGRAM FOR TREATING GED AND HOME SCHOOL 
              DIPLOMA RECIPIENTS AS HIGH SCHOOL GRADUATES FOR 
              DETERMINATIONS OF ELIGIBILITY FOR ENLISTMENT.

    Section 571(e) of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (10 U.S.C. 520 note) is amended to read as 
follows:
    ``(e) Duration of Pilot Program.--The pilot program shall be in 
effect during the period beginning on October 1, 2004, and ending on 
September 30, 2005.''.

SEC. 595. 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 
2005.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$50,000,000 shall be available only for the purpose of providing 
educational agencies assistance to local educational agencies.
    (b) Notification.--Not later than June 30, 2005, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2005 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. 596. SENIOR RESERVE OFFICER TRAINING CORPS AND RECRUITER ACCESS AT 
              INSTITUTIONS OF HIGHER EDUCATION.

    (a) Certification of Compliance With ROTC Access Provisions.--
Subsection (a) of section 983 of title 10, United States Code, is 
amended--
            (1) by inserting ``(1)'' before ``No funds'';
            (2) by striking ``prevents--'' and inserting ``prevents, 
        either (or both) of the following:'';
            (3) by striking ``(1) the'' and inserting ``(A) The'';
            (4) by striking ``; or'' and inserting a period;
            (5) by striking ``(2) a'' and inserting ``(B) A''; and
            (6) by adding at the end the following:
    ``(2)(A) Not later than 180 days after the date of the enactment of 
the National Defense Authorization Act for Fiscal Year 2005 and 
annually thereafter, the Secretary of Defense shall request from each 
institution of higher education that has students participating in a 
Senior Reserve Officer Training Corps program during the then-current 
academic year of that institution a certification that such 
institution, during the next academic year of the institution, will--
            ``(i) permit the Secretary of each military department to 
        maintain a unit of the Senior Officer Training Corps (in 
        accordance with subsection (a)) at that institution (or any 
        subelement of that institution), should such Secretary elect to 
        maintain such a unit; and
            ``(ii) if the Secretary of the military department 
        concerned elects not to establish or maintain a unit of the 
        Senior Reserve Officer Training Corps at that institution, 
        permit a student of that institution (or any subelement of that 
        institution) to enroll in a unit of the Senior Reserve Officer 
        Training Corps at another institution of higher education.
    ``(B) Any certification under subparagraph (A) shall be made by the 
president of the institution (or equivalent highest ranking 
administrative official) and shall be submitted to the Secretary of 
Defense no later than 90 days after receipt of the request from the 
Secretary.
    ``(C) In the case of any institution from which a certification is 
requested under subparagraph (A), if the Secretary of Defense does not 
receive a certification in accordance with subparagraph (B), or if the 
certification does not state that the university will comply with both 
clauses (i) and (ii) of subparagraph (A) during its next academic year, 
the Secretary shall make a determination under paragraph (1) as to 
whether the institution has a policy or practice described in that 
paragraph.''.
    (b) Equal Treatment of Military Recruiters With Other Recruiters.--
Subsection (b)(1) of such section is amended--
            (1) by striking ``entry to campuses'' and inserting 
        ``access to campuses''; and
            (2) by inserting before the semicolon at the end the 
        following: ``in a manner that is at least equal in quality and 
        scope to the access to campuses and to students that is 
        provided to any other employer''.
    (c) Prohibition of Funding for Post-secondary Schools That Prevent 
ROTC Access or Military Recruiting.--(1) Subsection (d) of such section 
is amended--
            (A) in paragraph (1)--
                    (i) by striking ``limitation established in 
                subsection (a) applies'' and inserting ``limitations 
                established in subsections (a) and (b) apply'';
                    (ii) in subparagraph (B), by inserting ``for any 
                department or agency for which regular appropriations 
                are made'' after ``made available''; and
                    (iii) by adding at the end the following new 
                subparagraphs:
            ``(C) Any funds made available for the Department of 
        Homeland Security.
            ``(D) Any funds made available for the National Nuclear 
        Security Administration of the Department of Energy.
            ``(E) Any funds made available for the Department of 
        Transportation.
            ``(F) Any funds made available for the Central Intelligence 
        Agency.''; and
            (B) by striking paragraph (2).
    (2)(A) Subsection (b) of such section is amended by striking 
``subsection (d)(2)'' and inserting ``subsection (d)(1)''.
    (B) Subsection (e) of such section is amended by inserting ``, to 
the head of each other department and agency the funds of which are 
subject to the determination,'' after ``Secretary of Education''.
    (d) Codification and Extension of Exclusion Of Amounts to Cover 
Individual Payments.--Subsection (d) of such section, as amended by 
subsection (c)(1), is further amended--
            (1) by striking ``The'' after ``(1)'' and inserting 
        ``Except as provided in paragraph (2), the''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Any Federal funding specified in paragraph (1) that is 
provided to an institution of higher education, or to an individual, to 
be available solely for student financial assistance, related 
administrative costs, or costs associated with attendance, may be used 
for the purpose for which the funding is provided.''.
    (e) Conforming Amendments.--Subsections (a) and (b) of such section 
are amended by striking ``(including a grant of funds to be available 
for student aid)''.
    (f) Conforming Repeal of Codified Provision.--Section 8120 of the 
Department of Defense Appropriations Act, 2000 (Public Law 106-79; 10 
U.S.C. 983 note), is repealed
    (g) Effective Date.--The amendments made by this section shall 
apply with respect to funds appropriated for fiscal year 2005 and 
thereafter.

SEC. 597. REPORTS ON TRANSFORMATION MILESTONES.

    (a) Military to Civilian Conversions.--Not later than January 31, 
2005, the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report providing 
information as to the number of positions in the Department of Defense 
converted during the previous fiscal year from performance by military 
personnel to performance by civilian personnel. The report shall 
include--
            (1) a description of the skill set of the positions 
        converted;
            (2) specification of the total cost of such conversions and 
        how that cost is being paid for; and
            (3) the number of positions in the Department of Defense 
        projected for such conversion during the period from March 1, 
        2005, to January 31, 2006.
    (b) Civilian Skills Corps Feasibility Study.--(1) The Secretary of 
Defense shall conduct an Armed Forces-wide study of how a system to 
embed certain civilian expertise skill sets within the military on a 
temporary basis could be implemented. The study shall include 
consideration of all skills sets in which, as determined by the 
Secretary of Defense, there is a significant shortfall within the Armed 
Forces or which are high value, but of uncertain need. The study shall 
examine the feasibility of implementing a personnel system that expands 
the capability of the Armed Forces to rapidly access civilian 
volunteers with needed expertise outside of the reserve components.
    (2) The Secretary shall submit to the congressional defense 
committees a report on the results of the study under paragraph (1) not 
later than March 31, 2005.
    (c) Military-to-Military Conversions.--Not later than March 31 of 
each of 2005, 2006, and 2007, the Secretary of Defense shall submit to 
the congressional defense committees a report on the milestones within 
the multiyear transformation for internal military-to-military 
transitions. Each such report shall include--
            (1) the number of units and personnel transferred and 
        retrained within the previous fiscal year and what their new 
        unit designations are; and
            (2) a description of the transformation goals for the 
        upcoming fiscal year and whether the previous years goals were 
        met and why or why not.
    (d) Transformation to Brigade Structure for the Army.--No later 
than March 31 of each year, the Secretary of Defense shall submit to 
the congressional defense committees a report on the status of the 
internal transformation of the Army from a division-orientated system 
to a brigade-orientated one. Such a report shall be submitted for each 
year until the Secretary of the Army certifies to those committees that 
the transformation of the Army to brigade level units has been 
completed.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SECTION 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2005.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2005 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2005, the rates 
of monthly basic pay for members of the uniformed services are 
increased by 3.5 percent.

SEC. 602. AUTHORITY TO PROVIDE FAMILY SEPARATION BASIC ALLOWANCE FOR 
              HOUSING.

    Section 403(d) of title 37, United States Code, is amended--
            (1) in paragraph (1), by striking ``is entitled to'' and 
        inserting ``may be paid''; and
            (2) in paragraph (4), by striking the first sentence and 
        inserting the following new sentence: ``A family separation 
        basic allowance for housing paid to a member under this 
        subsection is in addition to any other allowance or per diem 
        that the member receives under this title.''

SEC. 603. GEOGRAPHIC BASIS FOR BASIC ALLOWANCE FOR HOUSING DURING SHORT 
              CHANGES OF STATION FOR PROFESSIONAL MILITARY EDUCATION OR 
              TRAINING.

    Section 403(d)(3) of title 37, United States Code, is amended by 
adding at the end the following new subparagraph:
            ``(C) If the member is reassigned for a permanent change of 
        station or permanent change of assignment from a duty station 
        in the continental United States to another duty station in the 
        continental United States for a period of not more than one 
        year for the purpose of participating in professional military 
        education or training classes, the Secretary concerned may base 
        the amount of the basic allowance for housing for the member on 
        the duty station to which the member is reassigned or the area 
        in which the dependents reside, whichever the Secretary 
        concerned determines to be most equitable.''.

SEC. 604. IMMEDIATE LUMP-SUM REIMBURSEMENT FOR UNUSUAL NONRECURRING 
              EXPENSES INCURRED BY MEMBERS SERVING OUTSIDE CONTINENTAL 
              UNITED STATES.

    (a) Eligibility for Reimbursement.--Section 405 of title 37, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Lump-Sum Reimbursement for Nonrecurring Expenses.--In 
addition to providing a per diem under this section, the Secretary 
concerned may reimburse a member for actual expenses of a nonrecurring 
nature that the member incurs incident to serving on duty outside of 
the continental United States. The types of expenses for which 
reimbursement may be provided under this paragraph shall be limited to 
those expenses directly related to the conditions or location of the 
duty outside of the continental United States and either of a nature or 
a magnitude not normally incurred by members assigned to duty inside 
the continental United States. In determining the per diem to be paid 
under this section, the Secretary concerned shall not consider expenses 
for which reimbursement is provided under this paragraph.''.
    (b) Use of Defined Term Continental United States.--(1) Subsection 
(a) of such section is amended by striking ``outside of the United 
States or in Hawaii or Alaska'' and inserting ``outside of the 
continental United States''.
    (2) The heading of such section is amended to read as follows:
``Sec. 405. Travel and transportation allowances: per diem while on 
              duty outside the continental United States''.
    (3) The table of sections at the beginning of chapter 7 of such 
title is amended by striking the item relating to section 405 and 
inserting the following new item:

``405. Travel and transportation allowances: per diem while on duty 
                            outside the continental United States.''.

SEC. 605. INCOME REPLACEMENT PAYMENTS FOR RESERVES EXPERIENCING 
              EXTENDED AND FREQUENT MOBILIZATION FOR ACTIVE DUTY 
              SERVICE.

    (a) In General.--(1) Chapter 19 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 910. Replacement of lost income: involuntarily mobilized reserve 
              component members subject to extended and frequent active 
              duty service
    ``(a) Payment Required.--The Secretary concerned shall pay to an 
eligible member of a reserve component of the armed forces an amount 
equal to the monthly active-duty income differential of the member, as 
determined by the Secretary. The payments shall be made on a monthly 
basis.
    ``(b) Eligibility.--Subject to subsection (c), a reserve component 
member is entitled to a payment under this section for any full month 
of active duty of the member, while on active duty under an involuntary 
mobilization order, following the date on which the member--
            ``(1) completes 12 continuous months of service on active 
        duty under such an order;
            ``(2) completes 18 months on active duty during the 
        previous 60 months under such an order; or
            ``(3) is involuntarily mobilized for service on active duty 
        six months or less following the member's separation from the 
        member's previous period of active duty.
    ``(c) Minimum and Maximum Payment Amounts.--(1) A payment under 
this section shall be made to a member for a month only if the amount 
of the monthly active-duty income differential for the month is greater 
than $50.
    ``(2) Notwithstanding the amount determined under subsection (d) 
for a member for a month, the monthly payment to a member under this 
section may not exceed $3,000.
    ``(d) Monthly Active-Duty Income Differential.--For purposes of 
this section, the monthly active-duty income differential of a member 
is the difference between--
            ``(1) the average monthly civilian income of the member; 
        and
            ``(2) the member's total monthly military compensation.
    ``(e) Definitions.--In this section:
            ``(1) The term `average monthly civilian income', with 
        respect to a member of a reserve component, means the amount, 
        determined by the Secretary concerned, of the earned income of 
        the member for either the 12 months preceding the member's 
        mobilization or the 12 months covered by the member's most 
        recent Federal income tax filing, divided by 12.
            ``(2) The term `total monthly military compensation' means 
        the amount, computed on a monthly basis, of the sum of--
                    ``(A) the amount of the regular military 
                compensation (RMC) of the member; and
                    ``(B) any amount of special pay or incentive pay 
                and any allowance (other than an allowance included in 
                regular military compensation) that is paid to the 
                member on a monthly basis.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``910. Replacement of lost income: involuntarily mobilized reserve 
                            component members subject to extended and 
                            frequent active duty service.''.
    (b) Effective Date.--Section 910 of title 37, United States Code, 
as added by subsection (a), shall apply for months after December 2004.

SEC. 606. AUTHORITY FOR CERTAIN MEMBERS DEPLOYED IN COMBAT ZONES TO 
              RECEIVE LIMITED ADVANCES ON THEIR FUTURE BASIC PAY.

    (a) Advancement of Basic Pay.--(1) Chapter 3 of title 37, United 
States Code, is amended by adding at the end the following new section:
``Sec. 212. Advancement of basic pay: members deployed in combat zones 
              for more than one year
    ``(a) Eligibility; Amount Advanced.--(1) If a member of the armed 
forces is assigned to duty in an area for which special pay under 
section 310 of this title is available and the assignment is pursuant 
to orders specifying an assignment of one year or more (or the 
assignment is otherwise extended beyond one year), the member may 
request, during the period of the assignment, the advanced payment of 
not more than three months of the basic pay of the member.
    ``(2) A request by a member described in paragraph (1) for the 
advanced payment of a single month of basic pay shall be granted. The 
Secretary concerned may grant a request for a second or third month of 
advanced basic pay during the assignment for the member upon a showing 
of financial hardship.
    ``(b) Recoupment of Advanced Pay.--The Secretary concerned shall 
recoup an advance made on the basic pay of a member under this section 
in equal installments over a one-year period beginning as provided in 
subsection (c). If the member is serving on active duty for any month 
during the recoupment period, the amount of the installment for the 
month shall be deducted from the basic pay of the member for that 
month. The estate of a deceased member shall not be required to repay 
an advance made to the member under this section.
    ``(c) Commencement of Recoupment.--(1) Except as provided in 
paragraph (2), the recoupment of basic pay advanced to a member under 
this section shall commence beginning with the first month that begins 
after the end of the assignment of the member to duty in an area for 
which special pay under section 310 of this title is available
    ``(2) A member of a reserve component who receives an advancement 
of basic pay under this section shall commence repayment of the advance 
beginning with the first month that begins after the the advanced pay 
is received.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``212. Advancement of basic pay: members deployed in combat zones for 
                            more than one year.''.
    (b) Effective Date.--Section 212 of title 37, United States Code, 
as added by subsection (a), shall take effect October 1, 2004.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF BONUS AND SPECIAL PAY AUTHORITIES.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2004'' and inserting ``December 31, 2005''.
    (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, 2005'' and inserting ``January 1, 
2006''.
    (c) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (d) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
such title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (e) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2004'' 
and inserting ``December 31, 2005''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``the date of the enactment of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 and 
ending on September 30, 2004'' and inserting ``October 30, 2000, and 
ending on December 31, 2005''.
    (h) Reenlistment Bonus for Active and Reserve Members.--Section 
308(g) of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (i) Enlistment Bonus for Active and Reserve Members.--Section 
309(e) of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (j) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of such title is amended by striking 
``December 31, 2004'' and inserting ``December 31, 2005''.
    (k) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2004'' and inserting ``December 
31, 2005''.
    (l) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (m) Retention Bonus for Members Who Have Critical Military Skills 
or Meet Other Criteria.--Section 323(i) of such title is amended by 
striking ``December 31, 2004'' and inserting ``December 31, 2005''.
    (n) Accession or Affiliation Bonus for New Officers in Critical 
Skills.--Section 324(g) of such title is amended by striking ``December 
31, 2004'' and inserting ``December 31, 2005''.

SEC. 612. REDUCTION IN REQUIRED SERVICE COMMITMENT TO RECEIVE ACCESSION 
              BONUS FOR REGISTERED NURSES.

    (a) Reduction.--Section 302d(a)(1) of title 37, United States Code, 
is amended by striking ``four years'' and inserting ``three years''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect October 1, 2004, and apply with respect to written 
agreements referred to in section 302d(a)(1) of title 37, United States 
Code, entered into on or after that date.

SEC. 613. INCREASE IN MAXIMUM MONTHLY RATE AUTHORIZED FOR HARDSHIP DUTY 
              PAY.

    (a) Increase.--Section 305(a) of title 37, United States Code, is 
amended by striking ``$300'' and inserting ``$750''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect October 1, 2004.

SEC. 614. TERMINATION OF ASSIGNMENT INCENTIVE PAY FOR MEMBERS PLACED ON 
              TERMINAL LEAVE.

    (a) Termination.--Subsection (e) of section 307a of title 37, 
United States Code, is amended to read as follows:
    ``(e) Status not Affected by Temporary Duty or Leave.--The service 
of a member in an assignment referred to in subsection (a) shall not be 
considered discontinued during any period that the member is not 
performing service in the assignment by reason of --
            ``(1) the performance by the member of temporary duty 
        pursuant to orders; or
            ``(2) the absence of the member for authorized leave, 
        unless the member is placed on terminal leave and will not be 
        returning to the assignment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to agreements under section 307a(b) of title 37, 
United States Code, entered into on or after the date of the enactment 
of this Act.

SEC. 615. CONSOLIDATION OF REENLISTMENT AND ENLISTMENT BONUS 
              AUTHORITIES FOR REGULAR AND RESERVE COMPONENTS.

    (a) Consolidated Reenlistment Bonus Authority; Eligibility 
Criteria.--(1) Paragraph (1) of subsection (a) of section 308 of title 
37, United States Code, is amended--
            (A) by striking the matter preceding subparagraph (A) and 
        inserting ``The Secretary concerned may pay a bonus under 
        paragraph (2) to a member of the armed forces serving in a 
        regular component or reserve component of the armed force if 
        the member--'';
            (B) by striking subparagraph (A) and inserting the 
        following new subparagraph:
            ``(A) has completed at least 17 months of service in a 
        regular or reserve component of the armed forces, but not more 
        than 18 years of total military service;''; and
            (C) by striking subparagraph (D) and all that follows 
        through the period at the end of such paragraph and inserting 
        the following:
            ``(D) reenlists or voluntarily extends the member's 
        enlistment for a period of at least three years in a regular 
        component or reserve component of the armed forces.''.
    (2) Paragraph (3) of such subsection is amended by striking ``16 
years'' and inserting ``20 years''.
    (3) Paragraph (5) of such subsection is amended to read as follows:
    ``(5) 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 waive all or part of the eligibility 
requirements specified in paragraph (1) in time of war or national 
emergency.''.
    (4) Subsection (b) of such section is amended--
            (A) by inserting ``(1)'' after ``(b)''; and
            (B) by adding at the end the following new paragraph:
    ``(2) Notwithstanding the schedule established for making partial 
bonus payments under paragraph (1), a member of a reserve component 
entitled to a bonus under this section who is called or ordered to 
active duty shall be paid, during that period of active duty, any 
amount of the bonus that becomes payable to the member during that 
period of active duty.''.
    (5) Subsection (g) of such section is amended by striking ``an 
active-duty reenlistment'' and inserting ``a reenlistment''.
    (b) Consolidated Enlistment Bonus Authority.--Section 309(a) of 
such title is amended--
            (1) by striking the first sentence and inserting the 
        following: ``(1) The Secretary concerned may pay a bonus this 
        section to a person who enlists in a regular component or 
        reserve component of the armed forces for a period of at least 
        two years.''; and
            (2) by inserting after the first sentence, as so amended, 
        the following new paragraph:
    ``(2) The amount of a bonus under this section may not exceed 
$20,000.''.
    (c) Repeal of Separate Reenlistment and Enlistment Bonus Authority 
for Reserve Components.--(1) Sections 308b, 308c, 308g, 308h, and 308i 
of such title are repealed.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the items relating to sections 308b, 308c, 
308h, and 308i.
    (d) Effective Date.----(1) Except as provided by paragraphs (2) and 
(3), the amendments made by this section shall take effect October 1, 
2004, and the amendments made by subsections (a) and (b) shall apply to 
reenlistments, the voluntary extension of enlistments, and enlistments 
referred to in section 308(a)(1) or 309(a) of title 37, United States 
Code, entered into on or after that date.
    (2) The amendments made by subsection (c) shall take effect 
December 31, 2004, except that the repeal of section 308g of title 37, 
United States Code, shall take effect on the date of the enactment of 
this Act.
    (3) In the case of a member of the Armed Forces who, on or before 
December 31, 2004, reenlisted, voluntarily extended the enlistment of 
the member, or enlisted in a reserve component of the Armed Forces, 
section 308b, 308c, 308h, or 308i of title 37, United States Code, 
whichever applies to the member, and as in effect on December 31, 2004, 
shall continue to apply with respect to the payment of a bonus under 
such section to the member.
    (e) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under sections 308 and 309 of title 37, 
United States Code, to provide reenlistment and enlistment bonuses to 
members of the uniformed services using the expanded authority provided 
by the amendments made by subsections (a) and (b) may not exceed 
$20,000,000. The bonus authority available under such sections shall 
not be considered to be an expanded authority to the extent that the 
authority was available under a provision of law specified in 
subsection (c), before the repeal of the provision by such subsection.

SEC. 616. REVISION OF AUTHORITY TO PROVIDE FOREIGN LANGUAGE PROFICIENCY 
              PAY.

    (a) In General.--(1) Section 316 of title 37, United States Code, 
is amended to read as follows:
``Sec. 316. Special pay: bonus for members with foreign language 
              proficiency
    ``(a) Bonus Authorized.--The Secretary concerned may pay an annual 
bonus under this section to a member of the uniformed services who--
            ``(1) is qualified in a uniformed services specialty 
        requiring proficiency in a foreign language identified by the 
        Secretary concerned as a foreign language in which it is 
        necessary to have personnel proficient because of national 
        defense or public health considerations;
            ``(2) received training, under regulations prescribed by 
        the Secretary concerned, designed to develop a proficiency in 
        such a foreign language;
            ``(3) is assigned to duties requiring a proficiency in such 
        a foreign language; or
            ``(4) is proficient in a foreign language for which the 
        uniformed service may have a critical need, as determined by 
        the Secretary concerned.
    ``(b) Certification of Proficiency.--Except as provided in 
subsection (e), for a member described in subsection (a) to be eligible 
to receive or retain a bonus under this section, the Secretary 
concerned shall certify the member as being proficient in the foreign 
language for which bonus is offered.
    ``(c) Duration of Certification.--Except as provided in subsection 
(e), the certification of a member as being proficient in a foreign 
language for purposes of receipt of a bonus under this section shall 
expire at the end of the 12-month period beginning on the first day of 
the first month beginning on or after the certification date.
    ``(d) Bonus Amount; Payment Method.--The maximum amount of the 
bonus paid under this section to a member may not exceed $12,000 for 
the 12-month period covered by the certification of the member. The 
Secretary concerned may pay the bonus in a single lump sum at the 
beginning of the certification period or in installments.
    ``(e) Certification Interrupted by Contingency Operation.--(1) The 
Secretary concerned may waive the certification requirement under 
subsection (b) and pay a bonus under this section to a member described 
in subsection (a) who was previously certified in a foreign language, 
but whose certification expired under subsection (c), if--
            ``(A) the member is assigned to duty in connection with a 
        contingency operation; and
            ``(B) the Secretary concerned determines that the member is 
        unable to schedule or complete the certification required by 
        subsection (b) because of that assignment.
    ``(2) For purposes of determining the amount of a bonus to be paid 
to a member under the authority of this subsection, the Secretary 
concerned shall treat the date on which the member was assigned to duty 
in connection with the contingency operation as equivalent to a 
certification date. In the case of a member whose certification expires 
during such duty assignment, the Secretary shall commence the next 12-
month period effective as of the date on which the prior certification 
period expired.
    ``(3) A member who receives a bonus under the authority of this 
subsection shall complete the certification required by subsection (b) 
for the foreign language for which the bonus was paid not later than 
the end of the 180-day period beginning on the date on which the member 
is released from the assignment in connection with the contingency 
operation. The Secretary concerned may extend that period for a member 
in accordance with regulations prescribed under subsection (h). If the 
member fails to obtain the required certification before the end of the 
authorized period, the Secretary concerned may require the member to 
repay all or a portion of the bonus, in the manner provided in 
subsection (g).
    ``(f) Relationship to Other Pay or Allowance.--A bonus under this 
section is in addition to any other pay or allowance payable to a 
member under any other provision of law.
    ``(g) Repayment of Bonus.--(1) The Secretary concerned may require 
a member who receives a bonus under this section, but who does not 
satisfy an eligibility requirement specified in subsection (a) for the 
entire certification period, to repay to the United States an amount 
which bears the same ratio to the total amount of the bonus paid to the 
member as the unsatisfied portion of the certification period bears to 
the entire certification period.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States. A 
discharge in bankruptcy under title 11 that is entered for the member 
less than five years after the expiration of the certification period 
does not discharge the member from a debt arising under this paragraph. 
This paragraph applies to any case commenced under title 11 after the 
date of the enactment of this section.
    ``(h) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of Defense for the armed forces 
under the jurisdiction of the Secretary, by the Secretary of Homeland 
Security for the Coast Guard when the Coast Guard is not operating as a 
service in the Navy, by the Secretary of Health and Human Services for 
the Commissioned Corps of the Public Health Service, and by the 
Secretary of Commerce for the National Oceanic and Atmospheric 
Administration.''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the item relating to section 316 and 
inserting the following new item:

``316. Special pay: bonus for members with foreign language 
                            proficiency.''.
    (b) Conforming Amendments.--(1) Section 316a of title 37, United 
States Code, is repealed.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the item relating to section 316a.

SEC. 617. ELIGIBILITY OF RESERVE COMPONENT MEMBERS FOR CRITICAL SKILLS 
              RETENTION BONUS AND EXPANSION OF AUTHORITY TO PROVIDE 
              BONUS.

    (a) Inclusion of Reserve Component Members.--Section 323 of title 
37, United States Code, is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``who is serving on active duty and'' by 
                inserting ``who is serving on active duty in a regular 
                component or in an active status in a reserve component 
                and who''; and
                    (B) in paragraph (1), by inserting ``, or remain in 
                an active status in a reserve component,'' after 
                ``remain on active duty'';
            (2) in subsection (e)(2), by inserting ``or service in a 
        reserve component'' after ``period of active duty''; and
            (3) in subsection (g), by striking ``active duty'' and 
        inserting ``service''.
    (b) Inclusion of Members Serving Pursuant to Indefinite 
Reenlistment.--Subsection (a) of such section is further amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) in paragraph (2)--
                    (A) by inserting ``other than an enlisted member 
                referred to in paragraph (3),'' after ``enlisted 
                member,''; and
                    (B) by striking the period at the end and inserting 
                ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(3) in the case of an enlisted member serving pursuant to 
        an indefinite reenlistment, the member executes a written 
        agreement to remain on active duty, or remain in an active 
        status in a reserve component, for a period of at least one 
        year.''.
    (c) Additional Criteria for Bonus.--Such section is further 
amended--
            (1) in subsection (a), by striking ``designated critical 
        military skill'' and inserting ``critical military skill 
        designated under subsection (b) or satisfies such other 
        criteria for the bonus established under such subsection'';
            (2) in subsection (b)--
                    (A) by striking ``Designation of Critical Skills.--
                '' and inserting ``Basis for Bonus.--(1)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(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 establish such other criteria as the Secretary 
considers appropriate under which a retention bonus will be provided to 
an officer or enlisted member of the armed forces under subsection 
(a).''; and
            (3) in subsection (h)(1), by striking ``qualified in the 
        critical military skills for which the bonuses were offered'' 
        and inserting ``who were offered the bonuses''.
    (d) Repeal of Separate Special and Incentive Pay Authorities for 
Reserve Components.--(1) Sections 302g, 308d, and 308e of such title 
are repealed.
    (2) In the case of a member of the Armed Forces who, on or before 
December 31, 2004, entered into a written agreement under section 302g 
or 308e of title 37, United States Code, such section 302g or 308e, 
whichever applies to the member, and as in effect on December 31, 2004, 
shall continue to apply after that date with respect to the payment of 
special pay under such section to the member during the term of the 
agreement.
    (e) Clerical Amendments.--(1) The heading of section 323 of such 
title is amended to read as follows:
``Sec. 323 Special pay: retention incentives for members qualified in a 
              critical military skill or who satisfy other eligibility 
              criteria''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended--
            (A) by striking the items relating to sections 302g, 308d, 
        and 308e; and
            (B) by striking the item relating to section 323 and 
        inserting the following new item:

``323. Special pay: retention incentives for members qualified in a 
                            critical military skill or who satisfy 
                            other eligibility criteria.''.
    (f) Effective Date.--(1) Except as provided by paragraph (2), the 
amendments made by this section shall take effect October 1, 2004, and 
the amendments made by subsections (a), (b), and (c) shall apply to 
agreements, reenlistments, and the voluntary extension of enlistments 
referred to in section 323(a) of title 37, United States Code, entered 
into on or after that date.
    (2) The amendments made by subsections (d)(1) and (e)(2)(A) shall 
take effect December 31, 2004.
    (g) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 323 of title 37, United States 
Code, to provide retention bonuses to members of the uniformed services 
using the expanded authority provided by the amendments made by 
subsections (a), (b), and (c) may not exceed $10,000,000. The bonus 
authority available under such section shall not be considered to be an 
expanded authority to the extent that the authority was available under 
a provision of law specified in subsection (d), before the repeal of 
the provision by such subsection.

SEC. 618. ELIGIBILITY OF NEW RESERVE COMPONENT OFFICERS FOR ACCESSION 
              OR AFFILIATION BONUS FOR OFFICERS IN CRITICAL SKILLS.

    (a) Eligibility.--Subsection (a) of section 324 of title 37, United 
States Code, is amended to read as follows:
    ``(a) Bonus Authorized.--(1) The Secretary concerned may pay a 
bonus under this section--
            ``(A) to a person who executes a written agreement to 
        accept a commission or an appointment as an officer of armed 
        forces and serve on active duty in a designated critical 
        officer skill or serve in a reserve component of an armed force 
        in a designated critical officer skill; or
            ``(B) to an officer of an armed force, including a warrant 
        officer, but excluding an officer who has previously served in 
        the Selected Reserve or an officer who is entitled to retired 
        pay, who executes a written agreement to serve in a reserve 
        component of an armed force in a designated critical officer 
        skill after being discharged or released from active duty under 
        honorable conditions, once the officer affiliates with a unit 
        or position in the reserve component.
    ``(2) The written agreement under paragraph (1) between the 
Secretary concerned and a person or officer shall specify the period 
during which the person or officer will be required to serve in a 
designated critical officer skill to maintain entitlement to the bonus 
payment.''.
    (b) Amount of Bonus.--Subsection (c) of such section is amended to 
read as follows:
    ``(c) Amount of Bonus.--The Secretary concerned shall determine the 
amount of a bonus to be paid under subsection (a), except that a person 
may not receive a total of more than $60,000 in payments under this 
section''.
    (c) Conforming Amendments.--Such section is further amended--
            (1) in subsection (d), by striking ``accession'' both 
        places it appears;
            (2) in subsection (e)--
                    (A) in the subsection heading, by striking 
                ``Accession''; and
                    (B) by striking ``an accession bonus'' and 
                inserting ``a bonus''; and
            (3) in subsection (f), by striking ``active duty'' and 
        ``accession'' each place it appears.
    (d) Clerical Amendments.--(1) The heading of section 324 of such 
title is amended to read as follows:
``Sec. 324. Special pay: accession or affiliation bonus for officers in 
              designated critical skills''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the item relating to section 324 and 
inserting the following new item:

``324. Special pay: accession or affiliation bonus for officers in 
                            designated critical skills.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect October 1, 2004, and apply to agreements referred to in section 
324(a) of title 37, United States Code entered into on or after that 
date.
    (f) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 324 of title 37, United States 
Code, as amended by subsections (a) and (b), to provide accession and 
affilliation bonuses to members of the Armed Forces not previously 
eligible for such a bonus under such section may not exceed $5,000,000.

SEC. 619. ELIGIBILITY OF RESERVE COMPONENT MEMBERS FOR INCENTIVE BONUS 
              FOR CONVERSION TO MILITARY OCCUPATIONAL SPECIALTY TO EASE 
              PERSONNEL SHORTAGE.

    (a) Eligibility.--Section 326 of title 37, United States Code, is 
amended--
            (1) in subsection (a), by inserting ``of a regular or 
        reserve component'' after ``an eligible member'';
            (2) in subsection (b)--
                    (A) by striking ``if--'' and all that follows 
                through ``at the time'' and inserting ``if, at the 
                time''; and
                    (B) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
            (3) in subsection (c)(2), by inserting ``regular or reserve 
        component of the'' after ``chief personnel officer of the''.
    (b) Effective Date.--The amendments made by this section shall take 
effect October 1, 2004, and apply to agreements referred to in section 
326(a) of title 37, United States Code, entered into on or after that 
date.
    (c) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 326 of title 37, United States 
Code, as amended by subsection (a), to provide incentive bonuses to 
members of a reserve component of the Armed Forces may not exceed 
$3,000,000.

SEC. 620. AVAILABILITY OF HAZARDOUS DUTY INCENTIVE PAY FOR MILITARY 
              FIREFIGHTERS.

    (a) Additional Type of Duty Entitled to Pay.--Subsection (a) of 
section 301 of title 37, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (12);
            (2) by redesignating paragraph (13) as paragraph (14); and
            (3) by inserting after paragraph (12) the following new 
        paragraph:
            ``(13) involving regular participating as a firefighting 
        crew member, as determined by the Secretary concerned; or''.''.
    (b) Monthly Amount of Pay.--Subsection (c) of such section is 
amended--
            (1) in paragraph (1), by striking ``(12)'' and inserting 
        ``(13)''; and
            (2) in paragraph (2)(A), by striking ``(13)'' and inserting 
        ``(14)''.
    (c) Effective Date.--The amendments made by subsection (a) and (b) 
shall take effect October 1, 2004.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. EXPANSION OF TRAVEL AND TRANSPORTATION ALLOWANCES TO ASSIST 
              SURVIVORS OF A DECEASED MEMBER TO ATTEND BURIAL CEREMONY 
              OF THE MEMBER.

    (a) Authorized Travel Locations.--Subsection (b) of section 411f of 
title 37, United States Code, is amended to read as follows:
    ``(b) Authorized Locations for Travel; Duration and Rates.--(1) The 
allowances under subsection (a) may be provided for travel and 
transportation by eligible relatives of the deceased member to the 
place selected pursuant to section 1482(a)(8) of title 10 for 
disposition of the remains of the deceased member.
    ``(2) The allowances may not exceed the rates for two days and the 
time necessary for the travel.''.
    (b) Eligible Relatives.--Subsection (c)(1)(C) of such section is 
amended by striking ``If no person described in subparagraph (A) or (B) 
is provided travel and transportation allowances under subsection 
(a)(1), the'' and inserting ``The''.
    (c) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 411f of title 37, United 
States Code, as amended by subsections (a) and (b), to provide travel 
and transportation allowances, not previously available under such 
section, to survivors of deceased members of the uniformed services, 
and to provide such allowances to persons not previously eligible for 
such allowances, may not exceed $2,000,000.

SEC. 632. TRANSPORTATION OF FAMILY MEMBERS INCIDENT TO THE SERIOUS 
              ILLNESS OR INJURY OF MEMBERS OF THE UNIFORMED SERVICES.

    (a) Removal of Limitation on Number of Family Members.--Subsection 
(a)(1) of section 411h of title 37, United States Code, is amended by 
striking ``not more than two family members'' and inserting ``a family 
member''.
    (b) Family Members Described.--Subsection (b)(1) of such section is 
amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) other persons approved by the Secretary concerned.''.
    (c) Availability of Per Diem.--Such section is further amended--
            (1) in subsection (a)(1), by inserting ``travel and'' 
        before ``transportation''; and
            (2) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)'' ; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) In addition to the transportation authorized by subsection 
(a), the Secretary concerned may provide a per diem allowance or 
reimbursement for the actual and necessary expenses of the travel, or a 
combination thereof, but not to exceed the rates established under 
section 404(d) of this title.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2004, and apply to transportation described in 
section 411h of title 37, United States Code, provided on or after that 
date.
    (e) Limitation on Fiscal Year 2005 Obligations.--During fiscal year 
2005, obligations incurred under section 411h of title 37, United 
States Code, as amended by subsections (a) and (b), to provide travel 
and transportation allowances, not previously available under such 
section, to family members of seriously ill or injured members of the 
uniformed services, and to provide such allowances to persons not 
previously eligible for such allowances, may not exceed $3,000,000.

SEC. 633. REIMBURSEMENT OF MEMBERS FOR CERTAIN LODGING COSTS INCURRED 
              IN CONNECTION WITH STUDENT DEPENDENT TRAVEL.

    Section 430(b) of title 37, United States Code, is amended--
            (1) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively; and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The transportation allowance paid to a member under paragraph 
(1) may include reimbursement, at a rate prescribed by the Secretaries 
concerned, for lodging costs incurred during the annual trip for which 
the allowance is paid when, for reasons beyond the control of the 
dependent child of the member, the child is required to procure 
accommodations while en route between the child's school and the 
member's duty station.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. COMPUTATION OF BENEFITS UNDER SURVIVOR BENEFIT PLAN FOR 
              SURVIVING SPOUSES OVER AGE 62.

    (a) Phased Increase in Basic Annuity.--
            (1) Standard annuity.--
                    (A) Increase to 55 percent.--Clause (i) of 
                subsection (a)(1)(B) of section 1451 of title 10, 
                United States Code, is amended by striking ``35 percent 
                of the base amount.'' and inserting ``the product of 
                the base amount and the percent applicable to the 
                month, as follows:
                            ``(I) For a month before October 2005, the 
                        applicable percent is 35 percent.
                            ``(II) For months after September 2005 and 
                        before April 2006, the applicable percent is 40 
                        percent.
                            ``(III) For months after March 2006 and 
                        before April 2007, the applicable percent is 45 
                        percent.
                            ``(IV) For months after March 2007 and 
                        before April 2008, the applicable percent is 50 
                        percent.
                            ``(V) For months after March 2008, the 
                        applicable percent is 55 percent.''.
                    (B) Coordination with savings provision under prior 
                law.--Clause (ii) of such subsection is amended by 
                striking ``, at the time the beneficiary becomes 
                entitled to the annuity,''.
            (2) Reserve-component annuity.--Subsection (a)(2)(B)(i)(I) 
        of such section is amended by striking ``35 percent'' and 
        inserting ``the percent specified under subsection (a)(1)(B)(i) 
        as being applicable for the month''.
            (3) Survivors of eligible persons dying on active duty, 
        etc.--
                    (A) Increase to 55 percent.--Clause (i) of 
                subsection (c)(1)(B) of such section is amended--
                            (i) by striking ``35 percent'' and 
                        inserting ``the applicable percent''; and
                            (ii) by adding at the end the following: 
                        ``The percent applicable for a month under the 
                        preceding sentence is the percent specified 
                        under subsection (a)(1)(B)(i) as being 
                        applicable for that month.''.
                    (B) Coordination with savings provision under prior 
                law.--Clause (ii) of such subsection is amended by 
                striking ``, at the time the beneficiary becomes 
                entitled to the annuity,''.
            (4) Clerical amendment.--The heading for subsection 
        (d)(2)(A) of such section is amended to read as follows: 
        ``Computation of annuity.--''.
    (b) Corresponding Phased Elimination of Supplemental Annuity.--
            (1) Phased reduction of supplemental annuity.--Section 
        1457(b) of title 10, United States Code, is amended--
                    (A) by striking ``5, 10, 15, or 20 percent'' and 
                inserting ``the applicable percent''; and
                    (B) by inserting after the first sentence the 
                following: ``The percent used for the computation shall 
                be an even multiple of 5 percent and, whatever the 
                percent specified in the election, may not exceed 20 
                percent for months before October 2005, 15 percent for 
                months after September 2005 and before April 2006, 10 
                percent for months after March 2006 and before April 
                2007, and 5 percent for months after March 2007 and 
                before April 2008.''.
            (2) Repeal upon implementation of 55 percent sbp annuity.--
        Effective on April 1, 2008, chapter 73 of such title is 
        amended--
                    (A) by striking subchapter III; and
                    (B) by striking the item relating to subchapter III 
                in the table of subchapters at the beginning of that 
                chapter.
    (c) Recomputation of Annuities.--
            (1) Periodic recomputation required.--Effective on the 
        first day of each month specified in paragraph (2)--
                    (A) each annuity under section 1450 of title 10, 
                United States Code, that commenced before that month, 
                is computed under a provision of section 1451 of that 
                title amended by subsection (a), and is payable for 
                that month shall be recomputed so as to be equal to the 
                amount that would be in effect if the percent 
                applicable for that month under that provision, as so 
                amended, had been used for the initial computation of 
                the annuity; and
                    (B) each supplemental survivor annuity under 
                section 1457 of such title that commenced before that 
                month and is payable for that month shall be recomputed 
                so as to be equal to the amount that would be in effect 
                if the percent applicable for that month under that 
                section, as amended by this section, had been used for 
                the initial computation of the supplemental survivor 
                annuity.
            (2) Time for recomputation.--The requirement under 
        paragraph (1) for recomputation of certain annuities applies 
        with respect to the following months:
                    (A) October 2005.
                    (B) April 2006.
                    (C) April 2007.
                    (D) April 2008.
    (d) Recomputation of Retired Pay Reductions for Supplemental 
Survivor Annuities.--The Secretary of Defense shall take such actions 
as are necessitated by the amendments made by subsection (b) and the 
requirements of subsection (c)(1)(B) to ensure that the reductions in 
retired pay under section 1460 of title 10, United States Code, are 
adjusted to achieve the objectives set forth in subsection (b) of that 
section.

SEC. 642. OPEN ENROLLMENT PERIOD FOR SURVIVOR BENEFIT PLAN COMMENCING 
              OCTOBER 1, 2005.

    (a) Persons not Currently Participating in Survivor Benefit Plan.--
            (1) Election of sbp coverage.--An eligible retired or 
        former member may elect to participate in the Survivor Benefit 
        Plan under subchapter II of chapter 73 of title 10, United 
        States Code, during the open enrollment period specified in 
        subsection (f).
            (2) Election of supplemental annuity coverage.--An eligible 
        retired or former member who elects under paragraph (1) to 
        participate in the Survivor Benefit Plan at the maximum level 
        may also elect during the open enrollment period to participate 
        in the Supplemental Survivor Benefit Plan established under 
        subchapter III of chapter 73 of title 10, United States Code.
            (3) Eligible retired or former member.--For purposes of 
        paragraphs (1) and (2), an eligible retired or former member is 
        a member or former member of the uniformed services who on the 
        day before the first day of the open enrollment period is not a 
        participant in the Survivor Benefit Plan and--
                    (A) is entitled to retired pay; or
                    (B) would be entitled to retired pay under chapter 
                1223 of title 10, United States Code, but for the fact 
                that such member or former member is under 60 years of 
                age.
            (4) Status under sbp of persons making elections.--
                    (A) Standard annuity.--A person making an election 
                under paragraph (1) by reason of eligibility under 
                paragraph (3)(A) shall be treated for all purposes as 
                providing a standard annuity under the Survivor Benefit 
                Plan.
                    (B) Reserve-component annuity.--A person making an 
                election under paragraph (1) by reason of eligibility 
                under paragraph (3)(B) shall be treated for all 
                purposes as providing a reserve-component annuity under 
                the Survivor Benefit Plan.
    (b) Election to Increase Coverage Under SBP.--A person who on the 
day before the first day of the open enrollment period is a participant 
in the Survivor Benefit Plan but is not participating at the maximum 
base amount or is providing coverage under the Plan for a dependent 
child and not for the person's spouse or former spouse may, during the 
open enrollment period, elect to--
            (1) participate in the Plan at a higher base amount (not in 
        excess of the participant's retired pay); or
            (2) provide annuity coverage under the Plan for the 
        person's spouse or former spouse at a base amount not less than 
        the base amount provided for the dependent child.
    (c) Election for Current SBP Participants to Participate in 
Supplemental SBP.--
            (1) Election.--A person who is eligible to make an election 
        under this paragraph may elect during the open enrollment 
        period to participate in the Supplemental Survivor Benefit Plan 
        established under subchapter III of chapter 73 of title 10, 
        United States Code.
            (2) Persons eligible.--Except as provided in paragraph (3), 
        a person is eligible to make an election under paragraph (1) if 
        on the day before the first day of the open enrollment period 
        the person is a participant in the Survivor Benefit Plan at the 
        maximum level, or during the open enrollment period the person 
        increases the level of such participation to the maximum level 
        under subsection (b) of this section, and under that Plan is 
        providing annuity coverage for the person's spouse or a former 
        spouse.
            (3) Limitation on eligibility for certain sbp participants 
        not affected by two-tier annuity computation.--A person is not 
        eligible to make an election under paragraph (1) if (as 
        determined by the Secretary concerned) the annuity of a spouse 
        or former spouse beneficiary of that person under the Survivor 
        Benefit Plan will be computed under section 1451(e) of title 
        10, United States Code. However, such a person may during the 
        open enrollment period waive the right to have that annuity 
        computed under such section. Any such election is irrevocable. 
        A person making such a waiver may make an election under 
        paragraph (1) as in the case of any other participant in the 
        Survivor Benefit Plan.
    (d) Manner of Making Elections.--An election under this section 
must be made in writing, signed by the person making the election, and 
received by the Secretary concerned before the end of the open 
enrollment period. Any such election shall be made subject to the same 
conditions, and with the same opportunities for designation of 
beneficiaries and specification of base amount, that apply under the 
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be. A person making an election under subsection (a) to 
provide a reserve-component annuity shall make a designation described 
in section 1448(e) of title 10, United States Code.
    (e) Effective Date for Elections.--Any such election shall be 
effective as of the first day of the first calendar month following the 
month in which the election is received by the Secretary concerned.
    (f) Open Enrollment Period Defined.--The open enrollment period is 
the two-year period beginning on October 1, 2005.
    (g) Effect of Death of Person Making Election Within Two Years of 
Making Election.--If a person making an election under this section 
dies before the end of the two-year period beginning on the effective 
date of the election, the election is void and the amount of any 
reduction in retired pay of the person that is attributable to the 
election shall be paid in a lump sum to the person who would have been 
the deceased person's beneficiary under the voided election if the 
deceased person had died after the end of such two-year period.
    (h) Applicability of Certain Provisions of Law.--The provisions of 
sections 1449, 1453, and 1454 of title 10, United States Code, are 
applicable to a person making an election, and to an election, under 
this section in the same manner as if the election were made under the 
Survivor Benefit Plan or the Supplemental Survivor Benefit Plan, as the 
case may be.
    (i) Additional Premium.--The Secretary of Defense may require that 
the premium for a person making an election under subsection (a)(1) or 
(b) include, in addition to the amount required under section 1452(a) 
of title 10, United States Code, an amount determined under regulations 
prescribed by the Secretary of Defense for the purposes of this 
subsection. Any such amount shall be stated as a percentage of the base 
amount of the person making the election and shall reflect the number 
of years that have elapsed since the person retired, but may not exceed 
4.5 percent of that person's base amount.
    (j) Report Concerning Open Season.--Not later than July 1, 2005, 
the Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a report on the open season authorized by this 
section for the Survivor Benefit Plan. The report shall include the 
following:
            (1) A description of the Secretary's plans for 
        implementation of the open season.
            (2) The Secretary's estimates of the costs associated with 
        the open season, including any anticipated effect of the open 
        season on the actuarial status of the Department of Defense 
        Military Retirement Fund.
            (3) Any recommendation by the Secretary for further 
        legislative action.

SEC. 643. SOURCE OF FUNDS FOR SURVIVOR BENEFIT PLAN ANNUITIES FOR 
              DEPARTMENT OF DEFENSE BENEFICIARIES OVER AGE 62.

    (a) In General.--Chapter 74 of title 10, United States Code, is 
amended as follows:
            (1) Section 1465(b) of such title is amended by adding at 
        the end the following new paragraph:
    ``(4) 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)(E) 
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)(5), rather than those 
determined under subsection (c)(1).''.
            (4) 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: 
                        ``and as if benefits under subchpater II of 
                        chapter 73 of this title for beneficiaries 62 
                        years of age and older were computed for any 
                        fiscal year on the basis of the percentage of 
                        35 percent, rather than any percentage 
                        otherwise applicable for that computation for 
                        that fiscal year''; and
                            (ii) in subparagraph (B), by inserting 
                        before the period at the end the following: 
                        ``and as if benefits under subchapter II of 
                        chapter 73 of this title for beneficiaries 62 
                        years of age and older were computed for any 
                        fiscal year on the basis of the percentage of 
                        35 percent, rather than any percentage 
                        otherwise applicable for that computation for 
                        that fiscal year'';
                    (B) by redesignating paragraph (5) as paragraph 
                (6); and
                    (C) by inserting after paragraph (4) the following 
                new paragraph (5):
    ``(5) 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 determined as if benefits under 
        subchapter II of chapter 73 of this title for beneficiaries 62 
        years of age and older were computed for any fiscal year on the 
        basis of the percentage of 35 percent, rather than any 
        percentage otherwise applicable for that computation for that 
        fiscal year.
            ``(B) A determination of a single level percentage 
        determined in the same manner as applies under subparagraph (B) 
        of paragraph (1), but determined as if benefits under 
        subchapter II of chapter 73 of this title for beneficiaries 62 
        years of age and older were computed for any fiscal year on the 
        basis of the percentage of 35 percent, rather than any 
        percentage otherwise applicable for that computation for that 
        fiscal year.
Such single level percentages shall be used for the purposes of 
subsection (b)(4).''.
            (5) Section 1466(b) of such title is amended--
                    (A) in paragraph (1), by inserting ``1465(b)(4),'' 
                after ``1465(b)(3),''; and
                    (B) by adding at the end of paragraph (2) the 
                following new subparagraph:
            ``(E) The amount for that year determined by the Secretary 
        of Defense under section 1465(b)(4) of this title for the cost 
        to the Fund arising from increased amounts payable from the 
        Fund by reason of benefits under subchapter II of chapter 73 of 
        this title for beneficiaries 62 years of age and older being 
        computed for any fiscal year on the basis of the percentage 
        greater than 35 percent.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as of October 1, 2004. If this Act is enacted after that 
date, the Secretary of Defense shall provide for such administrative 
adjustments as necessary to provide for payments made for any period 
during fiscal year 2005 before the date of the enactment of this Act to 
be treated as having been made in accordance with such amendments and 
for the provisions of those amendments to be implemented as if enacted 
as of September 30, 2004.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 651. CONSOLIDATION AND REORGANIZATION OF LEGISLATIVE PROVISIONS 
              REGARDING DEFENSE COMMISSARY SYSTEM AND EXCHANGES AND 
              OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES.

    (a) Provisions Related to Commissary Stores.--Chapter 147 of title 
10, United States Code, is amended--
            (1) by striking the table of sections at the beginning of 
        the chapter and sections 2481, 2483, 2485, and 2487;
            (2) by redesignating sections 2482, 2484, and 2486 as 
        sections 2485, 2483 and 2484, respectively;
            (3) by inserting after the chapter heading the following:

``Subchapter                                                       Sec.
``I. Defense Commissary System..............................       2481
``II. Relationship, Continuation, and Common Policies of           2487
                            Defense Commissary and Exchange 
                            Systems.
``III. Morale, Welfare, and Recreation Programs and                2491
                            Nonappropriated Fund 
                            Instrumentalities.

               ``SUBCHAPTER I--DEFENSE COMMISSARY SYSTEM

``Sec.
``2481. Existence and purpose of defense commissary system.
``2482. Commissary stores: criteria for establishment or closure; store 
                            size.
``2483. Commissary stores: use of appropriated funds to cover operating 
                            expenses.
``2484. Commissary stores: merchandise that may be sold; uniform 
                            surcharges and pricing.
``2485. Commissary stores: operation.
``Sec. 2481. Existence and purpose of defense commissary system
    ``(a) Existence of System.--The Secretary of the Defense shall 
operate, using funds appropriated to the Department of Defense, a 
world-wide system of commissary stores that sell, at reduced prices, 
food and other merchandise consistent with societal norms for product 
selection in commercial large-scale grocery stores in the United States 
to members of the uniformed services on active duty, members of the 
uniformed services entitled to retired pay, dependents of such members, 
and patrons authorized to use the system under chapter 54 of this 
title.
    ``(b) Purpose of System.--The purpose of the defense commissary 
system is to enhance the quality of life of members of the uniformed 
services, retired members, dependents of such members, and other 
authorized patrons and to provide such members with an additional 
nonmonetary compensation in recognition of their service to the United 
States.
    ``(c) Reduces Prices Defined.--In this section, the term `reduced 
prices' means prices for food and other merchandise determined using 
the price setting process specified in section 2484 of this title.
``Sec. 2482. Commissary stores: criteria for establishment or closure; 
              store size
    ``(a) Primary Consideration for Establishment.--The needs of 
members of the uniformed services on active duty and their dependents 
shall be the primary consideration whenever the Secretary of Defense--
            ``(1) assesses the need to establish a commissary store; 
        and
            ``(2) selects the actual location for the store.
    ``(b) Store Size.--In determining the size of a commissary store, 
the Secretary of Defense shall take into consideration the number of 
all authorized patrons of the defense commissary system who are likely 
to use the store.
    ``(c) Closure Considerations.--(1) Whenever assessing whether to 
close a commissary store, the effect of the closure on the quality of 
life of members of the uniformed services and their dependents using 
the store and on the welfare and security of the military community in 
which the commissary is located shall be the primary consideration. In 
all cases, the quality of life for military patrons shall take priority 
over any consideration of economic criteria relative to store financial 
performance.
    ``(2) The Secretary of Defense shall give the quality of life for 
members of a reserve component the same priority as the quality of life 
for active duty members whenever assessing whether to close a 
commissary store, including when the assessment is undertaken as a 
result of the closure or realignment of a military installation under a 
base closure law.
    ``(d) Congressional Notification.--The closure of a commissary 
store shall not take effect until the end of the 90-day period 
beginning on the date on which the Secretary of Defense submits to 
Congress written notice of the reasons supporting the closure. The 
written notice shall include an assessment of the impact closure will 
have on the quality of life for military patrons and the welfare and 
security of the military community in which the commissary is 
located.'';
            (4) by inserting sections 2483 and 2484, as redesignated by 
        paragraph (2), after section 2482, as added by paragraph (3);
            (5) in section 2484, as redesignated by paragraph (2)--
                    (A) by striking subsections (a), (b), (c), and (g);
                    (B) by redesignating subsections (d), (e), and (f) 
                as subsections (f), (g), and (h), respectively;
                    (C) by inserting before subsection (f), as so 
                redesignated, the following new subsections:
    ``(a) In General.--As provided in section 2481(a) of this title, 
commissary stores are intended to be similar to commercial grocery 
stores and may sell merchandise similar to that sold in commercial 
grocery stores. The Secretary of Defense shall ensure that the design 
and format of commissary stores are consistent with modern grocery 
store stockage and format.
    ``(b) Required Commissary Merchandise Categories.--Merchandise sold 
in, at, or by commissary stores shall include items in the following 
categories:
            ``(1) Meat, poultry, and seafood.
            ``(2) Nonalcoholic beverages.
            ``(3) Produce.
            ``(4) Grocery food, whether stored chilled, frozen, or at 
        room temperature.
            ``(5) Dairy products.
            ``(6) Bakery and delicatessen items.
            ``(7) Nonfood grocery items.
            ``(8) Health and beauty aids.
            ``(9) Magazines and periodicals.
            ``(10) Telephone cards, greeting cards, and film and one-
        time use cameras.
    ``(c) Inclusion of General Merchandise Items.--(1) Among the 
various defense retail systems--
            ``(A) commissary stores shall be the primary Department of 
        Defense-operated store for the sale of items described in 
        paragraphs (1) through (7) of subsection (b); and
            ``(B) exchange stores shall continue to maintain the 
        exclusive right to operate convenience stores, shopettes, and 
        troop stores, including such stores established to support 
        contingency operations.
    ``(2) Merchandise sold in commissary stores may include such 
general merchandise items as the Secretary of Defense may prescribe, 
except that the Secretary may not exclude seasonal items, tobacco 
products, pet supplies, batteries, potted plants and floral bouquets, 
women's hosiery, and school supplies, to the extent such products have 
been available in commissary stores before June 1, 2004, unless the 
Secretary determines that space or other considerations preclude the 
sale of all or some of the specified items. The Secretary shall provide 
notice to Congress of any reduction in the availability of such items 
at least 30 days before the reduction takes effect.
    ``(3) A military exchange may be considered as the vendor for the 
purchase of tobacco products, greeting cards, and film and one-time use 
cameras and shall serve as the vendor for telephone cards. Subsections 
(e) and (f) shall not apply to the pricing of such an item when a 
military exchange serves as the vendor of the item. Commissary store 
and exchange prices shall be comparable for such an item.
    ``(4) During the two-year period ending March 31, 2007, the 
Secretary shall maintain sales data for commissary stores and exchange 
stores regarding the items identified in subsection (b)(10). Not later 
than August 1, 2007, the Secretary shall submit to Congress a report 
containing such sales data.
    ``(d) Excluded Goods or Services.--Commissary stores shall not 
offer film development services.
    ``(e) Uniform Sales Price Surcharge.--The Secretary of Defense 
shall apply a uniform surcharge equal to not more than five percent on 
the sales prices established under subsection (f) for each item of 
merchandise sold in, at, or by commissary stores.'';
                    (D) in subsection (f), as so redesignated, by 
                striking ``(consistent with this section and section 
                2685 of this title)'' in paragraph (1);
                    (E) in subsection (h), as so redesignated, by 
                striking ``Subsections (c) and (d)'' and inserting 
                ``Subsections (e) and (f)''; and
                    (F) by adding at the end the following new 
                subsection:
    ``(i) Use of Surcharge for Construction, Repair, Improvement, and 
Maintenance.--(1)(A) The Secretary of Defense may use the proceeds from 
the surcharges imposed under subsection (e) only--
            ``(i) to acquire (including acquisition by lease), 
        construct, convert, expand, improve, repair, maintain, and 
        equip the physical infrastructure of commissary stores and 
        central product processing facilities of the defense commissary 
        system; and
            ``(ii) to cover environmental evaluation and construction 
        costs related to activities described in clause (i), including 
        costs for surveys, administration, overhead, planning, and 
        design.
    ``(B) In subparagraph (A), the term `physical infrastructure' 
includes real property, utilities, and equipment (installed and free 
standing and including computer equipment), necessary to provide a 
complete and usable commissary store or central product processing 
facility.
    ``(2)(A) The Secretary of Defense may authorize a nonappropriated 
fund instrumentality of the United States to enter into a contract for 
construction of a shopping mall or similar facility for a commissary 
store and one or more nonappropriated fund instrumentality activities. 
The Secretary may use the proceeds of surcharges under subsection (e) 
to reimburse the nonappropriated fund instrumentality for the portion 
of the cost of the contract that is attributable to construction of the 
commissary store or to pay the contractor directly for that portion of 
such cost.
    ``(B) In subparagraph (A), the term `construction', with respect to 
a facility, includes acquisition, conversion, expansion, installation, 
or other improvement of the facility.
    ``(3) The Secretary of Defense, with the approval of the Director 
of the Office of Management and Budget, may obligate anticipated 
proceeds from the surcharges under subsection (e) for any use specified 
in paragraph (1) or (2), without regard to fiscal year limitations, if 
the Secretary determines that such obligation is necessary to carry out 
any use of such adjustments or surcharges specified in such paragraph.
    ``(4) Revenues received by the Secretary of Defense from the 
following sources or activities of commissary store facilities shall be 
available for the purposes set forth in paragraphs (1), (2), and (3):
            ``(A) Sale of recyclable materials.
            ``(B) Sale of excess and surplus property.
            ``(C) License fees.
            ``(D) Royalties.
            ``(E) Fees paid by sources of products in order to obtain 
        favorable display of the products for resale, known as business 
        related management fees.'';
            (6) by inserting section 2485, as redesignated by paragraph 
        (2), after section 2484, as amended by paragraph (5); and
            (7) in section 2485, as redesignated by paragraph (2)--
                    (A) in subsection (a)(2), by adding at the end the 
                following new sentence: ``Until December 31, 2009, the 
                Defense Commissary Agency is not required to conduct 
                any cost-comparison study under the policies and 
                procedures of Office of Management and Budget Circular 
                A-76 relating to the possible contracting out of 
                commissary store functions.'';
                    (B) in subsection (b)(2), by striking ``section 
                2484'' and inserting ``section 2483'';
                    (C) in subsection (c)(2), by adding at the end the 
                following new sentences: ``The chairman of the 
                governing board shall be a commissioned officer or 
                member of the senior executive service who has 
                demonstrated experience or knowledge relevant to the 
                management of the defense commissary system. In 
                selecting other members of the governing board, the 
                Secretary shall give priority to persons with 
                experience related to logistics, military personnel, 
                military entitlements or other experiences of value of 
                management of commissaries.''; and
                    (D) by adding at the end the following new 
                subsections:
    ``(d) Assignment of Active Duty Members.--(1) Except as provided in 
paragraph (2), members of the armed forces on active duty may not be 
assigned to the operation of a commissary store.
    ``(2)(A) The Secretary of Defense may assign an officer on the 
active-duty list to serve as the Director of the Defense Commissary 
Agency.
    ``(B) Not more than 18 members (in addition to the officer referred 
to in subparagraph (A)) of the armed forces on active duty may be 
assigned to the Defense Commissary Agency. Members who may be assigned 
under this subparagraph to regional headquarters of the agency shall be 
limited to enlisted members assigned to duty as advisers in the 
regional headquarters responsible for overseas commissaries and to 
veterinary specialists.
    ``(e) Reimbursement for Use of Commissary Facilities by Military 
Departments.--(1) The Secretary of a military department shall pay the 
Defense Commissary Agency the amount determined under paragraph (2) for 
any use of a commissary facility by the military department for a 
purpose other than commissary sales or operations in support of 
commissary sales.
    ``(2) The amount payable under paragraph (1) for use of a 
commissary facility by a military department shall be equal to the 
share of depreciation of the facility that is attributable to that use, 
as determined under regulations prescribed by the Secretary of Defense.
    ``(3) The Director of the Defense Commissary Agency shall credit 
amounts paid under paragraph (1) for use of a facility to an 
appropriate account to which proceeds of a surcharge applied under 
section 2484(e) of this title are credited.
    ``(4) This subsection applies with respect to a commissary facility 
that is acquired, constructed, converted, expanded, installed, or 
otherwise improved (in whole or in part) with the proceeds of a 
surcharge applied under section 2484(e) of this title.
    ``(f) Donation of Unusable Food.--(1) The Secretary of Defense may 
donate food described in paragraph (2) to any of the following 
entities:
            ``(A) A charitable nonprofit food bank that is designated 
        by the Secretary of Defense or the Secretary of Health and 
        Human Services as authorized to receive such donations.
            ``(B) A State or local agency that is designated by the 
        Secretary of Defense or the Secretary of Health and Human 
        Services as authorized to receive such donations.
            ``(C) A chapter or other local unit of a recognized 
        national veterans organization that provides services to 
        persons without adequate shelter and is designated by the 
        Secretary of Veterans Affairs as authorized to receive such 
        donations.
            ``(D) A not-for-profit organization that provides care for 
        homeless veterans and is designated by the Secretary of 
        Veterans Affairs as authorized to receive such donations.
    ``(2) Food that may be donated under this subsection is commissary 
store food, mess food, meals ready-to-eat (MREs), rations known as 
humanitarian daily rations (HDRs), and other food available to the 
Secretary of Defense that--
            ``(A) is certified as edible by appropriate food inspection 
        technicians;
            ``(B) would otherwise be destroyed as unusable; and
            ``(C) in the case of commissary store food, is unmarketable 
        and unsaleable.
    ``(3) In the case of commissary store food, a donation under this 
subsection shall take place at the site of the commissary store that is 
donating the food.
    ``(4) This subsection does not authorize any service (including 
transportation) to be provided in connection with a donation under this 
subsection.
    ``(g) Collection of Dishonored Checks.--(1) The Secretary of 
Defense may impose a charge for the collection of a check accepted at a 
commissary store that is not honored by the financial institution on 
which the check is drawn. The imposition and amounts of charges shall 
be consistent with practices of commercial grocery stores regarding 
dishonored checks.
    ``(2)(A) The following persons are liable to the United States for 
the amount of a check referred to in paragraph (1) that is returned 
unpaid to the United States, together with any charge imposed under 
that paragraph:
            ``(i) The person who presented the check.
            ``(ii) Any person whose status and relationship to the 
        person who presented the check provide the basis for that 
        person's eligibility to make purchases at a commissary store.
    ``(B) Any amount for which a person is liable under subparagraph 
(A) may be collected by deducting and withholding such amount from any 
amounts payable to that person by the United States.
    ``(3) Amounts collected as charges imposed under paragraph (1) 
shall be credited to the commissary trust revolving fund.
    ``(4) Appropriated funds may be used to pay any costs incurred in 
the collection of checks and charges referred to in paragraph (1). An 
appropriation account charged a cost under the preceding sentence shall 
be reimbursed the amount of that cost out of funds in the commissary 
trust revolving fund.
    ``(5) In this subsection, the term `commissary trust revolving 
fund' means the trust revolving fund maintained by the Department of 
Defense for surcharge collections and proceeds of sales of commissary 
stores.
    ``(h) Release of Certain Commercially Valuable Information to 
Public.--(1) The Secretary of Defense may limit the release to the 
public of any information described in paragraph (2) if the Secretary 
determines that it is in the best interest of the Department of Defense 
to limit the release of such information. If the Secretary determines 
to limit the release of any such information, the Secretary may provide 
for limited release of such information in accordance with paragraph 
(3).
    ``(2) Paragraph (1) applies to the following:
            ``(A) Information contained in the computerized business 
        systems of commissary stores or the Defense Commissary Agency 
        that is collected through or in connection with the use of 
        electronic scanners in commissary stores, including the 
        following information:
                    ``(i) Data relating to sales of goods or services.
                    ``(ii) Demographic information on customers.
                    ``(iii) Any other information pertaining to 
                commissary transactions and operations.
            ``(B) Business programs, systems, and applications 
        (including software) relating to commissary operations that 
        were developed with funding derived from commissary surcharges.
    ``(3)(A) The Secretary of Defense may, using competitive 
procedures, enter into a contract to sell information described in 
paragraph (2).
    ``(B) The Secretary of Defense may release, without charge, 
information on an item sold in commissary stores to the manufacturer or 
producer of that item or an agent of the manufacturer or producer.
    ``(C) The Secretary of Defense may, by contract entered into with a 
business, grant to the business a license to use business programs 
referred to in paragraph (2)(B), including software used in or 
comprising any such program. The fee charged for the license shall be 
based on the costs of similar programs developed and marketed by 
businesses in the private sector, determined by means of surveys.
    ``(D) Each contract entered into under this paragraph shall specify 
the amount to be paid for information released or a license granted 
under the contract, as the case may be.
    ``(4) Information described in paragraph (2) may not be released, 
under paragraph (3) or otherwise, in a form that identifies any 
customer or that provides information making it possible to identify 
any customer.
    ``(5) Amounts received by the Secretary under this section shall be 
credited to funds derived from commissary surcharges applied under 
section 2484(e) of this title, shall be merged with those funds, and 
shall be available for the same purposes as the funds with which 
merged.''.
    (b) Relation Between Defense Commissary and Exchange Systems.--
Chapter 147 of title 10, United States Code, is further amended--
            (1) by inserting after section 2485, as amended by 
        subsection (a)(7), the following:

  ``SUBCHAPTER II--RELATIONSHIP, CONTINUATION, AND COMMON POLICIES OF 
                DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

``Sec.
``2487. Existence and purpose of defense commissary system.
``2488. Combined exchange and commissary stores.
``2489. Overseas commissary and exchange stores: access and purchase 
                            restrictions.
``Sec. 2487. Relationship between defense commissary system and 
              exchange stores system
    ``(a) Separate Systems.--(1) Except as provided in paragraph (2), 
the defense commissary system and the exchange stores system shall be 
operated as separate systems of the Department of Defense.
    ``(2) Paragraph (1) does not apply to the following:
            ``(A) Combined exchange and commissary stores operated 
        under the authority provided by section 2489 of this title.
            ``(B) NEXMART stores of the Navy Exchange Service Command 
        established before October 1, 2003.
    ``(b) Consolidation or Other Organizational Changes of Defense 
Retail Systems.--(1) The operation and administration of the defense 
retail systems may not be consolidated or otherwise merged unless the 
consolidation or merger is specifically authorized by an Act of 
Congress.
    ``(2) In this subsection, the term `defense retail systems' means 
the defense commissary system and exchange stores system and other 
revenue-generating facilities operated by nonappropriated fund 
instrumentalities of the Department of Defense for the morale, welfare, 
and recreation of members of the armed forces'';
            (2) by redesignating sections 2488, 2489, 2489a as sections 
        2495, 2495a, and 2495b, respectively; and
            (3) by redesignating sections 2490a and 2492 as sections 
        2488 and 2489, respectively, and inserting such sections after 
        section 2487, as added by paragraph (1).
    (c) MWR Programs and Nonappropriated Fund Instrumentalities.--
Chapter 147 of title 10, United States Code, is further amended--
            (1) by inserting after section 2489, as redesignated and 
        moved by subsection (b)(3), the following:

    ``SUBCHAPTER III--MORALE, WELFARE, AND RECREATION PROGRAMS AND 
                 NONAPPROPRIATED FUND INSTRUMENTALITIES

``Sec.
``2491. Uniform funding and management of morale, welfare, and 
                            recreation programs.
``2491a. Department of Defense golf courses: limitation on use of 
                            appropriated funds.
``2491b. Use of appropriated funds for operation of Armed Forces 
                            Recreation Center, Europe: limitation.
``2491c. Retention of morale, welfare, and recreation funds by military 
                            installations: limitation.
``2492. Nonappropriated fund instrumentalities: contracts with other 
                            agencies and instrumentalities to provide 
                            and obtain goods and services.
``2493. Fisher Houses: administration as nonappropriated fund 
                            instrumentality.
``2494. Nonappropriated fund instrumentalities: furnishing utility 
                            services for morale, welfare, and 
                            recreation purposes.
``2495. Nonappropriated fund instrumentalities: purchase of alcoholic 
                            beverages.
``2495a. Overseas package stores: treatment of United States wines.
``2495b. Sale or rental of sexually explicit material prohibited.'';
            (2) by redesignating section 2494 as section 2491 and 
        inserting such section after the table of sections at the 
        beginning of subchapter III, as added by paragraph (1);
            (3) by redesignating section 2482a as section 2492 and 
        inserting such section before section 2493;
            (4) by inserting after section 2493 the following new 
        section:
``Sec. 2494. Nonappropriated fund instrumentalities: furnishing utility 
              services for morale, welfare, and recreation purposes
    ``Appropriations for the Department of Defense may be used to 
provide utility services for--
            ``(1) buildings on military installations authorized by 
        regulation to be used for morale, welfare, and recreation 
        purposes; and
            ``(2) other morale, welfare, and recreation activities for 
        members of the armed forces.''; and
            (5) by inserting sections 2495, 2495a, and 2495b, as 
        redesignated by subsection (b)(2), after section 2494, as added 
        by paragraph (4).
    (d) Inclusion of Other Title 10 Provisions.--Sections 2246, 2247, 
and 2219 of title 10, United States Code, are--
            (1) transferred to chapter 147 of such title;
            (2) inserted after section 2491, as redesignated and moved 
        by subsection (c)(2); and
            (3) redesignated as sections 2491a, 2491b, and 2491c, 
        respectively.
    (e) Conforming Amendments.--(1) Section 977 of title 10, United 
States Code, is repealed.
    (2) Section 2868 of such title is amended by striking ``for--'' and 
all that follows through the period at the end and inserting ``for 
buildings constructed at private cost, as authorized by law.''.
    (3) Section 367 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1987; 10 U.S.C. 2482 note) is repealed.
    (f) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 49 of title 10, United States Code, is amended by 
striking the item relating to section 977.
    (2) The table of sections at the beginning of chapter 132 of such 
title is amended by striking the item relating to section 2219.
    (3) The table of sections at the beginning of subchapter I of 
chapter 134 of such title is amended by striking the items relating to 
sections 2246 and 2247.

SEC. 652. CONSISTENT STATE TREATMENT OF DEPARTMENT OF DEFENSE 
              NONAPPROPRIATED FUND HEALTH BENEFITS PROGRAM.

    Section 349 of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2727) is amended by adding at 
the end the following new subsection:
    ``(c) Treatment of Program as Federal Health Benefit Program.--(1) 
No State tax, fee, other monetary payment, or State health plan 
requirement, may be imposed, directly or indirectly, on the 
Nonappropriated Fund Uniform Health Benefits Program of the Department 
of Defense, or on a carrier or an underwriting or plan administration 
contractor of the Program, to the same extent as such prohibition 
applies to the health insurance program authorized by chapter 89 of 
title 5, United States Code, under section 8909(f) of such title.
    ``(2) Paragraph (1) shall not be construed to exempt the 
Nonappropriated Fund Uniform Health Benefits Program of the Department 
of Defense, or any carrier or underwriting or plan administration 
contractor of the Program from the imposition, payment, or collection 
of a tax, fee, or other monetary payment on the net income or profit 
accruing to, or realized by, the Program or by such carrier or 
contractor from business conducted under the Program, so long as the 
tax, fee, or payment is applicable to a broad range of business 
activity.
    ``(3) In this section, the term `State' means each of the several 
States, the District of Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, and any political 
subdivision or other non-Federal authority thereof.''.

SEC. 653. COOPERATION AND ASSISTANCE FOR QUALIFIED SCOUTING 
              ORGANIZATIONS SERVING DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES AND CIVILIAN EMPLOYEES OVERSEAS.

    (a) Authority to Cooperate and Provide Assistance.--Subsection (a) 
of section 2606 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``Subject to subsection 
        (b)'' and inserting ``In the interest of promoting the 
        recognized morale, welfare, and recreation of members of the 
        armed forces''; and
            (2) in subsection (b), by striking ``and may'' and all that 
        follows through ``armed forces''.
    (b) Treatment of Organizations and Employees.--Such section is 
further amended--
            (1) by striking subsections (e) and (f);
            (2) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively; and
            (3) by inserting after subsection (b) the following new 
        subsections:
    ``(c) Treatment as Nonappropriated Fund Instrumentalities.--(1) 
Subject to paragraphs (2) and (3), to the extent a qualified scouting 
organization is providing services for members of the armed forces and 
their dependents, or civilian employees of the Department of Defense 
and their dependents, at a location outside the United States 
consistent with the regulations prescribed under subsection (b), the 
qualified scouting organization shall be a nonappropriated fund 
instrumentality of the Department of Defense.
    ``(2) Notwithstanding treatment as a nonappropriated fund 
instrumentality of the Department of Defense, personnel of the 
qualified scouting organization who are performing duties in connection 
with cooperation and assistance provided under subsection (a) may 
continue such policies and procedures related to personnel management 
and such other policies or procedures established by the qualified 
scouting organization as the personnel consider appropriate, subject to 
the approval of the qualified scouting organization.
    ``(3) A qualified scouting organization operating outside the 
United States may operate as a private association overseas for the 
purpose of raising funds. Any funds so raised may not be commingled 
with amounts retained in a nonappropriated morale, welfare, and 
recreation account of the Department of Defense.
    ``(d) Treatment as Nonappropriated Fund Instrumentality 
Employees.--(1) Personnel of a qualified scouting organization who are 
performing duties in connection with cooperation and assistance 
provided under subsection (a) for members of the armed forces and their 
dependents, or civilian employees of the Department of Defense and 
their dependents, shall be nonappropriated fund instrumentality 
employees of the United States for any period during which the 
personnel perform such duties.
    ``(2) Such personnel of a qualified scouting organization shall 
receive the same benefits, entitlements, and logistical support as 
other nonappropriated fund instrumentality employees, except that such 
personnel--
            ``(A) shall be allowed to decline to participate in 
        retirement programs or other personnel management policies or 
        procedures available to other nonappropriated fund 
        instrumentality employees and elect to continue the programs, 
        policies or procedures made available by the qualified scouting 
        organization; and
            ``(B) shall not receive nonappropriated fund 
        instrumentality employment credit nor rehire priority.
    ``(3) In the regulations prescribed under subsection (b), the 
Secretary of Defense may authorize the use of funds appropriated to the 
Department of Defense to pay costs of such personnel of a qualified 
scouting organization, including reimbursement of the personnel or the 
qualified scouting organization, in the case of those retirement, 
personnel management, and other compensation programs regarding which 
the personnel have elected to continue the programs made available to 
them by the qualified scouting organization.''.
    (c) Conforming and Clerical Amendments.--Such section is further 
amended--
            (1) in subsection (a), by inserting ``Authority to 
        Cooperate and Provide Assistance.--'' after ``(a)'';
            (2) in subsection (c), by inserting ``Basis for Cooperation 
        and Assistance.--'';
            (3) in subsection (e), as redesignated by subsection 
        (b)(2)--
                    (A) by inserting ``Provision of Transportation, 
                Space, and Services.--'' after ``(e)''; and
                    (B) in the matter preceding paragraph (1), by 
                inserting ``, using the authority of subsection 
                (d)(3)'' after ``furnished'';
            (4) in subsection (f), as redesignated by subsection 
        (b)(2), by inserting ``Transportation of Supplies.--'' after 
        ``(f)''; and
            (5) in subsection (g), by inserting ``Definition.--'' after 
        ``(g)''.

                       Subtitle F--Other Matters

SEC. 661. REPEAL OF REQUIREMENT THAT MEMBERS ENTITLED TO BASIC 
              ALLOWANCE FOR SUBSISTENCE PAY SUBSISTENCE CHARGES WHILE 
              HOSPITALIZED.

    (a) Repeal.--(1) Section 1075 of title 10, United States Code, is 
repealed.
    (2) The table of sections at the beginning of chapter 55 of such 
title is amended by striking the item relating to section 1075.
    (b) Conforming Amendment Regarding Military-Civilian Health 
Services Partnership Program.--Section 1096(c) of such title is 
amended--
            (1) by inserting ``who is a dependent'' after ``covered 
        beneficiary''; and
            (2) by striking ``shall pay'' and all that follows through 
        the period at the end of paragraph (2) and inserting ``shall 
        pay the charges prescribed by section 1078 of this title.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 662. CLARIFICATION OF EDUCATION LOANS QUALIFYING FOR EDUCATION 
              LOAN REPAYMENT PROGRAM FOR RESERVE COMPONENT HEALTH 
              PROFESSIONS OFFICERS.

    Section 16302(a)(5) of title 10, United States Code, is amended by 
inserting ``a basic professional qualifying degree (as determined under 
regulations prescribed by the Secretary of Defense) or graduate 
education in'' after ``regarding''.

SEC. 663. SURVEY AND ANALYSIS OF EFFECT OF EXTENDED AND FREQUENT 
              MOBILIZATION OF RESERVISTS FOR ACTIVE DUTY SERVICE ON 
              RESERVIST INCOME.

    (a) Survey of Mobilized Reservists to Determine Differential 
Between Private Sector Income and Military Compensation.--(1) The 
Secretary of Defense shall conduct a survey involving members of the 
reserve components who serve, or have served, on active duty in support 
of a contingency operation at any time during the period beginning on 
September 11, 2001, and ending on September 30, 2005, to determine the 
extent to which such members sustained a reduction in monthly income 
during the period of the active duty service compared to the average 
monthly civilian income of the members during the 12 months preceding 
their mobilization.
    (2) At least 50 percent of the total number of members of the 
reserve components who have served on active duty in support of a 
contingency operation at any time during the period specified in 
paragraph (1) shall be included in the survey.
    (b) Calculation of Income Differential.--For each member surveyed 
under subsection (a) who reports that total monthly military 
compensation during the active duty service of the member was less, or 
appeared to be less, than the average monthly civilian income of the 
member, the Secretary of Defense, in cooperation with the member, shall 
calculate the monthly active-duty income differential for the member.
    (c) Definitions Used in Conducting Survey and Calculations.--In 
this section:
            (1) The term ``monthly active-duty income differential'', 
        with respect to a member of a reserve component surveyed under 
        subsection (a), means the difference between--
                    (A) the average monthly civilian income of the 
                member; and
                    (B) the total monthly military compensation of the 
                member.
            (2) The term ``average monthly civilian income'', with 
        respect to a member of a reserve component surveyed under 
        subsection (a), means the amount, determined by the Secretary 
        of Defense, of the earned income of the member for the 12 
        months preceding the first mobilization of the member during 
        the period specified in subsection (a)(1), divided by 12.
            (3) The term ``total monthly military compensation'', with 
        respect to a member of a reserve component surveyed under 
        subsection (a), means the amount, computed on a monthly basis, 
        of the sum of--
                    (A) the amount of the regular military compensation 
                (RMC), as defined in section 101(25) of title 37, 
                United States Code, of the member during the period 
                specified in subsection (a)(1); and
                    (B) any amount of special pay or incentive pay and 
                any allowance (other than an allowance included in 
                regular military compensation) that is paid to the 
                member on a monthly basis during the period specified 
                in subsection (a)(1).
    (d) Collection of Demographic Data.--The Secretary of Defense shall 
collect demographic data regarding each member of a reserve component 
surveyed under subsection (a), including, at a minimum, data on the 
following:
            (1) Reserve component.
            (2) Unit of assignment.
            (3) Grade.
            (4) Age.
            (5) Years of service.
            (6) Sex.
            (7) Marital status.
            (8) Number of dependents.
            (9) General category of private-sector employment, as 
        determined by the Secretary, but to include an employment 
        category to cover members who are self-employed.
            (10) Military occupational specialty, including specifying 
        all surveyed members who are serving in a critical wartime 
        specialty.
            (11) Length of service on active duty during the most 
        recent mobilization.
            (12) Number of times mobilized since September 11, 2001.
    (e) Effect of Income Loss on Retention.--The Secretary of Defense 
shall include in the survey a question to solicit information from each 
member of a reserve component surveyed under subsection (a) regarding 
the likely effect of a reoccurring monthly active-duty income 
differential for the member while serving on active duty on the 
decision of the member to remain in the reserve component.
    (f) Analysis of Survey Data.--(1) At a minimum, the Secretary of 
Defense shall determine, for each variable listed in paragraphs (2) 
through (12) of subsection (d), the number of members of the reserve 
components surveyed under subsection (a) who sustained a monthly 
active-duty income differential for any month during their active duty 
service and compare and contrast that number with the number of members 
who did not experience a monthly active-duty income differential.
    (2) The Secretary shall also determine the average amount of the 
active-duty income differential by reserve component for each variable 
within the characteristics listed in paragraphs (2) through (12) of 
subsection (d).
    (g) Submission of Survey Results and Recommendations.--Not later 
than January 31, 2006, the Secretary of Defense shall submit to 
Congress and the Comptroller General a report containing the results of 
the surveys conducted under subsection (a), including the results of 
the analysis of survey data required by subsection (e). The Secretary 
shall include such recommendations as the Secretary considers 
appropriate regarding alternatives for restoring income lost by members 
of the reserve components who sustained a monthly active-duty income 
differential during their active duty service.
    (h) Comptroller General Evaluation.--Not later than March 31, 2006, 
the Comptroller General shall submit to Congress an assessment of the 
findings and recommendations contained in the report of the Secretary 
of Defense submitted under subsection (g).

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

SEC. 701. DEMONSTRATION PROJECT FOR TRICARE COVERAGE FOR READY RESERVE 
              MEMBERS.

    (a) Demonstration Program.--Section 1076b of title 10, United 
States Code, is amended to read as follows:
``Sec. 1076b. TRICARE demonstration project: coverage for members of 
              the Ready Reserve
    ``(a) In General.--(1) The Secretary of Defense shall conduct a 
demonstration project beginning in fiscal year 2005 to test whether 
TRICARE coverage for certain Ready Reserve members and their families 
enhances medical readiness and retention of such members.
    ``(2) Under the demonstration project required by paragraph (1), 
within the scope of the project, as established by the Secretary, 
members of the Ready Reserve may be allowed to enroll for coverage 
under the TRICARE Standard option of the TRICARE program and receive 
benefits under such enrollment for any period that the member--
            ``(A) is not eligible for health care benefits under an 
        employer-sponsored health benefits plan; and
            ``(B) either--
                    ``(i) is not on active duty; or
                    ``(ii) is on active duty but under a call or order 
                to active duty for a period of 30 days or less.
    ``(3) A member allowed to enroll in TRICARE Standard under the 
demonstration project may enroll for self-only coverage or self and 
family coverage.
    ``(b) Scope of Coverage .--A member and the dependents of a member 
enrolled in TRICARE Standard under this section shall be entitled to 
the same benefits and shall pay the same charges as are provided under 
section 1079 of this title.
    ``(c) Premiums.--(1) The Secretary of Defense shall charge premiums 
for coverage pursuant to enrollments under this section. The Secretary 
shall prescribe a premium for self only coverage and a premium for self 
and family coverage.
    ``(2) The monthly amount of the premium in effect for a month for a 
type of coverage under this section shall be the amount equal to 28 
percent of the total amount determined by the Secretary on an 
appropriate actuarial basis as being reasonable for the coverage.
    ``(3) The premiums payable by a member under this subsection may be 
deducted and withheld from basic pay payable to the member under 
section 204 of title 37 or from compensation payable to the member 
under section 206 of such title. The Secretary shall prescribe the 
requirements and procedures applicable to the payment of premiums by 
members not entitled to such basic pay or compensation.
    ``(4) Amounts collected as premiums under this subsection shall be 
credited to the appropriation available for the Defense Health Program 
Account under section 1100 of this title, shall be merged with sums in 
such Account that are available for the fiscal year in which collected, 
and shall be available under subparagraph (B) of such section for such 
fiscal year.
    ``(d) Conditions of Eligibility.--(1) The Secretary of Defense may 
establish other conditions of eligibility, including requiring a member 
to submit any certification that the Secretary considers appropriate to 
substantiate the member's assertion that the member is not eligible for 
health care benefits under any other health benefits plan.
    ``(2) In the case of any member who is self-employed and not 
eligible for coverage under any other employer-sponsored health 
benefits plan, the member shall not be considered eligible to enroll 
under this section if the member's income in the prior calendar year 
exceeded $40,000.
    ``(e) Scope and Terms of Demonstration Project.--The geographic 
scope and priorities for enrollment under the demonstration program, if 
any, shall be established by the Secretary of Defense. The Secretary 
may establish such other terms and conditions for the demonstration 
project required by subsection (a) as the Secretary determines 
appropriate to accomplish its purposes.
    ``(f) Termination of Authority.--An enrollment in TRICARE under 
this section may not continue after December 31, 2007.
    ``(g) Evaluation of Demonstration and Report to Congress.--Not 
later than March 1, 2007, the Secretary shall provide to Congress a 
report on the results of the demonstration project required by this 
section. Such report shall include an analysis of the impact of the 
demonstration on medical readiness and retention of the members who 
enrolled, an assessment of the costs and benefits of any improvements 
in medical readiness or retention, and recommendations concerning 
TRICARE Standard coverage for Ready Reserve members.
    ``(h) Definition.--In this section, the term `TRICARE Standard' 
means the option of the TRICARE program that is also known as the 
Civilian Health and Medical Program of the Uniformed Services, as 
defined in section 1072(4) of this title.''.
    (b) Termination of Coverage Under Superseded Provision of Law.--An 
enrollment in TRICARE under section 1076b of title 10, United States 
Code, as in effect before the date of the enactment of this Act may not 
continue after such date.
    (c) Site Identification.--(1) Not later than 60 days after the date 
of enactment of this Act, the Secretary of Defense, in consultation 
with the Committees on Armed Services of the Senate and the House of 
Representatives, shall identify not less than 10 sites that meet the 
criteria specified in paragraph (2) for the conduct of the 
demonstration project required under section 1076b of title 10, United 
States Code, as amended by this section.
    (2) For purposes of paragraph (1), the sites selected for the 
conduct of the demonstration project shall be areas of the United 
States that include a substantial number of personnel expected to be 
ordered to active duty for a period of more than 30 days.
    (d) Independent Evaluation and Reports.--(1) The Comptroller 
General shall conduct an evaluation of the demonstration project 
required under section 1076b of title 10, United States Code (as 
amended by this section) The evaluation shall include an assessment of 
the following:
            (A) Compliance by the Department of Defense with the 
        requirements under section 1076b of title 10, United States 
        Code (as amended by this section).
            (B) A description of the effects of the demonstration 
        project on medical readiness and retention of the participants 
        compared to nonparticipants.
            (C) The number of Ready Reserve members and their 
        dependents opting to participate in the demonstration project.
            (D) An analysis of how the demonstration project affects 
        the overall accessibility of care in the direct and purchased 
        care systems and a description of the unintended effects (if 
        any) upon the normal treatment priority system.
            (E) A description of the difficulties (if any) experienced 
        by the Department of Defense in managing the demonstration 
        project.
            (F) Any impact of the demonstration project on employers, 
        including causing them to discontinue health care insurance 
        benefits for employees who are members of the reserves.
            (G) A recommendation whether to extend the demonstration 
        project or make the project permanent.
            (H) A determination of whether the terms and conditions of 
        the demonstration project should be continued or modified if 
        the project is extended or expanded.
            (I) Implications on cost, medical readiness, recruitment, 
        and retention if the demonstration project was made available 
        to all reservists meeting the enrollment criteria throughout 
        the United States and its territories.
            (J) Any additional elements that the Comptroller General 
        determines are appropriate to assess the demonstration project.
    (2) The Comptroller General shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives--
            (A) an interim report on the evaluation under this section 
        not later than 12 months after the date on which the 
        demonstration project begins operation; and
            (B) a final report on the evaluation under this section not 
        later than March 1, 2007.

SEC. 702. COMPTROLLER GENERAL REPORT ON THE COST AND FEASIBILITY OF 
              PROVIDING PRIVATE HEALTH INSURANCE STIPENDS FOR MEMBERS 
              OF THE READY RESERVES.

    (a) Study Required.--The Comptroller General shall conduct a study 
on the cost and feasibility of providing a stipend to members of the 
Ready Reserves to offset the cost of continuing private health 
insurance coverage for the member's dependents when the member is on 
active duty for a period of more than 30 days, with the dependents 
being ineligible to enroll in the TRICARE program and payment of the 
stipend ending when the member is no longer on active duty.
    (b) Matters Covered.--The study shall include the following 
matters:
            (1) Recommendation for a benefit amount and cost to the 
        Department of Defense.
            (2) Potential effects on medical readiness, recruitment, 
        and retention.
            (3) The extent to which the Reserves and members of their 
        families might participate under the stipend program.
            (4) Administrative and management considerations for the 
        Department of Defense.
            (5) Impact of pre-existing conditions on continuity of care 
        for dependents.
            (6) Possible implications for employers.
    (c) Report.--Not later than March 31, 2005, the Comptroller General 
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 under this section.

SEC. 703. IMPROVEMENT OF MEDICAL SERVICES FOR ACTIVATED MEMBERS OF THE 
              READY RESERVE AND THEIR FAMILIES.

    (a) Requirement for TRICARE Coverage for Dependents of Members of 
Reserve Components Called to Active Duty.--Paragraph (1) of section 
1074(d) of title 10, United States Code, is amended--
            (1) by inserting ``a dependent of'' after ``chapter,'';
            (2) by inserting ``a dependent of a member'' after 
        ``treated as being''; and
            (3) by striking ``the later of'' and all that follows 
        through the period at the end of subparagraph (B) and inserting 
        ``the date described in paragraph (3).''.
    (b) Authority for TRICARE Coverage for Members of Reserve 
Components Called To Active Duty.--Section 1074(d) of such title is 
further amended--
            (1) by striking paragraph (3);
            (2) by redesignating paragraph (2) as paragraph (4); and
            (3) by inserting after paragraph (1) the following new 
        paragraphs:
    ``(2) The Secretary of Defense may, beginning on the date described 
in paragraph (3), provide a member of a reserve component of the armed 
forces who is issued a delayed-effective-date active-duty order, or is 
covered by such an order, such medical and dental care (in addition to 
care for which the member is eligible under section 1074a(f) of this 
title or other provisions of law) the Secretary determines appropriate.
    ``(3) The date referred to in paragraphs (1) and (2) with respect 
to a member is the later of the date that is--
            ``(A) the date of the issuance of the delayed-effective-
        date active-duty order; or
            ``(B) 90 days before the date on which the period of active 
        duty is to commence under such order for that member.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2005.

SEC. 704. MODIFICATION OF WAIVER OF CERTAIN DEDUCTIBLES UNDER TRICARE 
              PROGRAM.

    Section 1095d(a) of title 10, United States Code, is amended in 
paragraphs (1) and (2) by striking ``less than one year'' each place it 
appears and inserting ``more than 30 days''.

SEC. 705. AUTHORITY FOR PAYMENT BY UNITED STATES OF ADDITIONAL AMOUNTS 
              BILLED BY HEALTH CARE PROVIDERS TO ACTIVATED RESERVE 
              MEMBERS.

    Section 1079(h) of title 10, United States Code, is amended by 
adding at the end of paragraph (4) the following new subparagraph:
    ``(C) In the case of services billed to a dependent referred to in 
subsection (a) of a member of a reserve component who is ordered to 
active duty for a period of more than 30 days in support of a 
contingency operation under a provision of law referred to in section 
101(a)(13)(B) of this title, the regulations shall provide that, in 
addition to amounts otherwise payable by the United States, the 
Secretary may pay the amount referred to in subparagraph (B)(i) for the 
services.''.

SEC. 706. EXTENSION OF TRANSITIONAL HEALTH CARE BENEFITS AFTER 
              SEPARATION FROM ACTIVE DUTY.

    (a) Extension of Transitional Health Care Benefits.--Paragraph (3) 
of section 1145(a) of title 10, United States Code, is amended to read 
as follows:
    ``(3) Transitional health care shall be available under this 
subsection for a period beginning on the date on which the member is 
separated from active duty and ending on the earlier of--
            ``(A) 180 days after the date on which the member is 
        separated from active duty; or
            ``(B) the date on which the member and dependents of the 
        member are covered by a health plan sponsored by an 
        employer.''.
    (b) Limitation.--During the period beginning on January 1, 2005, 
and ending on September 30, 2005, not more than $170,000,000 of the 
amount appropriated pursuant to the authorization for operations and 
maintenance for the Defense Health Program in section 303(a) may be 
used for transitional health care under section 1145(a) of title 10, 
United States Code, as amended by this section.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to separations from active duty that take effect on 
or after January 1, 2005.

                Subtitle B--Other Benefits Improvements

SEC. 711. COVERAGE OF CERTAIN YOUNG CHILDREN UNDER TRICARE DENTAL 
              PROGRAM.

    (a) Coverage of Certain Young Children.--Section 1076a(k)(2) of 
title 10, United States Code, is amended by inserting after ``by reason 
of'' the following: ``the dependent's young age on the date of death of 
the member of''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF HEALTH AND SUPPORT 
              SERVICES FOR EXCEPTIONAL FAMILY MEMBER PROGRAM ENROLLEES.

    (a) Evaluation Requirement.--The Comptroller General shall evaluate 
the effect of the Exceptional Family Member Program (in this section 
referred to as ``EFMP'') on health and support services in selected 
civilian communities near military installations with a high 
concentration of EFMP enrollees.
    (b) Matters Covered.--The evaluation under subsection (a) shall 
include a discussion of the following:
            (1) Communities that have high concentrations of EFMP 
        enrollees that use State and local health and support services.
            (2) Needs of EFMP enrollees, if any, that are not met by 
        State and local health and support services.
            (3) The burdens, financial and otherwise, placed on State 
        and local health and support services by EFMP enrollees and 
        their families.
            (4) The ability of the TRICARE program to meet the needs of 
        EFMP enrollees and their families.
            (5) Reasons for any limitations of the TRICARE program, the 
        EFMP, and State and local health and support services in 
        providing assistance to EFMP enrollees and their families.
            (6) Recommendations for more effectively meeting the needs 
        of EFMP enrollees and their families.
    (c) Communities Covered.--The evaluation under subsection (a) shall 
examine no fewer than four civilian communities, as determined by the 
Comptroller General, that have high concentrations of EFMP enrollees 
and that are near several military installations, including at least 
two military installations with tenants from more than one of the Armed 
Forces.
    (d) Definitions.--In this section:
            (1) The term ``health and support services'' means services 
        provided to children and other dependents with special needs, 
        including specialized day care, mental health day treatment 
        services, respite services, counseling, and other such services 
        provided for children and other dependents with special needs.
            (2) The term ``TRICARE program'' has the meaning given that 
        term in section 1072(7) of title 10, United States Code.
    (e) Report.--Not later than March 31, 2005, the Comptroller General 
shall submit to the Armed Services Committees of the Senate and the 
House of Representatives a report on the results of the evaluation 
required under subsection (a), with findings and recommendations.

SEC. 713. EXCEPTIONAL ELIGIBILITY FOR TRICARE PRIME REMOTE.

    Section 1079(p) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
    ``(4) The Secretary of Defense may provide for coverage of a 
dependent referred to in subsection (a) who is not described in 
paragraph (3) if the Secretary determines that exceptional 
circumstances warrant such coverage.''.

SEC. 714. TRANSITION TO HOME HEALTH CARE BENEFIT UNDER SUB-ACUTE CARE 
              PROGRAM.

    Section 1074j of title 10, United States Code, is amended in 
subsection (b)(3)--
            (1) by inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following:
    ``(B) The Secretary of Defense shall establish procedures for the 
transition to and implementation of the home health care benefit 
required by subparagraph (A). The Secretary may provide in such 
procedures that covered beneficiaries who, before the implementation of 
such benefit, received home health care under this chapter in excess of 
such benefit, may continue to receive such care for such time as the 
Secretary considers appropriate.''.

SEC. 715. REQUIREMENT RELATING TO PRESCRIPTION DRUG BENEFITS FOR 
              MEDICARE-ELIGIBLE ENROLLEES UNDER DEFENSE HEALTH CARE 
              PLANS.

    Section 1074g(a)(6) of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following:
            ``(B) For a medicare-eligible beneficiary, the cost-sharing 
        requirements may not be in excess of the cost-sharing 
        requirements applicable to all other beneficiaries covered by 
        section 1086 of this title. For purposes of the preceding 
        sentence, a medicare-eligible beneficiary is a beneficiary 
        eligible for health benefits under section 1086 of this title 
        pursuant to subsection (d)(2) of such section.''.

SEC. 716. PROFESSIONAL ACCREDITATION OF MILITARY DENTISTS.

    Section 1077(c) of title 10, United States Code, is amended--
            (1) by striking ``A'' and inserting ``(1) Except as 
        provided in paragraph (2), a''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) Dependents who have not attained age 13 and who are 
participating under a dental plan established under section 1076a of 
this title may be treated by post-graduate dental students in eligible 
dental treatment facilities if--
            ``(i)(I) treatment of pediatric dental patients is required 
        to comply with American Dental Association accreditation 
        standards; or
            ``(II) pediatric dental training is required to enable 
        post-graduate dental students to provide dental care for such 
        dependents outside the United States; and
            ``(ii) there are insufficient numbers of children eligible 
        to be provided dental care under section 1076(a) of this title 
        to meet such standards or training requirements.
    ``(B) The total number of dependents who may be treated under this 
paragraph may not exceed 2,000 in any fiscal year.
    ``(C) In this paragraph, an eligible dental treatment facility is a 
dental treatment facility with a post-graduate dental education program 
accredited by the American Dental Association.''.

SEC. 717. ADDITION OF CERTAIN UNREMARRIED FORMER SPOUSES TO PERSONS 
              ELIGIBLE FOR DENTAL INSURANCE PLAN OF RETIREES OF THE 
              UNIFORMED SERVICES.

    (a) Eligibility of Certain Former Spouses for Dental Coverage.--(1) 
Section 1076c(b) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
            ``(6) A person who--
                    ``(i) is an unremarried former spouse of a member 
                described in paragraph (1) or (2);
                    ``(i) is described in section 1072(2)(F)(i) of this 
                title; and
                    ``(ii) does not have dental coverage under an 
                employer-sponsored health plan.''.
    (b) Effective Date.--Section 1076c(b)(6) of title 10, United States 
Code, as added by subsection (a), shall take effect on the date of the 
enactment of this Act.

SEC. 718. WAIVER OF COLLECTION OF PAYMENTS DUE FROM CERTAIN PERSONS 
              UNAWARE OF LOSS OF CHAMPUS ELIGIBILITY.

    (a) Authority To Waive Collection.--The Secretary of Defense may 
waive (in whole or in part) the collection of payments otherwise due 
from a person described in subsection (b) as a result of the receipt by 
the person of health benefits under section 1086 of title 10, United 
States Code, after the termination of the person's eligibility for such 
benefits and may also authorize continued coverage of benefits under 
section 1086 of such title for such person for the period described in 
subsection (c).
    (b) Persons Eligible.--A person shall be eligible for relief under 
subsection (a) if the person--
            (1) is a person described in paragraph (1) of subsection 
        (d) of section 1086, of title 10, United States Code;
            (2) in the absence of such paragraph, would have been 
        eligible for health benefits under such section;
            (3) at the time of the receipt of such benefits, satisfies 
        the criteria specified in subparagraph (B) of paragraph (2) of 
        such subsection; and
            (4) was unaware of the loss of eligibility to receive 
        health benefits at the time they were received.
    (c) Extent of Authority.--The authority to waive the collection of 
payments and to continue coverage of benefits under this section shall 
apply during the period beginning on July 1, 1999, and ending on 
December 31, 2004, under terms established by the Secretary of Defense.
    (d) Quarterly Reports.--(1) The Secretary of Defense shall provide 
quarterly reports to the Committees on Armed Services of the Senate and 
House of Representatives regarding--
            (A) efforts by the Department of Defense to identify 
        persons who satisfy the criteria specified in subparagraph (B) 
        of subsection (d)(2) of section 1086 of title 10, United States 
        Code, and would be eligible for health benefits under such 
        section if the criteria specified in subparagrpah (A) were also 
        satisfied; and
            (B) actions taken by the Department with respect to persons 
        identified under subparagraph (B) of this paragraph.
    (2) The first report under paragraph (1) shall be submitted not 
later than 30 days after the end of the first quarter of fiscal year 
2005.

           Subtitle C--Planning, Programming, and Management

 SEC. 721. PILOT PROGRAM FOR TRANSFORMATION OF HEALTH CARE DELIVERY.

     (a) Findings.--(1) Congress finds the following:
            (A) Historically, providing military health care to 
        military beneficiaries has centered on building a military 
        medical treatment facility and providing a full range of 
        services on a military installation.
            (B) Traditionally, in many locations the majority of 
        military personnel and their dependents who are eligible 
        beneficiaries of the military health care system do not live on 
        military installations.
            (C) As the cost of repairing, replacing, recapitalizing, or 
        expanding aging military treatment facilities and maintaining 
        adequate health care services on military installations 
        increases, the Department of Defense will be challenged to find 
        new, more cost-effective ways of providing enhanced health care 
        for military and civilian beneficiaries of the Department of 
        Defense health care system.
    (2) In view of these findings, the Secretary of Defense is directed 
to examine feasible and cost-effective methods for leveraging and 
expanding non-military health care resources to provide health care to 
military beneficiaries. Furthermore, the Secretary of Defense shall 
conduct a pilot program in accordance with this section.
    (b) Pilot Program Purposes.--The Secretary of Defense shall conduct 
a pilot program at one or more military installations for purposes of 
testing--
            (1) the feasibility and cost effectiveness of expanding use 
        of non-military health care resources, particularly in cases in 
        which such use would reduce or eliminate the need for military 
        medical construction projects;
            (2) initiatives that build cooperative health care 
        arrangements and agreements between military installations and 
        local and regional non-military health care systems; and
            (3) development of an integrated, long range business plan 
        for the delivery of health care services for military 
        beneficiaries, incorporating present and potential future 
        capabilities in the non-military health care sector.
    (c) Requirements of Pilot Program.--In conducting the pilot 
program, the Secretary of Defense shall--
            (1) identify and analyze health care delivery options that 
        range from outsourcing all health care delivery services to the 
        private sector to providing some health care services in 
        military facilities located on the installation;
            (2) determine the cost avoidance or savings resulting from 
        innovative partnerships between the Department of Defense and 
        the private sector and limiting recapitalization costs in 
        military facilities;
            (3) study the potential, viability, cost efficiency, and 
        health care effectiveness of Department of Defense health care 
        providers delivering health care in civilian community 
        hospitals;
            (4) determine the opportunities for and barriers to 
        coordinating and leveraging the use of existing health care 
        resources, including Federal, State, local, and contractor 
        assets; and
            (5) develop recommendations for a model health care 
        delivery system that may be used at other military 
        installations.
    (d) Consultation Requirements.--The Secretary of Defense shall 
develop the pilot program in consultation with the Secretaries of the 
military departments, representatives from the military installation 
selected for the pilot program, Federal, State, and local entities, and 
the TRICARE managed care support contractor with responsibility for 
that installation.
    (e) Selection of Military Installation.--The pilot program shall be 
implemented at one or more military installations selected by the 
Secretary of Defense. At least one of the selected military 
installations shall meet the following criteria:
            (1) The military installation is an Army installation 
        located in a rural area.
            (2) The military installation has members of the Armed 
        Forces on active duty and members of reserve components of the 
        Armed Forces that use the installation as a training and 
        operational base, with members routinely deploying in support 
        of the global war on terrorism.
            (3) The number of members of the Armed Forces on active 
        duty permanently assigned to the military installation is 
        expected to increase over the next five years.
            (4) One or more partnerships exist at the military 
        installation with civilian health care entities in the form of 
        limited specialty care services in the military medical 
        treatment facility on the installation.
            (5) There is a military treatment facility on the 
        installation that does not have inpatient or trauma center care 
        capabilities.
            (6) There is a civilian community hospital within 15 miles 
        of the military installation with limited capability to expand 
        inpatient care beds, intensive care, and specialty services.
            (7) There is no civilian hospital with a trauma center 
        within 50 miles from the military installation.
    (f) Duration of Pilot Program.--Implementation of the pilot program 
developed under this subsection shall begin not later than May 1, 2005, 
and shall be conducted during fiscal years 2005, 2006, and 2007.
    (g) Funds.--For fiscal year 2005, not more than $5,000,000 of the 
amount appropriated pursuant to the authorization for operations and 
maintenance for the Defense Health Program in section 303(a) may be 
used to conduct the pilot program under this section.
    (h) Reports.--Not later than July 1, 2005, the Secretary of Defense 
shall submit an interim report to the Committees on Armed Services of 
the Senate and of the House of Representatives describing the details 
of the pilot program. Not later than July 1, 2007, the Secretary of 
Defense shall submit to such committees a final report describing the 
results of the pilot program with recommendations for a model health 
care delivery system for other military installations.

SEC. 722. STUDY OF PROVISION OF TRAVEL REIMBURSEMENT TO HOSPITALS FOR 
              CERTAIN MILITARY DISABILITY RETIREES.

    (a) Study.--The Secretary of Defense shall conduct a study of the 
feasibility, and of the desirability, of providing that a member of the 
uniformed services retired under chapter 61 of title 10, United States 
Code, for a combat-related disability (as defined in section 1413a(e) 
of that title) shall be provided reimbursement for the travel expenses 
of such member for travel, during the two-year period beginning on the 
date of the retirement of the member, to a military treatment facility 
for medical care. The Secretary shall include in that study 
consideration of whether reimbursement under such a plan should, as 
nearly as practicable, be under the same terms and conditions, and at 
the same rate, as apply to beneficiary travel reimbursement provided by 
the Secretary of Veterans Affairs under section 111 of title 38, United 
States Code.
    (b) Report.--The Secretary of Defense shall submit to the 
congressional defense committees a report providing the results of the 
study under subsection (a). Such report shall be submitted not later 
than March 1, 2005.

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

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

SEC. 801. RAPID ACQUISITION AUTHORITY TO RESPOND TO COMBAT EMERGENCIES.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2410p. Rapid acquisition authority to respond to combat 
              emergencies
    ``(a) Rapid Acquisition Authority.--The Secretary of Defense may 
rapidly acquire, in accordance with this section, equipment needed by a 
combatant commander to eliminate a combat capability deficiency that 
has resulted in combat fatalities.
    ``(b) Process for Rapid Acquisition.--Not later than 30 days after 
the date of the enactment of this section, the Secretary of Defense 
shall develop a process for the rapid acquisition authority provided by 
subsection (a) and submit to Congress a detailed explanation of the 
process, including procedures to be followed in carrying out the 
process. The process shall provide for the following:
            ``(1) A requirement that the process may be used only to 
        acquire the minimum amount of equipment needed until the needs 
        of the combatant commander can be fulfilled under existing 
        acquisition statutes, policies, directives, and regulations.
            ``(2) A goal of awarding a contract for the equipment 
        within 15 days after receipt of a request from a commander.
            ``(3) In a case in which the equipment cannot be acquired 
        without an extensive delay, a requirement for an interim 
        solution to minimize the combat capability deficiency and 
        combat fatalities until the equipment can be acquired.
            ``(4) Waiver of the applicability of all policies, 
        directives, and regulations related to--
                    ``(A) the establishment of the requirement for the 
                equipment;
                    ``(B) the research, development, test, and 
                evaluation of the equipment; and
                    ``(C) the solicitation and selection of sources, 
                and the award of the contract, for procurement of the 
                equipment.
            ``(5) Such other procedures or requirements as the 
        Secretary considers appropriate.
    ``(c) Waiver of Certain Statutes.--For purposes of exercising the 
authority provided by subsection (a) with respect to equipment, laws 
relating to the following shall not apply:
            ``(A) The establishment of the requirement for the 
        equipment.
            ``(B) The research, development, test, and evaluation of 
        the equipment.
            ``(C) The solicitation and selection of sources, and the 
        award of the contract, for procurement of the equipment.
    ``(d) Limitations.--The rapid acquisition authority provided by 
subsection (a) may be used only--
            ``(1) after the Secretary of Defense, without delegation, 
        determines in writing that there exists a combat capability 
        deficiency that has resulted in combat fatalities; and
            ``(2) to acquire equipment in an amount aggregating not 
        more than $100,000,000 during a fiscal year.
    ``(e) Source of Funds.--For acquisitions under this section to be 
made during any fiscal year, the Secretary may use any funds made 
available to the Department of Defense for that fiscal year.
    ``(f) Notification to Congress After Each Use of Authority.--The 
Secretary of Defense shall notify the congressional defense committees 
within 15 days after each use of the authority provided by subsection 
(a). Each such notice shall identify the equipment to be acquired, the 
amount to be expended for such acquisition, and the source of funds for 
such acquisition.
    ``(g) Combatant Commander.--In this section, the term `combatant 
commander' means the commander of a unified combatant command with 
authority for the conduct of operations in a specific area of 
responsibility or who otherwise has authority to conduct operations at 
the direction of the President or Secretary of Defense.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2410p. Rapid acquisition authority to respond to combat 
                            emergencies.''.

SEC. 802. DEFENSE ACQUISITION WORKFORCE CHANGES.

    (a) Selection Criteria and Procedures.--Section 1732(b)(1)(A) of 
title 10, United States Code, is amended by striking ``within grade GS-
13 or above of the General Schedule'' and inserting ``in any position 
designated by the Secretary of Defense''.
    (b) Critical Acquisition Positions.--Section 1733 of such title is 
amended by striking subsection (b) and inserting the following:
    ``(b) Designation of Critical Acquisition.--(1) The Secretary of 
Defense shall designate the acquisition positions in the Department of 
Defense that are critical acquisition positions. Such positions shall 
include the following:
            ``(A) Program executive officer.
            ``(B) Program manager of a major defense acquisition 
        program (as defined in section 2430 of this title) or of a 
        significant nonmajor defense acquisition program (as defined in 
        section 1737(a)(3) of this title).
            ``(C) Deputy program manager of a major defense acquisition 
        program.
            ``(D) Any other acquisition position of significant 
        responsibility determined by the Secretary to be critical.
    ``(2) The Secretary shall annually publish a list of the positions 
designated under this subsection.''.
    (c) Scholarship Programs.--Section 1742 of such title is amended--
            (1) by inserting ``(a) Programs.--'' at the beginning of 
        the text; and
            (2) by adding at the end the following new subsection:
    ``(b) Scholarship Program Requirements.--With respect to any 
scholarship program conducted under this section, the Secretary of 
Defense and the participant shall agree in writing to the terms of the 
scholarship. The agreement shall include the obligations of the 
Secretary and the participant, as well as actions available for either 
party to take if there is a failure to meet the obligations under the 
agreement.''.

SEC. 803. LIMITATION ON TASK AND DELIVERY ORDER CONTRACTS.

    Subsection 2304a(f) of title 10, United States Code, is amended to 
read as follows:
    ``(f) Contract Period.--The head of an agency entering into a task 
or delivery order contract under this section may provide for the 
contract to cover any base period up to five years and may extend the 
contract period for one or more successive periods pursuant to an 
option provided in the contract or a modification to the contract.''.

SEC. 804. FUNDING FOR CONTRACT CEILINGS FOR CERTAIN MULTIYEAR 
              PROCUREMENT CONTRACTS.

    (a) Multiyear Contracts Relating to Property.--Section 2306b(g) of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``Before any'';
            (2) by striking ``Committee'' through ``House of 
        Representatives'' and inserting ``congressional defense 
        committees''; and
            (3) by adding at the end the following new paragraph:
    ``(2) In the case of a contract described in subsection (a) with a 
cancellation ceiling described in paragraph (1), if the budget for the 
contract does not include proposed funding for the costs of contract 
cancellation up to the cancellation ceiling established in the 
contract, the head of the agency concerned shall, as part of the 
certification required by subsection (i)(1)(A), give written 
notification to the congressional defense committees of--
            ``(A) the cancellation ceiling amounts planned for each 
        program year in the proposed multiyear procurement contract, 
        together with the reasons for the amounts planned;
            ``(B) the extent to which costs of contract cancellation 
        are not included in the budget for the contract; and
            ``(C) a financial risk assessment of not including 
        budgeting for costs of contract cancellation, including 
        proposed funding sources to meet such cancellation costs if the 
        contract is canceled.''.
    (b) Multiyear Contracts Relating to Services.--Section 2306c(d) of 
title 10, United States Code, is amended--
            (1) in paragraphs (1), (3), and (4), by striking 
        ``committees of Congress named in paragraph (5)'' and inserting 
        ``congressional defense committees'' each place it appears; and
            (2) by amending paragraph (5) to read as follows:
    ``(5) In the case of a contract described in subsection (a) with a 
cancellation ceiling described in paragraph (4), if the budget for the 
contract does not include proposed funding for the costs of contract 
cancellation up to the cancellation ceiling established in the 
contract, the head of the agency concerned shall give written 
notification to the congressional defense committees of--
            ``(A) the cancellation ceiling amounts planned for each 
        program year in the proposed multiyear procurement contract, 
        together with the reasons for the amounts planned;
            ``(B) the extent to which costs of contract cancellation 
        are not included in the budget for the contract; and
            ``(C) a financial risk assessment of not including 
        budgeting for costs of contract cancellation, including 
        proposed funding sources to meet such cancellation costs if the 
        contract is canceled.''

SEC. 805. INCREASED THRESHOLD FOR REQUIRING CONTRACTORS TO PROVIDE 
              SPECIFIED EMPLOYEE INFORMATION TO COOPERATIVE AGREEMENT 
              HOLDERS.

    Section 2416(d) of title 10, United States Code, is amended by 
striking ``$500,000'' and inserting ``$1,000,000''.

SEC. 806. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION 
              PROCEDURES.

    Section 4202(e) of the Clinger-Cohen Act (division D of Public Law 
104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by striking 
``January 1, 2006'' and inserting ``October 1, 2009''.

SEC. 807. AUTHORITY TO ADJUST ACQUISITION-RELATED DOLLAR THRESHOLDS FOR 
              INFLATION.

    (a) Inflation Adjustment Authority.--The FAR Council and the heads 
of executive agencies may adjust the dollar thresholds in procurement 
laws in order to maintain the constant dollar value of the threshold, 
taking into account the effect of inflation on the threshold.
    (b) Limitation on Exercise of Authority.--Adjustments of dollar 
thresholds under subsection (a) may be carried out--
            (1) by the FAR Council only with respect to procurement 
        laws that apply to executive agencies generally; and
            (2) by the head of an executive agency only with respect to 
        procurement laws that apply to that agency exclusively.
    (c) Additional Requirements.--In adjusting a threshold under 
subsection (a), the FAR Council and the head of an agency shall--
            (2) consult with the Director of the Office of Management 
        and Budget;
            (3) round the threshold, to facilitate implementation; and
            (4) publish the adjusted threshold in the Federal Register.
    (d) Exclusions.--This section does not apply to--
            (1) dollar thresholds in sections 3141 through 3144, 3146, 
        and 3147 of title 40, United States Code;
            (2) dollar thresholds in the Service Contract Act of 1965 
        (41 U.S.C. 351, et seq.); or
            (3) dollar thresholds established by the United States 
        Trade Representative pursuant to title III of the Trade 
        Agreements Act of 1979 (19 U.S.C. 2511 et seq.).
    (e) Definitions.--In this section:
            (1) The term ``procurement law'' means any provision of law 
        that sets forth policies, procedures, requirements, or 
        restrictions for the procurement of property or services by the 
        Federal Government.
            (2) The terms ``executive agency'' and ``procurement'' have 
        the meanings provided by section 4(1) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403(1))
            (3) The term ``FAR Council'' means the Federal Acquisition 
        Regulatory Council established under section 25 of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 421)).

      Subtitle B--United States Defense Industrial Base Provisions

SEC. 811. DEFENSE TRADE RECIPROCITY.

    (a) In General.--Chapter 148 of title 10, United States Code, is 
amended by inserting after section 2532 the following new section:
``Sec. 2532a. Defense trade reciprocity
    ``(a) Policy.--(1) It is the policy of Congress that procurement 
regulations used in the conduct of trade in defense articles and 
defense services shall be based on the principle of fair trade and 
reciprocity consistent with United States national security, including 
the need to ensure comprehensive manufacturing capability in the United 
States defense industrial base for military system essential items.
    ``(2) The Secretary of Defense shall make every effort to ensure 
that the policies and practices of the Department of Defense reflect 
the goal of establishing an equitable trading relationship between the 
United States and its foreign defense trade partners, including 
ensuring that United States firms and United States employment in the 
defense sector are not disadvantaged by unilateral procurement 
practices by foreign governments, such as the imposition of offset 
agreements or similar requirements in defense procurements by those 
governments. In pursuing this goal, the Secretary shall--
            ``(A) develop a comprehensive defense acquisition trade 
        policy that provides the necessary guidance and incentives for 
        the elimination of offset agreements as an accepted practice in 
        defense trade; and
            ``(B) review and make necessary modifications to existing 
        acquisition policies and strategies, and review and seek to 
        make necessary modifications to existing memoranda of 
        understanding, cooperative project agreements, or related 
        agreements with foreign defense trade partners, to reflect this 
        goal.
    ``(b) Requirement.--The Secretary of Defense may not enter into a 
contract, or approve or permit any subcontract under a contract entered 
into by the Department of Defense, for the procurement of any defense 
article or defense service from a foreign firm unless the country in 
which the foreign firm performs substantially all of its manufacturing, 
production, and research and development activities in the performance 
of the contract (or subcontract) agrees to apply offset agreements to 
the procurement of defense articles and defense services from the 
United States firms in the same manner and to the same degree as such 
agreements are applied by the Department of Defense to the procurement 
of defense articles and defense services from that country.
    ``(c) Exception.--Subsection (b) does not apply to a contract or 
subcontract for the procurement of a defense article or defense service 
from a foreign firm if the Secretary of Defense determines in writing, 
with respect to the specific contract or subcontract, that an exception 
to subsection (b) is necessary for the Department to be able to meet 
national security objectives.
    ``(d) Notification Required When Exception Applied.--The Secretary 
of Defense may not apply an exception under subsection (c) until--
            ``(1) a notification of the intent to apply such exception 
        is submitted to the congressional defense committees and 
        published in the Federal Register; and
            ``(2) a period of 30 days has expired after the date on 
        which such notification is so submitted and published.
    ``(e) Authority to Apply Exception Not Delegable.--The authority of 
the Secretary to apply the exception under subsection (c) may not be 
delegated to any officer or employee in a position at a level lower 
than the position of the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.-
    ``(f) Regulations.--The Secretary shall prescribe regulations to 
implement this section in the Department of Defense supplement to the 
Federal Acquisition Regulation.
    ``(g) Effective Date.--This section and the regulations prescribed 
under this section shall apply to contracts and subcontracts entered 
into on and after the date occurring one year after the date of the 
enactment of this Act.
    ``(h) Definitions.--In this section:
            ``(1) The term `foreign firm' means a business entity that 
        performs substantially all of its manufacturing, production, 
        and research and development activities outside of the United 
        States.
            ``(2) The term `United States firm' means a business entity 
        that performs substantially all of its manufacturing, 
        production, and research and development activities in the 
        United States.
            ``(3) The term `foreign defense trade partner' means a 
        foreign country with respect to which there is--
                    ``(A) a memorandum of understanding or related 
                agreement described in section 2531(a) of title 10, 
                United States Code; or
                    ``(B) a cooperative project agreement described in 
                section 27 of the Arms Export Control Act (22 U.S.C. 
                2767).
            ``(4) The term `offset agreement' has the meaning provided 
        that term by section 36(e) of the Arms Export Control Act (22 
        U.S.C. 2776(e)).
            ``(5) The terms `defense article' and `defense service' 
        have the meanings provided those terms by section 47(7) of the 
        Arms Export Control Act (22 U.S.C. 2794(7)).
            ``(6) The term `military system essential item' means an 
        item on the military system essential item breakout list 
        produced pursuant to section 813(b) of the National Defense 
        Authorization Act for Fiscal Year 2004 (P.L. 108-136; 117 Stat. 
        1544).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2532a. Defense trade reciprocity.''.

SEC. 812. AMENDMENTS TO DOMESTIC SOURCE REQUIREMENTS.

    (a) Notice.--Section 2533a of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(k) Notification Required When Certain Exceptions Applied.--(1) 
Funds appropriated or otherwise available to the Department of Defense 
may not be used to enter into a contract to procure an item described 
in subsection (b) pursuant to an exception set forth in subsection (c) 
or (e) until--
            ``(A) a notification of the intent to apply such exception 
        is submitted to Congress and posted on the website maintained 
        by the General Services Administration known as FedBizOpps.gov 
        (or any successor site); and
            ``(B) a period of 15 days has expired after the date on 
        which such notification is so submitted and published.
    ``(2) In any case in which the Secretary of Defense or the 
Secretary of the military department concerned intends to apply or 
applies the exception set forth in subsection (d)(1), the Secretary 
concerned shall submit to Congress a notification of such intent or 
such application during the period beginning six months before the date 
of application of such exception and ending six months after the date 
of application of such exception.''.
    (b) Clothing Materials and Components Covered.--Subsection (b) of 
section 2533a of title 10, United States Code, is amended in paragraph 
(1)(B) by inserting before the semicolon the following: ``and the 
materials and components thereof, other than sensors, electronics, or 
other items added to, and not normally associated with, clothing (and 
the materials and components thereof)''.

SEC. 813. THREE-YEAR EXTENSION OF RESTRICTION ON ACQUISITION OF 
              POLYACRYLONITRILE (PAN) CARBON FIBER FROM FOREIGN 
              SOURCES.

    The Secretary of Defense shall delay by three years the phase-out 
of the restriction on acquisition of polyacrylonitrile (PAN) carbon 
fiber from foreign sources (described in subpart 225.7103 of the 
Department of Defense supplement to the Federal Acquisition 
Regulation). In implementing such delay, the Secretary shall revise the 
appplicable regulations to ensure that such restriction applies to--
            (1) solicitations and contracts issued on or before May 31, 
        2006, for major systems that are not yet in production; and
            (2) solicitations and contracts issued during the period 
        beginning June 1, 2006, and ending May 31, 2008, for major 
        systems that are not yet in engineering and manufacturing 
        development.

SEC. 814. GRANT PROGRAM FOR DEFENSE CONTRACTORS TO IMPLEMENT STRATEGIES 
              TO AVOID OUTSOURCING OF JOBS.

    (a) Grant Program Authorized.--The Secretary of Defense may make 
grants under this section for fiscal year 2005 to qualified defense 
contractor groups for the purposes described in subsection (b).
    (b) Grant Purposes.--A grant may be made under this section for the 
purpose of implementing a strategy to avoid the outsourcing of jobs by 
a defense contractor, including the following strategies:
            (1) Cost-cutting measures.
            (2) Retraining programs.
            (3) Technology development.
            (4) Plant upgrades.
    (c) Application.--A grant may not be awarded under this section 
unless an application is submitted to, and approved by, the Secretary. 
Such an application--
            (1) shall be submitted by a qualified defense contractor 
        group in such form and manner as the Secretary may require; and
            (2) shall contain--
                    (A) a description of the strategy proposed for 
                avoiding the outsourcing of at least 10 jobs in the 
                performance of a defense contract by the defense 
                contractor concerned; and
                    (B) such other information as the Secretary may 
                require.
    (d) Definitions.--In this section:
            (1) The term ``qualified defense contractor group'', with 
        respect to a defense contractor, is a group or person 
        representing--
                    (A) management of the contractor;
                    (B) a labor organization that represents employees 
                of the contractor; or
                    (C) employees of the contractor.
            (2) The term ``outsourcing'', with respect to a defense 
        contract, includes the performance outside the United States of 
        work under the contract.
    (e) Federal Share.--The Federal share of the costs of the strategy 
carried out with a grant under this section may not exceed 50 percent.
    (f) Use of Defense Industrial Capabilities Fund for Grants.--(1) 
Notwithstanding section 814(c) of the National Defense Authorization 
Act for Fiscal Year 2004 (P.L. 108-136; 117 Stat. 1545), amounts in the 
Defense Industrial Base Capabilities Fund may be used for grants under 
this section.
    (2) For fiscal year 2005, up to $50,000,000 of amounts available in 
such Fund may be used to carry out this section.
    (g) Authorization of Funds.--There are authorized to be 
appropriated to the Defense Industrial Base Capabilities Fund 
$50,000,000 for purposes of providing grants under this section.

SEC. 815. PREFERENCE FOR DOMESTIC FREIGHT FORWARDING SERVICES.

    (a) Preference.--In the procurement of transportation services 
described in subsection (b), the Secretary of Defense shall give 
preference to any freight forwarder that--
            (1) certifies to the Department of Defense that it is owned 
        and controlled by citizens of the United States; and
            (2) offers services at fair and reasonable rates.
    (b) Services Covered.--Subsection (a) applies to transportation 
services to, from, or within Iraq or Afghanistan, and warehousing, 
logistics, or other similar services performed within Iraq or 
Afghanistan.

                 Subtitle C--Other Acquisition Matters

SEC. 821. SUSTAINMENT AND MODERNIZATION PLANS FOR EXISTING SYSTEMS 
              WHILE REPLACEMENT SYSTEMS ARE UNDER DEVELOPMENT.

    (a) Existing Systems to Be Maintained While Replacement Systems are 
Under Development.--(1) Chapter 144 of title 10, United States Code, is 
amended by inserting after section 2436 the following new section:
``Sec. 2437. Development of major defense acquisition programs: 
              sustainment and modernization of system to be replaced
    ``(a) Requirement for Sustaining and Modernizing Existing Forces.--
(1) The Secretary of Defense shall require that, whenever a new major 
defense acquisition program begins development, the defense acquisition 
authority responsible for that program shall develop a plan (to be 
known as a sustainment and modernization plan) for the existing system 
that the system under development is intended to replace. Any such 
sustainment and modernization plan shall provide for budgeting, 
sustaining, and modernizing the existing system until the replacement 
system to be developed under the major defense acquisition program is 
fielded and assumes the majority responsibility for the mission of the 
existing system. This section does not apply to a major defense 
acquisition that reaches initial operational capability before October 
1, 2008.
    ``(2) In this section, the term ``defense acquisition authority'' 
means the Secretary of a military department or the commander of the 
United States Special Operations Command.
    ``(b) Sustainment and Modernization Plan.--The Secretary of Defense 
shall require that each sustainment and modernization plan under this 
section include, at a minimum, the following:
            ``(1) The milestone schedule for the development of the 
        major defense acquisition program, including low-rate initial 
        production, initial operational capability, full-rate 
        production, full operational capability, and the date when the 
        replacement system assumes the majority responsibility for the 
        mission of the existing system.
            ``(2) An analysis of the existing system to determine the 
        following:
                    ``(A) A sustainment plan and budget requirements 
                necessary to provide service life extension to the 
                existing system at acceptable reliability and 
                availability rates.
                    ``(B) A modernization plan and budget requirements 
                necessary to maintain mission capability against the 
                relevant threats.
                    ``(C) A modernization plan and budget requirements 
                necessary--
                            ``(i) to transfer mature technologies from 
                        the new system or other systems so that the 
                        mission capability of the existing system is 
                        enhanced against relevant threats; and
                            ``(ii) to provide interoperability with the 
                        new system during the period from initial 
                        fielding until the new system assumes the 
                        majority of responsibility for the mission of 
                        the existing system.
    ``(c) Annual Review.--Each fiscal year, before the submission to 
Congress of the President's budget for the next fiscal year, the 
Secretary of Defense shall review the schedule performance of each 
replacement major defense acquisition program for which a sustainment 
and modernization plan has been developed under this section to compare 
that performance with the schedule set forth under subsection (b)(1). 
If the schedule for the program has changed, then the Secretary shall 
notify the congressional defense committees of such change.
    ``(d) Exceptions.--Subsection (a) shall not apply to a major 
defense acquisition program if the Secretary of Defense determines 
that--
            ``(1) the existing system is no longer relevant to the 
        mission;
            ``(2) the mission has been eliminated;
            ``(3) the mission has been consolidated with another 
        mission in such a manner that another existing system can 
        adequately meet the mission requirements; or
            ``(4) the duration of time until the new system assumes the 
        majority of responsibility for the existing system's mission is 
        sufficiently short so that mission availability, capability, 
        interoperability, and force protection requirements are 
        maintained.
    ``(e) Waiver.--The Secretary of Defense may waive the applicability 
of subsection (a) to a major defense acquisition program if the 
Secretary determines that, but for such a waiver, the Department would 
be unable to meet national security objectives. Whenever the Secretary 
makes such a determination and authorizes such a waiver, the Secretary 
shall submit notice of such waiver and of the Secretary's determination 
and the reasons therefor in writing to the congressional defense 
committees.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2436 the 
following new item:

``2437. Development of major defense acquisition programs: sustainment 
                            and modernization of system to be replaced 
                            .''.
    (b) Application to Existing Programs in Development.--Section 2437 
of title 10, United States Code, as added by subsection (a), shall 
apply with respect to a major defense acquisition program that is under 
development as of the date of the enactment of this Act and is not 
expected to reach initial operational capability before October 1, 
2008. The Secretary of Defense shall require that a sustainment and 
modernization plan under that section be developed not later than one 
year after the date of the enactment of this Act for the existing 
system that the system under development is intended to replace.

SEC. 822. REVIEW AND DEMONSTRATION PROJECT RELATING TO CONTRACTOR 
              EMPLOYEES.

    (a) General Review.--(1) The Secretary of Defense shall conduct a 
review of policies, procedures, practices, and penalties of the 
Department of Defense relating to employees of defense contractors for 
purposes of ensuring that the Department of Defense is in compliance 
with Executive Order No. 12989 (relating to a prohibition on entering 
into contracts with contractors that are not in compliance with the 
Immigration and Nationality Act).
    (2) In conducting the review, the Secretary shall--
            (A) identify potential weaknesses and areas for improvement 
        in existing policies, procedures, practices, and penalties;
            (B) develop and implement reforms to strengthen, upgrade, 
        and improve policies, procedures, practices, and penalties of 
        the Department of Defense and its contractors; and
            (C) review and analyze reforms developed pursuant to this 
        paragraph to identify for purposes of national implementation 
        those which are most efficient and effective.
    (3) The review under this subsection shall be completed not later 
than 180 days after the date of the enactment of this Act.
    (b) Demonstration Project.--The Secretary of Defense shall conduct 
a demonstration project in accordance with this section, in one or more 
regions selected by the Secretary, for purposes of promoting greater 
contracting opportunities for contractors offering effective, reliable 
staffing plans to perform defense contracts that ensure all contract 
personnel employed for such projects, including management employees, 
professional employees, craft labor personnel, and administrative 
personnel, are lawful residents or persons properly authorized to be 
employed in the United States and properly qualified to perform 
services required under the contract. The demonstration project shall 
focus on contracts for construction, renovation, maintenance, and 
repair services for military installations.
    (c) Demonstration Project Procurement Procedures.--As part of the 
demonstration project under subsection (b), the Secretary of Defense 
shall conduct a competition in which there is a provision in contract 
solicitations and request for proposal documents to require significant 
weight or credit be allocated to--
            (1) reliable, effective workforce programs offered by 
        prospective contractors that provide background checks and 
        other measures to ensure the contractor is in compliance with 
        the Immigration and Nationality Act; and
            (2) reliable, effective project staffing plans offered by 
        prospective contractors that specify for all contract employees 
        (including management employees, professionals, and craft labor 
        personnel) the skills, training, and qualifications of such 
        persons and the labor supply sources and hiring plans or 
        procedures used for employing such persons.
    (d) Implementation of Demonstration Project.--The Secretary of 
Defense shall begin operation of the demonstration project required 
under this section after completion of the review under subsection (a), 
but in no event later than 270 days after the date of the enactment of 
this Act.
    (e) Report on Demonstration Project.--Not later than six months 
after award of a contract under the demonstration project, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and House of Representatives a report setting forth a 
review of the demonstration project and recommendations on the actions, 
if any, that can be implemented to ensure compliance by the Department 
of Defense with Executive Order No. 12989.
    (f) Definition.--In this section, the term ``military 
installation'' means a base, camp, post, station, yard, center, 
homeport facility for any ship, or other activity under the 
jurisdiction of the Department of Defense, including any leased 
facility, which is located within any of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, American Samoa, 
the Virgin Islands, or Guam. Such term does not include any facility 
used primarily for civil works, rivers and harbors projects, or flood 
control projects.

SEC. 823. DEFENSE ACQUISITION WORKFORCE LIMITATION AND REPORTS.

    (a) Defense Acquisition and Support Personnel Limitation.--(1) 
Effective October 1, 2005, the number of defense acquisition and 
support personnel in the Department of Defense may not exceed 95 
percent of the baseline number.
    (2) For purposes of paragraph (1), the baseline number is the 
number of defense acquisition and support personnel as of October 1, 
2004.
    (3) All determinations of personnel strengths for purposes of this 
section shall be on the basis of full-time equivalent positions.
    (b) GAO Study and Report on Defense Acquisition and Support 
Personnel.--(1) The Comptroller General shall conduct a study of 
Department of Defense management of defense acquisition and support 
personnel. The study shall include--
            (A) an analysis of the number and structure of defense 
        acquisition and support personnel; and
            (B) an assessment of the size, mission, composition, and 
        projected workload requirements of defense acquisition and 
        support personnel.
    (2) The Comptroller General shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on the 
results of the study conducted under this subsection not later than 
March 1, 2005.
    (c) Defense Acquisition University Study and Report on Defense 
Acquisition and Support Personnel.--(1) The Defense Acquisition 
University shall conduct a study of all the training programs offered 
to defense acquisition and support personnel.
    (2) The Defense Acquisition University shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the results of the study conducted under 
this subsection not later than March 1, 2005. The report shall 
include--
            (A) the number of individuals currently certified within 
        the field they are working in; and
            (B) recommendations on how to improve education and 
        productivity for defense acquisition and support personnel, 
        including recommendations for additional training program 
        requirements.
    (d) Definition.--In this section, the term ``defense acquisition 
and support personnel'' means members of the Armed Forces 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 organization that, as determined by the Secretary, has 
acquisition as its predominant mission.

SEC. 824. PROVISION OF INFORMATION TO CONGRESS TO ENHANCE TRANSPARENCY 
              IN CONTRACTING.

    Upon request of the chairman or ranking member of the Committee on 
Armed Services of the Senate or House of Representatives, the Secretary 
of Defense shall provide, with respect to any contract or task or 
delivery order under a task or delivery order contract entered into by 
the Department of Defense, within 14 days after receipt of the request, 
unredacted copies of any documents required to be maintained in the 
contracting office contract file, the contract administration office 
contract file, and the paying office contract file pursuant to subpart 
4.8 of the Federal Acquisition Regulation, including--
            (1) copies of the contract and all modifications;
            (2) orders issued under the contract;
            (3) justifications and approvals;
            (4) any government estimate of contract price;
            (5) source selection documentation;
            (6) cost or price analysis;
            (7) audit reports;
            (8) justification for type of contract;
            (9) authority for deviations from regulations, statutory 
        requirements, or other restrictions;
            (10) bills, invoices, vouchers, and supporting documents; 
        and
            (11) records of payments or receipts.

                        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. TRANSFER OF CENTER FOR THE STUDY OF CHINESE MILITARY AFFAIRS 
              FROM NATIONAL DEFENSE UNIVERSITY TO UNITED STATES-CHINA 
              ECONOMIC AND SECURITY REVIEW COMMISSION.

    (a) Transfer.--The Center for the Study of Chinese Military Affairs 
established by section 914 of the National Defense Authorization Act 
for Fiscal Year 2000 (10 U.S.C. 2165 note) is transferred from the 
National Defense University of the Department of Defense to the United 
States-China Economic and Security Review Commission.
    (b) Conforming Amendment.--Subsection (a) of section 914 of the 
National Defense Authorization Act for 2000 (10 U.S.C. 2165 note) is 
amended to read as follows:
    ``(a) Establishment.--There shall be a Center for the Study of 
Chinese Military Affairs organized under the United States-China 
Economic and Security Review Commission established by section 1238 of 
the Floyd D. Spence National Defense Authorization Act for Fiscal Year 
2001 (22 U.S.C. 7002).''.
    (c) Repeal of Obsolete Provisions.--Such section is further amended 
by striking subsections (d) and (e).
    (d) Technical Amendments to Commission Charter.--(1) Section 
1238(c) of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (22 U.S.C. 7002) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(beginning in 2002)''; and
                    (B) by adding at the end the following new 
                sentence: ``The report shall include a full discussion 
                of the activities of the Commission under each of the 
                subparagraphs of paragraph (2).''; and
            (2) in paragraph (2)--
                    (A) by striking the matter preceding subparagraph 
                (A) and inserting the following:
            ``(2) Areas of focus.--The Commission shall focus, in lieu 
        of any other area of work or study, on the following:''; and
                    (B) by replacing subparagraphs (A) through (J) with 
                the text of subparagraphs (A) through (I) of section 
                2(c)(2) of division P of Public Law 108-7 (22 U.S.C. 
                7002 note).
    (2) Section 2(c)(2) of division P of Public Law 108-7 (22 U.S.C. 
7002 note) is repealed.
    (e) Effective Date.--Subsection (a) and the amendment made by 
subsection (b) shall take effect at the end of the 90-day period 
beginning on the date of the enactment of this Act.

SEC. 903. TRANSFER TO SECRETARY OF THE ARMY OF RESPONSIBILITY FOR 
              ASSEMBLED CHEMICAL WEAPONS ALTERNATIVES PROGRAM.

    Effective January 1, 2005, the text of section 142 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 50 U.S.C. 1521 note) is amended to read as 
follows:
    ``(a) Program Management.--(1) The program manager for the 
Assembled Chemical Weapons Alternatives program shall report to the 
Secretary of the Army.
    ``(2) The Secretary of the Army shall provide for that program to 
be managed as part of the management organization within the Department 
of the Army specified in section 1412(e) of Public Law 99-145 (50 
U.S.C. 1521(e)).
    ``(b) Continued Implementation of Previously Selected Alternative 
Technologies.--(1) In carrying out the destruction of lethal chemical 
munitions at Pueblo Chemical Depot, Colorado, the Secretary of the Army 
shall continue to implement fully the alternative technology for such 
destruction at that depot selected by the Under Secretary of Defense 
for Acquisition, Technology, and Logistics on July 16, 2002.
    ``(2) In carrying out the destruction of lethal chemical munitions 
at Blue Grass Army Depot, Kentucky, the Secretary of the Army shall 
continue to implement fully the alternative technology for such 
destruction at that depot selected by the Under Secretary of Defense 
for Acquisition, Technology, and Logistics on February 3, 2003.''.

SEC. 904. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS UNDER NATIONAL 
              SECURITY EDUCATION PROGRAM.

    (a) In General.--Subsection (b)(2) of section 802 of the David L. 
Boren National Security Education Act of 1991 (50 U.S.C. 1902) is 
amended by striking subparagraphs (A) and (B), as added by section 
925(a) of the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136; 117 Stat. 1578), and inserting the following:
                    ``(A) in the case of a recipient of a scholarship, 
                as soon as practicable but in no case later than three 
                years after the completion by the recipient of the 
                study for which scholarship assistance was provided 
                under the program, the recipient shall work for a 
                period of one year--
                            ``(i) in a national security position that 
                        the Secretary certifies is appropriate to use 
                        the unique language and region expertise 
                        acquired by the recipient pursuant to such 
                        study in the Department of Defense, in any 
                        element of the intelligence community, in the 
                        Department of Homeland Security, or in the 
                        Department of State; or
                            ``(ii) in such a position in any other 
                        Federal department or agency not referred to in 
                        clause (i) if the recipient demonstrates to the 
                        Secretary that no position is available in a 
                        Federal department or agency specified in 
                        clause (i); or
                    ``(B) in the case of a recipient of a fellowship, 
                as soon as practicable but in no case later than two 
                years after the completion by the recipient of the 
                study for which fellowship assistance was provided 
                under the program, the recipient shall work for a 
                period equal to the duration of assistance provided 
                under the program, but in no case less than one year--
                            ``(i) in a position described in 
                        subparagraph (A)(i) that the Secretary 
                        certifies is appropriate to use the unique 
                        language and region expertise acquired by the 
                        recipient pursuant to such study; or
                            ``(ii) in such a position in any other 
                        Federal department or agency not referred to in 
                        clause (i) if the recipient demonstrates to the 
                        Secretary that no position is available in a 
                        Federal department or agency specified in 
                        clause (i); and''.
    (b) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out the amendment made by subsection (a). In 
prescribing such regulations, the Secretary shall establish standards 
that recipients of scholarship and fellowship assistance under the 
program under such section 802 are required to demonstrate to satisfy 
the requirement of a good faith effort to gain employment as required 
under subparagraphs (A) and (B) of subsection (b)(2) of such section.
    (c) Applicability.--(1) The amendment made by subsection (a) shall 
apply with respect to service agreements entered into under the David 
L. Boren National Security Education Act of 1991 on or after the date 
of the enactment of this Act.
    (2) The amendment made by subsection (a) shall not affect the 
force, validity, or terms of any service agreement entered into under 
the David L. Boren National Security Education Act of 1991 before the 
date of the enactment of this Act that is in force as of that date.

SEC. 905. CHANGE OF MEMBERSHIP OF CERTAIN COUNCILS.

    (a) Membership of Armed Forces Policy Council.--Section 171(a) of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(14) The Commandant of the Coast Guard, for discussion of 
        matters pertaining to the Coast Guard.''.
    (b) Membership of Council Under Section 179.--Subsection (a) of 
section 179 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
            ``(4) The Under Secretary of Defense for Policy.''.
    (b) Conforming and Clarifying Amendments.--Such subsection is 
further amended in the matter preceding paragraph (1)--
            (1) by striking ``Joint''; and
            (2) by striking ``composed of three members as follows:'' 
        and inserting ``operated as a joint activity of the Department 
        of Defense and the Department of Energy. The membership of the 
        Council is comprised of the following officers of those 
        departments:''.
    (c) Other Technical and Clarifying Amendments.--Such section is 
further amended as follows:
            (1) Subsection (c)(3)(B) is amended by striking 
        ``appointed'' and inserting ``designated''.
            (2) Subsection (e) is amended by striking ``In addition'' 
        and all that follows through ``also'' and inserting ``The 
        Council shall''.
            (3) Subsection (f) is amended by striking ``Committee on'' 
        the first place it appears and all that follows through 
        ``Representatives'' and inserting ``congressional defense 
        committees''.
    (d) Stylistic Amendments.--Such section is further amended as 
follows:
            (1) Subsection (a) is amended by inserting ``Establishment; 
        Membership.--'' after ``(a)''.
            (2) Subsection (b) is amended by inserting ``Chairman; 
        Meetings.--'' after ``(b)''.
            (3) Subsection (c) is amended by inserting ``Staff and 
        Administrative Services; Staff Director.--'' after ``(c)''.
            (4) Subsection (d) is amended by inserting 
        ``Responsibilities.--'' after ``(d)''.
            (5) Subsection (e) is amended by inserting ``Report on 
        Difficulties Relating to Safety or Reliability.--'' after 
        ``(e)''.
            (6) Subsection (f) is amended by inserting ``Annual 
        Report.--'' after ``(f)''.
    (e) Further Conforming Amendment.--Section 3212(e) of the National 
Nuclear Security Administration Act (50 U.S.C. 2402(e)) is amended--
            (1) by striking ``Joint'' in the subsection heading; and
            (2) by striking ``Joint''.

SEC. 906. ACTIONS TO PREVENT THE ABUSE OF DETAINEES.

    (a) Policies Required.--The Secretary of Defense shall prescribe 
policies regarding procedures for the Armed Forces and other elements 
of the Department of Defense and contractor personnel of the Department 
of Defense intended to prevent the conditions leading to acts of abuse 
of detainees who are held by the United States as part of the Global 
War on Terrorism. Policies under this subsection shall be prescribed 
not later than 120 days after the date of the enactment of this Act.
    (b) Matters to be Included.--In order to achieve the objective 
stated in subsection (a), the policies on the prevention of abuse of 
detainees under that subsection shall specify, at a minimum, procedures 
for the following:
            (1) Ensuring that commanders of detention facilities and 
        commanders of interrogation facilities provide all assigned 
        personnel (including contractor personnel) with training, and 
        documented acknowledgement of receiving training, regarding the 
        Geneva Convention Relative to the Treatment of Prisoners of War 
        and established Standing Operating Procedures for the treatment 
        of detainees. Training provided under this paragraph to 
        contractor personnel shall be at least comparable in degree to 
        that provided to members of the Armed Forces.
            (2) Providing all detainees with information, in their own 
        language, of the protections afforded under the Geneva 
        Convention Relative to the Treatment of Prisoners of War.
            (3) Conducting periodic unannounced and announced 
        inspections of prisons and other areas where detainees are held 
        in order to provide continued oversight of interrogation and 
        detention operations.
            (4) Prohibiting contact between male guards and female 
        detainees and between female guards and male detainees, except 
        under exigent circumstances.
    (c) Reports to Congress.--The Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives--
            (1) a copy of the policies prescribed pursuant to 
        subsection (a), immediately after those policies are 
        prescribed; and
            (2) a report on the implementation of those policies, not 
        later than one year after the date on which those policies are 
        prescribed.

SEC. 907. RESPONSES TO CONGRESSIONAL INQUIRIES.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is 
amended by inserting after section 113a the following new section:
``Sec. 113b. Response to congressional inquiries
    ``Whenever the Secretary of Defense or any other official of the 
Department of Defense is requested by the chairman of the Committee on 
Armed Services of the Senate or the chairman of the Committee on Armed 
Services of the House of Representatives to respond to a question or 
inquiry submitted by the chairman or another member of that committee 
pursuant to a committee hearing or other activity, the Secretary (or 
other official) shall respond to the request, in writing, within 21 
days of the date on which the request is transmitted to the Secretary 
(or other official).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
113a the following new item:

``113b. Response to congressional inquiries.''.

                      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 2005 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 
$3,000,000,000. Of such amount, $500,000,000 may be used only for a 
transfer from an account for an active component to an account for a 
reserve component, or from an account of a reserve component to an 
account of an active component, of the same Armed Force.
    (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;
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress; and
            (3) may not be combined with the authority provided under 
        section 1522.
    (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. BUDGET JUSTIFICATION DOCUMENTS FOR OPERATION AND 
              MAINTENANCE.

    (a) In General.--(1) Chapter 9 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 232. Operations and maintenance budget presentation
    ``(a) In General.--In this section
            ``(1) The term `O&M justification documents' means 
        Department of Defense budget justification documents with 
        respect to accounts for operation and maintenance submitted to 
        the congressional defense committees in support of the 
        Department of Defense component of the President's budget for 
        any fiscal year.
            ``(2) The term `President's budget' means the budget of the 
        President submitted to Congress under section 1105 of title 31 
        for any fiscal year.
            ``(3) The term `current year' means the fiscal year during 
        which the President's budget is submitted in any year.
    ``(b) Identification of Baseline Amounts in O&M Justification 
Documents.--In any case in which the amount requested in the 
President's budget for a fiscal year for a Department of Defense 
operations and maintenance program, project, or activity is different 
from the amount appropriated for that program, project, or activity for 
the current year, the O&M justification documents supporting that 
budget shall identify that appropriated amount and the difference 
between that amount and the amount requested in the budget, stated as 
an amount and as a percentage.
    ``(c) Personal Service Contracts.--In the O&M justification 
documents for any fiscal year, costs programmed in the budget for that 
fiscal year for Department of Defense for personal service contracts, 
and the number of personal service contractors to be used by the 
Department of Defense during that fiscal year who will be compensated 
at an annual rate in excess of the annual rate of salary of the Vice 
President under section 104 of title 3, shall be separately set forth 
and identified.
    ``(d) Navy Subactivities for Ship Depot Maintenance and for 
Intermediate Ship Maintenance.--In the O&M justification documents for 
the Navy for any fiscal year, amounts requested for ship depot 
maintenance and amounts requested for intermediate ship maintenance 
shall be set forth as separate budget subactivity groups.
    ``(e) Civilian Average Salary Costs.--In the O&M justification 
documents for any fiscal year, average civilian salary costs, shown by 
subactivity group, shall be set forth as a component of the personnel 
summary exhibit.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``232. Operations and maintenance budget presentation.''.
    (b) Components of Line Items for Other Costs and Other Contracts.--
Not later than March 1, 2005, the Secretary of Defense shall submit to 
the congressional defense committees a report setting forth the 
component elements of the line items identified as ``Other Costs'' and 
``Other Contracts'' in the exhibit identified as ``Summary of Price and 
Program Changes'' in the budget justification materials submitted to 
those committees in support of the budget for fiscal year 2006.

SEC. 1003. RETENTION OF FEES FROM INTELLECTUAL PROPERTY LICENSES.

    (a) In General.--Chapter 165 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2788. Licensing of intellectual property of the military 
              departments; authority to charge and retain fees
    ``(a) Authority to Retain Fees.--(1) Under regulations prescribed 
by the Secretary of Defense, the Secretary concerned may license 
trademarks, service marks, certification marks, and collective marks 
owned by a military department and may retain and expend fees received 
from such licensing in accordance with subsection (b).
    ``(2) In this section, the terms `trademark', `service mark', 
`certification mark', `collective mark', and `mark' have the meanings 
given those terms in section 45 of the Trademark Act of 1946 (15 U.S.C. 
1127).
    ``(b) Use of Licensing Fees.--(1) Funds received by a military 
department from licensing under subsection (a)(1) shall be used for the 
expenses incurred by the department in securing the registration of 
marks owned by the department and in licensing those marks.
    ``(2) If the amount of fees received by a military department 
during any fiscal year from the licensing of marks exceeds the 
anticipated expenses under paragraph (1) during that year, the 
Secretary concerned may designate those funds as excess and expend them 
as provided in paragraph (3).
    ``(3) Not more than 50 percent of any such excess funds shall be 
available for military personnel recruiting and retention activities of 
the department. The remainder of such funds shall be available for 
morale, welfare, and recreation activities of the department.
    ``(4) Funds received pursuant to subsection (a)(1) shall remain 
available for two years after the end of the fiscal year during which 
the funds are received.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2788. Licensing of intellectual property of the military departments; 
                            authority to charge and retain fees.''.

SEC. 1004. AUTHORITY TO WAIVE CLAIMS OF THE UNITED STATES WHEN AMOUNTS 
              RECOVERABLE ARE LESS THAN COSTS OF COLLECTION.

    (a) Authority.--Chapter 165 of title 10, United States Code, is 
amended by inserting after section 2780 the following new section:
``Sec. 2780a. Debt collection: general waiver authority for small 
              amounts owed the United States
    ``(a) Authority.--In the case of an indebtedness to the United 
States described in subsection (b) that is for an amount that is less 
than the threshold amount specified in subsection (c), the Secretary of 
Defense may, under regulations prescribed under this section, cancel 
the indebtedness and waive recovery of the amount owed. Such authority 
may be used only when, based on a cost-benefit analysis, the Secretary 
determines that the costs of collection are expected to exceed the 
amount recoverable.
    ``(b) Covered Debts.--(1) Except as provided in paragraph (2), this 
section applies with respect to amounts owed to the United States that 
arise out of the activities of, or that are referred to, the Department 
of Defense (including amounts owed by members of the armed forces and 
Department of Defense civilian personnel).
    ``(2) The authority under this section does not apply to amounts 
owed to the United States arising out of activities of the Department 
of Defense that have been referred to another executive agency for 
collection action or that are otherwise within the purview of another 
executive agency.
    ``(c) Maximum Amount Waivable.--The threshold amount referred to in 
subsection (a) is the micropurchase threshold amount in effect under 
section 32 of the Office of Federal Procurement Policy Act (41 U.S.C. 
428).
    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations for the purposes of this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2780 the following new item:

``2780a. Debt collection: general waiver authority for small amounts 
                            owed the United States.''.

SEC. 1005. REPEAL OF FUNDING RESTRICTIONS CONCERNING DEVELOPMENT OF 
              MEDICAL COUNTERMEASURES AGAINST BIOLOGICAL WARFARE 
              THREATS.

    (a) Repeal.--Section 2370a of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 139 of such title is amended by striking the item relating to 
that section.

SEC. 1006. REPORT ON BUDGETING FOR EXCHANGE RATES FOR FOREIGN CURRENCY 
              FLUCTUATIONS.

    (a) Secretary of Defense Report.--(1) Not later than December 1, 
2004, the Secretary Defense shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on the 
foreign currency exchange rate projection used in annual Department of 
Defense budget presentations.
    (2) In the report under paragraph (1), the Secretary shall--
            (A) identify alternative approaches for selecting foreign 
        currency exchange rates that would produce more realistic 
        estimates of amounts required to be appropriated or otherwise 
        made available for the Department of Defense to accommodate 
        foreign currency exchange rate fluctuations;
            (B) address the advantages and disadvantages of each 
        approach identified pursuant to subparagraph (A);
            (C) identify the Secretary's preferred approach among the 
        alternatives identified pursuant to subparagraph (A) and 
        provide the Secretary's rationale for preferring that approach.
    (3) In identifying alternative approaches pursuant to paragraph 
(2)(A), the Secretary shall examine--
            (A) approaches used by other Federal departments and 
        agencies; and
            (B) the feasibility of using private economic forecasting.
    (b) Comptroller General Review and Report.--The Comptroller General 
of the United States shall review the report under subsection (a), 
including the basis for the Secretary's conclusions stated in the 
report, and shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report containing the Comptroller 
General's conclusions with respect to that report. Such report shall be 
submitted not later than January 15, 2005.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. AUTHORITY FOR AWARD OF CONTRACTS FOR SHIP DISMANTLING ON 
              NET-COST BASIS.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by inserting after section 7305 the following new section:
``Sec. 7305a. Vessels stricken from Naval Vessel Register: contracts 
              for dismantling on net-cost basis
    ``(a) Authority for Net-Cost Basis Contracts.--When the Secretary 
of the Navy awards a contract for the dismantling of a vessel stricken 
from the Naval Vessel Register, the Secretary may award the contract on 
a net-cost basis.
    ``(b) Retention by Contractor of Proceeds of Sale of Scrap and 
Reusable Items.--When the Secretary awards a contract on a net-cost 
basis under subsection (a), the Secretary shall provide in the contract 
that the contractor may retain the proceeds from the sale of scrap and 
reusable items removed from the vessel dismantled under the contract.
    ``(c) Definitions.--In this section:
            ``(1) The term `net-cost basis', with respect to a contract 
        for the dismantling of a vessel, means that the amount to be 
        paid to the contractor under the contract for dismantling and 
        for removal and disposal of hazardous waste material is 
        discounted by the offeror's estimate of the value of scrap and 
        reusable items that the contractor will remove from the vessel 
        during performance of the contract.
            ``(2) The term `scrap' means personal property that has no 
        value except for its basic material content.
            ``(3) The term `reusable item' means a demilitarized 
        component or a removable portion of a vessel or equipment that 
        the Secretary of the Navy has identified as excess to the needs 
        of the Navy but which has potential resale value on the open 
        market.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7305 the following new item:

``7305a. Vessels stricken from Naval Vessel Register: contracts for 
                            dismantling on net-cost basis.''.

SEC. 1012. INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF THE NAVY 
              SHIP CONSTRUCTION PROGRAM.

    (a) Study.--The Secretary of Defense shall provide for a study, to 
be conducted by an entity independent of the Department of Defense, of 
the cost effectiveness of the ship construction program of the Navy. 
The purpose of the study shall be to examine both--
            (1) a variety of approaches by which the Navy ship 
        construction program could be made more efficient in the near 
        term; and
            (2) a variety of approaches by which, with a nationally 
        integrated effort over the next decade, the United States 
        shipbuilding industry might be made competitive globally.
    (b) Near Term Improvements in Efficiency.--With respect to the 
examination under subsection (a)(1) of approaches by which the Navy 
ship construction program could be made more efficient in the near 
term, the Secretary shall provide for the entity conducting the study--
            (1) to determine, with respect to each approach so 
        examined, the cost savings that could result from 
        implementation of that approach over each of the next 10 years;
            (2) to recommend one or more of the approaches examined 
        under subsection (a)(1) for implementation; and
            (3) for each approach recommended under paragraph (2) for 
        implementation, to develop a concept and implementation plan by 
        which the recommended improvements could best be phased into 
        the naval ship construction program.
    (c) Global Competitiveness of United States Shipbuilding 
Industry.--With respect to the examination under subsection (a)(2) of 
approaches by which, with a nationally integrated effort over the next 
decade, the United States shipbuilding industry might be made 
competitive globally, the Secretary shall provide for the entity 
conducting the study--
            (1) to develop a plan to modernize the United States 
        shipbuilding infrastructure within the next decade in order to 
        make the United States shipbuilding industry more competitive 
        globally; and
            (2) to estimate the resources required to carry out a 
        modernization plan developed under paragraph (1).
    (d) Report.--Not later than June 1, 2005, the Secretary of Defense 
shall submit to the congressional defense committees a report providing 
the results of the study under subsection (a). The report shall include 
the matters specified in subsections (b) and (c).

SEC. 1013. AUTHORITY TO TRANSFER SPECIFIED FORMER NAVAL VESSELS TO 
              CERTAIN FOREIGN COUNTRIES.

    (a) Authority to transfer by Grant.--The Prsident is authorized to 
transfer vessels to foreign countries on a grant basis under section 
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j), as 
follows:
            (1) Chile.--The ``SPRUANCE'' class destroyer O'BANNON (DD-
        987) to the Government of Chile.
            (2) Portugal.--The ``OLIVER HAZARD PERRY'' class guided 
        missile frigate GEORGE PHILIP (FFG-12) to the Government of 
        Portugal.
    (b) Authority to transfer by Sale.--The President is authorized to 
transfer on a sale basis under section 21 of the Arms Export Control 
Act (22 U.S.C. 2761) the ``ANCHORAGE'' class dock landing ship 
ANCHORAGE (LSD-36) to the Taipei Economic and Cultural Representative 
Office in the United States (which is the Taiwan instrumentality 
designated pursuant to section 10(a) of the Taiwan Relations Act).
    (c) Grants Not Counted in Annual Total of Transferred Excess 
Defense Articles.--The value of a vessel transferred to another country 
on a grant basis under section 516 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321j) pursuant to authority provided by subsection (a) 
shall not be counted for the purposes of subsection (g) of that section 
in the aggregate value of excess defense articles transferred to 
countries under that section in any fiscal year.
    (d) Costs of Transfers.--Any expense incurred by the United States 
in connection with a transfer authorized by this section shall be 
charged to the recipient (notwithstanding section 516(e) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2321j (e)) in the case of a transfer 
authorized to be made on a grant basis under subsection (a)).
    (e) Repair and Refurbishment in United States Shipyards.--To the 
maximum extent practicable, the President shall require, as a condition 
of the transfer of a vessel under this section, that the country to 
which the vessel is transferred have such repair or refurbishment of 
the vessel as is needed, before the vessel joins the naval forces of 
that country, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (f) Expiration of Authority.--The authority to transfer a vessel 
under this section shall expire at the end of the two-year period 
beginning on the date of the enactment of this Act.

SEC. 1014. LIMITATION ON LEASING OF FOREIGN-BUILT VESSELS.

    (a) In General.--(1) Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2401a the following new section:
``Sec. 2401b. Limitation on lease of foreign-built vessels
    ``(a) Limitation.--The Secretary of a military department may not 
make a contract for a lease or charter of a vessel for a term of more 
than 12 months (including all options to renew or extend the contract) 
if the hull, a major component of the hull, or superstructure of the 
vessel is constructed in a foreign shipyard.
    ``(b) Presidential Waiver for National Security Interest.--(1) The 
President may authorize exceptions to the limitation in subsection (a) 
when the President determines that it is in the national security 
interest of the United States to do so.
    ``(2) The President shall transmit notice to Congress of any such 
determination, and no contract may be made pursuant to the exception 
authorized until the end of the 30-day period beginning on the date on 
which the notice of the determination is received by Congress.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2401a the 
following new item:

``2401b. Limitation on lease of foreign-built vessels.''.
    (b) Effective Date.--Section 2401b of title 10, United States Code, 
as added by subsection (a), shall apply with respect to contracts 
entered into after the date of the enactment of this Act.

                   Subtitle C--Sunken Military Craft

SEC. 1021. PRESERVATION OF TITLE TO SUNKEN MILITARY CRAFT AND 
              ASSOCIATED CONTENTS.

    Right, title, and interest of the United States in and to any 
United States sunken military craft shall not be extinguished by the 
passage of time, regardless of when the sunken military craft sank.

SEC. 1022. PROHIBITIONS.

    (a) Unauthorized Activities Directed at Sunken Military Craft.--No 
person shall engage in or attempt to engage in any activity directed at 
a sunken military craft that disturbs, removes, or injures any sunken 
military craft, except--
            (1) as authorized by a permit under this subtitle;
            (2) as authorized by regulations issued under this 
        subtitle; or
            (3) as otherwise authorized by law.
    (b) Possession of Sunken Military Craft.--No person may possess, 
disturb, remove, or injure any sunken military craft in violation of--
            (1) this section; or
            (2) any prohibition, rule, regulation, ordinance, or permit 
        that applies under any other applicable Federal, foreign, or 
        other law.
    (c) Limitations on Application.--
            (1) Actions by united states.--This section shall not apply 
        to actions taken by, or at the direction of, the United States.
            (2) Foreign persons.--This section shall not apply to any 
        action by a person who is not a citizen, national, or resident 
        alien of the United States, except in accordance with--
                    (A) generally recognized principles of 
                international law;
                    (B) an agreement between the United States and the 
                foreign country of which the person is a citizen; or
                    (C) in the case of an individual who is a crew 
                member or other individual on a foreign vessel or 
                foreign aircraft, an agreement between the United 
                States and the flag State of the foreign vessel or 
                aircraft that applies to the individual.
            (3) Loan of sunken military craft.--This section does not 
        prohibit the loan of United States sunken military craft in 
        accordance with regulations issued by the Secretary concerned.

SEC. 1023. PERMITS.

    (a) In General.--The Secretary concerned may issue a permit 
authorizing a person to engage in an activity otherwise prohibited by 
section 1022 with respect to a United States military craft, for 
archaeological, historical, or educational purposes, in accordance with 
regulations issued by such Secretary that implement this section.
    (b) Consistency With Other Laws.--The Secretary concerned shall 
require that any activity carried out under a permit issued by such 
Secretary under this section must be consistent with all requirements 
and restrictions that apply under any other provision of Federal law.
    (c) Consultation.--In carrying out this section (including the 
issuance after the date of the enactment of this Act of regulations 
implementing this section), the Secretary concerned shall consult with 
the head of each Federal agency having authority under Federal law with 
respect to activities directed at sunken military craft or the 
locations of such craft.

SEC. 1024. PENALTIES.

    (a) In General.--Any person who violates this subtitle, or any 
regulation or permit issued under this subtitle, shall be liable to the 
United States for a civil penalty under this section.
    (b) Assessment and Amount.--The Secretary concerned may assess a 
civil penalty under this section, after notice and an opportunity for a 
hearing, of not more than $100,000 for each violation.
    (c) Continuing Violations.--Each day of a continued violation of 
this subtitle or a regulation or permit issued under this subtitle 
shall constitute a separate violation for purposes of this section.

SEC. 1025. LIABILITY FOR DAMAGES.

    (a) In General.--Any person who engages in an activity in violation 
of section 1022 or any regulation or permit issued under this subtitle 
that disturbs, removes, or injures any United States sunken military 
craft shall pay the United States enforcement costs and damages 
resulting from such disturbance, removal, or injury.
    (b) Included Damages.--Damages referred to in subsection (a) may 
include--
            (1) the reasonable costs incurred in storage, restoration, 
        care, maintenance, conservation, and curation of any sunken 
        military craft that is disturbed, removed, or injured in 
        violation of section 1022 or any regulation or permit issued 
        under this subtitle; and
            (2) the cost of retrieving, from the site where the sunken 
        military craft was disturbed, removed, or injured, any 
        information of an archaeological, historical, or cultural 
        nature.

SEC. 1026. RELATIONSHIP TO OTHER LAWS.

    (a) In General.--Except to the extent that an activity is 
undertaken as a subterfuge for activities prohibited by this subtitle, 
nothing in this subtitle is intended to affect--
            (1) any activity that is not directed at a sunken military 
        craft; or
            (2) the traditional high seas freedoms of navigation, 
        including--
                    (A) the laying of submarine cables and pipelines;
                    (B) operation of vessels;
                    (C) fishing; or
                    (D) other internationally lawful uses of the sea 
                related to such freedoms.
    (b) International Law.--This subtitle and any regulations 
implementing this subtitle shall be applied in accordance with 
generally recognized principles of international law and in accordance 
with the treaties, conventions, and other agreements to which the 
United States is a party.
    (c) Law of Finds.--The law of finds shall not apply to any United 
States sunken military craft, wherever located.
    (d) Law of Salvage.--No salvage rights or awards shall be granted 
with respect to any sunken military craft without the express 
permission of the United States.
    (e) Law of Capture or Prize.--Nothing in this subtitle is intended 
to alter the international law of capture or prize with respect to 
sunken military craft.
    (f) Limitation of Liability.--Nothing in sections 4281 through 4287 
and 4289 of the Revised Statutes (46 U.S.C. App. 181 et seq.) or 
section 3 of the Act of February 13, 1893 (chapter 105; 27 Stat. 445; 
46 U.S.C. App. 192), shall limit the liability of any person under this 
section.
    (g) Authorities of the Commandant of the Coast Guard.--Nothing in 
this subtitle is intended to preclude or limit the application of any 
other law enforcement authorities of the Commandant of the Coast Guard.
    (h) Prior Delegations, Authorizations, and Related Regulations.--
Nothing in this subtitle shall invalidate any prior delegation, 
authorization, or related regulation that is consistent with this 
subtitle.
    (i) Criminal Law.--Nothing in this subtitle is intended to prevent 
the United States from pursuing criminal sanctions for plundering of 
wrecks, larceny of Government property, or violation of any applicable 
criminal law.

SEC. 1027. ENCOURAGEMENT OF AGREEMENTS WITH FOREIGN COUNTRIES.

    The Secretary of State, in consultation with the Secretary of 
Defense, is encouraged to negotiate and conclude bilateral and 
multilateral agreements with foreign countries with regard to sunken 
military craft consistent with this subtitle.

SEC. 1028. DEFINITIONS.

    In this subtitle:
            (1) Associated contents.--The term ``associated contents'' 
        means--
                    (A) the equipment, cargo, and contents of a sunken 
                military craft that are within its debris field; and
                    (B) the remains and personal effects of the crew 
                and passengers of a sunken military craft that are 
                within its debris field.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of a military department.
            (3) Sunken military aircraft.--The term ``sunken military 
        aircraft'' means any sunken military aircraft that was owned or 
        operated by the United States when it sank.
            (4) Sunken military craft.--The term ``sunken military 
        craft'' means any sunken military vessel, sunken military 
        aircraft, or associated contents, or any portion thereof, the 
        title to which has not been abandoned or transferred in a 
        manner prescribed by the United States.
            (5) Sunken military vessel.--The term ``sunken military 
        vessel'' means any sunken warship or naval auxiliary of the 
        United States that is a public vessel as that term is used in 
        the Act of March 3, 1925 (chapter 428; 46 U.S.C. App. 781 et 
        seq.), popularly known as the Public Vessels Act.
            (6) United states contiguous zone.--The term ``United 
        States contiguous zone'' means the contiguous zone of the 
        United States under Presidential Proclamation 7219, dated 
        September 2, 1999.
            (7) United states internal waters.--The term ``United 
        States internal waters'' means all waters of the United States 
        on the landward side of the baseline from which the breadth of 
        the United States territorial sea is measured.
            (8) United states territorial sea.--The term ``United 
        States territorial sea'' means the waters of the United States 
        territorial sea under Presidential Proclamation 5928, dated 
        December 27, 1988.
            (9) United states waters.--The term ``United States 
        waters'' means United States internal waters, the United States 
        territorial sea, and the United States contiguous zone.

                  Subtitle D--Counter-Drug Activities

SEC. 1031. CONTINUATION OF AUTHORITY TO USE DEPARTMENT OF DEFENSE FUNDS 
              FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM CAMPAIGN IN 
              COLOMBIA.

    (a) Authority to Provide Assistance.--During fiscal years 2005 and 
2006, 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. 1032. 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.

                          Subtitle E--Reports

SEC. 1041. STUDY OF CONTINUED REQUIREMENT FOR TWO-CREW MANNING FOR 
              BALLISTIC MISSILE SUBMARINES.

    (a) Study and Determination.--The Secretary of Defense shall 
conduct a study of whether the practice of using two alternating crews 
(referred to as the ``Gold Crew'' and the ``Blue Crew'') for manning of 
ballistic missile submarines (SSBNs) continues to be justified under 
the changed circumstances since the end of the Cold War and, based on 
that study, shall make a determination of whether that two-crew manning 
practice should be continued or should be modified or terminated.
    (b) Report.--Not later than six months after the date of the 
enactment of this Act, the Secretary shall submit to the Committees on 
Armed Services of the Senate and House of Representatives a report 
providing notice of the Secretary's determination under subsection (a) 
and the reasons for that determination.

SEC. 1042. STUDY OF EFFECT ON DEFENSE INDUSTRIAL BASE OF ELIMINATION OF 
              UNITED STATES DOMESTIC FIREARMS MANUFACTURING BASE.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the congressional defense 
committees a report describing in detail the effect on both military 
readiness and the defense industrial base that would result from the 
elimination of the United States domestic firearms manufacturing base.

SEC. 1043. STUDY OF EXTENT AND QUALITY OF TRAINING PROVIDED TO MEMBERS 
              OF THE ARMED SERVICES TO PREPARE FOR POST-CONFLICT 
              OPERATIONS.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
to determine the extent to which members of the Armed Forces assigned 
to duty in support of contingency operations receive training in 
preparation for post-conflict operations and to evaluate the quality of 
such training
    (b) Matters Included in Study.--As part of the study under 
subsection (a), the Secretary shall specifically evaluate the 
following:
            (1) The doctrine, training, and leader-development system 
        necessary to enable members of the Armed Forces to successfully 
        operate in post-conflict operations.
            (2) The adequacy of curricula at military educational 
        facilities to ensure that the Armed Forces has a cadre of 
        members skilled in post-conflict duties, foreign languages, and 
        foreign cultures.
            (3) The training time and resources available to members 
        and units to develop cultural awareness about ethnic 
        backgrounds, religious beliefs, and political loyalties of the 
        people living in areas in which the Armed Forces operate.
            (4) The organization of the combatant commands to conduct 
        post-conflict operations.
    (c) Submission of Study Results.--Not later than March 15, 2005, 
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 this section.

                      Subtitle F--Security Matters

SEC. 1051. 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 has or is seeking access to national 
security information for purposes of Executive Order 12968, or any 
successor Executive order, or an individual who is being investigated 
for Federal employment under authority of Executive Order 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 national security 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.''.

SEC. 1052. STANDARDS FOR DISQUALIFICATION FROM ELIGIBILITY FOR 
              DEPARTMENT OF DEFENSE SECURITY CLEARANCE .

    (a) Disqualified Persons.--Subsection (c)(1) of section 986 of 
title 10, United States Code, is amended--
            (1) by striking ``and'' and inserting ``, was''; and
            (2) and inserting before the period at the end the 
        following: ``, and was incarcerated as a result of that 
        sentence for not less than one year''.
    (b) Waiver Authority.--Subsection (d) of such section is amended to 
read as follows:
    ``(d) Waiver Authority.--In a meritorious case, an exception to the 
prohibition in subsection (a) may be authorized for a person described 
in paragraph (1) or (4) of subsection (c) if there are mitigating 
factors. Any such waiver may be authorized only in accordance with 
standards and procedures prescribed by, or under the authority of, an 
Executive order or other guidance issued by the President.''.

               Subtitle G--Transportation-Related Matters

SEC. 1061. USE OF MILITARY AIRCRAFT TO TRANSPORT MAIL TO AND FROM 
              OVERSEAS LOCATIONS.

    (a) Authority for Use of Military Aircraft.--Section 3401 of title 
39, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1)(A), by 
                striking ``title 49,'' and inserting ``title 49, or on 
                military aircraft at rates not to exceed those so fixed 
                and determined for scheduled United States air 
                carriers,''; and
                    (B) in the sentence following paragraph (3), by 
                striking ``carriers'' each place it appears and 
                inserting ``carriers and military aircraft''; and
            (2) in subsection (c)--
                    (A) in the first sentence, by striking ``title 
                49,'' and inserting ``title 49, or on military aircraft 
                at rates not to exceed those so fixed and determined 
                for scheduled United States air carriers,''; and
                    (B) in the second sentence--
                            (i) by inserting ``and military aircraft'' 
                        after ``carriers'' the first place it appears; 
                        and
                            (ii) by striking ``by air carriers other 
                        than scheduled United States air carriers'' and 
                        inserting ``by other than scheduled United 
                        States air carriers and military aircraft''.
    (b) Definition.--Such section is further amended by adding at the 
end the following new subsection:
    ``(g) In this section, the term `military aircraft' means an 
aircraft owned, operated, or chartered by the Department of Defense.''.

SEC. 1062. REORGANIZATION AND CLARIFICATION OF CERTAIN PROVISIONS 
              RELATING TO CONTROL AND SUPERVISION OF TRANSPORTATION 
              WITHIN THE DEPARTMENT OF DEFENSE.

    (a) Transfer of Certain Transportation Authorities.--Sections 4744, 
4745, 4746, and 4747 of title 10, United States Code, are transferred 
to chapter 157 of such title, inserted (in that order) at the end of 
such chapter, and redesignated as sections 2648, 2649, 2650, and 2651, 
respectively.
    (b) Clarification of Applicability of Transferred Authorities 
Throughout the Department of Defense.--(1) Section 2648 of such title, 
as transferred and redesignated by subsection (a), is amended--
            (A) by striking ``Secretary of the Army'' in the matter 
        preceding paragraph (1) and inserting ``Secretary of Defense'';
            (B) by striking ``Army transport agencies'' in the matter 
        preceding paragraph (1) and all that follows through ``military 
        transport agency of''; and
            (C) by striking paragraphs (1), (2), and (3);
            (D) by redesignating paragraph (4), (5), (6), and (7) as 
        paragraphs (1), (2), (3), and (4), respectively;
            (E) by redesignating paragraph (8) as paragraph (5) and in 
        that paragraph striking ``persons described in clauses (1), 
        (2), (4), (5), and (7)'' and inserting ``members of the armed 
        forces, officers and employees of the Department of Defense or 
        the Coast Guard, and persons described i paragraphs (1), (2), 
        and (4)''; and
            (F) by striking ``clause (7) or (8)'' in the last sentence 
        and inserting ``paragraph (4) or (5)''.
    (2) Section 2649 of such title, as transferred and redesignated by 
subsection (a), is amended--
            (A) by striking the section heading and inserting the 
        following:
``Sec. 2649. Civilian passengers and commercial cargoes: transportation 
              on Department of Defense vessels'';
            (B) by striking ``(1) on vessels'' and all that follows 
        through ``Department of the Army'';
            (C) by striking ``any transport agency of''; and
            (D) by striking ``Secretary of the Army'' and all that 
        follows through ``be transported'' and inserting ``Secretary of 
        Defense, be transported''.
    (3) Section 2650 of such title, as transferred and redesignated by 
subsection (a), is amended--
            (A) in the matter preceding paragraph (1), by striking 
        ``Army transport agencies'' and all that follows through 
        ``military transport agency of'';
            (B) in paragraph (1), by striking ``Secretary of the Army'' 
        and inserting ``Secretary of Defense''; and
            (C) in paragraph (4), by striking ``by air--'' and all that 
        follows through ``the transportation cannot'' and inserting 
        ``by air, the transportation cannot''.
    (4) Section 2651 of such title, as transferred and redesignated by 
subsection (a), is amended by striking ``Army transport agencies'' and 
all that follows and inserting ``the Department of Defense, under 
regulations and at rates to be prescribed by the Secretary of 
Defense.''.
    (c) Repeal of Superseded and Obsolete Provisions.--The following 
sections of such title are repealed: sections 4741, 4743, 9741, 9743, 
and 9746.
    (d) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 157 
        of such title is amended by adding at the end the following new 
        items:

``2648. Persons and supplies: sea transportation.
``2649. Civilian passengers and commercial cargoes: transportation on 
                            Department of Defense vessels.
``2650. Civilian personnel in Alaska.
``2651. Passengers and merchandise to Guam: sea transport.''.
            (2) The table of sections at the beginning of chapter 447 
        of such title is amended by striking the items relating to 
        sections 4741, 4743, 4744, 4745, 4746, and 4747.
            (3) The table of sections at the beginning of chapter 947 
        of such title is amended by striking the items relating to 
        sections 9741, 9743, and 9746.

SEC. 1063. DETERMINATION OF WHETHER PRIVATE AIR CARRIERS ARE CONTROLLED 
              BY UNITED STATES CITIZENS FOR PURPOSES OF ELIGIBILITY FOR 
              GOVERNMENT CONTRACTS FOR TRANSPORTATION OF PASSENGERS OR 
              SUPPLIES.

    Section 2710 of the Emergency Wartime Supplemental Appropriations 
Act, 2003 (Public Law 108-11; 117 Stat. 601), is amended by adding at 
the end the following new sentence: ``Any determination for purposes of 
this section of whether (in accordance with the first proviso of this 
section) an air carrier is effectively controlled by citizens of the 
United States shall be made by, or shall be based on determinations 
made by, the Secretary of Transportation.''.

SEC. 1064. EVALUATION OF WHETHER TO PROHIBIT CERTAIN OFFERS FOR 
              TRANSPORTATION OF SECURITY-SENSITIVE CARGO.

    (a) Evaluation Requirement.--The Secretary of Defense shall 
evaluate whether, and under what circumstances, in the award of service 
contracts for domestic freight transportation for security-sensitive 
cargo (such as arms, ammunitions, explosive, and classified material), 
the Secretary should not consider an offer or tender from more than one 
motor carrier that is part of a group of motor carriers under common 
financial or administrative control. In conducting the evaluation, the 
Secretary shall seek industry comment.
    (b) Report.--Not later than January 1, 2005, the Secretary of 
Defense shall submit to the Committees on Armed Services of the House 
of Representatives and the Senate a report on the results of the 
evaluation conducted under subsection (a).

                       Subtitle H--Other Matters

SEC. 1071. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE 
              TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
              INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

    Section 431(a) of title 10, United States Code, is amended by 
striking ``December 31, 2004'' and inserting ``December 31, 2006''.

SEC. 1072. ASSISTANCE FOR STUDY OF FEASIBILITY OF BIENNIAL 
              INTERNATIONAL AIR TRADE SHOW IN THE UNITED STATES AND FOR 
              INITIAL IMPLEMENTATION.

    (a) Assistance for Community Feasibility Study.--(1) The Secretary 
of Defense shall provide assistance to a community selected under 
subsection (d) for expenses of a study by that community of the 
feasibility of the establishment and operation of a biennial 
international air trade show in the area of that community.
    (2) The Secretary shall provide for the community to submit to the 
Secretary a report containing the results of the study not later than 
September 30, 2005. 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 community 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 the community for the initial 
expenses of implementing such an air show in the selected community.
    (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 2005 or later fiscal years; 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.
    (d) Selection of Community.--The Secretary shall select a community 
for purposes of subsection (a) through the use of competitive 
procedures. In making such selection, the Secretary shall give 
preference to those communities that already sponsor an air show, have 
demonstrated a history of supporting air shows with local resources, 
and have a significant role in the aerospace community. The community 
shall be selected not later than March 1, 2005.

SEC. 1073. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Clarification of Definition of ``Operational Range''.--Section 
101(e)(3) of title 10, United States Code, is amended by striking 
``Secretary of Defense'' and inserting ``Secretary of a military 
department''.
    (b) Amendments Relating to Definition of Congressional Defense 
Committees.--
            (1) Chapter 169 of such title is amended as follows:
                    (A) Paragraph (4) of section 2801(c) is amended to 
                read as follows:
            ``(4) The term `congressional defense committees' includes, 
        with respect to any project to be carried out by, or for the 
        use of, an intelligence component of the Department of 
        Defense--
                    ``(A) the Permanent Select Committee on 
                Intelligence of the House of Representatives; and
                    ``(B) the Select Committee on Intelligence of the 
                Senate.''.
                    (B) The following sections are amended by striking 
                ``appropriate committees of Congress'' each place it 
                appears and inserting ``congressional defense 
                committees'': sections 2803(b), 2804(b), 2805(b)(2), 
                2806(c)(2), 2807(b), 2807(c), 2808(b), 2809(f)(1), 
                2811(d), 2812(c)(1)(A), 2813(c), 2814(a)(2)(A), 
                2814(g)(1), 2825(b)(1), 2827(b), 2828(f), 2835(g), 
                2836(f), 2837(c)(2), 2853(c)(2), 2854(b), 2854a(c)(1), 
                2865(e)(2), 2866(c)(2), 2875(e), 2881a(d)(2), 2881a(e), 
                2883(f), and 2884(a).
            (2) Section 2215 is amended--
                    (A) by striking ``(a) Certification Required.--'';
                    (B) by striking ``congressional committees 
                specified in subsection (b)'' and inserting 
                ``congressional defense committees''; and
                    (C) by striking subsection (b).
            (3) Section 2306b(g) is amended by striking ``Committee 
        on'' the first place it appears and all that follows through 
        ``House of Representatives'' and inserting ``congressional 
        defense committees''.
            (4) Section 2515(d) is amended--
                    (A) by striking ``(1)'' before ``The Secretary'';
                    (B) by striking ``congressional committees 
                specified in paragraph (2)'' and inserting 
                ``congressional defense committees''; and
                    (C) by striking paragraph (2).
            (5) Section 2676(d) is amended by striking ``appropriate 
        committees of Congress'' at the end of the first sentence and 
        inserting ``congressional defense committees''.
            (6) Section 2694a is amended by striking ``appropriate 
        committees of Congress'' in subsections (e) and (i)(1) and 
        inserting ``congressional defense committees''.
    (c) Amendments Relating to Definition of Base Closure Laws.--
            (1) Section 2694a(i) of title 10, United States Code, is 
        amended by striking paragraph (2).
            (2) Paragraph (1) of section 1333(i) of the National 
        Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
        160; 10 U.S.C. 2701 note) is amended to read as follows:
            ``(1) Base closure law.--The term `base closure law' has 
        the meaning given such term in section 101(a)(17) of title 10, 
        United States Code.''.
            (3) Subsection (b) of section 2814 of the Military 
        Construction Authorization Act for Fiscal Year 1995 (division B 
        of Public Law 103-337; 10 U.S.C. 2687 note) is amended to read 
        as follows:
    ``(b) Base Closure Law Defined.--In this section, the term `base 
closure law' has the meaning given such term in section 101(a)(17) of 
title 10, United States Code.''.
            (4) Subsection (c) of section 3341 of title 5, United 
        States Code, is amended to read as follows:
    ``(c) For purposes of this section, the term `base closure law' has 
the meaning given such term in section 101(a)(17) of title 10.''.
            (5)(A) Paragraph (1) of section 554(a) of title 40, United 
        States Code, is amended to read as follows:
            ``(1) Base closure law.--The term `base closure law' has 
        the meaning given that term in section 101(a)(17) of title 
        10.''.
            (B) Subparagraph (B) of section 572(b)(1) of title 40 is 
        amended to read as follows:
                    ``(B) Base closure law.--The term `base closure 
                law' has the meaning given that term in section 
                101(a)(17) of title 10.''.
    (d) Definition of State for Purposes of Section 2694a.--Subsection 
(i) of section 2694a of title 10, United States Code, as amended by 
subsections (b)(6) and (c)(1), is further amended--
            (1) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) The term `State' includes the District of Columbia, 
        the Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, Guam, the Virgin Islands, and 
        American Samoa.''; and
            (2) by striking paragraph (4).
    (e) Miscellaneous Amendments to 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 I of subtitle A, are amended by 
        striking ``481'' in the item relating to chapter 23 and 
        inserting ``480''.
            (2) Section 130a is amended--
                    (A) by striking ``Effective October 1, 2002, the'' 
                in subsection (a) and inserting ``The'';
                    (B) by striking ``baseline number'' in subsection 
                (a) and all that follows through ``means the'' in 
                subsection (c);
                    (C) by transferring subsection (e) so as to appear 
                before subsection (d) and redesignating that subsection 
                as subsection (b);
                    (D) by redesignating subsections (d) and (f) as 
                subsection (c) and (d), respectively; and
                    (E) by striking subsection (g).
            (3) Section 437(c) is amended by inserting ``(50 U.S.C. 
        415b)'' after ``National Security Act of 1947''.
            (4) Section 487(d) is amended by striking ``Other 
        Definitions'' and inserting ``Inapplicability to Coast Guard''.
            (5) Section 503(c)(1)(B) is amended by striking 
        ``education'' in the second sentence and inserting 
        ``educational''.
            (6) Section 632(c)(1) is amended--
                    (A) by striking ``paragraph (2)'' and inserting 
                ``paragraph (3)''; and
                    (B) by striking ``under that paragraph'' and 
                inserting ``under that subsection''.
            (7) The item relating to section 1076b in the table of 
        sections at the beginning of chapter 55 is amended to read as 
        follows:

``1076b. TRICARE program: coverage for members of the Ready Reserve.''.
            (8) Section 1108(e) is amended by striking ``heath'' and 
        inserting ``health''.
            (9) Section 1406(g) is amended--
                    (A) by striking ``section 305'' and inserting 
                ``section 245''; and
                    (B) by inserting ``(33 U.S.C. 3045)'' after ``of 
                2002''.
            (10) Sections 1448(b)(1)(F), 1448(d)(2)(B), 1448(d)(6)(A), 
        and 1458(j) are amended by striking ``on or after the date of 
        the enactment of the National Defense Authorization Act for 
        Fiscal Year 2004'' and inserting ``after November 23, 2003,''.
            (11) Sections 1463(a), 1465(c)(1)(A), 1465(c)(1)(B), 
        1465(c)(4)(A), 1465(c)(4)(B), and 1466(b)(2)(D) are amended by 
        striking ``1413, 1413a,'' and inserting ``1413a''.
            (12) Section 1557(b) is amended ``Effective October 1, 
        2002, final'' and inserting ``Final''.
            (13) Section 1566 is amended--
                    (A) in subsection (g)(2), by striking ``the date 
                that is 6 months after the date of the enactment of the 
                Help America Vote Act of 2002'' in the last sentence 
                and inserting ``April 29, 2003''; and
                    (B) in subsections (h), (i)(1), and (i)(3), by 
                striking ``Armed Forces'' and inserting ``armed 
                forces''.
            (14) Sections 1724(d) and 1732(d)(1) are amended by 
        striking ``its decision'' in the second sentence and inserting 
        ``the decision of the Secretary''.
            (15) Section 1761(b) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``provide for--'' and inserting ``provide for 
                the following:'';
                    (B) in paragraphs (1), (2), and (3), by 
                capitalizing the first letter of the first word;
                    (C) at the end of paragraphs (1) and (2), by 
                striking the semicolon and inserting a period;
                    (D) at the end of paragraph (3), by striking ``; 
                and'' and inserting a period; and
                    (E) by striking paragraph (4).
            (16) Section 2193b(c)(2) is amended by striking ``the date 
        of the enactment of this section'' and inserting ``October 5, 
        1999''.
            (17) Section 2224(c) is amended in the matter preceding 
        paragraph (1) by striking ``subtitle II of chapter 35'' and 
        inserting ``subchapter II of chapter 35''.
            (18) Section 2349(d) is amended by striking ``section 
        2350a(i)(3)'' and inserting ``section 2350a(i)(2)''.
            (19) Section 2350b(g) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``the Secretary of Defense'' after 
                ``authorizing''; and
                    (B) in paragraph (1), by striking ``the Secretary 
                of Defense''.
            (20) Section 2540(b)(2) is amended by inserting ``, as in 
        effect on that date'' before the period at the end.
            (21) Section 2662(a)(2) is amended--
                    (A) in the first sentence, by striking ``must 
                include a summarization'' and inserting ``shall include 
                a summary''; and
                    (B) in the second sentence, by inserting ``of 
                paragraph (1)'' after ``in subparagraph (E)''.
            (22) Section 2672a(a) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``in any case in which the Secretary 
                determines'' after ``in land'';
                    (B) in paragraph (1), by striking ``the Secretary 
                determines'' and inserting ``the acquisition''; and
                    (C) in paragraph (2), by inserting ``the 
                acquisition'' after ``(2)''.
            (23) Section 2701 is amended--
                    (A) in subsection (a)(2), by inserting ``(42 U.S.C. 
                9620)'' before the period at the end;
                    (B) in subsection (c)(2), by striking ``of CERCLA 
                (relating to settlements)'' and inserting ``(relating 
                to settlements) of CERCLA (42 U.S.C. 9622)'';
                    (C) in subsection (e), by inserting ``(42 U.S.C. 
                9619)'' after ``CERCLA''; and
                    (D) in subsection (j)(2), by striking ``the 
                Comprehensive'' and all the follows through ``of 1980'' 
                and inserting ``CERCLA''.
            (24) Section 2702 is amended by inserting ``(42 U.S.C. 
        9660(a)(5))'' in the second sentence of subsection (a) before 
        the period at the end.
            (25) Section 2703(b) is amended by striking ``The terms'' 
        at the beginning of the second sentence and inserting ``For 
        purposes of the preceding sentence, the terms''.
            (26) Section 2704 is amended by inserting ``(42 U.S.C. 
        9604(i))'' in subsections (c), (e), and (f) after ``CERCLA''.
            (27) The second section 3755, added by section 543(b)(1) of 
        the Bob Stump National Defense Authorization Act for Fiscal 
        Year 2003 (Public Law 107-314; 116 Stat. 2549), is redesignated 
        as section 3756, and the item relating to that section in the 
        table of sections at the beginning of chapter 357 is revised to 
        reflect such redesignation.
            (28) Section 4689 is amended by striking ``Building'' after 
        ``Capitol''.
            (29) The second section 6257, added by section 543(c)(1) of 
        the Bob Stump National Defense Authorization Act for Fiscal 
        Year 2003 (Public Law 107-314; 116 Stat. 2549), is redesignated 
        as section 6258, and the item relating to that section in the 
        table of sections at the beginning of chapter 567 is revised to 
        reflect such redesignation.
            (30) Section 7102 is amended--
                    (A) by striking ``Authority'' at the beginning of 
                subsection (a) and inserting ``Master of Military 
                Studies'';
                    (B) by striking ``Marine Corps War College'' at the 
                beginning of subsection (b) and inserting ``Master of 
                Strategic Studies'';
                    (C) by striking ``Command and Staff College of the 
                Marine Corps University'' at the beginning of 
                subsection (c) and inserting ``Master of Operational 
                Studies''; and
                    (D) by striking ``subsections (a) and (b)'' in 
                subsection (d) and inserting ``this section''.
            (31) Section 8084 is amended by striking ``capabilty'' and 
        inserting ``capability''.
            (32) The second section 8755, added by section 543(d)(1) of 
        the Bob Stump National Defense Authorization Act for Fiscal 
        Year 2003 (Public Law 107-314; 116 Stat. 2550), is redesignated 
        as section 8756, and the item relating to that section in the 
        table of sections at the beginning of chapter 857 is revised to 
        reflect such redesignation.
            (33) The table in section 12012(a) is amended by inserting 
        a colon after ``Air National Guard''.
    (f) Title 37, United States Code.--Section 323(h) of title 37, 
United States Code, is amended by striking ``Secretary of 
Transportation'' and inserting ``Secretary of Homeland Security''.
    (g) Public Law 108-136.--Effective as of November 24, 2003, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108-136) is amended as follows:
            (1) Sections 832(a) and 834(a) (117 Stat. 1550) are each 
        amended by striking ``such title'' and inserting ``title 10, 
        United States Code,''
            (2) Section 931(a)(1) (117 Stat. 1580) is amended by 
        striking ``and donations'' in the first quoted matter and 
        inserting ``or donations''.
            (3) Section 2204(b) (117 Stat. 1706) is amended by striking 
        ``section 2101(a)'' each place it appears and inserting 
        ``section 2201(a)''.
    (h) Public Law 107-314.--Effective as of December 2, 2002, and as 
if included therein as enacted, section 1064(a)(2) of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public Law 
107-314; 116 Stat. 2654) is amended by inserting ``the item relating 
to'' after ``is amended by inserting after''.
    (i) Public Law 101-510.--Section 2902(e)(2)(B) 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--
            (1) in clause (i), by striking ``Subcommittee on Readiness, 
        Sustainability, and Support'' and inserting ``Subcommittee on 
        Readiness and Management Support''; and
            (2) in clause (ii), by striking ``Subcommittee on Military 
        Installations and Facilities'' and inserting ``Subcommittee on 
        Readiness''.
    (j) National Security Act of 1947.--Sections 702(a)(6)(B)(iv)(I), 
703(a)(6)(B)(iv)(I), and 704(f)(2)(D)(i) of the National Security Act 
of 1947 are amended by striking ``responsible records'' and inserting 
``responsive records''.
    (k) Codification Relating to Leave for Attendance at Certain 
Hearings.--Subsection (b) of section 363 of the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (10 U.S.C. 704 note) 
is--
            (1) transferred to section 704 of title 10, United States 
        Code;
            (2) inserted at the end of that section;
            (3) redesignated as subsection (c); and
            (4) amended--
                    (A) by striking ``Armed Forces'' each place it 
                appears and inserting ``armed forces'';
                    (B) in paragraph (1)--
                            (i) by striking ``Secretary of each'' and 
                        all that follows through ``in the Navy,'' and 
                        inserting ``Secretary concerned''; and
                            (ii) by striking ``(as defined in section 
                        101 of title 10, United States Code)''; and
                    (C) in paragraph (3)--
                            (i) by striking ``For purposes of this 
                        subsection--'' and inserting ``In this 
                        subsection:'';
                            (ii) in subparagraph (A), by striking 
                        ``title 10, United States Code'' and inserting 
                        ``this title''; and
                            (iii) in subparagraph (B), by striking 
                        ``such term'' and inserting ``that term''.

SEC. 1074. COMMISSION ON THE LONG-TERM IMPLEMENTATION OF THE NEW 
              STRATEGIC POSTURE OF THE UNITED STATES.

    (a) Establishment of Commission.--
            (1) Establishment.--There is hereby established a 
        commission to be known as the ``Commission on the Long-Term 
        Implementation of the New Strategic Posture of the United 
        States''. The Secretary of Defense shall enter into a contract 
        with a federally funded research and development center to 
        provide for the organization, management, and support of the 
        Commission. Such contract shall be entered into in consultation 
        with the Secretary of Energy.
            (2) Composition.--(A) The Commission shall be composed of 
        12 members who shall be 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 Long-Term Implementation of the Nuclear 
        Posture Review.--The Commission shall examine long-term 
        programmatic requirements to achieve the goals set forth in the 
        report of the Secretary of Defense submitted to Congress on 
        December 31, 2001, providing the results of the Nuclear Posture 
        Review conducted pursuant to section 1041 of the Floyd D. 
        Spence National Defense Authorization Act for Fiscal Year 2001 
        (as enacted into law by Public Law 106-398; 114 Stat. 1654, 
        1654A-262) and results of periodic assessments of the Nuclear 
        Posture Review. Matters examined by the Commission shall 
        include the following:
                    (A) The process of establishing requirements for 
                strategic forces and how that process accommodates 
                employment of nonnuclear strike platforms and munitions 
                in a strategic role.
                    (B) How strategic intelligence, reconnaissance, and 
                surveillance requirements differ from nuclear 
                intelligence, reconnaissance, and surveillance 
                requirements.
                    (C) The ability of a limited number of strategic 
                platforms to carry out a growing range of nonnuclear 
                strategic strike missions.
                    (D) The limits of tactical systems to perform 
                nonnuclear global strategic missions in a prompt 
                manner.
                    (E) An assessment of the ability of the current 
                nuclear stockpile to address the evolving strategic 
                threat environment through 2025.
            (2) Recommendations.--The Commission shall include in its 
        report recommendations with respect to the following:
                    (A) Changes to the requirements process to employ 
                nonnuclear strike platforms and munitions in a 
                strategic role.
                    (B) Changes to the nuclear stockpile and 
                infrastructure required to preserve a nuclear 
                capability commensurate with the changes to the 
                strategic threat environment through 2025.
                    (C) Actions the Secretary of Defense and the 
                Secretary of Energy can take to preserve flexibility of 
                the defense nuclear comples while reducing the cost of 
                a Cold War strategic infrastructure.
                    (D) Identify shortfalls in the strategic 
                modernization programs of the United States that would 
                undermine the ability of the United States to develop 
                new nonnuclear strategic strike capabilities.
            (3) 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.
    (c) Reports.--
            (1) Commission report.--The Commission shall submit to the 
        Secretary of Defense and the Committees on Armed Services of 
        the Senate and House of Representatives a report on the 
        Commission's findings and conclusions. Such report shall be 
        submitted not later that 28 months after the date of the first 
        meeting of the Commission.
            (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 with which a contract is entered into under 
        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, 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 
        that 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. 1075. LIABILITY PROTECTION FOR CERTAIN DEPARTMENT OF DEFENSE 
              VOLUNTEERS WORKING IN THE MARITIME ENVIRONMENT.

    (a) Authority to Accept Certain Volunteer Services.--Subsection (a) 
of section 1588 of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
            ``(8) Voluntary services provided to the United States 
        Military Academy, United States Naval Academy, and United 
        States Air Force Academy for the training of cadets and 
        midshipmen.''.
    (b) Liability Protection for Volunteers in Maritime Environment.--
Subparagraph (D) of subsection (d)(1) of such section is amended--
            (1) by striking ``and'' after ``this title'' and inserting 
        a comma; and
            (2) by inserting before the period at the end the 
        following: ``, and chapters 20 and 22 of title 46 (relating to 
        claims for damages or loss on navigable waters)''.

SEC. 1076. TRANSFER OF HISTORIC F3A-1 BREWSTER CORSAIR AIRCRAFT.

    (a) Authority to Convey.--The Secretary of the Navy may convey, 
without consideration, to Lex Cralley, of Princeton Minnesota (in this 
section referred to as ``transferee''), all right, title and interest 
of the United States in and to a F3A-1 Brewster Corsair aircraft 
(Bureau Number 04634). The conveyance shall be made by means of a deed 
of gift.
    (b) Condition of Aircraft.--The aircraft shall be conveyed under 
subsection (a) in its current unflyable, ``as is'' condition. The 
Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Conveyance at No Cost to the United States.--The conveyance of 
the aircraft under subsection (a) shall be made at no cost to the 
United States. Any costs associated with the conveyance and costs of 
operation and maintenance of the aircraft conveyed shall be borne by 
the transferee.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

SEC. 1101. PAYMENT OF FEDERAL EMPLOYEE HEALTH BENEFIT PREMIUMS FOR 
              MOBILIZED FEDERAL EMPLOYEES.

    (a) Authority to Continue Benefit Coverage.--Section 8905a of title 
5, United States Code is amended--
            (1) in subsection (a), by striking ``paragraph (1) or (2) 
        of'';
            (2) in subsection (b)--
                    (A) in paragraph (1)(B), by striking ``and'' at the 
                end;
                    (B) in paragraph (2)(C), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) any employee who--
                    ``(A) is enrolled in a health benefits plan under 
                this chapter;
                    ``(B) is a member of a Reserve component of the 
                armed forces;
                    ``(C) is called or ordered to active duty in 
                support of a contingency operation (as defined in 
                section 101(a)(13) of title 10);
                    ``(D) is placed on leave without pay or separated 
                from service to perform active duty; and
                    ``(E) serves on active duty for a period of more 
                than 30 consecutive days.''; and
            (4) in subsection (e)(1)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) in the case of an employee described in 
                subsection (b)(3), the date which is 24 months after 
                the employee is placed on leave without pay or 
                separated from service to perform active duty.''.
    (b) Authority for Agencies To Pay Premiums.--Subparagraph (C) of 
section 8906(e)(3) of such title is amended by striking ``18 months'' 
and inserting ``24 months''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to Federal employees called or ordered to active 
duty on or after September 14, 2001.

SEC. 1102. FOREIGN LANGUAGE PROFICIENCY PAY.

    Section 1596a of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``during a 
        contingency operation supported by the armed forces''; and
            (2) in subsection (c), by inserting before the period at 
        the end the following: ``and shall not be considered base pay 
        for any purpose''.

SEC. 1103. PAY PARITY FOR CIVILIAN INTELLIGENCE PERSONNEL.

    Section 1602 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``in relation to the 
        rates of pay provided in subpart D of part III of title 5 for 
        positions subject to that subpart which have corresponding 
        levels of duties and responsibilities'' and inserting ``in 
        relation to the rates of pay provided for Department of Defense 
        Senior Executive, Senior Level, and other comparable 
        positions''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Performance Appraisal System.--The positions referred to in 
subsection (a) shall be subject to a performance appraisal system 
which, as designed and applied, is certified by the Secretary of 
Defense as making meaningful distinctions based on relative performance 
and may be the same performance appraisal system established and 
implemented within the Department for members of the Senior Executive 
Service.''.

SEC. 1104. PAY PARITY FOR SENIOR EXECUTIVES IN NONAPPROPRIATED FUND 
              INSTRUMENTALITIES.

    (a) In General.--Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1599e. Senior executive compensation for nonappropriated fund 
              instrumentalities
    ``Notwithstanding any provisions of title 5, the Secretary of 
Defense may regulate the amount of total compensation, including the 
rate of basic pay, of senior executives employed by Department of 
Defense nonappropriated fund instrumentalities, to provide for parity 
with the total compensation, including basic pay, of Department of 
Defense employees in the Senior Executive Service and other similar 
senior executive positions.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1599d the following new item:

``1599e. Senior executive compensation for nonappropriated fund 
                            instrumentalities.''.

SEC. 1105. PROHIBITION OF UNAUTHORIZED WEARING OR USE OF CIVILIAN 
              MEDALS OR DECORATIONS.

    Chapter 57 of title 10, United States Code, is amended by adding at 
the end the following new section:
``Sec. 1134. Civilian medals or decorations of the Department of 
              Defense
    ``(a) Prohibition.--Except with the written permission of the 
Secretary of Defense or when authorized by regulations, no person may 
knowingly--
            ``(1) wear; or
            ``(2) use, in connection with any merchandise, retail 
        product, impersonation, solicitation, or commercial activity;
medals, decorations, or other insignia awarded by the Secretary of 
Defense to recognize Department of Defense civilian employees and other 
individuals who render service to the Department of Defense.
    ``(b) Authority To Enjoin Violations.--Whenever it appears to the 
Attorney General that any person is engaged or is about to engage in an 
act or practice which constitutes or will constitute conduct prohibited 
by subsection (a), the Attorney General may initiate a civil proceeding 
in a district court of the United States to enjoin such act or 
practice. Such court shall proceed as soon as practicable to the 
hearing and determination of such action and may, at any time before 
final determination, enter such restraining orders or prohibitions, or 
take such other actions as is warranted, including imposing a civil 
penalty not to exceed $25,000 for each violation, to prevent injury to 
the United States or to any person or class of persons for whose 
protection the action is brought.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1134. Civilian medals or decorations of the Department of Defense.''

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

 Subtitle A--Matters Relating to Iraq, Afghanistan, and Global War on 
                               Terrorism

SEC. 1201. DOCUMENTATION OF CONDITIONS IN IRAQ UNDER FORMER DICTATORIAL 
              GOVERNMENT AS PART OF TRANSITION TO POST-DICTATORIAL 
              GOVERNMENT.

    (a) Findings.--The Congress makes the following findings:
            (1) The regime of Saddam Hussein in Iraq was a dictatorial 
        regime prone to secrecy in the maintenance of its hold on 
        power.
            (2) The people of Iraq all suffered as a result of Saddam 
        Hussein's dictatorial control.
            (3) Efforts in other post-dictatorial states to document 
        the crimes and abuses of their predecessor dictatorial 
        governments have contributed to the process of national 
        reconciliation and have served as a reminder about the 
        importance of protecting individual rights.
    (b) Transfer of Certain Documents and Records.--The Secretary of 
Defense shall, to the extent practicable, establish a process for 
expeditiously transferring to indigenous Iraqi entities committed to 
documenting publicly the nature of the Saddam Hussein regime any 
documents and records described in subsection (c) that are obtained by 
United States military forces in Iraq.
    (c) Covered Documents and Records.--The documents and records 
referred to in subsection (b) are documents and records--
            (1) that were created by--
                    (A) the Government of Iraq between 1968 and May 1, 
                2003; or
                    (B) the Ba'ath Socialist Party in Iraq after 1968; 
                and
            (2) that provide insight into--
                    (A) the functioning of the Government of Iraq or 
                the Ba'ath Socialist Party in Iraq; or
                    (B) the crimes, atrocities, and brutal practices of 
                the Iraqi government towards the people of Iraq during 
                the period between 1968 and May 1, 2003.

SEC. 1202. SUPPORT OF MILITARY OPERATIONS TO COMBAT TERRORISM.

    (a) Authority.--The Secretary of Defense may expend up to 
$25,000,000 during any fiscal year during which this subsection is in 
effect to provide support to foreign forces, irregular forces, groups, 
or individuals engaged in supporting or facilitating ongoing military 
operations by United States special operations forces to combat 
terrorism.
    (b) Intelligence Activities.--This section does not constitute 
authority to conduct a covert action, as such term is defined in 
section 503(e) of the National Security Act of 1947 (50 U.S.C. 
413b(e)).
    (c) Annual Report.--Not later than 30 days after the close of each 
fiscal year during which subsection (a) is in effect, the Secretary of 
Defense shall submit to the congressional defense committees a report 
on support provided under this section during that fiscal year. Each 
such report shall describe the support provided, including a statement 
of the recipient of the support and the amount obligated to provide the 
support.
    (d) Fiscal Year 2005 Limitation.--Support may be provided under 
subsection (a) during fiscal year 2005 only from funds made available 
for operations and maintenance pursuant to title XV of this Act.
    (e) Period of Authority.--The authority under subsection (a) is in 
effect during each of fiscal years 2005 through 2007.

SEC. 1203. COMMANDERS' EMERGENCY RESPONSE PROGRAM.

    (a) Fiscal Year 2005 Authority.--During fiscal year 2005, from 
funds made available to the Department of Defense for operation and 
maintenance pursuant to title XV of this Act, not to exceed 
$300,000,000 may be used, notwithstanding any other provision of law, 
to provide funds for the Commanders' Emergency Response Program, 
established by the Administrator of the Coalition Provisional Authority 
for the purpose of enabling military commanders in Iraq to respond to 
urgent humanitarian relief and reconstruction requirements within their 
areas of responsibility by carrying out programs that will immediately 
assist the Iraqi people, and to provide funds for a similar program to 
assist the people of Afghanistan.
    (b) Quarterly Reports.--The Secretary of Defense shall submit to 
the congressional defense committees a quarterly report, beginning on 
January 15, 2005, regarding the source of funds and the allocation and 
use of funds made available pursuant to the authorityprovided in this 
section.

SEC. 1204. STATUS OF IRAQI SECURITY FORCES.

    (a) Strategic Plan.--No later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Representatives 
a strategic plan setting forth the manner in which the United States 
will achieve the goal of establishing viable and professional Iraqi 
security forces able to provide for the long-term security of the Iraqi 
people.
    (b) Components.--The strategic plan established under subsection 
(a) shall include at least the following:
            (1) Recruiting and retention goals, shown for each service 
        of the Iraqi security forces.
            (2) Training plans for each service of the Iraqi security 
        forces.
            (3) A description of metrics by which progress toward the 
        goal of Iraqi provision for its own security can be measured.
            (4) A description of equipment needs, shown for each 
        service of the Iraqi security forces.
            (5) A resourcing plan for achieving the goals of the 
        strategic plan.
            (6) Personnel plans in terms of United States military and 
        contractor personnel to be used in training each such service.
            (7) A description of challenges faced and opportunities 
        presented in particular regions of Iraq and a plan for 
        addressing those challenges.
            (8) A discussion of training and deployment successes and 
        failures to the date of the report and how lessons from those 
        successes and failures will be incorporated into the strategic 
        plan.
    (c) Subsequent Reports.--Ninety days following the submission of 
the strategic plan to Congress under subsection (a) and every 90 days 
thereafter, the Secretary shall submit to the Committees on Armed 
Services of the Senate and House of Representatives a report on 
progress toward meeting the goals established in the strategic plan. 
Each such report shall address the following:
            (1) The number of forces recruited, currently serving, and 
        that have left (along with a break-down of the reasons for 
        leaving) by service over the period in question.
            (2) Progress in meeting training goals.
            (3) Progress in achieving other metrics as identified in 
        the strategic plan.
            (4) A description and analysis of any training incidents 
        and deployment successes and failures, with a discussion of how 
        those incidents and successes will affect future efforts to 
        achieve the goals of the strategic plan.
    (d) Iraqi Security Forces Defined.--In this section, the term 
``Iraqi security forces'' means the Iraqi Armed Forces (IAF), the Iraqi 
Civil Defense Corps (ICDC), the Iraqi Police Service (IPS), the 
Department of Border Enforcement (DBE), and the Facilities Protection 
Services (FCS).

SEC. 1205. GUIDANCE AND REPORT REQUIRED ON CONTRACTORS SUPPORTING 
              DEPLOYED FORCES IN IRAQ.

    (a) Guidance.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall issue guidance on 
how to manage contractors that support deployed forces and shall direct 
the Secretaries of the military departments to develop procedures to 
ensure implementation of the guidance. The guidance shall--
            (1) establish policies for the use of contractors to 
        support deployed forces;
            (2) delineate the roles and responsibilities of commanders 
        regarding the management and oversight of contractors that 
        support deployed forces; and
            (3) integrate into a single document other guidance and 
        doctrine that may affect Department of Defense responsibilities 
        to contractors in locations where members of the Armed Forces 
        are deployed.
    (b) Report.--Not later than 30 days after issuing the guidance 
required under subsection (a), the Secretary of Defense shall submit to 
the Committees on Armed Services of the House of Representatives and 
the Senate a report containing a discussion of the following:
            (1) A description of the process used by the Department of 
        Defense for deciding which security functions in Iraq will be 
        performed by military personnel and which by private security 
        companies.
            (2) A discussion of the overall chain of command and 
        oversight mechanisms that are in place to ensure adequate 
        command and supervision of contractor personnel in critical 
        security roles.
            (3) An explanation of the rules of engagement for private 
        security personnel throughout Iraq, along with how training in 
        these rules of engagement is being carried out.
            (4) A description of mechanisms that exist or that are 
        under consideration to share intelligence and standardize 
        communications procedures among private security companies.
            (5) Casualty and fatality figures for each contractor in 
        Iraq supporting deployed forces over the period beginning on 
        May 1, 2003, and ending on the date of the issuance of the 
        guidance.
            (6) Disciplinary or criminal actions brought against such 
        contractors during the period covered by the report.
            (7) Any incidents of note in Iraq regarding such 
        contractors during the period covered by the report.
            (8) A plan for establishing and implementing a process for 
        collecting data on individual contractors, the value of the 
        contracts, and the number of personnel in Iraq performing the 
        following services:
                    (A) Personal security details.
                    (B) Non-military site security.
                    (C) Non-military convoy security.
                    (D) Interrogation services at interrogation centers 
                operated by the Department of Defense.

SEC. 1206. FINDINGS AND SENSE OF CONGRESS CONCERNING ARMY SPECIALIST 
              JOSEPH DARBY.

    (a) Findings.--Congress makes the following findings:
            (1) The need to act in accord with one's conscience, 
        risking one's career and even the esteem of one's colleagues by 
        pursuing what is right is especially important today.
            (2) While the Department of Defense investigate the 
        horrific abuses in American detention facilities in Iraq, the 
        Nation should bear in mind that the abuses were only brought to 
        light because of the courage of an American soldier.
            (3) By alerting his superiors to abuses at Abu Ghraib 
        prison in Iraq, Army Specialist Joseph Darby demonstrated the 
        courage to speak out and do what is right for his country.
            (4) Such an action is especially important in light of the 
        many challenges facing the country.
            (5) Specialist Darby deserves the Nation's thanks for 
        speaking up and for standing up for what is right.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Secretary of Defense should make every protection 
        available to Army Specialist Joseph Darby and others who 
        demonstrate such courage; and
            (2) Specialist Darby should be commended appropriately by 
        the Secretary of the Army.

                       Subtitle B--Other Matters

SEC. 1211. ASSIGNMENT OF ALLIED NAVAL PERSONNEL TO SUBMARINE SAFETY 
              PROGRAMS.

    (a) In General.--Chapter 631 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 7234. Submarine safety programs: participation of allied naval 
              personnel
    ``(a) Acceptance of Assignment of Foreign Naval Personnel.--In 
order to facilitate the development, standardization, and 
interoperability of submarine vessel safety and rescue systems and 
procedures, the Secretary of the Navy may conduct a program under which 
members of the naval service of any of the member nations of the North 
Atlantic Treaty Organization and Australia, Japan, the Republic of 
Korea, and Sweden may be assigned to United States commands to work on 
such systems and procedures.
    ``(b) Costs for Foreign Personnel.--(1) The United States may not 
pay the following costs for a member of a foreign naval service sent to 
the United States under the program authorized by this section:
            ``(A) Salary.
            ``(B) Per diem.
            ``(C) Cost of living.
            ``(D) Travel costs.
            ``(E) Cost of language or other training.
            ``(F) Other costs.
    ``(2) Paragraph (1) does not apply to the following costs, which 
may be paid by the United States:
            ``(A) The cost of temporary duty directed by the United 
        States Navy.
            ``(B) The cost of training programs conducted to 
        familiarize, orient, or certify members of foreign naval 
        services regarding unique aspects of their assignments.
            ``(C) Costs incident to the use of the facilities of the 
        United States Navy in the performance of assigned duties.
    ``(d) Applicability to Authority to Enter Into Agreements.--The 
requirements of this section shall apply in the exercise of any 
authority of the Secretary of the Navy to enter into an agreement with 
the government of a foreign country, subject to the concurrence of the 
Secretary of State, to provide for the assignment of members of the 
naval service of the foreign country to a United States Navy submarine 
safety program.
    ``(e) Regulations.--The Secretary of the Navy may prescribe 
regulations for the application of this section in the exercise of 
authority referred to in subsection (d).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7234. Submarine safety programs: participation of allied naval 
                            personnel.''.

SEC. 1212. EXPANSION OF ENTITIES OF THE PEOPLE'S REPUBLIC OF CHINA 
              SUBJECT TO CERTAIN PRESIDENTIAL AUTHORITIES WHEN 
              OPERATING IN THE UNITED STATES.

    Section 1237(b)(4)(B)(i) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note) is amended 
by inserting after ``the People's Liberation Army'' the following: ``, 
by a ministry of the government of the People's Republic of China, or 
by an entity affiliated with the defense industrial base of the 
People's Republic of China''.

SEC. 1213. REPORT BY PRESIDENT ON GLOBAL PEACE OPERATIONS INITIATIVE.

    Not later than one year after the date of the enactment of this 
Act, the President shall submit to the Congress a report on the Global 
Peace Operations Initiative. The report shall include the following 
elements:
            (1) A summary of the goals of the Global Peace Operations 
        Initiative and the timetable for achieving those goals.
            (2) An examination of the mechanisms by which the United 
        States will ensure that foreign countries acquiring new 
        capabilities as a result of that Initiative will use those 
        capabilities to the national security benefit of the United 
        States.
            (3) An examination of the mechanisms by which the United 
        States will ensure that training and equipment provided under 
        that Initiative are used solely for the purposes of 
        peacekeeping and peace enforcement operations.
            (4) An examination of the human rights practices of 
        potential recipients under that Initiative, to include a 
        discussion of each potential recipient's commitment to 
        representative government.
            (5) As assessment of the financial resources required to 
        carry out that Initiative during fiscal years 2005 through 
        2009.
            (6) An assessment of the effectiveness of the program of 
        the Department of State referred to as the African Contingency 
        Operations and Training Assistance program and the capacity of 
        that program to be expanded.
            (7) A review that compares and contrasts the basic military 
        skills required of warfighters and the skills needed for 
        peacekeeping and peace enforcement operations.
            (8) An assessment of the ability of military forces in the 
        developing world to absorb, retain, and use the advanced skills 
        and capabilities needed for effective peacekeeping and peace 
        enforcement operations.
            (9) A proposal for providing sufficient resources to the 
        Department of State to conduct the Global Peace Operations 
        Initiative without significant financial contributions from the 
        Department of Defense.
            (10) An explanation of the reasons of the Administration 
        for proposing to exempt the Global Peace Operations Initiative 
        from existing law related to the type of military and police 
        training the United States may provide to foreign countries.
            (11) An examination of the costs and benefits of 
        transferring responsibility for the training and equipping of 
        foreign military and security forces from the Department of 
        State to the Department of Defense, including an identification 
        of any increased resources that will be provided to the 
        Department of Defense should the Department of Defense become 
        responsible for that activity.

SEC. 1214. PROCUREMENT SANCTIONS AGAINST FOREIGN PERSONS THAT TRANSFER 
              CERTAIN DEFENSE ARTICLES AND SERVICES TO THE PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) Declaration of Policy.--Congress declares that it is the policy 
of the United States to deny the People's Republic of China such 
defense goods and defense technology that could be used to threaten the 
United States or undermine the security of Taiwan or the stability of 
the Western Pacific region.
    (b) Procurement Sanction.--(1) The Secretary of Defense may not 
procure, by contract or otherwise, any goods or services from--
            (A) any foreign person the Secretary of Defense determines 
        has, with actual knowledge, on or after the date of the 
        enactment of this Act, exported, transferred, or otherwise 
        provided to governmental or nongovernmental entities of the 
        People's Republic of China any item or class of items on the 
        United States Munitions List (or any item or class of items 
        that are identical, substantially identical, or directly 
        competitive to an item or class of items on the United States 
        Munitions List); and
            (B) any foreign person the Secretary of Defense 
        determines--
                    (i) is a successor entity to a person referred to 
                in paragraph (1);
                    (ii) is a parent or subsidiary of a person referred 
                to in paragraph (1); or
                    (iii) is an affiliate of a person referred to in 
                paragraph (1) if that affiliate is controlled in fact 
                by such person.
    (2) The prohibition under paragraph (1) with respect to a foreign 
person shall last for a period of five years after a determination is 
made by the Secretary of Defense with respect to that person under 
paragraph (1)(A).
    (c) Public Availability of List of Sanctioned Persons.--(1) The 
Secretary of Defense shall annually publish in the Federal Register a 
current list of any foreign persons sanctioned under subsection (b). 
The removal of foreign persons from, and the addition of foreign 
persons to, the list shall also be so published.
    (2) The Secretary shall maintain the list published under paragraph 
(1) on the Internet website of the Department of Defense.
    (d) Removal From List of Sanctioned Persons.--The Secretary of 
Defense may remove a person from the list of sanctioned persons 
referred to in subsection (c) only after the five-year prohibition 
period imposed under subsection (b) with respect to the person has 
expired.
    (e) Exceptions.--(1) Subsection (b) shall not apply--
            (A) to contracts, or subcontracts under such contracts, in 
        existence on the date of the enactment of this Act, including 
        options under such contracts;
            (B) if the Secretary of Defense determines in writing that 
        the person to which the sanctions would otherwise be applied is 
        a sole source supplier of the goods or services being procured, 
        that the goods or services are essential, and that alternative 
        sources are not readily or reasonably available;
            (C) in the case of a contract for routine servicing and 
        maintenance, if the Secretary of Defense determines in writing 
        alternative sources for performing the contract are not readily 
        or reasonably available; or
            (D) if the Secretary of Defense determines in writing that 
        goods or services proposed to be procured under the contract 
        are essential to the national security of the United States.
    (2) Determinations under paragraph (1) shall be published in the 
Federal Register.
    (f) Definitions.--In this section:
            (1) The term ``foreign person'' has the meaning given the 
        term in section 14 of the Iran and Libya Sanctions Act of 1996 
        (50 U.S.C. 1701).
            (2) The term ``United States Munitions List'' means the 
        list referred to in section 38(a)(1) of the Arms Export Control 
        Act (22 U.S.C. 2778(a)(1)).

  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 2005 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2005 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 amount authorized to be 
appropriated to the Department of Defense for fiscal year 2005 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, 
        $58,522,000.
            (2) For nuclear weapons transportation security in Russia, 
        $26,284,000.
            (3) For nuclear weapons storage security in Russia, 
        $48,720,000.
            (4) For activities designated as Other Assessments/
        Administrative Support, $14,267,000.
            (5) For defense and military contacts, $8,000,000.
            (6) For chemical weapons destruction in Russia, 
        $158,400,000.
            (7) For biological weapons proliferation prevention in the 
        former Soviet Union, $55,013,000.
            (8) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $40,030,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2005 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (8) 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 2005 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 2005 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. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING FOR 
              CHEMICAL WEAPONS DESTRUCTION FACILITY IN RUSSIA.

    (a) Temporary Authority.--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 if the President submits to Congress a 
written certification that includes--
            (1) a statement as to why a waiver of the conditions 
        described in such section 1305 is important to the national 
        security interests of the United States;
            (2) a full and complete justification for the waiver of the 
        conditions; and
            (3) a plan to promote a full and accurate disclosure by 
        Russia regarding the size, content, status, and location of its 
        chemical weapons stockpile.
    (b) Expiration.--The authority in subsection (a) shall expire on 
September 30, 2005.

      TITLE XIV--EXPORT CONTROLS AND COUNTERPROLIFERATION MATTERS

                   Subtitle A--Export Control Matters

SEC. 1401. DEFINITIONS UNDER ARMS EXPORT CONTROL ACT.

    Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is 
amended--
            (1) in paragraph (10)--
                    (A) by moving the margin two ems to the left; and
                    (B) by striking ``and'' at the end;
            (2) in paragraph (11)--
                    (A) by moving the margin two ems to the left; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (3) by adding at the end the following:
    ``(12) `license' means a document bearing the word license issued 
by the United States Government agency charged with implementing 
section 38 of this Act, which permits the export or import of a defense 
article or defense service;
    ``(13) `agent' means a representative or emissary of a government 
other than an officer or employee of the government; and
    ``(14) `exporting agent' means a freight forwarder or other 
consignee designated on a license application who is authorized to act 
on behalf of and the control of the license applicant.''.

SEC. 1402. EXEMPTION FROM LICENSING REQUIREMENTS FOR EXPORT OF 
              SIGNIFICANT MILITARY EQUIPMENT.

    Section 38(b)(2) of the Arms Export Control Act (22 U.S.C. 
2778(b)(2)) is amended--
            (1) by striking ``(2) Except'' and inserting ``(2)(A) 
        Except'';
            (2) by striking ``(A) for official'' and inserting ``(i) 
        for official'' and further by striking ``(B) for carrying out'' 
        and inserting ``(ii) for carrying out''; and
            (3) by adding at the end the following:
    ``(B) The President may not establish an exemption in regulation or 
otherwise from the license requirements of this section for the export 
of a defense article that is significant military equipment (other than 
a firearm that is intended for personal use).''.

SEC. 1403. COOPERATIVE PROJECTS WITH FRIENDLY FOREIGN COUNTRIES.

    Section 27 of the Arms Export Control Act (22 U.S.C. 2767) is 
amended--
            (1) in subsection (g) to read as follows:
    ``(g) Unless the President states in his certification that an 
emergency exists which requires the immediate approval of the 
cooperative agreement in the national security interests of the United 
States (in which case the President shall set forth in the 
certification a justification for this determination), an agreement 
shall not be signed if, within the 30-day period specified in 
subsection (f), a joint resolution prohibiting the agreement is enacted 
into law.''; and
            (2) by adding at the end the following:
    ``(k) A license shall be required for the export of defense 
articles or defense services relating to a cooperative project by any 
person required to be registered under section 38(b)(1)(A)(i) whenever 
such export is made pursuant to, or in furtherance of, a private 
contract, purchase order, or similar commercial arrangement with a 
foreign corporation.''.

SEC. 1404. LICENSING REQUIREMENT FOR EXPORT OF MILITARILY CRITICAL 
              TECHNOLOGIES.

    (a) Licensing Requirement.--The President shall require a license 
under the Export Administration Regulations of the Department of 
Commerce (15 C.F.R. part 730 et seq.) or the International Traffic in 
Arms Regulations (22 C.F.R. part 120 et seq.), as the case may be, for 
the export of goods or technologies included on the Militarily Critical 
Technologies List.
    (b) Definition.--In this section, the term ``Militarily Critical 
Technologies List'' means the list required to be developed by the 
Secretary of Defense pursuant to section 5(d)(2) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2404(d)(2)), as such list 
was effect on January 20, 2004, and includes any goods or technologies 
that have been added to the list after that date.

SEC. 1405. CONTROL OF EXPORTS OF UNITED STATES WEAPONS TECHNOLOGY TO 
              THE PEOPLE'S REPUBLIC OF CHINA.

    A dual use good or technology subject to the jurisdiction of the 
Export Administration Regulations of the Department of Commerce (15 
C.F.R. part 730 et seq.) and a defense article or defense service 
subject to the jurisdiction of the International Traffic in Arms 
Regulations (22 C.F.R. part 120 et seq.) may be exported to a foreign 
person or a foreign country that has previously exported any such item 
to the military, intelligence, police, or internal security services of 
the Government of the People's Republic of China that would be 
prohibited for export to China if subject to United States export 
control laws only if--
            (1) a license for such export is approved under the Export 
        Administration Regulations or the International Traffic in Arms 
        Regulations and the Secretary of Defense concurs in the 
        approval of such license; and
            (2) the foreign person or foreign country agrees in writing 
        not to transfer title to or possession of, or otherwise provide 
        access to, the licensed items, unless the President provides 
        written consent thereto.

SEC. 1406. STRENGTHENING INTERNATIONAL EXPORT CONTROLS.

    (a) Finding.--The Congress recognizes that the international export 
control system, as currently constituted, is insufficient to achieve 
the national security interests of the United States.
    (b) National Export Control Policy.--It is the policy of the United 
States to seek continued negotiations of a strengthened international 
export control system for the control of arms and militarily-sensitive 
goods and technology to countries of concern.
    (c) Presidential Reporting Requirement.--(1) Not later than 180 
days after the date of the enactment of this Act, and every six months 
thereafter, the President shall submit to the committees referred to in 
subsection (d) a report setting forth the President's plan for 
effecting a strengthened international export control system capable of 
achieving the national security interests of the United States.
    (2) The report shall include--
            (A) an evaluation of the effectiveness of the current 
        international export control system;
            (B) a plan for negotiating and implementing a strengthened 
        international export control system capable of achieving the 
        national security interests of the United States; and
            (C) challenges to and progress in negotiating and 
        implementing that plan.
    (d) Committees; Classification of Report.--(1) The report required 
by subsection (c) shall be submitted to--
            (A) the Committee on Armed Services, the Committee on 
        International Relations, and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and
            (B) the Committee on Armed Services, the Committee on 
        Banking, Housing and Urban Affairs, and the Select Committee on 
        Intelligence of the Senate.
    (2) The report shall be submitted in unclassified form and, as 
necessary, in classified form.

                Subtitle B--Counterproliferation Matters

SEC. 1411. DEFENSE INTERNATIONAL COUNTERPROLIFERATION PROGRAMS.

    (a) International Security Program to Prevent Unauthorized Transfer 
and Transportation of WMDs.--Subsection (b) of section 1424 of the 
Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
2333) is amended to read as follows:
    ``(b) Other Countries.--The Secretary of Defense may carry out 
programs under subsection (a) in a country other than a country 
specified in that subsection if the Secretary determines that there 
exists in that country a significant threat of the unauthorized 
transfer and transportation of nuclear, biological, or chemical weapons 
or related materials.''.
    (b) International Training Program to Deter WMD Proliferation.--
Section 1504(e)(3)(A) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2918) is amended--
            (1) by striking ``The training program referred to in 
        paragraph (1)(B) is a'' and inserting `The Secretary of Defense 
        may participate in a'';
            (2) by inserting ``of'' after ``acquisition'';
            (3) by striking ``and'' after ``countries''; and
            (4) by inserting before the period at the end the 
        following: ``, and in other countries in which, as determined 
        by the Secretary of Defense, there exists a significant threat 
        of such proliferation and acquisition''.

SEC. 1412. DEFENSE COUNTERPROLIFERATION FELLOWSHIP PROGRAM.

    (a) Program Authorized.--Chapter 101 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2015. Defense counterproliferation fellowship program
    ``(a) Program Authority.--The Secretary of Defense may carry out a 
program under which foreign military defense personnel are selected to 
attend Department of Defense courses and programs in 
counterproliferation and nonproliferation matters in order to improve 
the ability of the foreign military defense personnel to contribute to 
halting the illicit acquisition or transportation of weapons of mass 
destruction or of materials that support the development or use of such 
weapons.
    ``(b) Authority to Pay for Costs of Participants.--The Secretary of 
Defense may pay for all costs (including transportation, travel, and 
subsistence costs) associated with the attendance by a participant at 
courses and programs in the program under this section.
    ``(c) Participants.--(1) The following persons may be selected for 
participation in the program under this section:
            ``(A) Foreign military officers.
            ``(B) Foreign ministry of defense officials.
    ``(2) Participants in the program shall be selected by the 
Secretary of Defense based upon recommendations made by the commanders 
of the regional unified combatant commands.
    ``(d) Authorized Program Activities.--Participants in the program 
may be selected for attendance at, and may be authorize to attend, any 
of the following:
            ``(1) Department of Defense professional military 
        educational institutions.
            ``(2) Regional centers for security studies of the 
        Department of Defense.
    ``(e) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of the program under 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:

``2015. Defense counterproliferation fellowship program.''.

  Subtitle C--Initiatives Relating to Countries of Former Soviet Union

SEC. 1421. SILK ROAD INITIATIVE.

    (a) Findings.--Congress makes the following findings:
            (1) A number of independent states of the former Soviet 
        Union have been helpful to the United States in the war on 
        terrorism.
            (2) Such states are new and struggling democracies and 
        would benefit considerably from assistance to create 
        sustainable jobs for their underemployed or unemployed 
        scientists, engineers, and technicians who were formerly 
        engaged in activities to develop and produce weapons of mass 
        destruction for the Russian Federation or other such state.
    (b) Policies.--(1) It is the policy of the United States to seek to 
establish and promote programs to prevent the proliferation, from 
scientists, engineers, and technicians of the Russian Federation and 
other independent states of the former Soviet Union to countries of 
proliferation concern, of expertise to develop and produce weapons of 
mass destruction.
    (2) It is also the policy of the United States to seek to assist 
independent states of the former Soviet Union that have been helpful to 
the United States in the war on terrorism so as to promote the creation 
of jobs that foster economic stability and democracy.
    (c) Program Authorized.--(1) The Secretary of Energy may carry out 
a program, to be known as the Silk Road Initiative, to promote non-
weapons-related employment opportunities in the United States and in 
Silk Road nations for scientists, engineers, and technicians formerly 
engaged in activities to develop and produce weapons of mass 
destruction in Silk Road nations. The program should--
            (A) incorporate best practices under the former Initiatives 
        for Proliferation Prevention program; and
            (B) facilitate commercial partnerships between private 
        entities in the United States and scientists, engineers, and 
        technicians in the Silk Road nations.
    (2) Before implementing the program with respect to multiple Silk 
Road nations, the Secretary of Energy shall carry out a pilot program 
with respect to one Silk Road nation selected by the Secretary. It is 
the sense of Congress that the Secretary should select the Republic of 
Georgia.
    (d) Silk Road Nations Defined.--In this section, the Silk Road 
nations are Armenia, Azerbaijan, the Republic of Georgia, Kazakhstan, 
Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
    (e) Funding.--Of the funds authorized to be appropriated to the 
Department of Energy for nonproliferation and international security 
for fiscal year 2005, $10,000,000 may be used to carry out this 
section.

SEC. 1422. TELLER-KURCHATOV 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 scientists employed 
at Lawrence Livermore National Laboratory, international exchange 
fellowships, to be known as Teller-Kurchatov Nonproliferation 
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, except that 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) 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.
            (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.
    (c) Funding.--Of the funds authorized to be appropriated to the 
Department of Energy for nonproliferation and international security 
for fiscal year 2005, $10,000,000 may be used to carry out this 
section.

SEC. 1423. COLLABORATION TO REDUCE THE RISKS OF A LAUNCH OF RUSSIAN 
              NUCLEAR WEAPONS.

    (a) Findings.--Congress finds that, despite the ending of the Cold 
War more than a decade ago, the nuclear postures and strategic command 
and control systems of the Russian Federation pose risks that a nuclear 
ballistic missile could be launched as the result of an accident, 
misinformation, miscalculation, or unauthorized use. Such risks are 
posed as a result of factors including the following:
            (1) The high state of readiness of the Russian Federation's 
        nuclear forces.
            (2) The remote locations of much of the Russian 
        Federation's nuclear forces.
            (3) The inadequacy of the Russian Federation's early-
        warning information.
            (4) The very short time that would be available to the 
        President of the Russian Federation if the President were 
        informed that a nuclear ballistic missile attack was or might 
        be underway.
            (5) The possibility that the Russian Federation, because of 
        concerns that much of its nuclear forces would not survive a 
        nuclear attack, may have a nuclear deterrence posture reliant 
        upon launching a retaliatory nuclear strike when it believes a 
        nuclear ballistic missile attack against it is or might be 
        underway.
            (6) Deficiencies in the security and control of the nuclear 
        forces of the Russian Federation that could result in 
        unauthorized personnel gaining control of a nuclear-armed 
        missile or warhead.
            (7) The susceptibility of nuclear strategic command and 
        control systems and early-warning systems to an intrusion or 
        accident that could create the false appearance that a nuclear 
        ballistic missile attack is or might be underway.
    (b) Report.--(1) Not later than November 1, 2005, the Secretary of 
Defense shall submit to Congress a report on the collaborative measures 
that the United States and the Russian Federation could take to reduce 
the risks that a nuclear ballistic missile could be launched as the 
result of an accident, misinformation, miscalculation, or unauthorized 
use. For each such measure, the report shall provide--
            (A) specific comments on the advisability of the measure in 
        terms of the potential contribution of the measure to the 
        national security interests of the United States, including the 
        potential contribution of the measure in improving relations 
        between the United States and the Russian Federation; and
            (B) a description of the obstacles and opportunities 
        associated with pursuing the measure.
    (2) In addition to any other measure that the Secretary considers 
appropriate, the report required by paragraph (1) shall cover the 
following measures:
            (A) The future of the Joint Data Exchange Center.
            (B) Potential topics for discussion between high-level 
        military leaders of the United States and of the Russian 
        Federation on reducing the risk that a nuclear ballistic 
        missile could be launched as the result of an accident, 
        misinformation, miscalculation, or unauthorized use.

  TITLE XV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI 
                 FREEDOM AND OPERATION ENDURING FREEDOM

SEC. 1501. PURPOSE.

    The purpose of this title is to authorize appropriations for the 
Department of Defense for fiscal year 2005, in addition to amounts 
otherwise authorized by this Act, to provide funds for additional costs 
due to Operation Iraqi Freedom and Operation Enduring Freedom.

              Subtitle A--Authorization of Appropriations

SEC. 1511. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for procurement accounts of the Army in amounts as follows:
            (1) For aircraft, $498,300,000.
            (2) For missiles, $42,800,000.
            (3) For weapons and tracked combat vehicles, $201,900,000.
            (4) For ammunition, $78,750,000.
            (5) For other procurement, $1,567,410,000.
            (6) For National Guard and Reserve equipment, $50,000,000.

SEC. 1512. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2005 for the procurement account for the Marine Corps 
in the amount of $98,190,000.
    (b) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2005 for the procurement account for 
ammunition for the Navy and the Marine Corps in the amount of 
$38,402,000.

SEC. 1513. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for the procurement account for aircraft for the Air Force in amount of 
$99,000,000.

SEC. 1514. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for the procurement account for Defense-wide procurement in the amount 
of $720,000,000.

SEC. 1515. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for the use of the Armed Forces for expenses, not otherwise provided 
for, for operation and maintenance, in amounts as follows:
            (1) For the Army, $9,607,113,000.
            (2) For the Navy, $256,500,000.
            (3) For the Marine Corps, $2,398,735,000.
            (4) For the Air Force, $1,635,000,000.
            (5) For Defense-wide, $2,327,900,000.

SEC. 1516. DEFENSE HEALTH PROGRAM.

    Funds are hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2005 for expenses, not otherwise provided 
for, for the Defense Health Program, in the amount of $75,000,000, for 
Operation and Maintenance.

SEC. 1517. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel accounts for fiscal year 2005 a total of 
$5,305,000,000.

SEC. 1518. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

    The amounts authorized to be appropriated by this title are in 
addition to amounts otherwise authorized to be appropriated by this 
Act.

SEC. 1519. 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 title for fiscal 
year 2005 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. The transfer authority provided in this section is in 
addition to any other transfer authority available to the Secretary of 
Defense.
    (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;
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress; and
            (3) may not be combined with the authority under section 
        1001.
    (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. 1520. DESIGNATION OF EMERGENCY AUTHORIZATIONS.

    The amounts authorized to be appropriated by this title are 
designated for emergency contingency operations related to the global 
war on terrorism.

                    Subtitle B--Personnel Provisions

SEC. 1531. THREE-YEAR INCREASE IN ACTIVE ARMY STRENGTH LEVELS.

    (a) Authorized End Strengths.--(1) The end strength level 
authorized for the Army for fiscal year 2005 under section 401 is 
hereby increased by 10,000.
    (2) For fiscal years 2006 and 2007, the Army is authorized 
strengths for active duty personnel as follows:
            (A) As of September 30, 2006, 502,400.
            (B) As of September 30, 2007, 512,400.
    (b) Statutory Minimum Active Strength Level.--The minimum strength 
for the Army under section 691(b) of title 10, United States Code 
(notwithstanding the number specified in paragraph (1) of that 
section)--
            (1) for the period beginning on October 1, 2004, and ending 
        on September 30, 2005, shall be the number specified in section 
        401(1) of this Act, increased by 10,000;
            (2) for the period beginning on October 1, 2005, and ending 
        on September 30, 2006, shall be 502,400; and
            (3) for the period beginning on October 1, 2006, and ending 
        on September 30, 2007, shall be 512,400.
    (c) Notice to Congress.--If the Secretary of Defense, in 
consultation with the Secretary of the Army, determines that 
adjustments are necessary to the minimum end-strength level for the 
Army in effect at any time pursuant to subsection (b), the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and House of Representatives a report providing the Secretary's 
recommendations and rationale for such an adjustment. Such a report 
must be submitted before the submission of the budget request for the 
fiscal year for which the change would be effective.

SEC. 1532. THREE-YEAR INCREASE IN ACTIVE MARINE CORPS STRENGTH LEVELS.

    (a) Authorized End Strengths.--(1) The end strength level 
authorized for the Marine Corps for fiscal year 2005 under section 401 
is hereby increased by 3,000.
    (2) For fiscal years 2006 and 2007, the Marine Corps is authorized 
strengths for active duty personnel as follows:
            (A) As of September 30, 2006, 181,000.
            (B) As of September 30, 2007, 184,000.
    (b) Statutory Minimum Active Strength Level.--The minimum strength 
for the Marine Corps under section 691(b) of title 10, United States 
Code (notwithstanding the number specified in paragraph (3) of that 
section)--
            (1) for the period beginning on October 1, 2004, and ending 
        on September 30, 2005, shall be the number specified in section 
        401(3) of this Act, increased by 3,000;
            (2) for the period beginning on October 1, 2005, and ending 
        on September 30, 2006, shall be 181,000; and
            (3) for the period beginning on October 1, 2006, and ending 
        on September 30, 2007, shall be 184,000.
    (c) Notice to Congress.--If the Secretary of Defense, in 
consultation with the Secretary of the Navy, determines that 
adjustments are necessary to the minimum end-strength level for the 
Marine Corps in effect at any time pursuant to subsection (b), the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and House of Representatives a report providing the 
Secretary's recommendations and rationale for such an adjustment. Such 
a report must be submitted before the submission of the budget request 
for the fiscal year for which the change would be effective.

SEC. 1533. EXTENSION OF INCREASED RATES FOR IMMINENT DANGER PAY AND 
              FAMILY SEPARATION ALLOWANCE.

    (a) Imminent Danger Pay.--(1) Subsection (e) of section 310 of 
title 37, United States Code, is amended by striking ``December 31, 
2004'' and inserting ``December 31, 2005''.
    (2) Effective January 1, 2006, such section is further amended--
            (A) in subsection (a), by striking ``$150'' and inserting 
        ``$225''; and
            (B) by striking subsection (e).
    (b) Family Separation Allowance.--(1) Subsection (e) of section 427 
of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (2) Effective January 1, 2006, such section is further amended--
            (A) in subsection (a)(1), by striking ``$100'' and 
        inserting ``$250''; and
            (B) by striking subsection (e).

                Subtitle C--Financial Management Matters

SEC. 1541. REVISED FUNDING METHODOLOGY FOR MILITARY RETIREE HEALTH CARE 
              BENEFITS.

    (a) Revision.--Section 1116 of title 10, United States Code, is 
amended to read as follows:
``Sec. 1116. Payments into the Fund
    ``(a) At the beginning of each fiscal year after September 30, 
2005, the Secretary of the Treasury shall promptly pay into the Fund 
from the General Fund of the Treasury--
            ``(1) the amount certified to the Secretary by the 
        Secretary of Defense under subsection (c), which shall be the 
        contribution to the Fund for that fiscal year required by 
        section 1115; and
            ``(2) the amount determined by each administering Secretary 
        under section 1111(c) as the contribution to the Fund on behalf 
        of the members of the uniformed services under the jurisdiction 
        of that Secretary.
    ``(b) At the beginning of each fiscal year, the Secretary of 
Defense shall determine the sum of the following:
            ``(1) The amount of the payment for that year under the 
        amortization schedule determined by the Board of Actuaries 
        under section 1115(a) of this title for the amortization of the 
        original unfunded liability of the Fund.
            ``(2) The amount (including any negative amount) of the 
        Department of Defense contribution for that year as determined 
        by the Secretary of Defense under section 1115(b) of this 
        title.
            ``(3) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(2) of this title 
        for the amortization of any cumulative unfunded liability (or 
        any gain) to the Fund resulting from changes in benefits.
            `(4) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(3) of this title 
        for the amortization of any cumulative actuarial gain or loss 
        to the Fund resulting from actuarial assumption changes.
            ``(5) The amount (including any negative amount) for that 
        year under the most recent amortization schedule determined by 
        the Secretary of Defense under section 1115(c)(4) of this title 
        for the amortization of any cumulative actuarial gain or loss 
        to the Fund resulting from actuarial experience.
    ``(c) The Secretary of Defense shall promptly certify the amount 
determined under subsection (b) each year to the Secretary of the 
Treasury.''.
    (b) Conforming Amendments.--(1) Section 1111(c) of title 10, United 
States Code, is amended in the last sentence by striking ``1116'' and 
all that follows through the end of the sentence and inserting 
``1115(b) of this title, and such contributions shall be paid into the 
Fund as provided in section 1116(a).''.
    (2) Section 1115(a) of such title is amended by striking 
``1116(c)'' and inserting ``1116''.
    (3) Section 1115(b) of such title is amended--
            (A) by striking ``(1) The Secretary of Defense'' and all 
        that follows through ``of this title.'' and inserting ``The 
        Secretary of Defense shall determine, before the beginning of 
        each fiscal year after September 30, 2005, the total amount of 
        the Department of Defense contribution to be made to the Fund 
        for that fiscal year for purposes of section 1116(b)(2).'';
            (B) by striking paragraph (2);
            (C) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively;
            (D) in each of paragraphs (1) and (2), as so redesignated, 
        by redesignating clauses (i) and (ii) as subparagraphs (A) and 
        (B), respectively; and
            (E) in paragraph (2)(B), as so redesignated, by striking 
        ``subparagraph (A)(ii)'' and inserting ``paragraph (1)(B)''.
    (4) Section 1115(c)(1) of such title is amended by striking ``and 
section 1116(a) of this title''.
    (5) Section 1115(c)(5) of such title is amended by striking 
``1116(c)'' and inserting ``1116''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2005.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SECTION 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2005''.

                            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 or locations inside the 
United States, and in the amounts, set forth in the following table:

                     Army: Inside the United States
------------------------------------------------------------------------
            State             Installation or Location       Amount
------------------------------------------------------------------------
Alabama.....................  Anniston Army Depot.....       $23,690,000
Alaska......................  Fort Richardson.........       $24,300,000
                              Fort Wainwright.........       $92,459,000
California..................  Fort Irwin..............       $38,100,000
Colorado....................  Fort Carson.............       $59,508,000
Georgia.....................  Fort Benning............       $73,627,000
                              Fort Gillem.............        $5,800,000
                              Fort McPherson..........        $4,900,000
                              Fort Stewart/Hunter Army       $65,495,000
                               Air Field..............
Hawaii......................  Helemano Military              $75,300,000
                               Reservation.
                              Hickam Air Force........       $11,200,000
                              Schofield Barracks......      $241,792,000
Kansas......................  Fort Riley..............       $44,050,000
Kentucky....................  Fort Campbell...........       $89,600,000
                              Fort Knox...............       $73,850,000
Louisiana...................  Fort Polk...............       $70,953,000
Maryland....................  Fort Detrick............        $4,000,000
Missouri....................  Fort Leonard Wood.......       $21,450,000
New Jersey..................  Picatinny Arsenal.......        $9,900,000
New Mexico..................  White Sands Missile            $33,000,000
                               Range.
New York....................  Fort Drum...............       $13,650,000
                              Fort Hamilton...........        $7,600,000
                              Hancock Field...........        $6,000,000
                              Military Entrance               $6,200,000
                               Processing Station,
                               Buffalo................
                              United States Military         $60,000,000
                               Academy, West Point....
North Carolina..............  Fort Bragg..............      $111,687,000
Oklahoma....................  Fort Sill...............       $17,800,000
Texas.......................  Camp Bullis.............        $5,300,000
                              Fort Bliss..............       $19,400,000
                              Fort Hood...............       $88,888,000
Virginia....................  Fort A.P. Hill..........        $3,975,000
                              Fort Lee................        $4,250,000
                              Fort Myer...............       $49,526,000
Washington..................  Fort Lewis..............       $48,000,000
                                                       -----------------
                                  Total...............    $1,505,250,000
------------------------------------------------------------------------

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

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Grafenwoehr..............     $77,200,000
Italy........................  Livorno..................     $26,000,000
Korea........................  Camp Humphreys...........     $12,000,000
                                                         ---------------
                                   Total................    $115,200,000
------------------------------------------------------------------------

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 or locations, for the purposes and in 
the amounts, set forth in the following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Richardson...........  92 Units..................     $42,000,000
                                          Fort Wainwright...........  246 Units.................    $124,000,000
Arizona.................................  Fort Huachuca.............  205 Units.................     $41,000,000
                                          Yuma Proving Ground.......  55 Units..................     $14,900,000
Kansas..................................  Fort Riley................  126 Units.................     $33,000,000
New Mexico..............................  White Sands Missile Range.  156 Units.................     $31,000,000
Oklahoma................................  Fort Sill.................  247 Units.................     $47,000,000
Virginia................................  Fort Lee..................  218 Units.................     $46,000,000
                                          Fort Monroe...............  68 Units..................     $16,000,000
                                                                                                 ---------------
                                              Total.................  ..........................    $394,900,000
----------------------------------------------------------------------------------------------------------------

    (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 $29,209,000.

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 $211,990,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2004, 
for military construction, land acquisition and military family housing 
functions of the Department of the Army in the total amount of 
$3,428,815,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $1,335,750,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $115,200,000.
            (3) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $20,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $161,209,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $636,099,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $926,507,000.
            (6) For the construction of phase 2 of a barracks complex, 
        5th & 16th Street, at Fort Stewart/Hunter Army Air Field, 
        Georgia, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 (division B 
        of Public Law 108-136; 117 Stat. 1697), $32,950,000.
            (7) For the construction of phase 3 of a barracks complex 
        renewal, Capron Road, at Schofield Barracks, Hawaii, authorized 
        by section 2101(a) of the Military Construction Authorization 
        Act for Fiscal Year 2002 (division B of Public Law 107-107; 115 
        Stat. 1283) and as amended by section 2105 of the Military 
        Authorization Act for Fiscal Year 2004 (division B of Public 
        Law 108-136; 117 Stat. 1697), $48,000,000.
            (8) For the construction of phase 2 of the Lewis & Clark 
        instructional facility at Fort Leavenworth, Kansas, 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), $44,000,000.
            (9) For the construction of phase 2 of a barracks complex 
        at Wheeler Sack Army Air Field at Fort Drum, New York, 
        authorized by section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 2004 (division B of Public 
        Law 108-136; 117 Stat. 1697), $48,000,000.
            (10) For the construction of phase 2 of a barracks complex, 
        Bastogne Drive, Fort Bragg, North Carolina, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2004 (division B of Public Law 108-136; 117 
        Stat. 1697), $48,000,000.
            (11) For the construction of phase 3 of a 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), 
        $13,100,000.
    (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) $41,000,000 (the balance of the amount authorized under 
        section 2101(a) to upgrade Drum Road, Helemano Military 
        Reservation, Hawaii).
            (3) $25,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a vehicle maintenance 
        facility, Schofield Barracks, Hawaii).
            (3) $25,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a barracks complex, Fort 
        Campbell, Kentucky).
            (4) $22,000,000 (the balance of the amount authorized under 
        section 2101(a) for construction of trainee barracks, Basic 
        Training Complex 1, Fort Knox, Kentucky).
            (5) $25,500,000 (the balance of the amount authorized under 
        section 2101(a) for construction of a library and learning 
        facility, United States Military Academy, West Point, New 
        York).
            (6) $31,000,000 (the balance of the amount authorized under 
        section 2101(a) for a barracks complex renewal project, Fort 
        Bragg, North Carolina).

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2004 PROJECTS.

    (a) Modification of Inside the United States Projects.--The table 
in section 2101(a) of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 1697) is 
amended--
            (1) in the item relating to Fort Stewart/Hunter Army Air 
        Field, Georgia, by striking ``$113,500,000'' in the amount 
        column and inserting ``$114,450,000'';
            (2) in the item relating to Fort Drum, New York, by 
        striking ``$130,700,000'' in the amount column and inserting 
        ``$135,700,000''; and
            (3) by striking the amount identified as the total in the 
        amount column and inserting ``$1,043,150,000''.
    (b) Conforming Amendments.--Section 2104(b) of that Act (117 Stat. 
1700) is amended--
            (1) in paragraph (2), by striking ``$32,000,000'' and 
        inserting ``$32,950,000''; and
            (2) in paragraph (4), by striking ``$43,000,000'' and 
        inserting ``$48,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2003 PROJECT.

    (a) Modification of Inside the United States Project.--The table in 
section 2101(a) of the Military Construction Authorization Act for 
Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 2681), as 
amended by section 2105(a) of the Military Construction Authorization 
Act for Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 
1700), is further amended--
            (1) in the item relating to Fort Sill, Oklahoma, by 
        striking ``$39,652,000'' in the amount column and inserting 
        ``$40,752,000''; and
            (2) by striking the amount identified as the total in the 
        amount column and inserting ``$1,157,267,000''.
    (b) Conforming Amendment.--Section 2104(b)(6) of the Military 
Construction Authorization Act for Fiscal Year 2003 (division B of 
Public Law 107-314; 116 Stat. 2684) is amended by striking 
``$25,000,000'' and inserting ``$26,100,000''.

                            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 or locations inside the 
United States, and in the amounts, set forth in the following table:

                     Navy: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Arizona......................  Marine Corps Air Station,     $26,670,000
                                Yuma.
California...................  Marine Corps Air-Ground       $15,700,000
                                Task Force Training
                                Center, Twentynine Palms
                               Marine Corps Air Station,     $11,540,000
                                Camp Pendleton..........
                               Marine Corps Base, Camp       $26,915,000
                                Pendleton...............
                               Marine Corps Logistics         $4,930,000
                                Base, Barstow...........
                               Naval Air Facility, El        $54,331,000
                                Centro..................
                               Naval Air Station, North      $10,180,000
                                Island..................
                               Naval Surface Warfare          $9,850,000
                                Center, Division Corona.
Connecticut..................  Naval Submarine Base, New     $50,302,000
                                London..................
District of Columbia.........  Naval Observatory,             $3,239,000
                                Washington..............
Florida......................  Eglin Air Force Base.....      $2,060,000
                               Naval Station, Mayport...      $6,200,000
Georgia......................  Strategic Weapons             $16,000,000
                                Facility Atlantic, Kings
                                Bay.....................
Hawaii.......................  Naval Shipyard, Pearl          $5,100,000
                                Harbor..................
Illinois.....................  Naval Training Center,        $74,781,000
                                Great Lakes.............
Indiana......................  Naval Surface Warfare         $10,580,000
                                Center, Crane...........
Louisiana....................  Joint Reserve Base/Naval       $6,030,000
                                Air Station, New Orleans
Maryland.....................  Naval Surface Warfare         $23,000,000
                                Center, Indian Head.....
North Carolina...............  Marine Corps Air Station,     $35,140,000
                                New River...............
                               Marine Corps Base, Camp       $11,030,000
                                Lejeune.................
Nevada.......................  Naval Air Station, Fallon      $4,980,000
South Carolina...............  Marine Corps Air Station,      $5,480,000
                                Beaufort................
Virginia.....................  Camp Elmore Marine Corps      $13,500,000
                                Detachment..............
                               Marine Corps Air              $21,180,000
                                Facility, Quantico......
                               Marine Corps Combat           $24,140,000
                                Development Command,
                                Quantico................
                               Naval Air Station, Oceana      $2,770,000
                               Naval Amphibious Base,         $9,550,000
                                Little Creek............
                               Naval Station, Norfolk...      $4,330,000
                               Naval Weapons Station,         $9,870,000
                                Yorktown................
Washington...................  Naval Air Station,             $1,990,000
                                Whidbey Island..........
                               Naval Shipyard, Puget         $23,455,000
                                Sound...................
                               Naval Station, Bremerton.     $74,125,000
                               Strategic Weapons            $131,090,000
                                Facility Pacific, Bangor
                                                         ---------------
                                   Total................    $730,038,000
------------------------------------------------------------------------

    (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 installations or locations outside the 
United States, and in the amounts, set forth in the following table:

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Bahamas......................  Naval Undersea Warfare        $20,750,000
                                Center, Andros Islands..
Diego Garcia.................  Naval Support Facility,       $17,500,000
                                Diego Garcia............
Guam.........................  Naval Public Works            $20,700,000
                                Center, Guam............
                               Naval Station, Guam......     $12,500,000
Italy........................  Sigonella................     $22,550,000
Spain........................  Naval Station, Rota......     $32,700,000
                                                         ---------------
                                   Total................    $126,700,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(3), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations or locations and in the 
amount, set forth in the following table:

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....    $148,640,000
                                                         ---------------
                                   Total................    $148,640,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(6)(A), the Secretary of the Navy may 
construct or acquire family housing units (including land acquisition 
and supporting facilities) at the installations or locations, for the 
purposes and in the amounts, set forth in the following table:

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
North Carolina..........................  Marine Corps Air Station,   198 Units.................     $27,002,000
                                           Cherry Point.............
                                                                                                 ---------------
                                              Total.................  ..........................     $27,002,000
----------------------------------------------------------------------------------------------------------------

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)(6)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $112,105,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2004, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Navy in the total amount of 
$1,913,273,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $631,908,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $126,700,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2201(c), $98,560,000.
            (4) For unspecified minor military 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, $93,804,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $139,107,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $696,304,000.
            (7) For the construction of increment 2 of the tertiary 
        sewage treatment plant at Marine Corps Base, Camp Pendleton, 
        California, authorized by section 2201(a) of the Military 
        Construction Authorization Act for Fiscal Year 2004 (division B 
        of Public Law 108-136; 117 Stat. 1703), $25,690,000.
            (8) For the construction of increment 2 of the general 
        purpose berthing pier at Naval Weapons Station, Earle, New 
        Jersey, authorized by section 2201(a) of the Military 
        Construction Authorization Act of Fiscal Year 2004 (division B 
        of Public Law 108-136; 117 Stat. 1704), $49,200,000.
            (9) For the construction of increment 2 of pier 11 
        replacement at Naval Station, Norfolk, Virginia, authorized by 
        section 2201(a) of the Military Construction Authorization Act 
        of Fiscal Year 2004 (division B of Public Law 108-136; 117 
        Stat. 1704), $40,000,000.
    (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 2201 of this 
Act may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2) and (3) of subsection (a).
            (2) $21,000,000 (the balance of the amount authorized under 
        section 2201(a) for apron and hangar recapitalization, Naval 
        Air Facility, El Centro, California).
            (3) $40,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of bachelor enlisted quarters, 
        Naval Station, Bremerton, Washington).
            (4) $95,320,000 (the balance of the amount authorized under 
        section 2201(a) for construction of a limited area processing 
        and storage complex, Strategic Weapons Facility Pacific, 
        Bangor, Washington).
            (5) $34,098,000 (the balance of the amount authorized under 
        section 2201(c) for construction of a White Side complex at an 
        unspecified location worldwide).
            (6) $15,982,000 (the balance of the amount authorized under 
        section 2201(c) for construction of a presidential helicopter 
        programs support facility at an unspecified location).

                         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 or locations 
inside the United States, and in the amounts, set forth in the 
following table:

                   Air Force: Inside the United States
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Alaska.......................  Elmendorf Air Force Base.     $26,057,000
Arizona......................  Davis-Monthan Air Force       $17,029,000
                                Base.
                               Luke Air Force Base......     $17,900,000
Arkansas.....................  Little Rock Air Force          $8,931,000
                                Base.
California...................  Beale Air Force Base.....     $10,186,000
                               Edwards Air Force Base...      $9,965,000
                               Travis Air Force Base....     $18,894,000
Colorado.....................  Buckley Air Force Base...     $12,247,000
Florida......................  Tyndall Air Force Base...     $29,162,000
Georgia......................  Moody Air Force Base.....      $9,600,000
                               Robins Air Force Base....     $15,000,000
Hawaii.......................  Hickam Air Force Base....     $25,900,000
Louisiana....................  Barksdale Air Force Base.     $13,800,000
Maryland.....................  Andrews Air Force Base...     $17,100,000
Mississippi..................  Columbus Air Force Base..      $7,700,000
Missouri.....................  Whiteman Air Force Base..      $7,600,000
New Mexico...................  Kirtland Air Force Base..      $9,200,000
North Carolina...............  Pope Air Force Base......     $15,150,000
Ohio.........................  Wright-Patterson Air           $9,200,000
                                Force Base.
South Carolina...............  Shaw Air Force Base......      $7,000,000
Tennessee....................  Arnold Air Force Base....     $24,500,000
Texas........................  Dyess Air Force Base.....      $3,300,000
                               Lackland Air Force Base..      $2,596,000
                               Laughlin Air Force Base..      $6,900,000
                               Sheppard Air Force Base..     $50,284,000
Utah.........................  Hill Air Force Base......     $18,013,000
Wyoming......................  F.E. Warren Air Force          $5,500,000
                                Base.
                                                         ---------------
                                   Total................    $398,714,000
------------------------------------------------------------------------

    (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 or locations 
outside the United States, and in the amounts, set forth in the 
following table:

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $25,404,000
Greenland....................  Thule Air Base...........     $19,800,000
Guam.........................  Andersen Air Force Base..     $19,593,000
Italy........................  Aviano Air Base..........      $6,760,000
Japan........................  Misawa Air Base..........      $6,700,000
Korea........................  Kunsan Air Base..........     $37,100,000
                               Osan Air Base............     $18,600,000
Portugal.....................  Lajes Field, Azores......      $5,689,000
Spain........................  Naval Station, Rota......     $14,153,000
United Kingdom...............  Royal Air Force                $5,500,000
                                Lakenheath.
                                                         ---------------
                                   Total................    $159,299,000
------------------------------------------------------------------------

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

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Classified Locations.....     $26,121,000
                               Unspecified Worldwide....     $28,794,000
                                                         ---------------
                                   Total................     $54,915,000
------------------------------------------------------------------------

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 or locations, for the purposes and in 
the amounts, set forth in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Davis-Monthan Air Force     250 Units.................     $48,500,000
                                           Base.....................
California..............................  Edwards Air Force Base....  218 Units.................     $41,202,000
                                          Vandenberg Air Force Base.  120 Units.................     $30,906,000
Florida.................................  MacDill Air Force Base....  61 Units..................     $21,723,000
                                          MacDill Air Force Base....  Housing Maintenance             $1,250,000
                                                                       Facility.................
Idaho...................................  Mountain Home Air Force     147 Units.................     $39,333,000
                                           Base.....................
Mississippi.............................  Columbus Air Force Base...  Housing Management                $711,000
                                                                       Facility.................
Missouri................................  Whiteman Air Force Base...  160 Units.................     $37,087,000
Montana.................................  Malmstrom Air Force Base..  115 Units.................     $29,910,000
North Carolina..........................  Seymour Johnson Air Force   167 Units.................     $32,693,000
                                           Base.....................
North Dakota............................  Grand Forks Air Force Base  90 Units..................     $26,169,000
                                          Minot Air Force Base......  142 Units.................     $37,087,000
South Carolina..........................  Charleston Air Force Base.  Fire Station..............      $1,976,000
South Dakota............................  Ellsworth Air Force Base..  75 Units..................     $21,482,000
Texas...................................  Dyess Air Force Base......  127 Units.................     $28,664,000
                                          Goodfellow Air Force Base.  127 Units.................     $20,604,000
Germany.................................  Ramstein Air Base.........  144 Units.................     $57,691,000
Italy...................................  Aviano Air Base...........  Housing Office............      $2,542,000
Korea...................................  Osan Air Base.............  117 Units.................     $46,834,000
United Kingdom..........................  Royal Air Force Lakenheath  154 Units.................     $43,976,000
                                                                                                 ---------------
                                              Total.................  ..........................    $570,340,000
----------------------------------------------------------------------------------------------------------------

    (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 $38,266,000.

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 
$238,353,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2004, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Air Force in the total 
amount of $2,493,679,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $398,714,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $159,299,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $54,915,000.
            (4) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $13,000,000.
            (5) For architectural and engineering services and 
        construction design, under section 2807 of title 10, United 
        States Code, $166,126,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design and improvement of military family housing and 
                facilities, $846,959,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $854,666,000.
    (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 2404(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Intelligence Agency..  Bolling Air Force Base,        $6,000,000
                                District of Columbia....
Defense Logistics Agency.....  Defense Distribution          $22,300,000
                                Depot, New Cumberland,
                                Pennsylvania............
                               Defense Distribution          $10,100,000
                                Depot, Richmond,
                                Virginia................
                               Defense Fuel Support           $3,589,000
                                Point, Naval Air
                                Station, Oceana,
                                Virginia................
                               Defense Supply Center,         $5,500,000
                                Columbus, Ohio..........
                               Marina Corps Air Station,     $22,700,000
                                Cherry Point, North
                                Carolina................
                               Naval Air Station,             $3,900,000
                                Kingsville, Texas.......
                               Naval Station, Pearl           $3,500,000
                                Harbor, Hawaii..........
                               Tinker Air Force Base,         $5,400,000
                                Oklahoma................
                               Travis Air Force Base,        $15,100,000
                                California..............
Missile Defense Agency.......  Huntsville, Alabama......     $19,560,000
National Security Agency.....  Fort Meade, Maryland.....     $15,007,000
Special Operations Command...  Corona, California.......     $13,600,000
                               Fleet Combat Training          $5,700,000
                                Center, Dam Neck,
                                Virginia................
                               Fort A.P. Hill, Virginia.      $1,500,000
                               Fort Bragg, North             $42,888,000
                                Carolina................
                               Fort Stewart/Hunter Army      $17,600,000
                                Air Field, Georgia......
                               Hurlburt Field, Florida..      $2,500,000
                               Naval Amphibious Base,        $33,200,000
                                Little Creek, Virginia..
                               Naval Air Station, North       $1,000,000
                                Island, California......
TRICARE Management Activity..  Buckley Air Force Base,        $2,100,000
                                Colorado................
                               Defense Language               $6,700,000
                                Institute, Presidio,
                                Monterey................
                               Fort Belvoir, Virginia...    $100,000,000
                               Fort Benning, Georgia....      $7,100,000
                               Langley Air Force Base,       $50,800,000
                                Virginia................
                               Marine Corps Recruit          $25,000,000
                                Depot, Parris Island,
                                South Carolina..........
                               Naval Air Station,            $28,438,000
                                Jacksonville, Florida...
                                                         ---------------
                                   Total................    $470,782,000
------------------------------------------------------------------------

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

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Education Activity...  Grafenwoehr, Germany.....     $36,247,000
                               Naval Station, Guam......     $26,964,000
                               Vilseck, Germany.........      $9,011,000
Defense Logistics Agency.....  Defense Fuel Support          $19,113,000
                                Point, Lajes Field,
                                Portugal................
                               Misawa Air Base, Japan...     $19,900,000
Special Operations Command...  Naval Station, Guam,           $2,200,000
                                Marianas Islands........
                               Royal Air Force               $10,200,000
                                Mildenhall, United
                                Kingdom.................
TRICARE Management Activity..  Diego Garcia.............      $3,800,000
                               Grafenwoehr, Germany.....     $13,000,000
                                                         ---------------
                                   Total................    $140,435,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(3), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations, and in the 
amount, set forth in the following table:

                 Defense Agencies: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Special Operations Command...  Classified Locations.....      $7,400,000
                               Unspecified Worldwide....      $2,900,000
                                                         ---------------
                                   Total................     $10,300,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(9)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $49,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(7), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 10, 
United States Code, in the amount of $50,000,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) Modification of Inside the United States Projects.--Funds are 
hereby authorized to be appropriated for fiscal years beginning after 
September 30, 2004, 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 $1,089,063,000, 
as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $413,782,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $140,435,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2401(c), $10,300,000.
            (4) For unspecified minor military construction projects 
        under section 2805 of title 10, United States Code, 
        $20,938,000.
            (5) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $10,000,000.
            (6) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $63,482,000.
            (7) For Energy Conservation projects authorized by section 
        2404 of this Act, $50,000,000.
            (8) 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), $246,116,000.
            (9) For military family housing functions:
                    (A) For improvement of military family housing and 
                facilities, $49,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $49,575,000.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $2,500,000.
            (10) For the construction of phase 6 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), 
        $44,792,000.
            (11) For the construction of phase 5 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 of 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), 
        $37,094,000.
    (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 sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2) and (3) of subsection (a).
            (2) $57,000,000 (the balance of the amount authorized under 
        section 2401(a) for hospital replacement, Fort Belvoir, 
        Virginia).

   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, 2004, 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 $165,800,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2004, 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, $393,225,000; and
                    (B) for the Army Reserve, $116,955,000.
            (2) For the Department of the Navy, for the Naval and 
        Marine Corps Reserve, $30,955,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $184,620,000; and
                    (B) for the Air Force Reserve, $114,090,000.

        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, 2007; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2008.
    (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, 2007; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2008 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization 
        Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2002 
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1301), authorizations set forth in the 
tables in subsection (b), as provided in section 2101 or 2302 of that 
Act, shall remain in effect until October 1, 2005, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2006, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

                                 Army: Extension of 2002 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright...........  Power plant cooling tower.     $23,000,000
Hawaii..................................  Pohakuloa Training Area...  Parker Ranch land               $1,500,000
                                                                       acquisition..............
----------------------------------------------------------------------------------------------------------------


                               Air Force: Extension of 2002 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Colorado................................  Buckley Air Force Base....  Family housing (55 Units).     $11,400,000
Louisiana...............................  Barksdale Air Force Base..  Family housing (56 Units).      $7,300,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION AND RENEWAL OF AUTHORIZATIONS OF CERTAIN FISCAL 
              YEAR 2001 PROJECTS.

    (a) Extension and Renewal.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 2001 (division 
B of the Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-
407)), authorizations set forth in the tables in subsection (b), as 
provided in section 2102 or 2401 of that Act and, in the case of the 
authorization set forth in the first table in subsection (b), extended 
by section 2702 of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 1716), 
shall remain in effect until October 1, 2005, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2006, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

                                  Army: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
South Carolina..........................  Fort Jackson..............  Family housing (1 unit)...        $250,000
----------------------------------------------------------------------------------------------------------------


                           Defense Agencies: Extension of 2001 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 Agency                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Defense Finance and Accounting Service..  Kleber Kaserne, Germany...  Building renovation.......      $7,400,000
Defense Education Activity..............  Osan Air Base, Korea......  Osan Elementary School            $843,000
                                                                       addition.................
----------------------------------------------------------------------------------------------------------------

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, 2004; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

SECTION 2801. INCREASE IN CERTAIN THRESHOLDS FOR CARRYING OUT 
              UNSPECIFIED MINOR MILITARY CONSTRUCTION PROJECTS.

    (a) Advance Approval and Congressional Notification Threshold.--
Subsection (b)(1) of section 2805 of title 10, United States Code, is 
amended by striking ``$750,000'' and inserting ``$1,000,000''.
    (b) Use of Operation and Maintenance Funds Threshold.--Subsection 
(c) of such section is amended--
            (1) by striking paragraph (1) and inserting the following 
        new paragraph:
    ``(1) Except as provided in paragraphs (2) and (3), the Secretary 
concerned may spend from appropriations available for operation and 
maintenance amounts necessary to carry out an unspecified minor 
military construction project costing not more than $1,500,000.''; and
            (2) in paragraph (3), by striking ``limitations'' and 
        inserting ``limitation''.

SEC. 2802. ASSESSMENT OF VULNERABILITY OF MILITARY INSTALLATIONS TO 
              TERRORIST ATTACK AND ANNUAL REPORT ON MILITARY 
              CONSTRUCTION REQUIREMENTS RELATED TO ANTITERRORISM AND 
              FORCE PROTECTION.

    (a) Annual Assessment and Report.--Section 2808 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(d) Antiterrorism and Force Protection Assessments and Military 
Construction Requirements.--(1) The Secretary of Defense shall develop 
common guidance and criteria to be used by the Secretary concerned--
            ``(A) to assess the vulnerability of military installations 
        located inside and outside of the United States to terrorist 
        attack;
            ``(B) to develop construction standards designed to reduce 
        the vulnerability of structures to terrorist attack and improve 
        the security of the occupants of such structures;
            ``(C) to prepare and carry out military construction 
        projects, such as gate and fenceline construction, to improve 
        the physical security of military installations; and
            ``(D) to assist in prioritizing such projects within the 
        military construction budget of each of the armed forces.
    ``(2) The Secretary of Defense shall require vulnerability 
assessments of military installations to be conducted, at regular 
intervals, using the criteria developed under paragraph (1).
    ``(3) As part of the budget materials submitted to Congress in 
connection with the submission of the budget for a fiscal year pursuant 
to section 1105 of title 31, but in no case later than March 15 of each 
year, the Secretary of Defense shall submit a report describing--
            ``(A) the location and results of the vulnerability 
        assessments conducted during the preceding fiscal year;
            ``(B) the military construction requirements anticipated to 
        be necessary during the next three fiscal years to improve the 
        physical security of military installations; and
            ``(C) the extent to which funds are not requested in the 
        Department of Defense budget for the next fiscal year to meet 
        those requirements.
    ``(4) In the case of the report required under paragraph (3) to be 
submitted in 2006, the Secretary of Defense shall include a 
certification by the Secretary that since September 11, 2001, 
vulnerability assessments have been undertaken at all major military 
installations. The Secretary shall indicate the basis by which the 
Secretary differentiated between major and nonmajor military 
installations for purposes of making the certification.''.
    (b) Stylistic and Clerical Amendments.--(1) The heading of such 
section is amended to read as follows:
``Sec. 2808. Construction authority related to declaration of war or 
              national emergency; construction requirements related to 
              antiterrorism and force protection''.
    (2) Such section is further amended--
            (A) in subsection (a), by inserting ``Construction 
        Authority; Limitation.--'' after ``(a)'';
            (B) in subsection (b), by inserting ``Congressional 
        Notification.--'' after ``(b)''; and
            (C) in subsection (c), by inserting ``Termination.--'' 
        after ``(c)''.
    (3) The table of sections at the beginning of chapter 169 of such 
title is amended by striking the item relating to section 2808 and 
inserting the following new item:

``2808. Construction authority related to declaration of war or 
                            national emergency; construction 
                            requirements related to antiterrorism and 
                            force protection.''.

SEC. 2803. CHANGE IN THRESHOLD FOR CONGRESSIONAL NOTIFICATION REGARDING 
              USE OF OPERATION AND MAINTENANCE FUNDS FOR FACILITY 
              REPAIR.

    Section 2811(d) of title 10, United States Code, is amended by 
striking ``$10,000,000'' and inserting ``$7,500,000''.

SEC. 2804. REPORTING REQUIREMENTS REGARDING MILITARY FAMILY HOUSING 
              REQUIREMENTS FOR GENERAL OFFICERS AND FLAG OFFICERS.

    (a) Annual Report on Cost of General and Flag Officers Quarters.--
Section 2831 of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(e) Annual Report of Cost of General Officers and Flag Officers 
Quarters.--As part of the budget materials submitted to Congress in 
connection with the submission of the budget for a fiscal year pursuant 
to section 1105 of title 31, but in no case later than March 30 of each 
year, the Secretary of Defense shall submit a report--
            ``(1) identifying family housing units used, or intended 
        for use, as quarters for general officers or flag officers for 
        which the total operation and maintenance costs, utility costs, 
        and repair costs are anticipated to exceed $20,000 in the next 
        fiscal year; and
            ``(2) specifying the total of such costs for each unit of 
        family housing identified under paragraph (1).''.
    (b) Report on Need for Such Quarters in National Capital Region.--
The Secretary of Defense shall prepare a report analyzing anticipated 
needs in the National Capital Region for family housing units for 
general officers and flag officers. In conducting the analysis, the 
Secretary shall consider the extent of available housing in the 
National Capital Region and the necessity of providing housing for 
general officers and flag officers in secure locations.
    (c) Report on World-Wide Inventory of Such Quarters.--The Secretary 
of Defense shall prepare a report containing a worldwide inventory of 
family housing units for general officers and flag officers and 
identifying annual expenditures for each such unit for operation and 
maintenance, utilities, and repair for each for the fiscal years 2000 
through 2004.
    (d) Submission of Reports.--The reports required by subsections (b) 
and (c) shall be submitted to the congressional defense committees not 
later than March 30, 2005.
    (e) Definitions.--In this section:
            (1) The terms ``general officer'' and ``flag officer'' have 
        the meanings given such terms in section 101(b) of title 10, 
        United States Code.
            (2) The term ``National Capital Region'' has the meaning 
        given such term in section 2674(f) of such title.

SEC. 2805. CONGRESSIONAL NOTIFICATION OF DEVIATIONS FROM AUTHORIZED 
              COST VARIATIONS FOR MILITARY CONSTRUCTION PROJECTS AND 
              MILITARY FAMILY HOUSING PROJECTS.

    Section 2853(c)(3) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``or, if over 
sooner, a period of 14 days has elapsed after the date on which a copy 
of the notification is provided in an electronic medium pursuant to 
section 480 of this title''.

SEC. 2806. REPEAL OF LIMITATION ON USE OF ALTERNATIVE AUTHORITY FOR 
              ACQUISITION AND IMPROVEMENT OF MILITARY FAMILY HOUSING.

    Effective October 1, 2005, subsection (g) of section 2883 of title 
10, United States Code, is amended to read as follows:
    ``(g) Limitation on Use of Authority to Acquire or Construct 
Military Unaccompanied Housing.--The total value in budget authority of 
all contracts and investments undertaken using the authorities provided 
in this subchapter for the acquisition or construction of military 
unaccompanied housing shall not exceed $150,000,000.''.

SEC. 2807. TEMPORARY AUTHORITY TO ACCELERATE DESIGN EFFORTS FOR 
              MILITARY CONSTRUCTION PROJECTS CARRIED OUT USING DESIGN-
              BUILD SELECTION PROCEDURES.

    Section 2305a of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) Special Authority for Military Construction Projects.--(1) 
The Secretary of a military department, and the Secretary of Defense 
with respect to matters concerning the Defense Agencies, may use funds 
available to the Secretary under section 2807(a) or 18233(e) of this 
title to accelerate the design effort in connection with a military 
construction project for which the two-phase selection procedures 
described in subsection (c) are used to select the contractor for both 
the design and construction portion of the project before the project 
is specifically authorized by law and before funds are appropriated for 
the construction portion of the project. Notwithstanding the 
limitations contained in such sections, use of such funds for the 
design portion of a military construction project may continue despite 
the subsequent authorization of the project. The advance notice 
requirement of section 2807(b) of this title shall continue to apply 
whenever the estimated cost of the design portion of the project 
exceeds the amount specified in such section.
    ``(2) Any military construction contract that provides for an 
accelerated design effort, as authorized by paragraph (1), shall 
include as a condition of the contract that the liability of the United 
States in a termination for convenience may not exceed costs above the 
costs attributable to the final design of the project.
    ``(3) Not more than 36 military construction projects containing 
the accelerated design effort authorized by paragraph (1) may be 
carried out.
    ``(4) Not later than March 1, 2007, the Secretary of Defense shall 
submit to the congressional defense committees a report evaluating the 
usefulness of the authority provided by this subsection in expediting 
the design and construction of military construction projects. The 
authority provided by this subsection expires September 30, 2008, 
except that, if the report required by this paragraph is not submitted 
by March 1, 2007, the authority shall expire on that date.''.

SEC. 2808. EXCHANGE OR SALE OF RESERVE COMPONENT FACILITIES TO ACQUIRE 
              REPLACEMENT FACILITIES.

     Section 18233 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(g)(1) The Secretary of Defense may convey, by exchange or sale, 
an existing facility of a reserve component of the armed forces for the 
purpose of acquiring a replacement facility under this section or using 
the proceeds from the sale to acquire a replacement facility under this 
section, if the Secretary determines it is in the best interests of the 
United States to acquire the replacement facility by such exchange or 
sale. The United States shall receive funds or a replacement facility, 
or a combination of both, having a total value at least equal to the 
fair market value of the conveyed facility.
    ``(2) Acquisition of a replacement facility under this subsection 
may be accomplished by construction, expansion, rehabilitation, or 
conversion and must result in a fully equipped and operational 
replacement facility. Nothing in this subsection prohibits the 
Secretary of Defense from contributing additional funds, in accordance 
with this section, to obtain a fully equipped and operational 
replacement facility.
    ``(3) Funds received under this subsection shall be deposited in a 
separate account and remain available to the Secretary of Defense, 
without appropriation, for use in accordance with this subsection. Any 
funds received under this subsection in connection with a conveyance in 
excess of the funds required to obtain a fully equipped and operational 
replacement facility for the conveyed facility may be used by the 
Secretary for the purposes of subsection (a).''.

SEC. 2809. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY TO USE 
              OPERATION AND MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS 
              OUTSIDE THE UNITED STATES.

    Section 2808 of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136; 117 Stat. 1723) is 
amended--
            (1) in subsections (a) and (d), by striking ``fiscal year 
        2004'' both places it appears and inserting ``fiscal years 2004 
        and 2005''; and
            (2) in subsection (c)(1), by striking ``in fiscal year 
        2004'' and inserting ``in a fiscal year''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. INCREASE IN CERTAIN THRESHOLDS FOR REPORTING REAL PROPERTY 
              TRANSACTIONS.

    (a) General Notice and Wait Threshold.--Subsection (a) of section 
2662 of title 10, United States Code, is amended by striking 
``$750,000'' each place it appears and inserting ``$1,500,000''.
    (b) Annual Report on Minor Transactions Threshold.--Subsection (b) 
of such section is amended by striking ``subsection (a) that involve an 
estimated value of more than $250,000, but not more than $750,000'' and 
inserting ``such subsection that involve an estimated value of more 
than $500,000, but not more than the amount specified in such 
subsection''.
    (c) Notice and Wait Threshold for Certain GSA Leases.--Subsection 
(e) of such section is amended by striking ``$750,000'' and inserting 
``$1,500,000''.
    (d) Threshold for Acquisition of Low-Cost Interests in Land.--
Subsection (a) of section 2672 of such title is amended to read as 
follows:
    ``(a) Acquisition Authority.--The Secretary of a military 
department may acquire any interest in land that--
            ``(1) the Secretary determines is needed in the interest of 
        national defense; and
            ``(2) does not cost more than $1,500,000, exclusive of 
        administrative costs and the amounts of any deficiency 
        judgments.''.
    (e) Treatment Multiple Parcels Under Low-Cost Acquisition 
Authority.--Subsection (b) of such section is amended to read as 
follows:
    ``(b) Treatment of Multiple Parcels.--This section does not 
authorize the acquisition, as a part of the same project, of more than 
one parcel of land unless--
            ``(1) the parcels are noncontiguous; or
            ``(2) if contiguous, the total cost for the acquisition of 
        all of the contiguous parcels does not cost more than the 
        amount specified in subsection (a)(2).''.

SEC. 2812. REORGANIZATION OF EXISTING ADMINISTRATIVE PROVISIONS 
              RELATING TO REAL PROPERTY TRANSACTIONS.

    (a) Limitation on Commissions.--(1) Section 2661 of title 10, 
United States Code, is amended by adding at the end the following new 
subsection:
    ``(c) Commissions on Land Purchase Contracts.--The maximum amount 
payable as a commission on a contract for the purchase of land from 
funds appropriated for the Department of Defense is two percent of the 
purchase price.''.
    (2) Section 2666 of such title is repealed.
    (b) Repeal of Obsolete Authority to Acquire Land for Timber 
Production.--Section 2664 of such title is repealed.
    (c) Availability of Funds for Acquisition of Certain Interests in 
Real Property.--(1) Section 2672 of such title is amended by adding at 
the end the following new subsection:
    ``(d) Availability of Funds.--Appropriations available to the 
Department of Defense for operation and maintenance or construction may 
be used for the acquisition of land or interests in land under this 
section.''.
    (2) Section 2673 of such title is repealed.
    (3) Section 2675 of such title is amended--
            (A) by inserting before ``The Secretary'' the following 
        ``(a) Lease Authority; Duration.--''; and
            (B) by adding at the end the following new subsection:
    ``(b) Availability of Funds.--Appropriations available to the 
Department of Defense for operation and maintenance or construction may 
be used for the acquisition of interests in land under this section.''.
    (d) Stylistic and Clerical Amendments.--(1) Section 2661 of such 
title is further amended--
            (A) in subsection (a), by inserting ``Availability of 
        Operation and Maintenance Funds.--'' after ``(a)'' ; and
            (B) in subsection (b), by inserting ``Leasing and Road 
        Maintenance Authority.--'' after ``(b)''.
    (2) The table of sections at the beginning of chapter 159 of such 
title is amended by striking the items relating to sections 2664, 2666, 
and 2673.

SEC. 2813. TREATMENT OF MONEY RENTALS FROM GOLF COURSE AT ROCK ISLAND 
              ARSENAL, ILLINOIS.

    (a) Support of MWR Activities.--Section 2667(d) of title 10, United 
States Code, is amended--
            (1) in paragraph (1)(B)--
                    (A) by redesignating clause (ii) as clause (iii); 
                and
                    (B) by inserting after clause (i) the following new 
                clause:
            ``(ii) Money rentals deposited in a nonappropriated morale, 
        welfare, and recreation account under paragraph (3).''; and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
    ``(3) The Secretary of the Army may deposit up to 50 percent of the 
money rentals received by the United States from a lease involving the 
golf course at Rock Island Arsenal, Illinois, in the nonappropriated 
morale, welfare, and recreation account for that installation, to be 
used for quality-of-life programs at that installation.''.
    (b) Effective Date.--Paragraph (3) of section 2667(d) of title 10, 
United States Code, as added by subsection (a), shall apply to money 
rentals referred to in such paragraph received by the United States 
after September 30, 2004.

SEC. 2814. NUMBER OF CONTRACTS AUTHORIZED DEPARTMENT-WIDE UNDER 
              DEMONSTRATION PROGRAM ON REDUCTION IN LONG-TERM FACILITY 
              MAINTENANCE COSTS.

    Section 2814 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 10 U.S.C. 2809 note) is amended--
            (1) in subsection (a), by striking ``or the Secretary of a 
        military department'' and inserting ``and the Secretaries of 
        the military departments'';
            (2) in subsection (b)(1), by striking ``12 contracts per 
        military department'' and inserting ``36 contracts''; and
            (3) in subsection (b)(2), by striking ``the date of the 
        enactment of the Bob Stump National Defense Authorization Act 
        for Fiscal Year 2003'' and inserting ``December 2, 2002''.

SEC. 2815. REPEAL OF COMMISSION ON REVIEW OF OVERSEAS MILITARY FACILITY 
              STRUCTURE OF THE UNITED STATES.

    Section 128 of the Military Construction Appropriations Act, 2004 
(Public Law 108-132; 117 Stat. 1382; 10 U.S.C. 111 note), is repealed.

SEC. 2816. DESIGNATION OF AIRMEN LEADERSHIP SCHOOL AT LUKE AIR FORCE 
              BASE, ARIZONA, IN HONOR OF JOHN J. RHODES, A FORMER 
              MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES.

    The Airmen Leadership School at Luke Air Force Base, Arizona, 
building 156, shall be known and designated as the ``John J. Rhodes 
Airmen Leadership School''. Any reference to such facility in any law, 
regulation, map, document, record, or other paper of the United States 
shall be considered to be a reference to the John J. Rhodes Airmen 
Leadership School.

SEC. 2817. ELIMINATION OF REVERSIONARY INTERESTS CLOUDING UNITED STATES 
              TITLE TO PROPERTY USED AS NAVY HOMEPORTS.

    (a) Authority to Acquire Complete Title.--If real property owned by 
the United States and used as a Navy homeport is subject to a 
reversionary interest of any kind, the Secretary of the Navy may enter 
into an agreement with the holder of the reversionary interest to 
acquire the reversionary interest and thereby secure for the United 
States all right, title, and interest in and to the property.
    (b) Consideration.--(1) As consideration for the acquisition of a 
reversionary interest under subsection (a), the Secretary shall provide 
the holder of the reversionary interest with in-kind consideration, to 
be determined pursuant to negotiations between the Secretary and the 
holder of the reversionary interest. In determining the type and value 
of any in-kind consideration to be provided for the acquisition of a 
reversionary interest under subsection (a), the Secretary shall take 
into account the nature of the reversionary interest, including whether 
it would require the holder of the reversionary interest to pay for any 
improvements acquired by the holder as part of the reversion of the 
real property, and the long-term use and ultimate disposition of the 
real property if the United States were to acquire all right, title, 
and interest in and to the real property subject to the reversionary 
interest.
    (2) Cash payments are not authorized as consideration for the 
acquisition of reversionary interests under subsection (a).

SEC. 2818. REPORT ON REAL PROPERTY DISPOSAL AT MARINE CORPS AIR 
              STATION, EL TORO, CALIFORNIA.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Navy shall submit to Congress a report 
describing--
            (1) the progress being made with regard to the disposal of 
        real property at Marine Corps Air Station, El Toro, California, 
        including any challenges arising from plans to dispose of 
        property at the installation by auction;
            (2) the anticipated future uses of the property; and
            (3) the requests received from other Federal agencies 
        (including other military departments) for property at the 
        installation.

                Subtitle C--Base Closure and Realignment

SEC. 2821. TWO-YEAR POSTPONEMENT OF 2005 BASE CLOSURE AND REALIGNMENT 
              ROUND AND SUBMISSION OF REPORTS REGARDING FUTURE 
              INFRASTRUCTURE REQUIREMENTS FOR THE ARMED FORCES.

    (a) Two-Year Postponement in Submittal of Base Closure and 
Realignment Recommendations.--Section 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 section 3003 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1345), is amended--
            (1) in the section heading, by striking ``2005'' and 
        inserting ``2007''; and
            (2) in subsection (a), by striking ``May 16, 2005,'' and 
        inserting ``May 16, 2007,''.
    (b) Commission Review and Recommendations.--Subsection (d) of 
section 2914 of the Defense Base Closure and Realignment Act of 1990 is 
amended--
            (1) in paragraphs (1) and (2), by striking ``September 8, 
        2005'' both places it appears and inserting ``September 8, 
        2007''; and
            (2) in paragraph (6)--
                    (A) by striking ``in 2005'' and inserting ``under 
                this section''; and
                    (B) by striking ``July 1, 2005'' and inserting 
                ``July 1, 2007''.
    (c) Review by President and Transmittal to Congress.--Subsection 
(e) of section 2914 of the Defense Base Closure and Realignment Act of 
1990 is amended--
            (1) in paragraph (1)--
                    (A) by striking ``in 2005'' and inserting ``under 
                this section''; and
                    (B) by striking ``September 23, 2005'' and 
                inserting ``September 23, 2007'';
            (2) in paragraph (2), by striking ``October 20, 2005'' and 
        inserting ``October 20, 2007''; and
            (3) in paragraph (3)--
                    (A) by striking ``November 7, 2005'' and inserting 
                ``November 7, 2007''; and
                    (B) by striking ``in 2005'' and inserting ``in 
                2007''.
    (d) New Force Structure Plan and Infrastructure Inventory; 
Recertification of Need for Additional Round.--Section 2912 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) in the section heading, by striking ``2005'' and 
        inserting ``2007'';
            (2) by striking ``fiscal year 2005'' each place it appears 
        and inserting ``fiscal year 2007'';
            (3) in subsection (b)(1), by inserting ``for fiscal year 
        2007'' after ``subsection (a)'';
            (4) in subsections (b)(2) and (d), by striking ``in 2005'' 
        each place it appears and inserting ``under section 2914'';
            (5) in subsection (d), by striking ``March 15, 2005'' both 
        places it appears and inserting ``March 15, 2007'';
            (6) in subsection (d)(4), by striking ``calendar year 2005 
        and shall terminate on April 15, 2006'' and inserting 
        ``calendar year 2007 and shall terminate on April 15, 2008''; 
        and
            (7) in subsection (d)(5), by striking ``second session of 
        the 108th Congress for the activities of the Commission in 
        2005'' and inserting ``second session of the 109th Congress for 
        the activities of the Commission under section 2914''.
    (e) Infrastructure-Related Reporting Requirements; Termination of 
Base Closure Round.--Section 2912 of the Defense Base Closure and 
Realignment Act of 1990 is further amended by adding at the end the 
following new subsection:
    ``(e) Infrastructure-Related Reports.--
            ``(1) Required reports.--The Secretary shall prepare the 
        following reports related to infrastructure requirements for 
        the Armed Forces:
                    ``(A) A report containing the Integrated Global 
                Presence and Basing Strategy of the Department of 
                Defense, including the location of long-term overseas 
                installations, installations to be used for rotational 
                purposes, and forward operating locations, anticipated 
                rotational plans and policies, and domestic and 
                overseas infrastructure requirements associated with 
                the strategy.
                    ``(B) A report describing the anticipated 
                infrastructure requirements associated with 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) for each of the Armed Forces 
                resulting from force transformation.
                    ``(C) A report describing the anticipated 
                infrastructure requirements related to expected changes 
                in the active component versus reserve component 
                personnel mix of the Armed Forces.
                    ``(D) A report describing the anticipated 
                infrastructure requirements associated with the so-
                called `10-30-30 objective' of the Secretary to ensure 
                that military forces are capable of deployment overseas 
                within 10 days in sufficient strength to defeat an 
                enemy within 30 days and be ready for redeployment 
                within 30 days after the end of combat operations.
                    ``(E) A report containing the results of a complete 
                reassessment of the infrastructure necessary to support 
                the force structure described in the force-structure 
                plan prepared under paragraph (1) of subsection (a) and 
                describing any resulting excess infrastructure and 
                infrastructure capacity, which were previously required 
                by paragraph (2) of such subsection. The reassessment 
                shall be based on actual infrastructure, facility, and 
                space requirements for the Armed Forces rather than a 
                comparative study between 1989 and 2003.
                    ``(F) A report describing the anticipated 
                infrastructure requirements associated with the 
                assessment prepared by the Secretary pursuant to 
                section 2822 of the National Defense Authorization Act 
                for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
                1726), in which Congress required the Secretary to 
                assess the probable threats to national security and 
                determine the potential, prudent, surge requirements 
                for the Armed Forces and military installations to meet 
                those threats.
            ``(2) Time for submission of reports.--The reports required 
        by paragraph (1) shall be submitted to the congressional 
        defense committees only during the period beginning on January 
        1, 2006, and ending on March 15, 2006.
            ``(3) Termination of round for failure to submit reports as 
        required.--If the reports required by paragraph (1) are not 
        submitted during the period specified in paragraph (2), the 
        process for the making of recommendations to the Congress for 
        the closure or realignment of military installations and the 
        selection of installations for closure or realignment under 
        this part in 2007 shall be terminated.''.
    (f) Conforming Amendments.--(1) Section 2904(a)(3) of the Defense 
Base Closure and Realignment Act of 1990 is amended by striking ``in 
the 2005 report'' and inserting ``in a report submitted after 2001''.
    (2) Section 2906(e) of such Act is amended by striking ``2005'' and 
inserting ``2007''.
    (3) Section 2906A of such Act is amended--
            (A) in the section heading, by striking ``2005'' and 
        inserting ``2007''; and
            (B) by striking ``2005'' each place it appears and 
        inserting ``2007''.
    (4) Section 2909(a) of such Act is amended by striking ``2006'' and 
inserting ``2008''.

SEC. 2822. ESTABLISHMENT OF SPECIFIC DEADLINE FOR SUBMISSION OF 
              REVISIONS TO FORCE-STRUCTURE PLAN AND INFRASTRUCTURE 
              INVENTORY FOR NEXT BASE CLOSURE ROUND.

    Section 2912(a)(4) 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 ``as part of the budget justification 
document submitted to Congress for fiscal year 2006.'' and inserting 
``not later than March 15 of the year in which the Secretary will 
submit, consistent with subsection (e) of this section, the list of the 
military installations inside the United States that the Secretary 
recommends for closure or realignment. No revision of the force-
structure plan or infrastructure inventory is authorized after that 
March 15 date.''.

SEC. 2823. SPECIFICATION OF FINAL SELECTION CRITERIA FOR NEXT BASE 
              CLOSURE ROUND.

    (a) Findings.--Congress finds the following:
            (1) Title XXX of the National Defense Authorization Act for 
        Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1342) amended 
        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) to 
        authorize the Secretary of Defense to conduct an additional 
        round of base realignments and closures.
            (2) In section 2822 of the National Defense Authorization 
        Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1726), 
        approved November 24, 2003, Congress required the Secretary of 
        Defense to assess the probable threats to national security and 
        determine the potential, prudent, surge requirements for the 
        Armed Forces and military installations to meet those threats. 
        Such section specifically requires the Secretary of Defense to 
        use the determination of surge requirements in exercising the 
        authority of the Secretary to conduct the next round of base 
        realignments and closures.
            (3) Section 2913 of the Defense Base Closure and 
        Realignment Act of 1990, as added by title XXX of the National 
        Defense Authorization Act for Fiscal Year 2002, specified the 
        process by which the Secretary of Defense was to prepare the 
        criteria to be used by the Secretary in making recommendations 
        for the next round of base realignments and closures and listed 
        certain requirements the Secretary had to comply with as part 
        of the process, including the advance publication of the 
        proposed criteria and the solicitation and consideration of 
        public comments.
            (4) In subsection (e) of such section, Congress required 
        the Secretary of Defense to publish in the Federal Register and 
        transmit to Congress not later than February 16, 2004, the 
        final criteria intended to be used by the Secretary in making 
        recommendations for the next round of base realignments and 
        closures. Pursuant to such subsection, the Secretary of Defense 
        published the final selection criteria in the Federal Register 
        on February 12, 2004 (69 Fed. Reg. 6948).
            (5) In addition to specifically reserving its right to 
        disapprove the final selection criteria, Congress may modify or 
        otherwise amend the criteria by Act of Congress.
    (b) Congressional Specification of Final BRAC Selection Criteria.--
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 to 
read as follows:

``SEC. 2913. FINAL SELECTION CRITERIA FOR ADDITIONAL ROUND OF BASE 
              CLOSURES AND REALIGNMENTS.

    ``(a) Final Selection Criteria.--The final criteria to be used by 
the Secretary in making recommendations for the closure or realignment 
of military installations inside the United States under this part in 
any additional round of base closures and realignments are as follows:
            ``(1) The current and future mission requirements and the 
        impact on operational readiness of the total force of the 
        Department of Defense, including the impact on joint 
        warfighting, training, readiness, and research, development, 
        test, and evaluation of weapons systems and equipment.
            ``(2) The availability and condition of land, facilities, 
        infrastructure, and associated air and water space (including 
        preservation of training areas suitable for maneuver by ground, 
        naval, or air forces throughout a diversity of climate and 
        terrain areas, the preservation of testing ranges able to 
        accommodate current or future military weapons systems and 
        equipment, and the preservation of staging areas for the use of 
        the Armed Forces in homeland defense missions) at both existing 
        and potential receiving locations.
            ``(3) The ability to accommodate contingency, mobilization, 
        and future total force requirements at both existing and 
        potential receiving locations to support operations, training, 
        maintenance, and repair.
            ``(4) Preservation of land, air, and water space, 
        facilities, and infrastructure necessary to support training 
        and operations of military forces determined to be surge 
        requirements by the Secretary of Defense, as required by 
        section 2822 of the National Defense Authorization Act for 
        Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1726).
            ``(5) The extent and timing of potential costs and savings 
        of base realignment and closure actions on the entire Federal 
        budget, as well as the Department of Defense, including the 
        number of years, beginning with the date of completion of the 
        closure or realignment, for the savings to exceed the costs. 
        Costs shall include those costs related to potential 
        environmental restoration, waste management, and environmental 
        compliance activities.
            ``(6) The economic impact on existing communities in the 
        vicinity of military installations.
            ``(7) The ability of the infrastructure of both the 
        existing and potential receiving communities to support forces, 
        missions, and personnel, including quality of living standards 
        for members of the Armed Forces and their dependents.
            ``(8) The environmental impact on receiving locations.
    ``(b) Priority Given to Military Value.--In recommending military 
installations for closure or realignment, the Secretary shall give 
priority consideration to the first four criteria specified in 
subsection (a).
    ``(c) Relation to Other Materials.--The final selection criteria 
specified in subsection (a) shall be the only criteria to be used, 
along with the force-structure plan and infrastructure inventory 
referred to in section 2912, in making recommendations for the closure 
or realignment of military installations inside the United States under 
this part after December 31, 2003.
    ``(d) Relation to Criteria for Earlier Rounds.--Section 2903(b), 
and the selection criteria prepared under such section, shall not apply 
with respect to the process of making recommendations for the closure 
or realignment of military installations after December 31, 2003.''.
    (c) Conforming Amendments.--The Defense Base Closure and 
Realignment Act of 1990 is amended--
            (1) in section 2912(c)(1)(A), by striking ``criteria 
        prepared under section 2913'' and inserting ``criteria 
        specified in section 2913''; and
            (2) in section 2914(a), by striking ``criteria prepared by 
        the Secretary under section 2913'' and inserting ``criteria 
        specified in section 2913''.

SEC. 2824. REQUIREMENT FOR UNANIMOUS VOTE OF DEFENSE BASE CLOSURE AND 
              REALIGNMENT COMMISSION TO ADD TO OR OTHERWISE EXPAND 
              CLOSURE AND REALIGNMENT RECOMMENDATIONS MADE 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) by striking paragraph (5) and inserting the following 
        new paragraph:
            ``(5) Requirements to expand closure or realignment 
        recommendations.--In the report required under section 
        2903(d)(2)(A) that is to be transmitted under paragraph (1), 
        the Commission may not make a change in the recommendations of 
        the Secretary that would close a military installation not 
        recommended for closure by the Secretary, would realign a 
        military installation not recommended for closure or 
        realignment by the Secretary, or would expand the extent of the 
        realignment of a military installation recommended for 
        realignment by the Secretary unless--
                    ``(A) at least two members of the Commission visit 
                the military installation before the date of the 
                transmittal of the report; and
                    ``(B) the decision of the Commission to make the 
                change to recommend the closure of the military 
                installation, the realignment of the installation, or 
                the expanded realignment of the installation is 
                unanimous.''.

SEC. 2825. ADHERENCE TO CERTAIN AUTHORITIES ON PRESERVATION OF MILITARY 
              DEPOT CAPABILITIES DURING ANY SUBSEQUENT ROUND OF BASE 
              CLOSURES AND REALIGNMENTS.

    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 section:

``SEC. 2915. ADHERENCE TO CERTAIN AUTHORITIES ON PRESERVATION OF 
              MILITARY DEPOT CAPABILITIES DURING ANY SUBSEQUENT ROUND 
              OF BASE CLOSURES AND REALIGNMENTS.

    ``(a) Adherence Required.--(1) Any base closure and realignment 
actions under section 2914 or subsequent round of base closure and 
realignment, and any actions to carry out the closure or realignment of 
military installations as a result of such actions, shall reflect a 
strict adherence to the provisions of title 10, United States Code, for 
the maintenance of government-owned, government-operated depot-level 
maintenance, repair, and logistics capabilities within the Department 
of Defense, including the provisions of chapter 146 of such title and 
other applicable provisions.
    ``(2) No action to carry out the closure or realignment of military 
installations in any base closures and realignments under this part 
after the date of the enactment of this section may include a waiver 
authorized by paragraph (2) or (3) of section 2464(b) or section 
2466(b) of title 10, United States Code.
    ``(b) Base Closure and Realignment Actions Defined.--In this 
section, the term `base closure and realignment actions' means the 
following:
            ``(1) The preparation by the Secretary of Defense of 
        recommendations on installations for closure or realignment 
        under this part or any subsequent base closure law.
            ``(2) The review by the Commission of the recommendations 
        referred to in paragraph (1).
            ``(3) The review by the President of the recommendations 
        referred to in paragraphs (1) and (2).''.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. TRANSFER OF ADMINISTRATIVE JURISDICTION, DEFENSE SUPPLY 
              CENTER, COLUMBUS, OHIO.

    (a) Transfer Required.--As soon as practicable after the date of 
the enactment of this Act, the Secretary of the Army shall transfer, 
without reimbursement, to the administrative jurisdiction of the 
Secretary of Veterans Affairs a parcel of real property consisting of 
approximately 20 acres and comprising a portion of the Defense Supply 
Center in Columbus, Ohio, for the purpose of permitting the Secretary 
of Veterans Affairs to use the property as the site for an outpatient 
clinic.
    (b) Payment of Costs of Conveyance.--(1) The Secretary of the Army 
shall require the Secretary of Veterans Affairs to cover costs to be 
incurred by the Secretary of the Army, or to reimburse the Secretary of 
the Army for costs incurred by the Secretary of the Army, 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 Secretary 
of Veterans Affairs in advance of the Secretary of the Army incurring 
the actual costs, and the amount collected exceeds the costs actually 
incurred by the Secretary of the Army to carry out the conveyance, the 
Secretary of the Army shall refund the excess amount to the Secretary 
of Veterans Affairs.
    (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 of the Army 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 Real Property.--The exact acreage and legal 
description of the real property to be transferred under subsection (a) 
shall be determined by a survey satisfactory to the Secretary of the 
Army.

SEC. 2832. LAND CONVEYANCE, FORT HOOD, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
the Texas A&M University System of the State of Texas (in this section 
referred to as the ``University System''), all right, title, and 
interest of the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 662 acres 
at Fort Hood, Texas, for the sole purpose of permitting the University 
System to establish on the property an upper level (junior, senior and 
graduate) university that will be State-supported, separate from other 
universities of the University System, and designated as Texas A&M 
University, Central Texas.
    (b) Consideration.--(1) As consideration for the conveyance under 
subsection (a), the University System shall pay to the United States an 
amount equal to the fair market value of the conveyed property, as 
determined pursuant to an appraisal acceptable to the Secretary.
    (2) In lieu of all or a portion of the cash consideration required 
by paragraph (1), the Secretary may accept in-kind consideration, 
including the conveyance by the University System of real property 
acceptable to the Secretary.
    (c) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the Secretary determine that the 
conveyance of the property and the establishment of a university on the 
property will not adversely impact the operation of Robert Grey Army 
Airfield, which is located on Fort Hood approximately one mile from the 
property authorized for conveyance.
    (d) 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 University System.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2833. LAND CONVEYANCE, ARMY NATIONAL GUARD FACILITY, SEATTLE, 
              WASHINGTON.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the State of Washington (in this section 
referred to as the ``State'') all right, title, and interest of the 
United States in and to a parcel of real property, including any 
improvements thereon, consisting of approximately 9.747 acres in 
Seattle, Washington, and comprising a portion of the National Guard 
Facility, Pier 91, for the purpose of permitting the State to convey 
the facility unencumbered for economic development purposes.
    (b) Administrative Expenses.--(1) The State shall reimburse the 
Secretary for the administrative expenses incurred by the Secretary in 
carrying out the conveyance under subsection (a), including expenses 
related to surveys and legal descriptions, boundary monumentation, 
environmental surveys, necessary documentation, travel, and deed 
preparation.
    (2) Section 2695(c) of title 10, United States Code, shall apply to 
any amounts received by the Secretary as reimbursement under this 
subsection.
    (c) 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.
    (d) Description of Property.--The exact acreage and legal 
description of the 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 United States, subject to the 
requirement for reimbursement under subsection (b).
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                       PART II--NAVY CONVEYANCES

SEC. 2841. TRANSFER OF JURISDICTION, NEBRASKA AVENUE NAVAL COMPLEX, 
              DISTRICT OF COLUMBIA.

    (a) Transfer Required.--Except as provided in subsection (b), the 
Secretary of the Navy shall transfer to the administrative jurisdiction 
of the Administrator of General Services the parcel of Department of 
the Navy real property in the District of Columbia known as the 
Nebraska Avenue Complex for the purpose of permitting the Administrator 
to use the Complex to accommodate the Department of Homeland Security. 
The Complex shall be transferred in its existing condition.
    (b) Authority to Retain Military Family Housing.--At the option of 
the Secretary of the Navy, the Secretary may retain administrative 
jurisdiction over that portion of the Complex that, as of the date of 
the enactment of this Act, is being used to provide Navy family 
housing.
    (c) Time for Transfer.--Not later than January 1, 2005, the 
Secretary of the Navy shall complete the transfer of administrative 
jurisdiction over the portion of the Complex required to be transferred 
under subsection (a).
    (d) Relocation of Navy Activities.--As part of the transfer of the 
Complex under subsection (a), the Secretary of the Navy shall relocate 
Department of the Navy activities at the Complex to other locations.
    (e) Payment of Initial Relocation Costs.--Subject to the 
availability of appropriations for this purpose, the Secretary of the 
Department of Homeland Security shall be responsible for the payment 
of--
            (1) all reasonable costs, including costs to move 
        furnishings and equipment, related to the initial relocation of 
        Department of the Navy activities from the Complex under 
        subsection (d); and
            (2) all reasonable costs incident to the initial occupancy 
        by such activities of interim leased space, including rental 
        costs for the first year.
    (f) Payment of Long-Term Relocation Costs.--
            (1) Sense of congress regarding payment.--It is the sense 
        of the Congress that the Secretary of the Navy should receive, 
        from Federal agencies other than the Department of Defense, 
        funds authorized and appropriated for the purpose of covering 
        all reasonable costs, not paid under subsection (e), that are 
        incurred or will be incurred by the Secretary to permanently 
        relocate Department of the Navy activities from the Complex 
        under subsection (d).
            (2) Submission of cost estimates.--As soon as practicable 
        after the date of the enactment of this Act , the Secretary of 
        the Navy shall submit to the Director of the Office of 
        Management and Budget and the Congress an initial estimate of 
        the amounts that will be necessary to cover the costs to 
        permanently relocate Department of the Navy activities from the 
        portion of the Complex to be transferred under subsection (a). 
        The Secretary shall include in the estimate anticipated land 
        acquisition and construction costs. The Secretary shall revise 
        the estimate as necessary whenever information regarding the 
        actual costs for the relocation is obtained.
    (g) Treatment of Funds.--(1) Funds received by the Secretary of the 
Navy, from sources outside the Department of Defense, to relocate 
Department of the Navy activities from the Complex shall be used to pay 
the costs incurred by the Secretary to permanently relocate Department 
of the Navy activities from the Complex. A military construction 
project carried out using such funds is deemed to be an authorized 
military construction project for purposes of section 2802 of title 10, 
United States Code. Section 2822 of such title shall continue to apply 
to any military family housing unit proposed to be constructed or 
acquired using such funds.
    (2) When a decision is made to carry out a military construction 
project using such funds, the Secretary of the Navy shall notify 
Congress in writing of that decision, including the justification for 
the project and the current estimate of the cost of the project. The 
project may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by Congress or, if 
earlier, the end of the 14-day period beginning on the date on which a 
copy of the notification is provided in an electronic medium pursuant 
to section 480 of title 10, United States Code.
    (h) Effect of Failure to Receive Sufficient Funds for Relocation 
Costs.--
            (1) Congressional notification.--At the end of the three-
        year period beginning on the date of the transfer of the 
        Complex under subsection (a), the Secretary of the Navy shall 
        submit to Congress a report--
                    (A) specifying the total amount needed to cover 
                both the initial and permanent costs of relocating 
                Department of the Navy activities from the portion of 
                the Complex transferred under subsection (a);
                    (B) specifying the total amount of the initial 
                relocation costs paid by the Secretary of the 
                Department of Homeland Security under subsection (e); 
                and
                    (C) specifying the total amount of appropriated 
                funds received by the Secretary of the Navy, from 
                sources outside the Department of Defense, to cover the 
                permanent relocation costs.
            (2) Role of omb.--The Secretary of the Navy shall obtain 
        the assistance and concurrence of the Director of the Office of 
        Management and Budget in determining the total amount needed to 
        cover both the initial and permanent costs of relocating 
        Department of the Navy activities from the portion of the 
        Complex transferred under subsection (a), as required by 
        paragraph (1)(A).
            (3) Certification regarding relocation costs.--Not later 
        than 30 days after the date on which the report under paragraph 
        (1) is required to be submitted to Congress, the President 
        shall certify to Congress whether the amounts specified in the 
        report pursuant to subparagraphs (B) and (C) of such paragraph 
        are sufficient to cover both the initial and permanent costs of 
        relocating Department of the Navy activities from the portion 
        of the Complex transferred under subsection (a). The President 
        shall make this certification only after consultation with the 
        Chairman and ranking minority member of the Committee on Armed 
        Services and the Committee on Appropriations of the House of 
        Representatives and the Chairman and ranking minority member of 
        the Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            (4) Restoration of complex to navy.--If the President 
        certifies under paragraph (3) that amounts referred to in 
        subparagraphs (B) and (C) of paragraph (1) are insufficient to 
        cover Navy relocation costs, the Administrator of General 
        Services, at the request of the Secretary of the Navy, shall 
        restore the Complex to the administrative jurisdiction of the 
        Secretary of the Navy.
            (5) Navy sale of complex.--If administrative jurisdiction 
        over the Complex is restored to the Secretary of the Navy, the 
        Secretary shall convey the Complex by competitive sale. Amounts 
        received by the United States as consideration from any sale 
        under this paragraph shall be deposited in the special account 
        in the Treasury established pursuant to section 572(b) of title 
        40, United States Code.

SEC. 2842. LAND CONVEYANCE, NAVY PROPERTY, FORMER FORT SHERIDAN, 
              ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the State of Illinois, a political 
subdivision of the State, or a nonprofit land conservation organization 
(in this section collectively referred to as the ``grantee''), all 
right, title, and interest of the United States in and to certain 
environmentally sensitive land at the former Fort Sheridan, Illinois, 
consisting of mostly bluffs and ravines, for the purpose of ensuring 
the permanent protection of the lands.
    (b) Reversionary Interest.--If the Secretary determines at any time 
that the real property conveyed under subsection (a) is not being used 
or maintained in accordance with the purpose of the conveyance 
specified in such subsection, all right, title, and interest in and to 
all or any portion of the property shall revert, at the option of the 
Secretary, to the United States, and the United States shall have the 
right of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record after an 
opportunity for a hearing.
    (c) Reconveyance Authorized.--The Secretary may permit the grantee 
to convey the real property conveyed under subsection (a) to another 
eligible entity described in such subsection, subject to the same 
covenants and terms and conditions as provided in the deed from the 
United States.
    (d) Payment of Costs of Conveyance.--(1) The Secretary shall 
require the grantee 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 
grantee 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 grantee.
    (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.
    (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.
    (h) Use of Alternate Conveyance Authority.--In lieu of using the 
authority provided by this section to convey the real property 
described in subsection (a), the Secretary may elect to include the 
property in a conveyance authorized by section 2878 of title 10, United 
States Code, subject to such terms, reservations, restrictions, and 
conditions as may be necessary to ensure the permanent protection of 
the property, if the Secretary determines that a conveyance under such 
section is advantageous to the interests of the United States.

SEC. 2843. LAND EXCHANGE, NAVAL AIR STATION, PATUXENT RIVER, MARYLAND.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the State of Maryland (in this section referred to as ``State''), all 
right, title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
approximately five acres at Naval Air Station, Patuxent River, 
Maryland, and containing the Point Lookout Lighthouse, other structures 
related to the lighthouse, and an archaeological site pertaining to the 
military hospital that was located on the property during the Civil 
War. The conveyance shall include artifacts pertaining to the military 
hospital recovered by the Navy and held at the installation.
    (b) Property Received in Exchange.--As consideration for the 
conveyance of the real property under subsection (a), the State shall 
convey to the United States a parcel of real property consisting of 
approximately five acres located in Point Lookout State Park, St. 
Mary's County, Maryland.
    (c) Payment of Costs of Conveyance.--(1) The Secretary may require 
the State 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, relocation expenses incurred 
under subsection (b), and other administrative costs related to the 
conveyance. If amounts are collected from the State 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 State.
    (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) Description of Property.--The exact acreage and legal 
description of the properties to be conveyed under this section shall 
be determined by surveys satisfactory to the Secretary.
    (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) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2851. LAND EXCHANGE, MAXWELL AIR FORCE BASE, ALABAMA.

    (a)  Conveyance Authorized.--The Secretary of the Air Force may 
convey to the City of Montgomery, Alabama (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 improvements thereon, 
consisting of all of the Maxwell Heights Housing site at Maxwell Air 
Force Base, Alabama.
    (b) Consideration.--(1) As consideration for the conveyance of the 
real property under subsection (a), the City shall convey to the United 
States a parcel of real property, including improvements thereon, 
consisting of approximately 35 acres designated as project AL 6-4 that 
is owned by the City and is contiguous to Maxwell Air Force Base. The 
Secretary shall have jurisdiction over the real property received under 
this paragraph.
    (2) If the fair market value of the real property received under 
paragraph (1) is less than the fair market value of the real property 
conveyed under subsection (a), the Secretary may require the City to 
make up the difference through the payment of cash, the provision of 
in-kind consideration, or a combination thereof, to be determined 
pursuant to negotiations between the Secretary and the City.
    (3) The fair market values of the real property to be exchanged 
under this section shall be determined by appraisals acceptable to the 
Secretary and the City.
    (c)  Description of Property.--The exact acreage and legal 
description of the property to be conveyed under this section 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 conveyances 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

 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 2005 for 
the activities of the National Nuclear Security Administration in 
carrying out programs necessary for national security in the amount of 
$9,047,700,000, to be allocated as follows:
            (1) For weapons activities, $6,577,953,000.
            (2) For defense nuclear nonproliferation activities, 
        $1,338,147,000.
            (3) For naval reactors, $797,900,000.
            (4) For the Office of the Administrator for Nuclear 
        Security, $333,700,000.
    (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 05-D-140, project engineering and design, various 
        locations, $11,600,000.
            Project 05-D-160, facilities and infrastructure 
        recapitalization program, project engineering and design, 
        various locations, $8,700,000.
            Project 05-D-170, project engineering and design, 
        safeguards and security, various locations, $17,000,000.
            Project 05-D-401, production bays upgrade, Pantex Plant, 
        Amarillo, Texas, $25,100,000.
            Project 05-D-402, beryllium capability project, Y-12 
        national security complex, Oak Ridge, Tennessee, $3,627,000.
            Project 05-D-601, compressed air upgrades project, Y-12 
        national security complex, Oak Ridge, Tennessee, $4,400,000.
            Project 05-D-602, power grid infrastructure upgrade, Los 
        Alamos National Laboratory, Los Alamos, New Mexico, 
        $10,000,000.
            Project 05-D-603, new master substation, Sandia National 
        Laboratories, Albuquerque, New Mexico, $600,000.
            Project 05-D-701, security perimeter, Los Alamos National 
        Laboratory, Los Alamos, New Mexico, $20,000,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2005 for environmental management activities in 
carrying out programs necessary for national security in the amount of 
$6,863,307,000, to be allocated as follows:
            (1) For defense site acceleration completion, 
        $5,876,837,000.
            (2) For defense environmental services, $986,470,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2005 for other defense activities in carrying 
out programs necessary for national security in the amount of 
$658,618,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2005 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 
$131,000,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
              SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 4601 of the Atomic Energy Defense Act (50 U.S.C. 2701) is 
amended by striking ``September 30, 2004'' and inserting ``September 
30, 2006''.

SEC. 3112. REQUIREMENTS FOR BASELINE OF PROJECTS UNDER FACILITIES AND 
              INFRASTRUCTURE RECAPITALIZATION PROGRAM.

    Subsection (a) of section 3114 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1744; 50 U.S.C. 2453 note) is amended--
            (1) in paragraph (1) by inserting ``of a baseline'' after 
        ``selection''; and
            (2) by amending paragraph (2) to read as follows:
            ``(2)(A) After December 31, 2004, a project may be added to 
        or removed from the Facilities and Infrastructure 
        Recapitalization Program only after the Administrator submits 
        to the congressional defense committees a notice that the 
        Administrator has identified such project for addition or 
        removal and has approved such addition or removal as a 
        modification to the baseline for that program.
            ``(B) The Administrator may not obligate funds for any 
        project added under subparagraph (A) until a period of 60 days 
        has elapsed after the date on which such committees receive the 
        notice under subparagraph (A) with respect to that project.
            ``(C) The authority of the Administrator to identify and 
        approve under subparagraph (A) may not be delegated.''.

                       Subtitle C--Other Matters

SEC. 3131. TRANSFERS AND REPROGRAMMINGS OF NATIONAL NUCLEAR SECURITY 
              ADMINISTRATION FUNDS.

    Section 3252 of the National Nuclear Security Administration Act 
(50 U.S.C. 2452) is amended by adding at the end the following new 
subsection:
    ``(d) Transfer and Reprogramming Process.--(1) The Administrator 
shall have sole jurisdiction within the Department of Energy to submit 
to Congress or the appropriate congressional committees a notice of, or 
request for, a transfer or reprogramming of funds of the 
Administration.
    ``(2) The functions of the Chief Financial Officer of the 
Department of Energy shall not apply to a notice or request described 
in paragraph (1), except to certify whether the funds covered by such 
notice or request are available.''.

SEC. 3132. NATIONAL ACADEMY OF SCIENCES STUDY ON MANAGEMENT BY 
              DEPARTMENT OF ENERGY OF HIGH-LEVEL RADIOACTIVE WASTE.

    (a) Review Required.--The Secretary of Energy shall enter into an 
arrangement with the National Research Council of the National Academy 
of Sciences to carry out a study of the plans of the Department of 
Energy to manage the waste streams specified in subsection (b) that are 
not currently planned for disposal in a high-level repository.
    (b) Covered Waste Streams.--The waste streams referred to in 
subsection (a) are the streams of high-level radioactive waste at--
            (1) the Savannah River Site, South Carolina;
            (2) the Idaho National Engineering Laboratory, Idaho; and
            (3) the Hanford Reservation, Washington.
    (c) Matters Included.--The study required by subsection (a) shall 
evaluate--
            (1) the physical, chemical, and radiological 
        characteristics of the waste referred to in subsection (b), 
        including specifically the waste proposed to be left 
        indefinitely in storage tanks;
            (2) the probability that such waste, if left indefinitely 
        in storage tanks, will leak into the environment and the range 
        of potential dangers such leakage would represent;
            (3) the plans of the Department for the disposal of the 
        high-level radioactive waste that the Department had planned, 
        before certain litigation in Federal district court in 2003 on 
        ``Waste Incidental to Reprocessing'', to reclassify as low-
        level waste;
            (4) treatment and disposal alternatives to the plans 
        referred to in paragraph (3), including, for each such 
        alternative, assessments of the technology approaches and of 
        the implications with respect to cost, worker safety, and long-
        term environmental and human health;
            (5) the adequacy of the plans referred to in subsection 
        (a), including Department of Energy Order No. 435.1, to 
        protect, for the long term, the environment and population 
        surrounding each site referred to in subsection (b); and
            (6) any other matters that the National Research Council 
        considers appropriate and directly related to the subject 
        matter of the study.
    (d) Recommendations Required.--In carrying out the study, the 
National Research Council shall develop recommendations relating to the 
subject matter of the study. The recommendations shall include--
            (1) recommendations for improving the scientific basis for 
        managing the waste covered by the study, including alternative 
        criteria for determining what waste should be managed as 
        ``Waste Incidental to Reprocessing''; and
            (2) any other recommendations that the National Research 
        Council considers appropriate and directly related to the 
        subject matter of the study.
    (e) Reports.--The National Research Council shall submit to the 
Secretary of Energy and the congressional defense committees--
            (1) not later than six months after entering into the 
        arrangement required by subsection (a), an interim report on 
        the study with respect to the waste proposed to be left 
        indefinitely in storage tanks, including the tentative 
        findings, conclusions, and recommendations with respect to such 
        waste; and
            (2) not later than one year after entering into the 
        arrangement required by subsection (a), a final report on the 
        study, including all findings, conclusions, and 
        recommendations.
    (f) Provision of Information.--The Secretary shall make available 
to the National Research Council all information that the National 
Research Council considers necessary to carry out, in a timely manner, 
its responsibilities under this section.
    (g) Funding.--Of the amounts authorized to be appropriated to the 
Department of Energy by section 3102, $1,500,000 shall be available 
only for carrying out the study required by this section.

SEC. 3133. CONTRACT TO REVIEW WASTE ISOLATION PILOT PLANT, NEW MEXICO.

    The Secretary of Energy shall enter into a contract to conduct 
independent reviews and evaluations of the design, construction, and 
operations of the Waste Isolation Pilot Plant in New Mexico as they 
relate to the protection of the public health and safety and the 
environment. The contract shall be for a period of one year and shall 
be renewable for four additional one-year periods, subject to the 
authorization and appropriation of funds for such purpose.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 2005, 
$21,268,000 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 2005, the 
National Defense Stockpile Manager may obligate up to $59,700,000 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. RELAXATION OF QUANTITY RESTRICTIONS ON DISPOSAL OF MANGANESE 
              FERRO IN NATIONAL DEFENSE STOCKPILE.

    Section 3306(a) of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1391; 50 U.S.C. 98d 
note) is amended--
            (1) in paragraph (3), by striking ``each of the fiscal 
        years 2004 and 2005'' and inserting ``fiscal year 2004''; and
            (2) by adding at the end the following new paragraph:
            ``(4) During fiscal year 2005, 100,000 short tons of high 
        carbon manganese ferro of the highest grade.

SEC. 3303. REVISION OF EARLIER AUTHORITY TO DISPOSE OF CERTAIN 
              MATERIALS IN NATIONAL DEFENSE STOCKPILE.

    Section 3303(a) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 50 U.S.C. 
98d note) is amended by striking paragraphs (4) and (5) and inserting 
the following new paragraphs:
            ``(4) $785,000,000 by the end of fiscal year 2005; and
            ``(5) $870,000,000 by the end of fiscal year 2009.''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Secretary of Energy $20,000,000 for fiscal 
year 2005 for the purpose of carrying out activities under chapter 641 
of title 10, United States Code, relating to the naval petroleum 
reserves.
    (b) Period of Availability.--Funds appropriated pursuant to the 
authorization of appropriations in subsection (a) shall remain 
available until expended.

                  TITLE XXXV--MARITIME ADMINISTRATION

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR MARITIME ADMINISTRATION.

    There are authorized to be appropriated to the Secretary of 
Transportation for the Maritime Administration for fiscal year 2005 (in 
lieu of amounts authorized for the same purposes by section 3511 of the 
National Defense Authorization Act for Fiscal Year 2004)--
            (1) for expenses necessary for operations and training 
        activities, $109,300,000;
            (2) for administrative expenses under the loan guarantee 
        program authorized by title XI of the Merchant Marine Act, 1936 
        (46 U.S.C. App. 1271 et seq.), $4,764,000; and
            (3) for ship disposal, $35,000,000, of which $2,000,000 
        shall be for decommissioning, removal, and disposal of the 
        nuclear reactor and hazardous materials on board the vessel 
        SAVANNAH.

SEC. 3502. EXTENSION OF AUTHORITY TO PROVIDE WAR RISK INSURANCE FOR 
              MERCHANT MARINE VESSELS.

    (a) Extension.-- Section 1214 of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1294), is amended by striking ``June 30, 2005'' and 
inserting ``December 31, 2010''.
    (b) Investment of Assets in Insurance Fund.--Section 1208(a) of 
such Act (46 U.S.C. App. 1288), is amended by striking the third 
sentence and inserting the following: ``The Secretary of Transportation 
may request the Secretary of the Treasury to invest such portion of the 
Fund as is not, in the judgment of the Secretary of Transportation, 
required to meet the current needs of the fund. Such investments shall 
be made by the Secretary of the Treasury in public debt securities of 
the United States, with maturities suitable to the needs of the fund, 
and bearing interest rates determined by the Secretary of the Treasury, 
taking into consideration current market yields on outstanding 
marketable obligations of the United States of comparable maturity.''.
            Amend the title so as to read: ``A bill to authorize 
        appropriations for fiscal year 2005 for military activities of 
        the Department of Defense, for military construction, and for 
        defense activities of the Department of Energy, to prescribe 
        personnel strengths for such fiscal year for the Armed Forces, 
        and for other purposes.''.




                                                 Union Calendar No. 278

108th CONGRESS

  2d Session

                               H. R. 4200

                          [Report No. 108-491]

_______________________________________________________________________

                                 A BILL

     To authorize appropriations for fiscal year 2005 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2005, and for other purposes.

_______________________________________________________________________

                              May 14, 2004

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