[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2401 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 504
108th CONGRESS
  2d Session
                                S. 2401



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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2004

    Mr. Warner, from the Committee on Armed Services, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
     To authorize appropriations for fiscal year 2005 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 2005''.

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.
                       Subtitle B--Army Programs

Sec. 111. Light utility helicopter program.
Sec. 112. Authorization of appropriations for up-armored high mobility 
                            multi-purpose wheeled vehicles or wheeled 
                            vehicle ballistic add-on armor protection.
                       Subtitle C--Navy Programs

Sec. 121. LHA(R) amphibious assault ship program.
Sec. 122. Multiyear procurement authority for the light weight 155-
                            millimeter howitzer program.
Sec. 123. Pilot program for flexible funding of submarine engineered 
                            refueling overhaul and conversion.
                     Subtitle D--Air Force Programs

Sec. 131. Prohibition of retirement of KC-135E aircraft.
Sec. 132. Prohibition of retirement of F-117 aircraft.
                       Subtitle E--Other Matters

Sec. 141. Report on options for acquisition of precision-guided 
                            munitions.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for science and technology.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. DD(X)-class destroyer program.
Sec. 212. Global Positioning System III satellite.
Sec. 213. Initiation of concept demonstration of Global Hawk high 
                            altitude endurance unmanned aerial vehicle.
Sec. 214. Joint Unmanned Combat Air Systems program.
Sec. 215. Joint Strike Fighter aircraft program.
Sec. 216. Joint experimentation.
                 Subtitle C--Ballistic Missile Defense

Sec. 221. Fielding of ballistic missile defense capabilities.
Sec. 222. Patriot Advance Capability-3 and Medium Extended Air Defense 
                            System.
Sec. 223. Comptroller General assessments of ballistic missile defense 
                            programs.
                       Subtitle D--Other Matters

Sec. 231. Annual report on submarine technology insertion.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.
    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Commander's Emergency Response Program.
Sec. 312. Limitation on transfers out of working capital funds.
                  Subtitle C--Environmental Provisions

Sec. 321. Payment of certain private cleanup costs in connection with 
                            Defense Environmental Restoration Program.
Sec. 322. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
Sec. 323. Satisfaction of certain audit requirements by the Inspector 
                            General of the Department of Defense.
Sec. 324. Comptroller General study and report on drinking water 
                            contamination and related health effects at 
                            Camp Lejeune, North Carolina.
Sec. 325. Increase in authorized amount of environmental remediation, 
                            Front Royal, Virginia.
             Subtitle D--Depot-Level Maintenance and Repair

Sec. 331. Simplification of annual reporting requirements concerning 
                            funds expended for depot maintenance and 
                            repair workloads.
Sec. 332. Repeal of requirement for annual report on management of 
                            depot employees.
Sec. 333. Extension of special treatment for certain expenditures 
                            incurred in the operation of Centers of 
                            Industrial and Technical Excellence.
             Subtitle E--Extensions of Program Authorities

Sec. 341. Two-year extension of Department of Defense 
                            telecommunications benefit.
Sec. 342. Two-year extension of Arsenal Support Program Initiative.
Sec. 343. Reauthorization of warranty claims recovery pilot program.
                Subtitle F--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 G--Other Matters

Sec. 361. Charges for Defense Logistics Information Services materials.
Sec. 362. Temporary authority for contractor performance of security-
                            guard functions.
Sec. 363. Pilot program for purchase of certain municipal services for 
                            Department of Defense installations.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Additional authority for increases of Army active duty 
                            personnel end strengths for fiscal years 
                            2005 through 2009.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2005 limitations on non-dual status technicians.
Sec. 415. Authorized strengths for Marine Corps Reserve officers in 
                            active status in grades below general 
                            officer.
              Subtitle C--Authorizations of Appropriations

Sec. 421. Authorization of appropriations for military personnel.
Sec. 422. Armed Forces Retirement Home.
                   TITLE V--MILITARY PERSONNEL POLICY

             Subtitle A--Joint Officer Personnel Management

Sec. 501. Modification of conditions of eligibility for waiver of joint 
                            duty credit requirement for promotion to 
                            general or flag officer.
Sec. 502. Management of joint specialty officers.
Sec. 503. Revised promotion policy objectives for joint officers.
Sec. 504. Length of joint duty assignments.
Sec. 505. Repeal of minimum period requirement for Phase II Joint 
                            Professional Military Education.
Sec. 506. Revised definitions applicable to joint duty.
               Subtitle B--Other Officer Personnel Policy

Sec. 511. Transition of active-duty list officer force to a force of 
                            all regular officers.
Sec. 512. Eligibility of Navy staff corps officers to serve as Deputy 
                            Chiefs of Naval Operations and Assistant 
                            Chiefs of Naval Operations.
Sec. 513. One-year extension of authority to waive joint duty 
                            experience as eligibility requirement for 
                            appointment of chiefs of reserve 
                            components.
Sec. 514. Limitation on number of officers frocked to major general and 
                            rear admiral (upper half).
             Subtitle C--Reserve Component Personnel Policy

Sec. 521. Repeal of exclusion of active duty for training from 
                            authority to order Reserves to active duty.
Sec. 522. Exception to mandatory retention of Reserves on active duty 
                            to qualify for retirement pay.
                   Subtitle D--Education and Training

Sec. 531. One-year extension of Army College First pilot program.
Sec. 532. Military recruiter equal access to campus.
Sec. 533. Exclusion from denial of funds for preventing ROTC access to 
                            campus of amounts to cover individual costs 
                            of attendance at institutions of higher 
                            education.
Sec. 534. Transfer of authority to confer degrees upon graduates of the 
                            Community College of the Air Force.
           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Award of medal of honor to individual interred in the Tomb of 
                            the Unknowns as representative of 
                            casualties of a war.
Sec. 542. Separate campaign medals for Operation Enduring Freedom and 
                            for Operation Iraqi Freedom.
                      Subtitle F--Military Justice

Sec. 551. Reduced blood alcohol content limit for offense of drunken 
                            operation of a vehicle, aircraft, or 
                            vessel.
Sec. 552. Waiver of recoupment of time lost for confinement in 
                            connection with a trial.
Sec. 553. Department of Defense policy and procedures on prevention and 
                            response to sexual assaults involving 
                            members of the Armed Forces.
Subtitle G--Scope of Duties of Ready Reserve Personnel in Inactive Duty 
                                 Status

Sec. 561. Redesignation of inactive-duty training to encompass 
                            operational and other duties performed by 
                            Reserves while in inactive duty status.
Sec. 562. Repeal of unnecessary duty status distinction for funeral 
                            honors duty.
Sec. 563. Conforming amendments to other laws referring to inactive-
                            duty training.
Sec. 564. Conforming amendments to other laws referring to funeral 
                            honors duty.
                       Subtitle H--Other Matters

Sec. 571. Accession of persons with specialized skills.
Sec. 572. Federal write-in ballots for absentee military voters located 
                            in the United States.
Sec. 573. Renaming of National Guard Challenge Program and increase in 
                            maximum Federal share of cost of State 
                            programs under the program.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Geographic basis for housing allowance during short-
                            assignment permanent changes of station for 
                            education or training.
Sec. 602. Immediate lump-sum reimbursement for unusual nonrecurring 
                            expenses incurred for duty outside the 
                            continental United States.
Sec. 603. Permanent increase in authorized amount 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. Reduced service obligation for nurses receiving nurse 
                            accession bonus.
Sec. 616. Assignment incentive pay.
Sec. 617. Permanent increase in authorized amount of hostile fire and 
                            imminent danger special pay.
Sec. 618. Eligibility of enlisted members to qualify for critical 
                            skills retention bonus while serving on 
                            indefinite reenlistment.
Sec. 619. Clarification of educational pursuits qualifying for Selected 
                            Reserve Education Loan Repayment Program 
                            for health professions officers.
Sec. 620. Bonus for certain initial service of commissioned officers in 
                            the Selected Reserve.
            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for family members to 
                            attend burial ceremonies of members who die 
                            on duty.
Sec. 632. Lodging costs incurred in connection with dependent student 
                            travel.
             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Special rule for computing the high-36 month average for 
                            disabled members of reserve components.
                       Subtitle E--Other Matters

Sec. 651. Increased maximum period for leave of absence for pursuit of 
                            a program of education in a health care 
                            profession.
Sec. 652. Eligibility of members for reimbursement of expenses incurred 
                            for adoption placements made by foreign 
                            governments.
                         TITLE VII--HEALTH CARE

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. Demonstration project on health benefits for Reserves.
Sec. 702. Permanent earlier eligibility date for TRICARE benefits for 
                            members of reserve components.
Sec. 703. Waiver of certain deductibles for members on active duty for 
                            a period of more than 30 days.
Sec. 704. Protection of dependents from balance billing.
Sec. 705. Permanent extension of transitional health care benefits and 
                            addition of requirement for preseparation 
                            physical examination.
Sec. 706. Permanent elective coverage for Ready Reserve members under 
                            TRICARE program.
                       Subtitle B--Other Matters

Sec. 711. Repeal of requirement for payment of subsistence charges 
                            while hospitalized.
Sec. 712. Opportunity for young child dependent of deceased member to 
                            become eligible for enrollment in a TRICARE 
                            dental plan.
Sec. 713. Pediatric dental practice necessary for professional 
                            accreditation.
Sec. 714. Services of marriage and family therapists.
Sec. 715. Chiropractic health care benefits advisory committee.
Sec. 716. Grounds for Presidential waiver of requirement for informed 
                            consent or option to refuse regarding 
                            administration of drugs not approved for 
                            general use.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Responsibilities of acquisition executives and chief 
                            information officers under the Clinger-
                            Cohen Act.
Sec. 802. Software-related program costs under major defense 
                            acquisition programs.
Sec. 803. Internal controls for Department of Defense purchases through 
                            GSA Client Support Centers.
Sec. 804. Defense commercial satellite services procurement process.
     Subtitle B--General Contracting Authorities, Procedures, and 
                     Limitations, and Other Matters

Sec. 811. Increased thresholds for applicability of certain 
                            requirements.
Sec. 812. Period for multiyear task and delivery order contracts.
Sec. 813. Submission of cost or pricing data on noncommercial 
                            modifications of commercial items.
Sec. 814. Delegations of authority to make determinations relating to 
                            payment of defense contractors for business 
                            restructuring costs.
Sec. 815. Limitation regarding service charges imposed for defense 
                            procurements made through contracts of 
                            other agencies.
        Subtitle C--Extensions of Temporary Program Authorities

Sec. 831. Extension of contract goal for small disadvantaged business 
                            and certain institutions of higher 
                            education.
Sec. 832. Extension of Mentor-Protege program.
Sec. 833. Extension of test program for negotiation of comprehensive 
                            small business subcontracting plans.
Sec. 834. Extension of pilot program on sales of manufactured articles 
                            and services of certain Army industrial 
                            facilities.
                  Subtitle D--Industrial Base Matters

Sec. 841. Commission on the Future of the National Technology and 
                            Industrial Base.
Sec. 842. Conforming standard for waiver of domestic source or content 
                            requirements.
Sec. 843. Consistency with United States obligations under trade 
                            agreements.
         Subtitle E--Defense Acquisition and Support Workforce

Sec. 851. Limitation and reinvestment authority relating to reduction 
                            of the defense acquisition and support 
                            workforce.
Sec. 852. Defense acquisition workforce improvements.
                       Subtitle F--Other Matters

Sec. 861. Inapplicability of certain fiscal laws to settlements under 
                            special temporary contract closeout 
                            authority.
Sec. 862. Demonstration program on expanded use of Reserves to perform 
                            developmental testing, new equipment 
                            training, and related activities.
Sec. 863. Applicability of competition exceptions to eligibility of 
                            National Guard for financial assistance for 
                            performance of additional duties.
Sec. 864. Management plan for contractor security personnel.
Sec. 865. Report on contractor performance of security, intelligence, 
                            law enforcement, and criminal justice 
                            functions in Iraq.
Sec. 866. Accreditation study of commercial off-the-shelf processes for 
                            evaluating information technology products 
                            and services.
Sec. 867. Inapplicability of Randolph-Sheppard Act to military dining 
                            facilities.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Subtitle A--Reserve Components

Sec. 901. Modification of stated purpose of the reserve components.
Sec. 902. Commission on the National Guard and Reserves.
Sec. 903. Chain of succession for the Chief of the National Guard 
                            Bureau.
Sec. 904. Redesignation of Vice Chief of the National Guard Bureau as 
                            Director of the Joint Staff of the National 
                            Guard Bureau.
Sec. 905. Authority to redesignate the Naval Reserve.
                       Subtitle B--Other Matters

Sec. 911. Study of roles and authorities of the Director of Defense 
                            Research and Engineering.
Sec. 912. Directors of Small Business Programs.
Sec. 913. Leadership positions for the Naval Postgraduate School.
Sec. 914. United States Military Cancer Institute.
                      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 2005.
Sec. 1003. Reduction in overall authorization due to inflation savings.
Sec. 1004. Defense business systems investment management.
Sec. 1005. Uniform funding and management of service academy athletic 
                            and extracurricular programs and similar 
                            supplemental mission activities.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Exchange and sale of obsolete Navy service craft and boats.
Sec. 1012. Limitation on disposal of obsolete naval vessel.
Sec. 1013. Award of contracts for ship dismantling on net cost basis.
                          Subtitle C--Reports

Sec. 1021. Report on contractor security in Iraq.
                 Subtitle D--Matters Relating to Space

Sec. 1031. Space posture review.
Sec. 1032. Panel on the Future of Military Space Launch.
Sec. 1033. Operationally responsive national security payloads for 
                            space satellites.
Sec. 1034. Nondisclosure of certain products of commercial satellite 
                            operations.
                 Subtitle E--Defense Against Terrorism

Sec. 1041. Temporary acceptance of communications equipment provided by 
                            local public safety agencies.
Sec. 1042. Full-time dedication of airlift support for homeland defense 
                            operations.
Sec. 1043. Survivability of critical systems exposed to chemical or 
                            biological contamination.
             Subtitle F--Matters Relating to Other Nations

Sec. 1051. Humanitarian assistance for the detection and clearance of 
                            landmines and explosive remnants of war.
Sec. 1052. Use of funds for unified counterdrug and counterterrorism 
                            campaign in Colombia.
Sec. 1053. Assistance to Iraq and Afghanistan military and security 
                            forces.
Sec. 1054. Assignment of NATO naval personnel to submarine safety 
                            research and development programs.
                       Subtitle G--Other Matters

Sec. 1061. Technical amendments relating to definitions of general 
                            applicability in title 10, United States 
                            Code.
Sec. 1062. Two-year extension of authority of Secretary of Defense to 
                            engage in commercial activities as security 
                            for intelligence collection activities 
                            abroad.
Sec. 1063. Liability protection for persons voluntarily providing 
                            maritime-related services accepted by the 
                            Navy.
Sec. 1064. Licensing of intellectual property.
Sec. 1065. Delay of electronic voting demonstration project.
Sec. 1066. War risk insurance for merchant marine vessels.
Sec. 1067. Repeal of quarterly reporting requirement concerning 
                            payments for District of Columbia water and 
                            sewer services and establishment of annual 
                            report by Treasury.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Science, mathematics, and research for transformation 
                            (SMART) defense scholarship pilot program.
Sec. 1102. Foreign language proficiency pay.
Sec. 1103. Pay and performance appraisal parity for civilian 
                            intelligence personnel.
Sec. 1104. Accumulation of annual leave by intelligence senior level 
                            employees.
Sec. 1105. Pay parity for senior executives in defense nonappropriated 
                            fund instrumentalities.
Sec. 1106. Health benefits program for employees of nonappropriated 
                            fund instrumentalities.
   TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1201. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1202. Funding allocations.
Sec. 1203. Modification and waiver of limitation on use of funds for 
                            chemical weapons destruction facilities in 
                            Russia.
Sec. 1204. Inclusion of descriptive summaries in annual Cooperative 
                            Threat Reduction reports and budget 
                            justification materials.

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 2005 
for procurement for the Army as follows:
            (1) For aircraft, $2,702,640,000.
            (2) For missiles, $1,488,321,000.
            (3) For weapons and tracked combat vehicles, 
        $1,693,595,000.
            (4) For ammunition, $1,598,302,000.
            (5) For other procurement, $5,384,296,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2005 for procurement for the Navy as follows:
            (1) For aircraft, $8,870,832,000.
            (2) For weapons, including missiles and torpedoes, 
        $2,183,829,000.
            (3) For shipbuilding and conversion, $10,127,027,000.
            (4) For other procurement, $4,904,978,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2005 for procurement for the Marine Corps in the amount 
of $1,303,203,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2005 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $873,140,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for procurement for the Air Force as follows:
            (1) For aircraft, $13,033,674,000.
            (2) For missiles, $4,635,613,000.
            (3) For ammunition, $1,396,457,000.
            (4) For other procurement, $13,298,257,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for Defense-wide procurement in the amount of $2,967,402,000.

                       Subtitle B--Army Programs

SEC. 111. LIGHT UTILITY HELICOPTER PROGRAM.

    (a) Limitation.--Of the funds authorized to be appropriated under 
section 101(1) for the procurement of light utility helicopters, 
$45,000,000 may not be obligated or expended until 30 days after the 
date on which the Secretary of the Army submits to the congressional 
defense committees a report that contains--
            (1) the Secretary's certification that all required 
        documentation for the acquisition of light utility helicopters 
        has been completed and approved; and
            (2) the Army aviation modernization plan required by 
        subsection (b).
    (b) Army Aviation Modernization Plan.--(1) Not later than March 1, 
2005, the Secretary of the Army shall submit to the congressional 
defense committees an updated modernization plan for Army aviation.
    (2) The updated Army aviation modernization plan shall contain, at 
a minimum, the following matters:
            (A) The analysis on which the plan is based.
            (B) A discussion of the Secretary's decision to terminate 
        the Comanche helicopter program and to restructure the aviation 
        force of the Army.
            (C) The actions taken or to be taken to accelerate the 
        procurement and development of aircraft survivability equipment 
        for Army aircraft, together with a detailed list of aircraft 
        survivability equipment that specifies such equipment by 
        platform and by the related programmatic funding for 
        procurement.
            (D) A discussion of the conversion of Apache helicopters to 
        block III configuration, including the rationale for converting 
        only 501 Apache helicopters to that configuration and the costs 
        associated with a conversion of all Apache helicopters to the 
        block III configuration.
            (E) A discussion of the procurement of light armed 
        reconnaissance helicopters, including the rationale for the 
        requirement for light armed reconnaissance helicopters and a 
        discussion of the costs associated with upgrading the light 
        armed reconnaissance helicopter to meet Army requirements.
            (F) The rationale for the Army's requirement for light 
        utility helicopters, together with a summary and copy of the 
        analysis of the alternative means for meeting such requirement 
        that the Secretary considered in the determination to procure 
        light utility helicopters, including, at a minimum, the 
        analysis of the alternative of using light armed reconnaissance 
        helicopters and UH-60 Black Hawk helicopters instead of light 
        utility helicopters to meet such requirement.
            (G) The rationale for the procurement of cargo fixed-wing 
        aircraft.
            (H) The rationale for the initiation of a joint multi-role 
        helicopter program.
            (I) A description of the operational employment of the 
        Army's restructured aviation force.

SEC. 112. AUTHORIZATION OF APPROPRIATIONS FOR UP-ARMORED HIGH MOBILITY 
              MULTI-PURPOSE WHEELED VEHICLES OR WHEELED VEHICLE 
              BALLISTIC ADD-ON ARMOR PROTECTION.

    (a) Additional Amount for Other Procurement, Army.--Funds are 
hereby authorized to be appropriated for the Army for fiscal year 2005 
for other procurement in the total amount of $610,000,000. Such amount 
is in addition to the total amount authorized to be appropriated under 
section 101.
    (b) Purposes.--The amount authorized to be appropriated under 
subsection (a) shall be available for both of the following purposes 
and may be used for either or both of such purposes:
            (1) The procurement of up-armored high mobility multi-
        purpose wheeled vehicles at a rate up to 450 such vehicles each 
        month.
            (2) The procurement of wheeled vehicle ballistic add-on 
        armor protection.
    (c) Allocation by Secretary of the Army.--(1) The Secretary of the 
Army shall allocate the amount authorized to be appropriated in 
subsection (a) between the two purposes set forth in subsection (b) as 
the Secretary determines appropriate to meet the requirements of the 
Army.
    (2) Not later than 15 days before making an allocation under 
paragraph (1), the Secretary shall transmit a notification of the 
proposed allocation to the congressional defense committees.
    (d) Prohibition on Use for Other Purposes.--The amount authorized 
to be appropriated under subsection (a) may not be used for any purpose 
other than a purpose specified in subsection (b).

                       Subtitle C--Navy Programs

SEC. 121. LHA(R) AMPHIBIOUS ASSAULT SHIP PROGRAM.

    (a) Authorization of Ship.--The Secretary of the Navy is authorized 
to procure the first amphibious assault ship of the LHA(R) class, 
subject to the availability of appropriations for that purpose.
    (b) Authorized Amount.--Of the amount authorized to be appropriated 
under section 102(a)(3) for fiscal year 2005, $150,000,000 shall be 
available for the advance procurement and advance construction of 
components for the first amphibious assault ship of the LHA(R) class. 
The Secretary of the Navy may enter into a contract or contracts with 
the shipbuilder and other entities for the advance procurement and 
advance construction of those components.

SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR THE LIGHT WEIGHT 155-
              MILLIMETER HOWITZER PROGRAM.

    (a) Authority.--Beginning with the fiscal year 2005 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 the 
procurement of the light weight 155-millimeter howitzer.
    (b) Limitation.--The Secretary may not enter into a multiyear 
contract for the procurement of light weight 155 millimeter howitzers 
under subsection (a) until the Secretary determines on the basis of 
operational testing that the light weight 155-millimeter howitzer is 
effective for fleet use.

SEC. 123. PILOT PROGRAM FOR FLEXIBLE FUNDING OF SUBMARINE ENGINEERED 
              REFUELING OVERHAUL AND CONVERSION.

    (a) Establishment.--The Secretary of the Navy may carry out a pilot 
program of flexible funding of engineered refueling overhauls and 
conversions of submarines in accordance with this section.
    (b) Authority.--Under the pilot program, the Secretary of the Navy 
may, subject to subsection (d), transfer amounts described in 
subsection (c) to the appropriation for the Navy for procurement for 
shipbuilding and conversion for any fiscal year to continue to provide 
funds for any engineered refueling conversion or overhaul of a 
submarine of the Navy for which funds were initially provided from the 
appropriation to which transferred.
    (c) Funds Available for Transfer.--The amounts available for 
transfer under this section are amounts appropriated to the Navy for 
any fiscal year after fiscal year 2004 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 
submarine under this section only to meet either (or both) of the 
following requirements:
            (A) An increase in the size of the workload for engineered 
        refueling overhaul and conversion to meet existing requirements 
        for the submarine.
            (B) A new engineered refueling overhaul and conversion 
        requirement resulting from a revision of the original baseline 
        engineered refueling overhaul and conversion program for the 
        submarine.
    (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 submarine engineered refueling overhaul 
        and conversion program for which the transfer is to be made.
    (e) Merger of Funds.--Amounts transferred to an appropriation with 
respect to the engineered refueling overhaul and conversion of a 
submarine under this section shall be credited to and merged with other 
funds in the appropriation to which transferred and shall be available 
for the engineered refueling overhaul and conversion of such submarine 
for the same period as the appropriation to which transferred.
    (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. PROHIBITION OF RETIREMENT OF
              KC-135E AIRCRAFT.

    The Secretary of the Air Force may not retire any KC-135E aircraft 
of the Air Force in fiscal year 2005.

SEC. 132. PROHIBITION OF RETIREMENT OF
              F-117 AIRCRAFT.

    No F-117 aircraft in use by the Air Force during fiscal year 2004 
may be retired during fiscal year 2005.

                       Subtitle E--Other Matters

SEC. 141. REPORT ON OPTIONS FOR ACQUISITION OF PRECISION-GUIDED 
              MUNITIONS.

    (a) Requirement for Report.--Not later than March 1, 2005, the 
Secretary of Defense shall submit a report on options for the 
acquisition of precision-guided munitions to the congressional defense 
committees.
    (b) Content of Report.--The report shall include the following 
matters:
            (1) A list of the precision-guided munitions in the 
        inventory of the Department of Defense.
            (2) For each such munition--
                    (A) the inventory level as of the most recent date 
                that it is feasible to specify when the report is 
                prepared;
                    (B) the inventory objective that is necessary to 
                execute the current National Military Strategy 
                prescribed by the Chairman of the Joint Chiefs of 
                Staff;
                    (C) the year in which that inventory objective 
                would be expected to be achieved--
                            (i) if the munition were procured at the 
                        minimum sustained production rate;
                            (ii) if the munition were procured at the 
                        most economic production rate; and
                            (iii) if the munition were procured at the 
                        maximum production rate; and
                    (D) the procurement cost (in constant fiscal year 
                2004 dollars) at each of the production rates specified 
                in subparagraph (C).

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
            (1) For the Army, $9,698,958,000.
            (2) For the Navy, $16,679,391,000.
            (3) For the Air Force, $21,264,267,000.
            (4) For Defense-wide activities, $20,635,937,000, of which 
        $309,135,000 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, $10,998,850,000 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.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. DD(X)-CLASS DESTROYER PROGRAM.

    (a) Authorization of Ship.--For the second destroyer in the DD(X)-
class destroyer program, the Secretary of the Navy is authorized to use 
funds authorized to be appropriated to the Navy under section 201(2).
    (b) Amount for Detail Design.--Of the amount authorized to be 
appropriated under section 201(2) for fiscal year 2005, $99,400,000 
shall be available for the detail design of the second destroyer of the 
DD(X)-class.

SEC. 212. GLOBAL POSITIONING SYSTEM III SATELLITE.

    Not more than 80 percent of the amount authorized to be 
appropriated by section 201(4) and available for the purpose of 
research, development, test, and evaluation on the Global Positioning 
System III satellite may be obligated or expended for that purpose 
until the Secretary of Defense--
            (1) completes an analysis of alternatives for the satellite 
        and ground architectures, satellite technologies, and tactics, 
        techniques, and procedures for the next generation global 
        positioning system (GPS); and
            (2) submits to the congressional defense committees a 
        report on the results of the analysis, including an assessment 
        of the results of the analysis.

SEC. 213. INITIATION OF CONCEPT DEMONSTRATION OF GLOBAL HAWK HIGH 
              ALTITUDE ENDURANCE UNMANNED AERIAL VEHICLE.

    Section 221(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-40) is amended by striking ``March 1, 
2001'' and inserting ``March 1, 2005''.

SEC. 214. JOINT UNMANNED COMBAT AIR SYSTEMS PROGRAM.

    (a) Executive Committee.--(1) The Secretary of Defense shall, 
subject to subsection (b), establish and require an executive committee 
to provide guidance and recommendations for the management of the Joint 
Unmanned Combat Air Systems program to the Director of the Defense 
Advanced Research Projects Agency and the personnel who are managing 
the program for such agency.
    (2) The executive committee established under paragraph (1) shall 
be composed of the following members:
            (A) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, who shall chair the executive 
        committee.
            (B) The Assistant Secretary of the Navy for Research, 
        Development, and Acquisition.
            (C) The Assistant Secretary of the Air Force for 
        Acquisition.
            (D) The Deputy Chief of Naval Operations for Warfare 
        Requirements and Programs.
            (E) The Deputy Chief of Staff of the Air Force for Air and 
        Space Operations.
            (F) Any additional personnel of the Department of Defense 
        whom the Secretary determines appropriate for membership on the 
        executive committee.
    (b) Applicability Only to DARPA-Managed Program.--The requirements 
of subsection (a) apply with respect to the Joint Unmanned Combat Air 
Systems program only while the program is managed by the Defense 
Advanced Research Projects Agency.

SEC. 215. JOINT STRIKE FIGHTER AIRCRAFT PROGRAM.

    (a) Requirement for Study.--The Secretary of Defense shall require 
the Defense Science Board to conduct a study on the Joint Strike 
Fighter aircraft program.
    (b) Matters To Be Studied.--The study shall include, for each of 
the three variants of the Joint Strike Fighter aircraft, the following 
matters:
            (1) The current status.
            (2) The extent of the effects of excess aircraft weight on 
        estimated performance.
            (3) The validity of the technical approaches being 
        considered to achieve the required performance.
            (4) The risks of those technical approaches.
            (5) A list of any alternative technical approaches that 
        have the potential to achieve the required performance.
    (c) Report.--The Secretary shall submit a report on the results of 
the study to the congressional defense committees at the same time that 
the President submits the budget for fiscal year 2006 to Congress under 
section 1105(a) of title 31, United States Code.

SEC. 216. JOINT EXPERIMENTATION.

    (a) Defense-Wide Program Element.--The Secretary of Defense shall 
plan, program, and budget for all joint experimentation of the Armed 
Forces as a separate, dedicated program element under research, 
development, test, and evaluation, Defense-wide activities.
    (b) Applicability to Fiscal Years After Fiscal Year 2005.--This 
section shall apply with respect to fiscal years beginning after 2005.

                 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. PATRIOT ADVANCE CAPABILITY-3 AND MEDIUM EXTENDED AIR DEFENSE 
              SYSTEM.

    (a) Oversight.--In the management of the combined program for the 
acquisition of the Patriot Advanced Capability-3 missile system and the 
Medium Extended Air Defense System, the Secretary of Defense shall 
require the Secretary of the Army to obtain the approval of the 
Director of the Missile Defense Agency before the Secretary of the 
Army--
            (1) either--
                    (A) changes any system level technical 
                specifications that are in effect under the program as 
                of the date of the enactment of this Act; or
                    (B) establishes any new system level technical 
                specifications after such date;
            (2) makes any significant change in a procurement quantity 
        (including any quantity in any future block procurement) that, 
        as of such date, is planned for--
                    (A) the Patriot Advanced Capabilities-3 missile 
                system; or
                    (B) PAC-3 configuration-3 radars, launchers, or 
                fire control units; or
            (3) changes the baseline development schedule that is in 
        effect for the program as of the date of the enactment of this 
        Act.
    (b) Definitions.--In this section:
            (1) The term ``system level technical specifications'', 
        with respect to a system to which this section applies, means 
        technical specifications expressed in terms of technical 
        performance, including test specifications, that affect the 
        ability of the system to contribute to the capability of the 
        ballistic missile defense system of the United States, as 
        determined by the Director of the Missile Defense Agency.
            (2) The term ``significant change'', with respect to a 
        planned procurement quantity, means any change of such quantity 
        that would result in a significant change in the contribution 
        that, as of the date of the enactment of this Act, is planned 
        for the Patriot Advanced Capability-3 system to make to the 
        ballistic missile defense system of the United States.
            (3) The term ``baseline development schedule'' means the 
        schedule on which technology upgrades for the combined 
        acquisition program referred to in subsection (a) are planned 
        for development.
            (4) The terms ``Patriot Advanced Capability-3'' and ``PAC-3 
        configuration-3''--
                    (A) mean the air and missile defense system that, 
                as of June 1, 2004, is referred to by either such name 
                in the management of the combined acquisition program 
                referred to in subsection (a); and
                    (B) include such system as it is improved with new 
                air and missile defense technologies.

SEC. 223. COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC MISSILE DEFENSE 
              PROGRAMS.

    (a) Annual Assessments.--At the conclusion of each of 2004 through 
2009, the Comptroller General of the United States shall conduct an 
assessment of the extent to which each ballistic missile defense 
program met the cost, scheduling, testing, and performance goals for 
such program for such year as established pursuant to section 232(c) of 
the National Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 
2431 note).
    (b) Reports on Annual Assessments.--Not later than February 15 of 
each of 2005 through 2010, the Comptroller General shall submit to the 
congressional defense committees a report on the assessment conducted 
by the Comptroller General under subsection (a) for the previous year.

                       Subtitle D--Other Matters

SEC. 231. ANNUAL REPORT ON SUBMARINE TECHNOLOGY INSERTION.

    (a) Report Required.--(1) For each of fiscal years 2006, 2007, 
2008, and 2009, the Secretary of Defense shall submit to the 
congressional defense committees a report on the submarine technologies 
that are available or potentially available for insertion in submarines 
of the Navy to reduce the production and operating costs of the 
submarines while maintaining or improving the effectiveness of the 
submarines.
    (2) The annual report for a fiscal year under paragraph (1) shall 
be submitted at the same time that the President submits to Congress 
the budget for that fiscal year under section 1105(a) of title 31, 
United States Code.
    (b) Content.--The report on submarine technologies under subsection 
(a) shall include, for each class of submarines of the Navy, the 
following matters:
            (1) A list of the technologies that have been demonstrated, 
        together with--
                    (A) a plan for the insertion of any such 
                technologies that have been determined appropriate for 
                such submarines; and
                    (B) the estimated cost of such technology 
                insertions.
            (2) A list of the technologies that have not been 
        demonstrated, together with a plan for the demonstration of any 
        such technologies that have the potential for being appropriate 
        for such submarines.

                  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 2005 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the Army, $26,305,611,000.
            (2) For the Navy, $29,702,790,000.
            (3) For the Marine Corps, $3,682,727,000.
            (4) For the Air Force, $27,423,560,000.
            (5) For Defense-wide activities, $17,453,576,000.
            (6) For the Army Reserve, $1,925,728,000.
            (7) For the Naval Reserve, $1,240,038,000.
            (8) For the Marine Corps Reserve, $197,496,000.
            (9) For the Air Force Reserve, $2,154,790,000.
            (10) For the Army National Guard, $4,227,236,000.
            (11) For the Air National Guard, $4,366,738,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $10,825,000.
            (13) For Environmental Restoration, Army, $405,598,000.
            (14) For Environmental Restoration, Navy, $266,820,000.
            (15) For Environmental Restoration, Air Force, 
        $397,368,000.
            (16) For Environmental Restoration, Defense-wide, 
        $23,684,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $256,516,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $59,000,000.
            (19) For Cooperative Threat Reduction programs, 
        $409,200,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2005 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,625,686,000.
            (2) For the National Defense Sealift Fund, $1,269,252,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2005 for 
expenses, not otherwise provided for, for the Defense Health Program, 
$17,992,211,000, of which--
            (1) $17,555,169,000 is for Operation and Maintenance;
            (2) $72,407,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $364,635,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Defense.--(1) Funds 
are hereby authorized to be appropriated for the Department of Defense 
for fiscal year 2005 for expenses, not otherwise provided for, for 
Chemical Agents and Munitions Destruction, Defense, $1,518,990,000, of 
which--
            (A) $1,138,801,000 is for Operation and Maintenance;
            (B) $301,209,000 is for Research, Development, Test, and 
        Evaluation; and
            (C) $78,980,000 is for Procurement.
    (2) Amounts authorized to be appropriated under paragraph (1) are 
authorized for--
            (A) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (B) the destruction of chemical warfare materiel of the 
        United States that is not covered by section 1412 of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2005 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, 
$852,697,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2005 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, $164,562,000, of which--
            (1) $162,362,000 is for Operation and Maintenance;
            (2) $100,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $2,100,000 is for Procurement.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. COMMANDER'S EMERGENCY RESPONSE PROGRAM.

    (a) Funding.--Of the amounts authorized to be appropriated for 
fiscal year 2005 by section 301(5) for operation and maintenance for 
Defense-wide activities, not more than $300,000,000 may be made 
available in fiscal year 2005 for the following:
            (1) The Commander's Emergency Response Program, which was 
        established by the Administrator of the Coalition Provisional 
        Authority for the purpose of enabling United States military 
        commanders in Iraq to respond to urgent humanitarian relief and 
        reconstruction needs within their areas of responsibility by 
        carrying out programs to provide immediate assistance to the 
        people of Iraq.
            (2) A similar program to enable United States military 
        commanders in Afghanistan to respond in such manner to similar 
        needs in Afghanistan.
    (b) Quarterly Reports Required.--The Secretary of Defense shall 
submit to the congressional defense committees on a quarterly basis 
reports on the use of amounts made available under subsection (a).

SEC. 312. LIMITATION ON TRANSFERS OUT OF WORKING CAPITAL FUNDS.

    Section 2208 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(r) Limitation on Transfers.--(1) Notwithstanding any authority 
for transfer of funds provided in this section, no transfer may be made 
out of a working capital fund or between or among working capital funds 
under such authority unless the Secretary of Defense has submitted a 
notification of the proposed transfer to the congressional defense 
committees in accordance with customary procedures.
    ``(2) The amount of a transfer covered by a notification under 
paragraph (1) that is proposed to be made in a fiscal year does not 
count for the purpose of any limitation on the total amount of 
transfers that may be made for that fiscal year under authority 
provided to the Secretary of Defense in a law authorizing 
appropriations for a fiscal year for military activities of the 
Department of Defense or a law making appropriations for the Department 
of Defense.''.

                  Subtitle C--Environmental Provisions

SEC. 321. PAYMENT OF CERTAIN PRIVATE CLEANUP COSTS IN CONNECTION WITH 
              DEFENSE ENVIRONMENTAL RESTORATION PROGRAM.

    (a) Payment for Activities at Former Defense Property Subject to 
Covenant for Additional Remedial Action.--Section 2701(d) of title 10, 
United States Code, is amended--
            (1) in paragraph (1), by striking ``paragraph (3)'' and 
        inserting ``paragraph (4)'';
            (2) by redesignating paragraphs (2), (3), and (4), as 
        paragraphs (3), (4), and (5), respectively; and
            (3) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) Activities at certain former defense property.--In 
        addition to agreements under paragraph (1), the Secretary may 
        also enter into agreements with owners of property subject to a 
        covenant provided by the United States under section 
        120(h)(3)(A)(ii) of CERCLA (42 U.S.C. 9620(h)(3)(A)(ii)) to 
        reimburse the owners of such property for activities under this 
        section with respect to such property by reason of the 
        covenant.''.
    (b) Source of Funds for Former BRAC Property Subject to Covenant 
for Additional Remedial Action.--Section 2703 of such title is 
amended--
            (1) in subsection (g)(1), by striking ``The sole source'' 
        and inserting ``Except as provided in subsection (h), the sole 
        source''; and
            (2) by adding at the end the following new subsection:
    ``(h) Sole Source of Funds for Environmental Remediation at Certain 
Base Realignment and Closure Sites.--In the case of property disposed 
of pursuant to a base closure law and subject to a covenant described 
in section 2701(d)(2) of this title, the sole source of funds for 
activities under such section shall be the base closure account 
established under the applicable base closure law.''.

SEC. 322. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse.--(1) Using funds described in 
subsection (b), the Secretary of Defense may transfer not more than 
$524,926.54 to the Moses Lake Wellfield Superfund Site 10-6J Special 
Account.
    (2) The payment under paragraph (1) is to reimburse the 
Environmental Protection Agency for its costs, including interest, 
incurred in overseeing a remedial investigation/feasibility study 
performed by the Department of the Army under the Defense Environmental 
Restoration Program at the former Larson Air Force Base, Moses Lake 
Superfund Site, Moses Lake, Washington.
    (3) The reimbursement described in paragraph (2) is provided for in 
the interagency agreement entered into by the Department of the Army 
and the Environmental Protection Agency for the Moses Lake Wellfield 
Superfund Site in March 1999.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(17) for 
operation and maintenance for Environmental Restoration, Formerly Used 
Defense Sites.
    (c) Use of Funds.--The Environmental Protection Agency shall use 
the amount transferred under subsection (a) to pay costs incurred by 
the Agency at the Moses Lake Wellfield Superfund Site.

SEC. 323. SATISFACTION OF CERTAIN AUDIT REQUIREMENTS BY THE INSPECTOR 
              GENERAL OF THE DEPARTMENT OF DEFENSE.

    (a) Satisfaction of Requirements.--The Inspector General of the 
Department of Defense shall be deemed to be in compliance with the 
requirements of subsection (k) of section 111 of Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9611) if the Inspector General conducts periodic audits of the 
payments, obligations, reimbursements and other uses of the Fund 
described in that section, even if such audits do not occur on an 
annual basis.
    (b) Reports to Congress on Audits.--The Inspector General shall 
submit to Congress a report on each audit conducted by the Inspector 
General as described in subsection (a).

SEC. 324. COMPTROLLER GENERAL STUDY AND REPORT ON DRINKING WATER 
              CONTAMINATION AND RELATED HEALTH EFFECTS AT CAMP LEJEUNE, 
              NORTH CAROLINA.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study on drinking water contamination and related health 
effects at Camp Lejeune, North Carolina. The study shall consist of the 
following:
            (1) A study of the history of drinking water contamination 
        at Camp Lejeune to determine, to the extent practical--
                    (A) what contamination has been found in the 
                drinking water;
                    (B) the source of such contamination and when it 
                may have begun;
                    (C) when Marine Corps officials first became aware 
                of such contamination;
                    (D) what actions have been taken to address such 
                contamination;
                    (E) the appropriateness of such actions in light of 
                the state of knowledge regarding contamination of that 
                type, and applicable legal requirements regarding such 
                contamination, as of the time of such actions; and
                    (F) any other matters that the Comptroller General 
                considers appropriate.
            (2) An assessment of the study on the possible health 
        effects associated with the drinking of contaminated drinking 
        water at Camp Lejeune as proposed by the Agency for Toxic 
        Substances and Disease Registry (ATSDR), including whether the 
        proposed study--
                    (A) will address the appropriate at-risk 
                populations;
                    (B) will encompass an appropriate timeframe;
                    (C) will consider all relevant health effects; and
                    (D) can be completed on an expedited basis without 
                compromising its quality.
    (b) Authority To Use Experts.--The Comptroller General may use 
experts in conducting the study required by subsection (a). Any such 
experts shall be independent, highly qualified, and knowledgeable in 
the matters covered by the study.
    (c) Participation by Other Interested Parties.--In conducting the 
study required by subsection (a), the Comptroller General shall ensure 
that interested parties, including individuals who lived or worked at 
Camp Lejeune during the period when the drinking water may have been 
contaminated, have the opportunity to submit information and views on 
the matters covered by the study.
    (d) Construction With ATSDR Study.--The requirement under 
subsection (a) that the Comptroller General conduct the study required 
by paragraph (2) of that subsection may not be construed as a basis for 
the delay of the study proposed by Agency for Toxic Substances and 
Disease Registry as described in that subsection, but is intended to 
provide an independent review of the appropriateness and credibility of 
the study proposed by the Agency and to identify possible improvements 
in the plan or implementation of the study proposed by the Agency.
    (e) Report.--(1) Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the study required by 
subsection (a), including such recommendations as the Comptroller 
General considers appropriate for further study or for legislative or 
other action.
    (2) Recommendations under paragraph (1) may include recommendations 
for modifications or additions to the study proposed by the Agency for 
Toxic Substances and Disease Registry, as described in subsection 
(a)(2), in order to improve the study.

SEC. 325. INCREASE IN AUTHORIZED AMOUNT OF ENVIRONMENTAL REMEDIATION, 
              FRONT ROYAL, VIRGINIA.

    Section 591(a)(2) of the Water Resources Development Act of 1999 
(Public Law 106-53; 113 Stat. 378) is amended by striking 
``$12,000,000'' and inserting ``$22,000,000''.

             Subtitle D--Depot-Level Maintenance and Repair

SEC. 331. SIMPLIFICATION OF ANNUAL REPORTING REQUIREMENTS CONCERNING 
              FUNDS EXPENDED FOR DEPOT MAINTENANCE AND REPAIR 
              WORKLOADS.

    (a) Consolidation and Revision of Departmental Reporting 
Requirements.--Section 2466(d) of title 10, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``February 1'' and inserting 
                ``April 1''; and
                    (B) by striking ``the preceding two fiscal years'' 
                and inserting ``the preceding fiscal year and are 
                projected to be expended in the fiscal year in which 
                submitted and ensuing fiscal years''; and
            (2) by striking paragraph (2).
    (b) Timing and Content of GAO Views.--Paragraph (3) of such 
section--
            (1) is redesignated as paragraph (2); and
            (2) is amended--
                    (A) by striking ``60 days'' and inserting ``90 
                days''; and
                    (B) by striking ``whether--'' and all that follows 
                and inserting the following: ``whether the Department 
                of Defense has complied with the requirements of 
                subsection (a) for the fiscal year preceding the fiscal 
                year in which the report is submitted and whether the 
                expenditure projections for the other fiscal years 
                covered by the report are reasonable.''.

SEC. 332. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON MANAGEMENT OF 
              DEPOT EMPLOYEES.

    (a) Repeal.--Section 2472 of title 10, United States Code, is 
amended by striking subsection (b).
    (b) Conforming Amendment.--Subsection (a) of such section is 
amended by striking ``(a) Prohibition on Management by End Strength.--
''.

SEC. 333. EXTENSION OF SPECIAL TREATMENT FOR CERTAIN EXPENDITURES 
              INCURRED IN THE OPERATION OF CENTERS OF INDUSTRIAL AND 
              TECHNICAL EXCELLENCE.

    Section 2474(f)(1) of title 10, United States Code, is amended by 
striking ``through 2006'' and inserting ``through 2009''.

             Subtitle E--Extensions of Program Authorities

SEC. 341. TWO-YEAR EXTENSION OF DEPARTMENT OF DEFENSE 
              TELECOMMUNICATIONS BENEFIT.

    Section 344(c) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1449) is amended by striking 
``September 30, 2004'' and inserting ``September 30, 2006''.

SEC. 342. TWO-YEAR EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    Section 343 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (10 U.S.C. 4551 note) is amended--
            (1) in subsection (a), by striking ``2004'' and inserting 
        ``2006''; and
            (2) in subsection (g)--
                    (A) in paragraph (1), by striking ``2004'' and 
                inserting ``2006''; and
                    (B) in paragraph (2), by striking ``2003'' and 
                inserting ``2005''.

SEC. 343. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    Section 391(f) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 2304 note) is amended by 
striking ``September 30, 2004'' and inserting ``September 30, 2006''.

                Subtitle F--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 
2005.--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, 2005, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2005 of--
            (1) that agency's eligibility for the assistance; and
            (2) the amount of the assistance for which that agency is 
        eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
            (1) The term ``educational agencies assistance'' means 
        assistance authorized under section 386(b) of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 20 U.S.C. 7703 note).
            (2) The term ``local educational agency'' has the meaning 
        given that term in section 8013(9) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
            (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 G--Other Matters

SEC. 361. CHARGES FOR DEFENSE LOGISTICS INFORMATION SERVICES MATERIALS.

    (a) Authority.--Subchapter I of chapter 8 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 197. Defense Logistics Agency: fees charged for logistics 
              information
    ``(a) Authority.--The Secretary of Defense may charge fees for 
providing information in the Federal Logistics Information System 
through Defense Logistics Information Services to a department or 
agency of the executive branch outside the Department of Defense, or to 
a State, a political subdivision of a State, or any person.
    ``(b) Amount.--The fee or fees prescribed under subsection (a) 
shall be such amount or amounts as the Secretary of Defense determines 
appropriate for recovering the costs of providing information as 
described in such subsection.
    ``(c) Retention of Fees.--Fees collected under this section shall 
be credited to the appropriation available for Defense Logistics 
Information Services for the fiscal year in which collected, shall be 
merged with other sums in such appropriation, and shall be available 
for the same purposes and period as the appropriation with which 
merged.
    ``(d) Defense Logistics Information Services Defined.--In this 
section, the term `Defense Logistics Information Services' means the 
organization within the Defense Logistics Agency that is known as 
Defense Logistics Information Services.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``197. Defense Logistics Agency: fees charged for logistics 
                            information.''.

SEC. 362. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF SECURITY-
              GUARD FUNCTIONS.

    (a) Conditional Extension of Authority.--Subsection (c) of section 
332 of the Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-314; 116 Stat. 2513) is amended--
            (1) by inserting ``(1)'' after ``Authority.--''; and
            (2) by striking ``at the end of the three-year period'' and 
        all that follows through the period at the end and inserting 
        ``at the end of September 30, 2006, except that such authority 
        shall not be in effect under this section for any period after 
        December 1, 2004, during which the Secretary has failed to 
        comply with the requirement to submit the plan under subsection 
        (d)(2).
    ``(2) No security-guard functions may be performed under any 
contract entered into using the authority provided under this section 
during any period for which the authority for contractor performance of 
security-guard functions under this section is not in effect.
    ``(3) The term of any contract entered into using the authority 
provided under this section may not extend beyond the date of the 
expiration of authority under paragraph (1).''.
    (b) Reaffirmation and Revision of Reporting Requirement.--
Subsection (d) of such section is amended--
            (1) by striking ``180 days after the date of the enactment 
        of this Act,'' and inserting ``December 1, 2004,'';
            (2) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (4), respectively;
            (3) by inserting after ``shall--'' the following new 
        paragraph:
            ``(1) identify each contract for the performance of 
        security-guard functions entered into pursuant to the authority 
        in subsection (a) on or before September 30, 2004, including 
        information regarding--
                    ``(A) each installation at which such security-
                guard functions are performed or are to be performed;
                    ``(B) the period and amount of such contract;
                    ``(C) the number of security guards employed or to 
                be employed under such contract; and
                    ``(D) the actions taken or to be taken within the 
                Department of Defense to ensure that the conditions 
                applicable under paragraph (1) of subsection (a) or 
                determined under paragraph (2) of such subsection are 
                satisfied;'';
            (4) by striking ``and'' at the end of paragraph (2), as 
        redesignated by paragraph (2); and
            (5) by inserting after paragraph (2), as so redesignated, 
        the following new paragraph:
            ``(3) identify any limitation or constraint on the end 
        strength of the civilian workforce of the Department of Defense 
        that makes it difficult to meet requirements identified under 
        paragraph (2) by hiring personnel as civilian employees of the 
        Department of Defense; and''.

SEC. 363. PILOT PROGRAM FOR PURCHASE OF CERTAIN MUNICIPAL SERVICES FOR 
              DEPARTMENT OF DEFENSE INSTALLATIONS.

    (a) Authority.--The Secretary of Defense may carry out a pilot 
program to provide for the purchase of certain services needed for a 
Department of Defense installation from a county or municipality where 
the installation is located.
    (b) Purpose of Program.--The purpose of the pilot program is to 
provide the Secretary with a basis for evaluating the efficacy of 
purchasing public works, utility, and other services needed for 
Department of Defense installations from counties or municipalities 
where the installations are located.
    (c) Services Authorized for Procurement.--Only the following 
services may be purchased for a participating installation under the 
pilot program:
            (1) Refuse collection.
            (2) Refuse disposal.
            (3) Library services.
            (4) Recreation services.
            (5) Facility maintenance and repair.
            (6) Utilities.
    (d) Program Installations.--The Secretary of each military 
department may designate under this section not more than two 
installations of such military department for participation in the 
pilot program. Only installations located in the United States are 
eligible for designation under this subsection.
    (e) Report.--Not later than February 1, 2010, the Secretary of 
Defense shall submit to Congress a report on any pilot program carried 
out under this section. The report shall include--
            (1) the Secretary's evaluation of the efficacy of 
        purchasing public works, utility, and other services for 
        Department of Defense installations from counties or 
        municipalities where the installations are located; and
            (2) any recommendations that the Secretary considers 
        appropriate regarding authority to make such purchases.
    (f) Period of Pilot Program.--The pilot program may be carried out 
during fiscal years 2005 through 2010.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2005, as follows:
            (1) The Army, 482,400.
            (2) The Navy, 365,900.
            (3) The Marine Corps, 175,000.
            (4) The Air Force, 359,700.

SEC. 402. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY ACTIVE DUTY 
              PERSONNEL END STRENGTHS FOR FISCAL YEARS 2005 THROUGH 
              2009.

    (a) Authority.--During fiscal years 2005 through 2009, the 
Secretary of Defense is authorized to increase by up to 30,000 the end 
strength authorized for the Army for such fiscal year under section 
115(a)(1)(A) of title 10, United States Code, as necessary to support 
the operational mission of the Army in Iraq and Afghanistan and to 
achieve transformational reorganization objectives of the Army, 
including objectives for increased numbers of combat brigades, unit 
manning, force stabilization and shaping, and rebalancing of the active 
and reserve component forces of the Army.
    (b) Relationship to Presidential Waiver Authority.--Nothing in this 
section shall be construed to limit the President's authority under 
section 123a of title 10, United States Code, to waive any statutory 
end strength in a time of war or national emergency.
    (c) Relationship to Other Variance Authority.--The authority under 
subsection (a) is in addition to the authority to vary authorized end 
strengths that is provided in subsections (e) and (f) of section 115 of 
title 10, United States Code.
    (d) Budget Treatment.--If the Secretary of Defense plans to 
increase the Army active duty end strength for a fiscal year under 
subsection (a) of this section or pursuant to a suspension of end-
strength limitation under section 123a of title 10, United States Code, 
then the budget for the Department of Defense for such fiscal year as 
submitted to Congress shall specify the amounts necessary for funding 
the active duty end strength of the Army in excess of 482,400 (the end 
strength authorized for active duty personnel of the Army for fiscal 
year 2004 in section 401(1) of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1450)).

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2005, as follows:
            (1) The Army National Guard of the United States, 350,000.
            (2) The Army Reserve, 205,000.
            (3) The Naval Reserve, 83,400.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 106,800.
            (6) The Air Force Reserve, 76,100.
            (7) The Coast Guard Reserve, 10,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
            (1) the total authorized strength of units organized to 
        serve as units of the Selected Reserve of such component which 
        are on active duty (other than for training) at the end of the 
        fiscal year; and
            (2) the total number of individual members not in units 
        organized to serve as units of the Selected Reserve of such 
        component who are on active duty (other than for training or 
        for unsatisfactory participation in training) without their 
        consent at the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
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, 
2005, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 26,602.
            (2) The Army Reserve, 14,970.
            (3) The Naval Reserve, 14,152.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 12,253.
            (6) The Air Force Reserve, 1,900.

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

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2005 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
            (1) For the Army Reserve, 7,299.
            (2) For the Army National Guard of the United States, 
        25,076.
            (3) For the Air Force Reserve, 9,954.
            (4) For the Air National Guard of the United States, 
        22,956.

SEC. 414. FISCAL YEAR 2005 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, 
2005, may not exceed the following:
            (A) For the Army National Guard of the United States, 
        1,600.
            (B) For the Air National Guard of the United States, 350.
    (2) The number of non-dual status technicians employed by the Army 
Reserve as of September 30, 2005, may not exceed 795.
    (3) The number of non-dual status technicians employed by the Air 
Force Reserve as of September 30, 2005, may not exceed 90.
    (b) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given the term in 
section 10217(a) of title 10, United States Code.

SEC. 415. AUTHORIZED STRENGTHS FOR MARINE CORPS RESERVE OFFICERS IN 
              ACTIVE STATUS IN GRADES BELOW GENERAL OFFICER.

    (a) Increased Strengths for Field Grade and Company Grade 
Officers.--Section 12005(c)(1), of title 10, United States Code, is 
amended by amending the table to read as follows:

``Colonel............................................        2 percent 
``Lieutenant colonel.................................        8 percent 
``Major..............................................       16 percent 
``Captain............................................       39 percent 
``First lieutenant and second lieutenant (when           35 percent.''.
combined with the number authorized for general 
officer grades under section 12004 of this title).
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2004.

              Subtitle C--Authorizations of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2005 a total of 
$104,535,458,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2005.

SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

             Subtitle A--Joint Officer Personnel Management

SEC. 501. MODIFICATION OF CONDITIONS OF ELIGIBILITY FOR WAIVER OF JOINT 
              DUTY CREDIT REQUIREMENT FOR PROMOTION TO GENERAL OR FLAG 
              OFFICER.

    (a) Career Field Specialties With No Joint Requirements.--Paragraph 
(2) of section 619a(b) of title 10, United States Code, is amended by 
striking ``scientific and technical qualifications'' and inserting 
``career field specialty qualifications''.
    (b) Officers Selected for Promotion While in Joint Duty 
Assignment.--Paragraph (4) of such section is amended by striking 
``if--'' and all that follows and inserting ``if the officer's total 
consecutive service in joint duty assignments meets the requirements of 
section 664 of this title for credit for having completed a full tour 
of duty in a joint duty assignment.''.

SEC. 502. MANAGEMENT OF JOINT SPECIALTY OFFICERS.

    (a) Education and Experience Requirements.--(1) Subsection (c) of 
section 661 of title 10, United States Code, is amended by striking 
paragraph (1) and inserting the following: ``(1) An officer shall have 
the joint specialty (and shall be designated with a joint specialty 
officer identifier) upon--
            ``(A) successfully completing (in any sequence)--
                    ``(i) a program accredited by Chairman of the Joint 
                Chiefs of Staff that is presented by a joint 
                professional military education institution; and
                    ``(ii) a full tour of duty in a joint duty 
                assignment; or
            ``(B) completing two full tours of duty in joint duty 
        assignments.''.
    (2) Subsection (c) of such section is further amended--
            (A) by striking paragraphs (2) and (3); and
            (B) by redesignating paragraph (4) as paragraph (2).
    (b) Designation of Joint Specialty General and Flag Officer 
Positions.--Section 661 of such title is further amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Joint Specialty Officer Designation for General and Flag 
Positions.--(1) The Secretary of Defense shall ensure that the general 
and flag officer positions required to be filled by officers with the 
joint specialty as joint duty assignments are designated as such.
    ``(2) An officer without the joint specialty may be assigned to a 
position designated under paragraph (1) only if the Secretary of 
Defense determines that the assignment of that officer to such position 
is necessary and waives the requirement to assign an officer with the 
joint specialty to that position.''.

SEC. 503. REVISED PROMOTION POLICY OBJECTIVES FOR JOINT OFFICERS.

    (a) Qualifications.--Subsection (a) of section 662 of title 10, 
United States Code, is amended to read as follows:
    ``(a) Qualifications.--(1) The Secretary of a military department 
shall prescribe for the officers in each of the armed forces under the 
jurisdiction of such Secretary policies and procedures to ensure that 
an adequate number of senior colonels, or in the case of the Navy, 
senior captains, who are serving in or have served in joint duty 
assignments meet the requirements of section 619a of this title for 
eligibility for promotion to brigadier general and rear admiral (lower 
half).
    ``(2) The Secretary of Defense shall ensure that the qualifications 
of officers assigned to joint duty assignments are such that--
            ``(A) officers who are serving on or have served on the 
        Joint Staff are expected, as a group, to be promoted to the 
        next higher grade at a rate not less than the rate for officers 
        of the same armed force in the same grade and competitive 
        category who are serving on the headquarters staff of their 
        armed force; and
            ``(B) officers who are serving in or have served in joint 
        duty assignments are expected, as a group, to be promoted to 
        the next higher grade at a rate not less than the rate for all 
        officers of the same armed force in the same grade and 
        competitive category.
    ``(3) The Secretary of Defense shall prescribe policies to ensure 
that the Secretaries of the military departments provide for promotion 
selection boards to give appropriate consideration to officers who are 
serving in or have served in joint duty assignments and are eligible 
for consideration by such boards.''.
    (b) Conforming Amendment.--Subsection (b) of such section is 
amended by striking ``paragraphs (1), (2), and (3) of subsection (a)'' 
and inserting ``subparagraphs (A) and (B) of subsection (a)(2)''.

SEC. 504. LENGTH OF JOINT DUTY ASSIGNMENTS.

    Section 664 of title 10, United States Code, is amended by striking 
subsection (b) and all that follows and inserting the following new 
subsections:
    ``(b) Full Credit for Joint Duty.--An officer shall be credited 
with having completed a full tour of duty in a joint duty assignment 
upon the completion of any of the following:
            ``(1) Service in a joint duty assignment that meets the 
        standards of subsection (a).
            ``(2) Service in a joint duty assignment for a period that 
        equals or exceeds the standard length of the joint duty 
        assignments that is prescribed under subsection (c) for the 
        installation or other location of the officer's joint duty 
        assignment.
            ``(3) Cumulative service of at least one year on one or 
        more headquarters staffs within a United States or 
        multinational joint task force.
            ``(4) Service in a second joint duty assignment for not 
        less than 24 months, without regard to how much of the 
        officer's service in the first joint duty assignment has been 
        credited as service in a joint duty assignment.
            ``(5) Any service in a joint duty assignment if the 
        Secretary of Defense has granted a waiver for such officer 
        under subsection (d).
    ``(c) Standard Length of Joint Duty Assignments.--The Secretary of 
Defense shall prescribe in regulations, for each installation and other 
location authorized joint duty assignment positions, the standard 
length of the joint duty assignments in such positions at that 
installation or other location, as the case may be.
    ``(d) Waiver Authority.--The Secretary of Defense may waive the 
applicability of this section in the case of any particular officer if 
the Secretary determines that it is in the national security interests 
of the United States to do so.''.

SEC. 505. REPEAL OF MINIMUM PERIOD REQUIREMENT FOR PHASE II JOINT 
              PROFESSIONAL MILITARY EDUCATION.

    Section 663 of title 10, United States Code, is amended by striking 
subsection (e).

SEC. 506. REVISED DEFINITIONS APPLICABLE TO JOINT DUTY.

    (a) Joint Duty Assignment.--Subsection (b)(2) of section 668 of 
title 10, United States Code, is amended by striking ``a list'' in the 
matter preceding subparagraph (A) and inserting ``a joint duty 
assignment list''.
    (b) Tour of Duty.--Subsection (c) of such section is amended to 
read as follows:
    ``(c) Tour of Duty.--In this chapter, the term `tour of duty' 
includes two or more consecutive tours of duty in joint duty assignment 
positions that is credited as service in a joint duty assignment under 
this chapter.''.

               Subtitle B--Other Officer Personnel Policy

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

    (a) Original Appointments as Commissioned Officers.--(1) Section 
532 of title 10, United States Code, is amended by striking subsection 
(e).
    (2) Subsection (a)(2) of such section is amended by striking 
``fifty-fifth birthday'' and inserting ``sixty-second birthday''.
    (3)(A) Such section 532, as amended by paragraph (1), is further 
amended by adding at the end the following new subsection (e):
    ``(e) For an original appointment in a grade below major or, in the 
case of the Navy, a grade below lieutenant commander under subsection 
(a), the Secretary of Defense may waive the applicability of the 
requirement of subsection (a)(1) to an alien lawfully admitted to 
permanent residence in the United States when the Secretary determines 
that it is the national security interests of the United States to do 
so.''.
    (B) Section 619(d) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(5) An officer in the grade of captain or, in the case of 
        the Navy, lieutenant who is not a citizen of the United 
        States.''.
    (4) Section 531(a) of such title is amended to read as follows:
    ``(a)(1) Original appointments in the grades of second lieutenant 
through captain in the Regular Army, Regular Air Force, and Regular 
Marine Corps and in the grades of ensign through lieutenant in the 
Regular Navy shall be made by the President. The President may delegate 
to the Secretary of Defense authority to make such appointments.
    ``(2) Original appointments in the grades of major, lieutenant 
colonel, and colonel in the Regular Army, Regular Air Force, and 
Regular Marine Corps and in the grades of lieutenant commander, 
commander, and captain in the Regular Navy shall be made by the 
President, by and with the advice and consent of the Senate.''.
    (b) Repeal of Total Strength Limitation for Active Duty Regular 
Commissioned Officers.--(1) Section 522 of title 10, United States 
Code, is repealed.
    (2) The table of sections at the beginning of chapter 32 of such 
title is amended by striking the item relating to section 522.
    (c) Force Shaping Authority.--(1)(A) Subchapter V of chapter 36 of 
such title is amended by adding at the end the following new section:
``Sec. 647. Force shaping authority
    ``(a) Authority.--The Secretary concerned may, solely for the 
purpose of restructuring an armed force under the jurisdiction of that 
Secretary--
            ``(1) discharge an officer described in subsection (b); or
            ``(2) transfer such an officer from the active-duty list of 
        that armed force to the reserve active-status list of a reserve 
        component of that armed force.
    ``(b) Covered Officers.--(1) The authority under this section may 
be exercised in the case of an officer who--
            ``(A) has completed not more than 5 years of service as a 
        commissioned officer in the armed forces; or
            ``(B) has completed more than 5 years of service as a 
        commissioned officer in the armed forces, but has not completed 
        a minimum service obligation applicable to that member.
    ``(2) In this subsection, the term `minimum service obligation' 
means the initial period of required active duty service together with 
any additional period of required active duty service incurred during 
the initial period of required active duty service.
    ``(c) Appointment of Transferred Officers.--An officer of the 
Regular Army, Regular Air Force, Regular Navy, or Regular Marine Corps 
who is transferred to a reserve active-status list under this section 
shall be discharged from the regular component concerned and appointed 
as a reserve commissioned officer under section 12203 of this title.
    ``(d) Regulations.--The Secretary concerned shall prescribe 
regulations for the exercise of the Secretary's authority under this 
section.''.
    (B) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``647. Force shaping authority.''.
    (2) Section 1174(e)(2)(B) of such title is amended by inserting 
after ``obligated service'' the following: ``, unless the member is an 
officer discharged or released under the authority of section 647 of 
this title''.
    (3) Section 12201(a) of such title is amended--
            (A) by inserting ``(1)'' after ``(a)'';
            (B) in the first sentence, by inserting ``, except as 
        provided in paragraph (2),'' after ``the armed force concerned 
        and''; and
            (C) by adding at the end the following new paragraph:
    ``(2) An officer transferred from the active-duty list of an armed 
force to a reserve active-status list of an armed force under section 
647 of this title is not required to subscribe to the oath referred to 
in paragraph (1) in order to qualify for an appointment under that 
paragraph.''.
    (4) Section 12203 of such title is amended--
            (A) by redesignating subsection (b) as subsection (c); and
            (B) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Subject to the authority, direction, and control of the 
President, the Secretary concerned may appoint as a reserve 
commissioned officer any regular officer transferred from the active-
duty list of an armed force to the reserve active-status list of a 
reserve component under section 647 of this title, notwithstanding the 
requirements of subsection (a).''.
    (5) Section 531 of such title is amended by adding at the end the 
following new subsection:
    ``(c) Subject to the authority, direction, and control of the 
President, an original appointment as a commissioned officer in the 
Regular Army, Regular Air Force, Regular Navy, or Regular Marine Corps 
may be made by the Secretary concerned in the case of a reserve 
commissioned officer upon the transfer of such officer from the reserve 
active-status list of a reserve component of the armed forces to the 
active-duty list of an armed force, notwithstanding the requirements of 
subsection (a).''.
    (d) Active-Duty Ready Reserve Officers Not on Active-Duty List.--
Section 641(1)(F) of such title is amended by striking ``section 
12304'' and inserting ``sections 12302 and 12304''.
    (e) All Regular Officer Appointments for Students Attending the 
University of Health Sciences.--Section 2114(b) of such title is 
amended by striking ``Notwithstanding any other provision of law, they 
shall serve'' and all that follows through ``if qualified,'' and 
inserting ``Notwithstanding any other provision of law, they shall be 
appointed as regular officers in the grade of O-1 and shall serve on 
active duty in that grade. Upon graduation they shall be required to 
serve on active duty''.
    (f) Effective Date.--This section and the amendments made by this 
section shall take effect 180 days after the date of the enactment of 
this Act.

SEC. 512. ELIGIBILITY OF NAVY STAFF CORPS OFFICERS TO SERVE AS DEPUTY 
              CHIEFS OF NAVAL OPERATIONS AND ASSISTANT CHIEFS OF NAVAL 
              OPERATIONS.

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

SEC. 513. ONE-YEAR EXTENSION OF AUTHORITY TO WAIVE JOINT DUTY 
              EXPERIENCE AS ELIGIBILITY REQUIREMENT FOR APPOINTMENT OF 
              CHIEFS OF RESERVE COMPONENTS.

    Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), and 8038(b)(4) of 
title 10, United States Code, are amended by striking ``December 31, 
2004'' and inserting ``December 31, 2005''.

SEC. 514. LIMITATION ON NUMBER OF OFFICERS FROCKED TO MAJOR GENERAL AND 
              REAR ADMIRAL (UPPER HALF).

    Section 777(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (2) by striking ``(d) Limitation on Number of Officers 
        Frocked to Specified Grades.--'' and inserting the following:
    ``(d) Limitation on Number of Officers Frocked to Specified 
Grades.--(1) The total number of brigadier generals and Navy rear 
admirals (lower half) on the active-duty list who are authorized as 
described in subsection (a) to wear the insignia for the grade of major 
general or rear admiral (upper half), as the case may be, may not 
exceed 30.''.

             Subtitle C--Reserve Component Personnel Policy

SEC. 521. REPEAL OF EXCLUSION OF ACTIVE DUTY FOR TRAINING FROM 
              AUTHORITY TO ORDER RESERVES TO ACTIVE DUTY.

    (a) General Authority To Order Reserves to Active Duty.--Section 
12301 of title 10, United States Code, is amended--
            (1) in the first sentence of subsection (a), by striking 
        ``(other than for training)'';
            (2) in subsection (c)--
                    (A) by striking ``(other than for training)'' and 
                inserting ``as described in subsection (a)'' in the 
                first sentence; and
                    (B) by striking ``(other than for training)'' in 
                the second sentence; and
            (3) in subsection (e), by striking ``(other than for 
        training)'' and inserting ``as described in subsection (a)''.
    (b) Ready Reserve 24-Month Callup Authority.--Section 12302 of such 
title is amended by striking ``(other than for training)'' in 
subsections (a) and (c).
    (c) Selected Reserve and Individual Ready Reserve 270-Day Callup 
Authority.--Section 12304(a) of such title is amended by striking 
``(other than for training)''.
    (d) Standby Reserve Callup Authority.--Section 12306 of such title 
is amended--
            (1) in subsection (a), by striking ``active duty (other 
        than for training) only as provided in section 12301 of this 
        title'' and inserting ``active duty only as provided in section 
        12301 of this title, but subject to the limitations in 
        subsection (b)''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``(other than for 
                training)'' and inserting ``under section 12301(a) of 
                this title''; and
                    (B) in paragraph (2), by striking ``no other 
                member'' and all that follows through ``without his 
                consent'' and inserting ``notwithstanding section 
                12301(a) of this title, no other member in the Standby 
                Reserve may be ordered to active duty as an individual 
                under such section without his consent''.

SEC. 522. EXCEPTION TO MANDATORY RETENTION OF RESERVES ON ACTIVE DUTY 
              TO QUALIFY FOR RETIREMENT PAY.

    Section 12686(a) of title 10, United States Code, is amended by 
inserting ``(other than retired pay for non-regular service under 
chapter 1223 of this title)'' after ``a purely military retirement 
system''.

                   Subtitle D--Education and Training

SEC. 531. ONE-YEAR EXTENSION OF ARMY COLLEGE FIRST PILOT PROGRAM.

    Section 573(h) of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 10 U.S.C. 513 note), is amended by 
striking ``September 30, 2004'' and inserting ``December 31, 2005''.

SEC. 532. MILITARY RECRUITER EQUAL ACCESS TO CAMPUS.

    Subsection (b)(1) of section 983 of title 10, United States Code, 
is amended--
            (1) by striking ``entry to campuses'' and inserting 
        ``access to campuses''; and
            (2) by inserting before the semicolon at the end the 
        following: ``in a manner that is at least equal in quality and 
        scope to the degree of access to campuses and to students that 
        is provided to any other employer''.

SEC. 533. EXCLUSION FROM DENIAL OF FUNDS FOR PREVENTING ROTC ACCESS TO 
              CAMPUS OF AMOUNTS TO COVER INDIVIDUAL COSTS OF ATTENDANCE 
              AT INSTITUTIONS OF HIGHER EDUCATION.

    (a) Codification and Extension of Exclusion.--Subsection (d) of 
section 983 of title 10, United States Code, is amended--
            (1) by striking ``The'' after ``(1)'' and inserting 
        ``Except as provided in paragraph (3), the''; and
            (2) by adding at the end the following new paragraph:
    ``(3) Any Federal funding specified in paragraph (1) that is 
provided to an institution of higher education, or to an individual, to 
be available solely for student financial assistance, related 
administrative costs, or costs associated with attendance, may be used 
for the purpose for which the funding is provided.''.
    (b) Conforming Amendments.--Subsections (a) and (b) of such section 
are amended by striking ``(including a grant of funds to be available 
for student aid)''.
    (c) Conforming Repeal of Codified Provision.--Section 8120 of the 
Department of Defense Appropriations Act, 2000 (Public Law 106-79; 10 
U.S.C. 983 note), is repealed.

SEC. 534. TRANSFER OF AUTHORITY TO CONFER DEGREES UPON GRADUATES OF THE 
              COMMUNITY COLLEGE OF THE AIR FORCE.

    (a) Authority of Air University Commander.--Subsection (a) of 
section 9317 of title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) an associate level degree upon graduates of the 
        Community College of the Air Force who fulfill the requirements 
        for that degree.''.
    (b) Termination of Existing Authority.--(1) Paragraph (1) of 
section 9315(c) of such title is amended by striking ``the commander'' 
and all that follows through ``at the level of associate'' and 
inserting ``an academic degree at the level of associate may be 
conferred under section 9317 of this title''.
    (2) Paragraph (2) of such section is amended by striking ``Air 
Education and Training Command of the Air Force'' and inserting ``Air 
University''.
    (c) Conforming and Clerical Amendments.--(1) The heading of section 
9317 of title 10, United States Code, is amended by striking 
``graduate-level degrees'' and inserting ``conferral of degrees''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 901 of such title is amended to read as 
follows:

``9317. Air University: conferral of degrees.''.

           Subtitle E--Decorations, Awards, and Commendations

SEC. 541. AWARD OF MEDAL OF HONOR TO INDIVIDUAL INTERRED IN THE TOMB OF 
              THE UNKNOWNS AS REPRESENTATIVE OF CASUALTIES OF A WAR.

    (a) Award to Individual as Representative.--Chapter 57 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 1134. Medal of honor: award to individual interred in Tomb of 
              the Unknowns as representative of casualties of a war
    ``The medal of honor awarded posthumously to a deceased member of 
the armed forces who, as an unidentified casualty of a particular war 
or other armed conflict, is interred in the Tomb of the Unknowns at 
Arlington National Cemetery, Virginia, is awarded to the member as the 
representative of the members of the armed forces who died in such war 
or other armed conflict and whose remains have not been identified, and 
not to the individual personally.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1134. Medal of honor: award to individual interred in Tomb of the 
                            Unknowns as representative of casualties of 
                            a war.''.

SEC. 542. SEPARATE CAMPAIGN MEDALS FOR OPERATION ENDURING FREEDOM AND 
              FOR OPERATION IRAQI FREEDOM.

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

                      Subtitle F--Military Justice

SEC. 551. REDUCED BLOOD ALCOHOL CONTENT LIMIT FOR OFFENSE OF DRUNKEN 
              OPERATION OF A VEHICLE, AIRCRAFT, OR VESSEL.

    Section 911(b)(3) of title 10, United States Code (article 
111(b)(3) of the Uniform Code of Military Justice), is amended by 
striking ``0.10 grams'' in both places it appears and inserting ``0.08 
grams''.

SEC. 552. WAIVER OF RECOUPMENT OF TIME LOST FOR CONFINEMENT IN 
              CONNECTION WITH A TRIAL.

    Section 972 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) Waiver of Recoupment of Time Lost for Confinement.--The 
Secretary concerned shall waive liability for a period of confinement 
in connection with a trial under subsection (a)(3), or exclusion of a 
period of confinement in connection with a trial under subsection 
(b)(3), in a case upon the occurrence of any of the following events:
            ``(1) For each charge--
                    ``(A) the charge is dismissed before or during 
                trial in a final disposition of the charge; or
                    ``(B) the trial results in an acquittal of the 
                charge.
            ``(2) For each charge resulting in a conviction in such 
        trial--
                    ``(A) the conviction is set aside in a final 
                disposition of such charge, other than in a grant of 
                clemency; or
                    ``(B) a judgment of acquittal or a dismissal is 
                entered upon a reversal of the conviction on appeal.''.

SEC. 553. DEPARTMENT OF DEFENSE POLICY AND PROCEDURES ON PREVENTION AND 
              RESPONSE TO SEXUAL ASSAULTS INVOLVING MEMBERS OF THE 
              ARMED FORCES.

    (a) Comprehensive Policy on Prevention and Response to Sexual 
Assaults.--(1) Not later than January 1, 2005, the Secretary of Defense 
shall develop a comprehensive policy for the Department of Defense on 
the prevention of and response to sexual assaults involving members of 
the Armed Forces.
    (2) The policy shall be based on the recommendations of the 
Department of Defense Task Force on Care for Victims of Sexual Assaults 
and on such other matters as the Secretary considers appropriate.
    (b) Elements of Comprehensive Policy.--The policy developed under 
subsection (a) shall address the following matters:
            (1) Prevention measures.
            (2) Education and training on prevention and response.
            (3) Investigation of complaints by command and law 
        enforcement personnel.
            (4) Medical treatment of victims.
            (5) Confidential reporting of incidents.
            (6) Victim advocacy and intervention.
            (7) Oversight by commanders of administrative and 
        disciplinary actions in response to substantiated incidents of 
        sexual assault.
            (8) Disposition of victims of sexual assault, including 
        review by appropriate authority of administrative separation 
        actions involving victims of sexual assault.
            (9) Disposition of members of the Armed Forces accused of 
        sexual assault.
            (10) Liaison and collaboration with civilian agencies on 
        the provision of services to victims of sexual assault.
            (11) Uniform collection of data on the incidence of sexual 
        assaults and on disciplinary actions taken in substantiated 
        cases of sexual assault.
    (c) Report on Improvement of Capability To Respond to Sexual 
Assaults.--Not later than March 1, 2005, the Secretary of Defense shall 
submit to Congress a proposal for such legislation as the Secretary 
considers necessary to enhance the capability of the Department of 
Defense to address matters relating to sexual assaults involving 
members of the Armed Forces.
    (d) Application of Comprehensive Policy To Military Departments.--
The Secretary shall ensure that, to the maximum extent practicable, the 
policy developed under subsection (a) is implemented uniformly by the 
military departments.
    (e) Policies and Procedures of Military Departments.--(1) Not later 
than March 1, 2005, the Secretaries of the military departments shall 
prescribe regulations, or modify current regulations, on the policies 
and procedures of the military departments on the prevention of and 
response to sexual assaults involving members of the Armed Forces in 
order--
            (A) to conform such policies and procedures to the policy 
        developed under subsection (a); and
            (B) to ensure that such policies and procedures include the 
        elements specified in paragraph (2).
    (2) The elements specified in this paragraph are as follows:
            (A) A program to promote awareness of the incidence of 
        sexual assaults involving members of the Armed Forces.
            (B) A program to provide victim advocacy and intervention 
        for members of the Armed Force concerned who are victims of 
        sexual assault, which program shall make available, at home 
        stations and in deployed locations, trained advocates who are 
        readily available to intervene on behalf of such victims.
            (C) Procedures for members of the Armed Force concerned to 
        follow in the case of an incident of sexual assault involving a 
        member of such Armed Force, including--
                    (i) specification of the person or persons to whom 
                the alleged offense should be reported;
                    (ii) specification of any other person whom the 
                victim should contact;
                    (iii) procedures for the preservation of evidence; 
                and
                    (iv) procedures for confidential reporting and for 
                contacting victim advocates.
            (D) Procedures for disciplinary action in cases of sexual 
        assault by members of the Armed Force concerned.
            (E) Other sanctions authorized to be imposed in 
        substantiated cases of sexual assault, whether forcible or 
        nonforcible, by members of the Armed Force concerned.
            (F) Training on the policies and procedures for all members 
        of the Armed Force concerned, including specific training for 
        members of the Armed Force concerned who process allegations of 
        sexual assault against members of such Armed Force.
            (G) Any other matters that the Secretary of Defense 
        considers appropriate.
    (f) Annual Assessment of Policies and Procedures.--Not later than 
January 15, 2006, and each year thereafter, each Secretary of a 
military department shall conduct an assessment of the implementation 
during the preceding fiscal year of the policies and procedures of such 
department on the prevention of and response to sexual assaults 
involving members of the Armed Forces in order to determine the 
effectiveness of such policies and procedures during such fiscal year 
in providing an appropriate response to such sexual assaults.
    (g) Annual Reports.--(1) Not later than April 1, 2005, and January 
15 of each year thereafter, each Secretary of a military department 
shall submit to the Secretary of Defense a report on the sexual 
assaults involving members of the Armed Force concerned during the 
preceding year.
    (2) Each report on an Armed Force under paragraph (1) shall contain 
the following:
            (A) The number of sexual assaults against members of the 
        Armed Force, and the number of sexual assaults by members of 
        the Armed Force, that were reported to military officials 
        during the year covered by such report, and the number of the 
        cases so reported cases that were substantiated.
            (B) A synopsis of and the disciplinary action taken in each 
        substantiated case.
            (C) The policies, procedures, and processes implemented by 
        the Secretary concerned during the year covered by such report 
        in response to incidents of sexual assault involving members of 
        the Armed Force concerned.
            (D) A plan for the actions that are to be taken in the year 
        following the year covered by such report on the prevention of 
        and response to sexual assault involving members of the Armed 
        Forces concerned.
    (3) Each report under paragraph (1) in 2006, 2007, and 2008 shall 
also include the assessment conducted by the Secretary concerned under 
subsection (f).
    (4) The Secretary of Defense shall transmit to the Committees on 
Armed Services of the Senate and the House of Representatives each 
report submitted to the Secretary under this subsection, together with 
the comments of the Secretary on each such report. The Secretary shall 
transmit the report on 2004 not later than May 1, 2005, and shall 
transmit the report on any year after 2004 not later than March 15 of 
the year following such year.
    (h) Sexual Assault Defined.--In this section, the term ``sexual 
assault'' includes rape, acquaintance rape, sexual assault, and other 
criminal sexual offenses.

Subtitle G--Scope of Duties of Ready Reserve Personnel in Inactive Duty 
                                 Status

SEC. 561. REDESIGNATION OF INACTIVE-DUTY TRAINING TO ENCOMPASS 
              OPERATIONAL AND OTHER DUTIES PERFORMED BY RESERVES WHILE 
              IN INACTIVE DUTY STATUS.

    (a) Redesignation of Duty Status.--(1) The duty status applicable 
to members of the reserve components of the Armed Forces that is known 
as ``inactive-duty training'' is redesignated as ``inactive duty''.
    (2) Any reference that is made in any law, regulation, document, 
paper, or other record of the United States to inactive-duty training, 
as such term applies to members of the reserve components of the Armed 
Forces, shall be deemed to be a reference to inactive duty.
    (b) Title 10 Conforming and Clerical Amendments.--(1) The following 
provisions of title 10, United States Code, are amended by striking 
``inactive-duty training'' each place it appears and inserting 
``inactive duty'': sections 101(d)(7), 802(a)(3), 802(d)(2)(B), 
802(d)(5)(B), 803(d), 936(a), 936(b), 976(a)(1)(C), 1061(b), 1074a(a), 
1076(a)(2)(B), 1076(a)(2)(C), 1204(2), 1448(f)(1)(B), 1476(a)(1)(B), 
1476(a)(2)(A), 1481(a)(2), 9446(a)(3), 12602(a)(3), 12602(b)(3), and 
18505(a).
    (2) The following provisions of such title are amended by striking 
``inactive duty training'' each place it appears and inserting 
``inactive duty'': sections 1086(c)(2)(B), 1175(e)(2), 1475(a)(2), 
1475(a)(3), 2031(d)(2), and 10204(b).
    (3) Section 1206(2) of such title is amended by striking ``in line 
of duty--'' and all that follows through ``residence; or'' and 
inserting the following: ``in line of duty while--
                    ``(A) performing active duty or inactive duty;
                    ``(B) traveling directly to or from the place at 
                which such duty is performed; or
                    ``(C) remaining overnight immediately before the 
                commencement of inactive duty, or while remaining 
                overnight between successive periods of inactive-duty 
                training, at or in the vicinity of the site of the 
                inactive duty, if the site is outside reasonable 
                commuting distance of the member's residence;''.
    (4) Section 1471(b)(3)(A) of such title is amended by striking 
``for training'' in clauses (ii) and (iii).
    (5) Section 1478(a) of such title is amended--
            (A) in paragraph (3)--
                    (i) by striking ``from inactive duty training'' and 
                inserting ``from the location of inactive duty''; and
                    (ii) by striking ``on inactive duty training'' and 
                inserting ``on inactive duty'';
            (B) in paragraph (7)--
                    (i) by striking ``inactive duty training'' and 
                inserting ``inactive duty''; and
                    (ii) by striking ``or training''; and
            (C) in paragraph (8), by striking ``inactive duty 
        training'' both places it appears and inserting ``inactive 
        duty''.
    (6) Section 12317 of such title is amended by striking ``, or to 
participate in inactive duty training,'' and inserting ``inactive 
duty''.
    (7) Section 12319(c) of such title is amended--
            (A) by striking ``inactive-duty training'' both places it 
        appears and inserting ``inactive duty''; and
            (B) by striking ``that training)'' and inserting ``that 
        duty)''.
    (8) Section 12603(a) of such title is amended--
            (A) by striking ``inactive duty training'' and inserting 
        ``inactive duty''; and
            (B) by striking ``the training'' and inserting ``such 
        duty''.
    (9) Section 12604(a) of such title is amended by striking ``to 
inactive-duty training'' and inserting ``to perform inactive duty''.
    (10)(A) The headings for sections 1204, 1206, 12603, and 18505 of 
such title are amended by striking ``inactive-duty training'' and 
inserting ``inactive duty''.
    (B) The heading for section 1475 of such title is amended by 
striking ``training''.
    (C) The heading for section 1476 of such title is amended by 
striking ``or training''.
    (D) The heading for section 12604 of such title is amended by 
striking ``attending inactive-duty training'' and inserting 
``performing inactive duty''.
    (11)(A) The table of sections at the beginning of chapter 61 of 
such title is amended--
            (i) by striking the item relating to section 1204 and 
        inserting the following:

``1204. Members on active duty for 30 days or less or on inactive duty: 
                            retirement.'';
        and
            (ii) by striking the item relating to section 1206 and 
        inserting the following:

``1206. Members on active duty for 30 days or less or on inactive duty: 
                            separation.''.
    (B) The table of sections at the beginning of subchapter II of 
chapter 75 of such title is amended by striking the items relating to 
sections 1475 and 1476 and inserting the following:

``1475. Death gratuity: death of members on active duty or inactive 
                            duty and of certain other persons.
``1476. Death gratuity: death after discharge or release from duty.''.
    (C) The table of sections at the beginning of chapter 1217 of such 
title is amended by striking the items relating to sections 12603 and 
12604 and inserting the following:

``12603. Attendance of inactive duty assemblies: commercial travel at 
                            Federal supply schedule rates.
``12604. Billeting in Department of Defense facilities: Reserves 
                            performing inactive duty.''.
    (D) The item relating to section 18505 in the table of sections at 
the beginning of chapter 1805 of such title is amended to read as 
follows:

``18505. Reserves traveling for inactive duty: space-required travel on 
                            military aircraft.''.
    (c) Title 14 Conforming Amendment.--Sections 704 and 705(a) of 
title 14, United States Code, are amended by striking ``inactive-duty 
training'' and inserting ``inactive duty''.
    (d) Title 37 Conforming and Clerical Amendments.--(1) Sections 
101(22), 205(e)(2)(A), and 433(d) of title 37, United States Code, are 
amended by striking ``inactive-duty training'' each place it appears 
and inserting ``inactive duty''.
    (2) Section 204 of such title is amended--
            (A) in subsection (g)(1)--
                    (i) in subparagraphs (B) and (D), by striking 
                ``inactive-duty training'' each place it appears and 
                inserting ``inactive duty'' and
                    (ii) in subparagraph (C), by striking ``or 
                training''; and
            (B) in subsection (h)(1)--
                    (i) in subparagraphs (B) and (D), by striking 
                ``inactive-duty training'' each place it appears and 
                inserting ``inactive duty''; and
                    (ii) in subparagraph (C), by striking ``or 
                training''; and
    (3) Section 206 of such title is amended--
            (A) in subsection (a)(3)--
                    (i) by striking clause (ii) of subparagraph (A) and 
                inserting the following:
                            ``(ii) inactive duty;'';
                    (ii) in subparagraph (B), by striking ``or 
                training''; and
                    (iii) in subparagraph (C), by striking ``inactive-
                duty training'' each place it appears and inserting 
                ``inactive duty''; and
            (B) in subsection (b)(1), by inserting ``or duty'' after 
        ``kind of training''.
    (4) Section 308d(a) of such title is amended by striking ``for 
training''.
    (5) Section 415 of such title is amended--
            (A) in subsection (a)(3), by striking ``inactive-duty 
        training'' and inserting ``inactive duty''; and
            (B) in subsection (c)(1), by striking ``on inactive duty 
        training status'' and inserting ``inactive duty''.
    (6) Section 552 of such title is amended--
            (A) in subsection (a)--
                    (i) by striking ``performing inactive-duty 
                training,'' in the matter preceding paragraph (1), and 
                inserting ``inactive duty,''; and
                    (ii) by striking ``or inactive-duty training'' in 
                the second sentence and inserting ``or inactive duty''; 
                and
            (B) in subsection (d), by striking ``inactive-duty 
        training'' and inserting ``on inactive duty''.
    (7)(A) The heading for section 206 of such title is amended by 
striking ``inactive-duty training'' and inserting ``inactive duty''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 3 of such title is amended to read as follows:

``206. Reserves; members of National Guard: inactive duty.''.
    (8) The heading for subsection (c) of section 305b of such title is 
amended by striking ``Duty
Training.--'' and inserting ``Duty.--''.
    (9) The heading for subsection (e) of section 320 of such title is 
amended by striking ``Duty
Training.--'' and inserting ``Duty.--''.
    (e) Public Law 108-136.--Section 644(c) of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1518) is amended by striking ``inactive-duty training'' and inserting 
``inactive duty''.

SEC. 562. REPEAL OF UNNECESSARY DUTY STATUS DISTINCTION FOR FUNERAL 
              HONORS DUTY.

    (a) Title 10 Duty.--(1) Section 12503 of title 10, United States 
Code, is repealed.
    (2) Section 12552 of such title is repealed.
    (b) Title 32 Duty.--(1) Section 115 of title 32, United States 
Code, is repealed.
    (2) Section 114 of such title is amended by striking the second 
sentence.
    (c) Title 10 Conforming and Clerical Amendments.--Title 10, United 
States Code, is amended as follows:
            (1) Section 1074a(a) is amended--
                    (A) in paragraph (1)--
                            (i) by inserting ``or'' at the end of 
                        subparagraph (A);
                            (ii) by striking ``; or'' at the end of 
                        subparagraph (B) and inserting a period; and
                            (iii) by striking subparagraph (C);
                    (B) in paragraph (2)--
                            (i) by inserting ``or'' at the end of 
                        subparagraph (A);
                            (ii) by striking ``; or'' at the end of 
                        subparagraph (B) and inserting a period; and
                            (iii) by striking subparagraph (C); and
                    (C) by striking paragraph (4).
            (2) Section 1076(a)(2) is amended by striking subparagraph 
        (E).
            (3) Section 1204(2) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (A)(iii);
                    (B) by striking ``or'' at the end of subparagraph 
                (B)(iii) and inserting a period; and
                    (C) by striking subparagraph (C).
            (4) Section 1206(2) is amended by striking ``(B) while the 
        member--'' and all that follows through ``immediately before so 
        serving;''.
            (5) Section 1481(a)(2) is amended--
                    (A) by inserting ``or'' at the end of subparagraph 
                (D);
                    (B) by striking ``; or'' at the end of subparagraph 
                (E) and inserting a period; and
                    (C) by striking subparagraph (F).
            (6) Section 12732(a)(2)(E) is amended by inserting ``(as 
        such section 12503 or 115, respectively, was in effect before 
        the date of the enactment of the National Defense Authorization 
        Act for Fiscal Year 2005)'' after ``section 115 of title 32''.
            (7)(A) The table of sections at the beginning of chapter 
        1213 is amended by striking the item relating to section 12503.
            (B) The table of sections at the beginning of chapter 1215 
        is amended by striking the item relating to 12552.
    (c) Title 32 Clerical Amendment.--The table of sections at the 
beginning of chapter 1 of title 32, United States Code, is amended by 
striking the item relating to section 115.
    (d) Title 37 Conforming Amendments.--Section 204 of title 37, 
United States Code, is amended--
            (1) in subsection (g)(1)--
                    (A) by inserting ``or'' at the end of subparagraph 
                (C);
                    (B) by striking ``; or'' at the end of subparagraph 
                (D) and inserting a period; and
                    (C) by striking subparagraph (E); and
            (2) in subsection (h)(1)--
                    (A) by inserting ``or'' at the end of subparagraph 
                (C);
                    (B) by striking ``; or'' at the end of subparagraph 
                (D) and inserting a period; and
                    (C) by striking subparagraph (E).

SEC. 563. CONFORMING AMENDMENTS TO OTHER LAWS REFERRING TO INACTIVE-
              DUTY TRAINING.

    (a) Title 5.--Section 6323(a)(1) of title 5, United States Code, is 
amended by striking ``inactive-duty training'' and inserting ``inactive 
duty''.
    (b) Title 38.--(1) The following provisions of title 38, United 
States Code, are amended by striking ``inactive duty training'' each 
place it appears and inserting ``inactive duty'': sections 106(d)(1), 
1112(c)(3)(A)(ii), 1302(b)(2), 1312(a)(2)(A), 1965(3), 1965(4), 
1965(5), 1967(a)(1)(B), 1967(b), 1969(a)(3), 1977(e), 2402(2), 
4303(13), and 4303(16).
    (2) Section 1968 of such title is amended--
            (A) by striking ``inactive duty training'' and inserting 
        ``inactive duty''--
                    (i) in subsection (a), in the matter preceding 
                paragraph (1);
                    (ii) in subsection (a)(3); and
                    (iii) in subsection (b)(2); and
            (B) in subsection (a)(3)--
                    (i) by striking ``such scheduled training period'' 
                and inserting ``such period of scheduled duty'';
                    (ii) by striking ``the date of such training'' and 
                inserting ``the date on which such duty period ends''; 
                and
                    (iii) by striking ``such training terminated'' and 
                inserting ``on which such duty period ends''.
    (c) Internal Revenue Code of 1986.--(1) Section 3121(m) of the 
Internal Revenue Code of 1986 is amended by striking ``inactive duty 
training'' in paragraphs (1)(B) and (3) and inserting ``inactive 
duty''.
    (2) The heading for paragraph (3) of such section is amended to 
read as follows: ``Inactive duty.--''.

SEC. 564. CONFORMING AMENDMENTS TO OTHER LAWS REFERRING TO FUNERAL 
              HONORS DUTY.

    (a) Title 5.--Section 6323(a)(1) of title 5, United States Code, is 
amended by striking ``funeral honors duty (as described in section 
12503 of title 10 and section 115 of title 32),''.
    (b) Title 38.--Section 4303(13) of title 38, United States Code, is 
amended--
            (1) by inserting ``and'' after ``full-time National Guard 
        duty,''; and
            (2) by striking ``, and a period for which a person is 
        absent from employment for the purpose of performing funeral 
        honors duty as authorized by section 12503 of title 10 or 
        section 115 of title 32.''.

                       Subtitle H--Other Matters

SEC. 571. ACCESSION OF PERSONS WITH SPECIALIZED SKILLS.

    (a) Initial Service Obligation.--Subsection (a) of section 651 of 
title 10, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``deferred under the next to the last 
        sentence of section 6(d)(1) of the Military Selective Service 
        Act (50 U.S.C. App. 456(d)(1))'' and inserting ``described in 
        paragraph (3)''; and
            (3) by adding at the end the following new paragraphs:
    ``(2) The Secretary concerned may--
            ``(A) waive the applicability of paragraph (1) to a person 
        who, as determined by the Secretary concerned, is accessed into 
        an armed force under the jurisdiction of that Secretary based 
        on unique skills acquired in a civilian occupation and is to 
        serve in that armed force in a specialty requiring those 
        skills; and
            ``(B) require any alternative period of obligated service 
        that the Secretary considers appropriate to meet the needs of 
        the armed force that such person is entering.
    ``(3) The requirement under paragraph (1) does not apply to a 
person who is deferred under the next to the last sentence of section 
6(d)(1) of the Military Selective Service Act (50 U.S.C. App. 
456(d)(1)).
    (b) Basic Training Period.--Subsection (c) of section 671 of such 
title is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by striking ``(c)(1)'' and all that follows through 
        ``Any such period'' in the second sentence of paragraph (1) and 
        inserting the following:
    ``(c)(1) A period of basic training (or equivalent training) 
shorter than 12 weeks may be established by the Secretary concerned for 
members of the armed forces who, as determined by the Secretary under 
regulations prescribed under paragraph (3)--
            ``(A) have been credentialed in a medical profession or 
        occupation and are serving in a health-care occupational 
        specialty; or
            ``(B) have unique skills acquired in a civilian occupation 
        and are to serve in a military specialty or position requiring 
        those skills.
    ``(2) Any period of basic training under paragraph (1)''.

SEC. 572. FEDERAL WRITE-IN BALLOTS FOR ABSENTEE MILITARY VOTERS LOCATED 
              IN THE UNITED STATES.

    (a) Duties of Presidential Designee.--Section 101(b)(3) of the 
Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 
1973ff(b)(3)) is amended by striking ``overseas voters'' and inserting 
``absent uniformed services voters and overseas voters''.
    (b) Federal Write-In Absentee Ballot.--Section 103 of such Act (42 
U.S.C. 1973ff-2) is amended--
            (1) in subsection (a), by striking ``overseas voters'' and 
        inserting ``absent uniformed services voters and overseas 
        voters'';
            (2) in subsection (b), by striking the second sentence and 
        inserting the following new sentence: ``A Federal write-in 
        absentee ballot of an absent uniformed services voter or 
        overseas voter shall not be counted--
            ``(1) if the application of the absent uniformed services 
        voter or overseas voter for a State absentee ballot is received 
        by the appropriate State election official after the later of--
                    ``(A) the deadline of the State for receipt of such 
                application; or
                    ``(B) the date that is 30 days before the general 
                election; or
            ``(2) if a State absentee ballot of the absent uniformed 
        services voter or overseas voter is received by the appropriate 
        State election official not later than the deadline for receipt 
        of the State absentee ballot under State law.'';
            (3) in subsection (c)(1), by striking ``overseas voter'' 
        and inserting ``absent uniformed services voter or overseas 
        voter'';
            (4) in subsection (d), by striking ``overseas voter'' both 
        places it appears and inserting ``absent uniformed services 
        voter or overseas voter''; and
            (5) in subsection (e)(2), by striking ``overseas voters'' 
        and inserting ``absent uniformed services voters and overseas 
        voters''.
    (c) Conforming Amendments.--(1) The heading of section 103 of such 
Act is amended to read as follows:

``SEC. 103. FEDERAL WRITE-IN ABSENTEE BALLOT IN GENERAL ELECTIONS FOR 
              FEDERAL OFFICE FOR ABSENT UNIFORMED SERVICES VOTERS AND 
              OVERSEAS VOTERS.''.

    (2) The subsection caption for subsection (d) of such section is 
amended by striking ``Overseas Voter'' and inserting ``Absent Uniformed 
Services Voter or Overseas Voter''.

SEC. 573. RENAMING OF NATIONAL GUARD CHALLENGE PROGRAM AND INCREASE IN 
              MAXIMUM FEDERAL SHARE OF COST OF STATE PROGRAMS UNDER THE 
              PROGRAM.

    (a) Renaming.--The text of section 509 of title 32, United States 
Code, is amended by striking ``National Guard Challenge Program'' each 
place it appears and inserting ``National Guard Youth Challenge 
Program''.
    (b) Increase in Maximum Federal Share of Cost of State Programs.--
Subsection (d) of such section is amended by striking paragraphs (1), 
(2), (3), and (4), and inserting the following new paragraphs:
            ``(1) for fiscal year 2004, 60 percent of the costs of 
        operating the State program during that year;
            ``(2) for fiscal year 2005, 65 percent of the costs of 
        operating the State program during that year;
            ``(3) for fiscal year 2006, 70 percent of the costs of 
        operating the State program during that year; and
            ``(4) for fiscal year 2007 and each subsequent fiscal year, 
        75 percent of the costs of operating the State program during 
        such year.''.
    (c) Conforming and Clerical Amendments.--(1) The heading of such 
section is amended to read as follows:
``Sec. 509. National Guard Youth Challenge Program of opportunities for 
              civilian youth''.
    (2) The table of sections at the beginning of chapter 5 of such 
title is amended by striking the item relating to section 509 and 
inserting the following new item:

``509. National Guard Youth Challenge Program of opportunities for 
                            civilian youth.''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. GEOGRAPHIC BASIS FOR HOUSING ALLOWANCE DURING SHORT-
              ASSIGNMENT PERMANENT CHANGES OF STATION FOR EDUCATION OR 
              TRAINING.

    (a) Authority.--Paragraph (3) of subsection (d) of section 403 of 
title 37, United States Code, is amended by adding at the end the 
following new subparagraph:
            ``(C) In the case of a member who is reassigned for a 
        permanent change of station or permanent change of assignment 
        from a duty station within the continental United States to 
        another duty station within the continental United States for a 
        period of not more than one year for the purpose of 
        participating in professional military education or training 
        classes, the amount of the basic allowance for housing for the 
        member may be based on whichever of the following areas the 
        Secretary concerned determines to provide the more equitable 
        basis for the allowance:
                    ``(i) The area of the duty station to which the 
                member is reassigned.
                    ``(ii) The area of the member's last duty station, 
                but only if, and for the period that, the member's 
                dependents reside in that area on and after the date of 
                the member's departure for the duty station to which 
                the member is reassigned.''.
    (b) Conforming Amendment.--The heading of such subsection is 
amended by striking ``Are Unable To'' and inserting ``Do Not''.

SEC. 602. IMMEDIATE LUMP-SUM REIMBURSEMENT FOR UNUSUAL NONRECURRING 
              EXPENSES INCURRED FOR DUTY OUTSIDE THE CONTINENTAL UNITED 
              STATES.

    Section 405 of title 37, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Nonrecurring Expenses.--(1) The Secretary concerned may pay a 
member of the uniformed services on duty as described in subsection (a) 
a reimbursement for a nonrecurring expense incurred by the member 
incident to such duty that--
            ``(A) is directly related to the conditions or location of 
        the duty;
            ``(B) is of a nature or a magnitude not normally incurred 
        by members of the uniformed services on duty inside the 
        continental United States; and
            ``(C) is not included in the per diem determined under 
        subsection (b) as payable to the member under subsection (a).
    ``(2) Any reimbursement payable to a member under paragraph (1) is 
in addition to a per diem payable to that member under subsection 
(a).''.

SEC. 603. PERMANENT INCREASE IN AUTHORIZED AMOUNT OF FAMILY SEPARATION 
              ALLOWANCE.

    (a) Permanent Amount.--Subsection (a)(1) of section 427 of title 
37, United States Code, is amended by striking ``$100'' and inserting 
``$250''.
    (b) Repeal of Temporary Authority.--Subsection (e) of such section 
is repealed.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the earlier of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) January 1, 2005.

           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(g) of title 
37, United States Code, is amended by striking ``December 31, 2004'' 
and inserting ``December 31, 2005''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2004'' and inserting ``December 31, 2005''.
    (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.
    (f) Prior Service Enlistment Bonus.--Section 308i(f) of such title 
is amended by striking ``December 31, 2004'' and inserting ``December 
31, 2005''.

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, 
2004'' and inserting ``December 31, 2005''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2005'' and inserting ``January 1, 
2006''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2004'' and inserting ``December 31, 2005''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2004'' 
and inserting ``December 31, 2005''.
    (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, 2004'' and inserting ``December 31, 
2005''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.

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, 2004'' and inserting ``December 31, 
2005''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2004'' and inserting ``December 
31, 2005''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.

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, 2004'' and 
inserting ``December 31, 2005''.
    (b) Assignment Incentive Pay.--Section 307a(f) of such title is 
amended by striking ``December 31, 2005'' and inserting ``December 31, 
2006''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (d) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2004'' and inserting 
``December 31, 2005''.
    (e) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2004'' and inserting ``December 31, 2005''.
    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2004'' and 
inserting ``December 31, 2005''.

SEC. 615. REDUCED SERVICE OBLIGATION FOR NURSES RECEIVING NURSE 
              ACCESSION BONUS.

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

SEC. 616. ASSIGNMENT INCENTIVE PAY.

    (a) Discontinuation Upon Commencement of Terminal Leave.--(1) 
Subsection (e) of section 307a of title 37, United States Code, is 
amended by striking ``absence of the member for authorized leave.'' and 
inserting the following:
            ``(2) absence of the member for authorized leave, other 
        than leave authorized for a period ending upon the discharge of 
        the member or the release of the member from active duty.''.
    (2) Such subsection is further amended by striking ``by reason of'' 
and all that follows through ``pursuant to orders or'' and inserting 
``by reason of--
            ``(1) temporary duty performed by the member pursuant to 
        orders; or''.
    (b) Discretionary Written Agreements.--Subsection (b) of such 
section is amended to read as follows:
    ``(b) Written Agreement.--The Secretary concerned may require a 
member to enter into a written agreement with the Secretary in order to 
qualify for the incentive pay under this section. A written agreement 
under this subsection shall set forth the period for which the 
incentive pay is to be provided and the monthly rate at which the 
incentive pay is to be paid.''.
    (c) Effective Date and Applicability.--(1) The amendments made by 
subsection (a) shall take effect on October 1, 2004.
    (2) Paragraph (2) of section 307a(e) of title 37, United States 
Code, shall apply with respect to authorized leave for days after 
September 30, 2004.

SEC. 617. PERMANENT INCREASE IN AUTHORIZED AMOUNT OF HOSTILE FIRE AND 
              IMMINENT DANGER SPECIAL PAY.

    (a) Permanent Amount.--Subsection (a) of section 310 of title 37, 
United States Code, is amended by striking ``$150'' in the matter 
preceding paragraph (1) and inserting ``$225''.
    (b) Repeal of Temporary Authority.--Subsection (e) of such section 
is repealed.
    (c) Effective Date.--This section and the amendments made by this 
section shall take effect on the earlier of--
            (1) the first day of the first month that begins after the 
        date of the enactment of this Act; or
            (2) January 1, 2005.

SEC. 618. ELIGIBILITY OF ENLISTED MEMBERS TO QUALIFY FOR CRITICAL 
              SKILLS RETENTION BONUS WHILE SERVING ON INDEFINITE 
              REENLISTMENT.

    Paragraph (2) of section 323(a) of title 37, United States Code, is 
amended to read as follows:
            ``(2) in the case of an enlisted member--
                    ``(A) the member, if serving under an enlistment 
                for a definite period--
                            ``(i) reenlists for a period of at least 
                        one year; or
                            ``(ii) voluntarily extends the member's 
                        enlistment for a period of at least one year; 
                        or
                    ``(B) the member, if serving under an enlistment 
                for an indefinite period, enters into a written 
                agreement with the Secretary concerned to remain on 
                active duty for at least one year under such 
                enlistment.''.

SEC. 619. CLARIFICATION OF EDUCATIONAL PURSUITS QUALIFYING FOR SELECTED 
              RESERVE EDUCATION LOAN REPAYMENT PROGRAM FOR HEALTH 
              PROFESSIONS OFFICERS.

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

SEC. 620. BONUS FOR CERTAIN INITIAL SERVICE OF COMMISSIONED OFFICERS IN 
              THE SELECTED RESERVE.

    (a) Authority.--Chapter 5 of title 37, United States Code, is 
amended by inserting after section 308i the following new section:
``Sec. 308j. Special pay: bonus for certain initial service of 
              commissioned officers in the Selected Reserve
    ``(a) Affiliation Bonus.--(1) The Secretary concerned may pay an 
affiliation bonus under this section to an eligible commissioned 
officer in any of the armed forces who enters into an agreement with 
the Secretary to serve, for the period specified in the agreement, in 
the Selected Reserve of the Ready Reserve of an armed force under the 
Secretary's jurisdiction--
            ``(A) in a critical officer skill designated under 
        paragraph (3); or
            ``(B) to meet a manpower shortage in--
                    ``(i) a unit of that Selected Reserve; or
                    ``(ii) a particular pay grade in that armed force.
    ``(2) A commissioned officer is eligible for an affiliation bonus 
under this section if the officer--
            ``(A) either--
                    ``(i) is serving on active duty for a period of 
                more than 30 days; or
                    ``(ii) is a member of a reserve component not on 
                active duty and, if the member formerly served on 
                active duty, was released from active duty under 
                honorable conditions;
            ``(B) has not previously served in the Selected Reserve of 
        the Ready Reserve; and
            ``(C) is not entitled to receive retired or retainer pay.
    ``(3)(A) The Secretary concerned shall designate for an armed force 
under the Secretary's jurisdiction the critical officer skills to which 
the bonus authority under this subsection is to be applied.
    ``(B) A skill may be designated as a critical officer skill for an 
armed force under subparagraph (A) if, to meet requirements of that 
armed force, it is critical for that armed force to have a sufficient 
number of officers who are qualified in that skill.
    ``(4) An affiliation bonus payable pursuant to an agreement under 
this section to an eligible officer accrues on the date on which the 
person is assigned to a unit or position in the Selected Reserve 
pursuant to such agreement.
    ``(b) Accession Bonus.--(1) The Secretary concerned may pay an 
accession bonus under this section to an eligible person who enters 
into an agreement with the Secretary--
            ``(A) to accept an appointment as a commissioned officer in 
        the armed forces; and
            ``(B) to serve in the Selected Reserve of the Ready Reserve 
        in a skill designated under paragraph (2) for a period 
        specified in the agreement.
    ``(2)(A) The Secretary concerned shall designate for an armed force 
under the Secretary's jurisdiction the officer skills to which the 
authority under this subsection is to be applied.
    ``(B) A skill may be designated for an armed force under 
subparagraph (A) if, to mitigate a current or projected significant 
shortage of personnel in that armed force who are qualified in that 
skill, it is critical to increase the number of persons accessed into 
that armed force who are qualified in that skill or are to be trained 
in that skill.
    ``(3) An accession bonus payable to a person pursuant to an 
agreement under this section accrues on the date on which that 
agreement is accepted by the Secretary concerned.
    ``(c) Period of Obligated Service.--An agreement entered into with 
the Secretary concerned under this section shall require the person 
entering into that agreement to serve in the Selected Reserve for a 
specified period. The period specified in the agreement shall be any 
period not less than three years that the Secretary concerned 
determines appropriate to meet the needs of the reserve component in 
which the service is to be performed.
    ``(d) Amount.--The amount of a bonus under this section may be any 
amount not in excess of $6,000 that the Secretary concerned determines 
appropriate.
    ``(e) Payment.--Upon acceptance of a written agreement by the 
Secretary concerned under this section, the total amount of the bonus 
payable under the agreement becomes fixed. The agreement shall specify 
whether the bonus is to be paid in one lump sum or in installments.
    ``(f) Relation to Other Accession Bonus Authority.--No person may 
receive an affiliation bonus or accession bonus under this section and 
financial assistance under chapter 1608, 1609, or 1611 of title 10, or 
under section 302g of this title, for the same period of service.
    ``(g) Repayment for Failure To Commence or Complete Obligated 
Service.--(1) A person who, after receiving all or part of the bonus 
under an agreement entered into by that person under this section, does 
not accept a commission as an officer or does not commence to 
participate or does not satisfactorily participate in the Selected 
Reserve for the total period of service specified in the agreement 
shall repay to the United States such compensation or benefit, except 
under conditions prescribed by the Secretary concerned.
    ``(2) The Secretary concerned shall include in each agreement 
entered into by the Secretary under this section the requirements that 
apply for any repayment under this subsection, including the method for 
computing the amount of the repayment and any exceptions.
    ``(3) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States. A 
discharge in bankruptcy under title 11 that is entered less than five 
years after the termination of an agreement entered into under this 
section does not discharge a person from a debt arising under an 
agreement entered into under this subsection or a debt arising under 
paragraph (1).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``308j. Special pay: bonus for certain initial service of commissioned 
                            officers in the Selected Reserve.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY MEMBERS TO 
              ATTEND BURIAL CEREMONIES OF MEMBERS WHO DIE ON DUTY.

    (a) Authorized Travel Destination.--Subsection (a)(1) of section 
411f of title 37, United States Code, is amended by inserting before 
the period at the end the following: ``at the location determined under 
subsection (a)(8) or (d)(2) of section 1482 of title 10''.
    (b) Limitation on Amount.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Limitation on Amount.--Allowances for travel under subsection 
(a) may not exceed the rates for two days and the time necessary for 
such travel.''.
    (c) Unconditional Eligibility of Deceased's Parents.--Subsection 
(c)(1)(C) of such section is amended by striking ``If no person 
described in subparagraph (A) or (B) is provided travel and 
transportation allowances under subsection (a)(1), the'' and inserting 
``The''.

SEC. 632. LODGING COSTS INCURRED IN CONNECTION WITH DEPENDENT STUDENT 
              TRAVEL.

    (a) Authority.--Section 430(b)(1) of title 37, United States Code, 
is amended--
            (1) by inserting ``(A)'' after ``(b) Allowance 
        Authorized.--(1)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) The allowance authorized under subparagraph (A) for an 
eligible dependent's travel may include reimbursement for costs that 
are incurred by or for the dependent for lodging of the dependent that 
is necessitated by an interruption in the travel caused by 
extraordinary circumstances prescribed in the regulations under 
subsection (a). The amount of a reimbursement payable under this 
subparagraph shall be a rate that is applicable to the circumstances 
under regulations prescribed by the Secretaries concerned.''.
    (b) Effective Date and Applicability.--The amendments made by 
subsection (a) shall take effect on October 1, 2004, and shall apply 
with respect to lodging that commences on or after such date.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. SPECIAL RULE FOR COMPUTING THE HIGH-36 MONTH AVERAGE FOR 
              DISABLED MEMBERS OF RESERVE COMPONENTS.

    (a) Computation of High 36-Month Average.--Subsection (c) of 
section 1407 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
            ``(3) Special rule for reserve component members.--In the 
        application of paragraphs (1) and (2) to a member of a reserve 
        component of a uniformed service who is entitled to retired pay 
        under section 1201 or 1202 of this title, each month during 
        which the member performed duty for which basic pay is paid 
        under section 203 of title 37 or compensation is paid under 
        section 206 of such title shall be treated as if it were one 
        month of active service.''.
    (b) Effective Dates and Applicability.--(1) Paragraph (3) of 
section 1407(c) of title 10, United States Code (as added by subsection 
(a)), shall take effect on October 1, 2004, and shall apply with 
respect to months beginning on or after such date, except as provided 
in paragraph (2).
    (2) For the computation of survivor annuities under subparagraph 
(A)(i) or (B) of section 1451(c)(1) of title 10, United States Code (as 
amended by section 642(b) of Public Law 107-107; 115 Stat. 1152)), 
paragraph (3) of section 1407(c) of title 10, United States Code (as 
added by subsection (a)), shall take effect as of September 10, 2001, 
and shall apply with respect to deaths of members of the uniformed 
services occurring on or after that date.

                       Subtitle E--Other Matters

SEC. 651. INCREASED MAXIMUM PERIOD FOR LEAVE OF ABSENCE FOR PURSUIT OF 
              A PROGRAM OF EDUCATION IN A HEALTH CARE PROFESSION.

    Section 708(a) of title 10, United States Code, is amended--
            (1) by striking ``for a period not to exceed two years''; 
        and
            (2) by adding at the end the following: ``The period of a 
        leave of absence granted under this section may not exceed two 
        years, except that the period may exceed two years but may not 
        exceed three years in the case of an eligible member pursuing a 
        program of education in a health care profession.''.

SEC. 652. ELIGIBILITY OF MEMBERS FOR REIMBURSEMENT OF EXPENSES INCURRED 
              FOR ADOPTION PLACEMENTS MADE BY FOREIGN GOVERNMENTS.

    Section 1052(g)(3) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
                    ``(D) A foreign government or an agency authorized 
                by a foreign government to place children for adoption, 
                in any case in which--
                            ``(i) the adopted child is entitled to 
                        automatic citizenship under section 320 of the 
                        Immigration and Nationality Act (8 U.S.C. 
                        1431); or
                            ``(ii) a certificate of citizenship has 
                        been issued for such child under section 322 of 
                        that Act (8 U.S.C. 1433).''.

                         TITLE VII--HEALTH CARE

               Subtitle A--Enhanced Benefits for Reserves

SEC. 701. DEMONSTRATION PROJECT ON HEALTH BENEFITS FOR RESERVES.

    (a) Demonstration Project Required.--The Secretary of Defense shall 
carry out a demonstration project under section 1092 of title 10, 
United States Code, to assess the need for, and feasibility of, 
providing benefits under the TRICARE program to members of the Ready 
Reserve of the Armed Forces who are (1) eligible unemployment 
compensation recipients, (2) in a period of continuous unemployment 
from the end of their last month as eligible unemployment compensation 
recipients, or (3) ineligible for coverage by employer-sponsored health 
benefits plans for employees.
    (b) Definition.--In this section, the term ``eligible unemployment 
compensation recipient'' has the meaning given such term in section 
1076b(j) of title 10, United States Code.

SEC. 702. PERMANENT EARLIER ELIGIBILITY DATE FOR TRICARE BENEFITS FOR 
              MEMBERS OF RESERVE COMPONENTS.

    Section 1074(d) of title 10, United States Code, is amended by 
striking paragraph (3).

SEC. 703. WAIVER OF CERTAIN DEDUCTIBLES FOR MEMBERS ON ACTIVE DUTY FOR 
              A PERIOD OF MORE THAN 30 DAYS.

    Section 1095d(a) of title 10, United States Code, is amended by 
striking ``a period of less than one year'' both places that it appears 
and inserting ``a period of more than 30 days''.

SEC. 704. PROTECTION OF DEPENDENTS FROM BALANCE BILLING.

    Section 1079(h)(4) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(C) In the case of a member of the reserve components serving on 
active duty for a period of more than 30 days in support of a 
contingency operation under a provision of law referred to in section 
101(a)(13)(B) of this title, the Secretary may pay the amount 
applicable under subparagraph (B) to a dependent of such member who is 
referred to in subparagraph (A).''.

SEC. 705. PERMANENT EXTENSION OF TRANSITIONAL HEALTH CARE BENEFITS AND 
              ADDITION OF REQUIREMENT FOR PRESEPARATION PHYSICAL 
              EXAMINATION.

    (a) Permanent Requirement.--(1) Paragraph (3) of section 1145(a) of 
title 10, United States Code, is amended to read as follows:
    ``(3) Transitional health care for a member under subsection (a) 
shall be available for 180 days beginning on the date on which the 
member is separated from active duty.''.
    (2) The following provisions of law are repealed:
            (A) Section 704 of the National Defense Authorization Act 
        for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1527; 10 
        U.S.C. 1145 note).
            (B) Section 1117 of the Emergency Supplemental 
        Appropriations Act for Defense and for the Reconstruction of 
        Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1218; 
        10 U.S.C. 1145 note).
    (b) Requirement for Physical Examination.--Such section 1145(a), as 
amended by subsection (a), is further amended by adding at the end the 
following new paragraph:
    ``(4) The Secretary concerned shall require each member referred to 
in paragraph (1) to undergo a comprehensive physical examination 
immediately before the member is separated from active duty as 
described in paragraph (2).''.

SEC. 706. PERMANENT ELECTIVE COVERAGE FOR READY RESERVE MEMBERS UNDER 
              TRICARE PROGRAM.

    (a) Authority.--(1) Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1076c the following new section:
``Sec. 1076d. TRICARE program: TRICARE Reserve Select
    ``(a) In General.--TRICARE Reserve Select is a health care benefits 
option under the TRICARE program.
    ``(b) Eligibility.--A member of the Selected Reserve of the Ready 
Reserve is eligible to enroll in TRICARE Reserve Select for health care 
benefits to be provided under TRICARE Standard if--
            ``(1) the member is not entitled to care under section 1074 
        of this title; and
            ``(2) the member and (in the case of a member covered by 
        subparagraph (A) of subsection (f)(4)) the member's employer 
        enter into an agreement with the Secretary concerned to pay the 
        applicable premium in accordance with that subsection.
    ``(c) Enrollment.--A member eligible under subsection (a) may 
enroll in TRICARE Reserve Select at any time. An enrollment is 
continuous until terminated under this section.
    ``(d) Types of Coverage.--An enrollment of a member under this 
section is--
            ``(1) for self alone coverage if the member has no 
        immediate family; or
            ``(2) for coverage of the member and the member's immediate 
        family.
    ``(e) Scope of Care.--A member and the members of the member's 
immediate family enrolled in TRICARE Reserve Select under this section 
shall be entitled to the same benefits under TRICARE Standard as 
members and former members of the uniformed services referred to in 
section 1074(b) of this title and their dependents, respectively.
    ``(f) Premiums.--(1) The Secretary of Defense shall charge a 
premium for the TRICARE Standard benefits provided pursuant to an 
enrollment in TRICARE Reserve Select under this section.
    ``(2) The Secretary shall prescribe one premium for enrollments for 
self alone coverage and one premium for enrollments for self and family 
coverage.
    ``(3) The monthly amount of the premium in effect for a month for a 
level of coverage under this section shall--
            ``(A) be the total amount determined by the Secretary on an 
        appropriate actuarial basis as being reasonable for the 
        coverage; and
            ``(B) apply uniformly to all members enrolled for that 
        level of coverage without regard to the geographical location 
        of--
                    ``(i) a member, any of the member's immediate 
                family, or an employer of the member; or
                    ``(ii) a residence of a member or any of the 
                member's immediate family.
    ``(4) A premium payable in the case of a member under this 
subsection shall be paid as follows:
            ``(A) If the member is employed and is not described in 
        subparagraph (B)--
                    ``(i) the member shall pay 28 percent of the amount 
                of the premium; and
                    ``(ii) the member's employer shall pay 72 percent 
                of the amount of the premium.
            ``(B) If the member is employed but is ineligible for 
        coverage by the employer-sponsored health benefits plan or 
        plans (if any) that the member's employer offers for employees, 
        the member shall pay 100 percent of the amount of the premium.
            ``(C) If the member is not employed, the member shall pay 
        100 percent of the amount of the premium.
    ``(5) The premiums payable by a member under this subsection may be 
deducted and withheld from basic pay payable to the member under 
section 204 of title 37 or from compensation payable to the member 
under section 206 of such title. The Secretary shall prescribe the 
requirements and procedures applicable to the payment of premiums by 
Reserves not entitled to such basic pay or compensation.
    ``(6) Amounts collected as premiums under this subsection shall be 
credited to the appropriation available for the Defense Health Program 
Account under section 1100 of this title, shall be merged with sums in 
such Account that are available for the fiscal year in which collected, 
and shall be available under subsection (b) of such section for such 
fiscal year.
    ``(g) Other Charges.--A person who receives health care pursuant to 
an enrollment in TRICARE Reserve Select under this section, 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 TRICARE 
Standard to the immediate family of members of the uniformed services 
on active duty.
    ``(h) Termination of Enrollment.--(1) A member enrolled in TRICARE 
Reserve Select under this section may terminate the enrollment at any 
time.
    ``(2) An enrollment of a member shall terminate on the earlier of--
            ``(A) the date on which the member ceases to be a member of 
        the Selected Reserve of the Ready Reserve;
            ``(B) the first day of the first month beginning after the 
        date on which the member otherwise ceases to be eligible under 
        subsection (b); or
            ``(C) the date on which--
                    ``(i) the member becomes entitled to care under 
                section 1074 of this title; and
                    ``(ii) the administrative transition from coverage 
                for health care benefits under this section to coverage 
                for health care benefits under such section 1074 is 
                effectuated.
    ``(3) The enrollment of a member under this section may be 
terminated on the basis of failure to pay the premium charged the 
member under this section.
    ``(i) Advisory Committee.--(1) The Secretary of Defense shall 
establish under section 173 of this title an advisory committee--
            ``(A) to provide advice to the Secretary on the 
        implementation of the TRICARE Reserve Select program under this 
        section; and
            ``(B) to coordinate efforts to disseminate information on 
        the program to employers of members of the Selected Reserve of 
        the Ready Reserve.
    ``(2) The advisory committee shall be composed of the following 
members:
            ``(A) Members appointed by the Secretary as representatives 
        of the Defense Advisory Board on Employer Support of the Guard 
        and Reserve.
            ``(B) Members designated by the Secretary from among the 
        TRICARE program regional directors as representatives of the 
        directors.
            ``(C) Members designated by the Director of the Office of 
        Personnel Management as representatives of that agency, in such 
        number as the Secretary and Director shall agree.
    ``(j) Regulations.--The Secretary of Defense, in consultation with 
the other administering Secretaries, shall prescribe regulations for 
the administration of this section.
    ``(k) Definitions.--In this section:
            ``(1) The term `immediate family', with respect to a member 
        of the uniformed services, means all of the member's dependents 
        described in subparagraphs (A), (D), and (I) of section 1072(2) 
        of this title.
            ``(2) The term `self and family coverage' means coverage 
        described in subsection (d)(2).
            ``(3) The term `TRICARE Standard' means the Civilian Health 
        and Medical Program of the Uniformed Services option under the 
        TRICARE program.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1076c the 
following new item:

``1076d. TRICARE program: TRICARE Reserve Select.''.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the congressional 
defense committees a report on the plans for implementing section 1076d 
of title 10, United States Code (as added by subsection (a)).

                       Subtitle B--Other Matters

SEC. 711. REPEAL OF REQUIREMENT FOR PAYMENT OF SUBSISTENCE CHARGES 
              WHILE HOSPITALIZED.

    (a) Repeal.--Section 1075 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of such title is amended by striking the item relating to 
section 1075.

SEC. 712. OPPORTUNITY FOR YOUNG CHILD DEPENDENT OF DECEASED MEMBER TO 
              BECOME ELIGIBLE FOR ENROLLMENT IN A TRICARE DENTAL PLAN.

    Section 1076a(k)(2) of title 10, United States Code, is amended--
            (1) by striking ``under subsection (a) or'' and inserting 
        ``under subsection (a),''; and
            (2) by inserting after ``under subsection (f),'' the 
        following: ``or is not enrolled because the dependent is a 
        child under the minimum age for enrollment,''.

SEC. 713. PEDIATRIC DENTAL PRACTICE NECESSARY FOR PROFESSIONAL 
              ACCREDITATION.

    Section 1077(c) of title 10, United States Code, is amended--
            (1) by striking ``A dependent'' and inserting ``(1) Except 
        as specified in paragraph (2), a dependent''; and
            (2) by adding at the end the following new paragraph:
    ``(2)(A) Dependents 12 years of age or younger who are covered by a 
dental plan under section 1076a of this title may be treated by 
postgraduate dental students in a dental treatment facility of the 
uniformed services accredited by the American Dental Association under 
a graduate dental education program accredited by the American Dental 
Association if--
            ``(i) treatment of pediatric dental patients is necessary 
        in order to satisfy an accreditation standard of the American 
        Dental Association that is applicable to such facility or 
        program, or training in pediatric dental care is necessary for 
        the students to be professionally qualified to provide dental 
        care for dependent children accompanying members of the 
        uniformed services outside the United States; and
            ``(ii) the caseload of pediatric patients at such facility 
        is insufficient to support satisfaction of the accreditation or 
        professional requirements in pediatric dental care that apply 
        to such facility, program, or students.
    ``(B) The total number of dependents treated in all facilities of 
the uniformed services under subparagraph (A) in a fiscal year may not 
exceed 2,000.''.

SEC. 714. SERVICES OF MARRIAGE AND FAMILY THERAPISTS.

    (a) Authority To Enter Into Personal Services Contracts.--Section 
704(c)(2) of the National Defense Authorization Act for Fiscal Year 
1995 (Public Law 103-337; 108 Stat. 2799; 10 U.S.C. 1091 note) is 
amended by inserting ``marriage and family therapists certified as such 
by a certification recognized by the Secretary of Defense,'' after 
``psychologists,''.
    (b) Applicability of Licensure Requirement for Health-Care 
Professionals.--Section 1094(e)(2) of title 10, United States Code, is 
amended by inserting ``marriage and family therapist certified as such 
by a certification recognized by the Secretary of Defense,'' after 
``psychologist,''.

SEC. 715. CHIROPRACTIC HEALTH CARE BENEFITS ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Defense shall establish an 
oversight advisory committee to provide the Secretary with advice and 
recommendations regarding the continued development and implementation 
of an effective program of chiropractic health care benefits for 
members of the uniformed services on active duty.
    (b) Membership.--The advisory committee shall be composed of 
members selected from among persons who, by reason of education, 
training, and experience, are experts in chiropractic health care, as 
follows:
            (1) Members appointed by the Secretary of Defense in such 
        number as the Secretary determines appropriate for carrying out 
        the duties of the advisory committee effectively.
            (2) A representative of each of the Armed Forces, as 
        designated by the Secretary of the military department 
        concerned.
    (c) Chairman.--The Secretary of Defense shall designate one member 
of the advisory committee to serve as the Chairman of the advisory 
committee.
    (d) Meetings.--The advisory committee shall meet at the call of the 
Chairman, but not fewer than three times each fiscal year, beginning in 
fiscal year 2005.
    (e) Duties.--The advisory committee shall have the following 
duties:
            (1) Review and evaluate the program of chiropractic health 
        care benefits provided to members of the uniformed services on 
        active duty under chapter 55 of title 10, United States Code.
            (2) Provide the Secretary of Defense with advice and 
        recommendations as described in subsection (a).
            (3) Upon the Secretary's determination that the program of 
        chiropractic health care benefits referred to in paragraph (1) 
        has been fully implemented, prepare and submit to the Secretary 
        a report containing the advisory committee's evaluation of such 
        program as implemented.
    (f) Applicability of Temporary Organizations Law.--(1) Section 3161 
of title 5, United States Code, shall apply to the advisory committee 
under this section.
    (2) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the oversight advisory committee under this section.
    (g) Termination.--The advisory committee shall terminate 90 days 
after the date on which the committee submits the report to the 
Secretary of Defense under subsection (e)(3).

SEC. 716. GROUNDS FOR PRESIDENTIAL WAIVER OF REQUIREMENT FOR INFORMED 
              CONSENT OR OPTION TO REFUSE REGARDING ADMINISTRATION OF 
              DRUGS NOT APPROVED FOR GENERAL USE.

    (a) Investigational New Drugs.--Section 1107(f) of title 10, United 
States Code, is amended--
            (1) in paragraph (1), by striking ``obtaining consent--'' 
        and all that follows through ``(C) is'' and inserting 
        ``obtaining consent is''; and
            (2) by striking paragraph (2) and inserting the following 
        new paragraph:
    ``(2) The waiver authority provided in paragraph (1) shall not be 
construed to apply to any case other than a case in which prior consent 
for administration of a particular drug is required by reason of a 
determination by the Secretary of Health and Human Services that such 
drug is subject to the investigational new drug requirements of section 
505(i) of the Federal Food, Drug, and Cosmetic Act.''.
    (b) Emergency Use Drugs.--Section 1107a(a) of such title is 
amended--
            (1) by inserting ``(A)'' after ``President.--(1)'';
            (2) by striking ``is not feasible,'' and all that follows 
        through ``members affected, or''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) The waiver authority provided in subparagraph (A) shall not 
be construed to apply to any case other than a case in which an 
individual is required to be informed of an option to accept or refuse 
administration of a particular product by reason of a determination by 
the Secretary of Health and Human Services that emergency use of such 
product is authorized under section 564 of the Federal Food, Drug, and 
Cosmetic Act.''.

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

             Subtitle A--Acquisition Policy and Management

SEC. 801. RESPONSIBILITIES OF ACQUISITION EXECUTIVES AND CHIEF 
              INFORMATION OFFICERS UNDER THE CLINGER-COHEN ACT.

    (a) Acquisitions of Information Technology Equipment Integral to a 
Weapon or Weapon System.--(1) Chapter 131 of title 10, United States 
Code, is amended by inserting after section 2223 the following:
``Sec. 2223a. Acquisition of information technology equipment integral 
              to a weapon or a weapon system
    ``(a) Responsibilities of Acquisition Executives.--The acquisition 
executive of each military department shall be responsible for ensuring 
that, with regard to a weapon or weapon system acquired or to be 
acquired by or for that military department--
            ``(1) the acquisition of information technology equipment 
        that is integral to the 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 the weapon or weapon system; 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).
    ``(b) Board of Senior Acquisition Officials.--(1) The Secretary of 
Defense shall establish a board of senior acquisition officials to 
develop policy and provide oversight on the implementation of the 
requirements of this section and chapter 113 of title 40 in 
procurements of information technology equipment that is integral to a 
weapon or a weapon system.
    ``(2) The board shall be composed of the following officials:
            ``(A) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, who shall be the Chairman.
            ``(B) The acquisition executives of the military 
        departments.
            ``(C) The Chief Information Officer of the Department of 
        Defense.
    ``(3) Any question regarding whether information technology 
equipment is integral to a weapon or weapon system shall be resolved by 
the board in accordance with policies established by the board.
    ``(c) Inapplicability of Other Laws.--The following provisions of 
law do not apply to information technology equipment that is integral 
to 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).
    ``(d) 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 information technology equipment integral to a 
                            weapon or a weapon system.''.
    (b) Conforming Amendments.--Section 2223 of such title is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Equipment Integral to a Weapon or Weapon System.--(1) In the 
case of information technology equipment that is integral to a weapon 
or weapon system acquired or to be acquired by or for a military 
department, the responsibilities under this section shall be performed 
by the acquisition executive of that military department pursuant to 
the guidance and oversight of the board of senior acquisition officials 
established under section 2223a(b) of this title.
    ``(2) In this subsection, the term `acquisition executive' has the 
meaning given said term in section 2223a(d) of this title.''.

SEC. 802. SOFTWARE-RELATED PROGRAM COSTS UNDER MAJOR DEFENSE 
              ACQUISITION PROGRAMS.

    (a) Content of Quarterly Unit Cost Report.--Subsection (b) of 
section 2433 of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
            ``(5) Any significant changes in the total program cost for 
        development and procurement of the software component of the 
        program, schedule milestones for the software component of the 
        program, or expected performance for the software component of 
        the program that are known, expected, or anticipated by the 
        program manager.''.
    (b) Content of Selected Acquisition Report.--(1) Subsection (g)(1) 
of such section is amended by adding at the end the following new 
subparagraph:
            ``(Q) In any case in which one or more problems with the 
        software component of the program significantly contributed to 
        the increase in program unit costs, the action taken and 
        proposed to be taken to solve such problems.''.
    (2) Section 2432(e) of title 10, United States Code, is amended--
            (A) by redesignating paragraphs (7), (8), and (9), as 
        paragraphs (8), (9) and (10), respectively; and
            (B) by inserting after paragraph (6) the following new 
        paragraph (7):
            ``(7) The reasons for any significant changes (from the 
        previous Selected Acquisition Report) in the total program cost 
        for development and procurement of the software component of 
        the program, schedule milestones for the software component of 
        the program, or expected performance for the software component 
        of the program that are known, expected, or anticipated by the 
        program manager.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2004, and shall apply with respect to reports due 
to be submitted to Congress on or after such date.

SEC. 803. INTERNAL CONTROLS FOR DEPARTMENT OF DEFENSE PURCHASES THROUGH 
              GSA CLIENT SUPPORT CENTERS.

    (a) Limitation.--No official of the Department of Defense may place 
an order for, make a purchase of, or otherwise procure property or 
services in an amount in excess of $100,000 through any particular GSA 
Client Support Center until the Inspector General of the Department of 
Defense has, after the date of the enactment of this Act--
            (1) reviewed the policies, procedures, and internal 
        controls of such Client Support Center in consultation with the 
        Inspector General of the General Services Administration; and
            (2) certified in writing to the Secretary of Defense and 
        the Administrator of General Services that such policies, 
        procedures, and internal controls are adequate to ensure the 
        compliance of such Client Support Center with the requirements 
        of law and regulations that are applicable to orders, 
        purchases, and other procurements of property and services.
    (b) GSA Client Support Center Defined.--In this section, the term 
``GSA Client Support Center'' means a Client Support Center of the 
Federal Technology Service of the General Services Administration.
    (c) Effective Date and Applicability.--This section shall take 
effect on the date of the enactment of this Act and shall apply with 
respect to orders, purchases, and other procurements that are initiated 
by the Department of Defense with a GSA Client Support Center on or 
after such date.

SEC. 804. DEFENSE COMMERCIAL SATELLITE SERVICES PROCUREMENT PROCESS.

    (a) Requirement for Determination.--The Secretary of Defense shall 
review alternative mechanisms for procuring commercial satellite 
services and provide guidance to the Director of the Defense 
Information Systems Agency and the Secretaries of the military 
departments on how such procurements should be conducted. The 
alternative procurement mechanisms reviewed by the Secretary of Defense 
shall, at a minimum, include the following:
            (1) Procurement under indefinite delivery, indefinite 
        quantity contracts of the Federal Technology Service of the 
        General Services Administration.
            (2) Procurement directly from commercial sources that are 
        qualified as described in subsection (b), using full and open 
        competition (as defined in section 4(6) of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403(6))).
            (3) Procurement by any other means that has been used by 
        the Director of the Defense Information Systems Agency or the 
        Secretary of a military department to enter into a contract for 
        the procurement of commercial satellite services that is in 
        force on the date of the enactment of this Act.
    (b) Qualified Sources.--A source of commercial satellite services 
referred to in paragraph (2) of subsection (a) is a qualified source if 
the source is incorporated under the laws of a State of the United 
States and is either--
            (1) a source of commercial satellite services under a 
        Federal Technology Service contract for the procurement of 
        commercial satellite services described in paragraph (1) of 
        such subsection that is in force on the date of the enactment 
        of this Act; or
            (2) a source of commercial satellite services that meets 
        qualification requirements (as defined in section 2319 of title 
        10, United States Code, and established in accordance with that 
        section) to enter into a Federal Technology Service contract 
        for the procurement of commercial satellite services.
    (c) Report.--Not later than April 30, 2005, the Secretary of 
Defense shall submit to Congress a report setting forth the conclusions 
resulting from the Secretary's review under subsection (a). The report 
shall include--
            (1) the guidance provided under such subsection; and
            (2) a discussion of the rationale for that guidance.

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

SEC. 811. INCREASED THRESHOLDS FOR APPLICABILITY OF CERTAIN 
              REQUIREMENTS.

    (a) Senior Procurement Executive Approval of Use of Procedures 
Other Than Competitive Procedures.--Section 2304(f)(1)(B) of title 10, 
United States Code, is amended by striking ``$50,000,000'' both places 
it appears and inserting ``$75,000,000''.
    (b) Information on Subcontracting Authority of Defense Contractor 
Personnel.--Section 2416(d) of such title is amended by striking 
``$500,000'' and inserting ``$1,000,000''.

SEC. 812. PERIOD FOR MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Revised Maximum Period.--Section 2304a(f) of title 10, United 
States Code, is amended by striking ``a total period of not more than 
five years.'' and inserting ``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. The total contract period as extended may not exceed eight 
years unless such head of an agency personally determines in writing 
that exceptional circumstances necessitate a longer contract period.''.
    (b) Annual Report.--Not later than 60 days after the end of each of 
fiscal years 2005 through 2009, the Secretary of Defense shall submit 
to Congress a report setting forth each extension of a contract period 
to a total of more than eight years that was granted for task and 
delivery order contracts of the Department of Defense during such 
fiscal year under section 2304a(f) of title 10, United States Code. The 
report shall include, with respect to each such contract period 
extension--
            (1) a discussion of the exceptional circumstances on which 
        the extension was based; and
            (2) the justification for the determination of exceptional 
        circumstances.

SEC. 813. SUBMISSION OF COST OR PRICING DATA ON NONCOMMERCIAL 
              MODIFICATIONS OF COMMERCIAL ITEMS.

    (a) Inapplicability of Commercial Items Exception to Noncommercial 
Modifications of Commercial Items.--Subsection (b) of section 2306a of 
title 10, United States Code, is amended by adding at the end the 
following new paragraph:
            ``(3) Noncommercial modifications of commercial items.--(A) 
        The exception in paragraph (1)(B) does not apply to cost or 
        pricing data on noncommercial modifications of a commercial 
        item that are expected to cost, in the aggregate, more than 
        $500,000.
            ``(B) In this paragraph, the term `noncommercial 
        modification', with respect to a commercial item, means a 
        modification of such item that is not a modification described 
        in section 4(12)(C)(i) of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 403(12)(C)(i)).
            ``(C) Nothing in subparagraph (A) shall be construed--
                    ``(i) to limit the applicability of the exception 
                in subparagraph (A) or (C) of paragraph (1) to cost or 
                pricing data on a noncommercial modification of a 
                commercial item; or
                    ``(ii) to require the submission of cost or pricing 
                data on any aspect of an acquisition of a commercial 
                item other than the cost and pricing of noncommercial 
                modifications of such item.''.
    (b) Effective Date and Applicability.--Paragraph (3) of section 
2306a of title 10, United States Code (as added by subsection (a)), 
shall take effect on January 1, 2005, and shall apply with respect to 
offers submitted, and to modifications of contracts or subcontracts 
made, on or after that date.

SEC. 814. DELEGATIONS OF AUTHORITY TO MAKE DETERMINATIONS RELATING TO 
              PAYMENT OF DEFENSE CONTRACTORS FOR BUSINESS RESTRUCTURING 
              COSTS.

    Section 2325(a)(2) of title 10, United States Code, is amended--
            (1) by striking ``paragraph (1) to an official'' and all 
        that follows and inserting ``paragraph (1), with respect to a 
        business combination, to an official of the Department of 
        Defense--''; and
            (2) by adding at the end the following:
            ``(A) below the level of an Assistant Secretary of Defense 
        for cases in which the amount of restructuring costs is 
        expected to exceed $25,000,000 over a 5-year period; or
            ``(B) below the level of the Director of the Defense 
        Contract Management Agency for all other cases.''.

SEC. 815. LIMITATION REGARDING SERVICE CHARGES IMPOSED FOR DEFENSE 
              PROCUREMENTS MADE THROUGH CONTRACTS OF OTHER AGENCIES.

    (a) Limitation.--(1) Chapter 141 of title 10, United States Code, 
is amended by inserting after section 2382 the following new section 
2383:
``Sec. 2383. Procurements through contracts of other agencies: service 
              charges
    ``(a) Limitation.--The head of an agency may not procure goods or 
services (under section 1535 of title 31, pursuant to a designation 
under section 11302(e) of title 40, or otherwise) through a contract 
entered into by an agency outside the Department of Defense if the 
amount charged such head of an agency by the contracting agency for the 
goods or services includes a service charge in a total amount that 
exceeds one percent of the amount charged by the contractor for such 
goods or services under the contract.
    ``(b) Waiver Authority.--(1) The appropriate official of the 
Department of Defense may waive the limitation in subsection (a) in the 
case of any procurement for which that official determines that it is 
in the national security interests of the United States to do so.
    ``(2) The appropriate official for exercise of the waiver authority 
under paragraph (1) is as follows:
            ``(A) In the case of a procurement by a Defense Agency or 
        Department of Defense Field Activity, the Secretary of Defense.
            ``(B) In the case of a procurement for a military 
        department, the Secretary of that military department.
    ``(3)(A) The Secretary of Defense may not delegate the authority 
under paragraph (1) to any person other than the Deputy Secretary of 
Defense or the Under Secretary of Defense for Acquisition, Technology, 
and Logistics.
    ``(B) The Secretary of a military department may not delegate the 
authority under paragraph (1) to any person other than the acquisition 
executive of that military department.
    ``(c) Inapplicability to Coast Guard and NASA.--This section does 
not apply to the Coast Guard when it is not operating as a service in 
the Navy or to the National Aeronautics and Space Administration.
    ``(d) Definitions.--In this section:
            ``(1) The term `head of an agency' has the meaning given 
        such term in section 2302 of this title.
            ``(2) The term `acquisition executive', with respect to a 
        military department, means the official who is designated as 
        the senior procurement executive of that military department 
        under section 16(3) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 414(3)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2382 the 
following new item:

``2383. Procurements through contracts of other agencies: service 
                            charges.''.
    (b) Effective Date and Applicability.--Section 2383 of title 10, 
United States Code, shall take effect on October 1, 2004, and shall 
apply with respect to orders for goods or services that are issued by 
the head of an agency (as defined in section 2302 of such title) on or 
after such date.

        Subtitle C--Extensions of Temporary Program Authorities

SEC. 831. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESS 
              AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

    Section 2323(k) of title 10, United States Code, is amended by 
striking ``2006'' both places it appears and inserting ``2009''.

SEC. 832. EXTENSION OF MENTOR-PROTEGE PROGRAM.

    Section 831 of the National Defense Authorization Act for Fiscal 
Year 1991 (Public Law 101-510; 10 U.S.C. 2302 note) is amended--
            (1) in subsection (j)--
                    (A) in paragraph (1), by striking ``September 30, 
                2005'' and inserting ``September 30, 2010''; and
                    (B) in paragraph (2), by striking ``September 30, 
                2008'' and inserting ``September 30, 2013''; and
            (2) in subsection (l)(3), by striking ``2007'' and 
        inserting ``2012''.

SEC. 833. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COMPREHENSIVE 
              SMALL BUSINESS SUBCONTRACTING PLANS.

    Section 834(e) of the National Defense Authorization Act for Fiscal 
Years 1990 and 1991 (Public Law 101-189; 15 U.S.C. 637 note) is amended 
by striking ``September 30, 2005'' and inserting ``September 30, 
2010''.

SEC. 834. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES 
              AND SERVICES OF CERTAIN ARMY INDUSTRIAL FACILITIES.

    Section 141(a) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 4543 note) is amended by 
striking ``through 2004'' in the first sentence and inserting ``through 
2009''.

                  Subtitle D--Industrial Base Matters

SEC. 841. COMMISSION ON THE FUTURE OF THE NATIONAL TECHNOLOGY AND 
              INDUSTRIAL BASE.

    (a) Establishment.--There is established a commission to be known 
as the Commission on the Future of the National Technology and 
Industrial Base (hereafter in this section referred to as the 
``Commission'').
    (b) Membership.--(1) The Commission shall be composed of 12 members 
appointed by the President.
    (2) The members of the Commission shall include--
            (A) persons with extensive experience and national 
        reputations for expertise in the defense industry, commercial 
        industries that support the defense industry, and the 
        economics, finance, national security, international trade, or 
        foreign policy areas; and
            (B) persons who are representative of labor organizations 
        associated with the defense industry.
    (3) The appointment of the members of the Commission under this 
subsection shall be made not later than March 1, 2005.
    (4) Members shall be appointed for the life of the Commission. A 
vacancy in the Commission shall not affect its powers, but shall be 
filled in the same manner in which the original appointment was made.
    (5) The President shall designate one member of the Commission to 
serve as the Chairman of the Commission.
    (c) Meetings.--(1) The Commission shall meet at the call of the 
Chairman.
    (2) A majority of the members of the Commission shall constitute a 
quorum, but a lesser number may hold hearings.
    (d) Duties.--(1) The Commission shall--
            (A) study the issues associated with the future of the 
        national technology and industrial base in the global economy, 
        particularly with respect to its effect on United States 
        national security; and
            (B) assess the future ability of the national technology 
        and industrial base to attain the national security objectives 
        set forth in section 2501 of title 10, United States Code.
    (2) In carrying out the study and assessment under paragraph (1), 
the Commission shall consider the following matters:
            (A) Existing and projected future capabilities of the 
        national technology and industrial base.
            (B) The impact on the national technology and industrial 
        base of civil-military integration and the growing dependence 
        of the Department of Defense on the commercial market for 
        defense products and services.
            (C) The effects of domestic source restrictions on the 
        strength of the national technology and industrial base.
            (D) The effects of the policies and practices of United 
        States allies and trading partners on the national technology 
        and industrial base.
            (E) The effects on the national technology and industrial 
        base of laws and regulations related to international trade and 
        the export of defense technologies and dual-use technologies.
            (F) The adequacy of programs that support science and 
        engineering education, including programs that support defense 
        science and engineering efforts at institutions of higher 
        learning, with respect to meeting the needs of the national 
        technology and industrial base.
            (G) The implementation of policies and planning required 
        under subchapter II of chapter 148 of title 10, United States 
        Code, and other provisions of law designed to support the 
        national technology and industrial base.
            (H) The role of the Manufacturing Technology program, other 
        Department of Defense research and development programs, and 
        the utilization of the authorities of the Defense Production 
        Act of 1950 to provide transformational breakthroughs in 
        advanced manufacturing technologies and processes that ensure 
        the strength and productivity of the national technology and 
        industrial base.
    (e) Report.--Not later than March 1, 2008, the Commission shall 
submit a report on its activities to the President and Congress. The 
report shall include the following matters:
            (1) The findings and conclusions of the Commission.
            (2) The recommendations of the Commission for actions by 
        Federal Government officials to support the maintenance of a 
        robust national technology and industrial base in the 21st 
        century.
            (3) Any recommendations for legislation or changes in 
        regulations to support the implementation of the findings of 
        the Commission.
            (4) A discussion of appropriate measures to implement the 
        recommendations of the Commission.
    (f) Administrative Requirements and Authorities.--(1) The Director 
of the Office of Management and Budget shall ensure that the Commission 
is provided such administrative services, facilities, staff, and other 
support services as may be necessary for the Commission to carry out 
its duties. Expenses of the Commission shall be paid out of funds 
available to the Director.
    (2) The Commission may hold such hearings, sit and act at such 
times and places, take such testimony, and receive such evidence as the 
Commission considers advisable to carry out the purposes of this 
section.
    (3) The Commission may secure directly from any Federal department 
or agency such information as the commission considers necessary to 
carry out the provisions of this section. Upon a request of the 
Chairman of the Commission, the head of such department or agency shall 
furnish such information to the Commission.
    (4) The Commission may use the United States mails in the same 
manner and under the same conditions as other departments and agencies 
of the Federal Government.
    (g) Personnel Matters.--(1) Members of the Commission shall serve 
without compensation for their service on the Commission, except that 
each member of the Commission who is not an officer or employee of the 
United States 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, United States Code, while 
away from their homes or regular places of business in the performance 
of services for the Commission.
    (2) Section 3161 of title 5, United States Code, shall apply to the 
Commission, except that--
            (A) members of the Commission shall not be entitled to pay 
        for services under subsection (d) of such section; and
            (B) subsection (b)(2) of such section shall not apply to 
        the employees of the Commission.
    (h) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
Commission.
    (i) Termination.--The Commission shall terminate 30 days after the 
date on which the Commission submits its report under subsection (e).
    (j) Definition of National Technology and Industrial Base.--In this 
section, the term ``national technology and industrial base'' has the 
meaning given such term in section 2500 of title 10, United States 
Code.

SEC. 842. CONFORMING STANDARD FOR WAIVER OF 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 reciprocal defense 
        procurement memorandum of understanding or agreement with the 
        United States;
            ``(2) in a foreign country that has a reciprocal defense 
        procurement memorandum of understanding or agreement 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 reciprocal 
        defense procurement memorandum of understanding or agreement 
        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 reciprocal defense procurement memorandum of 
        understanding or agreement 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 of Defense to 
waive the application of a domestic source or content requirement under 
subsection (a) applies to the procurement of items for which the 
Secretary determines that--
            ``(1) application of the requirement would impede the 
        reciprocal procurement of defense items under a memorandum of 
        understanding between a foreign country and the United States 
        that provides for reciprocal procurement of defense items in 
        accordance with section 2531 of this title; 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 of 
Defense 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 of Defense 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.''.
    (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. 843. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER TRADE 
              AGREEMENTS.

    No provision of this Act or any amendment made by this Act shall 
apply to a procurement by or for the Department of Defense to the 
extent that the Secretary of Defense, in consultation with the 
Secretary of Commerce, the United States Trade Representative, and the 
Secretary of State, determines that it is inconsistent with United 
States obligations under a trade agreement.

         Subtitle E--Defense Acquisition and Support Workforce

SEC. 851. 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 2005, 2006, and 2007, below the level of that workforce as 
of September 30, 2003, determined on the basis of full-time employee 
equivalence, 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 2005, 2006, and 
2007, the Secretary of Defense may--
            (1) realign any part of the defense acquisition and support 
        workforce to support reinvestment in other, higher priority 
        positions in such workforce; and
            (2) employ in the defense acquisition and support workforce 
        up to 115 percent more employees than are employed in the 
        defense acquisition and support workforce as of September 30, 
        2003, determined on the basis of full-time employee 
        equivalence.
    (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 of Defense 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) Strategic Assessment and Plan.--(1) The Secretary of Defense 
shall--
            (A) assess the extent to which the Department of Defense 
        can recruit, retain, train, and provide professional 
        development opportunities for acquisition professionals over 
        the 10-fiscal year period beginning with fiscal year 2005; and
            (B) develop a human resources strategic plan for the 
        defense acquisition and support workforce that includes 
        objectives and planned actions for improving the management of 
        such workforce.
    (2) The Secretary shall submit to Congress, not later than April 1, 
2005, a report on the progress made in--
            (A) completing the assessment required under paragraph (1); 
        and
            (B) completing and implementing the strategic plan required 
        under such paragraph.
    (e) 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. 852. DEFENSE ACQUISITION WORKFORCE IMPROVEMENTS.

    (a) Selection Criteria for Acquisition Corps and for Critical 
Acquisition Positions.--(1) Section 1732(b)(1)(A) of title 10, United 
States Code, is amended by striking ``within grade GS-13 or above of'' 
and inserting ``for which the employee is being paid at a rate of basic 
pay that equals or exceeds the minimum rate of basic pay provided for 
grade GS-13 under''.
    (2) Section 1733(b)(1)(A)(i) of such title is amended by striking 
``in a position within grade GS-14 or above of the General Schedule, 
or'' and inserting ``who is currently serving in a position for which 
the employee is being paid at a rate of basic pay that equals or 
exceeds the minimum rate of basic pay provided for grade GS-14 under 
the General Schedule or is required to be filled by an employee who 
is''.
    (b) Scholarship Program.--Section 1742 of such title is amended--
            (1) by inserting ``(a) Required             Programs.--'' 
        before ``The Secretary of Defense shall conduct''; and
            (2) by adding at the end the following new subsection:
    ``(b) Scholarship Program Requirements.--(1) Each recipient of a 
scholarship under a program conducted under subsection (a)(3) shall be 
required to sign a written agreement that sets forth the terms and 
conditions of the scholarship. The agreement shall include the 
following:
            ``(A) Criteria for the recipient's continued eligibility 
        for the scholarship.
            ``(B) The terms of any requirement for the recipient to 
        reimburse the United States for educational assistance provided 
        under the scholarship upon--
                    ``(i) a failure by the recipient to satisfy the 
                criteria for continued eligibility for the scholarship; 
                or
                    ``(ii) a termination of the recipient's service in 
                the Department of Defense before the end of any period 
                of obligated service provided in the agreement, as 
                described in paragraph (2).
    ``(2) Subject to paragraph (3)(C), a recipient of a scholarship 
under the program shall reimburse the United States the total amount of 
educational assistance provided to the recipient under the program if 
the recipient is voluntarily separated from service or involuntarily 
separated for cause from the Department of Defense before the end of 
any period for which the recipient has agreed, as a condition of the 
scholarship, to continue in the service of the Department of Defense in 
an acquisition position.
    ``(3)(A) If an employee fails to fulfill an agreement to pay the 
Government any amount of educational assistance provided to that person 
under the program, a sum equal to such amount of the educational 
assistance is recoverable by the Government from the employee or his 
estate by--
            ``(i) setoff against accrued pay, compensation, amount of 
        retirement credit, or other amount due the employee from the 
        Government; and
            ``(ii) such other method as is provided by law for the 
        recovery of amounts owing to the Government.
    ``(B) An obligation to reimburse the United States under an 
agreement entered into under this subsection is for all purposes a debt 
owed to the United States.
    ``(C) The Secretary of Defense may waive in whole or in part a 
reimbursement required under this subsection or under an agreement 
entered into under this subsection if the Secretary determines that the 
recovery would be against equity and good conscience or would be 
contrary to the best interests of the United States.
    ``(D) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement entered into 
under this subsection does not discharge a person executing the 
agreement from a debt arising under this subsection or such agreement.
    ``(4) Nothing in this subsection shall be considered to require 
that a position be offered to a recipient of a scholarship under the 
program after such recipient successfully completes the course of 
education for which the scholarship is granted. However, the agreement 
entered into under this subsection with respect to such scholarship 
shall be considered terminated if the recipient is not, within the time 
specified in the agreement, offered a full-time acquisition position in 
the Department of Defense that--
            ``(A) is commensurate with the recipient's academic degree 
        and experience; and
            ``(B) is--
                    ``(i) in the excepted service, if the recipient has 
                not previously acquired competitive status, with the 
                right, after successful completion of two years of 
                service and such other requirements as the Office of 
                Personnel Management may prescribe, to be appointed to 
                a position in the competitive service, notwithstanding 
                subchapter I of chapter 33 of title 5; or
                    ``(ii) in the competitive service, if the recipient 
                has previously acquired competitive status.''.
    (c) Authority To Establish Different Minimum Requirements.--(1) 
Section 1764(b) of such title is amended--
            (A) by redesignating paragraph (5) as paragraph (6); and
            (B) by inserting after paragraph (4) the following new 
        paragraph (5):
            ``(5) Deputy program manager.''.
    (2) Paragraph (1) of such section is amended by striking ``in 
paragraph (5)'' and inserting ``in paragraph (6)''.

                       Subtitle F--Other Matters

SEC. 861. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO SETTLEMENTS UNDER 
              SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

    Section 804(a) of the National Defense Authorization Act for Fiscal 
Year 2004 (Public Law 108-136; 117 Stat. 1541) is amended--
            (1) by inserting ``(1)'' after ``(a) Authority.--''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Under regulations which the Secretary of Defense may 
prescribe, a settlement of a financial account for a contract for the 
procurement of property or services under paragraph (1) may be made 
without regard to--
            ``(A) section 1301 of title 31, United States Code; and
            ``(B) any other provision of law that would preclude the 
        Secretary from charging payments under the contract--
                    ``(i) to an unobligated balance in an appropriation 
                available for funding that contract; or
                    ``(ii) if and to the extent that the unobligated 
                balance (if any) in such appropriation is insufficient 
                for funding such payments, to any current appropriation 
                that is available to the Department of Defense for 
                funding contracts for the procurement of the same or 
                similar property or services.''.

SEC. 862. DEMONSTRATION PROGRAM ON EXPANDED USE OF RESERVES TO PERFORM 
              DEVELOPMENTAL TESTING, NEW EQUIPMENT TRAINING, AND 
              RELATED ACTIVITIES.

    (a) Requirement for Program.--The Secretary of the Army shall carry 
out a demonstration program on use of members of reserve components of 
the Armed Forces to perform test, evaluation, and related activities 
for an acquisition program. The Secretary shall design and carry out 
the demonstration program to achieve the purposes set forth in 
subsection (b).
    (b) Purposes.--The purposes of the demonstration program are as 
follows:
            (1) To determine whether cost savings and other benefits 
        result from use of members of reserve components of the Armed 
        Forces instead of contractor personnel to perform test and 
        evaluation activities for an acquisition program and related 
        acquisition, logistics, and new equipment training activities 
        for the acquisition program.
            (2) To evaluate the advisability of using appropriations 
        available for multiyear research, development, test, and 
        evaluation and appropriations available for multiyear 
        procurements to reimburse reserve components for the pay, 
        allowances, and other expenses paid to or for Reserves used for 
        the acquisition program as described in paragraph (1).
    (c) Reimbursement of Personnel Accounts Out of Procurement and 
RDT&E Accounts.--(1) The Secretary of the Army may transfer from funds 
available to the Army for an acquisition program to a reserve component 
military personnel account the amount necessary to reimburse that 
account for costs charged to that account for military pay and 
allowances in connection with the use of reserve component personnel 
for such acquisition program under this section.
    (2) Not more than $10,000,000 may be transferred under this 
subsection during any fiscal year of the demonstration program.
    (3) Funds transferred to an account under this subsection 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.
    (4) The transfer authority under this subsection is in addition to 
any other transfer authority provided in this or any other Act.
    (d) Nonwaiver of Personnel and Training Policies and Procedures.--
Nothing in this section may be construed to authorize any deviation 
from established personnel or training policies or procedures that are 
applicable to the reserve components of the personnel used under the 
demonstration program.
    (e) Termination.--The demonstration program under this section 
shall terminate on September 30, 2009.

SEC. 863. APPLICABILITY OF COMPETITION EXCEPTIONS TO ELIGIBILITY OF 
              NATIONAL GUARD FOR FINANCIAL ASSISTANCE FOR PERFORMANCE 
              OF ADDITIONAL DUTIES.

    Section 113(b)(1)(B) of title 32, United States Code, is amended by 
inserting before the period at the end the following: ``, subject to 
the exceptions provided in section 2304(c) of title 10''.

SEC. 864. MANAGEMENT PLAN FOR CONTRACTOR SECURITY PERSONNEL.

    (a) Requirement for Plan.--Not later than 90 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit to 
Congress a plan for the management and oversight of contractor security 
personnel by Federal Government personnel in areas where the Armed 
Forces are engaged in military operations.
    (b) Policies and Procedures.--The plan under this section shall set 
forth policies and procedures applicable to contractor security 
personnel in potentially hazardous areas of military operations. The 
policies and procedures shall address the following matters:
            (1) Warning contractor security personnel of potentially 
        hazardous situations.
            (2) Coordinating the movement of contractor security 
        personnel, especially through areas of increased risk or 
        planned or ongoing military operations.
            (3) Rapidly identifying contractor security personnel by 
        members of the Armed Forces.
            (4) Sharing relevant threat information with contractor 
        security personnel, and receiving information gathered by 
        contractor security personnel for use by United States and 
        coalition forces.
            (5) Providing appropriate assistance to contractor security 
        personnel who become engaged in hostile situations.
            (6) Providing medical assistance for, and evacuation of, 
        contractor personnel who become casualties as a result of enemy 
        actions.
            (7) Investigating background and qualifications of 
        contractor security personnel and organizations.
            (8) Establishing rules of engagement for armed contractor 
        security personnel, and ensuring proper training and compliance 
        with the rules of engagement.
    (c) Options for Enhanced and Cost-Effective Contractor Security.--
The plan under subsection (a) shall include assessed options for 
enhancing contractor security and reducing contractor security costs in 
Iraq or in locations of armed conflict in the future. The options 
covered shall include the following:
            (1) Temporary commissioning of contractor security 
        personnel as reserve component officers in order to subject 
        such personnel to the military chain of command.
            (2) Requiring contractor security personnel to obtain 
        security clearances to facilitate the communication of critical 
        threat information.
            (3) Establishing a contract schedule for companies 
        furnishing contractor security personnel to provide a more 
        orderly process for the selection, training, and compensation 
        of such personnel.
            (4) Establishing a contract schedule for companies to 
        provide more cost-effective insurance for contractor security 
        personnel.
            (5) Providing for United States indemnification of 
        contractors to reduce the costs of insuring contractor security 
        personnel.

SEC. 865. REPORT ON CONTRACTOR PERFORMANCE OF SECURITY, INTELLIGENCE, 
              LAW ENFORCEMENT, AND CRIMINAL JUSTICE FUNCTIONS IN IRAQ.

    (a) Report Required.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the procurement of 
services, by an agency of the United States Government or by the 
Coalition Provisional Authority, for the performance of security, 
intelligence, law enforcement, and criminal justice functions in Iraq.
    (b) Content.--The report under subsection (a) shall include, at a 
minimum, the following:
            (1) Each security, intelligence, law enforcement, or 
        criminal justice function performed by a contractor in Iraq.
            (2) For each such function--
                    (A) a determination of whether such function is an 
                inherently governmental function, together with a 
                discussion of the factual basis and rationale for that 
                determination;
                    (B) an explanation of the basis for the decision to 
                rely on a contractor to perform such function, 
                including a discussion of the extent to which the Armed 
                Forces lacked the expertise or manpower to perform that 
                function using Armed Forces personnel;
                    (C) a description of the chain of command for the 
                contractor performing such function, together with a 
                discussion of the manner in which the United States 
                Government or the Coalition Provisional Authority 
                supervises and directs the contractor's performance of 
                that function; and
                    (D) what sanctions are available to impose on any 
                contractor employee who--
                            (i) fails to comply with a requirement of 
                        law or regulation that applies to such employee 
                        in the performance of that function; or
                            (ii) engages in other misconduct in the 
                        performance of that function.
            (3) An explanation of the legal status of contractor 
        employees in the performance of such functions after the 
        administration of the sovereign powers of Iraq is transferred 
        from the Coalition Provisional Authority to a government of 
        Iraq on June 30, 2004.

SEC. 866. ACCREDITATION STUDY OF COMMERCIAL OFF-THE-SHELF PROCESSES FOR 
              EVALUATING INFORMATION TECHNOLOGY PRODUCTS AND SERVICES.

    (a) Requirement for Study.--The Secretary of Defense shall carry 
out a study of commercial off-the-shelf processes that are available 
for measuring the quality of information technology and related 
services through assessment of the production methods of the producers 
of the technology.
    (b) Purposes.--The purposes of the study of commercial off-the-
shelf processes under subsection (a) are as follows:
            (1) To assess the value of such a process as a consistent 
        methodology for identifying high quality information technology 
        and the engineering sources capable of providing high quality 
        information technology and related services.
            (2) To determine whether to accredit such a process for use 
        in procurements of information technology and related services 
        throughout the Department of Defense.
    (c) Savings and Enhancements.--In carrying out the study under 
subsection (a), the Secretary shall determine the benefits that would 
result for the Department of Defense from use throughout the Department 
of Defense of a commercial off-the-shelf process described in that 
subsection to measure the quality of information technology products 
and services in procurements described in subsection (b)(2), 
including--
            (1) projected annual savings in costs of development and 
        maintenance of information technology; and
            (2) quantified enhancements of productivity, schedule, 
        performance, deficiency rates, and predictability.
    (d) Baseline Data.--To define a baseline for measuring benefits 
under subsection (c), the Secretary shall use empirical data that is 
readily available to the Department of Defense and contractor sources.
    (e) Information Considered.--The Secretary of Defense may consider 
projections of savings and quantifications of enhancements that are 
submitted by a contractor.
    (f) Information Technology Defined.--In this section, the term 
``information technology'' has the meaning given such term in section 
11101(6) of title 40, United States Code.

SEC. 867. INAPPLICABILITY OF RANDOLPH-SHEPPARD ACT TO MILITARY DINING 
              FACILITIES.

    Section 9(7) of the Randolph-Sheppard Act (20 U.S.C. 107e(7)) is 
amended by inserting after ``blind licensees'' the following: ``, 
except that such term does not include a military troop dining 
facility, a military mess hall, or any similar dining facility that, 
funded by appropriations, is operated for the purpose of providing 
meals to members of the Armed Forces (as defined in section 101(a)(4) 
of title 10, United States Code)''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Subtitle A--Reserve Components

SEC. 901. MODIFICATION OF STATED PURPOSE OF THE RESERVE COMPONENTS.

    Section 10102 of title 10, United States Code, is amended by 
striking ``, during and after the period needed to procure and train 
additional units and qualified persons to achieve the planned 
mobilization,''.

SEC. 902. COMMISSION ON THE NATIONAL GUARD AND RESERVES.

    (a) Establishment.--There is established a commission to be known 
as the ``Commission on the National Guard and Reserves'' (hereafter in 
this section referred to as the ``Commission'').
    (b) Composition.--(1) The Commission shall be composed of 13 
members appointed as follows:
            (A) Three members appointed by the chairman of the 
        Committee on Armed Services of the Senate.
            (B) Three members appointed by the chairman of the 
        Committee on Armed Services of the House of Representatives.
            (C) Two members appointed by the ranking minority member of 
        the Committee on Armed Services of the Senate.
            (D) Two members appointed by the ranking minority member of 
        the Committee on Armed Service of the House of Representatives.
            (E) Three members appointed by the Secretary of Defense.
    (2) The members of the Commission shall be appointed from among 
persons who have knowledge and expertise in the following areas:
            (A) National security.
            (B) Roles and missions of any of the Armed Forces.
            (C) The mission, operations, and organization of the 
        National Guard of the United States.
            (D) The mission, operations, and organization of the other 
        reserve components of the Armed Forces.
            (E) Military readiness of the Armed Forces.
            (F) Personnel pay and other forms of compensation.
            (G) Other personnel benefits, including health care.
    (3) Members of the Commission shall be appointed for the life of 
the Commission. A vacancy in the membership of the Commission shall not 
affect the powers of the Commission, but shall be filled in the same 
manner as the original appointment.
    (4) The Secretary of Defense shall designate a member of the 
Commission to be chairman of the Commission.
    (c) Duties.--(1) The Commission shall carry out a study of the 
following matters:
            (A) The roles and missions of the National Guard and the 
        other reserve components of the Armed Forces.
            (B) The compensation and other benefits, including health 
        care benefits, that are provided for members of the reserve 
        components under the laws of the United States.
    (2) In carrying out the study under paragraph (1), the Commission 
shall--
            (A) assess the current roles and missions of the reserve 
        components and identify appropriate potential future roles and 
        missions for the reserve components;
            (B) assess the capabilities of the reserve components and 
        determine how the units and personnel of the reserve components 
        may be best used to support the military operations of the 
        Armed Forces and the achievement of national security 
        objectives, including homeland defense, of the United States;
            (C) assess--
                    (i) the current organization and structure of the 
                National Guard and the other reserve components; and
                    (ii) the plans of the Department of Defense and the 
                Armed Forces for future organization and structure of 
                the National Guard and the other reserve components;
            (D) assess the manner in which the National Guard and the 
        other reserve components are currently organized and funded for 
        training and identify an organizational and funding structure 
        for training that best supports the achievement of training 
        objectives and operational readiness;
            (E) assess the effectiveness of the policies and programs 
        of the National Guard and the other reserve components for 
        achieving operational readiness and personnel readiness, 
        including medical and personal readiness;
            (F) assess--
                    (i) the adequacy and appropriateness of the 
                compensation and benefits currently provided for the 
                members of the National Guard and the other reserve 
                components, including the availability of health care 
                benefits and health insurance; and
                    (ii) the effects of proposed changes in 
                compensation and benefits on military careers in both 
                the regular and the reserve components of the Armed 
                Forces;
            (G) identify various feasible options for improving the 
        compensation and other benefits available to the members of the 
        National Guard and the members of the other reserve components 
        and assess--
                    (i) the cost-effectiveness of such options; and
                    (ii) the foreseeable effects of such options on 
                readiness, recruitment, and retention of personnel for 
                careers in the regular and reserve components the Armed 
                Forces;
            (H) assess the traditional military career paths for 
        members of the National Guard and the other reserve components 
        and identify alternative career paths that could enhance 
        professional development; and
            (I) assess the adequacy of the funding provided for the 
        National Guard and the other reserve components for several 
        previous fiscal years, including the funding provided for 
        National Guard and reserve component equipment and the funding 
        provided for National Guard and other reserve component 
        personnel in active duty military personnel accounts and 
        reserve military personnel accounts.
    (d) First Meeting.--The Commission shall hold its first meeting not 
later than 30 days after the date on which all members of the 
Commission have been appointed.
    (e) Administrative and Procedural Authorities.--(1) Except as 
provided in paragraph (2), sections 955, 956, 957, 958, and 959 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1740; 10 U.S.C 111 note) shall apply to the 
Commission.
    (2)(A) The daily rate of pay payable under section 957(a) of Public 
Law 103-160 shall be equal to the daily rate of basic pay prescribed 
for level IV of the Executive Schedule.
    (B) Section 957(f) of Public Law 103-160 (relating to services of 
federally funded research and development centers) shall not apply to 
the Commission.
    (3) The following provisions of law do not apply to the Commission:
            (A) Section 3161 of title 5, United States Code.
            (B) The Federal Advisory Committee Act (5 U.S.C. App.).
    (f) Reports.--(1) Not later than March 31, 2005, the Commission 
shall submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report setting forth--
            (A) a strategic plan for the work of the Commission;
            (B) a discussion of the activities of the Commission; and
            (C) any initial findings of the Commission.
    (2) Not later than December 31, 2005, the Commission shall submit a 
final report to the Committees of Congress referred to in paragraph 
(1). The final report shall include any recommendations that the 
Commission determines appropriate, including any recommended 
legislation, policies, regulations, directives, and practices.
    (g) Termination.--The Commission shall terminate 90 days after the 
date on which the final report is submitted under subsection (f)(2).
    (h) Annual Review Board.--(1)(A) Chapter 7 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 186. Reserve components: annual review
    ``(a) Independent Review Board.--The Secretary of Defense shall 
appoint a board to review the reserve components of the armed forces.
    ``(b) Composition of Board.--(1) The Secretary shall appoint the 
members of the board from among persons who have knowledge and 
expertise in the following areas:
            ``(A) National security.
            ``(B) Roles and missions of any of the armed forces.
            ``(C) The mission, operations, and organization of any of 
        the reserve components.
            ``(D) Military readiness of the armed forces.
            ``(E) Personnel pay and other forms of compensation.
            ``(F) Other personnel benefits, including health care.
    ``(2) The Secretary of Defense shall designate a member of the 
board to be chairman of the board.
    ``(c) Duties.--The board shall, on an annual basis--
            ``(1) review--
                    ``(A) the roles and missions of the reserve 
                components; and
                    ``(B) the compensation and other benefits, 
                including health care benefits, that are provided for 
                members of the reserve components under the laws of the 
                United States; and
            ``(2) submit to the Secretary of Defense a report on the 
        review, which shall include the findings of the board regarding 
        the matters reviewed and any recommendations that the board 
        considers appropriate regarding those matters.
    ``(d) Report to Congress.--Promptly after receiving the report 
under subsection (c)(2), the Secretary shall transmit the report, 
together with any comments and recommendations that the Secretary 
considers appropriate, to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives.
    ``(e) Administrative Provisions.--Section 180(d) of this title 
shall apply to the members of the review board appointed under this 
section.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``186. Reserve components: annual review.''.
    (2) The first review board under section 186 of title 10, United 
States Code (as added by paragraph (1)), shall be appointed during 
fiscal year 2006.

SEC. 903. CHAIN OF SUCCESSION FOR THE CHIEF OF THE NATIONAL GUARD 
              BUREAU.

    (a) Senior Officer.--(1) Section 10502 of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(e) Succession.--Unless otherwise directed by the President or 
the Secretary of Defense, the most senior officer among the officers of 
the Army National Guard of the United States and the officers of the 
Air National Guard of the United States performing the duties of 
positions in the National Guard Bureau shall act as the Chief of the 
National Guard Bureau during any period that--
            ``(1) there is a vacancy in the position of Chief of the 
        National Guard Bureau; or
            ``(2) the Chief is unable to perform the duties of that 
        position.''.
    (2)(A) The heading of such section is amended by adding at the end 
the following: ``; succession''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 1011 of such title is amended to read as 
follows:

``10502. Chief of the National Guard Bureau: appointment; adviser on 
                            National Guard matters; grade; 
                            succession.''.
    (b) Conforming Amendment.--Section 10505 of such title is amended 
by striking subsections (d) and (e).

SEC. 904. REDESIGNATION OF VICE CHIEF OF THE NATIONAL GUARD BUREAU AS 
              DIRECTOR OF THE JOINT STAFF OF THE NATIONAL GUARD BUREAU.

    (a) Redesignation of Position.--Subsection (a)(1) of section 10505 
of title 10, United States Code, is amended by striking ``Vice Chief of 
the National Guard Bureau'' and inserting ``Director of the Joint Staff 
of the National Guard Bureau''.
    (b) Conforming Amendments.--(1) Subsections (a)(3)(A), (a)(3)(B), 
(b), (c), and (d) of section 10505 of title 10, United States Code, are 
amended by striking ``Vice Chief of the National Guard Bureau'' and 
inserting ``Director of the Joint Staff of the National Guard Bureau''.
    (2) Subsection (a)(3)(B) of such section, as amended by paragraph 
(1), is further amended by striking ``as the Vice Chief'' and inserting 
``as the Director''.
    (3) Paragraphs (2) and (4) of subsection (a) of such section are 
amended by striking ``Chief and Vice Chief of the National Guard 
Bureau'' and inserting ``Chief of the National Guard Bureau and the 
Director of the Joint Staff of the National Guard Bureau''.
    (4)(A) Subsection (e) of such section is amended--
            (i) by striking ``Chief and Vice Chief of the National 
        Guard Bureau or in the absence or disability of both the Chief 
        and Vice Chief of the National Guard Bureau'' and inserting 
        ``Chief of the National Guard Bureau and the Director of the 
        Joint Staff of the National Guard Bureau or in the absence or 
        disability of both the Chief and the Director''; and
            (ii) by striking ``Chief or Vice Chief'' both places it 
        appears and inserting ``Chief or Director''.
    (B) The heading for such subsection is amended by striking ``Vice 
Chief.--'' and inserting ``Director of the Joint Staff.--''.
    (5) Section 10506(a)(1) of title 10, United States Code, is amended 
by striking ``Chief and Vice Chief of the National Guard Bureau'' and 
inserting ``Chief of the National Guard Bureau and the Director of the 
Joint Staff of the National Guard Bureau''.
    (c) Clerical Amendments.--(1) The heading for section 10505 of 
title 10, United States Code, is amended to read as follows:
``Sec. 10505. Director of the Joint Staff of the National Guard 
              Bureau''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 1011 of such title is amended to read as 
follows:

``10505. Director of the Joint Staff of the National Guard Bureau.''.
    (d) Other References.--Any reference that is made in any law, 
regulation, document, paper, or other record of the United States to 
the Vice Chief of the National Guard Bureau shall be deemed to be a 
reference to the Director of the Joint Staff of the National Guard 
Bureau.

SEC. 905. AUTHORITY TO REDESIGNATE THE NAVAL RESERVE.

    (a) Authority of Secretary of the Navy.--The Secretary of the Navy 
may, with the approval of the President, redesignate the Naval Reserve 
as the ``Navy Reserve'' effective on the date that is 180 days after 
the date on which the Secretary submits recommended legislation under 
subsection (b).
    (b) Recommended Legislation.--If the Secretary of the Navy 
exercises the authority to redesignate the Naval Reserve under 
subsection (a), the Secretary shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives recommended legislation that identifies each 
specific provision of law that refers to the Naval Reserve and sets 
forth an amendment to that specific provision of law to conform the 
reference to the new designation.
    (c) Effect of Redesignation.--On and after the effective date of a 
redesignation of the Naval Reserve under subsection (a), any reference 
in any law, map, regulation, document, paper, or other record of the 
United States to the Naval Reserve shall be deemed to be a reference to 
the Navy Reserve.

                       Subtitle B--Other Matters

SEC. 911. STUDY OF ROLES AND AUTHORITIES OF THE DIRECTOR OF DEFENSE 
              RESEARCH AND ENGINEERING.

    (a) Study Required.--The Secretary of Defense shall carry out a 
study of the roles and authorities of the Director of Defense Research 
and Engineering.
    (b) Content of Study.--The study under this section shall include 
the following:
            (1) An examination of the past and current roles and 
        authorities of the Director of Defense Research and 
        Engineering.
            (2) An analysis to determine appropriate future roles and 
        authorities for the Director, including an analysis of the 
        following matters:
                    (A) The relationship of the Director to other 
                senior science and technology and acquisition officials 
                of the military departments and the Defense Agencies
                    (B) The relationship of the Director to the 
                performance of the following functions:
                            (i) The planning, programming, and 
                        budgeting of the science and technology 
                        programs of the Department of Defense, 
                        including those of the military departments and 
                        the Defense Agencies.
                            (ii) The management of Department of 
                        Defense laboratories and technical centers, 
                        including the management of the Federal 
                        Government scientific and technical workforce 
                        for such laboratories and centers.
                            (iii) The promotion of the rapid transition 
                        of technologies to acquisition programs within 
                        the Department of Defense.
                            (iv) The promotion of the transfer of 
                        technologies into and from the commercial 
                        sector.
                            (v) The coordination of Department of 
                        Defense science and technology activities with 
                        organizations outside the Department of 
                        Defense, including other Federal Government 
                        agencies, international research organizations, 
                        industry, and academia.
                            (vi) The technical review of Department of 
                        Defense acquisition programs and policies.
                            (vii) The training and educational 
                        activities for the national scientific and 
                        technical workforce.
                            (viii) The development of science and 
                        technology policies and programs relating to 
                        the maintenance of the national technology and 
                        industrial base.
            (3) An examination of the duties of the Director as the 
        Chief Technology Officer of the Department of Defense, 
        especially in comparison to the duties of similar positions in 
        the Federal Government and industry.
            (4) An examination of any other matters that the Secretary 
        considers appropriate for the study.
    (c) Report.--(1) Not later than February 1, 2006, the Secretary 
shall submit a report on the results of the study under this section to 
the congressional defense committees.
    (2) The report shall include recommendations regarding the 
appropriate roles, authorities, and resources that should be assigned 
to the Director of Defense Research and Engineering in order to enable 
the Director to serve effectively as the Chief Technology Officer of 
the Department of Defense and to support the transformation of the 
Armed Forces.
    (d) Role of Defense Science Board in Study and Report.--The 
Secretary shall act through the Defense Science Board in carrying out 
the study under this section and preparing the report under subsection 
(c).

SEC. 912. DIRECTORS OF SMALL BUSINESS PROGRAMS.

    (a) Redesignation of Existing Positions and Offices.--(1) Each of 
the following positions within the Department of Defense is 
redesignated as the Director of Small Business Programs:
            (A) The Director of Small and Disadvantaged Business 
        Utilization of the Department of Defense.
            (B) The Director of Small and Disadvantaged Business 
        Utilization of the Department of the Army.
            (C) The Director of Small and Disadvantaged Business 
        Utilization of the Department of the Navy.
            (D) The Director of Small and Disadvantaged Business 
        Utilization of the Department of the Air Force.
    (2) Each of the following offices within the Department of Defense 
is redesignated as the Office of Small Business Programs:
            (A) The Office of Small and Disadvantaged Business 
        Utilization of the Department of Defense.
            (B) The Office of Small and Disadvantaged Business 
        Utilization of the Department of the Army.
            (C) The Office of Small and Disadvantaged Business 
        Utilization of the Department of the Navy.
            (D) The Office of Small and Disadvantaged Business 
        Utilization of the Department of the Air Force.
    (3) Any reference that is made in any law, regulation, document, 
paper, or other record of the United States to a position or office 
redesignated by paragraph (1) or (2) shall be deemed to be a reference 
to the position or office as so redesignated.
    (b) Department of Defense Position and Office.--(1) Chapter 4 of 
title 10, United States Code, is amended by inserting after section 
133b the following new section:
``Sec. 133c. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of Defense. The Director is appointed by the Secretary 
of Defense.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of Defense is the office that is 
established within the Office of the Secretary of Defense under section 
15(k) of the Small Business Act (15 U.S.C. 644(k)). The Director of 
Small Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of Defense, and shall 
exercise such powers regarding those programs, as the Secretary of 
Defense may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 133b the 
following new item:

``133c. Director of Small Business Programs.''.
    (c) Department of the Army Position and Office.--(1) Chapter 303 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 3024. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of the Army. The Director is appointed by the Secretary 
of the Army.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of the Army is the office that is 
established within the Department of the Army under section 15(k) of 
the Small Business Act (15 U.S.C. 644(k)). The Director of Small 
Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of the Army, and shall 
exercise such powers regarding those programs, as the Secretary of the 
Army may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3024. Director of Small Business Programs.''.
    (d) Department of the Navy Position and Office.--(1) Chapter 503 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 5028. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of the Navy. The Director is appointed by the Secretary 
of the Navy.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of the Navy is the office that is 
established within the Department of the Navy under section 15(k) of 
the Small Business Act (15 U.S.C. 644(k)). The Director of Small 
Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of the Navy, and shall 
exercise such powers regarding those programs, as the Secretary of the 
Navy may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5028. Director of Small Business Programs.''.
    (d) Department of the Air Force Position and Office.--(1) Chapter 
803 of title 10, United States Code, is amended by adding at the end 
the following new section:
``Sec. 8024. Director of Small Business Programs
    ``(a) Director.--There is a Director of Small Business Programs in 
the Department of the Air Force. The Director is appointed by the 
Secretary of the Air Force.
    ``(b) Office of Small Business Programs.--The Office of Small 
Business Programs of the Department of the Air Force is the office that 
is established within the Department of the Air Force under section 
15(k) of the Small Business Act (15 U.S.C. 644(k)). The Director of 
Small Business Programs is the head of such office.
    ``(c) Duties and Powers.--(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties regarding 
small business programs of the Department of the Air Force, and shall 
exercise such powers regarding those programs, as the Secretary of the 
Air Force may prescribe.
    ``(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies to 
the Director of Small Business Programs.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8024. Director of Small Business Programs.''.

SEC. 913. LEADERSHIP POSITIONS FOR THE NAVAL POSTGRADUATE SCHOOL.

    (a) Designation of President.--(1) The position of Superintendent 
of the Naval Postgraduate School is redesignated as President of the 
Naval Postgraduate School.
    (2) Any reference to the Superintendent of the Naval Postgraduate 
School in any law, rule, regulation, document, record, or other paper 
of the United States shall be deemed to be a reference to the President 
of the Naval Postgraduate School.
    (3) Sections 7042, 7044, 7048(a), and 7049(e) of title 10, United 
States Code, are amended by striking ``Superintendent'' each place it 
appears and inserting ``President''.
    (4) The heading of section 7042 of such title is amended by 
striking ``Superintendent;'' in the section heading and inserting 
``President;''.
    (b) Provost and Academic Dean.--(1) The position of Academic Dean 
of the Naval Postgraduate School is redesignated as Provost and 
Academic Dean of the Naval Postgraduate School.
    (2) Any reference to the Academic Dean of the Naval Postgraduate 
School in any law, rule, regulation, document, record, or other paper 
of the United States shall be deemed to be a reference to the Provost 
and Academic Dean of the Naval Postgraduate School.
    (3)(A) Subsection (a) of section 7043 of title 10, United States 
Code, is amended to read as follows:
    ``(a) There is at the Naval Postgraduate School the single civilian 
position of Provost and Academic Dean. The Provost and Academic Dean 
shall be appointed, to serve for periods of not more than five years, 
by the Secretary of the Navy. Before making an appointment to the 
position of Provost and Academic Dean, the Secretary shall consult with 
the Board of Advisors for the Naval Postgraduate School and consider 
any recommendation of the leadership and faculty of the Naval 
Postgraduate School regarding an appointment to the position.''.
    (B) The heading of such section is amended to read as follows:
``Sec. 7043. Provost and Academic Dean''.
    (4) Sections 7043(b) and 7081(a) of title 10, United States Code, 
are amended by striking ``Academic Dean'' and inserting ``Provost and 
Academic Dean''.
    (5) Section 5102(c)(10) of title 5, United States Code, is amended 
by striking ``Academic Dean of the Postgraduate School of the Naval 
Academy'' and inserting ``Provost and Academic Dean of the Naval 
Postgraduate School''.
    (c) Clerical Amendments.--The table of sections at the beginning of 
chapter 605 of such title 10, United States Code, is amended by 
striking the items related to sections 7042 and 7043 and inserting the 
following new items:

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

SEC. 914. UNITED STATES MILITARY CANCER INSTITUTE.

    (a) Establishment.--Chapter 104 of title 10, Unite States Code, is 
amended by adding at the end the following new section:
``Sec. 2117. United States Military Cancer Institute
    ``(a) Establishment.--(1) There is a United States Military Cancer 
Institute in the University. The Director of the United States Military 
Cancer Institute is the head of the Institute.
    ``(2) The Institute is composed of clinical and basic scientists in 
the Department of Defense who have an expertise in research, patient 
care, and education relating to oncology and who meet applicable 
criteria for participation in the Institute.
    ``(3) The components of the Institute include military treatment 
and research facilities that meet applicable criteria and are 
designated as affiliates of the Institute.
    ``(b) Research.--(1) The Director of the United States Military 
Cancer Institute shall carry out research studies on the following:
            ``(A) The epidemiological features of cancer, including 
        assessments of the carcinogenic effect of genetic and 
        environmental factors, and of disparities in health, inherent 
        or common among populations of various ethnic origins.
            ``(B) The prevention and early detection of cancer.
            ``(C) Basic, translational, and clinical investigation 
        matters relating to the matters described in subparagraphs (A) 
        and (B).
    ``(2) The research studies under paragraph (1) shall include 
complementary research on oncologic nursing.
    ``(c) Collaborative Research.--The Director of the United States 
Military Cancer Institute shall carry out the research studies under 
subsection (b) in collaboration with other cancer research 
organizations and entities selected by the Institute for purposes of 
the research studies.
    ``(d) Annual Report.--(1) Promptly after the end of each fiscal 
year, the Director of the United States Military Cancer Institute shall 
submit to the President of the University a report on the results of 
the research studies carried out under subsection (b).
    ``(2) Not later than 60 days after receiving the annual report 
under paragraph (1), the President of the University shall transmit 
such report to the Secretary of Defense and to Congress.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2117. United States Military Cancer Institute.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 2005 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of this section may not exceed 
$3,000,000,000.
    (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 2005.

    (a) Fiscal Year 2005 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2005 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 2004, of funds appropriated for fiscal years before 
        fiscal year 2005 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), $756,000 for 
        the Civil Budget.
            (2) Of the amount provided in section 301(1), $222,492,000 
        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. REDUCTION IN OVERALL AUTHORIZATION DUE TO INFLATION SAVINGS.

    (a) Reduction.--The total amount authorized to be appropriated by 
titles I, II, and III is the amount equal to the sum of the individual 
authorizations in those titles reduced by $1,670,000,000.
    (b) Source of Savings.--Reductions required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of the annual review of the budget 
conducted by the Office of Management and Budget.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the accounts in 
titles I, II, and III to reflect the extent to which net inflation 
savings are available in those accounts.

SEC. 1004. DEFENSE BUSINESS SYSTEMS INVESTMENT MANAGEMENT.

    (a) Requirement for Defense Business Enterprise Architecture and 
Transition Plan.--(1) Not later than September 30, 2005, the Secretary 
of Defense shall develop--
            (A) a defense business enterprise architecture covering all 
        defense business systems of the Department of Defense and the 
        functions and activities supported by such systems that--
                    (i) is sufficiently defined to effectively guide, 
                constrain, and permit implementation of interoperable 
                business system solutions; and
                    (ii) is consistent with the applicable policies and 
                procedures prescribed by the Director of the Office of 
                Management and Budget; and
            (B) a transition plan for implementing the defense business 
        enterprise architecture.
    (2) In carrying out paragraph (1), the Secretary shall act through 
the Defense Business Systems Management Committee established under 
subsection (h).
    (b) Composition of Enterprise Architecture.--The defense business 
enterprise architecture developed under subsection (a)(1)(A) shall 
include the following:
            (1) An information infrastructure that, at a minimum, would 
        enable the Department of Defense to--
                    (A) comply with all Federal accounting, financial 
                management, and reporting requirements;
                    (B) routinely produce timely, accurate, and 
                reliable financial information for management purposes;
                    (C) integrate budget, accounting, and program 
                information and systems; and
                    (D) provide for the systematic measurement of 
                performance, including the ability to produce timely, 
                relevant, and reliable cost information.
            (2) Policies, procedures, data standards, and system 
        interface requirements that are to apply uniformly throughout 
        the Department of Defense.
    (c) Composition of Transition Plan.--(1) The transition plan 
developed under subsection (a)(1)(B) shall include the following:
            (A) The acquisition strategy for new systems that are 
        expected to be needed to complete the defense business 
        enterprise architecture.
            (B) A listing of the defense business systems as of 
        December 2, 2002 (known as ``legacy systems''), that will not 
        be part of the objective defense business enterprise 
        architecture, together with the schedule for terminating those 
        legacy systems that provides for reducing the use of those 
        legacy systems in phases.
            (C) A listing of the legacy systems (referred to in 
        subparagraph (B)) that will be a part of the objective defense 
        business system, together with a strategy for making the 
        modifications to those systems that will be needed to ensure 
        that such systems comply with the defense business enterprise 
        architecture.
    (2) Each of the strategies under paragraph (1) shall include 
specific time-phased milestones, performance metrics, and a statement 
of the financial and nonfinancial resource needs.
    (d) Conditions for Use of Funds for Defense Business System 
Modernization.--(1) After September 30, 2005, an officer or employee of 
the United States may not obligate or expend an amount in excess of 
$1,000,000 for a defense business system modernization unless the 
Secretary of Defense or the official delegated authority for the system 
covered by such modernization under subsection (e) has determined in 
writing that such defense business system modernization--
            (A) is consistent with the defense business enterprise 
        architecture and transition plan developed under subsection 
        (a); or
            (B) is necessary to--
                    (i) achieve a critical national security capability 
                or address a critical requirement in an area such as 
                safety or security; or
                    (ii) prevent a significant adverse effect on a 
                project that is needed to achieve an essential 
                capability, taking into consideration the alternative 
                solutions for preventing such adverse effect.
    (2) A violation of paragraph (1) is a violation of section 
1341(a)(1)(A) of title 31, United States Code.
    (e) Accountability for Defense Business Systems.--The Secretary of 
Defense shall delegate authority for the planning, design, acquisition, 
development, deployment, operation, maintenance, modernization, and 
oversight of defense business systems as follows:
            (1) To the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, for--
                    (A) defense business systems the primary purpose of 
                which is to support acquisition activities in the 
                Department of Defense;
                    (B) defense business systems the primary purpose of 
                which is to support logistics activities in the 
                Department of Defense; and
                    (C) defense business systems the primary purpose of 
                which is to support installations and environment 
                activities in the Department of Defense.
            (2) To the Under Secretary of Defense (Comptroller) and 
        Chief Financial Officer, for--
                    (A) defense business systems the primary purpose of 
                which is to support financial management activities in 
                the Department of Defense; and
                    (B) defense business systems the primary purpose of 
                which is to support strategic planning and budgeting 
                activities in the Department of Defense.
            (3) To the Under Secretary of Defense for Personnel and 
        Readiness, for defense business systems the primary purpose of 
        which is to support human resource management activities in the 
        Department of Defense.
            (4) To the Assistant Secretary of Defense (Networks and 
        Information Integration) and Chief Information Officer, for 
        defense business systems the primary purpose of which is to 
        support information technology infrastructure and information 
        assurance activities of the Department of Defense.
            (5) To the Deputy Secretary of Defense or an Under 
        Secretary of Defense, as designated by the Secretary of 
        Defense, for defense business systems the primary purpose of 
        which is to support any activity of the Department of Defense 
        not described in another paragraph of this subsection.
    (f) Defense Business System Investment Review.--(1) The Secretary 
of Defense shall require each official to whom authority is delegated 
under subsection (e) to establish an investment review process to 
review the planning, design, acquisition, development, deployment, 
operation, maintenance, and modernization of all defense business 
systems covered by the authority so delegated to that official, and to 
analyze project cost benefits and risks of such systems.
    (2) Each investment review process established under paragraph (1) 
shall be consistent with the requirements of section 11312 of title 40, 
United States Code, and shall include the following features:
            (A) An investment review board composed of appropriate 
        officials from among the Armed Forces, combatant commands, the 
        Joint Staff, and Defense Agencies.
            (B) Review and approval, by the investment review board, of 
        each defense business system as an investment before the 
        obligation or expenditure of funds on such system.
            (C) Periodic review of each defense business system 
        investment not less often than annually.
            (D) Use of threshold criteria to ensure that each defense 
        business system investment, and that accountability for each 
        defense business system investment, is reviewed at a level of 
        review within the Department of Defense that is appropriate for 
        the scope, complexity, and cost of the investment.
            (E) Procedures for making determinations in accordance with 
        the requirements of subsection (d).
    (g) Defense Business Systems Budget Exhibit.--For each budget for a 
fiscal year after fiscal year 2005 that the President submits to 
Congress under section 1105(a) of title 31, United States Code, the 
Secretary of Defense shall include in the documentation on major 
functional category 050 (National Defense) that the Secretary submits 
to the congressional defense committees in support of such budget a 
defense business systems budget exhibit that includes the following 
information:
            (1) Identification of each defense business system for 
        which funding is proposed in that budget.
            (2) Identification of all funds, by appropriation, proposed 
        in that budget for each such system, including--
                    (A) funds for current services (to operate and 
                maintain the system); and
                    (B) funds for business systems modernization, 
                identified for each specific appropriation.
            (3) For each such system, identification of the official to 
        whom authority for such system is delegated under subsection 
        (e).
            (4) For each such system, a description of each 
        determination made under subsection (d) with regard to such 
        system.
    (h) Defense Business System Management Committee.--(1) The 
Secretary of Defense shall establish a Defense Business Systems 
Management Executive Committee. The Committee shall be composed of the 
following members:
            (A) The Deputy Secretary of Defense, who shall be the 
        chairman of the Committee.
            (B) The Under Secretary of Defense for Acquisition, 
        Logistics, and Technology.
            (C) The Under Secretary of Defense for Personnel and 
        Readiness.
            (D) The Under Secretary of Defense (Comptroller) and Chief 
        Financial Officer.
            (E) The Assistant Secretary of Defense (Networks and 
        Information Integration) and Chief Information Officer.
            (F) The Secretaries of the military departments.
            (G) The heads of the Defense Agencies.
            (H) Any personnel assigned to the Joint Staff, personnel 
        assigned to combatant commands, or other Department of Defense 
        personnel that the Secretary of Defense designates to serve on 
        the Committee.
    (2) In addition to any other duties assigned to the Committee by 
the Secretary of Defense, the Committee shall have the following 
duties:
            (A) To submit to the Secretary recommended policies and 
        procedures that the Committee considers necessary to 
        effectively integrate compliance with the requirements of this 
        section into all business activities and any transformation, 
        reform, reorganization, or process improvement initiatives 
        undertaken within the Department of Defense.
            (B) To review and approve defense business systems 
        modernization plans, including review and approval of any major 
        update of the defense business enterprise architecture.
            (C) To coordinate defense business system modernization 
        initiatives to maximize benefits and minimize costs for the 
        Department of Defense.
            (D) To ensure that funds are not obligated for the 
        modernization of any defense business system in violation of 
        subsection (d)(1).
            (E) To periodically report to the Secretary on the status 
        of defense business system modernization efforts.
    (i) Definitions.--In this section:
            (1) The term ``defense business system'' means any 
        information system (except a national security system, as 
        defined in section 2315 of title 10, United States Code) that 
        is operated by, for, or on behalf of the Department of Defense 
        to support business activities such as acquisition, financial 
        management, logistics, strategic planning and budgeting, 
        installations and environment, and human resource management.
            (2) The term ``enterprise architecture'' has the meaning 
        given that term in section 3601(4) of title 44, United States 
        Code.
            (3) The terms ``information system'' and ``information 
        technology'' have the meanings given those terms in section 
        11101 of title 40, United States Code.
            (4) The term ``modernization'', with respect to a defense 
        business system, means the acquisition or development of a new 
        defense business system or any significant modification or 
        enhancement of an existing defense business system (other than 
        as necessary to maintain current services).
    (j) Annual Report.--Not later than March 15 of 2005 and each year 
thereafter through 2009, the Secretary of Defense shall submit to the 
congressional defense committees a report on the progress made by the 
Department of Defense in implementing the defense business enterprise 
architecture and transition plan required by this section. Each report 
shall include, at a minimum, the following information:
            (1) A description of the specific actions taken and planned 
        to be taken to implement the defense business enterprise 
        architecture and the transition plan.
            (2) Specific milestones, performance measures, and resource 
        commitments for such actions.
    (k) Comptroller General Assessment.--Not later than 60 days after 
the date on which the Secretary of Defense approves the defense 
business enterprise architecture and transition plan developed under 
subsection (a), and again each year not later than 60 days after the 
submission of the annual report under subsection (j), the Comptroller 
General shall submit to the congressional defense committees an 
assessment of the extent to which the actions taken by the Department 
comply with the requirements of this section.
    (l) Relationship to Other Law.--Nothing in this section shall be 
construed to modify or affect the applicability of the restrictions and 
requirements provided in section 8088 of the Department of Defense 
Appropriations Act, 2003 (Public Law 107-248; 116 Stat. 1556).
    (m) Repeal of Superseded Law.--Section 1004 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public Law 
107-314; 116 Stat. 2629; 10 U.S.C. 113 note) is repealed.

SEC. 1005. UNIFORM FUNDING AND MANAGEMENT OF SERVICE ACADEMY ATHLETIC 
              AND EXTRACURRICULAR PROGRAMS AND SIMILAR SUPPLEMENTAL 
              MISSION ACTIVITIES.

    (a) United States Military Academy.--(1) Chapter 403 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 4359. Athletic and extracurricular programs: uniform funding
    ``The authority and conditions provided in subsections (a) and (b) 
of section 2494 of this title shall also apply to any athletic or other 
extracurricular program of the Academy that is not considered a morale, 
welfare, or recreation program referred to in such section.''.
    (2) The table of sections at the beginning of such title is amended 
by adding at the end the following new item:

``4359. Athletic and extracurricular programs: uniform funding.''.
    (b) United States Naval Academy.--(1) Chapter 603 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 6978. Athletic and extracurricular programs: uniform funding
    ``The authority and conditions provided in subsections (a) and (b) 
of section 2494 of this title shall also apply to any athletic or other 
extracurricular program of the Naval Academy that is not considered a 
morale, welfare, or recreation program referred to in such section.''.
    (2) The table of sections at the beginning of such title is amended 
by adding at the end the following new item:

``6978. Athletic and extracurricular programs: uniform funding.''.
    (c) United States Air Force Academy.--(1) Chapter 903 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 9358. Athletic and extracurricular programs: uniform funding
    ``The authority and conditions provided in subsections (a) and (b) 
of section 2494 of this title shall also apply to any athletic or other 
extracurricular program of the Academy that is not considered a morale, 
welfare, or recreation program referred to in such section.''.
    (2) The table of sections at the beginning of such title is amended 
by adding at the end the following new item:

``9358. Athletic and extracurricular programs: uniform funding.''.
    (d) Effective Date and Applicability.--This section and the 
amendments made by this section shall take effect on October 1, 2004, 
and shall apply with respect to funds appropriated for fiscal years 
beginning on or after such date.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. EXCHANGE AND SALE OF OBSOLETE NAVY SERVICE CRAFT AND BOATS.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by inserting after section 7309 the following new section:
``Sec. 7309a. Service craft and boats: exchange or sale
    ``(a) In General.--The Secretary of the Navy may, in acquiring 
personal property under section 503 of title 40, exchange or sell 
obsolete Navy service craft or boats that are similar to such personal 
property and apply the exchange allowance or proceeds of sale in whole 
or part payment for such personal property.
    ``(b) Use of Proceeds for Cost of Preparation of Sale.--In selling 
a service craft or boat under subsection (a), the Secretary shall 
obtain, to the extent practicable, amounts necessary to recover the 
full costs, whether direct or indirect, incurred by the Navy in 
preparing the service craft or boat for sale, including costs of 
towing, storage, defueling, removal and disposal of hazardous wastes, 
environmental surveys to determine the presence of regulated materials 
containing polychlorinated biphenyl (PCB), removal and disposal of such 
materials, and other related costs.
    ``(c) Treatment of Additional Proceeds.--(1) Any proceeds of sale 
of a service craft or boat under subsection (a) that are in addition to 
amounts necessary to recover the costs of the preparation of sale of 
the service craft or boat under subsection (b) shall be deposited in an 
account in the Treasury established for purposes of this section.
    ``(2) Amounts in the account under paragraph (1) shall be available 
to the Secretary for the payment of costs associated with the 
preparation of obsolete Navy service craft or boats for sale or 
exchange under this section. Amounts in the account shall be available 
for that purpose without fiscal year limitation.
    ``(3) The Secretary shall, on a periodic basis, deposit amounts in 
the account under paragraph (1) that are in excess of the amounts 
otherwise utilized under paragraph (2) in the general Treasury as 
miscellaneous receipts, or in another account in the Treasury as 
otherwise provided by law.
    ``(d) Inapplicability of Certain Procurement Requirements.--
Notwithstanding section 503(b)(3) of title 40, section 3709 of the 
Revised Statutes (41 U.S.C. 5) shall not apply to the exchange or sale 
of service craft or boats under this section.
    ``(e) Regulations.--The Secretary may prescribe regulations 
relating to the exercise of authority under this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7309 the following new item:

``7309a. Service craft and boats: exchange or sale.''.

SEC. 1012. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

    The Secretary of the Navy may not dispose of the decommissioned 
destroyer ex-Edson (DD-946) before October 1, 2007, to an entity that 
is not a nonprofit organization unless the Secretary first determines 
that there is no nonprofit organization that meets the criteria for 
donation of that vessel under section 7306(a)(3) of title 10, United 
States Code.

SEC. 1013. AWARD OF CONTRACTS FOR SHIP DISMANTLING ON NET COST BASIS.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by inserting after section 7305 the following new section:
``Sec. 7305a. Contracts for ship dismantling: award on net cost basis
    ``(a) Authority.--Notwithstanding any other provision of law, the 
Secretary of the Navy may use net cost as a criterion in the selection 
of an offeror for award of a contract for the dismantling of one or 
more ships stricken from the Naval Vessel Register and may accord that 
criterion such weight in the offer evaluation process as the Secretary 
considers appropriate and specifies in the solicitation of offers for 
that contract.
    ``(b) Competition.--In exercising the authority under this section, 
the Secretary shall to the maximum extent practicable use the 
competitive procedure or combination of competitive procedures that is 
best suited under the circumstances.
    ``(c) Retention of Proceeds.--When the Secretary of the Navy awards 
a ship dismantling contract on a net cost basis, the contractor may 
retain the proceeds from the sale of scrap and reusable items from the 
vessel being dismantled.
    ``(d) Definitions.--For purposes of this section:
            ``(1) The term `net cost', with respect to a contract for 
        the dismantling of a ship, means the amount equal to the excess 
        of--
                    ``(A) the amount of the contractor's gross cost of 
                performance of the contract, over
                    ``(B) the estimated value of scrap and reusable 
                items that the contractor removes from the ship during 
                performance of the contract, as stated in the 
                contractor's offer for such contract.
            ``(2) The term `scrap' means personal property that has no 
        value except for its basic material content.
            ``(3) The term `reusable item', with respect to a ship, 
        means any demilitarized component or removable portion of the 
        ship or the ship's equipment that the Navy has identified as 
        excess to its needs but which has potential resale value on the 
        open market.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7305 the following new item:

``7305a. Contracts for ship dismantling: award on net cost basis.''.

                          Subtitle C--Reports

SEC. 1021. REPORT ON CONTRACTOR SECURITY IN IRAQ.

    (a) Report Required.--(1) Not later than 90 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit a 
report on contractor security in Iraq to the congressional defense 
committees. The report shall include, at a minimum--
            (A) information on the security of contractor employees in 
        Iraq, as described in subsection (b);
            (B) information on contract security personnel in Iraq, as 
        described in subsection (c); and
            (C) any recommended actions that the Secretary considers 
        appropriate to enhance contractor security in Iraq.
    (2) The information included in the report shall be current as of 
September 30, 2004.
    (b) Security of Contractor Employees in Iraq.--The report under 
subsection (a) shall include information on contractor employees in 
Iraq, as follows:
            (1) The number of contractor employees in each of the 
        following categories of nationals:
                    (A) Nationals of the United States.
                    (B) Nationals of Iraq.
                    (C) Nationals of states other than the United 
                States and Iraq.
            (2) For each of the categories of nationals listed in 
        paragraph (1), the number of casualties among contractor 
        employees on and after May 1, 2003.
    (c) Contract Security Personnel.--The report required by subsection 
(a) shall include information on contract security personnel of a 
contractor in Iraq, as follows:
            (1) The number of contract security personnel engaged in 
        providing security services to personnel or facilities in each 
        of the following categories:
                    (A) Personnel or facilities of the United States 
                Government or the Coalition Provisional Authority.
                    (B) Personnel or facilities of the Iraqi 
                Government.
                    (C) Personnel or facilities of a contractor or 
                subcontractor.
            (2) For each of the categories of nationals listed in 
        subsection (b)(1), the following information:
                    (A) The number of contract security personnel.
                    (B) The range of annual rates of pay of the 
                contract security personnel.
                    (C) The number of casualties among the contract 
                security personnel on and after May 1, 2003.
            (3) The number, types, and sources of weapons that contract 
        security personnel are authorized to possess in each of the 
        following categories:
                    (A) Weapons provided by coalition forces.
                    (B) Weapons supplied by the contractor.
                    (C) Weapons supplied by other sources.
            (4) The extent to which contract security personnel are 
        equipped with other critical equipment, such as body armor, 
        armored vehicles, secure communications, and friend-foe 
        identification.
            (5) An assessment of the extent to which contract security 
        personnel have been engaged by hostile fire on and after May 1, 
        2003.
    (d) Forms of Report.--The report required by this section shall be 
submitted in classified and unclassified forms.
    (e) Definitions.--In this section:
            (1) The term ``contract security personnel'' includes 
        employees of a contractor or subcontractor who, under a covered 
        contract, provide security services in Iraq to--
                    (A) personnel or facilities of the United States 
                Government or the Coalition Provisional Authority;
                    (B) personnel or facilities of the Iraqi 
                Government; or
                    (C) personnel or facilities of a contractor.
            (2) The term ``covered contract''--
                    (A) means a contract entered into by an agency of 
                the United States Government or by the Coalition 
                Provisional Authority for the procurement of products 
                or services to be provided in Iraq, regardless of the 
                source of the funding for such procurement; and
                    (B) includes a subcontract under such a contract, 
                regardless of the source of the funding for such 
                procurement.
            (3) The term ``national of the United States'' has the 
        meaning given such term in section 101(22) of the Immigration 
        and Nationality Act (8 U.S.C. 1101(22)).
            (4) The term ``national'', except as provided in paragraph 
        (3), has the meaning given such term in section 101(21) of such 
        Act.

                 Subtitle D--Matters Relating to Space

SEC. 1031. SPACE POSTURE REVIEW.

    (a) Requirement for Comprehensive Review.--In order to clarify the 
national security space policy and strategy of the United States for 
the near term, the Secretary of Defense shall conduct a comprehensive 
review of the space posture of the United States over the posture 
review period.
    (b) Elements of Review.--The review conducted under subsection (a) 
shall include, for the posture review period, the following:
            (1) The role of space in United States military and 
        national security strategy, planning, and programming.
            (2) The policy, requirements, and objectives for space 
        situational awareness.
            (3) The policy, requirements, and objectives for space 
        control.
            (4) The policy, requirements, and objectives for space 
        superiority, including defensive and offensive counterspace.
            (5) The policy, requirements, and objectives for space 
        exploitation, including force enhancement and force 
        application.
            (6) The policy, requirements, and objectives for 
        intelligence surveillance and reconnaissance from space.
            (7) Current and planned space programs, including how each 
        such program will address the policy, requirements, and 
        objectives described in paragraphs (1) through (6).
            (8) The relationship among United States military space 
        policy and national security space policy, space objectives, 
        and arms control policy.
            (9) The type of systems, including space systems, that are 
        necessary to implement United States military and national 
        security space policies.
            (10) The effect of United States national security space 
        policy on weapons proliferation.
    (c) Reports.--(1) Not later than March 15, 2005, the Secretary of 
Defense shall submit to the congressional defense committees an interim 
report on the review conducted under subsection (a).
    (2) Not later than December 31, 2005, the Secretary shall submit to 
the congressional defense committees a final report on the review.
    (3) Each report under this subsection shall be submitted in 
unclassified form, but may include a classified annex.
    (d) Posture Review Period Defined.--In this section, the term 
``posture review period'' means the period beginning one year after the 
date of the enactment of this Act and ending ten years after that date.

SEC. 1032. PANEL ON THE FUTURE OF MILITARY SPACE LAUNCH.

    (a) In General.--(1) The Secretary of Defense shall enter into a 
contract with a federally funded research and development center to 
establish a panel on the future military space launch requirements of 
the United States, including means of meeting such requirements.
    (2) The Secretary shall enter into the contract not later than 60 
days after the date of the enactment of this Act.
    (b) Membership and Administration of Panel.--(1) The panel shall 
consist of individuals selected by the federally funded research and 
development center from among private citizens of the United States 
with knowledge and expertise in one or more of the following areas:
            (A) Space launch operations.
            (B) Space launch technologies.
            (C) Satellite and satellite payloads.
            (D) State and national launch complexes.
            (E) Space launch economics.
    (2) The federally funded research and development center shall 
establish appropriate procedures for the administration of the panel, 
including designation of the chairman of the panel from among its 
members.
    (3) All panel members shall hold security clearances appropriate 
for the work of the panel.
    (4) The panel shall convene its first meeting not later than 30 
days after the date on which all members of the panel have been 
selected.
    (c) Duties.--(1) The panel shall conduct a review and assessment of 
the future military space launch requirements of the United States, 
including the means of meeting such requirements.
    (2) The review and assessment shall take into account matters as 
follows:
            (A) Launch economics.
            (B) Operational concepts and architectures.
            (C) Launch technologies, including--
                    (i) reusable launch vehicles;
                    (ii) expendable launch vehicles;
                    (iii) low cost options; and
                    (iv) revolutionary approaches.
            (D) Payloads, including their implications for launch 
        requirements.
            (E) Launch infrastructure.
            (F) Launch industrial base.
            (G) Relationships among military, civilian, and commercial 
        launch requirements.
    (3) The review and assessment shall address military space launch 
requirements over each of the 5-year, 10-year, and 15-year periods 
beginning with 2005.
    (d) Cooperation of Federal Agencies.--(1) The panel may secure 
directly from the Department of Defense or any other department or 
agency of the Federal Government any information that the panel 
considers necessary to carry out its duties.
    (2) The Secretary of Defense shall designate at least one senior 
civilian employee of the Department of Defense and at least one general 
or flag officer of an Armed Force to serve as liaison between the 
Department, the Armed Forces, and the panel.
    (e) Report.--Not later than one year after the date of the first 
meeting of the panel under subsection (b)(4), the panel shall submit to 
the Secretary of Defense and the congressional defense committees a 
report on the results of the review and assessment under subsection 
(c). The report shall include--
            (1) the findings and conclusions of the panel on the future 
        military space launch requirements of the United States, 
        including means of meeting such requirements;
            (2) the assessment of panel, and any recommendations of the 
        panel, on--
                    (A) launch operational concepts and architectures;
                    (B) launch technologies;
                    (C) launch enabling technologies; and
                    (D) priorities for funding; and
            (3) the assessment of the panel as to the best means of 
        meeting the future military space launch requirements of the 
        United States.
    (f) Termination.--The panel shall terminate 16 months after the 
date on which the chairman of the panel is designated pursuant to 
subsection (b)(2).
    (g) Funding.--Amounts authorized to be appropriated to the 
Department of Defense shall be available to the Secretary of Defense 
for purposes of the contract required by subsection (a).

SEC. 1033. OPERATIONALLY RESPONSIVE NATIONAL SECURITY PAYLOADS FOR 
              SPACE SATELLITES.

    (a) Planning, Programming, and Management.--(1) Chapter 135 of 
title 10, United States Code, is amended by inserting after section 
2273 the following new section:
``Sec. 2273a. Operationally responsive national security payloads
    ``(a) Requirement for Program Element.--The Secretary of Defense 
shall ensure that operationally responsive national security payloads 
of the Department of Defense for space satellites are planned, 
programmed, and budgeted for as a separate, dedicated program element.
    ``(b) Management Authority.--The Secretary of Defense shall assign 
management authority for the program element required under subsection 
(a) to the Director of the Office of Force Transformation.
    ``(c) Definition of Operationally Responsive.--In this section, the 
term `operationally responsive', with respect to a national security 
payload for a space satellite, means an experimental or operational 
payload not in excess of 5,000 pounds that--
            ``(1) can be developed and acquired within 18 months after 
        authority to proceed with development is granted; and
            ``(2) is responsive to requirements for capabilities at the 
        operational and tactical levels of warfare.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2273 the 
following new item:

``2273a. Operationally responsive national security payloads.''.
    (b) Time for Implementation.--Section 2273a(a) of title 10, United 
States Code, shall apply with respect to fiscal years beginning after 
September 30, 2005.
    (c) Funding.--Of the amount authorized to be appropriated under 
section 201(4), $25,000,000 shall be available for research, 
development, test, and evaluation of operationally responsive national 
security payloads for space satellites.

SEC. 1034. NONDISCLOSURE OF CERTAIN PRODUCTS OF COMMERCIAL SATELLITE 
              OPERATIONS.

    (a) Disclosure Prohibited.--Land remote sensing information may not 
be disclosed under section 552 of title 5, United States Code.
    (b) Land Remote Sensing Information Defined.--In this section, the 
term ``land remote sensing information''--
            (1) means any data that--
                    (A) are collected by land remote sensing; and
                    (B) are prohibited from sale to customers other 
                than the United States Government and its affiliated 
                users under the Land Remote Sensing Policy Act of 1992 
                (15 U.S.C. 5601 et seq.); and
            (2) includes any imagery and other product that is derived 
        from such data.
    (c) State or Local Government Disclosures.--Land remote sensing 
information provided by the head of a department or agency of the 
United States to a State or local government may not be made available 
to the general public under any State or local law relating to the 
disclosure of information or records.
    (d) Safeguarding Information.--The head of each department or 
agency of the United States having land remote sensing information 
within that department or agency or providing such information to a 
State or local government shall take such actions, commensurate with 
the sensitivity of that information, as are necessary to protect that 
information from disclosure prohibited under this section.
    (e) Other Definitions.--In this section, the terms ``land remote 
sensing'' and ``United States Government and its affiliated users'' 
have the meanings given such terms in section 3 of such Act (15 U.S.C. 
5602).

                 Subtitle E--Defense Against Terrorism

SEC. 1041. TEMPORARY ACCEPTANCE OF COMMUNICATIONS EQUIPMENT PROVIDED BY 
              LOCAL PUBLIC SAFETY AGENCIES.

    (a) Authority.--Chapter 155 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2613. Emergency communications equipment: temporary acceptance 
              from local public safety agencies
    ``(a) Authority for Temporary Acceptance of Equipment.--(1) Under 
regulations prescribed by the Secretary concerned, the commander of a 
military installation may include in a disaster response agreement with 
a local public safety agency a clause that provides for the commander 
to accept from the public safety agency for use during a natural or 
man-made disaster any communications equipment that is useful for 
communicating with such agency during a joint response by the commander 
and such agency to such disaster.
    ``(2) The authority under paragraph (1) includes authority to 
accept services related to the operation and maintenance of 
communications equipment accepted under that paragraph.
    ``(3) In the case of a military installation administered by an 
officer or employee of the United States, such officer or employee may 
exercise the authority of a commander under this section.
    ``(b) Conditions.--Acceptance of communications equipment and 
services by a commander from a public safety agency under subsection 
(a) is subject to the following conditions:
            ``(1) Acceptance of equipment is authorized only to the 
        extent that communications equipment under the control of the 
        commander is inadequate to meet requirements for communicating 
        with that public safety agency during a joint response to a 
        disaster.
            ``(2) Acceptance of services for the operation or 
        maintenance of communications equipment is authorized only to 
        the extent that capabilities under the control of the commander 
        are inadequate to operate or maintain such equipment.
    ``(c) Liability.--(1) An emergency response agreement under this 
section shall include a clause that--
            ``(A) specifies the means for the commander to pay for use, 
        loss, or damage of equipment, and for services, accepted under 
        the agreement; or
            ``(B) ensures that the United States is not liable for 
        costs incurred for the acceptance and use of the equipment or 
        services nor for any loss or damage of such equipment.
    ``(2) No person providing services accepted under an emergency 
response agreement may be considered to be an officer, employee, or 
agent of the United States for any purpose.
    ``(d) Guidance.--The Secretary of Defense shall prescribe guidance 
for the administration of the requirements and authority under this 
section.
    ``(e) Definitions.--In this section:
            ``(1) The term `emergency response agreement' means a 
        memorandum of agreement or memorandum of understanding that 
        provides for mutual support by Department of Defense personnel 
        and local public safety agency personnel in response to a 
        natural or man-made disaster.
            ``(2) The term `military installation' has the meaning 
        given such term in section 2801(c) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2613. Emergency communications equipment: temporary acceptance from 
                            local public safety agencies.''.

SEC. 1042. FULL-TIME DEDICATION OF AIRLIFT SUPPORT FOR HOMELAND DEFENSE 
              OPERATIONS.

    (a) Determination Required.--(1) The Secretary of Defense shall 
determine the feasibility and advisability of dedicating an airlift 
capability of the Armed Forces on a full-time basis to the support of 
homeland defense operations, including operations in support of 
contingent requirements for transporting Weapons of Mass Destruction 
Civil Support Teams, Air Force expeditionary medical teams, and 
Department of Energy emergency response teams in response to natural 
disasters and man-made disasters.
    (2) In making the determination under paragraph (1), the Secretary 
shall take into consideration the results of the study required under 
subsection (b).
    (b) Requirement for Study and Plan.--(1) The Secretary of Defense 
shall conduct a study of the existing plans and capabilities of the 
Department of Defense for meeting contingent requirements for 
transporting teams described in subsection (a)(1) in response to 
natural disasters and man-made disasters.
    (2) The Secretary shall prepare a plan for resolving any 
deficiencies in the existing plans and capabilities for meeting the 
transportation requirements described in paragraph (1).
    (3) The Secretary of Defense shall require the commander of the 
United States Northern Command and the commander of the United States 
Transportation Command to carry out jointly the study required under 
paragraph (1) and to prepare jointly the plan required under paragraph 
(2).
    (c) Report.--Not later than April 1, 2005, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the results of the study under 
subsection (b). The report shall include the following matters:
            (1) The Secretary's determination under subsection (a).
            (2) An assessment and discussion of the adequacy of 
        existing plans and capabilities of the Department of Defense 
        for meeting the transportation requirements described in 
        subsection (b)(1).
            (3) The plan required under subsection (b)(2).
    (d) Definition.--In this section, the term ``Weapons of Mass 
Destruction Civil Support Team'' has the meaning given such term in 
section 305b(e) of title 37, United States Code.

SEC. 1043. SURVIVABILITY OF CRITICAL SYSTEMS EXPOSED TO CHEMICAL OR 
              BIOLOGICAL CONTAMINATION.

    (a) Requirement for Implementation Plan.--Not later than 120 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a plan, for 
implementation by the Department of Defense, that sets forth a 
systematic approach for ensuring the survivability of defense critical 
systems upon contamination of such systems by chemical or biological 
agents.
    (b) Content.--At a minimum, the plan under subsection (a) shall 
include--
            (1) policies for ensuring that the survivability of defense 
        critical systems in the event of contamination by chemical or 
        biological agents is adequately addressed throughout the 
        Department of Defense;
            (2) a systematic process for identifying which systems are 
        defense critical systems;
            (3) specific testing procedures to be used during the 
        design and development of new defense critical systems; and
            (4) a centralized database that--
                    (A) contains comprehensive information on the 
                effects of chemical and biological agents and 
                decontaminants on materials used in defense critical 
                systems; and
                    (B) is easily accessible to personnel who have 
                duties to ensure the survivability of defense critical 
                systems upon contamination of such systems by chemical 
                and biological agents.
    (c) Defense Critical Systems Defined.--In this section, the term 
``defense critical system'' means a Department of Defense system that 
is critical to the national security of the United States.

             Subtitle F--Matters Relating to Other Nations

SEC. 1051. HUMANITARIAN ASSISTANCE FOR THE DETECTION AND CLEARANCE OF 
              LANDMINES AND EXPLOSIVE REMNANTS OF WAR.

    (a) Restatement and Expansion of Authority.--(1) Chapter 20 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 406. Humanitarian assistance for the detection and clearance of 
              landmines and explosive remnants of war
    ``(a) In General.--Under regulations prescribed by the Secretary of 
Defense, members of the armed forces may provide humanitarian 
assistance for the detection and clearance of landmines or explosive 
remnants of war in a foreign country, including activities relating to 
the furnishing of education, training, and technical assistance, if the 
Secretary determines that the provision of such assistance will 
promote--
            ``(1) the security interests of both the United States and 
        the country in which such assistance is to be provided; and
            ``(2) the specific operational readiness skills of the 
        members of the armed forces who provide such assistance.
    ``(b) Limitations on Activities of Members of the Armed Forces.--
The Secretary shall ensure that no member of the armed forces, while 
providing assistance under this section--
            ``(1) engages in the physical detection, lifting or 
        destroying of landmines or explosive remnants of war (unless 
        the member does so for the concurrent purpose of supporting a 
        United States military operation); or
            ``(2) provides such assistance as part of a military 
        operation that does not involve the armed forces.
    ``(c) Requirement for Approval of Secretary of State.--Humanitarian 
assistance for the detection and clearance of landmines and remnants of 
war may not be provided under this section to any foreign country 
unless the Secretary of State specifically approves the provision of 
such assistance to such foreign country.
    ``(d) Availability of Funds for Certain Expenses.--(1) To the 
extent provided in Acts authorizing appropriations for military 
activities of the Department of Defense, funds authorized to be 
appropriated to the Department for a fiscal year for humanitarian 
assistance shall be available for the purpose of providing assistance 
under this section.
    ``(2) Expenses incurred as a direct result of providing 
humanitarian assistance under this section to a foreign country shall 
be paid out of funds specifically appropriated for such purpose.
    ``(3) Expenses covered by paragraph (2) include the following:
            ``(A) Travel, transportation, and subsistence expenses of 
        Department of Defense personnel providing humanitarian 
        assistance under this section.
            ``(B) The cost of any equipment, services, or supplies 
        acquired for the purpose of carrying out or supporting the 
        provision of such assistance, including any nonlethal, 
        individual, or small-team landmine or explosive remnant of war 
        clearing equipment or supplies that are to be transferred or 
        otherwise furnished to a foreign country in furtherance of the 
        provision of assistance under this section.
    ``(4) The cost of equipment, services and supplies provided in any 
fiscal year to a foreign country under paragraph (3)(B) may not exceed 
$5,000,000.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``406. Humanitarian assistance for the detection and clearance of 
                            landmines and explosive remnants of war.''.
    (b) Repeal of Superseded Authority.--Section 401 of such title is 
amended--
            (1) in subsection (a), by striking paragraph (4);
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``(1)''; and
                    (B) by striking paragraph (2);
            (3) in subsection (c)--
                    (A) by striking paragraphs (2) and (3); and
                    (B) by redesignating paragraph (4) as paragraph 
                (2); and
            (4) in subsection (e), by striking paragraph (5).

SEC. 1052. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTERTERRORISM 
              CAMPAIGN IN COLOMBIA.

    (a) Authority.--(1) In fiscal years 2005 and 2006, funds available 
to the Department of Defense to provide assistance to the Government of 
Colombia may be used by the Secretary of Defense to support a unified 
campaign by the Government of Colombia 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 8077 of the Department of Defense 
        Appropriations Act, 2004 (Public Law 108-87; 117 Stat. 1090).
    (c) Numerical Limitation on Assignment of United States 
Personnel.--Notwithstanding section 3204(b) of the Emergency 
Supplemental Act, 2000 (Division B of Public Law 106-246; 114 Stat. 
575), as amended by the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 2002 (Public Law 107-115; 115 
Stat. 2131), the number of United States personnel assigned to conduct 
activities in Colombia in connection with support of Plan Colombia 
under subsection (a) in fiscal years 2005 and 2006 shall be subject to 
the following limitations:
            (1) The number of United States military personnel assigned 
        for temporary or permanent duty in Colombia in connection with 
        support of Plan Colombia may not exceed 800.
            (2) The number of United States individual citizens 
        retained as contractors in Colombia in connection with support 
        of Plan Colombia who are funded by Federal funds may not exceed 
        600.
    (d) Limitation on Participation of United States Personnel.--No 
United States Armed Forces personnel, United States civilian employees, 
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.
    (e) Relation to Other Authority.--The authority provided by 
subsection (a) is in addition to any other authority in law to provide 
assistance to the Government of Colombia.

SEC. 1053. ASSISTANCE TO IRAQ AND AFGHANISTAN MILITARY AND SECURITY 
              FORCES.

    (a) Authority.--Subject to the limitations in subsection (c), the 
Secretary of Defense may provide assistance in fiscal year 2005 to Iraq 
and Afghanistan military or security forces solely to enhance their 
ability to combat terrorism and support United States or coalition 
military operations in Iraq and Afghanistan, respectively.
    (b) Type of Assistance.--Assistance provided under subsection (a) 
may include equipment, supplies, services, and training.
    (c) Limitations.--(1) The Secretary of Defense may provide 
assistance under this section only with the concurrence of the 
Secretary of State.
    (2) The cost of assistance provided under this section may be paid 
only out of funds available to the Department of Defense for fiscal 
year 2005 for operation and maintenance and may not exceed 
$150,000,000.
    (d) Relationship to Other Authority.--The authority to provide 
assistance under this section is in addition to any other authority to 
provide assistance to Iraq and Afghanistan.
    (e) Congressional Notification.--Not later than 15 days before 
providing assistance to a recipient under this section, the Secretary 
of Defense shall submit to the congressional defense committees a 
notification of the assistance proposed to be provided.

SEC. 1054. ASSIGNMENT OF NATO NAVAL PERSONNEL TO SUBMARINE SAFETY 
              RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Authority.--Chapter 631 of title 10, United States Code, is 
amended by inserting after the item relating to section 7205 the 
following new section:
``Sec. 7206. Submarine safety research and development: acceptance of 
              services of NATO naval personnel
    ``(a) Authority.--The Secretary of the Navy may, subject to 
subsection (e), accept the assignment of one or more members of the 
navy of another member country of the North Atlantic Treaty 
Organization to a command of the Navy for work on the development, 
standardization, or interoperability of submarine vessel safety and 
rescue systems and procedures if the Secretary determines that doing so 
would facilitate the development, standardization, and interoperability 
of submarine vessel safety and rescue systems and procedures for the 
Navy, the navy of that foreign country, and any other navy involved in 
that work.
    ``(b) Reciprocity Not Required.--The authority under subsection (a) 
is not an exchange program. Reciprocal assignments of members of the 
Navy to a navy of a foreign country is not a condition for the exercise 
of such authority.
    ``(c) Payment of Personnel Costs.--(1) The acceptance of a member 
of a navy of a foreign country under this section is subject to the 
condition that the government of that country pay the salary, per diem 
allowance, subsistence costs, travel costs, cost of language or other 
training, and other costs for that member in accordance with the laws 
and regulations of such country.
    ``(2) Paragraph (1) does not apply to the following costs:
            ``(A) The cost of temporary duty directed by the Secretary 
        of the Navy or an officer of the Navy authorized to do so.
            ``(B) The cost of a training program conducted to 
        familiarize, orient, or certify foreign naval personnel 
        regarding unique aspects of their assignments.
            ``(C) Any cost incident to the use of the facilities of the 
        Navy in the performance of assigned duties.
    ``(d) Relationship to Other Authority.--The provisions of this 
section shall apply to any other authority that the Secretary of the 
Navy may exercise, subject to the concurrence of the Secretary of 
State, to enter into an agreement with the government of a foreign 
country to provide for the assignment of members of the navy of that 
foreign country to a Navy submarine safety program. The Secretary of 
the Navy may prescribe regulations for the application of this section 
in the exercise of such authority.
    ``(e) Termination of Authority.--The Secretary of the Navy may not 
accept the assignment of a member of the navy of a foreign country 
under this section after September 30, 2008.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7205 the following new item:

``7206. Submarine safety research and development: acceptance of 
                            services of NATO naval personnel.''.

                       Subtitle G--Other Matters

SEC. 1061. TECHNICAL AMENDMENTS RELATING TO DEFINITIONS OF GENERAL 
              APPLICABILITY IN TITLE 10, UNITED STATES CODE.

    (a) Clarification of Definition of ``Operational Range''.--Section 
101(e)(3) of title 10, United States Code, is amended by striking 
``Secretary of Defense'' and inserting ``Secretary of a military 
department''.
    (b) Amendments Relating to Definition of Congressional Defense 
Committees.--(1) Section 2215 of title 10, United States Code, is 
amended--
            (A) in subsection (a)--
                    (i) by striking ``(a) Certification Required.--''; 
                and
                    (ii) by striking ``congressional committees 
                specified in subsection (b)'' and inserting 
                ``congressional defense committees''; and
            (B) by striking subsection (b).
    (2) Section 2515(d) of such title is amended--
            (A) by striking ``Report.--(1)'' and inserting ``Report.--
        '';
            (B) by striking ``congressional committees specified in 
        paragraph (2)'' and inserting ``congressional defense 
        committees''; and
            (C) by striking paragraph (2).
    (3) Section 2676(d) of such title is amended by striking 
``appropriate committees of Congress'' in the first sentence and 
inserting ``congressional defense committees''.

SEC. 1062. TWO-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF DEFENSE TO 
              ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
              INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

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

SEC. 1063. LIABILITY PROTECTION FOR PERSONS VOLUNTARILY PROVIDING 
              MARITIME-RELATED SERVICES ACCEPTED BY THE NAVY.

    Section 1588(d)(1) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
            ``(F) In the case of a person aboard a sailing vessel of 
        the Navy to engage in the training of Navy personnel or in a 
        competition involving Navy personnel, the following provisions 
        of law relating to claims in admiralty for damages or loss:
                    ``(i) The Act entitled `An Act authorizing suits 
                against the United States in admiralty, suits for 
                salvage services, and providing for the release of 
                merchant vessels belonging to the United States from 
                arrest and attachment in foreign jurisdictions, and for 
                other purposes', approved March 9, 1920 (commonly known 
                as the `Suits in Admiralty Act') (46 U.S.C. App. 741 et 
                seq.).
                    ``(ii) The Act entitled `An Act authorizing suits 
                against the United States in admiralty for damage 
                caused by and salvage services rendered to public 
                vessels belonging to the United States, and for other 
                purposes', approved March 3, 1925 (commonly known as 
                the `Public Vessels Act') (46 U.S.C. App. 781 et 
                seq.).''.

SEC. 1064. LICENSING OF INTELLECTUAL PROPERTY.

    (a) Authority.--Subchapter II of chapter 134 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 2260. Licensing of intellectual property: retention of fees
    ``(a) Authority.--Under regulations prescribed by the Secretary of 
Defense, the Secretary concerned may license trademarks, service marks, 
certification marks, and collective marks owned or controlled by the 
Secretary concerned and may retain and expend fees received from such 
licensing in accordance with this section.
    ``(b) Designated Marks.--The Secretary concerned shall designate 
the trademarks, service marks, certification marks, and collective 
marks as to which the Secretary exercises the authority to retain 
licensing fees under this section.
    ``(c) Use of Fees.--The Secretary concerned shall use fees retained 
under this section for purposes as follows:
            ``(1) For payment of the following costs incurred by the 
        Secretary:
                    ``(A) Costs of securing trademark registrations.
                    ``(B) Costs of operating the licensing program 
                under this section.
            ``(2) For morale, welfare, and recreation activities under 
        the jurisdiction of the Secretary, to the extent (if any) that 
        the total amount of the licensing fees available under this 
        section for a fiscal year exceed the total amount needed for 
        such fiscal year under paragraph (1).
    ``(d) Availability.--Fees received in a fiscal year and retained 
under this section shall be available for obligations in such fiscal 
year and the following two fiscal years.
    ``(e) Definitions.--In this section, the terms `trademark', 
`service mark', `certification mark', and `collective mark' have the 
meanings given such terms in section 45 of the Act entitled `An Act to 
provide for the registration and protection of trademarks used in 
commerce, to carry out the provisions of certain international 
conventions, and for other purposes', approved July 5, 1946 (commonly 
referred to as the `Trademark Act of 1946') (15 U.S.C. 1127).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2260. Licensing of intellectual property: retention of fees.''.

SEC. 1065. DELAY OF ELECTRONIC VOTING DEMONSTRATION PROJECT.

    Section 1604(a) of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1277; 42 U.S.C. 1973ff 
note) is amended--
            (1) in paragraph (1), by striking ``2002'' and inserting 
        ``2006''; and
            (2) in paragraph (2)--
                    (A) by striking ``2002'' and inserting ``2006''; 
                and
                    (B) by striking ``2004'' and inserting ``2008''.

SEC. 1066. WAR RISK INSURANCE FOR MERCHANT MARINE VESSELS.

    (a) Extension of Authority.--Section 1214 of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1294) is amended by striking ``June 30, 
2005'' and inserting ``December 31, 2008''.
    (b) Investment of Funds Excess to Short-Term Needs.--Section 1208 
of such Act (46 U.S.C. App. 1288) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) in subsection (a), by striking ``Upon the request of 
        the Secretary of Transportation,'' and all that follows and 
        inserting the following:
    ``(b)(1) The Secretary of Transportation may request the Secretary 
of the Treasury to invest such portion of the insurance fund under 
subsection (a) as is not, in the judgment of the Secretary of 
Transportation, required to meet the current needs of the fund. The 
Secretary of the Treasury may make the requested investments.
    ``(2) Investments under paragraph (1) shall be made in public debt 
securities of the United States that--
            ``(A) mature at times suitable to the needs of the 
        insurance fund; and
            ``(B) bear interest rates determined by the Secretary of 
        the Treasury, taking into consideration current market yields 
        on outstanding marketable obligations of the United States of 
        comparable maturity.
    ``(3) The interest and benefits accruing from securities under this 
subsection shall be deposited to the credit of the insurance fund.''.

SEC. 1067. REPEAL OF QUARTERLY REPORTING REQUIREMENT CONCERNING 
              PAYMENTS FOR DISTRICT OF COLUMBIA WATER AND SEWER 
              SERVICES AND ESTABLISHMENT OF ANNUAL REPORT BY TREASURY.

    (a) Water and Water Service Supplied for the Use of the Government 
of the United States.--Section 106(b)(5) of the District of Columbia 
Public Works Act of 1954 (sec. 34-2401.25(b), D.C. Official Code), as 
amended by section 401 of the Miscellaneous Appropriations Act, 2001 
(as enacted by reference in section 1(a)(4) of the Consolidated 
Appropriations Act, 2001), is amended to read as follows:
    ``(5) Not later than the 15th day of the month following the 
beginning of the fiscal year (beginning with fiscal year 2005), the 
Secretary of the Treasury with respect to each Federal department, 
establishment, or agency receiving water services from the District of 
Columbia shall submit a report to the Committee on Government Reform of 
the House of Representatives, the Committee on Governmental Affairs of 
the Senate, and the Committees on Appropriations of the House of 
Representatives and Senate analyzing the promptness of payment with 
respect to the services furnished to such department, establishment, or 
agency.''.
    (b) Sanitary Sewer Service Charges for United States Government.--
Section 212(b)(5) of the District of Columbia Public Works Act of 1954 
(sec. 34-2112(b), D.C. Official Code), as amended by section 401 of the 
Miscellaneous Appropriations Act, 2001 (as enacted by reference in 
section 1(a)(4) of the Consolidated Appropriations Act, 2001), is 
amended to read as follows:
    ``(5) Not later than the 15th day of the month following the 
beginning of the fiscal year (beginning with fiscal year 2005), the 
Secretary of the Treasury with respect to each Federal department, 
establishment, or agency receiving sanitary sewer services from the 
District of Columbia shall submit a report to the Committee on 
Government Reform of the House of Representatives, the Committee on 
Governmental Affairs of the Senate, and the Committees on 
Appropriations of the House of Representatives and Senate analyzing the 
promptness of payment with respect to the services furnished to such 
department, establishment, or agency.''.

       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

SEC. 1101. SCIENCE, MATHEMATICS, AND RESEARCH FOR TRANSFORMATION 
              (SMART) DEFENSE SCHOLARSHIP PILOT PROGRAM.

    (a) Requirement for Program.--(1) The Secretary of Defense shall 
carry out a pilot program to provide financial assistance for education 
in science, mathematics, engineering, and technology skills and 
disciplines that, as determined by the Secretary, are critical to the 
national security functions of the Department of Defense and are needed 
in the Department of Defense workforce.
    (2) The pilot program under this section shall be carried out for 
three years beginning on October 1, 2004.
    (b) Scholarships.--(1) Under the pilot program, the Secretary of 
Defense may award a scholarship in accordance with this section to a 
person who--
            (A) is a citizen of the United States;
            (B) is pursuing an undergraduate or advanced degree in a 
        critical skill or discipline described in subsection (a) at an 
        institution of higher education; and
            (C) enters into a service agreement with the Secretary of 
        Defense as described in subsection (c).
    (2) The amount of the financial assistance provided under a 
scholarship awarded to a person under this subsection shall be the 
amount determined by the Secretary of Defense as being necessary to pay 
all educational expenses incurred by that person, including tuition, 
fees, cost of books, laboratory expenses, and expenses of room and 
board. The expenses paid, however, shall be limited to those 
educational expenses normally incurred by students at the institution 
of higher education involved.
    (c) Service Agreement for Recipients of Assistance.--(1) To receive 
financial assistance under this section--
            (A) in the case of an employee of the Department of 
        Defense, the employee shall enter into a written agreement to 
        continue in the employment of the department for the period of 
        obligated service determined under paragraph (2); and
            (B) in the case of a person not an employee of the 
        Department of Defense, the person shall enter into a written 
        agreement to accept and continue employment in the Department 
        of Defense for the period of obligated service determined under 
        paragraph (2).
    (2) For the purposes of this subsection, the period of obligated 
service for a recipient of a scholarship under this section shall be 
the period determined by the Secretary of Defense as being appropriate 
to obtain adequate service in exchange for the financial assistance 
provided under the scholarship. In no event may the period of service 
required of a recipient be less than the total period of pursuit of a 
degree that is covered by the scholarship. The period of obligated 
service is in addition to any other period for which the recipient is 
obligated to serve in the civil service of the United States.
    (3) An agreement entered into under this subsection by a person 
pursuing an academic degree shall include any terms and conditions that 
the Secretary of Defense determines necessary to protect the interests 
of the United States or otherwise appropriate for carrying out this 
section.
    (d) Refund for Period of Unserved Obligated Service.--(1) A person 
who voluntarily terminates service before the end of the period of 
obligated service required under an agreement entered into under 
subsection (c) shall refund to the United States an amount determined 
by the Secretary of Defense as being appropriate to obtain adequate 
service in exchange for financial assistance.
    (2) An obligation to reimburse the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    (3) The Secretary of Defense 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.
    (4) A discharge in bankruptcy under title 11, United States Code, 
that is entered less than five years after the termination of an 
agreement under this section does not discharge the person signing such 
agreement from a debt arising under such agreement or under this 
subsection.
    (e) Relationship to Other Programs.--The pilot program under this 
section is in addition to the authorities provided in chapter 111 of 
title 10, United States Code. The Secretary of Defense shall coordinate 
the provision of financial assistance under the authority of this 
section with the provision of financial assistance under the 
authorities provided in such chapter in order to maximize the benefits 
derived by the Department of Defense from the exercise of all such 
authorities.
    (f) Recommendation on Pilot Program.--Not later than February 1, 
2007, the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a plan for 
expanding and improving the national defense science and engineering 
workforce educational assistance pilot program carried out under this 
section as appropriate to improve recruitment and retention to meet the 
requirements of the Department of Defense for its science and 
engineering workforce on a short-term basis and on a long-term basis.
    (g) Institution of Higher Education Defined.--In this section, the 
term ``institution of higher education'' has the meaning given such 
term in section 101 of the Higher Education Act of 1965 (21 U.S.C. 
1001).

SEC. 1102. FOREIGN LANGUAGE PROFICIENCY PAY.

    (a) Eligibility for Service Not Related to Contingency 
Operations.--Section 1596a(a)(2) of title 10, United States Code, is 
amended by striking ``during a contingency operation supported by the 
armed forces''.
    (b) Effective Date and Applicability.--The amendment by this 
section shall take effect on October 1, 2004, and shall apply with 
respect to months beginning on or after such date.

SEC. 1103. PAY AND PERFORMANCE APPRAISAL PARITY FOR CIVILIAN 
              INTELLIGENCE PERSONNEL.

    (a) Pay Rates.--Section 1602(a) of title 10, United States Code, is 
amended by striking ``in relation to the rates of pay provided in 
subpart D of part III of title 5 for positions subject to that subpart 
which have corresponding levels of duties and responsibilities'' and 
inserting ``in relation to the rates of pay provided for comparable 
positions in the Department of Defense, including Senior Executive 
Service positions (as defined in section 3132 of title 5) or other 
senior level positions''.
    (b) Performance Appraisal System.--Section 1606 of such title is 
amended by adding at the end the following new subsection:
    ``(d) Performance Appraisals.--(1) The Defense Intelligence Senior 
Executive Service shall be subject to a performance appraisal system 
which, as designed and applied, is certified by the Secretary of 
Defense under section 5307 of title 5 as making meaningful distinctions 
based on relative performance.
    ``(2) The performance appraisal system applicable to the Defense 
Intelligence Senior Executive Service under paragraph (1) may be the 
same performance appraisal system that is established and implemented 
within the Department of Defense for members of the Senior Executive 
Service.''.

SEC. 1104. ACCUMULATION OF ANNUAL LEAVE BY INTELLIGENCE SENIOR LEVEL 
              EMPLOYEES.

    Section 6304(f)(1) of title 5, United States Code, is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``in a position'';
            (2) in subparagraphs (A), (B), (C), (D), and (E), by 
        inserting ``a position in'' before ``the'';
            (3) by striking ``or'' at the end of subparagraph (D);
            (4) by striking the period at the end of subparagraph (E) 
        and inserting ``; or''; and
            (5) by adding at the end the following new subparagraph:
            ``(F) a position designated as an Intelligence Senior Level 
        position under section 1607(a) of title 10.''.

SEC. 1105. PAY PARITY FOR SENIOR EXECUTIVES IN DEFENSE NONAPPROPRIATED 
              FUND INSTRUMENTALITIES.

    (a) Authority.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1587 the following new section:
``Sec. 1587a. Employees of nonappropriated fund instrumentalities: 
              senior executive pay levels
    ``(a) Authority.--To achieve the objective stated in subsection 
(b), the Secretary of Defense may regulate the amount of total 
compensation that is provided for senior executives of nonappropriated 
fund instrumentalities who, for the fixing of pay by administrative 
action, are under the jurisdiction of the Secretary of Defense or the 
Secretary of a military department.
    ``(b) Pay Parity.--The objective of an action taken with respect to 
the compensation of a senior executive under subsection (a) is to 
provide for parity between the total compensation provided for such 
senior executive and total compensation that is provided for Department 
of Defense employees in Senior Executive Service positions or other 
senior executive positions.
    ``(c) Standards of Comparability.--Subject to subsection (d), the 
Secretary of Defense shall prescribe the standards of comparison that 
are to apply in the making of the determinations necessary to achieve 
the objective stated in subsection (b).
    ``(d) Establishment of Pay Rates.--The Secretary of Defense shall 
apply subsections (a) and (b) of section 5382 of title 5 in the 
regulation of compensation under this section.
    ``(e) Relationship to Pay Limitation.--The Secretary of Defense may 
exercise the authority provided in subsection (a) without regard to 
section 5373 of title 5.
    ``(f) Definitions.--In this section:
            ``(1) The term `compensation' includes rate of basic pay.
            ``(2) The term `Senior Executive Service position' has the 
        meaning given such term in section 3132 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 
1587 the following new item:

``1587a. Employees of nonappropriated fund instrumentalities: senior 
                            executive pay levels.''.

SEC. 1106. HEALTH BENEFITS PROGRAM FOR EMPLOYEES OF NONAPPROPRIATED 
              FUND INSTRUMENTALITIES.

    (a) Establishment.--(1) Chapter 81 of title 10, United States Code, 
as amended by section 1105(a), is further amended by inserting after 
section 1587a the following new section:
``Sec. 1587b. Employees of nonappropriated fund instrumentalities: 
              health benefits program
    ``(a) Program Required.--The Secretary of Defense shall provide a 
uniform health benefits program for employees of the Department of 
Defense assigned to a nonappropriated fund instrumentality of the 
United States.
    ``(b) Exemption From State and Local Laws, Taxes, and Other 
Requirements.--The exemption in section 8909(f) of title 5 shall apply 
to the program under subsection (a) and to a carrier, underwriting 
contractor, and plan administration contractor under such program in 
the same manner and to the same extent as such exemption applies under 
section 8909(f) of such title to an approved health benefits plan under 
chapter 89 of such title and a carrier, underwriting subcontractor, and 
plan administration subcontractor, respectively, of such a plan.''.
    (2) The table of sections at the beginning of such chapter, as 
amended by section 1105(b), is further amended by inserting after the 
item relating to section 1587a the following new item:

``1587b. Employees of nonappropriated fund instrumentalities: health 
                            benefits program.''.
    (b) Repeal of Superseded Law.--Section 349 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2727; 10 U.S.C. 1587 note) is repealed.

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

SEC. 1201. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2005 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2005 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1202. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $409,200,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2005 in 
section 301(19) for Cooperative Threat Reduction programs, the 
following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in Russia, 
        $58,522,000.
            (2) For nuclear weapons storage security in Russia, 
        $48,672,000.
            (3) For nuclear weapons transportation security in Russia, 
        $26,300,000.
            (4) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $40,030,000.
            (5) For chemical weapons destruction in Russia, 
        $158,400,000.
            (6) For biological weapons proliferation prevention in the 
        former Soviet Union, $54,959,000.
            (7) For defense and military contacts, $8,000,000.
            (8) For activities designated as Other Assessments/
        Administrative Support, $14,317,000.
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2005 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (8) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2005 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (c) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraphs (2) and (3), in any case in which the Secretary of Defense 
determines that it is necessary to do so in the national interest, the 
Secretary may obligate amounts appropriated for fiscal year 2005 for a 
purpose listed in any of the paragraphs in subsection (a) in excess of 
the specific amount authorized for that purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount 
authorized for such purpose may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress notification of the 
        intent to do so together with a complete discussion of the 
        justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts for a purpose stated in any of 
paragraphs (5) through (8) of subsection (a) in excess of 125 percent 
of the specific amount authorized for such purpose.

SEC. 1203. MODIFICATION AND WAIVER OF LIMITATION ON USE OF FUNDS FOR 
              CHEMICAL WEAPONS DESTRUCTION FACILITIES IN RUSSIA.

    (a) Modification of Limitation.--Section 1305 of the National 
Defense Authorization Act for Fiscal Year 2000 (22 U.S.C. 5952 note) is 
amended by striking ``or expended''.
    (b) Waiver Authority.--The conditions described in section 1305 of 
the National Defense Authorization Act for Fiscal Year 2000, as amended 
by subsection (a), shall not apply to the obligation of funds during a 
fiscal year for the planning, design, or construction of a chemical 
weapons destruction facility in Russia if the President submits to 
Congress a written certification with respect to such fiscal year that 
includes--
            (1) a statement as to why the waiver of the conditions 
        during the fiscal year covered by such certification is 
        consistent with the national security interests of the United 
        States; and
            (2) a plan to promote a full and accurate disclosure by 
        Russia regarding the size, content, status, and location of its 
        chemical weapons stockpile.

SEC. 1204. INCLUSION OF DESCRIPTIVE SUMMARIES IN ANNUAL COOPERATIVE 
              THREAT REDUCTION REPORTS AND BUDGET JUSTIFICATION 
              MATERIALS.

    Section 1307 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2165; 22 U.S.C. 
5952 note) is amended--
            (1) in subsection (a), by striking ``as part of the 
        Secretary's annual budget request to Congress'' in the matter 
        preceding paragraph (1) and inserting ``in the materials and 
        manner specified in subsection (c)''; and
            (2) by adding at the end the following new subsection:
    ``(c) Inclusion in Certain Materials Submitted to Congress.--The 
summary required to be submitted to Congress in a fiscal year under 
subsection (a) shall be set forth by project category, and by amounts 
specified in paragraphs (1) and (2) of that subsection in connection 
with such project category, in each of the following:
            ``(1) The annual report on activities and assistance under 
        Cooperative Threat Reduction programs required in such fiscal 
        year under section 1308 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398).
            ``(2) The budget justification materials submitted to 
        Congress in support of the Department of Defense budget for the 
        fiscal year succeeding such fiscal year (as submitted with the 
        budget of the President under section 1105(a) of title 31, 
        United States Code).''.




                                                       Calendar No. 504

108th CONGRESS

  2d Session

                                S. 2401

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                              May 11, 2004

                 Read twice and placed on the calendar