[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1047 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
108th CONGRESS
  1st Session
                                S. 1047

_______________________________________________________________________

                                 AN ACT


 
     To authorize appropriations for fiscal year 2004 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional defense committees defined.
                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical agents and munitions destruction, Defense.
Sec. 107. Defense health programs.
Sec. 108. Reduction in authorization.
                       Subtitle B--Army Programs

Sec. 111. CH-47 helicopter program.
Sec. 112. Rapid infusion pumps.
                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Navy programs.
Sec. 122. Pilot program for flexible funding of naval vessel 
                            conversions and overhauls.
                     Subtitle D--Air Force Programs

Sec. 131. Elimination of quantity limitations on multiyear procurement. 
                            authority for C-130J aircraft.
Sec. 132. B-1B Bomber aircraft.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
Sec. 203. Defense Inspector General.
Sec. 204. Defense health programs.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Prohibition on transfer of certain programs outside the 
                            Office of the Secretary of Defense.
Sec. 212. Objective force indirect fires program.
Sec. 213. Amount for Joint Engineering Data Management Information and 
                            Control System
Sec. 214. Human tissue engineering.
Sec. 215. Non-thermal imaging systems.
Sec. 216. Magnetic levitation.
Sec. 217. Composite sail test articles.
Sec. 218. Portable Mobile Emergency Broadband Systems.
Sec. 219. Boron energy cell technology.
Sec. 220. Modification of program element of short range air defense 
                            radar program of the Army.
Sec. 221. Amount for network centric operations.
                 Subtitle C--Ballistic Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Repeal of requirement for certain program elements for 
                            Missile Defense Agency activities.
Sec. 223. Oversight of procurement, performance criteria, and 
                            operational test plans for ballistic 
                            missile defense programs.
Sec. 224. Renewal of authority to assist local communities impacted by 
                            ballistic missile defense system test bed.
Sec. 225. Requirement for specific authorization of Congress for 
                            design, development, or deployment of hit-
                            to-kill ballistic missile interceptors.
Sec. 226. Prohibition on use of funds for nuclear armed interceptors in 
                            missile defense systems.
                       Subtitle D--Other Matters

Sec. 231. Global Research Watch program in the Office of the Director 
                            of Defense Research and Engineering.
Sec. 232. Defense Advanced Research Projects Agency biennial strategic 
                            plan.
Sec. 233. Enhancement of authority of Secretary of Defense to support 
                            science, mathematics, engineering, and 
                            technology education.
Sec. 234. Department of Defense high-speed network-centric and 
                            bandwidth expansion program.
Sec. 235. Department of Defense strategy for management of 
                            electromagnetic spectrum.
Sec. 236. Amount for Collaborative Information Warfare Network.
Sec. 237. Coproduction of Arrow ballistic missile defense system.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Emergency and morale communications programs.
Sec. 312. Commercial imagery industrial base.
Sec. 313. Information operations sustainment for land forces readiness 
                            of Army Reserve.
Sec. 314. Submittal of survey on perchlorate contamination at 
                            Department of Defense sites.
                  Subtitle C--Environmental Provisions

Sec. 321. General definitions applicable to facilities and operations.
Sec. 322. Military readiness and conservation of protected species.
Sec. 323. Arctic and Western Pacific Environmental Technology 
                            Cooperation Program.
Sec. 324. Participation in wetland mitigation banks in connection with 
                            military construction projects.
Sec. 325. Extension of authority to use environmental restoration 
                            account funds for relocation of a 
                            contaminated facility.
Sec. 326. Applicability of certain procedural and administrative 
                            requirements to restoration advisory 
                            boards.
Sec. 327. Expansion of authorities on use of vessels stricken from the 
                            Naval Vessel Register for experimental 
                            purposes.
Sec. 328. Transfer of vessels stricken from the Naval Vessel Register 
                            for use as artificial reefs.
Sec. 329. Salvage facilities.
Sec. 330. Task force on resolution of conflict between military 
                            training and endangered species protection 
                            at Barry M. Goldwater Range, Arizona.
Sec. 331. Public health assessment of exposure to perchlorate.
                 Subtitle D--Reimbursement Authorities

Sec. 341. Reimbursement of reserve component military personnel 
                            accounts for personnel costs of special 
                            operations reserve component personnel 
                            engaged in landmines clearance.
Sec. 342. Reimbursement of reserve component accounts for costs of 
                            intelligence activities support provided by 
                            reserve component personnel.
Sec. 343. Reimbursement rate for services provided to the Department of 
                            State.
                Subtitle E--Defense Dependents Education

Sec. 351. Assistance to local educational agencies that benefit 
                            dependents of members of the Armed Forces 
                            and Department of Defense civilian 
                            employees.
Sec. 352. Impact aid for children with severe disabilities.
                       Subtitle F--Other Matters

Sec. 361. Sale of Defense Information Systems Agency services to 
                            contractors performing the Navy-Marine 
                            Corps Intranet contract.
Sec. 362. Use of the Defense Modernization Account for life cycle cost 
                            reduction initiatives.
Sec. 363. Exemption of certain firefighting service contracts from 
                            prohibition on contracts for performance of 
                            firefighting functions.
Sec. 364. Technical amendment relating to termination of Sacramento 
                            Army Depot, Sacramento, California.
Sec. 365. Exception to competition requirement for workloads previously 
                            performed by depot-level activities.
Sec. 366. Support for transfers of decommissioned vessels and shipboard 
                            equipment.
Sec. 367. Aircraft for performance of aerial refueling mission.
Sec. 368. Contracting with employers of persons with disabilities.
Sec. 369. Repeal of calendar year limitations on use of commissary 
                            stores by certain Reserves and others.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Increased maximum percentage of general and flag officers on 
                            active duty authorized to be serving in 
                            grades above Brigadier General and Rear 
                            Admiral (lower half).
Sec. 403. Extension of certain authorities relating to management of 
                            numbers of general and flag officers in 
                            certain grades.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            Reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2004 limitations on non-dual status technicians.
       Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Revision of personnel strength authorization and accounting 
                            process.
Sec. 422. Exclusion of recalled retired members from certain strength 
                            limitations during period of war or 
                            national emergency.
              Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Retention of health professions officers to fulfill active 
                            duty service obligations following failure 
                            of selection for promotion.
Sec. 502. Eligibility for appointment as Chief of Army Veterinary 
                            Corps.
             Subtitle B--Reserve Component Personnel Policy

Sec. 511. Expanded authority for use of Ready Reserve in response to 
                            terrorism.
Sec. 512. Streamlined process for continuing officers on the Reserve 
                            Active-status list.
Sec. 513. National Guard officers on active duty in command of National 
                            Guard units.
             Subtitle C--Revision of Retirement Authorities

Sec. 521. Permanent authority to reduce three-year time-in-grade 
                            requirement for retirement in grade for 
                            officers in grades above Major and 
                            Lieutenant Commander.
                   Subtitle D--Education and Training

Sec. 531. Increased flexibility for management of senior level 
                            education and post-education assignments.
Sec. 532. Expanded educational assistance authority for cadets and 
                            midshipmen receiving ROTC scholarships.
Sec. 533. Eligibility and cost reimbursement requirements for personnel 
                            to receive instruction at the Naval 
                            Postgraduate School.
Sec. 534. Actions to address sexual misconduct at the service 
                            academies.
Sec. 535. Funding of education assistance enlistment incentives to 
                            facilitate national service through 
                            Department of Defense Education Benefits 
                            Fund.
                      Subtitle E--Military Justice

Sec. 551. Extended limitation period for prosecution of child abuse 
                            cases in courts-martial.
Sec. 552. Clarification of blood alcohol content limit for the offense 
                            under the Uniform Code of Military Justice 
                            of drunken operation of a vehicle, 
                            aircraft, or vessel.
                       Subtitle F--Other Matters

Sec. 561. High-tempo personnel management and allowance.
Sec. 562. Alternate initial military service obligation for persons 
                            accessed under direct entry program.
Sec. 563. Policy on concurrent deployment to combat zones of both 
                            military spouses of military families with 
                            minor children.
Sec. 564. Enhancement of voting rights of members of the uniformed 
                            services.
Sec. 565. Certain travel and transportation allowances for dependents 
                            of members of the Amed Frces who have 
                            committed dependent abuse.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.
Sec. 602. Revised annual pay adjustment process.
Sec. 603. Computation of basic pay rate for commissioned officers with 
                            prior enlisted or warrant officer service.
Sec. 604. Pilot program of monthly subsistence allowance for non-
                            scholarship Senior ROTC members committing 
                            to continue ROTC participation as 
                            sophomores.
Sec. 605. Basic allowance for housing for each member married to 
                            another member without dependents when both 
                            spouses are on sea duty.
Sec. 606. Increased rate of family separation allowance.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
                            authorities for Reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
                            authorities for certain health care 
                            professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
                            nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
                            authorities.
Sec. 615. Special pay for reserve officers holding positions of unusual 
                            responsibility and of critical nature.
Sec. 616. Assignment incentive pay for service in Korea.
Sec. 617. Increased maximum amount of reenlistment bonus for active 
                            members.
Sec. 618. Payment of Selected Reserve reenlistment bonus to members of 
                            Selected Reserve who are mobilized.
Sec. 619. Increased rate of hostile fire and imminent danger special 
                            pay.
Sec. 620. Availability of hostile fire and imminent danger special pay 
                            for reserve component members on inactive 
                            duty.
Sec. 621. Expansion of overseas tour extension incentive program to 
                            officers.
Sec. 622. Eligibility of warrant officers for accession bonus for new 
                            officers in critical skills.
Sec. 623. Incentive bonus for conversion to military occupational 
                            specialty to ease personnel shortage.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Shipment of privately owned motor vehicle within continental 
                            United States.
Sec. 632. Payment or reimbursement of student baggage storage costs for 
                            dependent children of members stationed 
                            overseas.
Sec. 633. Contracts for full replacement value for loss or damage to 
                            personal property transported at Government 
                            expense.
Sec. 634. Transportation of dependents to presence of members of the 
                            Armed Forces who are retired for illness or 
                            injury incurred in active duty.
             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Special rule for computation of retired pay base for 
                            commanders of combatant commands.
Sec. 642. Survivor Benefit Plan annuities for surviving spouses of 
                            Reserves not eligible for retirement who 
                            die from a cause incurred or aggravated 
                            while on inactive-duty training.
Sec. 643. Increase in death gratuity payable with respect to deceased 
                            members of the Armed Forces.
Sec. 644. Full payment of both retired pay and compensation to disabled 
                            military retirees.
                       Subtitle E--Other Matters

Sec. 651. Retention of accumulated leave.
Sec. 652. GAO study.
 Subtitle F--Naturalization and Family Protection for Military Members

Sec. 661. Short title.
Sec. 662. Requirements for naturalization through service in the Armed 
                            Forces of the United States.
Sec. 663. Naturalization benefits for members of the Selected Reserve 
                            of the Ready Reserve.
Sec. 664. Extension of posthumous benefits to surviving spouses, 
                            children, and parents.
Sec. 665. Effective date.
                         TITLE VII--HEALTH CARE

Sec. 701. Medical and dental screening for members of Selected Reserve 
                            units alerted for mobilization.
Sec. 702. TRICARE beneficiary counseling and assistance coordinators 
                            for Reserve component beneficiaries.
Sec. 703. Extension of authority to enter into personal services 
                            contracts for health care services to be 
                            performed at locations outside medical 
                            treatment facilities.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
                            Fund valuations and contributions.
Sec. 705. Surveys on continued viability of TRICARE standard.
Sec. 706. Elimination of limitation on covered beneficiaries' 
                            eligibility to receive health care services 
                            from former Public Health Service treatment 
                            facilities.
Sec. 707. Modification of structure and duties of Department of 
                            Veterans Affairs-Department of Defense 
                            Health Executive Committee.
Sec. 708. Eligibility of reserve officers for health care pending 
                            orders to active duty following 
                            commissioning.
Sec. 709. Reimbursement of covered beneficiaries for certain travel 
                            expenses relating to specialized dental 
                            care.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Temporary emergency procurement authority to facilitate 
                            defense against or recovery from terrorism 
                            or nuclear, biological, chemical, or 
                            radiological attack.
Sec. 802. Special temporary contract closeout authority.
Sec. 803. Defense acquisition program management for use of radio 
                            frequency spectrum.
Sec. 804. National Security Agency Modernization Program.
Sec. 805. Quality control in procurement of aviation critical safety 
                            items and related services.
                  Subtitle B--Procurement of Services

Sec. 811. Expansion and extension of incentive for use of performance-
                            based contracts in procurements of 
                            services.
Sec. 812. Public-private competitions for the performance of Department 
                            of Defense functions.
Sec. 813. Authority to enter into personal services contracts.
             Subtitle C--Major Defense Acquisition Programs

Sec. 821. Certain weapons-related prototype projects.
Sec. 822. Applicability of Clinger-Cohen Act policies and requirements 
                            to equipment integral to a weapon or weapon 
                            system.
Sec. 823. Applicability of requirement for reports on maturity of 
                            technology at initiation of major defense 
                            acquisition programs.
                Subtitle D--Domestic Source Requirements

Sec. 831. Exceptions to Berry amendment for contingency operations and 
                            other urgent situations.
Sec. 832. Inapplicability of Berry amendment to procurements of waste 
                            and byproducts of cotton and wool fiber for 
                            use in the production of propellants and 
                            explosives.
Sec. 833. Waiver authority for domestic source or content requirements.
Sec. 834. Buy American exception for ball bearings and roller bearings 
                            used in foreign products.
         Subtitle E--Defense Acquisition and Support Workforce

Sec. 841. Flexibility for management of the defense acquisition and 
                            support workforce.
Sec. 842. Limitation and reinvestment authority relating to reduction 
                            of the defense acquisition and support 
                            workforce.
Sec. 843. Clarification and revision of authority for demonstration 
                            project relating to certain acquisition 
                            personnel management policies and 
                            procedures.
     Subtitle F--Federal Support for Procurement of Anti-Terrorism 
        Technologies and Services by State and Local Governments

Sec. 851. Application of indemnification authority to State and local 
                            government contractors.
Sec. 852. Federal support for enhancement of State and local anti-
                            terrorism response capabilities.
Sec. 853. Definitions.
     Subtitle G--General Contracting Authorities, Procedures, and 
                     Limitations, and Other Matters

Sec. 861. Limited acquisition authority for Commander of United States 
                            Joint Forces Command.
Sec. 862. Operational test and evaluation.
Sec. 863. Multiyear task and delivery order contracts.
Sec. 864. Repeal of requirement for contractor assurances regarding the 
                            completeness, accuracy, and contractual 
                            sufficiency of technical data provided by 
                            the contractor.
Sec. 865. Reestablishment of authority for short-term leases of real or 
                            personal property across fiscal years.
Sec. 866. consolidation of contract requirements.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department Officers and Agencies

Sec. 901. Clarification of responsibility of military departments to 
                            support combatant commands.
Sec. 902. Redesignation of National Imagery and Mapping Agency as 
                            National Geospatial-Intelligence Agency.
Sec. 903. Standards of conduct for members of the Defense Policy Board 
                            and the Defense Science Board.
                      Subtitle B--Space Activities

Sec. 911. Coordination of space science and technology activities of 
                            the Department of Defense.
Sec. 912. Space personnel cadre.
Sec. 913. Policy regarding assured access to space for United States 
                            national security payloads.
Sec. 914. Pilot program to provide space surveillance network services 
                            to entities outside the United States 
                            Government.
Sec. 915. Content of biennial Global Positioning System report.
                       Subtitle C--Other Matters

Sec. 921. Combatant Commander Initiative Fund.
Sec. 922. Authority for the Marine Corps University to award the degree 
                            of master of operational studies.
Sec. 923. Report on changing roles of United States Special Operations 
                            Command.
Sec. 924. Integration of Defense intelligence, surveillance, and 
                            reconnaissance capabilities.
Sec. 925. Establishment of the National Guard of the Northern Mariana 
                            Islands.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
                            fiscal year 2004.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
                            2003.
           Subtitle B--Improvement of Travel Card Management

Sec. 1011. Mandatory disbursement of travel allowances directly to 
                            travel card creditors.
Sec. 1012. Determinations of creditworthiness for issuance of Defense 
                            travel card.
Sec. 1013. Disciplinary actions and assessing penalties for misuse of 
                            Defense travel cards.
                          Subtitle C--Reports

Sec. 1021. Elimination and revision of various reporting requirements 
                            applicable to the Department of Defense.
Sec. 1022. Global strike plan.
Sec. 1023. Report on the conduct of Operation Iraqi Freedom.
Sec. 1024. Report on mobilization of the reserves.
Sec. 1025. Study of beryllium industrial base.
                       Subtitle D--Other Matters

Sec. 1031. Blue forces tracking initiative.
Sec. 1032. Loan, donation, or exchange of obsolete or surplus property.
Sec. 1033. Acceptance of gifts and donations.
Sec. 1034. Provision of living quarters for certain students working at 
                            National Security Agency laboratory.
Sec. 1035. Protection of operational files of the National Security 
                            Agency.
Sec. 1036. Transfer of administration of National Security Education 
                            Program to Director of Central 
                            Intelligence.
Sec. 1037. Report on use of unmanned aerial vehicles for support of 
                            homeland security missions.
Sec. 1038. Conveyance of surplus T-37 aircraft to Air Force Aviation 
                            Heritage Foundation, Incorporated.
Sec. 1039. Sense of Senate on reward for information leading to 
                            resolution of status of members of the 
                            Armed Forces who remain missing in action.
Sec. 1040. Advanced shipbuilding enterprise.
Sec. 1041. Air fares for members of Armed Forces.
Sec. 1042. Sense of Senate on deployment of airborne chemical agent 
                            monitoring systems at chemical stockpile 
                            disposal sites in the united states.
Sec. 1043. Federal assistance for State programs under the National 
                            Guard Challenge Program.
Sec. 1044. Sense of Senate on reconsideration of decision to terminate 
                            border seaport inspection duties of 
                            National Guard under National Guard drug 
                            interdiction and counter-drug mission.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Authority to employ civilian faculty members at the Western 
                            Hemisphere Institute for Security 
                            Cooperation.
Sec. 1102. Pay authority for critical positions.
Sec. 1103. Extension, expansion, and revision of authority for 
                            experimental personnel program for 
                            scientific and technical personnel.
Sec. 1104. Transfer of personnel investigative functions and related 
                            personnel of the Department of Defense.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to use funds for payment of costs of attendance of 
                            foreign visitors under Regional Defense 
                            Counterterrorism Fellowship Program.
Sec. 1202. Availability of funds to recognize superior noncombat 
                            achievements or performance of members of 
                            friendly foreign forces and other foreign 
                            nationals.
Sec. 1203. Check cashing and exchange transactions for foreign 
                            personnel in alliance or coalition forces.
Sec. 1204. Clarification and extension of authority to provide 
                            assistance for international 
                            nonproliferation activities.
Sec. 1205. Reimbursable costs relating to national security controls on 
                            satellite export licensing.
Sec. 1206. Annual report on the NATO Prague capabilities commitment and 
                            the NATO Response Force.
Sec. 1207. Expansion and extension of authority to provide additional 
                            support for counter-drug activities.
Sec. 1208. Use of funds for unified counterdrug and counterterrorism 
                            campaign in Colombia.
Sec. 1209. Competitive award of contracts for Iraqi reconstruction.
  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. Annual certifications on use of facilities being constructed 
                            for Cooperative Threat Reduction projects 
                            or activities.
Sec. 1304. Authority to use Cooperative Threat Reduction funds outside 
                            the former Soviet Union.
Sec. 1305. One-year extension of inapplicability of certain conditions 
                            on use of funds for chemical weapons 
                            destruction.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for procurement for the Army as follows:
            (1) For aircraft, $2,158,485,000.
            (2) For missiles, $1,553,462,000.
            (3) For weapons and tracked combat vehicles, 
        $1,658,504,000.
            (4) For ammunition, $1,363,305,000.
            (5) For other procurement, $4,266,027,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2004 for procurement for the Navy as follows:
            (1) For aircraft, $8,996,948,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,046,821,000.
            (3) For shipbuilding and conversion, $11,707,984,000.
            (4) For other procurement, $4,744,443,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2004 for procurement for the Marine Corps in the amount 
of $1,089,599,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2004 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $924,355,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,082,760,000.
            (2) For ammunition, $1,284,725,000.
            (3) For missiles, $4,394,439,000.
            (4) For other procurement, $11,630,659,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for Defense-wide procurement in the amount of $3,884,106,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,100,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for the Office of the 
Secretary of Defense for fiscal year 2004 the amount of $1,530,261,000 
for--
            (1) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $327,826,000.

SEC. 108. REDUCTION IN AUTHORIZATION.1

    The total amount authorized to be appropriated under section 104 is 
hereby reduced by $3,300,000, with $2,100,000 of the reduction to be 
allocated to Special Operations Forces rotary upgrades and $1,200,000 
to be allocated to Special Operations Forces operational enhancements.

                       Subtitle B--Army Programs

SEC. 111. CH-47 HELICOPTER PROGRAM.

    (a) Requirement for Study.--The Secretary of the Army shall study 
the feasibility and the costs and benefits of providing for the 
participation of a second source in the production of gears for the 
helicopter transmissions incorporated into CH-47 helicopters being 
procured by the Army with funds authorized to be appropriated by this 
Act.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary shall submit a report on the results of the 
study to Congress.

SEC. 112. RAPID INFUSION PUMPS.

    (a) Availability of Funds.--(1) Of the amount authorized to be 
appropriated by section 101(5) for other procurement, Army, $2,000,000 
may be available for medical equipment for the procurement of rapid 
infusion (IV) pumps.
    (2) The total amount authorized to be appropriated under section 
101(5) is hereby increased by $2,000,000.
    (b) Offset.--Of the amount authorized to be appropriated by section 
301(1) for operation and maintenance, Army, the amount available is 
hereby reduced by $2,000,000.

                       Subtitle C--Navy Programs

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR NAVY PROGRAMS.

    (a) Authority.--Beginning with the fiscal year 2004 program year, 
the Secretary of the Navy may, in accordance with section 2306b of 
title 10, United States Code, enter into a multiyear contract for 
procurement for the following programs:
            (1) The F/A-18 aircraft program.
            (2) The E-2C aircraft program.
            (3) The Tactical Tomahawk Cruise Missile program, subject 
        to subsection (b).
            (4) The Virginia class submarine, subject to subsection 
        (c).
            (5) The Phalanx Close In Weapon System program, Block 1B.
    (b) Tactical Tomahawk Cruise Missiles.--The Secretary may not enter 
into a multiyear contract for the procurement of Tactical Tomahawk 
Cruise Missiles under subsection (a)(3) until the Secretary determines 
on the basis of operational testing that the Tactical Tomahawk Cruise 
Missile is effective for fleet use.
    (c) Virginia Class Submarines.--Paragraphs (2)(A), (3), and (4) of 
section 121(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1648) shall apply in the 
exercise of authority to enter into a multiyear contract for the 
procurement of Virginia class submarines under subsection (a)(4).

SEC. 122. PILOT PROGRAM FOR FLEXIBLE FUNDING OF NAVAL VESSEL 
              CONVERSIONS AND OVERHAULS.

    (a) Establishment.--The Secretary of the Navy may carry out a pilot 
program of flexible funding of conversions and overhauls of cruisers of 
the Navy in accordance with this section.
    (b) Authority.--Under the pilot program the Secretary of the Navy 
may, subject to subsection (d), transfer appropriated funds described 
in subsection (c) to the appropriation for the Navy for procurement for 
shipbuilding and conversion for any fiscal year to continue to fund any 
conversion or overhaul of a cruiser of the Navy that was initially 
funded with the appropriation to which transferred.
    (c) Funds Available for Transfer.--The appropriations available for 
transfer under this section are the appropriations to the Navy for any 
fiscal year after fiscal year 2003 and before fiscal year 2013 for the 
following purposes:
            (1) For procurement, as follows:
                    (A) For shipbuilding and conversion.
                    (B) For weapons procurement.
                    (C) For other procurement.
            (2) For operation and maintenance.
    (d) Limitations.--(1) A transfer may be made with respect to a 
cruiser under this section only to meet the following requirements:
            (A) Any increase in the size of the workload for conversion 
        or overhaul to meet existing requirements for the cruiser.
            (B) Any new conversion or overhaul requirement resulting 
        from a revision of the original baseline conversion or overhaul 
        program for the cruiser.
    (2) A transfer may not be made under this section before the date 
that is 30 days after the date on which the Secretary of the Navy 
transmits to the congressional defense committees a written 
notification of the intended transfer. The notification shall include 
the following matters:
            (A) The purpose of the transfer.
            (B) The amounts to be transferred.
            (C) Each account from which the funds are to be 
        transferred.
            (D) Each program, project, or activity from which the funds 
        are to be transferred.
            (E) Each account to which the funds are to be transferred.
            (F) A discussion of the implications of the transfer for 
        the total cost of the cruiser conversion or overhaul program 
        for which the transfer is to be made.
    (e) Merger of Funds.--Amounts transferred to an appropriation with 
respect to the conversion or overhaul of a cruiser under this section 
shall be credited to and merged with other funds in the appropriation 
to which transferred and shall be available for the conversion or 
overhaul of such cruiser for the same period as the appropriation with 
which merged.
    (f) Relationship to Other Transfer Authority.--The authority to 
transfer funds under this section is in addition to any other authority 
provided by law to transfer appropriated funds and is not subject to 
any restriction, limitation, or procedure that is applicable to the 
exercise of any such other authority.
    (g) Final Report.--Not later than October 1, 2011, the Secretary of 
the Navy shall submit to the congressional defense committees a report 
containing the Secretary's evaluation of the efficacy of the authority 
provided under this section.
    (h) Termination of Program.--No transfer may be made under this 
section after September 30, 2012.

                     Subtitle D--Air Force Programs

SEC. 131. ELIMINATION OF QUANTITY LIMITATIONS ON MULTIYEAR PROCUREMENT 
              AUTHORITY FOR C-130J AIRCRAFT.

    Section 131(a) of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2475) is amended by 
striking ``up to 40 C-130J aircraft in the CC-130J configuration and up 
to 24 C-130J aircraft in the KC-130J configuration'' and inserting ``C-
130J aircraft in the CC-130J and KC-130J configurations''.

SEC. 132. B-1B BOMBER AIRCRAFT.

    (a) Amount for Aircraft.--(1) Of the amount authorized to be 
appropriated under section 103(1), $20,300,000 may be available to 
reconstitute the fleet of B-1B bomber aircraft through modifications of 
23 B-1B bomber aircraft otherwise scheduled to be retired in fiscal 
year 2003 that extend the service life of such aircraft and maintain 
or, as necessary, improve the capabilities of such aircraft for mission 
performance.
    (2) The Secretary of the Air Force shall submit to the 
congressional defense committees a report that specifies the amounts 
necessary to be included in the future-years defense program to 
reconstitute the B-1B bomber aircraft fleet of the Air Force.
    (b) Adjustment.--(1) The total amount authorized to be appropriated 
under section 103(1) is hereby increased by $20,300,000.
    (2) The total amount authorized to be appropriated under section 
104 is hereby reduced by $20,300,000, with the amount of the reduction 
to be allocated to Special Operations Forces operational enhancements.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $9,012,500,000.
            (2) For the Navy, $14,590,284,000.
            (3) For the Air Force, $20,382,407,000.
            (4) For Defense-wide activities, $19,135,679,000, of which 
        $286,661,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

    (a) Amount for Projects.--Of the total amount authorized to be 
appropriated by section 201, $10,705,561,000 shall be available for 
science and technology projects.
    (b) Science and Technology Defined.--In this section, the term 
``science and technology project'' means work funded in program 
elements for defense research, development, test, and evaluation under 
Department of Defense budget activities 1, 2, or 3.

SEC. 203. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for research, development, test, and evaluation for the Inspector 
General of the Department of Defense in the amount of $300,000.

SEC. 204. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the Department of Defense for research, development, test, and 
evaluation for carrying out health care programs, projects, and 
activities of the Department of Defense in the total amount of 
$65,796,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. PROHIBITION ON TRANSFER OF CERTAIN PROGRAMS OUTSIDE THE 
              OFFICE OF THE SECRETARY OF DEFENSE.

    The Secretary of Defense may not designate any official outside the 
Office of the Secretary of Defense to exercise authority for 
programming or budgeting for any of the following programs:
            (1) Explosive demilitarization technology (program element 
        0603104D8Z).
            (2) High energy laser research initiative (program element 
        0601108D8Z).
            (3) High energy laser research (program element 
        0602890D8Z).
            (4) High energy laser advanced development (program element 
        0603924D8Z).
            (5) University research initiative (program element 
        0601103D8Z).

SEC. 212. OBJECTIVE FORCE INDIRECT FIRES PROGRAM.

    (a) Distinct Program Element.--The Secretary of Defense shall 
ensure that, not later than October 1, 2003, the Objective Force 
Indirect Fires Program is being planned, programmed, and budgeted for 
as a distinct program element and that funds available for such program 
are being administered consistent with the budgetary status of the 
program as a distinct program element.
    (b) Prohibition.--Effective on October 1, 2003, the Objective Force 
Indirect Fires Program may not be planned, programmed, and budgeted 
for, and funds available for such program may not be administered, in 
one program element in combination with the Armored Systems 
Modernization program.
    (c) Certification Requirement.--At the same time that the President 
submits the budget for fiscal year 2005 to Congress under section 
1105(a) of title 31, United States Code, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a written certification that the Objective Force 
Indirect Fires Program is being planned, programmed, and budgeted for, 
and funds available for such program are being administered, in 
accordance with the requirement in subsection (a) and the prohibition 
in subsection (b).

SEC. 213. AMOUNT FOR JOINT ENGINEERING DATA MANAGEMENT INFORMATION AND 
              CONTROL SYSTEM.

    (a) Navy RDT&E.--The amount authorized to be appropriated under 
section 201(2) is hereby increased by $2,500,000. Such amount may be 
available for the Joint Engineering Data Management Information and 
Control System (JEDMICS).
    (b) Navy Procurement.--The amount authorized to be appropriated 
under section 102(a)(4) is hereby reduced by $2,500,000, to be derived 
from the amount provided for the Joint Engineering Data Management 
Information and Control System (JEDMICS).

SEC. 214. HUMAN TISSUE ENGINEERING.

    (a) Amount.--Of the amount authorized to be appropriated under 
section 201(1), $1,700,000 may be available in PE 0602787 for human 
tissue engineering. The total amount authorized to be appropriated 
under section 201(1) is hereby increased by $1,700,000.
    (b) Offsets.--Of the amount authorized to be appropriated under 
section 301(4) for Operations and Maintenance, Air Force is hereby 
reduced by $1,700,000.

SEC. 215. NON-THERMAL IMAGING SYSTEMS.

    (a) Availability of Funds.--Of the amount authorized to be 
appropriated by section 201(2) for research, development, test, and 
evaluation for the Navy and available for Power Projection Applied 
Research (PE 602114N), $2,000,000 may be available for research and 
development of non-thermal imaging systems. The total amount authorized 
to be appropriated under section 201(2) is hereby increased by 
$2,000,000
    (b) Offsets.--The amount authorized to be appropriated by section 
301(4) for Operation and Maintenance, Air Force is hereby reduced by 
$1,000,000 and the amount authorized to be appropriated by section 104 
for Defense-wide activities, is hereby reduced by $1,000,000 for 
Special Operations Forces rotary wing upgrades.

SEC. 216. MAGNETIC LEVITATION.

    (a) Increase in Authorization of Appropriations.--The amount 
authorized to be appropriated by section 201(3) for research, 
development, test, and evaluation for the Air Force is hereby increased 
by $2,100,000, with the amount of the increase to be allocated to Major 
Test and Evaluation Investment (PE 0604759F).
    (b) Availability.--(1) Of the amount authorized to be appropriated 
by section 201(3) for research, development, test, and evaluation for 
the Air Force and available for Major Test and Evaluation Investment, 
as increased by subsection (a), $2,100,000 may be available for 
research and development on magnetic levitation technologies at the 
high speed test track at Holloman Air Force Base, New Mexico.
    (2) The amount available under paragraph (1) for the purpose 
specified in that paragraph is in addition to any other amounts 
available under this Act for that purpose.
    (c) Offset.--The amount authorized to be appropriated by section 
301(4) for Operation and Maintenance, Air Force, is hereby reduced by 
$2,100,000.

SEC. 217. COMPOSITE SAIL TEST ARTICLES.

    (a) Availability of Funds.--The total amount authorized to be 
appropriated under section 201(2) for Virginia-class submarine 
development, may be increased by $2,000,000 for the development and 
fabrication of composite sail test articles for incorporation into 
designs for future submarines.
    (b) Offset.--The amount authorized to be appropriated under section 
104 may be reduced by $2,000,000, to be derived from the amount 
provided for Special Operations Forces operational enhancements.

SEC. 218. PORTABLE MOBILE EMERGENCY BROADBAND SYSTEMS.

    (a) Availability of Funds.--(1) Of the amount authorized to be 
appropriated by section 201(1) for research, development, test, and 
evaluation for the Army, $2,000,000 may be available for the 
development of Portable Mobile Emergency Broadband Systems (MEBS).
    (2) The total amount authorized to be appropriated under section 
201(1) is hereby increased by $2,000,000.
    (b) Offset.--The amount authorized to be appropriated by section 
104 for procurement, Defense-wide activities, Special Operations Forces 
operational enhancements is hereby reduced by $2,000,000.

SEC. 219. BORON ENERGY CELL TECHNOLOGY.

    (a) Increase in RDT&E, Air Force.--The amount authorized to be 
appropriated by section 201(3) for research, development, test, and 
evaluation for the Air Force is hereby increased by $5,000,000.
    (b) Availability for Boron Energy Cell Technology.--(1) of the 
amount authorized to be appropriated by section 201(3) for research, 
development, test, and evaluation for the Air Force, as increased by 
subsection (a), $5,000,000 may be available for research, development, 
test, and evaluation on boron energy cell technology.
    (2) The amount available under paragraph (1) for the purpose 
specified in that paragraph is in addition to any other amounts 
available under this Act for that purpose.
    (c) Offset from Operation and Maintenance, Army.--The amount 
authorized to be appropriated by section 301(1), for operation and 
maintenance for the Army is hereby reduced by $5,000,000.

SEC. 220. MODIFICATION OF PROGRAM ELEMENT OF SHORT RANGE AIR DEFENSE 
              RADAR PROGRAM OF THE ARMY.

    The program element of the short range air defense radar program of 
the Army may be modified from Program Element 602303A (Missile 
Technology) to Program Element 603772A (Advanced Tactical Computer 
Science and Sensor Technology).

SEC. 221. AMOUNT FOR NETWORK CENTRIC OPERATIONS.

    Of the amount authorized to be appropriated under section 201(1) 
for historically Black colleges and universities, $1,000,000 may be 
used for funding the initiation of a capability in such institutions to 
support the network centric operations of the Department of Defense.

                 Subtitle C--Ballistic Missile Defense

SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Funds authorized to be appropriated under section 201(4) for the 
Missile Defense Agency may be used for the development and fielding of 
an initial set of ballistic missile defense capabilities.

SEC. 222. REPEAL OF REQUIREMENT FOR CERTAIN PROGRAM ELEMENTS FOR 
              MISSILE DEFENSE AGENCY ACTIVITIES.

    Section 223 of title 10, United States Code is amended--
            (1) by striking subsection (a);
            (2) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively; and
            (3) in subsection (b), as so redesignated, by striking 
        ``specified in subsection (a)''.

SEC. 223. OVERSIGHT OF PROCUREMENT, PERFORMANCE CRITERIA, AND 
              OPERATIONAL TEST PLANS FOR BALLISTIC MISSILE DEFENSE 
              PROGRAMS.

    (a) Procurement.--(1) Chapter 9 of title 10, United States Code, is 
amended by inserting after section 223 the following new section:
``Sec. 223a. Ballistic missile defense programs: procurement
    ``(a) Budget Justification Materials.--(1) In the budget 
justification materials submitted to Congress in support of the 
Department of Defense budget for any fiscal year (as submitted with the 
budget of the President under section 1105(a) of title 31), the 
Secretary of Defense shall specify, for each ballistic missile defense 
system element, the following information:
            ``(A) For each ballistic missile defense element for which 
        the Missile Defense Agency in engaged in planning for 
        production and initial fielding, the following information:
                    ``(i) The production rate capabilities of the 
                production facilities planned to be used.
                    ``(ii) The potential date of availability of the 
                element for initial fielding.
                    ``(iii) The expected costs of the initial 
                production and fielding planned for the element.
                    ``(iv) The estimated date on which the 
                administration of the acquisition of the element is to 
                be transferred to the Secretary of a military 
                department.
            ``(B) The performance criteria prescribed under subsection 
        (b).
    ``(2) The information provided under paragraph (1) shall be 
submitted in an unclassified form, but may include a classified annex 
as necessary.
    ``(b) Performance Criteria.--(1) The Director of the Missile 
Defense Agency shall prescribe measurable performance criteria for all 
planned development phases (known as ``blocks'') of the ballistic 
missile defense system and each of its elements. The performance 
criteria may be updated as necessary while the program and any follow-
on program remain in development.
    ``(2) The performance criteria prescribed for a block under 
paragraph (1) shall include one or more criteria that specifically 
describe, in relation to that block, the intended effectiveness against 
foreign adversary capabilities, including a description of 
countermeasures, for which the system is being designed as a defense.
    ``(c) Operational Test Plans.--The Director of Operational Test and 
Evaluation, in consultation with the Director of the Missile Defense 
Agency, shall establish and approve for each ballistic missile defense 
system element appropriate plans and schedules for operational testing. 
The test plans shall include an estimate of when successful performance 
of the element in accordance with each performance criterion is to be 
verified by operational testing. The test plans for a program may be 
updated as necessary while the program and any follow-on program remain 
in development.
    ``(d) Annual Testing Progress.-- The annual report of the Director 
of Operational Test and Evaluation required under section 232(h) of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 10 U.S.C. 2431 note) shall include the following:
            ``(1) The test plans established under subsection (c); and
            ``(2) An assessment of the progress being made toward 
        verifying through operational testing the performance of the 
        system under a missile defense system program as measured by 
        the performance criteria prescribed for the program under 
        subsection (b).
    ``(e) Future-Years Defense Program.--The future-years defense 
program submitted to Congress each year under section 221 of this title 
shall include an estimate of the amount necessary for procurement for 
each ballistic missile defense system element, together with a 
discussion of the underlying factors and reasoning justifying the 
estimate.''.
    (2) The table of contents at the beginning of such chapter 9 is 
amended by inserting after the item relating to section 223 the 
following new item:

``223a. Ballistic missile defense programs: procurement.''.
    (b) Exception for First Assessment.--The first assessment required 
under subsection (d) of section 223a of title 10, United States Code 
(as added by subsection (a)), shall be an interim assessment submitted 
to the Committees on Armed Services of the Senate and the House of 
Representatives not later than July 31, 2004.

SEC. 224. RENEWAL OF AUTHORITY TO ASSIST LOCAL COMMUNITIES IMPACTED BY 
              BALLISTIC MISSILE DEFENSE SYSTEM TEST BED.

    Section 235(b) of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1041) is amended--
            (1) in paragraph (1), by inserting ``, 2004, 2005, or 
        2006'' after ``for fiscal year 2002''; and
            (2) by adding at the end the following new paragraph:
    ``(3) In the budget justification materials for the Department of 
Defense that the Secretary of Defense submits to Congress in connection 
with the submission of the budget for fiscal year 2004, the budget for 
fiscal year 2005, and the budget for fiscal year 2006 under section 
1105(a) of title 31, United States Code, the Secretary shall include a 
description of the community assistance projects that are to be 
supported in such fiscal year under this subsection and an estimate of 
the total cost of each such project.''.

SEC. 225. REQUIREMENT FOR SPECIFIC AUTHORIZATION OF CONGRESS FOR 
              DESIGN, DEVELOPMENT, OR DEPLOYMENT OF HIT-TO-KILL 
              BALLISTIC MISSILE INTERCEPTORS.

    (a) No amount authorized to be appropriated by this Act for 
research, development, test, and evaluation, Defense-wide, and 
available for Ballistic Missile Defense System Interceptors (PE 
060886C), may be obligated or expended to design, develop, or deploy 
hit-to-kill interceptors or other weapons for placement in space unless 
specifically authorized by Congress.
    (b) Of the amounts authorized to be appropriated for fiscal year 
2004 for Ballistic Missile Defense System Interceptors, $14,000,000 is 
available for research and concept definition for the space based test 
bed.

SEC. 226. PROHIBITION ON USE OF FUNDS FOR NUCLEAR ARMED INTERCEPTORS IN 
              MISSILE DEFENSE SYSTEMS.

    No funds authorized to be appropriated for the Department of 
Defense by this Act may be obligated or expended for research, 
development, test, and evaluation, procurement, or deployment of 
nuclear armed interceptors in a missile defense system.

                       Subtitle D--Other Matters

SEC. 231. GLOBAL RESEARCH WATCH PROGRAM IN THE OFFICE OF THE DIRECTOR 
              OF DEFENSE RESEARCH AND ENGINEERING.

    Section 139a of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) The Director shall carry out a Global Research Watch 
program.
    ``(2) The goals of the program are as follows:
            ``(A) To monitor and analyze the basic and applied research 
        activities and capabilities of foreign nations in areas of 
        military interest, including allies and competitors.
            ``(B) To provide standards for comparison and comparative 
        analysis of research capabilities of foreign nations in 
        relation to the research capabilities of the United States.
            ``(C) To assist Congress and Department of Defense 
        officials in making investment decisions for research in 
        technical areas where the United States may not be the global 
        leader.
            ``(D) To identify areas where significant opportunities for 
        cooperative research may exist.
            ``(E) To coordinate and promote the international 
        cooperative research and analysis activities of each of the 
        armed forces and Defense Agencies.
            ``(F) To establish and maintain an electronic database on 
        international research capabilities, comparative assessments of 
        capabilities, cooperative research opportunities, and ongoing 
        cooperative programs.
    ``(3) The program shall be focused on research and technologies at 
a technical maturity level equivalent to Department of Defense basic 
and applied research programs.
    ``(4) The Director shall coordinate the program with the 
international cooperation and analysis activities of the military 
departments and Defense Agencies.
    ``(5) Information in electronic databases of the Global Research 
Watch program shall be maintained in unclassified form and, as 
determined necessary by the Director, in classified form in such 
databases.''.

SEC. 232. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY BIENNIAL STRATEGIC 
              PLAN.

    (a) Requirement for Plan.--(1) Subchapter II of chapter 8 of title 
10, United States Code, is amended by inserting after section 201 the 
following new section:
``Sec. 202. Defense Advanced Research Projects Agency: biennial 
              strategic plan
    ``(a) Requirement for Strategic Plan.--(1) Every other year, and in 
time for submission to Congress under subsection (b), the Director of 
the Defense Advanced Research Projects Agency shall prepare a strategic 
plan for the activities of the agency.
    ``(2) The strategic plan shall include the following matters:
            ``(A) The long-term strategic goals of the agency.
            ``(B) Identification of the research programs that 
        support--
                    ``(i) achievement of the strategic goals; and
                    ``(ii) exploitation of opportunities that hold the 
                potential for yielding significant military benefits.
            ``(C) The connection of agency activities and programs to 
        activities and missions of the armed forces.
            ``(D) A technology transition strategy for agency programs.
            ``(E) An assessment of agency policies on the management, 
        organization, and personnel of the agency.
    ``(b) Submission of Plan to Congress.--The Secretary of Defense 
shall submit the latest biennial strategic plan of the Defense Advanced 
Research Projects Agency to Congress at the same time that the 
President submits the budget for an even-numbered year to Congress 
under section 1105(a) of title 31.
    ``(c) Review Panel.--(1) The Secretary of Defense shall establish a 
panel to advise the Director of the Defense Research Projects Agency on 
the preparation, content, and execution of the biennial strategic plan.
    ``(2) The panel shall be composed of members appointed by the 
Secretary of Defense from among persons who are experienced and 
knowledgeable in research activities of potential military value, as 
follows:
            ``(A) The principal staff assistant to the Director of the 
        Defense Advanced Research Projects Agency, who shall serve as 
        chairman of the panel.
            ``(B) Three senior officers of the armed forces.
            ``(C) Three persons who are representative of--
                    ``(i) private industry;
                    ``(ii) academia; and
                    ``(iii) federally funded research and development 
                centers or similar nongovernmental organizations.
    ``(3) The members appointed under subparagraphs (B) and (C) of 
paragraph (2) shall be appointed for a term of two years. The members 
may be reappointed, except that every two years the Secretary of 
Defense shall appoint a replacement for at least one of the members 
appointed under such subparagraph (B) and a replacement for at least 
one of the members appointed under such subparagraph (C). Any vacancy 
in the membership of the panel shall be filled in the same manner as 
the original appointment.
    ``(4) The panel shall meet at the call of the Chairman.
    ``(5) The panel shall provide the Director of the Defense Advanced 
Research Projects Agency with the following support:
            ``(A) Objective advice on--
                    ``(i) the strategic plan; and
                    ``(ii) the appropriate mix of agency supported 
                research activities in technologies, including system-
                level technologies, to address new and evolving 
                national security requirements and interests, and to 
                fulfill the technology development mission of the 
                agency.
            ``(B) An assessment of the extent to which the agency is 
        successful in--
                    ``(i) supporting missions of the armed forces; and
                    ``(ii) achieving the transition of technologies 
                into acquisition programs of the military departments.
            ``(C) An assessment of agency policies on the management, 
        organization, and personnel of the agency, together with 
        recommended modifications of such policies that could improve 
        the mission performance of the agency.
            ``(D) Final approval of the biennial strategic plan.
    ``(6) Members of the panel who are not officers or employees of the 
United States shall serve without pay by reason of their work on the 
panel, and their services as members may be accepted without regard to 
section 1342 of title 31. However, such members shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5 while away from their homes or regular places of business in 
the performance of services for the panel.
    ``(7) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the panel.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 201 the 
following new item:

``202. Defense Advanced Research Projects Agency: biennial strategic 
                            plan.''.
    (b) Initial Appointments to Review Panel.--The Secretary of Defense 
shall appoint the panel under subsection (c) of section 202 of title 
10, United States Code (as added by subsection (a)), not later than 60 
days after the date of the enactment of this Act.

SEC. 233. ENHANCEMENT OF AUTHORITY OF SECRETARY OF DEFENSE TO SUPPORT 
              SCIENCE, MATHEMATICS, ENGINEERING, AND TECHNOLOGY 
              EDUCATION.

    Section 2192 of title 10, United States Code, is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b)(1) In furtherance of the authority of the Secretary of 
Defense under this chapter or any other provision of law to support 
educational programs in science, mathematics, engineering, and 
technology, the Secretary of Defense may--
            ``(A) enter into contracts and cooperative agreements with 
        eligible persons;
            ``(B) make grants of financial assistance to eligible 
        persons;
            ``(C) provide cash awards and other items to eligible 
        persons; and
            ``(D) accept voluntary services from eligible persons.
    ``(2) In this subsection:
            ``(A) The term `eligible person' includes a department or 
        agency of the Federal Government, a State, a political 
        subdivision of a State, an individual, and a not-for-profit or 
        other organization in the private sector.
            ``(B) The term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the United States Virgin Islands, the Commonwealth 
        of the Northern Mariana Islands, American Samoa, and any other 
        territory or possession of the United States.''.

SEC. 234. DEPARTMENT OF DEFENSE HIGH-SPEED NETWORK-CENTRIC AND 
              BANDWIDTH EXPANSION PROGRAM.

    (a) In General.--The Secretary of Defense shall carry out a program 
of research and development to promote greater bandwidth capability 
with high-speed network-centric communications.
    (b) Purposes of Activities.--The purposes of activities required by 
subsection (a) are as follows:
            (1) To facilitate the acceleration of the network-centric 
        operational capabilities of the Armed Forces, including more 
        extensive utilization of unmanned vehicles, satellite 
        communications, and sensors, through the promotion of research 
        and development, and the focused coordination of programs, to 
        fully achieve high-bandwidth connectivity to military assets.
            (2) To provide for the development of equipment and 
        technologies for military high-bandwidth network-centric 
        communications facilities.
    (c) Research and Development Program.--(1) In carrying out the 
program of research and development required by subsection (a)(1), the 
Secretary shall--
            (A) identify areas of advanced wireless communications in 
        which research and development, or the leveraging of emerging 
        technologies, has significant potential to improve the 
        performance, efficiency, cost, and flexibility of advanced 
        network-centric communications systems;
            (B) develop a coordinated plan for research and development 
        on--
                    (i) improved spectrum access through spectrum-
                efficient network-centric communications systems;
                    (ii) networks, including complex ad hoc adaptive 
                network structures;
                    (iii) end user devices, including efficient 
                receivers and transmitter devices;
                    (iv) applications, including robust security and 
                encryption; and
                    (v) any other matters that the Secretary considers 
                appropriate for purposes of this section;
            (C) ensure joint research and development, and promote 
        joint systems acquisition and deployment, among the various 
        services and Defense Agencies, including the development of 
        common cross-service technology requirements and doctrines, so 
        as to enhance interoperability among the various services and 
        Defense Agencies;
            (D) conduct joint experimentation among the various Armed 
        Forces, and coordinate with the Joint Forces Command, on 
        experimentation to support network-centric warfare capabilities 
        to small units of the Armed Forces; and
            (E) develop, to the extent practicable and in consultation 
        with other Federal entities and private industry, cooperative 
        research and development efforts.
    (2) The Secretary shall carry out the program of research and 
development through the Director of Defense Research and Engineering, 
in full coordination with the Secretaries of the military departments, 
the heads of appropriate Defense Agencies, and the heads of other 
appropriate elements of the Department of Defense.
    (d) Report.--(1) The Secretary shall, acting through the Director 
of Defense Research and Engineering, submit to the congressional 
defense committees a report on the activities undertaken under this 
section as of the date of such report. The report shall be submitted 
together with the budget justification materials submitted to Congress 
in support of the Department of Defense budget for fiscal year 2005 (as 
submitted with the budget of the President under section 1105(a) of 
title 31, United States Code).
    (2) The report under paragraph (1) shall include--
            (A) a description of the research and development 
        activities carried out under subsection (a), including 
        particular activities under subsection (c)(1)(B);
            (B) an assessment of current and proposed funding for the 
        activities set forth in each of clauses (i) through (v) of 
        subsection (c)(1)(B), including the adequacy of such funding to 
        support such activities;
            (C) an assessment of the extent and success of any joint 
        research and development activities under subsection (c)(1)(C);
            (D) a description of any joint experimentation activities 
        under subsection (c)(1)(D);
            (E) an assessment of the effects of limited communications 
        bandwidth, and of limited access to electromagnetic spectrum, 
        on recent military operations; and
            (F) such recommendations for additional activities under 
        this section as the Secretary considers appropriate to meet the 
        purposes of this section.

SEC. 235. DEPARTMENT OF DEFENSE STRATEGY FOR MANAGEMENT OF 
              ELECTROMAGNETIC SPECTRUM.

    (a) In General.--The Secretary of Defense shall--
            (1) in accordance with subsection (b), develop a strategy 
        for the Department of Defense for the management of the 
        electromagnetic spectrum to improve spectrum access and high-
        bandwidth connectivity to military assets; and
            (2) in accordance with subsection (c), communicate with 
        civilian departments and agencies of the Federal Government in 
        the development of the strategy identified in paragraph (1).
    (b) Strategy for Department of Defense Spectrum Management.--(1) 
Not later than September 1, 2004, the Board shall develop a strategy 
for the Department of Defense for the management of the electromagnetic 
spectrum in order to ensure the development and use of spectrum-
efficient technologies to facilitate the availability of adequate 
spectrum for network-centric warfare. The strategy shall include 
specific timelines, metrics, plans for implementation, including the 
implementation of technologies for the efficient use of spectrum, and 
proposals for program funding.
    (2) In developing the strategy, the Board shall consider and take 
into account the research and development program carried out under 
section 234.
    (3) The Board shall assist in updating the strategy developed under 
paragraph (1) on a biennial basis to address changes in circumstances.
    (4) The Board shall communicate with other departments and agencies 
of the Federal Government in the development of the strategy described 
in subsection (a)(1), including representatives of the military 
departments, the Federal Communications Commission, the National 
Telecommunications and Information Administration, the Department of 
Homeland Security, the Federal Aviation Administration, and other 
appropriate departments and agencies of the Federal Government.
    (c) Board Defined.--In this section, the term ``Board'' means the 
board of senior acquisition officials as defined in section 822.

SEC. 236. AMOUNT FOR COLLABORATIVE INFORMATION WARFARE NETWORK.

    (a) Availability of Funds.--(1) Of the amount authorized to be 
appropriated by section 201(2), for research and development, Navy, 
$8,000,000 may be available for the Collaborative Information Warfare 
Network.
    (2) The total amount authorized to be appropriated under section 
201(2) is hereby increased by $8,000,000.
    (b) Offset.--Of the amount authorized to be appropriated by section 
301(4) for operation and maintenance, Air Force, the amount is hereby 
reduced by $8,000,000.

SEC. 237. COPRODUCTION OF ARROW BALLISTIC MISSILE DEFENSE SYSTEM.

    Of the total amount authorized to be appropriated under section 201 
for ballistic missile defense, $115,000,000 may be available for 
coproduction of the Arrow ballistic missile defense system.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $24,668,004,000.
            (2) For the Navy, $28,051,390,000.
            (3) For the Marine Corps, $3,416,356,000.
            (4) For the Air Force, $26,975,231,000.
            (5) For Defense-wide activities, $15,739,047,000.
            (6) For the Army Reserve, $1,952,009,000.
            (7) For the Naval Reserve, $1,170,421,000.
            (8) For the Marine Corps Reserve, $173,452,000.
            (9) For the Air Force Reserve, $2,178,688,000.
            (10) For the Army National Guard, $4,227,331,000.
            (11) For the Air National Guard, $4,405,646,000.
            (12) For the Defense Inspector General, $160,049,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $10,333,000.
            (14) For Environmental Restoration, Army, $396,018,000.
            (15) For Environmental Restoration, Navy, $256,153,000.
            (16) For Environmental Restoration, Air Force, 
        $384,307,000.
            (17) For Environmental Restoration, Defense-wide, 
        $24,081,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $252,619,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $59,000,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $817,371,000.
            (21) For Defense Health Program, $14,862,900,000.
            (22) For Cooperative Threat Reduction programs, 
        $450,800,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,661,307,000.
            (2) For the National Defense Sealift Fund, $1,062,762,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. EMERGENCY AND MORALE COMMUNICATIONS PROGRAMS.

    (a) Armed Forces Emergency Services.--Of the amount authorized to 
be appropriated by section 301(5) for operation and maintenance for 
Defense-wide activities, $5,000,000 shall be made available to the 
American Red Cross to fund the Armed Forces Emergency Services.
    (b) Department of Defense Morale Telecommunications Program.--(1) 
As soon as possible after the date of enactment of this Act, the 
Secretary of Defense shall establish and carry out a program to 
provide, wherever practicable, prepaid phone cards, or an equivalent 
telecommunications benefit which includes access to telephone service, 
to members of the Armed Forces stationed outside the United States who 
are directly supporting military operations in Iraq or Afghanistan (as 
determined by the Secretary) to enable them to make telephone calls to 
family and friends in the United States without cost to the member.
    (2) The value of the benefit provided by paragraph (1) shall not 
exceed $40 per month per person.
    (3) The program established by paragraph (1) shall terminate on 
September 30, 2004.
    (4) In carrying out the program under this subsection, the 
Secretary shall maximize the use of existing Department of Defense 
telecommunications programs and capabilities, private entities free or 
reduced-cost services, and programs to enhance morale and welfare. In 
addition, and notwithstanding any limitation on the expenditure or 
obligation of appropriated amounts, the Secretary may use available 
funds appropriated to or for the use of the Department of Defense that 
are not otherwise obligated or expended to carry out the program.
    (5) The Secretary may accept gifts and donations in order to defray 
the costs of the program. Such gifts and donations may be accepted from 
foreign governments; foundations or other charitable organizations, 
including those organized or operating under the laws of a foreign 
country; and any source in the private sector of the United States or a 
foreign country.
    (6) The Secretary shall work with telecommunications providers to 
facilitate the deployment of additional telephones for use in calling 
the United States under the program as quickly as practicable, 
consistent with the timely provision of telecommunications benefits of 
the program, the Secretary should carry out this subsection in a manner 
that allows for competition in the provision of such benefits.
    (7) The Secretary shall not take any action under this subsection 
that would compromise the military objectives or mission of the 
Department of Defense.

SEC. 312. COMMERCIAL IMAGERY INDUSTRIAL BASE.

    (a) Limitation.--Not less than ninety percent of the total amount 
authorized to be appropriated under this title for the acquisition, 
processing, and licensing of commercial imagery, including amounts 
authorized to be appropriated under this title for experimentation 
related to commercial imagery, shall be used for the following 
purposes:
            (1) To acquire space-based imagery from commercial sources.
            (2) To support the development of next-generation 
        commercial imagery satellites.
    (b) Report.--(1) Not later than March 1, 2004, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the actions taken and to 
be taken by the Secretary to implement the President's commercial 
remote sensing policy. The Secretary shall consult with the Director of 
Central Intelligence in preparing the report.
    (2) The report under paragraph (1) shall include an assessment of 
the following matters:
            (A) The sufficiency of the policy, the funding for fiscal 
        year 2004 for the procurement of imagery from commercial 
        sources, and the funding planned in the future-years defense 
        program for the procurement of imagery from commercial sources 
        to sustain a viable commercial imagery industrial base in the 
        United States.
            (B) The extent to which the United States policy and 
        programs relating to the procurement of imagery from commercial 
        sources are sufficient to ensure that imagery is available to 
        the Department of Defense from United States commercial firms 
        to timely meet the needs of the Department of Defense for the 
        imagery.

SEC. 313. INFORMATION OPERATIONS SUSTAINMENT FOR LAND FORCES READINESS 
              OF ARMY RESERVE.

    (a) Increase in Authorization of Appropriations for Army Reserve.--
The amount authorized to be appropriated by section 301(6) for 
operation and maintenance for the Army Reserve is hereby increased by 
$3,000,000.
    (b) Availability for Information Operations Sustainment.--(1) Of 
the amount authorized to be appropriated by section 301(6) for 
operation and maintenance for the Army Reserve, as increased by 
subsection (a), $3,000,000 may be available for Information Operations 
(Account #19640) for Land Forces Readiness-Information Operations 
Sustainment.
    (2) The amount available under paragraph (1) for the purpose 
specified in that paragraph is in addition to any other amounts 
available under this Act for that purpose.
    (c) Offset.--The amount authorized to be appropriated by section 
301(4) for operation and maintenance for the Air Force is hereby 
reduced by $3,000,000.

SEC. 314. SUBMITTAL OF SURVEY ON PERCHLORATE CONTAMINATION AT 
              DEPARTMENT OF DEFENSE SITES.

    (a) Submittal of Perchlorate Survey.--Not later than 30 days after 
the date of the enactment of this Act, the Secretary of Defense shall 
submit to the appropriate committees of Congress the 2001 survey to 
identify the potential for perchlorate contamination at all active and 
closed Department of Defense sites that was prepared by the United 
States Air Force Research Laboratory, Aerospace Expeditionary Force 
Technologies Division, Tyndall Air Force Base and Applied Research 
Associates.
    (b) Appropriate Committees of Congress Defined.--In this section, 
the term ``appropriate committees of Congress'' means--
            (1) the Committee on Environment and Public Works of the 
        Senate; and
            (2) the Committee on Energy and Commerce of the House of 
        Representatives.

                  Subtitle C--Environmental Provisions

SEC. 321. GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND OPERATIONS.

    (a) General Definitions Applicable to Facilities and Operations.--
Section 101 of title 10, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Facilities and Operations.--The following definitions 
relating to facilities and operations shall apply in this title:
            ``(1)(A) The term `military munitions' means all ammunition 
        products and components produced for or used by the armed 
        forces for national defense and security, including ammunition 
        products or components under the control of the Department of 
        Defense, the Coast Guard, the Department of Energy, and the 
        National Guard. The term includes confined gaseous, liquid, and 
        solid propellants, explosives, pyrotechnics, chemical and riot 
        control agents, smokes, and incendiaries, including bulk 
        explosives and chemical warfare agents, chemical munitions, 
        rockets, guided and ballistic missiles, bombs, warheads, mortar 
        rounds, artillery ammunition, small arms ammunition, grenades, 
        mines, torpedoes, depth charges, cluster munitions and 
        dispensers, demolition charges, and devices and components 
        thereof.
            ``(B) The term does not include wholly inert items, 
        improvised explosive devices, and nuclear weapons, nuclear 
        devices, and nuclear components, except that the term does 
        include nonnuclear components of nuclear devices that are 
        managed under the nuclear weapons program of the Department of 
        Energy after all required sanitization operations under the 
        Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) have been 
        completed.
            ``(2) The term `operational range' means a range under the 
        jurisdiction, custody, or control of the Secretary concerned 
        that--
                    ``(A) is used for range activities; or
                    ``(B) is not currently used for range activities, 
                but is still considered by the Secretary concerned to 
                be a range and has not been put to a new use that is 
                incompatible with range activities.
            ``(3) The term `range' means a designated land or water 
        area that is set aside, managed, and used for range activities. 
        The term includes firing lines and positions, maneuver areas, 
        firing lanes, test pads, detonation pads, impact areas, 
        electronic scoring sites, and buffer zones with restricted 
        access and exclusionary areas. The term also includes airspace 
        areas designated for military use according to regulations and 
        procedures established by the Federal Aviation Administration 
        such as special use airspace areas, military training routes, 
        and other associated airspace.
            ``(4) The term `range activities' means--
                    ``(A) research, development, testing, and 
                evaluation of military munitions, other ordnance, and 
                weapons systems; and
                    ``(B) the training of military personnel in the use 
                and handling of military munitions, other ordnance, and 
                weapons systems.
            ``(5) The term `unexploded ordnance' means military 
        munitions that--
                    ``(A) have been primed, fused, armed, or otherwise 
                prepared for action;
                    ``(B) have been fired, dropped, launched, 
                projected, or placed in such a manner as to constitute 
                a hazard to operations, installations, personnel, or 
                material; and
                    ``(C) remain unexploded either by malfunction, 
                design, or any other cause.''.
    (b) Conforming Amendments.--Section 2710(e) of such title is 
amended by striking paragraphs (3), (5), and (9) and redesignating 
paragraphs (4), (6), (7), (8), and (10) as paragraphs (3), (4), (5), 
(6), and (7), respectively.

SEC. 322. MILITARY READINESS AND CONSERVATION OF PROTECTED SPECIES.

    (a) In General.--Part III of subtitle A of title 10, United States 
Code, is amended by inserting after chapter 101 the following new 
chapter:

            ``CHAPTER 101A--READINESS AND RANGE PRESERVATION

``Sec.
``2020. Military readiness and conservation of protected species.
``Sec. 2020. Military readiness and conservation of protected species
    ``(a) Limitation on Designation of Critical Habitat.--The Secretary 
of the Interior may not designate as critical habitat any lands or 
other geographical areas owned or controlled by the Department of 
Defense, or designated for its use, that are subject to an integrated 
natural resources management plan prepared under section 101 of the 
Sikes Act (16 U.S.C. 670a), if the Secretary of the Interior determines 
in writing that--
            ``(1) the management activities identified in the plan will 
        effectively conserve the threatened species and endangered 
        species within the lands or areas covered by the plan; and
            ``(2) the plan provides assurances that adequate funding 
        will be provided for such management activities.
    ``(b) Construction With Consultation Requirement.--Nothing in 
subsection (a) may be construed to affect the requirement to consult 
under section 7(a)(2) of the Endangered Species Act (16 U.S.C. 
1536(a)(2)) with respect to an agency action (as that term is defined 
in that section).''.
    (b) Clerical Amendments.--The table of chapters at the beginning of 
subtitle A of title 10, United States Code, and at the beginning of 
part III of such subtitle, are each amended by inserting after the item 
relating to chapter 101 the following new item:

``101A. Readiness and Range Preservation....................    2020''.

SEC. 323. ARCTIC AND WESTERN PACIFIC ENVIRONMENTAL TECHNOLOGY 
              COOPERATION PROGRAM.

    (a) In General.--Subchapter II of chapter 138 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2350m. Arctic and Western Pacific Environmental Technology 
              Cooperation Program
    ``(a) Authority To Conduct Program.--The Secretary of Defense may, 
with the concurrence of the Secretary of State, conduct on a 
cooperative basis with countries located in the Arctic and Western 
Pacific regions a program of environmental activities provided for in 
subsection (b) in such regions. The program shall be known as the 
`Arctic and Western Pacific Environmental Technology Cooperation 
Program'.
    ``(b) Program Activities.--(1) Except as provided in paragraph (3), 
activities under the program under subsection (a) may include 
cooperation and assistance among elements of the Department of Defense 
and military departments or relevant agencies of other countries on 
activities that contribute to the demonstration of environmental 
technology.
    ``(2) Activities under the program shall be consistent with the 
requirements of the Cooperative Threat Reduction program.
    ``(3) Activities under the program may not include activities for 
purposes prohibited under section 1403 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
1960).
    ``(c) Limitation on Funding for Projects Other Than Radiological 
Projects.--Not more than 10 percent of the amount made available for 
the program under subsection (a) in any fiscal year may be available 
for projects under the program other than projects on radiological 
matters.
    ``(d) Annual Report.--(1) Not later than March 1, 2004, and each 
year thereafter, the Secretary of Defense shall submit to Congress a 
report on activities under the program under subsection (a) during the 
preceding fiscal year.
    ``(2) The report on the program for a fiscal year under paragraph 
(1) shall include the following:
            ``(A) A description of the activities carried out under the 
        program during that fiscal year, including a separate 
        description of each project under the program.
            ``(B) A statement of the amounts obligated and expended for 
        the program during that fiscal year, set forth in aggregate and 
        by project.
            ``(C) A statement of the life cycle costs of each project, 
        including the life cycle costs of such project as of the end of 
        that fiscal year and an estimate of the total life cycle costs 
        of such project upon completion of such project.
            ``(D) A statement of the participants in the activities 
        carried out under the program during that fiscal year, 
        including the elements of the Department of Defense and the 
        military departments or agencies of other countries.
            ``(E) A description of the contributions of the military 
        departments and agencies of other countries to the activities 
        carried out under the program during that fiscal year, 
        including any financial or other contributions to such 
        activities.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
that subchapter is amended by adding at the end the following new item:

``2350m. Arctic and Western Pacific Environmental Technology 
                            Cooperation Program.''.

SEC. 324. PARTICIPATION IN WETLAND MITIGATION BANKS IN CONNECTION WITH 
              MILITARY CONSTRUCTION PROJECTS.

    (a) Authority To Participate.--Chapter 159 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2697. Participation in wetland mitigation banks
    ``(a) Authority To Participate.--In the case of a military 
construction project that results, or may result, in the destruction of 
or impacts to wetlands, the Secretary concerned may make one or more 
payments to a wetland mitigation banking program or consolidated user 
site (also referred to as an `in-lieu-fee' program) meeting the 
requirement of subsection (b) in lieu of creating a wetland on Federal 
property as mitigation for the project.
    ``(b) Approval of Program or Site Required.--The Secretary 
concerned may make a payment to a program or site under subsection (a) 
only if the program or site is approved in accordance with the Federal 
Guidance for the Establishment, Use, and Operation of Mitigation Banks 
or the Federal Guidance on the Use of In-Lieu-Fee Arrangements for 
Compensatory Mitigation under section 404 of the Federal Water 
Pollution Control Act (33 U.S.C. 1344) or section 10 of the Rivers and 
Harbors Appropriations Act of 1899 (33 U.S.C. 403).
    ``(c) Availability of Funds.--Amounts authorized to be appropriated 
for a military construction project for which a payment is authorized 
by subsection (a) may be utilized for purposes of making the 
payment.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2697. Participation in wetland mitigation banks.''.

SEC. 325. EXTENSION OF AUTHORITY TO USE ENVIRONMENTAL RESTORATION 
              ACCOUNT FUNDS FOR RELOCATION OF A CONTAMINATED FACILITY.

    Section 2703(c)(2) of title 10, United States Code, is amended by 
striking ``September 30, 2003'' and inserting ``September 30, 2006''.

SEC. 326. APPLICABILITY OF CERTAIN PROCEDURAL AND ADMINISTRATIVE 
              REQUIREMENTS TO RESTORATION ADVISORY BOARDS.

    Section 2705(d)(2) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(C)(i) Section 10(a)(2) of the Federal Advisory Committee Act (5 
U.S.C. App.), relating to publication in the Federal Register of 
notices of meetings of advisory committees, shall not apply to any 
meeting of a restoration advisory board under this subsection, but a 
restoration advisory board shall publish timely notice of each meeting 
of the restoration advisory board in a local newspaper of general 
circulation.
    ``(ii) No limitation under any provision of law or regulations on 
the total number of advisory committees (as that term is defined in 
section 3(2) of the Federal Advisory Committee Act) in existence at any 
one time shall operate to limit the number of restoration advisory 
boards in existence under this subsection at any one time.''.

SEC. 327. EXPANSION OF AUTHORITIES ON USE OF VESSELS STRICKEN FROM THE 
              NAVAL VESSEL REGISTER FOR EXPERIMENTAL PURPOSES.

    (a) Expansion of Authorities.--Subsection (b) of section 7306a of 
title 10, United States Code, is amended to read as follows:
    ``(b) Stripping and Environmental Remediation of Vessels.--(1) 
Before using a vessel for experimental purposes pursuant to subsection 
(a), the Secretary shall carry out such stripping of the vessel as is 
practicable and such environmental remediation of the vessel as is 
required for the use of the vessel for experimental purposes.
    ``(2) Material and equipment stripped from a vessel under paragraph 
(1) may be sold by the contractor or by a sales agent approved by the 
Secretary.
    ``(3) Amounts received as proceeds from the stripping of a vessel 
pursuant to this subsection shall be credited to funds available for 
stripping and environmental remediation of other vessels for use for 
experimental purposes.''.
    (b) Inclusion of Certain Purposes in Use for Experimental 
Purposes.--That section is further amended by adding at the end the 
following new subsection:
    ``(c) Use for Experimental Purposes.--For purposes of this section, 
the term `use for experimental purposes', in the case of a vessel, 
includes use of the vessel by the Navy in sink exercises and as a 
target.''.

SEC. 328. TRANSFER OF VESSELS STRICKEN FROM THE NAVAL VESSEL REGISTER 
              FOR USE AS ARTIFICIAL REEFS.

    (a) Authority To Make Transfer.--Chapter 633 of title 10, United 
States Code, is amended by inserting after section 7306a the following 
new section:
``Sec. 7306b. Vessels stricken from Naval Vessel Register; transfer by 
              gift or otherwise for use as artificial reefs
    ``(a) Authority To Make Transfer.--Subject to subsection (b), the 
Secretary of the Navy may transfer, by gift or otherwise, any vessel 
stricken from the Naval Vessel Register to any State, Commonwealth, or 
possession of the United States or any municipal corporation or 
political subdivision thereof.
    ``(b) Inapplicability to Certain Vessels.--The authority in 
subsection (a) shall not apply to vessels transferable to the Maritime 
Administration for disposal under section 548 of title 40.
    ``(c) Vessel To Be Used as Artificial Reef.--An agreement for the 
transfer of a vessel under subsection (a) shall require that--
            ``(1) the recipient use, site, construct, monitor, and 
        manage the vessel only as an artificial reef in accordance with 
        the requirements of the National Fishing Enhancement Act of 
        1984 (title II of Public Law 98-623; 33 U.S.C. 2101 et seq.), 
        except that the recipient may use the artificial reef to 
        enhance diving opportunities if such use does not have an 
        adverse effect on fishery resources (as that term is defined in 
        section 2(14) of the Magnuson-Stevens Fishery Conservation and 
        Management Act (16 U.S.C. 1802(14)); and
            ``(2) the recipient obtain, and bear all responsibility for 
        complying with, applicable Federal, State, interstate, and 
        local permits for using, siting, constructing, monitoring, and 
        managing the vessel as an artificial reef.
    ``(d) Preparation of Vessel for Use as Artificial Reef.--The 
Secretary shall ensure that the preparation of a vessel transferred 
under subsection (a) for use as an artificial reef is conducted in 
accordance with--
            ``(1) the environmental best management practices developed 
        pursuant to section 3504(b) of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 16 
        U.S.C. 1220 note); and
            ``(2) any applicable environmental laws.
    ``(e) Cost Sharing.--The Secretary may share with the recipient of 
a vessel transferred under subsection (a) any costs associated with 
transferring the vessel under that subsection, including costs of the 
preparation of the vessel under subsection (d).
    ``(f) No Limitation on Number of Vessels Transferable to Particular 
Recipient.--A State, Commonwealth, or possession of the United States, 
or any municipal corporation or political subdivision thereof, may be 
the recipient of more than one vessel transferred under subsection (a).
    ``(g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a transfer 
authorized by subsection (a) as the Secretary considers appropriate.
    ``(h) Construction.--Nothing in this section shall be construed to 
establish a preference for the use as artificial reefs of vessels 
stricken from the Naval Vessel Register in lieu of other authorized 
uses of such vessels, including the domestic scrapping of such vessels, 
or other disposals of such vessels, under this chapter or other 
applicable authority.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7306a the following new item:

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

SEC. 329. SALVAGE FACILITIES.

    (a) Facilities To Include Environmental Protection Equipment.--
Section 7361(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:
    ``(2) For purposes of this section, salvage facilities shall 
include equipment and gear utilized to prevent, abate, or minimize 
damage to the environment arising from salvage activities.''.
    (b) Claims To Include Compensation for Environmental Protection.--
Section 7363 of such title is amended--
            (1) by inserting ``(a) Authority To Settle Claims.--'' 
        before ``The Secretary''; and
            (2) by adding at the end the following new subsection:
    ``(b) Environmental Protection Services.--A claim for salvage 
services covered by subsection (a) may include, in addition to a claim 
for such salvage services, a claim for compensation for services to 
prevent, abate, or minimize damage to the environment arising from such 
salvage services.''.

SEC. 330. TASK FORCE ON RESOLUTION OF CONFLICT BETWEEN MILITARY 
              TRAINING AND ENDANGERED SPECIES PROTECTION AT BARRY M. 
              GOLDWATER RANGE, ARIZONA.

    (a) Purpose.--The purpose of this section is to facilitate the 
determination of effective means of resolving the current conflict 
between the dual objectives at Barry M. Goldwater Range, Arizona, of 
the full utilization of live ordnance delivery areas for military 
training and the protection of endangered species.
    (b) Task Force.--The Secretary of Defense shall establish a task 
force to determine and assess various means of enabling full use of the 
live ordnance delivery areas at Barry M. Goldwater Range while also 
protecting endangered species that are present at Barry M. Goldwater 
Range.
    (c) Composition.--(1) The task force established under subsection 
(b) shall be composed of the following:
            (A) The Air Force range officer, who shall serve as chair 
        of the task force.
            (B) The range officer at Barry M. Goldwater Range.
            (C) The commander of Luke Air Force Base, Arizona.
            (D) The commander of Marine Corps Air Station, Yuma, 
        Arizona.
            (E) The Director of the United States Fish and Wildlife 
        Service.
            (F) The manager of the Cabeza Prieta National Wildlife 
        Refuge, Arizona.
            (G) A representative of the Department of Game and Fish of 
        the State of Arizona, as selected by the Secretary in 
        consultation with the Governor of the State of Arizona.
            (H) A representative of a wildlife interest group in the 
        State of Arizona, as selected by the Secretary in consultation 
        with wildlife interest groups in the State of Arizona.
            (I) A representative of an environmental interest group 
        (other than a wildlife interest group) in the State of Arizona, 
        as selected by the Secretary in consultation with environmental 
        interest groups in the State of Arizona.
    (2) The chair of the task force may secure for the task force the 
services of such experts with respect to the duties of the task force 
under subsection (d) as the chair considers advisable to carry out such 
duties.
    (d) Duties.--The task force established under subsection (b) 
shall--
            (1) assess the effects of the presence of endangered 
        species on military training activities in the live ordnance 
        delivery areas at Barry M. Goldwater Range and in any other 
        areas of the range that are adversely effected by the presence 
        of endangered species;
            (2) determine various means of addressing any significant 
        adverse effects on military training activities on Barry M. 
        Goldwater Range that are identified pursuant to paragraph (1); 
        and
            (3) determine the benefits and costs associated with the 
        implementation of each means identified under paragraph (2).
    (e) Report.--Not later than February 28, 2005, the task force under 
subsection (b) shall submit to Congress a report on its activities 
under this section. The report shall include--
            (1) a description of the assessments and determinations 
        made under subsection (d);
            (2) such recommendations for legislative and administrative 
        action as the task force considers appropriate; and
            (3) an evaluation of the utility of task force proceedings 
        as a means of resolving conflicts between military training 
        objectives and protection of endangered species at other 
        military training and testing ranges.

SEC. 331. PUBLIC HEALTH ASSESSMENT OF EXPOSURE TO PERCHLORATE.

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

                 Subtitle D--Reimbursement Authorities

SEC. 341. REIMBURSEMENT OF RESERVE COMPONENT MILITARY PERSONNEL 
              ACCOUNTS FOR PERSONNEL COSTS OF SPECIAL OPERATIONS 
              RESERVE COMPONENT PERSONNEL ENGAGED IN LANDMINES 
              CLEARANCE.

    (a) Reimbursement.--Funds authorized to be appropriated under 
section 301 for Overseas Humanitarian, Disaster, and Civic Aid programs 
shall be available for transfer to reserve component military personnel 
accounts in reimbursement of such accounts for the pay and allowances 
paid to reserve component personnel under the United States Special 
Operations Command for duty performed by such personnel in connection 
with training and other activities relating to the clearing of 
landmines for humanitarian purposes.
    (b) Maximum Amount.--Not more than $5,000,000 may be transferred 
under subsection (a).
    (c) Merger of Transferred Funds.--Funds transferred to an account 
under this section shall be merged with other sums in the account and 
shall be available for the same period and purposes as the sums with 
which merged.
    (d) Relationship to Other Transfer Authority.--The transfer 
authority under this section is in addition to the transfer authority 
provided under section 1001.

SEC. 342. REIMBURSEMENT OF RESERVE COMPONENT ACCOUNTS FOR COSTS OF 
              INTELLIGENCE ACTIVITIES SUPPORT PROVIDED BY RESERVE 
              COMPONENT PERSONNEL.

    (a) In General.--Chapter 1805 of title 10, United States Code, is 
amended by inserting after section 18502 the following new section:
``Sec. 18503. Reserve components: reimbursement for costs of 
              intelligence support provided by reserve component 
              personnel
    ``(a) Reimbursement Requirement.--The Secretary of Defense or the 
Secretary concerned shall transfer to the appropriate reserve component 
military personnel account or operation and maintenance account the 
amount necessary to reimburse such account for the costs charged that 
account for military pay and allowances or operation and maintenance 
associated with the performance of duty described in subsection (b) by 
reserve component personnel.
    ``(b) Reimbursable Costs.--The transfer requirement under 
subsection (a) applies with respect to the performance of duty in 
providing intelligence support, counterintelligence support, or 
intelligence and counterintelligence support to a combatant command, 
Defense Agency, or joint intelligence activity, including any activity 
or program within the National Foreign Intelligence Program, the Joint 
Military Intelligence Program, or the Tactical Intelligence and Related 
Activities Program.
    ``(c) Sources of Reimbursements.--Funds available for operation and 
maintenance for the Army, Navy, Air Force, or Marine Corps, for a 
combatant command, or for a Defense Agency shall be available for 
transfer under this section to military personnel accounts and 
operation and maintenance accounts of the reserve components.
    ``(d) Distribution to Units.--Amounts reimbursed to an account for 
duty performed by reserve component personnel shall be distributed to 
the lowest level unit or other organization of such personnel that 
administers and is accountable for the appropriated funds charged the 
costs that are being reimbursed.
    ``(e) Merger of Transferred Funds.--Funds transferred to an account 
under this section shall be merged with other sums in the account and 
shall be available for the same period and purposes as the sums with 
which merged.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended inserting after the item relating to section 
18502 the following new item:

``18503. Reserve components: reimbursement for costs of intelligence 
                            support provided by reserve component 
                            personnel.''.

SEC. 343. REIMBURSEMENT RATE FOR SERVICES PROVIDED TO THE DEPARTMENT OF 
              STATE.

    (a) Authority.--Subsection (a) of section 2642 of title 10, United 
States Code, is amended--
            (1) by striking ``(a) Authority'' and all that follows 
        through ``the Department of Defense'' and inserting the 
        following:
    ``(a) Authority.--The Secretary of Defense may authorize the use of 
the Department of Defense reimbursement rate for military airlift 
services provided by a component of the Department of Defense as 
follows:
            ``(1) Military airlift services provided''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Military airlift services provided to the Department 
        of State for the transportation of armored motor vehicles to a 
        foreign country to meet unfulfilled requirements of the 
        Department of State for armored motor vehicles in such foreign 
        country.''.
    (b) Conforming and Clerical Amendments.--(1) The heading for such 
section is amended to read as follows:
``Sec. 2642. Reimbursement rate for airlift services provided to 
              Central Intelligence Agency or Department of State''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 157 of such title is amended to read as 
follows:

``2642. Reimbursement rate for airlift services provided to Central 
                            Intelligence Agency or Department of 
                            State.''.
    (c) Costs of Goods and Services Provided to Department of State.--
For any fee charged to the Department of Defense by the Department of 
State during any year for the maintenance, upgrade, or construction of 
United States diplomatic facilities, the Secretary of Defense may remit 
to the Department of State only that portion, if any, of the total 
amount of the fee charged for such year that exceeds the total amount 
of the costs incurred by the Department of Defense for providing goods 
and services to the Department of State during such year.

                Subtitle E--Defense Dependents Education

SEC. 351. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
2004.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$30,000,000 shall be available only for the purpose of providing 
educational agencies assistance to local educational agencies.
    (b) Notification.--Not later than June 30, 2004, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2004 of--
            (1) that agency's eligibility for the assistance; and
            (2) the amount of the assistance for which that agency is 
        eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Availability of Funds for Local Educational Agencies Affected 
by the Brooks Air Force Base Demonstration Project.--(1) Up to $500,000 
of the funds made available under subsection (a) may (notwithstanding 
the limitation in such subsection) also be used for making basic 
support payments for fiscal year 2004 to a local educational agency 
that received a basic support payment for fiscal year 2003, but whose 
payment for fiscal year 2004 would be reduced because of the conversion 
of Federal property to non-Federal ownership under the Department of 
Defense infrastructure demonstration project at Brooks Air Force Base, 
Texas, and the amounts of such basic support payments for fiscal year 
2004 shall be computed as if the converted property were Federal 
property for purposes of receiving the basic support payments for the 
period in which the demonstration project is ongoing, as documented by 
the local educational agency to the satisfaction of the Secretary.
    (2) If funds are used as authorized under paragraph (1), the 
Secretary shall reduce the amount of any basic support payment for 
fiscal year 2004 for a local educational agency described in paragraph 
(1) by the amount of any revenue that the agency received during fiscal 
year 2002 from the Brooks Development Authority as a result of the 
demonstration project described in paragraph (1).
    (e) 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)).
            (3) The term ``basic support payment'' means a payment 
        authorized under section 8003(b(1)) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(b)(1)).

SEC. 352. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$5,000,000 shall be available for payments under section 363 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-77; 20 
U.S.C. 7703a).

                       Subtitle F--Other Matters

SEC. 361. SALE OF DEFENSE INFORMATION SYSTEMS AGENCY SERVICES TO 
              CONTRACTORS PERFORMING THE NAVY-MARINE CORPS INTRANET 
              CONTRACT.

    (a) Authority.--The Secretary of Defense may sell working-capital 
funded services of the Defense Information Systems Agency to a person 
outside the Department of Defense for use by that person in the 
performance of the Navy-Marine Corps Intranet contract.
    (b) Reimbursement.--The Secretary shall require reimbursement of 
each working-capital fund for the costs of services sold under 
subsection (a) that were paid for out of such fund. The sources of the 
reimbursement shall be the appropriation or appropriations funding the 
Navy-Marine Corps Intranet contract or any cash payments received by 
the Secretary for the services.
    (c) Navy-Marine Corps Intranet Contract Defined.--In this section, 
the term ``Navy-Marine Corps Intranet contract'' has the meaning given 
such term in section 814 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398 (114 Stat. 1654A-217)).

SEC. 362. USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE CYCLE COST 
              REDUCTION INITIATIVES.

    (a) Funds Available for Defense Modernization Account.--Section 
2216 of title 10, United States Code is amended--
            (1) by striking subsection (c);
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Funds Available for Account.--The Defense Modernization 
Account shall consist of the following:
            ``(1) Amounts appropriated to the Defense Modernization 
        Account for the costs of commencing projects described in 
        subsection (d)(1), and amounts reimbursed to the Defense 
        Modernization Account under subsections (c)(1)(B)(iii) out of 
        savings derived from such projects.
            ``(2) Amounts transferred to the Defense Modernization 
        Account under subsection (c).''.
    (b) Start-Up Funding.--Subsection (d) of such section is amended--
            (1) by striking ``available from the Defense Modernization 
        Account pursuant to subsection (f) or (g)'' and inserting ``in 
        the Defense Modernization Account'';
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (3) by inserting after ``purposes:'' the following new 
        paragraph (1):
            ``(1) For paying the costs of commencing any project that, 
        in accordance with criteria prescribed by the Secretary of 
        Defense, is undertaken by the Secretary of a military 
        department or the head of a Defense Agency or other element of 
        the Department of Defense to reduce the life cycle cost of a 
        new or existing system.''.
    (c) Reimbursement of Account Out of Savings.--(1) Paragraph (1)(B) 
of subsection (c) of such section, as redesignated by subsection 
(a)(2), is amended by adding at the end the following new clause:
            ``(iii) Unexpired funds in appropriations accounts that are 
        available for procurement or operation and maintenance of a 
        system, if and to the extent that savings are achieved for such 
        accounts through reductions in life cycle costs of such system 
        that result from one or more projects undertaken with respect 
        to such systems with funds made available from the Defense 
        Modernization Account under subsection (b)(1).''.
    (2) Paragraph (2) of such subsection is amended by inserting ``, 
other than funds referred to in paragraph subparagraph (B)(iii) of such 
paragraph,'' after ``Funds referred to in paragraph (1)''.
    (d) Regulations.--Subsection (h) of such section is amended--
            (1) by inserting ``(1)'' after ``Comptroller.--''; and
            (2) by adding at the end the following new paragraph (2):
    ``(2) The regulations prescribed under paragraph (1) shall, at a 
minimum, provide for--
            ``(A) the submission of proposals by the Secretaries 
        concerned or heads of Defense Agencies or other elements of the 
        Department of Defense to the Comptroller for the use of Defense 
        Modernization Account funds for purposes set forth in 
        subsection (d);
            ``(B) the use of a competitive process for the evaluation 
        of such proposals and the selection of programs, projects, and 
        activities to be funded out of the Defense Modernization 
        Account from among those proposed for such funding; and
            ``(C) the calculation of--
                    ``(i) the savings to be derived from projects 
                described in subsection (d)(1) that are to be funded 
                out of the Defense Modernization Account; and
                    ``(ii) the amounts to be reimbursed to the Defense 
                Modernization Account out of such savings pursuant to 
                subsection (c)(1)(B)(iii).''.
    (e) Annual Report.--Subsection (i) of such section is amended--
            (1) by striking ``(i) Quarterly Reports.--(1) Not later 
        than 15 days after the end of each calendar quarter,'' and 
        inserting ``(i) Annual Report.--(1) Not later than 15 days 
        after the end of each fiscal year,''; and
            (2) in paragraph (1), by striking ``quarter'' in 
        subparagraphs (A), (B), and (C), and inserting ``fiscal year''.
    (f) Extension of Authority.--Section 912(c)(1) of the National 
Defense Authorization Act for Fiscal Year 1996 is amended--
            (1) by striking ``section 2216(b)'' and inserting ``section 
        2216(c)''; and
            (2) by striking ``September 30, 2003'' and inserting 
        ``September 30, 2006''.

SEC. 363. EXEMPTION OF CERTAIN FIREFIGHTING SERVICE CONTRACTS FROM 
              PROHIBITION ON CONTRACTS FOR PERFORMANCE OF FIREFIGHTING 
              FUNCTIONS.

    Section 2465(b) of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(4) to a contract for the performance for firefighting 
        functions if the contract is--
                    ``(A) for a period of one year or less; and
                    ``(B) for the performance of firefighting functions 
                that would otherwise be performed by military 
                firefighters who are otherwise deployed.''.

SEC. 364. TECHNICAL AMENDMENT RELATING TO TERMINATION OF SACRAMENTO 
              ARMY DEPOT, SACRAMENTO, CALIFORNIA.

    Section 2466 of title 10, United States Code, is amended by 
striking subsection (d).

SEC. 365. EXCEPTION TO COMPETITION REQUIREMENT FOR WORKLOADS PREVIOUSLY 
              PERFORMED BY DEPOT-LEVEL ACTIVITIES.

    Section 2469 of title 10, United States Code, is amended--
            (1) in subsection (b), by inserting ``, except as provided 
        in subsection (c)'' before the period at the end;
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Exception.--Subsection (a) does not apply to any depot-level 
maintenance and repair workload that is performed by a public-private 
partnership under section 2474(b) of this title consisting of a depot-
level activity and a private entity.''.

SEC. 366. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS AND SHIPBOARD 
              EQUIPMENT.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 7316. Support for transfers of decommissioned vessels and 
              shipboard equipment
    ``(a) Authority To Provide Assistance.--The Secretary of the Navy 
may provide an entity described in subsection (b) with assistance in 
support of a transfer of a vessel or shipboard equipment described in 
such subsection that is being executed under section 2572, 7306, 7307, 
or 7545 of this title, or under any other authority.
    ``(b) Covered Vessels and Equipment.--The authority under this 
section applies--
            ``(1) in the case of a decommissioned vessel that--
                    ``(A) is owned and maintained by the Navy, is 
                located at a Navy facility, and is not in active use; 
                and
                    ``(B) is being transferred to an entity designated 
                by the Secretary of the Navy or by law to receive 
                transfer of the vessel; and
            ``(2) in the case of any shipboard equipment that--
                    ``(A) is on a vessel described in paragraph (1)(A); 
                and
                    ``(B) is being transferred to an entity designated 
                by the Secretary of the Navy or by law to receive 
                transfer of the equipment.
    ``(c) Reimbursement.--The Secretary may require a recipient of 
assistance under subsection (a) to reimburse the Navy for amounts 
expended by the Navy in providing the assistance.
    ``(d) Deposit of Funds Received.--Funds received in a fiscal year 
under subsection (c) shall be credited to the appropriation available 
for such fiscal year for operation and maintenance for the office of 
the Navy managing inactive ships, shall be merged with other sums in 
the appropriation that are available for such office, and shall be 
available for the same purposes and period as the sums with which 
merged.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7316. Support for transfers of decommissioned vessels and shipboard 
                            equipment.''.

SEC. 367. AIRCRAFT FOR PERFORMANCE OF AERIAL REFUELING MISSION.

    (a) Restriction on Retirement of KC-135E Aircraft.--The Secretary 
of the Air Force shall ensure that the number of KC-135E aircraft of 
the Air Force that are retired in fiscal year 2004, if any, does not 
exceed 12 such aircraft.
    (b) Required Analysis.--Not later than March 1, 2004, the Secretary 
of the Air Force shall submit to the congressional defense committees 
an analysis of alternatives for meeting the aerial refueling 
requirements that the Air Force has the mission to meet. The Secretary 
shall provide for the analysis to be performed by a federally funded 
research and development center or another entity independent of the 
Department of Defense.

SEC. 368. CONTRACTING WITH EMPLOYERS OF PERSONS WITH DISABILITIES.

    (a) Inapplicability of Randolph-Sheppard Act.--The Randolph-
Sheppard Act does not apply to any contract described in subsection (b) 
for so long as the contract is in effect, including for any period for 
which the contract is extended pursuant to an option provided in the 
contract.
    (b) Javits-Wagner-O'Day Contracts.--Subsection (a) applies to any 
contract for the operation of a Department of Defense facility 
described in subsection (c) that was entered into before the date of 
the enactment of this Act with a nonprofit agency for the blind or an 
agency for other severely handicapped in compliance with section 3 of 
the Javits-Wagner-O'Day Act (41 U.S.C. 48) and is in effect on such 
date.
    (c) Covered Facilities.--The Department of Defense facilities 
referred to in subsection (b) are as follows:
            (1) A military troop dining facility.
            (2) A military mess hall.
            (3) Any similar dining facility operated for the purpose of 
        providing meals to members of the Armed Forces.
    (d) Enactment of Popular Name as Short Title.--The Act entitled 
``An Act to authorize the operation of stands in Federal buildings by 
blind persons, to enlarge the economic opportunities of the blind, and 
for other purposes'', approved June 20, 1936 (commonly known as the 
``Randolph-Sheppard Act'') (20 U.S.C. 107 et seq.), is amended by 
adding at the end the following new section:
    ``Sec. 11. This Act may be cited as the `Randolph-Sheppard Act'.''.
    (e) Demonstration Projects for Contractors Employing Persons With 
Disabilities.--(1) The Secretary of Defense may carry out two 
demonstration projects for the purpose of providing opportunities for 
participation by severely disabled individuals in the industries of 
manufacturing and information technology.
    (2) Under each demonstration project, the Secretary may enter into 
one or more contracts with an eligible contractor for each of fiscal 
years 2004 and 2005 for the acquisition of--
            (A) aerospace end items or components; or
            (B) information technology products or services.
    (3) The items, components, products, or services authorized to be 
procured under paragraph (2) include--
            (A) computer numerically-controlled machining and metal 
        fabrication;
            (B) computer application development, testing, and support 
        in document management, microfilming, and imaging; and
            (C) any other items, components, products, or services 
        described in paragraph (2) that are not described in 
        subparagraph (A) or (B).
    (4) In this subsection:
            (A) The term ``eligible contractor'' means a business 
        entity operated on a for-profit or nonprofit basis that--
                    (i) employs not more than 500 individuals;
                    (ii) employs severely disabled individuals at a 
                rate that averages not less than 33 percent of its 
                total workforce over a period prescribed by the 
                Secretary;
                    (iii) employs each severely disabled individual in 
                its workforce generally on the basis of 40 hours per 
                week;
                    (iv) pays not less than the minimum wage prescribed 
                pursuant to section 6 of the Fair Labor Standards Act 
                of 1938 (29 U.S.C. 206) to the employees who are 
                severely disabled individuals;
                    (v) provides for its employees health insurance and 
                a retirement plan comparable to those provided for 
                employees by business entities of similar size in its 
                industrial sector or geographic region; and
                    (vi) has or can acquire a security clearance as 
                necessary.
            (B) The term ``severely disabled individual'' means an 
        individual with a disability (as defined in section 3 of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 12102)) who 
        has a severe physical or mental impairment that seriously 
        limits one or more functional capacities.

SEC. 369. REPEAL OF CALENDAR YEAR LIMITATIONS ON USE OF COMMISSARY 
              STORES BY CERTAIN RESERVES AND OTHERS.

    (a) Members of the Ready Reserve.--Section 1063(a) of title 10, 
United States Code, is amended by striking the period at the end of the 
first sentence and all that follows and inserting ``in that calendar 
year.''.
    (b) Certain Other Persons.--Section 1064 of such title is amended 
by striking ``for 24 days each calendar year''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2004, as follows:
            (1) The Army, 480,000.
            (2) The Navy, 373,800.
            (3) The Marine Corps, 175,000.
            (4) The Air Force, 359,300.

SEC. 402. INCREASED MAXIMUM PERCENTAGE OF GENERAL AND FLAG OFFICERS ON 
              ACTIVE DUTY AUTHORIZED TO BE SERVING IN GRADES ABOVE 
              BRIGADIER GENERAL AND REAR ADMIRAL (LOWER HALF).

    Section 525(a) of title 10, United States Code, is amended by 
striking ``50 percent'' both places it appears and inserting ``55 
percent''.

SEC. 403. EXTENSION OF CERTAIN AUTHORITIES RELATING TO MANAGEMENT OF 
              NUMBERS OF GENERAL AND FLAG OFFICERS IN CERTAIN GRADES.

    (a) Senior Joint Officer Positions.--Section 604(c) of title 10, 
United States Code, is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (b) Distribution of Officers on Active Duty in General and Flag 
Officer Grades.--Section 525(b)(5)(C) of such title is amended by 
striking ``December 31, 2004'' and inserting ``December 31, 2005''.
    (c) Authorized Strength for General and Flag Officers on Active 
Duty.--Section 526(b)(3) of such title is amended by striking 
``December 31, 2004'' and inserting ``December 31, 2005''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2004, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 85,900.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 107,030.
            (6) The Air Force Reserve, 75,800.
            (7) The Coast Guard Reserve, 10,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year; and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
              RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2004, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 25,599.
            (2) The Army Reserve, 14,374.
            (3) The Naval Reserve, 14,384.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 12,191.
            (6) The Air Force Reserve, 1,660.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2004 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 6,699.
            (2) For the Army National Guard of the United States, 
        24,589.
            (3) For the Air Force Reserve, 9,991.
            (4) For the Air National Guard of the United States, 
        22,806.

SEC. 414. FISCAL YEAR 2004 LIMITATIONS ON 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, 
2004, 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, 2004, may not exceed 895.
    (3) The number of non-dual status technicians employed by the Air 
Force Reserve as of September 30, 2004, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given the term in 
section 10217(a) of title 10, United States Code.

       Subtitle C--Other Matters Relating to Personnel Strengths

SEC. 421. REVISION OF PERSONNEL STRENGTH AUTHORIZATION AND ACCOUNTING 
              PROCESS.

    (a) Annual Authorization of Strengths.--Subsection (a) of section 
115 of title 10, United States Code, is amended to read as follows:
    ``(a) Congress shall authorize personnel strength levels for each 
fiscal year for each of the following:
            ``(1) The average strength for each of the armed forces 
        (other than the Coast Guard) for active-duty personnel who are 
        to be paid from funds appropriated for active-duty personnel.
            ``(2) The average strength for each of the armed forces 
        (other than the Coast Guard) for active-duty personnel and 
        full-time National Guard duty personnel who are to be paid from 
        funds appropriated for reserve personnel.
            ``(3) The average strength for the Selected Reserve of each 
        reserve component of the armed forces.''.
    (b) Limitation on Use of Funds.--Subsection (b) of such section is 
amended by striking ``end strength'' in paragraphs (1) and (2) and 
inserting ``strength''.
    (c) Authority of Secretary of Defense To Vary Strengths.--
Subsection (c) of such section is amended--
            (1) by striking ``end strength'' each place it appears and 
        inserting ``strength'';
            (2) in paragraph (1), by striking ``subsection (a)(1)(A)'' 
        and inserting ``subsection (a)(1)'';
            (3) in paragraph (2), by striking ``subsection (a)(1)(B)'' 
        and inserting ``subsection (a)(2)''; and
            (4) in paragraph (3), by striking ``subsection (a)(2)'' and 
        inserting ``subsection (a)(3)''.
    (d) Counting Personnel.--Subsection (d) of such section is 
amended--
            (1) by striking ``end-strengths authorized pursuant to 
        subsection (a)(1)'' and inserting ``strengths authorized 
        pursuant to paragraphs (1) and (2) of subsection (a)''; and
            (2) in paragraph (9)(B), by striking ``subsection 
        (a)(1)(A)'' and inserting ``subsection (a)(1)''.
    (e) Navy Strength When Augmented by Coast Guard.--Subsection (e) of 
such section is amended by striking ``subsection (a)(1)'' and inserting 
``paragraphs (1) and (2) of subsection (a)''.
    (f) Authority of Secretaries of Military Departments To Vary 
Strengths.--Subsection (f) of such section is amended--
            (1) by striking ``end strength'' both places it appears and 
        inserting ``strength''; and
            (2) by striking ``subsection (a)(1)(A)'' in the first 
        sentence and inserting ``subsection (a)(1)''.
    (g) Authorization of Strengths for Dual Status Military 
Technicians.--Subsection (g) of such section is amended by striking 
``end strength'' both places it appears and inserting ``strength''.
    (h) Conforming Amendments.--(1) Section 168(f)(1)(A) of title 10, 
United States Code, is amended by striking ``end strength for active-
duty personnel authorized pursuant to section 115(a)(1)'' and inserting 
``strengths for active-duty personnel authorized pursuant to paragraphs 
(1) and (2) of section 115(a)''.
    (2) Section 691(f) of such title is amended by striking ``section 
115(a)(1)'' and inserting ``paragraphs (1) and (2) of section 115(a)''.
    (3) Section 3201(b) of such title is amended by striking ``section 
115(a)(1)'' and inserting ``paragraphs (1) and (2) of section 115(a)''.
    (4)(A) Section 10216 of such title is amended--
            (i) by striking ``end strengths'' in subsections (b)(1) and 
        (c)(1) and inserting ``strengths''; and
            (ii) by striking ``end strength'' each place it appears in 
        subsection (c)(2)(A) and inserting ``strength''.
    (B) The heading for subsection (c) is amended by striking ``End''.
    (5) Section 12310(c)(4) of such title is amended by striking ``end 
strength authorizations required by section 115(a)(1)(B) and 
115(a)(2)'' and inserting ``strength authorizations required by 
paragraphs (2) and (3) of section 115(a)''.
    (6) Section 16132(d) of such title is amended by striking ``end 
strength required to be authorized each year by section 115(a)(1)(B)'' 
in the second sentence and inserting ``strength required to be 
authorized each year by section 115(a)(2)''.
    (7) Section 112 of title 32, United States Code, is amended--
            (A) in subsection (e)--
                    (i) in the heading, by striking ``End-Strength'' 
                and inserting ``Strength''; and
                    (ii) by striking ``end strength'' and inserting 
                ``strength'';
            (B) in subsection (f)--
                    (i) in the heading, by striking ``End Strength'' 
                and inserting ``Strength''; and
                    (ii) in paragraph (2), by striking ``end strength'' 
                and inserting ``strength''; and
            (C) in subsection (g)(1), by striking ``end strengths'' and 
        inserting ``strengths''.

SEC. 422. EXCLUSION OF RECALLED RETIRED MEMBERS FROM CERTAIN STRENGTH 
              LIMITATIONS DURING PERIOD OF WAR OR NATIONAL EMERGENCY.

    (a) Annual Authorized End Strengths.--Section 115(d) of title 10, 
United States Code, is amended by adding at the end the following new 
paragraph:
            ``(12) Members of the armed forces ordered to active duty 
        under section 688 of this title during any period of war 
        declared by Congress or any period of national emergency 
        declared by Congress or the President in which members of a 
        reserve component are serving on active duty pursuant to an 
        order to active duty under section 12301 or 12302 of this 
        title, for so long as the members ordered to active duty under 
        such section 688 continue to serve on active duty during the 
        period of the war or national emergency and the one-year period 
        beginning on the date of the termination of the war or national 
        emergency, as the case may be.''
    (b) Strength Limitations for Officers in Pay Grades O-4 Through O-
6.--Section 523(b) of such title is amended by adding at the end the 
following new paragraph:
            ``(8) Officers ordered to active duty under section 688 of 
        this title during any period of war declared by Congress or any 
        period of national emergency declared by Congress or the 
        President in which members of a reserve component are serving 
        on active duty pursuant to an order to active duty under 
        section 12301 or 12302 of this title, for so long as the 
        members ordered to active duty under such section 688 continue 
        to serve on active duty during the period of the war or 
        national emergency and the one-year period beginning on the 
        date of the termination of the war or national emergency, as 
        the case may be.''.

              Subtitle D--Authorization of Appropriations

SEC. 431. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2004 a total of 
$99,194,206,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2004.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. RETENTION OF HEALTH PROFESSIONS OFFICERS TO FULFILL ACTIVE 
              DUTY SERVICE OBLIGATIONS FOLLOWING FAILURE OF SELECTION 
              FOR PROMOTION.

    (a) In General.--Subsection (a) of section 632 of title 10, United 
States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(4) if the officer is a health professions officer 
        described in subsection (c) who, as of the date of discharge 
        determined for the officer under paragraph (1), has not 
        completed an active duty service obligation incurred by the 
        officer under section 2005, 2114, 2123, or 2603 of this title, 
        be retained on active duty until the officer completes the 
        active duty service for which obligated, unless the Secretary 
        concerned determines that the completion of the service 
        obligation by the officer is not in the best interest of the 
        Army, Navy, Air Force, or Marine Corps, as the case may be.''.
    (b) Covered Health Professions Officers.--Section 632 of such title 
is amended by adding at the end the following new subsection:
    ``(c) Health Professions Officers.--Subsection (a)(4) applies to 
the following officers:
            ``(1) A medical officer.
            ``(2) A dental officer.
            ``(3) Any other officer appointed in a medical skill (as 
        defined in regulations prescribed by the Secretary of 
        Defense).''.
    (c) Technical Amendment.--Subsection (a)(3) of such section is 
amended by striking ``clause (1)'' and inserting ``paragraph (1)''.

SEC. 502. ELIGIBILITY FOR APPOINTMENT AS CHIEF OF ARMY VETERINARY 
              CORPS.

    (a) Appointment From Among Members of the Corps.--Section 3084 of 
title 10, United States Code, is amended by inserting after ``The Chief 
of the Veterinary Corps of the Army'' the following: ``shall be 
appointed from among officers of the Veterinary Corps. The Chief of the 
Veterinary Corps''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to appointments of the Chief of the Veterinary Corps of the Army 
that are made on or after the date of the enactment of this Act.

             Subtitle B--Reserve Component Personnel Policy

SEC. 511. EXPANDED AUTHORITY FOR USE OF READY RESERVE IN RESPONSE TO 
              TERRORISM.

    Section 12304(b)(2) of title 10, United States Code, is amended by 
striking ``catastrophic''.

SEC. 512. STREAMLINED PROCESS FOR CONTINUING OFFICERS ON THE RESERVE 
              ACTIVE-STATUS LIST.

    (a) Continuation.--Section 14701 of title 10, United States Code, 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``by a selection 
                board convened under section 14101(b) of this title'' 
                and inserting ``under regulations prescribed under 
                subsection (b)'';
                    (B) in paragraph (6), by striking ``as a result of 
                the convening of a selection board under section 
                14101(b) of this title'';
            (2) by striking subsections (b) and (c); and
            (3) by redesignating subsection (d) as subsection (b).
    (b) Conforming Amendments.--Subsection (b) of section 14101 of such 
title is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.

SEC. 513. NATIONAL GUARD OFFICERS ON ACTIVE DUTY IN COMMAND OF NATIONAL 
              GUARD UNITS.

    (a) Continuation in State Status.--Subsection (a) of section 325 of 
title 32, United States Code, is amended--
            (1) by striking ``(a) Each'' and inserting ``(a) Relief 
        Required.--(1) Except as provided in paragraph (2), each''; and
            (2) by adding at the end the following new paragraph:
    ``(2) An officer of the Army National Guard of the United States or 
the Air National Guard of the United States is not relieved from duty 
in the National Guard of his State or Territory, or of Puerto Rico or 
the District of Columbia, under paragraph (1) while serving on active 
duty in command of a National Guard unit if--
            ``(A) the President authorizes such service in both duty 
        statuses; and
            ``(B) the Governor of his State or Territory or Puerto 
        Rico, or the Commanding General of the District of Columbia 
        National Guard, as the case may be, consents to such service in 
        both duty statuses.''.
    (b) Format Amendment.--Subsection (b) of such section is amended by 
inserting ``Return to State Status.--'' after ``(b)''.

             Subtitle C--Revision of Retirement Authorities

SEC. 521. PERMANENT AUTHORITY TO REDUCE THREE-YEAR TIME-IN-GRADE 
              REQUIREMENT FOR RETIREMENT IN GRADE FOR OFFICERS IN 
              GRADES ABOVE MAJOR AND LIEUTENANT COMMANDER.

    Section 1370(a)(2)(A) of title 10, United States Code, is amended 
by striking ``during the period beginning on October 1, 2002, and 
ending on December 31, 2003'' and inserting ``after September 30, 
2002''.

                   Subtitle D--Education and Training

SEC. 531. INCREASED FLEXIBILITY FOR MANAGEMENT OF SENIOR LEVEL 
              EDUCATION AND POST-EDUCATION ASSIGNMENTS.

    (a) Repeal of Post-Education Joint Duty Assignments Requirement.--
Subsection (d) of section 663 of title 10, United States Code, is 
repealed.
    (b) Repeal of Minimum Duration Requirement for Principal Course of 
Instruction at the Joint Forces Staff College.--Subsection (e) of such 
section is repealed.

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

    (a) Financial Assistance Program for Service on Active Duty.--
Section 2107(c) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking the first sentence and 
        inserting the following: ``The Secretary concerned may provide 
        financial assistance described in paragraph (3) for a student 
        appointed as a cadet or midshipman by the Secretary under 
        subsection (a).'';
            (2) in paragraph (2), by striking ``as described in 
        paragraph (1)'' and inserting ``as described in paragraph 
        (3)''; and
            (3) by adding at the end the following new paragraphs:
    ``(3)(A) The financial assistance provided for a student under this 
subsection shall be the payment of one of the two sets of expenses 
selected by the Secretary, as follows:
            ``(i) Tuition, fees, books, and laboratory expenses.
            ``(ii) Expenses for room and board and any other necessary 
        expenses imposed by the student's educational institution for 
        the academic program in which the student is enrolled, which 
        may include any of the expenses described in clause (i).
    ``(B) The total amount of the financial assistance provided for a 
student for an academic year under clause (ii) of subparagraph (A) may 
not exceed the total amount of the financial assistance that would 
otherwise have been provided for the student for that academic year 
under clause (i) of such subparagraph.
    ``(4) The Secretary of the military department concerned may 
provide for the payment of all expenses in the Secretary's department 
of administering the financial assistance program under this section, 
including the payment of expenses described in paragraph (3).''.
    (b) Financial Assistance Program for Service in Troop Program 
Units.--Section 2107a(c) of such title is amended to read as follows:
    ``(c)(1) The Secretary of the Army may provide financial assistance 
described in paragraph (2) for a student appointed as a cadet by the 
Secretary under subsection (a).
    ``(2)(A) The financial assistance provided for a student under this 
subsection shall be the payment of one of the two sets of expenses 
selected by the Secretary concerned, as follows:
            ``(i) Tuition, fees, books, and laboratory expenses.
            ``(ii) Expenses for room and board and any other necessary 
        expenses imposed by the student's educational institution for 
        the academic program in which the student is enrolled, which 
        may include any of the expenses described in clause (i).
    ``(B) The total amount of the financial assistance provided for a 
student for an academic year under clause (ii) of subparagraph (A) may 
not exceed the total amount of the financial assistance that would 
otherwise have been provided for the student for that academic year 
under clause (i) of such subparagraph.
    ``(3) The Secretary may provide for the payment of all expenses in 
the Department of the Army for administering the financial assistance 
program under this section, including the payment of expenses described 
in paragraph (2).''.

SEC. 533. ELIGIBILITY AND COST REIMBURSEMENT REQUIREMENTS FOR PERSONNEL 
              TO RECEIVE INSTRUCTION AT THE NAVAL POSTGRADUATE SCHOOL.

    (a) Expanded Eligibility for Enlisted Personnel.--Subsection (a)(2) 
of section 7045 of title 10, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking ``this paragraph'' in the second sentence 
        and inserting ``this subparagraph''; and
            (3) by adding at the end the following new subparagraphs:
    ``(B) The Secretary may permit an enlisted member of the armed 
forces to receive instruction in an executive level seminar at the 
Naval Postgraduate School.
    ``(C) The Secretary may permit an eligible enlisted member of the 
armed forces to receive instruction in connection with pursuit of a 
program of education in information assurance as a participant in the 
Information Security Scholarship program under chapter 112 of this 
title. To be eligible for instruction under this subparagraph, the 
enlisted member must have been awarded a baccalaureate degree by an 
institution of higher education.''.
    (b) Payment of Costs for Participants in Information Security 
Scholarship Program.--Subsection (b) of such section is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The requirements for payment of costs and fees under 
paragraph (1) shall be subject to such exceptions as the Secretary of 
Defense may prescribe for members of the armed forces who receive 
instruction at the Postgraduate School in connection with pursuit of a 
degree or certification as participants in the Information Security 
Scholarship program under chapter 112 of this title.''.
    ``(3) The Department of the Army, the Department of the Navy, and 
the Department of Transportation shall bear the cost of the instruction 
at the Air Force Institute of Technology that is received by officers 
detailed for that instruction by the Secretaries of the Army, Navy, and 
Transportation, respectively. In the case of an enlisted member 
permitted to receive instruction at the Institute, the Secretary of the 
Air Force shall charge that member only for such costs and fees as the 
Secretary considers appropriate (taking into consideration the 
admission of enlisted members on a space-available basis).
    (c) Conforming Amendments.--Paragraph (1) of such subsection (b), 
as redesignated by subsection (b)(1) of this section, is amended--
            (A) in the first sentence, by striking ``officers'' and 
        inserting ``members of the armed forces who are''; and
            (B) in the second sentence--
                    (i) by inserting ``under subsection (a)(2)(A)'' 
                after ``at the Postgraduate School''; and
                    (ii) by striking ``(taking into consideration the 
                admission of enlisted members on a space-available 
                basis)''.

SEC. 534. ACTIONS TO ADDRESS SEXUAL MISCONDUCT AT THE SERVICE 
              ACADEMIES.

    (a) Policy on Sexual Misconduct.--(1) The Secretary of the Army, 
the Secretary of the Navy, and the Secretary of the Air Force shall, 
under guidance prescribed by the Secretary of Defense, direct the 
Superintendent of the United States Military Academy, the 
Superintendent of the United States Naval Academy, and the 
Superintendent of the United States Air Force Academy, respectively, to 
prescribe a policy on sexual misconduct applicable to the personnel of 
the United States Military Academy, the United States Naval Academy, 
and the United States Air Force Academy, respectively.
    (2) The policy on sexual misconduct prescribed for an academy shall 
specify the following:
            (A) Programs to promote awareness of the incidence of rape, 
        acquaintance rape, and other sexual offenses of a criminal 
        nature that involve academy personnel.
            (B) Procedures that a cadet or midshipman, as the case may 
        be, should follow in the case of an occurrence of sexual 
        misconduct, including--
                    (i) a specification of the person or persons to 
                whom the alleged offense should be reported;
                    (ii) a specification of any other person whom the 
                victim should contact; and
                    (iii) procedures on the preservation of evidence 
                potentially necessary for proof of criminal sexual 
                assault.
            (C) Procedures for disciplinary action in cases of alleged 
        criminal sexual assault involving academy personnel.
            (D) Any other sanctions authorized to be imposed in a 
        substantiated case of misconduct involving academy personnel in 
        rape, acquaintance rape, or any other criminal sexual offense, 
        whether forcible or nonforcible.
            (E) Required training on the policy for all academy 
        personnel, including the specific training required for 
        personnel who process allegations of sexual misconduct 
        involving academy personnel.
    (b) Annual Assessment.--(1) The Secretary of Defense, through the 
Secretaries of the military departments, shall direct each 
Superintendent to conduct at the academy under the jurisdiction of the 
Superintendent an assessment in each academy program year to determine 
the effectiveness of the academy's policies, training, and procedures 
on sexual misconduct to prevent criminal sexual misconduct involving 
academy personnel.
    (2) For the assessment for each of the 2004, 2005, 2006, 2007, and 
2008 academy program years, the Superintendent of the academy shall 
conduct a survey of all academy personnel--
            (A) to measure--
                    (i) the incidence, in such program year, of sexual 
                misconduct events, on or off the academy reservation, 
                that have been reported to officials of the academy; 
                and
                    (ii) the incidence, in such program year, of sexual 
                misconduct events, on or off the academy reservation, 
                that have not been reported to officials of the 
                academy; and
            (B) to assess the perceptions of academy personnel on--
                    (i) the policies, training, and procedures on 
                sexual misconduct involving academy personnel;
                    (ii) the enforcement of such policies;
                    (iii) the incidence of sexual misconduct involving 
                academy personnel in such program year; and
                    (iv) any other issues relating to sexual misconduct 
                involving academy personnel.
    (c) Annual Report.--(1) The Secretary of the Army, the Secretary of 
the Navy, and the Secretary of the Air Force shall direct the 
Superintendent of the United States Military Academy, the 
Superintendent of the United States Naval Academy, and the 
Superintendent of the United States Air Force Academy, respectively, to 
submit to the Secretary a report on sexual misconduct involving academy 
personnel for each of the 2004, 2005, 2006, 2007, and 2008 academy 
program years.
    (2) The annual report for an academy under paragraph (1) shall 
contain, for the academy program year covered by the report, the 
following matters:
            (A) The number of sexual assaults, rapes, and other sexual 
        offenses involving academy personnel that have been reported to 
        academy officials during the program year, and the number of 
        the reported cases that have been substantiated.
            (B) The policies, procedures, and processes implemented by 
        the Secretary of the military department concerned and the 
        leadership of the academy in response to sexual misconduct 
        involving academy personnel during the program year.
            (C) In the report for the 2004 academy program year, a 
        discussion of the survey conducted under subsection (b), 
        together with an analysis of the results of the survey and a 
        discussion of any initiatives undertaken on the basis of such 
        results and analysis.
            (D) In the report for each of the subsequent academy 
        program years, the results of the annual survey conducted in 
        such program year under subsection (b).
            (E) A plan for the actions that are to be taken in the 
        following academy program year regarding prevention of and 
        response to sexual misconduct involving academy personnel.
    (3) The Secretary of a military department shall transmit the 
annual report on an academy under this subsection, together with the 
Secretary's comments on the report, to the Secretary of Defense and the 
Board of Visitors of the academy.
    (4) The Secretary of Defense shall transmit the annual report on 
each academy under this subsection, together with the Secretary's 
comments on the report to, the Committees on Armed Services of the 
Senate and the House of Representatives.
    (5) The report for the 2004 academy program year for an academy 
shall be submitted to the Secretary of the military department 
concerned not later than one year after the date of the enactment of 
this Act.
    (6) In this subsection, the term ``academy program year'' with 
respect to a year, means the academy program year that ends in that 
year.

SEC. 535. FUNDING OF EDUCATION ASSISTANCE ENLISTMENT INCENTIVES TO 
              FACILITATE NATIONAL SERVICE THROUGH DEPARTMENT OF DEFENSE 
              EDUCATION BENEFITS FUND.

    (a) In General.--Subsection (j) of section 510 of title 10, United 
States Code, is amended to read as follows:
    ``(j) Funding.--(1) Amounts for the payment of incentives under 
paragraphs (1) and (2) of subsection (e) shall be derived from amounts 
available to the Secretary of the military department concerned for the 
payment of pay, allowances and other expenses of the members of the 
armed force concerned.
    ``(2) Amounts for the payment of incentives under paragraphs (3) 
and (4) of subsection (e) shall be derived from the Department of 
Defense Education Benefits Fund under section 2006 of this title.''.
    (b) Conforming Amendments.--Section 2006(b) of such title is 
amended--
            (1) in paragraph (1), by inserting ``paragraphs (3) and (4) 
        of section 510(e) and'' after ``Department of Defense benefits 
        under''; and
            (2) in paragraph (2), by adding at the end the following 
        new subparagraph:
                    ``(E) The present value of future benefits payable 
                from the Fund for educational assistance under 
                paragraphs (3) and (4) of section 510(e) of this title 
                to persons who during such period become entitled to 
                such assistance.''.

                      Subtitle E--Military Justice

SEC. 551. EXTENDED LIMITATION PERIOD FOR PROSECUTION OF CHILD ABUSE 
              CASES IN COURTS-MARTIAL.

    Section 843(b) of title 10, United States Code (article 43 of the 
Uniform Code of Military Justice) is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2)(A) A person charged with having committed a child abuse 
offense against a child is liable to be tried by court-martial if the 
sworn charges and specifications are received before the child reaches 
the age of 25 years by an officer exercising summary court-martial 
jurisdiction with respect to that person.
    ``(B) In subparagraph (A), the term `child abuse offense' means an 
act that involves sexual or physical abuse of a person under 16 years 
of age and constitutes any of the following offenses:
            ``(i) Rape or carnal knowledge in violation of section 920 
        of this title (article 120).
            ``(ii) Maiming in violation of section 924 of this title 
        (article 124).
            ``(iii) Sodomy in violation of section 925 of this title 
        (article 126).
            ``(iv) Aggravated assault or assault consummated by a 
        battery in violation of section 928 of this title (article 
        128).
            ``(v) Indecent assault, assault with intent to commit 
        murder, voluntary manslaughter, rape, or sodomy, or indecent 
        acts or liberties with a child in violation of section 934 of 
        this title (article 134).''.

SEC. 552. CLARIFICATION OF BLOOD ALCOHOL CONTENT LIMIT FOR THE OFFENSE 
              UNDER THE UNIFORM CODE OF MILITARY JUSTICE OF DRUNKEN 
              OPERATION OF A VEHICLE, AIRCRAFT, OR VESSEL.

    Section 911 of title 10, United States Code (article 111 of the 
Uniform Code of Military Justice), is amended--
            (1) in subsection (a)(2), by striking ``is in excess of'' 
        and inserting ``is equal to or exceeds''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking subparagraph (A) 
                and inserting the following:
            ``(A) In the case of the operation or control of a vehicle, 
        aircraft, or vessel in the United States, such limit is the 
        lesser of--
                    ``(i) the blood alcohol content limit under the law 
                of the State in which the conduct occurred, except as 
                may be provided under paragraph (2) for conduct on a 
                military installation that is in more than one State; 
                or
                    ``(ii) the blood alcohol content limit specified in 
                paragraph (3).''; and
                    (B) by striking ``maximum'' in paragraphs (1)(B) 
                and (3).

                       Subtitle F--Other Matters

SEC. 561. HIGH-TEMPO PERSONNEL MANAGEMENT AND ALLOWANCE.

    (a) Deployment Management.--Section 991(a) of title 10, United 
States Code, is amended to read as follows:
    ``(a) Management Responsibilities.--(1) The deployment (or 
potential deployment) of a member of the armed forces shall be managed 
to ensure that the member is not deployed, or continued in a 
deployment, on any day on which the total number of days on which the 
member has been deployed out of the preceding 365 days would exceed the 
maximum number of deployment days prescribed for the purposes of this 
section by the Under Secretary of Defense for Personnel and Readiness. 
The maximum number of deployment days so prescribed may not exceed 220 
days.
    ``(2) A member may be deployed, or continued in a deployment, 
without regard to paragraph (1) if such deployment, or continued 
deployment, is approved by--
            ``(A) a member of the Senior Executive Service designated 
        by the Secretary of Defense to do so; or
            ``(B) the first officer in the member's chain of command 
        who is--
                    ``(i) a general officer or, in the case of the 
                Navy, an officer in a grade above captain; or
                    ``(ii) a colonel or, in the case of the Navy, a 
                captain who is recommended for promotion to brigadier 
                general or rear admiral, respectively, in a report of a 
                selection board convened under section 611(a) or 
                14101(a) of this title that has been approved by the 
                President.''.
    (b) High-Tempo Allowance.--(1) Subsection (a) of section 436 of 
title 37, United States Code, is amended to read as follows:
    ``(a) Monthly Allowance.--The Secretary of the military department 
concerned shall pay a high-tempo allowance to a member of the armed 
forces under the Secretary's jurisdiction for the following months:
            ``(1) Each month during which the member is deployed and 
        has, as of any day during that month, been deployed--
                    ``(A) for at least the number of days out of the 
                preceding 730 days that is prescribed for the purpose 
                of this subparagraph by the Under Secretary of Defense 
                for Personnel and Readiness, except that the number of 
                days so prescribed may not be more than 401 days; or
                    ``(B) at least the number of consecutive days that 
                is prescribed for the purpose of this subparagraph by 
                the Under Secretary of Defense for Personnel and 
                Readiness, except that the number of days so prescribed 
                may not be more than 191 days.
            ``(2) Each month that includes a day on which the member 
        serves on active duty pursuant to a call or order to active 
        duty for a period of more than 30 days under a provision of law 
        referred to in section 101(a)(13)(B) of title 10, if such 
        period begins within one year after the date on which the 
        member was released from previous service on active duty for a 
        period of more than 30 days under a call or order issued under 
        such a provision of law.''.
    (2) Subsection (c) of such section is amended to read as follows:
    ``(c) Monthly Amount.--The Secretary of Defense shall prescribe the 
amount of the monthly allowance payable to a member under this section. 
The amount may not exceed $1,000.''.
    (3) Such section is further amended by adding at the end the 
following new subsection:
    ``(g) Service in Exempted Duty Positions.--(1) Except as provided 
in paragraph (2), a member is not eligible for the high-tempo allowance 
under this section while serving in a duty position designated as 
exempt for the purpose of this subsection by the Secretary concerned 
with the approval of the Under Secretary of Defense for Personnel and 
Readiness.
    ``(2) A designation of a duty position as exempt under paragraph 
(1) does not terminate the eligibility for the high-tempo allowance 
under this section of a member serving in the duty position at the time 
the designation is made.
    ``(h) Payment From Operation and Maintenance Funds.--The monthly 
allowance payable to a member under this section shall be paid from 
appropriations available for operation and maintenance for the armed 
force in which the member serves.''.
    (4) Such section is further amended--
            (A) in subsections (d) and (e), by striking ``high-
        deployment per diem'' and inserting ``high-tempo allowance''; 
        and
            (B) in subsection (f)--
                    (i) by striking ``per diem'' and inserting 
                ``allowance''; and
                    (ii) by striking ``day on which'' and inserting 
                ``month during which''.
    (5)(A) The heading of such section is amended to read as follows:
``Sec. 436. High-tempo allowance: lengthy or numerous deployments; 
              frequent mobilizations''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 7 of such title is amended to read as follows:

``436. High-tempo allowance: lengthy or numerous deployments; frequent 
                            mobilizations.''.
    (c) Modified Reporting Requirement.--Section 487(b)(5) of title 10, 
United States Code, is amended to read as follows:
            ``(5) For each of the armed forces, the description shall 
        indicate the number of members who received the high-tempo 
        allowance under section 436 of title 37, the total number of 
        months for which the allowance was paid to members, and the 
        total amount spent on the allowance.''.

SEC. 562. ALTERNATE INITIAL MILITARY SERVICE OBLIGATION FOR PERSONS 
              ACCESSED UNDER DIRECT ENTRY PROGRAM.

    (a) Requirement for Program.--The Secretary of Defense shall carry 
out a direct entry program for persons with critical military skills 
who enter the Armed Forces for an initial period of service in the 
Armed Forces.
    (b) Eligible Persons.--The Secretary shall prescribe the 
eligibility requirements for entering the Armed Forces under the direct 
entry program carried out under this section. The Secretary may limit 
eligibility as the Secretary determines appropriate to meet the needs 
of the Armed Forces.
    (c) Critical Military Skills.--The Secretary shall designate the 
military skills that are critical military skills for the purposes of 
this section.
    (d) Initial Service Obligation.--(1) The Secretary shall prescribe 
the period of initial service in the Armed Forces that is to be 
required of a person entering the Armed Forces under the direct entry 
program. The period may not be less than three years.
    (2) Section 651(a) of title 10, United States Code, shall not apply 
to a person who enters the Armed Forces under the direct entry program.
    (e) Reports.--(1) Not later than 30 days after the direct entry 
program commences under this section, the Secretary shall submit a 
report on the establishment of the program to the Committees on Armed 
Services of the Senate and the House of Representatives. The report 
shall include the following:
            (A) A list of the military skills designated as critical 
        military skills for the purposes of this section.
            (B) The eligibility requirements for entering the Armed 
        Forces under the program.
            (C) A detailed discussion of the other features of the 
        program.
    (2) Whenever the list of critical military skills is revised, the 
Secretary shall promptly submit the revised list to the committees 
referred to in paragraph (1).
    (3) The Secretary shall submit a final report on the program to 
Congress not later than 180 days after the date on which the direct 
entry program terminates under subsection (f). The report shall include 
the Secretary's assessment of the effectiveness of the direct entry 
program for recruiting personnel with critical military skills for the 
Armed Forces.
    (f) Period of Program.--The direct entry program under this section 
shall commence on October 1, 2003, and shall terminate on September 30, 
2005.

SEC. 563. POLICY ON CONCURRENT DEPLOYMENT TO COMBAT ZONES OF BOTH 
              MILITARY SPOUSES OF MILITARY FAMILIES WITH MINOR 
              CHILDREN.

    (a) Publication of Policy.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall--
            (1) prescribe the policy of the Department of Defense on 
        concurrent deployment to a combat zone of both spouses of a 
        dual-military family with one or more minor children; and
            (2) transmit the policy to the Committees on Armed Services 
        of the Senate and the House of Representatives.
    (b) Dual-Military Family Defined.--In this section, the term 
``dual-military family'' means a family in which both spouses are 
members of the Armed Forces.

SEC. 564. ENHANCEMENT OF VOTING RIGHTS OF MEMBERS OF THE UNIFORMED 
              SERVICES.

    (a) Standard for Invalidation of Ballots Cast by Absent Uniformed 
Services Voters in Federal Elections.--.(1) Section 102 of the 
Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff-
1) is amended--
            (A) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (B) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Standards for Invalidation of Certain Ballots.--
            ``(1) In general.--A State may not refuse to count a ballot 
        submitted in an election for Federal office by an absent 
        uniformed services voter--
                    ``(A) solely on the grounds that the ballot 
                lacked--
                            ``(i) a notarized witness signature;
                            ``(ii) an address (other than on a Federal 
                        write-in absentee ballot, commonly known as 
                        `SF186');
                            ``(iii) a postmark if there are any other 
                        indicia that the vote was cast in a timely 
                        manner; or
                            ``(iv) an overseas postmark; or
                    ``(B) solely on the basis of a comparison of 
                signatures on ballots, envelopes, or registration forms 
                unless there is a lack of reasonable similarity between 
                the signatures.
            ``(2) No effect on filing deadlines under state law.--
        Nothing in this subsection may be construed to affect the 
        application to ballots submitted by absent uniformed services 
        voters of any ballot submission deadline applicable under State 
        law.''.
    (2) The amendments made by paragraph (1) shall apply with respect 
to ballots described in section 102(c) of the Uniformed and Overseas 
Citizens Absentee Voting Act, as added by paragraph (1), that are 
submitted with respect to elections that occur after the date of the 
enactment of this Act.
    (b) Maximization of Access of Recently Separated Uniformed Services 
Voters to the Polls.--(1) Section 102(a) of the Uniformed and Overseas 
Citizens Absentee Voting Act (42 U.S.C. 1973ff-1) is amended--
            (A) in paragraph (4), by striking ``and'' at the end;
            (B) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (C) by adding at the end the following new paragraphs:
            ``(6) in addition to using the postcard form for the 
        purpose described in paragraph (4), accept and process any 
        otherwise valid voter registration application submitted by a 
        uniformed service voter for the purpose of voting in an 
        election for Federal office; and
            ``(7) permit each recently separated uniformed services 
        voter to vote in any election for which a voter registration 
        application has been accepted and processed under this section 
        if that voter--
                    ``(A) has registered to vote under this section; 
                and
                    ``(B) is eligible to vote in that election under 
                State law.''.
    (2) The amendments made by paragraph (1) shall apply with respect 
to elections for Federal office that occur after the date of the 
enactment of this Act.
    (c) Definitions.--Section 107 of the Uniformed and Overseas 
Citizens Absentee Voting Act (42 U.S.C. 1973ff-6) is amended--
            (1) by redesignating paragraphs (7) and (8) as paragraphs 
        (9) and (11), respectively;
            (2) by inserting after paragraph (6) the following new 
        paragraph:
            ``(7) `recently separated uniformed services voter' means 
        any individual who was a uniformed services voter on the date 
        that is 60 days before the date on which the individual seeks 
        to vote and who--
                    ``(A) presents to the election official Department 
                of Defense form 214 evidencing the individual's former 
                status as such a voter, or any other official proof of 
                such status;
                    ``(B) is no longer such a voter; and
                    ``(C) is otherwise qualified to vote in that 
                election;''; and
            (3) by inserting after paragraph (9), as so redesignated, 
        the following new paragraph:
            ``(10) `uniformed services voter' means--
                    ``(A) a member of a uniformed service in active 
                service;
                    ``(B) a member of the merchant marine; and
                    ``(C) a spouse or dependent of a member referred to 
                in subparagraph (A) or (B) who is qualified to vote; 
                and''.

SEC. 565. CERTAIN TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS 
              OF MEMBERS OF THE ARMED FORCES WHO HAVE COMMITTED 
              DEPENDENT ABUSE.

    Section 406(h) of title 37, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4)(A) If the Secretary concerned makes a determination described 
in subparagraph (B) with respect to the spouse or a dependent of a 
member described in that subparagraph and a request described in 
subparagraph (C) has been by the spouse or on behalf of such dependent, 
the Secretary may provide any benefit authorized for a member under 
paragraph (1) or (3) to the spouse or such dependent in lieu of 
providing such benefit to the member.
    ``(B) A determination described in this subparagraph is a 
determination by the commanding officer of a member that--
            ``(i) the member has committed a dependent-abuse offense 
        against the spouse or a dependent of the member;
            ``(ii) a safety plan and counseling have been provided to 
        the spouse or such dependent;
            ``(iii) the safety of the spouse or such dependent is at 
        risk; and
            ``(iv) the relocation of the spouse or such dependent is 
        advisable.
    ``(C) A request described in this subparagraph is a request by the 
spouse of a member, or by the parent of a dependent child in the case 
of a dependent child of a member, for relocation.
    ``(D) Transportation may be provided under this paragraph for 
household effects or a motor vehicle only if a written agreement of the 
member, or an order of a court of competent jurisdiction, gives 
possession of the effects or vehicle to the spouse or dependent of the 
member concerned.
    ``(E) In this paragraph, the term `dependent-abuse offense' means 
an offense described in section 1059(c) of title 10.''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2004 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2004, the rates 
of monthly basic pay for members of the uniformed services within each 
pay grade are as follows:
      

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,751.10   8,004.90   8,173.20   8,220.60    8,430.30
O-7.............   6,440.70   6,739.80   6,878.40   6,988.50    7,187.40
O-6.............   4,773.60   5,244.30   5,588.40   5,588.40    5,609.70
O-5.............   3,979.50   4,482.90   4,793.40   4,851.60    5,044.80
O-4.............   3,433.50   3,974.70   4,239.90   4,299.00    4,545.30
O-3\3\..........   3,018.90   3,422.40   3,693.90   4,027.20    4,220.10
O-2\3\..........   2,608.20   2,970.60   3,421.50   3,537.00    3,609.90
O-1\3\..........   2,264.40   2,356.50   2,848.50   2,848.50    2,848.50
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,781.90   8,863.50   9,197.10   9,292.80    9,579.90
O-7.............   7,384.20   7,611.90   7,839.00   8,066.70    8,781.90
O-6.............   5,850.00   5,882.10   5,882.10   6,216.30    6,807.30
O-5.............   5,161.20   5,415.90   5,602.80   5,844.00    6,213.60
O-4.............   4,809.30   5,137.80   5,394.00   5,571.60    5,673.60
O-3\3\..........   4,431.60   4,568.70   4,794.30   4,911.30    4,911.30
O-2\3\..........   3,609.90   3,609.90   3,609.90   3,609.90    3,609.90
O-1\3\..........   2,848.50   2,848.50   2,848.50   2,848.50    2,848.50
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $12,524.7  $12,586.2  $12,847.8  $13,303.80
                                     0          0          0
O-9.............       0.00  10,954.50  11,112.30  11,340.30   11,738.40
O-8.............   9,995.70  10,379.10  10,635.30  10,635.30   10,635.30
O-7.............   9,386.10   9,386.10   9,386.10   9,386.10    9,433.50
O-6.............   7,154.10   7,500.90   7,698.30   7,897.80    8,285.40
O-5.............   6,389.70   6,563.40   6,760.80   6,760.80    6,760.80
O-4.............   5,733.00   5,733.00   5,733.00   5,733.00    5,733.00
O-3\3\..........   4,911.30   4,911.30   4,911.30   4,911.30    4,911.30
O-2\3\..........   3,609.50   3,609.50   3,609.50   3,609.50    3,609.50
O-1\3\..........   2,848.50   2,848.50   2,848.50   2,848.50    2,848.50
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades O-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\Subject to the preceding footnote, the rate of basic pay for an
  officer in this grade while serving as Chairman or Vice Chairman of
  the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, Commandant of the Coast Guard, or commander of a unified or
  specified combatant command (as defined in section 161(c) of title 10,
  United States Code) is $14,634.20, regardless of cumulative years of
  service computed under section 205 of title 37, United States Code.
\3\This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $4,027.20   $4,220.10
O-2E............       0.00       0.00       0.00   3,537.00    3,609.90
O-1E............       0.00       0.00       0.00   2,848.50    3,042.30
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,431.60  $4,568.70  $4,794.30  $4,984.20   $5,092.80
O-2E............   3,724.80   3,918.60   4,068.60   4,180.20    4,180.20
O-1E............   3,154.50   3,269.40   3,382.20   3,537.00    3,537.00
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,241.30  $5,241.30  $5,241.30  $5,241.30   $5,241.30
O-2E............   4,180.20   4,180.20   4,180.20   4,180.20    4,180.20
O-1E............   3,537.00   3,537.00   3,537.00   3,537.00    3,537.00
------------------------------------------------------------------------


                           WARRANT OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,119.40   3,355.80   3,452.40   3,547.20   3,710.40
W-3..............   2,848.80   2,967.90   3,089.40   3,129.30   3,257.10
W-2..............   2,505.90   2,649.00   2,774.10   2,865.30   2,943.30
W-1..............   2,212.80   2,394.00   2,515.20   2,593.50   2,802.30
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,871.50   4,035.00   4,194.30   4,359.00   4,617.30
W-3..............   3,403.20   3,595.80   3,786.30   3,988.80   4,140.60
W-2..............   3,157.80   3,321.60   3,443.40   3,562.20   3,643.80
W-1..............   2,928.30   3,039.90   3,164.70   3,247.20   3,321.90
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,360.70  $5,544.30  $5,728.80  $5,914.20
W-4..............   4,782.60   4,944.30   5,112.00   5,277.00   5,445.90
W-3..............   4,291.80   4,356.90   4,424.10   4,570.20   4,716.30
W-2..............   3,712.50   3,843.00   3,972.60   4,103.70   4,103.70
W-1..............   3,443.70   3,535.80   3,535.80   3,535.80   3,535.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\2\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,145.00   2,341.20   2,430.60   2,549.70   2,642.10
E-6..............   1,855.50   2,041.20   2,131.20   2,218.80   2,310.00
E-5..............   1,700.10   1,813.50   1,901.10   1,991.10   2,130.60
E-4..............   1,558.20   1,638.30   1,726.80   1,814.10   1,891.50
E-3..............   1,407.00   1,495.50   1,585.50   1,585.50   1,585.50
E-2..............   1,337.70   1,337.70   1,337.70   1,337.70   1,337.70
E-1\3\...........   1,193.40   1,193.40   1,193.40   1,193.40   1,193.40
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\2\...........      $0.00  $3,769.20  $3,854.70  $3,962.40  $4,089.30
E-8..............   3,085.50   3,222.00   3,306.30   3,407.70   3,517.50
E-7..............   2,801.40   2,891.10   2,980.20   3,139.80   3,219.60
E-6..............   2,516.10   2,596.20   2,685.30   2,763.30   2,790.90
E-5..............   2,250.90   2,339.70   2,367.90   2,367.90   2,367.90
E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
E-2..............   1,337.70   1,337.70   1,337.70   1,337.70   1,337.70
E-1\3\...........   1,193.40   1,193.40   1,193.40   1,193.40   1,193.40
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\2\...........  $4,216.50  $4,421.10  $4,594.20  $4,776.60  $5,054.70
E-8..............   3,715.50   3,815.70   3,986.40   4,081.20   4,314.30
E-7..............   3,295.50   3,341.70   3,498.00   3,599.10   3,855.00
E-6..............   2,809.80   2,809.80   2,809.80   2,809.80   2,809.80
E-5..............   2,367.90   2,367.90   2,367.90   2,367.90   2,367.90
E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
E-2..............   1,337.70   1,337.70   1,337.70   1,337.70   1,337.70
E-1\3\...........   1,193.40   1,193.40   1,193.40   1,193.40   1,193.40
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\Subject to the preceding footnote, the rate of basic pay for an
  enlisted member in this grade while serving as Sergeant Major of the
  Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of
  the Air Force, Sergeant Major of the Marine Corps, or Master Chief
  Petty Officer of the Coast Guard, is $6,090.90, regardless of
  cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,104.00.

SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

    (a) Requirement for Annual Adjustment.--Subsection (a) of section 
1009 of title 37, United States Code, is amended to read as follows:
    ``(a) Requirement for Annual Adjustment.--Effective on January 1 of 
each year, the rates of basic pay for members of the uniformed services 
under section 203(a) of this title shall be increased under this 
section.''.
    (b) Effectiveness of Adjustment.--Subsection (b) of such section is 
amended by striking ``shall--'' and all that follows and inserting 
``shall have the force and effect of law.''.
    (c) Percentage of Adjustment.--Subsection (c) of such section is 
amended to read as follow:
    ``(c) Equal Percentage Increase for All Members.--(1) An adjustment 
made under this section in a year shall provide all eligible members 
with an increase in the monthly basic pay that is the percentage 
(rounded to the nearest one-tenth of 1 percent) by which the ECI for 
the base quarter of the year before the preceding year exceeds the ECI 
for the base quarter of the second year before the preceding calendar 
year (if at all).
    ``(2) Notwithstanding paragraph (1), but subject to subsection (d), 
the percentage of the adjustment taking effect under this section 
during each of fiscal years 2004, 2005, and 2006, shall be one-half of 
1 percentage point higher than the percentage that would otherwise be 
applicable under such paragraph.''.
    (d) Repeal of Allocation Authority.--Such section is further 
amended--
            (1) by striking subsections (d), (e), and (g); and
            (2) redesignating subsection (f) as subsection (d).
    (e) Presidential Determination of Need for Alternative Pay 
Adjustment.--Such section, as amended by subsection (d), is further 
amended adding at the end the following new subsection:
    ``(e) Presidential Determination of Need for Alternative Pay 
Adjustment.--(1) If, because of national emergency or serious economic 
conditions affecting the general welfare, the President considers the 
pay adjustment which would otherwise be required by this section in any 
year to be inappropriate, the President shall prepare and transmit to 
Congress before September 1 of the preceding year a plan for such 
alternative pay adjustments as the President considers appropriate, 
together with the reasons therefor.
    ``(2) In evaluating an economic condition affecting the general 
welfare under this subsection, the President shall consider pertinent 
economic measures including the Indexes of Leading Economic Indicators, 
the Gross National Product, the unemployment rate, the budget deficit, 
the Consumer Price Index, the Producer Price Index, the Employment Cost 
Index, and the Implicit Price Deflator for Personal Consumption 
Expenditures.
    ``(3) The President shall include in the plan submitted to Congress 
under paragraph (1) an assessment of the impact that the alternative 
pay adjustments proposed in the plan would have on the Government's 
ability to recruit and retain well-qualified persons for the uniformed 
services.''.
    (f) Definitions.--Such section, as amended by subsection (e), is 
further amended by adding at the end the following:
    ``(f) Definitions.--In this section:
            ``(1) The term `ECI' means the Employment Cost Index (wages 
        and salaries, private industry workers) published quarterly by 
        the Bureau of Labor Statistics.
            ``(2) The term `base quarter' for any year is the 3-month 
        period ending on September 30 of such year.''.

SEC. 603. COMPUTATION OF BASIC PAY RATE FOR COMMISSIONED OFFICERS WITH 
              PRIOR ENLISTED OR WARRANT OFFICER SERVICE.

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

SEC. 604. PILOT PROGRAM OF MONTHLY SUBSISTENCE ALLOWANCE FOR NON-
              SCHOLARSHIP SENIOR ROTC MEMBERS COMMITTING TO CONTINUE 
              ROTC PARTICIPATION AS SOPHOMORES.

    (a) Authority.--Section 209 of title 37, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Non-Scholarship Senior ROTC Members Not in Advanced 
Training.--(1) A member of the Senior Reserve Officers' Training Corps 
described in subsection (b) is entitled to a monthly subsistence 
allowance at a rate prescribed under subsection (a).
    ``(2) To be entitled to receive a subsistence allowance under this 
subsection, a member must--
            ``(A) be a citizen of the United States;
            ``(B) enlist in an armed force under the jurisdiction of 
        the Secretary of the military department concerned for the 
        period prescribed by the Secretary;
            ``(C) contract, with the consent of his parent or guardian 
        if he is a minor, with the Secretary of the military department 
        concerned, or his designated representative, to serve for the 
        period required by the program;
            ``(D) agree in writing that he will accept an appointment, 
        if offered, as a commissioned officer in the Army, Navy, Air 
        Force, or Marine Corps, as the case may be, and that he will 
        serve in the armed forces for the period prescribed by the 
        Secretary;
            ``(E) successfully complete the first year of a four-year 
        Senior Reserve Officers' Training Corps course;
            ``(F) not be eligible for advanced training under section 
        2104 of title 10;
            ``(G) not be appointed under section 2107 of title 10; and
            ``(H) execute a certificate of loyalty in such form as the 
        Secretary of Defense prescribes or take a loyalty oath as 
        prescribed by the Secretary.
    ``(3) The first month for which a monthly subsistence allowance is 
payable to a member under this subsection shall be a month designated 
by the Secretary of the military department concerned that begins after 
the member satisfies the condition in subparagraph (E) of paragraph 
(2). Payment of the subsistence allowance shall continue for as long as 
the member continues to meet the conditions in such paragraph and the 
member's obligations under the enlistment, contract, and agreement 
entered into as described in such paragraph. In no event, however, may 
a member receive the monthly subsistence allowance for more than 20 
months.
    ``(4) In this subsection, the term `program' means the Senior 
Reserve Officers' Training Corps of an armed force.
    ``(5) No subsistence allowance may be paid under this subsection 
with respect to a contract that is entered into as described in 
paragraph (2)(C) after December 31, 2006.''.
    (b) Effective Date.--Subsection (e) of section 209 of title 37, 
United States Code (as added by subsection (a)), shall take effect on 
January 1, 2004.

SEC. 605. BASIC ALLOWANCE FOR HOUSING FOR EACH MEMBER MARRIED TO 
              ANOTHER MEMBER WITHOUT DEPENDENTS WHEN BOTH SPOUSES ARE 
              ON SEA DUTY.

    (a) Entitlement.--Section 403(f)(2)(C) of title 37, United States 
Code, is amended--
            (1) in the first sentence, by striking ``are jointly 
        entitled to one basic allowance for housing'' and inserting 
        ``are each entitled to a basic allowance for housing''; and
            (2) by striking ``The amount of the allowance'' and all 
        that follows and inserting ``The amount of the allowance 
        payable to a member under the preceding sentence shall be based 
        on the without dependents rate for the pay grade of the 
        member.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 606. INCREASED RATE OF FAMILY SEPARATION ALLOWANCE.

    (a) Rate.--Section 427(a)(1) of title 37, United States Code, is 
amended by striking ``$100'' and inserting ``$250''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

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

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR CERTAIN HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2003'' and inserting ``December 31, 2004''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2004'' and inserting ``January 1, 
2005''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2003'' and inserting ``December 31, 2004''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2003'' 
and inserting ``December 31, 2004''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(f) of such title is 
amended by striking ``December 31, 2003'' and inserting ``December 31, 
2004''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2003'' and inserting 
``December 31, 2004''.

SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR 
              NUCLEAR OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 2003'' and inserting ``December 31, 
2004''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2003'' and inserting ``December 
31, 2004''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2003'' and inserting 
``December 31, 2004''.

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 
              AUTHORITIES.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2003'' and 
inserting ``December 31, 2004''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2003'' and inserting 
``December 31, 2004''.
    (c) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2003'' and inserting 
``December 31, 2004''.
    (d) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2003'' and inserting ``December 31, 2004''.
    (e) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2003'' and 
inserting ``December 31, 2004''.

SEC. 615. SPECIAL PAY FOR RESERVE OFFICERS HOLDING POSITIONS OF UNUSUAL 
              RESPONSIBILITY AND OF CRITICAL NATURE.

    (a) Eligibility.--Section 306 of title 37, United States Code, is 
amended--
            (1) in subsection (a), by inserting ``under section 201 of 
        this title, or the compensation under section 206 of this 
        title,'' after ``is entitled to the basic pay'';
            (2) by redesignating subsections (b) through (e) as 
        subsections (c) through (f), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) In the case of an officer who is a member of a reserve 
component, special pay under subsection (a) shall be paid at the rate 
of \1/30\ of the monthly rate authorized by that subsection for each 
day of the performance of duties described in that subsection.''.
    (b) Limitation.--Subsection (d) of such section, as redesignated by 
subsection (a)(2) of this section, is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Of the number of officers in the Selected Reserve of the 
Ready Reserve of an armed force who are not on active duty (other than 
for training), not more than 5 percent of the number of such officers 
in each of the pay grades O-3 and below, and not more than 10 percent 
of the number of such officers in pay grade O-4, O-5, or O-6, may be 
paid special pay under subsection (b).''.

SEC. 616. ASSIGNMENT INCENTIVE PAY FOR SERVICE IN KOREA.

    (a) Authority.--(1) Chapter 5 of title 37, United States Code, is 
amended by inserting after section 307a the following new section:
``Sec. 307b. Special pay: Korea service incentive pay
    ``(a) Authority.--The Secretary concerned shall pay monthly 
incentive pay under this section to a member of a uniformed service for 
the period that the member performs service in Korea while entitled to 
basic pay.
    ``(b) Rate.--The monthly rate of incentive pay payable to a member 
under this section is $100.
    ``(c) Relationship to Other Pay and Allowances.--Incentive pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(d) 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 temporary duty 
performed by the member pursuant to orders or absence of the member for 
authorized leave.
    ``(e) Termination of Authority.--Special pay may not be paid under 
this section for months beginning after December 31, 2005.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 307a the 
following new item:

``307b. Special pay: Korea service incentive pay.''.
    (b) Effective Date.--Section 307(b) of title 37, United States Code 
(as added by subsection (a)), shall take effect on October 1, 2003.

SEC. 617. INCREASED MAXIMUM AMOUNT OF REENLISTMENT BONUS FOR ACTIVE 
              MEMBERS.

    (a) Maximum Amount.--Section 308(a)(2)(B) of title 37, United 
States Code, is amended by striking ``$60,000'' and inserting 
``$70,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003, and shall apply with respect to 
reenlistments and extensions of enlistments that take effect on or 
after that date.

SEC. 618. PAYMENT OF SELECTED RESERVE REENLISTMENT BONUS TO MEMBERS OF 
              SELECTED RESERVE WHO ARE MOBILIZED.

    Section 308b of title 37, United States Code, is amended--
            (1) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Payment to Mobilized Members.--In the case of a member 
entitled to a bonus under this section who is called or ordered to 
active duty, any amount of such bonus that is payable to the member 
during the period of active duty of the member shall be paid the member 
during that period of active duty without regard to the fact that the 
member is serving on active duty pursuant to such call or order to 
active duty.''.

SEC. 619. INCREASED RATE OF HOSTILE FIRE AND IMMINENT DANGER SPECIAL 
              PAY.

    (a) Rate.--Section 310(a) of title 37, United States Code, is 
amended by striking ``$150'' and inserting ``$225''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 620. AVAILABILITY OF HOSTILE FIRE AND IMMINENT DANGER SPECIAL PAY 
              FOR RESERVE COMPONENT MEMBERS ON INACTIVE DUTY.

    (a) Expansion and Clarification of Current Law.--Section 310 of 
title 37, United States Code, is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by striking subsection (a) and inserting the following 
        new subsections:
    ``(a) Eligibility and Special Pay Amount.--Under regulations 
prescribed by the Secretary of Defense, a member of a uniformed service 
may be paid special pay at the rate of $150 for any month in which--
            ``(1) the member was entitled to basic pay or compensation 
        under section 204 or 206 of this title; and
            ``(2) the member--
                    ``(A) was subject to hostile fire or explosion of 
                hostile mines;
                    ``(B) was on duty in an area in which the member 
                was in imminent danger of being exposed to hostile fire 
                or explosion of hostile mines and in which, during the 
                period the member was on duty in the area, other 
                members of the uniformed services were subject to 
                hostile fire or explosion of hostile mines;
                    ``(C) was killed, injured, or wounded by hostile 
                fire, explosion of a hostile mine, or any other hostile 
                action; or
                    ``(D) was on duty in a foreign area in which the 
                member was subject to the threat of physical harm or 
                imminent danger on the basis of civil insurrection, 
                civil war, terrorism, or wartime conditions.
    ``(b) Continuation During Hospitalization.--A member covered by 
subsection (a)(2)(C) who is hospitalized for the treatment of the 
injury or wound may be paid special pay under this section for not more 
than three additional months during which the member is so 
hospitalized.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (c), as redesignated by subsection 
        (a)(1), by inserting ``Limitations and Administration.--'' 
        before ``(1)''; and
            (2) in subsection (d), as redesignated by subsection 
        (a)(1), by inserting ``Determinations of Fact.--'' before 
        ``Any''.
    (c) Effective Date.--Subsections (a) and (b) of section 310 of 
title 37, United States Code, as added by subsection (a)(2), shall take 
effect as of September 11, 2001.

SEC. 621. EXPANSION OF OVERSEAS TOUR EXTENSION INCENTIVE PROGRAM TO 
              OFFICERS.

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

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

``705. Rest and recuperation absence: qualified members extending duty 
                            at designated locations overseas.''.

SEC. 622. ELIGIBILITY OF WARRANT OFFICERS FOR ACCESSION BONUS FOR NEW 
              OFFICERS IN CRITICAL SKILLS.

    (a) Eligibility.--Section 324 of title 37, United States Code, is 
amended in subsections (a) and (f)(1) by inserting ``or an 
appointment'' after ``commission''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 623. INCENTIVE BONUS FOR CONVERSION TO MILITARY OCCUPATIONAL 
              SPECIALTY TO EASE PERSONNEL SHORTAGE.

    (a) In General.--Chapter 5 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 326. Incentive bonus: conversion to military occupational 
              specialty to ease personnel shortage
    ``(a) Incentive Bonus Authorized.--The Secretary concerned may pay 
a bonus under this section to an eligible member of the armed forces 
who executes a written agreement to convert to, and serve for a period 
of not less than four years in, a military occupational specialty for 
which there is a shortage of trained and qualified personnel.
    ``(b) Eligible Members.--A member is eligible for a bonus under 
this section if--
            ``(1) the member is entitled to basic pay; and
            ``(2) at the time the agreement under subsection (a) is 
        executed, the member is serving in--
                    ``(A) pay grade E-6 with not more than 10 years of 
                service computed under section 205 of this title; or
                    ``(B) pay grade E-5 or below, regardless of years 
                of service.
    ``(c) Amount and Payment of Bonus.--(1) A bonus under this section 
may not exceed $4,000.
    ``(2) A bonus payable under this section shall be disbursed in one 
lump sum when the member's conversion to the military occupational 
specialty is approved by the chief personnel officer of the member's 
armed force.
    ``(d) Relationship to Other Pay and Allowances.--A bonus paid to a 
member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(e) Repayment of Bonus.--(1) A member who receives a bonus for 
conversion to a military occupational specialty under this section and 
who, voluntarily or because of misconduct, fails to serve in such 
military occupational specialty for the period specified in the 
agreement shall refund to the United States an amount that bears the 
same ratio to the bonus amount paid to the member as the unserved part 
of such period bears to the total period agreed to be served.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is, for all purposes, a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of the agreement for which a 
bonus was paid under this section shall not discharge the person 
signing such agreement from the debt arising under paragraph (1).
    ``(4) Under regulations prescribed pursuant to subsection (f), the 
Secretary concerned may waive, in whole or in part, a refund required 
under paragraph (1) if the Secretary determines that recovery would be 
against equity and good conscience or would be contrary to the best 
interests of the United States.
    ``(f) Regulations.--The Secretaries concerned shall prescribe 
regulations to carry out this section. Regulations prescribed by the 
Secretary of a military department shall be subject to the approval of 
the Secretary of Defense.
    ``(g) Termination of Authority.--No agreement under this section 
may be entered into after December 31, 2006.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``326. Incentive bonus: conversion to military occupational specialty 
                            to ease personnel shortage.''.

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

SEC. 633. CONTRACTS FOR FULL REPLACEMENT VALUE FOR LOSS OR DAMAGE TO 
              PERSONAL PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE.

    (a) Authority.--Chapter 157 of title 10, United States Code, is 
amended by inserting after section 2636 the following new section:
``Sec. 2636a. Loss or damage to personal property transported at 
              Government expense: full replacement value; deduction 
              from amounts due carriers
    ``(a) Procurement of Coverage.--The Secretary of Defense may 
include in a contract for the transportation of baggage and household 
effects for members of the armed forces at Government expense a clause 
that requires the carrier under the contract to pay the full 
replacement value for loss or damage to the baggage or household 
effects transported under the contract.
    ``(b) Deduction Upon Failure of Carrier To Settle.--In the case of 
a loss or damage of baggage or household effects transported under a 
contract with a carrier that includes a clause described in subsection 
(a), the amount equal to the full replacement value for the baggage or 
household effects may be deducted from the amount owed by the United 
States to the carrier under the contract upon a failure of the carrier 
to settle a claim for such loss or total damage within a reasonable 
time. The amount so deducted shall be remitted to the claimant, 
notwithstanding section 2636 of this title.
    ``(c) Inapplicability of Related Limits.--The limitations on 
amounts of claims that may be settled under section 3721(b) of title 31 
do not apply to a carrier's contractual obligation to pay full 
replacement value under this section.
    ``(d) Regulations.--The Secretary of Defense shall prescribe 
regulations for administering this section. The regulations shall 
include policies and procedures for validating and evaluating claims, 
validating proper claimants, and determining reasonable time for 
settlement.
    ``(e) Transportation Defined.--In this section, the terms 
`transportation' and `transport', with respect to baggage or household 
effects, includes packing, crating, drayage, temporary storage, and 
unpacking of the baggage or household effects.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2636 the following new item:

``2636a. Loss or damage to personal property transported at Government 
                            expense: full replacement value; deduction 
                            from amounts due carriers.''.

SEC  634. TRANSPORTATION OF DEPENDENTS TO PRESENCE OF MEMBERS OF THE 
              ARMED FORCES WHO ARE RETIRED FOR ILLNESS OR INJURY 
              INCURRED IN ACTIVE DUTY.

    Section 411h(a) of title 37, United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``paragraph (3)'';
            (2) by redesignating paragraph (2) as paragraph (3);
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) Under the regulations prescribed under paragraph (1), 
transportation described in subsection (c) may be provided for not more 
than two family members of a member otherwise described in paragraph 
(3) who is retired for an illness or injury described in that paragraph 
if the attending physician or surgeon and the commander or head of the 
military medical facility exercising control over the member determine 
that the presence of the family member would be in the best interests 
of the family member.''; and
            (4) in paragraph (3), as so redesignated, by striking 
        ``paragraph (1)'' and inserting ``paragraph (1) or (2)''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. SPECIAL RULE FOR COMPUTATION OF RETIRED PAY BASE FOR 
              COMMANDERS OF COMBATANT COMMANDS.

    (a) Treatment Equivalent to Chiefs of Service.--Subsection (i) of 
section 1406 of title 10, United States Code, is amended by inserting 
``as a commander of a unified or specified combatant command (as 
defined in section 161(c) of this title),'' after ``Chief of 
Service,''.
    (b) Conforming Amendment.--The heading for such subsection is 
amended by inserting ``Commanders of Combatant Commands,'' after 
``Chiefs of Service,''.
    (c) Effective Date and Applicability.--The amendments made by this 
section shall take effect on the date of the enactment of this Act and 
shall apply with respect to officers who first become entitled to 
retired pay under title 10, United States Code, on or after such date.

SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING SPOUSES OF 
              RESERVES NOT ELIGIBLE FOR RETIREMENT WHO DIE FROM A CAUSE 
              INCURRED OR AGGRAVATED WHILE ON INACTIVE-DUTY TRAINING.

    (a) Surviving Spouse Annuity.--Paragraph (1) of section 1448(f) of 
title 10, United States Code, is amended to read as follows:
            ``(1) Surviving spouse annuity.--The Secretary concerned 
        shall pay an annuity under this subchapter to the surviving 
        spouse of--
                    ``(A) a person who is eligible to provide a 
                reserve-component annuity and who dies--
                            ``(i) before being notified under section 
                        12731(d) of this title that he has completed 
                        the years of service required for eligibility 
                        for reserve-component retired pay; or
                            ``(ii) during the 90-day period beginning 
                        on the date he receives notification under 
                        section 12731(d) of this title that he has 
                        completed the years of service required for 
                        eligibility for reserve-component retired pay 
                        if he had not made an election under subsection 
                        (a)(2)(B) to participate in the Plan; or
                    ``(B) a member of a reserve component not described 
                in subparagraph (A) who dies from an injury or illness 
                incurred or aggravated in the line of duty during 
                inactive-duty training.''.
    (b) Conforming Amendment.--The heading for subsection (f) of 
section 1448 of such title is amended by inserting ``or Before'' after 
``Dying When''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of September 10, 2001, and shall apply with respect to 
performance of inactive-duty training (as defined in section 101(d) of 
title 10, United States Code) on or after that date.

SEC. 643. INCREASE IN DEATH GRATUITY PAYABLE WITH RESPECT TO DECEASED 
              MEMBERS OF THE ARMED FORCES.

    (a) Amount of Death Gratuity.--Section 1478(a) of title 10, United 
States Code, is amended by striking ``$6,000'' and inserting 
``$12,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as of September 11, 2001, and shall apply with respect to 
deaths occurring on or after that date.
    (c) Death Benefits Study.--(1) It is the sense of Congress that--
            (A) the sacrifices made by the members of the United States 
        Armed Forces are significant and are worthy of meaningful 
        expressions of gratitude by the Government of the United 
        States, especially in cases of sacrifice through loss of life;
            (B) the tragic events of September 11, 2001, and subsequent 
        worldwide combat operations in the Global War on Terrorism and 
        in Operation Iraqi Freedom have highlighted the significant 
        disparity between the financial benefits for survivors of 
        deceased members of the Armed Forces and the financial benefits 
        for survivors of civilian victims of terrorism;
            (C) the death benefits system composed of the death 
        gratuity paid by the Department of Defense to survivors of 
        members of the Armed Forces, the subsequently established 
        Servicemembers' Group Life Insurance (SGLI) program, and other 
        benefits for survivors of deceased members has evolved over 
        time, but there are increasing indications that the evolution 
        of such benefits has failed to keep pace with the expansion of 
        indemnity and compensation available to segments of United 
        States society outside the Armed Forces, a failure that is 
        especially apparent in a comparison of the benefits for 
        survivors of deceased members with the compensation provided to 
        families of civilian victims of terrorism; and
            (D) while Servicemembers' Group Life Insurance (SGLI) 
        provides an assured source of life insurance for members of the 
        Armed Forces that benefits the survivors of such members upon 
        death, the SGLI program requires the members to pay for that 
        life insurance coverage and does not provide an assured minimum 
        benefit.
    (2) The Secretary of Defense shall carry out a study of the 
totality of all current and projected death benefits for survivors of 
deceased members of the Armed Forces to determine the adequacy of such 
benefits. In carrying out the study, the Secretary shall--
            (A) compare the Federal Government death benefits for 
        survivors of deceased members of the Armed Forces with 
        commercial and other private sector death benefits plans for 
        segments of United States society outside the Armed Forces, and 
        also with the benefits available under Public Law 107-37 (115 
        Stat. 219) (commonly known as the ``Public Safety Officer 
        Benefits Bill'');
            (B) assess the personnel policy effects that would result 
        from a revision of the death gratuity benefit to provide a 
        stratified schedule of entitlement amounts that places a 
        premium on deaths resulting from participation in combat or 
        from acts of terrorism;
            (C) assess the adequacy of the current system of Survivor 
        Benefit Plan annuities and Dependency and Indemnity 
        Compensation and the anticipated effects of an elimination of 
        the offset of Survivor Benefit Plan annuities by Dependency and 
        Indemnity Compensation;
            (D) examine the commercial insurability of members of the 
        Armed Forces in high risk military occupational specialties; 
        and
            (E) examine the extent to which private trusts and 
        foundations engage in fundraising or otherwise provide 
        financial benefits for survivors of deceased members of the 
        Armed Forces.
    (3) Not later than March 1, 2004, the Secretary shall submit a 
report on the results of the study under paragraph (2) to the 
Committees on Armed Services of the Senate and the House of 
Representatives. The report shall include the following:
            (A) The assessments, analyses, and conclusions resulting 
        from the study.
            (B) Proposed legislation to address the deficiencies in the 
        system of Federal Government death benefits for survivors of 
        deceased members of the Armed Forces that are identified in the 
        course of the study.
            (C) An estimate of the costs of the system of death 
        benefits provided for in the proposed legislation.
    (4) The Comptroller General shall conduct a study to identify the 
death benefits that are payable under Federal, State, and local laws 
for employees of the Federal Government, State governments, and local 
governments. Not later than November 1, 2003, the Comptroller General 
shall submit a report containing the results of the study to the 
Committees on Armed Services of the Senate and the House of 
Representatives.

SEC. 644. FULL PAYMENT OF BOTH RETIRED PAY AND COMPENSATION TO DISABLED 
              MILITARY RETIREES.

    (a) Restoration of Full Retired Pay Benefits.--Section 1414 of 
title 10, United States Code, is amended to read as follows:
``Sec. 1414. Members eligible for retired pay who have service-
              connected disabilities: payment of retired pay and 
              veterans' disability compensation
    ``(a) Payment of Both Retired Pay and Compensation.--Except as 
provided in subsection (b), a member or former member of the uniformed 
services who is entitled to retired pay (other than as specified in 
subsection (c)) and who is also entitled to veterans' disability 
compensation is entitled to be paid both without regard to sections 
5304 and 5305 of title 38.
    ``(b) Special Rule for Chapter 61 Career Retirees.--The retired pay 
of a member retired under chapter 61 of this title with 20 years or 
more of service otherwise creditable under section 1405 of this title 
at the time of the member's retirement is subject to reduction under 
sections 5304 and 5305 of title 38, but only to the extent that the 
amount of the member's retired pay under chapter 61 of this title 
exceeds the amount of retired pay to which the member would have been 
entitled under any other provision of law based upon the member's 
service in the uniformed services if the member had not been retired 
under chapter 61 of this title.
    ``(c) Exception.--Subsection (a) does not apply to a member retired 
under chapter 61 of this title with less than 20 years of service 
otherwise creditable under section 1405 of this title at the time of 
the member's retirement.
    ``(d) Definitions.--In this section:
            ``(1) The term `retired pay' includes retainer pay, 
        emergency officers' retirement pay, and naval pension.
            ``(2) The term `veterans' disability compensation' has the 
        meaning given the term `compensation' in section 101(13) of 
        title 38.''.
    (b) Repeal of Special Compensation Programs.--Sections 1413 and 
1413a of such title are repealed.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking the items relating to sections 
1413, 1413a, and 1414 and inserting the following:

``1414. Members eligible for retired pay who have service-connected 
                            disabilities: payment of retired pay and 
                            veterans' disability compensation.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) the first day of the fiscal year that begins in the 
        calendar year in which this Act is enacted, if later than the 
        date specified in paragraph (1).
    (e) Prohibition on Retroactive Benefits.--No benefits may be paid 
to any person by reason of section 1414 of title 10, United States 
Code, as amended by subsection (a), for any period before the effective 
date applicable under subsection (d).

                       Subtitle E--Other Matters

SEC. 651. RETENTION OF ACCUMULATED LEAVE.

    (a) Higher Maximum Limitation Associated With Certain Service.--
Section 701(f) of title 10, United States Code, is amended to read as 
follows:
    ``(f)(1) The Secretary of Defense may authorize a member eligible 
under paragraph (2) to retain 120 days' leave accumulated by the end of 
the fiscal year described in such paragraph.
    ``(2) Paragraph (1) applies to a member who--
            ``(A) during a fiscal year--
                    ``(i) serves on active duty for a continuous period 
                of at least 120 days in an area in which the member is 
                entitled to special pay under section 310(a) of title 
                37; or
                    ``(ii) is assigned to a deployable ship, to a 
                mobile unit, to duty in support of a contingency 
                operation, or to other duty designated for the purpose 
                of this section; and
            ``(B) except for paragraph (1), would lose any accumulated 
        leave in excess of 60 days at the end of the fiscal year.
    ``(3) Leave in excess of 60 days accumulated under this subsection 
is lost unless it is used by the member before the end of the third 
fiscal year after the fiscal year in which the service described in 
paragraph (2) terminated.''.
    (b) Savings Provisions.--Regulations in effect under subsection (f) 
of section 701 of title 10, United States Code, on the day before the 
date of the enactment of this Act shall remain in effect until revised 
or superseded by regulations prescribed to implement the authority 
under the amendment made by subsection (a).
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2003.

SEC. 652. GAO STUDY.

    Not later than April 1, 2004, the Comptroller General shall submit 
a report regarding the adequacy of special pays and allowances for 
service members who experience frequent deployments away from their 
permanent duty stations for periods less than 30 days. The policies 
regarding eligibility for family separation allowance, including those 
relating to required duration of absences from the permanently assigned 
duty station, should be assessed.

 Subtitle F--Naturalization and Family Protection for Military Members

SEC. 661. SHORT TITLE.

    This subtitle may be cited as the ``Naturalization and Family 
Protection for Military Members Act of 2003''.

SEC. 662. REQUIREMENTS FOR NATURALIZATION THROUGH SERVICE IN THE ARMED 
              FORCES OF THE UNITED STATES.

    (a) Reduction of Period for Required Service.--Section 328(a) of 
the Immigration and Nationality Act (8 U.S.C. 1439(a)) is amended by 
striking ``three years'' and inserting ``2 years''.
    (b) Prohibition on Imposition of Fees Relating to Naturalization.--
Title III of the Immigration and Nationality Act (8 U.S.C. 1401 et 
seq.) is amended--
            (1) in section 328(b)--
                    (A) in paragraph (3)--
                            (i) by striking ``honorable. The'' and 
                        inserting ``honorable (the''; and
                            (ii) by striking ``discharge.'' and 
                        inserting ``discharge); and''; and
                    (B) by adding at the end the following:
            ``(4) notwithstanding any other provision of law, no fee 
        shall be charged or collected from the applicant for filing a 
        petition for naturalization or for the issuance of a 
        certificate of naturalization upon citizenship being granted to 
        the applicant, and no clerk of any State court shall charge or 
        collect any fee for such services unless the laws of the State 
        require such charge to be made, in which case nothing more than 
        the portion of the fee required to be paid to the State shall 
        be charged or collected.''; and
            (2) in section 329(b)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) notwithstanding any other provision of law, no fee 
        shall be charged or collected from the applicant for filing a 
        petition for naturalization or for the issuance of a 
        certificate of naturalization upon citizenship being granted to 
        the applicant, and no clerk of any State court shall charge or 
        collect any fee for such services unless the laws of the State 
        require such charge to be made, in which case nothing more than 
        the portion of the fee required to be paid to the State shall 
        be charged or collected.''.
    (c) Naturalization Proceedings Overseas for Members of the Armed 
Forces.--Notwithstanding any other provision of law, the Secretary of 
Homeland Security, the Secretary of State, and the Secretary of Defense 
shall ensure that any applications, interviews, filings, oaths, 
ceremonies, or other proceedings under title III of the Immigration and 
Nationality Act (8 U.S.C. 1401 et seq.) relating to naturalization of 
members of the Armed Forces are available through United States 
embassies, consulates, and as practicable, United States military 
installations overseas.
    (d) Finalization of Naturalization Proceedings for Members of the 
Armed Forces.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Defense shall prescribe a policy that 
facilitates the opportunity for a member of the Armed Forces to 
finalize naturalization for which the member has applied. The policy 
shall include, for such purpose, the following:
            (1) A high priority for grant of emergency leave.
            (2) A high priority for transportation on aircraft of, or 
        chartered by, the Armed Forces.
    (e) Technical and Conforming Amendment.--Section 328(b)(3) of the 
Immigration and Nationality Act (8 U.S.C. 1439(b)(3)) is amended by 
striking ``Attorney General'' and inserting ``Secretary of Homeland 
Security''.

SEC. 663. NATURALIZATION BENEFITS FOR MEMBERS OF THE SELECTED RESERVE 
              OF THE READY RESERVE.

    Section 329(a) of the Immigration and Nationality Act (8 U.S.C. 
1440(a)) is amended by inserting ``as a member of the Selected Reserve 
of the Ready Reserve or'' after ``has served honorably''.

SEC. 664. EXTENSION OF POSTHUMOUS BENEFITS TO SURVIVING SPOUSES, 
              CHILDREN, AND PARENTS.

    (a) Treatment as Immediate Relatives.--
            (1) Spouses.--Notwithstanding the second sentence of 
        section 201(b)(2)(A)(i) of the Immigration and Nationality Act 
        (8 U.S.C. 1151(b)(2)(A)(i)), in the case of an alien who was 
        the spouse of a citizen of the United States at the time of the 
        citizen's death and was not legally separated from the citizen 
        at the time of the citizen's death, if the citizen served 
        honorably in an active duty status in the military, air, or 
        naval forces of the United States and died as a result of 
        injury or disease incurred in or aggravated by combat, the 
        alien (and each child of the alien) shall be considered, for 
        purposes of section 201(b) of such Act, to remain an immediate 
        relative after the date of the citizen's death, but only if the 
        alien files a petition under section 204(a)(1)(A)(ii) of such 
        Act within 2 years after such date and only until the date the 
        alien remarries. For purposes of such section 204(a)(1)(A)(ii), 
        an alien granted relief under the preceding sentence shall be 
        considered an alien spouse described in the second sentence of 
        section 201(b)(2)(A)(i) of such Act.
            (2) Children.--
                    (A) In general.--In the case of an alien who was 
                the child of a citizen of the United States at the time 
                of the citizen's death, if the citizen served honorably 
                in an active duty status in the military, air, or naval 
                forces of the United States and died as a result of 
                injury or disease incurred in or aggravated by combat, 
                the alien shall be considered, for purposes of section 
                201(b) of the Immigration and Nationality Act (8 U.S.C. 
                1151(b)), to remain an immediate relative after the 
                date of the citizen's death (regardless of changes in 
                age or marital status thereafter), but only if the 
                alien files a petition under subparagraph (B) within 2 
                years after such date.
                    (B) Petitions.--An alien described in subparagraph 
                (A) may file a petition with the Secretary of Homeland 
                Security for classification of the alien under section 
                201(b)(2)(A)(i) of the Immigration and Nationality Act 
                (8 U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act, 
                such a petition shall be considered a petition filed 
                under section 204(a)(1)(A) of such Act (8 U.S.C. 
                1154(a)(1)(A)).
            (3) Parents.--
                    (A) In general.--In the case of an alien who was 
                the parent of a citizen of the United States at the 
                time of the citizen's death, if the citizen served 
                honorably in an active duty status in the military, 
                air, or naval forces of the United States and died as a 
                result of injury or disease incurred in or aggravated 
                by combat, the alien shall be considered, for purposes 
                of section 201(b) of the Immigration and Nationality 
                Act (8 U.S.C. 1151(b)), to remain an immediate relative 
                after the date of the citizen's death (regardless of 
                changes in age or marital status thereafter), but only 
                if the alien files a petition under subparagraph (B) 
                within 2 years after such date.
                    (B) Petitions.--An alien described in subparagraph 
                (A) may file a petition with the Secretary of Homeland 
                Security for classification of the alien under section 
                201(b)(2)(A)(i) of the Immigration and Nationality Act 
                (8 U.S.C. 1151(b)(2)(A)(i)). For purposes of such Act, 
                such a petition shall be considered a petition filed 
                under section 204(a)(1)(A) of such Act (8 U.S.C. 
                1154(a)(1)(A)).
                    (C) Exception.--Notwithstanding section 
                201(b)(2)(A)(i) of the Immigration and Nationality Act 
                (8 U.S.C. 1151(b)(2)(A)(i)), for purposes of this 
                paragraph, a citizen described in subparagraph (A) does 
                not have to be 21 years of age for a parent to benefit 
                under this paragraph.
    (b) Applications for Adjustment of Status by Surviving Spouses, 
Children, and Parents.--
            (1) In general.--Notwithstanding subsections (a) and (c) of 
        section 245 of the Immigration and Nationality Act (8 U.S.C. 
        1255), any alien who was the spouse, child, or parent of an 
        alien described in paragraph (2), and who applied for 
        adjustment of status prior to the death described in paragraph 
        (2)(B), may have such application adjudicated as if such death 
        had not occurred.
            (2) Alien described.--An alien is described in this 
        paragraph if the alien--
                    (A) served honorably in an active duty status in 
                the military, air, or naval forces of the United 
                States;
                    (B) died as a result of injury or disease incurred 
                in or aggravated by combat; and
                    (C) was granted posthumous citizenship under 
                section 329A of the Immigration and Nationality Act (8 
                U.S.C. 1440-1).
    (c) Spouses and Children of Lawful Permanent Resident Aliens.--
            (1) Treatment as immediate relatives.--
                    (A) In general.--A spouse or child of an alien 
                described in paragraph (3) who is included in a 
                petition for classification as a family-sponsored 
                immigrant under section 203(a)(2) of the Immigration 
                and Nationality Act (8 U.S.C. 1153(a)(2)) that was 
                filed by such alien, shall be considered (if the spouse 
                or child has not been admitted or approved for lawful 
                permanent residence by such date) a valid petitioner 
                for immediate relative status under section 
                201(b)(2)(A)(i) of the Immigration and Nationality Act 
                (8 U.S.C. 1151(b)(2)(A)(i)). Such spouse or child shall 
                be eligible for deferred action, advance parole, and 
                work authorization.
                    (B) Petitions.--An alien spouse or child described 
                in subparagraph (A) may file a petition with the 
                Secretary of Homeland Security for classification of 
                the alien under section 201(b)(2)(A)(i) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1151(b)(2)(A)(i)). For purposes of such Act, such a 
                petition shall be considered a petition filed under 
                section 204(a)(1)(A) of such Act (8 U.S.C. 
                1154(a)(1)(A)).
            (2) Self-petitions.--Any spouse or child of an alien 
        described in paragraph (3) who is not a beneficiary of a 
        petition for classification as a family-sponsored immigrant may 
        file a petition for such classification under section 
        201(b)(2)(A)(i) of the Immigration and Nationality Act (8 
        U.S.C. 1151(b)(2)(A)(i)) with the Secretary of Homeland 
        Security, but only if the spouse or child files a petition 
        within 2 years after such date. Such spouse or child shall be 
        eligible for deferred action, advance parole, and work 
        authorization.
            (3) Alien described.--An alien is described in this 
        paragraph if the alien--
                    (A) served honorably in an active duty status in 
                the military, air, or naval forces of the United 
                States;
                    (B) died as a result of injury or disease incurred 
                in or aggravated by combat; and
                    (C) was granted posthumous citizenship under 
                section 329A of the Immigration and Nationality Act (8 
                U.S.C. 1440-1).
    (d) Parents of Lawful Permanent Resident Aliens.--
            (1) Self-petitions.--Any parent of an alien described in 
        paragraph (2) may file a petition for classification under 
        section 201(b)(2)(A)(i) of the Immigration and Nationality Act 
        (8 U.S.C. 1151(b)(2)(A)(i)), but only if the parent files a 
        petition within 2 years after such date. For purposes of such 
        Act, such petition shall be considered a petition filed under 
        section 204(a)(1)(A) of such Act (8 U.S.C. 1154(a)(1)(A)). Such 
        parent shall be eligible for deferred action, advance parole, 
        and work authorization.
            (2) Alien described.--An alien is described in this 
        paragraph if the alien--
                    (A) served honorably in an active duty status in 
                the military, air, or naval forces of the United 
                States;
                    (B) died as a result of injury or disease incurred 
                in or aggravated by combat; and
                    (C) was granted posthumous citizenship under 
                section 329A of the Immigration and Nationality Act (8 
                U.S.C. 1440-1).
    (e) Adjustment of Status.--Notwithstanding subsections (a) and (c) 
of section 245 of the Immigration and Nationality Act (8 U.S.C. 1255), 
an alien physically present in the United States who is the beneficiary 
of a petition under paragraph (1), (2)(B), or (3)(B) of subsection (a), 
paragraph (1)(B) or (2) of subsection (c), or subsection (d)(1) of this 
section, may apply to the Secretary of Homeland Security for adjustment 
of status to that of an alien lawfully admitted for permanent 
residence.
    (f) Waiver of Certain Grounds of Inadmissibility.--In determining 
the admissibility of any alien accorded an immigration benefit under 
this section, the ground for inadmissibility specified in section 
212(a)(4) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) 
shall not apply, and notwithstanding any other provision of law, the 
Secretary of Homeland Security may waive paragraph (6)(A), (7), and 
(9)(B) of section 212(a) of the Immigration and Nationality Act (8 
U.S.C. 1182(a)) with respect to such an alien if the alien establishes 
exceptional and extremely unusual hardship to the alien or the alien's 
spouse, parent, or child, who is a citizen of the United States or an 
alien lawfully admitted for permanent residence. Any such waiver by the 
Secretary of Homeland Security shall be in writing and shall be granted 
only on an individual basis following an investigation.
    (g) Benefits to Survivors; Technical Amendment.--Section 329A of 
the Immigration and Nationality Act (8 U.S.C. 1440-1) is amended--
            (1) by striking subsection (e); and
            (2) by striking ``Attorney General'' each place that term 
        appears and inserting ``Secretary of Homeland Security''.
    (h) Technical and Conforming Amendments.--Section 319(d) of the 
Immigration and Nationality Act (8 U.S.C. 1430(d)) is amended--
            (1) by inserting ``, child, or parent'' after ``surviving 
        spouse'';
            (2) by inserting ``, parent, or child'' after ``whose 
        citizen spouse''; and
            (3) by striking ``who was living'' and inserting ``who, in 
        the case of a surviving spouse, was living''.

SEC. 665. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect as if enacted on September 11, 2001.

                         TITLE VII--HEALTH CARE

SEC. 701. MEDICAL AND DENTAL SCREENING FOR MEMBERS OF SELECTED RESERVE 
              UNITS ALERTED FOR MOBILIZATION.

    Section 1074a of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) At any time after the Secretary concerned notifies members 
of the Ready Reserve that the members are to be called or ordered to 
active duty, the administering Secretaries may provide to each such 
member any medical and dental screening and care that is necessary to 
ensure that the member meets the applicable medical and dental 
standards for deployment.
    ``(2) The screening and care authorized under paragraph (1) shall 
include screening and care under TRICARE, pursuant to eligibility under 
paragraph (3), and continuation of care benefits under paragraph (4).
    ``(3)(A) Members of the Selected Reserve of the Ready Reserve and 
members of the Individual Ready Reserve described in section 10144(b) 
of this title are eligible, subject to subparagraph (I), to enroll in 
TRICARE.
    ``(B) A member eligible under subparagraph (A) may enroll for 
either of the following types of coverage:
            ``(i) Self alone coverage.
            ``(ii) Self and family coverage.
    ``(C) An enrollment by a member for self and family covers the 
member and the dependents of the member who are described in 
subparagraph (A), (D), or (I) of section 1072(2) of this title.
    ``(D) The Secretary of Defense shall provide for at least one open 
enrollment period each year. During an open enrollment period, a member 
eligible under subparagraph (A) may enroll in the TRICARE program or 
change or terminate an enrollment in the TRICARE program.
    ``(E) A member and the dependents of a member enrolled in the 
TRICARE program under this paragraph shall be entitled to the same 
benefits under this chapter as a member of the uniformed services on 
active duty or a dependent of such a member, respectively. Section 
1074(c) of this title shall apply with respect to a member enrolled in 
the TRICARE program under this section.
    ``(F)(i) An enlisted member of the armed forces enrolled in the 
TRICARE program under this section shall pay an annual premium of $330 
for self-only coverage and $560 for self and family coverage for which 
enrolled under this section.
    ``(ii) An officer of the armed forces enrolled in the TRICARE 
program under this section shall pay an annual premium of $380 for 
self-only coverage and $610 for self and family coverage for which 
enrolled under this section.
    ``(iii) The premiums payable by a member under this subparagraph 
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.
    ``(iv) Amounts collected as premiums under this subparagraph 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.
    ``(G) A person who receives health care pursuant to an enrollment 
in a TRICARE program option under this paragraph, including a member 
who receives such health care, shall be subject to the same 
deductibles, copayments, and other nonpremium charges for health care 
as apply under this chapter for health care provided under the same 
TRICARE program option to dependents described in subparagraph (A), 
(D), or (I) of section 1072(2) of this title.
    ``(H) A member enrolled in the TRICARE program under this paragraph 
may terminate the enrollment only during an open enrollment period 
provided under subparagraph (D), except as provided in subparagraph 
(I). An enrollment of a member for self alone or for self and family 
under this paragraph shall terminate on the first day of the first 
month beginning after the date on which the member ceases to be 
eligible under subparagraph (A). The enrollment of a member under this 
paragraph may be terminated on the basis of failure to pay the premium 
charged the member under this paragraph.
    ``(I) A member may not enroll in the TRICARE program under this 
paragraph while entitled to transitional health care under subsection 
(a) of section 1145 of this title or while authorized to receive health 
care under subsection (c) of such section. A member who enrolls in the 
TRICARE program under this paragraph within 90 days after the date of 
the termination of the member's entitlement or eligibility to receive 
health care under subsection (a) or (c) of section 1145 of this title 
may terminate the enrollment at any time within one year after the date 
of the enrollment.
    ``(J) The Secretary of Defense, in consultation with the other 
administering Secretaries, shall prescribe regulations for the 
administration of this paragraph.
    ``(4)(A) The Secretary concerned shall pay the applicable premium 
to continue in force any qualified health benefits plan coverage for an 
eligible reserve component member for the benefits coverage 
continuation period if timely elected by the member in accordance with 
regulations prescribed under subparagraph (J).
    ``(B) A member of a reserve component is eligible for payment of 
the applicable premium for continuation of qualified health benefits 
plan coverage under subparagraph (A) while serving on active duty 
pursuant to a call or order issued under a provision of law referred to 
in section 101(a)(13)(B) of this title during a war or national 
emergency declared by the President or Congress.
    ``(C) For the purposes of this paragraph, health benefits plan 
coverage for a member called or ordered to active duty is qualified 
health benefits plan coverage if--
            ``(i) the coverage was in force on the date on which the 
        Secretary notified the member that issuance of the call or 
        order was pending or, if no such notification was provided, the 
        date of the call or order;
            ``(ii) on such date, the coverage applied to the member and 
        dependents of the member described in subparagraph (A), (D), or 
        (I) of section 1072(2) of this title; and
            ``(iii) the coverage has not lapsed.
    ``(D) The applicable premium payable under this paragraph for 
continuation of health benefits plan coverage in the case of a member 
is the amount of the premium payable by the member for the coverage of 
the member and dependents.
    ``(E) The total amount that the Department of Defense may pay for 
the applicable premium of a health benefits plan for a member under 
this paragraph in a fiscal year may not exceed the amount determined by 
multiplying--
            ``(i) the sum of one plus the number of the member's 
        dependents covered by the health benefits plan, by
            ``(ii) the per capita cost of providing TRICARE coverage 
        and benefits for dependents under this chapter for such fiscal 
        year, as determined by the Secretary of Defense.
    ``(F) The benefits coverage continuation period under this 
paragraph for qualified health benefits plan coverage in the case of a 
member called or ordered to active duty is the period that--
            ``(i) begins on the date of the call or order; and
            ``(ii) ends on the earlier of the date on which the 
        member's eligibility for transitional health care under section 
        1145(a) of this title terminates under paragraph (3) of such 
        section, or the date on which the member elects to terminate 
        the continued qualified health benefits plan coverage of the 
        dependents of the member.
    ``(G) Notwithstanding any other provision of law--
            ``(i) any period of coverage under a COBRA continuation 
        provision (as defined in section 9832(d)(1) of the Internal 
        Revenue Code of 1986) for a member under this paragraph shall 
        be deemed to be equal to the benefits coverage continuation 
        period for such member under this paragraph; and
            ``(ii) with respect to the election of any period of 
        coverage under a COBRA continuation provision (as so defined), 
        rules similar to the rules under section 4980B(f)(5)(C) of such 
        Code shall apply.
    ``(H) A dependent of a member who is eligible for benefits under 
qualified health benefits plan coverage paid on behalf of a member by 
the Secretary concerned under this paragraph is not eligible for 
benefits under the TRICARE program during a period of the coverage for 
which so paid.
    ``(I) A member who makes an election under subparagraph (A) may 
revoke the election. Upon such a revocation, the member's dependents 
shall become eligible for benefits under the TRICARE program as 
provided for under this chapter.
    ``(J) The Secretary of Defense shall prescribe regulations for 
carrying out this paragraph. The regulations shall include such 
requirements for making an election of payment of applicable premiums 
as the Secretary considers appropriate.
    ``(5) For the purposes of this section, all members of the Ready 
Reserve who are to be called or ordered to active duty include all 
members of the Ready Reserve.
    ``(6) The Secretary concerned shall promptly notify all members of 
the Ready Reserve that they are eligible for screening and care under 
this section.
    ``(7) A member provided medical or dental screening or care under 
paragraph (1) may not be charged for the screening or care.''.

SEC. 702. TRICARE BENEFICIARY COUNSELING AND ASSISTANCE COORDINATORS 
              FOR RESERVE COMPONENT BENEFICIARIES.

    Section 1095e(a)(1) of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph (B):
                    ``(B) designate for each of the TRICARE program 
                regions at least one person (other than a person 
                designated under subparagraph (A)) to serve full-time 
                as a beneficiary counseling and assistance coordinator 
                solely for members of the reserve components and their 
                dependents who are beneficiaries under the TRICARE 
                program; and''.

SEC. 703. EXTENSION OF AUTHORITY TO ENTER INTO PERSONAL SERVICES 
              CONTRACTS FOR HEALTH CARE SERVICES TO BE PERFORMED AT 
              LOCATIONS OUTSIDE MEDICAL TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``December 31, 2003'' and inserting ``December 31, 2008''.

SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
              FUND VALUATIONS AND CONTRIBUTIONS.

    (a) Separate Periodic Actuarial Valuation for Single Uniformed 
Service.--Section 1115(c) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(6) The Secretary of Defense may determine a single level dollar 
amount under subparagraph (A) or (B) of paragraph (1) for each or any 
of the participating uniformed services separately from the other 
participating uniformed services if the Secretary determines that a 
more accurate and appropriate actuarial valuation under such 
subparagraph would be achieved by doing so.''.
    (b) Associated Calculations of Payments Into the Fund.--Section 
1116 of such title is amended--
            (1) in subsection (a), by striking ``the amount that'' in 
        the matter preceding paragraph (1) and inserting ``the amount 
        that, subject to subsection (b),'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) If an actuarial valuation referred to in paragraph (1) or (2) 
of subsection (a) has been calculated in a single level dollar amount 
for a participating uniformed service separately from the other 
participating uniformed services under section 1115(c)(6) of this 
title, the administering Secretary for the department in which such 
uniformed service is operating shall calculate the amount under such 
paragraph separately for such uniformed service. If the administering 
Secretary is not the Secretary of Defense, the administering Secretary 
shall notify the Secretary of Defense of the amount so calculated. To 
determine a single amount for the purpose of paragraph (1) or (2) of 
subsection (a), as the case may be, the Secretary of Defense shall 
aggregate the amount calculated under this subsection for a uniformed 
service for the purpose of such paragraph with the amount or amounts 
calculated (whether separately or otherwise) for the other uniformed 
services for the purpose of such paragraph.''.
    (c) Technical Correction.--Section 1115(c)(1)(B) of such title is 
amended by striking ``and other than members'' and inserting ``(other 
than members''
    (d) Conforming Amendment.--Subsections (a) and (c)(5) of section 
1115 of such title are amended by striking ``section 1116(b) of this 
title'' and inserting section ``1116(c) of this title''.

SEC. 705. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD.

    (a) Requirement for Surveys.--(1) The Secretary of Defense shall 
conduct surveys in the TRICARE Standard market areas in the continental 
United States to determine how many health care providers are accepting 
new patients under TRICARE Standard in each such market area.
    (2) The Secretary shall carry out the surveys in at least 20 
TRICARE market areas in the continental United States each fiscal year 
after fiscal year 2003 until all such market areas in the continental 
United States have been surveyed. The Secretary shall complete six of 
the fiscal year 2004 surveys not later than March 31, 2004.
    (3) In prioritizing the market areas for the sequence in which 
market areas are to be surveyed under this subsection, the Secretary 
shall consult with representatives of TRICARE beneficiaries and health 
care providers to identify locations where TRICARE Standard 
beneficiaries are experiencing significant levels of access-to-care 
problems under TRICARE Standard and shall give a high priority to 
surveying health care providers in such areas.
    (b) Supervision.--(1) The Secretary shall designate a senior 
official of the Department of Defense to take the actions necessary for 
achieving and maintaining participation of health care providers in 
TRICARE Standard in each TRICARE market area in a number that is 
adequate to ensure the viability of TRICARE Standard for TRICARE 
beneficiaries in that market area.
    (2) The official designated under paragraph (1) shall have the 
following duties:
            (A) To educate health care providers about TRICARE 
        Standard.
            (B) To encourage health care providers to accept patients 
        under TRICARE Standard.
            (C) To ensure that TRICARE beneficiaries have the 
        information necessary to locate TRICARE Standard providers 
        readily.
            (D) To recommend adjustments in TRICARE Standard provider 
        payment rates that the official considers necessary to ensure 
        adequate availability of TRICARE Standard providers for TRICARE 
        Standard beneficiaries.
    (c) GAO Review.--(1) The Comptroller General shall, on an ongoing 
basis, review--
            (A) the processes, procedures, and analysis used by the 
        Department of Defense to determine the adequacy of the number 
        of health care providers accepting TRICARE Standard 
        beneficiaries as patients under TRICARE Standard in each 
        TRICARE market area; and
            (B) the actions taken by the Department of Defense to 
        ensure ready access of TRICARE Standard beneficiaries to health 
        care under TRICARE Standard in each TRICARE market area.
    (2)(A) The Comptroller General shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a 
semiannual report on the results of the review under paragraph (1). The 
first semiannual report shall be submitted not later than June 30, 
2004.
    (B) The semiannual report under subparagraph (A) shall include the 
following:
            (i) An analysis of the adequacy of the surveys under 
        subsection (a).
            (ii) The adequacy of existing statutory authority to 
        address inadequate levels of participation by health care 
        providers in TRICARE Standard.
            (iii) Identification of policy-based obstacles to achieving 
        adequacy of availability of TRICARE Standard health care in the 
        TRICARE Standard market areas.
            (iv) An assessment of the adequacy of Department of Defense 
        education programs to inform health care providers about 
        TRICARE Standard.
            (v) An assessment of the adequacy of Department of Defense 
        initiatives to encourage health care providers to accept 
        patients under TRICARE Standard.
            (vi) An assessment of the adequacy of information to 
        TRICARE Standard beneficiaries to facilitate access by such 
        beneficiaries to health care under TRICARE Standard.
            (vii) Any need for adjustment of health care provider 
        payment rates to attract participation in TRICARE Standard by 
        appropriate numbers of health care providers.
    (d) 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 title 10, United States Code.

SEC. 706. ELIMINATION OF LIMITATION ON COVERED BENEFICIARIES' 
              ELIGIBILITY TO RECEIVE HEALTH CARE SERVICES FROM FORMER 
              PUBLIC HEALTH SERVICE TREATMENT FACILITIES.

    Section 724(d) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 10 U.S.C. 1073 note) is amended by 
striking ``who--'' and all that follows through ``(2) are enrolled'' 
and inserting ``who are enrolled''.

SEC. 707. MODIFICATION OF STRUCTURE AND DUTIES OF DEPARTMENT OF 
              VETERANS AFFAIRS-DEPARTMENT OF DEFENSE HEALTH EXECUTIVE 
              COMMITTEE.

    (a) In General.--Subsection (c) of section 8111 of title 38, United 
States Code, is amended to read as follows:
    ``(c) DOD-VA Joint Executive Committee.--(1) There is established 
an interagency committee to be known as the Department of Veterans 
Affairs-Department of Defense Joint Executive Committee (hereinafter in 
this section referred to as the `Committee').
    ``(2) The Committee shall be composed of--
            ``(A) the Deputy Secretary of Veterans Affairs and such 
        other officers and employees of the Department as the Secretary 
        may designate; and
            ``(B) the Under Secretary of Defense for Personnel and 
        Readiness and such other officers and employees of the 
        Department of Defense as the Secretary of Defense may 
        designate.
    ``(3)(A) The Deputy Secretary and the Under Secretary shall 
determine the size and structure of the Committee, except that the 
Committee shall have subordinate committees as follows:
            ``(i) A Health Executive Committee.
            ``(ii) A Benefits Executive Committee.
            ``(iii) Such other subordinate committees as the Deputy 
        Secretary and the Under Secretary consider appropriate.
    ``(B) The Deputy Secretary and the Under Secretary shall establish 
the administrative and procedural guidelines for the operation of the 
Committee.
    ``(C) The two Departments shall supply staff and resources to the 
Committee in order to provide such administrative support and services 
for the Committee as are necessary for the efficient operation of the 
Committee.
    ``(4) The Committee shall recommend to the Secretaries strategic 
direction for the joint coordination and sharing of efforts between and 
within the two Departments under this section, and shall oversee 
implementation of such coordination and efforts.
    ``(5) In order to enable the Committee to make recommendations 
under paragraph (4) in its annual report under paragraph (6), the 
Committee shall--
            ``(A) review existing policies, procedures, and practices 
        relating to the coordination and sharing of health care 
        resources and other resources between the two Departments;
            ``(B) identify changes in policies, procedures, and 
        practices that, in the judgment of the Committee, would promote 
        mutually beneficial coordination, use, or exchange of use of 
        services and health care resources and other resources of the 
        two Departments in order to achieve the goal of improving the 
        quality, efficiency, and effectiveness of the delivery of 
        benefits and services to veterans, members of the Armed Forces, 
        military retirees, and their families through an enhanced 
        partnership between the two Departments;
            ``(C) identify and assess further opportunities for 
        coordination and collaboration between the two Departments 
        that, in the judgment of the Committee, would not adversely 
        affect the range of services, the quality of care, or the 
        established priorities for benefits provided by either 
        Department;
            ``(D) review the plans of both agencies for the acquisition 
        of additional health care resources and other resources, 
        especially new facilities and major equipment and technology, 
        in order to assess the potential effect of such plans on 
        further opportunities for the coordination and sharing of such 
        resources; and
            ``(E) review the implementation of activities designed to 
        promote the coordination and sharing of health care resources 
        and other resources between the two Departments.
    ``(6) The Committee shall submit to the Secretaries, and to 
Congress, each year a report containing such recommendations as the 
Committee considers appropriate, including recommendations in light of 
activities under paragraph (5).''.
    (b) Conforming Amendment.--Subsection (e)(1) of such section is 
amended by striking ``subsection (c)(2)'' and inserting ``subsection 
(c)(4)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2003, as if included in the amendments to section 
8111 of title 38, United States Code, made by section 721 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314; 116 Stat. 2589), to which the amendments made by this 
section relate.
    (d) Integrated Healing Care Practices.--(1) The Secretary of 
Defense and the Secretary of Veterans Affairs may, acting through the 
Department of Veterans Affairs-Department of Defense Joint Executive 
Committee, conduct a program to develop and evaluate integrated healing 
care practices for members of the Armed Forces and veterans.
    (2) Amounts authorized to be appropriated by section 301(21) for 
the Defense Health Program may be available for the program under 
paragraph (1).

SEC. 708. ELIGIBILITY OF RESERVE OFFICERS FOR HEALTH CARE PENDING 
              ORDERS TO ACTIVE DUTY FOLLOWING COMMISSIONING.

    Section 1074(a) of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``who is on active duty'' and inserting 
        ``described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Members of the uniformed services referred to in paragraph 
(1) are as follows:
            ``(A) A member of a uniformed service on active duty.
            ``(B) A member of a reserve component of a uniformed 
        service who has been commissioned as an officer if--
                    ``(i) the member has requested orders to active 
                duty for the member's initial period of active duty 
                following the commissioning of the member as an 
                officer;
                    ``(ii) the request for orders has been approved;
                    ``(iii) the orders are to be issued but have not 
                been issued; and
                    ``(iv) the member does not have health care 
                insurance and is not covered by any other health 
                benefits plan.''.

SEC. 709. REIMBURSEMENT OF COVERED BENEFICIARIES FOR CERTAIN TRAVEL 
              EXPENSES RELATING TO SPECIALIZED DENTAL CARE.

    Section 1074i of title 10, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``In any 
        case''; and
            (2) by adding at the end the following new subsection:
    ``(b) Specialty Care Providers.--For purposes of subsection (a), 
the term `specialty care provider' includes a dental specialist 
(including an oral surgeon, orthodontist, prosthodontist, periodontist, 
endodontist, or pediatric dentist).''.

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

             Subtitle A--Acquisition Policy and Management

SEC. 801. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO FACILITATE 
              DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, 
              BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.

    (a) Extension of Authority.--Section 836(a) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
1192; 10 U.S.C. 2302 note) is amended by striking ``fiscal year 2002 
and 2003'' and inserting ``fiscal years 2002, 2003, 2004, and 2005''.
    (b) Expanded Scope.--Such section 836(a) is further amended--
            (1) in paragraph (1), by striking ``the defense against 
        terrorism or biological or chemical attack'' and inserting 
        ``defense against or recovery from terrorism or nuclear, 
        biological, chemical, or radiological attack''; and
            (2) in paragraph (2), by striking ``the defense against 
        terrorism or biological attack'' and inserting ``defense 
        against or recovery from terrorism or nuclear, biological, 
        chemical, or radiological attack''.
    (c) Conforming Amendment.--The heading for such section is amended 
to read as follows:

``SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AUTHORITY TO FACILITATE 
              DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR NUCLEAR, 
              BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL ATTACK.''

SEC. 802. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

    (a) Authority.--The Secretary of Defense may settle any financial 
account for a contract entered into by the Secretary or the Secretary 
of a military department before October 1, 1996, that is 
administratively complete if the financial account has an unreconciled 
balance, either positive or negative, that is less than $100,000.
    (b) Finality of Decision.--A settlement under this section shall be 
final and conclusive upon the accounting officers of the United States.
    (c) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of the authority under this section.
    (d) Termination of Authority.--A financial account may not be 
settled under this section after September 30, 2006.

SEC. 803. DEFENSE ACQUISITION PROGRAM MANAGEMENT FOR USE OF RADIO 
              FREQUENCY SPECTRUM.

    (a) Revision of Department of Defense Directive.--Not later than 
one year after the date of the enactment of this Act, the Secretary of 
Defense shall revise and reissue Department of Defense Directive 
4650.1, relating to management and use of the radio frequency spectrum, 
last issued on June 24, 1987, to update the procedures applicable to 
Department of Defense management and use of the radio frequency 
spectrum.
    (b) Acquisition Program Requirements.--The Secretary of Defense 
shall--
            (1) require that each military department or Defense Agency 
        carrying out a program for the acquisition of a system that is 
        to use the radio frequency spectrum consult with the official 
        or board designated under subsection (c) on the usage of the 
        spectrum by the system as early as practicable during the 
        concept exploration and technology development phases of the 
        acquisition program;
            (2) prohibit the program from proceeding into system 
        development and demonstration, or otherwise obtaining 
        production or procuring any unit of the system, until--
                    (A) an evaluation of the proposed radio frequency 
                spectrum usage by the system is completed in accordance 
                with requirements prescribed by the Secretary; and
                    (B) the designated official or board reviews and 
                approves the proposed usage of the spectrum by the 
                system; and
            (3) prescribe a procedure for waiving the prohibition 
        imposed under paragraph (2) in any case in which it is 
        determined necessary to do so in the national security 
        interests of the United States.
    (c) Designation of Official or Board.--The Secretary of Defense 
shall designate an appropriate official or board of the Department of 
Defense to perform the functions described for the official or board in 
subsection (b).

SEC. 804. NATIONAL SECURITY AGENCY MODERNIZATION PROGRAM.

    (a) Responsibilities of Under Secretary of Defense for Acquisition, 
Technology, and Logistics.--The Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall--
            (1) direct and manage the acquisitions under the National 
        Security Agency Modernization Program; and
            (2) designate the projects under such program as major 
        defense acquisition programs.
    (b) Projects Comprising Program.--The National Security Agency 
Modernization Program includes the following projects of the National 
Security Agency:
            (1) The Trailblazer project.
            (2) The Groundbreaker project.
            (3) Each cryptological mission management project.
            (4) Each other project that--
                    (A) meets either of the dollar threshold 
                requirements set forth in subsection (a)(2) of section 
                2430 of title 10, United States Code (as adjusted under 
                subsection (b) of such section); and
                    (B) is determined by the Under Secretary of Defense 
                for Acquisition, Technology, and Logistics as being a 
                modernization project of the National Security Agency.
    (c) Milestone Decision Authority.--(1) In the administration of 
subsection (a), the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall exercise the milestone decision 
authority for--
            (A) each major defense acquisition program under the 
        National Security Agency Modernization Program, as designated 
        under subsection (a)(2); and
            (B) the acquisition of each major system under the National 
        Security Agency Modernization Program, as described in 
        subsection (d).
    (2) The Under Secretary may not delegate the milestone decision 
authority to any other official before October 1, 2006.
    (3) The Under Secretary may delegate the milestone decision 
authority to the Director of the National Security Agency at any time 
after the later of September 30, 2006, or the date on which the 
following conditions are satisfied:
            (A) The Under Secretary has determined that the Director 
        has implemented acquisition management policies, procedures, 
        and practices that are sufficiently mature to ensure that 
        National Security Agency acquisitions are conducted in a manner 
        consistent with a sound, efficient acquisition enterprise.
            (B) The Under Secretary has consulted with the Under 
        Secretary of Defense for Intelligence and the Deputy Director 
        of Central Intelligence for Community Management on the 
        delegation.
            (C) The Secretary of Defense has approved the delegation.
            (D) The Under Secretary has transmitted to the Committees 
        on Armed Services of the Senate and the House of 
        Representatives, the Select Committee on Intelligence of the 
        Senate, and the Permanent Select Committee on Intelligence of 
        the House of Representatives a notification of the intention to 
        delegate the authority, together with a detailed discussion of 
        the justification for the delegation of authority.
    (d) Major System Defined.--In this section, the term ``major 
system'' means a system that meets either of the dollar threshold 
requirements set forth in paragraph (1) or (2) of subsection (a) of 
section 2302d of title 10, United States Code (as adjusted under 
subsection (c) of such section).

SEC. 805. QUALITY CONTROL IN PROCUREMENT OF AVIATION CRITICAL SAFETY 
              ITEMS AND RELATED SERVICES.

    (a) Quality Control Policy.--The Secretary of Defense shall 
prescribe a quality control policy for the procurement of aviation 
critical safety items and the procurement of modifications, repair, and 
overhaul of such items.
    (b) Content of Policy.--The policy shall include the following 
requirements:
            (1) That the head of the design control activity for 
        aviation critical safety items establish processes to identify 
        and manage aviation critical safety items and modifications, 
        repair, and overhaul of such items.
            (2) That the head of the contracting activity for an 
        aviation critical safety item enter into a contract for such 
        item only with a source approved by the design control activity 
        in accordance with section 2319 of title 10, United States 
        Code.
            (3) That the aviation critical safety items delivered, and 
        the services performed with respect to aviation critical safety 
        items, meet all technical and quality requirements specified by 
        the design control activity, except for any requirement 
        determined unnecessary by the Secretary of Defense in writing.
    (c) Definitions.--In this section, the terms ``aviation critical 
safety item'' and ``design control activity'' have the meanings given 
such terms in section 2319(g) of title 10, United States Code, as 
amended by subsection (d).
    (d) Conforming Amendment to Title 10.--Section 2319 of title 10, 
United States Code, is amended--
            (1) in subsection (c)(3), by inserting after ``the 
        contracting officer'' the following: ``(or, in the case of a 
        contract for the procurement of an aviation critical item, the 
        head of the design control activity for such item)''; and
            (2) by adding at the end the following new subsection:
    ``(g) Definitions.--In this section:
            ``(1) The term `aviation critical safety item' means a 
        part, an assembly, installation equipment, launch equipment, 
        recovery equipment, or support equipment for an aircraft or 
        aviation weapon system if the part, assembly, or equipment 
        contains a characteristic any failure, malfunction, or absence 
        of which could cause a catastrophic or critical failure 
        resulting in the loss of or serious damage to the aircraft or 
        weapon system, an unacceptable risk of personal injury or loss 
        of life, an uncommanded engine shutdown that jeopardizes 
        safety, or the failure of a military mission.
            ``(2) The term `design control activity', with respect to 
        an aviation critical safety item, means the systems command of 
        a military department that is specifically responsible for 
        ensuring the airworthiness of an aviation system or equipment 
        in which the item is to be used.''.

                  Subtitle B--Procurement of Services

SEC. 811. EXPANSION AND EXTENSION OF INCENTIVE FOR USE OF PERFORMANCE-
              BASED CONTRACTS IN PROCUREMENTS OF SERVICES.

    (a) Increased Maximum Amount of Procurement Eligible for Commercial 
Items Treatment.--Paragraph (1)(A) of section 821(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-218; 10 U.S.C. 
2302 note) is amended by striking ``$5,000,000'' and inserting 
`$10,000,000''.
    (b) Extension of Authority.--Paragraph (4) of such section 821(b) 
is amended by striking ``more than 3 years after the date of the 
enactment of this Act'' and inserting ``after October 30, 2006''.

SEC. 812. PUBLIC-PRIVATE COMPETITIONS FOR THE PERFORMANCE OF DEPARTMENT 
              OF DEFENSE FUNCTIONS.

    (a) Pilot Program for Best Value Source Selection for the 
Performance of Information Technology Services.--
            (1) Authority.--The Secretary of Defense may carry out a 
        pilot program for use of a best value criterion in the 
        selection of sources for performance of information technology 
        services for the Department of Defense.
            (2) Conversion to private sector performance.--(A) Under 
        the pilot program, an analysis of the performance of an 
        information technology services function for the Department of 
        Defense under section 2461(b)(3) of title 10, United States 
        Code, shall include an examination of the performance of the 
        function by Department of Defense civilian employees and by one 
        or more private contractors to demonstrate whether change to 
        performance by the private sector will result in the best value 
        to the Government over the life of the contract, including in 
        the examination the following:
                    (i) The cost to the Government, estimated by the 
                Secretary of Defense (based on offers received), for 
                performance of the function by the private sector.
                    (ii) The estimated cost to the Government of 
                Department of Defense civilian employees performing the 
                function.
                    (iii) Benefits in addition to price that warrant 
                performance of the function by a particular source at a 
                cost higher than that of performance by Department of 
                Defense civilian employees.
                    (iv) In addition to the cost referred to in clause 
                (i), an estimate of all other costs and expenditures 
                that the Government would incur because of the award of 
                such a contract.
            (B) Under the pilot program, subparagraph (A) of such 
        section 2461(b)(3) shall not apply to an analysis of the 
        performance of an information technology services function for 
        the Department of Defense.
            (3) Contracting for information technology services.--(A) 
        Under the pilot program, except as otherwise provided by law, 
        the Secretary shall procure information technology services 
        necessary for or beneficial to the accomplishment of the 
        authorized functions of the Department of Defense (other than 
        functions which the Secretary of Defense determines must be 
        performed by military or Government personnel) from a source in 
        the private sector if performance by that source represents the 
        best value to the United States, determined in accordance with 
        the competition requirements of Office of Management and Budget 
        Circular A-76.
            (B) Under the pilot program, section 2462(a) of title 10, 
        United States Code, shall not apply to a procurement described 
        in paragraph (1).
            (4) Duration of pilot program.--(A) The period for which 
        the pilot program may be carried out under this subsection 
        shall be fiscal years 2004 through 2008.
            (B) An analysis commenced under the pilot program in 
        accordance with paragraph (2), and a procurement for which a 
        solicitation has been issued in accordance with paragraph (3), 
        before the end of the pilot program period may be continued in 
        accordance with paragraph (2) or (3), respectively, after the 
        end of such period.
            (5) GAO review.--(A) The Comptroller General shall review 
        the administration of any pilot program carried out under this 
        subsection to assess the extent to which the program is 
        effective and is equitable for the potential public sources and 
        the potential private sources of information technology 
        services for the Department of Defense.
            (B) Not later than February 1, 2008, the Comptroller 
        General shall submit to the congressional defense committees a 
        report on the review of the program under subparagraph (A). The 
        report shall include the Comptroller General's assessment of 
        the matters required under that subparagraph and any other 
        conclusions resulting from the review.
            (6) Information technology services defined.--In this 
        subsection, the term ``information technology service'' means 
        any service performed in the operation or maintenance of 
        information technology (as defined in section 11101 of title 
        40, United States Code).
    (b) Resources-Based Schedules for Completion of Public-Private 
Competitions.--
            (1) Application of timeframes.--Any interim or final 
        deadline or other schedule-related milestone for the completion 
        of a Department of Defense public-private competition shall be 
        established solely on the basis of considered research and 
        sound analysis regarding the availability of sufficient 
        personnel, training, and technical resources to the Department 
        of Defense to carry out such competition in a timely manner.
            (2) Extension of timeframes.--Any interim or final deadline 
        or other schedule-related milestone established (consistent 
        with paragraph (1)) for the completion of a Department of 
        Defense public-private competition shall be extended if the 
        Department of Defense official responsible for managing the 
        competition determines under procedures prescribed by the 
        Secretary of Defense that the personnel, training, or technical 
        resources available to the Department of Defense to carry out 
        such competition timely are insufficient.

SEC. 813. AUTHORITY TO ENTER INTO PERSONAL SERVICES CONTRACTS.

    (a) Authority.--Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2396 the following new section:
``Sec. 2397. Personal services: procurement by certain elements of the 
              Department of Defense
    ``(a) Authority.--The head of an element of the Department of 
Defense referred to in subsection (b) may enter into a contract for the 
procurement of services described in section 3109 of title 5 that are 
necessary to carry out a mission of that element without regard to the 
limitations in such section if the head of that element determines in 
writing that the services to be procured are unique and that it would 
not be practicable to obtain such services by other means.
    ``(b) Applicability.--Subsection (a) applies to--
            ``(1) any element of the Department of Defense within the 
        intelligence community, as defined in section 3(4) of the 
        National Security Act of 1947 (50 U.S.C. 401a(4)); and
            ``(2) the United States Special Operations Command, with 
        respect to special operations activities described in 
        paragraphs (1), (2), (3), and (4) of section 167(j) of this 
        title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2396 the following new item:

``2397. Personal services: procurement by certain elements of the 
                            Department of Defense.''.

             Subtitle C--Major Defense Acquisition Programs

SEC. 821. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.

    (a) Extension of Authority.--Subsection (g) of section 845 of the 
National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 
note) is amended by striking ``September 30, 2004'' and inserting 
``September 30, 2007''.
    (b) Increased Scope of Authority.--Subsection (a) of such section 
is amended by inserting before the period at the end the following: ``, 
or to improvement of weapons or weapon systems in use by the Armed 
Forces''.
    (c) Pilot Program for Transition to Follow-on Contracts.--Such 
section, as amended by subsection (a), is further amended--
            (1) by redesignating subsections (e), (f), and (g) as 
        subsections (f), (g), and (h), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Pilot Program for Transition to Follow-on Contracts.--(1) The 
Secretary of Defense is authorized to carry out a pilot program for 
follow-on contracting for the production of items or processes that are 
developed by nontraditional defense contractors under prototype 
projects carried out under this section.
    ``(2) Under the pilot program--
            ``(A) a qualifying contract for the procurement of such an 
        item or process, or a qualifying subcontract under a contract 
        for the procurement of such an item or process, may be treated 
        as a contract or subcontract, respectively, for the procurement 
        of commercial items, as defined in section 4(12) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 403(12)); and
            ``(B) the item or process may be treated as an item or 
        process, respectively, that is developed in part with Federal 
        funds and in part at private expense for the purposes of 
        section 2320 of title 10, United States Code.
    ``(3) For the purposes of the pilot program, a qualifying contract 
or subcontract is a contract or subcontract, respectively, with a 
nontraditional defense contractor that--
            ``(A) does not exceed $50,000,000; and
            ``(B) is either--
                    ``(i) a firm, fixed-price contract or subcontract; 
                or
                    ``(ii) a fixed-price contract or subcontract with 
                economic price adjustment.
    ``(4) The authority to conduct a pilot program under this 
subsection shall terminate on September 30, 2007. The termination of 
the authority shall not affect the validity of contracts or 
subcontracts that are awarded or modified during the period of the 
pilot program, without regard to whether the contracts or subcontracts 
are performed during the period.''.

SEC. 822. APPLICABILITY OF CLINGER-COHEN ACT POLICIES AND REQUIREMENTS 
              TO EQUIPMENT INTEGRAL TO A WEAPON OR WEAPON SYSTEM.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by inserting after section 2223 the following:
``Sec. 2223a. Acquisition of equipment integral to a weapon or a weapon 
              system: applicability of certain acquisition reform 
              authorities and information technology-related 
              requirements
    ``(a) Board of Senior Acquisition Officials.--(1) The Secretary of 
Defense shall establish a board of senior acquisition officials to 
administer the implementation of the policies and requirements of 
chapter 113 of title 40 in procurements of information technology 
equipment determined by the Secretary as being an integral part of a 
weapon or a weapon system.
    ``(2) The Board shall be composed of the following officials:
            ``(A) Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, who shall be the Chairman.
            ``(B) The acquisition executive of each of the military 
        departments.
            ``(C) The Chief Information Officer of the Department of 
        Defense.
    ``(c) Responsibilities of Board.--The Board shall be responsible 
for ensuring that--
            ``(1) the acquisition of information technology equipment 
        determined by the Secretary of Defense as being an integral 
        part of a weapon or a weapon system is conducted in a manner 
        that is consistent with the capital planning, investment 
        control, and performance and results-based management processes 
        and requirements provided under sections 11302, 11303, 11312, 
        and 11313 of title 40, to the extent that such processes 
        requirements are applicable to the acquisition of such 
        equipment;
            ``(2) issues of spectrum availability, interoperability, 
        and information security are appropriately addressed in the 
        development of weapons and weapon systems; and
            ``(3) in the case of information technology equipment that 
        is to be incorporated into a weapon or a weapon system under a 
        major defense acquisition program, the information technology 
        equipment is incorporated in a manner that is consistent with--
                    ``(A) the planned approach to applying certain 
                provisions of law to major defense acquisition programs 
                following the evolutionary acquisition process that the 
                Secretary of Defense reported to Congress under section 
                802 of the Bob Stump National Defense Authorization Act 
                for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 
                2602);
                    ``(B) the acquisition policies that apply to spiral 
                development programs under section 803 of such Act (116 
                Stat. 2603; 10 U.S.C. 2430 note); and
                    ``(C) the software acquisition processes of the 
                military department or Defense Agency concerned under 
                section 804 of such Act (116 Stat. 2604; 10 U.S.C. 2430 
                note).
    ``(d) Inapplicability of Other Laws.--The following provisions of 
law do not apply to information technology equipment that is determined 
by the Secretary of Defense as being an integral part of a weapon or a 
weapon system:
            ``(1) Section 11315 of title 40.
            ``(2) The policies and procedures established under section 
        11316 of title 40.
            ``(3) Subsections (d) and (e) of section 811 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-211), and the requirements and prohibitions that are 
        imposed by Department of Defense Directive 5000.1 pursuant to 
        subsections (b) and (c) of such section.
            ``(4) Section 351 of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 
        Stat. 2516; 10 U.S.C. 221 note).
    ``(e) Definitions.--In this section:
            ``(1) The term `acquisition executive', with respect to a 
        military department, means the official who is designated as 
        the senior procurement executive of the military department 
        under section 16(3) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 414(3)).
            ``(2) The term `information technology' has the meaning 
        given such term in section 11101 of title 40.
            ``(3) The term `major defense acquisition program' has the 
        meaning given such term in section 2430 of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2223 the 
following new item:

``2223a. Acquisition of equipment integral to a weapon or a weapon 
                            system: applicability of certain 
                            acquisition reform authorities and 
                            information technology-related 
                            requirements.''.
    (b) Conforming Amendment.--Section 2223 of such title is amended by 
adding at the end the following new subsection:
    ``(c) Equipment Integral to a Weapon or Weapon System.--(1) In the 
case of information technology equipment determined by the Secretary of 
Defense as being an integral part of a weapon or a weapon system, the 
responsibilities under this section shall be performed by the board of 
senior acquisition officials established pursuant to section 2223a of 
this title.
    ``(2) In this subsection, the term `information technology' has the 
meaning given such term in section 11101 of title 40.''.

SEC. 823. APPLICABILITY OF REQUIREMENT FOR REPORTS ON MATURITY OF 
              TECHNOLOGY AT INITIATION OF MAJOR DEFENSE ACQUISITION 
              PROGRAMS.

    Section 804(a) of the National Defense Authorization Act for Fiscal 
Year 2003 (Public Law 107-107; 115 Stat. 1180) is amended by striking 
``, as in effect on the date of enactment of this Act,'' and inserting 
``(as in effect on the date of the enactment of this Act), and the 
corresponding provision of any successor to such Instruction,''.

                Subtitle D--Domestic Source Requirements

SEC. 831. EXCEPTIONS TO BERRY AMENDMENT FOR CONTINGENCY OPERATIONS AND 
              OTHER URGENT SITUATIONS.

    Section 2533a(d) of title 10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``or contingency 
        operations'' after ``in support of combat operations''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Procurements for which the use of procedures other 
        than competitive procedures has been approved on the basis of 
        section 2304(c)(2) of this title, relating to unusual and 
        compelling urgency of need.''.

SEC. 832. INAPPLICABILITY OF BERRY AMENDMENT TO PROCUREMENTS OF WASTE 
              AND BYPRODUCTS OF COTTON AND WOOL FIBER FOR USE IN THE 
              PRODUCTION OF PROPELLANTS AND EXPLOSIVES.

    Section 2533a(f) of title 10, United States Code, is amended--
            (1) by striking ``(f) Exception'' and all that follows 
        through ``the procurement of'' and inserting the following:
    ``(f) Exceptions for Certain Other Commodities and Items.--
Subsection (a) does not preclude the procurement of the following:
            ``(1)'';
            (2) by capitalizing the initial letter of the word 
        following ``(1)'', as added by paragraph (1); and
            (3) by adding at the end the following new paragraph:
            ``(2) Waste and byproducts of cotton and wool fiber for use 
        in the production of propellants and explosives.''.

SEC. 833. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR CONTENT REQUIREMENTS.

    (a) Authority.--Subchapter V of chapter 148 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2539c. Waiver of domestic source or content requirements
    ``(a) Authority.--Except as provided in subsection (f), the 
Secretary of Defense may waive the application of any domestic source 
requirement or domestic content requirement referred to in subsection 
(b) and thereby authorize the procurement of items that are grown, 
reprocessed, reused, produced, or manufactured--
            ``(1) in a foreign country that has a Declaration of 
        Principles with the United States;
            ``(2) in a foreign country that has a Declaration of 
        Principles with the United States substantially from components 
        and materials grown, reprocessed, reused, produced, or 
        manufactured in the United States or any foreign country that 
        has a Declaration of Principles with the United States; or
            ``(3) in the United States substantially from components 
        and materials grown, reprocessed, reused, produced, or 
        manufactured in the United States or any foreign country that 
        has a Declaration of Principles with the United States.
    ``(b) Covered Requirements.--For purposes of this section:
            ``(1) A domestic source requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring an item that is grown, 
        reprocessed, reused, produced, or manufactured in the United 
        States or by a manufacturer that is a part of the national 
        technology and industrial base (as defined in section 2500(1) 
        of this title).
            ``(2) A domestic content requirement is any requirement 
        under law that the Department of Defense satisfy its 
        requirements for an item by procuring an item produced or 
        manufactured partly or wholly from components and materials 
        grown, reprocessed, reused, produced, or manufactured in the 
        United States.
    ``(c) Applicability.--The authority of the Secretary to waive the 
application of a domestic source or content requirements under 
subsection (a) applies to the procurement of items for which the 
Secretary of Defense determines that--
            ``(1) application of the requirement would impede the 
        reciprocal procurement of defense items under a Declaration of 
        Principles with the United States; and
            ``(2) such country does not discriminate against defense 
        items produced in the United States to a greater degree than 
        the United States discriminates against defense items produced 
        in that country.
    ``(d) Limitation on Delegation.--The authority of the Secretary to 
waive the application of domestic source or content requirements under 
subsection (a) may not be delegated to any officer or employee other 
than the Under Secretary of Defense for Acquisition, Technology and 
Logistics.
    ``(e) Consultations.--The Secretary may grant a waiver of the 
application of a domestic source or content requirement under 
subsection (a) only after consultation with the United States Trade 
Representative, the Secretary of Commerce, and the Secretary of State.
    ``(f) Laws Not Waivable.--The Secretary of Defense may not exercise 
the authority under subsection (a) to waive any domestic source or 
content requirement contained in any of the following laws:
            ``(1) The Small Business Act (15 U.S.C. 631 et seq.).
            ``(2) The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.).
            ``(3) Sections 7309 and 7310 of this title.
            ``(4) Section 2533a of this title.
    ``(g) Relationship to Other Waiver Authority.--The authority under 
subsection (a) to waive a domestic source requirement or domestic 
content requirement is in addition to any other authority to waive such 
requirement.
    ``(h) Construction With Respect to Later Enacted Laws.--This 
section may not be construed as being inapplicable to a domestic source 
requirement or domestic content requirement that is set forth in a law 
enacted after the enactment of this section solely on the basis of the 
later enactment.
    ``(i) Declaration of Principles.--(1) In this section, the term 
`Declaration of Principles' means a written understanding between the 
Department of Defense and its counterpart in a foreign country 
signifying a cooperative relationship between the Department and its 
counterpart to standardize or make interoperable defense equipment used 
by the armed forces and the armed forces of the foreign country across 
a broad spectrum of defense activities, including--
            ``(A) harmonization of military requirements and 
        acquisition processes;
            ``(B) security of supply;
            ``(C) export procedures;
            ``(D) security of information;
            ``(E) ownership and corporate governance;
            ``(F) research and development;
            ``(G) flow of technical information; and
            ``(H) defense trade.
    ``(2) A Declaration of Principles is underpinned by a memorandum of 
understanding or other agreement providing for the reciprocal 
procurement of defense items between the United States and the foreign 
country concerned without unfair discrimination in accordance with 
section 2531 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by inserting after the item relating to 
section 2539b the following new item:

``2539c. Waiver of domestic source or content requirements.''.

SEC. 834. BUY AMERICAN EXCEPTION FOR BALL BEARINGS AND ROLLER BEARINGS 
              USED IN FOREIGN PRODUCTS.

    Section 2534(a)(5) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``, except ball 
bearings and roller bearings being procured for use in an end product 
manufactured by a manufacturer that does not satisfy the requirements 
of subsection (b) or in a component part manufactured by such a 
manufacturer''.

         Subtitle E--Defense Acquisition and Support Workforce

SEC. 841. FLEXIBILITY FOR MANAGEMENT OF THE DEFENSE ACQUISITION AND 
              SUPPORT WORKFORCE.

    (a) Management Structure.--(1) Sections 1703, 1705, 1706, and 1707 
of title 10, United States Code, are repealed.
    (2) Section 1724(d) of such title is amended--
            (A) in the first sentence, by striking ``The acquisition 
        career program board concerned'' and all that follows through 
        ``if the board certifies'' and inserting ``The Secretary of 
        Defense may waive any or all of the requirements of subsections 
        (a) and (b) with respect to an employee of the Department of 
        Defense or member of the armed forces if the Secretary 
        determines'';
            (B) in the second sentence, by striking ``the board'' and 
        inserting ``the Secretary''; and
            (C) by striking the third sentence.
    (3) Section 1732(b) of such title is amended--
            (A) in paragraph (1)(C), by striking ``, as validated by 
        the appropriate career program management board''; and
            (B) in paragraph (2)(A)(ii), by striking ``has been 
        certified by the acquisition career program board of the 
        employing military department as possessing'' and inserting 
        ``possess''.
    (4) Section 1732(d) of such title is amended--
            (A) in paragraph (1)--
                    (i) in the first sentence, by striking ``the 
                acquisition career program board of a military 
                department'' and all that follows through ``if the 
                board certifies'' and inserting ``The Secretary of 
                Defense may waive any or all of the requirements of 
                subsection (b) with respect to an employee if the 
                Secretary determines'';
                    (ii) in the second sentence, by striking ``the 
                board'' and inserting ``the Secretary''; and
                    (iii) by striking the third sentence; and
            (B) in paragraph (2), by striking ``The acquisition career 
        program board of a military department'' and inserting ``The 
        Secretary''.
    (5) Section 1734(d) of such title is amended--
            (A) in subsection (d)--
                    (i) by striking paragraph (2); and
                    (ii) in paragraph (3), by striking the second 
                sentence; and
            (B) in subsection (e)(2), by striking ``, by the 
        acquisition career program board of the department 
        concerned,''.
    (6) Section 1737(c) of such title is amended--
            (A) by striking paragraph (2); and
            (B) by striking ``(1) The Secretary'' and inserting ``The 
        Secretary''.
    (b) Elimination of Role of Office of Personnel Management.--(1) 
Section 1725 of such title is repealed.
    (2) Section 1731 of such title is amended by striking subsection 
(c).
    (3) Section 1732(c)(2) of such title is amended by striking the 
second and third sentences.
    (4) Section 1734(g) of such title is amended--
            (A) by striking paragraph (2); and
            (B) in paragraph (1) by striking ``(1) The Secretary'' and 
        inserting ``The Secretary''.
    (5) Section 1737 of such title is amended by striking subsection 
(d).
    (6) Section 1744(c)(3)(A)(i) of such title is amended by striking 
``and such other requirements as the Office of Personnel Management may 
prescribe''.
    (c) Single Acquisition Corps.--(1) Section 1731 of such title is 
amended--
            (A) in subsection (a)--
                    (i) by striking ``each of the military departments 
                and one or more Corps, as he considers appropriate, for 
                the other components of'' in the first sentence; and
                    (ii) by striking the second sentence; and
            (B) in subsection (b), by striking ``an Acquisition Corps'' 
        and inserting ``the Acquisition Corps''.
    (2) Sections 1732(a), 1732(e)(1), 1732(e)(2), 1733(a), 1734(e)(1), 
and 1737(a)(1) of such title are amended by striking ``an Acquisition 
Corps'' and inserting ``the Acquisition Corps''.
    (3) Section 1734 of such title is amended--
            (A) in subsection (g), by striking ``each Acquisition 
        Corps, a test program in which members of a Corps'' and 
        inserting ``the Acquisition Corps, a test program in which 
        members of the Corps''; and
            (B) in subsection (h), by striking ``making assignments of 
        civilian and military members of the Acquisition Corps of that 
        military department'' and inserting ``making assignments of 
        civilian and military personnel of that military department who 
        are members of the Acquisition Corps''.
    (d) Consolidation of Certain Education and Training Program 
Requirements.--(1) Section 1742 of such title is amended to read as 
follows:
``Sec. 1742. Internship, cooperative education, and scholarship 
              programs
    ``The Secretary of Defense shall conduct the following education 
and training programs:
            ``(1) An intern program for purposes of providing highly 
        qualified and talented individuals an opportunity for 
        accelerated promotions, career broadening assignments, and 
        specified training to prepare them for entry into the 
        Acquisition Corps.
            ``(2) A cooperative education credit program under which 
        the Secretary arranges, through cooperative arrangements 
        entered into with one or more accredited institutions of higher 
        education, for such institutions to grant undergraduate credit 
        for work performed by students who are employed by the 
        Department of Defense in acquisition positions.
            ``(3) A scholarship program for the purpose of qualifying 
        personnel for acquisition positions in the Department of 
        Defense.''.
    (2) Sections 1743 and 1744 of such title are repealed.
    (e) General Management Provisions.--Subchapter V of chapter 87 of 
such title is amended--
            (1) by striking section 1763; and
            (2) by adding at the end the following new section 1764:
``Sec. 1764. Authority to establish different minimum requirements
    ``(a) Authority.--(1) The Secretary of Defense may prescribe a 
different minimum number of years of experience, different minimum 
education qualifications, and different tenure of service 
qualifications to be required for eligibility for appointment or 
advancement to an acquisition position referred to in subsection (b) 
than is required for such position under or pursuant to any provision 
of this chapter.
    ``(2) Any requirement prescribed under paragraph (1) for a position 
referred to in any paragraph of subsection (b) shall be applied 
uniformly to all positions referred to in such paragraph.
    ``(b) Applicability.--This section applies to the following 
acquisition positions in the Department of Defense:
            ``(1) Contracting officer, except a position referred to in 
        paragraph (5).
            ``(2) Program executive officer.
            ``(3) Senior contracting official.
            ``(4) Program manager.
            ``(5) A position in the contract contingency force of an 
        armed force that is filled by a member of that armed force.
    ``(c) Definition.--In this section, the term `contract contingency 
force', with respect to an armed force, has the meaning given such term 
in regulations prescribed by the Secretary concerned.''.
    (f) Clerical Amendments.--(1) The table of sections at the 
beginning of subchapter I of chapter 87 of title 10, United States 
Code, is amended by striking the items relating to sections 1703, 1705, 
1706, and 1707.
    (2) The table of sections at the beginning of subchapter II of such 
chapter is amended by striking the item relating to section 1725.
    (3) The table of sections at the beginning of subchapter IV of such 
chapter is amended by striking the items relating to sections 1742, 
1743, and 1744 and inserting the following:

``1742. Internship, cooperative education, and scholarship programs.''.
    (4) The table of sections at the beginning of subchapter V of such 
chapter is amended by striking the item relating to section 1763 and 
inserting the following:

``1764. Authority to establish different minimum requirements.''.

SEC. 842. LIMITATION AND REINVESTMENT AUTHORITY RELATING TO REDUCTION 
              OF THE DEFENSE ACQUISITION AND SUPPORT WORKFORCE.

    (a) Limitation.--Notwithstanding any other provision of law, the 
defense acquisition and support workforce may not be reduced, during 
fiscal years 2004, 2005, and 2006, below the level of that workforce as 
of September 30, 2002, determined on the basis of full-time equivalent 
positions, except as may be necessary to strengthen the defense 
acquisition and support workforce in higher priority positions in 
accordance with this section.
    (b) Workforce Flexibility.--During fiscal years 2004, 2005, and 
2006, the Secretary of Defense may realign any part of the defense 
acquisition and support workforce to support reinvestment in other, 
higher priority positions in such workforce.
    (c) Higher Priority Positions.--For the purposes of this section, 
higher priority positions in the defense acquisition and support 
workforce include the following positions:
            (1) Positions the responsibilities of which include 
        drafting performance-based work statements for services 
        contracts and overseeing the performance of contracts awarded 
        pursuant to such work statements.
            (2) Positions the responsibilities of which include 
        conducting spending analyses, negotiating company-wide pricing 
        agreements, and taking other measures to reduce contract costs.
            (3) Positions the responsibilities of which include 
        reviewing contractor quality control systems, assessing and 
        analyzing quality deficiency reports, and taking other measures 
        to improve product quality.
            (4) Positions the responsibilities of which include 
        effectively conducting public-private competitions in 
        accordance with Office of Management and Budget Circular A-76.
            (5) Any other positions in the defense acquisition and 
        support workforce that the Secretary identifies as being higher 
        priority positions that are staffed at levels not likely to 
        ensure efficient and effective performance of all of the 
        responsibilities of those positions.
    (d) Defense Acquisition and Support Workforce Defined.--In this 
section, the term ``defense acquisition and support workforce'' means 
members of the Armed Forces and civilian personnel who are assigned to, 
or are employed in, an organization of the Department of Defense that 
has acquisition as its predominant mission, as determined by the 
Secretary of Defense.

SEC. 843. CLARIFICATION AND REVISION OF AUTHORITY FOR DEMONSTRATION 
              PROJECT RELATING TO CERTAIN ACQUISITION PERSONNEL 
              MANAGEMENT POLICIES AND PROCEDURES.

    Section 4308 of the National Defense Authorization Act for Fiscal 
Year 1996 (10 U.S.C. 1701 note) is amended--
            (1) in subsection (b), by striking paragraph (3) and 
        inserting the following:
            ``(3) Conditions.--Paragraph (2) shall not apply with 
        respect to a demonstration project unless--
                    ``(A) for each organization or team participating 
                in the demonstration project--
                            ``(i) at least one-third of the workforce 
                        participating in the demonstration project 
                        consists of members of the acquisition 
                        workforce; and
                            ``(ii) at least two-thirds of the workforce 
                        participating in the demonstration project 
                        consists of members of the acquisition 
                        workforce and supporting personnel assigned to 
                        work directly with the acquisition workforce; 
                        and
                    ``(B) the demonstration project commences before 
                October 1, 2007.'';
            (2) in subsection (d), by striking ``95,000'' in subsection 
        (d) and inserting ``120,000'';
            (3) by redesignating subsection (e) as subsection (f); and
            (4) by inserting after subsection (d) the following:
    ``(e) Effect of Reorganizations.--The applicability of paragraph 
(2) of subsection (b) to an organization or team shall not terminate by 
reason that the organization or team, after having satisfied the 
conditions in paragraph (3) of such subsection when it began to 
participate in a demonstration project under this section, ceases to 
meet one or both of the conditions set forth in subparagraph (A) of 
such paragraph (3) as a result of a reorganization, restructuring, 
realignment, consolidation, or other organizational change.''.

     Subtitle F--Federal Support for Procurement of Anti-Terrorism 
        Technologies and Services by State and Local Governments

SEC. 851. APPLICATION OF INDEMNIFICATION AUTHORITY TO STATE AND LOCAL 
              GOVERNMENT CONTRACTORS.

    (a) Authority.--Subject to the limitations of subsection (b), the 
President may exercise the discretionary authority under Public Law 85-
804 (50 U.S.C. 1431 et seq.) so as to provide under such law for 
indemnification of contractors and subcontractors in procurements by 
States or units of local government of an anti-terrorism technology or 
an anti-terrorism service for the purpose of preventing, detecting, 
identifying, otherwise deterring, or recovering from acts of terrorism.
    (b) Limitations.--Any authority that is delegated by the President 
under subsection (a) to the head of a Federal agency to provide for the 
indemnification of contractors and subcontractors under Public Law 85-
804 (50 U.S.C. 1431 et seq.) for procurements by States or units of 
local government may be exercised only--
            (1) in the case of a procurement by a State or unit of 
        local government that--
                    (A) is made under a contract awarded pursuant to 
                section 852; and
                    (B) is approved, in writing, for the provision of 
                indemnification by the President or the official 
                designated by the President under section 852(a); and
            (2) with respect to--
                    (A) amounts of losses or damages not fully covered 
                by private liability insurance and State or local 
                government-provided indemnification; and
                    (B) liabilities of a contractor or subcontractor 
                not arising out of willful misconduct or lack of good 
                faith on the part of the contractor or subcontractor, 
                respectively.

SEC. 852. FEDERAL SUPPORT FOR ENHANCEMENT OF STATE AND LOCAL ANTI-
              TERRORISM RESPONSE CAPABILITIES.

    (a) Procurements of Anti-Terrorism Technologies and Services by 
State and Local Governments Through Federal Contracts.--
            (1) Establishment of program.--The President shall 
        designate an officer or employee of the United States--
                    (A) to establish, and the designated official shall 
                establish, a program under which States and units of 
                local government may procure through contracts entered 
                into by the designated official anti-terrorism 
                technologies or anti-terrorism services for the purpose 
                of preventing, detecting, identifying, otherwise 
                deterring, or recovering from acts of terrorism; and
                    (B) to carry out the SAFER grant program provided 
                for under subsection (f).
            (2) Designated federal procurement official for program.--
        In this section, the officer or employee designated by the 
        President under paragraph (1) shall be referred to as the 
        ``designated Federal procurement official''.
            (3) Authorities.--Under the program, the designated Federal 
        procurement official--
                    (A) may, but shall not be required to, award 
                contracts using the same authorities as are provided to 
                the Administrator of General Services under section 
                309(b)(3) of the Federal Property and Administrative 
                Services Act (41 U.S.C. 259(b)(3)); and
                    (B) may make SAFER grants in accordance with 
                subsection (f).
            (4) Offers not required to state and local governments.--A 
        contractor that sells anti-terrorism technology or anti-
        terrorism services to the Federal Government may not be 
        required to offer such technology or services to a State or 
        unit of local government under the program.
    (b) Responsibilities of the Contracting Official.--In carrying out 
the program established under this section, the designated Federal 
procurement official shall--
            (1) produce and maintain a catalog of anti-terrorism 
        technologies and anti-terrorism services suitable for 
        procurement by States and units of local government under this 
        program; and
            (2) establish procedures in accordance with subsection (c) 
        to address the procurement of anti-terrorism technologies and 
        anti-terrorism services by States and units of local government 
        under contracts awarded by the designated official.
    (c) Required Procedures.--The procedures required by subsection 
(b)(2) shall implement the following requirements and authorities:
            (1) Submissions by states.--
                    (A) Requests and payments.--Except as provided in 
                subparagraph (B), each State desiring to participate in 
                a procurement of anti-terrorism technologies or anti-
                terrorism services through a contract entered into by 
                the designated Federal procurement official under this 
                section shall submit to that official in such form and 
                manner and at such times as such official prescribes, 
                the following:
                            (i) Request.--A request consisting of an 
                        enumeration of the technologies or services, 
                        respectively, that are desired by the State and 
                        units of local government within the State.
                            (ii) Payment.--Advance payment for each 
                        requested technology or service in an amount 
                        determined by the designated official based on 
                        estimated or actual costs of the technology or 
                        service and administrative costs incurred by 
                        such official.
                    (B) Other contracts.--The designated Federal 
                procurement official may award and designate contracts 
                under which States and units of local government may 
                procure anti-terrorism technologies and anti-terrorism 
                services directly from the contractors. No 
                indemnification may be provided under Public Law 85-804 
                pursuant to an exercise of authority under section 851 
                for procurements that are made directly between 
                contractors and States or units of local government.
            (2) Permitted catalog technologies and services.--A State 
        may include in a request submitted under paragraph (1) only a 
        technology or service listed in the catalog produced under 
        subsection (b)(1).
            (3) Coordination of local requests within state.--The 
        Governor of a State may establish such procedures as the 
        Governor considers appropriate for administering and 
        coordinating requests for anti-terrorism technologies or anti-
        terrorism services from units of local government within the 
        State.
            (4) Shipment and transportation costs.--A State requesting 
        anti-terrorism technologies or anti-terrorism services shall be 
        responsible for arranging and paying for any shipment or 
        transportation of the technologies or services, respectively, 
        to the State and localities within the State.
    (d) Reimbursement of Actual Costs.--In the case of a procurement 
made by or for a State or unit of local government under the procedures 
established under this section, the designated Federal procurement 
official shall require the State or unit of local government to 
reimburse the Department for the actual costs it has incurred for such 
procurement.
    (e) Time for Implementation.--The catalog and procedures required 
by subsection (b) of this section shall be completed as soon as 
practicable and no later than 210 days after the enactment of this Act.
    (f) SAFER Grant Program.--
            (1) Authority.--The designated Federal procurement 
        official, in cooperation with the Secretary of the Department 
        of Homeland Security or his designee, is authorized to make 
        grants to eligible entities for the purpose of supporting 
        increases in the number of permanent positions for firefighters 
        in fire services to ensure staffing at levels and with skill 
        mixes that are adequate emergency response to incidents or 
        threats of terrorism.
            (2) Use of funds.--The proceeds of a SAFER grant to an 
        eligible entity may be used only for the purpose specified in 
        paragraph (1).
            (3) Duration.--A SAFER grant to an eligible entity shall 
        provide funding for a period of 4 years. The proceeds of the 
        grant shall be disbursed to the eligible entity in 4 equal 
        annual installments.
            (4) Non-federal share.--
                    (A) Requirement.--An eligible entity may receive a 
                SAFER grant only if the entity enters into an agreement 
                with the designated Federal procurement official to 
                contribute non-Federal funds to achieve the purpose of 
                the grant in the following amounts:
                            (i) During the second year in which funds 
                        of a SAFER grant are received, an amount equal 
                        to 25 percent of the amount of the SAFER grant 
                        funds received that year.
                            (ii) During the third year in which funds 
                        of a SAFER grant are received, an amount equal 
                        to 50 percent of the amount of the SAFER grant 
                        funds received that year.
                            (iii) During the fourth year in which funds 
                        of a SAFER grant are received, an amount equal 
                        to 75 percent of the amount of the SAFER grant 
                        funds received that year.
                    (B) Waiver.--The designated Federal procurement 
                official may waive the requirement for a non-Federal 
                contribution described in subparagraph (A) in the case 
                of any eligible entity.
                    (C) Asset forfeiture funds.--An eligible entity may 
                use funds received from the disposal of property 
                transferred to the eligible entity pursuant to section 
                9703(h) of title 31, United States Code, section 981(e) 
                of title 18, United States Code, or section 616 of the 
                Tariff Act of 1930 (19 U.S.C. 1616a) to provide the 
                non-Federal share required under paragraph (1).
                    (D) BIA funds.--Funds appropriated for the 
                activities of any agency of a tribal organization or 
                for the Bureau of Indian Affairs to perform 
                firefighting functions on any Indian lands may be used 
                to provide the share required under subparagraph (A), 
                and such funds shall be deemed to be non-Federal funds 
                for such purpose.
            (5) Applications.--
                    (A) Requirement.--To receive a SAFER grant, an 
                eligible entity shall submit an application for the 
                grant to the designated Federal procurement official.
                    (B) Content.--Each application for a SAFER grant 
                shall contain, for each fire service covered by the 
                application, the following information:
                            (i) A long-term strategy for increasing the 
                        force of firefighters in the fire service to 
                        ensure readiness for appropriate and effective 
                        emergency response to incidents or threats of 
                        terrorism.
                            (ii) A detailed plan for implementing the 
                        strategy that reflects consultation with 
                        community groups, consultation with appropriate 
                        private and public entities, and consideration 
                        of any master plan that applies to the eligible 
                        entity.
                            (iii) An assessment of the ability of the 
                        eligible entity to increase the force of 
                        firefighters in the fire service without 
                        Federal assistance.
                            (iv) An assessment of the levels of 
                        community support for increasing that force, 
                        including financial and in-kind contributions 
                        and any other available community resources.
                            (v) Specific plans for obtaining necessary 
                        support and continued funding for the 
                        firefighter positions proposed to be added to 
                        the fire service with SAFER grant funds.
                            (vi) An assurance that the eligible entity 
                        will, to the extent practicable, seek to 
                        recruit and employ (or accept the voluntary 
                        services of) firefighters who are members of 
                        racial and ethnic minority groups or women.
                            (vii) Any additional information that the 
                        designated Federal procurement official 
                        considers appropriate.
                    (C) Special rule for small communities.--The 
                designated Federal procurement official may authorize 
                an eligible entity responsible for a population of less 
                than 50,000 to submit an application without 
                information required under subparagraph (B), and may 
                otherwise make special provisions to facilitate the 
                expedited submission, processing, and approval of an 
                application by such an entity.
                    (D) Preferential consideration.--The designated 
                Federal procurement official may give preferential 
                consideration, to the extent feasible, to an 
                application submitted by an eligible entity that agrees 
                to contribute a non-Federal share higher than the share 
                required under paragraph (4)(A).
                    (E) Assistance with applications.--The designated 
                Federal procurement official is authorized to provide 
                technical assistance to an eligible entity for the 
                purpose of assisting with the preparation of an 
                application for a SAFER grant.
            (6) Special rules on use of funds.--
                    (A) Supplement not supplant.--The proceeds of a 
                SAFER grant made to an eligible entity shall be used to 
                supplement and not supplant other Federal funds, State 
                funds, or funds from a subdivision of a State, or, in 
                the case of a tribal organization, funds supplied by 
                the Bureau of Indian Affairs, that are available for 
                salaries or benefits for firefighters.
                    (B) Limitation relating to compensation of 
                firefighters.--
                            (i) In general.--The proceeds of a SAFER 
                        grant may not be used to fund the pay and 
                        benefits of a full-time firefighter if the 
                        total annual amount of the pay and benefits for 
                        that firefighter exceeds $100,000. The 
                        designated Federal procurement official may 
                        waive the prohibition in the proceeding 
                        sentence in any particular case.
                            (ii) Adjustment for inflation.--Effective 
                        on October 1 of each year, the total annual 
                        amount applicable under subparagraph (A) shall 
                        be increased by the percentage (rounded to the 
                        nearest one-tenth of one percent) by which the 
                        Consumer Price Index for all-urban consumers 
                        published by the Department of Labor for July 
                        of such year exceeds the Consumer Price Index 
                        for all-urban consumers published by the 
                        Department of Labor for July of the preceding 
                        year. The first adjustment shall be made on 
                        October 1, 2004.
            (7) Performance evaluation.--
                    (A) Requirement for information.--The designated 
                Federal procurement official shall evaluate, each year, 
                whether an entity receiving SAFER grant funds in such 
                year is substantially complying with the terms and 
                conditions of the grant. The entity shall submit to the 
                designated Federal procurement official any information 
                that the designated Federal procurement official 
                requires for that year for the purpose of the 
                evaluation.
                    (B) Revocation or suspension of funding.--If the 
                designated Federal procurement official determines that 
                a recipient of a SAFER grant is not in substantial 
                compliance with the terms and conditions of the grant 
                the designated Federal procurement official may revoke 
                or suspend funding of the grant.
            (8) Access to documents.--
                    (A) Audits by designated Federal procurement 
                official.--The designated Federal procurement official 
                shall have access for the purpose of audit and 
                examination to any pertinent books, documents, papers, 
                or records of an eligible entity that receives a SAFER 
                grant.
                    (B) Audits by the comptroller general.--
                Subparagraph (A) shall also apply with respect to 
                audits and examinations conducted by the Comptroller 
                General of the United States or by an authorized 
                representative of the Comptroller General.
            (9) Termination of safer grant authority.--
                    (A) In general.--The authority to award a SAFER 
                grant shall terminate at the end of September 30, 2010.
                    (B) Report to congress.--Not later than two years 
                after the date of the enactment of this Act, the 
                designated Federal procurement official shall submit to 
                Congress a report on the SAFER grant program under this 
                section. The report shall include an assessment of the 
                effectiveness of the program for achieving its purpose, 
                and may include any recommendations that the designated 
                Federal procurement official has for increasing the 
                forces of firefighters in fire services.
            (10) Definitions.--In this subsection:
                    (A) Eligible entity.--The term ``eligible entity'' 
                means--
                            (i) a State;
                            (ii) a subdivision of a State;
                            (iii) a tribal organization;
                            (iv) any other public entity that the 
                        designated Federal procurement official 
                        determines appropriate for eligibility under 
                        this section; and
                            (v) a multijurisdictional or regional 
                        consortium of the entities described in clauses 
                        (i) through (iv).
                    (B) Firefighter.--The term ``firefighter'' means an 
                employee or volunteer member of a fire service, 
                including a firefighter, paramedic, emergency medical 
                technician, rescue worker, ambulance personnel, or 
                hazardous materials worker, who--
                            (i) is trained in fire suppression and has 
                        the legal authority and responsibility to 
                        engage in fire suppression; or
                            (ii) is engaged in the prevention, control, 
                        and extinguishment of fires or response to 
                        emergency situations where life, property, or 
                        the environment is at risk.
                    (C) Fire service.--The term ``fire service'' 
                includes an organization described in section 4(5) of 
                the Federal Fire Prevention and Control Act of 1974 
                that is under the jurisdiction of a tribal 
                organization.
                    (D) Master plan.--The term ``master plan'' has the 
                meaning given the term in section 10 of the Federal 
                Fire Prevention and Control Act of 1974.
                    (E) SAFER grant.--The term `SAFER grant' means a 
                grant of financial assistance under this subsection.
                    (F) Tribal organization.--The term ``tribal 
                organization'' has the meaning given the term in 
                section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b).
            (11) Authorization of Appropriations.--There are authorized 
        to be appropriated for the purpose of carrying out this section 
        such sums as may be necessary from the Department of Homeland 
        Security, up to--
                    (A) $1,000,000,000 for fiscal year 2004;
                    (B) $1,030,000,000 for fiscal year 2005; and
                    (C) $1,061,000,000 for fiscal year 2006.

SEC. 853. DEFINITIONS.

    In this subtitle:
            (1) Anti-terrorism technology and service.--The terms 
        ``anti-terrorism technology'' and ``anti-terrorism service'' 
        mean any product, equipment, or device, including information 
        technology, and any service, system integration, or other kind 
        of service (including a support service), respectively, that is 
        related to technology and is designed, developed, modified, or 
        procured for the purpose of preventing, detecting, identifying, 
        otherwise deterring, or recovering from acts of terrorism.
            (2) Information technology.--The term ``information 
        technology'' has the meaning given such term in section 
        11101(6) of title 40, United States Code.
            (3) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, and any territory or possession 
        of the United States.
            (4) Unit of local government.--The term ``unit of local 
        government'' means any city, county, township, town, borough, 
        parish, village, or other general purpose political subdivision 
        of a State; an Indian tribe which performs law enforcement 
        functions as determined by the Secretary of the Interior; or 
        any agency of the District of Columbia Government or the United 
        States Government performing law enforcement functions in and 
        for the District of Columbia or the Trust Territory of the 
        Pacific Islands.

     Subtitle G--General Contracting Authorities, Procedures, and 
                     Limitations, and Other Matters

SEC. 861. LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF UNITED STATES 
              JOINT FORCES COMMAND.

    Section 164 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(h) Limited Acquisition Authority for Commander of Certain 
Unified Combatant Command.--(1) The Secretary of Defense shall delegate 
to the commander of the unified combatant command referred to in 
paragraph (2) authority of the Secretary under chapter 137 of this 
title sufficient to enable the commander to develop and acquire 
equipment described in paragraph (3). The exercise of authority so 
delegated is subject to the authority, direction, and control of the 
Secretary.
    ``(2) The commander to which authority is delegated under paragraph 
(1) is the commander of the unified combatant command that has the 
mission for joint warfighting experimentation, as assigned by the 
Secretary of Defense.
    ``(3) The equipment referred to in paragraph (1) is as follows:
            ``(A) Battlefield command, control, communications, and 
        intelligence equipment.
            ``(B) Any other equipment that the commander referred to in 
        that paragraph determines necessary and appropriate for--
                    ``(i) facilitating the use of joint forces in 
                military operations; or
                    ``(ii) enhancing the interoperability of equipment 
                used by the various components of joint forces on the 
                battlefield.
    ``(4) The authority delegated under paragraph (1) does not apply to 
the development or acquisition of a system for which--
            ``(A) the total expenditure for research, development, 
        test, and evaluation is estimated to be $10,000,000 or more; or
            ``(B) the total expenditure for procurement of the system 
        is estimated to be $50,000,000 or more.
    ``(5) The commander of the unified combatant command referred to in 
paragraph (1) shall require the inspector general of the command to 
conduct internal audits and inspections of purchasing and contracting 
administered by the commander under the authority delegated under 
subsection (a).''.

SEC. 862. OPERATIONAL TEST AND EVALUATION.

    (a) Leadership and Duties of Department of Defense Test Resource 
Management Center.--(1) Subsection (b)(1) of section 196 of title 10, 
United States Code, is amended--
            (A) by striking ``on active duty. The Director'' and 
        inserting ``on active duty or from among senior civilian 
        officers and employees of the Department of Defense. A 
        commissioned officer serving as the Director''; and
            (B) by adding at the end the following: ``A civilian 
        officer or employee serving as the Director shall serve in a 
        pay level equivalent in rank to lieutenant general.''.
    (2)(A) Subsection (c)(1)(B) of such section is amended by inserting 
after ``Department of Defense'' the following: ``other than budgets and 
expenditures for activities described in section 139(i) of this 
title''.
    (B) Subsection (e)(1) of such section is amended--
            (i) by striking ``, the Director of Operational Test and 
        Evaluation,''; and
            (ii) by striking ``, Director's''.
    (b) Deployment Before Completion of OT&E.--Section 806(c) of the 
Bob Stump National Defense Authorization Act for Fiscal Year 2003 
(Public Law 107-314; 116 Stat. 2607; 10 U.S.C. 2302 note) is amended by 
adding at the end the following new paragraph:
    ``(3) If items are deployed under the rapid acquisition and 
deployment procedures prescribed pursuant to this section, or under any 
other authority, before the completion of operational test and 
evaluation of the items, the Director of Operational Test and 
Evaluation shall have access to operational records and data relevant 
to such items in accordance with section 139(e)(3) of title 10, United 
States Code, for the purpose of completing operational test and 
evaluation of the items. The access to the operational records and data 
shall be provided in a time and manner determined by the Secretary of 
Defense consistent with requirements of operational security and other 
relevant operational requirements.''.

SEC. 863. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Repeal of Applicability of Existing Authority and 
Limitations.--Section 2306c of title 10, United States Code, is 
amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
    (b) Multiyear Contracting Authority.--Section 2304a of such title 
is amended--
            (1) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively; and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Multiyear Contracts.--The head of an agency entering into a 
task or delivery order contract under this section may provide for the 
contract to cover any 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 of the contract. In 
no event, however, may the total contract period as extended exceed 
eight years.''.

SEC. 864. REPEAL OF REQUIREMENT FOR CONTRACTOR ASSURANCES REGARDING THE 
              COMPLETENESS, ACCURACY, AND CONTRACTUAL SUFFICIENCY OF 
              TECHNICAL DATA PROVIDED BY THE CONTRACTOR.

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

SEC. 865. REESTABLISHMENT OF AUTHORITY FOR SHORT-TERM LEASES OF REAL OR 
              PERSONAL PROPERTY ACROSS FISCAL YEARS.

    (a) Reestablishment of Authority.--Subsection (a) of section 2410a 
of title 10, United States Code, is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Defense'';
            (2) by striking ``for procurement of severable services'' 
        and inserting ``for a purpose described in paragraph (2)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) The purpose of a contract described in this paragraph is as 
follows:
            ``(A) The procurement of severable services.
            ``(B) The lease of real or personal property, including the 
        maintenance of such property when contracted for as part of the 
        lease agreement.''.
    (b) Conforming and Clerical Amendments.--(1) The heading of such 
section is amended to read as follows:
``Sec. 2410a. Contracts for periods crossing fiscal years: severable 
              service contracts; leases of real or personal property''.
    (2) The table of sections at the beginning of chapter 141 of such 
title is amended by striking the item relating to section 2410a and 
inserting the following new item:

``2410a. Contracts for periods crossing fiscal years: severable service 
                            contracts; leases of real or personal 
                            property.''.

SEC. 866. CONSOLIDATION OF CONTRACT REQUIREMENTS.

    (a) Amendment to Title 10.--(1) Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2381 the following 
new section:
``Sec. 2382. Consolidation of contract requirements: policy and 
              restrictions
    ``(a) Policy.--The Secretary of Defense shall require the Secretary 
of each military department, the head of each Defense Agency, and the 
head of each Department of Defense Field Activity to ensure that the 
decisions made by that official regarding consolidation of contract 
requirements of the department, agency, or field activity, as the case 
may be, are made with a view to providing small business concerns with 
appropriate opportunities to participate in Department of Defense 
procurements as prime contractors and appropriate opportunities to 
participate in such procurements as subcontractors.
    ``(b) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--(1) An official of a military department, Defense 
Agency, or Department of Defense Field Activity may not execute an 
acquisition strategy that includes a consolidation of contract 
requirements of the military department, agency, or activity with a 
total value in excess of $5,000,000, unless the senior procurement 
executive concerned first--
            ``(A) conducts market research;
            ``(B) identifies any alternative contracting approaches 
        that would involve a lesser degree of consolidation of contract 
        requirements; and
            ``(C) determines that the consolidation is necessary and 
        justified.
    ``(2) A senior procurement executive may determine that an 
acquisition strategy involving a consolidation of contract requirements 
is necessary and justified for the purposes of paragraph (1) if the 
benefits of the acquisition strategy substantially exceed the benefits 
of each of the possible alternative contracting approaches identified 
under subparagraph (B) of that paragraph. However, savings in 
administrative or personnel costs alone do not constitute, for such 
purposes, a sufficient justification for a consolidation of contract 
requirements in a procurement unless the total amount of the cost 
savings is expected to be substantial in relation to the total cost of 
the procurement.
    ``(3) Benefits considered for the purposes of paragraphs (1) and 
(2) may include cost and, regardless of whether quantifiable in dollar 
amounts--
            ``(A) quality;
            ``(B) acquisition cycle;
            ``(C) terms and conditions; and
            ``(D) any other benefit.
    ``(c) Definitions.--In this section:
            ``(1) The terms `consolidation of contract requirements' 
        and `consolidation', with respect to contract requirements of a 
        military department, Defense Agency, or Department of Defense 
        Field Activity, mean a use of a solicitation to obtain offers 
        for a single contract or a multiple award contract to satisfy 
        two or more requirements of that department, agency, or 
        activity for goods or services that have previously been 
        provided to, or performed for, that department, agency, or 
        activity under two or more separate contracts smaller in cost 
        than the total cost of the contract for which the offers are 
        solicited.
            ``(2) The term ``multiple award contract'' means--
                    ``(A) a contract that is entered into by the 
                Administrator of General Services under the multiple 
                award schedule program referred to in section 
                2302(2)(C) of this title;
                    ``(B) a multiple award task order contract or 
                delivery order contract that is entered into under the 
                authority of sections 2304a through 2304d of this title 
                or sections 303H through 303K of the Federal Property 
                and Administrative Services Act of 1949 (41 U.S.C. 253h 
                through 253k); and
                    ``(C) any other indeterminate delivery, 
                indeterminate quantity contract that is entered into by 
                the head of a Federal agency with two or more sources 
                pursuant to the same solicitation.
            ``(3) The term `senior procurement executive concerned' 
        means--
                    ``(A) with respect to a military department, the 
                official designated under section 16(3) of the Office 
                of Federal Procurement Policy Act (41 U.S.C. 414(3)) as 
                the senior procurement executive for the military 
                department; or
                    ``(B) with respect to a Defense Agency or a 
                Department of Defense Field Activity, the official so 
                designated for the Department of Defense.
            ``(4) The term `small business concern' means a business 
        concern that is determined by the Administrator of the Small 
        Business Administration to be a small-business concern by 
        application of the standards prescribed under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2381 the 
following new item:

``2382. Consolidation of contract requirements: policy and 
                            restrictions.''.
    (b) Data Review.--(1) The Secretary of Defense shall revise the 
data collection systems of the Department of Defense to ensure that 
such systems are capable of identifying each procurement that involves 
a consolidation of contract requirements within the department with a 
total value in excess of $5,000,000.
    (2) The Secretary shall ensure that appropriate officials of the 
Department of Defense periodically review the information collected 
pursuant to paragraph (1) in cooperation with the Small Business 
Administration--
            (A) to determine the extent of the consolidation of 
        contract requirements in the Department of Defense; and
            (B) to assess the impact of the consolidation of contract 
        requirements on the availability of opportunities for small 
        business concerns to participate in Department of Defense 
        procurements, both as prime contractors and as subcontractors.
    (3) In this subsection:
            (A) The term ``consolidation of contract requirements'' has 
        the meaning given that term in section 2382(c)(1) of title 10, 
        United States Code, as added by subsection (a).
            (B) The term ``small business concern'' means a business 
        concern that is determined by the Administrator of the Small 
        Business Administration to be a small-business concern by 
        application of the standards prescribed under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).
    (c) Applicability.--This section applies only with respect to 
contracts entered into with funds authorized to be appropriated by this 
Act.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department Officers and Agencies

SEC. 901. CLARIFICATION OF RESPONSIBILITY OF MILITARY DEPARTMENTS TO 
              SUPPORT COMBATANT COMMANDS.

    Sections 3013(c)(4), 5013(c)(4), and 8013(3)(c)(4) of title 10, 
United States Code, are amended by striking ``(to the maximum extent 
practicable)''.

SEC. 902. REDESIGNATION OF NATIONAL IMAGERY AND MAPPING AGENCY AS 
              NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY.

    (a) Redesignation.--The National Imagery and Mapping Agency (NIMA) 
is hereby redesignated as the National Geospatial-Intelligence Agency 
(NGA).
    (b) Conforming Amendments.--
            (1) Title 10, united states code.--(A) Chapter 22 of title 
        10, United States Code, is amended by striking ``National 
        Imagery and Mapping Agency'' each place it appears (other than 
        the penultimate place it appears in section 461(b) of such 
        title) and inserting ``National Geospatial-Intelligence 
        Agency''.
            (B) Section 453(b) of such title is amended by striking 
        ``NIMA'' each place it appears and inserting ``NGA''.
            (C)(i) Subsection (b)(3) of section 424 of such title is 
        amended by striking ``National Imagery and Mapping Agency'' and 
        inserting ``National Geospatial-Intelligence Agency''.
            (ii) The heading for such section is amended to read as 
        follows:
``Sec. 424. Disclosure of organizational and personnel information: 
              exemption for Defense Intelligence Agency, National 
              Reconnaissance Office, and National Geospatial 
              Intelligence Agency''.
            (iii) The table of sections at the beginning of subchapter 
        I of chapter 21 of such title is amended in the item relating 
        to section 424 by striking ``National Imagery and Mapping 
        Agency'' and inserting ``National Geospatial-Intelligence 
        Agency''.
            (D) Section 425(a) of such title is amended--
                    (i) by redesignating paragraphs (3) and (4) as 
                paragraphs (4) and (5), respectively; and
                    (ii) by inserting after paragraph (2) the following 
                new paragraph (3):
            ``(3) The words `National Geospatial-Intelligence Agency', 
        the initials `NGA', or the seal of the National Geospatial-
        Intelligence Agency.''.
            (E) Section 1614(2)(C) of such title is amended by striking 
        ``National Imagery and Mapping Agency'' and inserting 
        ``National Geospatial-Intelligence Agency''.
            (F)(i) The heading for chapter 22 of such title is amended 
        to read as follows:

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

            (ii) The table of chapters at the beginning of subtitle A 
        of such title, and at the beginning of part I of such subtitle, 
        are each amended by striking the item relating to chapter 22 
        and inserting the following new item:

``22. National Geospatial-Intelligence Agency...............     441''.
            (2) National security act of 1947.--(A) Section 3(4)(E) of 
        the National Security Act of 1947 (50 U.S.C. 401a(4)(E)) is 
        amended by striking ``National Imagery and Mapping Agency'' and 
        inserting ``National Geospatial-Intelligence Agency''.
            (B) That Act is further amended by striking ``National 
        Imagery and Mapping Agency'' each place it appears in sections 
        105, 105A, 105C, 106, and 110 (50 U.S.C. 403-5, 403-5a, 403-5c, 
        403-6, 404e) and inserting ``National Geospatial-Intelligence 
        Agency''.
            (C) Section 105C of that Act (50 U.S.C. 403-5c) is further 
        amended--
                    (i) by striking ``NIMA'' each place it appears and 
                inserting ``NGA''; and
                    (ii) in subsection (a)(6)(B)(iv)(II), by striking 
                ``NIMA's'' and inserting ``NGA's''.
            (D) The heading for section 105C of that Act (50 U.S.C. 
        403-5c) is amended to read as follows:

     ``protection of operational files of the national geospatial-
                         intelligence agency''.

            (E) The heading for section 110 of that Act (50 U.S.C. 
        404e) is amended to read as follows:

    ``national mission of national geospatial-intelligence agency''.

            (F) The table of contents for that Act is amended--
                    (i) by striking the item relating to section 105C 
                and inserting the following new item:

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

``Sec. 110. National mission of National Geospatial-Intelligence 
                            Agency.''.
    (c) Report on Utilization of Certain Data Extraction and 
Exploitation Capabilities.--(1) Not later than 60 days after the date 
of the enactment of this Act, the Director of the National Geospatial-
Intelligence Agency shall submit to the appropriate committees of 
Congress a report on the status of the efforts of the Agency to 
incorporate within the Commercial Joint Mapping Tool Kit (C/JMTK) 
applications for the rapid extraction and exploitation of three-
dimensional geospatial data from reconnaissance imagery.
    (2) In this subsection, the term ``appropriate committees of 
Congress'' means--
            (A) the Committee on Armed Services, the Subcommittee on 
        Defense of the Committee on Appropriations, and the Select 
        Committee on Intelligence of the Senate; and
            (B) the Committee on Armed Services, the Subcommittee on 
        Defense of the Committee on Appropriations, and the Permanent 
        Select Committee on Intelligence of the House of 
        Representatives.
    (d) References.--Any reference to the National Imagery and Mapping 
Agency or NIMA in any law, regulation, document, paper, or other record 
of the United States shall be deemed to be a reference to the National 
Geospatial-Intelligence Agency or NGA, respectively.
    (e) Matters Relating to Geospatial Intelligence.--(1) Section 
442(a)(2) of title 10, United States Code, is amended by striking 
``Imagery, intelligence, and information'' and inserting ``Geospatial 
intelligence''.
    (2) Section 467 of such title is amended by adding at the end the 
following new paragraph:
            ``(5) The term `geospatial intelligence' means the 
        exploitation and analysis of imagery and geospatial information 
        to describe, assess, and visually depict physical features and 
        geographically referenced activities on the earth, and includes 
        imagery, imagery intelligence, and geospatial information.''.
    (3) Section 110(a) of the National Security Act of 1947 (50 U.S.C. 
404e(a)) is amended by striking ``imagery requirements'' and inserting 
``geospatial intelligence requirements''.

SEC. 903. STANDARDS OF CONDUCT FOR MEMBERS OF THE DEFENSE POLICY BOARD 
              AND THE DEFENSE SCIENCE BOARD.

    (a) Standards Required.--Not later than 30 days after the date of 
the enactment of this Act, the Secretary of Defense shall promulgate 
standards of conduct for members of the Defense Policy Board and the 
Defense Science Board. The purpose of the standards of conduct shall be 
to ensure public confidence in the Defense Policy Board and the Defense 
Science Board.
    (b) Issues To Be Addressed.--The standards of conduct promulgated 
pursuant to subsection (a) shall address, at a minimum, the following:
            (1) Conditions governing the access of Board members to 
        classified information and other confidential information about 
        the plans and operations of the Department of Defense and 
        appropriate limitations on any use of such information for 
        private gain.
            (2) Guidelines for addressing conflicting financial 
        interests and recusal from participation in matters affecting 
        such interests.
            (3) Guidelines regarding the lobbying of Department of 
        Defense officials or other contacts with Department of Defense 
        officials regarding matters in which Board members may have 
        financial interests.
    (c) Report to Congress.--The Secretary of Defense shall provide the 
Committees on Armed Services of the Senate and the House of 
Representatives with a copy of the standards of conduct promulgated 
pursuant to subsection (a) immediately upon promulgation of the 
standards.

                      Subtitle B--Space Activities

SEC. 911. COORDINATION OF SPACE SCIENCE AND TECHNOLOGY ACTIVITIES OF 
              THE DEPARTMENT OF DEFENSE.

    (a) Space Science and Technology Strategy.--(1) The Under Secretary 
of the Air Force, in consultation with the Director of Defense Research 
and Engineering, shall develop a space science and technology strategy 
and shall review and, as appropriate, revise the strategy annually.
    (2) The strategy shall, at a minimum, address the following issues:
            (A) Short-term and long-term goals of the space science and 
        technology programs of the Department of Defense.
            (B) The process for achieving the goals, including an 
        implementation plan.
            (C) The process for assessing progress made toward 
        achieving the goals.
    (3) Not later than March 15, 2004, the Under Secretary shall submit 
a report on the space science and technology strategy to the Committees 
on Armed Services of the Senate and the House of Representatives.
    (b) Required Coordination.--In executing the space science and 
technology strategy, the directors of the research laboratories of the 
Department of Defense, the heads of other Department of Defense 
research components, and the heads of all other appropriate 
organizations identified jointly by the Under Secretary of the Air 
Force and the Director of Defense Research and Engineering--
            (1) shall identify research laboratory projects that make 
        contributions pertaining directly and uniquely to the 
        development of space technology; and
            (2) may execute the identified projects only with the 
        concurrence of the Under Secretary of the Air Force.
    (c) General Accounting Office Review.--(1) The Comptroller General 
shall review and assess the space science and technology strategy 
developed under subsection (a) and the effectiveness of the 
coordination process required under subsection (b).
    (2) Not later than September 1, 2004, the Comptroller General shall 
submit a report containing the findings and assessment under paragraph 
(1) to the committees on Armed Services of the Senate and the House of 
Representatives.
    (d) Definitions.--In this section:
            (1) The term ``research laboratory of the Department of 
        Defense'' means the following:
                    (A) The Air Force Research Laboratory.
                    (B) The Naval Research Laboratory.
                    (C) The Office of Naval Research.
                    (D) The Army Research Laboratory.
            (2) The term ``other Department of Defense research 
        component'' means the following:
                    (A) The Defense Advanced Research Projects Agency.
                    (B) The National Reconnaissance Office.

SEC. 912. SPACE PERSONNEL CADRE.

    (a) Strategy Required.--(1) The Secretary of Defense shall develop 
a human capital resources strategy for space personnel of the 
Department of Defense.
    (2) The strategy shall be designed to ensure that the space career 
fields of the military departments are integrated to the maximum extent 
practicable.
    (b) Report.--Not later than February 1, 2004, the Secretary shall 
submit a report on the strategy to the Committees on Armed Services of 
the Senate and the House of Representatives. The report shall contain 
the following information:
            (1) The strategy.
            (2) An assessment of the progress made in integrating the 
        space career fields of the military departments.
            (3) A comprehensive assessment of the adequacy of the 
        establishment of the Air Force officer career field for space 
        under section 8084 of title 10, United States Code, as a 
        solution for correcting deficiencies identified by the 
        Commission To Assess United States National Security Space 
        Management and Organization (established under section 1621 of 
        Public Law 106-65; 113 Stat. 813; 10 U.S.C. 111 note).
    (c) General Accounting Office Review.--(1) The Comptroller General 
shall review the strategy developed under subsection (a) the space 
career fields of the military departments and the plans of the military 
departments for developing space career fields. The review shall 
include an assessment of how effective the strategy and the space 
career fields and plans, when implemented, are likely to be for 
developing the necessary cadre of personnel who are expert in space 
systems development and space systems operations.
    (2) Not later than June 15, 2004, the Comptroller General shall 
submit to the Committees referred to in subsection (a)(2) a report on 
the results of the review under paragraph (1), including the assessment 
required by such paragraph.

SEC. 913. POLICY REGARDING ASSURED ACCESS TO SPACE FOR UNITED STATES 
              NATIONAL SECURITY PAYLOADS.

    (a) Policy.--It is the policy of the United States for the 
President to undertake actions appropriate to ensure, to the maximum 
extent practicable, that the United States has the capabilities 
necessary to launch and insert United States national security payloads 
into space whenever such payloads are needed in space.
    (b) Included Actions.--The appropriate actions referred to in 
subsection (a) shall include, at a minimum, providing resources and 
policy guidance to sustain--
            (1) the availability of at least two space launch vehicles 
        or families of space launch vehicles capable of delivering into 
        space all payloads designated as national security payloads by 
        the Secretary of Defense and the Director of Central 
        Intelligence; and
            (2) a robust space launch infrastructure and industrial 
        base.
    (c) Coordination.--The Secretary of Defense shall, to the maximum 
extent practicable, pursue the attainment of the capabilities described 
in subsection (a) in coordination with the Administrator of the 
National Space and Aeronautics Administration.

SEC. 914. PILOT PROGRAM TO PROVIDE SPACE SURVEILLANCE NETWORK SERVICES 
              TO ENTITIES OUTSIDE THE UNITED STATES GOVERNMENT.

    (a) Establishment.--The Secretary of Defense shall carry out a 
pilot program to provide eligible entities outside the Federal 
Government with satellite tracking services using assets owned or 
controlled by the Department of Defense.
    (b) Eligible Entities.--The Secretary shall prescribe the 
requirements for eligibility to obtain services under the pilot 
program. The requirements shall, at a minimum, provide eligibility for 
the following entities:
            (1) The governments of States.
            (2) The governments of political subdivisions of States.
            (3) United States commercial entities.
            (4) The governments of foreign countries.
            (5) Foreign commercial entities.
    (c) Sale of Services.--Services under the pilot program may be 
provided by sale, except in the case of services provided to a 
government described in paragraph (1) or (2) of subsection (b).
    (d) Contractor Intermediaries.--Services under the pilot program 
may be provided either directly to an eligible entity or through a 
contractor of the United States or a contractor of an eligible entity.
    (e) Satellite Data and Related Analyses.--The services provided 
under the pilot program may include satellite tracking data or any 
analysis of satellite data if the Secretary determines that it is in 
the national security interests of the United States for the services 
to include such data or analysis, respectively.
    (f) Reimbursement of Costs.--The Secretary may require an entity 
purchasing services under the pilot program to reimburse the Department 
of Defense for the costs incurred by the Department in entering into 
the sale.
    (g) Crediting to Charged Accounts.--(1) The proceeds of a sale of 
services under the pilot program, together with any amounts reimbursed 
under subsection (f) in connection with the sale, shall be credited to 
the appropriation for the fiscal year in which collected that is or 
corresponds to the appropriation charged the costs of such services.
    (2) Amounts credited to an appropriation under paragraph (1) shall 
be merged with other sums in the appropriation and shall be available 
for the same period and the same purposes as the sums with which 
merged.
    (h) Nontransferability Agreement.--The Secretary shall require a 
recipient of services under the pilot program to enter into an 
agreement not to transfer any data or technical information, including 
any analysis of satellite tracking data, to any other entity without 
the expressed approval of the Secretary.
    (i) Prohibition Concerning Intelligence Assets or Data.--Services 
and information concerning, or derived from, United States intelligence 
assets or data may not be provided under the pilot program.
    (j) Definitions.--In this section:
            (1) The term ``United States commercial entity'' means an 
        entity that is involved in commerce and is organized under laws 
        of a State, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, the United States Virgin Islands, the 
        Commonwealth of the Northern Mariana Islands, or American 
        Samoa.
            (2) The term ``foreign commercial entity'' means an entity 
        that is involved in commerce and is organized under laws of a 
        foreign country.
    (k) Duration of Pilot Program.--The pilot program under this 
section shall be conducted for three years beginning on a date 
designated by the Secretary of Defense, but not later than 180 days 
after the date of the enactment of this Act.

SEC. 915. CONTENT OF BIENNIAL GLOBAL POSITIONING SYSTEM REPORT.

    (a) Revised Content.--Paragraph (1) of section 2281(d) of title 10, 
United States Code, is amended--
            (1) by striking subparagraph (C);
            (2) in subparagraph (E), by striking ``Any progress made 
        toward'' and inserting ``Progress and challenges in'';
            (3) by striking subparagraph (F), and inserting the 
        following:
            ``(F) Progress and challenges in protecting GPS from 
        jamming, disruption, and interference.'';
            (4) by redesignating subparagraphs (D), (E), and (F), as 
        subparagraphs (C), (D), and (E), respectively; and
            (5) by inserting after subparagraph (E), as so 
        redesignated, the following new subparagraph (F):
            ``(F) Progress and challenges in developing the enhanced 
        Global Positioning System required by section 218(b) of Public 
        Law 105-261 (112 Stat. 1951; 10 U.S.C. 2281 note).''.
    (b) Conforming Amendment.--Paragraph (2) of such section 2281(d) is 
amended by inserting ``(C),'' after ``under subparagraphs''.

                       Subtitle C--Other Matters

SEC. 921. COMBATANT COMMANDER INITIATIVE FUND.

    (a) Redesignation of CINC Initiative Fund.--(1) The CINC Initiative 
Fund administered under section 166a of title 10, United States Code, 
is redesignated as the ``Combatant Commander Initiative Fund''.
    (2) Section 166a of title 10, United States Code, is amended--
            (A) by striking the heading for subsection (a) and 
        inserting ``Combatant Commander Initiative Fund.--``; and
            (B) by striking ``CINC Initiative Fund'' in subsections 
        (a), (c), and (d), and inserting ``Combatant Commander 
        Initiative Fund''.
    (3) Any reference to the CINC Initiative Fund in any other 
provision of law or in any regulation, document, record, or other paper 
of the United States shall be considered to be a reference to the 
Combatant Commander Initiative Fund.
    (b) Authorized Activities.--Subsection (b) of section 166a of title 
10, United States Code, is amended by adding at the end the following 
new paragraph:
            ``(10) Joint warfighting capabilities.''.
    (c) Increased Maximum Amounts Authorized for Use.--Subsection 
(e)(1) of such section is amended--
            (1) in subparagraph (A), by striking ``$7,000,000'' and 
        inserting ``$15,000,000'';
            (2) in subparagraph (B), by striking ``$1,000,000'' and 
        inserting ``$10,000,000''; and
            (3) in subparagraph (C), by striking ``$2,000,000'' and 
        inserting ``$10,000,000''.

SEC. 922. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD THE DEGREE 
              OF MASTER OF OPERATIONAL STUDIES.

    Section 7102(b) of title 10, United States Code, is amended--
            (1) by striking ``Marine Corps War College.--'' and 
        inserting ``Awarding of Degrees.--(1)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Upon the recommendation of the Director and faculty of the 
Command and Staff College of the Marine Corps University, the President 
of the Marine Corps University may confer the degree of master of 
operational studies upon graduates of the School of Advanced 
Warfighting of the Command and Staff College who fulfill the 
requirements for that degree.''.

SEC. 923. REPORT ON CHANGING ROLES OF UNITED STATES SPECIAL OPERATIONS 
              COMMAND.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the changing roles of the United States 
Special Operations Command.
    (b) Content of Report.--(1) The report shall specifically discuss 
in detail the following matters:
            (A) The expanded role of the United States Special 
        Operations Command in the global war on terrorism.
            (B) The reorganization of the United States Special 
        Operations Command to function as a supported combatant command 
        for planning and executing operations.
            (C) The role of the United States Special Operations 
        Command as a supporting combatant command.
    (2) The report shall also include, in addition to the matters 
discussed pursuant to paragraph (1), a discussion of the following 
matters:
            (A) The military strategy to employ the United States 
        Special Operations Command to fight the war on terrorism and 
        how that strategy contributes to the overall national security 
        strategy with regard to the global war on terrorism.
            (B) The scope of the authority granted to the commander of 
        the United States Special Operations Command to act as a 
        supported commander and to prosecute the global war on 
        terrorism.
            (C) The operational and legal parameters within which the 
        commander of the United States Special Operations Command is to 
        exercise command authority in foreign countries when taking 
        action against foreign and United States citizens engaged in 
        terrorist activities.
            (D) The decisionmaking procedures for authorizing, 
        planning, and conducting individual missions, including 
        procedures for consultation with Congress.
            (E) The procedures for the commander of the United States 
        Special Operations Command to use to coordinate with commanders 
        of other combatant commands, especially geographic commands.
            (F) Future organization plans and resource requirements for 
        conducting the global counterterrorism mission.
            (G) The impact of the changing role of the United States 
        Special Operations Command on other special operations 
        missions, including foreign internal defense, psychological 
        operations, civil affairs, unconventional warfare, counterdrug 
        activities, and humanitarian activities.
    (c) Forms of Report.--The report shall be submitted in unclassified 
form and, as necessary, in classified form.

SEC. 924. INTEGRATION OF DEFENSE INTELLIGENCE, SURVEILLANCE, AND 
              RECONNAISSANCE CAPABILITIES

    (a) Findings.--Congress makes the following findings:
            (1) As part of transformation efforts within the Department 
        of Defense, each of the Armed Forces is developing 
        intelligence, surveillance, and reconnaissance capabilities 
        that best support future war fighting as envisioned by the 
        leadership of the military department concerned.
            (2) Concurrently, intelligence agencies of the Department 
        of Defense outside the military departments are developing 
        transformation roadmaps to best support the future 
        decisionmaking and war fighting needs of their principal 
        customers, but are not always closely coordinating those 
        efforts with the intelligence, surveillance, and reconnaissance 
        development efforts of the military departments.
            (3) A senior official of each military department has been 
        designated as the integrator of intelligence, surveillance, and 
        reconnaissance for each of the Armed Forces in such military 
        department, but there is not currently a well-defined forum 
        where the integrators of intelligence, surveillance, and 
        reconnaissance capabilities for each of the Armed Forces can 
        routinely interact with each other and with senior 
        representatives of Department of Defense intelligence agencies, 
        as well as with other members of the intelligence community, to 
        ensure unity of effort and to preclude unnecessary duplication 
        of effort.
            (4) The current funding structure of a National Foreign 
        Intelligence Program (NFIP), Joint Military Intelligence 
        Program (JMIP), and Tactical Intelligence and Related 
        Activities Program (TIARA) might not be the best approach for 
        supporting the development of an intelligence, surveillance, 
        and reconnaissance structure that is integrated to meet the 
        national security requirements of the United States in the 21st 
        century.
            (5) The position of Under Secretary of Defense for 
        Intelligence was established in 2002 by Public Law 107-314 in 
        order to facilitate resolution of the challenges to achieving 
        an integrated intelligence, surveillance, and reconnaissance 
        structure in the Department of Defense to meet such 21st 
        century requirements.
    (b) Goal.--It shall be a goal of the Department of Defense to fully 
coordinate and integrate the intelligence, surveillance, and 
reconnaissance capabilities and developmental activities of the 
military departments, intelligence agencies of the Department of 
Defense, and relevant combatant commands as those departments, 
agencies, and commands transform their intelligence, surveillance, and 
reconnaissance systems to meet current and future needs.
    (c) Requirement.--(1) The Under Secretary of Defense for 
Intelligence shall establish an Intelligence, Surveillance, and 
Reconnaissance Integration Council to provide a permanent forum for the 
discussion and arbitration of issues relating to the integration of 
intelligence, surveillance, and reconnaissance capabilities.
    (2) The Council shall be composed of the senior intelligence 
officers of the Armed Forces and the United States Special Operations 
Command, the Director of Operations of the Joint Staff, and the 
directors of the intelligence agencies of the Department of Defense.
    (3) The Under Secretary of Defense for Intelligence shall invite 
the participation of the Director of Central Intelligence or his 
representative in the proceedings of the Council.
    (d) ISR Integration Roadmap.--The Under Secretary of Defense for 
Intelligence, in consultation with the Intelligence, Surveillance, and 
Reconnaissance Integration Council and the Director of Central 
Intelligence, shall develop a comprehensive Defense Intelligence, 
Surveillance, and Reconnaissance Integration Roadmap to guide the 
development and integration of the Department of Defense intelligence, 
surveillance, and reconnaissance capabilities for 15 years.
    (e) Report.--(1) Not later than September 30, 2004, the Under 
Secretary of Defense for Intelligence shall submit to the committees of 
Congress specified in paragraph (2) a report on the Defense 
Intelligence, Surveillance, and Reconnaissance Integration Roadmap 
developed under subsection (d). The report shall include the following 
matters:
            (A) The fundamental goals established in the roadmap.
            (B) An overview of the intelligence, surveillance, and 
        reconnaissance integration activities of the military 
        departments and the intelligence agencies of the Department of 
        Defense.
            (C) An investment strategy for achieving--
                    (i) an integration of Department of Defense 
                intelligence, surveillance, and reconnaissance 
                capabilities that ensures sustainment of needed 
                tactical and operational efforts; and
                    (ii) efficient investment in new intelligence, 
                surveillance, and reconnaissance capabilities.
            (D) A discussion of how intelligence gathered and analyzed 
        by the Department of Defense can enhance the role of the 
        Department of Defense in fulfilling its homeland security 
        responsibilities.
            (E) A discussion of how counterintelligence activities of 
        the Armed Forces and the Department of Defense intelligence 
        agencies can be better integrated.
            (F) Recommendations on how annual funding authorizations 
        and appropriations can be optimally structured to best support 
        the development of a fully integrated Department of Defense 
        intelligence, surveillance, and reconnaissance architecture.
    (2) The committees of Congress referred to in paragraph (1) are as 
follows:
            (A) The Committee on Armed Services, the Committee on 
        Appropriations, and the Select Committee on Intelligence of the 
        Senate.
            (B) The Committee on Armed Services, the Committee on 
        Appropriations, and the Permanent Select Committee on 
        Intelligence of the House of Representatives.

SEC. 925. ESTABLISHMENT OF THE NATIONAL GUARD OF THE NORTHERN MARIANA 
              ISLANDS.

    (a) Establishment.--The Secretary of Defense may cooperate with the 
Governor of the Northern Mariana Islands to establish the National 
Guard of the Northern Mariana Islands, and may integrate into the Army 
National Guard of the United States and the Air National Guard of the 
United States the members of the National Guard of the Northern Mariana 
Islands who are granted Federal recognition under title 32, United 
States Code.
    (b) Amendments to Title 10.--(1) Section 101 of title 10, United 
States Code, is amended--
            (A) in subsection (c), by inserting ``the Northern Mariana 
        Islands,'' after ``Puerto Rico,'' in paragraphs (2) and (4); 
        and
            (B) in subsection (d)(5), by inserting ``the Commonwealth 
        of the Northern Mariana Islands,'' after ``the Commonwealth of 
        Puerto Rico,''.
    (2) Section 10001 of such title is amended by inserting ``the 
Commonwealth of the Northern Mariana Islands,'' after ``the 
Commonwealth of Puerto Rico,''.
    (c) Amendments to Title 32.--Title 32, United States Code, is 
amended as follows:
            (1) Section 101 is amended--
                    (A) in paragraphs (4) and (6), by inserting ``, the 
                Northern Mariana Islands,'' after ``Puerto Rico''; and
                    (B) in paragraph (19), by inserting ``the 
                Commonwealth of the Northern Mariana Islands,'' after 
                ``the Commonwealth of Puerto Rico,''.
            (2) Section 103 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico''.
            (3) Section 104 is amended--
                    (A) in subsection (a), by striking ``and Puerto 
                Rico'' and inserting ``, Puerto Rico, and the Northern 
                Mariana Islands''; and
                    (B) in subsections (c) and (d), by inserting ``, 
                the Northern Mariana Islands,'' after ``Puerto Rico''.
            (4) Section 107(b) is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico''.
            (5) Section 109 is amended by inserting ``the Northern 
        Mariana Islands'' in subsections (a), (b), and (c) after 
        ``Puerto Rico,''.
            (6) Section 112(i)(3) is amended by inserting ``the 
        Commonwealth of the Northern Mariana Islands,'' after ``the 
        Commonwealth of Puerto Rico,''.
            (7) Section 304 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``or of Puerto Rico'' in the sentence 
        following the oath.
            (8) Section 314 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico'' in subsections (a) and 
        (d).
            (9) Section 315 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico'' each place it appears.
            (10) Section 325(a) is amended by inserting ``, the 
        Northern Mariana Islands,'' after ``Puerto Rico''.
            (11) Section 501(b) is amended by inserting ``, the 
        Northern Mariana Islands,'' after ``Puerto Rico''.
            (12) Section 503(b) is amended by inserting ``, the 
        Northern Mariana Islands,'' after ``Puerto Rico''.
            (13) Section 504(b) is amended by inserting ``, the 
        Northern Mariana Islands,'' after ``Puerto Rico''.
            (14) Section 505 is amended by inserting ``or the Northern 
        Mariana Islands,'' after ``Puerto Rico,'' in the first 
        sentence.
            (15) Section 509(l)(1) is amended by inserting ``the 
        Commonwealth of the Northern Mariana Islands,'' after ``the 
        Commonwealth of Puerto Rico,''.
            (16) Section 702 is amended--
                    (A) in subsection (a), by inserting ``, or the 
                Northern Mariana Islands,'' after ``Puerto Rico''; and
                    (B) in subsections (b), (c), and (d), by inserting 
                ``, the Northern Mariana Islands,'' after ``Puerto 
                Rico''.
            (17) Section 703 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico'' in subsections (a) and 
        (b).
            (18) Section 704 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico'' in subsections (a) and 
        (b).
            (19) Section 708 is amended--
                    (A) in subsection (a), by striking ``and Puerto 
                Rico,'' and inserting ``Puerto Rico, and the Northern 
                Mariana Islands,''; and
                    (B) in subsection (d), by inserting ``, the 
                Northern Mariana Islands,'' after ``Puerto Rico''.
            (20) Section 710 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico'' each place it appears 
        in subsections (c), (d)(3), (e), and (f)(1).
            (21) Section 711 is amended by inserting ``, the Northern 
        Mariana Islands,'' after ``Puerto Rico''.
            (22) Section 712(1) is amended by inserting ``, the 
        Northern Mariana Islands,'' after ``Puerto Rico''.
            (23) Section 715(c) is amended by striking ``or the 
        District of Columbia or Puerto Rico,'' and inserting ``, the 
        District of Columbia, Puerto Rico, or the Northern Mariana 
        Islands''.
    (d) Amendments to Title 37.--Section 101 of title 37, United States 
Code, is amended by striking ``the Canal Zone,'' in paragraphs (7) and 
(9) and inserting ``the Northern Mariana Islands,''.
    (e) Other References.--Any reference that is made in any other 
provision of law or in any regulation of the United States to a State, 
or to the Governor of a State, in relation to the National Guard (as 
defined in section 101(3) of title 32, United States Code) shall be 
considered to include a reference to the Commonwealth of the Northern 
Mariana Islands or to the Governor of the Northern Mariana Islands, 
respectively.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 2004 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$3,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2004.

    (a) Fiscal Year 2004 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2004 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2003, of funds appropriated for fiscal years before 
        fiscal year 2004 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $853,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $207,125,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
              2003.

    (a) DOD and DOE Authorizations.--Amounts authorized to be 
appropriated to the Department of Defense and the Department of Energy 
for fiscal year 2003 in the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314) are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization are increased (by a 
supplemental appropriation) or decreased (by a rescission), or both, or 
are increased by a transfer of funds, pursuant to title I of Public Law 
108-11.
    (b) Report on Fiscal Year 2003 Transfers.--Not later than 30 days 
after the end of each fiscal quarter for which unexpended balances of 
funds appropriated under title I of Public Law 108-11 are available for 
the Department of Defense, the Secretary of Defense shall submit to the 
congressional defense committees a report stating, for each transfer of 
such funds during such fiscal quarter of an amount provided for the 
Department of Defense through a so-called ``transfer account'', 
including the Iraqi Freedom Fund or any other similar account--
            (1) the amount of the transfer;
            (2) the appropriation account to which the transfer was 
        made; and
            (3) the specific purpose for which the transferred funds 
        were used or are to be used.

           Subtitle B--Improvement of Travel Card Management

SEC. 1011. MANDATORY DISBURSEMENT OF TRAVEL ALLOWANCES DIRECTLY TO 
              TRAVEL CARD CREDITORS.

    Section 2784a(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``The Secretary of 
        Defense may require'' and inserting ``The Secretary of Defense 
        shall require'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The Secretary of Defense may waive the requirement for a 
direct payment to a travel care issuer under paragraph (1) in any case 
in which it is determined under regulations prescribed by the Secretary 
that the direct payment would be against equity and good conscience or 
would be contrary to the best interests of the United States.''.

SEC. 1012. DETERMINATIONS OF CREDITWORTHINESS FOR ISSUANCE OF DEFENSE 
              TRAVEL CARD.

    Section 2784a of title 10, United States Code, is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Determinations of Creditworthiness for Issuance of Defense 
Travel Card.--(1) The Secretary of Defense shall require that the 
creditworthiness of an individual be evaluated before a Defense travel 
card is issued to the individual. The evaluation may include an 
examination of the individual's credit history in available credit 
records.
    ``(2) An individual may not be issued a Defense travel card if the 
individual is found not creditworthy as a result of the evaluation 
required under paragraph (1).''.

SEC. 1013. DISCIPLINARY ACTIONS AND ASSESSING PENALTIES FOR MISUSE OF 
              DEFENSE TRAVEL CARDS.

    (a) Requirement for Guidance.--The Secretary of Defense shall 
prescribe guidelines and procedures for making determinations regarding 
the taking of disciplinary action, including assessment of penalties, 
against Department of Defense personnel for improper, fraudulent, or 
abusive use of Defense travel cards by such personnel.
    (b) Actions Covered.--The disciplinary actions and penalties 
covered by the guidance and procedures prescribed under subsection (a) 
may include the following:
            (1) Civil actions for false claims under sections 3729 
        through 3731 of title 31, United States Code.
            (2) Administrative remedies for false claims and statements 
        provided under chapter 38 of title 31, United States Code.
            (3) In the case of civilian personnel, adverse personnel 
        actions under chapter 75 of title 5, United States Code, and 
        any other disciplinary actions available under law for 
        employees of the United States.
            (4) In the case of members of the Armed Forces, 
        disciplinary actions and penalties under chapter 47 of title 
        10, United States Code (the Uniform Code of Military Justice).
    (c) Report.--Not later than February 1, 2004, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the guidelines and 
penalties prescribed under subsection (a). The report shall include the 
following:
            (1) The guidelines and penalties.
            (2) A discussion of the implementation of the guidelines 
        and penalties.
            (3) A discussion of any additional administrative action, 
        or any recommended legislation, that the Secretary considers 
        necessary to effectively take disciplinary action against and 
        penalize Department of Defense personnel for improper, 
        fraudulent, or abusive use of Defense travel cards by such 
        personnel.
    (d) Defense Travel Card Defined.--In this section, the term 
``Defense travel card'' has the meaning given such term in section 
2784a(d)(1) of title 10, United States Code.

                          Subtitle C--Reports

SEC. 1021. ELIMINATION AND REVISION OF VARIOUS REPORTING REQUIREMENTS 
              APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Provisions of Title 10.--Title 10, United States Code, is 
amended as follows:
            (1) Section 128 is amended by striking subsection (d).
            (2) Section 437 is amended--
                    (A) by striking subsection (b); and
                    (B) in subsection (c)--
                            (i) by striking ``and'' at the end of 
                        paragraph (2);
                            (ii) by striking the period at the end of 
                        paragraph (3) and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(4) a description of each corporation, partnership, and 
        other legal entity that was established during such fiscal 
        year.''.
            (3)(A) Section 520c is amended--
                    (i) by striking subsection (b);
                    (ii) by striking ``(a) Provision of Meals and 
                Refreshments.--''; and
                    (iii) by striking the heading for such section and 
                inserting the following:
``Sec. 520c. Provision of meals and refreshments for recruiting 
              purposes''.
            (B) The item relating to such section in the table of 
        sections at the beginning of chapter 31 of such title is 
        amended to read as follow:

``520c. Provision of meals and refreshments for recruiting purposes.''.
            (4) Section 986 is amended by striking subsection (e).
            (5) Section 1060 is amended by striking subsection (d).
            (6) Section 2212 is amended by striking subsections (d) and 
        (e).
            (7) Section 2224 is amended by striking subsection (e).
            (8) Section 2255(b) is amended--
                    (A) by striking paragraph (2);
                    (B) by striking ``(b) Exception.--(1)'' and 
                inserting ``(b) Exception.--'';
                    (C) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
                    (D) by redesignating clauses (i), (ii), and (iii) 
                as subparagraphs (A), (B), and (C), respectively.
            (9) Section 2323(i) is amended by striking paragraph (3).
            (10) Section 2350a is amended by striking subsection (f).
            (11) Section 2350b(d) is amended--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following new paragraph:
    ``(1) Not later than 90 days after the end of each fiscal year in 
which the Secretary of Defense has authority delegated as described in 
subsection (a), the Secretary shall submit to Congress a report on the 
administration of such authority under this section. The report for a 
fiscal year shall include the following information:
            ``(A) Each prime contract that the Secretary required to be 
        awarded to a particular prime contractor during such fiscal 
        year, and each subcontract that the Secretary required be 
        awarded to a particular subcontractor during such fiscal year, 
        to comply with a cooperative agreement, together with the 
        reasons that the Secretary exercised authority to designate a 
        particular contractor or subcontractor, as the case may be.
            ``(B) Each exercise of the waiver authority under 
        subsection (c) during such fiscal year, including the 
        particular provision or provisions of law that were waived.''; 
        and
                    (B) by redesignating paragraph (3) as paragraph 
                (2).
            (12) Section 2371(h) is amended by adding at the end the 
        following new paragraph:
    ``(3) No report is required under this section for fiscal years 
after fiscal year 2006.''.
            (13) Section 2515(d) is amended--
                    (A) by striking ``Annual Report.--'' and inserting 
                ``Biennial Report.--''; and
                    (B) in paragraph (1)--
                            (i) in the second sentence, by striking 
                        ``each year'' and inserting ``each even-
                        numbered year''; and
                            (ii) in the third sentence, by striking 
                        ``during the fiscal year'' and inserting 
                        ``during the two fiscal years''.
            (14) Section 2541d is amended--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Report by Commercial Firms to 
                Secretary of Defense.--''.
            (15) Section 2645(d) is amended--
                    (A) by striking ``to Congress'' and all that 
                follows through ``notification of the loss'' in 
                paragraph (1) and inserting ``to Congress notification 
                of the loss'';
                    (B) by striking ``loss; and'' and inserting 
                ``loss.''; and
                    (C) by striking paragraph (2).
            (16) Section 2680 is amended by striking subsection (e).
            (17) Section 2688(e) is amended to read as follows:
    ``(e) Quarterly Report.--(1) Not later than 30 days after the end 
of each quarter of a fiscal year, the Secretary shall submit to the 
congressional defense committees a report on the conveyances made under 
subsection (a) during such fiscal quarter. The report shall include, 
for each such conveyance, an economic analysis (based upon accepted 
life-cycle costing procedures approved by the Secretary of Defense) 
demonstrating that--
            ``(A) the long-term economic benefit of the conveyance to 
        the United States exceeds the long-term economic cost of the 
        conveyance to the United States; and
            ``(B) the conveyance will reduce the long-term costs of the 
        United States for utility services provided by the utility 
        system concerned.
    ``(2) In this section, the term `congressional defense committees' 
means the following:
            ``(A) The Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
            ``(B) The Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.''.
            (18) Section 2807(b) is amended by striking ``$500,000'' 
        and inserting ``$1,000,000''.
            (19) Section 2827 is amended--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Subject to subsection (b), 
                the Secretary'' and inserting ``The Secretary''.
            (20) Section 2902(g) is amended--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(g)(1)'' and inserting ``(g)''.
            (21) Section 9514 is amended--
                    (A) in subsection (c)--
                            (i) by striking ``to Congress'' and all 
                        that follows through ``notification of the 
                        loss'' in paragraph (1) and inserting ``to 
                        Congress notification of the loss'';
                            (ii) by striking ``loss; and'' and 
                        inserting ``loss.''; and
                            (iii) by striking paragraph (2); and
                    (B) by striking subsection (f).
    (b) National Defense Authorization Act for Fiscal Years 1992 and 
1993.--Section 734 of the National Defense Authorization Act for Fiscal 
Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1411; 10 U.S.C. 1074 
note) is amended by striking subsection (c).
    (c) National Defense Authorization Act for Fiscal Year 1993.--
Section 324 of the National Defense Authorization Act for Fiscal Year 
1993 (Public Law 102-484; 106 Stat. 2367; 10 U.S.C. 2701 note) is 
amended--
            (1) by striking subsection (b); and
            (2) in subsection (a), by striking ``(a) Sense of 
        Congress.--''.
    (d) National Defense Authorization Act for Fiscal Year 1995.--
Section 721 of the National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103-337; 108 Stat. 2804; 10 U.S.C. 1074 note) is 
amended by striking subsection (h).
    (e) National Defense Authorization Act for Fiscal Year 1997.--
Section 324(c) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2480; 10 U.S.C. 2706 note) is 
amended by inserting ``before 2006'' after ``submitted to Congress''.
    (f) Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999.--The Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261) is amended--
            (1) in section 745(e) (112 Stat. 2078; 10 U.S.C. 1071 
        note)--
                    (A) by striking paragraph (2); and
                    (B) by striking ``TRICARE.--(1) The'' and inserting 
                ``TRICARE.--The'' ; and
            (2) effective on January 1, 2004, by striking section 1223 
        (112 Stat. 2154; 22 U.S.C. 1928 note).
    (g) National Defense Authorization Act for Fiscal Year 2000.--The 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65) is amended--
            (1) by striking section 1025 (113 Stat. 748; 10 U.S.C. 113 
        note);
            (2) in section 1039 (113 Stat. 756; 10 U.S.C. 113 note), by 
        striking subsection (b); and
            (3) in section 1201 (113 Stat. 779; 10 U.S.C. 168 note) by 
        striking subsection (d).
    (h) Department of Defense and Emergency Supplemental Appropriations 
for Recovery From and Response to Terrorist Attacks on the United 
States Act, 2002.--Section 8009 of the Department of Defense and 
Emergency Supplemental Appropriations for Recovery from and Response to 
Terrorist Attacks on the United States Act, 2002 (Public Law 107-117; 
115 Stat. 2249) is amended by striking ``, and these obligations shall 
be reported to the Congress as of September 30 of each year''.

SEC. 1022. GLOBAL STRIKE PLAN.

    (a) Integrated Plan for Prompt Global Strike.--The Secretary of 
Defense shall prescribe an integrated plan for developing, deploying, 
and sustaining a prompt global strike capability in the Armed Forces. 
The Secretary shall update the plan annually.
    (b) Reports Required.--(1) Not later than April 1 of each of 2004, 
2005, and 2006, the Secretary shall submit to the congressional defense 
committees a report on the plan prescribed under subsection (a).
    (2) Each report required under paragraph (1) shall include the 
following:
            (A) A description and assessment of the targets against 
        which long-range strike assets might be directed and the 
        conditions under which the assets might be used.
            (B) The role of, and plans for ensuring, sustainment and 
        modernization of current long-range strike assets, including 
        bombers, intercontinental ballistic missiles, and submarine 
        launched ballistic missiles.
            (C) A description of the capabilities desired for advanced 
        long-range strike assets and plans to achieve those 
        capabilities.
            (D) A description of the capabilities desired for advanced 
        conventional munitions and the plans to achieve those 
        capabilities.
            (E) An assessment of advanced nuclear concepts that could 
        contribute to the prompt global strike mission.
            (F) An assessment of the command, control, and 
        communications capabilities necessary to support prompt global 
        strike capabilities.
            (G) An assessment of intelligence, surveillance, and 
        reconnaissance capabilities necessary to support prompt global 
        strike capabilities.
            (H) A description of how prompt global strike capabilities 
        are to be integrated with theater strike capabilities.
            (I) An estimated schedule for achieving the desired prompt 
        global strike capabilities.
            (J) The estimated cost of achieving the desired prompt 
        global strike capabilities.
            (K) A description of ongoing and future studies necessary 
        for updating the plan appropriately.

SEC. 1023. REPORT ON THE CONDUCT OF OPERATION IRAQI FREEDOM.

    (a) Report Required.--(1) The Secretary of Defense shall summit to 
the congressional defense committees, not later than March 31, 2004, a 
report on the conduct of military operations under Operation Iraqi 
Freedom.
    (2) The report shall be prepared in consultation with the Chairman 
of the Joint Chiefs of Staff, the Commander of the United States 
Central Command, and such other officials as the Secretary considers 
appropriate.
    (b) Content.--(1) The report shall include a discussion of the 
matters described in paragraph (2), with a particular emphasis on 
accomplishments and shortcomings and on near-term and long-term 
corrective actions to address the shortcomings.
    (2) The matters to be discussed in the report are as follows:
            (A) The military objectives of the international coalition 
        conducting Operation Iraqi Freedom, the military strategy 
        selected to achieve the objectives, and an assessment of the 
        execution of the military strategy.
            (B) The deployment process, including the adaptability of 
        the process to unforeseen contingencies and changing 
        requirements.
            (C) The reserve component mobilization process, including 
        the timeliness of notification, training, and subsequent 
        demobilization.
            (D) The use and performance of major items of United States 
        military equipment, weapon systems, and munitions (including 
        items classified under special access procedures and items 
        drawn from prepositioned stocks) and any expected effects of 
        the experience with the use and performance of those items on 
        the doctrinal and tactical employment of such items and on 
        plans for continuing the acquisition of such items.
            (E) Any additional identified requirements for military 
        equipment, weapon systems, and munitions, including mix and 
        quantity for future contingencies.
            (F) The effectiveness of joint air operations, including 
        the doctrine for the employment of close air support in the 
        varied environments of Operation Iraqi Freedom, and the 
        effectiveness of attack helicopter operations.
            (G) The use of special operations forces, including 
        operational and intelligence uses.
            (H) The scope of logistics support, including support from 
        other nations.
            (I) The incidents of accidental fratricide, together with a 
        discussion of the effectiveness of the tracking of friendly 
        forces and of the combat identification systems in mitigating 
        friendly fire incidents.
            (J) The adequacy of spectrum and bandwidth to transmit all 
        necessary information to operational forces and assets, 
        including unmanned aerial vehicles, ground vehicles, and 
        individual soldiers.
            (K) The effectiveness of information operations, including 
        the effectiveness of Commando Solo and other psychological 
        operations assets, in achieving established objectives, 
        together with a description of technological and other 
        restrictions on the use of psychological operations 
        capabilities.
            (L) The effectiveness of the reserve component forces used 
        in Operation Iraqi Freedom.
            (M) The adequacy of intelligence support to the warfighter 
        before, during, and after combat operations, including the 
        adequacy of such support to facilitate searches for weapons of 
        mass destruction.
            (N) The rapid insertion and integration, if any, of 
        developmental but mission-essential equipment during all phases 
        of the operation.
            (O) The most critical lessons learned that could lead to 
        long-term doctrinal, organizational, and technological changes, 
        and the probable effects that an implementation of those 
        changes would have on current visions, goals, and plans for 
        transformation of the Armed Forces.
            (P) The results of a study, carried out by the Secretary of 
        Defense, regarding the availability of family support services 
        provided to the dependents of members of the National Guard and 
        other reserve components of the Armed Forces who are called or 
        ordered to active duty (hereinafter in this subparagraph 
        referred to as ``mobilized members''), including, at a minimum, 
        the following matters:
                    (i) A discussion of the extent to which cooperative 
                agreements are in place or need to be entered into to 
                ensure that dependents of mobilized members receive 
                adequate family support services from within existing 
                family readiness groups at military installations 
                without regard to the members' armed force or component 
                of an armed force.
                    (ii) A discussion of what additional family support 
                services, and what additional family support agreements 
                between and among the Armed Forces (including the Coast 
                Guard), are necessary to ensure that adequate family 
                support services are provided to the families of 
                mobilized members.
                    (iii) A discussion of what additional resources are 
                necessary to ensure that adequate family support 
                services are available to the dependents of each 
                mobilized member at the military installation nearest 
                the residence of the dependents.
                    (iv) The additional outreach programs that should 
                be established between families of mobilized members 
                and the sources of family support services at the 
                military installations in their respective regions.
                    (v) A discussion of the procedures in place for 
                providing information on availability of family support 
                services to families of mobilized members at the time 
                the members are called or ordered to active duty.
    (c) Forms of Report.--The report shall be submitted in unclassified 
form, but may also be submitted in classified form if necessary.
    (d) Reporting Requirement Relating to Noncompetitive Contracting 
for the Reconstruction of Infrastructure of Iraq.--(1) If a contract 
for the maintenance, rehabilitation, construction, or repair of 
infrastructure in Iraq is entered into under the oversight and 
direction of the Secretary of Defense or the Office of Reconstruction 
and Humanitarian Assistance in the Office of the Secretary of Defense 
without full and open competition, the Secretary shall publish in the 
Federal Register or Commerce Business Daily and otherwise make 
available to the public, not later than 30 days after the date on which 
the contract is entered into, the following information:
            (i) The amount of the contract.
            (ii) A brief description of the scope of the contract.
            (iii) A discussion of how the executive agency identified, 
        and solicited offers from, potential contractors to perform the 
        contract, together with a list of the potential contractors 
        that were issued solicitations for the offers.
            (iv) The justification and approval documents on which was 
        based the determination to use procedures other than procedures 
        that provide for full and open competition.
    (B) Subparagraph (A) does not apply to a contract entered into more 
than one year after date of enactment.
    (2)(A) The head of an executive agency may--
            (i) withhold from publication and disclosure under 
        paragraph (1) any document that is classified for restricted 
        access in accordance with an Executive order in the interest of 
        national defense or foreign policy; and
            (ii) redact any part so classified that is in a document 
        not so classified before publication and disclosure of the 
        document under paragraph (1).
    (B) In any case in which the head of an executive agency withholds 
information under subparagraph (A), the head of such executive agency 
shall make available an unredacted version of the document containing 
that information to the chairman and ranking member of each of the 
following committees of Congress:
            (i) The Committee on Governmental Affairs of the Senate and 
        the Committee on Government Reform of the House of 
        Representatives.
            (ii) The Committees on Appropriations of the Senate and the 
        House of Representatives.
            (iii) Each committee that the head of the executive agency 
        determines has legislative jurisdiction for the operations of 
        such department or agency to which the information relates.
    (3) This subsection shall apply to contracts entered into on or 
after October 1, 2002, except that, in the case of a contract entered 
into before the date of the enactment of this Act, paragraph (1) shall 
be applied as if the contract had been entered into on the date of the 
enactment of this Act.
    (4) Nothing in this subsection shall be construed as affecting 
obligations to disclose United States Government information under any 
other provision of law.
    (5) In this subsection, the terms ``executive agency'' and ``full 
and open competition'' have the meanings given such terms in section 4 
of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

SEC. 1024. REPORT ON MOBILIZATION OF THE RESERVES.

    (a) Requirement for Report.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report on the mobilization of reserve component 
forces during fiscal years 2002 and 2003.
    (b) Content.--The report under subsection (a) shall include, for 
the period covered by the report, the following information:
            (1) The number of Reserves who were called or ordered to 
        active duty under a provision of law referred to in section 
        101(a)(13)(B) of title 10, United States Code.
            (2) The number of such Reserves who were called or ordered 
        to active duty for one year or more, including any extensions 
        on active duty.
            (3) The military specialties of the Reserves counted under 
        paragraph (2).
            (4) The number of Reserves who were called or ordered to 
        active duty more than once under a provision of law referred to 
        in section 101(a)(13)(B) of title 10, United States Code.
            (5) The military specialties of the Reserves counted under 
        paragraph (4).
            (6) The known effects on the reserve components, including 
        the effects on recruitment and retention of personnel for the 
        reserve components, that have resulted from--
                    (A) the calls and orders of Reserves to active 
                duty; and
                    (B) the tempo of the service of the Reserves on the 
                active duty to which called or ordered.
            (7) The changes in the Armed Forces, including any changes 
        in the allocation of roles and missions between the active 
        components and the reserve components of the Armed Forces, that 
        are envisioned by the Secretary of Defense on the basis of--
                    (A) the effects discussed under paragraph (6); or
                    (B) the experienced need for calling and ordering 
                Reserves to active duty during the period.
            (8) An assessment of how necessary it would be to call or 
        order Reserves to active duty in the event of a war or 
        contingency operation (as defined in section 101(a)(13) of 
        title 10, United States Code) if such changes were implemented.
            (9) On the basis of the experience of calling and ordering 
        Reserves to active duty during the period, an assessment of the 
        process for calling and ordering Reserves to active duty, 
        preparing such Reserves for the active duty, processing the 
        Reserves into the force upon entry onto active duty, and 
        deploying the Reserves, including an assessment of the adequacy 
        of the alert and notification process from the perspectives of 
        the individual Reserves, reserve component units, and employers 
        of Reserves.

SEC. 1025. STUDY OF BERYLLIUM INDUSTRIAL BASE.

    (a) Requirement for Study.--The Secretary of Defense shall conduct 
a study of the adequacy of the industrial base of the United States to 
meet defense requirements of the United States for beryllium.
    (b) Report.--Not later than January 30, 2004, the Secretary shall 
submit a report on the results of the study to Congress. The report 
shall contain, at a minimum, the following information:
            (1) A discussion of the issues identified with respect to 
        the long-term supply of beryllium.
            (2) An assessment of the need, if any, for modernization of 
        the primary sources of production of beryllium.
            (3) A discussion of the advisability of, and concepts for, 
        meeting the future defense requirements of the United States 
        for beryllium and maintaining a stable domestic industrial base 
        of sources of beryllium through--
                    (A) cooperative arrangements commonly referred to 
                as public-private partnerships;
                    (B) the administration of the National Defense 
                Stockpile under the Strategic and Critical Materials 
                Stock Piling Act; and
                    (C) any other means that the Secretary identifies 
                as feasible.

                       Subtitle D--Other Matters

SEC. 1031. BLUE FORCES TRACKING INITIATIVE.

    (a) Findings.--Congress makes the following findings:
            (1) For military commanders, a principal purpose of 
        technology is to enable the commanders to ascertain the 
        location of the units in their commands in near real time.
            (2) Each of the Armed Forces is developing and testing a 
        variety of technologies for tracking friendly forces (known as 
        ``blue forces'').
            (3) Situational awareness of blue forces has been much 
        improved since the 1991 Persian Gulf War, but blue forces 
        tracking remains a complex problem characterized by information 
        that is incomplete, not fully accurate, or untimely.
            (4) Casualties in recent warfare have declined, but 
        casualties associated with friendly fire incidents have 
        remained relatively constant.
            (5) Despite significant investment, a coordinated, 
        interoperable plan for tracking blue forces throughout a United 
        States or coalition forces theater of operations has not been 
        developed.
    (b) Goal.--It shall be a goal of the Department of Defense to fully 
coordinate the various efforts of the Joint Staff, the commanders of 
the combatant commands, and the military departments to develop an 
effective blue forces tracking system.
    (c) Joint Blue Forces Tracking Experiment.--(1) The Secretary of 
Defense, through the Commander of the United States Joint Forces 
Command, shall carry out a joint experiment in fiscal year 2004 to 
demonstrate and evaluate available joint blue forces tracking 
technologies.
    (2) The objectives of the experiment are as follows:
            (A) To explore various options for tracking United States 
        and other friendly forces during combat operations.
            (B) To determine an optimal, achievable, and ungradable 
        solution for the development, acquisition, and fielding of a 
        system for tracking all United States military forces that is 
        coordinated and interoperable and also accommodates the 
        participation of military forces of allied nations with United 
        States forces in combat operations.
    (d) Report.--Not later than 60 days after the conclusion of the 
experiment under subsection (c), but not later than December 1, 2004, 
the Secretary shall submit to the congressional defense committees a 
report on the results of the experiment, together with a comprehensive 
plan for the development, acquisition, and fielding of a functional, 
near real time blue forces tracking system.

SEC. 1032. LOAN, DONATION, OR EXCHANGE OF OBSOLETE OR SURPLUS PROPERTY.

    During fiscal years 2004 and 2005, the Secretary of the military 
department concerned may exchange for an historical artifact any 
obsolete or surplus property held by such military department in 
accordance with section 2572 of title 10, United States Code, without 
regard to whether the property is described in subsection (c) of such 
section.

SEC. 1033. ACCEPTANCE OF GIFTS AND DONATIONS.

    (a) Authorized Sources of Gifts and Donations.--Subsection (a) of 
section 2611 of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``foreign gifts and 
        donations'' and inserting ``gifts and donations from sources 
        described in paragraph (2)'';
            (2) by redesignating paragraph (2) as paragraph (3); and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
    ``(2) The sources from which gifts and donations may be accepted 
under paragraph (1) are as follows:
            ``(A) A department or agency of the Federal Government.
            ``(B) The government of a State or of a political 
        subdivision of a State.
            ``(C) The government of a foreign country.
            ``(D) A foundation or other charitable organization, 
        including a foundation or charitable organization that is 
        organized or operates under the laws of a foreign country.
            ``(E) Any source in the private sector of the United States 
        or a foreign country.''.
    (b) Conforming Amendments.--(1) The headings for subsections (a) 
and (f) of such section are amended by striking ``Foreign''.
    (2) Subsection (c) is amended by striking ``foreign''.
    (3) Subsection (f) is amended--
            (A) by striking ``foreign''; and
            (B) by striking ``faculty services)'' and all that follows 
        and inserting ``faculty services).''.
    (4)(A) The heading of such section is amended to read as follows:
``Sec. 2611. Asia-Pacific Center for Security Studies: acceptance of 
              gifts and donations''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 155 is amended to read as follows:

``2611. Asia-Pacific Center for Security Studies: acceptance of gifts 
                            and donations.''.
    (c) Acceptance of Guarantees with Gifts in Development of Marine 
Corps Heritage Center, Marine Corps Base, Quantico, Virginia.--(1) The 
Secretary of the Navy may utilize the authority in section 6975 of 
title 10, United States Code, for purposes of the project to develop 
the Marine Corps Heritage Center at Marine Corps Base, Quantico, 
Virginia, authorized by section 2884 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-440).
    (2) The authority in paragraph (1) shall expire on December 31, 
2006.
    (3) The expiration under paragraph (2) of the authority in 
paragraph (1) shall not effect any qualified guarantee accepted 
pursuant to such authority for purposes of the project referred to in 
paragraph (1) before the date of the expiration of such authority under 
paragraph (2).

SEC. 1034. PROVISION OF LIVING QUARTERS FOR CERTAIN STUDENTS WORKING AT 
              NATIONAL SECURITY AGENCY LABORATORY.

    Section 2195 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) The Director of the National Security Agency may provide 
living quarters to a student in the Student Educational Employment 
Program or similar program (as prescribed by the Office of Personnel 
Management) while the student is employed at the laboratory of the 
Agency.
    ``(2) Notwithstanding section 5911(c) of title 5, living quarters 
may be provided under paragraph (1) without charge, or at rates or 
charges specified in regulations prescribed by the Director.''.

SEC. 1035. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL SECURITY 
              AGENCY.

    (a) Consolidation of Current Provisions on Protection of 
Operational Files.--The National Security Act of 1947 (50 U.S.C. 401 et 
seq.) is amended by transferring sections 105C and 105D to the end of 
title VII and redesignating such sections, as so transferred, as 
sections 703 and 704, respectively.
    (b) Protection of Operational Files of NSA.--Title VII of such Act, 
as amended by subsection (a), is further amended by adding at the end 
the following new section:

          ``operational files of the national security agency

    ``Sec. 705. (a) Exemption of Certain Operational Files From Search, 
Review, Publication, or Disclosure.--(1) Operational files of the 
National Security Agency (hereafter in this section referred to as 
`NSA') may be exempted by the Director of NSA, in coordination with the 
Director of Central Intelligence, from the provisions of section 552 of 
title 5, United States Code, which require publication, disclosure, 
search, or review in connection therewith.
    ``(2)(A) In this section, the term `operational files' means--
            ``(i) files of the Signals Intelligence Directorate, and 
        its successor organizations, which document the means by which 
        foreign intelligence or counterintelligence is collected 
        through technical systems; and
            ``(ii) files of the Research Associate Directorate, and its 
        successor organizations, which document the means by which 
        foreign intelligence or counterintelligence is collected 
        through scientific and technical systems.
    ``(B) Files which are the sole repository of disseminated 
intelligence, and files that have been accessioned into NSA Archives, 
or its successor organizations, are not operational files.
    ``(3) Notwithstanding paragraph (1), exempted operational files 
shall continue to be subject to search and review for information 
concerning--
            ``(A) United States citizens or aliens lawfully admitted 
        for permanent residence who have requested information on 
        themselves pursuant to the provisions of section 552 or 552a of 
        title 5, United States Code;
            ``(B) any special activity the existence of which is not 
        exempt from disclosure under the provisions of section 552 of 
        title 5, United States Code; or
            ``(C) the specific subject matter of an investigation by 
        any of the following for any impropriety, or violation of law, 
        Executive order, or Presidential directive, in the conduct of 
        an intelligence activity:
                    ``(i) The Committee on Armed Services and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives.
                    ``(ii) The Committee on Armed Services and the 
                Select Committee on Intelligence of the Senate.
                    ``(iii) The Intelligence Oversight Board.
                    ``(iv) The Department of Justice.
                    ``(v) The Office of General Counsel of NSA.
                    ``(vi) The Office of the Inspector General of the 
                Department of Defense.
                    ``(vii) The Office of the Director of NSA.
    ``(4)(A) Files that are not exempted under paragraph (1) which 
contain information derived or disseminated from exempted operational 
files shall be subject to search and review.
    ``(B) The inclusion of information from exempted operational files 
in files that are not exempted under paragraph (1) shall not affect the 
exemption under paragraph (1) of the originating operational files from 
search, review, publication, or disclosure.
    ``(C) The declassification of some of the information contained in 
exempted operational files shall not affect the status of the 
operational file as being exempt from search, review, publication, or 
disclosure.
    ``(D) Records from exempted operational files which have been 
disseminated to and referenced in files that are not exempted under 
paragraph (1), and which have been returned to exempted operational 
files for sole retention shall be subject to search and review.
    ``(5) The provisions of paragraph (1) may not be superseded except 
by a provision of law which is enacted after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 2004, and 
which specifically cites and repeals or modifies such provisions.
    ``(6)(A) Except as provided in subparagraph (B), whenever any 
person who has requested agency records under section 552 of title 5, 
United States Code, alleges that NSA has withheld records improperly 
because of failure to comply with any provision of this section, 
judicial review shall be available under the terms set forth in section 
552(a)(4)(B) of title 5, United States Code.
    ``(B) Judicial review shall not be available in the manner provided 
for under subparagraph (A) as follows:
            ``(i) In any case in which information specifically 
        authorized under criteria established by an Executive order to 
        be kept secret in the interests of national defense or foreign 
        relations is filed with, or produced for, the court by NSA, 
        such information shall be examined ex parte, in camera by the 
        court.
            ``(ii) The court shall determine, to the fullest extent 
        practicable, the issues of fact based on sworn written 
        submissions of the parties.
            ``(iii) When a complainant alleges that requested records 
        are improperly withheld because of improper placement solely in 
        exempted operational files, the complainant shall support such 
        allegation with a sworn written submission based upon personal 
        knowledge or otherwise admissible evidence.
            ``(iv)(I) When a complainant alleges that requested records 
        were improperly withheld because of improper exemption of 
        operational files, NSA shall meet its burden under section 
        552(a)(4)(B) of title 5, United States Code, by demonstrating 
        to the court by sworn written submission that exempted 
        operational files likely to contain responsible records 
        currently perform the functions set forth in paragraph (2).
            ``(II) The court may not order NSA to review the content of 
        any exempted operational file or files in order to make the 
        demonstration required under subclause (I), unless the 
        complainant disputes NSA's showing with a sworn written 
        submission based on personal knowledge or otherwise admissible 
        evidence.
            ``(v) In proceedings under clauses (iii) and (iv), the 
        parties may not obtain discovery pursuant to rules 26 through 
        36 of the Federal Rules of Civil Procedure, except that 
        requests for admissions may be made pursuant to rules 26 and 
        36.
            ``(vi) If the court finds under this paragraph that NSA has 
        improperly withheld requested records because of failure to 
        comply with any provision of this subsection, the court shall 
        order NSA to search and review the appropriate exempted 
        operational file or files for the requested records and make 
        such records, or portions thereof, available in accordance with 
        the provisions of section 552 of title 5, United States Code, 
        and such order shall be the exclusive remedy for failure to 
        comply with this subsection.
            ``(vii) If at any time following the filing of a complaint 
        pursuant to this paragraph NSA agrees to search the appropriate 
        exempted operational file or files for the requested records, 
        the court shall dismiss the claim based upon such complaint.
            ``(viii) Any information filed with, or produced for the 
        court pursuant to clauses (i) and (iv) shall be coordinated 
        with the Director of Central Intelligence before submission to 
        the court.
    ``(b) Decennial Review of Exempted Operational Files.--(1) Not less 
than once every 10 years, the Director of the National Security Agency 
and the Director of Central Intelligence shall review the exemptions in 
force under subsection (a)(1) to determine whether such exemptions may 
be removed from a category of exempted files or any portion thereof. 
The Director of Central Intelligence must approve any determination to 
remove such exemptions.
    ``(2) The review required by paragraph (1) shall include 
consideration of the historical value or other public interest in the 
subject matter of a particular category of files or portions thereof 
and the potential for declassifying a significant part of the 
information contained therein.
    ``(3) A complainant that alleges that NSA has improperly withheld 
records because of failure to comply with this subsection may seek 
judicial review in the district court of the United States of the 
district in which any of the parties reside, or in the District of 
Columbia. In such a proceeding, the court's review shall be limited to 
determining the following:
            ``(A) Whether NSA has conducted the review required by 
        paragraph (1) before the expiration of the 10-year period 
        beginning on the date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 2004 or before the expiration 
        of the 10-year period beginning on the date of the most recent 
        review.
            ``(B) Whether NSA, in fact, considered the criteria set 
        forth in paragraph (2) in conducting the required review.''.
    (c) Conforming Amendments.--(1) Section 701(b) of the National 
Security Act of 1947 (50 U.S.C. 431(b)) is amended by striking ``For 
purposes of this title'' and inserting ``In this section and section 
702,''.
    (2) Section 702(c) of such Act (50 U.S.C. 432(c)) is amended by 
striking ``enactment of this title'' and inserting ``October 15, 
1984,''.
    (3)(A) The title heading for title VII of such Act is amended to 
read as follows:

            ``TITLE VII--PROTECTION OF OPERATIONAL FILES''.

    (B) The section heading for section 701 of such Act is amended to 
read as follows:

``protection of operational files of the central intelligence agency''.

    (C) The section heading for section 702 of such Act is amended to 
read as follows:

``decennial review of exempted central intelligence agency operational 
                                files''.

    (d) Clerical Amendments.--The table of contents for the National 
Security Act of 1947 is amended--
            (1) by striking the items relating to sections 105C and 
        105D; and
            (2) by striking the items relating to title VII and 
        inserting the following new items:

              ``Title VII--Protection of Operational Files

``Sec. 701. Protection of operational files of the Central Intelligence 
                            Agency.
``Sec. 702. Decennial review of exempted Central Intelligence Agency 
                            operational files.
``Sec. 703. Protection of operational files of the National Imagery and 
                            Mapping Agency.
``Sec. 704. Protection of operational files of the National 
                            Reconnaissance Office.
``Sec. 705. Protection of operational files of the National Security 
                            Agency.''.

SEC. 1036. TRANSFER OF ADMINISTRATION OF NATIONAL SECURITY EDUCATION 
              PROGRAM TO DIRECTOR OF CENTRAL INTELLIGENCE.

    (a) In General.--Section 802 of the David L. Boren National 
Security Education Act of 1991 (title VIII of Public Law 102-183; 50 
U.S.C. 1902) is amended--
            (1) in subsection (a), by striking ``Secretary of Defense'' 
        and inserting ``Director of Central Intelligence''; and
            (2) by striking ``Secretary'' each place it appears (other 
        than in subsection (h)) and inserting ``Director''.
    (b) Awards To Attend Foreign Language Center.--Section 802(h) of 
such Act (50 U.S.C. 1902(h)) is amended by inserting ``of Defense'' 
after ``Secretary'' each place it appears.
    (c) National Security Education Board.--(1) Section 803 of such Act 
(50 U.S.C. 1903) is amended--
            (A) in subsection (a), by striking ``Secretary of Defense'' 
        and inserting ``Director'';
            (B) in subsection (b)--
                    (i) in paragraph (1), by striking ``Secretary of 
                Defense'' and inserting ``Director'';
                    (ii) by redesignating paragraphs (2) through (7) as 
                paragraphs (3) through (8), respectively; and
                    (iii) by inserting after paragraph (1), as so 
                amended, the following new paragraph (2):
            ``(2) The Secretary of Defense.'';
            (C) in subsection (c), by striking ``subsection (b)(6)'' 
        and inserting ``subsection (b)(8)''; and
            (D) in subsection (d), by striking ``Secretary'' each place 
        it appears and inserting ``Director''.
    (2) Section 806(d) of such Act (50 U.S.C. 1906(d)) is amended by 
striking ``paragraphs (1) through (7)'' and inserting ``paragraphs (2) 
through (8)''.
    (d) Administrative Provisions.--Section 805 of such Act (50 U.S.C. 
1905) is amended by striking ``Secretary'' each place it appears and 
inserting ``Director''.
    (e) Annual Report.--Section 806 of such Act (50 U.S.C. 1906) is 
amended by striking ``Secretary'' each place it appears and inserting 
``Director''.
    (f) Audits.--Section 807 of such Act (50 U.S.C. 1907) is amended by 
striking ``Department of Defense'' and inserting ``Central Intelligence 
Agency''.
    (g) Definition.--Section 808 of such Act (50 U.S.C. 1908) is 
amended--
            (1) by redesignating paragraphs (1) through (4) as 
        paragraphs (2) through (5), respectively; and
            (2) by inserting before paragraph (2) the following new 
        paragraph (1):
            ``(1) The term `Director' means the Director of Central 
        Intelligence.''.
    (h) Matters Relating to National Flagship Language Initiative.--(1) 
Effective as if included therein as enacted by section 333(a) of the 
Intelligence Authorization Act for Fiscal Year 2003 (Public Law 107-
306; 116 Stat. 2396), section 802(i)(1) of the David L. Boren National 
Security Education Act of 1991 is amended by striking ``Secretary'' and 
inserting ``Director''.
    (2) Effective as if included therein as enacted by section 333(b) 
of the Intelligence Authorization Act for Fiscal Year 2003 (116 Stat. 
2397), section 811(a) of the David L. Boren National Security Education 
Act of 1991 is amended by striking ``Secretary'' each place it appears 
and inserting ``Director''.
    (i) Effect of Transfer of Administration on Service Agreements.--
(1) The transfer to the Director of Central Intelligence of the 
administration of the National Security Education Program as a result 
of the amendments made by this section shall not affect the force, 
validity, or terms of any service agreement entered into under section 
802(b) of the David L. Boren National Security Education Act of 1991 
(title VIII of Public Law 102-183; 50 U.S.C. 1902(b)) before the date 
of the enactment of this Act that is in force as of that date, except 
that the Director shall administer such service agreement in lieu of 
the Secretary of Defense.
    (2) Notwithstanding any other provision of law, the Director of 
Central Intelligence may, for purposes of the implementation of any 
service agreement referred to in paragraph (1), adopt regulations for 
the implementation of such service agreement that were prescribed by 
the Secretary of Defense under the David L. Boren National Security 
Education Act of 1991 before the date of the enactment of this Act.
    (j) Repeal of Satisfied Requirements.--Section 802(g) of the David 
L. Boren National Security Education Act of 1991 (title VIII of Public 
Law 102-183; 50 U.S.C. 1902(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(1)''; and
                    (B) by striking the second sentence; and
            (2) by striking paragraph (2).
    (k) Technical Amendment.--Paragraph (5)(A) of section 808 of such 
Act, as redesignated by subsection (g)(1) of this section, is further 
amended by striking ``a agency'' and inserting ``an agency''.

SEC. 1037. REPORT ON USE OF UNMANNED AERIAL VEHICLES FOR SUPPORT OF 
              HOMELAND SECURITY MISSIONS.

    (a) Requirement for Report.--Not later than April 1, 2004, the 
President shall submit to Congress a report on the potential uses of 
unmanned aerial vehicles for support of the performance of homeland 
security missions.
    (b) Content.--The report shall, at a minimum, include the following 
matters:
            (1) An assessment of the potential for using unmanned 
        aerial vehicles for monitoring activities in remote areas along 
        the northern and southern borders of the United States.
            (2) An assessment of the potential for using long-
        endurance, land-based unmanned aerial vehicles for supporting 
        the Coast Guard in the performance of its homeland security 
        missions, drug interdiction missions, and other maritime 
        missions along the approximately 95,000 miles of inland 
        waterways in the United States.
            (3) An assessment of the potential for using unmanned 
        aerial vehicles for monitoring the safety and integrity of 
        critical infrastructure within the territory of the United 
        States, including the following:
                    (A) Oil and gas pipelines.
                    (B) Dams.
                    (C) Hydroelectric power plants.
                    (D) Nuclear power plants.
                    (E) Drinking water utilities.
                    (F) Long-distance power transmission lines.
            (4) An assessment of the potential for using unmanned 
        aerial vehicles for monitoring the transportation of hazardous 
        cargo.
            (5) A discussion of the safety issues involved in--
                    (A) the use of unmanned aerial vehicles by agencies 
                other than the Department of Defense; and
                    (B) the operation of unmanned aerial vehicles over 
                populated areas of the United States.
            (6) A discussion of--
                    (A) the effects on privacy and civil liberties that 
                could result from the monitoring uses of unmanned 
                aerial vehicles operated over the territory of the 
                United States; and
                    (B) any restrictions on the domestic use of 
                unmanned aerial vehicles that should be imposed, or any 
                other actions that should be taken, to prevent any 
                adverse effect of such a use of unmanned aerial 
                vehicles on privacy or civil liberties.
            (7) A discussion of what, if any, legislation and 
        organizational changes may be necessary to accommodate the use 
        of unmanned aerial vehicles of the Department of Defense in 
        support of the performance of homeland security missions, 
        including any amendment of section 1385 of title 18, United 
        States Code (popularly referred to as the ``Posse Comitatus 
        Act'').
            (8) An evaluation of the capabilities of manufacturers of 
        unmanned aerial vehicles to produce such vehicles at higher 
        rates if necessary to meet any increased requirements for 
        homeland security and homeland defense missions.
    (c) Referral to Committees.--The report under subsection (a) shall 
be referred--
            (1) upon receipt in the Senate, to the Committee on Armed 
        Services of the Senate; and
            (2) upon receipt in the House of Representatives, to the 
        Committee on Armed Services of the House of Representatives.

SEC. 1038. CONVEYANCE OF SURPLUS T-37 AIRCRAFT TO AIR FORCE AVIATION 
              HERITAGE FOUNDATION, INCORPORATED.

    (a) Authority.--The Secretary of the Air Force may convey, without 
consideration, to the Air Force Aviation Heritage Foundation, 
Incorporated, of Georgia (in this section referred to as the 
``Foundation''), all right, title, and interest of the United States in 
and to one surplus T-37 ``Tweet'' aircraft. The conveyance shall be 
made by means of a conditional deed of gift.
    (b) Condition of Aircraft.--The Secretary may not convey ownership 
of the aircraft under subsection (a) until the Secretary determines 
that the Foundation has altered the aircraft in such manner as the 
Secretary determines necessary to ensure that the aircraft does not 
have any capability for use as a platform for launching or releasing 
munitions or any other combat capability that it was designed to have. 
The Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Conditions for Conveyance.--(1) The conveyance of a T-37 
aircraft under this section shall be subject to the following 
conditions:
            (A) That the Foundation not convey any ownership interest 
        in, or transfer possession of, the aircraft to any other party 
        without the prior approval of the Secretary of the Air Force.
            (B) That the operation and maintenance of the aircraft 
        comply with all applicable limitations and maintenance 
        requirements imposed by the Administrator of the Federal 
        Aviation Administration.
            (C) That if the Secretary of the Air Force determines at 
        any time that the Foundation has conveyed an ownership interest 
        in, or transferred possession of, the aircraft to any other 
        party without the prior approval of the Secretary, or has 
        failed to comply with the condition set forth in subparagraph 
        (B), all right, title, and interest in and to the aircraft, 
        including any repair or alteration of the aircraft, shall 
        revert to the United States, and the United States shall have 
        the right of immediate possession of the aircraft.
    (2) The Secretary shall include the conditions under paragraph (1) 
in the instrument of conveyance of the T-37 aircraft.
    (d) Conveyance at No Cost to the United States.--Any conveyance of 
a T-37 aircraft under this section shall be made at no cost to the 
United States. Any costs associated with such conveyance, costs of 
determining compliance by the Foundation with the conditions in 
subsection (b), and costs of operation and maintenance of the aircraft 
conveyed shall be borne by the Foundation.
    (e) Additional Terms and Conditions.--The Secretary of the Air 
Force may require such additional terms and conditions in connection 
with the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.
    (f) Clarification of Liability.--Notwithstanding any other 
provision of law, upon the conveyance of ownership of a T-37 aircraft 
to the Foundation under subsection (a), the United States shall not be 
liable for any death, injury, loss, or damage that results from any use 
of that aircraft by any person other than the United States.

SEC. 1039. SENSE OF SENATE ON REWARD FOR INFORMATION LEADING TO 
              RESOLUTION OF STATUS OF MEMBERS OF THE ARMED FORCES WHO 
              REMAIN MISSING IN ACTION.

    (a) Findings.--The Senate makes the following findings:
            (1) The Department of Defense estimates that there are more 
        than 10,000 members of the Armed Forces and others who as a 
        result of activities during the Korean War or the Vietnam War 
        were placed in a missing status or a prisoner of war status, or 
        who were determined to have been killed in action although the 
        body was not recovered, and who remain unaccounted for.
            (2) One member of the Armed Forces, Navy Captain Michael 
        Scott Speicher, remains missing in action from the first 
        Persian Gulf War, and there have been credible reports of him 
        being seen alive in Iraq in the years since his plane was shot 
        down on January 16, 1991.
            (3) The United States should always pursue every lead and 
        leave no stone unturned to completely account for the fate of 
        its missing members of the Armed Forces.
            (4) The Secretary of Defense has the authority to disburse 
        funds as a reward to individuals who provide information 
        leading to the conclusive resolution of cases of missing 
        members of the Armed Forces.
    (b) Sense of Senate.--It is the sense of the Senate--
            (1) that the Secretary of Defense should use the authority 
        available to the Secretary to disburse funds rewarding 
        individuals who provide information leading to the conclusive 
        resolution of the status of any missing member of the Armed 
        Forces; and
            (2) to encourage the Secretary to authorize and publicize a 
        reward of $1,000,000 for information resolving the fate of 
        those members of the Armed Forces, such as Michael Scott 
        Speicher, who the Secretary has reason to believe may yet be 
        alive in captivity.

SEC. 1040. ADVANCED SHIPBUILDING ENTERPRISE.

    (a) Findings.--Congress makes the following findings:
            (1) The President's budget for fiscal year 2004, as 
        submitted to Congress, includes $10,300,000 for the Advanced 
        Shipbuilding Enterprise of the National Shipbuilding Research 
        Program.
            (2) The Advanced Shipbuilding Enterprise is an innovative 
        program to encourage greater efficiency among shipyards in the 
        defense industrial base.
            (3) The leaders of the Nation's shipbuilding industry have 
        embraced the Advanced Shipbuilding Enterprise as a method of 
        exploring and collaborating on innovation in shipbuilding and 
        ship repair that collectively benefits all manufacturers in the 
        industry.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) the Senate strongly supports the innovative Advanced 
        Shipbuilding Enterprise of the National Shipbuilding Research 
        Program that has yielded new processes and techniques to reduce 
        the cost of building and repairing ships in the United States;
            (2) the Senate is concerned that the future-years defense 
        program submitted to Congress for fiscal year 2004 does not 
        reflect any funding for the Advanced Shipbuilding Enterprise 
        after fiscal year 2004; and
            (3) the Secretary of Defense and the Secretary of the Navy 
        should continue funding the Advanced Shipbuilding Enterprise at 
        a sustaining level through the future-years defense program to 
        support subsequent rounds of research that reduce the cost of 
        designing, building, and repairing ships.

SEC. 1041. AIR FARES FOR MEMBERS OF ARMED FORCES.

    It is the sense of the Senate that each United States air carrier 
should--
            (1) make every effort to allow active duty members of the 
        armed forces to purchase tickets, on a space-available basis, 
        for the lowest fares offered for the flights desired, without 
        regard to advance purchase requirements and other restrictions; 
        and
            (2) offer flexible terms that allow members of the armed 
        forces on active duty to purchase, modify, or cancel tickets 
        without time restrictions, fees, or penalties.

SEC. 1042. SENSE OF SENATE ON DEPLOYMENT OF AIRBORNE CHEMICAL AGENT 
              MONITORING SYSTEMS AT CHEMICAL STOCKPILE DISPOSAL SITES 
              IN THE UNITED STATES.

    (a) Findings.--The Senate makes the following findings:
            (1) Millions of assembled chemical weapons are stockpiled 
        at chemical agent disposal facilities and depot sites across 
        the United States.
            (2) Some of these weapons are filled with nerve agents, 
        such as GB and VX and blister agents such as HD (mustard 
        agent).
            (3) Hundreds of thousands of United States citizens live in 
        the vicinity of these chemical weapons stockpile sites and 
        depots.
            (4) The airborne chemical agent monitoring systems at these 
        sites are inefficient or outdated compared to newer and 
        advanced technologies on the market.
    (b) Sense of Senate.--It is the sense of the Senate that the 
Secretary of the Army should develop and deploy a program to upgrade 
the airborne chemical agent monitoring systems at all chemical 
stockpile disposal sites across the United States in order to achieve 
the broadest possible protection of the general public, personnel 
involved in the chemical demilitarization program, and the environment.

SEC. 1043. FEDERAL ASSISTANCE FOR STATE PROGRAMS UNDER THE NATIONAL 
              GUARD CHALLENGE PROGRAM.

    (a) Maximum Federal Share.--Section 509(d) of title 32, United 
States Code, is amended--
            (1) by striking paragraphs (1), (2), and (3);
            (2) by redesignating paragraph (4) as paragraph (1);
            (3) in paragraph (1), as so redesignated, by striking the 
        period at the end and inserting ``; and''; and
            (4) by adding at the end the following new paragraph (2);
            ``(2) for fiscal year 2004 (notwithstanding paragraph (1)), 
        65 percent of the costs of operating the State program during 
        that year.''.
    (b) Study.--(1) The Secretary of Defense shall carry out a study to 
evaluate (A) the adequacy of the requirement under section 509(d) of 
title 32, United States Code, for the United States to fund 60 percent 
of the costs of operating a State program of the National Guard 
Challenge Program and the State to fund 40 percent of such costs, and 
(B) the value of the Challenge program to the Department of Defense.
    (2) In carrying out the study under paragraph (1), the Secretary 
should identify potential alternatives to the matching funds structure 
provided for the National Guard Challenge Program under section 509(d) 
of title 32, United States Code, such as a range of Federal-State 
matching ratios, that would provide flexibility in the management of 
the program to better respond to temporary fiscal conditions.
    (3) The Secretary shall include the results of the study, including 
findings, conclusions, and recommendations, in the next annual report 
to Congress under section 509(k) of title 32, United States Code, that 
is submitted to Congress after the date of the enactment of this Act.
    (c) Amount for Federal Assistance.--(1) The amount authorized to be 
appropriated under section 301(10) is hereby increased by $3,000,000.
    (2) Of the total amount authorized to be appropriated under section 
301(10), $68,216,000 shall be available for the National Guard 
Challenge Program under section 509 of title 32, United States Code.
    (3) The total amount authorized to be appropriated under section 
301(4) is hereby reduced by $3,000,000.

SEC. 1044. SENSE OF SENATE ON RECONSIDERATION OF DECISION TO TERMINATE 
              BORDER SEAPORT INSPECTION DUTIES OF NATIONAL GUARD UNDER 
              NATIONAL GUARD DRUG INTERDICTION AND COUNTER-DRUG 
              MISSION.

    (a) Findings.--The Senate makes the following findings:
            (1) The counter-drug inspection mission of the National 
        Guard is highly important to preventing the infiltration of 
        illegal narcotics across United States borders.
            (2) The expertise of members of the National Guard in 
        vehicle inspections at United States borders have made 
        invaluable contributions to the identification and seizure of 
        illegal narcotics being smuggled across United States borders.
            (3) The support provided by the National Guard to the 
        Customs Service and the Border Patrol has greatly enhanced the 
        capability of the Customs Service and the Border Patrol to 
        perform counter-terrorism surveillance and other border 
        protection duties.
    (b) Sense of Senate.--It is the sense of the Senate that the 
Secretary of Defense should reconsider the decision of the Department 
of Defense to terminate the border inspection and seaport inspection 
duties of the National Guard as part of the drug interdiction and 
counter-drug mission of the National Guard.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

SEC. 1101. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEMBERS AT THE WESTERN 
              HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    Section 1595(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(6) The Western Hemisphere Institute for Security 
        Cooperation.''.

SEC. 1102. PAY AUTHORITY FOR CRITICAL POSITIONS.

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1599e. Pay authority for critical positions
    ``(a) Authority Generally.--(1) When the Secretary of Defense seeks 
a grant of authority under section 5377 of title 5 for critical pay for 
one or more positions within the Department of Defense, the Director of 
the Office of Management and Budget may fix the rate of basic pay, 
notwithstanding sections 5377(d)(2) and 5307 of such title, at any rate 
up to the salary set in accordance with section 104 of title 3.
    ``(2) Notwithstanding section 5307 of title 5, no allowance, 
differential, bonus, award, or similar cash payment may be paid to any 
employee receiving critical pay at a rate fixed under paragraph (1), in 
any calendar year if, or to the extent that, the employee's total 
annual compensation will exceed the maximum amount of total annual 
compensation payable at the salary set in accordance with section 104 
of title 3.
    ``(b) Temporary Streamlined Critical Pay Authority.--(1) The 
Secretary of Defense may establish, fix the compensation of, and 
appoint persons to positions designated as critical administrative, 
technical, or professional positions needed to carry out the functions 
of the Department of Defense, subject to paragraph (2).
    ``(2) The authority under paragraph (1) may be exercised with 
respect to a position only if--
            ``(A) the position--
                    ``(i) requires expertise of an extremely high level 
                in an administrative, technical, or professional field; 
                and
                    ``(ii) is critical to the successful accomplishment 
                of an important mission by the Department of Defense;
            ``(B) the exercise of the authority is necessary to recruit 
        or retain a person exceptionally well qualified for the 
        position;
            ``(C) the number of all positions covered by the exercise 
        of the authority does not exceed 40 at any one time;
            ``(D) in the case of a position designated as a critical 
        administrative, technical, or professional position by an 
        official other than the Secretary of Defense, the designation 
        is approved by the Secretary;
            ``(E) the term of appointment to the position is limited to 
        not more than four years;
            ``(F) the appointee to the position was not a Department of 
        Defense employee before the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 2004;
            ``(G) the total annual compensation for the appointee to 
        the position does not exceed the highest total annual 
        compensation payable at the rate determined under section 104 
        of title 3; and
            ``(H) the position is excluded from collective bargaining 
        units.
    ``(3) The authority under this subsection may be exercised without 
regard to--
            ``(A) subsection (a);
            ``(B) the provisions of title 5 governing appointments in 
        the competitive service or the Senior Executive Service; and
            ``(C) chapters 51 and 53 of title 5, relating to 
        classification and pay rates.
    ``(4) The authority under this subsection may not be exercised 
after the date that is 10 years after the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2004.
    ``(5) For so long as a person continues to serve without a break in 
service in a position to which appointed under this subsection, the 
expiration of authority under this subsection does not terminate the 
position, terminate the person's appointment in the position before the 
end of the term for which appointed under this subsection, or affect 
the compensation fixed for the person's service in the position under 
this subsection during such term of appointment.
    ``(6) Subchapter II of chapter 75 of title 5 does not apply to an 
employee during a term of service in a critical administrative, 
technical, or professional position to which the employee is appointed 
under this subsection.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1599e. Pay authority for critical positions.''.

SEC. 1103. EXTENSION, EXPANSION, AND REVISION OF AUTHORITY FOR 
              EXPERIMENTAL PERSONNEL PROGRAM FOR SCIENTIFIC AND 
              TECHNICAL PERSONNEL.

    (a) Extension of Program.--Subsection (e)(1) of section 1101 of the 
Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 
(Public Law 105-261; 112 Stat. 2139; 5 U.S.C. 3104 note) is amended by 
striking ``October 16, 2005'' and inserting ``September 30, 2008''.
    (b) Increased Limitation on Number of Appointments.--Subsection 
(b)(1)(A) of such section is amended by striking ``40'' and inserting 
``50''.
    (c) Commensurate Extension of Requirement for Annual Report.--
Subsection (g) of such section is amended by striking ``2006'' and 
inserting ``2009''.

SEC. 1104. TRANSFER OF PERSONNEL INVESTIGATIVE FUNCTIONS AND RELATED 
              PERSONNEL OF THE DEPARTMENT OF DEFENSE.

    (a) Transfer of Functions.--(1) With the consent of the Director of 
the Office of Personnel Management, the Secretary of Defense may 
transfer to the Office of Personnel Management the personnel security 
investigations functions that, as of the date of the enactment of this 
Act, are performed by the Defense Security Service of the Department of 
Defense.
    (2) The Director of the Office of Personnel Management may accept a 
transfer of functions under paragraph (1).
    (3) Any transfer of a function under this subsection is a transfer 
of function within the meaning of section 3503 of title 5, United 
States Code.
    (b) Transfer of Personnel.--(1) If the Director of the Office of 
Personnel Management accepts a transfer of functions under subsection 
(a), the Secretary of Defense shall also transfer to the Office of 
Personnel Management, and the Director shall accept--
            (A) the Defense Security Service employees who perform 
        those functions immediately before the transfer of functions; 
        and
            (B) the Defense Security Service employees who, as of such 
        time, are first level supervisors of employees transferred 
        under subparagraph (A).
    (2) The Secretary may also transfer to the Office of Personnel 
Management any Defense Security Service employees (including higher 
level supervisors) who provide support services for the performance of 
the functions transferred under subsection (a) or for the personnel 
(including supervisors) transferred under paragraph (1) if the 
Director--
            (A) determines that the transfer of such additional 
        employees and the positions of such employees to the Office of 
        Personnel Management is necessary in the interest of effective 
        performance of the transferred functions; and
            (B) accepts the transfer of the additional employees.
    (3) In the case of an employee transferred to the Office of 
Personnel Management under paragraph (1) or (2), whether a full-time or 
part-time employee--
            (A) subsections (b) and (c) of section 5362 of title 5, 
        United States Code, relating to grade retention, shall apply to 
        the employee, except that--
                    (i) the grade retention period shall be the one-
                year period beginning on the date of the transfer; and
                    (ii) paragraphs (1), (2), and (3) of such 
                subsection (c) shall not apply to the employee; and
            (B) the employee may not be separated, other than pursuant 
        to chapter 75 of title 5, United States Code, during such one-
        year period.
    (c) Actions After Transfer.--(1) Not later than one year after a 
transfer of functions to the Office of Personnel Management under 
subsection (a), the Secretary of Defense shall review all functions 
performed by personnel of the Defense Security Service at the time of 
the transfer and make a written determination regarding whether each 
such function is inherently governmental or is otherwise inappropriate 
for performance by contractor personnel.
    (2) A function performed by Defense Security Service employees as 
of the date of the enactment of this Act may not be converted to 
contractor performance by the Director of the Office of Personnel 
Management until--
            (A) the Secretary of Defense reviews the function in 
        accordance with the requirements of paragraph (1) and makes a 
        written determination that the function is not inherently 
        governmental and is not otherwise inappropriate for contractor 
        performance; and
            (B) the Director conducts a public-private competition 
        regarding the performance of that function in accordance with 
        the requirements of the Office of Management and Budget 
        Circular A-76.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

SEC. 1201. AUTHORITY TO USE FUNDS FOR PAYMENT OF COSTS OF ATTENDANCE OF 
              FOREIGN VISITORS UNDER REGIONAL DEFENSE COUNTERTERRORISM 
              FELLOWSHIP PROGRAM.

    (a) Authority To Use Funds.--(1) Subchapter I of chapter 134 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 2249c. Authority to use appropriated funds for costs of 
              attendance of foreign visitors under Regional Defense 
              Counterterrorism Fellowship Program
    ``(a) Authority To Use Funds.--Under regulations prescribed by the 
Secretary of Defense, funds appropriated to the Department of Defense 
may be used to pay any costs associated with the attendance of foreign 
military officers, ministry of defense officials, or security officials 
at United States military educational institutions, regional centers, 
conferences, seminars, or other training programs conducted under the 
Regional Defense Counterterrorism Fellowship Program, including costs 
of transportation and travel and subsistence costs.
    ``(b) Limitation.--The total amount of funds used under the 
authority in subsection (a) in any fiscal year may not exceed 
$20,000,000.
    ``(c) Annual Report.--Not later than December 1 of each year, the 
Secretary of Defense shall submit to Congress a report on the 
administration of this section during the fiscal year ended in such 
year. The report shall include the following matters:
            ``(1) A complete accounting of the expenditure of 
        appropriated funds for purposes authorized under subsection 
        (a), including--
                    ``(A) the countries of the foreign officers and 
                officials for whom costs were paid; and
                    ``(B) for each such country, the total amount of 
                the costs paid.
            ``(2) The training courses attended by the foreign officers 
        and officials, including a specification of which, if any, 
        courses were conducted in foreign countries.
            ``(3) An assessment of the effectiveness of the Regional 
        Defense Counterterrorism Fellowship Program in increasing the 
        cooperation of the governments of foreign countries with the 
        United States in the global war on terrorism.
            ``(4) A discussion of any actions being taken to improve 
        the program.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``2249c. Authority to use appropriated funds for costs of attendance of 
                            foreign visitors under Regional Defense 
                            Counterterrorism Fellowship Program.''.
    (b) Notification of Congress.--Not later than December 1, 2003, the 
Secretary of Defense shall--
            (1) promulgate the final regulations for carrying out 
        section 2249c of title 10, United States Code, as added by 
        subsection (a); and
            (2) notify the congressional defense committees of the 
        promulgation of such regulations.

SEC. 1202. AVAILABILITY OF FUNDS TO RECOGNIZE SUPERIOR NONCOMBAT 
              ACHIEVEMENTS OR PERFORMANCE OF MEMBERS OF FRIENDLY 
              FOREIGN FORCES AND OTHER FOREIGN NATIONALS.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by inserting the following new section:
``Sec. 1051a. Bilateral or regional cooperation programs: availability 
              of funds to recognize superior noncombat achievements or 
              performance
    ``(a) In General.--The Secretary of Defense may expend amounts 
available to the Department of Defense or the military departments for 
operation and maintenance for the purpose of recognizing superior 
noncombat achievements or performance of members of friendly foreign 
forces, or other foreign nationals, that significantly enhance or 
support the national security strategy of the United States.
    ``(b) Covered Achievements or Performance.--The achievements or 
performance that may be recognized under subsection (a) include 
achievements or performance that--
            ``(1) play a crucial role in shaping the international 
        security environment in a manner that protects and promotes the 
        interests of the United States;
            ``(2) support or enhance the United States presence 
        overseas or support or enhance United States peacetime 
        engagement activities such as defense cooperation initiatives, 
        security assistance training and programs, or training and 
        exercises with the armed forces of the United States;
            ``(3) help deter aggression and coercion, build coalitions, 
        or promote regional stability; or
            ``(4) serve as models for appropriate conduct for military 
        forces in emerging democracies.
    ``(c) Limitation on Value of Mementos.--The value of any memento 
procured or produced under subsection (a) may not exceed the minimal 
value in effect under section 7342(a)(5) of title 5.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1051 the following new item:

``1051a. Bilateral or regional cooperation programs: availability of 
                            funds to recognize superior noncombat 
                            achievements or performance.''.

SEC. 1203. CHECK CASHING AND EXCHANGE TRANSACTIONS FOR FOREIGN 
              PERSONNEL IN ALLIANCE OR COALITION FORCES.

    Section 3342(b) of title 31, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(8) a member of the armed forces of a foreign nation who 
        is participating in a combined operation, combined exercise, or 
        combined humanitarian or peacekeeping mission that is carried 
        out with armed forces of the United States pursuant to an 
        alliance or coalition of the foreign nation with the United 
        States if--
                    ``(A) the senior commander of the armed forces of 
                the United States participating in the operation, 
                exercise, or mission has authorized the action under 
                paragraph (1) or (2) of subsection (a);
                    ``(B) the government of the foreign nation has 
                guaranteed payment for any deficiency resulting from 
                such action; and
                    ``(C) in the case of an action on a negotiable 
                instrument, the negotiable instrument is drawn on a 
                financial institution located in the United States or 
                on a foreign branch of such an institution.''.

SEC. 1204. CLARIFICATION AND EXTENSION OF AUTHORITY TO PROVIDE 
              ASSISTANCE FOR INTERNATIONAL NONPROLIFERATION ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2004.--The 
total amount of the assistance for fiscal year 2004 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a), including funds used 
for activities of the Department of Defense in support of the United 
Nations Monitoring, Verification and Inspection Commission, shall not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking ``fiscal year 2003'' and 
inserting ``fiscal year 2004''.
    (c) References to United Nations Special Commission on Iraq.--
Section 1505 of the Weapons of Mass Destruction Control Act of 1992 (22 
U.S.C. 5859a) is further amended--
            (1) in subsection (b)(2), by striking ``United Nations 
        Special Commission on Iraq (or any successor organization)'' 
        and inserting ``United Nations Monitoring, Verification and 
        Inspection Commission''; and
            (2) in subsection (d)(4)(A), by striking ``United Nations 
        Special Commission on Iraq (or any successor organization)'' 
        and inserting ``United Nations Monitoring, Verification and 
        Inspection Commission''.

SEC. 1205. REIMBURSABLE COSTS RELATING TO NATIONAL SECURITY CONTROLS ON 
              SATELLITE EXPORT LICENSING.

    (a) Direct Costs of Monitoring Foreign Launches of Satellites.--
Section 1514(a)(1)(A) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 22 U.S.C. 
2778 note) is amended by striking ``The costs of such monitoring 
services'' in the second sentence and inserting the following: ``The 
Department of Defense costs that are directly related to monitoring the 
launch, including transportation and per diem costs,''.
    (b) GAO Study.--(1) The Comptroller General shall conduct a study 
of the Department of Defense costs of monitoring launches of satellites 
in a foreign country under section 1514 of Public Law 105-261.
    (2) Not later than April 1, 2004, the Comptroller General shall 
submit a report on the study to the Committees on Armed Services of the 
Senate and the House of Representatives. The report shall include the 
following:
            (A) An assessment of the Department of Defense costs of 
        monitoring the satellite launches described in paragraph (1).
            (B) A review of the costs reimbursed to the Department of 
        Defense by each person or entity receiving the satellite launch 
        monitoring services, including the extent to which indirect 
        costs have been included.

SEC. 1206. ANNUAL REPORT ON THE NATO PRAGUE CAPABILITIES COMMITMENT AND 
              THE NATO RESPONSE FORCE.

    (a) Findings.--Congress makes the following findings:
            (1) At the meeting of the North Atlantic Council held in 
        Prague in November 2002, the heads of states and governments of 
        the North Atlantic Treaty Organization (NATO) launched a Prague 
        Capabilities Commitment and decided to create a NATO Response 
        Force.
            (2) The Prague Capabilities Commitment is part of the 
        continuing NATO effort to improve and develop new military 
        capabilities for modern warfare in a high-threat environment. 
        As part of this commitment, individual NATO allies have made 
        firm and specific political commitments to improve their 
        capabilities in the areas of--
                    (A) chemical, biological, radiological, and nuclear 
                defense;
                    (B) intelligence, surveillance, and target 
                acquisition;
                    (C) air-to-ground surveillance;
                    (D) command, control, and communications;
                    (E) combat effectiveness, including precision 
                guided munitions and suppression of enemy air defenses;
                    (F) strategic air and sea lift;
                    (G) air-to-air refueling; and
                    (H) deployable combat support and combat service 
                support units.
            (3) The NATO Response Force is envisioned to be a 
        technologically advanced, flexible, deployable, interoperable, 
        and sustainable force that includes land, sea, and air elements 
        ready to move quickly to wherever needed, as determined by the 
        North Atlantic Council. The NATO Response Force is also 
        intended to be a catalyst for focusing and promoting 
        improvements in NATO's military capabilities. It is expected to 
        have initial operational capability by October 2004, and full 
        operational capability by October 2006.
    (b) Annual Report.--(1) Not later than January 31 of each year, the 
Secretary of Defense shall submit to the Committees on Armed Services 
and Foreign Relations of the Senate and the Committees on Armed 
Services and International Relations of the House of Representatives a 
report, to be prepared in consultation with the Secretary of State, on 
implementation of the Prague Capabilities Commitment and development of 
the NATO Response Force by the member nations of NATO. The report shall 
include the following matters:
            (A) A description of the actions taken by NATO as a whole 
        and by each member nation of NATO other than the United States 
        to further the Prague Capabilities Commitment, including any 
        actions taken to improve capability shortfalls in the areas 
        identified for improvement.
            (B) A description of the actions taken by NATO as a whole 
        and by each member nation of NATO, including the United States, 
        to create the NATO Response Force.
            (C) A discussion of the relationship between NATO's efforts 
        to improve capabilities through the Prague Capabilities 
        Commitment and those of the European Union to enhance European 
        capabilities through the European Capabilities Action Plan, 
        including the extent to which they are mutually reinforcing.
            (D) A discussion of NATO decisionmaking on the 
        implementation of the Prague Capabilities Commitment and the 
        development of the NATO Response Force, including--
                    (i) an assessment of whether the Prague 
                Capabilities Commitment and the NATO Response Force are 
                the sole jurisdiction of the Defense Planning 
                Committee, the North Atlantic Council, or the Military 
                Committee;
                    (ii) a description of the circumstances which led 
                to the defense, military, security, and nuclear 
                decisions of NATO on matters such as the Prague 
                Capabilities Commitment and the NATO Response Force 
                being made in bodies other than the Defense Planning 
                Committee;
                    (iii) a description of the extent to which any 
                member that does not participate in the integrated 
                military structure of NATO contributes to each of the 
                component committees of NATO, including any and all 
                committees relevant to the Prague Capabilities 
                Commitment and the NATO Response Force;
                    (iv) a description of the extent to which any 
                member that does not participate in the integrated 
                military structure of NATO participates in 
                deliberations and decisions of NATO on resource policy, 
                contribution ceilings, infrastructure, force structure, 
                modernization, threat assessments, training, exercises, 
                deployments, and other issues related to the Prague 
                Capabilities Commitment or the NATO Response Force;
                    (v) a description and assessment of the 
                impediments, if any, that would preclude or limit NATO 
                from conducting deliberations and making decisions on 
                matters such as the Prague Capabilities Commitment or 
                the NATO Response Force solely in the Defense Planning 
                Committee;
                    (vi) the recommendations of the Secretary of 
                Defense on streamlining defense, military, and security 
                decisionmaking within NATO relating to the Prague 
                Capabilities Commitment, and NATO Response Force, and 
                other matters, including an assessment of the 
                feasibility and advisability of the greater utilization 
                of the Defense Planning Committee for such purposes; 
                and
                    (vii) if a report under this subparagraph is a 
                report other than the first report under this 
                subparagraph, the information submitted in such report 
                under any of clauses (i) through (vi) may consist 
                solely of an update of any information previously 
                submitted under the applicable clause in a preceding 
                report under this subparagraph.
    (2) The report shall be submitted in unclassified form, but may 
also be submitted in classified form if necessary.

SEC. 1207. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE ADDITIONAL 
              SUPPORT FOR COUNTER-DRUG ACTIVITIES.

    (a) General Extension of Authority.--Section 1033 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1881), as amended by section 1021 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-255), is further amended--
            (1) in subsection (a)--
                    (A) by inserting after ``subsection (f),'' the 
                following: ``during fiscal years 1998 through 2006 in 
                the case of the foreign governments named in paragraphs 
                (1) and (2) of subsection (b), and fiscal years 2004 
                through 2006 in the case of the foreign governments 
                named in paragraphs (3) through (9) of subsection 
                (b),''; and
                    (B) by striking ``either or both'' and inserting 
                ``any''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``, for fiscal 
                years 1998 through 2002''; and
                    (B) in paragraph (2), by striking ``, for fiscal 
                years 1998 through 2006''.
    (b) Additional Governments Eligible To Receive Support.--Subsection 
(b) of such section 1033 is further amended by adding at the end the 
following new paragraphs:
            ``(3) The Government of Afghanistan.
            ``(4) The Government of Bolivia.
            ``(5) The Government of Ecuador.
            ``(6) The Government of Pakistan.
            ``(7) The Government of Tajikistan.
            ``(8) The Government of Turkmenistan.
            ``(9) The Government of Uzbekistan.''.
    (c) Types of Support.--Subsection (c) of such section 1033 is 
amended--
            (1) in paragraph (2), by striking ``riverine''; and
            (2) in paragraph (3), by inserting ``or upgrade'' after 
        ``maintenance and repair''.
    (d) Maximum Annual Amount of Support.--Subsection (e)(2) of such 
section 1033, as amended by such section 1021, is further amended by 
striking ``$20,000,000 during any of the fiscal years 1999 through 
2006'' and inserting ``$20,000,000 during any of fiscal years 1999 
through 2003, or $40,000,000 during any of fiscal years 2004 through 
2006''.
    (e) Counter-Drug Plan.--(1) Subsection (h) of such section 1033 is 
amended--
            (A) in the subsection caption, by striking ``Riverine'';
            (B) in the matter preceding paragraph (1)--
                    (i) by inserting ``in the case of the governments 
                named in paragraphs (1) and (2) of subsection (b) and 
                for fiscal year 2004 in the case of the governments 
                named in paragraphs (3) through (9) of subsection 
                (b)''; and
                    (ii) by striking ``riverine''; and
            (C) by striking ``riverine'' each place it appears in 
        paragraphs (2), (7), (8), and (9).
    (2) Subsection (f)(2)(A) of such section 1033 is amended by 
striking ``riverine''.
    (f) Clerical Amendment.--The heading for such section 1033 is 
amended by striking ``peru and colombia'' and inserting ``other 
countries''.

SEC. 1208. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM 
              CAMPAIGN IN COLOMBIA.

    (a) Authority.--(1) In fiscal years 2004 and 2005, the Secretary of 
Defense may use funds available for assistance to the Government of 
Colombia to support a unified campaign against narcotics trafficking 
and against activities by organizations designated as 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).
    (2) The authority to provide assistance for a campaign under this 
subsection includes authority to take actions to protect human health 
and welfare in emergency circumstances, including the undertaking of 
rescue operations.
    (b) Applicability of Certain Laws and Limitations.--The use of 
funds pursuant to the authority in subsection (a) shall be subject to 
the following:
            (1) Sections 556, 567, and 568 of the Foreign Operations, 
        Export Financing, and Related Programs Appropriations Act, 2002 
        (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
            (2) Section 8093 of the Department of Defense 
        Appropriations Act, 2002 (division A of Public Law 107-117; 115 
        Stat. 2267).
            (3) The numerical limitations on the number of United 
        States military personnel and United States individual civilian 
        contractors in section 3204(b)(1) of the Emergency Supplemental 
        Act, 2000 (division B of Public Law 106-246; 114 Stat. 575).
    (c) Limitation on Participation of United States Personnel.--No 
United States Armed Forces personnel or United States civilian 
contractor personnel employed by the United States may participate in 
any combat operation in connection with assistance using funds pursuant 
to the authority in subsection (a), except for the purpose of acting in 
self defense or of rescuing any United States citizen (including any 
United States Armed Forces personnel, United States civilian employee, 
or civilian contractor employed by the United States).
    (d) Construction With Other Authority.--The authority in subsection 
(a) to use funds to provide assistance to the Government of Colombia is 
in addition to any other authority in law to provide assistance to the 
Government of Colombia.

SEC. 1209. COMPETITIVE AWARD OF CONTRACTS FOR IRAQI RECONSTRUCTION.

    (a) Requirement.--The Department of Defense shall fully comply with 
the Competition in Contracting Act (10 U.S.C. 2304 et seq.) for any 
contract awarded for reconstruction activities in Iraq and shall 
conduct a full and open competition for performing work needed for the 
reconstruction of the Iraqi oil industry.
    (b) Report to Congress.--If the Department of Defense does not have 
a fully competitive contract in place to replace the March 8, 2003 
contract for the reconstruction of the Iraqi oil industry by August 31, 
2003, the Secretary of Defense shall submit a report to Congress by 
September 30, 2003, detailing the reasons for allowing this sole-source 
contract to continue. A follow-up report shall be submitted to Congress 
each 60 days thereafter until a competitive contract is in place.

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

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

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2004 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2004 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $450,800,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2004 in 
section 301(22) for Cooperative Threat Reduction programs, not more 
than the following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $57,600,000.
            (2) For strategic nuclear arms elimination in Ukraine, 
        $3,900,000.
            (3) For nuclear weapons transportation security in Russia, 
        $23,200,000.
            (4) For weapons storage security in Russia, $48,000,000.
            (5) For weapons of mass destruction proliferation 
        prevention activities in the states of the former Soviet Union, 
        $39,400,000.
            (6) For chemical weapons destruction in Russia, 
        $200,300,000.
            (7) For biological weapons proliferation prevention 
        activities in the former Soviet Union, $54,200,000.
            (8) For defense and military contacts, $11,000,000.
            (9) For activities designated as Other Assessments/
        Administrative Support, $13,100,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2004 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (9) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2004 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (c) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraphs (2) and (3), in any case in which the Secretary of Defense 
determines that it is necessary to do so in the national interest, the 
Secretary may obligate amounts appropriated for fiscal year 2004 for a 
purpose listed in any of the paragraphs in subsection (a) in excess of 
the amount specifically authorized for such 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 (6) through (9) of subsection (a) in excess of 125 percent 
of the specific amount authorized for such purpose.

SEC. 1303. ANNUAL CERTIFICATIONS ON USE OF FACILITIES BEING CONSTRUCTED 
              FOR COOPERATIVE THREAT REDUCTION PROJECTS OR ACTIVITIES.

    (a) Certification on Use of Facilities Being Constructed.--Not 
later than the first Monday of February each year, the Secretary of 
Defense shall submit to the congressional defense committees a 
certification for each facility for a Cooperative Threat Reduction 
project or activity for which construction occurred during the 
preceding fiscal year on matters as follows:
            (1) Whether or not such facility will be used for its 
        intended purpose by the country in which the facility is 
        constructed.
            (2) Whether or not the country remains committed to the use 
        of such facility for its intended purpose.
    (b) Applicability.--Subsection (a) shall apply to--
            (1) any facility the construction of which commences on or 
        after the date of the enactment of this Act; and
            (2) any facility the construction of which is ongoing as of 
        that date.

SEC. 1304. AUTHORITY TO USE COOPERATIVE THREAT REDUCTION FUNDS OUTSIDE 
              THE FORMER SOVIET UNION.

    (a) Authority.--The President may obligate and expend Cooperative 
Threat Reduction funds for a fiscal year, and any Cooperative Threat 
Reduction funds for a fiscal year before such fiscal year that remain 
available for obligation, for a proliferation threat reduction project 
or activity outside the states of the former Soviet Union if the 
President determines that such project or activity will--
            (1) assist the United States in the resolution of a 
        critical emerging proliferation threat; or
            (2) permit the United States to take advantage of 
        opportunities to achieve long-standing nonproliferation goals.
    (b) Scope of Authority.--The authority in subsection (a) to 
obligate and expend funds for a project or activity includes authority 
to provide equipment, goods, and services for the project or activity 
utilizing such funds, but does not include authority to provide cash 
directly to the project or activity.
    (c) Limitation.--The amount that may be obligated in a fiscal year 
under the authority in subsection (a) may not exceed $50,000,000.
    (d) Additional Limitations and Requirements.--Except as otherwise 
provided in subsections (a) and (b), the exercise of the authority in 
subsection (a) shall be subject to any requirement or limitation under 
another provision of law as follows:
            (1) Any requirement for prior notice or other reports to 
        Congress on the use of Cooperative Threat Reduction funds or on 
        Cooperative Threat Reduction projects or activities.
            (2) Any limitation on the obligation or expenditure of 
        Cooperative Threat Reduction funds.
            (3) Any limitation on Cooperative Threat Reduction projects 
        or activities.

SEC. 1305. ONE-YEAR EXTENSION OF INAPPLICABILITY OF CERTAIN CONDITIONS 
              ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION.

    Section 8144 of Public Law 107-248 (116 Stat. 1571) is amended--
            (1) in subsection (a), by striking ``and 2003'' and 
        inserting ``2003, and 2004''; and
            (2) in subsection (b), by striking ``September 30, 2003'' 
        and inserting ``September 30, 2004''.

            Passed the Senate May 22, 2003.

            Attest:

                                                             Secretary.
108th CONGRESS

  1st Session

                                S. 1047

_______________________________________________________________________

                                 AN ACT

     To authorize appropriations for fiscal year 2004 for military 
    activities of the Department of Defense, to prescribe personnel 
  strengths for such fiscal year for the Armed Forces, and for other 
                               purposes.