[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 747 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 747

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 31, 2003

  Mr. Warner (for himself and Mr. Levin) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Armed Services

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Defense health program.
Sec. 107. Chemical agents and munitions destruction.
             Subtitle B--Multi-Year Contract Authorizations

Sec. 111. Multiyear procurement authority for Navy programs.
Sec. 112. Amendment to multiyear procurement authority for C-130J 
                            aircraft for the Air Force.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
                 Subtitle B--Ballistic Missile Defense

Sec. 211. Renewal of authority to assist local communities impacted by 
                            ballistic missile defense system test bed.
                       Subtitle C--Other Matters

Sec. 221. Rescind the prohibition on research and development of low-
                            yield nuclear weapons.
                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
                  Subtitle B--Environmental Provisions

Sec. 311. Clarify definitions of salvage facilities and salvage 
                            services to include environmental responses 
                            and related equipment.
Sec. 312. Authorization for federal participation in wetland mitigation 
                            banks.
Sec. 313. Provision to exempt restoration advisory boards from the 
                            Federal Advisory Committee Act.
Sec. 314. Repeal of military equipment and infrastructure: prevention 
                            and mitigation of corrosion.
Sec. 315. Right of removal to federal district court in Clean Air Act 
                            and Safe Drinking Water Act cases filed 
                            against the federal government.
Sec. 316. Readiness and Range Preservation Initiative.
                 Subtitle C--Workplace and Depot Issues

Sec. 321. Repeal of time limitation on exclusion of expenditures on 
                            contracting for depot-level maintenance.
Sec. 322. Exception to competition requirement for depot-level 
                            maintenance and repair.
Sec. 323. Exclude workloads for special access programs from 
                            limitations on the performance of depot-
                            level maintenance of materiel.
Sec. 324. Establishing minimum level of performance of depot-level 
                            maintenance of materiel by federal 
                            government personnel or at a government-
                            owned facility.
Sec. 325. Centers of industrial and technical excellence: extension of 
                            partnership exemption.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2004 limitation on number of non-dual status 
                            technicians.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Repeal of prohibition against regular navy officers 
                            transferring between line and staff corps 
                            in grades above lieutenant commander.
Sec. 502. Retention of officers serving in health professions to 
                            fulfill active duty service commitments 
                            following promotion non-selection.
Sec. 503. Requirement of exemplary conduct.
                Subtitle B--Reserve Component Management

Sec. 511. Ready Reserve training requirement.
Sec. 512. Streamline process to continue officers on the Reserve active 
                            status list.
Sec. 513. Extending eligibility to the federal long-term care insurance 
                            program to reservists transferred to the 
                            Retired Reserves awaiting receipt of 
                            retired pay.
              Subtitle C--Military Education and Training

Sec. 521. Authority for the Marine Corps University to award the degree 
                            of Master of Operational Studies.
Sec. 522. Joint professional military education.
                   Subtitle D--Administrative Matters

Sec. 531. Enhancements to personnel tempo program.
Sec. 532. Eliminate requirement that the Department of Defense report 
                            earned but non-taxable income on form W-2.
Sec. 533. Consistent time in service retirement criteria.
                          Subtitle E--Benefits

Sec. 541. Authority to transport remains of retirees who die in 
                            military treatment facilities outside the 
                            United States.
Sec. 542. Change family separation housing allowance from an 
                            entitlement to a discretionary allowance.
Sec. 543. Payment of dependent student baggage storage.
Sec. 544. Modification of prohibition on requirement of nonavailability 
                            statement or preauthorization.
                  Subtitle F--Military Justice Matters

Sec. 551. Technical amendment to the Uniform Code of Military Justice 
                            concerning the offense of drunken operation 
                            of a vehicle, aircraft, or vessel.
                       Subtitle G--Other Matters

Sec. 561. Termination of disability review boards.
Sec. 562. Basic training requirement for certain members accessed under 
                            a direct entry program.
Sec. 563. Alternate initial military service obligation for persons 
                            accessed under direct entry program.
Sec. 564. Release of taxpayer address information held by the Internal 
                            Revenue Service on members of the Armed 
                            Forces.
Sec. 565. Joint warfighting capabilities funding.
Sec. 566. Reappointment of Chairman and Vice-Chairman of the Joint 
                            Chiefs of Staff during national emergency.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.
Sec. 602. Housing allowance for each married partner when both are on 
                            sea duty and there are no other dependents.
Sec. 603. Amendment to basic pay for certain commissioned officers with 
                            prior service as an enlisted member or 
                            warrant officer.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Increase maximum amount of selective reenlistment bonus.
Sec. 612. Making all warrant officers eligible for accession bonus for 
                            new officers in critical skills.
Sec. 613. Incentive bonus: lateral conversion bonus for converting to 
                            undermanned military occupational 
                            specialties.
Sec. 614. Extending hostile fire and imminent danger pay to Reserve 
                            component members on inactive duty.
Sec. 615. Expanded educational assistance authority for cadets and 
                            midshipmen receiving ROTC scholarships.
Sec. 616. Notice and wait provision concerning critical skills 
                            retention bonus.
Sec. 617. Expansion of overseas tour extension incentive program 
                            benefits to officers.
Sec. 618. One-year extension of certain bonus and special pay 
                            authorities for Reserve forces.
Sec. 619. One-year extension of special pay and bonus authorities for 
                            nuclear officers.
Sec. 620. One-year extension of authorities relating to payment of 
                            other bonuses.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Shipment of a privately owned motor vehicle within the 
                            continental United States.
                       Subtitle D--Other Matters

Sec. 631. Providing members serving in a contingency operation the same 
                            tax filing delay provided to members 
                            serving in a combat zone or in a qualified 
                            hazardous duty area.
Sec. 632. Permit non-scholarship senior ROTC sophomores to voluntarily 
                            contract and receive subsistence allowance.
Sec. 633. Increase annual student loan repayment authority.
Sec. 634. Authorize cabinet secretaries, secretaries of military 
                            departments, and heads of independent 
                            agencies to be paid on a biweekly basis.
                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Revision of Department of Defense Medicare Eligible Retiree 
                            Health Care Fund to permit more accurate 
                            actuarial valuations.
Sec. 702. Applicability of the Federal Advisory Committee Act to the 
                            Pharmacy and Therapeutics Committee.
Sec. 703. Changes to Department of Defense-Department of Veterans 
                            Affairs Health Executive Committee.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Milestone authorization of selected defense acquisition 
                            programs.
Sec. 802. Contract closeout.
Sec. 803. Clarification of requirement to buy certain articles from 
                            American sources; exceptions.
Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 811. Extend use of the Defense Modernization Account for life 
                            cycle cost reduction initiatives.
Sec. 812. Extension and clarification of authority to carry out certain 
                            prototype projects.
Sec. 813. Other transaction authority for modernizing legacy systems.
Sec. 814. Authority for DoD intelligence components to award personal 
                            service contracts.
Sec. 815. Elimination of subcontract notification requirements.
Sec. 816. Exception for replacement ball bearings and roller bearings 
                            to be used in a component of non-domestic 
                            origin.
Sec. 817. Industry assignment program.
Sec. 818. Reauthorization of Defense Production Act.
       Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Limited access to controlled unclassified information by 
                            administrative support service contractors.
Sec. 822. Elimination of the requirement to furnish written assurances 
                            of technical data conformity.
Sec. 823. Authorization to take actions to correct the industrial 
                            resource shortfall for radiation-hardened 
                            electronics.
Sec. 824. Conversions of commercial activities.
Sec. 825. Make permanent the authority to enter into certain personal 
                            services contracts.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Repeal of rotating chairman for the Economic Adjustment 
                            Committee.
Sec. 902. Alternative authority for acquisition and improvement of 
                            military housing.
                      Subtitle B--Space Activities

Sec. 911. Authorize provision of space surveillance network services to 
                            non-United States government entities.
Sec. 912. Commercial space competitiveness and contributions of funds 
                            and services from non-federal agencies.
                          Subtitle C--Reports

Sec. 921. Repeal of various reports required of the Department of 
                            Defense.
                       Subtitle D--Other Matters

Sec. 931. Combatant commands initiatives fund.
Sec. 932. Consolidating the financial management of facilities in the 
                            national capital region and designated 
                            alternate sites.
Sec. 933. Protection of operational files of the National Security 
                            Agency.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Repeal of requirement for separate budget request for 
                            procurement of Reserve equipment.
Sec. 1002. Repeal of requirement for two-year budget cycle for the 
                            Department of Defense.
Sec. 1003. Payment of full replacement value for personal property 
                            claims.
Sec. 1004. Treatment of reimbursements for subpoena and litigation 
                            costs; recovery to agency funds.
Sec. 1005. Restoration of authority to enter into 12-month leases at 
                            any time during the fiscal year.
Sec. 1006. Authority to provide reimbursement for cellular telephone 
                            use.
Sec. 1007. Reimbursement for Reserve intelligence support.
Sec. 1008. Increased use of energy cost savings.
Sec. 1009. Allow the Department of Defense to capture all expired funds 
                            from the Military Personnel and Operation 
                            and Maintenance Appropriations Accounts for 
                            use in the Foreign Currency Fluctuations 
                            Account.
Sec. 1010. Funding for special operations Reserve component personnel 
                            engaged in activities relating to clearance 
                            of landmines.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Reimbursement to the Navy for assistance provided in support 
                            of certain ship and shipboard equipment 
                            transfers.
Sec. 1012. Vessels stricken from naval vessel register: use for 
                            experimental purposes.
Sec. 1013. Authorize transfer of vessels stricken from the naval vessel 
                            register for use as artificial reefs.
Sec. 1014. Repeal of the Shipbuilding Capability Preservation 
                            Agreement.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extend authority for use of counter drug activities.
Sec. 1022. Department of Defense support for counter-terrorism 
                            activities in the Americas.
Sec. 1023. Expansion and extension of authority to provide additional 
                            support for counter-drug activities.
           Subtitle D--Other Department of Defense Provisions

Sec. 1031. Provision of living quarters for certain students.
Sec. 1032. Repeal of required grade for defense attache in France.
Sec. 1033. National Geospatial-Intelligence Agency.
                       Subtitle E--Other Matters

Sec. 1041. Use of the National Driver Register for personnel security 
                            investigations and determinations.
Sec. 1042. National Defense Heritage Foundation.
Sec. 1043. Updating definitions in title 10, United States Code.
Sec. 1044. Improving readiness in providing firefighting services.
Sec. 1045. Exemption for charter operations to provide transportation 
                            to the Armed Forces.
Sec. 1046. Documents, historical artifacts, and obsolete or surplus 
                            materiel: loan, donation, or exchange.
Sec. 1047. Authority to ensure demilitarization of significant military 
                            equipment formerly owned by the Department 
                            of Defense.
Sec. 1048. Stopping vessels; immunity for firing at or into vessel.
Sec. 1049. Reauthorization of aviation insurance program.
Sec. 1050. Modification of national security education program.
           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Extension of voluntary separation incentive pay authority.
Sec. 1102. Modify the overtime pay cap.
Sec. 1103. Application of grievance procedures.
Sec. 1104. Civil service retirement system computation for part-time 
                            service.
Sec. 1105. Position vacancy promotion consideration in time of war or 
                            national emergency.
Sec. 1106. Military leave for mobilized federal civilian employees.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification and extension of authority to provide 
                            assistance to United Nations-sponsored 
                            efforts to inspect and monitor Iraqi 
                            weapons activities.
   Subtitle B--Matters Related to Allies and Friendly Foreign Nations

Sec. 1211. Expansion of authority to conduct the Arctic military 
                            environmental cooperation program.
Sec. 1212. Provision of cataloging data and services.
Sec. 1213. Authority to waive domestic source or content requirements.
Sec. 1214. Authority to expend funds to recognize superior noncombat 
                            achievements or performance by members of 
                            friendly foreign forces and other foreign 
                            nationals.
Sec. 1215. Administrative support and services for foreign liaison 
                            officers.
Sec. 1216. George C. Marshall European Center for Security Studies.
Sec. 1217. Restrictions on permanent transfer of significant military 
                            equipment.
Sec. 1218. Amendment to authority for acceptance by Asia-Pacific Center 
                            for Security Studies of foreign gifts and 
                            donations.
Sec. 1219. Addition of individuals authorized to receive check cashing 
                            and exchanges of foreign currency.
Sec. 1220. Continuation of the regional counterterrorism fellowship 
                            program.
Sec. 1221. -Logistics support for friendly nations.
                       Subtitle C--Other Matters

Sec. 1231. Repeal of the authorization for the establishment of the 
                            Center for the Study of Chinese Military 
                            Affairs.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Sec. 1301. Expanded use of cooperative threat reduction funds.
                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Sales of chemical and biological defense articles and 
                            services to state and local governments.
Sec. 1402. Clarification of intelligence exceptions from limitations on 
                            interception and disclosure of wire, oral, 
                            and electronic communications.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification to carry out certain fiscal year 2002 projects.
                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                            projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
                            acquisition projects.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2001 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2000 
                            projects.
Sec. 2704. Effective date.
                    TITLE XXVIII--GENERAL PROVISIONS

     Subtitle A--Military Construction and Military Family Housing

Sec. 2801. Streamlining military construction to reduce facility 
                            acquisition and construction cycle time.
Sec. 2802. Increased terms for leases of family housing and other 
                            facilities in foreign countries.
        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Expanded authority to transfer property at military 
                            installations to be closed to persons who 
                            construct or provide military housing.
Sec. 2812. Acceptance of in-kind consideration for easements.
Sec. 2813. Modification of authority to accept funds to cover 
                            administrative expenses relating to certain 
                            real property transactions.
Sec. 2814. Authority to convey property at military installations to 
                            persons who construct or provide military 
                            housing.
Sec. 2815. Increase in threshold for reports to congressional 
                            committees on real property transactions.
Sec. 2816. Contracting with local governments for municipal services.
                       Subtitle C--Other Matters

Sec. 2821. Increase authority to lease military family housing in 
                            Italy.
Sec. 2822. Conveyance of Army and Air Force Exchange Service property, 
                            Dallas, Texas.
Sec. 2823. Relief from McKinney-Vento (Homeless) Act screening 
                            requirements.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Defense health program.
Sec. 107. Chemical agents and munitions destruction.
             Subtitle B--Multi-Year Contract Authorizations

Sec. 111. Multiyear procurement authority for Navy programs.
Sec. 112. Amendment to multiyear procurement authority for C-130J 
                            aircraft for the Air Force.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for procurement for the Army as follows:
            (1) For aircraft, $2,128,485,000.
            (2) For missiles, $1,459,462,000.
            (3) For weapons and tracked combat vehicles, 
        $1,640,704,000.
            (4) For ammunition, $1,309,966,000.
            (5) For other procurement, $4,216,854,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2004 for procurement for the Navy as follows:
            (1) For aircraft, $8,788,148,000.
            (2) For weapons, including missiles and torpedoes, 
        $1,991,821,000.
            (3) For shipbuilding and conversion, $11,438,984,000.
            (4) For other procurement, $4,679,443,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2004 for procurement for the Marine Corps in the amount 
of $1,070,999,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2004 for procurement of ammunition 
for the Navy and Marine Corps in the amount of $922,355,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,079,360,000.
            (2) For missiles, $4,393,039,000.
            (3) For procurement of ammunition, $1,284,725,000.
            (4) For other procurement, $11,583,659,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for defense-wide procurement in the amount of $3,691,006,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

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

SEC. 106. DEFENSE HEALTH PROGRAM.

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

SEC. 107. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for chemical agents and munitions destruction in the amount of 
$1,650,076,000 for--
            (1) the destruction of lethal chemical weapons in 
        accordance with section 1412 of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521); and
            (2) the destruction of chemical warfare material of the 
        United States that is not covered by section 1412 of such Act.

             Subtitle B--Multi-Year Contract Authorizations

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR NAVY PROGRAMS.

    (a) Multi-Year Contract Authority.--Beginning with the fiscal year 
2004 program year, the Secretary of the Navy may, in accordance with 
section 2306b of title 10, United States Code, enter into multiyear 
contracts for the procurement of the following:
            (1) F/A-18 aircraft.
            (2) E-2C aircraft.
            (3) The Tactical Tomahawk missile.
            (4) The Virginia Class Submarine.
    (b) Shipbuilder Teaming.--Paragraphs (2)(A), (3), and (4) of 
section 121(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1648) apply to the procurement 
of Virginia class submarines under this section.

SEC. 112. AMENDMENT TO MULTIYEAR PROCUREMENT AUTHORITY FOR C-130J 
              AIRCRAFT FOR THE AIR FORCE.

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

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

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
                 Subtitle B--Ballistic Missile Defense

Sec. 211. Renewal of authority to assist local communities impacted by 
                            ballistic missile defense system test bed.
                       Subtitle C--Other Matters

Sec. 221. Rescind the prohibition on research and development of low-
                            yield nuclear weapons.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the use of the Armed Forces for research, development, test, and 
evaluation, as follows:
            (1) For the Army, $9,122,825,000.
            (2) For the Navy, $14,106,653,000.
            (3) For the Air Force, $20,336,258,000.
            (4) For Defense-wide research, development, test, and 
        evaluation, $18,260,918,000, of which $286,661,000 is 
        authorized for the Director of Operational Test and Evaluation.
            (5) For the Defense Health Program, $65,796,000.
            (6) For the Defense Inspector General, $300,000.

                 Subtitle B--Ballistic Missile Defense

SEC. 211. RENEWAL OF AUTHORITY TO ASSIST LOCAL COMMUNITIES IMPACTED BY 
              BALLISTIC MISSILE DEFENSE SYSTEM TEST BED.

    Section 235(b)(1) of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1041) is amended by 
striking ``for fiscal year 2002'' and inserting ``for fiscal years 
after fiscal year 2001''.

                       Subtitle C--Other Matters

SEC. 221. RESCIND THE PROHIBITION ON RESEARCH AND DEVELOPMENT OF LOW-
              YIELD NUCLEAR WEAPONS.

    Section 3136 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1946) is repealed.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
                  Subtitle B--Environmental Provisions

Sec. 311. Clarify definitions of salvage facilities and salvage 
                            services to include environmental responses 
                            and related equipment.
Sec. 312. Authorization for federal participation in wetland mitigation 
                            banks.
Sec. 313. Provision to exempt restoration advisory boards from the 
                            Federal Advisory Committee Act.
Sec. 314. Repeal of military equipment and infrastructure: prevention 
                            and mitigation of corrosion.
Sec. 315. Right of removal to federal district court in Clean Air Act 
                            and Safe Drinking Water Act cases filed 
                            against the federal government.
Sec. 316 Readiness and Range Preservation Initiative.
                 Subtitle C--Workplace and Depot Issues

Sec. 321. Repeal of time limitation on exclusion of expenditures on 
                            contracting for depot-level maintenance.
Sec. 322. Exception to competition requirement for depot-level 
                            maintenance and repair.
Sec. 323. Exclude workloads for special access programs from 
                            limitations on the performance of depot-
                            level maintenance of materiel.
Sec. 324. Establishing minimum level of performance of depot-level 
                            maintenance of materiel by federal 
                            government personnel or at a government-
                            owned facility.
Sec. 325. Centers of industrial and technical excellence: extension of 
                            partnership exemption.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the use of the Armed Forces of the United States and other 
activities and agencies of the Department of Defense, for expenses, not 
otherwise provided for, for operation and maintenance, in amounts as 
follows:
            (1) For the Army, $24,965,342,000.
            (2) For the Navy, $28,287,690,000.
            (3) For the Marine Corps, $3,406,656,000.
            (4) For the Air Force, $27,793,931,000.
            (5) For the Defense-wide activities, $16,570,847,000.
            (6) For the Army Reserve, $1,952,009,000.
            (7) For the Naval Reserve, $1,171,921,000.
            (8) For the Marine Corps Reserve, $173,952,000.
            (9) For the Air Force Reserve, $2,179,188,000.
            (10) For the Army National Guard, $4,211,331,000.
            (11) For the Air National Guard, $4,402,646,000.
            (12) For the Defense Inspector General, $160,049,000.
            (13) For the United States Court of Appeals for the Armed 
        Forces, $10,333,000.
            (14) For Environmental Restoration, Army, $396,018,000.
            (15) For Environmental Restoration, Navy, $256,153,000.
            (16) For Environmental Restoration, Air Force, 
        $384,307,000.
            (17) For Environmental Restoration, Defense-wide, 
        $24,081,000.
            (18) For Environmental Restoration, Formerly Used Defense 
        Sites, $212,619,000.
            (19) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $59,000,000.
            (20) For Drug Interdiction and Counter-drug Activities, 
        Defense-wide, $817,371,000.
            (21) For the Defense Health Program, $14,876,887,000.
            (22) For Cooperative Threat Reduction programs, 
        $450,800,000.
            (23) For Overseas Contingency Operations Transfer Fund, 
        $50,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2004 
for the use of the Armed Forces of the United States 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, $1,721,507,000.
            (2) For the National Defense Sealift Fund, $1,062,762,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2004 
from the Armed Forces Retirement Home Trust Fund the sum of $65,279,000 
for the operation of the Armed Forces Retirement Home, including the 
United States Soldiers' and Airmen's Home and the Naval Home.

                  Subtitle B--Environmental Provisions

SEC. 311. CLARIFY DEFINITIONS OF SALVAGE FACILITIES AND SALVAGE 
              SERVICES TO INCLUDE ENVIRONMENTAL RESPONSES AND RELATED 
              EQUIPMENT.

    (a) Salvage Facilities.--Section 7361(a) of title 10, United States 
Code, is amended by adding at the end the following new sentence: 
``Salvage facilities include, but are not limited to, equipment and 
gear utilized to prevent, abate or minimize damage to the 
environment.''.
    (b) Settlement of Claims for Salvage Services.--Section 7363 of 
such title is amended by adding at the end the following new sentence: 
``Claims for such salvage services include, but are not limited to, 
those for enhanced or special compensation for services that prevent, 
abate or minimize damage to the environment.''.

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

    (a) In General.--Chapter 159 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2697. Authorization for Federal participation in wetland 
              mitigation banks
    ``The Secretary of a military department engaged in any activity 
resulting, or which may result, in the destruction of or impacts to 
wetlands is authorized to make payments to wetland mitigation banking 
programs and consolidated user sites (`in-lieu-fee' programs) that have 
been approved in accordance with the Federal Guidance for the 
Establishment, Use, and Operation of Mitigation Banks or the Federal 
Guidance on the Use of In-Lieu-Fee Arrangements for Compensatory 
Mitigation Under Section 404 of the Clean Water Act and Section 10 of 
the Rivers and Harbors Act as an alternative to creating a wetland for 
mitigation on federal property for construction projects. These 
payments may be included as eligible project costs for military 
construction.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2697. Authorization for Federal participation in wetland mitigation 
                            banks.''.

SEC. 313. PROVISION TO EXEMPT RESTORATION ADVISORY BOARDS FROM THE 
              FEDERAL ADVISORY COMMITTEE ACT.

    Section 2705 (d)(2) of chapter 160 of title 10, United States Code, 
is amended by adding at the end the following new subparagraph:
                    ``(C) The Federal Advisory Committee Act (5 U.S.C. 
                App.) shall not apply to any restoration advisory board 
                established by the Secretary pursuant to this 
                subsection.''.

SEC. 314. REPEAL OF MILITARY EQUIPMENT AND INFRASTRUCTURE: PREVENTION 
              AND MITIGATION OF CORROSION.

    (a) In General.--Section 2228 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections for chapter 131 of 
this title is amended by striking the item relating to section 2228.

SEC. 315. RIGHT OF REMOVAL TO FEDERAL DISTRICT COURT IN CLEAN AIR ACT 
              AND SAFE DRINKING WATER ACT CASES FILED AGAINST THE 
              FEDERAL GOVERNMENT.

    (a) Clarification of Right To Remove.--Section 118(a) of the Clean 
Air Act (42 U.S.C. 7418(a)) is amended by adding at the end the 
following new sentence: ``Nothing in this chapter shall be construed to 
prevent any department, agency, or instrumentality of the Federal 
Government, or any officer, agent, or employee thereof in the 
performance of his official duties, from removing to the appropriate 
Federal district court any proceeding in State court to which the 
department, agency, or instrumentality or officer, agent, or employee 
thereof is subject pursuant to this subsection, and any such proceeding 
may be removed in accordance with section 1441 et seq. of title 28.''.
    (b) Clarification of Right To Remove.--Section 1447 of the Safe 
Drinking Water Act (42 U.S.C. 300j-6) is amended by adding at the end 
the following new subsection:
    ``(f) Removal.--Nothing in this part shall be construed to prevent 
any department, agency, or instrumentality of the Federal Government, 
or any officer, agent, or employee thereof in the performance of his 
official duties, from removing to the appropriate Federal district 
court any proceeding in State court to which the department, agency, or 
instrumentality or officer, agent, or employee thereof is subject 
pursuant to subsection (a), and any such proceeding may be removed in 
accordance with section 1441 et seq. of title 28.''.
    (c) Application.--The amendments made by this section shall apply 
to any action filed in a state court after the effective date of this 
section.

SEC. 316. READINESS AND RANGE PRESERVATION INITIATIVE.

    (a) In General.--(1) Part III of subtitle A of title 10, United 
States Code, is amended by inserting after chapter 101 the following 
new chapter:

            ``CHAPTER 101A--READINESS AND RANGE PRESERVATION

``Sec.
``2015. Purpose of this chapter.
``2016. Definitions.
``2017. Military readiness and the conservation of protected species.
``2018. Conformity with State Implementation Plans for air quality.
``2019. Range management and restoration.
``Sec. 2015. Purpose of this chapter
    ``The purpose of this chapter is to--
            ``(1) protect the lives and well-being of citizens of the 
        United States and preserve their freedoms, economic prosperity, 
        and environmental heritage by ensuring military readiness;
            ``(2) ensure military readiness by addressing problems 
        created by encroachment on military readiness activities and 
        lands, marine areas, and airspace reserved, withdrawn, or 
        designated for a military use;
            ``(3) reaffirm the principle that such lands, marine areas, 
        and airspace exist to ensure military preparedness;
            ``(4) shield military readiness activities and lands, 
        marine areas, and airspace reserved, withdrawn, or designated 
        for a military use, including land, sea, and air training and 
        operating areas, from encroachment, while ensuring that the 
        Department of Defense fulfills its environmental stewardship 
        responsibilities;
            ``(5) manage such lands, marine areas, and airspace for 
        other purposes to the extent the non-military purpose does not 
        reduce capability to support military readiness activities;
            ``(6) re-establish the appropriate balance between military 
        readiness and environmental stewardship; and
            ``(7) establish a framework to ensure long-term 
        sustainability of military ranges.
``Sec. 2016. Definitions
    ``For purposes of this chapter:
            ``(1) The term `military readiness activities' includes all 
        training and operations that relate to combat, and the adequate 
        and realistic testing of military equipment, vehicles, weapons, 
        and sensors for proper operation and suitability for combat 
        use. The term does not include the routine operation of 
        installation operating support functions, such as 
        administrative offices, military exchanges, commissaries, water 
        treatment facilities, storage, schools, housing, motor pools, 
        laundries, morale, welfare and recreation activities, shops, 
        and mess halls, nor the operation of industrial activities, or 
        the construction or demolition of such facilities.
            ``(2) The terms `combat' or `combat use' include all forms 
        of armed conflict and operational employment as well as those 
        support functions necessary for armed conflict and operational 
        employment, including transportation of personnel, weapons, 
        supplies, ammunition and other military material to the 
        vicinity of actual or potential armed conflict; intelligence 
        gathering in support of actual or potential armed conflict; 
        command of and communications between military units; and 
        similar activities necessary for the successful prosecution of 
        armed conflict, whether or not conducted at the scene of actual 
        conflict.
            ``(3) The term `the Department' means the Department of 
        Defense as defined in section 101(a)(6) of this title and the 
        Coast Guard when it is not operating as a service in the 
        Department of the Navy.
``Sec. 2017. Military readiness and the conservation of protected 
              species
    ``(a) The completion of an Integrated Natural Resources Management 
Plan, pursuant to the Sikes Act Improvement Act (16 U.S.C. 670a), for 
lands or other geographical areas owned or controlled by the 
Department, or designated for its use, that addresses endangered or 
threatened species and their habitat, provides the `special management 
considerations or protection' required under the Endangered Species Act 
(16 U.S.C. 1532(5)(A)) and precludes designation of critical habitat 
for any such land or geographical areas under section 4 of the 
Endangered Species Act (16 U.S.C. 1533).
    ``(b) This section does not remove the requirement for agency 
consultation under section 7(a)(2) of the Endangered Species Act (16 
U.S.C. 1536(a)(2)).
``Sec. 2018. Conformity with State Implementation Plans for air quality
    ``(a) Conformity With Clean Air Act.--In all cases in which the 
requirements of section 176(c) of the Clean Air Act would have applied 
to proposed military readiness activities, the Department shall not be 
prohibited from engaging in such military readiness activities, but 
shall--
            ``(1) estimate for all criteria pollutants for which the 
        area is designated `nonattainment' or `maintenance' the 
        quantity of emissions that are caused by the military readiness 
        activities;
            ``(2) notify the state air quality planning agency for the 
        affected area of such emission estimates prior to engaging in 
        proposed military readiness activities; and
            ``(3) ensure that military readiness activities conform 
        with the requirements of section 176(c) within three years of 
        the date new activities begin.
    ``(b) EPA Approval.--Notwithstanding any other provisions of law, 
an implementation plan or plan revision required under the Clean Air 
Act shall be approved by the Administrator of the Environmental 
Protection Agency if--
            ``(1) such plan or revision meets all the requirements 
        applicable to it under the Clean Air Act other than a 
        requirement that such plan or revision demonstrate attainment 
        and maintenance of the relevant national ambient air quality 
        standards by the attainment date specified under the applicable 
        provision of the Act, or in a regulation promulgated under such 
        provision; and
            ``(2) the submitting State established to the satisfaction 
        of the Administrator that the implementation plan of such State 
        would be adequate to attain and maintain the relevant national 
        ambient air quality standards by the attainment date specified 
        under the applicable provision of the Act, or in a regulation 
        promulgated under such provision, but for emissions emanating 
        from military readiness activities not otherwise meeting 
        section 176(c) of the Act pursuant to paragraph (a) of this 
        section.
    ``(c) Effect on State Compliance With Ozone Standards.--
Notwithstanding any other provisions of law, any state that establishes 
to the satisfaction of the Administrator that, with respect to an ozone 
nonattainment area in such State, such State would have attained the 
national ambient air quality standard for ozone by the applicable 
attainment date, but for emissions emanating from military readiness 
activities not otherwise meeting section 176(c) of the Act pursuant to 
paragraph (a) of this section, shall not be subject to the provisions 
of section 182(a)(2) or (5) or section 185 of the Act.
    ``(d) Effect on State Compliance With Carbon Monoxide Standards--
Notwithstanding any other provision of law, any State that establishes 
to the satisfaction of the Administrator, with respect to a carbon 
monoxide nonattainment area in such State, that such State has attained 
the national ambient air quality standard for carbon monoxide by the 
applicable attainment date, but for emissions emanating from military 
readiness activities not otherwise meeting section 176(c) of the Act 
pursuant to paragraph (a) of this section, shall not be subject to the 
provisions of section 186(b)(2) of the Act.
    ``(e) Effect on State Compliance With PM-10 Standards.--
Notwithstanding any other provisions of law, any State that establishes 
to the satisfaction of the Administrator that, with respect to a PM-10 
nonattainment area in such State, such State would have attained the 
national ambient air quality standard for PM-10 by the applicable 
attainment date, but for emission emanating from military readiness 
activities not otherwise meeting section 176(c) of the Act pursuant to 
paragraph (a) of this section, shall not be subject to the provisions 
of section 188(b)(2) of the Act.
``Sec. 2019. Range management and restoration
    ``(a) Definition of Solid Waste.--(1)(A) The term `solid waste', as 
used in the Solid Waste Disposal Act, as amended (42 U.S.C. 6901 et 
seq.), includes explosives, unexploded ordnance, munitions, munition 
fragments, or constituents thereof that--
            ``(i) are or have been deposited, incident to their normal 
        and expected use, on an operational range, and--
                    ``(I) are removed from the operational range for 
                reclamation, treatment, disposal, treatment prior to 
                disposal, or storage prior to or in lieu of 
                reclamation, treatment, disposal, or treatment prior to 
                disposal;
                    ``(II) are recovered, collected, and then disposed 
                of by burial or landfilling; or
                    ``(III) migrate off an operational range and are 
                not addressed under the Comprehensive Environmental 
                Response, Compensation, and Liability Act of 1980, as 
                amended (42 U.S.C. 9601 et seq.); or
            ``(ii) are deposited, incident to their normal and expected 
        use, off an operational range, and are not promptly rendered 
        safe or retrieved.
    ``(B) The explosives, unexploded ordnance, munitions, munitions 
fragments, or constituents thereof defined as solid waste in 
subparagraph (a)(1)(A) shall be subject to the provisions of the Solid 
Waste Disposal Act, as amended, including but not limited to sections 
7002 and 7003, where applicable.
    ``(2) Except as set out in subparagraph (1), the term `solid 
waste,' as used in the Solid Waste Disposal Act, as amended, does not 
include explosives, unexploded ordnance, munitions, munitions 
fragments, or constituents thereof that--
            ``(A) are used in training military personnel or explosives 
        and munitions emergency response specialists (including 
        training in proper destruction of unused propellant or other 
        munitions);
            ``(B) are used in research, development, testing, and 
        evaluation of military munitions, weapons, or weapon systems;
            ``(C) are or have been deposited, incident to their normal 
        and expected use, and remain on an operational range, except as 
        provided in subparagraph (a)(1)(A);
            ``(D) are deposited, incident to their normal and expected 
        use, off an operational range, and are promptly rendered safe 
        or retrieved; or
            ``(E) are recovered, collected, and destroyed on-range 
        during range clearance activities at operational ranges, but 
        not including the on-range burial of unexploded ordnance and 
        contaminants when the burial is not a result of product use.
Nothing in subparagraphs (2)(A), (B), (C), (D), or (E) hereof affects 
the legal requirements applicable to explosives, unexploded ordnance, 
munitions, munitions fragments, or constituents thereof that have been 
deposited on an operational range once the range ceases to be an 
operational range.
    ``(b) Definition of Release.--(1) The term `release,' as used in 
the Comprehensive Environmental Response, Compensation, and Liability 
Act of 1980, as amended (42 U.S.C. 9601 et seq.), includes the deposit 
off an operational range, or the migration off an operational range, of 
any explosives, unexploded ordnance, munitions, munitions fragments, or 
constituents thereof.
    ``(2) The term `release,' as used in the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, as 
amended (42 U.S.C. 9601 et seq.), does not include the deposit or 
presence on an operational range of any explosives, unexploded 
ordnance, munitions, munitions fragments, or constituents thereof that 
are or have been deposited thereon incident to their normal and 
expected use and remain thereon.
    ``(3) Notwithstanding the provisions of paragraph (2), the 
authority of the President under section 106(a) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, as 
amended (42 U.S.C. 9606(a)), to take action because there may be an 
imminent and substantial endangerment to the public health or welfare 
or the environment because of an actual or threatened release of a 
hazardous substance includes the authority to take action because of 
the deposit or presence on an operational range of any explosives, 
unexploded ordnance, munitions, munitions fragments, or constituents 
thereof that are or have been deposited thereon incident to their 
normal and expected use and remain thereon.
    ``(4) Nothing in this section affects the authority of the 
Department to protect the environment, safety, and health on 
operational ranges.''.
    (2) The table of chapters at the beginning of such subtitle and the 
beginning of part III of such subtitle are amended by inserting after 
the item relating to chapter 101 the following new item:

``101A. Readiness and Range Preservation....................    2015''.
    (b) Military Readiness and Marine Mammal Protection 
Reconciliation.--The Marine Mammal Protection Act of 1972, as amended 
(Public Law 92-522; 86 Stat. 1027; 16 U.S.C. 1361 et. seq.), is amended 
as follows:
            (1) Definitions.--Section 3 (16 U.S.C. 1362) is amended--
                    (A) by amending paragraph (18) to read as follows:
            ``(18)(A) Except as provided in subparagraph (B), the term 
        `harassment' means any act of pursuit, torment, or annoyance 
        which--
                    ``(i) has the potential to injure a marine mammal 
                or marine mammal stock in the wild; or
                    ``(ii) has the potential to disturb a marine mammal 
                or marine mammal stock in the wild by causing 
                disruption of behavioral patterns, including, but not 
                limited to, migration, breathing, nursing, breeding, 
                feeding, or sheltering.
                    ``(iii) The term `Level A harassment' means 
                harassment described in subparagraph (A)(i).
                    ``(iv) The term `Level B harassment' means 
                harassment described in subparagraph (A)(ii).
            ``(B) For purposes of military readiness activities, the 
        term `harassment' means any act which--
                    ``(i) injures or has the significant potential to 
                injure a marine mammal or marine mammal stock in the 
                wild; or
                    ``(ii)(I) disturbs or is likely to disturb a marine 
                mammal or marine mammal stock in the wild by causing 
                disruption of natural behavioral patterns, including, 
                but not limited to, migration, surfacing, nursing, 
                breeding, feeding, or sheltering, to a point where such 
                behavioral patterns are abandoned or significantly 
                altered; or
                    ``(II) is directed toward a specific individual, 
                group or stock of marine mammals in the wild that is 
                likely to disturb the individual, group, or stock of 
                marine mammals by disrupting behavior, including, but 
                not limited to, migration, surfacing, nursing, 
                breeding, feeding, or sheltering.''; and
            (2) by adding at the end the following new paragraphs:
            ``(30) The term `military readiness activities' includes 
        all training and operations that relate to combat, and the 
        adequate and realistic testing of military equipment, vehicles, 
        weapons, and sensors for proper operation and suitability for 
        combat use. The term does not include the routine operation of 
        installation operating support functions, such as 
        administrative offices, military exchanges, commissaries, water 
        treatment facilities, storage, schools, housing, motor pools, 
        laundries, morale, welfare and recreation activities, shops, 
        and mess halls, nor the operation of industrial activities, or 
        the construction or demolition of such facilities.
            ``(31) The terms `combat' or `combat use' include all forms 
        of armed conflict and operational employment as well as those 
        support functions necessary for armed conflict and operational 
        employment, including transportation of personnel, weapons, 
        supplies, ammunition and other military material to the 
        vicinity of actual or potential armed conflict; intelligence 
        gathering in support of actual or potential armed conflict; 
        command of and communications between military units; and 
        similar activities necessary for the successful prosecution of 
        armed conflict, whether or not conducted at the scene of actual 
        conflict.
            ``(32) The term `Department of Defense' means the military 
        departments and the Coast Guard when it is not operating as a 
        service in the Department of the Navy.''.
            (3) Taking and importing marine mammals.--Section 101 (16 
        U.S.C. 1371) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (5)--
                                    (I) in subparagraph (A), by 
                                inserting ``and military readiness 
                                activities'' after ``other than 
                                commercial fishing''; and
                                    (II) in subparagraph (D)(i), by 
                                inserting ``and military readiness 
                                activities'' after ``other than 
                                commercial fishing''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(7)(A) Upon request by the Department of Defense for an 
        authorization related to military readiness activities, the 
        Secretary, shall allow, during periods of not more than five 
        consecutive years each, the incidental, but not intentional, 
        taking of marine mammals of a species or population stock if 
        the Secretary--
                    ``(i) finds that the total of such taking during 
                each five-year (or less) period concerned will have a 
                negligible impact upon such species or stock and will 
                not have an unmitigable adverse impact on the 
                availability of such species or stock for taking for 
                subsistence uses pursuant to subsection (b) of this 
                section or section 1379(f) of this title, or in the 
                case of a cooperative agreement under both this chapter 
                and the Whaling Convention Act of 1949 (16 U.S.C. 916 
                et seq.), pursuant to section 1382(c) of this title; 
                and
                    ``(ii) prescribes regulations setting forth--
                            ``(I) permissible methods of taking 
                        pursuant to such activity, and other means of 
                        affecting the least practicable adverse impact 
                        on such species or stock and its habitat, 
                        paying particular attention to rookeries and 
                        mating grounds, and on the availability of such 
                        species or stock for subsistence uses; and
                            ``(II) requirements pertaining to the 
                        monitoring and reporting of such taking.
            ``(B) The Secretary shall withdraw, or suspend for a time 
        certain, the permission to take marine mammals granted under 
        subparagraph (A), if the Secretary finds, after notice and 
        opportunity for public comment (unless subparagraph (C)(i) 
        applies), that--
                    ``(i) the regulations prescribed under subparagraph 
                (A) regarding methods of taking, monitoring, or 
                reporting are not being substantially complied with; or
                    ``(ii) the taking allowed under subparagraph (A) is 
                having, or may have, more than a negligible impact on 
                the species or stock concerned.
            ``(C)(i) The requirement for notice and opportunity for 
        public comment shall not apply in the case of a suspension of 
        permission to take if the Secretary determines that an 
        emergency exists which poses a significant risk to well-being 
        of the species or stock concerned.
            ``(ii) Sections 1373 and 1374 of this title shall not apply 
        to the taking of marine mammals under the authority of this 
        paragraph.
            ``(D)(i) Upon request by the Department of Defense for an 
        authorization related to military readiness activities, the 
        Secretary shall authorize, for periods of not more than 1 year, 
        subject to such conditions as the Secretary may specify, the 
        incidental, but not intentional, taking by harassment of marine 
        mammals of a species or population stock if the Secretary finds 
        that such harassment during each period concerned--
                    ``(I) will have a negligible impact on such species 
                or stock, and
                    ``(II) will not have an unmitigable adverse impact 
                on the availability of such species or stock for taking 
                for subsistence uses pursuant to subsection (b) of this 
                section, or 1379(f) of this title, or pursuant to a 
                cooperative agreement under section 1388 of this title.
            ``(ii) The authorization for such military readiness 
        activities shall prescribe, where applicable--
                    ``(I) permissible methods of taking by harassment 
                pursuant to such military readiness activity, and other 
                means of affecting the least practicable impact upon 
                such species or stock and its habitat, paying 
                particular attention to rookeries and mating grounds, 
                and on the availability of such species or stock for 
                subsistence uses pursuant to subsection (b) of this 
                section, or 1379(f) of this title, or pursuant to a 
                cooperative agreement under section 1388 of this title;
                    ``(II) the measures that the Secretary of Commerce 
                or Secretary of Interior determines are necessary to 
                ensure no unmitigable adverse impact upon the 
                availability of the species or stock for subsistence 
                uses pursuant to subsection (b) of this section, or 
                1379(f) of this title, or pursuant to a cooperative 
                agreement under section 1388 of this title; and
                    ``(III) requirements pertaining to the monitoring 
                and reporting of such taking by harassment, including 
                requirements for the independent peer review of 
                proposed monitoring plans or other research proposals 
                where the proposed military readiness activity may 
                affect the availability of the species or stock for 
                subsistence uses pursuant to subsection (b) of this 
                section, or 1379(f) of this title, or pursuant to a 
                cooperative agreement under section 1388 of this title.
            ``(iii) The Secretary shall publish a proposed 
        authorization not later than 45 days after receiving a request 
        under this subparagraph and request public comment through 
        notice in the Federal Register for a period of 30 days after 
        publication. Not later than 45 days after the close of the 
        public comment period, if the Secretary makes the findings set 
        forth in clause (E)(i), the Secretary shall issue an 
        authorization with appropriate conditions to meet the 
        requirements of clause (D)(ii).
            ``(iv) The Secretary shall modify, suspend, or revoke an 
        authorization if the Secretary finds that the provisions of 
        clauses (D)(i) or (D)(ii) are not being met.
            ``(v) A person conducting a military readiness activity for 
        which an authorization has been granted under this subparagraph 
        shall not be subject to the penalties of this chapter for 
        taking by harassment that occurs in compliance with such 
        authorization.
            ``(E) Nothing in this chapter shall require disclosure of 
        information classified in the interests of national defense.'';
            (4) by redesignating subsection (e) as subsection (f); and
            (5) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Exemption of Actions Necessary for National Defense.--The 
Secretary of Defense, after conferring with the Secretary of Commerce, 
the Secretary of Interior, or both, as appropriate, may exempt any 
action or category of actions undertaken by the Department of Defense 
or its components from compliance with any requirement of the Marine 
Mammal Protection Act, 16 U.S.C. 1361 et seq., if he determines that it 
is necessary for national defense. Exemptions granted under this 
section shall be for a period of not more than two years. Additional 
exemptions for periods not to exceed two years each may be granted for 
the same action or category of actions upon the Secretary of Defense, 
after conferring with the Secretary of Commerce, the Secretary of 
Interior, or both as appropriate, making a new determination.''.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. REPEAL OF TIME LIMITATION ON EXCLUSION OF EXPENDITURES ON 
              CONTRACTING FOR DEPOT-LEVEL MAINTENANCE.

    Section 2474(f)(2) of title 10, United States Code, is amended by 
striking ``for fiscal years 2002 through 2005''.

SEC. 322. EXCEPTION TO COMPETITION REQUIREMENT FOR DEPOT-LEVEL 
              MAINTENANCE AND REPAIR.

    Section 2469 of title 10, United States Code, is amended by 
inserting at the end the following new subsection (d):
    ``(d) Exceptions.--This section shall not apply with respect to 
depot-level maintenance and repair workload that is the subject of a 
public-private partnership entered into pursuant to section 2474(b) of 
this title provided--
            (1) competition is sought to select the source that will 
        partner with the depot to perform the workload;
            (2) the payment requests made by the partnership for work 
        performed reflect the full cost to the Government of resources 
        used by the depot for providing services, which shall include 
        costs of resources used, but not paid for, by the depot;
            (3) the portion of the payment received by the partnership 
        that is necessary to cover the full cost of performance by the 
        depot, as required by paragraph (2), is transferred to the 
        General fund in the Treasury to the extent the payment is 
        reimbursing the depot for federal resources the depot has used, 
        but not paid for, in performing its work;
            (4) in accordance with applicable contracting procedures, 
        the customer agency is not charged for any effort undertaken by 
        the partnership to correct performance deficiencies; and
            (5) the depot does not charge its partner contractor for 
        any effort the depot undertakes to correct performance 
        deficiencies under the contract.''.

SEC. 323. EXCLUDE WORKLOADS FOR SPECIAL ACCESS PROGRAMS FROM 
              LIMITATIONS ON THE PERFORMANCE OF DEPOT-LEVEL MAINTENANCE 
              OF MATERIEL.

    Section 2466(d) of title 10, United States Code, is amended to read 
as follows:
    ``(d) Exceptions.--Subsection (a) shall not apply with respect to--
            ``(1) the Sacramento Army Depot, Sacramento, California; 
        and
            ``(2) workloads for special access programs.''.

SEC. 324. ESTABLISHING MINIMUM LEVEL OF PERFORMANCE OF DEPOT-LEVEL 
              MAINTENANCE OF MATERIEL BY FEDERAL GOVERNMENT PERSONNEL 
              OR AT A GOVERNMENT-OWNED FACILITY.

    (a) Establishing Minimum Level.--Section 2466(a) of title 10, 
United States Code, is amended to read as follows:
    ``(a) Allocation of Workload Percentage.--At least 50 percent of 
the funds made available in a fiscal year to a military department or a 
Defense Agency for depot-level maintenance and repair workload shall be 
used for the performance of such workload for the military department 
or the Defense Agency by Federal Government personnel or at a 
Government-owned facility.''.
    (b) Conforming Amendment.--Section 2474(f)(1) of such title is 
amended by striking ``percentage limitation'' and inserting 
``allocation of workload percentage''.

SEC. 325. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE: EXTENSION OF 
              PARTNERSHIP EXEMPTION.

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
                            reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2004 limitation on number of non-dual status 
                            technicians.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2004, the following number of Reserves to be serving on full-time 
active duty or, in the case of members of the National Guard, full-time 
National Guard duty for the purpose of organizing, administering, 
recruiting, instructing, or training the reserve components:
            (1) The Army National Guard of the United States, 25,386.
            (2) The Army Reserve, 14,374.
            (3) The Naval Reserve, 14,384.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 12,140.
            (6) The Air Force Reserve, 1,660.

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

    The Reserve Components of the Army and the Air Force are authorized 
strengths for military technicians (dual status) as of September 30, 
2004, as follows:
            (1) For the Army Reserve, 6,699
            (2) For the Army National Guard of the United States, 
        24,589.
            (3) For the Air Force Reserve, 9,991.
            (4) For the Air National Guard of the United States, 
        22,806.

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

    The number of civilian employees who are non-dual status 
technicians of a reserve component of the Army or Air Force as of 
September 30, 2004, may not exceed the following:
            (1) For the Army Reserve, 895.
            (2) For the Army National Guard of the United States, 
        1,600.
            (3) For the Air Force Reserve, 90.
            (4) For the Air National Guard of the United States, 350.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Repeal of prohibition against regular navy officers 
                            transferring between line and staff corps 
                            in grades above lieutenant commander.
Sec. 502. Retention of officers serving in health professions to 
                            fulfill active duty service commitments 
                            following promotion non-selection.
Sec. 503. Requirement of exemplary conduct.
                Subtitle B--Reserve Component Management

Sec. 511. Ready Reserve training requirement.
Sec. 512. Streamline process to continue officers on the Reserve active 
                            status list.
Sec. 513. Extending eligibility to the federal long-term care insurance 
                            program to reservists transferred to the 
                            Retired Reserves awaiting receipt of 
                            retired pay.
              Subtitle C--Military Education and Training

Sec. 521. Authority for the Marine Corps University to award the degree 
                            of Master of Operational Studies.
Sec. 522. Joint professional military education.
                   Subtitle D--Administrative Matters

Sec. 531. Enhancements to personnel tempo program.
Sec. 532. Eliminate requirement that the Department of Defense report 
                            earned but non-taxable income on form W-2.
Sec. 533. Consistent time in service retirement criteria.
                          Subtitle E--Benefits

Sec. 541. Authority to transport remains of retirees who die in 
                            military treatment facilities outside the 
                            United States.
Sec. 542. Change family separation housing allowance from an 
                            entitlement to a discretionary allowance.
Sec. 543. Payment of dependent student baggage storage.
Sec. 544. Modification of prohibition on requirement of nonavailability 
                            statement or preauthorization.
                  Subtitle F--Military Justice Matters

Sec. 551. Technical amendment to the Uniform Code of Military Justice 
                            concerning the offense of drunken operation 
                            of a vehicle aircraft, or vessel.
                       Subtitle G--Other Matters

Sec. 561. Termination of disability review boards.
Sec. 562. Basic training requirement for certain members accessed under 
                            a direct entry program.
Sec. 563. Alternate initial military service obligation for persons 
                            accessed under direct entry program.
Sec. 564. Release of taxpayer address information held by the Internal 
                            Revenue Service on members of the Armed 
                            Forces.
Sec. 565. Joint warfighting capabilities funding.
Sec. 566. Reappointment of Chairman and Vice-Chairman of the Joint 
                            Chiefs of Staff during national emergency.

                  Subtitle A--Officer Personnel Policy

SEC. 501. REPEAL OF PROHIBITION AGAINST REGULAR NAVY OFFICERS 
              TRANSFERRING BETWEEN LINE AND STAFF CORPS IN GRADES ABOVE 
              LIEUTENANT COMMANDER.

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

SEC. 502. RETENTION OF OFFICERS SERVING IN HEALTH PROFESSIONS TO 
              FULFILL ACTIVE DUTY SERVICE COMMITMENTS FOLLOWING 
              PROMOTION NON-SELECTION.

    (a) In General.--Subsection (a) of section 632 of title 10, United 
States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(4) if on the date on which he is to be discharged under 
        paragraph (1) a medical officer or dental officer or an officer 
        appointed in a medical skill other than as a medical officer or 
        dental officer (as defined in regulations prescribed by the 
        Secretary of Defense) has yet to complete a period of active 
        duty service obligation incurred under section 2005, 2114, 
        2123, or 2603 of this title, he shall be retained on active 
        duty until completion of such service obligation, unless the 
        Secretary concerned determines that completion of the active 
        duty obligation is not in the best interest of the military 
        department.''.
    (b) Technical Amendment.--Such subsection is further amended by 
striking ``clause (1)'' in paragraph (3) and inserting ``paragraph 
(1)''.

SEC. 503. REQUIREMENT OF EXEMPLARY CONDUCT.

    (a) In General.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 121 the following new section:
``Sec. 121a. Requirement of exemplary conduct
    ``All commanding officers and others in authority in the Department 
of Defense, are required--
            ``(1) to show in themselves a good example of virtue, 
        honor, patriotism, and subordination;
            ``(2) to be vigilant in inspecting the conduct of all 
        persons who are placed under their command or charge;
            ``(3) to guard against and to suppress all dissolute and 
        immoral practices and to correct, according to applicable laws 
        and regulations, all persons who are guilty of them; and
            ``(4) to take all necessary and proper measures, under the 
        laws, regulations, and customs applicable to the armed forces, 
        to promote and safeguard the morale, the physical well-being, 
        and the general welfare of the officers, enlisted persons, and 
        civilian persons under their command or charge.''.
    (b) Conforming and Clerical Amendments.--(1) The table of sections 
at the beginning of such chapter is amended by inserting after the item 
relating to section 121 the following new item:

``121a. Requirement of exemplary conduct.''.
    (2) Title 10 is further amended as follows:
            (A)(i) Section 3583 is repealed.
            (ii) The table of sections at the beginning of chapter 345 
        is amended by striking the item relating to section 3583.
            (B)(i) Section 5947 is repealed.
            (ii) The table of sections at the beginning of chapter 551 
        is amended by striking the item relating to section 5947.
            (C)(i) Section 8583 is repealed.
            (ii) The table of sections at the beginning of chapter 845 
        is amended by striking the item relating to section 8583.

                Subtitle B--Reserve Component Management

SEC. 511. READY RESERVE TRAINING REQUIREMENT.

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

SEC. 512. STREAMLINE PROCESS TO CONTINUE OFFICERS ON THE RESERVE ACTIVE 
              STATUS LIST.

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

SEC. 513. EXTENDING ELIGIBILITY TO THE FEDERAL LONG-TERM CARE INSURANCE 
              PROGRAM TO RESERVISTS TRANSFERRED TO THE RETIRED RESERVES 
              AWAITING RECEIPT OF RETIRED PAY.

    Section 9001(4) of title 5, United States Code, is amended--
            (1) by striking ``including'' and inserting ``and''; and
            (2) by striking ``who has attained the age of 60 and''.

              Subtitle C--Military Education and Training

SEC. 521. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD THE DEGREE 
              OF MASTER OF OPERATIONAL STUDIES.

    Section 7102 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Command and Staff College of the Marine Corps University.--
Upon the recommendation of the Director and faculty of the Command and 
Staff College of the Marine Corps University, the President of the 
Marine Corps University may confer the degree of master of operational 
studies upon graduates of the Command and Staff College's School of 
Advanced Warfighting who fulfill the requirements for that degree.''.

SEC. 522. JOINT PROFESSIONAL MILITARY EDUCATION.

    Section 663(e) of title 10, United States Code, is repealed.

                   Subtitle D--Administrative Matters

SEC. 531. ENHANCEMENTS TO PERSONNEL TEMPO PROGRAM.

    (a) Revisions to Deployment Limits and Authority To Authorize 
Exemptions.--Section 991(a) of title 10, United States Code, is amended 
to read as follows:
    ``(a) Service and General or Flag Officer Responsibilities.--The 
deployment (or potential deployment) of a member of the armed forces 
shall be managed to ensure the member is not deployed, or continued in 
a deployment, on any day on which the total number of days on which the 
member has been deployed out of the preceding 730 days would exceed 
400, or a lower threshold as approved by the Under Secretary of Defense 
for Personnel and Readiness. The member may be deployed, or continued 
in a deployment, without regard to the preceding sentence if such 
deployment, or continued deployment, is approved by a member of the 
Senior Executive Service or the first general or flag officer 
(including officers in the grade of 0-6 in such positions already 
selected for general or flag rank) in the member's chain of command.''.
    (b) Changes to High-Deployment Allowance.--Section 436 of title 37, 
United States Code, is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Monthly Allowance Required.--The Secretary of the military 
department concerned shall pay a high-deployment allowance to a member 
of the armed forces under the Secretary's jurisdiction for each month 
during which the member--
            ``(1) is deployed; and
            ``(2) has, as of that day, been deployed for either or both 
        of the following periods:
                    ``(A) 401 or more days out of the preceding 730 
                days (or at a lower threshold as approved by the Under 
                Secretary of Defense for Personnel and Readiness); or
                    ``(B) 191 or more consecutive days (or for a lower 
                threshold as approved by the Under Secretary of Defense 
                for Personnel and Readiness).'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Maximum Rate.--The maximum monthly rate of the allowance 
payable to a member under this section is $1,000.'';
            (3) in subsection (e), by striking ``per diem'' and 
        inserting ``allowance'';
            (4) in subsection (f)--
                    (A) by striking ``per diem'' and inserting 
                ``allowance''; and
                    (B) by striking ``day on'' and inserting ``month 
                during''; and
            (5) by adding at the end the following new subsection:
    ``(g) Excluded Billets.--The Secretary concerned may exclude 
selected billets from eligibility for the high-deployment allowance 
upon approval by the Under Secretary of Defense for Personnel and 
Readiness. A billet may only be excluded on a prospective basis once 
the current incumbent has vacated that billet.''.
    (c) Changes to Reporting Requirement.--Section 487(b)(5) of title 
10, United States Code, is amended to read as follows:
    ``(5) For each of the armed forces, the description shall indicate 
the number of members who received the high-deployment allowance, the 
total number of months for which the allowance was paid to members, and 
the total amount spent on the allowance.''.
    (d) Clerical Amendments.--(1) The heading of section 436 of title 
37, United States Code, is amended to read as follows:
``Sec. 436. Monthly high-deployment allowance for lengthy or numerous 
              deployments'';
 and
    (2) The item relating to that section in the table of sections at 
the beginning of chapter 7 of such title is amended to read as follows:

``436. Monthly high-deployment allowance for lengthy or numerous 
                            deployments.''.

SEC. 532. ELIMINATE REQUIREMENT THAT THE DEPARTMENT OF DEFENSE REPORT 
              EARNED BUT NON-TAXABLE INCOME ON FORM W-2.

    Section 6051(a) of subpart A of part III of chapter 61 of the 
Internal Revenue Code of 1986 (relating to information concerning 
persons subject to special provisions) is amended--
            (1) by striking paragraph (10); and
            (2) by redesignating paragraph (11) as paragraph (10).

SEC. 533. CONSISTENT TIME IN SERVICE RETIREMENT CRITERIA.

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

                          Subtitle E--Benefits

SEC. 541. AUTHORITY TO TRANSPORT REMAINS OF RETIREES WHO DIE IN 
              MILITARY TREATMENT FACILITIES OUTSIDE THE UNITED STATES.

    (a) Authorize Transport Outside the United States.--Section 1490 of 
title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``located in the United 
        States''; and
            (2) in subsection (b)(1), by striking ``outside the United 
        States or to a place''.
    (b) Conforming Amendment.--Subsection (c) of such section is 
amended to read as follows:
    ``(c) In this section, the term `dependent' has the meaning given 
such term in section 1072(2) of this title.''.

SEC. 542. CHANGE FAMILY SEPARATION HOUSING ALLOWANCE FROM AN 
              ENTITLEMENT TO A DISCRETIONARY ALLOWANCE.

    Section 403(d)(1) of title 37, United States Code, is amended by 
striking ``is entitled to'' and inserting ``may be paid, at the 
discretion of the Secretary concerned,''.

SEC. 543. PAYMENT OF DEPENDENT STUDENT BAGGAGE STORAGE.

    Section 430(b)(2) of title 37, United States Code, is amended by 
striking ``during the dependent's annual trip between the school and 
the member's duty station'' and inserting ``one time per fiscal year''.

SEC. 544. MODIFICATION OF PROHIBITION ON REQUIREMENT OF NONAVAILABILITY 
              STATEMENT OR PREAUTHORIZATION.

    Section 721 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (Public Law 106-398; 114 Stat. 1654A-184), as 
enacted into law by Public Law 106-398, and as amended by Public Law 
107-107, is hereby repealed.

                  Subtitle F--Military Justice Matters

SEC. 551. TECHNICAL AMENDMENT TO THE UNIFORM CODE OF MILITARY JUSTICE 
              CONCERNING THE OFFENSE OF DRUNKEN OPERATION OF A VEHICLE, 
              AIRCRAFT, OR VESSEL.

    Section 911 of title 10, United States Code, is amended to read as 
follows:
``Sec. 911. Drunken or reckless operation of a vehicle, aircraft, or 
              vessel
    ``(a) Any person subject to this chapter who--
            ``(1) operates or physically controls any vehicle, 
        aircraft, or vessel in a reckless or wanton manner or while 
        impaired by a substance described in section 912a(b) of this 
        title, or
            ``(2) operates or is in actual physical control of any 
        vehicle, aircraft, or vessel while drunk or when the alcohol 
        concentration in the person's blood or breath is at or above 
        the level prohibited under subsection (b), as shown by chemical 
        analysis, shall be punished as a court-martial may direct.
    ``(b)(1) For purposes of subsection (a), the applicable limit on 
the alcohol concentration in a person's blood or breath is as follows:
            ``(A) In the case of the operation or control of a vehicle, 
        aircraft, or vessel in the -United States, the level is the 
        blood or breath alcohol concentration prohibited under the law 
        of the State in which the conduct occurred, except as may be 
        provided under paragraph (2) for conduct on a military 
        installation that is in more than one State, and subject to the 
        prohibited alcohol concentration level specified in paragraph 
        (3).
            ``(B) In the case of the operation or control of a vehicle, 
        aircraft, or vessel outside the United States, the level is the 
        blood alcohol concentration specified in paragraph (3) or such 
        lower level as the Secretary of Defense may by regulation 
        prescribe.
    ``(2) In the case of a military installation that is in more than 
one State, if those States have different levels for defining their 
prohibited blood alcohol concentrations under their respective State 
laws, the Secretary concerned for the installation may select one such 
level to apply uniformly on that installation.
    ``(3) For purposes of paragraph (1), the level of alcohol 
concentration prohibited in a person's blood is 0.10 grams or more of 
alcohol per 100 milliliters of blood and with respect to a person's 
breath is 0.10 grams or more of alcohol per 210 liters of breath, as 
shown by chemical analysis.
    ``(4) In this subsection, the term `United States' included the 
District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, and American Samoa and the term `State' includes each of 
those jurisdictions.''.

                       Subtitle G--Other Matters

SEC. 561. TERMINATION OF DISABILITY REVIEW BOARDS.

    (a) Military Departments.--Section 1554 of title 10, United States 
Code, is repealed.
    (b) Public Health Service.--Section 221(a) of the Public Health 
Service Act (42 U.S.C. 213a(a)) is amended--
            (1) by striking paragraph (14); and
            (2) by redesignating paragraphs (15), (16), and (17) as 
        paragraphs (14), (15), and (16), respectively.

SEC. 562. BASIC TRAINING REQUIREMENT FOR CERTAIN MEMBERS ACCESSED UNDER 
              A DIRECT ENTRY PROGRAM.

    Paragraph (1) of section 671(c) of title 10, United States Code, is 
amended to read as follows:
    ``(1) Under regulations prescribed under paragraph (2), 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--
            ``(A) have been credentialed in a medical profession or 
        occupation and are serving in a health-care occupational 
        specialty; or
            ``(B) have been accessed into a direct entry program 
        established by the Secretary concerned based on unique skills 
        acquired in a civilian occupation.
Any such period shall be established under regulations prescribed under 
paragraph (2) and may be established notwithstanding section 4(a) of 
the Military Selective Service Act (50 U.S.C. App. 454(a)).''.

SEC. 563. ALTERNATE INITIAL MILITARY SERVICE OBLIGATION FOR PERSONS 
              ACCESSED UNDER DIRECT ENTRY PROGRAM.

    Subsection (a) of section 651 of title 10, United States Code, is 
amended to read as follows:
    ``(a)(1) Each person who becomes a member of an armed force, other 
than a person described in paragraph (2), shall serve in the armed 
forces for a total initial period of not less than six years nor more 
than eight years, as provided in regulations prescribed by the 
Secretary of Defense for the armed forces under his jurisdiction and by 
the Secretary of Homeland Security for the Coast Guard when it is not 
operating as a service in the Navy, unless such person is sooner 
discharged under such regulations because of personal hardship. Any 
part of such service that is not active duty or that is active duty for 
training shall be performed in a reserve component.
    ``(2) A person is not subject to paragraph (1) if that person--
            ``(A) 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)); or
            ``(B) accessed into a direct entry program established by 
        the Secretary concerned based on unique skills acquired in a 
        civilian occupation.''.

SEC. 564. RELEASE OF TAXPAYER ADDRESS INFORMATION HELD BY THE INTERNAL 
              REVENUE SERVICE ON MEMBERS OF THE ARMED FORCES.

    (a) Authority.--Section 6103(m) of the Internal Revenue Code of 
1986 (26 U.S.C. 6103(m)) is amended by adding at the end the following 
new paragraph:
            ``(8) Members of the armed forces.--
                    ``(A) In general.--Upon written request by the 
                Secretary of Defense, the Secretary of a military 
                department, or the Secretary of Homeland Security with 
                respect to the Coast Guard when it is not operating as 
                a service in the Navy, the Secretary may disclose the 
                mailing address of an individual to officers or 
                employees of the Department of Defense or Department of 
                Homeland Security for use by such officers or employees 
                or their agents for the purpose of locating such 
                individual who is serving in a reserve component of the 
                armed forces of the United States.
                    ``(B) Prior attempts to obtain address information 
                from other sources.--Such requests shall be made only 
                after the Secretary of Defense, the Secretary of a 
                military department or the Secretary of Homeland 
                Security, as the case may be, has made every reasonable 
                effort to locate the individual through other sources.
                    ``(C) Exception during national emergency or war.--
                During a national emergency declared by the President 
                or war declared by Congress, the Secretary of Defense, 
                the Secretary of a military department or the Secretary 
                of Homeland Security may request the address of an 
                individual, notwithstanding subparagraph (B), if the 
                individual possesses a critical skill and is needed for 
                immediate mobilization under section 12304, 12302, or 
                12301(a) of title 10.
                    ``(D) Expiration of authority.--No information 
                shall be released under this section after September 
                30, 2006.''.
    (b) Disclosure to contractors.--Subsection (p) of such section is 
amended by adding at the end the following new paragraph:
            ``(9) Disclosure to contractors.--
                    ``(A) In general.--Notwithstanding any 
other provision of this section, no return or return information shall 
be disclosed to a contractor or other agent of a Federal, State, or 
local agency unless such agency, to the satisfaction of the Secretary--
                            ``(i) has requirements in effect that 
                        require each contractor or other agent of such 
                        agency that would have access to returns or 
                        return information to provide safeguards 
                        (within the meaning of paragraph (4)) to 
                        protect the confidentiality of such returns or 
                        return information;
                            ``(ii) agrees to conduct a regular, on-site 
                        review (mid-point review in the case of 
                        contracts of less than 1 year in duration) of 
                        each contractor or other agency to determine 
                        compliance with such requirements;
                            ``(iii) submits the findings of the most 
                        recent review conducted under clause (ii) to 
                        the Secretary as part of the report required by 
                        paragraph (4)(E); and
                            ``(iv) certifies to the Secretary for the 
                        most recent annual period that all contractors 
                        or other agents are in compliance with all such 
                        requirements. Such certification shall be 
                        signed by the head of the agency or his or her 
                        delegate.
                ``The certification required by clause (iv) shall 
                include the name and address of each contractor or 
                other agent, a description of the contract or agreement 
                of the contractor with the agency, or other authority 
                for agency relationship, and the duration of such 
                contract, agreement or authority.
                    ``(B) Relationship to provision governing 
                disclosure for purposes of tax administration.--The 
                requirements of this paragraph shall not apply to 
                disclosures pursuant to subsection (n) for purposes of 
                Federal tax administration.''.
    (c) Conforming and Technical Amendments.--(1) Such section is 
further amended--
            (A) in subsection (a)(3), by striking ``(2) or (4)(B)'' and 
        inserting ``(2), (4)(B), (5), (7), or (8)''; and
            (B) in subsection (p)(4), by striking ``under paragraph 
        (2), (4), (6), or (7) of subsection (m)'' and inserting ``under 
        paragraph (2), (4), (5), (6), (7), or (8) of subsection (m)''.
    (2) Section 7213(a)(2) of such Code (26 U.S.C. 7213(a)(2)) is 
amended by striking ``or (7) of section 6103'' and inserting ``(7), or 
(8) of section 6103''.

SEC. 565. JOINT WARFIGHTING CAPABILITIES FUNDING.

    Section 166a(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(10) Joint warfighting capabilities.''.

SEC. 566. REAPPOINTMENT OF CHAIRMAN AND VICE-CHAIRMAN OF THE JOINT 
              CHIEFS OF STAFF DURING NATIONAL EMERGENCY.

    (a) Reappointment of the Chairman of the Joint Chiefs of Staff.--
Section 152(a) of title 10, United States Code, is amended--
            (1) in paragraph (1), by striking ``in time of war'' and 
        inserting ``in time of war or during a national emergency 
        declared by the President or Congress''; and
            (2) in paragraph (3), by striking ``in time of war'' and 
        inserting ``in time of war or during a national emergency 
        declared by the President or Congress''.
    (b) Reappointment of the Vice-Chairman of the Joint Chiefs of 
Staff.--Paragraph (3) of section 154(a) of such title is amended by 
striking ``in time of war'' and inserting ``in time of war or during a 
national emergency declared by the President or Congress''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.
Sec. 602. Housing allowance for each married partner when both are on 
                            sea duty and there are no other dependents.
Sec. 603. Amendment to basic pay for certain commissioned officers with 
                            prior service as an enlisted member or 
                            warrant officer.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Increase maximum amount of selective reenlistment bonus.
Sec. 612. Making all warrant officers eligible for accession bonus for 
                            new officers in critical skills.
Sec. 613. Incentive bonus: lateral conversion bonus for converting to 
                            undermanned military occupational 
                            specialties.
Sec. 614. Extending hostile fire and imminent danger pay to Reserve 
                            component members on inactive duty.
Sec. 615. Expanded educational assistance authority for cadets and 
                            midshipmen receiving ROTC scholarships.
Sec. 616. Notice and wait provision concerning critical skills 
                            retention bonus.
Sec. 617. Expansion of overseas tour extension incentive program 
                            benefits to officers.
Sec. 618. One-year extension of certain bonus and special pay 
                            authorities for Reserve forces.
Sec. 619. One-year extension of special pay and bonus authorities for 
                            nuclear officers.
Sec. 620. One-year extension of authorities relating to payment of 
                            other bonuses.
            Subtitle C--Travel and Transportation Allowances

Sec. 621. Shipment of a privately owned motor vehicle within the 
                            continental United States.
                       Subtitle D--Other Matters

Sec. 631. Providing members serving in a contingency operation the same 
                            tax filing delay provided to members 
                            serving in a combat zone or in a qualified 
                            hazardous duty area.
Sec. 632. Permit non-scholarship senior ROTC sophomores to voluntarily 
                            contract and receive subsistence allowance.
Sec. 633. Increase annual student loan repayment authority.
Sec. 634. Authorize cabinet secretaries, secretaries of military 
                            departments, and heads of independent 
                            agencies to be paid on a biweekly basis.

                     Subtitle A--Pay and Allowances

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

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

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,751.10   8,004.90   8,173.20   8,220.60    8,430.30
O-7.............   6,440.70   6,739.80   6,878.40   6,988.50    7,187.40
O-6.............   4,773.60   5,244.30   5,588.40   5,588.40    5,609.70
O-5.............   3,979.50   4,482.90   4,793.40   4,851.60    5,044.80
O-4.............   3,433.50   3,974.70   4,239.90   4,299.00    4,545.30
O-3\3\..........   3,018.90   3,422.40   3,693.90   4,027.20    4,220.10
O-2\3\..........   2,595.60   2,956.50   3,405.00   3,519.90    3,592.50
O-1\3\..........   2,253.60   2,345.10   2,834.70   2,834.70    2,834.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,781.90   8,863.50   9,197.10   9,292.80    9,579.90
O-7.............   7,384.20   7,611.90   7,839.00   8,066.70    8,781.90
O-6.............   5,850.00   5,882.10   5,882.10   6,216.30    6,807.30
O-5.............   5,161.20   5,415.90   5,602.80   5,844.00    6,213.60
O-4.............   4,809.30   5,137.80   5,394.00   5,571.60    5,673.60
O-3\3\..........   4,431.60   4,568.70   4,794.30   4,911.30    4,911.30
O-2\3\..........   3,592.50   3,592.50   3,592.50   3,592.50    3,592.50
O-1\3\..........   2,834.70   2,834.70   2,834.70   2,834.70    2,834.70
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $12,524.7  $12,586.2  $12,847.8  $13,303.80
                                     0          0          0
O-9.............       0.00  10,954.50  11,112.30  11,340.30   11,738.40
O-8.............   9,995.70  10,379.10  10,635.30  10,635.30   10,635.30
O-7.............   9,386.10   9,386.10   9,386.10   9,386.10    9,433.50
O-6.............   7,154.10   7,500.90   7,698.30   7,897.80    8,285.40
O-5.............   6,389.70   6,563.40   6,760.80   6,760.80    6,760.80
O-4.............   5,733.00   5,733.00   5,733.00   5,733.00    5,733.00
O-3\3\..........   4,911.30   4,911.30   4,911.30   4,911.30    4,911.30
O-2\3\..........   3,592.50   3,592.50   3,592.50   3,592.50    3,592.50
O-1\3\..........   2,834.70   2,834.70   2,834.70   2,834.70    2,834.70
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades O-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\Subject to the preceding footnote, the rate of basic pay for an
  officer in this grade while serving as Chairman or Vice Chairman of
  the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, or Commandant of the Coast Guard, is $14,679.30, regardless of
  cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


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


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


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\2\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,145.00   2,341.20   2,430.60   2,549.70   2,642.10
E-6..............   1,855.50   2,041.20   2,131.20   2,218.80   2,310.00
E-5..............   1,700.10   1,813.50   1,901.10   1,991.10   2,130.60
E-4..............   1,558.20   1,638.30   1,726.80   1,814.10   1,891.50
E-3..............   1,407.00   1,495.50   1,585.50   1,585.50   1,585.50
E-2..............   1,331.40   1,331.40   1,331.40   1,331.40   1,331.40
E-1\3\...........   1,086.00       0.00       0.00       0.00       0.00
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\2\...........      $0.00  $3,769.20  $3,854.70  $3,962.40  $4,089.30
E-8..............   3,085.50   3,222.00   3,306.30   3,407.70   3,517.50
E-7..............   2,801.40   2,891.10   2,980.20   3,139.80   3,219.60
E-6..............   2,516.10   2,596.20   2,685.30   2,763.30   2,790.90
E-5..............   2,250.90   2,339.70   2,367.90   2,367.90   2,367.90
E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
E-2..............   1,331.40   1,331.40   1,331.40   1,331.40   1,331.40
E-1\3\...........   1,173.90   1,173.90   1,173.90   1,173.90   1,173.90
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\2\...........  $4,216.50  $4,421.10  $4,594.20  $4,776.60  $5,054.70
E-8..............   3,715.50   3,815.70   3,986.40   4,081.20   4,314.30
E-7..............   3,295.50   3,341.70   3,498.00   3,599.10   3,855.00
E-6..............   2,809.80   2,809.80   2,809.80   2,809.80   2,809.80
E-5..............   2,367.90   2,367.90   2,367.90   2,367.90   2,367.90
E-4..............   1,891.50   1,891.50   1,891.50   1,891.50   1,891.50
E-3..............   1,585.50   1,585.50   1,585.50   1,585.50   1,585.50
E-2..............   1,331.40   1,331.40   1,331.40   1,331.40   1,331.40
E-1\3\...........   1,173.90   1,173.90   1,173.90   1,173.90   1,173.90
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\Subject to the preceding footnote, the rate of basic pay for an
  enlisted member in this grade while serving as Sergeant Major of the
  Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of
  the Air Force, Sergeant Major of the Marine Corps, or Master Chief
  Petty Officer of the Coast Guard, is $6,090.90, regardless of
  cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,086.00.

    (c) Increase in Basic Pay for Members of the Uniformed Services Not 
in the Armed Forces.--Effective on January 1, 2004, the rates of 
monthly basic pay for members of the uniformed services not in the 
armed forces is increased by 2.0 percent.

SEC. 602. HOUSING ALLOWANCE FOR EACH MARRIED PARTNER WHEN BOTH ARE ON 
              SEA DUTY AND THERE ARE NO OTHER DEPENDENTS.

    Subparagraph (C) of subsection 403(f)(2) of title 37, United States 
Code, is amended to read as follows:
                    ``(C) Notwithstanding section 421 of this title, 
                two members of the uniformed services in a pay grade 
                below pay grade E-6 who are married to each other, have 
                no other dependents, and are simultaneously assigned to 
                sea duty are each entitled to a basic allowance for 
                housing during the period of such simultaneous sea 
                duty. The amount of each member's allowance shall be 
                based on the without dependents rate for the pay grade 
                of the member.''.

SEC. 603. AMENDMENT TO BASIC PAY FOR CERTAIN COMMISSIONED OFFICERS WITH 
              PRIOR SERVICE AS AN ENLISTED MEMBER OR WARRANT OFFICER.

    Section 203(d)(2) of title 37, United States Code, is amended to 
read as follows:
            ``(2) Service to be taken into account for purposes of 
        computing basic pay under paragraph (1) is as follows:
                    ``(A) Active service as a warrant officer or as a 
                warrant officer and an enlisted member.
                    ``(B) Service as a warrant officer, as an enlisted 
                member, or as a warrant officer and an enlisted member, 
                for which at least 1,460 points have been credited to 
                the officer for the purposes of section 12732(a)(2) of 
                title 10.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. INCREASE MAXIMUM AMOUNT OF SELECTIVE REENLISTMENT BONUS.

    Section 308(a)(2)(B) of title 37, United States Code, is amended by 
striking ``$60,000'' and inserting ``$90,000''.

SEC. 612. MAKING ALL WARRANT OFFICERS ELIGIBLE FOR ACCESSION BONUS FOR 
              NEW OFFICERS IN CRITICAL SKILLS.

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

SEC. 613. INCENTIVE BONUS: LATERAL CONVERSION BONUS FOR CONVERTING TO 
              UNDERMANNED MILITARY OCCUPATIONAL SPECIALTIES.

    (a) Bonus Authorized.--Chapter 5 of title 37, United States Code, 
is amended by adding at the end the following new section:
``Sec. 326. Incentive bonus: lateral conversion bonus for converting to 
              undermanned military occupational specialties
    ``(a) Authority and Eligibility Requirements.--(1) The Secretary 
concerned may pay a bonus to a member of the armed forces who agrees to 
serve in a military occupational specialty, rating or other military 
specialty defined by the member's armed force, that is designated by 
the Secretary concerned as undermanned for purposes of this bonus.
    ``(2) A bonus may only be paid under this section to a member who:
            ``(A) is entitled to basic pay;
            ``(B) is serving in pay grade E-6 (with less than 10 years 
        of service) or E-5 and below (regardless of years of service); 
        and
            ``(C) agrees to serve for a period of not less than two 
        years in a military occupational specialty, rating or other 
        military specialty designated by the Secretary concerned as 
        undermanned for the purposes of this bonus.
    ``(b) Amount and Payment of Bonus.--(1) A bonus under this section 
may not exceed $4,000.
    ``(2) Any bonus payable under this section shall be disbursed in 
one lump sum payment when the member's conversion to the new military 
specialty is approved by the personnel chief of the member's armed 
force, or his designee.
    ``(c) Relationship to Other Pay and Allowances.--A bonus paid to a 
member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(d) Repayment of Bonus.--(1) A member who receives a bonus 
payment under this section and who voluntarily or through misconduct, 
fails to serve for the required period in the undermanned military 
occupational specialty, rating or other military specialty defined by 
the armed force for which the bonus was paid, shall refund to the 
United States an amount that bears the same ratio to the amount of the 
bonus paid to the member as the period that the member failed to serve 
bears to the total period for which the bonus was paid.
    ``(2) An obligation to reimburse the United States imposed under 
paragraph (1) is, for all purposes, a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of service for which a bonus was 
paid under this section shall not discharge the person receiving such 
bonus payment from the debt arising under paragraph (1).
    ``(4) Under regulations prescribed pursuant to subsection (e), the 
Secretary concerned may waive, in whole or in part, an obligation to 
reimburse the United States imposed under paragraph (1) when the 
Secretary determines that recovery would be against equity and good 
conscience or would be contrary to the best interests of the United 
States.
    ``(e) Regulations.--The Secretaries concerned shall prescribe 
regulations to carry out this section. Regulations prescribed by the 
Secretary of a military department shall be subject to the approval of 
the Secretary of Defense.
    ``(f) Termination of Bonus Authority.--No bonus may be paid under 
this section with respect to any lateral conversion approved after 
September 30 of the third fiscal year that began after the date of 
enactment of this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``326. Incentive bonus: lateral conversion bonus for converting to 
                            undermanned military occupational 
                            specialties.''.

SEC. 614. EXTENDING HOSTILE FIRE AND IMMINENT DANGER PAY TO RESERVE 
              COMPONENT MEMBERS ON INACTIVE DUTY.

    Section 310 of title 37, United States Code, is amended--
            (1) in subsection (a), by inserting ``under section 204, or 
        to compensation under section 206 (as provided in subsection 
        (b)(2)), of this title,'' after ``basic pay''; and
            (2) in subsection (b)(2), by inserting ``, including a 
        member who is entitled to compensation under section 206 of 
        this title if performing inactive duty in an area that has not 
        been designated as an imminent danger area or has not been 
        under hostile fire but comes under hostile fire or an explosion 
        of hostile mines during such inactive duty for training 
        period,'' after ``reserve component''.

SEC. 615. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR CADETS AND 
              MIDSHIPMEN RECEIVING ROTC SCHOLARSHIPS.

    (a) Financial Assistance Program for Service on Active Duty.--
Section 2107(c) of title 10, United States Code, is amended by adding 
at the end the following new paragraph:
    ``(3)(A) In the case of any cadet or midshipman eligible to receive 
financial assistance as provided under paragraph (1) or (2), the 
Secretary of the military department concerned may pay room and board 
expenses for such cadet or midshipman, and other expenses required by 
the educational institution, in lieu of all or part of the financial 
assistance described in paragraph (1).
    ``(B) The total amount of financial assistance, including the 
payment of room and board and other educational expenses, provided to a 
cadet or midshipman in an academic year under this subsection may not 
exceed an amount equal to the amount that could be provided as 
financial assistance for such cadet or midshipman under paragraph (1) 
or (2), or other amount determined by the Secretary concerned, without 
regard to whether room and board and other educational expenses for 
such cadet or midshipman are paid under this paragraph.''.
    (b) Financial Assistance Program for Service in Troop Program 
Units.--Section 2107a(c) of such title is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) by adding at the end the following new paragraph:
            ``(2)(A) In the case of any cadet eligible to receive 
        financial assistance as provided under paragraph (1), the 
        Secretary of the military department concerned may pay room and 
        board expenses for such cadet, and other expenses required by 
        the educational institution, in lieu of all or part of the 
        financial assistance described in paragraph (1).
            ``(B) The total amount of financial assistance, including 
        the payment of room and board and any other educational 
        expenses, provided to a cadet in an academic year under this 
        subsection may not exceed an amount equal to the amount that 
        could be provided as financial assistance for such cadet under 
        paragraph (1), or other amount determined by the Secretary of 
        the Army, without regard to whether the room and board and 
        other educational expenses for such cadet are paid under this 
        paragraph.''.

SEC. 616. NOTICE AND WAIT PROVISION CONCERNING CRITICAL SKILLS 
              RETENTION BONUS.

    Section 323(b) of title 37, United States Code, is amended by 
striking paragraph (2).

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

    (a) Rest and Recuperative Absence.--(1) Section 705 of title 10, 
United States Code, is amended--
            (A) by striking ``enlisted'' in the section heading; and
            (B) in subsection (a), by striking ``an enlisted'' and 
        inserting ``a''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 40 of such title is amended to read as 
follows:

``705. Rest and recuperative absence for qualified members extending 
                            duty at designated locations overseas.''.
    (b) Special Pay or Bonus.--(1) Section 314 of title 37, United 
States Code, is amended--
            (A) by striking ``enlisted'' in the section heading;
            (B) in subsection (a), by striking ``an enlisted'' and 
        inserting ``a''; and
            (C) in subsection (b), by striking ``an enlisted'' and 
        inserting ``a''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 5 of such title is amended to read as follows:

``314. Special pay or bonus: qualified members extending duty at 
                            designated locations overseas.''.

SEC. 618. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking out ``December 31, 2003'' and inserting 
``December 31, 2004''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of such 
title is amended by striking out ``December 31, 2003'' and inserting 
``December 31, 2004''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking out ``December 31, 2003'' and inserting 
``December 31, 2004''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
out ``December 31, 2003'' and inserting ``December 31, 2004''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2001'' and inserting 
``December 31, 2004''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section of 
308h(g) of such title is amended by striking ``December 31, 2003'' and 
inserting ``December 31, 2004''.
    (g) Prior Service Reenlistment Bonus.--Section 308i(f) of such 
title is amended by striking ``December 31, 2003'' and inserting 
``December 31, 2004''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking ``January 1, 2004'' and 
inserting ``January 1, 2005''.

SEC. 619. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR 
              NUCLEAR OFFICERS.

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

SEC. 620. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              OTHER BONUSES.

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

            Subtitle C--Travel and Transportation Allowances

SEC. 621. SHIPMENT OF A PRIVATELY OWNED MOTOR VEHICLE WITHIN THE 
              CONTINENTAL UNITED STATES.

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

                       Subtitle D--Other Matters

SEC. 631. PROVIDING MEMBERS SERVING IN A CONTINGENCY OPERATION THE SAME 
              TAX FILING DELAY PROVIDED TO MEMBERS SERVING IN A COMBAT 
              ZONE OR IN A QUALIFIED HAZARDOUS DUTY AREA.

    (a) In General.--Section 7508(a) of the Internal Revenue Code of 
1986 (relating to deadlines postponed by reason of service in a combat 
zone) is amended--
            (1) by inserting ``or when deployed outside the United 
        States away from the individual's permanent duty station while 
        participating in an operation designated by the Secretary of 
        Defense as a contingency operation, or which became a 
        contingency operation by operation of law, pursuant to section 
        101 of title 10'' after ``section 112''; and
            (2) by inserting ``or at any time during the period of a 
        contingency operation'' after ``for purposes of such section''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``SEC. 7508. TIME FOR PERFORMING CERTAIN ACTS BY REASON OF SERVICE IN 
              COMBAT ZONE OR CONTINGENCY OPERATION.''.

    (2) The item relating to such section in the table of sections at 
the beginning of chapter 77 of the Internal Revenue Code of 1986 is 
amended to read as follows:

``Sec. 7508. Time for performing certain acts postponed by reason of 
                            service in combat zone or contingency 
                            operation.''.

SEC. 632. PERMIT NON-SCHOLARSHIP SENIOR ROTC SOPHOMORES TO VOLUNTARILY 
              CONTRACT AND RECEIVE SUBSISTENCE ALLOWANCE.

    Section 209 of title 37, United States Code, is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Pilot Program for Contract of Non-Scholarship Senior ROTC 
Members.--(1) An eligible member of the Selected Reserve Officers' 
Training Corps is entitled to a monthly subsistence allowance at a rate 
prescribed under subsection (a) for a maximum of twenty months.
    ``(2) To be eligible to receive a subsistence allowance under this 
subsection, a person must--
            ``(A) be a citizen of the United States;
            ``(B) enlist in an armed force under the jurisdiction of 
        the Secretary of the military department concerned for the 
        period prescribed by the Secretary;
            ``(C) contract, with the consent of his parent or guardian 
        if he is a minor, with the Secretary of the military department 
        concerned, or his designated representative, to serve for the 
        period required by the program;
            ``(D) agree in writing that he will accept an appointment, 
        if offered, as a commissioned officer in the Army, Navy, Air 
        Force, or Marine Corps, as the case may be, and that he will 
        serve in the armed forces for the period prescribed by the 
        Secretary;
            ``(E) complete successfully the first year of a four-year 
        Senior Reserve Officers' Training Corps course;
            ``(F) not be eligible for advanced training under section 
        2104 of title 10;
            ``(G) not be appointed under section 2107 of title 10; and
            ``(H) execute a certificate of loyalty in such form as the 
        Secretary of Defense prescribes or take a loyalty oath as 
        prescribed by the Secretary.
    ``(3) This program will run as a pilot program for the period of 
three years beginning in January 2004. The Secretary of Defense will 
report to the Office of Management and Budget annually on the 
participation rates for the program with a cost evaluation of the 
program's effectiveness. Such annual reports will be due by December 31 
for each of the three years.''.

SEC. 633. INCREASE ANNUAL STUDENT LOAN REPAYMENT AUTHORITY.

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

SEC. 634. AUTHORIZE CABINET SECRETARIES, SECRETARIES OF MILITARY 
              DEPARTMENTS, AND HEADS OF EXECUTIVE AGENCIES TO BE PAID 
              ON A BIWEEKLY BASIS.

    Section 5504 of title 5, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``For the purpose of this 
                subsection'' and inserting ``For the purpose of this 
                section''; and
                    (B) by amending paragraph (B) to read as follows:
                    ``(B) an employee or individual excluded from the 
                definition of `employee' in section 5541(2), other than 
                an employee or individual excluded by clauses (ii), 
                (iii), and (xiv)-(xvii) of such section. 
                Notwithstanding the preceding sentence, an individual 
                who otherwise would be excluded from this section shall 
                be deemed to be an employee for purposes of this 
                section if the individual's employing agency so elects, 
                under guidelines in regulations to be promulgated by 
                the Office of Personnel Management under subsection 
                (c)(2).'';
            (2) in subsection (b), by striking the last sentence; and
            (3) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) The Office of Personnel Management shall provide 
        guidelines by regulation for exemptions to be made by the heads 
        of agencies under the last sentence of subsection (a)(B) only 
        under exceptional circumstances.''.

                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Revision of Department of Defense Medicare Eligible Retiree 
                            Health Care Fund to permit more accurate 
                            actuarial valuations.
Sec. 702. Applicability of the Federal Advisory Committee Act to the 
                            Pharmacy and Therapeutics Committee.
Sec. 703. Changes to Department of Defense-Department of Veterans 
                            Affairs Health Executive Committee.

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

    Section 1115(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(6) In determining single level dollar amounts in subparagraphs 
(1)(A) and (1)(B), the Secretary of Defense may, if the Secretary 
determines that it would produce a more accurate and appropriate 
actuarial valuation, determine a separate single level dollar amount 
under either or both subparagraphs for any individual participating 
uniformed service. If the Secretary makes any such determination, the 
Secretary (or in the case of a participating uniformed service under 
the jurisdiction of another administering Secretary, the administering 
Secretary concerned) shall make corresponding calculations under 
section 1116(a) of this title for the contributions applicable to the 
affected uniformed services.''.

SEC. 702. APPLICABILITY OF THE FEDERAL ADVISORY COMMITTEE ACT TO THE 
              PHARMACY AND THERAPEUTICS COMMITTEE.

    Section 1074g(b)(1) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Pharmacy and 
Therapeutics Committee.''.

SEC. 703. CHANGES TO DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS 
              AFFAIRS HEALTH EXECUTIVE COMMITTEE.

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

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

             Subtitle A--Acquisition Policy and Management

Sec. 801. Milestone authorization of selected defense acquisition 
                            programs.
Sec. 802. Contract closeout.
Sec. 803. Clarification of requirement to buy certain articles from 
                            American sources; exceptions.
Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 811. Extend use of the Defense Modernization Account for life 
                            cycle cost reduction initiatives.
Sec. 812. Extension and clarification of authority to carry out certain 
                            prototype projects.
Sec. 813. Other transaction authority for modernizing legacy systems.
Sec. 814. Authority for DoD intelligence components to award personal 
                            service contracts.
Sec. 815. Elimination of subcontract notification requirements.
Sec. 816. Exception for replacement ball bearings and roller bearings 
                            to be used in a component of non-domestic 
                            origin.
Sec. 817. Industry assignment program.
Sec. 818. Reauthorization of Defense Production Act.
       Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Limited access to controlled unclassified information by 
                            administrative support service contractors.
Sec. 822. Elimination of the requirement to furnish written assurances 
                            of technical data conformity.
Sec. 823. Authorization to take actions to correct the industrial 
                            resource shortfall for radiation-hardened 
                            electronics.
Sec. 824. Conversions of commercial activities.
Sec. 825. Make permanent the authority to enter into certain personal 
                            services contracts.

             Subtitle A--Acquisition Policy and Management

SEC. 801. MILESTONE AUTHORIZATION OF SELECTED DEFENSE ACQUISITION 
              PROGRAMS.

    (a) In General.--Chapter 144 of title 10, United States Code is 
amended by adding after section 2435 the following new section:
``Sec. 2436. Milestone authorization
    ``(a) Designation of Participating Programs.--(1) The Secretary of 
Defense may designate defense acquisition programs in each military 
department to be considered for milestone authorization of 
appropriations under subsection (c).
    ``(2) The Secretary may designate a defense acquisition program 
under paragraph (1) only if the program--
            ``(A) is ready to proceed into system development and 
        demonstration or production and deployment, or
            ``(B) is in either system development and demonstration or 
        production and deployment.
    ``(b) Submission of Baseline Descriptions.--Not later than the end 
of the 90-day period beginning on the date that a defense acquisition 
program is designated under subsection (a), the Secretary of Defense 
shall request from Congress that funds be authorized to be appropriated 
in a single amount sufficient to carry out the acquisition phase for 
which the baseline description is submitted.
    ``(c) Milestone Authorization.--Congress shall authorize the 
appropriation of funds for the system development and demonstration, or 
the production and deployment of a program designated by the Secretary 
of Defense under subsection (a) in a single amount sufficient to carry 
out that phase, provided that such period for which funds may be 
obligated may not exceed six years.
    ``(d) No Effect on Statutory and Regulatory Requirements.--Granting 
milestone authorization does not change any other statutory or 
regulatory requirements relating to defense acquisition programs.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
2435 the following new item:

``2436. Milestone authorization.''.

SEC. 802. CONTRACT CLOSEOUT.

    (a) In General.--The Secretary of Defense shall have the authority 
to promulgate regulations to settle the financial accounts for 
contracts executed prior to September 30, 1996 that are 
administratively complete and for which any unreconciled balance, 
either positive or negative, is less than $100,000.
    (b) Finality of Decision.--Decisions carried out in accordance with 
these regulations shall be final and conclusive upon the accounting 
officers of the United States.

SEC. 803. CLARIFICATION OF REQUIREMENT TO BUY CERTAIN ARTICLES FROM 
              AMERICAN SOURCES; EXCEPTIONS.

    Section 2533a of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``subsections (c) through (h)'' and 
                inserting ``subsections (b) through (i)''; and
                    (B) by striking ``if the item is not grown, 
                reprocessed, reused, or produced in the United 
                States'';
            (2) in subsection (b), by amending paragraphs (1) through 
        (3) to read as follows:
            ``(1) An article or item of--
                    ``(A) meals ready-to-eat listed in Federal Supply 
                Class 8970 unless the item is produced or manufactured 
                in the United States;
                    ``(B) clothing unless the item is grown, 
                reprocessed, reused, or produced in the United States;
                    ``(C) tents, tarpaulins, or covers unless the item 
                is grown, reprocessed, reused, or produced in the 
                United States;
                    ``(D) cotton and other natural fiber products, 
                woven silk or woven silk blends, spun silk yarn for 
                cartridge cloth, synthetic fabric or coated synthetic 
                fabric (including all textile fibers and yarns that are 
                for use in such fabrics), canvas products, or wool 
                (whether in the form of fiber or yarn or contained in 
                fabrics, materials, or manufactured articles) unless 
                the item is grown, reprocessed, reused, or produced in 
                the United States; or
                    ``(E) any item of individual equipment manufactured 
                from or containing such fibers, yarns, fabrics, or 
                materials unless the item is grown, reprocessed, 
                reused, or produced in the United States;
            ``(2) Equipment of the following Federal supply 
        classifications that contain a specialty metal unless the 
        specialty metal used to produce or manufacture the item, or an 
        equivalent amount that is acquired by the contractor or a 
        subcontractor, was smelted in the United States:
                    ``(A) Weapons listed in Federal Supply Group 10.
                    ``(B) Nuclear ordnance listed in Federal Supply 
                Group 11.
                    ``(C) Fire control equipment listed in Federal 
                Supply Group 12.
                    ``(D) Ammunition and explosives listed in Federal 
                Supply Group 13.
                    ``(E) Guided missiles listed in Federal Supply 
                Group 14.
                    ``(F) Aircraft and related components, accessories, 
                and equipment listed in Federal Supply Groups 15, 16, 
                and 17.
                    ``(G) Space vehicles listed in Federal Supply Group 
                18.
                    ``(H) Ships, small craft, pontoons, and floating 
                docks listed in Federal Supply Group 19.
                    ``(I) Ship and marine equipment listed in Federal 
                Supply Group 20.
                    ``(J) Passenger motor vehicles listed in Federal 
                Supply Class 2310.
                    ``(K) Tracked combat vehicles listed in Federal 
                Supply Class 2350.
                    ``(L) Engines, turbines, and components listed in 
                Federal Supply Group 28.
        For the purposes of this paragraph, `specialty metal' means:
                    ``(A) steel--
                            ``(i) where the maximum alloy content 
                        exceeds one or more of the following limits: 
                        manganese, 1.65 percent; silicon, 0.60 percent; 
                        or copper, 0.60 percent; or
                            ``(ii) that contains more than 0.25 percent 
                        of any of the following elements: aluminum, 
                        chromium, cobalt, columbium, molybdenum, 
                        nickel, titanium, tungsten, or vanadium;
                    ``(B) metal alloys consisting of nickel, iron-
                nickel, and cobalt base alloys containing a total of 
                other alloying metals (except iron) in excess of 10 
                percent;
                    ``(C) titanium and titanium alloys; or
                    ``(D) zirconium and zirconium base alloys; and
            ``(3) Hand tools listed in Federal Supply Group 51 and 
        measuring tools listed in Federal Supply Group 52 unless the 
        item is produced or manufactured in the United States.'';
            (3) in subsection (c)--
                    (A) by striking ``Subsection (a)'' and inserting 
                ``This section''; and
                    (B) by striking ``(1) or specialty metals 
                (including stainless steel flatware)'';
            (4) in subsection (d)--
                    (A) in the catchline for such subsection, by 
                striking ``Outside the United States'' and inserting 
                ``In Exigent Circumstances'';
                    (B) by striking ``Subsection (a) does not apply'' 
                and inserting ``This section does not apply'';
                    (C) by revising paragraph (1) to read as follows:
            ``(1) Procurements of items listed in subsections 
        (b)(1)(A), (b)(2), and (b)(3) in support of contingency 
        operations as defined in section 101(a)(13) of this title, and 
        procurements outside the United States of items listed in 
        subsections (b)(1)(B) through (b)(1)(E) in support of combat 
        operations.''; and
                    (D) by revising paragraph (3) to read as follows:
            ``(3) Procurements of items listed in subsections 
        (b)(1)(A), (b)(2), and (b)(3) of unusual and compelling urgency 
        under the authority of section 2304(c)(2) of this title, and 
        emergency procurements by an establishment located outside the 
        United States of items listed in subsections (b)(1)(B) through 
        (b)(1)(E) for the personnel attached to such establishment.'';
            (5) by revising subsection (e) to read as follows:
    ``(e) Exception for Specialty Metals and Chemical Warfare 
Protective Clothing.--(1) This section does not apply to the 
procurement of end items or components of equipment listed in 
subsection (b)(2) if the specialty metal used to produce or manufacture 
the item, or an equivalent amount that is acquired by the contractor or 
a subcontractor, was smelted in a foreign country that has a memorandum 
of understanding providing for reciprocal procurement of defense items 
that is entered into with the Department of Defense in accordance with 
section 2531 of this title.
    ``(2) This section does not apply to the procurement of chemical 
warfare protective clothing produced outside the United States if--
            ``(A) such procurement is necessary--
                    ``(i) to comply with agreements with foreign 
                governments requiring the United States to purchase 
                supplies from foreign sources for the purposes of 
                offsetting sales made by the United States Government 
                or United States firms under approved programs serving 
                defense requirements; or
                    ``(ii) in furtherance of agreements with foreign 
                governments in which both such governments agree to 
                remove barriers to purchases of supplies produced in 
                the other country or services performed by sources of 
                the other country; and
            ``(B) any such agreement with a foreign government 
        complies, where applicable, with the requirements of section 36 
        of the Arms Export Control Act (22 U.S.C. 2776) and with 
        section 2457 of this title.'';
            (6) in subsection (f), by striking ``Subsection (a) does 
        not preclude'' and inserting ``This section does not 
        preclude'';
            (7) in subsection (g), by striking ``Subsection (a) does 
        not apply'' and inserting ``This section does not apply'';
            (8) in subsection (h), by striking ``Subsection (a) does 
        not apply'' and inserting ``This section does not apply''; and
            (9) in subsection (i)--
                    (A) by striking ``This section'' and inserting 
                ``(1) Except as provided in paragraph (2), this 
                section''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) This section does not apply to commercial items, or 
        components thereof, that are listed in sections (b)(1)(A), 
        (b)(2), and (b)(3), except if the end item is specialty 
        metal.''.

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

SEC. 811. EXTEND USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE 
              CYCLE COST REDUCTION INITIATIVES.

    (a) Title 10 Amendments.--Section 2216 of title 10, United States 
Code, is amended--
            (1) by striking the catchline in subsection (c);
            (2) by redesignating subsection (c) as paragraph (b)(5);
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Appropriations for Life Cycle Cost Reduction.--(1) Funds are 
authorized to be appropriated for fiscal years 2004-2006 in the amount 
of $25,000,000 annually to the Defense Modernization Account for the 
purpose of providing start-up funds for projects undertaken by a 
military department, Defense Agency, or other element of the Department 
of Defense to reduce the life cycle cost of new or existing systems in 
accordance with criteria established by the Secretary of Defense.
    ``(2) A military department, Defense Agency, or other element of 
the Department of Defense that receives funds appropriated pursuant to 
paragraph (1) shall, upon achieving savings from such a project, 
reimburse the Account for the funds previously received. Funds 
transferred back to the Account pursuant to this paragraph shall be 
available for funding new projects under paragraph (1).'';
            (4) in subsection (d), by striking ``Authorized Use of 
        Funds.--Funds available from the Defense Modernization Account 
        pursuant to subsection (f) or (g) may be used for the following 
        purposes:'' and inserting ``Authorized Use of Transferred 
        Funds.--Funds transferred to the Defense Modernization Account 
        pursuant to subsection (b) may be used for the following 
        purposes:''; and
            (5) in paragraph (f)(1), by striking the sentence beginning 
        with ``The Secretary'' and inserting ``The Secretary of Defense 
        may transfer funds in the Defense Modernization Account to 
        appropriations available to the Department of Defense for the 
        purposes set forth in subsections (c) and (d).''.
    (b) Extension of Authority.--Subsection (c) of section 912 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 410) is amended to read as follows:
    ``(c) Expiration of Authority and Account.--(1) The authority under 
section 2216(b) of title 10, United States Code, to transfer funds into 
the Defense Modernization Account and the authorization under section 
2216(c) of such title to appropriate funds to the Defense Modernization 
Account shall terminate on September 30, 2006.; and
    ``(2) The Defense Modernization Account shall be closed on 
September 30, 2011, and any remaining balance in the Account shall be 
cancelled and thereafter shall not be available for any purpose.''.

SEC. 812. EXTENSION AND CLARIFICATION OF AUTHORITY TO CARRY OUT -
              CERTAIN PROTOTYPE PROJECTS.

    Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1547) is amended in subsection 
(g), by striking ``September 30, 2004'' and inserting ``September 30, 
2008''.

SEC. 813. OTHER TRANSACTION AUTHORITY FOR MODERNIZING LEGACY SYSTEMS.

    Section 845(a) of National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160; 107 Stat. 1547) is amended by inserting 
``, or are improvements to weapons or weapon systems currently fielded 
by the Department of Defense'' after ``Department of Defense''.

SEC. 814. AUTHORITY FOR CERTAIN DOD COMPONENTS TO AWARD PERSONAL 
              SERVICES CONTRACTS.

    (a) Notwithstanding any other provision of law, sums made available 
by appropriation or otherwise to a covered component, as defined in 
subsection (b), may be expended for personal services contracts 
necessary to carry out the covered component's missions, including 
personal services without regard to limitations on types of persons to 
be employed.
    (b) The term ``covered component'' includes--
            (1) any Department of Defense component that is an element 
        of the Intelligence Community, as defined in Section 3(4) of 
        the National Security Act of 1947 (50 U.S.C. 401a);
            (2) any element of the Office of the Secretary of Defense 
        designated by the Secretary of Defense for purposes of this 
        section; and
            (3) the United States Special Operations Command when 
        engaged in special operations activities delineated in 10 
        U.S.C. 167(j)(1)-(4).

SEC. 815. ELIMINATION OF SUBCONTRACT NOTIFICATION REQUIREMENTS.

    Section 2306(e) of title 10, United States Code, is amended to read 
as follows:
    ``(e) Except for contracts with a contractor that maintains a 
purchasing system approved by the cognizant contracting officer, each 
cost contract and each cost-plus-a-fixed-fee contract shall require the 
contractor to provide notice to the agency, prior to the award under a 
prime contract, of--
            ``(1) a cost-plus-fixed-a-fee subcontract; or
            ``(2) a fixed-price subcontract or purchase order involving 
        more than the greater of--
                    ``(A) the simplified acquisition threshold; or
                    ``(B) five percent of the estimated cost of the 
                prime contract.''.

SEC. 816. EXCEPTION FOR REPLACEMENT BALL BEARINGS AND ROLLER BEARINGS 
              TO BE USED IN A COMPONENT OF NON-DOMESTIC ORIGIN.

    Section 2534(a)(5) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``, other than 
ball bearings and roller bearings to be used in an end product or a 
component of non-domestic origin''.

SEC. 817. INDUSTRY ASSIGNMENT PROGRAM.

    (a) In General.--Chapter 81 of title 10, United States Code, is 
amended by inserting after section 1599c the following new section:
``Sec. 1599d. Government industry assignment program
    ``(a) Authority.--The Secretary of Defense may establish a pilot 
program for the temporary assignment of non-governmental personnel who 
are employed in the private sector to the Department of Defense. The 
Secretary may promulgate regulations for such purpose.
    ``(b) Purpose.--This program is designed to improve the 
Department's acquisition related processes and procedures. It would 
accomplish this through an infusion of new and modern ideas by the 
temporary assignment in the Department of non-governmental personnel 
who are employed by private industry. The private sector employees 
would be compensated by their private employer yet would be subject 
generally to Governmental requirements that are in force for Federal 
employees. The Department would provide the private employer the 
benefit of a career enhancement for its private sector employees who 
participate in the program.
    ``(c) Limitations.--(1) This program is limited to those 
individuals in private sector positions whose duties, as determined by 
the Secretary, are comparable to defense acquisition positions.
    ``(2) Each such assignment shall be based on a written agreement 
between the Department of Defense, the private sector employer, and the 
employee concerned, which shall include nondisclosure provisions 
addressing the use and disclosure of classified and unclassified 
information in the possession or under the control of the Department of 
Defense that has not been released to the public and which shall also 
include the Federal laws and penalties applicable to the disclosure of 
classified information, including, but not limited to section 798 of 
title 18, United States Code.
    ``(3) During the period of an assignment made pursuant to this 
section, a private sector employee--
            ``(A) is not entitled to pay from the Department of 
        Defense, except, as determined by the Secretary on a case by 
        case basis, to the extent that the pay received from the 
        private sector employer is less than the appropriate rate of 
        pay which the duties would warrant under the applicable pay 
        provisions of this title, title 5, United States Code, or other 
        applicable authority;
            ``(B) is deemed an employee of the Department of Defense, 
        subject to section 7353 of title 5, United States Code; 
        sections 201, 203, 205, 207, 208, 209, 219, 602, 603, 606, 607, 
        610, 643, 654, 1905, 1913, and other provisions of title 18, 
        United States Code, not specifically exempted herein; sections 
        1343, 1344, and 1349(b) of title 31, United States Code; the 
        Federal Tort Claims Act (28 U.S.C. 2671 et seq.); any other 
        Federal tort liability statute; section 27 of the Office of 
        Federal Procurement Policy Act, as amended (41 U.S.C. 423) and 
        regulations implementing that Act; the Ethics in Government Act 
        of 1978 (5 U.S.C. App.) and regulations implementing that Act; 
        and any other provisions of Federal law not specifically 
        exempted herein. Notwithstanding section 209 of title 18, 
        United States Code, the private sector employer may pay, 
        contribute to, or supplement the salary or other benefits of 
        such private sector employee (who may accept such pay, 
        contributions, and benefits), subject to the terms of the 
        written private sector employee assignment agreement required 
        in paragraph (c)(2) above;
            ``(C) is also deemed an employee of his or her private 
        sector employer for purposes of section 208 of title 18, United 
        States Code;
            ``(D) is subject to such regulations that the Secretary may 
        prescribe, which shall incorporate by reference executive 
        branch standards of ethical conduct and any authorized agency 
        supplemental standards of conduct and which shall include as a 
        minimum--
                    ``(i) limitations on the number of participants (no 
                more than 400);
                    ``(ii) length of temporary assignments (up to two 
                years);
                    ``(iii) protection of government information;
                    ``(iv) procedures for avoidance of conflicts of 
                interest, including selection of program priorities and 
                funding decisions that may involve the assignee's 
                employer or its competitors, and avoidance of the 
                appearance of conflicts of interest; and
                    ``(v) exclusions from the performance of inherently 
                governmental functions, such as policy-making and 
                supervision of Government employees; and
                    ``(vi) methodology and criteria for evaluation of 
                the pilot; and
            ``(E) is not deemed to be an employee for purposes of 
        Federal employee pay and benefits under title 5, United States 
        Code, except as provided for under this subsection.
    ``(d) Workers Compensation Coverage.--
            ``(1) A private sector employee assigned to the Department 
        of Defense pursuant to this section shall not be deemed an 
        employee of the United States for the purposes of Chapter 81 of 
        title 5, United States Code, (relating to compensation for 
        injury).
            ``(2) Notwithstanding any other law, the United States, any 
        instrumentality of the United States; or an employee, agent, or 
        assign of the United States shall not be liable to:
                    ``(A) a private sector employee assigned to the 
                Department of Defense pursuant to this section;
                    ``(B) such employee's legal representative, spouse, 
                dependents, survivors and next of kin; and
                    ``(C) any other person, including any third party 
                as to whom such employee, or his or her legal 
                representative, spouse, dependents, survivors, or next 
                of kin, has a cause of action arising out of an injury 
                or death sustained in the performance of duty pursuant 
                to an assignment under this section, otherwise entitled 
                to recover damages from the United States, any 
                instrumentality of the United States, or any employee, 
                agent, or assign of the United States--
        with respect to any injury or death suffered by a private 
        sector employee sustained in the performance of duty pursuant 
        to an assignment under this section.
    ``(e) Definitions.--In this section:
            ``(1) The term `private sector employer' means a 
        corporation, partnership, sole proprietorship, or other entity 
        operated on a for-profit basis. It may, at the option of the 
        Secretary, also include ``other organizations'' as defined in 
        section 3371 of title 5.
            ``(2) The term `acquisition position' has the same meaning 
        as in section 1721(b) of this title.
            ``(3) The term `assignment' means an assignment under an 
        arrangement made pursuant to the section under which a private 
        sector employee is assigned to the Department of Defense 
by being appointed without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive service or being 
deemed to be detailed to the Department of Defense.
            ``(4) The term `government employee' means an `employee' as 
        defined in section 2105 of title 5.
    ``(f) Expiration.--The Secretary may not assign non-governmental 
personnel who are employed in the private sector to the Department of 
Defense under the provisions of this section after the last day of the 
fifth year beginning with the effective date of this Act.''.-
    (b) Reporting Requirement.--During the fourth year after the 
enactment of this Act, the Secretary of Defense, with input from the 
Inspector General of the Department of Defense, and in consultation 
with the Director of the Office of Personnel Management, shall evaluate 
the program authorized under this section and prepare a report for the 
President that includes an analysis of the use of the authorities of 
this section, including conflict of interest standards, and the costs 
and benefits of assignments made pursuant to this section.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter 81 is amended by inserting after the item relating to 
section 2331 the following new item:

 ``1599d. Government industry assignment program.''.

SEC. 818. REAUTHORIZATION OF DEFENSE PRODUCTION ACT.

    (a) In General.--Subsection (a) of Section 717 of the Defense 
Production Act of 1950 (50 U.S.C. App. 2166(a)) is amended in the first 
sentence by striking ``Title I (except section 104), title III, and 
title VII (except sections 708 and 721), and all authority conferred 
thereunder, shall terminate at the close of September 30, 2003'' and 
insert ``Title I (except section 104), title III, and title VII (except 
sections 707, 708, and 721), and all authority conferred thereunder, 
shall terminate at the close of September 30, 2008.''; and
    (b) Authorization of Appropriations.--Section 711(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2161(b)) is amended by striking 
``1996 through 2003'' and inserting ``2004 through 2008''.

       Subtitle C--Acquisition-Related Reports and Other Matters

SEC. 821. LIMITED ACCESS TO PROTECTED INFORMATION BY ADMINISTRATIVE 
              SUPPORT CONTRACTORS.

    (a) The Office of Federal Procurement Policy Act (41 U.S.C. 403 et 
seq.) is amended by adding at the end the following new section:
``Sec. Sec. 40. Limited access to protected information by 
              administrative support contractors
    ``(a) With respect to a contractor who performs an administrative 
support function, the head of an executive agency may, in the 
discretion of the executive agency head, authorize access to, and use 
by, that contractor of protected information to perform such function 
for such executive agency, unless--
            ``(1) such access or use is prohibited by a law or 
        Executive Order other than an information protection statute; 
        or
            ``(2) the contractor has no need to know or use the 
        information to perform duties under a contract with the United 
        States or an executive agency.
    ``(b) Any contractor who has exercised access to or used protected 
information to which access was authorized pursuant to subsection (a) 
shall be subject to--
            ``(1) any provision of a contract with respect to which 
        such access was authorized regarding use, reproduction, 
        modification, performance, display, release or disclosure of 
        such protected information;
            ``(2) any Federal rule or regulation regarding use, 
        reproduction, modification, performance, display, release or 
        disclosure of such protected information that applies to an 
        employee of the United States with respect to such protected 
        information, unless the authority issuing the rule or 
        regulation determines in writing that, in the public interest, 
        the rule or regulation shall not apply to such contractor;-
            ``(3) any information protection statute that applies with 
        respect to such protected information to the same extent 
        (including any civil and criminal penalties for violation of 
        such statute) as an officer or employee of the United States; 
        and
            ``(4) any other applicable law.
    ``(c) Nothing in this section shall be construed to impair or 
otherwise affect--
            ``(1) the rights of any person with respect to patents, 
        copyrights or other intellectual property of that person under 
        Federal law; or
            ``(2) the rights of any person vested prior to the date of 
        enactment of this section under section 21 of this Act or 
        section 2320 of title 10, United States Code.
    ``(d) Definitions.--In this section--
            ``(1) The term `contractor' means an individual who is--
                    ``(A) a party to a contract with the United States 
                or an executive agency thereof;
                    ``(B) employed by a party to a contract with the 
                United States or an --executive agency thereof; or
                    ``(C) a subcontractor at any tier (or employee of a 
                subcontractor at any tier) of a contractor described in 
                paragraph (A) or (B).
            ``(2) The term `administrative support function' means any 
        of the following--
                    ``(A) secretarial or clerical support;
                    ``(B) auditing or audit support;
                    ``(C) provisioning or logistics support;
                    ``(D) data entry;
                    ``(E) document reproduction, scanning, imaging, or 
                destruction;
                    ``(F) operation, management, or maintenance of 
                paper-based or electronic mail rooms, file rooms, or 
                libraries;
                    ``(G) installation, operation, management, or 
                maintenance of computer systems, electronic networks, 
                or internet or intranet systems;
                    ``(H) security services, including facilities or 
                information security; and
                    ``(I) supervision or legal services in connection 
                with functions listed in paragraphs (A) through (H) 
                above.
            ``(3) The term `information protection statute' means any 
        of the following laws--
                    ``(A) Section 21 of this Act.
                    ``(B) Section 2320 of title 10, United States Code.
                    ``(C) Section 1905 of title 18, United States Code.
            ``(4) The term `protected information' means information 
        for which an information protection statute prohibits 
        disclosure to a contractor.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end the following new item:

``Sec. 40. Limited access to protected information by administrative 
                            support contractors.''.

SEC. 822. ELIMINATION OF THE REQUIREMENT TO FURNISH WRITTEN ASSURANCES 
              OF TECHNICAL DATA CONFORMITY.

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

SEC. 823. AUTHORIZATION TO TAKE ACTIONS TO CORRECT THE INDUSTRIAL 
              RESOURCE SHORTFALL FOR RADIATION-HARDENED ELECTRONICS.

    Notwithstanding the limitation in section 303(a)(6)(C) of the 
Defense Production Act of 1950 (50 U.S.C. App. 2093(a)(6)(C)), the 
President is authorized to take action under section 303 of the Defense 
Production Act of 1950 to correct the industrial resource shortfall for 
radiation-hardened electronics, provided that such Presidential actions 
does not cause the aggregate outstanding amount of all such actions to 
exceed $200,000,000.

SEC. 824. CONVERSIONS OF COMMERCIAL ACTIVITIES.

    (a) Changes to Elements of Analysis.--Paragraph (3)(A) of section 
2461(b) of title 10, United States Code, is amended--
            (1) by striking ``of the cost'';
            (2) by striking ``savings'' and inserting ``the best 
        value'';
            (3) by redesignating subsection (iii) as subsection (iv); 
        and
            (4) by inserting after clause (ii) the following new clause 
        (iii):
                        ``(iii) Benefits in addition to price that 
                        warrant performance of the function by a source 
                        at a cost higher than that of performance by 
                        Department of Defense civilian employees.''.
    (b) Contracting if Best Value.--Section 2462(a) of such title is 
amended by striking ``such a source can provide such supply or service 
to the Department at a cost that is lower (after including any cost 
differential required by law, Executive order, or regulation) than the 
cost at which the Department can provide the same supply or service'' 
and inserting ``performance by that source represents the best value to 
the Government, determined in accordance with the competition 
requirements of OMB Circular A-76.''.

SEC. 825. MAKE PERMANENT THE AUTHORITY TO ENTER INTO CERTAIN PERSONAL 
              SERVICES CONTRACTS.

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

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Repeal of rotating chairman for the Economic Adjustment 
                            Committee.
Sec. 902. Alternative authority for acquisition and improvement of 
                            military housing.
                      Subtitle B--Space Activities

Sec. 911. Authorize provision of space surveillance network services to 
                            non-United States government entities.
Sec. 912. Commercial space competitiveness and contributions of funds 
                            and services from non-federal agencies.
                          Subtitle C--Reports

Sec. 921. Repeal of various reports required of the Department of 
                            Defense.
                       Subtitle D--Other Matters

Sec. 931. Combatant commands initiatives fund.
Sec. 932. Consolidating the financial management of facilities in the 
                            national capital region and designated 
                            alternate sites.
Sec. 933. Protection of operational files of the National Security 
                            Agency.

   Subtitle A--Duties and Functions of Department of Defense Officers

SEC. 901. REPEAL OF ROTATING CHAIRMAN FOR THE ECONOMIC ADJUSTMENT 
              COMMITTEE.

    Section 4004(b) of the Defense Economic Adjustment, 
Diversification, Conversion, and Stabilization Act of 1990 (Public Law 
101-510; 104 Stat. 1848), as amended to read as follows:
    ``(b) Chairman.--The Secretary of Defense shall be the chairman of 
the Economic Adjustment Committee.''.

SEC. 902. ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
              MILITARY HOUSING.

    (a) Unit Size and Type.--Section 2880(b)(2) of title 10, United 
States Code, is amended by striking ``unless the unit is located on a 
military installation''; and
    (b) Department of Defense Housing Fund.--(1) Section 2883 of title 
10, United States Code is amended--
            (A) by striking subsections (a), (b), and (c);
            (B) by inserting the following new subsections (a) and (b):
    ``(a) Establishment.--There is hereby established on the books of 
the Treasury the Department of Defense Housing Improvement Fund.
    ``(b) Credits to Funds.--There shall be credited to the Department 
of Defense Housing Improvement Fund the following:
            ``(1) Amounts authorized for and appropriated to that Fund.
            ``(2) Subject to subsection (e), any amounts that the 
        Secretary of Defense transfers, in such amounts as provided in 
        appropriation Acts to that Fund from amounts authorized and 
        appropriated to the Department of Defense for the acquisition 
        or construction of military family housing or military 
        unaccompanied housing.
            ``(3) Proceeds from the conveyance or lease of property or 
        facilities under section 2878 of this title for the purpose of 
        carrying out activities under this subchapter with respect to 
        military family housing or military unaccompanied housing.
            ``(4) Income derived from any activities under this 
        subchapter with respect to military family housing or military 
        unaccompanied housing, including income and gains realized from 
        investments under section 2875 of this title and any return of 
        capital invested as part of such investments.
            ``(5) Any amounts that the Secretary of the Navy transfers 
        to that Fund pursuant to section 2814(i)(3) of this title, 
        subject to the restrictions on the use of the transferred 
        amounts specified in that section.'';
            (C) by redesignating subsections (d), (e), (f), and (g) as 
        (c), (d), (e), and (f) respectively;
            (D) in the newly redesignated subsection (c)--
                    (i) by striking ``Family'' in paragraph (1);
                    (ii) by striking paragraph (2); and
                    (iii) by redesignating paragraph (3) as (2);
            (E) in the newly redesignated subsection (e) by striking 
        ``a Fund under paragraph (1)(B) or (2)(B) of subsection (c)'' 
        and inserting ``the Fund under paragraph (2) of subsection 
        (b)'';
            (F) in subsection (f) as relettered by subparagraph (C) of 
        this paragraph--
                    (i) by striking ``$850,000,000'' in paragraph (1) 
                and inserting ---``$1,700,000,000''; and
                    (ii) by striking ``$150,000,000'' in paragraph (2) 
                and inserting ---``$300,000,000''.
    (2) Section 2871(6) of title 10, United States Code, is amended by 
striking ``Family Housing Improvement Fund or the Department of Defense 
Military  Unaccompanied Housing Improvement Fund'' and inserting 
``Housing Improvement Fund''.
    (3) Section 2875(e) of title 10, United States Code, is amended by 
striking ``Family Housing Improvement Fund or the Department of Defense 
Military Unaccompanied Housing Improvement Fund'' and inserting 
``Housing Improvement Fund''.

                      Subtitle B--Space Activities

SEC. 911. AUTHORIZE PROVISION OF SPACE SURVEILLANCE NETWORK SERVICES TO 
              NON-UNITED STATES GOVERNMENTAL ENTITIES.

    (a) In General.--Chapter 136 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2283. Space surveillance network
    ``(a) Satellite Tracking Services.--To support the establishment of 
an experimental pilot program, The Secretary of Defense is authorized 
to establish procedures under which non-United States Federal 
governmental entities, including but not limited to U.S. and non-U.S. 
commercial entities, state and local government entities and foreign 
governments, may purchase, directly or through a contractor, satellite 
tracking services from assets owned or controlled by the Department of 
Defense. The Secretary may include in such transactions the provision 
and analysis of satellite data if he determines it is in the national 
security interests of the United States. Any proposed sale to a foreign 
government or foreign commercial entity shall be subject to the 
concurrence of the Secretary of State to ensure its consistency with 
United States foreign policy interests. The pilot program shall be 
conducted during a three-year period beginning not later than 180 days 
after the date of the enactment of this Act.
    ``(b) Reimbursement of Costs.--In the case of any purchase made by 
a non-United States Federal governmental entity under the procedures 
established under subsection (a), the Secretary of Defense may require 
the non-United States Federal governmental entity to reimburse the 
Department of Defense for the costs to the Department of such purchase.
    ``(c) Deposit of Funds Received.--Funds received pursuant to the 
sales authorized in subsection (a) shall be credited to accounts of the 
Department of Defense that are current when the proceeds are received 
and that are available for the same purposes as the accounts originally 
charged to perform the services. Funds so credited are to merge with 
and become available for obligation for the same period as the accounts 
to which they are credited.
    ``(d) Non-Transferability Agreement.--The Department will require 
all non-United States Federal governmental entities to execute a 
binding commitment not to transfer any data or technical information, 
including the analysis of the tracking data, to any other entity 
without the Department's expressed approval. In the case of foreign 
governments and foreign commercial entities, the Department's approval 
will be subject to the concurrence of the Department of State.
    ``(e) Prohibition Concerning Intelligence Assets or Data.--Nothing 
in this section shall be deemed to authorize the provision of services 
or information concerning, or derived from, United States intelligence 
assets or data.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2283. Space surveillance network.''.

SEC. 912. COMMERCIAL SPACE COMPETITIVENESS AND CONTRIBUTIONS OF FUNDS 
              AND SERVICES FROM NON-FEDERAL AGENCIES.

    (a) Non-Federal Investments.--Section 501 of the National 
Aeronautics and Space Administration Authorization Act for Fiscal Year 
1993 (Public Law 102-588; 106 Stat. 5122; 15 U.S.C. 5801), is amended 
by adding at the end the following new paragraph:
    ``(11) The provision of non-Federal sources of investment to 
finance improvements and additions to U.S. space launch infrastructure 
can strengthen and expand or otherwise enhance the United States 
commercial space transportation industry.''.
    (b) Definition of Non-Federal.--Section 502 of such Act (15 U.S.C. 
5802), is amended by adding at the end the following new paragraph:
    ``(15) `non-Federal' means private sector entities, state 
government entities and local government entities.''.
    (c) Non-Federal Investment in Range Infrastructure.--Title V of 
such Act (Public Law 102-588; 106 Stat. 5129; 15 U.S.C. 5808), is 
amended by adding at the end the following new section:

``SEC. 511. NON-FEDERAL INVESTMENT IN RANGE INFRASTRUCTURE.

    ``(a) Acceptance of Funds.--The head of an executive agency 
providing launch property or launch services pursuant to chapter 701 of 
title 49 may accept funds or other property or assistance from non-
Federal entities for improvements and additions or modernization of 
space launch infrastructure or services, if the improvements and 
additions or modernization contribute to the strengthening and 
expansion of or will otherwise enhance the United States commercial 
space transportation industry. Notwithstanding section 1342 of title 
31, the head of an agency may also accept, subject to regulations 
issued by the head of an agency, voluntary service for the United 
States if the service--
            ``(1) is to be performed by a non-Federal entity as part of 
        an agency program established for the purpose of providing 
        improvements and additions or modernization of space launch 
        infrastructure;
            ``(2) is to be uncompensated; and
            ``(3) is not to be used to displace any employee.
    ``(b) Use of Funds.--The head of an executive agency may agree to 
receive funds or launch or reentry property from non-Federal entities 
and may agree to use those funds or property to develop, purchase, 
sustain, improve, and/or integrate specified launch or reentry 
facilities or property in a manner that will enhance the use of such 
facilities for commercial launch or reentry operations.
    ``(c) Agreement Terms and Conditions.--The head of the executive 
agency may include the following terms in the agreements described in 
subsection (b):
            ``(1) The amount and terms of any payment the non-Federal 
        entity shall provide to the executive agency, and description 
        of any property or services;
            ``(2) An allocation of responsibility for future operation, 
        maintenance, sustainment, integration, and development of any 
        property; and
            ``(3) Such other terms and conditions as may be agreed 
        between the head of the executive agency and the non-Federal 
        entity.
    ``(d) Collection by the Executive Agency.-- The head of the 
executive agency may accept payments under this section pursuant to the 
terms and conditions of any agreement as described under this section. 
Amounts received under this subsection shall be credited to 
appropriations of the agency available for these purposes and shall be 
available for obligation until expended.''.
    (d) Title 49 Definitions.--Section 70102 of title 49, United States 
Code, is amended by adding at the end the following new subsections:
            ``(18) `direct costs' means the actual costs that--
                    ``(A) can be associated unambiguously with a 
                commercial launch or reentry effort; and
                    ``(B) the Government would not incur if there were 
                no commercial launch or reentry effort.
            ``(19) `non-Federal' means private sector entities, State 
        governmental entities and local governmental entities.''.
    (e) Provision of Launch and Reentry Services.--Section 70103 of 
such title is amended by adding the following sentence at the end of 
subsection (c): ``To assist the Secretary in carrying out this chapter, 
Federal agencies, including the National Aeronautics and Space 
Administration and the Department of Defense, shall provide launch and 
reentry services and launch and reentry property and other support to 
commercial space launch and reentry activities consistent with public 
health and safety, national security, international treaty obligations, 
and the missions of those Federal agencies.''.
    (f) Change to General Requirements and Considerations.--Section 
70111 of such title is amended to read as follows:
    ``(a) General Requirements and Considerations.--(1) The Secretary 
of Transportation shall facilitate and encourage the acquisition by the 
private sector and State governments of United States Government launch 
and reentry property or launch and reentry services, including 
utilities, on a reimbursable basis when--
            ``(A) the property or services will be used to support 
        United States and local commercial space activities;
            ``(B) such use can be supported by existing or planned 
        Federal resources;
            ``(C) such use is not inconsistent with Federal activities;
            ``(D) equivalent commercial property or services are not 
        available on reasonable terms; and
            ``(E) such use is consistent with public health and safety, 
        safety of property, national security, foreign policy 
        interests, and international treaty obligations. In carrying 
        out this paragraph, the head of the agency providing the 
        property or services shall consult with other appropriate 
        Federal officials.
    ``(2) Federal agencies, including the National Aeronautics and 
Space Administration and the Department of Defense, may allow non-
Federal entities to acquire or use such launch or reentry property or 
launch or reentry services in accordance with paragraph (1).
    ``(b) Price.--(1) In consultation with the Secretary, the head of 
the executive agency providing the property or service under subsection 
(a) shall establish the price for the property or service. The price 
for--
            ``(A) acquiring launch property by sale or transaction 
        instead of sale is the fair market value;
            ``(B) acquiring launch property (except by sale or 
        transaction instead of sale) is an amount equal to the direct 
        costs, including specific wear and tear and property damage, 
        that the Government incurred because of acquisition of the 
        property; and
            ``(C) launch services or reentry services is an amount 
        equal to the direct costs, including the basic pay of 
        Government civilian and contractor personnel, that the 
        Government incurred because of acquisition of the services.
    ``(2) The Secretary shall ensure the establishment of uniform 
guidelines for, and consistent implementation of, this section by all 
Federal agencies.
    ``(c) Non-Federal Entity Access.--Subject to satisfying the 
requirements in subsection (a) and consistent with the needs of 
national defense, non-Federal entities shall be granted access to 
United States Government launch and reentry property, launch and 
reentry services, including utilities, and launch and reentry 
scheduling opportunities.
    ``(d) Collection by Secretary.--The Secretary may collect a payment 
under this section with the consent of the head of the executive agency 
establishing the price. Amounts collected under this subsection shall 
be credited to the appropriation from which the cost of providing the 
property or service was paid, and shall be available for obligation for 
the same period and other purposes as the appropriation in which 
credited.
    ``(e) Collection by Other Governmental Heads.--The head of a 
department, agency, or instrumentality of the Government may collect a 
payment for an activity involved in producing a launch vehicle or 
reentry vehicle, or the payload of either, for launch or reentry if the 
activity was agreed to by the owner or manufacturer of the launch 
vehicle, reentry vehicle, or payload. Amounts collected under this 
subsection shall be credited to the appropriation from which the cost 
of providing the property or services was paid, and shall be available 
for obligation for the same period and purposes as the appropriation in 
which credited.''.

                          Subtitle C--Reports

SEC. 921. REPEAL OF VARIOUS REPORTS REQUIRED OF THE DEPARTMENT OF 
              DEFENSE.

    (a) Provisions of Title 10.--Title 10, United States Code, is 
amended--
            (1) in section 113--
                    (A) by striking subsection (j);
                    (B) by striking subsection (m); and
                    (C) by redesignating subsections (k) and (l) as (j) 
                and (k), respectively;
            (2) in section 116--
                    (A) by repealing this entire section in chapter 2; 
                and
                    (B) by amending the table of sections at the 
                beginning of such chapter 2 by striking the item 
                relating to section 116;
            (3) in section 117--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (4) in section 127, by striking subsection (d);
            (5) in section 127a--
                    (A) by striking subparagraph (a)(3);
                    (B) by redesignating subparagraph (a)(4) as 
                subparagraph (a)(3);
                    (C) by striking subsection (d); and
                    (D) by redesignating subsections (e) through (i) as 
                subsections (d) through (h), respectively;
            (6) in section 129, by striking subsection (f);
            (7) in section 153, by striking subsection (d);
            (8) in section 184--
                    (A) by amending subsection (a) to read as follows:
    ``(a) Authority To Establish Regional Center for Security 
Studies.--The Secretary of Defense may establish such regional centers 
for security studies as he deems necessary and appropriate.'';
                    (B) by striking subsection (b); and
                    (C) by redesignating subsection (c) as subsection 
                (b);
            (9) in section 226,
                    (A) by repealing this entire section in chapter 9; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 226;
            (10) for section 228--
                    (A) by repealing this entire section in chapter 9; 
                and
                    (B) by amending the table of sections at the 
                beginning of such chapter by striking the item relating 
                to section 228;
            (11) in section 401--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (12) in section 437--
                    (A) by striking subsections (b) and (c); and
                    (B) by redesignating subsection (d) as subsection 
                (b);
            (13) in section 482--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the items relating to section 482;
            (14) in section 483--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 483;
            (15) in section 484--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 484;
            (16) in section 487--
                    (A) by repealing this entire section in chapter 23; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 487;
            (17) in section 520c--
                    (A) by striking subsections (b) and (c);
                    (B) by striking the designator and the catchline in 
                the preceding matter;
                    (C) by amending the section title to read: 
                ``Sec. 520c. Provision of meals and refreshments for 
                recruiting purposes''; and
                    (D) by amending the table of sections at the 
                beginning of chapter 31 by replacing the item relating 
                to section 520c with the following new item:

``520c. Provision of meals and refreshments for recruiting purposes.'';
            (18) in section 664(i)(4)(F)(ii), by striking ``and 
        notifies Congress upon each approval, providing the criteria 
        that led to that approval'';
            (19) in section 983(e)(1), by striking ``and to Congress'';
            (20) in section 986, by striking subsection (e);
            (21) in section 1060--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) through (g) as 
                subsections (d) through (f) respectively;
            (22) in section 1130--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively;
            (23) in section 1557--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (24) in section 1563--
                    (A) by repealing this entire section in chapter 80; 
                and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 1563;
            (25) in section 1597, by striking subsections (c) through 
        (e);
            (26) in section 2010--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) and (d) as 
                subsections (b) and (c), respectively;
            (27) in section 2011, by striking subsection (e);
            (28) in section 2166, by striking subsection (h);
            (29) in section 2208, in subsection (j)(2), by striking 
        ``and notifies Congress regarding the reasons for the waiver'';
            (30) in section 2212--
                    (A) by striking subsections (d) and (e); and
                    (B) by redesignating subsection (f) as subsection 
                (d);
            (31) in section 2214--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsection (d) as subsection 
                (e);
            (32) in section 2216--
                    (A) by striking subsection (i); and
                    (B) by redesignating subsection (j) as subsection 
                (i);
            (33) in section 2222--
                    (A) by repealing this entire section in chapter 
                131; and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 2222;
            (34) in section 2255(b)--
                    (A) by striking paragraph (2); and
                    (B) by striking the designator ``(1)'' after the 
                catchline;
            (35) in section 2281--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (36) in section 2282--
                    (A) by repealing this entire section in chapter 
                136; and
                    (B) by amending the table of sections for such 
                chapter by striking the item relating to section 2282;
            (37) in section 2306b--
                    (A) by striking subsection (i);
                    (B) in subsection (l)--
                            (i) by striking paragraphs (1) and (6); and
                            (ii) by redesignating paragraphs (2) 
                        through (10) of subsection (l) as paragraphs 
                        (1) through (8), respectively; and
                    (C) by redesignating subsections (j) through (l) as 
                subsections (i) through (k), respectively;
            (38) in section 2327(c)(1)--
                    (A) in subparagraph (A), by striking ``after the 
                date on which such head of an agency submits to 
                Congress a report on the contract'' and inserting ``if 
                in the best interests of the government'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B);
            (39) in section 2350a--
                    (A) by striking subsection (f); and
                    (B) in subsection (g), by striking paragraph (3);
            (40) in section 2350b--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e), (f), and (g) 
                as subsections (d), (e), and (f), respectively;
            (41) in section 2350j--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively;
            (42) in section 2367, by striking subsection (c) and (d);
            (43) in section 2374a--
                    (A) by striking subsection (e); and
                    (B) by redesignating subsection (f) as subsection 
                (e);
            (44) in section 2401--
                    (A) in subsection (a), by striking ``only as 
                provided in subsection (b)'' both times such phrase 
                appears in the subsection;
                    (B) by striking subsection (b); and
                    (C) by redesignating subsections (c) through (f) as 
                subsections (b) through (e), respectively;
            (45) in section 2410i, in subsection (c), by striking the 
        last sentence;
            (46) in section 2410m, by striking subsection (c);
            (47) in section 2457--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsections (e) and (f) as 
                subsections (d) and (e), respectively;
            (48) in section 2461a--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (49) in section 2464, by striking paragraph (3) in 
        subsection (b);
            (50) in section 2467, by striking subsection (c);
            (51) in section 2472, by striking subsection (b);
            (52) in section 2493, by striking subsection (g);
            (53) for section 2504--
                    (A) by repealing the entire section in chapter 148; 
                and
                    (B) by amending the section of tables for such 
                chapter by striking all references to section 2504;
            (54) in section 2515, by striking subsection (d);
            (55) in section 2521, by striking subsection (e);
            (56) in section 2536--
                    (A) by striking paragraph (2) in subsection (b), 
                and by striking designator (1) after the catch line;
                    (B) by redesignating subparagraph (A) and (B) as 
                paragraphs (1) and (2), respectively; and
                    (C) by redesignating subparagraph (i) and (ii) as 
                subparagraphs (A) and (B), respectively;
            (57) in section 2537--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b);
            (58) in section 2541d--
                    (A) by striking subsection (b); and
                    (B) by striking the ``(a)'' and the catchline in 
                the remaining matter;
            (59) in section 2561--
                    (A) by striking subsections (c), (d), and (f); and
                    (B) by redesignating subsection (e) as subsection 
                (c);
            (60) in section 2563, by striking ``and notifies Congress 
        regarding the reasons for the waiver'' in subsection (c)(2);
            (61) in section 2631, by striking the last sentence in 
        subsection (b)(3);
            (62) in section 2645--
                    (A) by striking subsection (d);
                    (B) by striking subsection (g); and
                    (C) by redesignating subsections (e), (f), and (h) 
                as subsections (d), (e), and (f), respectively;
            (63) in section 2662--
                    (A) by striking subsection (e);
                    (B) by redesignating subsections (f) and (g) as 
                subsections (e) and (f), respectively; and
                    (C) in subsection (f), as redesignated by 
                subparagraph (B), by striking ``, and the reporting 
                requirement set forth in subsection (e) must not apply 
                with respect to a real property transaction otherwise 
                covered by that subsection,'';
            (64) in section 2667a (c)--
                    (A) by striking paragraph (2); and
                    (B) by striking designator (1) after the catch 
                line;
            (65) in section 2676, in subsection (d), by striking all 
        after ``is approved by the Secretary concerned'' and inserting 
        a period;
            (66) in section 2680, by striking subsection (e);
            (67) in section 2688--
                    (A) by striking subsection (e);
                    (B) by redesignating subsections (f) through (i) as 
                subsections (e) through (h), respectively; and
                    (C) in subsection (f), as redesignated by 
                subparagraph (B), by striking the last sentence;
            (68) in section 2696--
                    (A) by striking subsections (c) and (d); and
                    (B) by redesignating subsection (e) as subsection 
                (c);
            (69) in section 2703(b)(2)--
                    (A) by striking subparagraph (B);
                    (B) by striking the designator ``(A)'' which 
                precedes ``determines that permanent relocation--'';
                    (C) by striking the dash that follows ``such 
                paragraph unless the Secretary'' in paragraph (2);
                    (D) by realigning the previously designated 
                subparagraph (A) to follow at the end of paragraph (2); 
                and
                    (E) by redesignating clauses (i) through (iii) as 
                subparagraphs (A), through (C), respectively;
            (70) in section 2805--
                    (A) in subsection (b), by striking paragraph (2); 
                and
                    (B) by striking the designator ``(1)'' that 
                precedes the remaining matter;
            (71) in section 2807--
                    (A) by striking subsections (b) and (c); and
                    (B) by redesignating subsection (d) as subsection 
                (b);
            (72) in section 2809, by striking subsection (f);
            (73) in section 2811--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (74) in section 2812--
                    (A) in subsection (c), by striking paragraph (1);
                    (B) by striking the designator ``(2)'' that 
                precedes the remaining matter;
            (75) in section 2813, by striking subsection (c);
            (76) in section 2815--
                    (A) by repealing this entire section in chapter 
                169; and
                    (B) by amending the table of section at the 
                beginning of such chapter by striking the item relating 
                to section 2815;
            (77) in section 2825--
                    (A) in subparagraph (b)(1)(B)--
                            (i) by striking clause (ii);
                            (ii) by striking ``, and'' at the end of 
                        clause (i); and
                            (iii) by striking the designator ``(i)'' in 
                        the remaining text following ``in the preceding 
                        sentence if''; and
                    (B) in subsection (c)(1)--
                            (i) by striking subparagraphs (C) and (D);
                            (ii) by inserting ``and'' at the end of 
                        subparagraph (A); and
                            (iii) by striking the semi-colon at the end 
                        of subparagraph (B) and inserting a period;
            (78) in section 2826--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsections (c) through (i) as 
                subsections (b) through(h), respectively;
            (79) in section 2827--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Subject to subsection (b), 
                the Secretary'' and inserting ``The Secretary'';
            (80) in section 2828--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f);
            (81) in section 2835--
                    (A) by striking subsections (b) and (g);
                    (B) by redesignating subsections (c) through (h) as 
                subsections (b) through(f), respectively; and
                    (C) in subsection (a), by striking ``Subject to 
                subsection (b), the Secretary''and inserting ``The 
                Secretary'';
            (82) in section 2836--
                    (A) in subsection (a), by striking ``Subject to 
                subsection (b), the Secretary''and inserting ``The 
                Secretary'';
                    (B) by striking subsection (b);
                    (C) by striking subsection (f); and
                    (D) by redesignating subsections (c) through (g) as 
                subsections (b) through (e), respectively;
            (83) in section 2837--
                    (A) in subsection (c)--
                            (i) by striking paragraph (2); and
                            (ii) by striking the designator ``(1)'' 
                        after the catchline and preceding the remaining 
                        matter;
                    (B) by striking subsection (f); and
                    (C) by redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively;
            (84) in section 2853--
                    (A) in subsection (c), by striking paragraphs (2) 
                and (3);
                    (B) in the remaining matter, by striking the 
                designator ``(1)'' and the dash and realigning the 
                paragraph to read as a subsection; and
                    (C) by striking the semicolon at the end of the 
                remaining matter and inserting a period;
            (85) in section 2854--
                    (A) by striking subsection (b); and
                    (B) by striking ``(a) Subject to subsection (b), 
                the'' in the preceding matter and inserting ``The'';
            (86) in section 2854a--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) through (g) as 
                subsections (c) through (f), respectively;
            (87) in section 2865--
                    (A) in subsection (e), by striking paragraph (2);
                    (B) by striking subsection (f); and
                    (C) by striking designator (1) after the catch 
                line;
            (88) in section 2866--
                    (A) in subsection (c), by striking paragraph (2); 
                and
                    (B) by striking designator (1) after the catch 
                line;
            (89) in section 2867, by striking subsection (c);
            (90) in section 2875, by striking subsection (e);
            (91) in section 2884--
                    (A) by striking subsection (b);
                    (B) by striking the designator ``(1)'' that follows 
                the catchline in the remaining matter;
                    (C) by striking the designator before subparagraph 
                (2) and inserting ``(b) Content of Reports.--'' to 
                redesignate that subparagraph as a subsection;
                    (D) by amending the section title to read: 
                ``Sec. 2884. Project reports''; and
                    (E) by amending the table of sections at the 
                beginning of such chapter 169 by replacing the item 
                relating to section 2884 with the following new item:

``2884. Project reports.'';
            (92) in section 2902--
                    (A) in subsection (g), by striking paragraph (2); 
                and
                    (B) by striking designator (1) after the catch 
                line;
            (93) in section 5143, by striking subsection (e);
            (94) in section 6954--
                    (A) by striking subsection (f); and
                    (B) by redesignating subsection (g) as subsection 
                (f);
            (95) in section 7049--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) through (g) as 
                subsections (c) through (f), respectively;
            (96) in section 9356--
                    (A) by striking subsection (c);
                    (B) by redesignating subsections (d) and (e) as 
                subsections (c) and (d), respectively; and
                    (C) in subsection (a), by striking ``Subject to 
                subsection (c), the Secretary'' and inserting ``The 
                Secretary'';
            (97) in section 9514--
                    (A) by striking subsection (c);
                    (B) by striking subsection (f); and
                    (C) by redesignating subsection (g) as subsection 
                (f);
            (98) in section 12302--
                    (A) in subsection (b), by striking the last 
                sentence; and
                    (B) by striking subsection (d); and
            (99) in section 16137--
                    (A) by repealing this entire section in chapter 
                1606; and
                    (B) by amending the table of sections at the 
                beginning of such chapter by striking the item relating 
                to section 16137.
    (b) Foreign Assistance Act of 1961.--Section 656 of the Foreign 
Assistance Act of 1961 (Public Law 87-195) is repealed.
    (c) Defense Acquisition Improvement Act of 1986.--Section 908 of 
the Defense Acquisition Improvement Act of 1986 (as contained in 
section 101(c) of Public Law 99-500 and identically enacted in section 
101(c) [title X] of Public Law 99-591 and title IX of division A of 
Public Law 99-661) (10 U.S.C. 2326 note) is amended by striking 
subsection (b).
    (d) National Defense Authorization Act for Fiscal Years 1988 and 
1989.--Section 1121 of the National Defense Authorization Act for 
Fiscal Years 1988 and 1989 (Public Law 100-180; 101 Stat. 1147) (10 
U.S.C. 113 note) is amended--
            (1) by striking subsection (f); and
            (2) by redesignating subsections (g) and (h) as subsections 
        (f) and (g), respectively.
    (e) Defense Authorization Amendments and Base Closure and 
Realignment Act of 1990.--Section 206 of the Defense Authorization 
Amendments and Base Closure and Realignment Act of 1990 (Public Law 
100-526; 102 Stat. 2631) (10 U.S.C. 2687) is repealed.
    (f) National Defense Authorization Act for Fiscal Year 1991.--The 
National Defense Authorization Act for Fiscal Year 1991 (Public Law 
101-510; 104 Stat. 1607, 1819, and 1822, respectively) is amended--
            (1) in section 831, by striking subsection (l);
            (2) in section 2921, by striking subsections (e), (f), 
        (g)(1), and (g)(2); and
            (3) in section 2926, by striking subsection (g).
    (g) Defense Economic Adjustment, Diversification, Conversion, and 
Stabilization Act of 1990.--Section 4004 of the Defense Economic 
Adjustment, Diversification, Conversion, and Stabilization Act of 1990 
(Public Law 101-510; 104 Stat. 1849) is amended by striking paragraph 
(c)(3).
    (h) National Defense Authorization Act for Fiscal Years 1992 and 
1993.--The National Defense Authorization Act for Fiscal Years 1992 and 
1993 (Public Law 102-190; 105 Stat. 1411 and 1562, respectively) is 
amended--
            (1) in section 734--
                    (A) by striking subsection (c); and
                    (B) by redesignating subsections (d) through (f) as 
                subsections (c) through (e), respectively; and
            (2) by repealing section 2868.
    (i) National Defense Authorization Act for Fiscal Year 1993.--The 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484; 106 Stat. 2367, 2439, 2516, and 2609, respectively) is 
amended--
            (1) in section 324, by striking subsection (b), and by 
        striking the designator ``(a)'' prior to ``Sense of Congress'' 
        in the remaining matter;
            (2) in section 722, by striking subsection (d);
            (3) in section 1082(b)--
                    (A) by striking subparagraph (1)(B);
                    (B) by striking the dash in subsection (b) of 
                section 1082; and
                    (C) by striking the designator ``(A)'' preceding 
                the remaining matter, and realigning it to read as a 
                paragraph; and
            (4) in section 2827--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b).
    (j) National Defense Authorization Act for Fiscal Year 1994.--The 
National Defense Authorization Act for Fiscal Year 1994 (Public Law 
103-160; 107 Stat. 1659 and 1931, respectively) is amended--
            (1) by repealing section 542; and
            (2) in section 2924, by striking subsection (b).
    (k) National Defense Authorization Act for Fiscal Year 1995.--The 
National Defense Authorization Act for Fiscal Year 1995 (Public Law 
103-337; 108 Stat. 2804 and 2890, respectively) is amended--
            (1) in section 721--
                    (A) by striking subsection (h); and
                    (B) by redesignating subsection (i) as subsection 
                (h); and
            (2) in section 1305, by striking subsection (h).
    (l) National Defense Authorization Act for Fiscal Year 1996.--
Section 2840 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 564) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4); and
            (2) in subsection (b)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4).
    (m) National Defense Authorization Act for Fiscal Year 1997.--The 
National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2480 and 2653, respectively) is amended--
            (1) in section 324, by striking subsection (c); and
            (2) in section 1065, by striking subsection (b).
    (n) Omnibus Consolidated Appropriations Act, 1997.--Section 8009 of 
the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208; 
110 Stat. 3009-89) is amended--
            (1) by striking ``unless the congressional defense 
        committees have been notified at least thirty days in advance 
        of the proposed contract award'';
            (2) by striking the comma after ``year''; and
            (3) by striking the colon before ``Provided''.
    (o) National Defense Authorization Act for Fiscal Year 1998.-- 
Section 349 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1690) is amended by striking 
subsection (e).
    (p) Strom Thurmond National Defense Authorization Act for Fiscal 
Year 1999.--The Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2075 and 2155, 
respectively) is amended--
            (1) in section 745(e)--
                    (A) by striking paragraph (2); and
                    (B) by striking the designator ``(1)'' following 
                the catchline in the preceding matter; and
            (2) by repealing section 1223.
    (q) Department of Defense Appropriations Act, 1999.--Section 8005 
of the Department of Defense Appropriations Act, 1999 (Public Law 105-
262; 112 Stat. 2297) is amended by striking ``Provided further, That 
the Secretary of Defense shall notify the Congress promptly of all 
transfers made pursuant to this authority or any other authority in 
this Act:''.
    (r) National Defense Authorization Act for Fiscal Year 2000.--The 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 542, 697, 706, 748, 756, 779, and 798, respectively) 
is amended--
            (1) in section 212, by striking subsection (c);
            (2) in section 724, by striking subsection (e);
            (3) by repealing section 811;
            (4) by repealing section 1025;
            (5) in section 1039, by striking subsection (b);
            (6) in section 1201--
                    (A) by striking subsections (d) and (e); and
                    (B) by redesignating subsection (f) as subsection 
                (d); and
            (7) in section 1402, by striking subsection (b)(2).
    (s) Military Construction Appropriations Act, 2001.--The Military 
Construction Appropriations Act, 2001 (Public Law 106-246; 114 Stat. 
517 and 518, respectively) is amended--
            (1) by repealing section 125; and
            (2) in section 127, by striking all that follows after 
        ``including flag and general officer quarters'' and inserting a 
        period.
    (t) Department of Defense Appropriations Act, 2001.--Section 8019 
of the Department of Defense Appropriations Act, 2001 (Public Law 106-
259; 114 Stat. 678) is amended by striking the last sentence.
    (u) Floyd D. Spence National Defense Authorization Act for Fiscal 
Year 2001.--The Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398 Appendix; 114 Stat. 1654A-28 and 
1654A-247, respectively) is amended--
            (1) by repealing section 131;
            (2) in section 1006, by striking subsection (c); and
            (3) by repealing section 1233.
    (v) National Defense Authorization Act for Fiscal Year 2002.--The 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 115 Stat. 1180 and 1204, respectively) is amended in section 
804(a), by striking ``of each of years 2003 through 2006'' and 
inserting ``2003,''.
    (w) Department of Defense and Emergency Supplemental Appropriations 
for Recovery From and Response to Terrorist Attacks on the United 
States Act, 2002.--Section 8009 of the Department of Defense and 
Emergency Supplemental Appropriations for Recovery From and Response to 
Terrorist Attacks on the United States Act, 2002 (Public Law 107-117; 
115 Stat. 2249; 10 U.S.C. 401 note) is amended by striking ``, and 
these obligations shall be reported to the Congress as of September 30 
of each year''.
    (x) Senate Executive Resolution 75 (105th Congress, 1st Session, 
Agreed to by the Senate on April 24, 1997).--Section 2, Condition 11, 
paragraph (F), of Senate Executive Resolution 75, a provision of the 
Senate's advice and consent to the ratification of the Chemical Weapons 
Convention (Treaty Doc. 103-21), is repealed.

                       Subtitle D--Other Matters

SEC. 931. COMBATANT COMMANDS INITIATIVES FUND.

    (a) Substitution of the Term ``CINC''.--Section 166a of title 10, 
United States Code, is amended by striking ``CINC'' wherever it appears 
and inserting ``Combatant Commander''.
    (b) Funds Authorized.--Subsection (e)(1) of such title is amended--
            (1) in subparagraph (A), by striking ``$7,000,000'' and 
        inserting ``$15,000,000'';
            (2) in subparagraph (B), by striking ``$1,000,000'' and 
        inserting ``$10,000,000''; -and
            (3) in subparagraph (C), by striking ``$2,000,000'' and 
        inserting ``$10,000,000''.

SEC. 932. CONSOLIDATING THE FINANCIAL MANAGEMENT OF FACILITIES IN THE 
              NATIONAL CAPITAL REGION AND DESIGNATED ALTERNATE SITES.

    Section 2674 of title 10, United States Code, is amended--
            (1) in subsection (b)(1), by striking ``of the Department 
        of Defense, and located'' and inserting ``of the Department of 
        Defense that is either on the Pentagon Reservation or'';
            (2) in subsection (d), by inserting before the period at 
        the end the following: ``or at facilities occupied by the 
        Department of Defense in the National Capital Region'';
            (3) in subsection (e)--
                    (A) in paragraph (1), by striking ``pursuant to 
                subsection (d)'' and inserting ``or at facilities 
                occupied by the Department of Defense in the National 
                Capital Region pursuant to subsection (d). Any residual 
                balance in the Buildings Maintenance Fund shall be 
                transferred to the Pentagon Reservation Maintenance 
                Revolving Fund''; and
                    (B) in paragraph (2), by inserting before the 
                period at the end the following: ``and at facilities 
                occupied by the Department of Defense in the National 
                Capital Region.'';
            (4) in subsection (f)(1)--
                    (A) by inserting ``--(A)'' after the ``The Pentagon 
                Reservation means'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) notwithstanding section 2682 of this title, 
                such other areas of land, locations, or physical 
                facilities of the Department of Defense as the 
                Secretary of Defense may determine are necessary to 
                designate as part of the Pentagon Reservation in order 
                to meet continuity of operations or other related 
                national security needs of the Department.''.

SEC. 933. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL SECURITY 
              AGENCY.

    (a) In General.--Title I of the National Security Act of 1947 (50 
U.S.C. 401 et seq.) is amended by inserting after section 105D (50 
U.S.C. 403-5c) the following new section:
``Sec. 105E. Protection of Operational Files of the National Security 
              Agency
    ``(a) Exemption of Certain Operational Files From Search, Review, 
Publication, or Disclosure.--(1) The Director of the National Security 
Agency, with the coordination of the Director of Central Intelligence, 
may exempt operational files of the National Security Agency from the 
provisions of section 552 of title 5, United States Code, which require 
publication, disclosure, search, or review in connection therewith.
    ``(2)(A) Subject to subparagraph (B), for the purposes of this 
section, the term `operational files' means files of the National 
Security Agency (hereafter in this section referred to as ``NSA'') that 
document the means by which foreign intelligence or counterintelligence 
is collected through technical systems.
    ``(B) Files that contain disseminated intelligence are not 
operational files.
    ``(3) Notwithstanding paragraph (1), exempted operational files 
shall continue to be subject to search and review for information 
concerning--
            ``(A) United States citizens or aliens lawfully admitted 
        for permanent residence who have requested information on 
        themselves pursuant to the provisions of section 552 of title 5 
        or section 552a of title 5, United States Code;
            ``(B) any special activity the existence of which is not 
        exempt from disclosure under the provisions of section 552 of 
        title 5, United States Code; or
            ``(C) the specific subject matter of an investigation for 
        any impropriety, or violation of law, Executive order, or 
        Presidential directive, -in the conduct of an intelligence 
        activity by--
                    ``(i) The Permanent Select Committee on 
                Intelligence of the House of Representatives.
                    ``(ii) The Select Committee on Intelligence of the 
                Senate.
                    ``(iii) The Intelligence Oversight Board.
                    ``(iv) The Department of Justice.
                    ``(v) The Office of General Counsel of NSA.
                    ``(vi) The Office of the Director of NSA.
    ``(4)(A) Files that are not exempted under paragraph (1) which 
contain information derived or disseminated from exempted operational 
files shall be subject to search and review.
    ``(B) The inclusion of information from exempted operational files 
in files that are not exempted under paragraph (1) shall not affect the 
exemption under paragraph (1) of the originating operational files from 
search, review, publication, or disclosure.
    ``(C) The declassification of some of the information contained in 
exempted operational files shall not affect the status of the 
operational file as being exempt from search, review, publication, or 
disclosure.
    ``(D) Records from exempted operational files which have been 
disseminated to and referenced in files that are not exempted under 
paragraph (1) and which have been returned to exempted operational 
files for sole retention shall be subject to search and review.
    ``(5) The provisions of paragraph (1) may not be superseded except 
by a provision of law which is enacted after the date of the enactment 
of this section, and which specifically cites and repeals or modifies 
its provisions.
    ``(6)(A) Except as provided in subparagraph (B), whenever any 
person who has requested agency records under section 552 of title 5, 
United States Code, alleges that NSA has withheld records improperly 
because of failure to comply with any provision of this section, 
judicial review shall be available under the terms set forth in section 
552(a)(4)(B) of title 5, United States Code.
    ``(B) Judicial review shall not be available in the manner provided 
for under subparagraph (A) as follows:
            ``(i) In any case in which information specifically 
        authorized under criteria established by an Executive order to 
        be kept secret in the interests of national defense or foreign 
        relations which is filed with, or produced for, the court by 
        NSA, such information shall be examined ex parte, in camera by 
        the court.
            ``(ii) The court shall, to the fullest extent practicable, 
        determine the issues of fact based on sworn written submissions 
        of the parties.
            ``(iii) When a complainant alleges that requested records 
        are improperly withheld because of improper placement solely in 
        exempted operational files, the complainant shall support such 
        allegation with a sworn written submission based upon personal 
        knowledge or otherwise admissible evidence.
            ``(iv)(I) When a complainant alleges that requested records 
        were improperly withheld because of improper exemption of 
        operational files, NSA shall meet its burden under section 
        552(a)(4)(B) of title 5, United States Code, by demonstrating 
        to the court by sworn written submission that exempted 
        operational files likely to contain responsive records 
        currently perform the functions set forth in paragraph (2).
            ``(II) The court may not order NSA to review the content of 
        any exempted operational file or files in order to make the 
        demonstration required under subclause (I), unless the 
        complainant disputes NSA's showing with a sworn written 
        submission based on personal knowledge or otherwise admissible 
        evidence.
            ``(v) In proceedings under clauses (iii) and (iv), the 
        parties may not obtain discovery pursuant to rules 26 through 
        36 of the Federal Rules of Civil Procedure, except that 
        requests for admission may be made pursuant to rules 26 and 36.
            ``(vi) If the court finds under this paragraph that NSA has 
        improperly withheld requested records because of failure to 
        comply with any provision of this subsection, the court shall 
        order NSA to search and review the appropriate exempted 
        operational file or files for the requested records and make 
        such records, or portions thereof, available in accordance with 
        the provisions of section 552 of title 5, United States Code, 
        and such order shall be the exclusive remedy for failure to 
        comply with this subsection.
            ``(vii) If at any time following the filing of a complaint 
        pursuant to this paragraph NSA agrees to search the appropriate 
        exempted operational file or files for the requested records, 
        the court shall dismiss the claim based upon such complaint.
            ``(viii) Any information filed with, or produced for the 
        court pursuant to clauses (i) and (iv) shall be coordinated 
        with the Director of Central Intelligence prior to submission 
        to the court.
    ``(b) Decennial Review of Exempted Operational Files.--(1) Not less 
than once every 10 years, the Director of NSA and the Director of 
Central Intelligence shall review the exemptions in force under 
subsection (a)(1) to determine whether such exemptions may be removed 
from the category of exempted files or any portion thereof. The 
Director of Central Intelligence must approve any determination to 
remove such exemptions.
    ``(2) The review required by paragraph (1) shall include 
consideration of the historical value or other public interest in the 
subject matter of the particular category of files or portions thereof 
and the potential for declassifying a significant part of the 
information contained therein.
    ``(3) A complainant that alleges that NSA has improperly withheld 
records because of failure to comply with this subsection may seek 
judicial review in the district court of the United States of the 
district in which any of the parties reside, or in the District of 
Columbia. In such a proceeding, the court's review shall be limited to 
determining--
            ``(A) Whether NSA has conducted the review required by 
        paragraph (1) before the expiration of the 10-year period 
        beginning on the date of the enactment of this section or 
        before the expiration of the 10-year period beginning on the 
        date of the most recent review.
            ``(B) Whether NSA, in fact, considered the criteria set 
        forth in paragraph (2) in conducting the required review.''.
    (b) Clerical Amendment.--The table of contents contained in the 
first section of such Act is amended by inserting after the item 
relating to section 105D the following new item:

``Sec. 105E. Protection of operational files of the National Security 
                            Agency.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Repeal of requirement for separate budget request for 
                            procurement of Reserve equipment.
Sec. 1002. Repeal of requirement for two-year budget cycle for the 
                            Department of Defense.
Sec. 1003. Payment of full replacement value for personal property 
                            claims.
Sec. 1004. Treatment of reimbursements for subpoena and litigation 
                            costs; recovery to agency funds.
Sec. 1005. Restoration of authority to enter into 12-month leases at 
                            any time during the fiscal year.
Sec. 1006. Authority to provide reimbursement for cellular telephone 
                            use.
Sec. 1007. Reimbursement for Reserve intelligence support.
Sec. 1008. Increased use of energy cost savings.
Sec. 1009. Allow the Department of Defense to capture all expired funds 
                            from the Military Personnel and Operation 
                            and Maintenance Appropriations Accounts for 
                            use in the Foreign Currency Fluctuations 
                            Account.
Sec. 1010. Funding for special operations Reserve component personnel 
                            engaged in activities relating to clearance 
                            of landmines.
                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Reimbursement to the Navy for assistance provided in support 
                            of certain ship and shipboard equipment 
                            transfers.
Sec. 1012. Vessels stricken from naval vessel register: use for 
                            experimental purposes.
Sec. 1013. Authorize transfer of vessels stricken from the naval vessel 
                            register for use as artificial reefs.
Sec. 1014. Repeal of the Shipbuilding Capability Preservation 
                            Agreement.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extend authority for use of counter drug activities.
Sec. 1022. Department of Defense support for counter-terrorism 
                            activities in the Americas.
Sec. 1023. Expansion and extension of authority to provide additional 
                            support for counter-drug activities.
           Subtitle D--Other Department of Defense Provisions

Sec. 1031. Provision of living quarters for certain students.
Sec. 1032. Repeal of required grade for defense attache in France.
Sec. 1033. National Geospatial-Intelligence Agency.
                       Subtitle E--Other Matters

Sec. 1041. Use of the National Driver Register for personnel security 
                            investigations and determinations.
Sec. 1042. National Defense Heritage Foundation.
Sec. 1043. Updating definitions in title 10, United States Code.
Sec. 1044. Improving readiness in providing firefighting services.
Sec. 1045. Exemption for charter operations to provide transportation 
                            to the Armed Forces.
Sec. 1046. Documents, historical artifacts, and obsolete or surplus 
                            materiel: loan, donation, or exchange.
Sec. 1047. Authority to ensure demilitarization of significant military 
                            equipment formerly owned by the Department 
                            of Defense.
Sec. 1048. Stopping vessels; immunity for firing at or into vessel.
Sec. 1049. Reauthorization of aviation insurance program.
Sec. 1050. Modification of national security education program.

                     Subtitle A--Financial Matters

SEC. 1001. REPEAL OF REQUIREMENT FOR SEPARATE BUDGET REQUEST FOR 
              PROCUREMENT OF RESERVE EQUIPMENT.

    Section 114(e) of title 10, United States Code, is repealed.

SEC. 1002. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE FOR THE 
              DEPARTMENT OF DEFENSE.

    Section 1405 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 99 Stat. 744; 31 U.S.C. 1105 note) is repealed.

SEC. 1003. PAYMENT OF FULL REPLACEMENT VALUE FOR PERSONAL PROPERTY 
              CLAIMS.

    Section 2636 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) The Secretary of Defense or the Secretary of a military 
department may procure from commercial transportation service providers 
full replacement value coverage for household goods shipments provided 
at government expense without regard to the dollar limitations 
contained in title 37, United States Code, Section 3721, relative to 
claims for loss or damages. Under such contracts, servicemembers will 
be reimbursed full replacement value, if warranted, and such amounts 
may be deducted from the amounts due the carriers if settlement is not 
reached between the servicemember and the carrier.''.

SEC. 1004. TREATMENT OF REIMBURSEMENTS FOR SUBPOENA AND LITIGATION 
              COSTS; RECOVERY TO AGENCY FUNDS.

    Section 3730(b) of title 31, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(6) An agency responding to a subpoena or request for information 
relating to a matter in litigation to which neither the United States 
or any agency thereof is a party (including any suit brought under this 
section of this title in which the United States has not intervened) 
may assess reasonable fees for responding to the subpoena or request. 
Payments received for such assessments shall be deposited into the 
agency's current year appropriation from which the expenditure was 
originally made, to merge with and become available for the same 
purposes and period as the accounts to which they are credited.''.

SEC. 1005. RESTORATION OF AUTHORITY TO ENTER INTO 12-MONTH LEASES AT 
              ANY TIME DURING THE FISCAL YEAR.

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

SEC. 1006. AUTHORITY TO PROVIDE REIMBURSEMENT FOR CELLULAR TELEPHONE 
              USE.

    (a) General Authority.--The Secretary of Defense is authorized to 
reimburse employees on a flat-rate basis for cellular telephone used on 
privately-owned cellular phones when on official Government business.
    (b) Reimbursement Rate.--The Secretary of Defense may prescribe the 
cellular phone flat reimbursement rate. This reimbursement rate shall 
not exceed the equivalent Government costs of providing a cellular 
telephone to employees on official Government business.

SEC. 1007. REIMBURSEMENT FOR RESERVE INTELLIGENCE SUPPORT.

    (a) In General.--Chapter 1003 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 10115. Reimbursement for reserve intelligence support
    ``The Secretary of Defense or the Secretary concerned shall 
reimburse a Reserve or National Guard unit or organization for the pay, 
allowances, or other expenses incurred by the Reserve or National Guard 
unit or organization when a member of the Reserve or National Guard 
unit or organization provides intelligence support, counterintelligence 
support, or intelligence and counterintelligence support to Combatant 
Commands, Defense Agencies, and Joint Intelligence Activities, 
including but not limited to the activities and programs within the 
National Foreign Intelligence Program, the Joint Military Intelligence 
Program, and the Tactical Intelligence and Related Activities. 
Reimbursement shall be paid out of funds available for operations and 
maintenance of the military departments, combatant commands, or Defense 
Agencies.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``10115. Reimbursement for reserve intelligence support.''.

SEC. 1008. INCREASED USE OF ENERGY COST SAVINGS.

    Section 2865(b)(1) of title 10, United States Code, is amended by 
striking ``Two-thirds of the portion of the funds appropriated to 
Department of Defense for a fiscal year that is'' and inserting ``Funds 
appropriated to the Department of Defense for a fiscal year that are''.

SEC. 1009. ALLOW THE DEPARTMENT OF DEFENSE TO CAPTURE ALL EXPIRED FUNDS 
              FROM THE MILITARY PERSONNEL AND OPERATION AND MAINTENANCE 
              APPROPRIATIONS ACCOUNTS FOR USE IN THE FOREIGN CURRENCY 
              FLUCTUATIONS ACCOUNT.

    Section 2779 of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``second fiscal 
        year'' and inserting ``fifth fiscal year''; and
            (2) in subsection (d)(2), by striking ``second fiscal 
        year'' and inserting ``fifth fiscal year''.

SEC. 1010. FUNDING FOR SPECIAL OPERATIONS RESERVE COMPONENT PERSONNEL 
              ENGAGED IN ACTIVITIES RELATING TO CLEARANCE OF LANDMINES.

    Funds authorized in this Act for the Overseas Humanitarian, 
Disaster and Civic Aid programs of the Department of Defense shall be 
available, in a total amount not to exceed $5,000,000 in any fiscal 
year, for reimbursement of pay and allowances of Special Operations 
Reserve Component personnel performing duty in connection with training 
and activities related to the clearing of landmines for humanitarian 
purposes.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1011. REIMBURSEMENT TO THE NAVY FOR ASSISTANCE PROVIDED IN SUPPORT 
              OF CERTAIN SHIP AND SHIPBOARD EQUIPMENT TRANSFERS.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 7316. Reimbursement for assistance provided in support of 
              certain ship and shipboard equipment transfers
    ``(a) Authority To Perform Work.--The Secretary of the Navy may 
provide assistance in support of any ship or shipboard equipment 
transfer under sections 2572, 7306, 7307, and 7545 of this title, or 
under any other authority, in connection with inactive decommissioned 
Navy-owned vessels maintained and located at Navy facilities.
    ``(b) Reimbursement.--The Secretary may require the entities 
receiving assistance under subsection (a) to reimburse the Navy for 
amounts expended in providing such assistance.
    ``(c) Deposit of Funds Received.--Funds received under subsection 
(b) shall be credited to the appropriations supporting the maintenance 
and operation of the Navy Inactive Ships Management Office for the 
fiscal year in which the funds are received, to merge with and become 
available for the same purposes and period as the accounts to which 
they are credited.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7316. Reimbursement for assistance provided in support of certain 
                            ship and shipboard equipment transfers.''.

SEC. 1012. VESSELS STRICKEN FROM NAVAL VESSEL REGISTER: USE FOR 
              EXPERIMENTAL PURPOSES.

    Section 7306a of title 10, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by adding at the end the 
                following new sentence: ``Material and equipment 
                stripped from the vessel may be sold by a contractor or 
                a designated sales agent on behalf of the Navy.''; and
                    (B) in paragraph (2), by striking ``scrapping 
                services'' and all that follows through the end of the 
                paragraph and inserting ``services needed for such 
                stripping and for environmental remediation required 
                for the use of a vessel for experimental purposes. 
                Amounts received which are in excess of amounts needed 
                for reimbursement of those costs shall be deposited 
                into the account from which the stripping and 
                environmental remediation expenses were incurred and 
                shall be available for stripping and environmental 
                remediation of other vessels used for experimental 
                purposes.''; and
            (2) by adding at the end the following new subsection:
    ``(c) Experimental Purposes Defined.--For purposes of this section, 
the term `experimental purposes' includes vessels used in Navy sink 
exercises and for target use.''.

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

    Chapter 633 of title 10, United States Code, is amended by 
inserting after section 7306a the following new section:
``Sec. 7306b. Vessels stricken from Naval Vessel Register; transfer by 
              gift or otherwise for use as artificial reefs
    ``(a) Authority To Make Transfer.--Subject to subsections (c) and 
(d) of section 602 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 474), the Secretary of the Navy may transfer, by 
gift or otherwise, any vessel stricken from the Naval Vessel Register 
to any State, Commonwealth, or possession of the United States or any 
municipal corporation or political subdivision thereof.
    ``(b) Vessel To Be Used as Artificial Reef.--An agreement for the 
transfer of a vessel under subsection (a) shall require that--
            ``(1) the transferee use, site, construct, monitor and 
        manage the vessel only as an artificial reef in accordance with 
        the requirements of chapter 35 of title 33, except that the 
        transferee also may use the artificial reef to enhance diving 
        opportunities if that use does not have an adverse effect on 
        fishery resources, as defined in section 1802(14) of the 
        Magnuson-Stevens Fishery Conservation and Management Act of 
        1976, as amended (Public Law 100-627; 16 U.S.C. 1802); and
            ``(2) the transferee shall obtain and bear all of the 
        responsibility for complying with all of the applicable 
        federal, state, interstate, and local permits for siting, 
        constructing, monitoring and managing a vessel as an artificial 
        reef.
    ``(c) Additional Terms.--The Secretary may require such additional 
terms in connection with the conveyance authorized by this section as 
the Secretary considers appropriate.
    ``(d) Cost Sharing on Transfers.--The Department of the Navy may 
share with the recipient any of the costs associated with transferring 
the vessel under this section.
    ``(e) Application for More Than One Vessel.--A State, Commonwealth, 
or possession of the United States, or any municipal corporation or 
political subdivision thereof, may apply for more than one vessel under 
this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7306a the following new item:

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

SEC. 1014. REPEAL OF THE SHIPBUILDING CAPABILITY PRESERVATION 
              AGREEMENT.

    (a) In General.--Section 7315 of title 10, United States Code, is 
repealed.
    (b) Savings Provision.--Agreements entered into under the authority 
of section 7315 prior to the date of enactment of this Act shall 
continue to remain in full force and effect.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 633 of such title is amended by striking the item relating to 
section 7315.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. EXTEND AUTHORITY FOR USE OF COUNTER-DRUG ACTIVITIES.

    (a) Authority.--(1) In fiscal years 2004 and 2005, the Secretary of 
Defense may use funds available for drug interdiction and counter-drug 
activities to provide assistance to the Government of Colombia to 
support a unified campaign against narcotics trafficking, to support a 
unified campaign against activities by organizations designated as 
terrorist organizations such as the Revolutionary Armed Forces of 
Colombia, the National Liberation Army, and the United Self-Defense 
Forces of Colombia, and to take actions to protect human health and 
welfare in emergency circumstances, including undertaking rescue 
operations.
    (2) The authority in this section is in addition to authorities 
currently available to provide assistance to Colombia.
    (b) Application to Funds.--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, respectively), section 8093 of the Department of Defense 
Appropriations Act, 2002 (Public Law 107-248; 116 Stat. 1558), and the 
numerical limitations on the number of United States military personnel 
and United States individual civilian contractors in section 3204(b)(1) 
of the Military Construction Appropriations Act, 2001 (Public Law 106-
246; 114 Stat. 575), as amended, shall be applicable to funds made 
available pursuant to the authority contained in subsection (a).
    (c) Prohibition.--No United States Armed Forces personnel or United 
States civilian contractor employed by the United States will 
participate in any combat operation in connection with assistance made 
available under this chapter, except for the purpose of acting in self 
defense or rescuing any United States citizen to include United States 
Armed Forces personnel, United States civilian employees, and civilian 
contractors employed by the United States.

SEC. 1022. DEPARTMENT OF DEFENSE SUPPORT FOR COUNTER-TERRORISM 
              ACTIVITIES IN THE AMERICAS.

    In fiscal year 2004, funds made available to the Department of 
Defense to support counter-drug activities are hereby authorized to 
support a unified campaign against illicit narcotics-trafficking and 
related activities by identified organizations engaged in such 
narcotics-trafficking, to support a unified campaign against activities 
by organizations in the Americas hemisphere actively engaged in, or 
designated as, terrorist organizations, and to take sufficient action 
to protect human health and welfare in exigent circumstances, including 
the undertaking of rescue operations throughout Central and South 
America and the waters South of the Continental United States, such as 
the Pacific Ocean east of 120 degrees West, the Gulf of Mexico, and the 
Caribbean Sea. The exercise of this authority by the Secretary of 
Defense is subject to the concurrence of the Secretary of State.

SEC. 1023. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE ADDITIONAL 
              SUPPORT FOR COUNTER-DRUG ACTIVITIES.

    Section 1033 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1881), as amended by the 
National Defense Authorization Act for Fiscal Year 2001 (Public Law 
106-398; 114 Stat. 1654A-255), is amended--
            (1) in the section title by striking ``Peru and Colombia'' 
        and inserting ``other countries'';
            (2) in subsection (a)--
                    (A) by striking ``2002'' and inserting ``2006''; 
                and
                    (B) by striking ``either or both'' and inserting 
                ``any'';
            (3) by amending subsection (b) to read as follows:
    ``(b) Governments Eligible To Receive Support.--The foreign 
governments eligible to receive counter-drug support under this section 
are as follows:
            ``(1) Afghanistan,
            ``(2) Ecuador,
            ``(3) Pakistan,
            ``(4) Tajikistan,
            ``(5) Turkmenistan,
            ``(6) Uzbekistan,
            ``(7) Peru, and
            ``(8) Colombia.'';
            (4) in subsection (c)--
                    (A) in paragraph (2) by striking ``riverine'';
                    (B) by amending paragraph (3) to read as follows:
            ``(3) The maintenance, repair, or upgrade of equipment of 
        the government that is used for counter-drug activities.''; and
                    (C) by adding at the end the following new 
                paragraph (4):
            ``(4) The sustainment, including ammunition, of counterdrug 
        security forces.'';
            (5) in subsection (e)(2)--
                    (A) by striking ``$20,000,000'' and inserting 
                ``$40,000,000''; and
                    (B) by striking ``1999'' and inserting ``2004''; 
                and
            (6) in subsection (h)--
                    (A) by amending subsection (h) to read as follows:
    ``(h) Counter-Drug Plan.--The Secretary of Defense, in consultation 
with the Secretary of State, shall prepare for fiscal year 2004 (and 
revise as necessary for subsequent fiscal years) a counter-drug plan 
involving the governments named in subsection (b) to which support will 
be provided under this section:'';
                    (B) in paragraph (2), by striking ``riverine'';
                    (C) in paragraph (7), by striking ``riverine'';
                    (D) in paragraph (8), by striking ``riverine''; and
                    (E) by amending paragraph (9) to read as follows:
            ``(9) A detailed discussion of how the counter-drug program 
        supports the national drug control strategy and the national 
        security cooperation goals of the United States.''.

           Subtitle D--Other Department of Defense Provisions

SEC. 1031. PROVISION OF LIVING QUARTERS FOR CERTAIN STUDENTS.

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

SEC. 1032. REPEAL OF REQUIRED GRADE FOR DEFENSE ATTACHE IN FRANCE.

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

SEC. 1033. NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY.

    (a) Definition of Geospatial Intelligence.--Section 467 of title 
10, United States Code, is amended by adding at the end the following 
new paragraph:
    ``(5) The term `geospatial intelligence' means the exploitation and 
analysis of imagery and geospatial information to describe, assess, and 
visually depict physical features and geographically referenced 
activities on the Earth. This term consists of imagery, imagery 
intelligence, and geospatial information.''.
    (b) Missions.--Section 442(a) of such title is amended to read as 
follows:
    ``(a) National Security Missions.--(1) The National Geospatial-
Intelligence Agency shall, in support of the national security 
objectives of the United States, provide geospatial intelligence 
consisting of the following:
            ``(A) Imagery.
            ``(B) Imagery intelligence.
            ``(C) Geospatial information.
    ``(2) Geospatial intelligence provided in carrying out paragraph 
(1) shall be timely, relevant, and accurate.''.
    (c) National Security Act Change.--Section 110 of the National 
Security Act of 1947 (50 U.S.C. 404(e)) is amended by striking 
``imagery'' and inserting ``geospatial intelligence''.
    (d) Technical Changes to Title 10.--
            (1) The title of chapter 22 of such title is amended by 
        striking ``National Imagery and Mapping Agency'' and inserting 
        ``National Geospatial-Intelligence Agency''.
            (2) Paragraphs (a) and (b) of section 441 of such title are 
        amended by striking ``National Imagery and Mapping Agency'' and 
        inserting ``National Geospatial-Intelligence Agency''.
            (3) Section 442 of such title is amended by striking 
        ``National Imagery and Mapping Agency'' wherever it appears and 
        inserting ``National Geospatial-Intelligence Agency''.
            (4) Paragraphs (a) and (b) of section 443 of such title are 
        amended by striking ``National Imagery and Mapping Agency'' and 
        inserting ``National Geospatial-Intelligence Agency''.
            (5) Paragraphs (a), (b), (c), and (e) of section 444 of 
        such title are amended by striking ``National Imagery and 
        Mapping Agency'' and inserting ``National Geospatial-
        Intelligence Agency''.
            (6) Section 451 of such title is amended by striking 
        ``National Imagery and Mapping Agency'' and inserting 
        ``National Geospatial-Intelligence Agency''.
            (7) Paragraphs (a) and (b) of section 452 of such title are 
        amended by striking ``National Imagery and Mapping Agency'' and 
        inserting ``National Geospatial-Intelligence Agency''.
            (8) Paragraphs (a) and (b) of section 453 of such title are 
        amended--
                    (A) by striking ``National Imagery and Mapping 
                Agency'' and inserting ``National Geospatial-
                Intelligence Agency''; and
                    (B) by striking ``NIMA'' and inserting ``NGA''.
            (9) Section 454 of such title is amended by striking 
        ``National Imagery and Mapping Agency'' and inserting 
        ``National Geospatial-Intelligence Agency''.
            (10) Paragraphs (a) and (b) of section 455 of such title 
        are amended by striking ``National Imagery and Mapping Agency'' 
        and inserting ``National Geospatial-Intelligence Agency''.
            (11) Paragraphs (a) and (b) of section 456 of such title 
        are amended by striking ``National Imagery and Mapping Agency'' 
        and inserting ``National Geospatial-Intelligence Agency''.
            (12) Paragraph (b) of section 457 of such title is amended 
        by striking ``National Imagery and Mapping Agency'' and 
        inserting ``National Geospatial-Intelligence Agency''.
            (13) Paragraphs (a), (b), (c), and (d) of section 461 of 
        such title are amended by striking ``National Imagery and 
        Mapping Agency'' and inserting ``National Geospatial-
        Intelligence Agency''.
            (14) Section 1614 of such title is amended by striking 
        ``National Imagery and Mapping Agency'' and inserting 
        ``National Geospatial-Intelligence Agency''.
    (e) Technical Changes to the National Security Act of 1947.--
            (1) Section 3 of the National Security Act of 1947 (50 
        U.S.C. 401a) is amended by striking ``National Imagery and 
        Mapping Agency'' and inserting ``National Geospatial- 
        Intelligence Agency''.
            (2) Paragraphs (b) and (d) of section 105 of such Act (50 
        U.S.C. 403-5) are amended by striking ``National Imagery and 
        Mapping Agency'' and inserting ``National Geospatial-
        Intelligence Agency''.
            (3) Paragraph (b) of section 105A of such Act (50 U.S.C. 
        403-5a) is amended by striking ``National Imagery and Mapping 
        Agency'' and inserting ``National Geospatial-Intelligence 
        Agency''.
            (4) Section 105C of such Act (50 U.S.C. 403-5c) is 
        amended--
                    (A) by striking ``National Imagery and Mapping 
                Agency'' wherever it appears and inserting ``National 
                Geospatial-Intelligence Agency''; and
                    (B) and by striking ``NIMA'' wherever it appears 
                and inserting ``NGA''.
            (5) Paragraph (a) of section 106 of such Act (50 U.S.C. 
        403-6) is amended by striking ``National Imagery and Mapping 
        Agency'' and inserting ``National Geospatial-Intelligence 
        Agency''.
            (6) Paragraphs (a), (b), and (c) of section 110 of such Act 
        (50 U.S.C. 404e) are amended by striking ``National Imagery and 
        Mapping Agency'' and inserting ``National Geospatial-
        Intelligence Agency''.
    (f) Seal.--Section 425 (a) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(5) The words `National Geospatial-Intelligence Agency', 
        the initials `NGA', or the seal of the National Geospatial-
        Intelligence Agency.''.

                       Subtitle E--Other Matters

SEC. 1041. USE OF THE NATIONAL DRIVER REGISTER FOR PERSONNEL SECURITY 
              INVESTIGATIONS AND DETERMINATIONS.

    (a) In General.--Chapter 303 of title 49, United States Code, is 
amended by inserting after section 30305 the following new section:
``Sec. 30305a. National driver register information for use in 
              personnel security investigations and determinations and 
              personnel investigations with regard to Federal 
              employment security checks for Federal employment
    ``An individual who has or who seeks access to national security 
information for purposes of Executive Order 12968, or successor 
Executive orders, or an individual who is being investigated for 
Federal employment under authority of Executive Order 10450, or 
successor Executive orders, may request that the chief driver licensing 
official of a State provide information about the individual pursuant 
to section 30305(a) of this title to a Federal department or agency 
that is authorized to investigate the individual for the purpose of 
assisting in the determination of the eligibility of the individual for 
access to national security information or for Federal employment. The 
Federal Department or agency that receives such information may use it 
in accordance with applicable law.''.
    (b) Clerical Amendment.--The table of sections for such chapter 303 
of title 49 is amended by inserting after the item relating to section 
30305 the following new item:

``30305a. National driver register information for use in personnel 
                            security investigations and determinations 
                            and personnel investigations with regard to 
                            Federal employment security checks for 
                            Federal employment.''.

SEC. 1042. NATIONAL DEFENSE HERITAGE FOUNDATION.

    (a) In General.--Part IV of Subtitle A of title 10, United States 
Code is amended by adding at the end the following new chapter:

          ``CHAPTER 173--NATIONAL DEFENSE HERITAGE FOUNDATION

``Sec.
``2905. Establishment and Purpose.
``2906. Composition and Operation.
``2907. Corporate Powers and Obligations.
``2908. Tax exemptions; contributions toward costs of local government; 
                            contributions, gifts, or transfers to or 
                            for use of United States.
``2909. Liability of United States.
``2910. Promotion of local fundraising support.
``2911. Authorization of appropriations.
``Sec. 2905. Establishment and purpose
    ``(a) Establishment.--A National Defense Heritage Foundation is 
hereby established as a charitable and nonprofit corporation for the 
purposes specified in subsection (b), and shall be organized and 
operated as a 26 U.S.C. 501(c)(3) charitable foundation.
    ``(b) Purposes.--The Foundation shall encourage, accept, and 
administer private gifts of money and real and personal property or any 
income therefrom for the benefit of, or in connection with, the 
preservation, protection, and continued beneficial use of historic 
properties owned or controlled by the Department of Defense.
``Sec. 2906. Composition and operation
    ``(a) Board of Directors.--The National Defense Heritage Foundation 
shall be governed by a Board of Directors that shall consist of--
            ``(1) the Secretary of Defense, ex officio;
            ``(2) the Secretaries of the Military Departments, ex 
        officio;
            ``(3) the Director of the National Park Service, ex 
        officio;
            ``(4) five experts in the field of historic preservation 
        appointed by the Secretary of Defense from the disciplines of 
        architecture, history, archeology, or other appropriate 
        disciplines;
            ``(5) three at-large members from the general public 
        appointed by the Secretary of Defense; and
            ``(6) the Chairman of the Advisory Council on Historic 
        Preservation.
    ``(b) Term of Appointment.--The initial terms of the five historic 
preservation experts and the three at-large members shall be staggered 
to assure continuity of administration. Thereafter, the term shall be 
six years, unless a successor is chosen to fill a vacancy occurring 
prior to the expiration of the term for which his predecessor was 
chosen, in which event the successor shall be chosen only for the 
remainder of that term.
    ``(c) Chairperson and Secretary.--The Secretary of Defense shall be 
the Chairman of the Board and the Director of the National Park Service 
shall be the Secretary of the Board.
    ``(d) Membership and Operation.--Except as to those Board members 
serving in their official capacities, service as a member of the Board 
shall not constitute employment by, or the holding of, an office of the 
United States for the purposes of any Federal law. A majority of the 
members of the Board serving at any one time shall constitute a quorum 
for the transaction of business, and the Foundation shall have an 
official seal, which shall be judicially noticed. The Board shall meet 
at the call of the Chairman and there shall be at least one meeting 
each year.
    ``(e) Compensation and Travel Expenses.--No compensation shall be 
paid to the members of the Board for their services as members, but 
they shall be reimbursed for actual and necessary traveling and 
subsistence expenses incurred by them in the performance of their 
duties as such members out of National Defense Heritage Foundation 
funds available to the Board for such purposes.
    ``(f) Volunteer Status.--The Secretary of Defense may accept, 
without regard to civil service classification laws, rules, or 
regulations, the services of the Foundation, the Board, and the 
officers and employees of the Board, without compensation from the 
Department of Defense, as volunteers in the performance of the 
functions authorized herein.
    ``(g) Employees.--An officer or employee of the Foundation--
            ``(1) shall not by virtue of the appointment or employment 
        of the office or employee, be considered a Federal employee for 
        any purpose; and
            ``(2) may not be paid by the Foundation a salary in excess 
        of $134,000 per year.
``Sec. 2907. Corporate powers and obligations
    ``(a) Gifts.--(1) The Foundation is authorized to accept, receive, 
solicit, hold, administer, and use any gifts, devises, or bequests, 
either absolutely or in trust, of real or personal property or any 
income therefrom or other interest therein for the benefit of or in 
connection with, the preservation, protection, and continued beneficial 
use of historic properties owned or controlled by the Department of 
Defense; provided, that the Foundation may not accept any such gift, 
devise, or bequest that entails any expenditure other than from the 
resources of the Foundation.
    ``(2) An interest in real property includes, among other things, 
easements or other rights for preservation, conservation, protection, 
or enhancement of historic properties.
    ``(3) A gift, device, or bequest may be accepted by the Foundation 
even though it is encumbered, restricted, or subject to beneficial 
interests of private persons if any current or future interest therein 
supports the purposes for which the Foundation has been established.
    ``(b) Property and Income Dealings and Transactions.--(1) Except as 
otherwise required by the instrument of transfer, the Foundation may 
sell, lease, invest, reinvest, retain, or otherwise dispose of or deal 
with any property or income thereof as the Board may from time to time 
determine.
    ``(2) The Foundation shall not engage in any business, nor shall 
the Foundation make any investment that may not lawfully be made by a 
trust company in the District of Columbia, except that the Foundation 
may make any investment authorized by the instrument of transfer, and 
may retain any property accepted by the Foundation.
    ``(3) The Foundation may utilize the services and facilities of the 
Department of Defense, the Department of the Interior, and the 
Department of Justice, and such services and facilities may be made 
available on request to the extent practicable with or without 
reimbursement therefore. Monies reimbursed to any Department shall be 
returned by the Department to the account from which the funds for 
which the reimbursement is made were drawn and may, without further 
appropriation, be expended for any purpose for which such account is 
authorized.
    ``(c) Corporate Succession; Powers and Duties of Trustee; Suits; 
Personal Liability for Malfeasance.--The Foundation shall have 
perpetual succession, with all the usual powers and obligations of a 
corporation acting as a trustee, including the power to sue and to be 
sued in its own name, but the members of the Board shall not be 
personally liable, except for malfeasance.
    ``(d) Authority for Execution of Contracts, Instruments, and 
Necessary or Appropriate Acts.--The Foundation shall have the power to 
enter into contracts, to execute instruments, and generally to do any 
and all lawful acts necessary or appropriate to its purposes.
    ``(e) Bylaws, Rules, and Regulations; Contracts for Services.--In 
carrying out the provisions of this subchapter, the Board may adopt 
bylaws, rules, and regulations necessary for the administration of its 
functions and contract for any necessary services.
``Sec. 2908. Tax exemptions; contributions toward costs of local 
              government; contributions, gifts, or transfers to or for 
              use of United States
    ``(a) Tax Exemptions.--The Foundation and any income or property 
received or owned by it, and all transactions relating to such income 
or property, shall be exempt from all Federal, State, and local 
taxation with respect thereto.
    ``(b) Contribution to Costs of Local Government.--The Foundation 
may, however, in the discretion of its directors, contribute toward the 
costs of local government in amounts not in excess of those which it 
would be obligated to pay such government if it were not exempt from 
taxation by virtue of the foregoing or by virtue of its being a 
charitable and nonprofit corporation and may agree so to contribute 
with respect to property transferred to it and the income derived 
therefrom if such agreement is a condition of the transfer.
    ``(c) Transfers to or for Use of United States.--Contributions, 
gifts, and other transfers made to or for the use of the Foundation 
shall be regarded as contributions, gifts, or transfers to or for the 
use of the United States.
``Sec. 2909. Liability of United States
    ``The United States shall not be liable for any debts, defaults, 
acts, or omissions of the Foundation.
``Sec. 2910. Promotion of local fundraising support
    ``(a) Establishment.--The Foundation shall design and implement a 
comprehensive program to assist and promote philanthropic programs of 
support at the individual military installation level.
    ``(b) Implementation.--The program under subsection (a) shall be 
implemented to--
            ``(1) assist in the creation of local nonprofit support 
        organizations; and
            ``(2) provide support, national consistency, and 
        management-improving suggestions for local nonprofit support 
        organizations.
    ``(c) Program.--The program under subsection (a) shall include the 
greatest number of military installations as is practicable.
    ``(d) Requirements.--The program under subsection (a) shall 
include, at a minimum--
            ``(1) a standard adaptable organizational design format to 
        establish and sustain responsible management of a local 
        nonprofit support organization for support of a military 
        installation;
            ``(2) standard and legally tenable bylaws and recommended 
        money-handling procedures that can easily be adapted as applied 
        to individual military installations; and
            ``(3) a standard training curriculum to orient and expand 
        the operating expertise of personnel employed by local 
        nonprofit support organizations.
    ``(e) Annual Report.--The Foundation shall report the progress of 
the program under subsection (a) in the annual report of the 
Foundation.
    ``(f) Affiliations.--(1) Nothing in this section requires:
            ``(A) a nonprofit support organization or friends group to 
        modify current practices or to affiliate with the Foundation; 
        or
            ``(B) a local nonprofit support organization, established 
        as a result of this section, to be bound through its charter or 
corporate bylaws to be permanently affiliated with the Foundation.
    ``(2) An affiliation with the Foundation shall be established only 
at the discretion of the governing board of a nonprofit organization.
``Sec. 2911. Authorization of appropriations
    ``(a) Authorization.--There are authorized to be appropriated to 
the Department of Defense such sums as may be necessary to achieve the 
purposes of the Foundation.
    ``(b) Use of Amounts Appropriated.--(1) Subject to paragraph (2), 
amounts appropriated under this section shall be made available to the 
Foundation for use for matching, in whole or in part, contributions 
(whether in currency, services, or property) made to the Foundation by 
private persons and State and local government agencies.
    ``(2) No Federal funds authorized under this section shall be used 
by the foundation for administrative expenses of the Foundation, 
including salaries, travel and transportation expenses, and other 
overhead expenses.
    ``(c) Additional Authorization.--The amounts authorized to be 
appropriated under this section are in addition to any amounts provided 
or available to the Foundation under any other Federal law.''.
    (b) Clerical Amendment.--The table of chapters of Part IV of 
Subtitle A of such title is amended by adding at the end the following 
new item:

``173. National Defense Heritage Foundation.................    2905''.

SEC. 1043. UPDATING DEFINITIONS IN TITLE 10, UNITED STATES CODE.

    (a) General Definitions.--Subsection (a) of section 101 of title 
10, United States Code, is amended by adding at the end the following 
new paragraphs:
    ``(16) The term `appropriate committees of Congress' means the 
Committee on Armed Services and the Committee on Appropriations of the 
Senate and the Committee on Armed Services and the Committee on 
Appropriations of the House of Representatives and, with respect to any 
project to be carried out by, or for the use of, an intelligence 
component of the Department of Defense, the Permanent Select Committee 
on Intelligence of the House of Representatives and the Select 
Committee on Intelligence of the Senate.
    ``(17) The term `base closure law' means--
            ``(A) section 2687 of this title;
            ``(B) title II of the Defense Authorization Amendments and 
        Base Closure and Realignment Act of 1988 (Public Law 100-526; 
        10 U.S.C. 2687 note);
            ``(C) the Defense Base Closure and Realignment Act of 1990 
        (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note); and
            ``(D) any other similar authority for the closure or 
        realignment of military installations that is enacted after the 
        date of the enactment of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003.
    ``(18) The term `Indian tribe' has the meaning given such term in 
section 102(2) of the Federally Recognized Indian Tribe List Act of 
1994 (25 U.S.C. 479a(2)).''.
    (b) Facilities Definitions.--Section 101 is further amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d) the following new 
        subsection (e):
    ``(e) Facilities and Operations.--Unless the context indicates 
otherwise, the following definitions relating to facilities and 
operations apply to this title:
            ``(1) The term `military munitions'--
                    ``(A) means all ammunition products and components 
                produced for or used by the armed forces for national 
                defense and security, including ammunition products or 
                components under the control of the Department of 
                Defense, the Coast Guard, the Department of Energy, and 
                the National Guard. The term includes confined gaseous, 
                liquid, and solid propellants, explosives, 
                pyrotechnics, chemical and riot control agents, smokes, 
                incendiaries, bulk explosives and chemical warfare 
                agents, chemical munitions, rockets, guided and 
                ballistic missiles, bombs, warheads, mortar rounds, 
                artillery ammunition, small arms ammunition, grenades, 
                mines, torpedoes, depth charges, cluster munitions and 
                dispensers, demolition charges, and devices and 
                components thereof, and
                    ``(B) does not include wholly inert items, 
                improvised explosive devices, and nuclear weapons, 
                nuclear devices, and nuclear components, except that 
                the term does include non-nuclear components of nuclear 
                devices that are managed under the nuclear weapons 
                program of the Department of Energy after all required 
                sanitization operations under the Atomic Energy Act of 
                1954 (42 U.S.C. 2011, et seq.) have been completed.
            ``(2) The term `operational range' means--
                    ``(A) a range that is used for range activities, or
                    ``(B) a range that is not currently being used for 
                range activities, but that is still considered by the 
                Secretary concerned to be a range, is under the 
                jurisdiction, custody, or control of the Secretary 
                concerned, and has not been put to a new use that is 
                incompatible with range activities.
            ``(3) The term `range' means a designated land or water 
        area set aside, managed, and used to conduct research, 
        development, testing, and evaluation of military munitions, 
        other ordnance, or weapon systems, or to train military 
        personnel in their use and handling. Ranges include firing 
        lines and positions, maneuver areas, firing lanes, test pads, 
        detonation pads, impact areas, electronic scoring sites, buffer 
        zones with restricted access and exclusionary areas, and 
        airspace areas designated for military use according to 
        regulations and procedures established by the Federal Aviation 
        Administration such as special use airspace areas, military 
        training routes, or other associated airspace.
            ``(4) The term `unexploded ordnance' means military 
        munitions that--
                    ``(A) have been primed, fused, armed, or otherwise 
                prepared for action;
                    ``(B) have been fired, dropped, launched, 
                projected, or placed in such a manner as to constitute 
                a hazard to operations, installations, personnel, or 
                material; and
                    ``(C) remain unexploded either by malfunction, 
                design, or any other cause.''.
    (c) Conforming Amendments.--(1) Subsection (e) of section 2710 of 
title 10, United States Code, is amended--
            (A) by striking paragraphs (3), (5), and (9); and
            (B) by redesignating paragraphs (4), (6), (7), (8), and 
        (10) as paragraphs (3), (4), (5), (6), and (7), respectively.
    (2) Subsection (d) of section 313 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 
1053), is amended by inserting after ``311'' the following: ``, or in 
section 101 of title 10, United States Code''.
    (3) Title 10, United States Code, is further amended as follows:
            (A) Subsection (c) of section 2801 is amended by striking 
        paragraph (4).
            (B) Sections 181, 229, 1107, 2216, 2218, 2306b, 2366, 2399, 
        2534, 2667, and 10216 are amended by striking ``congressional 
        defense committees'' each place it appears and inserting 
        ``appropriate committees of Congress''.
            (C) Subsection (d)(2) of section 181 is amended--
                    (i) by striking ``subsection: (A) The'' and 
                inserting ``subsection, the''; and
                    (ii) by striking paragraph (B).
            (D) Subsection (f) of section 229 is repealed.
            (E) Subsection (f)(4) of section 1107 is amended by 
        striking subparagraph (C).
            (F) Subsection (j) of section 2216 is amended by striking 
        paragraph (3).
            (G) Subsection (l) of section 2218 is amended--
                    (i) by striking paragraph (4); and
                    (ii) by redesignating paragraph (5) as paragraph 
                (4).
            (H) Subsection (l) of section 2306b is amended--
                    (i) by striking paragraph (9); and
                    (ii) by redesignating paragraph (10) as paragraph 
                (9).
            (I) Subsection (e) of section 2366 is amended by striking 
        paragraph (7).
            (J) Subsection (h) of section 2399 is amended--
                    (i) in paragraph (1), by striking ``section: (1) 
                The'' and inserting ``section, the''; and
                    (ii) by striking paragraph (2).
        (K) Subsection (h) of section 2667 is amended--
                    (i) by striking paragraphs (1) and (2); and
                    (ii) by striking ``section: (3) The'' and inserting 
                ``section, the''.
    (4) Title 10, United States Code, is further amended as follows:
            (A) Subsection (f) of section 2490a is amended--
                    (i) by striking ``section: (1) The'' and inserting 
                ``section, the''; and
                    (ii) by striking paragraph (2).
            (B) Section 2705 is amended by striking subsection (h).
            (C) Section 2871 is amended--
                    (i) by striking paragraph (2); and
                    (ii) by redesignating paragraphs (3), (4), (5), 
                (6), (7), and (8) as paragraphs (2), (3), (4), (5), 
                (6), and (7), respectively.

SEC. 1044. IMPROVING READINESS IN PROVIDING FIREFIGHTING SERVICES.

    Section 2465(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) to a contract for the performance of a firefighting 
        function for a period of one year or less to fill vacant 
        positions created by deployed military fire fighters.''.

SEC. 1045. EXEMPTION FOR AIRCRAFT CHARTER OPERATIONS TO PROVIDE 
              TRANSPORTATION TO THE ARMED FORCES.

    Section 132 of the Aviation and Transportation Security Act (Public 
Law 107-71; 115 Stat. 635) is amended by adding at the end the 
following new subsection:
    ``(c) Exemption for Charter Operations To Provide Transportation to 
the Armed Forces.--The provisions of this Act shall not apply to the 
operation of, or to the passengers and property carried by, aircraft 
when employed to provide charter transportation to the armed forces, 
except for an operation to or from an airport described in section 
44903(c) of title 49, United States Code. For an operation to or from 
an airport described in section 44903(c), the screening, and passenger 
manifest provisions of this Act shall not apply to passengers and 
property loaded onto such aircraft. The Secretary of Defense, in 
consultation with the Secretary of Homeland Security and the Secretary 
of Transportation, shall establish security procedures relating to the 
operation of such aircraft to or from an airport described in section 
44903(c) of title 49.''.

SEC. 1046. DOCUMENTS, HISTORICAL ARTIFACTS, AND OBSOLETE OR SURPLUS 
              MATERIEL: LOAN, DONATION, OR EXCHANGE.

    (a) In General.--Section 2572 of title 10, United States Code, is 
amended--
            (1) in the heading, by striking ``condemned or obsolete 
        combat'' and inserting ``obsolete or surplus'';
            (2) in subsection (a), by striking ``subsection (c)'' and 
        inserting ``subsection (c)(1)'';
            (3) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsection (c)(2)''; and
            (4) in subsection (c)--
                    (A) by striking ``(c) This section'' and ``(c)(1) 
                Subsection (a)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(2) Subsection (b) applies to the following types of 
        property held by a military department or the Coast Guard: 
        books, manuscripts, works of art, historical artifacts, 
        drawings, plans, models, and obsolete or surplus materiel.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 153 of such title is amended by amending the item relating 
to section 2572 to read as follows:

``2572. Documents, historical artifacts, and obsolete or surplus combat 
                            materiel: loan, gift, or exchange.''.

SEC. 1047. AUTHORITY TO ENSURE DEMILITARIZATION OF SIGNIFICANT MILITARY 
              EQUIPMENT FORMERLY OWNED BY THE DEPARTMENT OF DEFENSE.

    (a) In General.--Chapter 153 of title 10, United States Code, is 
amended by inserting after section 2582 the following new section:
``Sec. 2583. Continued authority to require demilitarization of 
              significant military equipment after disposal
    ``(a) Authority to Require Demilitarizaton.--The Secretary of 
Defense may require any person in possession of significant military 
equipment formerly owned by the Department of Defense--
            ``(1) to demilitarize the equipment;
            ``(2) to have the equipment demilitarized by a third party; 
        or
            ``(3) to return the equipment to the U.S. Government for 
        demilitarization.
    ``(b) Cost and Validation of Demilitarization.--When the 
demilitarization of significant military equipment is carried out by 
the person in possession of the equipment pursuant to paragraph (1) or 
(2) of subsection (a), the person shall be solely responsible for all 
demilitarization costs, and the United States shall have the right to 
validate that the equipment has been demilitarized.
    ``(c) Return of Equipment to the United States Government.--When 
the Secretary of Defense requires the return of significant military 
equipment for demilitarization by the United States Government, the 
Secretary shall bear all costs to transport and demilitarize the 
equipment. If the person in possession of the significant military 
equipment obtained the property in the manner authorized by law or 
regulation and the Secretary determines that the cost to demilitarize 
and return the property to the person is prohibitive, the Secretary 
shall reimburse the person for the fair market value of the property 
or, if the fair market value is not readily ascertainable, the purchase 
cost of the property and for the reasonable transportation costs 
incurred by the person to purchase the equipment.
    ``(d) Establishment of Demilitarizaton Standards.--The Secretary of 
Defense may prescribe by regulation what constitutes demilitarization 
for each type of significant military equipment.
    ``(e) Exceptions.--This section does not apply--
            ``(1) when a person is in possession of significant 
        equipment formerly owned by the Department of Defense for the 
        purpose of demilitarizing the equipment pursuant to a United 
        States Government contract;
            ``(2) to small arms weapons issued under the Defense 
        Civilian Marksmanship Program established in title 36, United 
        States Code;
            ``(3) to issues by the Department of Defense to museums 
        where demilitarization has been performed in accordance with 
        departmental regulations; and
            ``(4) to other issues and undemilitarized significant 
        military equipment under the provisions of departmental 
        regulations.
    ``(f) Definition of Significant Military Equipment.--In this 
section, the term `significant military equipment' means--
            ``(1) an article for which special export controls are 
        warranted under the Arms Export Control Act (22 U.S.C. 2751 et 
        seq.) because of its capacity for substantial military utility 
        or capability, as identified on the United States Munitions 
        List maintained under sect 121.1 of title 22, Code of Federal 
        Regulations; and
            ``(2) any other article designated by the Department of 
        Defense as requiring demilitarization before its disposal.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2583. Continued authority to require demilitarization of significant 
                            military equipment after disposal.''.

SEC. 1048. STOPPING VESSELS; IMMUNITY FOR FIRING AT OR INTO VESSEL.

    Section 637 of title 14, United States Code, is amended--
            (1) in subsection (a), by inserting before the period at 
        the end the following: ``, except that the prior use of the 
        warning signal is not required if its use would unreasonably 
        endanger persons or property in the vicinity of the vessel.''.
            (2) in subsection (c)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) it is a surface naval vessel or military aircraft on 
        which one or more members of the Coast Guard are assigned 
        pursuant to section 379 of title 10.''; and
                    (B) by striking paragraph (3); and
            (3) by striking subsection (d).

SEC. 1049. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

    (a) Repeal of Insurance Authority Sunset.--Section 44310 of title 
49, United States Code, is repealed.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 443 of such title is amended by striking the item relating 
to section 44310.

SEC. 1050. MODIFICATION OF NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Requirement To Carry Out Program.--Section 802(a)(1) of the 
David L. Boren National Security Education Act of 1991 (50 U.S.C. 1902) 
is amended by striking ``Secretary of Defense'' and inserting 
``Secretary''.
    (b) Service Agreements.--Section 802(b) of such Act (50 U.S.C. 
1902) is amended by adding the following new paragraphs:
            ``(4) A service agreement shall not be affected by the 
        transfer of any management function to the Department of 
        Education, but shall continue in full force and effect 
        according to the original terms until amended, modified, 
        superseded, terminated, set aside, or revoked in accordance 
        with law by the Secretary. Upon any such transfer, all existing 
        and future service agreements will be subject to the authority 
        of the Secretary under this Act.
            ``(5) Notwithstanding the provisions of Section 437 of the 
        General Education Provisions Act (20 U.S.C. 1232), the 
        Secretary may adopt regulations promulgated by the Secretary of 
        Defense as required in the management of such program and 
        implementation of such service agreements.''.
    (c) Foreign Language Center of the Defense Language Institute.--
Section 802(h) of such Act (50 U.S.C. 1902) is amended--
            (1) in paragraph (1) by adding ``of Defense'' after 
        ``Secretary''; and
            (2) in paragraph (2), by adding ``of Defense'' after 
        ``Secretary''.
    (d) Organization of the National Security Education Board.--Section 
803 of such Act (50 U.S.C. 1903) is amended--
            (1) in subsection (a), by striking ``of Defense'' after 
        ``Secretary''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``of Defense'' 
                after ``Secretary''; and
                    (B) in paragraph (2), by striking ``of Education'' 
                after ``Secretary'' and inserting ``of Defense''.
    (e) Revision of Requirement To Provide Information in Connection 
With General Accounting Office Audits.--Section 807 of such Act (50 
U.S.C. 1907) is amended by striking ``of Defense'' after ``Department'' 
and inserting ``of Education''.
    (f) Definitions.--Section 808 of such Act (50 U.S.C. 1908) is 
amended--
            (1) by inserting the following new item (1):
            ``(1) Unless provided otherwise, the term `Secretary' means 
        the Secretary of Education.''; and
            (2) by redesignating items (1) through (4) as (2) through 
        (5).

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Extension of voluntary separation incentive pay authority.
Sec. 1102. Modify the overtime pay cap.
Sec. 1103. Application of grievance procedures.
Sec. 1104. Civil service retirement system computation for part-time 
                            service.
Sec. 1105. Position vacancy promotion consideration in time of war or 
                            national emergency.
Sec. 1106. Military leave for mobilized federal civilian employees.

SEC. 1101. EXTENSION OF VOLUNTARY SEPARATION INCENTIVE PAY AUTHORITY.

    Section 5597(e) of title 5, United States Code, is amended by 
striking ``September 30, 2003'' and inserting ``September 30, 2006''.

SEC. 1102. MODIFY THE OVERTIME PAY CAP.

    Section 5542(a)(2) of title 5, United States Code, is amended by 
striking ``the overtime hourly rate of pay is an amount equal to one 
and one-half times the hourly rate of the minimum rate of basic pay for 
GS-10 (including any applicable locality-based comparability payment 
under section 5304 or similar provision of law and any applicable 
special rate of pay under section 5305 or similar provision of law)'' 
and inserting ``the overtime hourly rate of pay is an amount equal to 
the greater of one and one-half times the minimum hourly rate of basic 
pay for GS-10 (including any applicable locality-based comparability 
payment under section 5304 or similar provision of law and any 
applicable special rate of pay under section 5305 or similar provision 
of law) or the employee's hourly rate of basic pay''.

SEC. 1103. APPLICATION OF GRIEVANCE PROCEDURES.

    (a) Section 7103(a)(9)(A) of title 5, United States Code, is 
amended by adding before the semicolon the following: ``raised pursuant 
to a negotiated grievance procedure established pursuant to section 
7121 of this chapter''.
    (b) Subparagraph (A) of section 7114(a)(2) of such title is amended 
by adding before the semicolon the following: ``, except that 
discussions related to Equal Employment Opportunity complaints are not 
formal discussion''.

SEC. 1104. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-TIME 
              SERVICE.

    Section 8339(p) of title 5, United States Code, is amended by 
adding at the end the following new paragraphs:
    ``(3) In the administration of paragraph (1)--
            ``(A) subparagraph (A) of such paragraph shall apply to any 
        service performed before, on, or after April 7, 1986;
            ``(B) subparagraph (B) of such paragraph shall apply to all 
        service performed on a part-time or full-time basis on or after 
        April 7, 1986; and
            ``(C) any service performed on a part-time basis before 
        April 7, 1986, shall be credited as service performed on a 
        full-time basis; and
    ``(4) Paragraph (3) applies to individuals who retire on or after 
the date of enactment, and the administration of this provision is 
effective 90 days after the date of enactment.''.

SEC. 1105. POSITION VACANCY PROMOTION CONSIDERATION IN TIME OF WAR OR 
              NATIONAL EMERGENCY.

(a) Vacancy Promotion Consideration.--Section 14317 of title 10, United 
States Code, is amended--
            (1) in subsection (d), by striking ``If a reserve officer'' 
        and inserting ``Except as provided in subsection (e), if a 
        reserve officer''; and
            (2) in subsection (e), by inserting ``or, in the case of an 
        officer who has been ordered to or is serving on active duty in 
        support of a contingency operation as defined in section 
        101(a)(13) of this title, a vacancy promotion board'' after 
        ``mandatory promotion board''.
    (b) Conforming Amendment.--Paragraph (1) of section 14315(a) of 
such title is amended by striking ``or, as determined by the Secretary 
concerned, is available to occupy a position'' and inserting ``or, 
under regulations prescribed by the Secretary concerned, is recommended 
to occupy a position''.

SEC. 1106. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN EMPLOYEES.

    (a) In General.--Subsection (b) of section 6323 of title 5, United 
States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2) performs active duty in support of a contingency 
        operation as defined in section 101(a)(13) of title 10; or''.
    (b) Conforming Amendment.--Such subsection is further amended by 
inserting ``or (3)'' after ``paragraph (2)''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply prospectively upon enactment.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

       Subtitle A--Matters Related to Arms Control and Monitoring

Sec. 1201. Clarification and extension of authority to provide 
                            assistance to United Nations-sponsored 
                            efforts to inspect and monitor Iraqi 
                            weapons activities.
   Subtitle B--Matters Related to Allies and Friendly Foreign Nations

Sec. 1211. Expansion of authority to conduct the Arctic military 
                            environmental cooperation program.
Sec. 1212. Provision of cataloging data and services.
Sec. 1213. Authority to waive domestic source or content requirements.
Sec. 1214. Authority to expend funds to recognize superior noncombat 
                            achievements or performance by members of 
                            friendly foreign forces and other foreign 
                            nationals.
Sec. 1215. Administrative support and services for foreign liaison 
                            officers.
Sec. 1216. George C. Marshall European Center for Security Studies.
Sec. 1217. Restrictions on permanent transfer of significant military 
                            equipment.
Sec. 1218. Amendment to authority for acceptance by Asia-Pacific Center 
                            for Security Studies of foreign gifts and 
                            donations.
Sec. 1219. Addition of individuals authorized to receive check cashing 
                            and exchanges of foreign currency.
Sec. 1220. Continuation of the regional counterterrorism fellowship 
                            program.
Sec. 1221. -Logistics support for friendly nations.
                       Subtitle C--Other Matters

Sec. 1231. Repeal of the authorization for the establishment of the 
                            Center for the Study of Chinese Military 
                            Affairs.

       Subtitle A--Matters Related to Arms Control and Monitoring

SEC. 1201. CLARIFICATION AND EXTENSION OF AUTHORITY TO PROVIDE 
              ASSISTANCE TO UNITED NATIONS-SPONSORED EFFORTS TO INSPECT 
              AND MONITOR IRAQI WEAPONS ACTIVITIES.

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

   Subtitle B--Matters Related to Allies and Friendly Foreign Nations

SEC. 1211. EXPANSION OF AUTHORITY TO CONDUCT THE ARCTIC MILITARY 
              ENVIRONMENTAL COOPERATION PROGRAM.

    Section 327 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law No. 105-261; 112 Stat. 1965), is 
amended--
            (1) in the title, by inserting ``AND WESTERN PACIFIC'' 
        after ``ARCTIC'';
            (2) by striking subsections (b) and (c);
            (3) by redesignating subsection (a) as subsection (b);
            (4) by inserting after the title the following new 
        subsection (a):
    ``(a) Authority to Conduct Program.--Subject to subsection (b), the 
Secretary of Defense, with the concurrence of the Secretary of State, 
may conduct the Arctic and Western Pacific Military Environmental 
Cooperation Program.''; and
            (5) in subsection (b), as redesignated by paragraph (3)--
                    (A) in paragraph (1)--
                            (i) by inserting ``and Western Pacific'' 
                        after ``Subject to paragraph (2), activities 
                        under the Arctic'';
                            (ii) by inserting ``and assistance'' after 
                        ``shall include cooperative''; and
                            (iii) by striking ``in the Arctic Region''; 
                        and
                    (B) in paragraph (2)--
                            (i) by inserting ``Western Pacific'' after 
                        ``Activities under the Arctic''; and
                            (ii) by striking ``for purposes for which 
                        funds for Cooperative Threat Reduction programs 
                        have been denied or are prohibited, including 
                        the purposes''.

SEC. 1212. PROVISION OF CATALOGING DATA AND SERVICES.

    Section 21(h)(2) of the Arms Export Control Act (Public Law 90-629; 
22 U.S.C. 2761(h)(2)) is amended by striking ``or to any member 
government of that Organization if that Organization or member 
government'' and inserting ``, to any member of that Organization, or 
to the government of any other country if that Organization, member 
government, or other government''.

SEC. 1213. AUTHORITY TO WAIVE DOMESTIC SOURCE OR CONTENT REQUIREMENTS.

    (a) In General.--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 to waive the 
application of a domestic source or content requirements under 
subsection (a) applies to the procurement of items for which the 
Secretary of Defense determines that--
            ``(1) application of the requirement would impede the 
        reciprocal procurement of defense items under a memorandum of 
        understanding providing for reciprocal procurement of defense 
        items between a foreign country and the United States 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) 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. et seq.).
            ``(3) Sections 2533a, 7309, and 7310 of this title.
    ``(e) 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.
    ``(f) 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. 1214. AUTHORITY TO EXPEND FUNDS TO RECOGNIZE SUPERIOR NONCOMBAT 
              ACHIEVEMENTS OR PERFORMANCE BY MEMBERS OF FRIENDLY 
              FOREIGN FORCES AND OTHER FOREIGN NATIONALS.

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

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

SEC. 1215. ADMINISTRATIVE SUPPORT AND SERVICES FOR FOREIGN LIAISON 
              OFFICERS.

    (a) Authority.--Section 1051a of title 10, United States Code, is 
amended to read as follows:
``Sec. 1051a. Administrative support and services for foreign liaison 
              officers
    ``(a) Authority.--The Secretary of Defense may provide 
administrative services and support for the performance of duties by 
any liaison officer of another nation while the liaison officer is 
assigned to the headquarters of combatant command, component command, 
or subordinate operational command of the United States.
    ``(b) Travel, Subsistence, and Other Expenses.--The Secretary may 
pay the travel, subsistence, and similar personal expenses of a liaison 
officer of a developing nation involved in a coalition while the 
liaison officer is assigned temporarily to the headquarters of a 
combatant command, component command, or subordinate operational 
command of the United States, in connection with the planning for, or 
conduct of, a coalition operation, if the assignment is requested by 
the commander of the combatant command.
    ``(c) Reimbursement.--To the extent that the Secretary determines 
appropriate, the Secretary may provide the services and support 
authorized under subsection (a) and the expenses authorized by 
subsection (b) with or without reimbursement from (or on behalf of) the 
recipients.
    ``(d) Definitions.--In this section:
            ``(1) The term `administrative services and support' 
        includes base or installation support services, office space, 
        utilities, copying services, fire and police protection, and 
        computer support.
            ``(2) The term `coalition' means an ad hoc arrangement 
        between or among the United States and one or more other 
        nations for common action.''.

SEC. 1216. GEORGE C. MARSHALL EUROPEAN CENTER FOR SECURITY STUDIES.

    Section 1306(b)(1) of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2892), is amended by 
striking ``military officers and civilian officials of cooperation 
partner states of the North Atlantic Council or the Partnership for 
Peace'' and inserting ``foreign participants''.

SEC. 1217. RESTRICTIONS ON PERMANENT TRANSFER OF SIGNIFICANT MILITARY 
              EQUIPMENT.

    (a) In General.--Chapter 138 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2350l. Restrictions on permanent transfer of significant 
              military equipment
    ``(a) Transfer of Significant Military Equipment.--Lethal and non-
lethal military equipment designated as significant military equipment 
(SME), may be permanently transferred, with the concurrence of the 
Secretary of State, only when the transaction is conducted as 
replacement in kind, where the equipment is identical, and in 
situations where the recipient country has an existing inventory for 
the SME in question.
    ``(b) Export and Transfer Laws.--The authority to transfer SME in 
accordance with subsection (a) is subject to all other applicable laws 
and regulations pertaining to export and transfers.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2350l. Restrictions on permanent transfer of significant military 
                            equipment.''.

SEC. 1218. AMENDMENT TO AUTHORITY FOR ACCEPTANCE BY ASIA-PACIFIC CENTER 
              FOR SECURITY STUDIES OF FOREIGN GIFTS AND DONATIONS.

    Section 2611 of title 10, United States Code, is amended--
            (1) by striking ``foreign'' from--
                    (A) the title;
                    (B) subsection (a) in both places it appears;
                    (C) subsection (c);
                    (D) subsection (f)--
                            (i) in the heading; and
                            (ii) the first place it appears; and
                    (E) from the section title in the table of sections 
                in the beginning of the chapter;
            (2) in subsection (a)(1), by adding at the end the 
        following sentence: ``Such donations may be accepted from any 
        agency of the Federal Government, any State or local 
        government, any foreign government, any foundation or other 
        charitable organization (including any that is organized or 
        operates under the laws of a foreign country), or any other 
        private source in the United States or a foreign country.''; 
        and
            (3) in subsection (f), by striking all after ``services'' 
        and inserting a period.

SEC. 1219. ADDITION OF INDIVIDUALS AUTHORIZED TO RECEIVE CHECK CASHING 
              AND EXCHANGES OF FOREIGN CURRENCY.

    Section 3342(b) of title 31, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(8) a military member of an allied or coalition nation 
        who is part of a joint operation, joint exercise, humanitarian 
        or peacekeeping mission with the military forces of the United 
        States, provided that such accommodation has been approved by 
        the senior United States military commander assigned to the 
        joint operation or mission, that the allied or coalition nation 
        has guaranteed payment for any deficiency resulting from such 
        accommodation, and that accommodations of negotiable 
        instruments are limited to negotiable instruments drawn 
on financial institutions located in the United States or on foreign 
branches of such institutions.''.

SEC. 1220. CONTINUATION OF THE REGIONAL DEFENSE COUNTERTERRORISM 
              FELLOWSHIP PROGRAM.

    The Secretary of Defense may pay for all costs associated with the 
attendance of foreign military officers, ministry of defense officials, 
and security officials at United States military educational 
institutions, regional centers, conferences, seminars, or other 
training programs conducted under the Regional Defense Counterterrorism 
Fellowship Program, including transportation, travel, and subsistence 
costs.

SEC. 1221. LOGISTICS SUPPORT FOR FRIENDLY NATIONS.

    Section 2342 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) Notwithstanding any other provision of law or regulation, the 
Secretary of Defense, when in the best interests of the United States 
and subject to the availability of appropriations, may provide 
logistics support, supplies and services, on a reimbursable or non-
reimbursable basis, without a completed cross-servicing or foreign 
military sales agreement, to the following countries participating, 
with or on behalf of the United States, in an exercise, a contingency 
operation, as defined by section 101 of this title, or war--
            ``(1) North Atlantic Treaty Organization bodies and member 
        countries;
            ``(2) Countries permitting stationing of United States 
        Armed Forces, importation of United States military equipment 
        and materials and porting of ships;
            ``(3) Countries holding a defense alliance with the United 
        States; and
            ``(4) Countries hosting military exercises involving the 
        United States.''.

                       Subtitle C--Other Matters

SEC. 1231. REPEAL OF THE AUTHORIZATION FOR THE ESTABLISHMENT OF THE 
              CENTER FOR THE STUDY OF CHINESE MILITARY AFFAIRS.

    Section 914 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 721), is repealed.

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

Sec. 1301. Expanded use of cooperative threat reduction funds.

SEC. 1301. EXPANDED USE OF COOPERATIVE THREAT REDUCTION FUNDS.

    (a) In General.--(1) Notwithstanding any other provision of law and 
subject to the succeeding provisions of this section, the President may 
obligate and expend Cooperative Threat Reduction funds, including 
Cooperative Threat Reduction funds for a prior fiscal year that remain 
available for obligation as of the date of the enactment of this Act, 
for proliferation threat reduction projects and activities outside the 
states of the former Soviet Union if the President determines that such 
projects and activities will--
            (A) assist the United States in the resolution of critical 
        emerging proliferation threats; or
            (B) permit the United States to take advantage of 
        opportunities to achieve long-standing nonproliferation goals.
    (2) The amount that may be obligated under paragraph (1) in any 
fiscal year for projects and activities described in that paragraph may 
not exceed $50,000,000.
    (b) Authorized Uses of Funds.--The authority under subsection (a) 
to obligate and expend Cooperative Threat Reduction funds for a project 
or activity includes authority to provide equipment, goods, and 
services for the project or activity, but does not include authority to 
provide cash directly to the project or activity.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Sales of chemical and biological defense articles and 
                            services to state and local governments.
Sec. 1402. Clarification of intelligence exceptions from limitations on 
                            interception and disclosure of wire, oral, 
                            and electronic communications.

SEC. 1401. SALES OF CHEMICAL AND BIOLOGICAL DEFENSE ARTICLES AND 
              SERVICES TO STATE AND LOCAL GOVERNMENTS.

    (a) Authority for Procurement and Sales.--Chapter 18 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 383. Sales of chemical and biological defense articles and 
              services to State and local governments
    ``(a) Procurement Through the Department of Defense.--The Secretary 
of Defense shall establish procedures in accordance with this 
subsection under which States and units of local government may 
purchase articles suitable for chemical and biological defense and 
operator training, repair and maintenance, and similar services in 
connection with such articles, through the Department of Defense.
    ``(b) Sales From Inventories.--The Secretary of Defense may sell 
articles suitable for chemical and biological defense in Department of 
Defense inventories to States and units of local government at a price 
based upon the estimated or actual costs incurred by the Department in 
providing the articles.
    ``(c) Provision of Services.--The Secretary may provide, within any 
State or unit of local government, operator training, repair and 
maintenance, and similar services in connection with articles suitable 
for chemical and biological defense at a price based upon the estimated 
or actual costs incurred by the Department in providing the services.
    ``(d) Payment for Articles and Services.--Payment for articles and 
services under this section may be in advance or on providing the 
articles or services.
    ``(e) Reimbursement of Administrative Costs.--In the case of any 
purchase made by a State or unit of local government under this 
section, the Secretary may require the State or unit of local 
government to reimburse the Department of Defense for administrative 
costs to the Department of such purchase.
    ``(f) Credit of Funds From Sales.--Funds received by the Department 
of Defense from sales of articles under subsection (b) shall be 
credited to the military department, Defense Agency, or Department of 
Defense Field Activity that sold the articles so as to merge with and 
become available for the same purposes and period as the accounts to 
which they are credited, and shall be available until expended only for 
the acquisition of articles suitable for chemical and biological 
defense.
    ``(g) Credit of Funds for Services.--Funds received for the 
provision of services under subsection (c) shall be credited to the 
military department, Defense Agency, or Department of Defense Field 
Activity that provided the services and shall be available until 
expended only for the provision of such services.
    ``(h) Definitions.--In this section:
            ``(1) The terms `articles suitable for chemical and 
        biological defense' and `services' have the meaning given those 
        terms in regulations as prescribed by the Secretary of Defense.
            ``(2) The term `State' has the meaning given the term in 
        section 381(d)(1) of this title.
            ``(3) The term `unit of local government' has the meaning 
        given the term in section 381(d)(2) 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:

``383. Sales of chemical and biological defense articles and services 
                            to State and local governments.''.

SEC. 1402. CLARIFICATION OF INTELLIGENCE EXCEPTIONS FROM LIMITATIONS ON 
              INTERCEPTION AND DISCLOSURE OF WIRE, ORAL, AND ELECTRONIC 
              COMMUNICATIONS.

    Section 224(a) of the Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism Act (USA PATRIOT ACT) (Public Law 107-
56; 115 Stat. 295) is amended to read as follows:
    ``(a) In General.--Except as provided in subsection (b), this title 
and the amendments made by this title (other than sections 203(a), 
203(c), 204, 205, 208, 210, 211, 213, 216, 219, 221, and 222, and the 
amendments made by those sections) shall cease to have effect on 
December 31, 2005.''.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

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

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification to carry out certain fiscal year 2002 projects.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:


                     Army: Inside the United States
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Redstone Arsenal.....        $5,500,000
Alaska.........................  Fort Wainwright......      $138,800,000
Georgia........................  Fort Benning.........       $30,000,000
                                 Fort Stewart/Hunter         $64,500,000
                                  Army Air Field......
Hawaii.........................  Helemano Military            $1,400,000
                                  Reservation.
                                 Schofield Barracks...      $119,400,000
Kansas.........................  Fort Riley...........       $40,000,000
Kentucky.......................  Fort Knox............        $3,500,000
Louisiana......................  Fort Polk............       $72,000,000
Maryland.......................  Fort Meade...........        $9,600,000
New York.......................  Fort Drum............      $114,500,000
North Carolina.................  Fort Bragg...........      $152,000,000
Oklahoma.......................  Fort Sill............        $3,500,000
Texas..........................  Fort Hood............       $47,000,000
Virginia.......................  Fort Myer............        $9,000,000
Washington.....................  Fort Lewis...........        $3,900,000
                                                       -----------------
                                     Total............      $814,600,000
------------------------------------------------------------------------

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


                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Area Support Group,         $17,900,000
                                  Bamberg.
                                 Darmstadt..............      $7,700,000
                                 Grafenwoehr............     $76,000,000
                                 Heidelberg.............     $17,000,000
                                 Hohenfels..............     $13,200,000
                                 Mannheim...............      $4,300,000
                                 Schweinfurt............      $7,500,000
                                 Wuerzburg..............     $18,500,000
Italy..........................  Aviano Air Base........     $15,500,000
                                 Livorno................     $22,000,000
Korea..........................  Camp Casey.............     $86,000,000
                                 Camp Hovey.............     $29,000,000
Kwajalein Atoll................  Kwajalein Atoll........       9,400,000
                                                         ---------------
                                 Total..................    $324,000,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--(1) Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(3) and 
amounts, not to exceed $150,000,000 provided under Public Law 107-38, 
the Secretary of the Army may acquire personal services and real 
property, and may provide for the operation and construction of 
critical infrastructure and allied systems to ensure essential 
governmental functions for the installation or location, and in the 
amount, set forth in the following table:


                       Army: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Worldwide Unspecified..........  Unspecified Worldwide..    $663,900,000
                                                         ---------------
                                 Total..................    $663,900,000
------------------------------------------------------------------------

    (2) Military construction projects, and those funded in whole or in 
part under Public Law 107-38, containing national security classified 
information and for the purposes of preventing, responding to, or 
countering the effects of terrorist attacks shall comply, to the extent 
practical, with applicable Federal, State, and local laws and other 
orders regarding regulatory compliance, consultation, coordination and 
inspection, provided that in carrying out such a project--
            (A) no such compliance, consultation, coordination, or 
        inspection may expose, endanger, or otherwise compromise the 
        national security; and
            (B) any anticipated exception to such compliance, 
        consultation, coordination or inspection shall be addressed in 
        project documentation submitted to Congress pursuant to 
        paragraph (3).
    (3) Where applicable, project documentation submitted to the 
congressional defense committees shall satisfy general provisions of 
section 1001 of Public Law 107-117 and address any exception to 
compliance, consultation, coordination, or inspection anticipated by 
paragraph (2).

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(6)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations or locations, for the purposes and in 
the amounts, set forth in the following table:


                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  100 Units..................   $44,000,000
Arizona.................................  Fort Huachuca..............  160 Units..................   $27,000,000
Kentucky................................  Fort Knox..................  178 Units..................   $41,000,000
New Mexico..............................  White Sands Missile Range..  58 Units...................   $14,600,000
                                                                                                   -------------
                                                                           Total:.................  $126,600,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(6)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $34,488,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $197,803,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2003, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $2,935,927,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $721,600,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $314,000,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2101(c), 
        $178,700,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $20,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $122,710,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $356,891,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $1,043,026,000.
            (7) For the construction of phase 3 of a barracks complex, 
        D Street, at Fort Richardson, Alaska, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
        1281), as amended by section 2105 of this Act, $33,000,000.
            (8) For the construction of phase 2 of a barracks complex, 
        Capron Road, at Schofield Barracks, Hawaii, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002 (division B of Public Law 107-107; 115 
        Stat. 1283), as amended by section 2105 of this Act, 
        $49,000,000.
            (9) For the construction of phase 2 of a barracks complex, 
        Range Road, at Fort Campbell, Kentucky, authorized by section 
        2101(a) of the Bob Stump National Defense Authorization Act for 
        Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 
        2681), $49,000,000.
            (10) For the construction of phase 3 of a barracks complex, 
        17th and B Streets, at Fort Lewis, Washington, authorized by 
        section 2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 2002 (division B of Public Law 107-107; 115 
        Stat. 1280), $48,000,000.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2002 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1281), is amended in the item relating to 
Fort Richardson, Alaska, by striking ``$115,000,000'' in the amount 
column and inserting ``$117,000,000''.
    (b) Conforming Amendment.--Paragraph (2) of section 2104(b)(2) of 
such Act (115 Stat. 1284) is amended by striking ``$52,000,000'' and 
inserting ``$54,000,000''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,230,000
                                  Station, Yuma.
California.....................  Marine Corps Base,          $73,580,000
                                  Camp Pendleton.
                                 Naval Air Station,          $34,510,000
                                  Lemoore.
                                 Marine Corps Air             $4,740,000
                                  Station, Miramar.
                                 Naval Air Station,          $49,240,000
                                  North Island.
                                 Naval Air Warfare           $12,890,000
                                  Center, China Lake...
                                 Naval Air Warfare            $6,150,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Air Facility,         $18,940,000
                                  San Clemente Island..
                                 Naval Postgraduate          $35,550,000
                                  School, Monterey.
                                 Naval Station, San          $49,710,000
                                  Diego.
                                 Marine Air Ground Task      $28,390,000
                                  Force Training
                                  Center, Twentynine
                                  Palms................
District of Columbia...........  Marine Corps Barracks.       $1,550,000
Florida........................  Naval Air Station,           $3,190,000
                                  Jacksonville.
                                 Naval Air Station,           $4,830,000
                                  Whiting Field, Milton
                                 Naval Surface Warfare        $9,550,000
                                  Center, Coastal
                                  Systems Station,
                                  Panama City..........
                                 Blount Island              $115,711,000
                                  (Jacksonville).
Georgia........................  Strategic Weapons           $11,510,000
                                  Facility Atlantic,
                                  Kings Bay............
Hawaii.........................  Fleet and Industrial        $32,180,000
                                  Supply Center, Pearl
                                  Harbor...............
                                 Naval Magazine,              $6,320,000
                                  Lualualei.
                                 Naval Shipyard, Pearl        $7,010,000
                                  Harbor.
Illinois.......................  Naval Training Center,     $137,120,000
                                  Great Lakes.
Maryland.......................  Naval Air Warfare           $24,370,000
                                  Center, Patuxent
                                  River................
                                 Naval Surface Warfare       $14,850,000
                                  Center, Indian Head..
Mississippi....................  Naval Air Station,           $4,570,000
                                  Meridian.
New Jersey.....................  Naval Air Warfare           $20,681,000
                                  Center, Lakehurst.
                                 Naval Weapons Station,     $123,720,000
                                  Earle.
North Carolina.................  Marine Corps Air             $6,240,000
                                  Station, New River...
                                 Marine Corps Base,          $29,450,000
                                  Camp Lejeune.
Rhode Island...................  Naval Station, Newport      $16,140,000
                                 Naval Undersea Warfare      $10,890,000
                                  Center, Newport......
Virginia.......................  Henderson Hall,              $1,970,000
                                  Arlington.
                                 Marine Corps Combat          $3,700,000
                                  Development Command,
                                  Quantico.............
                                 Naval Amphibious Base,       $3,810,000
                                  Little Creek.
                                 Naval Station, Norfolk     $182,240,000
                                 Naval Space Command         $20,520,000
                                  Center, Dahlgren.....
                                 Norfolk Naval               $17,770,000
                                  Shipyard, Portsmouth.
Washington.....................  Naval Magazine, Indian       $2,240,000
                                  Island.
                                 Naval Submarine Base,       $33,820,000
                                  Bangor.
                                 Strategic Weapons            $6,530,000
                                  Facility Pacific,
                                  Bangor...............
Various Locations..............  Various Locations,          $56,360,000
                                  CONUS.
                                                        ----------------
                                     Total.............   $1,244,772,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations or locations outside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $18,030,000
                                  Bahrain...............
Italy..........................  Naval Support Activity,     $39,020,000
                                  La Maddalena..........
                                 Naval Air Station,          $34,070,000
                                  Sigonella.
United Kingdom.................  Joint Maritime               $7,070,000
                                  Facility, St. Mawgan..
                                                         ---------------
                                     Total..............     $98,190,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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


                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore.  187 Units..................   $41,585,000
Florida.................................  Naval Air Station,           25 Units...................    $4,447,000
                                           Pensacola.................
North Carolina..........................  Marine Corps Base, Camp      519 Units..................   $68,531,000
                                           Lejeune...................
                                          Marine Corps Air Station,    339 Units..................    42,803,000
                                           Cherry Point..............
                                                                                                   -------------
                                                                           Total..................  $157,366,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriation in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $8,381,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $20,446,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2003, for military construction, land 
acquisition, and military family housing functions of the Department of 
the Navy in the total amount of $2,169,829,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $909,992,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $98,190,000.
            (3) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $12,334,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $65,612,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design and improvement of military family housing and 
                facilities, $184,193,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $852,778,000.
            (6) For construction of a shipboard ashore BEQ at Naval 
        Shipyard Norfolk, Virginia, authorized in section 2201(a) of 
        the Military Construction Authorization Act for Fiscal Year 
        2003 (division B of Public Law 107-314; 116 Stat. 2687), 
        $46,730,000.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
                            projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations or locations 
inside the United States, and in the amounts, set forth in the 
following table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $13,400,000
Alaska.........................  Eielson Air Force Base.     $33,261,000
                                 Elmendorf Air Force          $2,000,000
                                  Base.
Arizona........................  Davis-Monthan Air Force     $10,062,000
                                  Base.
Arkansas.......................  Little Rock Air Force        $3,695,000
                                  Base.
California.....................  Beale Air Force Base...     $22,750,000
                                 Edwards Air Force Base.     $19,444,000
Colorado.......................  Buckley Air Force Base.      $7,019,000
District of Columbia...........  Bolling Air Force Base.      $9,300,000
Florida........................  Hurlburt Field.........      $7,800,000
                                 Tyndall Air Force Base.      $6,320,000
Georgia........................  Robins Air Force Base..     $29,264,000
Hawaii.........................  Hickam Air Force Base..     $73,296,000
Idaho..........................  Mountain Home Air Force      $5,445,000
                                  Base.
Illinois.......................  Scott Air Force Base...      $1,900,000
New Jersey.....................  McGuire Air Force Base.     $11,861,000
New Mexico.....................  Tularosa...............      $3,600,000
                                 Kirtland Air Force Base      $7,097,000
North Carolina.................  Pope Air Force Base....     $24,499,000
                                 Seymour Johnson Air         $11,222,000
                                  Force Base.
North Dakota...................  Minot Air Force Base...      $3,190,000
Ohio...........................  Wright-Patterson Air        $10,500,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...      $1,167,000
                                 Tinker Air Force Base..     $19,444,000
South Carolina.................  Charleston Air Force         $9,042,000
                                  Base.
Texas..........................  Goodfellow Air Force        $20,335,000
                                  Base.
                                 Lackland Air Force Base     $57,360,000
                                 Sheppard Air Force Base     $29,167,000
Utah...........................  Hill Air Force Base....     $15,848,000
Virginia.......................  Langley Air Force Base.     $25,474,000
                                                         ---------------
                                 Total..................    $494,762,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Base......     $35,616,000
                                 Spangdahlem Air Base...     $25,328,000
Italy..........................  Aviano Air Base........     $14,025,000
Korea..........................  Kunsan Air Base........      $7,059,000
                                 Osan Air Base..........     $16,638,000
Portugal.......................  Lajes Field, Azores....      $4,086,000
Turkey.........................  Incirlik Air Base......      $3,262,000
United Kingdom.................  Royal Air Force,            $30,587,000
                                  Lakenheath.
                                 Royal Air Force,            $10,558,000
                                  Mildenhall.
Wake Island....................  Wake Island............     $24,000,000
                                                         ---------------
                                     Total..............    $171,159,000
------------------------------------------------------------------------

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


                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
                                     Installation or
            Location                     location             Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Classified Location....     $29,501,000
                                                         ---------------
                                     Total..............     $29,501,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations or locations, for the purposes, and in 
the amounts, set forth in the following table:


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Davis-Monthan Air Force      93 Units...................   $19,357,000
                                           Base......................
California..............................  Travis Air Force Base......  56 Units...................   $12,723,000
Delaware................................  Dover Air Force Base.......  112 Units..................   $19,601,000
Florida.................................  Eglin Air Force Base.......  279 Units..................   $32,166,000
Idaho...................................  Mountain Home Air Force      186 Units..................   $37,126,000
                                           Base......................
Maryland................................  Andrews Air Force Base.....  50 Units...................   $20,233,000
Missouri................................  Whiteman Air Force Base....  100 Units..................   $18,221,000
Montana.................................  Malmstrom Air Force Base...  94 Units...................   $19,368,000
North Carolina..........................  Seymour Johnson Air Force    138 Units..................   $18,336,000
                                           Base......................
North Dakota............................  Grand Forks Air Force Base.  144 Units..................   $29,550,000
                                          Minot Air Force Base.......  200 Units..................   $41,117,000
South Dakota............................  Ellsworth Air Force Base...  75 Units...................   $16,240,000
Texas...................................  Dyess Air Force Base.......  116 Units..................   $19,973,000
                                          Randolph Air Force Base....  96 Units...................   $13,754,000
Korea...................................  Osan Air Base..............  111 Units..................   $44,765,000
Portugal................................  Lajes Field, Azores........  42 Units...................   $13,428,000
Turkey..................................  Incirlik Air Base..........  100 Units..................   $17,538,000
United Kingdom..........................  Royal Air Force, Lakenheath  89 Units...................   $23,640,000
                                                                                                   -------------
                                                                           Total..................  $417,136,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(6)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $33,488,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$248,998,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2003, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$2,302,857,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $486,282,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $171,159,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $28,981,000.
            (4) For unspecified minor construction projects authorized 
        by section 2805 of title 10, United States Code, $12,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $74,345,000.
            (6) For military housing functions:
                    (A) For construction and acquisition, planning and 
                design and improvement of military family housing and 
                facilities, $695,622,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $834,468,000.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Family Housing.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2405(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Marine Corps Base, Camp     $15,259,000
                                  Lejeune, North
                                  Carolina..............
Defense Logistics Agency.......  Defense Distribution        $27,700,000
                                  Depot, New Cumberland,
                                  Pennsylvania..........
                                 Eglin Air Force Base,        $4,800,000
                                  Florida...............
                                 Eielson Air Force Base,     $17,000,000
                                  Alaska................
                                 Hickam Air Force Base,      $14,100,000
                                  Hawaii................
                                 Hurlburt Field, Florida      $4,100,000
                                 Langley Air Force Base,     $13,000,000
                                  Virginia..............
                                 Laughlin Air Force           $4,688,000
                                  Base, Texas...........
                                 McChord Air Force Base,      $8,100,000
                                  Washington............
                                 Nellis Air Force Base,      $12,800,000
                                  Nevada................
                                 Offutt Air Force Base,      $13,400,000
                                  Nebraska..............
National Security Agency.......  Fort Meade, Maryland...      $1,842,000
Special Operations Command.....  Dam Neck, Virginia.....     $15,281,000
                                 Fort Benning, Georgia..      $2,100,000
                                 Fort Bragg, North           $36,300,000
                                  Carolina.
                                 Fort Campbell, Kentucky      $7,800,000
                                 Harrisburg                   $3,000,000
                                  International Airport,
                                  Pennsylvania..........
                                 Hurlburt Field, Florida      $6,000,000
Tri-Care Management Activity...  Naval Station,              $15,714,000
                                  Anacostia, District of
                                  Columbia..............
                                 Naval Submarine Base,        $6,700,000
                                  New London,
                                  Connecticut...........
                                 United States Air Force     $22,100,000
                                  Academy, Colorado.....
                                 Walter Reed Medical          $9,000,000
                                  Center, District of
                                  Columbia..............
Washington Headquarters          Arlington, Virginia....     $38,086,000
 Services......................
                                                         ---------------
                                     Total..............    $298,870,000
------------------------------------------------------------------------


    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2405(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations outside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Agency.......  Grafenwoehr, Germany...     $36,247,000
                                 Heidelberg, Germany....      $3,086,000
                                 Sigonella, Italy.......     $30,234,000
                                 Vicenza, Italy.........     $16,374,000
                                 Vilseck, Germany.......      $1,773,000
Special Operations Command.....  Stuttgart, Germany.....     $11,400,000
Tri-Care Management Activity...  Andersen Air Force          $26,000,000
                                  Base, Guam............
                                 Grafenwoehr, Germany...     $12,585,000
                                                         ---------------
                                     Total..............    $137,699,000
------------------------------------------------------------------------


SEC. 2402. FAMILY HOUSING.

    (a) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2404(a)(5)(A), the 
Secretary of Defense may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $300,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(5)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $50,000.

SEC. 2404. ENERGY CONSERVATION PROJECTS.

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

SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2003, for military construction, land 
acquisition, and military family housing functions of the Department of 
Defense (other than the military departments) in the total amount of 
$1,017,718,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $296,670,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $120,334,000.
            (3) For unspecified minor construction projects under 
        section 2805 of title 10, United States Code, $16,153,000.
            (4) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $8,960,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $59,884,000.
            (6) For Energy Conservation projects authorized by section 
        2404 of this Act, $69,500,000.
            (7) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
        2687 note), $370,427,000.
            (8) For military family housing functions:
                    (A) For planning, design, and improvement of 
                military family housing and facilities, $350,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $49,440,000.
                    (C) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $300,000.
            (9) For construction of the Defense Threat Reduction Center 
        at Fort Belvoir, Virginia, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 2003 
        (division B of Public Law 107-314; 116 Stat. 2695), 
        $25,700,000.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment Program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2003, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment Program authorized by 
section 2501, in the amount of $169,300,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized guard and reserve construction and land 
                            acquisition projects.

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

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2003, for the costs of acquisition, 
architectural and engineering services, and construction of facilities 
for the Guard and Reserve Forces, and for contributions therefore, 
under chapter 1803 of title 10, United States Code (including the cost 
of acquisition of land for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $168,298,000; and
                    (B) for the Army Reserve, $68,478,000.
            (2) For the Department of the Navy, for the Naval and 
        Marine Corps Reserve, $28,032,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $60,430,000; and
                    (B) for the Air Force Reserve, $44,312,000.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2001 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2000 
                            projects.
Sec. 2704. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
              SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment Program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2006; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2007.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects, and facilities, and contributions to the North Atlantic 
Treaty Organization Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2006; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2007 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization 
        Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2001 
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 2001 (division B of 
Public Law 106-398; 114 Stat. 1654A-389), authorizations set forth in 
the tables in subsection (b), as provided in sections 2102, 2201, and 
2404 of that Act, shall remain in effect until October 1, 2004, or the 
date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2005, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


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



                                  Navy: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Pennsylvania..........................  Naval Surface Warfare      Gas Turbine Test Facility....     $10,680,000
                                         Center Shipyard Systems
                                         Engineering Station,
                                         Philadelphia............
----------------------------------------------------------------------------------------------------------------



                           Defense Agencies: Extension of 2001 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Defense Education Activity............  Seoul, Korea.............  Elementary School Full Day         $2,317,000
                                                                    Kindergarten Classroom
                                                                    Addition....................
                                        Taegu, Korea.............  Elementary/High School Full          $762,000
                                                                    Day Kindergarten Classroom
                                                                    Addition....................
----------------------------------------------------------------------------------------------------------------

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

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B of 
Public Law 106-65; 113 Stat. 841), authorizations set forth in the 
tables in subsection (b), as provided in section 2601 of that Act, 
shall remain in effect until October 1, 2004, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2005, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                               Air Force: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units)......................
----------------------------------------------------------------------------------------------------------------



                                  Army: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  National Guard Ft.         Multi-purpose Range-Heavy....     $13,500,000
                                         Pickett.................
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, XXVI, and XXVII shall take 
effect on the later of--
            (1) October 1, 2003; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

     Subtitle A--Military Construction and Military Family Housing

Sec. 2801. Streamlining military construction to reduce facility 
                            acquisition and construction cycle time.
Sec. 2802. Increased terms for leases of family housing and other 
                            facilities in foreign countries.
        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Expanded authority to transfer property at military 
                            installations to be closed to persons who 
                            construct or provide military housing.
Sec. 2812. Acceptance of in-kind consideration for easements.
Sec. 2813. Modification of authority to accept funds to cover 
                            administrative expenses relating to certain 
                            real property transactions.
Sec. 2814. Authority to convey property at military installations to 
                            persons who construct or provide military 
                            housing.
Sec. 2815. Increase in threshold for reports to congressional 
                            committees on real property transactions.
Sec. 2816. Contracting with local governments for municipal services.
                       Subtitle C--Other Matters

Sec. 2821. Increase authority to lease military family housing in 
                            Italy.
Sec. 2822. Conveyance of Army and Air Force Exchange Service property, 
                            Dallas, Texas.
Sec. 2823. Relief from McKinney-Vento (Homeless) Act screening 
                            requirements.

     Subtitle A--Military Construction and Military Family Housing

SEC. 2801. STREAMLINING MILITARY CONSTRUCTION TO REDUCE FACILITY 
              ACQUISITION AND CONSTRUCTION CYCLE TIME.

    (a) Thresholds.--(1) Section 2803(c)(1) of title 10, United States 
Code, is amended by striking ``$30,000,000'' and inserting 
``$60,000,000''.
    (2) Section 2805 of such title is amended--
            (A) in subsection (a)(1)--
                    (i) by striking ``$1,500,000'' and inserting 
                ``$3,000,000''; and
                    (ii) by striking ``$3,000,000'' and inserting 
                ``$6,000,000''.
            (B) in subsection (b)(1) by striking ``$750,000'' and 
        inserting ``$1,500,000''; and
            (C) in subsection (c)(1)--
                    (i) by striking ``$1,500,000'' in subparagraph (A) 
                and inserting ``$3,000,000''; and
                    (ii) by striking ``$750,000'' in subparagraph (B) 
                and inserting ``$1,500,000''.
    (3) Section 2811(b) of such title is amended by striking 
``$5,000,000'' and inserting ``$10,000,000''.
    (4) Section 18233a of such title is amended by striking 
``$1,500,000'' in subsection (a)(1) and inserting ``$3,000,000''.
    (b) Project Applicability.--Section 2805(b)(1) of such title is 
amended by inserting at the end ``This paragraph shall not apply to 
unspecified minor military construction projects using funds made 
available for operation and maintenance in accordance with subsection 
(c).''.
    (c) Design-Build Contracting.--(1) Section 2305a(c)(5) of such 
title is amended--
            (A) by inserting ``(A)'' after ``(5)''; and
            (B) by adding at the end the following new subparagraph:
                    ``(B) Notwithstanding any other provision of law, a 
                military department may accelerate design effort for 
                design-build contracts (fast-track design funding) to 
                accomplish the design effort for any military 
                construction or family housing construction project, 
                prior to the project being authorized and appropriated, 
                if (1) the contractor to whom the contract will be 
                awarded has been selected using design-build selection 
                procedures established under this section, (2) a 
                request for the authorization and appropriation of 
                construction funds has been submitted to Congress as 
                part of the Department's annual budget, and (3) the 
                Government's liability in a Termination for Convenience 
                would not exceed costs above that attributable to the 
                final design of the project.''.
    (2) Section 2807(a) of such title is amended by striking ``in 
connection with military construction projects not otherwise authorized 
by law'' at the end of the first sentence and inserting ``regardless of 
the intended acquisition approach, in connection with a military 
construction project otherwise, or not otherwise, authorized by law''.
    (d) Cost Variations.--Section 2853(a) of such title is amended by 
striking ``or 200 percent of the minor construction project ceiling 
specified in section 2805(a)(1), whichever is less''.
    (e) Real Property Transactions.--(1) Section 2662 is repealed.
    (2) Section 2672 of such title is amended--
            (A) in the title, by striking ``$500,000'' and inserting 
        ``the unspecified minor military construction project ceiling 
        in section 2805(a)(1) of this title'';
            (B) in subsection (a)(1)(B), by striking ``$500,000'' and 
        inserting ``the unspecified minor military construction project 
        ceiling in section 2805(a)(1) of this title''; and
            (C) in subsection (a)(2), by striking ``$500,000'' and 
        inserting ``the unspecified minor military construction project 
        ceiling in section 2805(a)(1) of this title''.
    (3) Section 2672a(b) of such title is amended by striking the last 
sentence.

SEC. 2802. INCREASED TERMS FOR LEASES OF FAMILY HOUSING AND OTHER 
              FACILITIES IN FOREIGN COUNTRIES.

    (a) Leases of Family Housing in Foreign Countries.--Section 
2828(d)(1) of title 10, United States Code, is amended by striking 
``ten years'' and inserting ``fifteen years''.
    (b) Leases of Other Facilities in Foreign Countries.--Section 2675 
of such title is amended by striking ``five years'' and inserting 
``fifteen years''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY 
              INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT OR 
              PROVIDE MILITARY HOUSING.

    (a) 1988 Law.--Section 204(e) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended by striking ``Family'' in the subsection 
heading.
    (b) 1990 Law.--Section 2905(f) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by striking ``Family'' in the subsection 
heading.

SEC. 2812. ACCEPTANCE OF IN-KIND CONSIDERATION FOR EASEMENTS

    (a) Easements for Rights-of-Way.--Section 2668 of title 10, United 
States Code, is amended by adding at the end the following new 
subsections:
    ``(f) In addition to any cash consideration accepted under 
subsection (e), the Secretary concerned may accept in-kind 
consideration with respect to easements granted under this section, 
including the following:
            ``(1) Maintenance, protection, alteration, repair, 
        improvement, or restoration (including environmental 
        restoration) of property or facilities under the control of the 
        Secretary concerned.
            ``(2) Construction of new facilities.
            ``(3) Provision of facilities for use by the military 
        departments.
            ``(4) Facilities operation support.
            ``(5) Provision of such other services relating to 
        activities that will occur on the property subject to the 
        easement, as the Secretary concerned considers appropriate.
    ``(g) The Secretary concerned may accept in-kind consideration 
under subsection (f) at any property or facilities under his or her 
control that he or she selects for that purpose.
    ``(h) Sections 2662 and 2802 of this title shall not apply to 
construction of any new facilities accepted as in-kind consideration 
under this subsection.''.
    (b) Easements for Rights-of-Way: Gas, Water, and Sewer Pipelines.--
Section 2669 of such title is amended by adding at the end the 
following new subsections:
    ``(f) In addition to any cash consideration accepted under 
subsection (e), the Secretary concerned may accept in-kind 
consideration with respect to easements granted under this section, 
including the following:
            ``(1) Maintenance, protection, alteration, repair, 
        improvement, or restoration (including environmental 
        restoration) of property or facilities under the control of the 
        Secretary concerned.
            ``(2) Construction of new facilities.
            ``(3) Provision of facilities for use by the military 
        departments.
            ``(4) Facilities operation support.
            ``(5) Provision of such other services relating to 
        activities that will occur on the property subject to the 
        easement, as the Secretary concerned considers appropriate.
    ``(g) The Secretary concerned may accept in-kind consideration 
under subsection (f) any property or facilities under his or her 
control that he or she selects for that purpose.
    ``(h) Sections 2662 and 2802 of this title shall not apply to 
construction of any new facilities accepted as in-kind consideration 
under this subsection.''.

SEC. 2813. MODIFICATION OF AUTHORITY TO ACCEPT FUNDS TO COVER 
              ADMINISTRATIVE EXPENSES RELATING TO CERTAIN REAL PROPERTY 
              TRANSACTIONS.

    Section 2695 of title 10, United States Code, is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Authority To Accept.--In connection with a real property 
transaction referred to in subsection (b) with a non-Federal person or 
entity, the Secretary of a military department may charge the person or 
entity, either in advance or arrears, amounts to cover administrative 
expenses incurred by the Secretary in reviewing and implementing the 
covered transaction.'';
            (2) in subsection (b), by inserting ``whether or not the 
        transaction is completed'' before the colon; and
            (3) in subsection (c)--
                    (A) by inserting ``or are to be'' after ``expenses 
                were''; and
                    (B) by adding at the end the following new 
                sentence: ``After liquidation of all subsection (a) 
                administrative expenses, the amount of any overpayment 
                shall be refunded to the non-Federal person or entity 
                from the appropriation, fund, or account into which the 
                funds were originally deposited in such a way as to 
                merge with and become available for the same purposes 
                and period as the accounts to which they are 
                credited.''.

SEC. 2814. AUTHORITY TO CONVEY PROPERTY AT MILITARY INSTALLATIONS TO 
              PERSONS WHO CONSTRUCT OR PROVIDE MILITARY HOUSING.

    (a) Authority To Convey Property.--Subchapter III of chapter 169 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 2869. Conveyance of property to persons who construct or provide 
              military housing
    ``(a) Authority To Convey Property.--Subject to subsection (b), the 
Secretary concerned may enter into an agreement to convey real 
property, including any improvements, structures or fixtures located 
thereon, on a military installation to any person who agrees, in 
exchange for the real property, to transfer to the Secretary housing 
that is constructed or provided by the person and located at or near a 
military installation at which there is a shortage of suitable housing 
to meet the requirements of members of the Armed Forces and their 
dependents.
    ``(b) Requirements for Conveyance.--A conveyance of real property 
may be made under subsection (a) only if--
            ``(1) the Secretary determines that the real property to be 
        conveyed is in excess of the needs of the military 
        installation;
            ``(2) the fair market value of the housing to be received 
        by the Secretary in exchange for the real property to be 
        conveyed is equal to or greater than the fair market value of 
        such property, including any improvements, structures or 
        fixtures located thereon, as determined by the Secretary; and
            ``(3) in the event the fair market value of the housing is 
        less than the fair market value of the real property to be 
        conveyed, including any improvements, structures or fixtures 
        located thereon, the recipient of the real property agrees to 
        pay to the Secretary the amount equal to the excess of the fair 
        market value of such real property over the fair market value 
        of the housing.
    ``(c) Deposit of Funds.--Notwithstanding any other provision of 
law, the Secretary may deposit funds received under subsection (b)(3) 
in the Department of Defense Housing Improvement Fund established under 
section 2883(a) of this title to be merged with and used for the same 
purpose as funds already in the account.
    ``(d) Exemptions.--The conveyance of real property under this 
section shall not be subject to the following:
            ``(1) Section 501 of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11411).
            ``(2) Section 2693 of this title.
    ``(e) Additional Terms.--The Secretary may require any additional 
terms and conditions in connection with an agreement authorized by this 
section as the Secretary considers appropriate to protect the interests 
of the United States.
    ``(f) Definition.--In this section, the term `housing' means both 
military family housing and military unaccompanied housing.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2869. Conveyance of property to persons who construct or provide 
                            military housing.''.
    (c) Conforming Amendment.--Section 2883(c)(1) of such title is 
amended by adding at the end the following new subparagraph:
            ``(F) Any amounts that the Secretary concerned transfers to 
        that Fund pursuant to section 2869 of this title.''.

SEC. 2815. INCREASE IN THRESHOLD FOR REPORTS TO CONGRESSIONAL 
              COMMITTEES ON REAL PROPERTY TRANSACTIONS.

    Section 2662 of title 10, United States Code, is amended by 
striking ``$500,000'' each place it appears and inserting ``the 
unspecified minor military construction project limit under section 
2805(c)(1)(B) of this title''.

SEC. 2816. CONTRACTING WITH LOCAL GOVERNMENTS FOR MUNICIPAL SERVICES.

    (a) Authority.--Chapter 146 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2476. Contracting with local governments for municipal services
    ``Subject to the provisions of this chapter, but notwithstanding 
any other provision of law related to the award of public contracts, 
the Secretary of Defense or the Secretary of a military department may 
enter directly into a contract or other agreement for public works, 
utility and other municipal services at an installation or facility of 
the Department of Defense, with the municipality or local government 
responsible for serving the area that includes that installation or 
facility. The Secretary concerned may enter into such a contract or 
agreement, even if the municipality or local government to which the 
Secretary makes award is required by law to provide those services to 
the public without direct charge.''.
    (b) Conforming Amendment.--Section 816 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
2820) is repealed.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2476. Contracting with local governments for municipal services.''.

                       Subtitle C--Other Matters

SEC. 2821. INCREASE AUTHORITY TO LEASE MILITARY FAMILY HOUSING IN 
              ITALY.

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

SEC. 2822. CONVEYANCE OF ARMY AND AIR FORCE EXCHANGE SERVICE PROPERTY, 
              DALLAS, TEXAS.

    (a) Conveyance Authorized.--The Secretary of Defense may authorize 
the Army and Air Force Exchange Service, which is a nonappropriated 
fund instrumentality of the United States, to sell all right, title, 
and interest of the United States in and to a parcel of real property, 
including improvements thereon, that is located at 1515 Roundtable 
Drive in Dallas, Texas.
    (b) Consideration.--As consideration for conveyance under 
subsection (a), the purchaser shall pay, in a single lump sum payment, 
an amount equal to the fair market value of the real property conveyed, 
as determined by the Secretary. The payment shall be handled in the 
manner provided in section 204(c) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 485(c)). Such funds and 
credit receipts shall not go to the general treasury but to the 
Department of Defense to merge with and become available for the same 
purposes and period as the accounts to which they are credited.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the purchaser.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2823. RELIEF FROM MCKINNEY-VENTO (HOMELESS) ACT SCREENING 
              REQUIREMENTS.

    Section 501 of the McKinney-Vento Homeless Assistance Act (101 
Public Law 101-645; 42 U.S.C. 11411) is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection (i):
    ``(i) Applicability to Property During Emergencies.--The provisions 
of this section shall not apply to buildings and property that have 
been requested for support or are being used for direct support of--
            ``(1) a war or national emergency declared in accordance 
        with the National Emergencies Act (50 U.S.C. 1601 et seq.); or
            ``(2) an emergency or major disaster declared in accordance 
        with the Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5121 et seq.).''.
                                 <all>